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.

Home buyers often bring up the old adage that newer homes aren’t being built like they used to be.  Hmm, might depend upon what they’re specifically referring to.  Ever heard of a predicted earthquake Portlanders lovingly refer to as “the big one?” Buyer’s may want to ask themselves this;  Would I rather be standing in the 2nd story of a 1940′s home or the 2nd story of a 2009 home if that thing hits?

Engineering vs. finished product, maybe that’s the question.

Materials are different. Asbestos and lead based paints have been replaced with more edible products like fiber cement and polyethylene.  Realtors are required to give lead based paint pamphlets to any person buying a 1977 or older home.  The pamphlet tells you not to snort paint dust or each the chips.  Actually, none of the materials mentioned are edible so please don’t try.  Sellers are required to disclose any known hazardous substances on the property and all for good reason.

Changes to construction materials can be due to improvement out of necessity but often also because of end cost to consumers.  How much did your parents pay for their house?  Prices today are outrageous!  Well, OK, they’ve come down 20% so maybe they’re in line with inflation.  Everyone’s trying to make a buck. Not trying to defend use of inferior materials here but have to understand that competitiveness is everything.  Using premium natural occuring organic green sustainable renewable stuff sounds good in theory but find a steady flow of consumers who will pay extra costs may be a bit challenging.

new construction

Fiber cement siding and polyethylene piping have replaced real wood and galvanized.  Is one better than the other?  Portland neighborhoods range from classic Victorian to contemporary.  New homes are often wrapped so tightly with siding materials that the house can’t breathe, causing moisture/mold problems.  I’ve also heard several buyers comment on the fumes from new materials/chemicals not agreeing with their health.  Neighborhoods with older home will probably contain far more natural materials.  Portland offers it all.

Engineering practices of today are much tighter than 100 years ago, that’s for sure.  Practices used then are not necessarily used now. Walk into some of SE Portland’s Belmont or Hawthorne houses and you’d think you’re may have enjoyed one too many of the local micro brews.  “Hey, these doorways and floors seem slanted.”  They are.  The plus side is that when you spill liquids they’ll run only to one corner and be easier to clean up…  Most buyers write off slants and crooked doorways to “character”, things you just won’t find in newer construction (or tolerate).  It’d be interesting to see how homes hold up over the next 100 years.

Changes to requirements for shear wall, tie downs, joist hangers and anchor bolts have all come a long way.  It’s educational to look at new construction and see all the metal that’s attached for engineering purposes, things that were just not present years ago.

Which is built better?  Points can be debated.  Tell you what though, when the big one hits I’d rather be in a home engineered to today’s standards than one from 50 years ago.  Of course, I may croak from the mold and chemicals before that…

Check out www.maxwellsinclair.com for more information regarding Portland real estate and home buying!

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.

Proximity to Downtown- If you’re looking to relocate to the Portland Metro(politan) area there’s probably a reason and it’s most likely job related.  While our unemployment rate is blazing ahead of the rest of the country at 12.1% currently.  Several factors figure in to that number.  One is that Portland Oregon is a fast growing location and many relocatees move before securing employment.  Also, keep in mind that even in the best of times we tend to be ahead of the pack… maybe it’s just due to all the cool entertainment around.  Who has time for work?

Portland’s downtown area is a hub of entertainment both day and night.  Art, culture, open-air markets and the Willamette river provide attraction.  Distance to these and other recreation tend to be on the top of people’s lists when relacating.  Map searches are invaluable when it comes to home choice.  Find your ideal happy medium between work and entertainment, then map search homes for sale in target areas.  Search homes for sale using map based queries like www.maxwellsinclair.com/portland_mapsearch.php

Transportation – Portland is very progressive with it’s public transportation system and planning of such reflects the overall goals, keep it green.  Preventing urbal sprawl is what the urban growth boundary is all about and detailed transportation planning makes vehicle use optional.  In addition to busing systems there’s a light rail train (MAX train), streetcar (downtown Portland), transit mall (new trolley in downtown opening soon), sky tram (South Waterfront to OHSU) and commercial rail train (WES, Beaverton to Wilsonville commuter).

While not in existence yet the east side (Milwalkie) will be connected by MAX within a few years to downtown Portland.  There have been rumors about connecting Lake Oswego to downtown but that’s not going to materialize in the near future… check out www.trimet.org for proximity to public transportation.

Walking Score – Pretty cool idea that someone came up with recently.  www.walkscore.com rates addresses based upon several factors and their proximity to convenience.  Higher score means potentially less use of the car.  Leading areas in Portland are the NW District, The Pearl, South Waterfront, and Cultural/University Districts.  All receive scores near 100.  In fact, talking with downtown condo owners you’ll commonly hear things like, “ya, we went down to the parking garage to see if our car was still there since it hasn’t been used for a month.”

Convenience is a big factor in the overall equation.  Choosing the right Portland neighborhood for your home purchase doesn’t need to involve numerous plane tickets with desktop research whittling down the field.  In addition to these 6 websites finding a good Realtor will also help significantly… probably goes without saying, right?

For more on Portland Real Estate, check out www.Maxwellsinclair.com.

So, you’re relocating to Portland Oregon.  That’s awesome!  About 3/4 of Portlanders were either born here or relocated.  The other 1/4 were not sure about… just joking.  Attraction to this area can be attributed to several factors including entertainment, culture and cost of housing.  Believe it or not we’re ranked in the top 5 relocation destinations for the nation!

This blog focuses on Portland real estate and as luck would have it so will this article.  Surprise, surprise.  Coming from out of town has it’s difficulties so much research often takes place long distance before finding a suitable neighborhood to buy a home.  Here are 6 big tools to help with neighborhood research:

School ratings.  Whether or not you have kids is not the point.  Schools are one of the easiest ways to determine whether neighborhoods are going to be a good match.  There’s a fantastic website (www.greatschools.net) that rates schools on a scale of 1-10, 10 being the best.  Elementary schools pull from a small radius.  RMLS lists elementary schools as a required field.  Even the laziest agent has to fill in this information before a home listing goes public, therefore, house searches can be centered around specific schools.  While a home’s elementary school rating is not everything, it is a reflection of community.  Better school rating, nicer neighborhood.  Check it out if you’re familiar with a particular school location in the country and see for yourself, this is a national tool.

Very few neighborhoods in Portland actually feed into “10″ rated elementary schools.  Bethany, Cedar Mill and Laurelhurst are the only ones, last time I checked anyway.  Lake Oswego/West Linn ranks top in Oregon too, but it’s a suburb-type city.  Some of Beaverton’s schools are rated well too.  It’s amazing that within only a few blocks school ratings can vary significantly, so do the neighborhoods.

Food Shopping – QFC, Whole Foods, New Seasons, and other high-end grocery storesare an indication of neighborhood quality.  Also, check out Starbucks.  They put alot of research into store locations and won’t plant one in a sketchy area.  Stores mentioned above can only thrive in certain areas, areas of higher income mainly.  Money isn’t everything.  Check out crime stats, income levels and other census information at www.portlandmaps.com but look at grocery shopping more than just shopping.

Pictures – Every Realtor is now required to upload at least one front shot of the listed house within a few days of input into RMLS.  Searching Portland homes for sale from a distance has it’s hurdles, especially when not familiar with the city or surrounding locations.  Want to know what a neighborhood really looks like?  www.maps.google.comwill put you right in front of the house you’re looking at online.  It’a a tour right from your desk.  Pan around, look at surrounding homes, see how many cars are parked on the neighbor’s lawn, how many washing machines are on their porch?  www.earth.google.comhas similar aerial shots.  Many times, there’s waaay more to the story than what RMLS pictures stratigically leave out.  How close is the subject property to commercial buildings, apartments or a freeway?  Value is affected by such.  This is a great tool!

Visit the website for Portland relocation, Portland neighborhood information, and Portland homes for sale throughout the metro area.  www.maxwellsinclair.com

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.

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 14% from January. Couple the recipe of incredible selection and low interest rates and you’ve got a mix for historical buying opportunity. Question is, how quickly will buyers take advantage of the situation?

Although the number of homes available for sale is not at record numbers, pace of closings is slower than in years past and that’s what created the 19.2 month number. While this is a record high we need to put it inperspective.

Consider that historically every January inventory levels jump significantly. Last years numbers were up 33% over December 2007. 2009 numbers are up only 27%. Consider also that sales last month hit a new low and this means that it’ll take time to burn through our inventory. Nationally sales were up in December and Portland lags behind on U.S. trends.

First time buyers got a big boost from the $8000 tax credit, a welcome move by most. This should help push first-time buyers out of the rental market and into homes. Rental prices have softened with the economy somewhat but that $1200 rent payment easily translates into a $1400 house payment. Renters with stable jobs are going to see HUGE rewards by taking advantage of the situation.

Recent articles on Forbes.com list Portland in the top ten best long-term housing bets. We were also number 5 for move destinations according to a recent study by Relocation.com. Articles like this are overshadowed by negative news these days but buyers and investors who see through the hype are going to fare well overall!

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.

Dowtown Portland Oregon neighborhoods are feeling the same squeeze as other outlying areas and suburbs.  There are several condo developments in the South Waterfront; Meriwether Towers, Atwater Place, and The John Ross.  All buildings offer luxury living in this up and coming location.  Sweeping views of dowtown, Mt. Hood, and the Willamette river are features that can’t be matched elsewhere.

Meriwether Condo

Portland Development Commission has grand plans for the area, located just south of the Ross Island Bridge along the Willamette river, and has been projecting 1000′s of future jobs.  With convenience to all endless downtown art, culture and dining location is everything. The South Waterfront is connected by street car making transportation easy and vehicle ownership optional.  Construction began in 2005 and both Meriwether buildings sold out very quickly.  Rapidly increasing real estate prices drove speculators into the area and great profits were common for those who purchased pre-completion and immediately resold 6 months later.

That was then, this is now.  Guess what’s available today?  Deals!  Occupancy is hovering around 50% altogether.  John Ross is about 60% sold and Atwater Place is currently 30% sold out.  Supply is in abundance and some speculators/investors who purchased in the Meriwether Towers are being forced to sell in this down market or face foreclosure. Check out RMLS 8112599.  It’s a 3100′ luxury condo with Mt. Hood and Willamette views, offers 2 large balconies, 3 parking spaces, 3 bathrooms… the list goes on.  All for a list price of $979,900.  This same unit sold for over $1.6m in 2006!  Keep in mind that Portland prices have dropped about 15% from peak and this place is offered at 40% less than it’s previous sale.  WOW!

Not all foreclosures make a great investment so here are 3 suggestions for evaluation of  property:

1. Run comparable sales within a 1/4 mile radius, and more specifically, only those with the same legal description.  Every subdivision gets a legal description for identification purposes in public records.  Let’s say you’re interested in purchasing this condo in The Meriwether Tower. Running comparable sales in the Atwater or John Ross building is a good comparison for the South Waterfront area but if you want to gauge the potential purchase a bit more accurately search only legal descriptions with the word “meriwether.”  Same theory applies with Beaverton or any Portland neighborhoods.

2. Look at the tax record.  Although property taxes are not based upon sale price the assessor’s no slouch when it comes to real estate value.  I’ve found their opinion of market value somewhat helpful as another angle when gaging investment potential.  Records are updated every couple of years so, depending upon what current market conditions are, an adjustment factor needs to be figured.  Current sales are running somewhere around 15% under tax market value… just a quick rule of thumb for the moment.

3. What does Zillow.com say? Type in the address and find out what their “Zestimate” shows.  Although you have to take everything it says with a grain of salt they do have great algorithyms giving theoretical value based upon several factors.  It provides another bead on the deal anyway.

Review of all three factors on RMLS #8112599 show this:

• Comparable sales are running around $383/ft for sold listings, $402/ft for active.  Our subject is priced at $313/ft
• Tax assessor’s opinion adjusted 15% puts value over $1.3m
• Zillow.com calculates current market value at $1.5m

RMLS 8112559, courtesy of Philip Higgins

All 3 factors weigh in on the equation and heavily tip the scales toward $980k being a screamin’ good price!  This particular condo listing has entertained numerous offers and will most likely close slightly above asking price.  It’s not that buyers don’t have money and can’t get financing, it’s that they’re waiting for bargains like this to take advantage of.  Homes for sale in Portland priced agressively move quickly and buyer outlook for the near future is amazing.  Opportunities will not last.

For more information on the Portland Oregon real estate market and homes for sale please check out www.maxwellsinclair.com!

What could be better for sellers in this market than selling?  Nothing! Keeping your deal together is incredibly important.  Like it or not, buyers control transactions when it comes to Portland Oregon real estate.  One of the ways they control the deal and potentially leverage a lower sale price is to nit-pick details brought up during home inspection.  So, how about a few tips to help minimize the list of piddly concerns that buyer’s inspector will inevitably bring up?!

After being on hundreds of inspections Stefan McGuire from A-Team Home Inspections shared with me a list of seven incredibly common problem areas:

1. Vegetation – To help deter wood rot and/or insect infestations keep vegetation 12″ away from structure.  Soil should be sloped away from the house and not be any closer than 6″ below start of siding material.

2. Exterior Paint & Caulking – Keeping surfaces sealing with caulk and painted helps minimize moisture damage and water intrusion.  Pay particular attention to bottom edges of wood siding near the ground as this is a leading cause of failure due to Portland’s wet climate.   This is often completely overlooked by painters and the first areas to show rot.

3. Crawlspace vents- Eliminate possible entry of rodents and your neighbor’s cat.  Check foundation vent screens for looseness and around protrusions from air conditioning lines, cable TV, etc. for holes larger than 1/4″.  Animals love to make tear down floor insulation, shred duct work and then die under your house.

4. Roof Repairs- Missing shingles generally result after heavy winds.  3 tab roofing is much more subject to damage than architectural styles.  If roof is visible from the street missing shingles can be very eye catching, showing that the owner may not pay attention to detail.  Even though initial damage doesn’t necessarily cause a noticeable leak problems may surface down the road and result in underlayment (roof plywood) or interior Sheetrock damage.

5. Gutter and Valley Cleaning – Treed neighborhoods in Lake Oswego, Forest Heights and others will product gutters clogging material on a regular basis, especially during fall leaf shedding periods.  Pain in the neck that it is keeping debris out and rain water flowing freely really limits damage to rafter tails, facial, and house trim in general.  Roof valleys are notorious for pine needle buildup which causes water to wick up under shingles and cause leaks.

6. Hot Water Tank Connections- Comes up on almost every inspection.  Small leaks occur at the galvanized supply line connections and water soaks into a tank’s insulation.  Potentially this causes irreparable damage long before drips appear below the heater.  Consider replacing galvanized fittings (pipe nipples) with brass to minimize chances of a disastrous water heater blow out while you’re out on vacation.

7. Exterior Faucets – Properly winterizing exterior hose bibs/faucet relieves pressure and limits chances of pipe breakage.   Many home sales happen during winter months and inspectors will test these faucets looking for leaks and correct shut off valving.  Shut off valves are often under kitchen sinks, bathroom or utility sink and on garage walls.  Closing these and opening exterior faucets to drain the line can save a lot on the plumbing bill.

Check out more seller tips, search all homes for sale in Portland and find Portland neighborhood information at www.maxwellsinclair.com

The Portland housing market has felt the same pressure as everywhere else in the US and prices have slid 20% off the 2006 peak in many cases.  RMLS figures for January just came out and there’s a 19 month supply of homes for sale, this is a record amount.  Fantastic time to be purchasing if your job is secure!

Tax credits for first-time home buyers will help stimulate Portland real estate.  Driving renters into homes pushes our housing market forward.  As money conscious renters see advantages of home ownership the market will change.  Couple that with an $8000 check and renting doesn’t look nearly as attractive.

Watch Oregon’s unemployment rate and as numbers plateau, not necessarily improve, this can be a sign of market bottom.  Many fence sitters are going to jump off, make the decision to purchase, and start the pendulum swinging towards a traditional appreciation trend for homes.  One thing’s certain in all this economic mess… Portland’s house prices will go back up!

Check out an outline of the Tax Credit for buyers. government_affairs_tax_credit_chart_021308