Lowest since March 2007 (back in the good old days . If this trend continues, our homes are getting more valuable!
RMLS Market Report March 2012

Between mid 2004 and February 2011, like most areas of the US, the Eugene/Springfield real estate market soared to unprecedented heights, and then crashed alarmingly.

The question I hear frequently is “have we hit the bottom yet?” We really won’t know when the turnaround comes until it is a few months behind us, but some factors are encouraging. Since the low point of the market in February, average sale price spiked up to over $220, 000 and is now on it’s way back down for the winter. Time will tell if we hit the previous low. The current average sale price as of  November 2011 is  $191,700.

Another indicator of real estate market health is the level of available inventory in months.

Inventory in months is calculated by dividing the active listings at the end of the month in question by the number of closed sales for the month. As the chart at left shows, residential inventory levels have been more stable in 2011 than they were in 2010. Typically inventory levels higher than seven months indicate that we are in a buyers market, and levels below four months suggest a sellers market.

Historically, residential real estate has been a great investment, and thanks to the current low interest rates, today’s buyers are getting into the market at an opportune time.

Source: RMLS

Last week, more signs appeared that things are coming our way in housing.

Wednesday the Census Bureau reported that the nation’s home ownership rate moved up in the third quarter to 66.1%, slightly ahead of the prior quarter. Some commentators feel the three-year decline in home ownership might be starting to bottom out. Home ownership may have been encouraged by rising rents, with the vacancy rate now up to 9.8%.

The National Association of Realtors (NAR) chimed in with a forecast that existing home sales should be up 1% this year, then up another 4.3% next year. Although the median price will fall slightly this year, it’s predicted to rise 2.6% in 2012. New home sales, after dropping 4.7% this year, are projected to rise 21.3% in 2012. And this year’s 1.8% price hike will be followed by a 3.8% gain next year. Let’s hope they’re right.

This information provided courtesy of:

Ladelle White
Senior Loan Officer
Guild Mortgage
1850 Oak St
Eugene, OR 97401
Office: 541-343-1995
Fax: 541-343-2434

A lot of home owners are upside down on their mortgages in the last few years. If you are in this position, I have a lot of compassion for you.

There are a number of reasons you may be in this position, and you are not alone. In Lane County in 2010, out of 3,100 home sales,  there were 300 foreclosed homes sold, and 600 short sales. If you owe more on your home than the market will support when selling it, and you have to move on, or can’t afford the payments, you have some options. Two of the most common are  short sale, where you sell your home for less than you owe and convince your lender to let you off the hook, or a foreclosure, where you walk away and let the bank take your home.

The conventional wisdom for the past couple of years is that it’s better to negotiate a short sale than to walk away from your home and let the bank foreclose. Many say that the hit on your credit is less with a short sale than with foreclosure. There is however, no proof that this is the case. Oregon is a non-recourse state when it comes to foreclosures. In most cases the bank cannot legally come after you for the money you owe them if they take your home. This is not the case with a short sale. The bank has the right to issue a deficiency judgement against you, and try and collect the balance of your loan after your home is sold and the proceeds turned over to them.

If you, or someone you know is in this position, how do you know what to do? Consult an attorney. Ideally a bankruptcy or real estate attorney. Realtors are not qualified to give advice on your options in this area.

For the name of a real estate attorney that may be able to help, call me at 541-225-8081.

Download this brochure from the Oregon Association of Realtors for more information on what your options are if you are facing foreclosure.

Source: Oregon Association of Realtors

QUOTE OF THE WEEK…”Success is the maximum utilization of the ability that you have.”–Zig Ziglar, American author and motivational speaker

To help the economy succeed, the Fed is certainly using its ability to the max. Coming out of the FOMC meeting Wednesday, the Fed announced “Operation Twist”–a strategy of selling its short-term securities to buy long-term bonds to drive down long term interest rates, especially for mortgages. This latest Fed effort to help the housing market is great news for anyone thinking of buying a home, as mortgage rates should stay very very low.

Source: US Federal Reserve

In February 2011, the average home sale price in Lane County was $180,000 -  the lowest level in 7 years. Now that we’re in the summer selling season, average sale price is up to $229,000. Time will tell if the dreaded “double-dip” occurs and we experience another decline, but looking from the historical perspective, the future looks promising.

Comparing June 2011 to June 2010, the average sale price grew by 0.8%. The median sale price fell 10.1%. Comparing May 2011 to June 2011, the average sale price grew from $189,900 to $229,000 (20.6%), and the median sale price also increased from $169,900 to $182,400 (7.4%).

Of course, real estate is hyper-local, and pricing and availability can vary from neighborhood to neighborhood, and block to block. It’s all about supply, demand, and desirability. To find out how your neighborhood stacks up, give me a call for a custom market analysis or download the full June 2011 MLS Market Action Report.

Compared with April 2010, sales of single family homes were down 21.9% in April 2011, and the median sale price dropped 9.5%. At the end of February 2011, the average sale price in Lane County had dropped to $179,400. But sales have rebounded since then, and the average sale price hit $207,900 this April.

Of course, real estate is hyper-local, and pricing and availability can vary from neighborhood to neighborhood, and block to block. It’s all about supply, demand, and desirability. To find out how your neighborhood stacks up, give me a call for a custom market analysis, or download the full April 2011 MLS Market Action Report

We all hear a lot about Foreclosures and Short Sales in the National News, but what are the numbers influencing Eugene home sales?

Here’s how it shook out in 2010 for Lane County:

• Distressed properties comprised 21.2% of new residential listings, and 27.1% of residential sales.
• Short Sales were 9.6% of new listings, and 8.5% of sales.
• Bank Owned properties were 11.6% of new listings, and 18.5% of sales.

What is a “distressed” property?
Homes for sale are referred to as distressed when the owner cannot sell the home for enough to pay off their mortgage. The most common types of distressed properties are foreclosures, and short sales. Distressed properties typically sell for less than market value, though they often are in need of some repairs or suffer deferred maintenance.

What is a foreclosure?
Foreclosure is the legal process by which a mortgagee, usually a lender, obtains a termination of a mortgagor’s equitable right of redemption, either by court order or by operation of law (after following a specific statutory procedure). This is typically done when a homeowner has not made payments on the home for a period of time. Once the procedure is complete and the lender has full legal rights to the home, it is known to the lender as a “REO” (Real Estate Owned). These REO homes typically sell for below current market value – if you would like to receive a list of available homes, please email me and ask for the “foreclosure list”

What is a short sale?
In a short sale, the owner of a home typically owes more than the home is worth in the current market. Rather than letting the lender foreclose on the property, the seller attempts to sell the home for what they can, and get the lender to accept less than payment in full on the loan. This usually results in less damage the sellers credit, and fewer repercussions than a foreclosure judgment.

Source: RMLS, Eugene Real Estate Resource.

These changes were effective April 18, 2011

(for case numbers assigned on or after this date)

1. The Upfront Mortgage Insurance remains at 1.00%.
2. The Annual Insurance Premium will increase from .90% to 1.15% for LTV’s greater than 95% on 30 yr loans.
3. The Annual Insurance Premium will increase from .85% to 1.10% for LTV’s less than or equal to 95% on 30 yr loans.
4. The Annual Insurance Premium will increase from .25% to .50% for LTV’s greater than 90% on 15 yr loans.
5. The Annual Insurance Premium will increase from 0% to .25% for LTV’s less than or equal to 90% on 15 yr loans.

To read Mortgagee Letter 11-10 in its entirety, click here.
In other words: on a $100,000 FHA 30 year fixed this equals a $21 higher monthly payment for homebuyers.

This information provided courtesy of:

Ladelle White
Senior Loan Officer
Guild Mortgage
1850 Oak St
Eugene, OR 97401
Office: 541-343-1995
Fax: 541-343-2434

Click to download the latest report.

The average sale price for single family homes in Lane County is at levels not seen since Spring of 2004. When comparing February 2011 to February 2010, the average sale price decreased by 15.4%, while the median sale price also went down 16.3%. At the month’s rate of sales, the 1,908 active residential listings would last approximately 11.9 months.