Seasonal Slowing? I don't think so.

Wow, none of that seasonal slowing for Portland real estate.The RMLS just released statistics for the month of October, and the numbers are quite good. We continue to see increases in activity; the amount of pending and closed sales.  There were 15.9% more accepted offers in October 2012 than in October 2011. From September 2012 to October 2012, pending sales increased by 5.8%.   Similarly, closed sales were up 42.9% in October 2012 when compared to October  2011, and up 11.0% from September 2012..

Prices continue to show gains.  The median year to date sales price rose 3.8% when comparing October 2012 to October 2011; $232,500 compared with a median year to date sales price of $221,000 in 2011. 

Inventory, the number of homes available on the market, fell to a new low of 3.8 months.   That is, at our current rate of sales, it would take 3.8 months to sell all available properties.  This is 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 November, we are seeing the some seasonal slowing.  Buyers tiring of fighting for the few good houses on the market are taking some time off for the holidays.  Beleaguered buyers are tiring of multiple offer situations and are resorting to sweetening their offers by waiving inspections, giving earnest money up front directly to the sellers, and of course making cash offers over list price.

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.  If you've been thinking of selling, we expect the strong buyer demand to surge at the beginning of the new year.  

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.

South Waterfront Diverstity...Finally

Wow.  I'm just back from touring Reach Community Development's new building in the South Waterfront; Gray's Landing, named for the recently deceased, and very philanthropic, John Gray.

REACH and I go way back.  I served on the board and as board president back in the mid-1990's.  So I am pre-disposed to the organization and their products.

But wow.  Gray's Landing, known as Block 59 for several years, was first conceived about 10 years ago as the South Waterfront was being developed.  The real estate bust put the project on the back burner and the realities of low income housing development, being done by a for profit developer, made the project less than attractive.  The for profit developer got a ways on the project, including full on plans, before bowing out.  REACH responded to an RFP and was chosen, perhaps in part because REACH was looking for new office space and agreed to lease a fair portion of the ground floor commercial space.

Taking over mid-stream, REACH was able to make a few adjustments to the overall plan, but not a lot.  The courtyard had been primarily for waste water filtering and disposal.  REACH opted for an eco-roof (largest one in the city) which allowed them to make the courtyard available as a community space.

The eco-roof has some growing to do.

REACH also opted for some solar hot water heating, which should heat slightly over 40% of the building's water.  REACH also increased the size of the community room as they value having a space for gathering, exercise classes, cooking demonstrations, financial literacy classes and the like.

A few other cool features of this building include the street car stop right outside. AND, REACH is providing a room for the street car drivers break room as Gray's Landing is at the end of the line.  In turn, Tri-Met passes will be made available at a deeply discounted rate   Tenants will be required to take a "green systems" course teaching them about the building and in exchange, will receive a pass.  Each floor of the building has a laundry room.  There are parking spaces for about 50% of the units, available at no fee on a first come first served basis.

The target population for this building are folks earning at or below 60% of median Family Income ($30,660 for a single person). In addition there are 42 apartments targeted to low income veterans who have been homeless within the past two years.

The thing about REACH is, that in addition to being a provider and developer of low income housing, REACH also provides a variety of support systems and resources to help their tenants weather challenges and make it through tough times.

Oh and did I say the project came in early, and I believe under budget?!  Way to go REACH!

Darn those leaves? Maybe not.

This time of year, many of us grumble about falling leaves and the work they cause for us; raking, clogged gutters, slippery sidewalks and so on.  Add that to falling limbs, their wear on sidewalks and one might just as soon get rid of trees.

But not so fast.  We all know trees provide clean air, shade for cooler streets and home in summer, habitat and more.  Some of us just plain feel better with trees around; enjoying the sound of wind in the leaves, the dappled shadows they cast and the smell of wet fall leaves.  I know, I know all that touchy feely stuff.

Recently, Money Magazine ran an article entitled, Trim the Risk of Tree Ownership.  My seldom seen pessimistic side jumped to the conclusion that this money focused magazine would suggest getting rid of trees to minimize risk and hassle.  My active mind went pretty far down that road.  I was delighted, upon reading the article, to see it reference the perceived 8-10% contribution to your home's value those trees may add. Here is a bit from the Arbor Day Foundation about the value of trees.

Indeed, there are times when trees need to be removed  and there are things to do to minimize the risk and hassle of trees.  We have a huge and ancient cherry tree in the back yard of our old house(now a rental).  We have babied it for years, having professional work done to extend its life.  But this spring and summer  about half the tree didn't leaf out :(  Should this tree fall, no matter what direction, it will do damage to a house, and quite possibly not ours.  Time to go.  We're glad to have a pretty good sized cedar in the yard  that "volunteered" a few years ago.

Trees are good, even the money people think so.  Now, I'm off to go do some raking.

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.

Then do it for the dog.

I have REALLY been having trouble getting the exercise thing together. There have been many years of my life where I was a good, regular, devoted exerciser. For the past few years, this has not been the case.  I attempt to use the"time" excuse, but can easily find time for other commitments (they must be a higher priority).

So eight weeks ago, one of my dogs had cruciate ligament surgery (TPLO). I won't go into the gory details, but she was then confined to a crate for eight weeks (but for going potty), and has now been freed and is on an exercise regime; several 10 minute walks a days (as in 4-6), increasing by five minutes every two weeks, for another eight weeks.  Okay, so this is just day six of the first week, and the weather is lovely.  But I am having NO trouble finding the time to take Mollie on these walks, and oh yes, I happen to be getting a bit of exercise myself.  Indeed, getting home during the day for these walks takes far more time than the walks themselves.

And if you were to design a program to get someone back exercising, wouldn't it look a whole lot like this; starting small and regular, with gradual increases? hmm.  I'm glad to have found the motivation, but am a bit disappointed not to have found it within myself.

In Mollie's case, the exercise will actually stimulate bone growth so it can fill in where it is needed; pretty essential stuff. In my case, well, we all know the of benefits of exercise and how that list grows as we age.

After having been crated for eight weeks, Mollie's stamina isn't what it had been. So after five ten minute walks yesterday. She was beat.  A tired dog is a good dog.  I'm not  beat, but can certainly tell that I've been moving more than usual.

Thanks Mollie!

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).

Still looking good

The RMLS just released the statistics for the month of August, and they reflect what we've been seeing in my office. We continue to see pretty big increases in activity; the amount of pending and closed sales.  There were 9.1% more accepted offers in August 2012 than in August 2011, and essentially no change from July 2012.  Similarly, closed sales were up 28% in August 2012 when compared to August 2011, and up 17.1% over July 2012.

Prices continue to show gains.  The median year to date sales price rose 4.5% when comparing July 2012 to July 2011; $230,000 compared with a median year to date sales price of $220,000 in 2011. 

Inventory, the number of homes available on the market fell again  such that we are back to  3.9 months of inventory.  That is, at our current rate of sales, it would take 3.9 months to sell all available properties.  

So far in September, we are seeing a wee bit of  normal seasonal slowing, but expect we'll also see healthy sales activity from mid-September to Thanksgiving.  There are often  pretty good deals to be had in the fall; folks who tried to sell in the spring, but somehow missed out.  Getting a sale closed before the holiday can be sort of a last ditch effort.  Many investors make a habit of buying in the fall.  Similarly, buyers who REALLY want to be in their new homes by Christmas can be pretty motivated buyers. 

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 report here.