We’ve been hearing the “buzz” over the shifting local real estate market these past couple months. Here are some significant factors and data that may help explain just what is happening:

Mortgage Rates near 45 year lows
Increasing sales figures
Steady reduction in residential housing inventory becoming an “inventory crisis” in some
select markets
Banks reluctant to sell foreclosed homes
Stabilization of declining values in most urban submarkets and some suburban submarkets.
Increasing values now being noted in some areas & submarkets.

Foreclosure Inventory & Short Sales

Shadow inventory is currently greatest in Beaverton, Gresham, Oregon City, Hillsboro and
Outer Vancouver.

Almost no shadow inventory exists in NE, Inner SE and Inner NW/SW neighborhoods,
except for a small percentage in the NW Condo Market Area.

Short Sales are commonly experiencing multiple offers although banks are sin some cases
reluctant to agree to sell for various reasons.

First Quarter foreclosure filings in the Portland area fell 28% compared to the same quarter a year
earlier, the largest decline recorded in 50 metro areas (Realty Trac).

Shadow inventory “clouds” may develop in coming months as OREGON has a 19-month supply of
bank-owned homes at their current rate of sale, while the national average is 16 months.
This condition is not expected to greatly impact inner Portland markets.

Portland Metro Trends- Comparing 1st Quarter 2012 vs. 1st Quarter 2011

Active listings down by 28%

Average Days on Market is down by 20%

Closed sales are up 12%

Average Sales Price has increased 1.43%

Median Sales Price has decreased 4.62%: No. Portland +4.38%, NW Wash. County + 4.10%,
Milwaukie/Happy Valley -9.02%, Mt. Hood area -19.38%

Let me know if you would like more specific information for your immediate neighborhood or would like a market snapshot of a neighborhood of interest.

Click on the link to read this brief informative article. http://goo.gl/beaPn

Let’s see if we move up the ranks after the second quarter comes in!  Any guesses where we will be???

 Portland did it again…It probably comes as no surprise that Portland, OR. was recently voted the “Greenest City” in America by readers of Travel and Leisure Magazine.  In looking at 35 metropolitan areas across the country,  public transportation, cleanliness, how many parks per square mile, pedestrian friendliness, air quality, were just a few of the attributes these cities were judged on. 

It may be surprising to some to see such large cities as Chicago (#5) and San Diego (#8) cracking the top 10.  Originally being from Southern California, I was shocked to read that San Diego County has more farms per capita than any other county in the nation. 

Here is the link you can click on:

http://www.travelandleisure.com/articles/americas-greenest-cities/1

 Event:  Sunday April 22^nd, in celebration of Earth Day, City Repair along with the Associated Students of Portland Community College are hosting an all day festival devoted to sustainable living at the PCC Cascade Campus, 705 N. Killingsworth St.  There will be informational booths, organic food, music, and interactive workshops for kids and adults.  Click on the following link to get more details:  http://cityrepair.org/2012/03/city-repairs-earth-day-pdx-2012/

If you find yourself competing against other offers for your dream home, keep in mind there are many other facets to writing an offer than just the sales price. The amount of the earnest money deposit, amount of the down payment, type of loan, personal property to be included, length of inspection period, length of escrow, home warranties, etc. are all important items that can make an offer look more or less attractive to a seller. You and your Realtor should discuss these issues in advance of finding your home, so you are confident in the offer you write. If you are selling your home, make sure your real estate agent addresses these items ahead of time.

Remember, it’s not always just about “the price.”


As the New Year begins, I’ve already been in touch with many clients and friends wondering about what 2012 has in store for the real estate market.  “Are prices going to continue to fall?” “Is this a good time to buy?”  “If I sell my home this year, won’t I be taking a big loss?” “Is the market going to get flooded with an onslaught of bank-owned homes, driving prices down even further?”  “Are we at the bottom of the market?”  If I only had my crystal ball!

But here is what I do know…

Economy:  Our present real estate market is tied tightly to the health of our employment figures.   Our economy has been in a downturn, besieged with bad numbers for multiple years.  However, over the past six months, we are seeing improvement in some of these figures, most importantly, unemployment has shrunk to 8.5% after being stuck at or above 9% for most of the past three years.

Inventory/Prices:  Due to increased buyer activity, we have seen a dramatic shift in inventory for the Tri-County area of Portland.  In November 2010 we had 9 months inventory.  In November 2011 inventory fell to 5.3 months.  Average sold price fell from $293,000 to $282,000 for that same period, a four percent correction.  However, over the past three months prices have remained stable, averaging  $281,000-$283,000.  This is a possible sign that we have hit a threshold. 

Selling: It is often difficult for home owners to think about selling in this current market.  Prices have dropped  29 percent in the Tri-County area since the peak of July, 2007.  For someone asking me if this is a good time to sell, my answer may be “No, you may want to wait.”  However, for many, selling in this down market may make great sense if they are going to be buying a home on the other end.  Remember, homes will rise and fall together, but more importantly, interest rates right now are at historic lows.  No one knows how long they will be here, but by all accounts, if economic news continues to improve, interest rates are projected to rise.

Interest rates:  Even two years ago, who would have ever thought we would see mortgage rates in the high 3’s to low 4’s.  For those of us who do not see moving in the foreseeable future, refinancing may make tremendous sense, if you have not taken advantage of this opportunity already.  Contrary to common belief, depending on the type of loan you have, you do not necessarily need equity in your home to refinance. 

Buying:  With historic low rates, first time buyers, second home buyers, and investors are entering the market, realizing this is an incredible opportunity.  This is one reason why we have seen inventory levels decrease over the past year.  It may still be considered a “buyer’s market,” but it is not uncommon for desirable homes, priced competitively, to be met with multiple offers. 

When will we see the bottom of the market, and when will interest rates begin to rise????  Unfortunately, we will only know when we are looking at it in the rearview mirror.

 
Neutral colors are usually best. Lighter colors help smaller rooms look larger and brighter. If you have questions about color, consult a professional home stager, or take some photos to your local paint store. Usually they are up to date on what colors are popular and would look good in certain rooms. Also, use colors that compliment furniture you will be using to stage the home. Look in home magazines to get color and decorating ideas!
If you don’t need to paint the whole interior of the home, painting bathrooms and kitchens is a way to make a home brighten up and appear clean.
If painting the whole exterior of the home is too big of an undertaking, putting a fresh coat of paint on the front door can do wonders. Sometimes a bright impact, or “punch,” color can provide for nice curb appeal.

If you are not a good painter, or not comfortable getting up and down a ladder, hire a professional. The only thing worse than old paint, is a poor paint job, with undercoat still showing through, or wall paint bleeding onto the ceiling or trim.
Finally, when possible, use low VOC (volatile organic compound) paint to keep harmful chemicals and additives to a minimum. Most paint companies now offer these and they do not cost much more.
I hope this has been helpful information. Now put on your old clothes, grab that roller, and have some fun!