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. 

“

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

”

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.

“

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

”

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.

“

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

”

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.