Summary: Where will prices for homes be at in 2020 in Eugene, OR? If you’re planning to buy a home next year, it’s important to look into housing forecasts to see if should buy sooner rather than later, and this article will help you make that important decision.
Home values in Eugene, Oregon rose by around 5.3% over the last year, according to some sources. And prices are expected to continue rising, though not necessarily as strongly into 2020.
Eugene Home Price Forecast for 2020
Like many cities in Oregon, Eugene experienced above-average home price appreciation in 2019. According to the real estate research team at Zillow, home values in the city rose by 5.3% during the 12-month period ending in October 2019. Such gains were common for many Oregon housing markets throughout the year..
The company also seems to anticipate an ongoing warm trend in 2020 as far as house prices are concerned. Their 2020 home price forecast for Eugene, Oregon predicts a gain of about 3.6% during 2020.
Over the last few decades, house prices in the U.S. have risen by around 3% to 4% annually. The gains that occurred across Oregon during 2019 were abnormal by historical standards. So, in a sense, Eugene’s home-price forecast for 2020 suggests a return to normalcy.
This is good news from an economic and housing standpoint. When housing costs rise quickly in a short period of time, they tend to outpace income growth. Over time, this can lead to housing affordability issues. This is becoming an issue up the road in Portland, where the median home price is now north of $400,000.
But house values in Eugene are lower, and they’re expected to rise at or near the historical average during 2020. So Eugene probably won’t experience the kinds of affordability problems seen in Portland, and that’s good news for home buyers who are entering the market this year.
Still a Sellers’ Market, Real Estate Professionals Say
Despite a possible slowdown in the pace at which home prices will rise next year, the Eugene real estate market still tends to favor sellers over buyers. That’s because the current supply of homes for sale is falling short of demand and the market is considered very hot right now.
According to a report by local NPR station KLCC (which cited local real estate professionals), the Eugene housing market had about 1.8 months worth of supply as of October 2019. Five to six months of inventory is considered a balanced market. So Eugene is still very much a sellers’ market, as we move further into 2019 and into 2020.
The local supply-and-demand imbalance will continue to put upward pressure on home prices. It also means that buyers should be prepared for some stiff competition this year. There’s a lot of demand right now, especially for desirable properties in popular locations. As a result, homes tend to sell quickly with offers at or near the asking price.
Higher Loan Limits Expected in 2020
Home prices in Eugene rose steadily, and significantly, over the last year or so. As a result, federal housing officials may soon announce that loan limits in Oregon will increase for 2020. We’re still waiting for a formal announcement, but based on the rise in home prices, it makes sense that the loan limits would increase to keep up pace, just as they increased for 2019. This applies to both FHA, VA and conventional mortgages.
- FHA loan limits for the county rose to $314,827, for a single-family home.
- Conventional limits went up to $484,350.
This is good news for home buyers, as it means they’ll have more properties to choose from in 2020 without venturing into “jumbo” mortgage territory.
Disclaimer: This article includes home-price forecasts and housing market predictions for Eugene, Oregon in 2020. These statements were provided by third parties not associated with our company. We have presented them here as an educational service to our readers.
Have questions? Sammamish Mortgage is a local, family-owned company based in Bellevue, Washington. We serve the entire state, as well as the broader Pacific Northwest region that includes Idaho, Colorado, and Oregon. We offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us if you have mortgage-related questions. Last Updated: