This is an informative video we think you should check out.
A little canned, yes, but still good information.
Thursday, December 18, 2008
Wednesday, November 5, 2008
Interest Free Loans!!!
The National Housing and Economic Recovery Act of 2008 have put in to affect a first-time homebuyer tax credit, which is designed to prod those reluctant home-buyers into taking the plunge. It seems awesome, at first, then skeezy, then simply okay. At least, that’s how it was for me.
You see, at first, I thought the government was throwing money at you. Awesome. That’s not the case, unfortunately. A tax credit is something akin to a no-interest loan, only you don’t actually get the money; it’s just taken out of your taxes, and you eventually have to pay it back. The aim is to ease the financial burdens on a first time home-buyer, not to toss money at them (Insert sadface here).
How much is this for, you ask? $7,500. Technically, the credit is for 10% of the sale price of the house, but you can’t claim any more that $7,500. So, unless you can find a house for under $75,000, the credit is for $7,500.
So, who counts as a first-time home-buyer? If you have yet to own a house, it’s a pretty good bet you’re a first-time home-buyer. BUT! If you haven’t owned a house as a principal residence (you don’t live in it) for three years, YOU are a first-time home-buyer, as well! That means, if you owned a house four years ago, then moved to an apartment, you are qualified for this tax credit, as well! (Note: If you are married, the law tests homeownership history of your spouse, to. Unfortunately, if she has owned a home as a principal residence in the last three years, you cannot claim this credit, or even half, as in some other cases, detailed below.)
If you have a non-occupying homebuyer – a parent, for example – on the loan, you qualify for ½ the loan ($3,750). The non-occupying homebuyer is not eligible for the credit. If you’re buying a house with someone else, but aren’t married, you are both qualified for ½ the credit (or divided among however many people are purchasing and living in the home, assuming they all haven’t owned a home in the last three years.) And, if you and your spouse are filing taxes separately, you both are eligible for half the credit.
All of you – or just you – have to pay this back over fifteen years (beginning two years after the credit is claimed) at $500 a year, or when you sell the house. If you do sell the house, the money is simply taken out of the profits that you make. If the profits are insufficient, then the remaining credit is forgiven.
This is retroactive, meaning that if you purchased your home any time after April 9th, 2008, you are eligible, and any home (provided that it is to be used as the principal residence) qualifies for this credit, including townhouses and condominiums. This opportunity ends June 30th, 2009, though, so act now!
Somewhat of a drudge to read through, I know, but if you are a first-time home-buyer, this is actually a pretty good deal, and combined with the all-time low prices of homes and interest rates these days, it makes for a very good time to buy a home.
So, go ahead and buy a home!
From us!
http://www.web2real.com/
http://www.web2real.com/listings.shtml/
We’ve got some really nice ones out there.
Like these two homes here -->
$130,000 each, or $230,000 for both sides!
You see, at first, I thought the government was throwing money at you. Awesome. That’s not the case, unfortunately. A tax credit is something akin to a no-interest loan, only you don’t actually get the money; it’s just taken out of your taxes, and you eventually have to pay it back. The aim is to ease the financial burdens on a first time home-buyer, not to toss money at them (Insert sadface here).
How much is this for, you ask? $7,500. Technically, the credit is for 10% of the sale price of the house, but you can’t claim any more that $7,500. So, unless you can find a house for under $75,000, the credit is for $7,500.
So, who counts as a first-time home-buyer? If you have yet to own a house, it’s a pretty good bet you’re a first-time home-buyer. BUT! If you haven’t owned a house as a principal residence (you don’t live in it) for three years, YOU are a first-time home-buyer, as well! That means, if you owned a house four years ago, then moved to an apartment, you are qualified for this tax credit, as well! (Note: If you are married, the law tests homeownership history of your spouse, to. Unfortunately, if she has owned a home as a principal residence in the last three years, you cannot claim this credit, or even half, as in some other cases, detailed below.)
If you have a non-occupying homebuyer – a parent, for example – on the loan, you qualify for ½ the loan ($3,750). The non-occupying homebuyer is not eligible for the credit. If you’re buying a house with someone else, but aren’t married, you are both qualified for ½ the credit (or divided among however many people are purchasing and living in the home, assuming they all haven’t owned a home in the last three years.) And, if you and your spouse are filing taxes separately, you both are eligible for half the credit.
All of you – or just you – have to pay this back over fifteen years (beginning two years after the credit is claimed) at $500 a year, or when you sell the house. If you do sell the house, the money is simply taken out of the profits that you make. If the profits are insufficient, then the remaining credit is forgiven.
This is retroactive, meaning that if you purchased your home any time after April 9th, 2008, you are eligible, and any home (provided that it is to be used as the principal residence) qualifies for this credit, including townhouses and condominiums. This opportunity ends June 30th, 2009, though, so act now!
Somewhat of a drudge to read through, I know, but if you are a first-time home-buyer, this is actually a pretty good deal, and combined with the all-time low prices of homes and interest rates these days, it makes for a very good time to buy a home.
So, go ahead and buy a home!
From us!
http://www.web2real.com/
http://www.web2real.com/listings.shtml/
We’ve got some really nice ones out there.
Like these two homes here -->
$130,000 each, or $230,000 for both sides!
Wednesday, October 15, 2008
September 2008 Market Report
Comparing September 2008 with that of 2007, pending sales dropped a slight 3%. Closed sales were also off of 2007's level by 13.3%. New listings also fell 5.4%. See table above. At the month's rate of sales, the 2,459 active residential listings would last approximately 10.2 months.
For Further information Please click on the following link: http://www.web2real.com/2008SeptemberMarketReportLane.pdf
Thursday, October 2, 2008
Attention! Calling all first-time home-buyers!
The National Housing and Economic Recovery Act of 2008 have put in to affect a first-time homebuyer tax credit, which is designed to prod those reluctant home-buyers into taking the plunge. It seems awesome, at first, then skeezy, then simply okay. At least, that’s how it was for me.
You see, at first, I thought the government was throwing money at you. Awesome. That’s not the case, unfortunately. A tax credit is something akin to a no-interest loan, only you don’t actually get the money; it’s just taken out of your taxes, and you eventually have to pay it back. The aim is to ease the financial burdens on a first time home-buyer, not to toss money at them (Insert sadface here).
How much is this for, you ask? $7,500. Technically, the credit is for 10% of the sale price of the house, but you can’t claim any more that $7,500. So, unless you can find a house for under $75,000, the credit is for $7,500.
So, who counts as a first-time home-buyer? If you have yet to own a house, it’s a pretty good bet you’re a first-time home-buyer. BUT! If you haven’t owned a house as a principal residence (you don’t live in it) for three years, YOU are a first-time home-buyer, as well! That means, if you owned a house four years ago, then moved to an apartment, you are qualified for this tax credit, as well! (Note: If you are married, the law tests homeownership history of your spouse, to. Unfortunately, if she has owned a home as a principal residence in the last three years, you cannot claim this credit, or even half, as in some other cases, detailed below.)
If you have a non-occupying homebuyer – a parent, for example – on the loan, you qualify for ½ the loan ($3,750). The non-occupying homebuyer is not eligible for the credit. If you’re buying a house with someone else, but aren’t married, you are both qualified for ½ the credit (or divided among however many people are purchasing and living in the home, assuming they all haven’t owned a home in the last three years.) And, if you and your spouse are filing taxes separately, you both are eligible for half the credit.
All of you – or just you – have to pay this back over fifteen years (beginning two years after the credit is claimed) at $500 a year, or when you sell the house. If you do sell the house, the money is simply taken out of the profits that you make. If the profits are insufficient, then the remaining credit is forgiven.
This is retroactive, meaning that if you purchased your home any time after April 9th, 2008, you are eligible, and any home (provided that it is to be used as the principal residence) qualifies for this credit, including townhouses and condominiums. This opportunity ends June 30th, 2009, though, so act now!
Somewhat of a drudge to read through, I know, but if you are a first-time home-buyer, this is actually a pretty good deal, and combined with the all-time low prices of homes and interest rates these days, it makes for a very good time to buy a home.
So, go ahead and buy a home!
From us!
http://www.web2real.com/
We’ve got some really nice ones out there.
Like these two homes here -->
$132,000 each, or $245,000 for both sides!
You see, at first, I thought the government was throwing money at you. Awesome. That’s not the case, unfortunately. A tax credit is something akin to a no-interest loan, only you don’t actually get the money; it’s just taken out of your taxes, and you eventually have to pay it back. The aim is to ease the financial burdens on a first time home-buyer, not to toss money at them (Insert sadface here).
How much is this for, you ask? $7,500. Technically, the credit is for 10% of the sale price of the house, but you can’t claim any more that $7,500. So, unless you can find a house for under $75,000, the credit is for $7,500.
So, who counts as a first-time home-buyer? If you have yet to own a house, it’s a pretty good bet you’re a first-time home-buyer. BUT! If you haven’t owned a house as a principal residence (you don’t live in it) for three years, YOU are a first-time home-buyer, as well! That means, if you owned a house four years ago, then moved to an apartment, you are qualified for this tax credit, as well! (Note: If you are married, the law tests homeownership history of your spouse, to. Unfortunately, if she has owned a home as a principal residence in the last three years, you cannot claim this credit, or even half, as in some other cases, detailed below.)
If you have a non-occupying homebuyer – a parent, for example – on the loan, you qualify for ½ the loan ($3,750). The non-occupying homebuyer is not eligible for the credit. If you’re buying a house with someone else, but aren’t married, you are both qualified for ½ the credit (or divided among however many people are purchasing and living in the home, assuming they all haven’t owned a home in the last three years.) And, if you and your spouse are filing taxes separately, you both are eligible for half the credit.
All of you – or just you – have to pay this back over fifteen years (beginning two years after the credit is claimed) at $500 a year, or when you sell the house. If you do sell the house, the money is simply taken out of the profits that you make. If the profits are insufficient, then the remaining credit is forgiven.
This is retroactive, meaning that if you purchased your home any time after April 9th, 2008, you are eligible, and any home (provided that it is to be used as the principal residence) qualifies for this credit, including townhouses and condominiums. This opportunity ends June 30th, 2009, though, so act now!
Somewhat of a drudge to read through, I know, but if you are a first-time home-buyer, this is actually a pretty good deal, and combined with the all-time low prices of homes and interest rates these days, it makes for a very good time to buy a home.
So, go ahead and buy a home!
From us!
http://www.web2real.com/
We’ve got some really nice ones out there.
Like these two homes here -->
$132,000 each, or $245,000 for both sides!
Tuesday, September 16, 2008
August 2008 Market Report
A look at August's market Activity in Greater Lane County shows that new listings decreased 18.6% compared with August 2007. Further, closed sales were down 28.7%, while pending sales dropped 10.5%. See table below. At the month's rate of sales, the 2,564 active residential listings would last approximately 8.1 months - down from 8.8 months in July
For Further information Please click on the following link:http://www.web2real.com/2008AugustMarketReportLane.pdf
For Further information Please click on the following link:http://www.web2real.com/2008AugustMarketReportLane.pdf
Wednesday, September 10, 2008
July 2008 Market Report
The final results from July show a 19.4% decrease in closed sales compared with July 2007. Further, pending sales dropped 31.9%, and new listings slid 10.4%. At the month’s rate of sales, the 2,632 active residential listings would last approximately 8.8 months.
For Further information Please click on the following link:
http://www.web2real.com/2008JulyMarketReportLane.pdf
For Further information Please click on the following link:
http://www.web2real.com/2008JulyMarketReportLane.pdf
Guest Blog from Terry Johnson of OMT Mortgage
Howdy,
What has been referred to as "the most comprehensive response yet to the American mortgage crises", HR3221 has passed the House and Senate, and has been signed into law by the President. This law has support from NAMB (National Association of Mortgage Brokers) and OAMP (Oregon Association of Mortgage Professionals). Remember those organizations, as they will come up again. In installments I'll share with you things about that new law that may be of interest to you.
Today I'll talk about Loan Officers/Mortgage Brokers. It is believed by OAMP that around 12,000 loan officers are currently doing business in Oregon. Of those around 9000 are working from another State. That's not a misprint. 9000 are not Oregonians, do not pay Oregon Taxes, do not buy computers, printers, or food in Oregon stores. They do not live in Oregon houses or pay property taxes that help Oregon Schools. They are not bound by Oregon's strict education and licensing requirements, or the oversight that Oregon Mortgage Brokers have through The State of Oregon Division of Finance and Securities. If that wasn't bad enough, they are also probably not Duck or Beaver fans.
Who are these people and the Companies they work for? You know them. You see their commercials on TV every night and are hounded by their pop ups on your computer everyday. Why do they do so much business? Can they offer better service? NO they cannot. In fact the service is often very poor. Can they offer better deals than a local Mortgage Broker? NO they cannot. They do, however, usually PROMISE better deals. It has long been the stand of OAMP and NAMB that a National system be established to set standards and provide oversight of ALL Mortgage Brokers. This can also keep bad players from skipping from State to State ahead of State regulators. Does this happen? You'd better believe it. HR 3221 at long last requires that such a registry and oversight be established. That is GOOD for the Consumer, and our entire industry.Well, that's it for today. If you have any questions blog me back. I'll be happy to respond. I'll have more on HR 3221 soon.
:-) JOHNSON
Hold on to your Fannies (And your Freddies)!
Fannie Mae and Freddie Mac couldn't hack it, and have run behind the apron strings of old Mrs. Federal Government. She's a-tappin' her foot and waggling her finger at these two bad children.
See, what happens is this: They gotta pay off bonds which mature every month, and to do that, they sell NEW bonds. Kinda like robbing Peter to pay Paul back for that time you robbed Paul to pay Peter. Unfortunately, Paul ain't buyin' none of that, so Missy Mae and young Mr. Mac can't gather the money to make more loans. This is a Mr. Poo, meet Mr. Fan situation.
But! Old Mother Treasury has stepped up and decided to back up these two young rapscallions. What does this mean? It's like parents co-signing a loan for their kid's college tuition. It lends credibility, and gives the loaner confidence that the loan will be repaid in full. Or, at least, they hope.
So now, for one reason and some more, interest rates have gone down! Lower interest means more affordable housing! That cute little Tudor you had your eye on that was just out of your price range? Bam! Yours, now! Amazing? Yes! How many houses do you own? NOT ENOUGH! Buy more houses!
... From us.
See, what happens is this: They gotta pay off bonds which mature every month, and to do that, they sell NEW bonds. Kinda like robbing Peter to pay Paul back for that time you robbed Paul to pay Peter. Unfortunately, Paul ain't buyin' none of that, so Missy Mae and young Mr. Mac can't gather the money to make more loans. This is a Mr. Poo, meet Mr. Fan situation.
But! Old Mother Treasury has stepped up and decided to back up these two young rapscallions. What does this mean? It's like parents co-signing a loan for their kid's college tuition. It lends credibility, and gives the loaner confidence that the loan will be repaid in full. Or, at least, they hope.
So now, for one reason and some more, interest rates have gone down! Lower interest means more affordable housing! That cute little Tudor you had your eye on that was just out of your price range? Bam! Yours, now! Amazing? Yes! How many houses do you own? NOT ENOUGH! Buy more houses!
... From us.
Friday, June 6, 2008
June 6th Rates
High Credit Score = Low Mortgage RateCredit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower.
There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of financial responsibility and ability to pay back loans. There are many quick tricks to improve the credit score, and I can provide borrowers with more information on this subject. If necessary, I guide them to a reliable resource for credit remediation. If a borrower has to pay a higher interest rate to close a loan, the tarnished credit rating will begin to improve once mortgage payments are made on time and in full. If that is the case, my team and I will be on the watch to alert the borrower when an opportunity arises to refinance and get a lower interest rate.
To see this file clearer please click on the following link: http://www.web2real.com/June6Rates.pdf
Where McCain, Obama Stand on Housing
The following article is from Realtor Magazine. June 5th 2008
As the race for the presidency shapes up as a contest between Sen. John McCain, the presumptive Republican nominee, and Sen. Barack Obama, who will claim the Democratic nomination, here are their initial positions on housing and related economic issues.
McCain:
1. Proposes to spend up to $10 billion to allow some home owners to trade high-interest, adjustable-rate mortgages for fixed-rate loans.
2. Proposes a suspension of the 18.4-cent federal gas tax and 24.4-cent diesel tax during the summer.
3. Supports a middle-class tax cut by doubling the personal tax exemption for dependents to $7,000.
4. Calls for a simpler tax system with two tax rates and a generous standard deduction.
5. Supports making permanent the 2001 and 2003 income tax cuts and proposes cutting the corporate tax rate to 25 percent from 35 percent and allowing businesses to immediately write off capital expenses.
6. Maintains that government assistance to the banking system should focus on preventing systemic risk that would endanger the financial system and the economy.
Obama:
1. Calls for greater government regulation of the U.S. financial system and proposes a new $30 billion economic stimulus plan to help home owners, including a $10 billion foreclosure prevention fund to help people keep their homes and $10 billion in relief for state and local governments hit hardest by the housing crisis.
2. Outlines six "core principles for reform" that would give the Federal Reserve supervisory authority over any financial institution to which it might make credit available and calls for reform and streamlining of financial regulatory agencies.
3. Wants to repeal a provision in the bankruptcy law so ordinary families can modify terms of home mortgages.
4. Proposes a 10 percent mortgage tax credit for middle-class Americans.
As the race for the presidency shapes up as a contest between Sen. John McCain, the presumptive Republican nominee, and Sen. Barack Obama, who will claim the Democratic nomination, here are their initial positions on housing and related economic issues.
McCain:
1. Proposes to spend up to $10 billion to allow some home owners to trade high-interest, adjustable-rate mortgages for fixed-rate loans.
2. Proposes a suspension of the 18.4-cent federal gas tax and 24.4-cent diesel tax during the summer.
3. Supports a middle-class tax cut by doubling the personal tax exemption for dependents to $7,000.
4. Calls for a simpler tax system with two tax rates and a generous standard deduction.
5. Supports making permanent the 2001 and 2003 income tax cuts and proposes cutting the corporate tax rate to 25 percent from 35 percent and allowing businesses to immediately write off capital expenses.
6. Maintains that government assistance to the banking system should focus on preventing systemic risk that would endanger the financial system and the economy.
Obama:
1. Calls for greater government regulation of the U.S. financial system and proposes a new $30 billion economic stimulus plan to help home owners, including a $10 billion foreclosure prevention fund to help people keep their homes and $10 billion in relief for state and local governments hit hardest by the housing crisis.
2. Outlines six "core principles for reform" that would give the Federal Reserve supervisory authority over any financial institution to which it might make credit available and calls for reform and streamlining of financial regulatory agencies.
3. Wants to repeal a provision in the bankruptcy law so ordinary families can modify terms of home mortgages.
4. Proposes a 10 percent mortgage tax credit for middle-class Americans.
Thursday, May 22, 2008
April Market Report
A comparison of April 2008 with that of 2007 shows that new listings decreased 11.7% Closed sales were down 35.8%, while pending sales fell 34.2%. At the month's rate of sales the 2,252 active residential listings woulds last approximately 9.5 months. However based on the chart below houses for the month of April are staying on the market for less days in comparison to the last 5 months.
For Further information Please click on the following link: http://www.web2real.com/2008AprilLaneMarketAction.pdf
May News Letter
Please visit the following link to view the May Realty Times news letter.
http://realtytimes.com/nlnews.htm?open&Vol=c&ID=sallyjostevewickham
http://realtytimes.com/nlnews.htm?open&Vol=c&ID=sallyjostevewickham
Friday, May 9, 2008
Real Estate Outlook: State of the Economy
Here's how a top mortgage industry economist sees conditions in the market at the moment: It's all kind of "flat", says Orawin, senior forecast economist for the Mortgage Bankers Association of America.
What Dr. Velz was referring to were the latest big-picture, "macro" numbers on the U.S. economy that underpin the housing market: The gross domestic product or GDP -- all the goods and services generated in the national economy -- registered a zero point six (0.6) growth rate in the first quarter.
No question that's pretty anemic. But it's better than the negative growth predictions that had been made by many Wall Street analysts.
In the latest month, manufacturing production was better than just about anybody expected -- factory orders jumped by 1.4 percent in March. No big deal you say? Well maybe, but it was the first increase in factory orders we've seen in the last three months.
The employment picture was also better than projected. The US economy lost 20,000 jobs in the most recent month, which is not good. But Wall Street had forecast an 80,000 job loss number -- and the stock market took a nice bounce on the news of the smaller loss.
Plus, the national unemployment rate dropped to 5 percent from 5.1 percent.
On top of all this, the Federal Reserve did precisely what most analysts expected -- cut the short-term federal funds rate by another quarter of a point.
Now that doesn't translate into lower 30-year mortgage rates, but it is very welcome news for millions of people with home equity credit lines and adjustable-rate mortgages heading for payment resets.
The fed funds rate is now at 2 percent, and the prime bank rate is just 5 percent - which is outstanding -- and should eventually have a stimulative effect throughout the economy.
Mortgage rates also fell slightly last week. Average thirty year rates inched downward to 6.01 percent, according to the Mortgage Bankers, and 15 year rates averaged 5.5 percent.
All in all, things could be worse. And they could be better. We are all paying horrendous gas and food prices and that psychology diminishes consumers' appetites to buy and sell houses.
On the other hand, the underlying US economy is defying the pundits, hanging in there like a boxer who refuses to go down. Home prices and the cost of money are more affordable, and a number of local real estate markets are picking up on that combination -- and improving.
So: the economy may be flat. But considering the alternatives, flat looks relatively favorable at the moment.
Written by Kenneth R. HarneyMay 9, 2008
What Dr. Velz was referring to were the latest big-picture, "macro" numbers on the U.S. economy that underpin the housing market: The gross domestic product or GDP -- all the goods and services generated in the national economy -- registered a zero point six (0.6) growth rate in the first quarter.
No question that's pretty anemic. But it's better than the negative growth predictions that had been made by many Wall Street analysts.
In the latest month, manufacturing production was better than just about anybody expected -- factory orders jumped by 1.4 percent in March. No big deal you say? Well maybe, but it was the first increase in factory orders we've seen in the last three months.
The employment picture was also better than projected. The US economy lost 20,000 jobs in the most recent month, which is not good. But Wall Street had forecast an 80,000 job loss number -- and the stock market took a nice bounce on the news of the smaller loss.
Plus, the national unemployment rate dropped to 5 percent from 5.1 percent.
On top of all this, the Federal Reserve did precisely what most analysts expected -- cut the short-term federal funds rate by another quarter of a point.
Now that doesn't translate into lower 30-year mortgage rates, but it is very welcome news for millions of people with home equity credit lines and adjustable-rate mortgages heading for payment resets.
The fed funds rate is now at 2 percent, and the prime bank rate is just 5 percent - which is outstanding -- and should eventually have a stimulative effect throughout the economy.
Mortgage rates also fell slightly last week. Average thirty year rates inched downward to 6.01 percent, according to the Mortgage Bankers, and 15 year rates averaged 5.5 percent.
All in all, things could be worse. And they could be better. We are all paying horrendous gas and food prices and that psychology diminishes consumers' appetites to buy and sell houses.
On the other hand, the underlying US economy is defying the pundits, hanging in there like a boxer who refuses to go down. Home prices and the cost of money are more affordable, and a number of local real estate markets are picking up on that combination -- and improving.
So: the economy may be flat. But considering the alternatives, flat looks relatively favorable at the moment.
Written by Kenneth R. HarneyMay 9, 2008
Market Predictions for the State of Oregon
The following article is gleaned from http://www.housingpredictor.com/oregon.html.
New businesses moving to the state produced record high home prices in Oregon, but the times have been changing in Oregon real estate. Housing sales have slacked off. Home auctions are becoming more common place and the once burgeoning economy is beginning to weaken.
Oregon has been high on the list with many appreciating housing markets for more than three years, but the boom days are long over. A glut of unsold homes is depressing prices, and the growing inventory will have a major impact on the state’s markets, according to the Housing Predictor forecast.
Don’t look for Oregon housing markets to crash any time soon, however, as newcomers continue to move to Oregon for jobs and buy homes to have a roof over their heads.
In Eugene, which has exploded with growth in the last five years with new developments, the housing market has also slowed. But a major new employer is moving to Eugene to supply a breath of fresh air to the economy.
The housing slow down has resulted in layoffs at lumber companies, which is one of the region’s largest employers. The down turn has effected the area’s home prices, and is readying to send Eugene homes 8.0% lower in 2008, Housing Predictor forecasts.
New businesses moving to the state produced record high home prices in Oregon, but the times have been changing in Oregon real estate. Housing sales have slacked off. Home auctions are becoming more common place and the once burgeoning economy is beginning to weaken.
Oregon has been high on the list with many appreciating housing markets for more than three years, but the boom days are long over. A glut of unsold homes is depressing prices, and the growing inventory will have a major impact on the state’s markets, according to the Housing Predictor forecast.
Don’t look for Oregon housing markets to crash any time soon, however, as newcomers continue to move to Oregon for jobs and buy homes to have a roof over their heads.
In Eugene, which has exploded with growth in the last five years with new developments, the housing market has also slowed. But a major new employer is moving to Eugene to supply a breath of fresh air to the economy.
The housing slow down has resulted in layoffs at lumber companies, which is one of the region’s largest employers. The down turn has effected the area’s home prices, and is readying to send Eugene homes 8.0% lower in 2008, Housing Predictor forecasts.
Friday, May 2, 2008
Market Report March 2008
Looking at March 2008 compared with March 2007, the number of new listings decreased 9.5%. Additionally the number of closed sales declined 29.1% and the pending sales decreased 28.7%. At the month's rate of sales the 2,074 active listings would last 8.4 months.
This is a Decrease in Inventory from the beginning of the year when it was at 10.2 compared to 2006 when themarket was still hot with an inventory of 3.8. 
Thursday, April 17, 2008
Second-Home Sales Accounted For One-Third of Transactions in 2007
The Following article is gleaned from "Second-Home Sales Accounted For One-Third of Transactions in 2007" by Walter Molony from Realtor.org
WASHINGTON, March 28, 2008 -
The combined total of vacation- and investment-home sales declined with the overall market in 2007, but still accounted for 33 percent of all existing- and new-home sales, which is close to historic norms, according to the National Association of Realtors®.
The market share of homes purchased for investment last year was 21 percent, down from 22 percent in 2006, while another 12 percent were vacation homes, compared with a 14 percent market share in 2006. The total share of second homes declined from 36 percent of transactions in 2006.
Lawrence Yun, NAR chief economist, said the findings suggest different cycles for each of the sectors over the past two years. “Investment-home sales declined sharply in 2006 as speculators disappeared, leaving the market to serious buyers, with the pattern continuing in 2007,” he said. “Vacation-home sales rose to a new record in 2006 because there was a pent-up demand from buyers who couldn’t find a property as a result of tight supplies in preceding years.”
The overall sales decline in 2007 resulted from a combination of factors. “Certainly, second homes are discretionary purchases and there is a natural tendency to pull back from big-ticket items in periods of uncertainty,” Yun said. “The other factor is the disruption in the mortgage market, with a significant tightening of credit during the second half of 2007. Some buyers simply adopted a wait-and-see attitude.”
Yun said lifestyle factors and strong demographics remain positive for the vacation home market. “Investment considerations are secondary for vacation-home buyers, so there is some dormant underlying demand,” he said. “A peak of population is moving through the prime years for buying recreational property. It is welcoming to see investment sales returning to pre-boom sales activity.”
There were no significant changes in investment housing types. Sixty-one percent of investment homes purchased in 2007 were detached single-family homes, 20 percent condos, 11 percent townhouses or rowhouses, and 8 percent other. Twenty-eight percent of vacation-home buyers paid cash for their property, as did 35 percent of investment buyers.
Sixty-five percent of vacation home buyers and 71 percent of investment home buyers purchased existing homes, while the remainder purchased new homes.
The typical vacation-home buyer in 2007 was 46 years old, had a median household income of $99,100, and purchased a property that was a median of 287 miles from their primary residence.
In listing the reasons for purchasing a vacation home, 84 percent of buyers wanted to use the home for vacation or as a family retreat; 30 percent to use as a primary residence in the future; 26 percent to diversify investments; 25 percent to rent to others; 16 percent for the tax benefits; 14 percent for use by a family member, friend or relative; and 6 percent because they had extra money to spend.
Last year, 19 percent of vacation homes were purchased in the Northeast, 16 percent in the Midwest, 41 percent in the South and 24 percent in the West. In terms of location, 30 percent of vacation homes were purchased in rural areas, 20 percent in resorts, 20 percent in a suburb and 14 percent in an urban area or central city.
When asked about the most important reasons for their purchase of an investment home, 51 percent said to provide rental income; 39 percent to diversify investments; 21 percent to use for vacations or as a family retreat; 16 percent for use by a family member, friend or relative; 11 percent for tax benefits; 10 percent to use as a primary residence in the future; and 4 percent because they had extra money to spend.
WASHINGTON, March 28, 2008 -
The combined total of vacation- and investment-home sales declined with the overall market in 2007, but still accounted for 33 percent of all existing- and new-home sales, which is close to historic norms, according to the National Association of Realtors®.
The market share of homes purchased for investment last year was 21 percent, down from 22 percent in 2006, while another 12 percent were vacation homes, compared with a 14 percent market share in 2006. The total share of second homes declined from 36 percent of transactions in 2006.
Lawrence Yun, NAR chief economist, said the findings suggest different cycles for each of the sectors over the past two years. “Investment-home sales declined sharply in 2006 as speculators disappeared, leaving the market to serious buyers, with the pattern continuing in 2007,” he said. “Vacation-home sales rose to a new record in 2006 because there was a pent-up demand from buyers who couldn’t find a property as a result of tight supplies in preceding years.”
The overall sales decline in 2007 resulted from a combination of factors. “Certainly, second homes are discretionary purchases and there is a natural tendency to pull back from big-ticket items in periods of uncertainty,” Yun said. “The other factor is the disruption in the mortgage market, with a significant tightening of credit during the second half of 2007. Some buyers simply adopted a wait-and-see attitude.”
Yun said lifestyle factors and strong demographics remain positive for the vacation home market. “Investment considerations are secondary for vacation-home buyers, so there is some dormant underlying demand,” he said. “A peak of population is moving through the prime years for buying recreational property. It is welcoming to see investment sales returning to pre-boom sales activity.”
There were no significant changes in investment housing types. Sixty-one percent of investment homes purchased in 2007 were detached single-family homes, 20 percent condos, 11 percent townhouses or rowhouses, and 8 percent other. Twenty-eight percent of vacation-home buyers paid cash for their property, as did 35 percent of investment buyers.
Sixty-five percent of vacation home buyers and 71 percent of investment home buyers purchased existing homes, while the remainder purchased new homes.
The typical vacation-home buyer in 2007 was 46 years old, had a median household income of $99,100, and purchased a property that was a median of 287 miles from their primary residence.
In listing the reasons for purchasing a vacation home, 84 percent of buyers wanted to use the home for vacation or as a family retreat; 30 percent to use as a primary residence in the future; 26 percent to diversify investments; 25 percent to rent to others; 16 percent for the tax benefits; 14 percent for use by a family member, friend or relative; and 6 percent because they had extra money to spend.
Last year, 19 percent of vacation homes were purchased in the Northeast, 16 percent in the Midwest, 41 percent in the South and 24 percent in the West. In terms of location, 30 percent of vacation homes were purchased in rural areas, 20 percent in resorts, 20 percent in a suburb and 14 percent in an urban area or central city.
When asked about the most important reasons for their purchase of an investment home, 51 percent said to provide rental income; 39 percent to diversify investments; 21 percent to use for vacations or as a family retreat; 16 percent for use by a family member, friend or relative; 11 percent for tax benefits; 10 percent to use as a primary residence in the future; and 4 percent because they had extra money to spend.
Existing Home Sales to Stabilize Before Upturn in Second Half of 2008
The following article is gleaned from "Existing-Home Sales to Stabilize Before Upturn in Second Half of 2008" by Walt Molony from Realtor.org
WASHINGTON, April 08, 2008 -
Little change is expected in existing-home sales over the next few months, before improving notably during the second half of the year, according to the latest forecast by the National Association of Realtors®.
Lawrence Yun, NAR chief economist, said the market will come into clearer focus this summer. “Existing home sales could start to show a sustained increase within a few months, unless there are some additional economic problems or excessive inflationary pressure,” he said. “We’re looking for essentially stable sales in the near term, before higher mortgage loan limits translate into more sales in high-cost markets. The wider access to affordable credit should increase sales activity notably this summer as pent-up demand begins to be met.”
The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in February, slipped 1.9 percent to 84.6 from an upwardly revised reading of 86.2 in January, and was 21.4 percent lower than the February 2007 index of 107.6. “The slip in pending home sales implies we’re not out of the woods yet, though an era of successive deep sales declines appears to be over,” Yun said.
Existing-home sales are likely to rise from an annual pace of 4.9 million in the first quarter to 5.9 million in the fourth quarter. With relatively weak activity in the first part of the year, existing-home sales for all of 2008 are forecast at 5.39 million, increasing 6.6 percent to 5.74 million in 2009.
“Exceptionally weak home sales related to jumbo loans problems will depress home prices in the first half of the year, but steady liquidity improvements in the conforming jumbo-loan market will help prices recover in the second half of the year,” Yun said. The aggregate existing-home price will probably ease by 1.4 percent to a median of $215,800 for all of 2008 before rising 3.7 percent to $223,800 next year.
“The economy will not grow in first half of the year,” Yun said. “However, the combination of recent fiscal stimulus enactment and the lagged impact of monetary policy will help jump start the economy in the second half.” Growth in the U.S. gross domestic product (GDP) is expected to be 1.4 percent in 2008 and 2.4 percent next year. The unemployment rate is forecast to average 5.4 percent this year and 5.6 percent in 2009.
WASHINGTON, April 08, 2008 -
Little change is expected in existing-home sales over the next few months, before improving notably during the second half of the year, according to the latest forecast by the National Association of Realtors®.
Lawrence Yun, NAR chief economist, said the market will come into clearer focus this summer. “Existing home sales could start to show a sustained increase within a few months, unless there are some additional economic problems or excessive inflationary pressure,” he said. “We’re looking for essentially stable sales in the near term, before higher mortgage loan limits translate into more sales in high-cost markets. The wider access to affordable credit should increase sales activity notably this summer as pent-up demand begins to be met.”
The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in February, slipped 1.9 percent to 84.6 from an upwardly revised reading of 86.2 in January, and was 21.4 percent lower than the February 2007 index of 107.6. “The slip in pending home sales implies we’re not out of the woods yet, though an era of successive deep sales declines appears to be over,” Yun said.
Existing-home sales are likely to rise from an annual pace of 4.9 million in the first quarter to 5.9 million in the fourth quarter. With relatively weak activity in the first part of the year, existing-home sales for all of 2008 are forecast at 5.39 million, increasing 6.6 percent to 5.74 million in 2009.
“Exceptionally weak home sales related to jumbo loans problems will depress home prices in the first half of the year, but steady liquidity improvements in the conforming jumbo-loan market will help prices recover in the second half of the year,” Yun said. The aggregate existing-home price will probably ease by 1.4 percent to a median of $215,800 for all of 2008 before rising 3.7 percent to $223,800 next year.
“The economy will not grow in first half of the year,” Yun said. “However, the combination of recent fiscal stimulus enactment and the lagged impact of monetary policy will help jump start the economy in the second half.” Growth in the U.S. gross domestic product (GDP) is expected to be 1.4 percent in 2008 and 2.4 percent next year. The unemployment rate is forecast to average 5.4 percent this year and 5.6 percent in 2009.
Tuesday, April 8, 2008
Bush: More Help on Way for Home Owners
The Bush administration released over the weekend a sweeping proposal to revise regulation of financial markets.The proposal, which will be outlined in detail April 1, will merge or eliminate some long-standing institutions like the Securities and Exchange Commission, and streamline others. The Federal Reserve would get a new role as the super cop in charge of financial-system stability. Some proposals are expected to directly address the current mortgage-risk problems. Treasury Secretary Henry Paulson, who authored the plan, says it wouldn't necessarily prevent future financial crises."I don't think any regulatory system is going to change that," Paulson says. "I think we rely very, very heavily on market discipline. Having said that, I still think we need a system that is more efficient and gives us a better chance, gives us more tools to try to solve problems."Rep. Barney Frank of Massachusetts, the Democrat who chairs the House Financial Services committee, says he found the plan encouraging. But he says that for the rest of this year, lawmakers need to devote all their energy to stabilizing the mortgage-market turmoil rather than determining broader fixes. "It's too close to an election and it's a very major thing," he says.
Source: The Wall Street Journal, Damian Paletta, Greg Ip and Michael M. Phillips (03/31/08)
Source: The Wall Street Journal, Damian Paletta, Greg Ip and Michael M. Phillips (03/31/08)
Tuesday, April 1, 2008
The Good News About Our Housing Market
The following article is from Tuesday April 1st, 2008 The Oregonian.
The Oregonian's headline asserted that "economists expect worse is to come" ("Portland home values take first dip," March 26). But the story includes Lake Oswego economist Bill Conerly saying that he isn't certain how much home values will drop because so much of the market is driven by buyers' perceptions.
What do you suppose sensational headlines and dour front-page predictions do to buyers' perceptions? The biggest challenge facing Portland's housing market is uncertainty among buyers.
Most buyers aren't housing experts. So before they make a decision they want to feel assured that it's a good time to buy a house. Unfortunately, in a competitive news environment, headlines sell papers, and bad news sells even more.
The truth about our housing market is that home values are still holding strong in the Portland area. The Oregonian acknowledges this (once you read past the headlines), as the same story ultimately admitted that the decline is "such a slight drop, economists consider values to be essentially flat" and that "[home] values are leveling off."
In historical perspective, interest rates are low right now, inventory is high, sub-prime credit problems and loan defaults are far fewer in Oregon, and our housing market is faring much better than the rest of the country. Plus, people still want to move here, creating continued demand.
Housing experts agree that the best time to buy property is not at its peak in value, but in slower cycles. People who bought two years ago did it on the sellers' terms. Today's homebuyers with good credit have ample access to home loans at great rates, and they're getting more home value for their money than they've been able to get in recent memory.
Is the nation's housing market hurting? In some areas, absolutely. But Portland's market still has quite a bit of good news in it, and The Oregonian's front-page headlines fail to give readers a solid understanding about what is really happening locally and what is available to buyers, whether they are looking for their first home or their next home.
If you've been thinking about home ownership, look around and ask an expert you trust. Peaks and dips are a natural part of every housing market everywhere. Waiting until the market takes off again, as it always does, just means you'll pay more for less home value.
The Oregonian's headline asserted that "economists expect worse is to come" ("Portland home values take first dip," March 26). But the story includes Lake Oswego economist Bill Conerly saying that he isn't certain how much home values will drop because so much of the market is driven by buyers' perceptions.
What do you suppose sensational headlines and dour front-page predictions do to buyers' perceptions? The biggest challenge facing Portland's housing market is uncertainty among buyers.
Most buyers aren't housing experts. So before they make a decision they want to feel assured that it's a good time to buy a house. Unfortunately, in a competitive news environment, headlines sell papers, and bad news sells even more.
The truth about our housing market is that home values are still holding strong in the Portland area. The Oregonian acknowledges this (once you read past the headlines), as the same story ultimately admitted that the decline is "such a slight drop, economists consider values to be essentially flat" and that "[home] values are leveling off."
In historical perspective, interest rates are low right now, inventory is high, sub-prime credit problems and loan defaults are far fewer in Oregon, and our housing market is faring much better than the rest of the country. Plus, people still want to move here, creating continued demand.
Housing experts agree that the best time to buy property is not at its peak in value, but in slower cycles. People who bought two years ago did it on the sellers' terms. Today's homebuyers with good credit have ample access to home loans at great rates, and they're getting more home value for their money than they've been able to get in recent memory.
Is the nation's housing market hurting? In some areas, absolutely. But Portland's market still has quite a bit of good news in it, and The Oregonian's front-page headlines fail to give readers a solid understanding about what is really happening locally and what is available to buyers, whether they are looking for their first home or their next home.
If you've been thinking about home ownership, look around and ask an expert you trust. Peaks and dips are a natural part of every housing market everywhere. Waiting until the market takes off again, as it always does, just means you'll pay more for less home value.
Thursday, March 27, 2008
Market Report for Lane County February 2008
According to this months market report, the number of listings grew a slight 0.2% when comparing February 2008 to February 2007.
To see the complete market report click on this link below: http://www.web2real.com/2008FebruraryMarketReport_Lane.pdf
To see the complete market report click on this link below: http://www.web2real.com/2008FebruraryMarketReport_Lane.pdf
Tuesday, March 25, 2008
5 Signs of a Housing Market Pickup
The following article is gleaned from Realtor magazine April 2008
New Jobs vs. New Housing
Historically, one new home owner is created fro every two new jobs, so if job creation continues in your area and builders are scaling back on production, it's just a matter of time before the supply and demand equation moves toward equilibrium.
Fewer Builder Concessions
Look for new-home builders in your area, as a sign of new confidence, to curtail their offerings of free mortgage payments, new toasters, designer landscaping, and other concessions they rolled out at the start of the downturn.
Months' Supply
The country had about a 10-month supply of housing at the end of Last year, but the figure you're interested in is the months' supply for your market. The historical nor is closer to six months.
Visitors per Listing
Look at the visitor trends tracked by your local MLS using today's computerized lock boxes. You can see not only how many visitors view the house buy how long they stay; more visitors staying longer suggests buyers are getting serious.
Rising apartment rents
Healthy rental rate increases show strong demand for rentals, but if such increases go on for too long or rates rise too steeply, renters will start inquiring about buying.
New Jobs vs. New Housing
Historically, one new home owner is created fro every two new jobs, so if job creation continues in your area and builders are scaling back on production, it's just a matter of time before the supply and demand equation moves toward equilibrium.
Fewer Builder Concessions
Look for new-home builders in your area, as a sign of new confidence, to curtail their offerings of free mortgage payments, new toasters, designer landscaping, and other concessions they rolled out at the start of the downturn.
Months' Supply
The country had about a 10-month supply of housing at the end of Last year, but the figure you're interested in is the months' supply for your market. The historical nor is closer to six months.
Visitors per Listing
Look at the visitor trends tracked by your local MLS using today's computerized lock boxes. You can see not only how many visitors view the house buy how long they stay; more visitors staying longer suggests buyers are getting serious.
Rising apartment rents
Healthy rental rate increases show strong demand for rentals, but if such increases go on for too long or rates rise too steeply, renters will start inquiring about buying.
Monday, March 24, 2008
Home sales still strong in some places
Daily Real Estate News March 21, 2008
Home Sales Still Strong in Key Areas The housing slowdown is not being felt in some of the most desirable areas of the country.For instance, in Ross, Calif., about 18 miles north of San Francisco, real estate practitioner Tracy McLaughlin says, “It’s supply constrained.”Other metropolitan areas that continued to post gains in home prices nearly every month are Seattle, Portland, Ore., and Charlotte, N.C. In Charlotte, home price growth has averaged a steady 7 percent over the last five years.In San Francisco, prices have declined slightly, but demand remains strong. "The market is very strong," says Richard Weil of Hill & Co. in San Francisco. "We don't have any inventory. It comes down to that."Weil says houses in the $3 million to $5 million range are taking a little longer to sell. But those shopping for homes priced at $6 million or more are largely unaffected by the market downturn.
Source: Reuters News, Jim Christie (03/18/20) and San Francisco Business Times, Mark Calvey (02/28/08)
As mentioned in the above article Portland and the general Oregon housing market is still strong. Increasing Fed cuts and lower house prices have brought out many buyers. Its still important to be aware of increasing foreclosures however with increasing federal programs and steady job market in Oregon foreclosure do not play a huge threat in this area.
Home Sales Still Strong in Key Areas The housing slowdown is not being felt in some of the most desirable areas of the country.For instance, in Ross, Calif., about 18 miles north of San Francisco, real estate practitioner Tracy McLaughlin says, “It’s supply constrained.”Other metropolitan areas that continued to post gains in home prices nearly every month are Seattle, Portland, Ore., and Charlotte, N.C. In Charlotte, home price growth has averaged a steady 7 percent over the last five years.In San Francisco, prices have declined slightly, but demand remains strong. "The market is very strong," says Richard Weil of Hill & Co. in San Francisco. "We don't have any inventory. It comes down to that."Weil says houses in the $3 million to $5 million range are taking a little longer to sell. But those shopping for homes priced at $6 million or more are largely unaffected by the market downturn.
Source: Reuters News, Jim Christie (03/18/20) and San Francisco Business Times, Mark Calvey (02/28/08)
As mentioned in the above article Portland and the general Oregon housing market is still strong. Increasing Fed cuts and lower house prices have brought out many buyers. Its still important to be aware of increasing foreclosures however with increasing federal programs and steady job market in Oregon foreclosure do not play a huge threat in this area.
Bringing out the Buyers
The following article is gleaned from "Bringing Out the Buyers" by Lawrence Yun, NAR Chief Economist from NAR (National Association of Realtors) online newsletter
The “second” reading of GDP growth in the 4th quarter of last year was unchanged – a basically flat 0.6 percent growth rate. As we go forward, economic growth in the first half of this year will be essentially non-existent. But there is some light at the end of what many pundits view as a dark tunnel. By the second half of the year, the economy will expand at slightly higher than 2 percent. The 2008 fiscal stimulus package contains over $100 billion in tax rebates. Those checks should be in taxpayers’ mailboxes in early summer. This tax cut is more than twice as high as a similar rebate passed in 2001. Past research suggests that consumers’ propensity to spend out of those tax rebates is about 40 cents to 50 cents on the dollar. That translates into additional consumer spending of $60 to $80 billion in the second half of the year. Make no mistake – this stimulus is the key factor in helping move the economy in the second half of the year.
Pent-Up Demand Rising sales will also bring down inventory and help strengthen home prices. The national median price of an existing home will fall in the first half of the year and then rise in the second half. For the year as a whole, the median price will have fallen by 1 percent – after having fallen 1.4 percent last year. Of course, there will be tremendous local market variations. The Northeast region is likely to be first region to show signs of stabilizing and then strengthening housing market conditions. The West region will likely trail behind.
The West region could, nonetheless, surprise us on the upside. What is unique about the current housing cycle is the pace of price declines in some local markets, which can significantly improve affordability conditions in a short time. Home prices are falling at or near a double-digit pace in California, Nevada, and Arizona. A sudden quick home price adjustment may be just the thing to quickly induce buyers back into these marketplaces. After all, as is the case in many parts of the country, jobs have been created in those Western states over the past two years even against the backdrop of a housing market slump, and hence, there exists significant pent-up demand.
New home sales will take much longer to turn around. That is simply due to the fact that there are far fewer new homes being built. Single-family housing starts have fallen by more than 50 percent in the past two years. Based on housing permits – generally a reliable indicator of upcoming housing starts – new home construction will fall further for the remainder of the year. New home inventory has been trending down but more cutbacks are needed. Therefore, homebuilders need to further bite the bullet and hold back construction. Loan modifications and other foreclosure mitigation programs are all well intended and good, but the best policy assistance in our current market condition is to unleash the pent-up demand. Any measures that violate the sanctity of private contracts – such as permitting judges to reset interest rates – should be avoided as those can greatly harm home sales by raising the cost of borrowing on new loan origination's. There is some discussion of a possible tax credit for first-time home buyers. Such a policy will be a great stabilizer for the housing market and the economy.
The “second” reading of GDP growth in the 4th quarter of last year was unchanged – a basically flat 0.6 percent growth rate. As we go forward, economic growth in the first half of this year will be essentially non-existent. But there is some light at the end of what many pundits view as a dark tunnel. By the second half of the year, the economy will expand at slightly higher than 2 percent. The 2008 fiscal stimulus package contains over $100 billion in tax rebates. Those checks should be in taxpayers’ mailboxes in early summer. This tax cut is more than twice as high as a similar rebate passed in 2001. Past research suggests that consumers’ propensity to spend out of those tax rebates is about 40 cents to 50 cents on the dollar. That translates into additional consumer spending of $60 to $80 billion in the second half of the year. Make no mistake – this stimulus is the key factor in helping move the economy in the second half of the year.
Pent-Up Demand Rising sales will also bring down inventory and help strengthen home prices. The national median price of an existing home will fall in the first half of the year and then rise in the second half. For the year as a whole, the median price will have fallen by 1 percent – after having fallen 1.4 percent last year. Of course, there will be tremendous local market variations. The Northeast region is likely to be first region to show signs of stabilizing and then strengthening housing market conditions. The West region will likely trail behind.
The West region could, nonetheless, surprise us on the upside. What is unique about the current housing cycle is the pace of price declines in some local markets, which can significantly improve affordability conditions in a short time. Home prices are falling at or near a double-digit pace in California, Nevada, and Arizona. A sudden quick home price adjustment may be just the thing to quickly induce buyers back into these marketplaces. After all, as is the case in many parts of the country, jobs have been created in those Western states over the past two years even against the backdrop of a housing market slump, and hence, there exists significant pent-up demand.
New home sales will take much longer to turn around. That is simply due to the fact that there are far fewer new homes being built. Single-family housing starts have fallen by more than 50 percent in the past two years. Based on housing permits – generally a reliable indicator of upcoming housing starts – new home construction will fall further for the remainder of the year. New home inventory has been trending down but more cutbacks are needed. Therefore, homebuilders need to further bite the bullet and hold back construction. Loan modifications and other foreclosure mitigation programs are all well intended and good, but the best policy assistance in our current market condition is to unleash the pent-up demand. Any measures that violate the sanctity of private contracts – such as permitting judges to reset interest rates – should be avoided as those can greatly harm home sales by raising the cost of borrowing on new loan origination's. There is some discussion of a possible tax credit for first-time home buyers. Such a policy will be a great stabilizer for the housing market and the economy.
Friday, March 21, 2008
10 upgrades to help sell your home
The following article is gleaned from from MSN.com from the real estate section
Preparing your home for the market is often less about aesthetics and more about fixing fundamental flaws. Here is 10 upgrades savvy buyers may be expecting.
1. Copper pipes
Pluming is usually out of sight and out of mind, but upgrading pipes should be a mojor priority for sellers of older homes. copper pipes are a big improvement of galvanized pipes, which corrode over time. Home era: pre-1960's
2. Electrical
Homes built before the 1970s often do not have enough electrical "oomph" to run all the electronic gadgets that are part of modern daily life. Today's homes typically have 200-amp service, so keep your home competitive by upgrading to at least 100 amp. Home era: Pre-1960s-1960s.
3. Furnace
Furnaces usually last from 12 to 14 years. Although this upgrade is relatively expensive, you'll need to bite the bullet if your unit is nearing or has passed its expiration date. People who bought a new home a dozen years ago or so are especially like to need this replacement. Home era: 1990s.
4. Kitchen Cabinets
Refurbishing old cabinets can quickly pull you kitchen into the 21st century. Replace dated cabinet hardware with stainless steel or nickel knobs, pull and hinges. Bring solid wood cabinets back to life by cleaning, sanding, staining, painting and replacing veneer. Home era: 1960s.
5. Kitchen Countertops
The saying "all real estate is local" is true right down to the kitchen coutnertops. In some neighborhoods, laminate is still acceptable. On others, you'll need to go with granite or corian. Check out your negihbors' kitchens to find out what is standard on your block. Home era 1980s.
6. Roof
Shrewd buyers are always concerned about the age of a home's roof. Have your roof inspected if it is more than 10yrs old. If it make the grade, include the inspection report in your buyers packet. If you must replace, cut costs by choosing 20 year material over 30 year material. Home era: 1990s.
7. Siding
A dated exterior can be fatal to your home's curbside appeal. Sometimes, a fresh coat of paint is all you need to cover a multitude of sins. In other cases, you may need to replace the siding altogether. Home era: 1970s.
8. Termite inspection
Termites are tiny insects that love to feast on wood, including timbers in homes. Homes in Southern states are particularly vulnerable to this pest. Termite inspections are relatively cheap and are especially important in older homes
9. Water Heater
Water heaters typically last about a decade before running out of steam. Installing a high-efficiency water heater can cut energy use by between 10% and 50%, making your home more attractive to cost-conscious buyers.
10. Windows
Single-pane windows have gone the way of lava lamps and beanbag chairs, so be sure to upgrade those aluminum slider windows. Not only will your home look more enticing, but you'll also trim heating and cooling bills by 25%. Home era: 1970s
Preparing your home for the market is often less about aesthetics and more about fixing fundamental flaws. Here is 10 upgrades savvy buyers may be expecting.
1. Copper pipes
Pluming is usually out of sight and out of mind, but upgrading pipes should be a mojor priority for sellers of older homes. copper pipes are a big improvement of galvanized pipes, which corrode over time. Home era: pre-1960's
2. Electrical
Homes built before the 1970s often do not have enough electrical "oomph" to run all the electronic gadgets that are part of modern daily life. Today's homes typically have 200-amp service, so keep your home competitive by upgrading to at least 100 amp. Home era: Pre-1960s-1960s.
3. Furnace
Furnaces usually last from 12 to 14 years. Although this upgrade is relatively expensive, you'll need to bite the bullet if your unit is nearing or has passed its expiration date. People who bought a new home a dozen years ago or so are especially like to need this replacement. Home era: 1990s.
4. Kitchen Cabinets
Refurbishing old cabinets can quickly pull you kitchen into the 21st century. Replace dated cabinet hardware with stainless steel or nickel knobs, pull and hinges. Bring solid wood cabinets back to life by cleaning, sanding, staining, painting and replacing veneer. Home era: 1960s.
5. Kitchen Countertops
The saying "all real estate is local" is true right down to the kitchen coutnertops. In some neighborhoods, laminate is still acceptable. On others, you'll need to go with granite or corian. Check out your negihbors' kitchens to find out what is standard on your block. Home era 1980s.
6. Roof
Shrewd buyers are always concerned about the age of a home's roof. Have your roof inspected if it is more than 10yrs old. If it make the grade, include the inspection report in your buyers packet. If you must replace, cut costs by choosing 20 year material over 30 year material. Home era: 1990s.
7. Siding
A dated exterior can be fatal to your home's curbside appeal. Sometimes, a fresh coat of paint is all you need to cover a multitude of sins. In other cases, you may need to replace the siding altogether. Home era: 1970s.
8. Termite inspection
Termites are tiny insects that love to feast on wood, including timbers in homes. Homes in Southern states are particularly vulnerable to this pest. Termite inspections are relatively cheap and are especially important in older homes
9. Water Heater
Water heaters typically last about a decade before running out of steam. Installing a high-efficiency water heater can cut energy use by between 10% and 50%, making your home more attractive to cost-conscious buyers.
10. Windows
Single-pane windows have gone the way of lava lamps and beanbag chairs, so be sure to upgrade those aluminum slider windows. Not only will your home look more enticing, but you'll also trim heating and cooling bills by 25%. Home era: 1970s
Wednesday, March 12, 2008
Vemma
Everyone knows they should take vitamins...
But who wants to choke down a handful of tablets every day? Introducing Vemma®, the cure for fatigue syndrome.Vemma blends the most recent science and nature's finest to form a complete and delicious once-a-day liquid supplement that provides you with everything you need and more to kick your health and energy levels into overdrive.*Developed by a physician with a background in both Eastern and Western medicine, Vemma unites the antioxidant-rich power of mangosteen — a fruit used for centuries by Asian health practitioners for its nutritional benefits — with rich plant-source minerals, organic glyconutrient-rich aloe vera and decaffeinated organic green tea along with a full spectrum of antioxidant vitamins to create the most powerful liquid antioxidant nutrition program anywhere!*
The Vemma Nutrition Program™ consists of Essential Minerals® and Mangosteen Plus™. We believe so strongly in this combination that we offer a 100% money-back, risk-free, empty-bottle guarantee. While there are many juice products on the market to choose from today, most offer very little in terms of critical vitamins and minerals. So why take a juice product and a vitamin/mineral supplement? With Vemma, you get it all!
Remember...if it doesn't say Vemma, it's just juice.
But who wants to choke down a handful of tablets every day? Introducing Vemma®, the cure for fatigue syndrome.Vemma blends the most recent science and nature's finest to form a complete and delicious once-a-day liquid supplement that provides you with everything you need and more to kick your health and energy levels into overdrive.*Developed by a physician with a background in both Eastern and Western medicine, Vemma unites the antioxidant-rich power of mangosteen — a fruit used for centuries by Asian health practitioners for its nutritional benefits — with rich plant-source minerals, organic glyconutrient-rich aloe vera and decaffeinated organic green tea along with a full spectrum of antioxidant vitamins to create the most powerful liquid antioxidant nutrition program anywhere!*
The Vemma Nutrition Program™ consists of Essential Minerals® and Mangosteen Plus™. We believe so strongly in this combination that we offer a 100% money-back, risk-free, empty-bottle guarantee. While there are many juice products on the market to choose from today, most offer very little in terms of critical vitamins and minerals. So why take a juice product and a vitamin/mineral supplement? With Vemma, you get it all!
Remember...if it doesn't say Vemma, it's just juice.
Feel free to contact us for more information!
541-954-7838
FHA changes loan limits
Information given to us by Fred Chamberlin:
HUD has announced new FHA loan limits nationwide. Lane County's new loan limit is $343,750, almost $100,000 over the previous limit.
This program allows purchase (and refinances) with liberal underwriting and limited down payments, helping people that were being put into subprime loans in the past. This change is currently temporary until the end of the year. HUD could extend it or make it permanent prior to that, but right now it is temporary.
HUD has announced new FHA loan limits nationwide. Lane County's new loan limit is $343,750, almost $100,000 over the previous limit.
This program allows purchase (and refinances) with liberal underwriting and limited down payments, helping people that were being put into subprime loans in the past. This change is currently temporary until the end of the year. HUD could extend it or make it permanent prior to that, but right now it is temporary.
Greeen: Easy Does It
The following article is gleaned from "Green: Easy Does It" by Maggie Sierger from Realtor Magazine Feb 2008.
About 21% of US greenhouse gas emissions are generated from household energy use, according to the US Energy Information Administration. A house that consumes less energy reduces greenhouse gases because less fossil fuel is required to operate it. Energy and water savings mean financial savings too. Here are some simple greening options.
Improve Energy Efficiency: replaces incandescent bulbs with compact fluorescent bulbs. These produce the same amount of light yet require 75% less energy, produce 75% less heat and last 10 times longer.
Reduce Drafts: Plug leaks. Caulk and add weather-stripping to windows and doors to stop heat and air conditioning losses. Leaky air ducts can decrease energy efficiency by as much as 20%.
Appliance Excesses: Unplug chargers, power adapters, and appliances when they're not in use. about 75% of electricity used to power electronics such as VCR's televisions, stereos, computers and kitchen appliances is consumed while the products are turned off.
Avoid Super-Hot Water: Lower water heater temperature. the average tank style water heater uses about 5% less energy for every 10 degrees Fahrenheit you reduce the temperature.
About 21% of US greenhouse gas emissions are generated from household energy use, according to the US Energy Information Administration. A house that consumes less energy reduces greenhouse gases because less fossil fuel is required to operate it. Energy and water savings mean financial savings too. Here are some simple greening options.
Improve Energy Efficiency: replaces incandescent bulbs with compact fluorescent bulbs. These produce the same amount of light yet require 75% less energy, produce 75% less heat and last 10 times longer.
Reduce Drafts: Plug leaks. Caulk and add weather-stripping to windows and doors to stop heat and air conditioning losses. Leaky air ducts can decrease energy efficiency by as much as 20%.
Appliance Excesses: Unplug chargers, power adapters, and appliances when they're not in use. about 75% of electricity used to power electronics such as VCR's televisions, stereos, computers and kitchen appliances is consumed while the products are turned off.
Avoid Super-Hot Water: Lower water heater temperature. the average tank style water heater uses about 5% less energy for every 10 degrees Fahrenheit you reduce the temperature.
Foreclosure 'crisis' is overblown
The following article is gleaned from "foreclosure 'crisis' is overblown" by Scot Burns of MSN Money.
Sure there are pockets of pain around the US, but it's not as if most Americans are losing their homes. More than 99% of homes aren't in foreclosure.
A recent list of year-end mortgage foreclosure rates in 100 top metropolitan areas drew a lot of attention. Released by Realtytrac, a company that compiles date on home foreclosures, the list showed the number of foreclosure filings in each metro are, the percentage of home being foreclosed and the percentage change from the previous year.
Though the report had some dismal news-- such as the nearly 4.9% foreclosure rate in Stockton, Calif., area-- a close look at the data also provides some reassuring information. The foreclosure crisis is a regional problem, not a systemic one.
Though the national rate of foreclosure increased by a whopping 79% between December 2006 and December 2007, the rate was still only 1.033%. Because about 30% of all homes are owned mortgage free, this means that for all the noise about a crisis, only seven-tenths of 1% of all homes were in foreclosure.
In the top 100 housing markets, the average foreclosure rate was somewhat higher -- 1.38%-- and it was up 78% over the previous year. But if you rank-ordered the list of the top 100 areas, only 34 had foreclosure rates above the group average. Fifty-one areas had rates of 1% or less. Foreclosure rates actually fell in 14 of the 100 areas.
Owning your own home is an idea so popular that it's known as the American dream. But as prices fall and foreclosures rise, for many its become a nightmare instead.
The real economic problem, for most people, isn't the price-spike states. It's the deflation states.
Sure there are pockets of pain around the US, but it's not as if most Americans are losing their homes. More than 99% of homes aren't in foreclosure.
A recent list of year-end mortgage foreclosure rates in 100 top metropolitan areas drew a lot of attention. Released by Realtytrac, a company that compiles date on home foreclosures, the list showed the number of foreclosure filings in each metro are, the percentage of home being foreclosed and the percentage change from the previous year.
Though the report had some dismal news-- such as the nearly 4.9% foreclosure rate in Stockton, Calif., area-- a close look at the data also provides some reassuring information. The foreclosure crisis is a regional problem, not a systemic one.
Though the national rate of foreclosure increased by a whopping 79% between December 2006 and December 2007, the rate was still only 1.033%. Because about 30% of all homes are owned mortgage free, this means that for all the noise about a crisis, only seven-tenths of 1% of all homes were in foreclosure.
In the top 100 housing markets, the average foreclosure rate was somewhat higher -- 1.38%-- and it was up 78% over the previous year. But if you rank-ordered the list of the top 100 areas, only 34 had foreclosure rates above the group average. Fifty-one areas had rates of 1% or less. Foreclosure rates actually fell in 14 of the 100 areas.
Owning your own home is an idea so popular that it's known as the American dream. But as prices fall and foreclosures rise, for many its become a nightmare instead.
The real economic problem, for most people, isn't the price-spike states. It's the deflation states.
Monday, February 25, 2008
Maintenance Must-dos
The following article has been gleaned from "Maintenance Must-dos" by John N. Frank
Having a maintenance list for the inside and outside makes keeping up a lot easier. This list will help buyers especially first-time buyers.
Inside tasks:
Change your furnace filters monthly.
Drain water heater at least once a year.
Clean coils of base board heating units.
Check your circuit breakers.
Watch out for drips under sinks or tubs.
Replace Regularly: water heaters, furnaces, roofs, and other key components of your home.
Outside tasks:
Keept the wet out. Check each season for signs of water damage to your home.
Get to the bottom of things. Check your home's foundation for cracs or gaps that could let water or varmints in.
Look up. Visually inspect chimneys each year for signs of loose mortar or loose or missing bricks.
Having a maintenance list for the inside and outside makes keeping up a lot easier. This list will help buyers especially first-time buyers.
Inside tasks:
Change your furnace filters monthly.
Drain water heater at least once a year.
Clean coils of base board heating units.
Check your circuit breakers.
Watch out for drips under sinks or tubs.
Replace Regularly: water heaters, furnaces, roofs, and other key components of your home.
Outside tasks:
Keept the wet out. Check each season for signs of water damage to your home.
Get to the bottom of things. Check your home's foundation for cracs or gaps that could let water or varmints in.
Look up. Visually inspect chimneys each year for signs of loose mortar or loose or missing bricks.
Monday, February 11, 2008
A good time to buy Real Estate
“It’s a good time to buy real estate.” That’s the message Realogy, the nation’s largest real estate franchisor, wants agents to broadcast to buyers across the country.
The company is spreading the word through a national advertising campaign in USA Today, which began this past Wednesday and will run again on Feb. 13th and 20th. This is Realogy’s second national push in as many years to take a strong stance against the barrage of negative press directed toward the real estate industry over what is reported as the declining condition of the housing market. The ad lets consumers know that recently-cut mortgage rates and a wealth of available properties make today a “great time” to purchase a home.
The timing of the ad, titled, “Think You Can’t Get a Home Loan? Well Think Again. You May Be Pleasantly Surprised.,” aligns with the recent Federal Reserve interest rate cuts, and lets consumers know that: money is available for those who meet basic requirements; affordability has improved; rates are attractive; and inventory is plentiful.
In an exclusive interview with Alex Perriello, president & CEO of the Realogy Franchise Group, he said the ads aim to educate consumers who might be at the positive tipping point on buying a home.
“We want to educate the consumer with relevant facts about today’s real estate market,” he said. “There are a lot of positives, and we feel that reinforcing the positives will help clarify things for consumers who are on the fence what to do in today’s market. I travel a lot to real estate offices and I hear from a lot of our agents that buyers are out there, but that they are not sure what to do. We felt that talking openly about the opportunities may help people to see that it is a good time to get into the market, and we believe it is.”
Perriello said there are three common misconceptions consumers have about the real estate market right now :people can’t get a loan: affordability is out of reach: and consumers should wait for rates to go lower.
“We want to set the record straight on that. If you meet very basic requirements - you have a job for the past two years, you can make the payments, you plan to live in the property and you have a credit score that suggests you are responsible, you can get a mortgage. These are all reasonable requirements.” He added that affordability today is better than it has been in almost three years, and that interest rates are now at 40-year historic lows, so people shouldn’t wait to buy.
In the national scope of the economy, Perriello said that the Federal Reserve is doing a good job of doing what it can to avert a recession, but stopped short on any market predictions for the remainder of 2008.
The information above was gleaned from the article "Get the word out: It's a Good Time to Buy" by Beth McGuire from RIS Media.
The company is spreading the word through a national advertising campaign in USA Today, which began this past Wednesday and will run again on Feb. 13th and 20th. This is Realogy’s second national push in as many years to take a strong stance against the barrage of negative press directed toward the real estate industry over what is reported as the declining condition of the housing market. The ad lets consumers know that recently-cut mortgage rates and a wealth of available properties make today a “great time” to purchase a home.
The timing of the ad, titled, “Think You Can’t Get a Home Loan? Well Think Again. You May Be Pleasantly Surprised.,” aligns with the recent Federal Reserve interest rate cuts, and lets consumers know that: money is available for those who meet basic requirements; affordability has improved; rates are attractive; and inventory is plentiful.
In an exclusive interview with Alex Perriello, president & CEO of the Realogy Franchise Group, he said the ads aim to educate consumers who might be at the positive tipping point on buying a home.
“We want to educate the consumer with relevant facts about today’s real estate market,” he said. “There are a lot of positives, and we feel that reinforcing the positives will help clarify things for consumers who are on the fence what to do in today’s market. I travel a lot to real estate offices and I hear from a lot of our agents that buyers are out there, but that they are not sure what to do. We felt that talking openly about the opportunities may help people to see that it is a good time to get into the market, and we believe it is.”
Perriello said there are three common misconceptions consumers have about the real estate market right now :people can’t get a loan: affordability is out of reach: and consumers should wait for rates to go lower.
“We want to set the record straight on that. If you meet very basic requirements - you have a job for the past two years, you can make the payments, you plan to live in the property and you have a credit score that suggests you are responsible, you can get a mortgage. These are all reasonable requirements.” He added that affordability today is better than it has been in almost three years, and that interest rates are now at 40-year historic lows, so people shouldn’t wait to buy.
In the national scope of the economy, Perriello said that the Federal Reserve is doing a good job of doing what it can to avert a recession, but stopped short on any market predictions for the remainder of 2008.
The information above was gleaned from the article "Get the word out: It's a Good Time to Buy" by Beth McGuire from RIS Media.
Hope Now Alliance
You've probably heard critics on Capitol Hill complain that too many financially-stressed home owners aren't getting help from lenders to modify their loans, lower their rates or freeze them and keep them out of fore closure.
But late last week the "Hope Now Alliance" (a Washington based group convened by the treasury department and composed of the country's largest mortage servicers) fired back at the critics and said thy just down't have the facts.
Since its founding last summer the Alliance said its members helped 869,000 home owners stay out of foreclosure during the final six months of 2007, either through modifications of loan terms or through repayment plans that reschedule borrowers' debts.
Hope Now's members service 33.3 million home loans equalling about 2/3 of all mortgages outstanding in the US. Roughly 21% of borrowers whose mortgages were originated at prime rates were given some form of loan modification to help them keep their homes. Among subprime borrowers the modification rate was higher at nearly 28%.
Talk to the serivicer if you're having trouble making payments. Answer the phone call, letter or email from the servicer's staff seeking to discuss your situation.
Remember: Lenders are motivated like they haven't been for decades to work things out with you, including adjusting your payments or freezing the rate as long as you're open to trying to solve the problem.
The information above is gleaned from "Washington Report: Hope Now Alliance" by Kenneth R. Harney of Realty Times
But late last week the "Hope Now Alliance" (a Washington based group convened by the treasury department and composed of the country's largest mortage servicers) fired back at the critics and said thy just down't have the facts.
Since its founding last summer the Alliance said its members helped 869,000 home owners stay out of foreclosure during the final six months of 2007, either through modifications of loan terms or through repayment plans that reschedule borrowers' debts.
Hope Now's members service 33.3 million home loans equalling about 2/3 of all mortgages outstanding in the US. Roughly 21% of borrowers whose mortgages were originated at prime rates were given some form of loan modification to help them keep their homes. Among subprime borrowers the modification rate was higher at nearly 28%.
Talk to the serivicer if you're having trouble making payments. Answer the phone call, letter or email from the servicer's staff seeking to discuss your situation.
Remember: Lenders are motivated like they haven't been for decades to work things out with you, including adjusting your payments or freezing the rate as long as you're open to trying to solve the problem.
The information above is gleaned from "Washington Report: Hope Now Alliance" by Kenneth R. Harney of Realty Times
Monday, February 4, 2008
The "REAL" News
As President of the National Association of Realtors, Richard F. Gaylord, gave his following advice regarding the real estate market in his article "We're in this 'All Together". (The following is article is gleaned from information given in that article)
Its important to first realize that this business is cyclical, but for those who have forgotten or dont realize that fact here is his advice:
Real estate is a long-term investment. The recent boom created the misconception that real estate is a high yield, short term investment when in reality it is not.
There's no such thing as a bad market. Regardless of what the market is reflecting, there are always pleny of peole ready to buy and sell. With favorable interest rates and more options buyers can get a good deal.
Economic indicators remain good. Low interest rates, employment gains, infation is under control, and gross domestic product growing are all indicators for healthy sales this year.
Bad new should be put in perspective. The news tends to focus on foreclosure spikes and not analyzed in context. The problem is predominantly with sub-prime loans, which are held by less than 10% of people. Most of these loans will never go into foreclosure.
Real estate is a local business. Each area is affected differentlygor a free price analysis visit REALTOR.org. The reports will help you understand whats really going on in your marketplace.
Its important to first realize that this business is cyclical, but for those who have forgotten or dont realize that fact here is his advice:
Real estate is a long-term investment. The recent boom created the misconception that real estate is a high yield, short term investment when in reality it is not.
There's no such thing as a bad market. Regardless of what the market is reflecting, there are always pleny of peole ready to buy and sell. With favorable interest rates and more options buyers can get a good deal.
Economic indicators remain good. Low interest rates, employment gains, infation is under control, and gross domestic product growing are all indicators for healthy sales this year.
Bad new should be put in perspective. The news tends to focus on foreclosure spikes and not analyzed in context. The problem is predominantly with sub-prime loans, which are held by less than 10% of people. Most of these loans will never go into foreclosure.
Real estate is a local business. Each area is affected differentlygor a free price analysis visit REALTOR.org. The reports will help you understand whats really going on in your marketplace.
Friday, January 25, 2008
"Local Housing Market Stable"
Some of Lane County's houing sales figures for last year look pretty nasty- pending sales down 14.8% , closed deals down 11.7%, homes sitting on the market an average of 91 days- but other countywide members compiled by the Regional Multiple Listing Service in Portland offset some of the doom and gloom.
Total housing sales volume for the apst four years, for example, remainls fairly steady, at $1.1 billion last year, $1.2 billion each in 1006 and 2005 and $0.94 billion in 2004. Overall, home sales prices in Lane County have eased rather than plummeted, with the median price increasing by 4.6% last year to $235,000, although lagging far behind the 15.1 percent rise in the 2006 and the astronomical 20.7% in the hotsuper 2005 housing market.
So while things aren't not as good as they were, they're not as bad as they might have been.
"Lane County's real estate market has held up well compared with many areas, but like many other parts of the country, we have suffered some setbacks, some price erosion, in some areas," said Randal Whipple (of Prudential Real Estate Professionals in Eugene). "We didnt have the 75% to 100% run-up in prices that some places like Florida, California, and Nevada had, so our adjustments haven't been as severe".
A look at neighborhood sales statistics compiled by the multiple listing service shows that southwest Eugene led the county in new home listings follewed by the Betherl-Danebo section of Eugene and the south Lane County area, including Cottage Grove, Creswell and Dorena.
All the numbers aside the housing market continues to be good for people who aren't looking for a steal on either the buying or selling side, Randal Whipple said.
"There's a much broader selection of homes no for buyers, the interset rates are v ery favorable, and sellers are becoming much more realistic about prices."
The thoughts above were gleaned from "Local housing market stable" by Randi Bjornstad of The Register Guard.
Total housing sales volume for the apst four years, for example, remainls fairly steady, at $1.1 billion last year, $1.2 billion each in 1006 and 2005 and $0.94 billion in 2004. Overall, home sales prices in Lane County have eased rather than plummeted, with the median price increasing by 4.6% last year to $235,000, although lagging far behind the 15.1 percent rise in the 2006 and the astronomical 20.7% in the hotsuper 2005 housing market.
So while things aren't not as good as they were, they're not as bad as they might have been.
"Lane County's real estate market has held up well compared with many areas, but like many other parts of the country, we have suffered some setbacks, some price erosion, in some areas," said Randal Whipple (of Prudential Real Estate Professionals in Eugene). "We didnt have the 75% to 100% run-up in prices that some places like Florida, California, and Nevada had, so our adjustments haven't been as severe".
A look at neighborhood sales statistics compiled by the multiple listing service shows that southwest Eugene led the county in new home listings follewed by the Betherl-Danebo section of Eugene and the south Lane County area, including Cottage Grove, Creswell and Dorena.
All the numbers aside the housing market continues to be good for people who aren't looking for a steal on either the buying or selling side, Randal Whipple said.
"There's a much broader selection of homes no for buyers, the interset rates are v ery favorable, and sellers are becoming much more realistic about prices."
The thoughts above were gleaned from "Local housing market stable" by Randi Bjornstad of The Register Guard.
Monday, January 21, 2008
NAVIGATING A CHANGING MARKET
“Dead reckoning” is an old navigation method to find one’s present bearings by projecting from a known past position. What is our dead reckoning in the real estate industry at the end of 2007? Nationally, sales were down this year from last year by more than 10 percent, and existing home prices are expected to slip by 1.3 percent by the end of 2007 with a median price of $219,000. For new homes, the median price is expected to drop 2.1 percent to $241,400 this year.
How is Oregon fairing? Oregon thus far has escaped much of the turmoil from the sub-prime loan crisis, compared to other states. In addition, more people are employed in Oregon than ever before, according to the U.S. Department of Labor, Bureau of Statistics. Wages and productivity are trending up in the state and unemployment is trending down. Oregon startups raised more venture capital in 2007 than the state attracted in any of the prior five full years. Strong job and population growth fuel demand for houses and Oregon is one of the fastest growing states, according to the U.S. Census Bureau.
Thoughts above were gleaned from "Navigating a Changing Market" by Sherron Lumley of Oregon Realtor Magazine Winter 2007
How is Oregon fairing? Oregon thus far has escaped much of the turmoil from the sub-prime loan crisis, compared to other states. In addition, more people are employed in Oregon than ever before, according to the U.S. Department of Labor, Bureau of Statistics. Wages and productivity are trending up in the state and unemployment is trending down. Oregon startups raised more venture capital in 2007 than the state attracted in any of the prior five full years. Strong job and population growth fuel demand for houses and Oregon is one of the fastest growing states, according to the U.S. Census Bureau.
Thoughts above were gleaned from "Navigating a Changing Market" by Sherron Lumley of Oregon Realtor Magazine Winter 2007
U.S. ECONOMIC OUTLOOK
The critical question to be addressed in coming months is whether or not the U.S. economy will dip into recession. We suggest about a 30% chance of recession over the next year, with a stronger expectation that a “growth recession” or sluggish growth is more likely.
The nation’s unemployment rate averaged 4.6% over the past 20 months, below the averages of the ‘70s, the ‘80s, and the ‘90s. Economic weakness could see the rate approach 5.0% in coming months. The longer-term issue of tighter labor availability – especially for skilled workers – will challenge businesses of all shapes and sizes.
Most forecasts still see consumer inflation this year near 2.5%-2.8%, with slightly lower inflation pressures in 2008. The Consumer Price Index rose 2.5% last year, 3.4% in 2005, and 3.3% in 2004. Powerful competition in nearly all industries helps keep inflation low.
Surging home prices on both coasts and in the Southwest during 2002 to 2006 gave way to a buyers’ market during the past year. The simple reason? The average U.S. home value rose 50.76% between June 30, 2002 and June 30, 2007. Florida?...up 95.3%. Arizona?...up 90.78%. California?...up 90.15%/ Nevada?...up 89.47% (source:OFHEO). Homeowners and “investors” simply become too greedy, requiring the current painful downward adjustment in many markets. We expect greater home price strength in the nation’s interior as relative values (compared to the coasts) are attractive.
The thoughts above were gleaned from "U.S. Economic Outlook" of Liberty Views
The nation’s unemployment rate averaged 4.6% over the past 20 months, below the averages of the ‘70s, the ‘80s, and the ‘90s. Economic weakness could see the rate approach 5.0% in coming months. The longer-term issue of tighter labor availability – especially for skilled workers – will challenge businesses of all shapes and sizes.
Most forecasts still see consumer inflation this year near 2.5%-2.8%, with slightly lower inflation pressures in 2008. The Consumer Price Index rose 2.5% last year, 3.4% in 2005, and 3.3% in 2004. Powerful competition in nearly all industries helps keep inflation low.
Surging home prices on both coasts and in the Southwest during 2002 to 2006 gave way to a buyers’ market during the past year. The simple reason? The average U.S. home value rose 50.76% between June 30, 2002 and June 30, 2007. Florida?...up 95.3%. Arizona?...up 90.78%. California?...up 90.15%/ Nevada?...up 89.47% (source:OFHEO). Homeowners and “investors” simply become too greedy, requiring the current painful downward adjustment in many markets. We expect greater home price strength in the nation’s interior as relative values (compared to the coasts) are attractive.
The thoughts above were gleaned from "U.S. Economic Outlook" of Liberty Views
Oregon Economic Outlook
Oregon's economy has continued to slow in recent months tied to soft US construction activity, weakness in manufacturing and the local impact of domestic and global credit anxiety. The Oregon economy added 14,000 net new jobs during the past 12 month period, a 0.8% growth pace. Manufacturing weakness continues, with a net loss of 6,900 jobs, primarily in wood products. The construction sector added 1,100 net new jobs, while natural resources and mining lost 800 jobs. The Oregon service providing sector has fared better, with the net addition of 20,600 (up to 1.5%).
The Office of Federal Housing Enterprise Oversight ranked the average Oregon existing home seventh in the nation in the 12-month period ending in June 30th 2007. The average US home value rose 50.76% during the five year period ending on June 30th 2007. In the past year the Portland-Vancouver-Beaverton home value rose about 8.06% during the past year with a 68.83% gain over 5 years. On the other hand the Eugene-Springfield home value rose 9.15% and a 70.72% five year rise.
The "cost of living" estimate of http://www.economy.com/ for Portland was 101% of the U.S. average, with Eugene at 93%
The thoughts above were gleaned from "Oregon Economic Outlook" of Liberty Views
The Office of Federal Housing Enterprise Oversight ranked the average Oregon existing home seventh in the nation in the 12-month period ending in June 30th 2007. The average US home value rose 50.76% during the five year period ending on June 30th 2007. In the past year the Portland-Vancouver-Beaverton home value rose about 8.06% during the past year with a 68.83% gain over 5 years. On the other hand the Eugene-Springfield home value rose 9.15% and a 70.72% five year rise.
The "cost of living" estimate of http://www.economy.com/ for Portland was 101% of the U.S. average, with Eugene at 93%
The thoughts above were gleaned from "Oregon Economic Outlook" of Liberty Views
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