Recent predictions for the Eugene, Oregon real estate market seem to suggest that home-price growth could slow down a bit during 2018, and into 2019. This would be a welcomed change for some home buyers who have seen their budgets stretched by rapidly rising house values. Meanwhile low inventory continues to be an issue for the Eugene housing market in 2018.
Latest Predictions for the Eugene Real Estate Market
According to the latest data reported by Zillow, the median home value in Eugene, Oregon reached $291,000 in early spring 2018. That was an increase of 7.1% from the same time a year earlier, by their estimation
Looking forward, however, the company’s economists are making predictions for a slower rate of growth. In April 2018, they predicted that the city’s median home value would rise by 3.3% over the next 12 months. That would be a more “normal” rate of growth, from a historical perspective — and probably more sustainable than the larger gains we’ve seen in recent years.
Less Than a Two-Month Supply of Homes in Spring 2018
While annual home-price growth might be “normalizing” a bit, the inventory situation in Eugene is still highly unusual. A healthy, balanced real estate market has about five to six months of supply, according to economists. But the inventory situation in Eugene is well below that.
In March of 2018, the Eugene real estate market had about a 1.2-month supply of homes for sale. That’s even lower than Portland, which is often cited as being one of the hottest housing markets in the country.
This is something both cities have in common. While home prices are generally higher in Portland than in Eugene, both of these real estate markets have inventory levels that are well below average. And it’s putting upward pressure on prices.
Still Considered a Sellers’ Market
As you might have imagined based on these conditions, homes are selling faster than average in Eugene, Oregon. The median number of “days on market” for March 2018 was around 14 days. By comparison, the national average during that same time was over 40 days. Strong demand and limited supply are fueling competition among home buyers and leading to quick sales.
Analysts agree that the Eugene real estate scene is still very much a sellers’ market. Shortly after listing their homes, sellers often receive multiple competing offers. In these conditions, buyers have to move quickly with strong offers when the right property comes along.
According to a recent article in The Register Guard, Eugene’s daily newspaper:
“The supply of homes for sale isn’t keeping up with demand from eager buyers who are snapping up homes and driving up prices … Fueled by the long-running seller’s market, the inventory of Lane County [Oregon] homes for sale in March dropped to a modern-day low.”
Disclaimer: This article contains predictions for the Eugene, Oregon real estate market that extend through 2018 and into 2019. These projections were provided by third-party sources not associated with our company. We have gathered them here for the convenience of our blog readers.