How's the Market?

Our Regional Multiple Listing Service released the market stats for November 2011 this afternoon.  In general, it is a bit more good news.

Both our closed and pending sales are up when compared with November 2010.  Closed sales increased by 18.9% from November 2010 to November 2011.  Pending sales increased 18.1% for the same time period.  In addition, the number of newly listed properties decreased by 18.1%.

When comparing October 2011 to November 2011, closed sales rose, pending sales fell and new listings decreased.  This is consistent with the usual seasonal slowing we see in November and December. 

In looking at average the average sales price, we saw a decrease of 4.6% from November 2010 to November 2011 for an average sales price of $259,400.  It should be noted that this is a slight increase (0.3%) from October 2011.

Read the full report here.http://www.rmlsweb.com/v2/public2/loadfile.asp?id=6392

We are seeing more positive than negative market factors, which could mean we are starting to get a bit of "lift off" after bumping along at the bottom. The inconsistenices in how foreclosed properties are processed and put back on the market cloud efforts to classify the current real estate market.  The market we have today is what we know...

If you'd like to know more about your specific home or neighborhood, give me a call.

Things that make you go hmmm.

I sat down this morning to write a blog referencing an article in yesterday's Oregonian that said Oregon incomes, during the recession, didn't fall as fast and nor as far as incomes in the rest of the country.  I liked this seemingly positive nugget in what can sometimes be a downer of a subject.  As I always do when referencing an article, I went on line to read it again and link to it.

Imagine my surprise when I found the article had been "amended" to say the complete opposite;

"Portland-area incomes fell faster and farther during the recession than national per capita income. And as Oregon takes longer to recover, incomes here continue to lag the national average as well as similar cities such as Seattle, Denver and Minneapolis." 

You can read the full article here.  And if you scroll down from the top, you'll see Tuesday's article below.

Wow.  I know how we interpret data can vary greatly. I can't though, help but be struck by this absolute switcheroo.  Had I not been looking into the article, I'd be walking around a bit more optimistic than usual at the thought that Oregonians haven't faired all that poorly.

hmm.

Mortal enemies, but for when it is cold.

This condominium seems like such a good deal, don't you think?

A client of mine is looking for a condominium for his aging mother.  She is still quite independent and wants to live on her own, but is moving to Portland to be closer to her son and the support he and his family can offer.

We're looking for two bedrooms, over 1000 square feet, close in, one level and under $300,000.  As you might imagine, it is the one level that is the challenge.  So many condominium projects with larger units are on more than one level. 

Last weekend we looked at a condominium in Sellwood that really caught my eye.  The neighborhood wasn't quite right for my client's mother, but I keep thinking about that place.  Hence this blog.

8401 SE 23rd is located deep in the south end of Sellwood, sort of that unincorporatedish part.  It is an easy block and a half south of Umatilla, and about three blocks east of 17th.  The street is very quiet and does not go through to McLaughlin.

What really struck me about this condominium was how pleasant and spacious the 1027 square feet felt.  The spacious rooms really make the place feel like a home.  In addition, this unit has a very generous back yard and patio with room for gardening and entertaining.

The homeowners' association dues are $305, per the listing, which covers water, sewer, garbage, commons and exterior maintenance.  You can see the RMLS listing here.  Portland Maps does show this in a flood zone, so flood insurance would be needed. The grounds are lovely.  You don't see many close-in complexes with this.

All this for $179,900.  If you think of who needs this, please send them my way.  This is not my listing, but I'd be glad to show it.

Fine Homebuilding's Remodeling Blunders (to avoid)

Sometimes Fine Homebuilding magazine is a bit too lofty for me.  We can't all afford the perfect setting, materials, timeline and all.  But every once in awhile I do find a feature, building material or approach that resonates.  Mind you, the majority of my 22 year real estate career has been selling old houses in Portland's close-in neighborhoods.  There are countless atrocities once can bestow on old houses.  I have seen many of them. 

The November 2011 issue of Fine Homebuilding cover article is, " 12 Restoration Blunders, Don't let poor planning and unrealistic expectations destroy a great old house".  

#1 Proceeding without a plan.  Now Fine Homebuilding may expect quite the elaborate plan, and maybe you can't quite afford that.  But do plan.

#2. Don't expect to flip.  Enough said.  Just don't.

#3. Assuming an unrealistic budget.  Yes, we all know remodel budgets and timelines expand exponentially.  Plan for that.

#4 Failing to coordinate your team.  We have found the intersection between trades one of the more challenging tasks of remodel work.  There is both timing to coordinate, order of projects and what I call "the edges".  While you do want to put  together your own team, contractors who often work together can alleviate a lot of unnecessary hassle and delay.

#5 Mishandling Environmental Hazards.  Asbestos, lead based paint, heating oil, freon etc.  With good reason, these hazards are regulated and have stipulated methods for remediation.  Follow the guidelines.   No excuses.

#6 Leaving it leaky.  This is about air intrusion and energy efficiency.  Great strides have been made in tightening up old drafty houses.  Seal attics and crawl spaces, consider a blower door test to find elusive leaks and insulate, insulate, insulate.

#7 Installing new windows.  Fine Homebuilding says to forget the spendy window replacements, we don't lose that much energy through windows anyway.  I beg to differ.  Window replacements aren't just about energy loss.  New windows can alleviate some of the more hazardous lead based paint, provide sound attenuation (from a gal who lives on a busy street).  And new windows that open and close more smoothly certainly provide a quality of life improvement.

#8 Replacing rather than repairing.   I agree.  From a conservation standpoint, why dispose and buy new when you don't have to.  Hardware, moulding and trim, old growth lumber; these things are what give an old home the class and patina we like.  So when you can, avoid gutting and stripping.

#9 Ignoring historic tax credits.  You don't hear much about these, and for smaller projects the administration hassle may over shadow the benefit.  Check out this link for more information.

#10 Forgetting to document.  Pictures are invaluable, as are accurate plans...not how you planned to build it, but how it ended up.  This kind of information is especially valuable with regard to what is behind the walls and where it is.

#11 Ignoring an old home's assets.  I think this could be #1.   Take a good hard look at the assets of that old house before you start planning the job.  What do you have to work with?  Are there some hidden assets?

#12 Blowing the chance to leave behind a better house.  Be sure what you put in is quality.  We all know building materials won't last forever, but using stuff and practices to lengthen the life will make a huge difference.

While you are thinking about all there is to consider when planning a house project, keep these twelve more things in mind.  If you have questions about what features sell in Portland's market, feel free to contact me for a bit of advice.  Happy remodeling!

Market Update for October

Not much new here. As with the past few months, when compared with last year, the number of closed and pending sales are up while the number of properties on the market has continued to decrease.  Similarly,  looking month to month, we are seeing the expected seasonal decline in sales activity.

So, closed sales increased 14.1% from October 2010 to October 2011, while pending sales saw an increase of 15.1% in that same period.  There were 22% fewer new listings in October 2011 than October 2010.  Some of this decrease in inventory may be, in part, due to a slow down in foreclosures, which in turn has fewer bank owned properties on the market.  The average sales price fell 6.5% when compared with October 2010, to a current average sales price of $258,700.

From September 2011 to October 2011, we see 7.1% fewer closed sales.  We always have a funny, "before the holidays" blip, shown by a slight increase in pending sales from September 2011 to October 2011, of 0.9%.  These are sale folks are planning to have closed prior to the holidays. 

I am still describing this market as bumping along at the bottom.  The sales volume increase can show an improving market, while declining prices are, well, declining.  I don't expect some incredible "lift off", but can imagine, with enough months of increased sales activity, that we'll start to see slight upward movement in prices.  Several cities around the country are seeing some price increases.  I'll save that for another blog.  Read the complete Regional Multiple Listing report.

What's Going On With the Old Waverly School?

 We walk the dogs by this place most every weekend.  It is a beautiful old building on a large piece of ground in a nice residential neighborhood in close-in Southeast Portland.  The grounds are a haven for squirrels, and thus remain quite popular with our dogs. 

Originally a Portland Public School, the property has had a variety of social service uses over the past 20 years.    Vacant for about the past two years, the property's highest and best use clearly no longer includes a large dated brick building.  Yes, we all bemoan the loss of these old buildings, but really now, how many can be made in brew pubs, condominiums and community centers.  The McMenamins can't restore every old building.

So in comes some pretty cool plans for a residential community.  It looks like co-housing, only everyone has their own house.  The plat shows about 10,000 square feet of common space including a fire pit and community gardens; all surrounded by single family homes ranging from 1600 to 2600 square feet.  Waverly Commons, as the project is called, is brought to us by developer Mark Desbrow and his development team. Also incorporated into the project will be sustainable architecture, options for solar or geothermal heating, and a  tool lending library.  You can see proposed plans and more about the project here.

I don't see prices posted yet, but the "How this Works" tab lays out some deposit and financing guidelines that bode for some pretty pricey homes.  This neighborhood easily supports home prices in the high $400,000's.  I'd expect new construction, with high end and sustainable features and the luxury of the "commons" will be priced upwards of there, perhaps considerably.

The Southeast Examiner's November issue reports that demolition of the old building will begin in December, with construction expected to start in February 2012.  While the dogs won't appreciate the construction and will mourn the loss of "squirrel haven" as we call it, I'm sure Don and I will look forward to dog walks allowing us to keep an eye on the project.