How did the Eugene real estate market fair in 2023? That’s what we’re digging into today. Let’s go!
Today we’re taking a look at the market data in Eugene for single-family homes for the entire year of 2023. Let’s start by checking out the median home sales price broken down by each month. Home prices dropped pretty significantly from January to February landing at a median price of $460,000. But they bounced back up and increased month over month through June. They took a slight dip in July and then spiked back up for the highest monthly price of the year in August at $530,000. In Fall and winter, prices fell again dropping to their lowest point in November at $450,000. We haven’t seen that kind of volatility per month in recent years, so that’s pretty interesting. But overall, the median home sale price increased in 2023 by 1% over the median home sales price in 2022 in Eugene.
Next, let’s check out the days on the market per month for 2023. The median days on the market are the number of days that it took for an active listing to go pending. It’s the time it takes for an owner to accept an offer on their home. As you can tell, the highest days on the market were in January 2023 with a median timeframe of 38 days. The fastest month for homes to accept an offer was in June with a median days on the market of six days. And then it went right back up to that 30-day range in December. As you can see, the days on the market typically correlate with the median home price. The fewer days on the market, the higher the home price.
What was sales volume like for 2023 compared to 2022? The number of homes sold in Eugene dropped by 25% in 2023. The higher interest rates meant that fewer folks felt comfortable moving and paying more for less of a home. The majority of sales were driven by outside factors like divorce, folks relocating out of the area, or a family estate having to sell a loved one’s home.
Let’s check out the year-over-year data for Eugene’s median home sales price. As previously discussed we only increased by 1% overall from 2022 to 2023, but when you check out this chart for the last ten years, you can see that the Eugene area has been in an incline each year. The highest increases have been in the last few years, with inclines in the double digits in 2020, 2021, and 2022. Eugene’s steepest increase was from 2020 to 2021 when our home values went up by 19%. Again, the market is leveling out a bit, but it’s not crashing. Based on history, real estate continues to be a smart investment overall.
As we move forward into 2024, experts are expecting mortgage interest rates to level out and (hopefully) decrease as we head into the spring and summer seasons. Rates topped out at close to 8% in October 2023 and have been pretty volatile for the last few months. With lower interest rates projected, you’ll see more competition when searching for a home. If you can afford the monthly payment, it continues to be a good time to purchase. Homes are on the market a little longer than they have been and sellers are much more willing to help with rate buydowns and contributions to closing costs. Waiting for rates to drop could be a mistake. The experts predict that the days of 2 and 3% interest rates are over and the new normal will likely be in the 5-6% range moving forward.
If you have any questions or want to discuss your specific situation, I’d love to connect.
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