The inventory of homes for sale in the Eugene and Springfield area has increased and may continue to inch upward for some time. This is welcome news for homebuyers who have struggled to find properties that fit their budgets and meet their needs. Improved inventory means more competition, which creates the potential for lower sales prices.

In the Eugene and Springfield area, home prices are still escalating, but the rate of increase has slowed. For higher-priced homes, values are beginning to decline. Overall, the market is currently more buyer-friendly than it was a year ago.

Home inventories are expected to continue their upward trend over the next quarter, which would further improve conditions for buyers.

The following is a recent article from the National Association of Realtors that provides additional insight into current housing market trends.

Home purchasers may find they have their best negotiating power in more than five years. Read more from NAR’s latest housing report.

More homes are finally hitting the market—and buyers are taking notice. Existing-home sales rose 2% in July from the previous month and inched above last year’s pace, as home buyers respond to the largest inventory of homes for sale in years, the National Association of REALTORS® reported Thursday. Existing-home sales reflect completed transactions for single-family homes, townhomes, condos and co-ops.

“Home buyers are in the best position in more than five years to find the right home and negotiate for a better price,” says Lawrence Yun, NAR’s chief economist. “Current inventory is at its highest since May 2020, during the COVID lockdown.” The number of For Sale signs is up nationally by about 16% over last year’s levels.

Home prices are moderating, too. The median existing-home price was $422,400 in July, representing just a 0.2% increase from a year ago, NAR reports. Month-to-month, home price increases are occurring at a noticeably slower pace.

That “ever-so-slight improvement in housing affordability is inching up home sales,” Yun says. “Wage growth is now comfortably outpacing home price growth, and buyers have more choices.”

Some Markets See Price Adjustments, But Sellers Still Faring Well

More listings and stiffer seller competition may be starting to rein in home price growth in many markets. The essentially flat annual home price growth suggests that about half of the country is experiencing price reductions, Yun says. (

But home sellers shouldn’t fret: Most are still faring well financially, and no major market declines appear on the horizon, Yun says. In July, foreclosures and short sales made up just 2% of transactions, remaining near historic lows.

Further, “the market’s health is supported by a cumulative 49% home price appreciation for a typical American homeowner from pre-COVID July 2019 to July this year,” Yun says. Over the last five years, the average homeowner’s wealth has increased by $140,900, NAR’s research shows.

For buyers, however, the mix of rising inventory and slower price growth may offer more negotiating power than they’ve had in years. Home builders also are making deeper concessions: In August, 37% of builders reported lowering their prices—the highest share since 2022—with average price cuts of about 5%, according to the National Association of Home Builders. Two-thirds of builders said they’re offering incentives—such as mortgage rate buydowns or closing cost assistance—which marks the highest use of sales incentives in at least five years.

Buyers are responding to the discounts in some markets. Condominium sales, for instance, increased in July in the South—a region where prices have fallen over the past year, Yun notes.

Also, mortgage applications—a gauge of future homebuying activity—remain well-above last year’s levels. Purchase applications were up 23% from the same week a year ago, the Mortgage Bankers Association reported Wednesday. That suggests more prospective buyers are preparing to enter the market.

But Don’t Discount the Competition

While the market may be opening up with more choices, buyers still can face plenty of competition. In July, 21% of homes sold above the asking price, and the average listing drew 2.1 offers, according to the latest REALTOR® Confidence Index, which reflects responses from 1,500 real estate professionals about their most recent transactions. Fifty-eight percent of real estate pros also reported that properties sold in less than one month.

Competition from all-cash buyers also remains strong. Cash transactions comprised 31% of existing-home sales in July, remaining at historical highs, NAR reports. This growing segment of buyers bypassed the elevated mortgage rates that have been blamed for sidelining many would-be buyers during the spring and summer months. First-time buyers, for example, accounted for 29% of July’s existing-home sales, well below their typical 40% share.

 

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Galand Haas

galand@galandhaas.com

541.349.2620