Market Update: Portland, Oregon Housing Market Q3 2009 Part 2

Here is Part 2 about our Portland, Oregon real estate market for Q3 2009:

OREGON HOUSING PRICES

OregonLive recently reported that Oregon will see 5th worst housing market in the next year:

Oregon’s single-family home prices will fall another 1.8 percent between September 2009 and 2010, the fifth biggest decline projected in the First American CoreLogic Home Price Index. The states expected to do worse than Oregon: Michigan (-6.8 percent), Arizona (-4.8 percent), Washington (-4.2 percent) and Wyoming (-3.3 percent). Looking back, Oregon had the sixth-biggest price decline between September 2008 and September 2009 at 12.6 percent. Ahead of Oregon: Nevada (-25.5 percent), Arizona (-20.3 percent), Florida (-17.7 percent), Michigan (-15.1 percent) and Idaho (-14.9 percent). In both cases, Oregon is doing worse than the national average. First American’s national forecast projects housing prices will bottom out in most markets by March 2010, then turn positive. That obviously won’t be true for Oregon or Portland. First American’s forecast for the Portland market calls for prices to fall 1 percent between September 2009 and September 2010. Here’s a spreadsheet with First American’s forecast for the 50 states.

DISTRESSED PROPERTIES IN PORTLAND

21.9% of listings distressed in PDX

The AP reports that homeowners’ inability to keep up with payments is now more due to unemployment, rather than the sub-prime loans that contributed to the initial increase in foreclosures.

The latest report from the Mortgage Bankers Association indicates that the rate of foreclosure for people with fixed rate loans and good credit is on the rise.

A quick search on RMLSweb reveals that in the Portland Metro area, distressed properties currently make up 21.9% of active residential listings (this number takes into account listings that require third-party approval, as this typically indicates a short sale and those that are marked as bank-owned).

During the third quarter, Oregon had the nation’s 44th-highest rate of homeowners who were late on their payments, and the 21st-highest rate of homeowners in foreclosure, according to the Mortgage Bankers Association.

Oregon has a lower-than-average number of homeowners with sub-prime loans, but a higher-than-average number of homeowners with alternative or “Alt A” loans. Those include interest-only loans, Option ARM loans, or “stated income” loans, where there was no required documentation of their ability to pay.

Alt A loans, like sub-prime loans, are falling disproportionately into foreclosure. However, the Mortgage Bankers report does not track Alt A loans as a separate category.

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws. Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).
Portland

Market Update: Portland, Oregon Housing Market Q3 2009 Part 1

Here’s Part 1 about the housing market in Portland, Oregon for Q3 2009.  Part 2 will appear on Sunday. 

HOUSING APPRECIATION

Portland State University issued their Third Quarter 2009 Real Estate Report indicating which areas showed appreciation during the most recent quarter of 2009 – Q3:

Courtesy Portland State University. Click on Image for Better View

SINGLE FAMILY RESIDENTIAL

The National Association of Realtors® reports that 80% of the housing markets across the U.S. had falling prices in the single-family residential housing sector.

Portland, Oregon was not immune to those falling prices, and NAR® reports that Portland for the third quarter of 2009, had prices dropping by -12.2%.

“During the third quarter, 123 out of 153 metropolitan statistical areas reported lower median existing single-family home prices in comparison with the third quarter of 2008, while 30 areas had price gains.

The national median existing single-family price was $177,900, which is 11.2 percent below the third quarter of 2008; the median is where half sold for more and half sold for less. Distressed sales – foreclosures and short sales – accounted for 30 percent of transactions in the third quarter, which continued to weigh down median home prices because they sell at a discount relative to traditional homes. (Portland’s median sales price dropped by -10.7% from $280,000 to $250,000 in October 2009).

“The decline in the national median price has moderated recently, and a shrinking supply of unsold inventory suggests we are getting closer to price stabilization in many areas, but we need a steady stream of financially qualified buyers to further reduce inventory and get us to a self-sustaining market,” Yun said. “Foreclosures will continue to come on the market, but rising sales from the expanded tax credit should stabilize home prices by next spring and help to stem future foreclosures.”

In another recent report, across the entire Portland metro area, the market as measured by inventory, is the strongest in the $150,000 to $299,999 price range. That market segment has seen a robust sales pace over the previous 12 months (a 58% share) which has been propped up by the government’s $8,000 First Time Home Buyer Tax Credit.  Homes price in the $350,000-$499,000 range have seen significant inventory increase in recent years, up to roughly 9-10 months of inventory in the Third Quarter of 2009 from only 7-9 months during the 2007 peak.  However, it is a marginal improvement over 2008 at the same time.  The most significant change in the market has been the houses over the $500,000 price.  Inventory at the peak of our housing market for that price point was at 12.6 months to over 20 months for Q3 2009.

CNN recently reported that we still have too many houses on the market for sale.  According to their recent report based on numbers from the Census Bureau:

“…a full-fledged housing recovery will remain elusive until the market can absorb all the houses and apartments that were built during the housing boom. And on that front, progress has been slow.

About one in seven housing units was vacant in the third quarter, according to the Census Department. This year has registered the highest reading since the government began collecting such data in 1965.

Part of the glut comes from a rash of foreclosures as strapped borrowers fall behind on their mortgages.

But rental apartments are emptying out at a record clip as well, as a spike in the jobless rate and a decade of subpar wage growth have sent many Americans back home to live with Mom and Dad.”

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws. Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).
Portland

Are You Intexticated?

No longer can you text while driving.  A new word  according to this year’s Oxford American Dictionary, is driving while being intexticated and it is banned after January 1, 2010 in Oregon along with talking on your cell phone.

The other day while waiting for my light to turn green, I was watching people make left turns to see how many drivers were on their cell phones while driving.  All but one that I saw was talking on their cell. This is all about to change and will, perhaps, be harder on some folks than others.

The cell phone ban was approved June 24.  If you’re planning on visiting Oregon after January 1, 2010, it will cost you $90.00 if caught texting or talking on your hand-held cell phone.  Hands-free is allowed.  Oregon is only one of 7 states that bans talking on a cell phone while driving.  In fact, there’s talk the ban will go nation-wide soon.

I wrote a post a while back about the studies that have been done on the driving habits of those talking and driving.  Granted, there are others that don’t need cell phones as an excuse to drive recklessly.  However, when I get a call I always try to pull over to the side of the road or I won’t answer the phone.  I had a near miss not too long ago with someone else driving while on their cell phone and I don’t want to be placed in danger nor do I want to place others in danger.  There are enough crazy drivers on the road already.

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).
Portland

Changes To FHA Condominium Guidelines

Guest Author:

Steve Stenger, President

Condo Approval Professionals LLC

(847) 293-2962

E-mail: steve@condo-approval.com

Website: www.condo-approval.com

Changes to FHA Condominium Guidelines

FHA has made changes to the condominium guidelines as indicated in Mortgagee Letters 2009-46A and B.  These changes are effective as of December 7, 2009. I have outlined the positives and negatives of the upcoming changes. First there are a couple of definitions:

There are two (2) types of project review:

1. HRAP (HUD review and approval process).
2. DELRAP (Direct Endorsement Lender Review and Approval Process). Direct Endorsement (DE) Lenders now have the option to submit projects under this process or HRAP if they choose. They must have the staff that has the capabilities to review and approve projects.  Or they can use an experienced consultant to review their projects for compliance.

Positives:

• If the project has started construction prior to submission to FHA an Environmental Report will not be required. This means that if the plat or development plans and any delineated phase have been reviewed and approved by the local jurisdiction and construction of the streets, sewers, and utilities have proceeded to a point that changes cannot be made to the building an Environmental is not required. Not required under DELRAP reviews.
• Site condos (single family detached under condominium ownership) no longer require project approval.
• Project approval not required for FHA to FHA streamline refinance or FHA/HUD REO sales.
• Condominiums that consist of 2 or more units are now eligible for FHA financing. Previously FHA only considered condominiums consisting of 4 or more units.
• Right of First Refusal now acceptable as long as it does not violate discriminatory conduct under the Fair Housing Act Regulation.
• 30% pre-sale and 50% owner-occupancy down from 51%. That means in a 100 unit project only 30 percent will need to be under contract and only 15 units sold to owner-occupant/2^nd home purchasers.
• 1 year waiting period for apartment conversions is eliminated. Previously, outside purchasers in an apartment conversion with tenants, had to wait for 1 year after the Declaration had been recorded in order to close on a unit.
• 10-year warranty not required on new construction as long as the local jurisdiction provides a building permit to start construction and also provides a certificate of occupancy prior to closing.
• Attorney’s Certification no longer required.  
• Vertical Phasing in single building new construction or condo conversions is now acceptable. The floors must be legally phased in groupings of no less than 5 floors. At least a temporary Certificate of Occupancy has been obtained and all common areas and amenities have been completed.
• Increase in FHA loan concentration from 30% to 50% for new construction and condo conversions. 100% for existing condos that meet the following:
  • Project has been completed for over 1 year
  • 100% of the units have been sold
  • No entity owns more than 10% of the units
  • Budget has a 10% reserve contribution
  • Control has been transferred to the homeowners
  • 50% of the units are owner-occupied.
  • Reserve Study not required on existing condo projects. It may be required if the budget doesn’t meet FHA’s 10% reserve requirement.
  • FHA will now accept temporary/conditional Certificates of Occupancy for new construction and conversions under the following circumstances:
    • All common areas and amenities for the project must be complete
    • The temporary/conditional Certificate of Occupancy that was issued clearly indicates that the unit his habitable and eligible for immediate occupancy.
    • The jurisdiction that is issuing the temporary/conditional Certificates of Occupancy have a standard protocol for this procedure.
    •  Vacant or tenant-occupied REO’s including properties that are bank owned maybe excluded from the required owner-occupancy percentage.
    • Unrecorded documents are acceptable when a project is submitted for review. However, no loan can be insured until the recorded documents are received.

Negatives:

• No “spot” loan approvals. Existing condominiums must be submitted to FHA for their review and approval as of February 1, 2010. However, I can help with this process.
• No more than 10% of the units may be owned by a single investor. FHA is saying that this will apply to builders/developers that subsequently rent vacant or unsold units. In today’s market, developers are staying afloat by renting units until they can be sold. Now they cannot do that for more than 10% of the units.
• Developers will have to provide a certification that states that:
  • The eligible condominium project complies the all applicable FHA requirements addressed in Mortgagee Letter 2009-46B.
  • All condominium documents meet all HUD requirements, and state and local requirements.
  • Projects consisting of 3 or less units will have no more than 1 unit use FHA financing.
  • The 30% pre-sale requirement is indicated to be temporary, to be re-evaluated at the end of 2010. Hopefully, they will decide to keep it.
  • FHA concentration level of 50% is temporary as well.
  • HO-6 policy now required on FHA condominiums following Fannie Mae’s requirement.
  • FEMA Flood Map required for all projects to verify whether or not a project is in a Flood Zone.
  • Project approvals expire two (2) years from the date HUD issued their approval of the project. I can assist realtors, homeowner’s associations, and management companies with the recertification process.
  • Projects that received approval prior to October 1, 2008 will require recertification on or before December 7, 2010. If they are not recertified by that date, they will be removed from the FHA approved list and have to reapply which requires a full document submission.

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).
Portland

Waiting? You Have 163 Days

On my photo blog today, Lake Oswego Living. A Photo Blog, there’s a new picture entitled “Waiting”. I posted the new picture today because if you are a move-up buyer wanting to purchase under the new Home Buyer Tax Credit program, you have roughly 5 months and 2 weeks (i.e. approximately 163 days) to sell and close your existing house, plus find and write an offer on a replacement house.  That’s about 5 months plus some change.  Frankly, that’s not a lot of time left.

Lake Oswego/West Linn’s average time to sell a house in October was 201 days, Tigard it was 141 days and West Portland 197 days.  If you put your house on the market today, you might be too late to get your house sold and closed in time plus close on your new house.  As an example, if the average time to sell in LO is 201 days, and depending upon the type of replacement home you purchase, such as a short sale, it could take up to an additional 180 days just to close your replacement house.  You can see you’re already too late to take advantage of the $6500 move up buyer tax credit available to you if you haven’t put your house on the market yet.

Granted, you don’t have to sell in order to buy and get the tax credit.  However, if you need the proceeds from the sale of your home, why are you waiting to list your property?

If you need some help, give me a call, I’d love to be your Realtor®.

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws. Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).
Portland

Mortgage Market In Review

Guest Author:

Bob Chiodo, CFP

Equity Home Mortgage, LLC

www.ResCommLending.com

Apply Here

(Click on Image for Better View)

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).

Oregon’s Economy + 2010 Predictions

OREGON’S ECONOMY

According to Yahoo!® recently, Oregon is considered one of the 10 most troubled states. The list is based on several factors, including the loss of state revenue, size of budget gaps, unemployment and foreclosure rates, poor money management practices, and state laws governing the passage of budgets. 

These troubles have forced Oregon and the other nine states – as well as many others — to raise taxes, lay off or furlough state workers and slash services. The actions in these 10 states can slow down the nation’s recovery, especially since these 10 states account for one-third of the country’s population and economic output.

The 2009 Milken Institute/Greenstreet Real Estate Partners Best-Performing Cities Index ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth.  The components include job, wage and salary and technology growth. According to the Milken Institute Study, Portland ranks #37 (last year the outlook was better and we ranked #28) for job recovery.

As you know if you’ve been reading my blog, I was in favor of the extended and expanded home buyer tax credit although many were against it, including many real estate agents.  It wasn’t because I wanted to increase our debt, but I was in favor of it (and I”ve stated this in my blog) because I have sold real estate now through 5-6 recessions and I knew how important housing is to any recovery.

Now comes a study from the Joint Center For Housing Studies of Harvard University “The Role of Housing in Recessions and Recoveries” saying much of what I’ve said in my blog posts: 

“Historically, changes in residential fixed investment (RFI) have contributed significantly to both pushing the economy into recession and lifting it out.”

“The housing downturn has had a dramatic effect on economic growth—directly through the collapse of construction and home sales and indirectly though reduced consumer spending in response to falling home values and the multiplier effects of reduced construction and sales”. 

PREDICTIONS FOR 2010

2010 Real Estate Market

I guess we don’t have to wait until January 1, to read about predictions from economists about 2010 because they are already starting to show up in November instead.  If you didn’t catch this article on CNN, here’s what they have to say about the “bottom” in housing and how they feel real estate will look in 2010.

Our National Association of Realtors® posted their optimistic predictions for 2010 and from local Oregon economist Bill Conerly comes his forecast for 2010 as well.

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).
Portland

Market Update: Condo Rules & Portland Stats

I posted a new picture Thursday on my Lake Oswego Living.A Photo Blog.  Take a look if you haven’t seen it as yet. 

CONDOMINIUMS

Condos in 55 metro areas showed that the national median existing-condo price was $178,000 in the third quarter, down 15.4 percent from the third quarter of 2008. Four metros showed annual increases in the median condo price and 51 areas had declines.  According to the NAR® report, Portland’s condo market had a -7.0% drop in prices.  That’s the 30th biggest decline nationally.

3 Year Condo Median Prices As Of October 2009. Courtesy RMLS

FHA Delays Implementing Rules for Condo Loans..Again

Bob Chiodo in his Oregon Financing Update in September reported on this.  The Federal Housing Administration says it will implement a new approval process for condo financing on Dec. 7 – the second time the deadlines have been pushed back. The delay also brings a relaxation of new rules, according to the Mortgage Bankers Association, which has been negotiating with FHA.

Under the latest revision of the rules, 50 percent of units in a condo project will be eligible for FHA funding and up to 100 percent will be eligible in “well-established” projects with a minimum of 10 percent reserves. Half of the units (50% of the total units) will have to be sold to owner-occupants before FHA will back any loans.

In an important move, FHA said it wouldn’t require the recertification of some 40,000 projects that have already been certified for FHA financing.  Source: Inman News, Matt Carter (11/05/2009)

Here are the Federal Housing Administration’s new guidelines for owner occupancy and spot approval.  Hopefully this will make mortgages for condominiums more accessible.  I have a blog post coming soon with more details.

Atwater Update

Meanwhile, the Oregonian reports that the Atwater Place’s auction was a success in that  75% of the auctioned units have closed. The company that’s trying to unload the Atwater Place at fire sale prices wanted to close its auction sales within 30 days of the Sept. 30 event. As of last Friday, they’d recorded 30 sales among the 40 units they accepted winning bids on.

The units that haven’t sold run throughout the building from a $319,000 unit on the third floor to a $681,000 unit on the 19th floor. The auction accomplished another feat: The publicity helped generate six other new sales at comparable if not slightly higher prices per square foot.

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).
Portland

Real Estate Markets in Portland Favoring Buyers, Sellers Or Balanced

Yesterday I posted the RMLS™ Market Update October 2009 stats in case you missed it.  Back in July 2009, I wrote a post about which areas in Portland were either a buyers, sellers or a balanced real estate market.  Looking back at that post, all areas of our real estate market here in Portland have improved since July.  Granted, the areas closer in were driven (and are still being driven) by the first-time home buyer’s tax credit and the high number of foreclosures.  Now that program has been extended and expanded it will be interesting to see next year how the Federal program impacted our market.  However, it definitely impacted the first-time home buyers and the close-in metro areas of Portland.

Here are the current numbers as of October 2009 compared to July 2009:

BALANCED REAL ESTATE MARKET IN PORTLAND

Currently, our latest October 2009 stats show Portland (which includes Clark County, Washington) having 6.5 months of inventory.  5-6 months (or under 7 months of inventory) is considered by our National Association of Realtors® as a balanced real estate market.  We are at the higher end of the range, but we are definitely seeing a balanced market – good for both buyers and sellers – here in Portland, Oregon overall.

Here are the numbers for each of the areas in Portland from our latest RMLS™stats –  October 2009:

Sellers Markets (obviously favoring sellers=too little inventory)

• North Portland currently has 3.9 months of inventory (in July it had 5.7 months)
• Northeast Portland currently has 4.2 months of inventory (in July it had 5.8 months)
• Southeast Portland currently has 4.6 months of inventory (in July it had 6 months)
• Beaverton-Aloha currently has 4.7 months of inventory (in July it had 6.3 months)

Balanced Markets (good for both buyers and sellers)

• Gresham/Troutdale currently has 6.1 months of inventory (in July it had 8.3 months)
• Milwaukie/Clackamas currently has 6.6 months (in July it had 6.8 months)
• North Washington County currently has 6.7 months (in July it had 7.1 months)
• Hillsboro/Forest Grove currently has 6.3 months (in July it had 9.1 months)
• Tigard/Wilsonville currently has 6.9 months (at the higher end and closer to a buyer’s market) (in July it had 9.3 months)

Buyers Markets (obviously favoring buyers=too much inventory)

• Oregon City/Canby currently has 9.8 months of inventory (in July it had 12.7 months)
• Lake Oswego/West Linn currently has 8.4 months of inventory (in July it had 11.9 months)
• West Portland currently has 8.9 months of inventory (in July it had 9.2 months)

Already we’ve been seeing multiple offer situations in the hot seller markets noted above.  As we move into the spring-buying season we will undoubtedly have another frenzy of buying with multiple offer scenarios again. 

Winter is a great time to buy.  Serious buyers and relocation buyers will be out in our marketplace in the next several months.  Rates are so low, inventory is still high in many areas and with the tax credit I am surprised many people are still on the fence.  If you don’t have an agent to represent you, let me help, I’d love to be your Realtor®.

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).
Portland

Real Estate Updates & October 2009 RMLS Stats

HOORAY!!!  My blog should did hit the 100,000 mark today. Thanks for reading.

RMLS™ October 2009 Stats

The October 2009 RMLS™ stats were published Thursday and I haven’t had a chance to look at them as yet.  However, I am posting the report here.  Our inventory of houses for sale is at the lowest we’ve seen since August 2007 and sales jumped by 64% the largest increase since 1996.  I’ll post more data in the next couple of days.  However, if you’ve been thinking of selling or buying, now’s a good time.  With low interest rates, low inventory and the home buyer’s tax credit, it is a good time for all parties.

OTHER NEWS

There’s been a lot in the news lately but the over-riding news story has been the increase in unemployment benefits and the extended/expanded home buyer tax credit.  Here’s a great website with frequently asked questions and answers in regards to the new Home Buyer Tax credit that might come in handy for you.

There have been other news-worthy items as well:

Fannie Mae Offers Deed For Lease Program

As a homeowner you must have tried to modify the loan and been denied

You give the house back to bank via deed- in- lieu of foreclosure

You will be allowed to rent back your home for 12 months

You must qualify to pay rent at the fair market value

You must not use more than 31% of your gross monthly income to rent back

There’s more info on their website about the Deed For Lease program.

Bend Named In Top 25 Cities 

Yahoo!® recently had their Top 25 cities to recover from the economic downturn with a job recovery.  The only Oregon city to make the list was Bend and it posted at #23.

23. Bend, Ore.

Q1 2010 annualized job growth: 0.8%
Q3 2009 annualized job growth: -4.7%

First quarter of recovery: Q1 2010
Unemployment rate: 14.5%
Median household income: $54,179

The economy of Bend, at the Cascade Mountains’ eastern foothills, is especially popular with hikers and skiers. Bend’s job market got hammered during the recession because it depends heavily on highly cyclical industries—construction, the retail trade, and tourism. As the overall recovery sets in, Bend and its highly volatile economy should bounce back faster than the rest of the country.

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).
Portland

Oregon Financing Update

Guest Author:

Bob Chiodo, CFP

Equity Home Mortgage, LLC.

www.ResCommLending.com

Apply Here

Estimated Rates for the week of November 9, 2009*

• 30 year fixed=4.750-4.875
• 30 year jumbo=5.50 to $500k; 5.75 – 5.875 above
• 7/1 ARM=4.00 – 4.25 various programs are available
• FHA/VA=4.75 – 5.00
• OR Vet=4.50 w/1.50 – 4.625 w/1.00

It’s been a while since my last update but it’s certainly not due to a lack of news in the mortgage world. As you can see, rates are still down and doing great. We all know that these won’t last forever but we should remain in a narrow range for the next month or so. And since the 1^st time homebuyer tax credit was extended, I think buyers should immediately consider taking the necessary steps to get their first home.

I thought I would take a moment to talk about the impact foreclosures and the alternatives to foreclosure have on a consumer’s credit. This is meant to be just a guideline – lenders can and will have their own rules and these rules change often.  On the research that I have done, it appears that most lenders – as well as the credit bureaus – treat a foreclosure, short sale, or deed-in-lieu of as the same in terms of the impact it has on a borrower’s credit profile. After speaking with an underwriter, it appears that FHA requires that a foreclosure or the alternative to be three years before new financing can take place. For VA, it looks like it is two years. Conventional is more convoluted. Per a recent Fannie Mae announcement, foreclosures have a 5 year time frame with additional requirements up to 7 years (principal residence only, 10% down and a 680 credit score). Deed-in-lieu of’s are 4 years with additional requirements up to 7 years. It appears, however, that short sales have only a two year waiting period. Most of these rules do allow exceptions for extenuating circumstances – which, of course, is very subjective. Now, of course, all of these programs require certain credit scores – conventional being higher than FHA. If the credit bureau dings a consumer’s credit hard for a short sale – as I heard that they do – the loan won’t be able go through with the poor scores. So we are back looking at an FHA loan with the three year wait period. I have also heard that some of the banks are going after borrowers after the short sale is completed and requiring the borrower to cover the short fall. If the credit hit is considered the same and the bank tries to collect on the short amount, it makes one wonder why a borrower would do a short sale in the first place. In any of the above circumstance, the key thing for a consumer to do after completion of a foreclosure (or alternative) is to immediately start rebuilding their credit. Getting a secured credit card would be a great start and working with someone is specializes in this area could well be worth the time and effort.

For homeowners facing foreclosure in Oregon, the state recently passed a bill that requires lenders to meet with borrowers either by phone or in person to evaluate whether the homeowner qualifies for a loan modification. Oregonians should watch their mail for the new notice. They have 30 days to act from the date of the notice to request a loan mod. Once received, they should call their lender to set up a meeting, complete the request form provided in the notice and call 1-800-SAFENET and ask for a referral to a nonprofit foreclosure counselor to help with the modification.

There is a lot more going on then time and space warrant. Fannie and Freddie are about to tighten up on their debt ratios and FHA just published their new condo rules – spot approvals are still good through the end of January. Fannie just released their Deed-for-Lease program which will allow for homeowners to rent back their home after completing a deed-in-lieu of to Fannie. And, of course, a huge change is about to happen January 1 when the new RESPA guidelines take place. More about all of this later.

Thanks for reading and have a great week!

*Rates quoted are for the use of Realtors and others in the real estate/financial service industries. They are not meant to be a quote for an individual situation. Rates change daily and those above are only listed to assist market participants by keeping them informed of current interest rates. Credit scores, down payment, and other risk related issues may change the rate. Quotes are usually shown for a 30 day lock period and a 1% origination or discount fee.

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).

Portland

The Future Of Buying Real Estate: RPR

There’s a new acronym to add to your vocabulary – RPR.  Not too long ago I reported in a post that there is no national database of houses for sale.  Now comes word from our National Association of Realtors® that they are working on RPR.  What’s that you say?

“The National Association of Realtors® has acquired technology to create a database of all properties in the U.S. so Realtors® can better assist consumers in a high-tech, fast-paced business world.

The technology acquisition includes licensed data and secured data aggregation services from LPS Real Estate Group, a wholly owned subsidiary of Lender Processing Services Inc. (NYSE:LPS), a leader in real estate technology. NAR will use the assets to develop the Realtors® Property Resource™, a parcel-centric information database covering all of the more than 147 million property parcels in the country as a resource for NAR members. NAR is planning to launch RPRTM in the second quarter 2010.

‘Realtors® are the first, best source for real estate information, and the RPR™ is another emphatic feature to that resource. RPR™ will give Realtors® nationwide data on all properties at their fingertips so they can respond quickly to consumers interested in residential and commercial real estate. This is exciting news and a terrific NAR member benefit. NAR is committed to keep Realtors® central to the transaction and to the buying and selling experience with their clients and customers,’ said NAR President Charles McMillan.

RPR™ will provide nationwide access to public record information such as tax and assessment data, liens, zoning, permits, environmental information, and information on neighborhoods, school district and community demographics, along with advanced search features for property searchers, as well as market-to-market comparisons and referral opportunities not currently available.”

Obviously there have been debates across the U.S. as to whether this will in fact be a good thing for consumers.  There are also those pessimists who feel that the Realtor® model will disappear.  Frankly, I don’t think that will happen.  I think providing information to consumers to assist them in making good decisions is always what a Realtor® should be doing.  That’s the main reason and foscus of why I write this blog.

Further, if you’ve been reading my blog, there’s a lot involved in purchasing any kind of real estate investment that includes knowledge of laws, rules, regulations, etc. and the one thing that always comes into play is emotion whether a buyer or seller feels they are emotionally involved or not.  As a Realtor®, I have the training, knowledge, experience and education to assist in keeping my buyers and sellers informed and on track towards making the best decisions for them.

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).
Portland

Market Update: Mortgage Market In Review

Guest Author:

Bob Chiodo, CFP

Equity Home Mortgage, LLC

bobchiodo@equityhome.com

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).
Portland

Buying a House To Fix Up – Fixer-Uppers

Perhaps one of the greatest opportunities to create wealth or generate a high rate of return on an investment exists in buying real estate that can be fixed up or improved.  The changes sometimes can be as simple as a coat of paint, new carpet, or even just floor and window coverings.  During my marriage, we bought fixer uppers in different conditions of repair.  We lived in the house and then resold each house at a future date. We did that for over 20+ years.  Buying a fixer upper, however, is not for the faint at heart as it takes hard work.

However, with all the foreclosures that have been abandoned or destroyed, there are too many houses that need rehabing.  If you’re wanting to become a rehabber, remodeler, etc. in today’s market, there is a financing tool that can assist you.  Actually, it has been around for a very long time and in the 70s, 80s and even into the 90s, I sold houses using that financing.

It’s the FHA 203K. 

When you purchase a home that needs repairs, often the bank won’t lend the money to buy the house until the repairs are complete, and the repairs can’t be done until the house has been purchased.  HUD lets you purchase or refinance a property plus include into the loan the cost of making the repairs and improvements.  The FHA insurance 203K loan is provided through approved mortgage lenders nationwide and is available to persons wanting to occupy the home. The program can be used for one-to-four unit dwellings. Maximum mortgage limitations are the same as for properties under Section 203(b).

The “Steamline (K)” Limited Repair Program permits homebuyers to finance an additional $35,000 into their mortgage to improve or upgrade their home before move-in.  Homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser.

The FHA-backed 203K rehab loan is becoming increasingly popular in today’s market because there are too many properties that need repair.  A stream-lined 203K provides money to pay for improvements such as a new roof, appliances, furnace, energy-efficient windows and cosmetic improvements such as carpeting, paint and even remodeled kitchens and baths.

“When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan.”

A licensed contractor must complete the work within 6 months.  Some lenders will allow the borrower to do minor cosmetic work such as painting themselves.

Eligible Improvements

• structural alterations and reconstruction
• modernization and improvements to the home’s function 
• elimination of health and safety hazards 
• changes that improve appearance and eliminate obsolescence
• reconditioning or replacing plumbing; installing a well and/or septic system 
• adding or replacing roofing, gutters, and downspouts
• adding or replacing floors and/or floor treatments 
• major landscape work and site improvements
• enhancing accessibility for a disabled person 
• making energy conservation improvements

Seeing a property and its potential for improvement presents an opportunity to create appreciation and increase its value.

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).
Portland

Tigard’s Joy

Copyright Betty Jung 2009.

One of the activities Oregonians like to do in the Fall and Winter months is head to the movies.  According to statistics I found, there are 112 movie theatres in Portland with 600 movie screens.  Each theatre averages 5.4 movie screens per theatre.

A theatre I go to frequently, and a favorite of mine, is the Joy Theatre (now called the Joy Cinema & Pub) in Tigard.  Not only is it close to my home, but it provides an intimate experience unlike those “big box” movie complexes.  It’s more of a neighborhood-type theatre.  However, all the popular and current movies are shown there as well.

It had been on the historic site list for Tigard but looks like it was removed from its Historic Places list in 2007.  Unfortunately, I don’t know why even though I’ve tried to do some research. 

The theatre was built towards the end of the Art Deco movement in 1939 and is an example of the Art Deco Modern Style.

“Art Deco style” gets its name from the ‘Exposition des Arts Decoratifs’ which took place in Paris in 1925. This particular style was first fashionable between 1920 and 1940. It was often used in cruise liners, and many Hollywood movies of the 1930s portray it perfectly.  Although often confused with the Art Nouveau style, Art Deco style is more modern and clear in its outlook. As with all styles, it was heavily influenced by ideas and fashions of the time. Archaeologists were making new discoveries in the near East and Middle East. Their influence can be seen in pyramid designs. African safaris were popular, and Latin American culture provided a mystique which Western nations lacked.

Here’s the link for the Joy Theatre and show times.  Check it out.

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).

Portland

Buying A House Using The Home Buyer Tax Credit

Inspite of the new tax credit signed into law yesterday by President Obama, there is still some confusion and many people are now starting to ask questions as to who qualifies, etc.  Yesterday, in my post I submitted an easy to read chart with the particulars.  To emphasize some information in that chart, a purchase to qualify would have to be made after enactment i.e.  it was signed 11/6 by the President which means it is effective  – November 7, 2009:

Who is Eligible

• First-time home buyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit. 
• Existing home owners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for up to a $6,500 tax credit. 
• All U.S. citizens who file taxes are eligible to participate in the program. 

Income Limits

• Home buyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.  
• For married couples filing a joint return, the combined income limit is $225,000. 
• Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.  
• The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000. 

Effective Dates

• The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009 i.e. effective November 7, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.  If a written binding contract to purchase was in effect by April 30, 2010, the purchaser will have until July 1, 2010 to close

 Types of Homes that Qualify

• All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify.   

 Tax Credit is Refundable

• A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference. 
• For example:  
  • A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 first-time home buyer tax credit).  
  • A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit). 
• All qualified home buyers can take the tax credit on their 2009 or 2010 income tax return. 

Payback Provisions

• The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.

The www.federalhousingtaxcredit.com site is being updated. Please check the site next week for more detailed information on the new tax credit!  

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. ©

Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).
Portland

Home Buyer Tax Credit – Are You Pre-Approved?

Now Official – President Obama has signed tax credit into law. 10 a.m.

We are very close to getting final approval for extension of the tax credit.  The bill has passed both the Senate and the House of Representatives, and the President’s signature is expected today. 

The legislation includes the following components (here’s a link to a chart with more particulars of the tax credit):

• The $8,000 tax credit will be extended and available for first-time purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010, will be allowed an additional 60 days to complete the transaction. Income limits are expanded to $125,000 on a single return and $225,000 on a joint return.  
• A new $6,500 tax credit will be available for repeat buyers who purchase between December 1, 2009, and May 1, 2010. To qualify for this provision, buyers must have lived in their homes consecutively for 5 of the previous 8 years.

There are many that don’t accept the “Buy Now” propaganda.  However, prices are low, interest rates are historically low, there’s lots of inventory to choose from, and with the additional tax credit, how can one say now is not a good time to buy?  Very rarely in my 34 years, and I’ve written about this before, have I seen where everything falls into place perfectly.  Now is a time where it’s close to being perfect – low prices, low rates, lots of inventory, tax credits, etc.

If you have a job, have savings, have a down payment, what is stopping you from buying a home?  As indicated in previous posts, I’ve always owned and I don’t believe in paying off someone else’s mortgage by renting.  I believe it’s far better to build your own equity than someone else’s. Granted there are reasons and times you should rent instead of buy, however, for the most part, I believe in buying a home of your own (I know you’re thinking, but I’m the Realtor®).

Now is the time to get pre-approved for a loan if you are planning on utilizing the tax credit.  Time passed quickly during the first tax credit time period and you don’t want to waste precious time this go-around — get pre-approved now.

Let me help, I’d love to be your Realtor®!

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).

Portland

City Of Lake Oswego To Answer Housing Call

As you know if you’ve been reading my blog, I have been on my “platform” so to speak against large homes and about the need and desires of the boomers wanting to stay in their communities as they age.

After I published my critical post about the City, the Lake Oswego Review had a story about how its officials are rethinking the future development here in Lake Oswego and had this to say:

“Before the current recession, the trend in Lake Oswego was to replace older bungalows and ranch homes with large, expensive houses. In addition to Lake Oswego’s attractive parks, schools and other amenities, high land prices and easy access to credit contributed to the tear down trend locally. The small, relatively affordable homes that were removed for upscale housing were never replaced. What was once entry-level housing quickly disappeared, and middle-income families and young adults are now essentially shut out of the Lake Oswego market. This, of course, creates a problem for the Lake Oswego’s public schools, which are experiencing an overall decline in the local school age population; the school district is now seeking tuition-paying students from outside the district, which is not a sustainable solution. The trend is also a problem for empty nesters and other long-time residents who wish to stay in Lake Oswego.”

The First Addition neighborhood is one of the areas referred to in the above.  The small cottages were torn down in favor of the larger McMansions much to the disgust and anger of residents living there.  Now, that quaint and award-winning community is stuck with those larger homes crowding out the remaining smaller houses. 

I also read recently on the Heritage Council’s website that many of this town’s architectural landmarks have been torn down, lost or have disappeared.  Since I started my Lake Oswego Living.A Photo Blog, I’ve been researching landmarks and photos I want to take.  There’s a lot of history here in town that can never be captured.  It’s a shame that everything in favor of and to benefit its citizens is always done after the fact and not with forethought like saving those historic sites.  We’ve got to do more.  This is a great community and it can get even better.

You sometimes hear critics call this quaint town “Lake Ego”.  Frankly, I love living here and I for one don’t want to leave.

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).
Portland

Oregon Financing Update – Mortgage Market In Review

Guest Author:

Bob Chiodo, CFP

Equity Home Mortgage, LLC

bobchiodo@equityhome.com

 

 

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).
Portland

Further Along The Road

Recently, on another blog site I was told by a real estate agent I should “pack it up” and put my posting on vacation since real estate is slow, and come back again when things pick up.  I’d then be so busy, I wouldn’t have time to post.  Frankly that goes against everything I believe in. 

In May 2008 when things were slow then too, I got my blog on-line and focused on social media and internet advertising. Nordstrom’s retail sales are down drastically, yet Nordstrom is still sending out their catalogs and advertising.  They haven’t stopped. They aren’t waiting until their sales start improving.  I have taken their approach and only expanded my on-line presence, not eliminating it or slowing its pace, yet not being distracted from my main objective of listing and selling real estate in the metro Portland area. 

Last year another reader was also critical of my lack of presence on Twitter and Facebook and my ignorance regarding how important those sites are.  OK so now I’m part of the Twitter and Facebook family.  There was a great video recently that shows how important your on-line presence is not only if you are a Realtor®, but if you are another business owner as well.  You can see it here.  

So I’ve been busy focusing on my Internet presence:

• Photo Blog

Recently, I started my photo blog….Lake Oswego Living.A Photo Blog and a new photo was posted Sunday.  If I had it to do all over again, I would only do a photo blog.  I didn’t happen upon this idea until recently and it is a lot more fun than posting every day on ALL ABOUT…..Portland.Oregon.Real Estate.  I post a new photo every week, typically on Monday’s, devoted to Lake Oswego.

• My blog will soon have direct access to foreclosures. 

RE/MAX International, Inc., announced a strategic partnership with RealtyTrac. Through the partnership, RE/MAX Associates will receive discounted subscription rates to RealtyTrac, the nation’s leading online foreclosure marketplace.

• New blog features

If it’s been confusing navigating my blog lately, I have been rearranging categories/posts and have added new search categories.  In addition, I have started posting city profiles. Tigard, Lake Oswego, and West Linn are posted with West Portland to follow.  There will also be individual neighborhood snippets for those areas.  There are new links to mortgage calculators, FHA loan limits, rent vs. buy, credit reports, search investment properties, search for residential properties, videos, plus many more new links in the sidebar and some new ones to come. 

• My blog is now on multiple blogging sites

My daily blog (this blog)appears on RealTown, Trulia, Realtor.com, Blogger, Linkedin, short tweets on Facebook and Twitter and, of course here on my main site –  WordPress.  They all contain the same information.  From the beginning, I had committed to writing daily and since May 2008, I’ve been doing  just that.  I had started one more blogging platform, but have decided to stop my participation on ActiveRain.

• New website and blogging design

I’m upgrading my blog here at WordPress. Lots of new ideas and soon will incorporate some of them. Who said computers would make our lives easier??

• I continue to learn

A while ago, I attended a WordPress Camp (a techie conference).   I was unable to go both days, but after one session, I was already on overload.  Yesterday I listened to RealEstate Tomato on BlogTalkRadio.  Stefan Swanepoel spoke about the new trends in social networking.  He has for the last 20 years written TREND Report tracking real estate trends and now also writes about social media trends.  I continue to learn but seem to have a million other questions.  In addition, I hope to take some photography classes soon.

All this to better assist you in buying or selling real estate.  P.S. Let me help, I’d love to be your Realtor®!

ALL ABOUT…..Portland.Oregon.Real Estate, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License. © Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.  Based on a Blog at WordPress.

(For more local and national real estate information, go to www.bettyjung.com).
Portland