The Real Scoop On Real Estate

HUD Cuts A Good Program

2011-12-01T09:31:00.000-08:00

HUD Cuts A Good Program
This has some good information and a need to get out there and prospect.

Smart Meters?

2011-10-31T12:11:00.001-07:00

Check out this website for an interesting youTube video on Smart Meters.
http://goldsilver.com/video/smart-meters/

Simple Fix Could Open Refi Floodgates

2011-10-14T09:59:00.000-07:00

Simple Fix Could Open Refi Floodgates

MBA Asks FHA to Open 203k Loans to Investors

2011-09-19T10:00:00.000-07:00

This seems to be a good idea.

MBA Asks FHA to Open 203k Loans to Investors

Mx Site

2011-09-19T09:00:00.000-07:00

Mx Site

2011-09-19T08:58:00.000-07:00

Mx Site

Mortgage Interest Deduction on the Chopping Block!

2011-07-25T08:08:00.000-07:00

Mortgage Interest Deduction on the Chopping Block!

The 2012 Housing Forecast Looks….

2011-07-19T08:25:00.000-07:00

The 2012 Housing Forecast Looks….

Steve and Sally Jo Wickham Move to Key Realty Group, Inc

2011-07-17T21:19:00.000-07:00

Steve and I have recently made the move to a new Local Company, Key Realty Group, Inc.

We have worked with the many of the individual Brokers and owner of Key Realty Group, Inc. for many years at Coldwell Banker and apprciate the values and integrity of these people.

We also love the beautiful new office located at 627 Country Club Road next to Evergreen Land Title Company in Eugene.

We think that Key Realty Group, Inc. will give our clients better exposure on the internet nationally and locally. Check out the company website: keyrealtygroupinc.com

We would love your feed back about our move.

Farm Properties as an Investment

2011-07-17T20:41:00.000-07:00

We have noticed a recent upswing in Farm Property interest. This may be due to the articles in Time magazine: Time Magazine Article Become a Farmer to Make More than a Banker and our own Register Guard: Down on the farm, investors see potential. Both articles are regarding the profitability of investing in Farms.

Steve and I have recently listed a beautiful farm near Sweet Home that has 75 acres of Cattle, Berry fields, small Vineyard, Hay, and 3/4 a mile of Calapooia River frontage. Check it out!

We would love to have feed back from our readers about the Farm articles and our farm that we have listed.

Steve and Sally Jo Wickham's Real Estate Listings

2011-07-17T20:09:00.000-07:00

Check out all our listings!

Map these properties Powered by RealBird.com

The Next Big Buyer Incentive

2010-02-13T15:04:00.000-08:00

It is still a great time to buy a home for the first time home buyer but a lot of people aren't aware of the government funding money out there available for not only first time buyers but for buyers that are buying bank owned homes.It is called the Neighborhood Stabilization Program or NSP. It is an effort to take certain areas that have many bank owned forclosed homes and put owner occupied buyers into them.There are certain requirements of course for buyers and the area maps of the homes for sale are on the website that I will give you at the end of this article.This program has been around since 2008 but has not got much publication about it. I went to my lender and told him about it and he looked into it and now we are working with a buyer out of Klamath Falls that is purchasing a home using the funding.It is a second, fixed rate mortgage that does't have any interest and does't have to be paid back until you sell the home or refinance the home. The loan amount can be up to $50,000 depending on the area you are in. The homes have to be in a non USDA area, meaning homes in cities, not rual property.For more information or help in finding a mortgage lender who is familiar with this program, email me at steve@web2real.com or go to this link http://www.oregon.gov/OHCS/DO_HERA_Neighborhood_Stabilization.shtml

$8,000 Tax Credit for Home Buyers | Economic Stimulus Plan Is Law

2009-03-12T10:50:00.000-07:00

Highlights from the new $8000 Tax Credit for Home Buyers include;

Available only to first-time home buyers
The tax credit is not a loan and does not require repayment*
*If the home is sold within 3-years, the $8,000 tax credit must be re-paid
The tax credit reduces the home buyer’s tax liability; if the buyer’s liability is less than $8,000, the remaining credit will be issued as a check
Home purchase must be for a primary residence
The credit is available on home purchases between January 1, 2009 and December 1, 2009
If you are single and make $75,000 or more, or are married and make $150,000 or more, you do not qualify for the tax credit
The Buyer is not eligible for this tax credit if the Seller is a relative of the Buyer

Check out the "New Deal" for First Time Homebuyers Tax Credit of $8000 and other tax credits within this stimulus package.

March Real Estate Update and more!

2009-03-09T12:40:00.000-07:00

March Real Estate Update

Details Of The Recovery and Reinvestment Act of 2009

Should You Use an IRA LLC or Solo 401(K)
To Invest in Real Estate?

Real Estate Update

2009-02-13T15:33:00.000-08:00

Real Estate Outlook: What's in store for 2009?

Real Estate Newsletter for February

2009-02-11T11:30:00.000-08:00

Rates holding steady, Current Mortgage Rates, Home Buyer Tax Credit and more in our February 2009 News Letter. Click here to read

December 2009 Market Report

2009-02-09T13:14:00.000-08:00

Click here to View 2008 Market Summary and December 2008 Market Highlights

Click here to View December 2008 Lane County Market Report by Area

This Month In Real Estate video

2008-12-18T13:17:00.000-08:00

This is an informative video we think you should check out.

A little canned, yes, but still good information.

Monthly Newsletter

2008-11-05T13:13:00.000-08:00

Check it out here!

Interest Free Loans!!!

2008-11-05T12:26:00.000-08:00

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!

September 2008 Market Report

2008-10-15T15:23:00.000-07:00

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

Attention! Calling all first-time home-buyers!

2008-10-02T15:42:00.000-07:00

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!

August 2008 Market Report

2008-09-16T15:40:00.000-07:00

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

July 2008 Market Report

2008-09-10T13:43:00.001-07:00

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

Guest Blog from Terry Johnson of OMT Mortgage

2008-09-10T13:10:00.000-07:00

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)!

2008-09-10T10:55:00.000-07:00

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.

June 6th Rates

2008-06-06T13:00:00.000-07:00

High Credit Score = Low Mortgage Rate

Credit 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

2008-06-06T12:34:00.000-07:00

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.

April Market Report

2008-05-22T12:37:00.000-07:00

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

2008-05-22T12:25:00.000-07:00

Please visit the following link to view the May Realty Times news letter.

http://realtytimes.com/nlnews.htm?open&Vol=c&ID=sallyjostevewickham

Real Estate Outlook: State of the Economy

2008-05-09T13:16:00.000-07:00

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

Market Predictions for the State of Oregon

2008-05-09T13:05:00.000-07:00

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.

Market Report March 2008

2008-05-02T13:19:00.000-07:00

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.

Second-Home Sales Accounted For One-Third of Transactions in 2007

2008-04-17T12:34:00.000-07:00

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.

Existing Home Sales to Stabilize Before Upturn in Second Half of 2008

2008-04-17T12:25:00.000-07:00

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.

Bush: More Help on Way for Home Owners

2008-04-08T12:01:00.000-07:00

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)

The Good News About Our Housing Market

2008-04-01T12:02:00.000-07:00

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.

Market Report for Lane County February 2008

2008-03-27T12:12:00.000-07:00

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

5 Signs of a Housing Market Pickup

2008-03-25T12:00:00.000-07:00

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.

Home sales still strong in some places

2008-03-24T12:51:00.000-07:00

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.

Bringing out the Buyers

2008-03-24T12:14:00.000-07:00

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.

10 upgrades to help sell your home

2008-03-21T13:05:00.001-07:00

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

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2008-03-12T12:52:00.000-07:00

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FHA changes loan limits

2008-03-12T12:27:00.000-07:00

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.

Greeen: Easy Does It

2008-03-12T12:10:00.000-07:00

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.

Foreclosure 'crisis' is overblown

2008-03-12T11:18:00.000-07:00

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.

Maintenance Must-dos

2008-02-25T10:56:00.000-08:00

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.

A good time to buy Real Estate

2008-02-11T12:12:00.000-08:00

“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.

Hope Now Alliance

2008-02-11T11:13:00.000-08:00

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

The "REAL" News

2008-02-04T11:08:00.000-08:00

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.

"Local Housing Market Stable"

2008-01-25T12:47:00.001-08:00

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.

NAVIGATING A CHANGING MARKET

2008-01-21T13:36:00.000-08:00

“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

U.S. ECONOMIC OUTLOOK

2008-01-21T13:23:00.001-08:00

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

Oregon Economic Outlook

2008-01-21T12:15:00.000-08:00

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

Economy is Solid And Encouraging

2007-12-20T12:39:00.000-08:00

Despite the impressions you might get from the network news, the U.S. economy continues to churn out solid, even encouraging, numbers -- and that's important for anyone interested in real estate. Last week the federal government reported retail sales up by 1.2 percent in the past month, strong growth in new jobs, exports and household incomes. When the economy looks like it's expanding a bit faster than Wall Street expected it to, investors sometimes begin to worry about the "I" word-inflation -- and interest rates tick back up a little. But the fact is: rates this low are great for anyone looking to buy a house. They are nearly at two year lows; and barely half a point higher than their 40 year lows. So maybe it was no surprise that despite the slight rate increase, mortgage applications rose last week rather than fell. In the short of the matter, Low home prices combined with low mortgage rates means potentially excellent buying opportunities!

for more info you can check out Kenneth R. Harney

Appearances mean EVERYTHING

2007-12-13T13:29:00.000-08:00

According to the results of the 2007 Remodeling Cost vs. Value Report, three of the four projects with the highest national percentage of costs recouped this year were exterior upgrades. The most profitable project on the national level was upscale siding replacement, recouping 88 percent of costs upon resale. Wood deck additions and wood window replacements were a close second returning more than 80 percent of costs, at 85 percent and 81 percent, respectively. But the the only interior project to return more than 80 percent of remodeling costs this year was a minor kitchen remodel, returning 83 percent of project costs at resale.
Homeowners who reside in the Pacific region could expect to see some of the highest percentages of remodeling expenses returned at resale, with 13 of the 29 projects returning 90 percent or higher of project costs.
For more information Check out http://www.costvsvalue.com/index.html

Top 10 Best Performing Housing Markets

2007-12-01T14:13:00.001-08:00

As anybody who has ever sold real estate knows, there are no national markets, only local markets. That adage holds true when you look at the condition of the real estate business nationwide.

Business may be tough in many places, but it’s not tough all over. In Salt Lake City, Charlotte, N.C., and San Jose, Calif., prices have climbed relentlessly. In the Northeast, the biggest gainers are the gritty cities of Buffalo, N.Y., Pittsburgh, Pa., and Philadelphia. In the West, business is brisk in Northern California and the Pacific Northwest.

Here are the top 10 best performing housing markets, according to Forbes magazine, their third quarter median home sale prices, and the percentage that prices have risen compared to third quarter 2006.

Salt Lake City - median home sales price: $246,700; Percent change: 14.1%

Charlotte, N.C. — $220,000, 11%

San Jose, Calif. — $852,500, 9.4%

San Francisco — $825,400, 8.6%

Raleigh, N.C. — $229,500, 7.5%

Austin — $188,200, 7.2%

Pittsburgh — $127,700, 6.1%

Seattle — $394,700, 6%

San Antonio — $154,700, 5.7%

Portland, Ore. — $299,700, 5.2%

source: Forbes, Matt Woolsey (11/21/07)

Fellow Bloggers; Please note that forbes indicated the the entire Pacific Norwest was a still a strong Market. That includes Eugene, Springfield and all of Lane County. We are one of the few still rising markets (albeit a slow gradual gain, a gain none the less!) -- Sally Jo Wickham

How is My Interest Rate Determined?

2007-12-01T14:13:00.000-08:00

Guest Blogger Jeffrey Nunley co-writes this article with David Muti

Why did my friend get a lower Interest rate than I did?

As mortgage planners that work with clients from all walks of life, we are often asked "why did my friend get a lower rate?" In fact, I was just asked the question by a repeat client of mine last week. We always try and explain why this might be. The usual answer is that they are comparing apples to oranges. In that particular circumstance my client was mistaken about the type of mortgage her friend had and upon questioning she understood the difference. My Client (who just purchased her new home) was recently separated, had no job, never worked and could not prove her alimony as it was not yet part of a property settlement agreement. We were able to accomplish this using a "no documentation-jumbo" program. her friend was gainfully employed and was able to verify her earnings as well as her assets.

How your rate is determined is much more complex than the "type of mortgage you have.

Click here to read the rest of this Article: http://www.web2real.com/IntererstRate.htm

Broke? 5 ways to turn your finances around

2007-11-14T09:56:00.000-08:00

Yes, it is possible to take total financial control even when you're in the worst economic straits. Here's how the Women in Red are taking charge of their financial lives.
By Mp Dunleavey

1. Get to know your money
Being good with money doesn't require a Ph.D. in physics. But you do have to get a certain amount of good, basic personal finance knowledge under your belt to recover from past mistakes, ditch bad money habits and make real financial progress.
2. Get to know your financial self
One of the hardest tasks in taking financial control has nothing to do with money but with getting to know yourself financially.
This is one of the primary goals for women who join the ranks of the Women in Red. You can't fix those numbers until you have some idea of where your weak spots lurk, what your financial demons look like, and how and why they manage to trip you up.
3. Slash expenses
Sometimes you need to take a meat cleaver to your expenses, as new Women in Red member Jane has discovered.
4. Save, save, save
Few people recognize that saving doesn't just mean having an account. It's a habit you have to teach yourself, starting with dimes, nickels and quarters, if that's all that's possible.
The routine of saving is more important than the amount saved. This saving is separate from retirement. It's the financial cushion that helps you keep an even keel.
5. Be brave
Above all, what many of the Women in Red learn as they change their financial lives is that it's a "no guts, no glory" scenario.
Does it take time (and sometimes feeling like a fool) to read and learn and ask basic questions in order to find the answers you need? Yes.
Is it painful to examine your past mistakes and be humble enough to learn from them? You bet.
Is it tough to reorganize your priorities so you can live on what you make? Of course.
These steps are hard for everyone, but they can feel nearly impossible when you have so little money to start with, when you're behind on the bills, and no matter how hard you yank those two ends they never seem to meet.

Faced with foreclosure?? Consider this:

2007-11-07T10:51:00.000-08:00

Housing experts say people faced with possible foreclosure, or a big upward reset in what they owe on an ARM, might consider this advice:

Know the value of your home. Selling probably isn't your first choice, but it's important to know whether the house could be sold for enough to pay off the loan, plus closing costs. Ask a real-estate agent for a free estimate, while mentioning that you have no immediate plans to put the house on the market. Also check out Zillow.com, an online real-estate information Web site that provides home-value estimates.

Consider refinancing. If your credit is poor, refinancing may not be possible or will carry big fees, but if a deal sounds good, get an estimate in writing. You can consider whether the offer is worthwhile by using an online calculator such as Financial Calculators (look under "Home & Mortgage").

Talk to your lender. Troubled homeowners may want to run and hide, and lenders may seem unresponsive, but "the longer you wait, the fewer options you have for a workout," says Ren Essene of Harvard University's Joint Center for Housing Studies. Keep records of when you called and whom you talked to.

Seek a loan-modification deal. If you're heading into default, ask to speak with someone in your mortgage lender's "loss mitigation" department. This individual generally has the authority to set new terms for your loan to avoid foreclosure. "Lenders will often ask for good-faith money toward a modification," so hoard cash if you can, says Michele Rodriguez Taylor of NTIC.

Get help. Some nonprofit groups can serve as a go-between with the lender or can offer advice about your options. A nationwide HOPE Hotline (888-995-4673), run by the Homeownership Preservation Foundation, offers counseling. Through the group Neighborworks, it provides referrals to local organizations that can act on your behalf. Some states have set up rescue funds for homeowners. The federal Department of Housing and Urban Development offers links to community groups, among other aids, on its Web site.

Beware of "rescue" scams. If someone calls out of the blue and offers to repay your loan if you sign the deed to them or asks for lots of money to help you stay in your home, hang up.
Selling may be best. "Consumers will do everything to keep their home, even if it's irrational," Essene says. Some refinance multiple times, draining their equity in the home, and still can't afford to keep it. They would have been better off selling sooner, she says.

Choose the lesser of evils. Foreclosure is generally the worst outcome for homeowners, blackening their creditworthiness for years to come. For families on the brink, some alternatives include a "deed in lieu of foreclosure" transfer of ownership to the lender. In other cases, the lender may let you sell the home for a value that won't fully pay off the loan.

Amid these troubles, it's important to keep the challenge in perspective. The current housing market, financial experts say, is tough for just about everyone.

"It's become tighter across the board" for borrowers, says Celia Chen, who tracks housing issues at Moody's Economy.com in West Chester, Pa. "There are few subprime loans being written. [But] for someone who has built up equity and is a prime borrower, they'll still be able to refinance."

Home Prices Still Rising in Some Markets

2007-11-03T18:17:00.000-07:00

Home prices have risen in five major markets, while continuing to fall in the rest of the country, according to the S&P/Case-Shiller home price index for August, released Tuesday.

The largest price declines are in rust belt cities, although Tampa came out as the big loser as speculators abandoned properties.

“The fall in home prices is showing no real signs of a slowdown or turnaround," says Robert J. Shiller, co-creator of the index and chief economist for MacroMarkets LLC.

The Case-Shiller indexes track multiple sales of the same homes in an attempt to screen out price differences caused by shifts in the size and type of houses being sold. Some housing economists consider these indexes the best gauge of national and metro real-estate values.

Here are the changes in the August price level from a year earlier for single-family homes.

5 Cities Where Prices Rose
Seattle: 5.7
Charlotte: 5.6
Portland: 2.8
Atlanta: 0.8
Dallas: 0.5

15 Cities Where Prices Fell
Tampa: -10.1
Detroit: -9.3
San Diego: -8.3
Phoenix: -8.0
Miami: -7.8
Las Vegas: -7.6
Washington, D.C.: -7.2
Los Angeles: -5.7
San Francisco: -4.2
Cleveland: -4.1
Minneapolis: -4.0
New York: -3.8
Boston: -3.6
Chicago: -1.3
Denver: -0.4

Source: The Wall Street Journal, Rex Nutting, and S&P Case-Shiller Index (10/31/07)

What does this mean in the Eugene Market? Well we wrote a blog back in October that showed our local market was still averaging at least a 5% appreciation for this year. Check it out at: Oregon Market Still Appreciating. Guess what we are in the rising markets!!

Steve & Sally Jo Wickham

URBAN GROWTH BOUNDARY

2007-11-03T17:25:00.000-07:00

Guest Blogger Terry Johnson, of OMT Mortgage writes.....

In the early 1970's the then Governor of Ore. Tom McCall created the LCDC (Land Conservation and Development Commission). City growth had to fit within a County and State plan. The Municipalities were required to create an urban growth boundary that allowed for planned growth for 20 years.

The UGB here was an area circling Eugene & Springfield called "The Metro Plan". Originally it was a large area, and as growth filled it up, it was also to grow to retain a 20 year supply of land.

Then some local anti-growth politicians (read Eugene) hijacked it and imposed their vision for the future. That vision is an inflexible boundary that becomes denser and denser as time goes by. Allowable lot sizes were reduced to 4500 sq. ft. Streets became narrower.

There was a newspaper (guess which one) with an article a couple of years ago that predicted new neighborhoods built at a density of 20 homes per acre. (It was around 6).

It is happening. You've seen it.

Land is becoming scarcer and prices are skyrocketing, taking new home prices with it. New houses are being crammed into every nook and cranny almost on top of each other.

This is NOT because of greedy developers. Springfield planners have long wanted to allow the boundaries to grow, but they have been dominated and restricted by Eugene, because it is one Metro Plan.

UNTIL NOW.

Senate Bill 3337 has passed into law!

http://www.leg.state.or.us/07reg/measpdf/hb3300.dir/hb3337.en.pdf

Eugene and Springfield are now separated. This is monumental for the area. The stranglehold that some Eugene politicians have had on growth is broken. The Bill requires each city to create their independent 20 year plan within 2 years. Springfield has theirs already a year in planning.

Some Eugene politicians say that they don't interpret it that way, and don't intend to do anything until FORCED to. (Duh!-what a surprise).

I’ll keep you posted.

Terry@OMTmortgage.com
November 1, 2007 10:56 AM

How To Make a Comment on the Blog

2007-11-03T17:15:00.000-07:00

I have noticed that some people are having trouble commenting on the blog. Well Here is a step-by-step instruction on how to add a comment.

1- This blog does not allow anonymous blogging. It is sponsered by Google so the very first thing you need (assuming you have a computer because you are able to read this) is a gmail account (Google email account). It is quick, easy and FREE! All you have to do is go to mail.google.com/mail/ . Once at google mail you will be given step by step instructions to complete your Free gmail Account.
2- After that all you have to do is go to the blog, click on the comments Link below (the # will change depending on how many comments there are)
3- Type your comments in the box under the label "Leave Your Comments"
4- you will be asked at this point to sign into your google account. If you do not have a google account it will say "No Google Account? Sign up here". You can also use your goggle blogger account if you have one. when you have them, input your gmail or blogger user name and password in the boxes provided.
5- Your comment is not posted until you press the "PUBLISH YOUR COMMENT" button. you can choose to preview your comment before you publish your comment by pressing the "PREVIEW" button.

We look Forward to your many Comments. :-)

Need To Get A Good Foreclosure Deal?

2007-11-01T12:18:00.000-07:00

In the market lately, foreclosure rates have been spiking and brewing up a hot market for investors and buyers. To get the best deal possible you should follow these 5 simple steps.

1) Timing is everything, meaning when the borrowers are in their grace period of paying back the amount they owe this is the best time to strike up a deal.

2) Look in the right places, online services, such as RealtyTrac provide national information on foreclosures, broken down into such categories as bank-owned, auction, and pre-foreclosure. The Hudson & Marshall Web site has auction schedules and even lets you make bids online.

3) Know when to walk away, meaning check the property, make sure its not vandalized, plumbing work, any other problems?

4) Do your research. Before buying a foreclosed property, your clients should have the home appraised to get an accurate estimate of value.

5) Buckle your seatbelt. Foreclosure deals often move fast and require constant monitoring as properties wind their way through the process.

Doom and Gloom?

2007-10-30T13:12:00.000-07:00

Terry Johnson, from OMT Mortgage, thinks that people who see nothing but gloom and doom when looking at the real estate market arent looking at the market correctly. Our local market is solid. Values continue to rise at around 6.5% a year. There certainly is a segment of buyers that could have qualified for a sub-prime loan a year ago, but can’t buy a home today. If you have poor credit history and too much debt, you probably won’t be buying a house until you fix that. Contact a good loan officer for advice. Here’s how the mortgage system works (simplified): Banks loan out money and take back mortgages. If they kept it up, the vaults would be full of mortgages, and they would be out of money. So banks package up and sell mortgages on the “secondary mortgage market”. That secondary market is in a real slump. Foreclosures have left too many investors holding the bag on those mortgages they had invested in, so they have shied away from mortgage backed securities with their investment money. That’s left the banking industry short on cash for new mortgages

Fed Rate Cuts Do Not Equal Lower Mortage Rates

2007-10-29T12:17:00.000-07:00

Guest blogger of Evergreen Mortage contributes the following.....

Today’s article is a re-post of an older article about the last round of FED rate cuts. YES!, we probably all forgot that the FED has cut rates in the past given the 15 upward moves of the last few years but it did indeed happen before. This article, by one of the best in the business Barry Habib, does a great job of explaining this often confusing conundrum.

All my best,
Jeffrey Nunley

Fed Rate Cuts Do Not Equal Lower Mortage Rates
By Barry Habib contributing editor to CNBC.com

So the Federal Reserve cut rates again. Many mortgage applicants are calling their mortgage representative and expecting a lower interest rate. Others who have been waiting to refinance are puzzled as to why mortgage rates have not moved lower during recent 5 Fed rate cuts. In fact mortgage rates are now higher than they were before the Fed began cutting rates by in January. This is difficult to explain to many consumers who have watched a 2.5% reduction by the Fed with no benefit in mortgage rates.
Is a Fed rate cut really good news for mortgage rates? The facts may be surprising. The Fed can only control the Discount Rate and the Fed Funds Rate. This is very different from mortgage rates. A mortgage rate can be in effect for 30-years, a rate that is set by the Fed can change from one day to another.
Another common mistake is in thinking that 30-year Treasury bonds or 10-year Treasury notes are directly pegged to mortgage rates.
Those are government securities that are backed by the full faith and credit of the U.S. government and have no direct effect on mortgage rates.
So what are mortgage rates based on? As it turns out the answer is mortgage-backed bonds known as Mortgage Backed Securities (MBS). Bonds issued by Fannie Mae and Freddie Mac (MBS) and the trading performance of those bonds will determine the direction of mortgage rates. Finding the catalyst that causes mortgage bonds to move will give you the keys to finding out what makes mortgage rates rise or fall.
We know that inflation will always be a negative for any long-term bond because it eats away at the future returns. Since the bond will pay a set amount over a long period of time, that amount will be less valuable if inflation is high. Over the past several years, one catalyst that seems to be working in the opposite direction of MBS prices is the Nasdaq and broader stock market.
As bond prices rise, interest rates fall. As bond prices fall, interest rates rise. The charts accompanying this article show the Nasdaq Composite Index and the Fannie Mae 6.5% mortgage bond tend to follow paths that are almost mirror images of each other. The consistency of this behavior is astounding.
As the Nasdaq moves higher, bond prices move lower causing interest rates to rise. As the Nasdaq declines, mortgage bonds benefit, causing mortgage rates to fall. Additionally, and unlike common opinion, Fed rate cuts have had virtually no direct effect on mortgage rates. Moreover, it appears that since Fed rate cuts act to stimulate the Nasdaq, they have a negative effect on mortgage rates.
The bottom line is that it appears mortgage rates will get better if the Nasdaq sells off and will get worse if the Nasdaq rallies. So it is not necessarily what the Fed does that affects mortgage rates, it's how the Nasdaq and broader stock market interprets the Fed's action that will ultimately influence the direction of mortgage rates. This is because money managers and mutual fund companies typically keep funds in either stocks or bonds with very little in cash. If stocks are in favor, money is pulled from bonds, causing bond prices to drop and interest rates to rise. When stocks are being sold off, the money is then parked into bonds, which improves bond prices and causes interest rates to decline.
On the chart of the Nasdaq Composite Index above, notice how the price movement higher on the Nasdaq seems to correlate to mortgage bond price deterioration (shown below) and vice versa. Once again, lower bond prices translate to higher mortgage rates and higher mortgage bond prices mean lower mortgage rates.
The chart below shows how the Fannie Mae 6.5% mortgage bond has performed during the same time period. The green circles indicate Fed rate cuts and the area circled in red shows when the Fed hiked rates.
A closer look at the 5 rate cuts by the Fed this year (see chart below) shows that mortgage bond prices deteriorated after each Fed rate cut. This means that mortgage rates rose after the Fed had cut rates while many consumers were expecting their mortgage rates to decline. Worse yet are the consumers who missed the opportunity to obtain a lower rate because they mistakenly waited for the anticipated Fed action to cut short-term rates, thinking that longer-term mortgage rates would decline as a result.
Predicting the future is tough, so nothing is written in stone. Keep an eye on the Nasdaq, and keep in mind that the best rates may be behind us. But, mortgage rates are still low and could have some quick dips so make the most of them while they last.

6 Common Housing Problems that Spook Buyers

2007-10-29T12:11:00.000-07:00

Potential home buyers with lots of homes to choose from can be easily spooked by disclosures and the results of property inspections — even when the shortcomings are typical for homes of a certain age.In a jittery market such as this one, it’s critical to give buyers tools and knowledge so they can decide which problems are serious.Judi Seip, an associate with Coldwell Banker in Southern California, tells her clients to accompany the inspector so they can put the problems in perspective. Anything a handyman or an electrician could fix in a few hours isn’t worth worrying about, she says.
Here are six common issues that trouble buyers and some factors to weigh:
1. Water damage. Evidence of water damage frightens buyers, but all water damage isn’t serious. Minor leaks generally cost no more than a few hundred to repair. Get an estimate.
2. Missing permits. Ask the home inspector if the work was done well and meets code requirements, even though a permit wasn’t issued.
3. Code violations. How expensive is the repair? Ungrounded electrical outlets are common in old houses and easily fixed.
4. Cracks in the garage floor. Ask the inspector whether these cracks suggest other related problems. Generally these don’t affect the structure of a home.
5. Termites. Termites and termite damage are very common in many parts of the country. It’s important to get rid of them and to get a clear sense of how bad the damage is.
6. Foundation cracks and other foundation issues. Older homes often have cracks in the foundation. Get an expert to inspect the problem and estimate — what if anything — needs to be done.

Source: The Mercury News, Margaret Steen (10/19/07)

Doom and Gloom

2007-10-26T11:22:00.001-07:00

Our guest blogger Terry Johnson contributes the following...

The WORLD IS COMING TO AN END

I don’t know about you, but I’m sick & tired of people who see nothing but DOOM and GLOOM all around us. I remember when interest rates were 20%. Property values falling? In the 1950’s, $10,000 bought a nice ranch style house with a barn and a few acres. Today a $10,000 home would be someone sleeping in a used car. Is real estate a great long term investment or what?
The foreclosure rate in many areas of the country (like Oregon) is low. In other areas where declining home values are coupled with a higher percentage of adjustable rate mortgages, the foreclosure picture is bad.
Our local market is solid. Values continue to rise at around 6.5% a year. There certainly is a segment of buyers that could have qualified for a sub-prime loan a year ago, but can’t buy a home today. If you have poor credit history and too much debt, you probably won’t be buying a house until you fix that. Contact a good loan officer for advice. If you could only qualify for a sub-prime adjustable rate mortgage 3 years ago, and have since followed your loan officers’ advice and reduced your debt and cleaned up your credit, you’re ready to re-fi out into a great fixed-rate loan. If you still have crummy credit and too much debt, you’ve got a problem. Sorry. (Really).
Today, with good credit and a steady job, you can get a 30-year fixed rate mortgage at a great interest rate, even with 100% financing. It wasn’t too many years ago that it took that kind of good buyer to be able to purchase a home. Period. Welcome to the past. With a segment of the banking industry imploding, the rest of it did a knee jerk reaction. Banks closed or withdrew programs daily. A year ago there were programs for buyers that had no money, bad credit, and were 1 day out of bankruptcy. That stuff is gone, maybe forever. That’s not a bad thing. Reasonable, less risky programs are starting to come back. I get 2 or 3 e-mails a week announcing the return of specific programs. I got a call yesterday from a well known wholesale bank. The Rep introduced himself as the regional manager of their new SUB PRIME division. I’ll be danged. So is there a crisis in the mortgage banking industry? Sure. Does it affect you directly? For 90% of you looking for a home, probably not. In fact, it is the reason rates are so good right now. It’s called a silver lining.
Here’s how the mortgage system works (simplified): Banks loan out money and take back mortgages. If they kept it up, the vaults would be full of mortgages, and they would be out of money. So banks package up and sell mortgages on the “secondary mortgage market”. That secondary market is in a real slump. Foreclosures have left too many investors holding the bag on those mortgages they had invested in, so they have shied away from mortgage backed securities with their investment money. That’s left the banking industry short on cash for new mortgages.
However, most borrowers who buy houses are not credit risks likely to be foreclosed on. But there is such bad press (daily) on the Doom and Gloom of the housing/mortgage industry, that it further erodes investor confidence in that secondary mortgage market. It does the same to you, our customers. The good things that are going on do not sell newspapers, or help sagging media ratings. So this constant negativity becomes a self – fulfilling prophecy. Daily reports of Doom and Gloom help create the very lack of confidence which leads to more Doom and Gloom. I actually see professionals use this fear as a marketing tool to scare customers into calling. That disturbs me. A lot. It does not help our industry or our market and actually adds to the problem. The glass is either half full or half empty, depending on one’s personal perspective. You don’t have to be naïve to see that it is half full.
I joined the real estate industry in this area in 1994. For years there averaged 2700 or so listings of all types in our MLS, with an average market time of around 75 days on market. Those years were GOOD market conditions. Hmmm. That’s about what it is today. Welcome to the past. Did I already say that?

Terry Johnson, OMT Mortgage Terry@OMTmortgage.com 541-242-8083

Credit Crisis Cripples Markets

2007-10-21T15:23:00.000-07:00

Guest Blogger Jeff Nunley of Evergreen Mortgage Contributes the following......

The purpose of this communication is not to alarm you but to alert you to drastic and irreversible changes currently taking place in the mortgage market. If you or anyone else you know will need mortgage financing in the next 18 months, you need to read this!

Just last week, American Home Mortgage and its wholesale counterpart, American Brokers Conduit, became the latest casualties of the credit crisis. Last year, this company closed over $58 billion in home loans. Despite being, by all accounts, a well-run business, market conditions forced them to file for bankruptcy, leaving billions of dollars in loans in their pipeline unable to close. Tens of thousands of borrowers have now been left without financing as a result of companies like this going under.

Clearly, with over 100 national lenders having now closed shop in the last eight months, this is no longer simply a subprime lending issue. The credit market is experiencing unprecedented turmoil. According to Federal Reserve Chairman, Ben Bernanke, "Financial markets have been volatile in recent weeks, credit conditions have become tighter for some households and businesses, and the housing correction is ongoing."

What does this mean to consumers?

Potential borrowers cannot wait any longer. For those who are considering buying a home, be aware that the volatile credit market can change overnight, leaving fewer options available to borrowers attempting to qualify for a mortgage. This is even more true for those looking to refinance. With decreases in home values and fewer available mortgage instruments, delaying any longer could get significantly more expensive.

Borrowers with applications in process must not delay. Applicants should work with their mortgage professional to complete all paperwork quickly, especially on non-conforming, stated-income, and stated-asset loans. Even minor delays can result in funds being yanked at the closing table!

Sellers can no longer be reluctant to accept offers or reduce prices. Tightening credit and diminishing mortgage products will continue to reduce the pool of qualified buyers. This, along with the increase in national housing inventories, means now is not the time to hold out for the "best" price possible.

Buyers with credit issues or who have difficulty providing required documentation can no longer sit on the fence. If market conditions change, buyers who qualify for a loan today may not qualify a few weeks from now for the same exact loan. Just this week, many lenders have stopped offering No-Doc loans, and some lenders have even pulled back on all forms of stated loans. As market conditions continue to change, a buyer's pre-approval status can disappear even more quickly, delaying or spoiling the deal.

Subprime and Alt-A refi candidates, especially those with ARMs scheduled to reset over the next 12 months, need to act now - even those with a pre-payment penalty. ARMs borrowers struggling with monthly payments now might be shocked to know that monthly payments can double in some cases once an ARM resets.

What does this mean to you?

If you or someone you know has an ongoing real estate transaction, I would be glad to help. Please call me right away. As an educated mortgage professional, I will utilize my experience and resources to help you and your loved ones to navigate through these turbulent times. Don't leave your future in the hands of some random mortgage provider. I'm local, accountable, and you can trust that I'll do everything in my power to help you succeed.

http://www.jeffnunley.com/

10 LITTLE expenses that add up fast

2007-10-19T13:22:00.000-07:00

Do you wonder where your money goes, especially if you're not a big spender? It's surprisingly easy to blow thousands, a few dollars at a time. It's easy to fritter away money on little daily expenses. If you fall into these money traps, learn to avoid them and pocket the savings.
Coffee: According to the National Coffee Association, the average price for a cup of brewed coffee is $1.38. There are roughly 260 weekdays per year, so buying one coffee every weekday morning costs almost $360 per year.
Cigarettes: The Campaign for Tobacco-Free Kids reports that the average price for a pack of cigarettes in the United States is $4.54. Pack-a-day smokers fork out $1,650 a year. Weekend smoker? Buying a pack once a week adds up, too: $236.
Alcohol: Drink prices vary based on the location. But assuming an average of $5 per beer including tip, buying two beers per day adds up to $3,650 per year. Figure twice that for two mixed drinks a day at the local bar. That's not chump change.
Bottled water from convenience stores: A 20-ounce bottle of Aquafina bottled water costs about $1. One bottle of water per day costs $365 per year. It costs the environment plenty, too.
Manicures: The Day Spa Magazine Price Survey of 2004 found that the average cost of a manicure is $20.53. A weekly manicure sets you back about $1,068 per year.
Car washes: The average cost for a basic auto detailing package is $58, according to Costhelper.com. The tab for getting your car detailed every two months: $348 per year.
Weekday lunches out: $9 will generally cover a decent lunch most workdays. If you buy, rather than pack, a lunch five days a week for one year, you shell out about $2,340 a year.
Vending-machines snacks: The average vending machine snack costs $1. Buy a pack of cookies every afternoon at work and pay $260 per year.

In the NEWS: Sacred Heart Medical Center at RiverBend

2007-10-17T11:07:00.000-07:00

Construction of Sacred Heart Medical Center at RiverBend continues to move forward on budget and on time for an August 2008 opening. For more information on the hospital click here...http://www.peacehealth.org/Oregon/News/Facilities/RiverBend/SHMC_RiverBend.htm

They Buy to Own- No Matter what the Media Says

2007-10-17T10:28:00.000-07:00

One of every 16 Americans is buying a home this year...

A desire to own a home of their own and to establish a household is the most often sited reason for purchasing a home, according to preliminary results from NAR’s Profile of Home Buyers and Sellers. Thirty-three percent of all buyers, and a whopping 70 percent of first-time buyers, express this as their prime motivator in the 2007 report, scheduled for release in November. A job-related move, desire for a larger home, a change in family situation, desire for a home in a better area and a desire to be closer to family and friends are also high on the list of reasons for purchasing a home. Interestingly enough, taking advantage of perfect market conditions was not mentioned -- not this year, last year or...well... ever!

Mortgage Spam....home owners beware!!

2007-10-16T12:15:00.000-07:00

According to the National Mortgage Complaint Center, home owners who who plan to finance or refinance their homes should steer clear from any mortgage services or referral services that are televised on tv or even the internet. The hook they usually use is "it gets rid of your debt or credit card bills," but in reality they end up gouging you and over charging you, there have been instances where a "competitive lender" is under investigations by numerous state attorney general's for gouging consumers. Thomas Martin, the pres. of the national mortgage complaint center, says this could be the biggest case of fraud in US History. The best solution is to "keep it local, deal with people you know, or deal with companies that have been around for a while".

Are Open Houses Passé?

2007-10-12T12:21:00.000-07:00

According to the National Association of Realtors, 80% of home buyers last year started their search on the Internet, up from only 2% in 1995. But 42% of buyers also went to open houses as part of their search process.
For buyers, open houses offer an opportunity to see properties in person and get a feel for the market without the pressure of working with a real estate agent. For sellers, just the act of scheduling the first open house can jump-start an effort to get a property market-ready by ridding the house of clutter and attending to small repairs.
The Internet, and the opportunity it gives buyers to get detailed information about properties through virtual tours, and even detailed floor plans online, may make the open house less relevant.
Some contend that “real buyers” call and make appointments to see properties, and open houses usually attract only the curious and unserious.
With a home purchase being one of the most important investments in a person’s lifetime most people still want to get out there and kick the tires. They may do preliminary research on the internet but may want to interview possible Buyer/Seller’s agents, as well as physically walk through some properties and get the lay of the land. An open house gives the serious Buyer the opportunity to do all of the above.

Recent changes and rulings for FHA Loans

2007-10-12T12:18:00.000-07:00

HUD has eliminated the use of the DPA (Down Payment Assistance) programs like AmeriDream, Nehemiah and Quick.com. These programs allowed the seller to give the money for the down payment to a third party “charity” that would in turn gift the money to the buyer. HUD is no longer going to accept these programs as an acceptable source of gift funds for down payment.

Also affected is the use of FHA and Oregon Bond with Cash Advatage. You may no longer use the Cash Advantage for down payment on FHA Oregon Bond loans only (conventional Bond still OK). HUD recently issued a ruling that prohibits use of such programs as AmeriDream, Nehemiah, etc. and included reference to other cash assistance that is from an “interested” third party or other entity. This regulation will be effective October 31, 2007 and will not affect any loans in the pipeline scheduled to close before that date.

Quote Of The Day

2007-10-02T13:20:00.000-07:00

If you have an apartment for rent, advertise the geek appeal as well as the curb appeal. More and more often renters want a wireless community just as much as they want a garden community, according to the National Multi Housing Council (NMHC) survey of 1,000 renters, "Apartment Renter Technology Survey".

OPEN HOUSES!!!!

2007-10-02T13:08:00.001-07:00

This week there will be 4 Open Houses Sunday 14Oct2007!

The First House is from 1:30-3:30 in Thurston. for more information Click on this link: http://www.web2real.com/listings.shtml?propid=7063787&source=sallyjoi&who=sallyjoi&cat=Residential&open=Y

The second house will be the luxurious house on Richardson.

1-3:30pm. You can find out about it here http://teamwickham.blogspot.com/2007/09/richardson.html

or go to http://www.web2real.com/listings.shtml?propid=7047155&source=sallyjoi&who=sallyjoi&cat=Residential&open=Y for more information.

The third house will be the biggest bargain of the bunch located on Rollie Loop. 2:30-4:30pm. You can find out more about it here http://teamwickham.blogspot.com/2007/09/rollie.html

or go to http://www.web2real.com/listings.shtml?propid=7032154&source=sallyjoi&who=sallyjoi&cat=Residential for more information.

The Fourth house is a close in country property with acreage. 1-4pm. You can find out more about it here: http://www.web2real.com/listings.shtml?propid=7081952&source=sallyjoi&who=sallyjoi&cat=Residential&open=Y

for more information.

All four Open houses should be fun so bring your friends, bring your families, and even bring your neighbors!

Top 25 Appreciating US Markets

2007-10-01T21:08:00.000-07:00

Oregon Market Still Appreciating

2007-10-01T20:13:00.000-07:00

In a city where all you see are trees and college students. Eugene has erupted in growth more in the last few years then in the previous twenty. The community has attracted new business and jobs. But like the rest of Oregon the market has slowed. The current median price of a home in Eugene is about $206,000, up more then 50% within the past couple of years. Eugene is hypothesized to finish 2007 with an average of 5.2% in appreciation. According to RMLS of Oregon, Portland is among the top ten appreciating US markets. Oregon was once one of the weakest economic state in the west coast but the economic status has increased drastically due to the new business and new employers. Many of the new residents have been drawn to the lower cost of living, lower priced homes, and high employment rate. But now the price of homes are also changing.

Quote of the Day

2007-10-01T16:08:00.001-07:00

Apartment demand has increased for the following reasons:
Apartments being purchased by condominium-converters are taking units offline
Increased immigration and job growth
Cost of construction for new units has increased, limiting the growth of new apartment construction to about 2000 units for 2007
Land seems to be available but at a high cost exceeding the $15,000 to $20,000 per unit that apartment developers might consider

Market Update For The Week Of September 27th to October 1st

2007-10-01T15:47:00.000-07:00

This week in the Market Update, http://realtytimes.com/nlnews.htm?open&Vol=c&ID=sallyjostevewickham, we find that the mortgage rates are up for the third straight week. "McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.42 percent with an average 0.5 point for the week ending September 27, 2007, up from last week when it averaged 6.34 percent. Last year at this time, the 30-year FRM averaged 6.31 percent. "
On a lighter note we see that the popularity of outdoor living spaces sky-rocket. '"Outdoor living is no longer a noun. It's a verb," says Susan McCoy, president of the Garden Media Group.' Entertaining people outside is always a plus, If you have the lawn to do it in. If you are in the market for a spacious entertaining area you should check out http://teamwickham.blogspot.com/2007/09/richardson.html!
Now we move on to the more pressing matters. 10 Ways To Buy Better In A Down Market.
It basically gives you a run down on what to do to improve your odds. For example you shouldn't buy the first bargain you see, tip number seven, or how about "be aware that no one knows what the future will bring. As they say on Wall Street, past performance does not guarantee future results." tip number ten. You should really take a look at this if you plan to buy a house soon.

GOJI

2007-09-27T12:02:00.000-07:00

The Himalayan Health Secret

Did you know that in some remote places in this world, a life expectancy of more than 100 years is not uncommon? Not only do people in these remote regions live long lives, they also enjoy abundant health and happiness.What factors have contributed to their great fortune? These centenarians often live in isolated places. Away from the harmful influences of modern civilisation. Their diet contains fresh fruits, vegetables and whole grains, and is low in animal fats.

During the Tang Dynasty (around 800 AD), a well had been dug beside a wall near a famous Buddhist temple that was covered with goji vines. Over the years, countless berries had fallen into the well. Those who prayed there had the ruddy complexion of good health, and even at the age of eighty they had no white hair and had lost no teeth, simply because they drank the water from the well.

Research strongly suggests that Goji’s four unique polysaccharides work in the body by serving as directors and carriers of the instructions that cells use to communicate with each other. In this way, it can be said that these polysaccharides are "Master Molecules" by virtue of their ability to promote optimal health throughout the body. In the goji berry, polysaccharide levels can vary widely depending upon where and when the berry is grown, and that may explain why some berries are said to be more beneficial than others.

Rollie Loop

2007-09-27T11:45:00.001-07:00

South West Eugene Craftsman!
New Custom craftsman. Tile entry into kitchen with hickory cabinets & granite countertops. Hickory floors in great-room, formal dining room, & upstairs landing. Cultured marble & tile in bathrooms. Central vac, gas fireplace, wired for surround & computer. Walk-in closets in all bedrooms! Landscaped & fenced, underground sprinklers. Great Views. Owner carry 2nd terms available. And with a SqFt of 3100, it makes the price $148 per SqFt.

Quote Of The Day

2007-09-26T11:48:00.000-07:00

When is it a good time to buy a home? It's a good time to buy when your finances, planning, goals and lifestyle mesh with the financial responsibilities required for homeownership.

Junction City Events and Activities

2007-09-25T12:15:00.001-07:00

SEPT. 30SUNDAY LAST ONE THIS YEAR!
For more information call Jean Fogden - 998-2 391

OCTOBER 26FRIDAY9:00-5:00OCTOBER 27SATURDAY9:00-2:00
FALL GARAGE SALE First Christian Church -12th & NyssaDonations of saleable household goods will be accepted for the sale on Thursday, October 25th, 9AM-6PM at the church. We will accept clean, working appliances with a $5.00 disposal deposit. No sofa beds or used paint will be accepted. Proceeds from the sale go to help construct homes for families in need in Junction City, Harrisburg and Monroe. For more information on how you can help, or for time and location of donation drop offs, please call 998-9548 or visit our website. Contact Person after October 1st will be Lois Munson 998-8565

Or check out http://www.junctioncity.com/

Richardson

2007-09-25T11:58:00.000-07:00

Beautiful Contemporary Craftsman Country Home Located In Junction City. Features a great room living room & kitchen. Separate formal dining room. Cambria countertops, hickory & tile floors. Breakfast bar & bay window eating area nook in kitchen. Wrap around covered porch with great sunset views! In a country subdivision of newer upscale homes, each on at least one acre. Price Reduced $10,000!

Feel free to get more information at http://www.web2real.com/

Quote of the day

2007-09-25T11:46:00.000-07:00

According to Mayer, the top five hottest market growth areas are:
- Green building and design
- Assisted living centers
- Hospital expansions, education campus additions
- Mixed-use developments
- Urban revitalization.

http://directory.kmtr.com/Sitelet.aspx?id=372617142&Partner=400187