December Real Estate Market Action Statistics

Statistics for November, released this month. Check out what's been going on in the local Portland real estate market.

Opportunity Knocks -- Especially in a Slow Economy

Did you know that many times more wealth is built during slow economic times than during the years of flourish? It's true. Consider a few of these things and you might agree with us.....now's the time that opportunity is knocking....are you brave enough to make a move?

Even in a battered economy, there are things to be thankful for -- especially if you're opportunistic and bold. Here are a few:

Cheap real estate. The housing bust triggered the whole economic downturn, but sooner or later it will produce some juicy bargains. Nationally speaking, home prices have already fallen 21 percent from their 2006 peak --a dream home could be just around the corner.

Fire sales. Consumers can snag some of the lowest prices ever on many big-ticket purchases.

Desperate car dealers. Car sales have collapsed, and with unsold models piling up on dealer lots, even popular vehicles are on sale.
Undervalued stocks. If you have any cash left after the recent rout--and a dose of gumption--you might be able to buy stocks at the cheapest prices in a generation.

A return to simpler times. Americans are starting to take up retro habits that evoke moments from the past. Riding a bike, learning to cook and using hand-me-downs are also a greener alternative.

A lower tax bill. President-elect Barack Obama has proposed a slew of tax cuts for middle-class consumers, and, with the economy desperate for a boost, it could be one of his first orders of business after taking office in January.

So don't be "down" about a down market....take a look at the bright side and seize the moment to make some bold moves for the better. Buy your first investment property. Stock up on cheap stocks. Get a great deal on a car. Just don't be shy. The time is now.

Great News for Rates!

So, some good news comes our way....one of our lenders' 30 year fixed conventional was down to 5.25% today. Yay!

Finally Treasury and the Fed have opened the door all the way. After fiddling with the credit crisis for months with drips and drops of help, the government has swung into high gear and likely will not let up until the problems of frozen credit are thawed and not just anticipated as Paulson and Bernanke have been expecting with each 'plan'.

This morning's announcement that the Fed will purchase as much as $600B in debt issued or backed by government-chartered housing-finance companies; and will also set up a $200 billion program to support consumer and small-business loans finally gets to the core of it. Banks are being strangled with mortgage delinquencies and bad debts on most loan programs. Up until now the government has resisted the obvious, get the junk off the books of banks. Defaults on single-family mortgages and construction loans continued to accelerate in the third quarter as banks and thrifts added $50B to loan loss reserves for the second consecutive quarter. After closing 22 banks this year, FDIC officials said the deposit insurance fund has declined to a 0.76% reserve level and the FDIC board will meet in December to consider a hike in insurance premiums. The FDIC's problem bank list has jumped to 171 institutions with $115.6 billion in assets, up from 117 institutions in second quarter.

A re-fi boom coming? Not out of the question if the momentary euphoria in MBSs holds. Not like the previous boom but good enough to generate increased volume. Not going to jump for joy yet but any possible positive news is very welcome in this environment.

*Stats and figures courtesy of Director's Mortgage, right here in Portland Oregon.

What is a buyer's market?

The American Dream is On Sale

I've had people ask me what makes the current market a real buyer's market. It's more than just the opportunity to own your own home or investment property, it's about buying in the best buyer's market we've seen in 34+ years. It's true, go ask anyone who's been in real estate since the mid 1970's. Here are a few items that make NOW a great time to buy:

1. Inventory: it's like being a kid in a candy store. If you love real estate, this is an exciting time to be looking to purchase. There's a large amount of homes to choose from. Things take longer to sell, so you can take your time selecting the right place for you. Plus, with more to choose from, there's just more chance you'll get exactly what you want. Gone are the days of settling for a property simply because of a school district or zip code. Pick the right home for your unique lifestyle needs.

2. Rates: We all know that securing a mortgage is the way MOST of us still buy a home. So, wouldn't it make sense to borrow money at a low rate? Of course, you still get the benefit of a tax shelter at year end.

3. Slow sales = motivated sellers: The thing about sellers needing to sell is that it creates opportunities to buy at record lows, or to get additional benefits like a flat screen TV or stainless appliances thrown in to sweeten the deal. Now, Jaimy and I do not condone taking advantage of sellers who are in a bind. But, the truth is, there are some amazing deals out there. We see them every day! Call us, we'll be happy to show you the best deals in different neighborhoods all over the Portland metro area.

4. Ownership: Same reason your folks bought their first home, owning a piece of real estate is part of the American Dream. And folks, right now the American Dream is ON SALE. It's such an amazing time to buy at 4-8% under list price in some cases...while the Portland market as a whole is still appreciating, albeit in smaller percentages than we've enjoyed over the last 8 years. However, if you plan to own a home -- paint the walls, knock down a few, update the kitchen cabinetry, change out the light fixtures....all the fun stuff that comes with making a home your own -- then NOW is the time to buy.

I am not the only one doing so or saying so....even "The Donald" is buying up real estate left and right. So are foreign investors. Check the stats, many overseas buyers are coming over and buying up their own American Dream.

Did you know that down markets like this one often make people MORE money than flourishing ones? Yep, it's because the savvy buyers buy LOW and sell HIGH. Um....it's low right now. So buy!

(the humble opines of a freelance writer turned real estate broker...always real estate investor)

Portland Real Estate Market Statistics At-a-Glance

Time to Vote!

Whomever you opt to vote for...the time is now! It's election day 2008.

It's too late to mail in your ballot in Oregon. Drop yours off before 8 pm tonight. For details on where to take your ballot, you can go to KATU's web site:

http://www.katu.com/news/election/33727169.html

Way to exercise your right to vote!

Time Change Ahead, Fall Back....

Just a friendly reminder to set your clocks back 1 hour:

Sunday, November 2, 2008 at 2 a.m.

Best wishes to you this beautiful fall season!

Existing Home Sales Rise on Increased Affordability*

Existing-home sales increased last month as buyers responded to improved housing affordability conditions, according to the National Association of Realtors®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 5.5 percent to a seasonally adjusted annual rate¹ of 5.18 million units in September from a level of 4.91 million in August, and are 1.4 percent higher than the 5.11 million-unit pace in September 2007.

Lawrence Yun, NAR chief economist, said more markets are seeing year-over-year gains. “The sales turnaround which began in California several months ago is broadening now to Colorado, Kansas, Minnesota, Missouri and Rhode Island,” he said. “The South was hampered by much lower home sales in Houston in the aftermath of Hurricane Ike.”

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said low home prices and low interest rates have been attracting buyers. “This is the first time since November 2005 that home sales have been above year-ago levels,” he said. “Credit tightened at the end of September, but the improvement demonstrates that buyers who’ve been on the sidelines want to get into the market to make a long-term investment in their future.”

If you woner how this market could benefit you as a buyer, give Jaimy and Sherine a call today. We can help you find a terrific deal in Portland, one of the countries' best real estate markets.




*Article courtesy of Landover Mortgage.

Keep Your Heating Bills Down and Your Home Values Up This Winter

These simple tips for home maintenance mean your home is kept in tip-top shape -- ideal for those considering selling next Spring.

Plus, by winterizing early, you can cut on your heating bills through the chilly Northwest winter.

Rates and Market Updates

"As noted this morning, investors should be getting interested in mortgages now; today saw strong buying in mortgages and narrowing the spread between the 10 yr note note that had expanded to 290 basis points, against the norm of about 150 basis points. Treasuries were better today but not nearly as strong in price gains as the mortgage market. Investors have to begin to see value in mortgages which are now as about as safe as treasuries (the only small fly is delay in re-cooping interest and principal payments in foreclosure action). Normal MBSs have yields about 40% higher than 10 yr notes."

From our partners at Director's Mortgage, Portland Oregon.

Market Stats for September '08

Terrific Holiday Recipes for Delicious Treats

Here are some favorite recipes ... let us know how they turn out!

Rates and More

10 yr note -- 101.14 +5/32 3.82% unch * Dec 10 yr note contract 114.27 -10/32
5 yr note -- 100.17 +9/32 3.00% -3 BP
2 Yr note -- 100.17 +5/32 2.08% -7 BP
30 yr bond -- 101.17 +16/32 4.41% -3 BP * Dec 30 yr bond contract 117.01 -14/32
Libor Rates -- 1 mo 3.206%; 3 mo 3.211%; 6 mo 3.465%; 1 yr 3.536%
30 yr FNMA 5.5 Nov -- 99.26 +3/32 (-11/32 frm 10:00)
15 yr FNMA 5.0 Nov -- 99.14 +2/32 (-11/32 frm 10:00)
30 yr GNMA 5.5 Nov -- 100.04 +3/32 (-11/32 frm 10:00)
15 yr GNMA 5.0 Nov -- 99.19 +1/32 (-12/32 frm 10:00)
Dollar/Yen -- 105.33 -0.13 yen
Dollar/Euro -- $1.4705 -$0.0089 (dollar better)
Gold Dec -- $900.00 -$9.00
Crude Oil Nov -- $106.80 -$2.57
Goldman-Sachs Commodity Index -- 660.85 -12.02
DJIA -- 10,854.17 -161.52
NASDAQ -- 2153.34 -25.64
S&P 500 -- 1188.22 -18.87

*Prices sourced from Reuters PLC

Portland Area, At a Glance

The Latest Market Action Report from RMLS

Housing & Economic Recovery Act of 2008!

Great news! The president just signed into law the Housing and Economic Recovery Act of 2008. This is good news for buyers and sellers alike.

Summary provided by the National Association of Realtors:

H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:

GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.

Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.

Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.

GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.

Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.

National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.

CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.

LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.

Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.

Is Today the Day?

Have we reached the real estate market turning point?

Portland metro/Vancouver/Beaverton is starting to see multiple offer situations, offers higher than asking price and lookers who were fence-sitting, turn into buyers.

Why? According to Coldwell Banker, Barbara Sue Seal's Certified Real Estate Success Coach, Ned Stafford, licensed in real estate since 1971, today marks a turn for the better. In addition to the above signs he witnesses throughout the Coldwell Banker offices, he attributes a turning point to the Dow going up 277 on Wednesday and up 207 today, plus oil decreasing in price.

What do you think? Is July 17 the turning point?

Nehemiah Program in Jeopardy!

Non-Profit Downpayment Assistance Programs in Jeopardy,
Take Action Today to Support Downpayment Assistance!

Nehemiah Corporation of America, a national non-profit organization, has helped 290,000 families who would have otherwise been locked out of homeownership due to lack of downpayment funds.

The Department of Housing and Urban Development (HUD) has re-issued a proposed rule which would threaten the opportunity for low to moderate income families to access downpayment assistance by eliminating all private downpayment assistance programs.

Preserve private downpayment assistance programs for families who are credit-worthy, but lack the savings necessary to fulfill their homeownership goals, protect the already fragile economy, improve the current housing market, and save jobs.

Take Action Today to Support Downpayment Assistance.

Go to:
http://capwiz.com/nehemia/issues/alert/?alertid=11598811

Portland Rocks, Here's Proof

And we aren't the only ones who think so....consider:

"Study Predicts Job Growth, Cites High Quality of Life in Portland Area

It’s good to live in the Portland area! Greenlight Greater Portland, a consortium of private sector leaders, has created a “2008 Greater Portland Prosperity Index” that notes the region’s potential in a range of business, demographic and quality of life metrics compared to nine other metro areas across the western United States.

Key findings include:

* Greenlight predicts that the Portland region will add 100,000 jobs in the next five years.
* Portland’s gross regional product is predicted to grow 29.1 percent to $144.1 billion in the next five years, behind only that of Austin, Texas.
* The Portland region boasts the second-lowest average price for industrial space among the nine regions, at $6.34 per square foot. Only Denver's is lower. The price in several California cities is more than double that of Portland.
* Average Class A office price per square foot is $25.30, lower than all other cities except Albuquerque and Austin.
* Overall cost of living is cheaper than in Seattle and the five California cities surveyed.
* Average rent for a one-bedroom apartment is $875, third-lowest, behind only Denver and Albuquerque.
* Median housing price, at $295,300, is fourth-lowest.
* The population in the Portland-Vancouver-Beaverton area is predicted to increase 8 percent to nearly 2.4 million people in the next five years.
* The study also measured quality of life. Portland leads all 10 study cities in number of bookstores per million residents (135), wineries per million residents (69) and brewpubs per million residents (23).

The index, done in conjunction with Philadelphia-based forecasting firm Global Insight, compares the region to nine other metro areas: Seattle, Denver, Sacramento, San Francisco, San Jose, Los Angeles, San Diego, Albuquerque and Austin. The study identified several local growth sectors, including professional, financial and information services and construction and natural resources. Portland's professional and business services sector will grow 23 percent to more than 170,000 workers by 2013."

What does this mean to you? Invest in Portland now, watch the growth happen and enjoy the gains. Contact us for details on the best real estate deals in town.

(stats courtesy of Portland Metropolitan Association of Realtors)

Buy Low, Sell High

Considering buying in Portland? Consider this:

The Portland metropolitan area is a very stable housing market. According to top economic forecaster Dr. Lawrence Yun, the area has one of the lowest mortgage default rates. Plus, Dr. Yun asserts that "buyers can find great bargains due to historically low mortgage rates and good inventory."

You've heard the adage "Buy low, sell high" -- right? Well, now's the time to buy. We're at the low point of the pendulum swing, with really low mortgage rates and many opportunities to find the precise home or investment you desire.

Call today, start investing for tomorrow.

FHA loans are in the news

As you know, FHA loan limits recently increased. Since then, FHA loans have really stepped up to the plate.

| Did you know that in the last few weeks, many lenders have said FHA has taken over as one of the biggest percentage of loans they now write, where it used to be one of the smallest? Yes, nearly 80% of one lender's loans are now FHA (up from about 2% a year ago).....which is good news for homebuyers and sellers as it means there are solid loan options that suit our Local real estate needs.

| Did you also know that the current loan limit increases are Temporary and set to expire at the end of the year? If you qualify for an FHA loan, it's time to ACT -- before these higher limit loans are no longer available. And, if you're a seller, be sure your home falls into an FHA loan limit in order to expand your pool of potential buyers.