What the Apparent Cooling of Our Market Means for You

 Is our market entering a cooling period? Let’s discuss. 

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It seems like our market has been losing some momentum of late, but is it? Well, we’re receiving mixed signals, so the answer is not so clear cut. To get a better idea of what’s going on, let’s compare July’s market stats to this month’s numbers: Between the end of July and now, pending and closed sales actually increased by 2.5% and 4.5%, respectively. Less encouraging is the fact that new listings have gone down by about 1.5%.

Now, if we compare the year-over-year numbers for the first seven months of 2019, we see some definite signs of cooling. For example, pending sales have fallen 6.3% year over year and closed sales are down 7% compared to this time last year. New listings have also seen a year-over-year dropoff—almost 8.5%.

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And when it comes to interest rates, a win for buyers is a win for sellers.

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Do these numbers give at least some indication that the market is cooling?  

The short answer is yes, which will likely come as a welcome change for buyers currently occupying the fence. But there’s more good news: Just a few days ago, the 30-year rate for buyers with good credit dropped to 3.5%—the lowest it’s ever been! Meanwhile, the 15-year rate dropped 3%. Obviously, this is fantastic news for buyers, but it’s equally good for sellers. Since we don’t have a crystal ball that allows us to see into the future, we can never be too certain of what’s to come, but I can predict with some certainty that interest rates can’t fall any further. And when it comes to rates, a win for buyers is a win for sellers. This is a golden moment in our market, so don’t let it pass you by! If you have any questions or if you'd like to discuss your opportunities in today’s market, please feel free to give me a call at 541-554-5825 or you can send me an email at GaryRaze@Remax.net. I hope to hear from you soon!

Downsizing: Are You Ready?

Families tend to move into bigger homes as they grow, but, once children grow up and move out, parents are left with a large, expensive home without enough people to fill it. For many, this signals the perfect time to downsize into a smaller home with less maintenance and less financial liability.

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You can use the equity that you’ve built to buy a new home.

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If you no longer need your larger home, think about all the costs you can cut by downsizing. You can use the equity that you’ve built to buy a new home and invest in your retirement fund.

If you or someone you know is in a situation where they could benefit from moving into a smaller home with less maintenance, don’t hesitate to give me a call or send me an email today. I look forward to hearing from you soon.

Want to sell your home? Get a FREE home value report.  

Want to buy a home? Search all homes for sale.

What’s in Store for Our Lane County Market

Our Lane County market is headed for a shift, but there’s still good news for buyers and sellers.

Want to sell your home? Get a FREE home value report.  

Want to buy a home? Search all homes for sale.

As we know, the real estate market crashed in 2007 and 2008 and bottomed out around 2011. Since then, our Lane County market has appreciated by almost 10% per year, but lately, that rate has slowed to 5%

What does this mean? It means we’re reaching the peak of the market. We’re in year seven of our current market cycle, and we’ve never exceeded a seven-year run of appreciation, so that’s as good of an indicator as any that we’re in for a shift. 

Another indicator is interest rates. At the end of 2018, rates hovered around 5% range, and they were expected to be close to the 5.25% mark at this time, but that hasn’t happened. In fact, they’ve decreased, and as of the filming of this video, they’re expected to be at 4% or lower. Why the decrease? The economy is expected to slow down, which means now is the time to sell your home at the very top of the market. 

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The economy is expected to slow down, which means now is the time to sell your home at the very top of the market.

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Many sellers are noticing that home values are higher, and they’re taking advantage of that. As the law of supply and demand dictates, the more inventory increases, the more demand diminishes. At the moment, listings average about two to three offers before selling. Last year, the average was about seven.

If you’re a buyer, the drop in interest rates makes now the perfect time to buy—especially if you’re currently renting. If you buy now, your monthly mortgage payment would be lower than your rent.

If you have any other questions about our Lane County market or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d love to help you.