Housing Inventory Continues To Grow Even As New Listings Dip

1579 Fir Crest Rd, Mosier, OR 97040
Presented by England Property Group | Offered at $1,895,000 | MLS# 22429678

From Forbes

The week ending July 9 saw active inventory in the housing market continue to grow at a double-digit annual pace, even as new sellers took a step back from the market around the 4th of July holiday.

“This year’s summer housing markets are feeling the heat of record-high home prices on top of scorching inflation at a 40-year high,” said George Ratiu, senior economist and manager of economic research for Realtor.com. “As households pay much more for cars, clothing, food, gasoline and services, there are fewer dollars left over from each paycheck at a time when housing affordability is a growing challenge.”

For a household with a $75,000 income, only 23% of homes on the market are affordable, down from 50% of inventory in 2018,” said Ratiu. “While these trends are resulting in a cooler summer home buying season than usual, the road ahead points towards a promising shift, away from 2021’s severe undersupply and win-at-all-costs competition. As the Fed continues to fight inflation, borrowing costs will keep rising, cooling demand at a time when we’re seeing more homes for sale. In turn, prices will continue to adjust to a new equilibrium.”

The median listing price advanced by 15.9% over last year, in its 30th consecutive week of double-digit yearly gains. However, listing price growth is moderating, moving below the pace seen in late May and early June. With softening demand and rising supply, Realtor.com expects to see home price growth continue to ease in the second half of 2022.

New listings—a measure of sellers putting homes up for sale—declined 6% from one year ago, reflecting a pullback in seller activity over the Independence Day holiday. Still, more homes have come up for sale this year compared to a year ago in 13 of the last 16 weeks, a trend that is expected to return. Many homeowners are ready to pursue Covid-delayed plans to sell, while capitalizing on still-high prices.

Active inventory continued to grow, rising 28% above one year ago. The shift in supply is due to several weeks of new listings coming online, boosting the inventory level almost a third higher than a year ago. Additionally, houses are also spending longer on the market in many large metro areas, contributing to a boost in homes for sale. The report found that real estate markets remain undersupplied compared with 2019, but they are moving in the right direction.

Homes spent just one day less on the market than this time last year. The pace of transactions is moderating noticeably as higher prices and interest rates take a toll on demand. At this rate, Ratiu said homes will start lingering longer on the market and sellers will have to contend with more competition.

Full article on Forbes


Home Buying Is 5% Cheaper Than a Week Ago

1643 Village Park Ln, Lake Oswego, OR 97034
Presented by Tami Ferrey | Offered at $1,595,000 | MLS# 22699226

From REALTOR® Magazine

Mortgage rates are falling—at least for now—after posting rapid jumps in June. Over the last two weeks, the 30-year fixed-rate mortgage has dropped by one-half of a percentage point. Home buying is about 5% more affordable than a week ago, translating to about $100 less in monthly mortgage payments, economists at the National Association of REALTORS® wrote on the Economists’ Outlook blog.

Rates are dropping as concerns mount over a possible economic recession, says Sam Khater, Freddie Mac’s chief economist. “While the drop provides minor relief to buyers, the housing market will continue to normalize if home price growth materially slows due to the combination of low housing affordability and an expected economic slowdown,” Khater says.

Freddie Mac reports the following national averages with mortgage rates for the week ending July 7:

  • 30-year fixed-rate mortgages: averaged 5.30%, with an average 0.8 point, dropping from last week’s 5.70% average. Last year at this time, 30-year rates averaged 2.90%.
  • 15-year fixed-rate mortgages: averaged 4.45%, with an average 0.8 point, dropping from last week’s 4.83% average. A year ago, 15-year rates averaged 2.20%.
  • 5-year hybrid adjustable-rate mortgages: averaged 4.19%, with an average 0.4 point, falling from last week’s 4.50% average. A year ago, 5-year ARMs averaged 2.52%.

Freddie Mac reports commitment rates along with average points to better reflect the total upfront cost of obtaining the mortgage.

Full article on REALTOR® Magazine


Housing Shortage Starts Easing as Listings Surge in June

842 Carpenter Hill Rd, Medford, OR 97501
Presented by Mike Lee | Offered at $1,399,000 | MLS# 220142811

From cnbc.com

A historic housing shortage brought on by the one-two punch of slow construction and strong pandemic-induced demand is finally starting to ease.

Active listings for homes jumped 19% in June, the fastest annual pace since Realtor.com began tracking the metric five years ago. And the number of new listings during the month finally surpassed typical pre-Covid levels, up 4.5% from a year ago. Overall inventory, however, is still about half pre-Covid levels.

Some markets that saw the biggest surges in demand during the pandemic are now among those seeing the biggest gains in supply: Austin inventory was up close to 145% from a year ago, Phoenix was up 113%, and Raleigh up nearly 112%. Other markets are still seeing supplies fall: Miami is down 16%, Chicago is down 13%, and Virginia Beach is down 14%.

“We expect to see additional inventory growth in July, building on accelerated improvements seen throughout June,” said Danielle Hale, chief economist at Realtor.com, adding that the supply gains increased as the month progressed.

And Hale said even more homeowners could decide to sell, adding new supply as buyers grapple with higher costs and difficulty finding homes that fit their budgets.

Still, the expanding supply is not easing sky-high home prices yet. The median listing price in June hit another record high of $450,000 according to Realtor.com. Annual gains are moderating slightly, but still up almost 17%. That’s partly because the share of larger, more expensive homes is rising.

The costs of owning the median-priced home in the second quarter required 31.5% of the average U.S. wage, according to a new report by ATTOM, a property data provider. That’s the highest percentage since 2007 and up from 24% the year before, marking the biggest jump in more than two decades. Lenders generally see a 28% debt-to-income ratio as the ceiling for approving a mortgage. It’s why some potential homebuyers today are no longer qualifying for a mortgage.

As a result, the affordability of buying a home in the second quarter dropped in 97% of the nation, according to ATTOM. That’s up from 69% in the same quarter a year ago, and the highest reading since just before the housing crash in the Great Recession.

ATTOM calculates the affordability for average wage earners by determining the amount of income needed for major homeownership expenses on a median-priced home, assuming a loan of 80% of the purchase price and a 28% maximum debt-to-income ratio.

“With interest rates almost doubling, homebuyers are faced with monthly mortgage payments that are between 40% and 50% higher than they were a year ago — payments that many prospective buyers simply can’t afford,” said Rick Sharga, executive vice president of market intelligence at ATTOM.

A few factors could thwart the continued growth in inventory levels, including a pullback from potential sellers who might decide to wait for the market to strengthen again. Still, Hale of Realtor.com noted that new and pending home sales were up this month, so some people might feel now is the right time to buy.

“As expectations of higher future mortgage rates rise, today’s home shoppers could be more motivated, especially now that they’re seeing more options to choose from,” Hale said.

Full article at cnbc.com


Leading Oregon Real Estate Agencies Join Forces to Form Largest Real Estate Company in State for Sales Volume Under Sotheby’s International Realty Brand

2275 NW Lakeside Place, Bend, OR 97703
Presented by Ryan McGlone | Offered at $3,500,000 | MLS# 220144243

From prnewswire.com

Sotheby’s International Realty today announced that its independently owned and operated affiliate, Cascade Sotheby’s International Realty in Oregon, has merged with local firm, The Hasson Co., which achieved more than US$2.8 billion in sales volume in 2021. The partnership brings together two of the biggest real estate firms in Oregon that will now operate as Cascade Hasson Sotheby’s International Realty.

In 2021, the two companies achieved a combined total of US$6 billion in sales volume, and through the partnership, are now the largest real estate company in Oregon in terms of sales volume. Cascade Hasson Sotheby’s International Realty will now consist of a total of 22 offices and 575 independent sales associates.

“The integration of Cascade Sotheby’s International Realty and The Hasson Co. combines the prowess and renown of two leading real estate firms in Oregon,” said Philip White, president and CEO of Sotheby’s International Realty. “This strategic partnership solidifies their position as a leading residential real estate firm in the state of Oregon. I greatly look forward to supporting Deb, Steve, Lynae, and the entire Cascade Hasson Sotheby’s International Realty team.”

“Our partnership with The Hasson Co. brings together the strengths and synergies of two established, family-run businesses,” said Deb Tebbs, co-CEO of Cascade Hasson Sotheby’s International Realty. “In addition to being affiliated with the most trusted and recognized real estate brand in the world, our clients know they can rely on us for global representation with a local family feel from listing to close.”

As part of the merger, Steve Studley and Lynae Forbes will remain in place as Co-CEO and President, respectively. The strategic integration unites two well-respected, family-run organizations that will service the state of Oregon and the Southwest Washington region. The partnership expands the firm’s service areas to include the cities of West Linn and Wilsonville, Oregon, and builds upon the company’s existing locations in Portland; Ashland; Bend; Cannon Beach; Vancouver, Washington; and more.

Cascade Hasson Sotheby’s International Realty is part of the Peerage Realty Partners portfolio.

Full article at prnewswire.com


A Majority of Consumers Say It’s a Good Time To Sell Your House

60450 Sunset View Dr, Bend, OR 97702
Presented by Silvia Giffin-Knight | Offered at $1,395,000 | MLS# 220142805

From Keeping Current Matters

If you’re a homeowner thinking about selling your house, you’re probably looking for the best time to make your move. That means you’re likely balancing a number of factors, like your changing needs, where you’ll go when you sell, and today’s mortgage rates in order to time it just right.

According to recent data, that sweet spot could already be here. The latest Home Purchase Sentiment Index (HPSI) by Fannie Mae finds that 76% of consumers believe now is a good time to sell.

The graph below shows the percentage of survey respondents who say it’s a good time to sell a house. The big dip in March and April of 2020 reflects how consumer sentiment dropped at the beginning of the pandemic as uncertainty about the health crisis grew. Since then, the percentage has grown consistently as more people feel confident it’s a good time to sell.

In fact, survey respondents think it’s an even better time to sell a house today than they did in 2019, which was a strong year for the housing market. The latest survey results indicate one of the strongest peaks in seller sentiment in nearly three years (see graph below):

What Makes Today a Good Time To Sell?

One reason so many people think it’s a good time to sell is because there are still more buyers in today’s market than there are homes for sale. That’s driving home prices up, making it a good time to sell your house.

And if you’re on the fence about whether or not to sell because you don’t know where you’ll go once you do, know that you might have more options today than in previous months. That’s because the number of homes coming onto the market has grown each month since the start of the year. When more homes come onto the market, it gives you more opportunities to find one that meets your changing needs.

Full article on Keeping Current Matters


Homeowners See 12-Month Equity Gain of $64K

6301 NE 232nd Ave, Vancouver, WA 98682
Presented by John Fitzgerald | Offered at $1,499,950 | MLS# 22129442

From REALTOR® Magazine

Rising home prices keep pushing up equity for homeowners. The average homeowner gained about $64,000 in equity from the first quarter of 2021 to the first quarter of this year, according to a new report from CoreLogic.

About 62% of all properties nationwide saw an increase in annualized equity gains in the first quarter. California, Hawaii and Washington posted the highest average equity increases at $141,000, $139,000 and $114,000 respectively, according to the report. On the other hand, the states seeing the lowest equity gains were Iowa ($17,300) and North Dakota ($19,000).

This chart from CoreLogic shows the average equity gains from last year’s first quarter to this year’s in each state across the country.

Full article on REALTOR® Magazine


How Homeownership Impacts You

20137 SW Inglis Dr, Beaverton, OR 97007
Presented by Dennis Coxen | Offered at $1,788,111 | MLS# 22509699

From Keeping Current Matters

June is National Homeownership Month, and it’s the perfect time to reflect on how impactful owning a home can truly be. When you purchase a house, it becomes more than just a space you occupy. It’s your stake in the community, an investment, and a place you can put your stamp on.

If you’re thinking about buying a home this year, here are some of the benefits you’ll experience when you do.

The Emotional Benefits of Homeownership

Because it’s a place that’s uniquely yours, owning a home can give you a sense of pride and happiness in several ways.

Your Home Can Reflect Your Tastes and Personality

Investopedia puts it like this:

“One often-cited benefit of homeownership is the knowledge that you own your little corner of the world.”

That knowledge can lead to a powerful, emotional connection to the place where you live. But so can the realization that your home will grow with you. Because it’s yours, you have the freedom to make updates to it as your needs and tastes change. As Logan Mohtashami, Lead Analyst for HousingWire, says:

“The psychology is that this is yours and you’re going to make it as good as possible because you’re in for a long time, . . . “

And that can create a greater sense of ownership, pride, and connection with your home and your community.

It Can Enhance Your Neighborhood and Civic Engagement

Homeownership can lead you to get even more involved with your local area. After all, you’re putting your roots down in a location and will want to do what you can to help improve it, much like your home. In a recent report, the National Association of Realtors (NAR) says:

“Living in one place for a longer amount of time creates and [sic] obvious sense of community pride, which may lead to more investment in said community.”

The Financial Benefits of Homeownership

When you choose to become a homeowner, you’re making a financial decision as well. That’s because your home is also an investment.

It Can Help You Feel Financially Stable

Homeownership is truly one of the best ways to improve your long-term financial position. Not only will you have a predictable monthly housing expense that can benefit your budget in the short term, but you’ll also gain equity as your home appreciates in value and you make your monthly mortgage payment. As Freddie Mac says:

“Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”

It Can Grow Your Wealth

Because of your growing equity, you can build your net worth as a homeowner. And when you compare the difference in net worth between a renter and a homeowner, it’s clear that owning a home truly offers a great way to build your long-term financial position.

According to the latest data from NAR, the median household net worth of a homeowner is roughly $300,000, while the median net worth of renters is only about $8,000. That means a homeowner’s net worth is nearly 40 times that of a renter.

Full article on Keeping Current Matters


Home Listings Suddenly Jump as Sellers Worry They May Miss Out on the Red-hot Housing Market

2676 NW Nordeen Way, Bend, OR 97703
Presented by Tenaya Eakin | Offered at $1,895,000 | MLS# 220143922

From cnbc.com

Sharply higher mortgage rates have caused a sudden pullback in home sales, and now sellers are rushing to get in before the red-hot market cools off dramatically.

The supply of homes for sale jumped 9% last week compared with the same period a year ago, according to Realtor.com. That is the biggest annual gain the company has recorded since it began tracking the metric in 2017.

Real estate brokerage Redfin also reported that new listings rose nearly twice as fast in the four weeks ended May 15 as they did during the same period a year ago.

“Rising mortgage rates have caused the housing market to shift, and now home sellers are in a hurry to find a buyer before demand weakens further,” said Redfin Chief Economist Daryl Fairweather.

Sellers clearly see the market softening. Pending home sales, a measure of signed contracts on existing homes, dropped nearly 4% in April from March. They were down just over 9% from April 2021, according to the National Association of Realtors. This index measures signed contracts on existing homes, not closings, so it is perhaps the most timely indicator of how buyers are reacting to higher mortgage rates. It marks the sixth straight month of sales declines and the slowest pace in nearly a decade.

April sales of newly built homes, also measured by signed contracts, dropped a much wider-than-expected 16% compared with March, according to the U.S. Census.

Full article at cnbc.com


Buyer Outlook Positive for Upcoming Quarter

545 Bartel Rd, Cannon Beach, OR 97110
Presented by Dennis Coxen & Nicki Whittle | Offered at $1,999,999 | MLS# 22503894

From REALTOR® Magazine

While many industry analysts have expected increasing hesitation in the housing market, buyers largely remain optimistic, a new report says.

About 28% of 5,000 prospective home buyers are “mostly confident” that the next three months will be a good time to buy a home, according to a new survey from OJO Labs, a real estate search website operated by Movoto. However, they aren’t quite as confident as they felt in April when 31.1% of respondents responded at that level.

That group of buyers is the largest cohort of respondents, the survey authors say. Further, 18.7% of survey respondents “strongly agreed” that the next three months will be a good time to buy a home, bringing the total of positive responses to about 47% of respondents overall, the authors say.

Home buyers have felt headwinds with rising prices and mortgage rates and a shortage of homes for sale. But they’re not giving up their hunt this spring and summer.

Buyers may see the equity other homeowners are accumulating and be drawn to the long-term financial benefits of homeownership.

Full article on REALTOR® Magazine


Almost 45% of Homeowners are Now Equity Rich

229 NW Flagline Drive, Bend, OR 97703
Presented by The Vandenborn Group | Offered at $1,395,000 | MLS# 220141716

From housingwire.com

Soaring home prices continue to serve existing homeowners, with nearly 45% of all property owners now considered equity rich, a year-over-year jump that boosted 13% more homeowners into the prime position.

A homeowner is considered equity rich when they have at least 50% equity in their home, a feat more easily accomplished when skyrocketing home price appreciation widens the gap between what someone owes on their mortgage and the value of their house.

About 44.9% of mortgaged residential properties in the first quarter of 2022 had at least 50% equity in their property, according to ATTOM. The portion of mortgaged homes that were equity rich rose from 41.9% in the fourth quarter of 2021 and from 31.9% during the same period in 2021.

“Homeowners continue to benefit from rising home prices,” Rick Sharga, executive vice president of market intelligence for ATTOM, said in a statement. “Record levels of home equity provide financial security for millions of families, and minimize the chance of another housing market crash like the one we saw in 2008. But these higher home prices and rising interest rates make it extremely challenging for first time buyers to enter the market.”

In the first quarter of 2022, just 3.2% of mortgaged homes, or one in 31, were considered seriously underwater – meaning the owner owed at least 25% more than the property’s estimated market value. While that figure is largely unchanged from the 3.1% of seriously underwater homes in the prior quarter, it was a marked improvement from 2021’s 4.7%, or one in 21 properties.

The decade-long housing marketing boom, which continued from late 2021 into early 2022, largely has been attributed to the rise in home equity. But across the country, the median home price rose 2% during that period – to another record of $320,500, according to ATTOM. Market analysts say a glut of home buyers chasing a historically tight supply of properties also brought up prices even higher.

ATTOM expects the latest home equity trend to slow in the remaining months of this year.

“It’s likely that equity will continue to grow through the rest of 2022, although home price increases should moderate as the year goes on,” Sharga said. “Rising interest rates, the highest inflation in 40 years, and the ongoing supply chain disruptions due to the war in Ukraine are likely to weaken demand and slow down home price appreciation.”

Nationwide, 45 states saw equity rich levels rise from the fourth quarter of 2021. However, at the same time, the percentage of mortgaged homes that were seriously underwater increased in 28 states.

Idaho had the highest level of equity-rich properties with 68.8%, while Vermont (68%), Utah (63.6%) and Washington (60.9%) followed. Meanwhile, Mississippi ranked first for having the country’s biggest portion of mortgages seriously underwater at 17%. It was trailed by Louisiana (11.3%) and Wyoming (10%).

Full article at housingwire.com