Market Conditions in 97401>Question Details

Mf, Home Buyer in 97401

Honestly, what is happening to the market in Eugene OR? Seems as cloudy as the weather...

Asked by Mf, 97401 Fri Mar 14, 2008

Help the community by answering this question:

Answers

11
Your zip code of 97401 is an appealing Ferry Street Bridge neighborhood where listing inventory is presently 83 properties on the market priced from $200,000 to $500,000 with average list price of $317,645 and average living area of 1,852sf. Average asking price $/sf is $172. Average days on market presently is 62.

For sales in 97401, there are 74 sales within the last 6 months that, from $200,000 to $500,000, average $301,106 asking price and $290,635 sold price (or 3.5% discount) and $172/sf. Average days on market for this sales activity is 102.

Presently, there are 20 pending sales with an average asking price $292,555 and 1,715sf of living area. Average days on market for these 20 pending sales is 85.

So, for zip code 97401 the market appears to be the most active for prices $250,000 to $350,000.

Because the Eugene market, like any other large market, is fragmented into varying neighborhoods each having differing elements of comparison...as usual it depends on location.

I have 15 years of real estate appraisal experience in Lane Count (specifically Eugene/Springfield) and have watched our market grow, ebb, flow, moderate, boom, etc....would be happy to help you with your real estate needs. I am also founder too:

http://www.HouseNow.com

Which receives daily updates from 2 mls feeds. It's free to search, no obligation, incorporates Google maps so you can see what is where...and I invite you all to check it out. Regards, Chris@HouseNow.com
Web Reference: http://www.HouseNow.com
1 vote Thank Flag Link Mon Mar 17, 2008
Take into consideration this little tidbit, if Bernake raises interest rates even, 50 basis points, or a half of a percent (example from 0.0% to 0.5%), the bottom will once again drop out of the housing market. Housing prices will retract and it will continue to be a buyers market.

It is important to note that home prices adjust to any increase in the Federal Funds rate. It has been shown to be historcally true and was evidenced as recently as the 1990's and 1980's housing price corrections. When rates in the 1980's hit the high teens housing prices dropped to the lowest, inflation adjusted prices since the 1950's. Look at the housing chart from the link below.

http://www.businessinsider.com/the-housing-chart-thats-worth…

Remember that, ideally, a mortgage should be no more than 3 times the buyers gross yearly income with a 20% down payment. Since median income in Eugene is $40,000.00 ($39,395.00 = 40 (hours per week) x 52 (weeks per year) x 18.94 (local avg hourly salary - see web reference from the Register Guard)), it would be intuitive to believe that median home costs would be around $120,000.00. But that is not the case, look at Trulia.com for the Eugene area and you will find that Median Sales prices are around $220,000.00. That is over $100,000.00 over the estimated price or over 80% higher. You would need a salary of $66,000.00 per year with a $22,000.00 down payment to economically afford that price.

So ask yourself the serious question of "what can I really afford?" Do I really need to buy now? Is this house really the best time for me? If the answers are yes, then find a trustworthy agent and bank and do your due dilligence. If not keep saving your money, with interest that down payment will keep on growing.
0 votes Thank Flag Link Thu Sep 30, 2010
As a loan officer who sees lots of property appraisals and talks to lots of Realtors I can tell you that we are seeing price reductions on listings in the area. That said, a reduction in the price of an over-priced listing does not mean that the actual sales price of homes has come down. Year over year we have actually seen a small increase in the median price of homes that have sold. Over time this could change if the price drops go below the current median price.

I've seen lots of gloom and doom being pushed out there in the media and there are some reasons to be cautious but not bearish. Just like any other type of market you make your money on the way in, not on the way out. Sadly, lots of people forgot that axiom over the last few years and assumed that real estate would just go up forever. Obviously, this is not the case and we have all learned a hard lesson from what's happened. That said, I truly believe that a cautious, well thought out purchase of a well priced property can be a great deal in this market.
0 votes Thank Flag Link Wed Sep 29, 2010
To reply to Jason:

""To generalize a profession and I quote., " Remember that Real Estate agent are trying to sell you something, just like a car salesman. They want you to buy, the negative ramification of foreclosure or home price depreciation does not affect them once they sell the home and receive their commission. That falls on the home buyer, or You.

Oh really? Then I must be on a different planet then the rest of the world. As a home owner (who happens to have a real estate license) I am affected by the depreciation and foreclosure epidemic just like any other home buyer or seller. My home is the largest assest I have and I have taken a hit like many. I get tired of people thinking that real estate agents are somehow resistent to what is going on with the market. That what's happening doesn't affect us. Well it does."


But the point that I am trying to make without offending anyone is the structure. Real Estate agents are paid on commision, therefore "No Sale = No Pay." Maybe if there were a different incentive program, such as lawyers, where you pay the Agent for time that they dedicate to the project. That way their time would be charged instead of directly on the sale. After all how much time would a real estate agent spend with a person who they no is in no position to buy? Probably none, because it is not cost effective. Pay based on hours now that might be different. But as it stands since the Real Estate market is commision based. The closest field is sales and for sheer monetary comparision, car salesmen are the next highest commision based professionals that align with real estate agents.

Also real estate agents (See Fiduciary Duty for Agents) are not held accountable for the innapropriate pricing that the buyer absorbs after the house is sold. Their own property is a completely different matter. I am not saying that real estate agents didn't feel the sting of the price depreciation, just that they did not feel the sting of their clients price decreases.

So in summary, I am not saying that real estate agents are bad people, on the contrary a couple of my friends are agents. Just pointing out that they are in sales, and their closest counterparts are car salesmen. And that the loss in value of each of their clients property was not felt directly by real estate agents, that was shouldered solely by the home owner.

Specifically for Jason, I am glad that you care about your customers. If you keep that attitude, you will most likely see you business stay even or possibly grown during this down period.
0 votes Thank Flag Link Fri Sep 17, 2010
Mf - while The Truth provides some useful information I disagree with one statement made.

To generalize a profession and I quote., " Remember that Real Estate agent are trying to sell you something, just like a car salesman. They want you to buy, the negative ramification of foreclosure or home price depreciation does not affect them once they sell the home and receive their commission. That falls on the home buyer, or You.

Oh really? Then I must be on a different planet then the rest of the world. As a home owner (who happens to have a real estate license) I am affected by the depreciation and foreclosure epidemic just like any other home buyer or seller. My home is the largest assest I have and I have taken a hit like many. I get tired of people thinking that real estate agents are somehow resistent to what is going on with the market. That what's happening doesn't affect us. Well it does.

If I sell anything it's service and my knowledge of the local real estate marktet and area. If a buyer buys, great, if they don't so be it. Hopefully I've helped them along the way.

My main concern is the well being of my customer, if I was in this just for me then I would just become a real estate investor.
0 votes Thank Flag Link Tue Aug 31, 2010
If you have been tracking the news you have seen that existing home sales dropped from June to July by 27.2%. Now some will tell you that homes sales ticked up .3%, but what they fail to tell you is that the number are from June and not from July when home sales crashed.

Almost all economist agree that the less than a 1/2 percent jump was because of the First Time Homeowner Tax Credit expiring and buyers trying to take advantage of it. But now there is no tax credit to artificially keep prices up. The prices in the housing market will take another downward dip.

In Eugene you can estimate a 10%-35% price drop in the next coming quarters. And a 10% price drop is a lot better than an $8500 dollar tax credit, which was a credit on taxes that you have already paid. If you did not pay that amount in taxes, you will not get the full credit. But mathematically speaking, pay $180,000.00 for a home and get a $8500 tax credit or have the price drop 10% and buy the house for $162,000.00. That is a 18,000.00 dollar savings vs $8500.00. Or for the same house with the tax credit, 5% for an $180,000.00 dollar house vs 10% in a price drop.

The market will soon be a True “Buyers Market.” Less than 17% of houses on RMLS.com are in pending status. That means that 83% of houses listed on RMLS.com are still waiting for an offer. That percentage will actually increase in the coming year and the subsequent price drop will make housing more affordable in Eugene.

As a buyer, you should wait until you see the prices drop. They should be around national averages. The Eugene market actually trended with average housing prices in America from 1996 to 2006, but the downward price drop was not realized in Eugene. It is coming.

http://www.businessinsider.com/the-housing-chart-thats-worth…
0 votes Thank Flag Link Tue Aug 31, 2010
Be very careful who you talk to. Real Estate CEO's have been coming on T.V. to extol that "Now is the Best Time to Buy a Home," That is simply untrue.

This is a subjective metric as there are more factors to consider than mortgage rates. Things such as jobs, foreclosures waiting to come onto the market, buyer timeline, and economic outlook are all factors.

Remember that Real Estate agent are trying to sell you something, just like a car salesman. They want you to buy, the negative ramification of foreclosure or home price depreciation does not affect them once they sell the home and receive their commission. That falls on the home buyer, or You.

Remember Caveat Emptor (Buyer Beware). You need to do you due dilligence prior to even getting ready to look at houses. If you deem yourself ready and happy with the market conditions, make sure you find a real estate agent you can trust and proceed with caution. Something that the majority of people with ARM, and Interest Only Loans did not due and as a result ended up loosing their homes.


Foreclosure Article Below.
0 votes Thank Flag Link Mon Aug 9, 2010
Prices are dropping and will exponentially drop in the coming quarters. Oregonians thought that they were insulated from the price decrease, Well They Are Not. If you want to buy a house for cheap, you should wait 2-3 quarters and judge the financial health of the local area before you buy.

Oregon just jumped to #3 in the nation for foreclosure rates, behind Florida and Nevada. There are over 2 times the amount of pre-foreclosure homes waiting to come onto the market than there is in the market now(IE if there are 600 homes in foreclosure, around 1200 are still in pipeline to be on the market within the next year.

The First Time Homeowner credit of $8500 ($5500 after taxes are assessed on the income) has now gone by-by. People who bought using that tax credit in the Eugene area saw an immediate Home Value DEPRECIATION on their property thanks to artificially elevated demand.

I would wait until the market bottoms out or even does a minor tick up. Most Analyst predict another 15%-25% drop in home prices depending on area. Since Eugene did not see a sharp price correction, it will be on its' way. Being that you are a late arriver to the market, you have the opportunity to buy a house far below current prices. (A $180,000 house now will be around $135,000 with a 25% drop and $153,000 with a 15% drop).


The First Time Homeowner credit of $8500 ($5500 after taxes are assesed on the income) has now gone by-by. People who bought using that tax credit in the Eugene area saw an immediate Home Value DEPRECIATION on their property thanks to artificially elevated demand.

I would wait until the market bottoms out or even does a minor tick up. Most Analyst predict another 15%-25% drop in home prices depending on area. Since Eugene did not see a sharp price correction, it will be on its' way. Being that you are a late arriver to the market, you have the opportunity to buy a house far below current prices. (A $180,000 house now will be around $135,000 with a 25% drop and $153,000 with a 15% drop).
0 votes Thank Flag Link Mon Aug 9, 2010
We are slowing and prices look off about 9% overall from last year. Not too bad in this big mess for a University town. Things are still moving off the market, but they must be desirable and well priced as buyers have more choices. I think 97401 has another 9-14% to give back to the marketplace from peak prices in late 2006-2007. Still better than most places. I think prices will slowly drift down to that level before heading flat awaiting a better economy.
0 votes Thank Flag Link Tue Dec 2, 2008
Prices are down in Eugene as most of the country but not quite as bad as most. You can say the market is as mild as our climate not to hot not too cold.. This is an excellent time to buy in one of the steadiest markets in the country. We seem to stay above #15 best markets in the country. Salem (Marion County) 50 miles to the north was #1 in appreciation last year in the entire us. The city of Eugene has a very strict urban growth boundary and a large liberal population. This keeps new construction and market growth exploitation at bay. We have many unique protected nature reserves in the city as well. The weather also plays a part. It's mild enough to keep people coming but not enough sun to make it a too much a hot spot for the masses to relocate. I expect prices to be flat with the occasional desperate seller dropping far below the line making it a great place and time to invest or just buy no matter what neighborhood . check out the blog on http://www.teamthayer.com for more Eugene market info.
Justin Thayer
Team Thayer
Keller Williams
543-7287
Web Reference: http://www.teamthayer.com
0 votes Thank Flag Link Wed Mar 26, 2008
I like your analogy because it was sunny now it is raining. The market is correcting itself, prices are stabilizing. If you would like a market report from the last 12 months, please email and I will send it to you. There are some reasonably priced homes out there and I would be able to help you find them!
0 votes Thank Flag Link Fri Mar 14, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer