Lane County, Oregon March 19, 2018

Reflecting 2017

Dear Reader,

Reflecting on 2017 and looking at the first couple months of 2018 our market continues to be fueled by low inventory and a high demand on housing.

During 2017, February and September had the highest months of inventory at 2.2 months per the Regional Multiple Listing Service (RMLS). May was the month that saw the lowest months of inventory at 1.6 and the overall monthly average for the entire year of 2017 was 1.9 months of inventory.

We consider 3-6 months of residential housing inventory to be a balanced market.  Over 6 months of inventory would be considered a Buyer’s market and below 3 months, a Seller’s market. The supply and demand issue we saw in Lane County in 2017 helped home prices see a healthy level of appreciation throughout the year.

Activity in 2017 ended slightly ahead of what 2016 produced. Comparing the entirety of each year, new listings (6,390) increased 3.5%, closed sales (5,204) increased 0.8%, and pending sales (5,254) increased 0.2%.

Comparing all of 2017 to 2016, the average sale price rose 9.2% from $263,700 to $287,900. In the same comparison, the median sale price rose 9.7% from $237,000 to $260,000.

As the overall economy continues to grow in 2018, the historically low interest rate level we have experienced for years will likely grow as well. Interest rates rising at modest levels should not be much of a concern, however, they remain a factor in affordability. The Lane County real estate market is very unique in that is has great opportunities for everyone. Sellers are benefiting from strong prices and buyers are benefiting from being able to lock in interest rates that currently are still well below historical averages.

We are encouraged by positive economic growth throughout Lane County and anticipate a healthy year with moderate growth in regards to homes sales and price appreciation.

Sincerely,

Matt R. Powell