Why Right Now May Be the Time to Sell Your House

45900 Tibbetts Rd, Neskowin, OR 97149
Presented by Camilla Arlit | Offered at $2,500,000 | MLS# 20-1410

From Keeping Current Matters

The housing market is now positioned for an even stronger year as it has incredibly recovered in 2020. Record-low mortgage interest rates are a driving factor in this continued momentum, with average rates hovering at historic all-time lows.

Based on the recent Realtors Confidence Index Survey from the National Association of Realtors (NAR), buyer demand across the country is incredibly strong. However, this is not the same case on the supply side. Seller traffic is simply not keeping up. Here’s a breakdown by state:

As the maps show, buyer traffic is high, but seller traffic is low. With so few homes for sale right now, record-low inventory is creating a mismatch between supply and demand.

NAR also just reported that the actual number of homes currently for sale stands at 1.28 million, down 22% from one year ago (1.64 million). Additionally, inventory is at an all-time low with 2.3 months supply available at the current sales pace. In a normal market, that number would be 6.0 months of inventory – significantly higher than it is today.

What does this mean for buyers and sellers?

Buyers need to remain patient in the search process. At the same time, they must be ready to act immediately once they find the right home since bidding wars are more common when so few houses are available for sale.

Sellers may not want to wait until spring to put their houses on the market, though. With such high buyer demand and such a low supply, now is the perfect time to sell a house on optimal terms.

Full article on Keeping Current Matters


People Moved to Oregon, Especially Bend, in 2020 Despite the Pandemic

187 NW Scenic Heights Drive, Bend, OR 97703
Presented by Julie Moe & Jared Chase Group | Offered at $1,595,000 | MLS# 220102359

From katu.com

Bend, Oregon is now being famously called “Zoom Town” – thanks to a spike of homebuyers in 2020.

Zoom Town, a reference to the video conferencing platform Zoom, described cities with a spike of workers who moved as they discovered that their jobs could be done remotely during the pandemic.

In addition to this, Oregon remains a popular moving destination. Most people have been buying homes in Bend with the intention of living and working there rather than buying a vacation home.

It is also been said that it is financially much more feasible to get a nice family home in and around Portland, as opposed to the Bay Area.

Full article on katu.com


Migration to booming ‘Zoom towns’ in Pacific Northwest sends home prices into overdrive

19204 Gateway Loop, Bend, OR 97702
Presented by The Ladd Group | Offered at $870,500 | MLS# 202003108

From nwnewsnetwork.org

“Zoom towns”, a new term that you can add to your lexicon. These are scenic places experiencing a surge of house hunters. Booming demand comes from workers freed by the pandemic to work from home long term. One place where the pandemic has charged greatly, an already hot real estate market, is Bend, Oregon.

“I think ‘Zoom town’ very accurately captures the experience that we’re having right now,” said Brian Ladd, a Principal Broker with Cascade Sotheby’s International Realty in Bend.

“For anyone that had interest in moving to a town like ours, that plan was greatly accelerated because of COVID,” Brian Ladd said in an interview over Zoom. “When they were able to work remotely, or they were forced to work remotely, all of a sudden it became an option.”

Brian Ladd’s observations are shared by brokers in some outdoorsy, vacation destinations around the Pacific Northwest. Zoom towns could include Sunriver and parts of the Oregon Coast besides Bend.

The housing market nationwide has shown remarkable strength in 2020, driven by low-interest rates and desire among buyers to acquire more elbow room. What distinguishes the Zoom towns is strong in-migration this year from larger locales. At these destinations, home sales since late spring have gone on a tear, resulting in very low inventory and rapidly rising housing prices.

In Bend and surrounding Deschutes County, the average residential home price in October was up 17% year over year. The median sales price in October in Bend was $560,000. Brian Ladd said the average number of days on the market for desirable homes to go pending is around five days, which means many homes get multiple offers.

“What it felt like is it really unleashed a whole wave of people who had had the dream of moving and living in a beautiful place like this, and it seemingly all happened at once,” said Brian Ladd.

Full article on nwnewsnetwork.org


Fannie Mae and Freddie Mac Baseline Limit Will Increase to $548,250

654 View Rd, Florence, OR 97439
Presented by Jack Winter | Offered at $1,550,000 | MLS# 20-1885

From nahbnow.com

The Federal Housing Finance Agency (FHFA) announced on November 24, 2020 that the maximum baseline conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2021 will increase to $548,250 from $510,400.

The loan limit will rise 7.42% in 2021 because FHFA has determined that the average U.S. home value increased by that amount between the third quarters of 2019 and 2020.

Higher loan limits will be in effect in higher-cost areas as well. The new ceiling loan limit in high-cost markets will be $822,375. The previous ceiling was $765,600.

What does this mean for homebuyers?

The increase keeps homebuyers in step with a more expensive housing market by allowing them to borrow more to the limit of what is called a “Conforming Loan”. With conforming loans, buyers can purchase homes with lower down payments and more competitive rates.

Full article on nahbnow.com


October existing-home sales see ‘spectacular’ 26.6% annual gain even with short supply and surging prices

8585 SE 242nd Ave Damascus, OR 97089
Presented by Veronica Park | Offered at $4,800,000 | MLS# 19657180

From cnbc.com

According to the National Association of Realtors, sales of existing homes in October soared to 4.3% compared with September, as well as a 26.6% annual increase to an adjusted rate of 6.85 million units.

NAR’s Chief Economist, Lawrence Yun, called this “a spectacular gain”. To him, the surge in sales in recent months had offset the spring market losses. And with the news of having a COVID-19 vaccine will soon be available, and with mortgage rates projected to hover around 3% in 2021, he expects the market’s growth to continue into 2021. Yun forecasts existing home sales to rise by 10% to 6M in 2021.

Based on the report, there were 1.42 million existing homes on the market at the end of October, a 19.8% drop compared with October 2019. At the current sales pace, the data represents a 2.5-month supply, the lowest on record.

NAR also said that the median price of an existing home sold in October was $313,000, up 15.5% annually. That is the highest median price on record and reflects the far stronger sales on the higher end of the market.

Danielle Hale, Chief Economist at realtor.com, mentioned that while the rising coronavirus cases could dampen sales, mortgage rates could tick up in the months ahead and test the strength of this seemingly unstoppable housing market.

On another note, investors continue to be strong in the market. The severe shortage of existing homes for sale has been incredibly beneficial for the nation’s homebuilders, who have seen very strong demand. Mortgage applications to purchase newly-built homes were up nearly 33% annually in October, according to the Mortgage Bankers Association.

Full article on cnbc.com