Summer has arrived, and this is typically the time of year when our local housing market peaks with active home sales. However, this year seems to be different, as sales remain sluggish and the overall Eugene and Springfield housing market has yet to take off. Higher home prices, elevated mortgage interest rates, and buyer uncertainty all appear to be contributing factors. Still, I remain confident that our local market will begin to improve in the coming weeks.There has been some positive economic news recently, which may pave the way for a stronger housing market. Additionally, the inventory of homes for sale is increasing, setting the stage for a more favorable market ahead.Below is a recent market update from the National Association of Realtors (NAR).

NAR reported more buyers signed residential contracts, but activity remained low compared to recent years.

The weather is warming up, and the housing market may be, too, following a slow start to what’s typically peak homebuying season.

Pending home sales—a forward-looking indicator of home sales based on contract signings—experienced a subtle increase of 1.8% in May compared to April and were up 1.1% from a year ago, the National Association of REALTORS® reported Thursday. This slight rise may point to the market becoming less volatile following a 6.3% decrease in contract signings in April and 6.1% increase in March.

“Consistent job gains and rising wages are modestly helping the housing market,” says NAR Chief Economist Lawrence Yun. “Hourly wages are increasing faster than home prices. However, mortgage rate fluctuations are the primary driver of homebuying decisions and impact housing affordability more than wage gains.”

The latest uptick in sales contracts follows another mildly encouraging sign for the housing market: Existing-home sales inched up 0.8% in May. While the gain was modest for the typically active spring selling season, it marked the first month-over-month increase since February for completed, existing-home sales, NAR’s research shows.

Yun notes that if mortgage rates decrease in the second half of the year, he expects home sales nationwide to rise even more, given strong income growth and a record-high number of jobs.

The average 30-year-fixed rate was 6.77% for the week ending June 26, according to Freddie Mac.

 

Have An Awesome Week!

Stay Healthy!  Stay Safe!  Remain Positive!  Trust In God!

Galand Haas

galand@galandhaas.com

541.349.2620