The real estate market in the Willamette Valley is booming, with more people looking to buy homes than to sell homes in Eugene.
EUGENE, Ore. – The real estate market in the Willamette Valley is booming, with more people looking to buy homes than to sell homes in Eugene, Oregon.
Realtor.com released their list of the Top 10 U.S. Cities with Housing Shortages. Two cities in Oregon made the list, with Eugene at #2 and Portland at #8.
The last time that the housing market in Eugene was this strong was in 2006. Properties experienced a severe price loss during the recession around 2008. It wasn’t until 2012 when the industry saw a price recovery.
” Lane County current has less than 2 month of inventory available, which indicates a strong sellers market,” said Arica Mitchell, Broker with Hybrid Real Estate- Song Real Estate Team.
“It’s been a really volatile 10 years. We are pricing now where we were at the market’s top in 2006 and 2007,” said Randal Whipple, Broker with Berkshire Hathaway Home Services.
Realtors are struggling to keep up with the demand, with only 0.6 percent of Eugene’s housing stock for sale. Karen Church, Principal Broker for RE/MAX Integrity and 2016 President of the Eugene Association of Realtors said her company has been aggressively marketing and even knocking on doors to get more listings.
“If you price it (the listing) correctly and it’s in a great condition, it will sell within 24 to 48 hours, potentially with multiple offers. Also potentially with the price being above what the list price is,” said Church.
Those who are looking to buy property are facing high pricing, limited selections to chose from, and competing with many other buyers. According to Realtor.com, some are jumping on listings within seconds of initial posting.
“What we’ve been experiencing for the last four years is the inventory has finally opened up. People who were not in a position to downsize or move in and acquire that bigger home, that’s changed for them,” said Cindy Whipple, Principal Broker with Berkshire Hathaway Home Services.
She explains that an equal buyer-seller’s market is six months worth of inventory. But right now at RE/MAX Integrity, their supply would be out in two and a half months if they were to stop taking new listings.
So why is Eugene such a hot spot for wanna-be homeowners? It’s all about livability.
“We have an amazing city. The access to recreation is within minutes,” said Cindy Whipple.
“We’ve also been attracting a lot of high tech jobs. The Silicon Shire and that’s been really infusing our area with a lot of higher paying jobs and it’s only going to grow from here,” said Randal Whipple, Broker with Berkshire Hathaway Home Services.
Chelle Burkert is a homeowner and investor in Lane County, who bought a property several months ago. She says the process took her approximately five months because of the limited selection and the race against other buyers.
“At the time that we were looking, I felt the properties were asking too much money for the condition they were in or possibly location that they were. So I was looking for something that had all of the key aspects that we could afford that was in good condition that didn’t need too many renovations. And that was hard to find,” said Burkert.
Realtors agree that the group having the most difficulty are first-time buyers and those with a budget, because the properties that fall within their desired price range are scarce.
“As they are going to that market, that 150 to 225 price point is where we are seeing a lot of home buyers right now. However, we don’t have a lot of inventory in that market right now,” said Church.
Here is the list of the Top 10 U.S. Cities with the biggest housing shortages:
Grand Rapids, MI
Fort Wayne, IN
Santa Rosa, CA
Information Pulled From: Housing Shortage Hits Home