eugene oregon real estate blog » First Time Buyers

Signs of rebound @ first-time buyer price point?

luke — Tue, 05 May 2009 18:02:21 +0000

A few months ago it seemed as if homes in the $180k-260k price range were < $150 sq ft. Now some of these homes, located in quiet neighborhoods w/desirable schools, are going for > $150 sq ft. Here’s a good example.

Even at asking price, 3% FHA down payment for this home is only about $6500. Obama’s first time buyer tax credit is $8000. If you can come up with the down payment, you will receive most of it back from the IRS within several months of close.

Or, if you have saved up enough for the down payment and don’t have to borrow from friends or family, the credit can be applied to the loan or to remodeling the house in 2010 (what is this going to do for the remodeling industry in 2010?).

Some additional details regarding the credit:

* You need to buy the home prior to December 1, 2009.
* You need to stay in the home for at least three years.
* The credit is for 10% of the purchase price. Most people will be able to claim the full $8k.
* The credit begins to phase out for single filers w/gross AGI > $75k and joint filers w/AGI > $150k.
* The credit comes in the form of a CHECK from the IRS. You simply need to amend your 2008 return.

Roost is hot

luke — Wed, 12 Mar 2008 07:04:24 +0000

Joel Burslem over at FOREM posted an excellent review of Roost, a new real estate search engine platform built upon IDX functionality.

He makes some great points, and one especially relevant to a lot of people who visit this site – the listings are complete. You can quickly search MLS listings for multiple brokers at once.

Time to add it to the Find a Home tab..only to have ZERO people come back to visit this blog once they discover how great Roost is!

Feb 13th Economic Stimulus Package

luke — Tue, 26 Feb 2008 05:35:58 +0000

What does it mean for Eugene home buyers and sellers?

Here’s a quick assessment:

The current FHA-backed loan limit is $260,839. NAR predicts that as a result of the stimulus package, this will grow to approximately $343,209.
The GSE limit will remain at $417,000. Contrary to new reports stating that Jumbo loans will suddenly be available at the conforming (lower) interest rate, that’s simply not the case for most of Oregon. NAR predicts however that Jumbo limits will rise slightly for Jackson and Deschutes Counties.
HUD will post the actual limits on or before March 14, 2008.
These new limits will expire on December 31, 2008.

Home for Sale – Marquet Way – $140 sq. Ft.

luke — Fri, 10 Aug 2007 05:27:18 +0000

This home appears to have arrived on the market yesterday. $259,900 is ALMOST starter home range in Eugene.

The house looks clean inside and out. Yard seems to be a good size. They sell the backyard a bit short by only showing one angle, but it’s possible that the reasoning is that there’s something undesirable behind the house? I don’t think the freeway is directly behind the house, although freeway noise could be one reason for the lower price per sq. foot price for this listing. The water feature picture is sort of funny. It’s a $200 fountain from Jerry’s right?

Overall this is a great price for a starter home. The important thing with a starter home is that you find a neighborhood that will appreciate well over a 5-7 year period. Eugene has some strong micro-neighborhoods within larger neighborhood like “Harlow” or “Cal Young” – these micro neighborhoods include homeowners who care for their yards and homes, and usually include families with a real stake in the friendliness and security of the neighborhood.

3.7/4.0.

New Listing – 3079 Kentwood, $191 sq. ft.

luke — Sat, 21 Jul 2007 16:41:17 +0000

Looks like it’s being sold by real estate brokers. A house they might have bought at a discount and updated. Price seems about average for this area. Definitely in starter home price range…hard to find those in the Ferry Street Bridge area.

Featured Home: 3337 Peregrine (Santa Clara)- $186 sq. ft.

luke — Sat, 07 Jul 2007 05:42:20 +0000

This home has a small, but very tidy backyard. The interior has a nice look to it..it features a kitchen island with an open floorplan. Also, the windows bring a lot of light to the interior.

There is one picture of a bathroom, and it looks small. There appear to be 2 1/2 baths, where one would assume that the bathroom in the picture is the largest of the lot (or the agent decided to ignore this detail).

Even if the bathrooms are small, open kitchens and lots of counter space are far more important if you plan to live in a house for several years.

Back to the ratings system… 4/5. Not a showcase, but it has some assets that come together in a way that can be difficult to replicate via many of the homes currently for sale in Eugene.

1810 Ridgley – Starter home – $178 sq ft.

luke — Thu, 17 May 2007 14:40:45 +0000

Given that most 3BR homes in Eugene have been selling for $300K+, and especially homes in safe, family-friendly neighborhoods like this one, this one should go quickly. The price may be discounted a bit due to proximity to a large nearby electrical station, as well as the freeway. The freeway noise isn’t bad however, and I believe that this entire corridor will be getting a sound wall built as per the new overpass. That leaves the electrical station, which some people will find more bothersome than others. It’s interesting that there are three homes near this one, all selling at a discount. Do your homework; ask the neighbors why those four homes are for sale at once. They might simply be investment homes.

A document that Eugene first time home buyers should read..

luke — Thu, 08 Mar 2007 05:16:40 +0000

This PDF document, available on the State of Oregon’s Real Estate Agency Division website, provides some useful tips for the first time home buyer.

There are many people who buy a home without having basic knowledge of the offer, inspection, and closing processes. If you don’t have your own buyer’s agent when you find a home that you like, pay attention to the details in that PDF.

You might also consider finding a buyer’s agent and setting up a special contract with them. These contracts can be setup so that your agent earns a bonus for negotiating a price below your ceiling. If you don’t have a buyer’s agent to represent you, and you’re buying your first home, make sure you read all that you can about the negotiations process. A good resource for information about how to make an offer is available from Nolo.com

Nolo offers a lot of condensed, accurate legal knowledge. If you consider that the cost of your first house may surpass $200k, a well researched book is worth the investment.

Eugene vs. CNN’s top ten places to live

luke — Tue, 20 Feb 2007 15:48:18 +0000

CNN let’s you compare Eugene-Springfield to their “top ten places to live.”

The first difference is obvious – job growth. Anemic job growth of 2.76% over FIVE YEARS. The second difference is in Median income. Median income in Boise was comparable to Eugene’s, but with a 12.11% job growth rate? Somehow Boise has laid the groundwork for a business-friendly, living-wage friendly economy.

Eugene City leaders, are you listening?

As for housing – when you compare the average home prices in Eugene-Springfield to that of the top ten, it’s obvious that Eugene has simply caught up with the rest of the nation in media home price ($240-250k). It’s also obvious that unless Eugene can create more sustainable wealth, this boom in housing does not provide young families with the ability to move into a home and invest in the community. Not with an average household income level well below the national average.

Follow up – Zillow’s blog post

luke — Wed, 14 Feb 2007 16:02:27 +0000

Coinciding with their 2006 home values report, Zillow also blogged about it.

Judging from their blog post, one thing Zillow understands well is that the data can’t explain everything – or WHO is impacted. Local resources/knowledge are necessary to paint a picture of why one region might have declining home prices, while another (read: NW) can continue to grow at 10%+.

One explanation, aside from general desirability for those who don’t mind a little winter rain: growth management. The NW, relative to most other regions in the country, especially relative to the Southeastern US, tends to push a controlled pattern of development in which city and county counselors, as well as the citizenry assert significant influence over new and existing development projects.

Does this mean that counselors should be responsible for also providing the public with adequate living wage housing for those who can’t afford to get into a starter home at $200k+? You bet. A single income mother with three children, unless she’s a lawyer, is unlikely to be in a position to buy a starter home in the Northwest.

I don’t accept that housing prices would decline if people who previously couldn’t buy a starter home, could find options in the $120-170k range. Those people would not have contributed to the housing boom in the first place, although by renting they apply pressure to the speculative and rental market in a way that might depress home prices initially. Free markets are great for many, but they are a numbers game, a zero sum game that doesn’t determine a person’s true value to society. Eugene should attempt to do more than just limit development for the privileged 60% (Friends of Eugene) who already own a home or are established here.