Has Eugene - Springfield Oregon Real Estate Hit Bottom?

Have you heard? The real estate market is in recovery! At least that is what Jed Smith, managing director of quantitative research for the National Association of Realtors is saying. But don’t go cashing in those home line-of-credits just yet. This is going to be a very slow recovery. Thanks to new requirements that a buyer now actually has to have a job and the sad fact that there are too few jobs available you can bet that this will be pretty stagnant. I would expect to remain flat over the next few years, but we are moving in the right direction and that is great news!

So, what does that mean for our local market? Eugene-Springfield Real Estate typically follows the national trends pretty consistently (Just with a year or so lag time). With that said, assuming we have hit bottom, where have our local prices landed? Well, according to Oregon mls statistics we landed right back in the 2004 real estate market – the beginning of the boom. What that means for those of us who purchased in the craze is that all that equity we knew we were gaining while crawling over each other in our bidding wars does not exist.

Ask your Realtor, this market is heating up. Month over month the sales activity in Eugene and Springfield Oregon has increased. Although May sales were down 16.3% this May when compared to May 2010, pending sales increased 32.4%! Because of the large amount of pendings, along with low listing numbers we are finally experiencing lower inventory: Currently at 7.6 months. Hopefully, this is our bottom. The average sales price continues to decrease (17% down from last year). With the exception of Coburg and the McKenzie Valley Areas all areas experienced depreciation in the Eugene – Springfield area.

Okay, let’s talk areas. The bright spots again Coburg prices up 17.2% (thanks to the high end homes selling again) and McKenzie Valley up 5.2% these are both small communities, with 15-18 sales in May each. Places you don’t want to own in: River Road, Springfield, East Eugene, and Danebo. All areas have closing price decreases between 10 – 13%. But the worst hit area, down 18.3% is the charming town of Junction City…Ouch.  If we are not going to appreciate fine – I’ll be happy to just hit bottom.

Think it is a great time to buy? Me too!

Search all Oregon MLS Listings Here:  http://www.hybridrealestate.org/

The Benefits of Using a VA Home Loan to Purchase Your Oregon Home

Known for its natural beauty, recreational activities, close proximity to the coastline, and the home of the University of Oregon, Eugene offers a distinct way of life that everyone can take pride in. Service members and veterans looking to reside in the Eugene area have a great opportunity to find the home of their dreams and pay little out of pocked through the benefits they have in the VA home loan program.

Why Choose a VA Home Loan?

VA loans are partially backed by the Department of Veterans Affairs, which allows borrowers to obtain money saving benefits that they would not normally be able to obtain with a conventional loan.  Benefits military members can expect to enjoy through the VA home loan program include:

1. No down payment option
2. Competitive interest rates
3. Flexible loan terms
4. High loan limits

For military members interested in financing their Oregon home, both the lack of a required down payment and the high loan limits allowed are highly beneficial. Conventional loan options require up to 20% down and coming up with that payment may be financially impossible for some families, while service members can buy a home up to $417,000 in Oregon without having to put a nickel down.

The extra money saved through the VA home loan program is a great resource for our service members who have seen many transfers and deployments, which has the tendency to negatively affect credit scores and personal savings.

Who is Eligible for a VA Loan?

VA home loans also have some of the most lenient eligibility requirements of any lending program on the market. To become initially eligible for a VA home loan, military members must submit their Certificate of Eligibility and have filled one of the following service requirements:

1. Have served at least 3 months on active duty during war time
2. Have served 181 days on active duty during a time without conflict
3. Have served 6 years in the military Reserves or National Guard

Although the VA home loan program does have lenient eligibility requirements, many VA-approved lenders will desire a credit score of at lease 620 for loan approval. Military members with credit scores below 620 or with imperfect credit histories are still encouraged to apply since these loans have been made in the past.

Choosing the right lender to apply with is critical. A lender that is knowledgeable and has a good reputation is preferred and can ease the loan procurement process. For more information on the VA home loan program, contact a VA approved lender today!

Matt Polsky is a blogger associated with VA Benefit Blog, a blog focused on providing veterans and service members with current news and information on the benefits they have through serving our country. For more information, Matt can be reached at matt@vabenefitblog.com.