Eugene and Springfield Oregon Real Estate Update

Locally and nationally, new home starts have taken a huge hit as of late. Housing starts are off in large numbers, and this is one of the key indicators as to where our local and national economy is currently at. In Lane County, building permits for new construction are at a standstill.  Just look around at the number of new houses you see under construction. It is minimal. We are experiencing low housing starts, and at the same time, our nation has never had a larger shortage of housing. A sluggish economy, high mortgage interest rates, the high cost of land, high building material costs, high labor costs, high SDC charges, high property taxes, and expensive homeowner insurance have all contributed to the crash in new home construction. The remedy for this situation is complex, and most likely we will not see a rapid change in new home construction numbers any time soon. Lower inflation numbers and a decline in mortgage loan interest rates would be a good start to bringing ba...

The January 2024 Real Estate market in the Eugene and Springfield area improved some over December 2023 but decreased from January 2023. All categories were off from one year ago. The only real positive news is that the inventory of homes for sale is creeping up. Interest rates took a dip for a short period of time in December and January, but have inched back up as of late. The outlook for an improved housing market right now hinges on mortgage interest rates declining again and an improvement in our nation's economy. A bright spot right now is that, with the improved housing inventory, we are having a much easier time finding homes for our clients. We are also finding many sellers who are more motivated and willing to pitch in with paying buyers closing costs, etc. This is something that we have not seen happen in years. There is always a bright spot if you look for it. The following are the home sales numbers for Lane County for the month of January 2024. New Listings New ...

After years of historically low mortgage interest rates, the Fed began a systematic increase in rates, which in turn influenced the mortgage market and sent rates soaring. Mortgage rates peaked in the Fall of 2023 before they began to subside in the Winter of 2023. Today, rates have declined significantly, and there are mixed thoughts as to where mortgage rates may be headed in 2024. The following article from NAR gives their opinion on the 2024 mortgage rate situation. Only time will tell, but one thing is most likely for sure, and that is that we most likely won't see a return of 8% mortgage rates in 2024. This is great, but further declines in mortgage rates in 2024 would be even better. Although the Fed’s rate does not directly impact mortgage rates, it often influences them Jessica Lautz, deputy chief economist at the National Association of REALTORS®, anticipates mortgage rates to remain in the 6% range for most of the year. “While this is certainly higher th...