Q: Where’s Our Market and How Can I Help Those in Need?

Although the real estate market is hot, our main focus is on helping those in need.

In August, the Eugene real estate market actually saw a 9% decrease in listings. Part of this could be attributed to COVID concerns, but it’s something to keep an eye on nevertheless.

On a similar note, our inventory continues to be quite low. Nationally, the U.S. average is three months of inventory. Here in Lane County, we have just one month of inventory. A balanced market is around six months of inventory and anything less is a seller’s market.

The median price in August 2020 for Lane County was $328,000, up 11% from August 2019. The average time on market is just 36 days.

What’s in store for the future of our market? A national survey I read this morning is predicting that prices will continue to rise, inventory will remain low, and interest rates will remain around 3%. That’s good news all around for buyers and sellers.

What’s not good news is what’s happening around our state. Lane County and several other areas of the state are experiencing extreme hardships due to wildfires and many of our friends and family are without homes. 

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    We want to help as many people as possible both financially and materially.

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We want to help as many of you as possible through the donations of funds and items that we are currently collecting. I encourage you all to find as many ways to help as possible. You don’t have to donate money; you could help people find lodging, store possessions, house pets, or move livestock to name a few. I’ve lived in this state for 73 years and have never seen this kind of catastrophic event in my life. Reach out if you’d like to join us in helping those in need.

If you have any other questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Q: Could You Benefit From a Refi?

Thinking about a refinance? Here’s some great info to consider.

There are plenty of reasons to refinance a home, but of course there are also just as many reasons to hold off on making that financial decision. You can only know whether a refinance is in your best interest as a homeowner if you have all the basic facts. What, exactly, is refinancing good for? 

There are two common types of refinance, the first being a cash-out refinance. This is typically used whenever a large sum of money is needed to cover other expenses like medical bills, major home improvements, a child’s college tuition, or even to pay off high-interest credit card debts. Of course, debt consolidation does present a pitfall; if you lower your credit card debt significantly but fail to keep that debt low afterward, then you haven’t gained anything. Provided you implement good money management skills, this type of refinance can be a smart play.

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       Lowering your rate from, say, 5% down to 3% is huge savings!

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The other popular option is a rate refinance, the purpose of which is to lower the interest rate on your mortgage. Lowering your rate from, say, 5% down to 3% is huge savings! If a refinance were to cost you $4,000 once but save you $200 every month after, it’ll take less than 20 months to break even. From then on, you’ll be saving incredible amounts of money. A rate refi, therefore, is also a smart move financially. 

I encourage you to check in with your financial advisor or lender for a clearer picture of your money makeover. In the meantime, you can give me a call or send an email if you have real estate-related questions or are ready to buy or sell in today’s market. I’m always here to help!

Your Latest Lane County Market Update

According to the latest numbers, Lane County is a seller’s market. 

What’s happening in the Lane County market now that we’ve reached the midpoint of 2020? Let’s start by reviewing the year-over-year statistics from last June.

Listings are down 18% compared to June 2019, but pending contracts are up 5.6%. This is interesting because it means we have very low inventory. Last month, I was hopeful because our inventory had increased to two months’ worth, but now we’ve dropped back down to 1.3 months (roughly 37 days).
 

In a normal market (which we’d love to see again), there is usually about six months’ worth of inventory. At that number, buyers and sellers are on an equal footing. At the moment, we’re in a strong seller’s market, so you can see why there are so many multiple-offer situations happening.

Home prices, meanwhile, continue to ratchet upward: The average price is $338,000, and the median price is $310,000. Just a quick reminder: The median price is the price near which most homes are selling, whereas the average is what you get when you add up all the sale prices for homes sold in a specific area within a specified time frame and divide that total by the number of properties sold.

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The average price is $338,000, and the median price is $310,000.

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Here are the latest interest rate averages as of July 15:

• Conventional mortgage: 2.875%
• 15-year mortgage: 2.5%
• VA, FHA, and USDA loans: 2.75%

It seems like I keep saying this over and over, but these rates are record lows. Just when we get used to a new low, they drop even lower! Now, I’m not sure when this will end, but sooner or later, they’ll creep back up.

As always, if you want to know more about our Lane County market or have any real estate needs at all, don’t hesitate to reach out to me. I’m happy to help.

Q: What Do You Need to Know to Take Advantage of Our Market?

Here’s what you need to know to take advantage of our market. 

If you’re looking to take advantage of our Eugene real estate market, there are two important changes that have occurred over the past few months (primarily due to the pandemic) that you need to be aware of.

First, interest rates have dropped. Last year, we thought they would go up during 2020, but the bottom line is that they haven’t. Last year they averaged roughly 4.2%, but this year the average has fallen to 3.2%. They may creep back up in the future, but at the moment they’re historically low.

If you’re a buyer, this means you must do your part to lock in a low rate. Just because you get approved for a loan doesn’t mean you’ll get the best rate. You need two factors working in your favor to get a low rate: your debt ratio and credit score. You need to improve your debt ratio and lower your debt.

Second, the peak listing season has been delayed to June through August, so don’t panic—there is plenty of time to get into the market. I will say this, though: It’s not about timing the market; it’s about how much time you are on the market. Year over year, the median home price has risen from $285,000 to $320,000. This is a pretty steady increase, and I’ll assume it will continue to rise.

This means the best time to buy a house is whenever you can. The housing market will always increase over time, and right now it’s fair to think that it will increase at a yearly rate of about 5%.

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The best time to buy a house is whenever you can.

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In other words, if you bought a $300,000 house right now with a monthly mortgage of $1,800, you’d gain $83,000 worth of equity in five years. Keep in mind, that’s just the appreciation. That doesn’t even coin the five years of payment toward your principal. That also doesn’t count all the tax benefits you receive just by owning a home. Think about that: You can increase your equity by $83,000 just by living in a house. On the other hand, if you rented for five years for $1,800 a month, you’d pay the property owner $108,000 during that time.

Anyone who knows me knows that I’m a proponent of homeownership, and that’s just one example of why you should get into a home as quickly as you can.

If you’d like to start your home buying journey or have any real estate needs, don’t hesitate to reach out to me. I’m here to help.

Q: Why Is Our Market Like a Coiled Spring?

Our market has a lot of pent-up demand that will soon be released.

Right now, our real estate market is like a coiled spring. We know that it’s getting ready to explode soon. For the last few months, inventory has risen slightly, but things are changing now. Our average price is still up year over year, and this summer will be like a regular spring market. Buyer demand is increasing, and more and more sellers are getting their homes on the market. To learn more, watch this short video.

Q: How Do You Buy & Sell During COVID-19?

Buying and selling homes during COVID-19 isn’t as hard as you’d think.

How in the world can you buy or sell a house during the COVID-19 pandemic? It’s actually not as hard as it might seem.

If the property is vacant you can often view it in person with your Realtor as you would normally. However, if the home isn’t vacant, things will go a bit differently.

For an occupied home, your Realtor will need to bring preventative measures like masks and gloves to protect you, the homeowners, and themselves. Have the Realtor be the one to open cupboards, drawers, and doors with a gloved hand.

Many Realtors have also implemented sign-in sheets; these can help with contact tracing—if someone involved with the transaction does come down with COVID-19, we’ll be able to contact others who might’ve been exposed.

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  It’s just safer to make sure that you, your Realtor, and the homeowner are being protected.

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One other, easy safety measure is to have only your Realtor go into the homes that you wish to view and have them do a virtual tour via FaceTime, Google Meet, or a similar app. Once you’ve selected a home to put an offer on, then you and your Realtor can go in for an in-person walk-through.

Since Oregon isn’t a hotbed of viral spread we’ll probably begin to relax our quarantine measures in the near future. For now, it’s just safer to make sure that you, your Realtor, and the homeowner are being protected.

If you have any questions about buying or selling amid the pandemic or concerning real estate in general, please reach out via phone or email. I would love to help you.

The Main Dilemma for Homebuyers and Sellers Right Now

Whether you choose to enter the market now or wait until later doesn’t matter as much as the question of how the current conditions can help you. Here’s what I mean.

A lot of buyers want to buy and a lot of sellers want to sell, but when is it going to happen? We’re navigating a delicate crisis with plenty of health and safety concerns involved. Many are unsure whether they should wait or whether they should list now. Either option will work, but it all depends on what the pros and cons mean for your specific situation. To learn more about them, watch this short video.

The State of the Market During the COVID-19 Pandemic

The nationwide stay-at-home ordinances have presented a challenge for all industries, including real estate. Here’s how we’ve adapted.

These are trying times, but rest assured that we’re all in this together. Since many are unsure about how the world can continue to function with everyone sheltering in place, today I thought I’d give you an update on how the market is doing during quarantine, as well as how we in real estate are adapting to the challenge. Many senior banks are allowing borrowers a forbearance on their mortgage payments if their income has been affected by the outbreak. However, there is a difference between forbearance and deferment, so be sure to speak with your lender about the differences and what they mean to you. To hear more, watch this short video.

How Are Mortgage Rates Doing Right Now?

I’m here with a quick update on the current state of mortgage interest rates. Here’s what you need to know.

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Ron Smith from Flagstar Mortgage joins me today as stories of low interest rates dominate the news. We’ve got a quick update for you today on where rates are now and where they might be headed in the future.

Last week, interest rates dropped to all-time lows. Ron has been locking in rates for homebuyers near 2%, which is unbelievable. He’s been in the industry for over 30 years and has never seen rates this low. About 90% of Americans who already have a mortgage can benefit from refinancing right now, too.

Let’s say you locked in a 4% rate a few years ago. If you refinanced now to 3% or lower, in just a few years you’d recover that difference and recuperate the costs. Then you’ll be able to continue saving that money each month for the life of your loan. It doesn’t always make sense, but when it does, you can save a lot of money and consolidate other debt into a new mortgage.

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You can even consolidate other debt into your current mortgage.

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There is a danger in this, though. If you do get rid of your credit card debt that has a 17% rate and roll it into a 3% mortgage, it makes sense on paper. However, the hard part is keeping the credit card debt from going back up again. When that happens, what have you really gained?

The main purpose of consolidating debt is to get it paid off. A client that Ron is working with right now will have to add $1,000 to his mortgage payment every month, but it’s part of a plan; he’ll be really happy 10 years from now because he’s paying off that debt and building wealth.

If you need to get a hold of Ron for any questions about refinancing or mortgages in general, give him a call at 541 284 8036.

If you have any other real estate-related questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you.

If You Need to Buy and Sell, Which Comes First?

Buying and selling at the same time isn’t easy, but it certainly can be done. Here’s how we can help.

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If you need to sell your current home and buy a new one, how should you go about it? The good news is that you have options.

If you can buy a new home without having to sell first, you’re in a much better position. You can take the time to find the right home, buy it, then put your current home on the market and move at your leisure.

However, most people are in a position where they need to sell first, then take the money from the sale to fund the new home purchase. You can make an offer that’s contingent on the sale of your home, but most sellers don’t want to accept those kinds of offers. Sellers won’t take a chance on you having to sell your property in order to sell theirs.

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You may need to find temporary housing if you sell first.

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Once you do sell and need to move, you’ll likely need to find temporary housing in the form of a rental, moving in with friends or relatives. Seldom does it work perfectly where you can buy and sell simultaneously and move seamlessly. It happens, but the odds are against you.

If you have a significant amount of equity in your home, you can take a Home Equity Line of Credit (HELOC) out to purchase your new home and have more time to sell your current home.

Buying and selling simultaneously can be a puzzle, but it can be easily resolved. We’ve helped a ton of clients in this situation and we’d be happy to help you, too.

If you have any questions for me in the meantime, feel free to reach out via phone or email. I look forward to hearing from you soon.

Should We Renovate or Buy New?

Some people need to buy a new home, while others are better off fixing up what they already have. Here’s how they differ.

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If you’re debating whether you should buy a home that needs renovations or just buy brand-new, the answer may or may not come to you quickly.

If you want to renovate, you don’t need that much more of a house, just a little more space. Cost-wise, it makes real sense because you don’t need to spend a whole lot of money and it can make a significant difference. On a 1,000 square foot home, the average renovation costs between $18,000 and $50,000. 

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The reasons for buying new are obvious.

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If you were to purchase a new 1,000 square foot home, that purchase would cost you easily $260,000, including the costs of moving and selling.

The reasons for buying new are obvious. You simply want a change, or a job or family situation necessitates it.

So, should you buy a new home or renovate the one you have? There isn’t an easy answer to this question unless you do this: Take out a piece of paper, split it in two, and write down the advantages on one side and the disadvantages on the other. Whichever has the most advantages and least disadvantages is the winner.

If you have any questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Buying an Older Home

Here are a few issues to be aware of when buying a house over 50 years old.

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If you’re buying a home that’s over 50 years old, there are a few common issues for which you should keep an eye out.

First, check the plumbing system. The older pipes in these homes can sometimes be galvanized and rusted from the inside, which can impact flow and give you a poorer water quality. If this is an issue, you can simply replace the pipes with plastic ones and you’re all good. If your home doesn’t have a septic tank, you should also have a plumber inspect your property’s sewage lines connecting to the street. These pipes are generally cast iron, and they can also clog due to rust, old age, and tree roots. This inspection is relatively quick, easy, and inexpensive.

Next, check the home’s windows for their energy efficiency. Most older homes were built with single-pane windows, and if you don’t replace these with double-pane vinyl windows, you’ll let a lot of heat escape and accumulate dew and condensation, which can stain the wooden frames.

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If your ceiling does contain asbestos, you’re better off hiring a professional to remove it.

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Additionally, be aware that older houses tend to have home plans that aren’t very open, meaning they have lots of little rooms and smaller closets, but not many open spaces.

If you’re thinking of doing any sanding or woodworking to your new house, lead paint is another issue to consider. Lead paint isn’t dangerous unless you sand it down, which causes the lead to become airborne. After 1978, of course, lead paint was outlawed.

If the property has a popcorn ceiling, it could contain asbestos. This is another issue that’s easy to test for, but if your ceiling does contain asbestos, you’re better off hiring a professional to remove it than trying it yourself.

If the home is located in the country, you should get its well tested. Also, check whether the septic tank is large enough and its drain lines are clear. Septic tanks over 50 years old are typically 500-gallon tanks, whereas tanks nowadays hold anywhere from 1,000 to 1,500 gallons.

The bottom line is that older homes have a lot of charm, established landscaping, and—in many cases—are located in good neighborhoods, but you shouldn’t forget about these other things before purchasing one.

As always, if you have questions about this or any other real estate topic, or are thinking of selling a home soon, don’t hesitate to reach out to me. I’d be happy to help.

Happy New Year!

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We just wanted to take a minute to wish you a happy New Year! It’s hard to believe that 2019 has come to a close. It’s been an amazing year thanks to your continued support. The things we’ve accomplished this year, and always, wouldn’t be possible without you. We so appreciate your business, referrals, and friendship, and we’re excited to see what lies ahead. The future is full of possibilities, and we hope you are as excited for this upcoming year as we are. Here’s to making 2020 our best year yet! If you are thinking of buying or selling a home this year, please don’t hesitate to reach out to us with any questions. As always, we are here to help. We look forward to seeing you in 2020!