Good Morning!

Yes, our national economy is taking off.  Wages are up, employment is up and many economists say that this is just the beginning of a long improvement.  The value of homes across the nation have steadily increased since the recession and have added to a large increase in national wealth.

Americans are feeling richer. Household net worth neared $100 trillion in the final quarter of last year, falling into record territory, according to new data released by the Federal Reserve on Thursday. Rising stock markets and property prices were attributed to the jolt in the fourth quarter. (Household net worth is the value of all of a consumer’s assets, like stocks and real estate, minus any liabilities like mortgage and credit card debt.)

Household net worth increased more than $2 trillion last quarter to a record $98.7 trillion in the final three months of last year, according to the report. Households in the U.S. saw their net worth increase to nearly seven times their disposable personal income in 2017.

The impact real estate has had on that increase can’t be understated, economists say. The value of households’ real estate rose $511.2 billion, which reflects recent run-ups in home prices.

But the rate at which consumers are saving is concerning, JPMorgan Chase Economist Michael Feroli told The Wall Street Journal. The saving rate was 3.74 percent in 2017, down from 7.19 percent in 2015.

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THIS WEEKS HOT HOME LISTING!

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$215,000    Bedrooms: 1    Bathrooms: 1    SQ FT: 801 

Marvelous condo in highly desirable Ferry Street Bridge! Wonderfully updated, acacia hardwood, quartz counters, vaulted ceiling, exposed beams, recessed lights, open layout. One bedroom with walk-in closet and vanity with attached bathroom. Bonus room with wall of windows and French doors. Laundry area with built-in storage. Carport with extra storage. Located next to Eugene Country Club, only 3 minute drive to shops & freeway access. View property

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Good Morning!

The Real Estate market in the Eugene and Springfield area was stronger in January of 2018 than in January of 2017.  Both sales and new listings were up.  The inventory of homes on the market remains low at 1.7 months and critically low in the first time buyer price ranges of $250,000 and below.  Here are the home sale statistics for January 2018.

January Residential Highlights 

January brought waves of warm real estate activity to Lane County, almost across the board. Pending sales (425) outpaced January 2017 (318) by 33.6% and December 2017 (309) by 37.5%. This is the strongest January for pending sales in Lane County on the RMLSTM record, dating to 2001. 

New listings, at 426, ended 33.1% stronger than in January 2017 (320) and 91.0% stronger than last month in December 2017 (223). 

There were 326 closed sales, faring 19.4% better than last year in January 2017 (273) but cooling 12.1% compared to December 2017 when 371 closings were recorded. 

Inventory held steady in January at 1.7 months, and total market time increased by four days to end at 66 days. 

Average and Median Sale Prices 

Comparing the average price of homes in the twelve months ending January 31st of this year ($289,100) with the average price of homes sold in the twelve months ending January 2017 ($264,800) shows an increase of 9.2%. The same comparison of the median shows an increase of 10.1% over that same period. 

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Morning!

One of the largest problems that comes about during a home sale is the fact that there are typically seller paid repairs that need to be done.  The majority of buyers are going to want both a pest and dry rot inspection and a whole home inspection completed as part of their purchase due diligence.  From this inspection, there are typically some repair items that will come about and in most cases the buyer will want many of them taken care by the seller prior to the close of escrow.  Negotiating these repairs during escrow can be nerve racking and can also sometimes create delays with closing.  My suggestion to all of my sellers is to have their home inspected before we go on the market.  This gives us a heads up for any potential issues and also allows the seller to repair major problems.  Typically, this creates a much easier sale process.  The followiong is and article from "US News" on why having a professional inspection prior to selling is a good thing to do.

A home inspection is traditionally known as a part of the due diligence process when a home is under contract with an intended buyer. A professional home inspector will visit the home and conduct a thorough review of the structure, noting any deferred maintenance, defects in the building and the remaining useful life of major appliances and systems such as the air conditioner and water heater.

Depending on what the inspector finds, the results can have a powerful impact on the sale of the house. The buyer can ask for repairs or updates to be made, try negotiating on the sale price or walk away from the deal.

To avoid the unpleasant surprises a home inspection may bring to light, homeowners looking to put their house on the market can opt for a prelisting home inspection, which provides sellers with a thorough report before the home goes on the market. Sellers have the opportunity to make necessary repairs before potential buyers start touring the property and to avoid a deal that falls through due to structural or maintenance problems that could lead to other potential buyers steering clear of a property that has issues.

"The homeowners would do the same diligence as if they were going to buy the house," says Frank Lesh, executive director of the American Society of Home Inspectors.

A prelisting inspection costs the same as one conducted while a property is under contract – ranging between $200 and $475, according to HomeAdvisor, depending on location and whether the inspection includes special checks like those for radon or termites.

Even in a hot real estate market where buyers are snapping up available homes quickly, a prelisting inspection can help reduce the chances a deal could fall through and get you closer to selling your home for the price you want in the time frame you need. Here are five reasons you should consider a prelisting home inspection before putting your house on the market.

Advance notice. Every house comes with its fair share of quirks and problems, and you're probably at least vaguely aware of a few of them – a window that lets water in when it rains or bowing floorboards in one corner of the dining room, for example. If you're planning to put your property on the market, an inspection report ahead of time will help you see all the potential problems together, including some you may not have known about.

The prelisting inspection gives you the knowledge to do with it what you will – make repairs or updates or reflect any deferred maintenance in your sale price, explains Drew White, founder and owner of AmPro Inspections in Colorado Springs, Colorado. "[Sellers] have all the cards – they're not going to be blindsided by any major finds from the buyer's inspection," he says.

There is a caveat: Once you have the report in your hands, you can't completely ignore a problem. If your inspector finds cracks in the foundation, you'll be required to disclose that information as a known defect to the buyer, or fix it before anyone puts an offer in.

"You know the old saying, 'Ignorance is bliss?' Now you can't do that," Lesh says. 

DIY option. For simple repairs, however, the prelisting inspection gives you the added benefit of being able to take on projects yourself. When negotiating with a buyer, necessary repairs will typically require you to bring in professionals for all work done, even when the fixes are simple.

"There's a lot of do-it-yourself projects that the homeowner can do where it's satisfactory, it's not going to be an issue," White says. "If the buyer's inspector finds it – let's say there's an electrical outlet that needs to be replaced or some simple plumbing – they're going to typically mandate that a professional electrician or plumber do it."

An outlet replacement or tightening a washer on a faucet – both simple projects homeowners can do – could be a couple hundred dollars for a pro to complete, White says.

Contractor of choice. For those bigger projects that do require professionals to come out, time is also on your side when your home isn't yet on the market. "They get time to use the contractors they want," White says.

Rather than needing to find a roofer in a specific time frame to appease the buyer, you can shop around for the right price, availability and skill to ensure you're satisfied with the work.

Informed pricing. Of course, there are some projects you're just not willing to take on. If you can't afford to fix a foundation issue with your house or you don't want to invest the money to replace cracked tile in a bathroom when you know a buyer will completely renovate it anyway, you don't necessarily have to take care of the repairs. Instead, "that can be reflected in the price," Lesh says.

Work with your real estate agent to establish the right sale price, taking into account whatever issues you can't – or aren't willing to – fix before putting the house on the market. Your final sale price will be lower, but it may be better than paying for repairs that won't be fully recouped by a buyer's offer.

Buyer may accept results. The fact that your house has already had an inspection can have its own appeal for buyers and can serve as a plus if included in marketing descriptions of the house. Especially in a tight seller's market where buyers have to fiercely compete with each other, you may see more buyers willing to accept the prelisting inspection report and forgo an additional inspection during the due diligence period, moving the process along faster.

Some home inspectors provide a warranty with their inspection reports. AmPro Inspections is one such company, White says, which helps some buyers feel more comfortable because the warranty can be transferred to the next owner. He says homebuyers accept the prelisting inspection roughly 50 percent of the time.

That doesn't mean you can expect buyers to accept the prelisting report as the only inspection. It's like buying a used car from a private individual, Lesh says. While the seller's mechanic may say the car is in great shape, you'll likely want a mechanic you trust to look at it, too.

Plus, if any significant amount of time passes between that first inspection and the buyer's offer, more problems could have popped up, especially in winter, Lesh says: "Are the conditions going to be the same in April as they are in January? Probably not."

Have An Awesome Week!

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Good Monday Morning!

What will the 2018 Real Estate market be like for the many thousands of buyers out there trying to find the perfect house?  The following article from "Realtor.com" will give you some insight into what lies ahead for 2018 homebuyers!

Aspiring home buyers have long known about the maddening lack of homes on the market. And despite the strong economy that's propelling more and more people into the home-buying market, the lack of inventory is crimping existing home sales.

Sales of homes that have previously been lived in hit 5.57 million in December, according to the most recent National Association of Realtors® report. That's down 3.6% from November to December, but up 1.1% from December 2017.

(Realtor.com® looked only at the seasonally adjusted numbers in the report. These have been smoothed out over 12 months to account for seasonal fluctuations.)

However, 2017 as a whole was a record year, boasting the most existing homes sold since the boom year of 2006, more than a decade ago. Sales were up 1.1% over 2016—and would have been more if there had been more properties for sale.

“The inventory of homes on the market is at its lowest level in [at least] two decades," says realtor.com® Senior Economist Joseph Kirchner. “It’s a problem because it means people are not finding homes on the market that meet their needs. So they’re just not buying.”

The lack of supply has also been steadily pushing up prices. The median price tag on an existing home was $246,800. The cost went up an almost unnoticeable 0.16% from November, but was up 5.8% from December 2017.

"The pool of interested buyers at the end of the year significantly outweighed what was available for sale," NAR Chief Economist Lawrence Yun said in a statement.

The median cost of an oh-so-in-demand single-family home was $248,100 in December—down just $100 from November. Year over year, prices were up 5.8%. Sales of the standalone homes, often found in suburbs, were down 2.6% from November, but increased 1% over December 2017.

Condos and co-ops were a little cheaper at $236,500 in December. Prices were down 1.2% from November, but up 6.4% year over year. Meanwhile, sales were down 11.6% from the previous month, but up 1.7% over the previous year.

However, prices were still significantly less (about 35.9% to be exact) than the median cost of a newly built abode at $334,900 in November, according to the most recent data from the U.S. Census Bureau and the Department of Housing and Urban Development.

Despite the overwhelming demand for affordably priced abodes, only about 10.9% of the sales in December were $100,000 or under. About 42% were in the $100,000 to $250,000 range, while another 34% cost between $250,00 and $500,000. An additional 13.1% of sales were more than $500,000.

The cheapest existing homes were in the Midwest, where the median price was $191,400 in December. That's up 7.8% from a year ago.

The region was followed by the South, at $221,200, where prices rose 5.8% over the previous year, and the Northeast, at $261,400, where prices jumped 3%. The most expensive region by far was the West, where the median home price was $367,400—and prices were up 7.3% from last year.

“Rising wages and the expanding economy should lay the foundation for 2018 being the turning point towards an uptick in sales to first-time buyers,”

NAR's Yun said in a statement. “However, if inventory conditions fail to improve, higher mortgage rates and prices will further eat into affordability and prevent many renters from becoming homeowners.”

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

28667 HILLAIRE ST Price: $595,000 Beds: 3 Baths: 2 Sq Ft: 2000 Horse property only 5 mins from town! Nearly 6 level acres, backs up to canal & great for trail riding along Amazon. Wonderfully updated home with 2-car garage. 1 bedroom guest house w/ carport has income producing potential. 2 barns w/ 11 stalls, i... View this property >>

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Good Monday Morning!

2018 has started out to be a challenging year for homebuyers in the Eugene and Springfield market area.  The issue with the current market is certainly not demand.  Our current home market problem stems from lack of inventory of homes for sale.  This is especially true in the price ranges of below $300,000, where the high demand for housing exists.  With a current inventory of less that 1.6 months, this shortage has left hundreds of would-be home buyers out in the dark.  The lack of inventory and high demand has created such a shortage that when a home comes on the market that is priced well in the price range of high demand, there is typically a bidding war taking place.  This of course is leading to the situation where many homes are now selling for above asking price.  If this trend continues in 2018, it could be a challenging market for buyers.

For anyone thinking about selling a home, this is a dream market.  In close to 30 years of selling homes in the Eugene/Springfield market area, I have never witnessed this strong of a sellers market.  This is a market that clearly has demand outpacing supply.  My suggestion to anyone in the Eugene/Springfield area who is considering the sale of their home is to get it on the market now.  January through April should be the kind of market that home sellers of the past could only dream about.

Have An Awesome Week!

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Good Monday Morning!

Over the past couple of weeks I have had numerous questions about the new tax laws. There are some changes and the following information will give you some ideas on what those changes look like.

Under the new tax law, homeowners will have decisions to make in 2018, due to reductions or elimination of certain deductions under the new tax law.

28667 HILLAIRE ST Price: $595,000 Beds: 3 Baths: 2 Sq Ft: 2000 Horse property only 5 mins from town! Nearly 6 level acres, backs up to canal & great for trail riding along Amazon. Wonderfully updated home with 2-car garage. 1 bedroom guest house w/ carport has income producing potential. 2 barns w/ 11 stalls, i... View this property >>

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Wishing you all a wonderful 2018! Happy New Year!!! 

Good Monday Morning!

The month of November saw another strong showing for home sales in the Eugene and Springfield area.  The inventory of homes for sale remained very low with just two months of inventory.  Remember, 6 months of inventory is considered a very healthy market situation.  Here are the November 2017 home sales statistics for Lane County from RMLS.

36946 PARSONS CREEK RD Price: $379,000 Beds: 3 Baths: 1 ½ Baths: 1 Sq Ft: 1890 Rustic Tuscan country-style charm! Terra Cotta tile, wood flr, rustic dr & window wood trim, steel beams, large windows. Remodeled kitchen w/ ship lap feature wall, galvanized metal backsplash, butchers block countertop & eating bar. Kitchen opens t...View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Good Morning!

As we approach the Holidays, many people are focused on other things besides buying and selling homes.  This can certainly work in your favor if you are a home buyer.  The following is an article from "realtor.org" that will gives you some reasons why you should think about getting serious with your home shopping in December.

Many home shoppers don’t think about purchasing a house during the holiday months—many even put their home search on hold. But Desare Kohn-Laski, broker-owner of Skye Louis Realty in Coconut Creek, Fla., offers some points to pass on to your clients, letting them know this is one of the best times of the year to shop for a house.

Less Competition, Better Prices. 

Let your clients know that the holiday months work in their favor. “Instead of competing with hungry buyers, eager to move in before the school year begins, the dip in demand actually drives prices down, and can create a mini buyers’ market,” Kohn-Laski says. In her experience, buyers often fare better in the negotiation process during the winter months.

More Time to (Home) Shop. 

Time off around the holidays gives many buyers the opportunity to do some careful house hunting. Instead of giving up an entire weekend to open houses and showings, buyers can more leisurely tour homes during the week, Kohn-Laski suggests.

Tax Benefits.

We still don’t know how the House and Senate tax reform bills will shake out in conference committee; however, if your clients purchase in 2017, they can still deduct property taxes, mortgage interest, and other costs. Learn more about how you can influence tax reform.

Move-In Ready Weather. 

For a large part of the country, winter is a favorable season to move. The heavy lifting of furniture and home improvement projects are easier to perform without the heat of the summer months, Kohn-Laski says.

“There are numerous benefits and added perks to buying a house during the holiday season that make December arguably the best time to buy,” Kohn-Laski says.

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

28667 HILLAIRE ST Price: $595,000 Beds: 3 Baths: 2 Sq Ft: 2000 Horse property only 5 mins from town! Nearly 6 level acres, backs up to canal & great for trail riding along Amazon. Wonderfully updated home with 2-car garage. 1 bedroom guest house w/ carport has income producing potential. 2 barns w/ 11 stalls, i...View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!