Portland's Real Estate Market by Darin Provost

2012-01-18T10:28:00.000-08:00

Home sales in the Portland Area continues to show improvement. Home sales have increased 4% this past year, while the number of homes for sale has decreased by more than 25%! Read my summary below to see how this may benefit you.

Click Here to view some Portland Real Estate Statistics produced by our Multiple Listing Service.

In Summary:

The number of Portland Area homes Sold in 2011 increased 4% from the year earlier, and has surpassed 2008 and 2009 with a similar margin. This is good news especially considering the years earlier had included tax credit incentives that substantially bumped sales activity. The average cost of a home in Portland is currently $263,300 – equivalent to the average price of a Portland home in 2004-05.

There are currently 8,612 Portland Area homes up for Sale. This is a substantial decrease from a peak of over 18,200 homes for sale in the summer of 2008. Portland Home Values will likely increase if this inventory reduces further in 2012.

Homes that are located well and priced to attract a buyer are selling quickly and sometimes with multiple offers.

2012 Home Sales: Positives on Many Fronts
by Robert Freedman, January 3, 2012.

The National Association of Realtors (NAR) released its latest pending home sales index figure last week and for the second month in a row the index is up. But more than that, the index has broken 100. This is significant because the only time since the housing boom collapsed that the index has broken 100 is when the home owner tax credit was in effect. The fact that the index has returned to that level a year since the credit has been in effect means the housing market is strengthening completely on its own, without any stimulus.

NAR Chief Economist Lawrence Yun is upbeat about 2012 because in a number of areas indicators are pointing upward. Not only are home sales up but housing starts are up and home prices are stabilizing in many markets and heading up in some. In areas where they’re still down, the declines aren’t that great. More fundamentally, broader U.S. economic signs are looking positive, including the all-important jobs picture. About 100,000 job are being created a month, and that could rise to 150,000—still not a quick enough pace to get us back to where we were before the downturn but the headwinds are in the right direction.

Homes are affordable and there are great investor opportunities. First-time buyers can find quality homes priced around $200,000. Higher-end homes are affordable to middle-income wage earners. And, Mortgage Interest Rates are still at 4%!

Do you know someone looking to buy or sell a home? Please have them call me.

Darin Provost
503-784-7626

2011-11-18T12:32:00.000-08:00

Home sales in the Portland Area grew almost 14% in October from last year. This has been a trend for the summer and is combined with a substantial decrease in the number of homes placed up for sale. Read my summary below to see how this may benefit you.

Click Here to view some Portland Real Estate Statistics produced by our Multiple Listing Service.

In Summary:

The number of Portland Area homes Sold in October increased 14% as compared to 2010. This combined with a substantial drop in the inventory of homes For Sale is great news for Portland Home Values. There are currently 10,012 homes up for Sale – a substantial decrease from a peak of over 18,200 homes in the summer of 2008. Back then, it was a difficult time for home sellers to compete with 18,000 homes for sale, and home buyers were overwhelmed and uncertain with pricing about a third higher than it is today. Portland Home Values will likely increase if this inventory reduces further in 2011-2012.

The average cost of a home in Portland is currently $263,700 – up almost 6% from the start of the year. Homes that are located well and priced to attract a buyer are selling quickly with multiple offers.

Housing Investment for the Long Haul

by Lawrence Yun, Chief Economist National Realtors Association

Home prices took a rough ride in the past decade. The past 10 years were an anomaly fueled by easy credit availability. Those days are over – and for the better. Most Americans believe in hard work (and not easy credit) before being able to enjoy the fruits of their labor.

The chart below shows the long historical trend in median prices of a single-family home in the U.S. A typical buyer purchased a $23,000 home back in 1970. The monthly mortgage payment on that home, assuming a 5 percent down payment, would have been $153 per month for 30 years. So a homeowner who did not do a cash-out refinance would have paid off their mortgage by the year 2000. So imagine no further rent or mortgage payments. Currently in America there about 25 million homeowners who own their homes free-and-clear.

On top of no mortgage payments, the median price of a home in 2000 was $143,000. This is something a person could bequeath to their loved ones when the time arrives or even use for charity donations: the fruits of one’s lifetime labor being put to a good use.

Home prices took a rough ride in the past decade, it’s true. But let’s not forget about the very basic and long-term benefits of homeownership for those who are willing to stay well within their financial capacity.

Homes are affordable and there are fantastic investor opportunities. First-time buyers can find quality homes priced around $200,000. Higher-end homes are affordable to middle-income wage earners. And, Mortgage Interest Rates are BELOW 4%!

Do you know someone looking to buy or sell a home? Please have them call me at 503-784-7626.

Darin

2011-10-05T13:45:00.000-07:00

Home sales in the Portland Metro Area grew almost 31% in August from last year. This has been a trend for the summer and is combined with a decrease in the number of homes placed up for sale. Read my summary below to see how this may benefit you.

Click Here to view some Portland Real Estate Statistics produced by our Multiple Listing Service.

In Summary:

Home sales increased 31% in August as compared to 2010. This a great news for Portland Home Values. The number of homes sold in Portland has steadily increased over the past 3 years indicating the market is stabilizing and Portland Home Values are beginning to rise. The average cost of a home in Portland is currently $271,800 – up almost 11% from 6 months ago.

Homes that are priced to attract a buyer are selling quickly with multiple offers.

National Home Prices continue to show seasonal strength according to the S&P/Case-Shiller Home Price Indices. U.S. home prices have shown a four consecutive months of increases. “With July’s data we are seeing not only anticipated monthly increases, but some fairly broad improvement in the annual rates of change in home prices,” says David M. Blitzer, Chairman of the Index Committee at S&P Indices. “This is still a seasonal period of stronger demand for houses, so monthly price increases are expected. The exceptions were Las Vegas and Phoenix where prices fell, while Denver was flat. The better news is that a majority cities saw their annual rates of change improve in July.

Homes Are Affordable. First-time buyers can find quality homes priced around $200,000. Higher-end homes are affordable to middle-income wage earners. And, it’s a great time to buy investment properties.

Mortgage Interest Rates are BELOW 4%!

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Do you know someone looking to buy or sell a home? Please have them call me at 503-784-7626.

Darin

2011-08-25T12:19:00.000-07:00

Home sales were up 21% in July! Fantastic news combined with a decrease in the number of homes placed up for sale by 27%. Read my summary below to see how these trends may benefit you.

Also, Click Here to view some Portland Real Estate Statistics produced by our Multiple Listing Service.

In Summary:

Home sales increased 21% in July as compared to 2010. This a great news for Portland Home Values. The inventory of homes for sale has also hit the lowest level since July 2007 further indicating the market is stabilizing. Portland Home Values should increase if this inventory reduces further in 2011.

The average sales price of a home in Portland is currently $275,100 – an increase of 3% from last month. Homes that are priced to attract a buyer are selling quickly. We currently have homes in inner-SE and NE neighborhoods selling with multiple offers.

Just four years ago the average price of a Portland home had peaked over $350,000! Much of that gain has been reduced, though you can see in the graph below the average sale price has spiked this year between January and July by just over 12%.

Homes Are Affordable Again. First-time buyers can find quality homes priced around $200,000. Higher-end homes are affordable to middle-income wage earners. And, it is a great time to buy investment properties…as there as some deeply discounted prices!

Mortgage Interest Rates are BELOW 5%.

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Do you know someone looking to buy or sell a home? Please have them call me.

Darin

2011-07-20T09:33:00.000-07:00

Home sales were up 12% in June!

That’s NO RAIN ON THIS PARADE. (…I’ll keep the rain jokes to a minimum)

Click Here to view some Portland Real Estate Statistics produced by our Multiple Listing Servie.

In Summary:

Pending home sales increased 12% in June from the month prior, and almost 24% compared to 2010. This a great news for Portland Home Values. The inventory of homes for sale also hit the lowest level since July 2007 further indicating the market is stabilizing. There are currently 11,817 homes on the market in the Portland metro area – a substantial decrease from a peak of over 18,200 homes in the summer of 2008. Portland Home Values will likely increase if this inventory reduces further in 2011.

The average sales price of a home in Portland is currently $260,000 – a decrease of 7.8% from last year (humbug). However, the average sales price increased by almost 2% in June with the spike in buying activity and stabilizing supply of homes for sale. Homes that are priced to attract a buyer are selling quickly. We currently have inner-SE and NE neighborhoods selling quickly with multiple offers as it seems everyone wants to live there, pricing is affordable again, and the inventory of homes for sale has dropped considerably.

Just four years ago the average price of a Portland home had peaked over $350,000! Homes Are Affordable Again. First-time buyers can find quality homes priced around $200,000. Higher-end homes are affordable to middle-income wage earners. And, it is a great time to buy investment properties!

Mortgage Interest Rates are below 5%.

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Do you know someone looking to buy or sell a home? Please have them call me.

Darin Provost
503-784-7626

2011-06-20T15:44:00.000-07:00

The Oregonian said today “Portland had its second wettest Spring in 117 years.” Glad that’s behind us! Summer officially begins this week and the forecast is looking sunny!

Click Here for some Portland Real Estate Statistics produced by our Multiple Listing Service.

In Summary:

There are currently 11,825 homes “For Sale” in the Portland Metro Area – a very slight increase from last month. This is great news as the number of homes For Sale typically rises substantially in May. The number of homes For Sale is stabilizing and has decreased from a peak of over 18,200 homes in the summer of 2008 (imagine trying to sell your house for a peak price with 18,200 others to compete with…). Portland Home Values will likely increase if this inventory decreases further in 2011. We currently have inner-SE and NE neighborhoods selling quickly with multiple offers as it seems everyone wants to live there, pricing is affordable again, and the inventory of homes for sale has dropped considerably.

Nationally, home prices rose last year by 1.3 percent according to the Case-Shiller index. This modest gain is a reprieve considering prices fell about 30 percent from 2006 to 2009. Last year’s demand arose from a home buyer tax credit, and economists are hoping this year’s demand will come from improving job market conditions. The latest jobs figures show that a seasonally adjusted 783,000 jobs were created in the first five months of this year. This is positive news.

The average sales price of a home in Portland is currently $258,300. Just four years ago the average price had peaked over $350,000! Homes Are Affordable Again. First-time buyers can find quality homes priced below $200,000. High-end homes and condos are affordable to middle-income wage earners. And, it is a great time to buy investment properties!

Mortgage Interest Rates are once again below 5%!

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Do you know someone looking to buy or sell a home? Please have them call me.

Darin Provost
503-784-7626

darin@oregonrealty.com

Pending Home Sales Rise for Record Eight Straight Months

2009-11-13T09:24:00.000-08:00

Pending home sales rose again, marking eight consecutive monthly gains – the longest streak since measurement began in 2001, according to the National Association of Realtors®. The Pending Home Sales Index rose 6.1 percent to 110.1 from a reading of 103.8 in August, and is 21.2 percent higher than September 2008 when it stood at 90.9. The gain from a year ago is the largest annual increase on record, and the index is at the highest level since December 2006 when it was 112.8. Lawrence Yun, NAR chief economist, said the momentum is understandable. “What we’re witnessing is a rush of first-time buyers trying to beat the expiration of the tax credit at the end of this month,” he said. “Home values will stabilize sooner rather than over-correcting. That, in turn, will mean wealth stabilization for the vast number of middle-class families and lay the foundation for a durable economic recovery.”

Existing Home Sales Index

2009-08-31T08:29:00.001-07:00

For the first time in five years, existing-home sales have increased for four months in a row. Existing-home sales rose 7.2 percent to a seasonally adjusted annual rate of 5.24 million units in July from a level of 4.89 million in June. Lawrence Yun, NAR chief economist, said he is encouraged. “The housing market has decisively turned for the better. A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales,” he said.

Tax Credit for First Time Homebuyers - GET UP TO $8,000!

2009-07-10T09:16:00.000-07:00

If you haven't owned a home in the past three years, you may be eligible for the first time homebuyer tax credit offered by the federal government, but you must buy before December 1, 2009. Income qualifications apply and may reduce the amount of your tax credit. Individuals who earn up to $75,000, and married couples jointly earning up to $150,000 are generally eligible. All the details on the first time homebuyer credit are available at the IRS website: www.irs.gov.

With mortgage rates low, home prices down, and a generous tax credit, this is an excellent time to buy your first home.

Hot Off the Press!

2009-05-14T20:27:00.000-07:00

The Federal Housing Administration is going to permit its lenders to allow home buyers to use an $8,000 tax credit as a downpayment.

The US Department of Housing and Urban Development secretary announced the good news. Enabling FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment. The FHA approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. Buyers will be able to access these funds immediately at the closing table!

Speculation on Interest Rates

2009-05-11T09:46:00.000-07:00

Have you noticed how everyone seems to have a different opinion about how long we’ll have low rates? And will they go lower? Here’s the best answer … “we don’t know!” But I can tell you this … rates rise like a rocket and fall like a feather. As soon as we see any significant gains in the stock market or overall economy, rates WILL rise. We seem to have hit a floor for how low, so if you need to refi or purchase, do it sooner, unless you’re a gambler!

First Time Home Buyer $8,000 Tax Credit - Frequently Asked Questions

2009-03-17T09:01:00.000-07:00

1. Who is eligible to claim the tax credit?
First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.

2. What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

3. How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

4. Are there any income limits for claiming the tax credit?
The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

5. What is "modified adjusted gross income"?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phase-out limits.

7. Can you give me an example of how the partial tax credit is determined?
Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phase out to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.

9. How do I claim the tax credit?
Do I need to complete a form or application?Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.

10. What types of homes will qualify for the tax credit?
Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

11. I read that the tax credit is "refundable." What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).

12. I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.

13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.

15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
No. You can claim only one.

16. I am not a U.S. citizen. Can I claim the tax credit?
Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.

17. Is a tax credit the same as a tax deduction?
No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.

18. I bought a home in 2008. Do I qualify for this credit?No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit.

19. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the down payment.Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a down payment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

20. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.

21. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
Yes. If the applicable income phase-out would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

Key Provisions of the American Recovery and Reinvestment Act

2009-03-17T08:51:00.000-07:00

Tax Provisions

$8,000 first-time home buyer, true tax credit (no repayment) for the purchase of a principle residence between January 1 and December 1, 2009. Recaptured if home is sold within three years. Removes the restriction on the use of tax credit proceeds with Housing Finance Agency-issued tax exempt mortgage revenue bonds.
Short-term gap financing for Low Income Housing Tax Credit (LIHTC) projects: Provision allowing states to turn in portion of 2009 LIHTC allocations for cash. Special appropriation of $2 billion in HOME funds.
Up to a ten-year deferral of tax from business debt cancelled as part of a repurchase or restructuring.
5-year carryback of 2008 net operating losses for businesses with gross receipts of less than $15 million (three year average).
Extension of enhanced bonus depreciation.
Extension of increased small business expensing.
Enhancements to the section 25C program for energy efficiency remodeling improvements to existing homes.
One-year patch of the Alternative Minimum Tax.
Increase New Markets Tax Credit allocating authority for 2008 and 2009.
Delays for one year the start of 3% government contractor withholding requirement.

Appropriations Provisions

$2 billion for full year payments to owners of Section 8 project based rental assistance properties.
$2.25 billion through HOME program and Low Income Housing Tax Credit program to fill financing gaps.
$1 billion for CDBG.
$2 billion for Neighborhood stabilization program.
$1.5 billion for homelessness prevention activities (help with rents, etc).
$250 million for energy retrofitting and green investments in HUD assisted projects.
$1 billion for Section 502 direct loans under the Rural Housing Service.
$10.4 billion for Section 502 guaranteed loans under the Rural Housing Service.
$27.5 billion for highway spending.

Other Key Provision

Increases in FHA, Fannie Mae and Freddie Mac loan limits to 2008 levels.

Great Rental Investment - NO VACANCY RISK!

2009-01-09T09:29:00.000-08:00

Current monthly rent is $1,800 and can be extendeed for several years as needed. Home expenses are very low. Property capitalization rate is 6.7%. Cashflow breaks-even with little or no money down. Most properties in Portland require a 30% - 35% downpayment investment to get cashflow to break-even.

You won't find a Single Family Residential investment like this one!

Home is a Premier Oxford House.
Visit this program at www.oxfordhouse.org

DIVORCE FORCES SALE.

Offered at $249,900

Built in 1960
Over 2400 SF
Quarter Acre Lot

Housing Is a Good Long-Term Investment

2008-01-09T13:00:00.000-08:00

Here are some financial benefits to owning a home:

· Over the past 30 years, home values have risen more than 6 percent annually.

· On average, the value of a home has nearly doubled every 10 years.

· 60 percent of the average homeowner’s wealth comes from their home’s equity.

· The average homeowner’s net worth is $171,000 – that’s nearly 46 times that of a renter’s, who has an average net worth of $4,800.

· Homeowner’s benefit from the power of leverage. At an annual appreciation rate of 5 percent, a 10 percent down payment on a home will return 94 percent after 3 years. After 5 years, the rate of return increases to 225 percent and after 10 years, 623 percent.

* All information provided by the national Association of Realtors. This is not a promise of future returns. Data based on historic percentage returns.

How Long Will It Take To Sell My Home?

2008-01-08T13:36:00.000-08:00

Some homes sell in a few days, while others may take several months. Recognizing key factors we control that influence the market may significantly reduce the time it takes to sell.

These include:

Condition of the property. Optimize the physical appearance to maximize value. Short of spending lots of money, there are several steps you can take to make your home show better:

- Sweep the sidewalk, mow the lawn, prune the bushes, weed the garden and clean debris from the yard.

- Clean the windows and make sure the paint looks fresh.

- Be sure the front door looks its best.

- Clean and de-clutter all rooms. Ensure the kitchen and bathrooms are spotless.

- Organize closets.

- Make sure the basic appliances and fixtures work. Replace leaky faucets.

- Make sure the house smells good. Clean and fresh, not artificial.

- Put fresh flowers out throughout the house.

Price it at the Market. A well priced home is the most important factor in selling for a top price within a reasonable time. Naturally, listing too low may generate a faster sale but will preclude the opportunity for getting top dollar. On the other hand, setting the price too high discourages showings to the people who are most likely buyers. And if a home sits on the market for too long, buyers may perceive a problem and avoid buying a home they believe will be hard to resell.

Marketing that professionally advertises your home to a broad market. The amenities of your home should speak for themselves, but attracting buyers to your door is where an aggressive, intelligent, and tasteful marketing plan is key. Use of new technologies like the internet should be a top priority. The first showing of your home will likely be on-line as over 80 percent of home buyers are using the internet.

Accessibility cannot be overstated. A home that is difficult to see will likely take longer to sell, if at all. Create an inviting atmosphere and minimize the appointment barriers to view your home.

Darin Provost - All Rights Reserved ®

Why it a Great Time to Buy a Home

2008-01-07T14:53:00.000-08:00

With more homes to choose from, prices softening, interest rates still at their lowest, and more time to make a rational buying decision, it’s a great time to buy a home.

Future buyers, here are a few things to consider -

Selection
There are almost 15,000 homes on the market in the Portland Metro area – an amount almost three times higher than 2005. Just two years ago the inventory of homes dropped below 6,000 and buyer’s were rushed and forced to make compromises. Today’s buyers can find homes closer to work, within biking or walking distances to schools, transit, and community hotspots.

Pricing
Just two years ago buyers were dealing with multiple offers and fast escalating prices. It was common for multiple buyers to bid up the price of a property. Often there were escalation clauses where buyers authorized their brokers to outbid other offers by thousands of dollars. Today, the market has relaxed and competitive bidding is rare. Selling prices are often below asking price, and a seller isn’t likely to be insulted if a buyer “makes them an offer they can’t refuse.”

Patience is Tolerated
Buyer’s can take more time in their search and decision to buy. In the hot seller’s market two years ago, everything was rushed as buyer’s had to find the home before others, and hurry to make an offer.

Due Diligence is Welcomed
Today a buyer is encouraged to obtain the necessary home inspections. Two years ago many home buyers waived these contingencies in order to gain advantage with multiple offers.

Repair Requests are Welcomed
After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past a seller might have insisted the home be sold “as-is.”

Fewer Investors
It is estimated that one third of all sales in 2005 were to investors. These buyers increased competition and caused the market prices to inflate.

Financing is Available
Interest rates continue at their lowest making homes are more affordable. Fixed rates are back and will be looked back upon as a great financial opportunity. FHA and first time homeowner bond programs that allow low down payment options are still available.

It truly is a great time to buy!

Darin Provost - All Rights Reserved ®

Opportunities in a Buyer's Market

2007-12-10T13:27:00.000-08:00

Just two years ago sellers were dealing with quick sale times, multiple offers and fast escalating prices. The market was so hot that some buyers were gladly discarding the use of standard contingencies such as financing and professional inspections, just so they could get to the front line of other purchasers. The past two years have brought a change from those fast times. From the start of Spring 2006 we watched the market gradually shift with the drumbeat of clichés about a “bursting bubble” and “hard landings vs. soft landings.” Ultimately consumers began to believe what they were hearing and a slower marketplace became a self-fulfilling prophecy as buyers stepped away. Clearly, today it has become a buyer’s market.

For most homebuyers, livability is the major factor in their purchase: location, schools, safety, commutes, etc. These motivations don’t change due to the economics of the marketplace. However, what seems to have occurred is that buyers are hesitant to take the plunge, believing that for some reason “this isn’t the right time.”

Buyers, here are a couple concepts to remember:

The condition of the national market does not completely represent the local market. Portland is a unique place, primarily due to its attractive quality of life. Relying on news reports about the national housing market in making decisions locally is like looking at the national weather in making plans for a days’ outing.

Profit on resale is primarily determined by what you pay for the home, not what you sell it at. Two years ago, owners were selling their homes at the top of the market, and those who made the real money were the ones who paid the least when they bought. Keep in mind, a seller usually become buyer – which means that selling at the top of the market only results in buying at the top of the market.

Finally, with more homes to choose from, prices softening, interest rates still at their lowest, and more time to make a rational purchasing decision, what more could a buyer ask for?

* Portland Metropolitan Association of Realtors and Phillip C. Querin, Partner, Davis Wright Tremaine.

Portland Could Weather National Housing Storm

2007-12-07T08:40:00.000-08:00

Amid recent news reports that Portland’s housing market is among only five in the nation still posting solid growth in 2007, experts today offered their thoughts for the future at the Home Builders Association of Metropolitan Portland’s 2008 Housing Forecast.

The annual breakfast forum, held at the Oregon Convention Center, featured three well-respected housing market specialists – economists John Mitchell and Jerry Johnson, and market analyst David Ludwig. It sold out early and drew a crowd of nearly 700 attendees. “With all the changes in the local and national market, everyone is interested to know what’s going to happen next,” said David Nielsen, Home Builders Association CEO. “Professionals in every sector of the home building industry realize that 2008 will be a year that companies are going to need to change their business strategy if they want to compete.”

Noted columnist and business analyst John Mitchell has been making economic presentations on the nation and the region for more than 35 years. He said Oregon’s housing market would start to rebound strongly in 2009. In 2008, he predicted several market corrections, including declines in construction leading to a smaller industry and tighter credit standards making it harder for marginal borrowers to purchase a home. “I’m still betting we’re going to make it through this without a recession,” he said. “But it’s going to be a different world. It’s going to take time to work through all the pressures on the market. We went through a period that was abnormal. We’re now going back to something more normal.”

Real estate market and regional economic development consultant Jerry Johnson focused on Portland’s growing housing inventory and lagging consumer confidence as challenges to the 2008 housing market. As a principal with Johnson Gardner, he is involved in research, design, economic and financial modeling, and market analysis for the real estate community. He predicts sales could be off as much as 15 to 20 percent in the local market, but noted it will depend largely on consumer confidence in the coming year. He predicted new housing starts could go down as much as 20 percent overall, but added he expects the market can regain solid footing in 2008 if the local economy continues to grow.

David Ludwig, president of Vista Market Intelligence, has been tracking the attitudes and opinions of Portland-area homeowners for years. Vista’s work focuses specifically on homeowners and prospective home buyers in the Portland market. He previewed Portland’s estimated sales and volume, based upon Vista’s Fall 2007 Tracking Study, and discussed consumer attitudes and expectations for the homebuilding and remodeling markets. His polling over the past several years indicates consumer confidence is a key issue impacting the present market. Ludwig also noted that Generation X and Generation Y (residents age 18-42) will account for 60 percent of the home buying market over the next five years. What are they looking for? Ludwig advised builders to focus on quality, not quantity. Nearly every age group surveyed reported they are looking for less square footage in their next home, but higher quality finishes.

“There is a definite shift going on in the market now,” he said. “My best advice to builders is to focus on their customers’ lifestyles. That will be critical to your success.” The HBA’s Nielsen said several builders are reporting healthy sales this year, but others are working hard to change their strategy as the market slows down. By most measures, the 2007 housing market in Portland has been similar to what it was in 2003. “For the past few years, people in housing markets all over the country came to see property as an investment, like stocks,” Nielsen said. “Housing ‘day-traders,’ buying homes to quickly flip them, are rapidly leaving this market. Housing is returning to what it used to be – buying stake in your community, a place to call your own and raise your family. “The housing boom was a great time to sell a home, but it wasn’t much fun for prospective home buyers,” Nielsen added. “In 2008, buyers will have great selections and will likely be able to get more for their money than in the past several years. People with good credit will have ample access to loans, and buying a home is going to be fun again.” -- 2008 Housing Forecast Seminar, Portland Convention