Home energy scores, part two

It is still early days for Portland's home energy scoring program, taking effect January 1, 2018.  To be in compliance, homeowners planning to sell early in the year are getting the homes scored now.  There are sure to be some bumps along the way.

Here are a few random facts, ideas and thoughts.

Square footage: The home energy score is looking at conditioned space.  That is, within the thermal boundaries where there are dedicated heat sources.  Square footage in property listings includes ALL space, finished or unfinished, heated or unheated.  There will be discrepancies between the square footage listed in the RMLS and that on the home energy score.  This okay and expected.  these differences do not have to be reconciled, but are sure to drive some folks crazy.

Bedrooms:  Similarly, what it takes to consider a room a bedroom varies.  A newly permitted bedroom through the city is probably the highest standard.  Bedrooms, listed in the multiple listing service vary a lot; attics with super steep stairs and very little headroom, basement bedrooms without sufficient fire egress, a loft etc.  For the purposes of the energy scores, the certified evaluators are given some license.  If a room is being used as a bedroom, but doesn't fit the rigorous criteria of the city, for purposes of the score, it may be considered a bedroom. But...even if  the energy scorer calls it a bedroom, it may not be a bedroom for purposes of selling.  This too may drive some people crazy.

ADUs: In obtaining a home energy score for a home with a detached ADU, only the actual house need be evaluated.  The ADU does not need its own score.

Outside of Portland: The certified evaluators can do assessments and provide home energy scores outside of Portland, though this is not required.  If done, the scoring will be done using the Department of Energy's scoring rubric, not the City of Portland program,  They are quite similar.

That is it for now.  There is sure to be more information on this program as it comes into use.

If you have questions on home energy scoring, please feel free to contact me.  I've made a point to educate myself and may be able to help.  lesliejones@gmail.com  503-312-8038.

That year end real estate report

Well, boy were my projections for 2015 off.  Last year I said, “For 2015 I predict an amount of the same, but with a few more houses on the market.  So, slightly increasing values (I’d love something like 5%), slightly increasing interest rates (to 5%?), and slightly increasing inventory.  I think we’ll see a larger variety of loan products as lending eases a bit.”

Instead,   We saw the average sale prices increase as much as 13.5% in North Portland, and 8.3% and 7.7% in Southeast and Northeast respectively.  Our inventory shrunk to less than two month’s worth, for most of the year. Interest rates remained low, and sometimes dipped even lower.  We saw more multiple offer situations and prices driven quite high by emotional, “gotta have it” buyers.  We did see a larger variety of loan products available, giving buyers more choice.

But the big story this year is with regard to our rental market.  Often, pre-crash, an active ownership market (people buying and selling to owner occupy) meant a soft rental market.  Instead of renting, folks are buying.  This year, we have had both, with a vengeance.  The rental market is so tight, rents have escalated sky high, and the prices on multiple unit properties have increased accordingly. Long time landlords are selling off their rentals and getting good prices.  Many out of town investors, attracted to our rising rents and tight market, are jumping in.

Wholesale evictions and exponential rent increases led the City of Portland to declare a housing state of emergency.  Through this, required notice times for no cause evictions and rent increases over 5% were extended to ninety days.  This is a small piece, slowing rapid fire eviction and rent increases to give beleaguered tenants a chance to catch their breath.

The CFPB Consumer Financial Protection Bureau issued new rules that took effect on October 3^rd, furthering borrower protections with regard to loan costs and fees.  These rules, commonly called “Know Before You Owe” assure borrowers ample notice and disclosure when the terms of their loan changes beyond certain thresholds. This is a good thing.

As for my 2016 prediction:     

Seriously though. We’ll see more of the same; tight inventory, with not enough houses to satisfy demand, slightly rising interest rates if the FED makes their move and slightly longer close times to accommodate the new CFPB regulations.

We’re seeing some rumblings and action being taken by county tax collectors in efforts to include in the tax rolls, “omitted property”.  That is, improvements that have been made to a property, but not included in their assessed value, such that taxes aren’t being collected on the improvement.  For instance, you remodeled your kitchen and baths, and finished your basement into a family room.  But your tax assessment is on the house, without those improvements.

When assessors find omitted property, they notify the owner and add the property to tax rolls. The law allows them to assess the property in previous years as well: up to five years in Oregon.  Oh joy.  

Some of you took me up on my offer of radon test kits.  I hope you all got low results.  I do have a few more kits available should anyone else want to test.

I remain honored to help folks with some of the biggest decisions in their lives, and 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.

Is Fall the time to buy (and sell)?

Many think spring is the "best" time to transact real estate.   And while spring isn't a bad time, I favor fall for a variety of reasons.  First off, I love an under dog.  Poor maligned fall :)

Both buyers and sellers in the fall market are ready to get down to business,and get it done.  Fall is not a looky loo, real estate as entertainment time of the year. Fall is about efficiency.  Owner occupants or investors; most everyone wants to get it done by the holidays, or the end of the calendar year.

Sellers who did not get their property sold in the busier spring, are often ready to get down to business and may make repairs and concessions they might not have agreed to earlier in the year.

There tend to be fewer buyers in the fall market as many are busy with back to school activities, and even schooling of their own.  So buyers can have more choices in the fall.

Our listing inventory bumped up in the late summer, and I expect we'll see that true for September and October.

AND, interest rates remain reasonable low, even though the financial markets are acting as if the Fed has already raised them sky high.

So, ready and willing sellers, fewer buyers, more houses, and lower interest rates.  What's not to like?

And sellers, don't worry that you missed the mythical busy season.  You don't need, or want 21 offers on your property.  You'll probably still get a few offers, keeping things competitive.  And really, you only need one good offer.

Call, email or text with questions about the fall market. 503-312-8038  leslievjones@gmail.com

That seasonal slowing, kinda

Statistics are out, showing Portland area real estate activity for September.

 At our current rate of sales, it will take 3.1 months to sell all the properties on the market.  This is a slight increase form August (3 months), but a drop from last September's 3.7 months.

Pending sales were up 15.0% from September 2013,  and fell 5.7% from August 2014.   Closed sales rose 10.2% from September 2013, but are down 8.0%  from  August  2014.

Our market time got a tad shorter; 60 days in September 2014 vs. 63 days in August 2014.  September 2013 had a market time of 72 days. .

The median year to date sales price is $281,000, up 9.8% from the median year to date sales price in September 2013 of  $256,000.

So, prices continue to increase, we've had a slight increase in the number of houses on the market, but the pace of sales and number of active buyers make for a busy real estate industry.  There is still a lot of cash in the market, making it harder for first time buyers, with low down payments, to compete.

We are seeing the predicted flurry in September and October as both buyers and sellers rush to finalize real estate transactions before the holidays.  While our market slows over the holidays, plenty of real estate business is conducted, primarily by serious buyers and sellers looking to get it done.

Call me if you want to jump in.  503-312-8038

read the full Portland area report here

Stagnant but mature?

In my last blog, I wrote about our flat, stagnant, but good market.  This is an extension of that blog.

Part of why this market feels good, is that we, as real estate agents have matured into how we work in such an active real estate arena.  We better prepare our buyer and seller clients for what to expect in this type of market. We know better how to handle multiple offers on a listing and understand why sometimes it can be hard. yes, hard, for a seller to receive  seven offers, above list price within 3 days of their house going on the market.

We counsel our buyer clients from the start on participating in a multiple offer situation, and are no longer incredulous, when a listing agent doesn't get our offer in front of the seller right away.

When our active market first hit back in the 2003 - 2006, the industry wasn't particularly well versed in handling the increased speed and intense emotions of a busy and appreciating market.  We often fed the pressure cooker of emotion and stress, rather than diffusing the situation and helping our clients focus on the matters at hand.

Today, we aren't surprised by multiple offers on a listing, but nor do we expect, or feel we deserve them.  As a listing agent receiving multiple offers on a listing, we have procedures and standards in place for communicating equally and fairly with all parties, methods for helping a seller consider multiple offers, and the experience to help our seller clients set expectations for the eventual closing of the transaction.

So stagnant and flat also speaks to the calm, mature approach today's real estate agents have toward such a busy market.

As we enter the fall, I expect a flurry of activity until Thanksgiving as both buyers and sellers make an effort to wrap up their real estate activity before the holidays or end of the tax year.  We're seeing a slight increase in new listings on the market as we all get re-engaged from the summer.  Give me a call, text or email if you have questions.  503-312-8038   leslievjones@gmail.com

Holy Cow! No wonder we're so busy.

Anecdotally, the market has been feeling crazy busy these days.  There are lots of cash buyers in the market, which makes for fast and somewhat loose players.  Rapidly rising prices make cash king, as worries of low appraisals are off the table.  Waived, or minimized inspections are also on the rise.  Buyers, please don't take on a potentially leaking oil tank.  Most any other conditions can be reasonably estimated, but an untested tank could get you your very own superfund site.

So, statistically, more rising prices, with the  median price for the first five months of this year up 15.0% over the same period in 2012 to $253,000.  Fifteen percent. 

We have more pending and closed sales, and inventory remains low with 2.5 months of inventory city wide.  That means, at the current rate of sales it would take 2.5 months to sell the properties currently on the market.  In some of the close-in neighborhoods, we see this well below 30 days.   Pending sales increased 1.2% from April 2013 and 18.1 from May 2012.  Closed sales are up 26.2%  over April 2013 and 27.8 % over May 2012.

And our average market time remains low at 85 days, down from 91 last month.   This is an average, so imagine how quickly the good ones are actually selling.

Interest rates are slowly on the rise, as they should be.  For a 30 year fixed rate, one might expect a 4.125% rate, 3.375 for a 15 year rate.  These are still great rates, probably the lowest we'll see in the coming years.  Rising rates, though, do tend to light a fire under "on the fence" buyers...

If you've been thinking of selling, now is a pretty good time.

See the full report.

Waverly Commons Update

Over a year ago I wrote a blog on the project at the old Waverly School site, between SE 35th and  SE 36th, and SE Woodward and SE Brooklyn.

 At that time, the developers had hoped to start building early in 2012.  I don't know particulars, but it did take quite awhile for the site work to be done.

 Now known as Waverly Commons, the project finally has some building going on.

This structure is on the SE corner of the property at SE 36th and SE Brooklyn.  It looks like attached housing to me; perhaps for two families?  Or maybe an extended family.  This picture was taken on December 6 at about 7:45 am.  By that evening there was a solid third level.  The grade of the property is such that , the bottom level, with garages is slightly below ground.

I'm excited to see this project take shape and am looking forward to seeing how it develops.  From what I can see on the developer's website, all but three of the lots were spoken for in early summer.  I'd guess by now all have some sort of reservation.

Check back for updates, or let me know if you have any real estate questions.

Fall is for buying (and planting)

The RMLS just released the statistics for the month of September, and they reflect what we've been seeing in my office. We continue to see increases in activity; the amount of pending and closed sales.  There were 10.6% more accepted offers in September 2012 than in September 2011. Though we are seeing a bit of seasonal slowing with 13.8% fewer pending sales, in September 2012 than in August 2012. Similarly, closed sales were up 19.4% in September 2012 when compared to September  2011, but down  18.0% from August 2012.

Prices continue to show gains.  The median year to date sales price rose 3.8% when comparing September 2012 to September 2011; $230,420 compared with a median year to date sales price of $222,000 in 2011. 

Inventory, the number of homes available on the market, is bumping along, slightly higher in September 2012 at 4.6 months than August's low of 3.9 months.  That is, at our current rate of sales, it would take 4.6 months to sell all available properties.  This is still quite low, with a balanced market thought to be somewhere around 6 months. We continue to see multiple offers and very short market times for well priced properties in good condition.

So far in October, we are seeing the predicted seasonal slowing.  Indeed, most of my current buyer clients right now are investors. Still reasonable prices, low interest rates, Portland's low vacancy rates and dismal investment returns from other investment vehicles, make buying that rental house or plex kind of attractive. In addition, buyers who REALLY want to be in their new homes by Christmas are pretty motivated too.

I'd be glad to talk with you about what is happening in your neighborhood.  Give me a call at 503-312-8038 or email me at leslievjones@gmail.com.

Read the full RMLS market report.

Who are we, anyway?

I succumbed to curiosity and bought that most recent Portland Monthly; the one with the citywide survey.  The cover really does pull one in.

Actually, the full list on the cover has God and Money above Sex and the rest.  So yeah, I made the impulse buy at the checkout stand, just as they hoped I would.  Did you?

While there are many interesting factoids in the survey, the real estate broker in me is most interested in the sections about housing and money.  For instance, while traditionally it is thought one shouldn't spend more than 30% of income on housing, in Portland, "More than a quarter of  PDX residents spend 40% or more of their take-home pay on housing".  That being said, 50% pay 20 percent or less; with the footnote that 18-34 year-olds are most likely to pay 5% or less.  I'm thinking the 18-34 year-olds may have some sort of subsidies, along with living in smaller housing - paying for a room in a house rather than an apartment.

Our thoughts on our jobs and money are interesting also.  The question was asked, " What is the least amount of money you need in the bank to feel rich?".  40% said they would need $10,000 or less in the bank to feel rich. and 28% said $100,000 in the bank would make them feel rich.  There was no discussion in the article what "feeling rich" means to respondents.  On some days, a full tank of gas, $40 in my wallet and yummy leftovers for lunch can make me feel rich. Around income tax time, when I really look at what has passed through my business and personal accounts, I can feel less rich.

And on income, while  Portland ranks 74th in the US for 5-year wage and salary growth"," 43% of us answered yes to "does my company pay me what my skills are worth?".  And lastly, on money, "If you make over $100,000, you likely believe you can make more money in another state".

Okay, a few of those factoids that also led me to make the impulse buy.  87% of us say "pull the plug" when asked, " If you're unable to live without life support instruments, would you want doctors to unplug you?".  It is nice to see this is consistent with Oregon's death with dignity accommodations. And I was very surprised to see 65% of us would put their kids in private and/or religious school if money weren't an issue.  Really?!  But then 57% of us think spanking is an appropriate form of punishment. and yes, that was in the Family section, not the Sex section.

Lots of other interesting stuff in there.  You can pick up a copy at most grocery stores or subscribe or  access some information on line:  Portland Monthly.

Oh, and if you do pick up the magazine, check out the Home Sweet Home postcard we'd make (pg. 128).