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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
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
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
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
Guest Author:
Bob Chiodo, CFP
Equity Home Mortgage, LLC.
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 1st 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).
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
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.
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
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).
PortlandNow 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).
It has been awhile since I posted any information on apartments (multi-family) units here in Portland. This time I am focusing on the three areas my blog covers: RMLS#147 Lake Oswego, West Linn, RMLS#148 West Portland, and RMLS#151 Tigard. First, however, here’s the latest information from Western Real Estate Business about Portland:
WESTERN SNAPSHOT, OCTOBER 2009
Portland, Oregon, Multifamily Market
1. MARKET MOVES
Three significant Portland multifamily buildings delivered downtown in the first two quarters of 2009: Cyan/PDX (352 units developed by Gerding Edlen Development), the Ladd (332 units developed by Opus Northwest) and the Riva on the Park (294 units developed by Trammell Crow). Downtown Portland has historically been a healthy submarket for multifamily and much recent construction has been centered there, so the area is now becoming very competitive. All three of the aforementioned projects are also pursuing LEED certification, which appeals to Portland’s urban tenant.
2. MARKET MEASURE
Vacancy is an important factor in Portland’s multifamily market as it is an indicator of the overall market’s health. The vacancy rate has been trending upwards in recent quarters, which should continue in the second half of the year. It’s important to note that the increase in vacancy is due to economic pressure on tenants, not migration of people out of the metro area. Expect vacancy to regain its footing in the summer of 2010 or when economic conditions improve.
3. THE MARK OF A MARKET
Portland’s Urban Growth Boundary (UGB) sets it apart from other multifamily markets in the West. The UGB has prevented overbuilding in both the single-family and multifamily markets in the last 5 years. So despite the recession, Portland’s apartment market has remained relatively healthy and under built, aside from some significant building downtown. This leaves Portland’s multifamily market in a strong position and set for a robust recovery when the economy improves.
— Robert Black is an associate vice president specializing in multifamily investment sales at NAI Norris, Beggs & Simpson in Portland.
Norris Beggs & Simpson reports that:
Landlords are doing everything they can to attract the fewer active renters in the market. Concessions today in certain submarkets are sizeable, including up to two months free rent on a 13-month lease for some new properties in the downtown area. Renters looking for a new place to live are shopping around for the best deals they can get, and existing tenants are also tuned in and looking for bonuses to extend their leases on expiration.
Despite the impact of the recession on the apartment market, Portland is in a good position for the upswing. U.S. News & World Report recently named Portland and its commercial market one of the ten cities “primed for a real estate recovery,” due to its green economy and overall economic health. When the job market and overall economy starts to improve, Portland’s multifamily market will be in a strong position for a rebound.
APARTMENT – MULTI-FAMILY STATS (Click on the RMLS# for property specifics and will only be in effect for a limited number of days):
| APARTMENTMulti-FamilySTATS | ||||
| RMLS #147 Lake Oswego | RMLS# 147West Linn | RMLS#148West Portland | RMLS#151Tigard | |
| Q1 | ||||
| # Complexes Sold | 0 | 0 | 2 | 0 |
| RMLS#8106826 | ||||
| RMLS#8101633 | ||||
| High Sold $ | $1,050,000 | |||
| Low Sold $ | $792,500 | |||
| Average Sold $ | $921,250 | |||
| Days on Market | 62 | |||
| % of Sold Price vs. List Price | 87.24% | |||
| Q2 | ||||
| # Complexes Sold | 0 | 1 | 5 | 1 |
| RMLS#8071839 | RMLS#8044472 | RMLS#8048377 | ||
| RMLS#9016980 | ||||
| RMLS#8101280 | ||||
| RMLS#7083661 | ||||
| RMLS#8106074 | ||||
| High Sold $ | $525,000 | $825,000 | $280,000 | |
| Low Sold $ | $525,000 | $320,000 | $280,000 | |
| Average Sold $ | $525,000 | $447,957 | $280,000 | |
| Days on Market | 300 | 276 | 275 | |
| % of Sold Price vs. List Price | 95.45% | 81.1% | 93.65% | |
| Q3 | ||||
| # Complexes Sold | 0 | 0 | 1 | 1 |
| RMLS#9008727 | RMLS#9011509 | |||
| High Sold $ | $251,400 | $249,000 | ||
| Low Sold $ | $251,400 | $249,000 | ||
| Average Sold $ | $251,400 | $249,000 | ||
| Days on Market | 154 | 189 | ||
| % of Sold Price vs. List Price | 100.6% | 89.89% | ||
| FOR SALE NOW | ||||
| # Complexes For Sale as of10-28-09 | 5 | 8 | 32 | 10 |
| Source: RMLS |
How To Calculate The Cap Rate
Short for capitalization rate, Cap Rate is one of the most widely used formulas by real estate investors when analyzing investment property. It’s a component of return on investment for an investment property as it relates to the Purchase Price and based on the amount of Annual Net Operating Income the property will yield (not including mortgage payments or considering income tax) in proportion to the purchase price of the property.
Cap Rate is calculated by taking the Annual Net Operating Income of the investment property and dividing it by the Purchase Price.
So, the Cap Rate formula is:
Cap Rate = Annual Net Operating Income (not including mortgage payments)/Purchase Price
Note: when calculating Cap Rate, a higher resulting number is better.
Cap Rate Example: Let’s say you purchase a property for $100,000 that produces an annual net operating income of $5,000; this property would have a Cap Rate of 5% (5,000/100,000). Based on this calculation the property will generate 5% of the purchase price in income (not considering income tax) per year. If you were looking at another property with a purchase price of $100,000 that produced an Annual Net Operating Income of $8,000, this would obviously be a better deal with a calculated Cap Rate of 8% (8,000/100,000).
Note: A typical Cap Rate for investment properties ranges between 5 – 8% with an 8% cap rate typically viewed by seasoned investors as the more desirable type of investment.
Source: In part – InvestorLoft
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).
I’ve written a couple of posts where MERS electronically kept track of notes rather than recording the title at the required county
recorder offices throughout the U.S. Now, it is not only becoming a problem but a headache for many states.
Real estate agents may also now be required to issue a disclosure to buyers when purchasing a short sale or foreclosure indicating there could be a “cloud” on the title in regards to not only first but also second mortgages.
I haven’t heard of it becoming a problem here in Oregon because we weren’t as involved in the sub-prime mortgage market as many other areas. However, it takes one person to test the validity of their foreclosure to bring the problem to the forefront. We may still see a wave of issues here locally as well. You can read more about it here. There are many states that are having lots of problems because of the electronic tracking that MERS initiated. I wonder who thought of that great idea??
Laws are written for a reason. To determine chain of title, it has always been that a transfer of deed needed to be recorded along with the note, in the appropriate county. Afterall, that’s what closing is – recording.
Somewhere, someone got the idea to by-pass that law, make a lot of money and just keep track of the note rather than processing the required and necessary recording. Now it’s coming back to haunt everyone from title companies, lenders, attorneys, courts, real estate agents and not to mention sellers and buyers. Just one more chapter in this foreclosure crisis that everyone now is becoming aware of and we’re probably not through yet.
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).
I had a different post written for today, but I will wait to post that until the end of October. In the meantime, our RMLS™ blog posted 
this information about first-time home buyers in Portland:
Homes below $400k make up 85% of sales in September
I recently read that in Phoenix, 93% of September Home Sales were below $400k. The author says that Phoenix is essentially a “tale of two markets”, one where homes in the lower priced spectrum are selling & where high-end homes are sitting.
We’ve looked at similar numbers before to see how the homebuyer tax credit was effecting the Portland market, so I figured it was time to take a look at these numbers again & see how we compare to the Phoenix sales by price range – here’s what I found:
% of Portland Home Sales by Price Range (September 2009)
| Sept. 2009 | % of Sales | Sept. 2008 | % of Sales | |
| $0-$150k | 190 | 10.4% | 115 | 6.6% |
| $150-$200k | 383 | 20.9% | 235 | 13.6% |
| $200k-$250k | 416 | 22.7% | 420 | 24.3% |
| $250k-$400k | 569 | 31.0% | 633 | 36.6% |
| $400k-$500k | 142 | 7.7% | 170 | 9.8% |
| $500k-$750k | 96 | 5.2% | 114 | 6.6% |
| $750k – $1 million + | 38 | 2.1% | 44 | 2.5% |
% of Sales by Price Range, Combined (September 2009)
As you can see, not quite as high as Phoenix, but still 85% of sales in Portland were below $400k, which is up about 4% from last September. Also note that sales below $250k are up 9.4% from last September. I suspect a lot of those sales can be attributed to the $8,000 tax credit (although some investors may also be cashing in on some lower priced homes as well). The tax credit is set to expire on November 30, and the debate rages on in Washington over its extension. It seems to have given the market here a boost, so it will be interesting to see how the market fares if/when it expires. If the tax credit does indeed expire, it would still take a lot for things to get worse this winter compared to last year. Last January we saw sales activity drag to the lowest total in the Portland metro area that we had seen since RMLS™ began keeping records in 1992. |
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).
The other day I wrote a post on property disclosures but wanted to expand that post in regards to bank-owned properties. Our Oregon
Association of Realtors® has this to say about ORS 105.465 and property disclosures:
In most cases, residential property sellers in Oregon must provide a Seller’s Property Disclosure Statement to each residential buyer who makes a written offer. The form used by the seller is mandated by state law. The seller’s representations regarding the property are based upon the seller’s actual knowledge at the time the disclosure statement is made and are not the representations of any financial institution that may have made or may make a loan pertaining to the property, or that may have a security interest in the property, or any real estate licensee engaged by the seller or buyer. Licensees are not responsible for misrepresentations by the seller unless they know of the misrepresentation and fail to disclose it.
A buyer should carefully review the seller disclosures and verify, or ask their licensee to verify, any statements of concern. REVIEW OF THE SELLER’S PROPERTY DISCLOSURE STATEMENT IS NO SUBSTITUTE FOR PROFESSIONAL INSPECTIONS.
Here in Oregon, sellers may claim an exclusion and are not required to complete a property disclosure under ORS 105.470 only if they qualify under the statute in these instances:
- The first sale of a dwelling never occupied, provided that the seller provides the buyer with the following statement on or before the date the buyer is legally obligated to purchase the subject real property: “THIS HOME WAS CONSTRUCTED OR INSTALLED UNDER BUILDING OR INSTALLATION PERMIT(S) #___, ISSUED BY_____.”
- Sales by financial institutions that acquired the property as custodian, agent or trustee, or by foreclosure or deed in lieu of foreclosure.
- Receivers;
- Personal representatives;
- Trustees;
- Conservators; or
- Guardians.
- Sales or transfers by governmental agencies. [1993 c.547 §7; 1995 c.198 §1; 2003 c.328 §5]
From Phyllis Harb in Los Angeles come these interesting scenarios which are happening in our local Portland real estate market with bank-owned properties as well:
1) A homeowner contacts their lender for a loan modification, they complete the necessary paperwork and to validate a lower value might provide the lender with information regarding the condition of their home. The lender denies the loan modification; the homeowner loses their home through foreclosure.
The lender lists the home with a local Realtor© as a foreclosure. The new buyer moves in and was never informed of the former owner’s claims (or even written reports) regarding the condition of the home.
2) A home is listed with a local Realtor© as a short sale. A buyer is found and escrow is opened. This buyer conducts a thorough inspection of the home. After the inspection, the buyer asks for a credit and the inspection report is forwarded to the lender. The lender/seller refuses to renegotiate and the buyer does not complete the sale, the homeowner loses their home through foreclosure. The new buyer moves in and was never informed of the written reports regarding the condition of the home.
3) A homeowner has major damage to their home caused by fire, flooding, mudslide or ???. Their insurance carrier pays a claim, and because the claim is over a specified dollar amount the check must also be endorsed by the homeowner and the lender. The check is endorsed, the lender has a record of the claim. The homeowner later loses their home in foreclosure. A new buyer moves in and was never informed of the written reports regarding the condition of the home.
Just be aware that the house you thought was a deal because it was a bank-owned foreclosure, may become the nightmare money-pit you never wanted or could afford and; ultimately, isn’t such a good deal afterall.
© Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.
ALL ABOUT…..Portland.Oregon.Real Estate by Betty Jung is licensed under a Creative Commons Attribution 3.0 United States License.
Based on a Blog at WordPress.
(For more local and national real estate information, go to www.bettyjung.com).
With the Tsunamis, earthquakes, flooding throughout the world, and our chances of rain increasing daily here locally, I thought it might be a good idea for you to check your insurance policies regarding coverage for flooding if you live in Lake Oswego.
At the end of 2007, FEMA completed a study of the Lake Oswego area and gave the City of Lake Oswego until June 2008 to adopt maps and codes necessary to change the flood zoning for properties surrounding the Lake, canals, Tualatin River and Spring Creek. The City’s map includes the area along the Willamette River that was inundated by water during our floods in February 1996. The new maps identify the areas as “Special Flood Hazard” areas that have a 1% chance of flooding in any given year, or what is more commonly known as the 100-year floodplain. These are also areas that are subject to what is known as a “base flood”.
More properties may need flood insurance. Federally-backed home loans require flood insurance if the property is located within an area that could be subject to the base flood. Although the new maps result in a higher base flood elevation, they also make it much easier to see if a house or other structure is actually located within the floodplain. If a house is not within the floodplain, a property may file a letter of map amendment with FEMA. If accepted, the letter would then eliminate the need for flood insurance. Lenders and underwriters now are becoming increasingly more cautious when making home loans.
In the 1980s, I remember an underwriter questioning a house sale of mine with a Canal address in Lake Oswego. The underwriter was requiring that the new buyer obtain flood insurance based merely on the address. However, the house was perched high on a hill overlooking the canal and there was absolutely no way the house could ever get flooded. Ultimately, we did succeed in getting that requirement waived. However, I am sure there will be future situations like this occurring with the new stringent lending/appraisal requirements.
Here are some issues as a result of those newer Lake Oswego changes:
- the value of property could be affected due to new elevation requirements
- you may be required to carry flood insurance even if it wasn’t required at the time of your original purchase or if you now refinance
- if a substantial remodel is planned, the entire structure will now be required to be at 104.5 feet elevation compared to the prior 103.5 feet
- new construction if it was built after 6/18/2008 will be required to be at that new 104.5 feet and subject to the new zones
If you are a buyer or seller of a lake or waterfront property, it is important you know about floodplains and insurance requirements.
© Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.
ALL ABOUT…..Portland.Oregon.Real Estate by Betty Jung is licensed under a Creative Commons Attribution 3.0 United States License.
Based on a Blog at WordPress.
(For more local and national real estate information, go to www.bettyjung.com).
The other day I received an email requesting further information on a blog post I wrote about radon back in January in N.E. Portland that has been called “Radon Ridge” by the media.
Her question to me was where in Northeast specifically were those areas. Attached is a map showing those zip codes reported by Portland State University to show high concentrates of radon in our area.
Radon is a natural gas that causes lung cancer and is this nation’s second leading cause of death. There are high levels of radon in an area that stretches from the St. John’s neighborhood in North Portland to the Rocky Butte area. You will see from the map below that most of Clark County and Vancouver, Washington are also included in the study and report.
When buying a house in Oregon it is essential, particularly in those areas, to have an inspection and radon testing done to determine the levels of radon present.
© Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.
ALL ABOUT…..Portland.Oregon.Real Estate by Betty Jung is licensed under a Creative Commons Attribution 3.0 United States License.
Based on a Blog at WordPress.
(For more local and national real estate information, go to www.bettyjung.com).
100% Financing – USDA Loan
If you thought the no money down, 100% financing was a thing of the past, there is still the USDA 100% loan here in Oregon that you
might qualify for. There are income restrictions and limits as to the location of the property.
The USDA Home Loan program is a great program offering 100% financing with no down payment or mortgage insurance for those who qualify. Below are the general eligibility requirements.
- Applicants must not have an adequate down payment to secure conventional credit without the USDA guarantee.
- To intend to live in the dwelling as a primary residence. Non-occupant and co-borrowers are not allowed.
- Must be selling existing home, if applicable.
- To be a citizen of the United States or not restricted from permanent residency.
- Have income less than the maximum allowed by the USDA Home Loan Program.
- Purchase a property in an Oregon USDA Approved Area
Most people living in rural areas qualify for USDA Home Loans. Also, many people living in medium sized cities as well as those living on the outskirts of major metropolitan areas may also qualify. Check this page to see whether your income qualifies you.
- A 100% No Money Down Loan
The USDA home loan program requires no down payment and you may finance up to 102% of the appraised value. Since the end of down payment assistance programs in 2008, the USDA home loan program is one of the only remaining 100% loan programs.
- There are no Limits as to the Amount You Can Borrow
The USDA Home Loan program will finance what you can afford to pay. Unlike conventional loans which are insured by Freddie Mac or Fannie Mae, there are no official loan limits. The amount of the loan will be directly related to your ability to repay the loan.
- No Mortgage Insurance
The USDA home loan program requires no up front or monthly mortgage insurance; saving you hundreds of dollars each month. With FHA loans, you have both an up front mortgage insurance premium and a monthly mortgage insurance payment.
- No Credit Score Required
Unlike most home loans, the USDA Home Loan does not require a credit score. Instead, borrowers can use things such as rental history, insurance payments or utility bills to verify their credit worthiness. Check the USDA Home Loan credit guidelines to learn more
- Seller Concessions Allowed
The USDA Home Loan program, there are no rules regarding closing costs and who pays what portions. Some loans limit the seller concessions, but under this program the negotiations are not controlled.
- Rural Areas Are Not Necessarily That Rural
The USDA Home Loan is guaranteed by the United States Department of Agriculture. People may wrongly assume that this loan is meant for farmers or ranchers. Many homes in smaller cities as well as those in outlying suburbs of metropolitan areas are also eligible. Check this link to see if the area you are wanting to purchase qualifies or input the address of a house here in Oregon.
Federal V.A. and State of Oregon G.I. Loans
If you’re a qualifying veteran, there’s still the 100% Federal V. A. Loan program. Here’s the information to see if you are eligible.
The maximum Federal VA loan eligibility in OREGON for a veteran is $104,250 and the maximum loan amount with no down payment is $417,000. U. S. Department of Veterans Affairs (VA) home loan guarantees are made to servicemembers, veterans, reservists and unmarried surviving spouses for the purchase of homes. VA guaranteed home loans offer several important advantages over most conventional loans including a guarantee that protects the lender against loss due to nonpayment by the borrower. A VA Certificate of Eligibility is required. To ask about home loan guaranty information, call the U. S. Department of Veterans Affairs (USDVA) toll free, 1-888-349-7541 www.homeloans.va.gov or call the Oregon Department of Veterans’ Affairs (Toll Free within Oregon) 1-800-692-9666 or from outside of Oregon 503-373-2085 www.oregon.gov/ODVA
For more than 60 years, the Oregon Department of Veterans’ Affairs (ODVA) has made home loans to veterans at favorable interest rates. More than 330,000 home loans have been made to veterans in Oregon. The ODVA’s State Veteran’s Home Loan program offers favorable interest rates and enables honorably-discharged veterans to purchase a single-family owner-occupied home. Eligibility for the program can be established prior to making actual application for a home loan. A veteran’s eligibility for the program expires 30 years after discharge from qualifying active duty in the U.S. Armed Forces. For program qualifications, contact the Oregon Department of Veterans’ Affairs. Toll-Free within Oregon, 1-888-673-8387. From outside of Oregon 503-373-2070.
Portland Development Commission
The PDC has quite a few financing options that you may not know about. You can contact them at the following for further information:
Portland Development Commission | 222 NW Fifth Ave | Portland, OR 97209-3859
Phone: 503-823-3200 | Fax: 503-823-3368
Mortgage Credit Certificate Program
The Portland Development Commission’s Mortgage Credit Certificate (MCC) Program works to provide first-time homebuyers with a federal tax credit. This program is a dollar-for-dollar tax credit on the amount of income tax you owe instead of a deduction to your taxable income. Better yet, this program is good for the life of your home loan!
You do not have to pay back the MCC if you remain in your residence for the life of your mortgage loan. The MCC’s credit totals 20% of the interest paid on your mortgage annually, so an MCC awarded to a $250,000 mortgage could save you about $3,000, or $250 each month.
If you become a homeowner this year or next year, you could save more or get more money back at tax time! For more information on how the Mortgage Credit Certificate can work for you, visit www.pdc.us/mcc or give PDC a call at 503.823.3400.
Buying A Fixer
The Portland Development Commission has monies available within the City of Portland for renovation work on houses that needs repairs or if you just want to make some improvements. With the right renovations, you may be able to add immediate value to your home or put your personal touch on a previously-owned home. Moreover, in situations where repairs are required before a loan can be closed, the PDC’s Purchase and Renovation Loan is the perfect solution. That’s because the appraisal is performed based on the work to be done, and the work is completed after the loan closes.
Buying a Foreclosure in Portland
There’s a new program from PDC that offers assistance to purchase a foreclosed/bank-owned homes in certain neighborhoods in the Portland metro area. These areas include parts of North, Northeast, and Southeast Portland, and parts of Gresham, Fairview, and Troutdale. It is a silent second loan up to 20% of the purchase price plus closing costs or up to $50,000. This amount varies depending on whether the home requires repairs. It is not a 100% loan, a down payment of $1,000 from a buyer is required.
If you sell within the first 5 years, you need to pay back a portion of the profit. The percentage of the profit to be paid back varies depending on how many years you live in the house. You do not need to be a first-time homebuyer to qualify but the home does need to be owner occupied. Income restrictions apply (no more than 120% of median family income) as well as debt-to-income ratio (45% or less) and liquid assets of no more than $15,000. Not only is there a location restriction as stated above, but the home must be a foreclosure in one of those areas.
Home Repair, Weatherization Help
Home Repair Loans – City of Beaverton, City of Portland
There’s also a Hope-4-Homes program in Beaverton to assist low-income homeowners with help in making home repairs. And, the City of Portland home repair loan information is also here.
Weatherization Project – Clackamas County
Clackamas County offers free services if you meet certain income and resident requirements for insulation, weatherstripping and more depending upon the condition of your home. If you have questions regarding this project or to see if you qualify contact:
Clackamas County Weatherization. (503) 650-3338
© Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.
ALL ABOUT…..Portland.Oregon.Real Estate by Betty Jung is licensed under a Creative Commons Attribution 3.0 United States License.
Based on a Blog at WordPress.
(For more local and national real estate information, go to www.bettyjung.com).
Recently I wrote a post about whether cash was still king here in real estate transactions. It showed that conventional financing, in fact,
had been the norm recently for buyers of real estate in the U.S.
I’ve written several posts on foreign buyers in the U.S. as well. The future dictates there will be more foreign buyers coming into the U.S. to purchase a piece of the American Dream and that new immigrants will be the majority of our future new home buyers. However, foreign buyers are still needing cash to purchase any real estate here in the U.S. according the most recent report by NAR (National Association of Realtors®):
“Pricing
The median price for a home paid by foreign buyers for the year ending in May 2009 was $247,100, higher than the overall national price of $198,100 in 2008. A significant number, 45.8 percent of foreign buyers, paid cash for their property, in part because obtaining a mortgage was more difficult than in prior years. The total dollar volume was $38.7 billion.
Origin of Buyers
U.S. laws do not restrict or scrutinize most property purchases by foreign nationals. There are few barriers to owning property here, unlike transactions in many other countries, although immigration laws prohibit foreigners from remaining in the U.S. continuously for more than six months without a special visa. In addition, international investors are afforded the same property rights as those enjoyed by U.S. citizens.
The top five countries of origin for foreign buyers were:
- Canada, 17.6
- United Kingdom, 10.5 percent
- Mexico, 9.8 percent
- India, 8.5 percent
- China, 5.4 percent
The percentage of buyers from Canada, the U.K., and China declined from the previous study, while purchasers from Mexico and India increased. Although most buyers were from North America, Europe and Asia, buyers from Latin America, Africa, and Oceania also purchased U.S. real estate.
Most Popular States
Foreign buyers were active in every state and the District of Columbia, with the most popular states being Florida, which accounted for 23.0 percent of all foreign purchases; California, 13.0 percent; Texas, 10.7 percent; and Arizona, 7.1 percent. These states are major gateways into the U.S. from other countries and also offer relatively mild climates.
California saw a notable rise in foreign interest as affordability conditions improved markedly in the state last year. Florida was the most popular state for European and Latin American buyers, while Asian buyers are drawn to California.
Property Types
The study shows 69 percent of international purchases were single-family homes, while condos accounted for 18 percent. Townhomes made up 8 percent of transactions, with commercial property at 4 percent. Nearly 46 percent of properties were in suburban areas and 25 percent in urban environments. The rest were evenly split between resorts and small towns or rural areas.”
Source: NAR®
© Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.
ALL ABOUT…..Portland.Oregon.Real Estate by Betty Jung is licensed under a Creative Commons Attribution 3.0 United States License.
Based on a Blog at WordPress.
(For more local and national real estate information, go to www.bettyjung.com).
You’re searching for a new house, condo or other real estate on the Internet and you feel confident you can find your “dream” house without the aid of a Realtor®. You want to “go it alone”. If you are only relying on search engines, such as Zillow, Trulia or Realtor.com® for example, you may miss finding the house of your dreams altogether.
Last weekend at an open house a buyer came through indicating she was working with a Realtor® but was also looking on her own. She asked a few questions about the area and I mentioned some properties for sale. Not only did she not know where the areas were, but she had no clue on how to find them. By doing that kind of search, she’ll keep running around town searching but never finding what she’s looking for.
Did you know?
***Our Realtors’® Multiple Listing Service (RMLS™) has the most accurate up-to-date listings.
***You might think the Internet posts property listings instantly, however, Zillow, Realtor.com® or Trulia for example, update from our RMLS™, do so at intervals and lag behind. They could lag behind by a day, a week or longer. If a property came on the market in the morning, an offer could have been received and gone sale pending long before the third-party site ever posted the property for sale and you will have missed it.
***The problem with an “MLS” is that there is no nation-wide “MLS”. Realtor.com® receives its listings from Realtor® boards and MLS service providers around the country. Not everyone is mandated to use the same software and same system. Some local boards and servicers have the option whether to reciprocate their listings with other organizations. Realtor.com® then takes these millions of listings and tries to process them and puts the information out to the public. It is a logistical and technological nightmare. I have known of instances where it has taken over a week for a listing to show up on a national search site and many times the information such as price, bedrooms, etc. are inaccurate. That has happened to me more than I can count with my own listings. I will do a search on the Internet, and some other search site picks up the property listing that’s for sale, but the data is all wrong. Yet, it is my property listing and I have the information correctly posted. I’ve seen my listings even appear on other agents’ sites within my own company with inaccurate information because that agent appears on a different search site that didn’t pick up the accurate data either. The third-party sites also don’t seem to remove some old listings with inaccurate data from past agents. Case in point was one of my listings. It had been listed before by other agents over the history of the house and the “old” listings had never been removed by either the agent or Zillow.
***Many of the sites let you set up your own search parameters but they are limited. Is a bedroom listed as a den or can it be a 4th bedroom? Does the bonus room have a closet that can be used as a bedroom? Are the houses listed as 3 bedrooms instead of a potential for 4th or 5th? Even on my site on-line, you can enter your own parameters. Of course, the more information you include in your search the more results you will obtain, however many more houses likely will be eliminated entirely.
*There have been many occasions when a property appeared when doing my own search for a client but didn’t appear on theirs. That’s because we as agents have many more search parameters in our RMLS™ available to us than the public. The IDX feed (stands for Internet Data Exchange) and provides the searchable fields you’re interested in filtering. On third party sites not every database field in our RMLS™ is searchable by the public. By searching those IDX-enabled third party sites you could miss many property listings because they just won’t get captured.
***A daily “hot sheet” is available to us Realtors® through our RMLS™ where we see the activity instantly 24/7. If a property went sale pending, back on the market, or went sale pending all in the course of one day (which happens in a hot market or certain market areas) most of the websites can’t keep up with that fast-paced activity. Third-party sites show properties that are already in escrow (sale pending) as sold. Once they get sold, the property falls off their national listing websites. That property could be a sale fail and come back on the market, but the search engine wouldn’t show it as active because it had fallen out of their system.
***Further, houses that are for sale don’t always come on the active market. There have been many times in my career where one of my listings sold in the office or by another agent I knew by word-of-mouth. Other times I have called a client of mine who I knew was looking for a property just like it. You’d never find those property listings in a search on Zillow, etc.
Of course, I’m the Realtor® talking and am biased. Your best bet is to become a client of a Realtor® who has your best interests in mind to help find that right house for you. You may not find your dream home on Zillow, Trulia, Realtor.com, or Craigslist because it may not show up on their site, ever.
© Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.
ALL ABOUT…..Portland.Oregon.Real Estate by Betty Jung is licensed under a Creative Commons Attribution 3.0 United States License.
Based on a Blog at WordPress.
(For more local and national real estate information, go to www.bettyjung.com)
Guest Author:
Bob Chiodo, CFP
Equity Home Mortgage
*Estimated Rates for the week of September 22, 2009
- 30 year fixed=4.875-5.000
- 30 year jumbo=5.50 to $500k; 5.75 to $600k
- 7/1 ARM=4.50 – 5.25 various programs are available
- FHA/VA=5.00 – 5.25
- OR Vet=4.75 w/1.50 – 4.875 w/1.00
Rates are still holding steady. We have been in this current range for quite a few weeks. We have seen the recent Treasury auctions go very well, the Fed is still very engaged in the mortgage backed securities market and inflation isn’t on anyone’s radar. There is a very good chance that we can maintain these low rates through the rest of the year.
We are still seeing credit standards tighten with recent changes being announced by FHA and Fannie Mae. But even with HVCC, MDIA, and all the other changes, we are still getting deals done. When everyone works together we can still close loans within 30 days. It also appears that most companies are setting themselves up for what will hopefully be a big push in the first time homebuyer market before the expiration of the $8000 tax credit. With the current low rates, we could see some strong activity over the next month.
We had some good news – albeit temporary – that FHA has postponed the cancellation of the condo approvals. Currently, all condominiums that were approved prior to November of 2008 will no longer be eligible for FHA insurance unless they are re-approved. The re-approval process, which hasn’t been fully announced yet, will require approximately 15,000 complexes in FHA’s Santa Ana’s region to gain approval. There are some requirements that will pose as an obstacle for re-approval. These include the requirement that no more than 30% of the units can have FHA financing, all complexes need to have a current reserve report (I just reviewed one that was 135 pages – it couldn’t have been cheap to do) and the Association needs to have 60% of the report’s projected reserves in cash – verified cash. I was advised that in the State of Washington there could be over half of the complexes without the reserve requirement. I have a feeling that a large amount of the Associations won’t have the reserves on hand which means re-approval will be difficult, at best. Additionally, no more than 15% of the units can be delinquent on their association dues. Currently, FHA is out 11 weeks on their regular approval process. We can only imagine how bad the turnaround time will be when we all try to get the 15000 complexes re-approved. I guess 30 day locks are out of the question. My take on this is that we will go through a few months of some real tough times on the condos until FHA figures out a better way of doing things.
Since we are talking about changes, here are some recent notes from Fannie Mae’s announcement yesterday. The maximum allowed debt ratio will be 45% with some exceptions to 50%. Most of the industry is already following these guidelines but there are a few out there that weren’t. There are tougher requirements for reserves on second homes and investment properties. And, if reserves are in stocks, bonds, and mutual funds only 70% of their current value can be used to meet the requirements. Only 60% of retirement account balances will be available to meet those same requirements.
Fannie has also made it more difficult to qualify after a borrower has filed a bankruptcy or when they have experienced a short sale, foreclosure, or deed-in-lieu of. I’ll cover more about these in my next update.
Granted, a lot of these changes can make the overall tone of my update pessimistic but I have always been a firm believer that it is better to have all of the information that’s out there. How else can we plan our business? Besides, before we know it, these times will be over and we will be all rolling in the bucks again! Enjoy the rest of your week. Thanks.
*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.
© Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.
ALL ABOUT…..Portland.Oregon.Real Estate by Betty Jung is licensed under a Creative Commons Attribution 3.0 United States License.
Based on a Blog at WordPress.
(For more local and national real estate information, go to www.bettyjung.com).
There’s been alot written and many debates over the first time home buyer tax credit whether to extend, or not to extend it; to raise the limit, or not raise the limit; to open it up to all buyers or not to open it up to all buyers. Everyone has an opinion and none more than the economists and many Realtors®. You hear the arguments for and against. There are several bills being considered as I write this post and none have been finalized or approved as yet with the November 30th deadline looming. 
I am sure there will be continued debate.
What’s interesting to me is those economists against it are the very people who didn’t see the financial crisis or housing decline coming. Remember it’s been the economists who have said don’t invest in real estate but buy stocks instead. For the most part, many of those Realtors® who are in opposition, weren’t around selling real estate in the 1980s, don’t remember how bad it got or can still get, or they have forgotten. I haven’t forgotten as I was selling real estate here in the 1980s.
Many people feel the home buyers’ tax credit shouldn’t be extended. There are those that feel government shouldn’t get involved and let the market work itself out. There are others who say the focus should rather be on jobs than handing people more money. Like everyone else, I also want our employment situation to improve. There should be less unemployment, with the job market and businesses here in Oregon improving and new industries coming to Oregon to invest. Our unemployment numbers have doubled in Portland, and Oregon overall, since last year. It’s not that I don’t think there should be more emphasis in getting people back to work, because I do. Without jobs people won’t be able to afford houses or much of anything else.
Most of us don’t want bigger government, and we certainly don’t want government to have a “hand” in our lives, nor do we want the long-term debt. We also all want more jobs, more industry, a better economy. On those things we can all probably agree. In normal times, we wouldn’t favor such government involvement, but these are not normal times. I feel strongly that expanding and extending the tax cedit will not only help stabilize housing prices, but will help us from falling back into recession.
In addition, I believe extending the home buyer tax credit to all home buyers and increasing its limit would help nudge housing on a road to recovery. Although expensive, the tax credit went to tax payers and not the guys in their pin-stripped suits on Wall Street. It helped a new buyer get into their first home thereby stimulating further outlays of money into the economy by purchasing additional goods and services. It helped the seller move on and possibly avoid yet another foreclosure. The tax credit put others to work – contractors, landscapers, builders, etc. that have been in dire straits. It helped keep communities intact and retain their sense of pride, prevented houses from going in disrepair and prevented more children from possibly being homeless. It helped decrease the number of houses on the market for sale. Where are these not good things? Albeit, some will say at what cost?
Real Trends just completed a survey about those buyers who have already used the tax credit:
- 94% were aware of the federal first-time buyer tax credit.
- 82% listed the ability to obtain financing as “very important” or “most important.”
- 91% percent reported low home prices as “very important” or “most important.”
- 26% planned to use the tax credit to purchase home furnishings
- 12% planned to use it for home improvements.
As stated above, there is no final outcome to this debate as yet. I attended a meeting of our Portland Board of Realtors® a couple of days ago where a Washington D.C., National Association of Realtors®, Government Affairs representative spoke on the first-time home buyer tax credit among other things. He indicated that more than likely the credit will be extended until June 2010, however, no indication yet as to whether it will be increased in $ amount and open to all buyers. The recovery is not certain yet. Our market is still fragile. Foreclosures remain at record levels, unemployment is still rising and home prices are not rebounding. An extended and expanded tax credit would provide continued momentum and keep us on the road to a full recovery – at least that’s my opinion.
© Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.
ALL ABOUT…..Portland.Oregon.Real Estate by Betty Jung is licensed under a Creative Commons Attribution 3.0 United States License.
Based on a Blog at WordPress.
(For more local and national real estate information, go to www.bettyjung.com).
Betty Jung
Market Update: Financing Stats & The Debate Goes On
October 21, 2009 in Buying, Commentary, Financing, Credit, Debt | Tags: All About Portland Oregon Real Estate, Betty Jung, www bettyjung.com | Leave a comment
The major players in the housing market sent their letter to President Obama requesting that the home buyer tax credit be extended for
one year, that it be increased in amount and be made available to all home buyers. There’s been a final push in favor of the tax credit.
Mark Zandi, the Economist has said extending the home buyers tax credit and increasing its amount makes sense. We haven’t seen too many economists in favor of the credit, but I agree wholeheartedly with Zandi and if you’ve been reading my posts you know that I believe if you don’t fix housing, you won’t fix the economy. In case you missed it, here’s the news story.
However, yesterday USA Today reported that a housing credit isn’t needed and that 80% of financing for first-time home buyers is with FHA financing. I had written a post not too long ago on that very subject that in fact FHA financing in the three areas my blog covers wasn’t the primary source of financing. I decided to do another check since we are in the middle of the frenzy for first-time home buyers to purchase in order to get their tax credit.
For the month of September, RMLS™ #147, 148 and 151, showed that once again the bulk of purchases were not FHA financing. The bulk of the transactions in the above areas this blog covers were in fact Conventional financing.
(The stats aren’t broken down by RMLS™ for West Linn and Lake Oswego. The totals also include both residential detached and condos, townhouses and attached dwellings).
Methods of Financing
Lake Oswego
/West Linn
West Portland
Tigard
With the large number of houses and condos for sale in these three areas, I still feel that a tax credit should be extended, increased and open for all buyers.
© Copyright 2008-2009 Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.
ALL ABOUT…..Portland.Oregon.Real Estate by Betty Jung is licensed under a Creative Commons Attribution 3.0 United States License.
Based on a Blog at WordPress.
(For more local and national real estate information, go to www.bettyjung.com).