Millennials Are Driving US Home Sales

628 NW Portland Avenue, Bend, OR 97701
Presented by Chris Scott | Offered at $1,249,000 | MLS# 220113262

From housingwire.com

Experts see even better days ahead as inventory returns in spring

For the second consecutive month, existing home sales rose, as January’s numbers were up 0.6% from December.

According to Lawrence Yun, chief economist for the National Association of Realtors, home sales continue to ascend in the first month of the year, as buyers quickly snatched up virtually every new listing coming in the market.

To him, sales easily could have been 20% higher if there had been more inventory and more choices.

Low inventory remains an enormous problem for the industry, especially with mortgage rates hanging below 3%. But experts agree better days are ahead, with more homeowners expected to move during the warmer months.

Yun also said the continued COVID-19 vaccine rollout and financial stimulus from President Joseph Biden’s American Rescue Plan will only aid in more home sales – which will in turn prop up the economy even more.

Younger-aged homebuyers are expected to continue to pack the market this year, especially with the possible passage of Biden’s $15,000 tax credit for first-time homebuyers.

First-time homebuyers were responsible for 33% of home sales in January, up from 31% in December 2020 and from 32% in January 2020.

Full article on housingwire.com


Why Owning a Home Is a Powerful Financial Decision

56634 Little River Court, Bend, OR 97707
Presented by Tuttle & Tuttle Group | Offered at $2,095,000 | MLS# 220108042

From Keeping Current Matters

In today’s housing market, there are clear financial benefits to owning a home: increasing equity, the chance to build your net worth, and appreciating home values, just to name a few. If you’re a renter, it’s never too early to think about how homeownership can propel you toward a stronger future. Here’s a dive into three often-overlooked financial benefits of homeownership and how preparing for them now can steer you in the direction of greater financial security and savings

1. You Won’t Always Have a Monthly Housing Payment

Personal finance advisor Dave Ramsey explains, “Every payment brings you closer to owning the house. When you pay your rent, that money is spent. Gone. Bye. Not returning. But when you pay your mortgage, you work toward full ownership.”

As a homeowner, you can eventually eliminate the monthly payment you make on your house. That’s a huge win and a big factor in how homeownership can drive stability and savings in your life. As soon as you buy a home, your monthly housing costs begin to work for you as forced savings in the form of equity. When you build equity and grow your net worth, you can continue to reinvest those savings into your future, maybe even by buying that next dream home. The possibilities are truly endless.

2. Homeownership Is a Tax Break

One thing people who have never owned a home don’t always think about are the tax advantages of homeownership. The same article states, “You have tax advantages. Many of the costs of owning a home—like property taxes—are tax deductible. And if you’re paying off a mortgage, you’ll get to count your mortgage interest as a deduction when you file your tax return.”

Whether you’re living in your first home or your fifth, it’s a huge financial advantage to have some tax relief tied to the interest you pay each year. It’s one thing you definitely don’t get when you’re renting. Be sure to work with a tax professional to get the best possible benefits on your annual return.

3. Monthly Housing Costs Are Predictable

A third benefit is the fact that monthly costs start to become more predictable with homeownership, something that doesn’t happen if you’re renting. Ramsey also notes, “Rent rates will go up. Even if you found a killer deal in a hot area, inflation, competition, and rising property values will cause your rent to go up year after year.”

With a mortgage, you can keep your monthly housing costs relatively steady and predictable. Your monthly costs are most likely based on a fixed-rate mortgage, which allows you to budget your finances over a longer period of time. Rental prices have been skyrocketing since 2012, and with today’s low mortgage rates, it’s a great time to get more for your money when purchasing a home. If you want to lock-in your monthly payment at a low rate and have a solid understanding of what you’re going to spend in your mortgage payment each month, buying a home may be your best bet.

Full article on Keeping Current Matters


U.S. Home Buyers Drove Contract Signings to December Record

4632 SW 18th Pl, Portland, OR 97239
Presented by Dori Olmsted | Offered at $1,069,000 | MLS# 20230131

From Mansion Global

Activity remained unseasonably high, though listing shortages threaten to take steam out of the housing market

The U.S. market continued an unseasonal rally in December, with pending sales hitting an all-time high for the month, according to an index released Friday.

Home buyers signed 21% more contracts in December than a year prior, as surging demand for homes kept dealmaking at unusually high levels given the time of year, according to the National Association of Realtors (NAR) Pending Home Sales Index.

Frenzied housing activity continued to show slight signs of deceleration, though it’s likely due to a severe lack of homes on the market, according to Lawrence Yun, chief economist at the NAR.

Signed contracts decreased by an ever-so-slight 0.3% in December compared to November, the fourth time in a row that dealmaking fell on a month-to-month basis. Pending sales peaked in August, though housing activity has remained at historically high levels since.

“Pending home sales contracts have dipped during recent months, but I would attribute that to having too few homes for sale,” Mr. Yun said in a news release on Friday. “There is a high demand for housing and a great number of would-be buyers, and therefore sales should rise with more new listings.”

Regionally, the South had the strongest December, with contracts up 27% over December 2019. The Northeast was next, with dealmaking up 22% year-over-year, followed by the West, up 19% annually, and the Midwest, up 14%, according to NAR’s figures.

On a local level, Portland, Oregon; Las Vegas; Denver; Los Angeles and Boston have recorded the most significant recovery in their markets since the lockdowns of last spring, according to a separate index from realtor.com.

Home prices in these and many other cities have soared as a result of competition over too few homes in the wake of the pandemic, which has spurred many to seek out new living arrangements while working and schooling from home. Inventory shortages could improve this spring, however, as sellers list their homes during the peak buying season, economists have speculated.

Full article on Mansion Global


2020’s Existing-home Sales Attain 14-Year Peak

65823 Bearing Drive, Bend, OR 97701
Presented by Pam Mayo-Phillips and Brook Havens | Offered at $2,995,000 | MLS# 220105134

From Realtor Magazine

According to the National Association of Realtors® report last Friday, existing-home sales in 2020 surged to the highest level in 14 years, landing 22% higher than a year ago. Existing-home sales—completed transactions that include single-family homes, townhomes, condos, and co-ops—posted big gains year over year and rose by 0.7% in December 2020 compared to November 2020’s already unseasonably high rates.

NAR’s Chief Economist, Lawrence Yun, said “This momentum is likely to carry into the new year, with more buyers expected to enter the market. Although mortgage rates are projected to increase, they will continue to hover near record lows at around 3%. Moreover, expect economic conditions to improve with additional stimulus forthcoming and vaccine distribution already underway.”

Existing-home sales in December 2020 reached a seasonally adjusted annual rate of 6.76 million. Still, home buyers are finding a limited number of homes for sale. Inventory levels are at record lows. That has placed continued pressure on home prices, which continue to post double-digit yearly gains.

The median existing-home price for all housing types in December 2020 was $309,800, up nearly 13% compared to December 2019, NAR reports. Every major region of the U.S. saw home prices rise last month.

Full article on Realtor Magazine


Overall Home Sales Rise Nearly 26% From 2019

485 NW Spring St, White Salmon, WA 98672
Presented by England Property Group | Offered at $1,495,000 | MLS# 20673312

From Realtor Magazine

The National Association of REALTORS® reported last Tuesday that existing-home sales in November climbed 25.8% compared to last year.

Existing-home sales include completed transactions on single-family homes, townhomes, condos, and co-ops, slightly decreased by 2.5% in November compared to October’s unseasonably high levels. The slight decrease last month ended a five-month streak of month-over-month gains. Still, all four major regions across the country posted significant year-over-year growth.

Buying frenzy continued to press on housing markets in November. NAR reported that home prices are rapidly climbing up due to the high demand, posting double-digit increases compared to a year ago.

NAR’s Chief Economist Lawrence Yun said that circumstances are far from being back to the pre-pandemic normal. However, the latest stimulus package and with the vaccine distribution underway, and a very strong demand for homeownership still prevalent, robust growth is forthcoming for 2021.

Full article on Realtor Magazine