This Santa Clara custom home, on Berry Lane, was a listing of mine, and it recently sold. It was cheaper than replacement value; at over 2,900 square feet it was priced at $309K. Construction cost on the structure alone is around $125/SF, more or less. It’s a custom home on a very quiet cul-de-sac.
Buying and selling real estate in Eugene Springfield is never easy. Houses are big ticket items and getting it right is important. How do you get it right? I think the best way is to find a good Realtor who’s honest and understands the market. Bell Real Estate is 100% local and has been serving clients in Lane County for over 45 years. How do you stay in business that long? We think by doing it right.
Bell is a full service firm, probably best known for its property management, in which we’re a market leader. We also have Realtors, of whom I’m one, doing a brisk business buying and selling property for clients. If you have questions about buying or selling real estate in Lane County, I’d be glad to help.
The new year makes a convenient time to look back and also pull out our crystal ball. 2012 may have marked the bottom of our real estate market in Eugene & Springfield. Prices have trended up in the last few months. Mostly, this is brought about by lack of supply, that is too few houses actively for sale.
In real estate’s boom years, before 2008, supplies of houses for sale dipped below two months, which was a strong seller’s market. At the depths of the Great Recession, supplies greater than a year were seen around Eugene Springfield, indicating a strong buyer’s market. Lately, we’ve been at 6 months or less, which is a mild sellers market.
Why the lack of supply of houses for sale? One reason is Senate Bill 1552. This good intentioned Bill had the effect of decreasing the rate of completed foreclosures, so fewer of them are on the market and more are still in the process of foreclosure. The Oregon Supreme Court is scheduled to take a look at this in January 2013. My guess is that they or the Legislature will change something.
Fundamentally, the prices of real estate are affected by things like inward migration and unemployment rate. We’ve had fewer immigrants to Oregon in the last few years, and unemployment rates are stubbornly high, although decreasing.
My prediction for house prices in 2013 for Eugene Springfield is flat to mildly increasing. I’ve been wrong before, though, and we’ll have to wait and see.
Many Eugene residents don’t realize it, but we have our own 8” petroleum pipeline extending from Portland to Eugene at the tank-farm off Prairie Road. The pipeline brings in 1.8 million gallons per day to Eugene, and was completed in 1962 at a cost of $7 million.
The tank farm has a capacity of 700K barrels, or nearly 30 million gallons. Oregon neither refines nor produces liquid hydrocarbons so all that gasoline and diesel has to come from somewhere—and a lot of it comes from Portland to the Eugene terminal. Portland is fed by marine deliveries and two pipelines from refineries in Northwestern Washington.
If your property has the pipeline running through it, your title policy should show an easement from about 50 years ago. However, if your property merely has the pipeline near it, local knowledge is about the only way to know it—that and pipeline warning signs.
According to CNN, more homes are being purchased with cash these days. Obviously, if you’re purchasing a house with cash, you’re either well-off or, at the very least, not feeling the crunch of the Great Recession.
I took a look at the recent sales in the Eugene Springfield area as reported by RMLS to see if the trend held true to us. In the preceding month’s time period, about 20% were, indeed, cash sales.
That’s pretty high.
The homes did tend to be lower priced though. The most expensive listing sold during that month was my own listing—weighing in at nearly ¾ million dollars. It was not sold for cash, though; but rather a conventional loan was used.
Cap rates for LEED certified commercial buildings are ½ percentage point better than for standard, non-green buildings. Green building is a nice concept, but the marketplace’s acceptance will really help it take hold.
In Eugene and Springfield, there are very few LEED certified buildings so it’s hard to know how they’ll fare in the marketplace. One problem with both commercial and residential green buildings is that appraisers don’t yet value them appropriately. Of course, that will change—but for now it can cause problems if lenders are involved.
Trees are very cool, and Oregon probably has more trees than any other state—except perhaps Alaska. In fact, residents here are probably outnumbered by trees some 30:1*. Even though numerous, the cutting of even a dangerous, diseased tree still makes headline news in Eugene.
Many don’t realize that Eugene has several pages of regulations about the cutting of trees. And while they’re a good idea in principle, compliance does increase development costs, which in turn runs up prices and rent.
*Assume 1 tree per 10’x10’ grid, resulting in about 4K trees per acre. ½ of Oregon’s ~62K acres are forested, resulting in perhaps 125 million trees. The population of Oregon is a little under 4 million people.
Opponents of ORI’s proposed $17 million, 80,000-square-foot building are still trying to stop its construction.
I’m the first to admit that I sometimes miss the point—and this might be one of those times. However, it seems like having an internationally recognized institution with nice facilities would bring Eugene the kind of jobs that everyone likes—no pollution and minimal impact.
Experts are saying the prices for houses are close to the bottom—meaning price increases are just around the corner. And, houses are becoming increasingly affordable. Nationally, house prices are less than two-years’ salary. In Lane County, though they’re still higher than that.
However home ownership is part of the American Dream and the net worth of home owners is some 40-times greater than renters.
Remodeling and renovating is another area of the market in Eugene and Springfield that fell on hard times during the Great Recession. We have bottomed-out though—and business is improving.
While home improvements don’t return dollar for dollar on resale, they still make sense if you plan to stay in the house for a period of time.