The Regional Multiple Listing Service released stats for February, showing more of the same.
More rising prices; median price is up 8.5% to $238,500 in the last twelve months.
We have more pending and closed sales and inventory remains low with 4.5 months of inventory city wide; pending sales increased 11.8% from January 2013. Some desirable close-in neighborhoods are seeing inventory as low and 1.5 months. At the current rate if sales it would only take 1.5 months to sell all the houses on the market.
And our average market time remains low at 116 days city wide. This is an average, so imagine how quickly the good ones are actually selling.
The real estate conversation is all about inventory. There are plenty of buyers in the marketplace right now hoping to get in before prices and interest rates rise too much more. But...there aren't so many houses to choose from, making multiple offers and bidding wars commonplace. We are even seeing multiple cash offers; in some cases buyers needing to buy using financing need not even submit offers.
So if you've been thinking of selling, now is a pretty good time. Interest rates remain reasonably low such that more buyers can afford to buy at a certain price range. As both interest rates and prices rise, the pool of buyers for any given price range will decrease.
See the full report.
Wednesday, March 13, 2013
Monday, March 11, 2013
Be a Strong Real Estate Buyer
Resume? Personal letter? Pre-approval letter and proof of funds?
As you may have heard, Portland's housing market is in a bit of a crisis. No, not that housing bubble crisis. We have WAY more buyers than houses to sell! Multiple offers are common place, as are sales prices well above asking prices.
Buyers are challenged to differentiate themselves from the competition to get their offers accepted. Obviously price is a big concern, but many sellers like an emotional connection with a buyer and may forgo a higher offer for a financially well qualified buyer with whom they identify. Here are a few tips:
1) Get pre-approved through a local mortgage lender or mortgage broker; preferably one with a solid reputation in the real estate community. If a listing agent has worked with your lender and liked them, they'll most likely pass on that positive report to the seller. With loan underwriting guidelines as strict as they are, we see plenty of loans fail from loan processors not knowing how to correctly verify and document assets and liabilities. Get a good lender and do the legwork of pre-approval up front.
2) Be willing to provide proof of your down payment funds. This can be in the form of a banking or investment statement, with the account numbers blacked out. It does need to show at least the amount of money required for your loan and your name(s). Waiting for a payout from your deceased Aunt Tillie's estate does not a down payment make.
3) Put a few kind gestures in your offer. If the sellers are going on to buy another property, they are stressed out and challenged about selling and buying and moving in a short period of time. Offer the sellers a few days in the house after closing, at no cost to them, and then be generous in allowing them to rent back for another week or so. Yes, this will cost you a bit as you'll have ownership costs, but it may well get you the house you want. If the house is an estate, consider offering to dispose of unwanted household goods and personal effects. This will cost you a bit of time and money, but may be invaluable to the heirs.
4) Work on a generic letter ahead of time, which you'll customize for each offer you write. This is a letter to the seller about you, complimenting the house and talking about the features that draw you to the house. Clearly the second part is done specific to each house. This may well be the sappiest thing you ever write. " The work you've done to the yard is just wonderful;. My partner is an avid gardener we look forward to summer evenings under the gazebo etc." Or, "our children, ages 4 and 6 are so excited to live so close to the park and to have their own rooms". Really tell your story and include pictures.
5) If the seller is an investor or a bank, they may be more interested in the price. But a clean offer; reasonable close date, ample earnest money, respectable price and a strong pre-approval letter should do the trick. Don't clutter your offer with small one-off requests such as removing the cat door or re-keying the locks. Less is more.
Email me for more tips on getting your offer accepted at leslievjones@gmail.com
As you may have heard, Portland's housing market is in a bit of a crisis. No, not that housing bubble crisis. We have WAY more buyers than houses to sell! Multiple offers are common place, as are sales prices well above asking prices.
Buyers are challenged to differentiate themselves from the competition to get their offers accepted. Obviously price is a big concern, but many sellers like an emotional connection with a buyer and may forgo a higher offer for a financially well qualified buyer with whom they identify. Here are a few tips:
1) Get pre-approved through a local mortgage lender or mortgage broker; preferably one with a solid reputation in the real estate community. If a listing agent has worked with your lender and liked them, they'll most likely pass on that positive report to the seller. With loan underwriting guidelines as strict as they are, we see plenty of loans fail from loan processors not knowing how to correctly verify and document assets and liabilities. Get a good lender and do the legwork of pre-approval up front.
2) Be willing to provide proof of your down payment funds. This can be in the form of a banking or investment statement, with the account numbers blacked out. It does need to show at least the amount of money required for your loan and your name(s). Waiting for a payout from your deceased Aunt Tillie's estate does not a down payment make.
3) Put a few kind gestures in your offer. If the sellers are going on to buy another property, they are stressed out and challenged about selling and buying and moving in a short period of time. Offer the sellers a few days in the house after closing, at no cost to them, and then be generous in allowing them to rent back for another week or so. Yes, this will cost you a bit as you'll have ownership costs, but it may well get you the house you want. If the house is an estate, consider offering to dispose of unwanted household goods and personal effects. This will cost you a bit of time and money, but may be invaluable to the heirs.
4) Work on a generic letter ahead of time, which you'll customize for each offer you write. This is a letter to the seller about you, complimenting the house and talking about the features that draw you to the house. Clearly the second part is done specific to each house. This may well be the sappiest thing you ever write. " The work you've done to the yard is just wonderful;. My partner is an avid gardener we look forward to summer evenings under the gazebo etc." Or, "our children, ages 4 and 6 are so excited to live so close to the park and to have their own rooms". Really tell your story and include pictures.
5) If the seller is an investor or a bank, they may be more interested in the price. But a clean offer; reasonable close date, ample earnest money, respectable price and a strong pre-approval letter should do the trick. Don't clutter your offer with small one-off requests such as removing the cat door or re-keying the locks. Less is more.
Email me for more tips on getting your offer accepted at leslievjones@gmail.com
Saturday, March 2, 2013
The Neon Boneyard
Rusted metal, broken glass and some hazardous chemicals; yet we paid to see it.
I've been in Las Vegas this week for the RE/MAX Convention. Though Vegas is not my natural habitat (is it anyone's?), this is a great event. I often get quite caught up in the classes and sessions; not taking time to get out a bit.
A few of my pals helped with that "getting out and about" thing, making advance reservations at The Neon Boneyard, or The Neon Museum , located on the north side of town. Clearly, saving the fabulous old neon signs has long been a concern. The Young Electric Sign Company has been creating and servicing neon signs in Las Vegas for generations. The company has played an instrumental part in the museum and neon preservation. This actual museum has only recently opened in early 2013. The welcome center is in the relocated old La Concha Motel.
Neon Boneyard or taking a self-guided tour of neon in Las Vegas' downtown; either way, take a look. Oh, and call me if you want more information or pictures. 503-312-8038.
I've been in Las Vegas this week for the RE/MAX Convention. Though Vegas is not my natural habitat (is it anyone's?), this is a great event. I often get quite caught up in the classes and sessions; not taking time to get out a bit.
A few of my pals helped with that "getting out and about" thing, making advance reservations at The Neon Boneyard, or The Neon Museum , located on the north side of town. Clearly, saving the fabulous old neon signs has long been a concern. The Young Electric Sign Company has been creating and servicing neon signs in Las Vegas for generations. The company has played an instrumental part in the museum and neon preservation. This actual museum has only recently opened in early 2013. The welcome center is in the relocated old La Concha Motel.
The museum offers guided tours only, leaving hourly. Advance reservations are advised. The tour takes about an hour, with tons of great history, information about the neon industry and plenty of photo opportunities. Who was the first casino owner to comp drinks to gamblers AND put chairs at the slot machines? How'd that first racially integrated casino work out? Who knew the four pointed "stars" on the Stardust Hotel sign signified nuclear "dust" from all this desert tests?
In addition to pieces at the museum site, the organization has restored several iconic neon signs that can be seen along Las Vegas Blvd and Fremont St. in downtown Las Vegas.
Neon Boneyard or taking a self-guided tour of neon in Las Vegas' downtown; either way, take a look. Oh, and call me if you want more information or pictures. 503-312-8038.
Saturday, February 16, 2013
Those new market stats
The RMLS just released statistics for the month of January. It is nice to see a few more houses coming on the market, as buyers are out in force. We also see a consistent trend in slow, steady price increases.
The median sales price over the previous twelve months increased 7.3% to $236,000 up from $219,000. In January, pending sales rose a whopping 37.7% over the previous month. Closed sales, reflecting seasonal slowing of selling activity over the holidays, dipped to 1344 in January 2013 when compared with 1760 in December 2012
Housing inventory rose to 4.7 months, up from 3.6 months in December 2012. That is, at the current rate of sales, it will take 4.7 months to sell out the inventory.
If you've been thinking about selling, get in touch and we'll see where the value is on your home. There are plenty of buyers out there looking to make a move. If you've been waiting to buy, don't wait too much longer. We don't want you priced out by increasing prices and interest rates - unless your income is also going up.
Leslie Jones 503-312-8038. leslievjones@gmail.com
Read the full RMLS report.
The median sales price over the previous twelve months increased 7.3% to $236,000 up from $219,000. In January, pending sales rose a whopping 37.7% over the previous month. Closed sales, reflecting seasonal slowing of selling activity over the holidays, dipped to 1344 in January 2013 when compared with 1760 in December 2012
Housing inventory rose to 4.7 months, up from 3.6 months in December 2012. That is, at the current rate of sales, it will take 4.7 months to sell out the inventory.
If you've been thinking about selling, get in touch and we'll see where the value is on your home. There are plenty of buyers out there looking to make a move. If you've been waiting to buy, don't wait too much longer. We don't want you priced out by increasing prices and interest rates - unless your income is also going up.
Leslie Jones 503-312-8038. leslievjones@gmail.com
Read the full RMLS report.
Wednesday, February 13, 2013
That popular FHA financing
For years, FHA (Federal Housing Administration) have long been a staple of first time and lower income home buyers. In general, FHA loans allow a buyer to have lower credit scores and a bit more debt, along with lower down payments, than conventional loans.
As you might imagine, the housing crisis was especially hard on the Federal Housing Administration. The National Association of Realtors reports that an independent audit shows the FHA has an economic value of negative $13.48 billion. Over the past few years FHA has been making a variety of slight adjustments; increases in their mortgage insurance and funding fees. This spring brings another wave of changes in an effort to stem the tide.
The two most notable changes are:
1) Raising the annual mortgage insurance premium by 10 basis points, or about $13 per month on the average loan.
2) Making the mortgage insurance permanent; meaning MIP can no longer be removed once an owner achieves 20% equity. Keep in mind though, the average FHA loan turns over quicker than conventional loans as they are often used to buy that first, starter house.
These changes to FHA are a balancing act; address FHA's financial strength (or lack of it) without putting a damper on the now recovering housing market.
Read the FHA report here.
As you might imagine, the housing crisis was especially hard on the Federal Housing Administration. The National Association of Realtors reports that an independent audit shows the FHA has an economic value of negative $13.48 billion. Over the past few years FHA has been making a variety of slight adjustments; increases in their mortgage insurance and funding fees. This spring brings another wave of changes in an effort to stem the tide.
The two most notable changes are:
1) Raising the annual mortgage insurance premium by 10 basis points, or about $13 per month on the average loan.
2) Making the mortgage insurance permanent; meaning MIP can no longer be removed once an owner achieves 20% equity. Keep in mind though, the average FHA loan turns over quicker than conventional loans as they are often used to buy that first, starter house.
These changes to FHA are a balancing act; address FHA's financial strength (or lack of it) without putting a damper on the now recovering housing market.
Read the FHA report here.
Friday, February 8, 2013
A Cautionary Sidewalk Tale
A friend of mine has a rental property in a nice, close-in, walkable Portland neighborhood. She got a letter from an attorney this week.The attorney is representing a woman who tripped on my friend's sidewalk in August and broke her wrist. In February, this is the first my friend had heard of it. Would my friend please provide her insurance company contact information so the claim could be made and processed. Really?! Just like that?
Over the years, my husband and I have done, or paid for, LOTS of sidewalk repairs and replacement, as mandated by the City of Portland., We always groan, and get snippy about all the more egregious sidewalk issues we see in walking our neighborhood. And yes, we give a nod to the safety aspects of good sidewalks.
Back to my friend. Her insurance agent had been out to the property in the last few years and they had looked at a bump, or separation in the sidewalk. He suggested, rather than going to the expense to replace the offending sections, they mix up some concrete and do sort of a patch or small ramp to alleviate the trip hazard. Tempting... and this is what they did.
So when my friend got the letter,. she didn't even need to go look at the sidewalk. She new exactly the spot. Ugh. I'm not sure how it will pan out, but I'm guessing some money will change hands, her insurance will go up, and they'll most likely end up doing a larger sidewalk repair.
Sage advice? I don't know. One could spend a fortune defensively replacing sidewalks. Portland has miles of aging sidewalks, kind of like our miles of aging sewers. But unlike our miles of aging sewers, the public has an expectation that your sidewalk will be...walkable. As you start your spring yard clean up, take a look, with a critical eye, at your sidewalks. See anything that might need attention?
Call me if you need a referral to some good sidewalk contractors. Don and I just had sidewalks done this fall and know some decent contractors. Oh,and if the City of Portland calls out your sidewalk, they don't give you much time to get the project handled before they have it done and charge you. Just so you know.
Over the years, my husband and I have done, or paid for, LOTS of sidewalk repairs and replacement, as mandated by the City of Portland., We always groan, and get snippy about all the more egregious sidewalk issues we see in walking our neighborhood. And yes, we give a nod to the safety aspects of good sidewalks.
Back to my friend. Her insurance agent had been out to the property in the last few years and they had looked at a bump, or separation in the sidewalk. He suggested, rather than going to the expense to replace the offending sections, they mix up some concrete and do sort of a patch or small ramp to alleviate the trip hazard. Tempting... and this is what they did.
So when my friend got the letter,. she didn't even need to go look at the sidewalk. She new exactly the spot. Ugh. I'm not sure how it will pan out, but I'm guessing some money will change hands, her insurance will go up, and they'll most likely end up doing a larger sidewalk repair.
Sage advice? I don't know. One could spend a fortune defensively replacing sidewalks. Portland has miles of aging sidewalks, kind of like our miles of aging sewers. But unlike our miles of aging sewers, the public has an expectation that your sidewalk will be...walkable. As you start your spring yard clean up, take a look, with a critical eye, at your sidewalks. See anything that might need attention?
Call me if you need a referral to some good sidewalk contractors. Don and I just had sidewalks done this fall and know some decent contractors. Oh,and if the City of Portland calls out your sidewalk, they don't give you much time to get the project handled before they have it done and charge you. Just so you know.
Thursday, January 31, 2013
Safety Measures or a Crutch?
My dog, Mollie, and I put a good number of miles in walking our neighborhood. She, at times, has been a very reactive dog; needing to bark at every dog we see. While she is in general a good walker, (doesn't pull on the leash and such) she can get a bit too interested in stinky things along the way. Over time, it has become habit for me to always have dog treats along, and to use them for distraction from other dogs or to get her back on track.
Yesterday, we set off on our first walk of the day, and after a few blocks I realized I had no treats! Ack. I almost turned back. That is how strong my reliance on those treats can be. Mollie realized, rather quickly, that I had no treats. Ack. We proceeded to have the most lovely walk! I was more focused on keeping her on track, and caught any unwanted behavior before she settled in to it. It made me realize how many of Mollie's behaviors had become about getting the treat. Right? If she gets to snuffly looking for cat poo in leaves, she'll get a treat. Talk about a win/win. Either cat poo or a treat! We met two other dogs on our side of the street, whom we greeted politely and moved on.
As a parent, we've all had that crutch. If "it" gets really bad, I can always use the favorite blanket, bottle, nursing etc. Indeed, having a Plan B is a wise parenting strategy.
I am one who likes to have a contingency, or next thing, in reserve. When camping, I always want one more warm layer, so if it gets really bad I can go to that. I did though recently relent and put on that last layer. Ahhh. Warm and cozy. Or how about when I quit smoking many years ago. I carried a pack of cigarettes for almost a year. Temptation? Nope, my back up. If "it" got really bad, I'd have cigarettes with me. I never did smoke one.
Contingency? Plan B? Crutch? Do these things allow us to be sloppy in our endeavors since we have a back up plan? How does having a contingency plan affect your behavior? And would you do a better job without that back up?
Yesterday, we set off on our first walk of the day, and after a few blocks I realized I had no treats! Ack. I almost turned back. That is how strong my reliance on those treats can be. Mollie realized, rather quickly, that I had no treats. Ack. We proceeded to have the most lovely walk! I was more focused on keeping her on track, and caught any unwanted behavior before she settled in to it. It made me realize how many of Mollie's behaviors had become about getting the treat. Right? If she gets to snuffly looking for cat poo in leaves, she'll get a treat. Talk about a win/win. Either cat poo or a treat! We met two other dogs on our side of the street, whom we greeted politely and moved on.
As a parent, we've all had that crutch. If "it" gets really bad, I can always use the favorite blanket, bottle, nursing etc. Indeed, having a Plan B is a wise parenting strategy.
I am one who likes to have a contingency, or next thing, in reserve. When camping, I always want one more warm layer, so if it gets really bad I can go to that. I did though recently relent and put on that last layer. Ahhh. Warm and cozy. Or how about when I quit smoking many years ago. I carried a pack of cigarettes for almost a year. Temptation? Nope, my back up. If "it" got really bad, I'd have cigarettes with me. I never did smoke one.
Contingency? Plan B? Crutch? Do these things allow us to be sloppy in our endeavors since we have a back up plan? How does having a contingency plan affect your behavior? And would you do a better job without that back up?
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