May 2009 Real estate sales: Eugene, Springfield, Cottage Grove, Creswell and greater Lane County Oregon Market update.

After posting record high levels of housing inventory in January, the estimated monthly supply of available homes in Lane County has dropped to 8.1 months in May. One year ago this month the number was 8.6

The average home sale price in May 2009 was $224,200 (down 15.5% from May 2008), and there were 247 closed sales compared to 274 closed sales in May 2008.

The biggest losers - sale prices down more than 14% from last year:

• Properties in the rural areas of South Lane County including Cottage Grove and Creswell
• West Lane County properties including Veneta and Elmira
• Junction City

Bucking the trend:

• West Eugene, which includes Whiteaker, West Jefferson, and Downtown neighborhoods is up 2% from last year.
  

Please email me and request "May Market Action" to receive the full report and follow the numbers for your area.

What does all this mean if you need to buy or sell in our current market?

1. Price continues to be the dominant factor in determining how quickly properties will sell, or if they will sell at all.
2. Sellers must ensure that the condition of their property is superior, that their price is competitive, and that their Realtor is a master at marketing and negotiation if they wish to sell in a reasonable time frame.
3. Buyers still have access to a vast number of housing options, and the opportunity to purchase at value prices, if they can obtain financing, and especially if they can pay cash.
4. Agents must work with a high level of dedication and focus to serve the interests of their clients, and to ensure the future of their careers through the current downturn and into economic recovery.

If you have questions about our market or the current data please call or email. And if you need to buy or sell in the Eugene/Springfield area and want top-notch representation, I'm here to help.

Cheers!
Bobby

Under contract in 7 days in Cottage Grove?

When I worked up the market analysis for this classic craftsman, I found only one comparable sale in the previous 9 months!

The pace of sales in this charming, historic town about eighteen miles south of Eugene is positively glacial. I knew it would take a combination of optimal condition, aggressive pricing, and dynamic marketing to get it sold in a reasonable time frame so the owners could move forward with their life plans. Even with all these factors aligned, I anticpated a market time above my average of forty one days between listing and sale.

Condition
Fortunately, the home showed great pride of ownership. Improvements consisted largely of de-cluttering - minimizing small items on flat surfaces, taking down personal family photos, and moving infrequently used items into storage. The owners paid for their own home inspection in advance, and promptly made repairs to the few items that would be required as a condition of funding for prospective buyers.

Marketing
My philosophy on marketing my listings can be summed up in one word: overkill. Since more than 80% of buyers find their homes online, a heavy focus on popular national and local real estate websites is essential. Quality and quantity are both important. As with all my listings I used a professional photographer, virtual tour to capture buyer leads, extensive feature lists and descriptions of the home and community, and an additional slideshow of the home and surrounding amenities. Color flyers, directional signage, and frequent postings on craigslist are a part of the campaign to attract attention and communicate value.

Pricing
Getting this element right is far and away the most critical factor in getting a home sold in a reasonable time frame. Or getting it sold period. Often, sellers try to base their initial asking price on the idea that they need bargaining room. "I need to get X amount of money for my home, so let's price it five, ten, or twenty percent above that figure and negotiate downward if necessary." While that may seem logical, it's important to remember that you can't negotiate if you don't have an offer from a buyer, and if your home is priced above market value, you probably won't get one! In this case the sellers had good equity in the home and were able to price at market value.

Results
After seven days and three showings, we had an offer within five percent of list price. I helped the seller negotiate up to 97% of list price, inspections are complete and accepted, and we are proceeding to close. The sellers have been able to proceed with the purchase of their next home and are highly satisfied with my service, and I have a new perspective on selling homes in outlying areas!

If you are considering buying or selling a home, and want expert assistance in getting results like this, please get in touch for a no-obligation discussion of your options

Bobby Stevens, Broker 541 225-8081
Eugene’s Alternative - REALTORS®
1553 Oak Street, Eugene, OR 97401
office: 541 302-5999 | office fax: 541 349-9616

March 2009 Real estate sales: Eugene, Springfield, Cottage Grove, Creswell and greater Lane County Oregon Market update.

We're still in a strong "buyers market", but home sales are up nearly 35% since February.

The current available inventory of 1,919 residential properties would last 9.7 months, down 52.9% from a record high of 20.6 months in January 2009.

Comparing March 2009 with March 2008, closed sales dropped 19.9% and pending sales fell 11.6%.

The average sale price is down by 13.2% since this time last year. The Median price fared better, down 5.9%.

Please email me and request "March Market Action" to receive the full report and accompanying charts.

What does all this mean if you need to buy or sell in our current market?

• Price continues to be the dominant factor in determining how quickly properties will sell, or if they will sell at all.
  

• Sellers must ensure that the condition of their property is superior, that their price is competitive, and that their Realtor is a master at marketing and negotiation if they wish to sell in a reasonable time frame.
  
• Buyers still have access to a vast number of housing options, and the opportunity to purchase at value prices, if they can obtain financing, and especially if they can pay cash.
  
• Agents must work with a high level of dedication and focus to serve the interests of their clients, and to ensure the future of their careers through the current downturn and into economic recovery. If you have questions about our market or the current data please call or email. And if you need to buy or sell in the Eugene/Springfield area and want top-notch representation, I'm here to help.

Bobby Stevens, Broker 541 225-8081
Eugene's Alternative - REALTORS®
1553 Oak Street, Eugene, OR 97401
office: 541 302-5999 | office fax: 541 349-9616

Let's Get Real about Real Estate

Ok, so everyone knows the economy is not so great, mortgage loans are hard to get, and there is a glut of inventory on the market and fewer and fewer qualified buyers. The good news?? Well, interest rates are nice and low. Anything else? Hmmm...it may be time for a bit of "tough love" for buyers and sellers out there. If you are a buyer and are worried about housing prices continuing to fall, one thing to remember is you will never know you are at the bottom of the market until you see it in your rear view mirror. Conversely, if you are a seller you may be upset about the fact that you cannot get as much money for your home as you could have in 2005, or you may not be able to net as much after closing costs and commissions, or it may take your home longer than you would like to sell, or you have to do more updating, buyer concessions and repairs than you would like.

Here is a question for you to contemplate whether you are buying or selling: "Why are you buying/selling your home?" Buyers, are you buying a home to live in or to "flip"? If you are contemplating buying a home to live in, then over time your investment will be a good one, regardless of what the market is doing at this moment. It may take more than 6 months to increase your equity, but in the long term, owning a home is a solid investment choice. Sellers, the issue for you is equity -- during the time you have owned your home, have you ever refinanced or gotten a home equity loan or line of credit? If so, then you have essentially already spent your equity and although this may sting a little, if you think about it in that way, it may make your net a little easier to swallow.

I think the major issue in the housing market on both sides lately is that folks are looking at their homes as a sort of "ATM" account or a stock portfolio. It is time for a mind shift back to thinking of homes as a place to live in, raise your family and enjoy for the long term, not a way to make a quick profit. Once we change our thinking, the real estate market doesn't seem like such a scary place, does it?

Thanks for reading, happy new year to all!

Denise

October 2008 by the numbers: Lane County Real Estate Market update.

Inventory, listings, sales, and sale prices decline for the October 2008 reporting period.

Each month the RMLS (Regional Multiple Listing Service) publishes market statistics for it's service area. As a Eugene area Realtor I focus on the data for Lane County. Being intimately familiar with these numbers helps me to better serve my clients, both buyers and sellers, in a changing market.

For the month of October, total inventory stood at 9.2 months, down from 10.2 in September and up from 7.2 one year ago. This means at the current rate of sales, with no new listings entering the market, it would take over 9 months to sell all of the approximately 2,307 residential properties currently listed.

New property listings have decreased 18.5% and closed sales are down 17.2% compared to October 2007.

The average home sale price is down 5.3%, and the median sale price has dropped 4.5% when comparing the 12 month period ending October 2008 with the same period ending October 2007.

There were 251 homes sold in October 2008, and 2,626 sold since the first of this year, compared to 303 homes sold in October 2007, and 3,647 sold since the first of last year.

Once again, these numbers suggest that:

1. Sellers must ensure that the condition of their property is superior, that their price is competitive, and that their Realtor is a master at marketing and negotiation if they wish to sell in a reasonable time frame.
2. Buyers still have access to a vast number of housing options, and the opportunity to purchase at value prices, if they can obtain financing, and especially if they can pay cash.
3. Agents must work with a high level of dedication and focus to serve the interests of their clients, and to ensure the future of their careers through the current downturn and into economic recovery.

If you have questions about our market or the current data please call or email. And if you need to buy or sell in the Eugene/Springfield area and want top-notch representation, I'm here to help.

Bobby Stevens
541 225-8081
bobby@alternativerealtor.com

Are we in an “affordable” market yet?

One of the indicators of a shifting real estate market is the aspect of affordability. What is affordability and what does it mean for buyers and sellers? Affordability is simply a measure of an individual’s or family’s financial ability to buy a home. Affordability can be a good economic indicator for any market but it is different for each market. An Affordability Index (AI) can help you assess your needs as a real estate buyer or seller. You can calculate an AI in any market, as follows:

AI = Median Income / Income to Qualify x 100

Income to qualify for a conventional mortgage - a median priced home less 20% downpayment, then take 25% of that to see the required income.

In short, the closer an index to 100, the better: If the index is over 100 – homes are very affordable; if the index is less than 100 – home prices are starting to exceed affordability. Eugene’s index is 95.8 - not bad, all things considered!

If you have any questions about these formulas and what they mean to you regarding your real estate decisions, contact me.

Happy calculating!
Denise

Get your home ready for winter before it's too late!

When it comes to home maintenance it's always "better late than never", but who wants to work outside when it's too cold to move your fingers!

Here are my top 5 things to take care of before cold and damp becomes the default condition:

1. Clean your roof, muck out the gutters, clear the downspouts, and seal corner joints if necessary. I see a lot of roof and fascia (wooden trim) damage caused by rain gutters that are unable to do thier job because they are packed with leaves, and in some cases hosting a crop of grass! If you don't like heights, hire a handyperson.

2. Clean the deck, and seal the surface. This is another area where a little neglect can cause a lot of damage, and a dirty deck is slippery when wet, so don't risk damaging yourself!

3. Touch up missing paint or finishes on your home - even if you plan to paint next summer. Exposed wood eventually loses the ability to hold paint, and when moisture gets under the edges of remaining paint the trouble spreads. Always make sure the first coat on bare wood is primer. Putting topcoat on unprimed surfaces is asking for early paint failure.

4. Check your heating system and change the filter. Ok, so this doesn't really qualify as an outdoor task, but again, better to do it now than when the mercury dips into the 20's.

5. Take a freakin' break already! Life is short, and you'll never hear anyone on their deathbed lament that they didn't spend more time on a ladder. Have hot toddy or two. Go outside and play catch with the kids. Give your S.O. a backrub. Just chillax - the work will always be there for you. And give me a call if you need a referral to a local pro for help with any of your home maintenance and improvement projects.

Best of the season,
Bobby

541 225-8081
bobby@alternativerealtor.com