Your Portland Oregon and Lake Oswego Oregon Real Estate Expert!

Dave’s Commentary on the Portland Real Estate Market:

• Listed home inventory took a jump up to 10.8 month’s supply, balanced market is 6
• Sale volume decreased over June by 29%, slight increase in listings
• Foreclosures are easy to find and continue to be heavy competition for sellers

Overall home sales around Portland this summer are not as hot as you’d expect.  Typically we’d see steady volumes throughout the summer but this year May was the big seller and it’s been tapering off ever since.  Short sales are popular as ever with sellers but buyers and Realtors would certainly prefer not to deal with them at all.  Price has to be very aggressive in order to entice buyers to stick it out. 

Can tell you from experience that 90+% of short sale offers I write up do not make it to closing.  Buyers get frustrated with lack of seller’s bank response, seller files bankruptcy, seller’s bank forecloses in the middle of the deal, list goes on…

On a positive note, first-time buyer market is absolutely amazing at the moment!  Have you looked at FHA rates these days?  4.25%  Couple that with a foreclosure and you’ve got a recipe for long-term success.  It’s very close to the point where renters should wonder why they’re renting.  Mortgage payments are close to rent and long term owners will prosper.

Overall projection is for a continuation of a good buyer market.  Sellers, price aggressively.  It’ll save money in the long run!

Call us and find out more about the Portland real estate market. We have specific strategies to guide both buyers and sellers. Find YOUR HOME WORTH now.

To search for your home in anywhere in the Metro Portland area, use our FREE Exclusive Home Search tool. For more information about living in Portland and finding your dream home, call Dave at (503) 789-7633, Toll Free (877) 629-5825 or email.

Learn about our Exclusive VIP Buyer Services. Contact Dave now. Make informed decisions; make smart choices. Call Dave now at (503) 789-7633 or Toll Free (877) 629-5825 ext. 7.

Relocating to Portland, Oregon? We can help. Click here.

Dave’s Commentary on the Portland Real Estate Market:

• Available inventory is at 7.3 month’s supply, pretty average
• Sales have slowed this month, another 2% drop anticipated before end of summer
• Bank foreclosures still lead the “good deal” market and will be through 2010

Closed sales were up through April significantly reducing the amount of homes for sale around Portland. Our Lake Oswego office in particular saw about the same number of sales this year as last. With about 70 agents in the office it’s a good gauge of what’s happening overall in Portland.

Website traffic remains constant to this site but the number of inquiries generated has dropped which tends to be a forecast of slowdown in sales. This same thing happened in November 2009… Wonder if it’s a pattern but too early to tell just yet.

Lockbox activity according to RMLS has dropped by comparison to last year and over the last 2 months. A reflection of no more first-time buyers going for the tax credit? Not necessarily. The number of buyers pulled into the marketplace because of this tax incentive was not as great as everyone believed. The $6500 credit for current owners to move did nothing as far as I could see. People were either purchasing or not, $6500 didn’t matter to them.

Money is still cheap with interest rates hovering around 5% and FHA remains quite attractive, more so than ever actually. 2010 will continue to be a great year overall for real estate investment.

Call us and find out more about the Portland real estate market. We have specific strategies to guide both buyers and sellers. Find YOUR HOME WORTH now.

To search for your home in anywhere in the Metro Portland area, use our FREE Exclusive Home Search tool. For more information about living in Portland and finding your dream home, call Dave at (503) 789-7633, Toll Free (877) 629-5825 or email.

Learn about our Exclusive VIP Buyer Services. Contact Dave now. Make informed decisions; make smart choices. Call Dave now at (503) 789-7633 or Toll Free (877) 629-5825 ext. 7.

Relocating to Portland, Oregon? We can help. Click here.

Dave’s Commentary on the Portland Real Estate Market:

• Available inventory is at 12.9 month’s supply, well above average
• Prices have stabilized on entry level pricing for regular resale houses
• Bank foreclosures still lead the “good deal” market and will be through spring

It was mentioned back in December than Portland’s housing market had hit bottom, now numbers are beginning to reflect than.  Home buyers willing to make the first-time buyer move will see great return on investment given a few years.  While Portland, Beaverton, Hillsboro, and surrounding area homes for sale have seen entry level pricing firm up, luxury home sales are still hurting.  Prices around $2ook are in demand as buyers scrimp competitively to get the good deals.  Want to sell?  Price it right.  Buyers are there.

Luxury homes in Lake Oswego, West Linn and other locations where prices lead overall stats are still feeling the pinch.  Market times for these properties are around 153 days on average.  With economic improvement homes for sale in the $500k+ category will pick up.  Summer’s coming and so are the movers.  Expect increased sale volume but also increased home listings.  New construction will not play a big part in 2010.  Inventory needs to be bought up.  Now is the time for purchasing!

Multi-family sales around the Portland metro area also finally seening some activity.  2009 was not the year to unload property for financial gain, that’s for sure.  Sales were very stagnant.  In the last month or two plex sales have began to show signs of improvement.  Investors are gaining confidence in real estate again and rents have stabilized.  Portland’s rent rates followed real estate sales as tenants buckled down and did more conservative moves to save money.  Vacancies are back around 6% again now.  Don’t try and gain top rental dollar for an investment unit, vacancy is not worth the lost income!

Go buy real estate in Portland, that’s the bottom line.  Does anyone honestly think this is a bad time to purchase?  Look at prices and interest rates.  You tell me…

Call us and find out more about the Portland real estate market. We have specific strategies to guide both buyers and sellers. Find YOUR HOME WORTH now.

To search for your home in anywhere in the Metro Portland area, use our FREE Exclusive Home Search tool. For more information about living in Portland and finding your dream home, call Dave at (503) 789-7633, Toll Free (877) 629-5825 or email.

Learn about our Exclusive VIP Buyer Services. Contact Dave now. Make informed decisions; make smart choices. Call Dave now at (503) 789-7633 or Toll Free (877) 629-5825 ext. 7.

Relocating to Portland, Oregon? We can help. Click here.

Portland area home buyers may have heard the announcement last week regarding FHA mortgage changes.  Why pay attention to these details since it only usually affects first-time buyers?  Well, changes to entry level financing affect all Portland real estate in reality.  Also, FHA loans are by far the most popular right now and are not used by only first time buyers.  Home purchasers take advantage of the low down payment option of 3.5% and that’s the attraction. 

Financing options during boom years of 2005 and 2006 made use of loser lending guidelines like the ever popular 80/20 loans which eliminated mortgage insurance.  Those days are in the rear view mirror.  Mortgage insurance is pretty much a requirment today for anyone putting less than 20% down.  Although no buyer ever wants to pay these extra fees they are a necessary evil and insure lenders against default.  Portland’s entry level market is sustained by first-time buyers coming in with minimum down.  If we went back to yesteryear requirements of 20% down minimum the market would be crippled. 

New FHA loan guidelines:

• Mortgage Insurance Premium (MIP) increase from 1.75% to 2.25% of loan amount
• FICO minimum (credit score) 580 to qualify for 3.5% down payment
• Seller credit to buyer’s closing costs down from 6% to 3% of purchase price
• Mortgage Insurance Premium payment shifted some cost from up-front MIP to annual MIP

What does this mean for the Portland real estate?  Since first time home buyers drive the entire housing model, without these there are minimal upper end sales.  Move-up buyers are critical to the cycle.  Looser lending guidelines generate more buyers, tight guidelines eliminate qualified buyers.  Changes mentioned above are tighter and will have some affect on Portland house sales. 

Most area home buyers come in with only 3.5% total cash (the down payment) for their first home.  Statistically that’s just reality.  Sellers often are requested in the offer to pay buyer’s closing costs (loan costs) which keeps cash out of pocket to a minimum.  Figure $200,000 houses for sale in Portland will cost buyers closer to 4% of purchase price, or $8000.  With new seller contribution limits going from 6 down to 3 percent this leaves buyers coming up with the difference.  More money out of pocket is now required to get into a house, potentially.

Tightening restrictions cautiously and slowly is key to not rocking the already fragile housing market.  My guess is that overall we’ll see minimal affect on Portland real estate in general and it’d take a micro-economic guru to place figures on such changes.  Yes, home buyers may have to come up with slightly more money but we’re only talking another thousand or two and if cash is really that tight buyers may want to build up a bit more reserve before purchasing anyway.  No one wants to be house rich and cash poor, right?  Something to consider…

Data: June 8, 2009

Source: RMLS Area Report Metro Portland & Adjacent Regions

Dave’s Commentary on the Portland Real Estate Market:

RMLS numbers reflect a reduction in Portland’s housing inventory. We’re down to an 11 month supply for April’s final figures. This is a good sign that the market is starting to improve. Typically the amount of homes for sale rises in spring as do the number of closed sales. A reduction in overall inventory means that buyers are purchasing at a faster rate than homes are being listed for sale.

Working with buyers provides me an opportunity to interact with listing agents when out showing homes. I always ask other agents what their offices are seeing and what that person’s take on the market is. Lately it’s all been the same. Business is up!

Comments vary across the range of course but the majority of agents I’ve spoken with are raving about the amount of buyers they’re currently working with. While May’s inventory numbers are not out yet it’s exciting to anticipate. My guess is that it’ll be down even more, showing more market improvement.

RMLS data shows dwindling appreciation figures so keep in mind that these are a reflection of activity 3 -6 month’s ago. Forecasts are still fairly abundant that late 3rd quarter/early 4th will show we’ve reached a plateau. By the time the media starts reporting on such buyers will start seeing sellers being less desperate.

Dave’s prediction; We’re getting very close to bottoming out or may have already done so. Buyers closing in 2009 will reap huge benefits 5 years from now. Fence sitters need to make their move.

Call us and find out more about the Portland real estate market. We have specific strategies to guide both buyers and sellers. Find YOUR HOME WORTH now.

To search for your home anywhere in the Metro Portland area, use our FREE Portland Home Search tool. For more information about living in Portland and finding your dream home, call Dave at (503) 789-7633, Toll Free (877) 629-5825 or email.

Learn about our Exclusive VIP Portland Buyer Services. Contact Dave now. Make informed decisions; make smart choices. Call Dave now at (503) 789-7633 or Toll Free (877) 629-5825 ext. 7.

Relocating to Portland, Oregon? Let us help with your Portland Relocation.

Data: June 8, 2009

Source: RMLS Area Report Metro Portland & Adjacent Regions

Dave’s Commentary on the Portland Real Estate Market:

RMLS numbers reflect a reduction in Portland’s housing inventory. We’re down to an 11 month supply for April’s final figures. This is a good sign that the market is starting to improve. Typically the amount of homes for sale rises in spring as do the number of closed sales. A reduction in overall inventory means that buyers are purchasing at a faster rate than homes are being listed for sale.

Working with buyers provides me an opportunity to interact with listing agents when out showing homes. I always ask other agents what their offices are seeing and what that person’s take on the market is. Lately it’s all been the same. Business is up!

Comments vary across the range of course but the majority of agents I’ve spoken with are raving about the amount of buyers they’re currently working with. While May’s inventory numbers are not out yet it’s exciting to anticipate. My guess is that it’ll be down even more, showing more market improvement.

RMLS data shows dwindling appreciation figures so keep in mind that these are a reflection of activity 3 -6 month’s ago. Forecasts are still fairly abundant that late 3rd quarter/early 4th will show we’ve reached a plateau. By the time the media starts reporting on such buyers will start seeing sellers being less desperate.

Dave’s prediction; We’re getting very close to bottoming out or may have already done so. Buyers closing in 2009 will reap huge benefits 5 years from now. Fence sitters need to make their move.

Call us and find out more about the Portland real estate market. We have specific strategies to guide both buyers and sellers. Find YOUR HOME WORTH now.

To search for your home anywhere in the Metro Portland area, use our FREE Portland Home Search tool. For more information about living in Portland and finding your dream home, call Dave at (503) 789-7633, Toll Free (877) 629-5825 or email.

Learn about our Exclusive VIP Portland Buyer Services. Contact Dave now. Make informed decisions; make smart choices. Call Dave now at (503) 789-7633 or Toll Free (877) 629-5825 ext. 7.

Relocating to Portland, Oregon? Let us help with your Portland Relocation.

Call us at 503-789-7633 (cell) or email us to see how we can help you with your home buying and selling needs.

Data: April 21, 2009

Source: RMLS Area Report Metro Portland & Adjacent Regions

Dave’s Commentary on the Portland Real Estate Market:

Inventory has significantly dropped and at a faster pace than over last two years given the same time period. What does this mean? It means that buyers are seeing the light and taking advantage of short sale and foreclosure home deals. As supply of available homes for sale decreases our market improves. Keep in mind that a balanced amount of listed home favors neither the buyer nor seller at 6 months, we’re currently at 12. That number is way down from January’s record 19!

What we’re experiencing is no movement in secondary price levels, those above $250k or so. The reason our market is slow for anything over $250k is that first time buyers are displacing sellers who are in tough times. Normally these folks would move up in price to a new home, pushing the higher end. Entry level home sellers who overextended finances are now renters. Working through this inventory is again, a sign of market recovery.

First time buyers are looking to convert from renters into owners and take advantage of the federal tax credit of $8000. This money is available to most who close a home before December 1st 2009 and who have not owned in the last 3 yrs.

Sellers in the $400k+ price ranges need to be super agressive on pricing. Look at comparable sales within the last 6 months and subtract 10%. I’m not joking… you’ll move your house and make it up on the purchase!!

The bottom line: If your job is secure take advantage of this situation. Correction to our values was required and 2009 is the year for it. Money is made in real estate on the purchase… not the sale.

Call us and find out more about the Portland real estate market. We have specific strategies to guide both buyers and sellers. Find YOUR HOME WORTH now.

To search for your home anywhere in the Metro Portland area, use our FREE Portland Home Search tool. For more information about living in Portland and finding your dream home, call Dave at (503) 789-7633, Toll Free (877) 629-5825 or email.

Learn about our Exclusive VIP Portland Buyer Services. Contact Dave now. Make informed decisions; make smart choices. Call Dave now at (503) 789-7633 or Toll Free (877) 629-5825 ext. 7.

Relocating to Portland, Oregon? Let us help with your Portland Relocation.

Call us at 503-789-7633 (cell) or email us to see how we can help you with your Portland home buying and selling needs.

Data: March 20, 2009

Source: RMLS Area Report Metro Portland & Adjacent Regions

Dave’s Commentary on the Portland Real Estate Market:

Portland’s housing inventory is down from January’s record number to 16.6 month’s worth of supply. At the current rate of purchase it’ll take this long to buy up all homes for sale, if no others houses were to list in RMLS. This number is important because it’s a gage on our housing market.

If playing field was level between buyers and sellers there’d be a 6 month supply. Scales are heavily favoring buyers currently. Projections for growth in the Portland metro area are still optimistic. New industry has capitalized on Hillsboro’s industrial locations. The South Waterfront is still projected to grow immensely in coming years and condos for sale in the area are plentiful. Also, 3 luxury apartment buildings are being constructed at the moment.

Interest rates today are pushing 4.5%. Wow! Investors need to look at this opportunity as rare in the overall picture of real estate. Cash flow on investment properties has not been this good for the last 10yrs at least! While the rental market has softened a bit there’s money to be made. Hold out for a couple of years and watch what happens with house prices. People will look back at the summer of 2009 as an excellent time to get into real estate.

Sales picked up in February and the number of new listings decreased by comparison to 2008. This is good for market correction. Activity picks up as we head towards spring and number of days on market will improve historically. Look for opportunities to capitalize on Portland’s real estate situation. This is the year of the BUYER!!

Call us and find out more about the Portland real estate market. We have specific strategies to guide both buyers and sellers. Find YOUR HOME WORTH now.

To search for your home anywhere in the Metro Portland area, use our FREE Portland Home Search tool. For more information about living in Portland and finding your dream home, call Dave at (503) 789-7633, Toll Free (877) 629-5825 or email.

Learn about our Exclusive VIP Portland Buyer Services. Contact Dave now. Make informed decisions; make smart choices. Call Dave now at (503) 789-7633 or Toll Free (877) 629-5825 ext. 7.

Relocating to Portland, Oregon? Let us help with your Portland Relocation.

Call us at 503-789-7633 (cell) or email us to see how we can help you with your Portland home buying and selling needs.