Greetings: “U.S. existing-home sales rose +4.2% in February from the prior month to a seasonally adjusted annual rate of 4.26 million,” the National Association of Realtors announced. That was better than most economists had predicted at 3.2%.  Most buyers and sellers realize that the wait game is over, and they are diving into the market because of need.  People are realizing the mortgage rates are going to remain 6-7% with some exceptions based on whether sellers buy the rate down.  NAR economists feel, “The real estate market is gaining momentum, and this should translate into stronger sales in 2025.” Homeownership nationwide continues to go down currently at 61%, down from 66% just a few years ago.  Also, many consumers decide to rent ...

Greetings: The Chief Economist for the National Association of Realtors, Lawarence Yun, projects that the Federal Reserve will adopt a gradual approach to the lowering of interest rates in 2025.  However, he expects them to be around 6%.  This stabilization is expected to reignite market activity with existing -home sales projected to reach 4.5 million units in 2025.  Homes prices are expected to increase approximately 2.0%.  NAR forecasts housing starts to reach 1.45 million units, close to the historical annual average of 1.5 million units.  Yun says, “homebuyers will find better opportunities in 2025.”  He feels that “the worst of the affordability crisis is behind us, an improving and stable mortgage rates, continued job growth and more inventory.” There continues to be ...

Greetings: The 2024 Housing market in many ways mirrored 2023 with few homes on the market and not enough buyers able to afford the higher prices and mortgage rates.  This pushed house prices higher and kept affordability historically low.  The US median sales price reached an all-time high at $438,000 (compared to Oregon’s at $449,300 and Douglas County at $324,900).  Existing home sales finished up the year +9.3% (compared to Oregon at +9.5% and Douglas County +5.6%) Many leading economists predict that the housing market will continue to grow in 2025 and 2026 as the economy begins to improve over 2024.  After the election and swearing in of the new President, buyers are feeling more certain about the economy.  With job ...

Greetings: The Oregon Housing market is predicted to settle into a more sustainable pace in 2025 based on some key factors such as lower interest rates, higher job employment, and a slight increase in inventory.  Many economists see a more moderate price growth in home prices.  The average sales price of a home in Oregon hovers around $495,000, which is a slight increase (+2.25) from 2023.  Ontario led the way with a +2.9% increase in home prices followed by La Grande.  Much of this increase is spillover from people relocating because they border Idaho where home prices are still increasing by double digits. In Douglas County, new listing inventory decreased by (-7.1%) in November to 131 from 141 last month. However, year-to-date ...

Greetings: With the election over, the housing market still faces some challenges, especially for the buyers, both in the state of Oregon and Nationwide.  Higher interest rates, less inventory, and affordability issues still plague the housing market.  The fact is home sales have slowed, but we are not in store for a crash.  Nationwide home prices continue to be reflected by region.  The Southwest, Northwest, and East Coast continue to see prices increase while other parts of the US are witnessing slight price decreases. In Oregon the average home value was $506,200 which is up +0.7% over the past year and goes pending within 38 days.  However, cities such as Grants Pass, Lake Oswego, Coos Bay, and Beaverton have seen double digit ...

Greetings: Good News, our existing home sales and housing starts are up nationwide compared to 2023!!!  Existing home sales are expected to be up to 4.7 million from the 4.1 million that we saw in 2023.  New home starts are up 0.57% from 2023 to 1.4 million, which is still well below where they need to be to meet the current demand.  In the US we are 4.5 million units short of a healthy housing supply. In fact, Oregon needs over 442,000 units constructed in the next few years to meet our demand.  “WE NEED MORE HOUSING IN OREGON!” With housing shortages and higher interest rates, current home prices continue to be elevated.  The average home value in the U.S. is $361,282, ...

Greetings:                                                            “WE NEED MORE HOUSING’’ We all recognize that there is not only a housing shortage in the US and Oregon, but right here in Douglas County as well. We also know that the low inventory of homes to buy, the higher interest rates, and inability for buyers to purchase has caused some of the problems.  However, one of the biggest obstacles is lack of buildable land.  The city of Roseburg has recently expanded their Urban Growth Boundary, which the County just ratified, and are supportive of incorporating additional land in the Hucrest and Charter Oaks area.  Over the years, this should help solve our acute problems.  I am proud of our local officials for addressing this issue and acting. Additionally, there ...

Greetings: Economists at Bank of America warned this week that the US housing market is “stuck and they are convinced it will not become unstuck” until 2026 or later.  They said that home prices will stay high and will go even higher.  The housing shortage will persist. There are many reasons from builders not building, high building material costs, strict zoning laws, many present homeowners staying put, and high interest rates, which leads to affordability issues.  Home prices spiked during COVID-19 along with the Fed’s war on inflation which led to higher mortgage rates that priced many potential buyers out of the market.  This hit first time home buyers especially hard. Our new reality in the housing market is lack of supply ...

Greetings: “High prices and mortgage rates have plagued the housing market!  However, we are seeing a welcome shift!” according to Medora Lee, a reporter for USA Today.  She went to say, “In May 2024, more affordable houses came on the market compared to May 2023.”  Also, the median priced home nationwide increased by +0.3% to an all-time high of $442,500!  Inventory, of homes priced between $200,000 and $350,000 have increased by 46%, which is generally recognized as an affordable home, according to Realtor.com.  This is great news for home buyers. Even though higher interest rates still plague the housing market, they are starting to come down to just under 6.9% from a high of 7.6%.  The Federal Reserve Board feels that they ...