2013
brought us a very active real estate market.
The dearth of homes on the market led to a selling season of multiple
offers, offers over list price and a prevalence of cash in the market place. It
is estimated 30% of all residential real estate transactions, were cash
transactions. A mere offer from a buyer
pre-approved, with 20% down payment on a conventional loan was often not
“enough” to win the house. Most buyers
I worked with wrote at least three offers, good offers, before getting an offer
accepted.
The
fall brought us slightly rising interest rates, the government “shut down” and
a bit of seasonal slowing.
A
few issues we dealt with in 2013; radon is still an issue, for which most every
buyer is testing in a transaction. In
general, the installation of a mitigation system isn’t too spendy (under
$2000), and in most cases, sellers do pay for radon mitigation. Though the supply of oil tanks is now
limited, and we’ve been working our way through getting them all tested and
decommissioned and documenting the decommissions. If you have an existing buried oil tank I
encourage you to consider decommissioning it.
Waiting for the tank to leak, while regulations around clean ups become
more stringent is not a wise choice. If
you have a decommissioned oil tank, hang onto that paperwork. Proof of the completed work is key.
Next
year, we expect a healthy spring selling season; with seasonal slowing in the
late summer and late fall. It is hoped,
after the brisk market of 2013, more sellers will put their properties on the
market. This will give buyers a bit more to choose from, easing the frenzied
bidding wars. The Portland market saw
an increase in value of 15% in 2013. I expect that rate of increase to ease,
but remain positive. Buyers haven’t
forgotten the crash, and even in a frenzy, need to see value in what they buy;
location, condition, features, something.
While
interest rates have bumped a bit from their low of last spring, they are still
well under 5%. We expect interest rates
to slowly rise. Rising rates are
actually a sign of a healthy market, as we move away from rates kept
artificially low by government to stimulate the economy. Remember, interest rates of 5 and 6 percent
didn’t put much of a damper on the boom market of the mid 2000’s.
Mortgage
lending has seen some changes. Good lenders have already instituted the
stricter underwriting guidelines that are effective in 2014. While lending is still tight, there are new
products that may make life easier. For
folks who suffered a short sale or foreclosure, there is a program facilitating
them getting home loans sooner than later.
And, for folks buying in upper price ranges where loan amounts over
$417,000 carried hefty fees and interest rates, we’re seeing some programs with
costs competitive to conforming loans.
I
am honored to help folks with some of the biggest decisions in their lives, and
am humbled by the trust that is put in me.
My business is based on referrals.
I will always take good care of
anyone you send my way. Be it selling or
buying, or just curious, I’m always glad to answer questions and provide information.
