Tax Day Freebies!! Incorporate Or Form an LLC Free on Tax Day

April 15th.  Either you love it, or you hate it.  Some people are off dreaming of what kind of luxury vacation they will take on their tax refund, and some of us, well, probably most of us, are debating canceling cable or constructing meal plans around ramen and bologna to help ease the pain of writing a check. 

Regardless which camp you fall in this year, be sure to check out Tax Day Freebies! Because writing a big check or booking travel plans can only be made better when done with a free Arby's curly fries.

Own real estate? Perhaps a slurpee won't help you out, but did you know MyCorporation is offering an "Incorporate or Form an LLC Free on Tax Day". Real Estate is a great vehicle for investing, one of the best ways to protect it and yourself is to keep your properties in an established LLC (Limited Liability Corporation). 

While the Free LLC and Tax Filing Assistance are great, I can't help but love this companies spin on April 15th. I'm not sure what I would do with an apple scented urinal screen, but boy do I like the sentiment!

MVPee.com is giving out 1,000 “Abolish the IRS” apple scented urinal screens FREE to the first 1,000 people that request (+ $3.00 shipping/handling). 

Portland's real estate market off to a good start in 2013

Sellers rejoice. Buyers be swift. We can speculate that rising prices will gradually lead to more inventory for three main reasons: (1) More new construction is on the horizon with the rising home prices. In fact, housing starts are at the highest level since mid-year 2008, (2) the talk of rising home prices will encourage many home owners to sell, and (3) When looking at seasonal patterns in real estate, Spring brings prospective buyers and sellers out of their winter hibernation. Let's hope more sellers are ready to move on from their existing home this spring as, although more homes are coming on the market, they are selling fast and stable buyer demand continues to apply pressure to the already short supply of available homes.

January Highlights 

The Portland real estate market got off to a good start in January 2013. There were 2,438 new listings, an 89.6% increase over December 2012 listings of 1,286, but 6.7% fewer than the 2,613 listings of January 2012.  

Although fewer than December’s 1,760 closed sales, the 1,344 closed sales in January 2013 are the most for the month of January since 2007, when there were 1,594 sales. There were 1,906 offers accepted, also the most in January since 2007 when there were 2,544 pending sales. Pending sales increased 37.7% over the previous month when there were 1,384.

Active inventory continues at historic lows, rising only fractionally to 6,366 homes on the market—a mere six more listings than December 2012. Unsold inventory remains low at 4.7 months.

Market time continues to shrink. At 114 days, January’s total market time has lowered by 16.3% from an average of 136 days on the market in January 2012.

Average and Median Sale Prices 

The average sale price in January was $287,700, and the median sale price was $248,000. Prices are rising over time. Comparing the average price of homes in the twelve months ending January 31st of this year ($277,000) with the average price of homes sold in the twelve months ending January 2012 ($262,900) shows an increase of 5.4%. In the same comparison, the median has increased 7.3% to $236,000 in the last twelve months from $219,900 in the preceding twelve months. 

Courtesy of RMLS Market Action Report

Steve Roesch | Principal Broker, Owner
PDX Home Group, LLC
o. 503.748.8387 | c. 503.318.6351 | f. 503.748.8307
Steve@PDXHomeGroup.com

www.PDXHomeGroup.com  |  Find Your Next Home  |  Free Market Report

What Does 2013 Hold for Portland's Real Estate Market?

Outlook is positive, as we are thrilled to report that 2012 was PDX Home Group's best year yet. It's no surprise that the market has seen it's ups and downs over the last few years, and although challenging, it has made us the team we are today. Through the trials and tribulations of a tough market, we have come out the other side with more knowledge, experience and capabilities than any book, seminar, or class can teach. Most of all, our appreciation goes out to our clients; repeat, referral and new - couldn't have done it without you and your real estate dreams. So here's to a great 2012, and looking forward to an even better year ahead! The following is a list of our team's accomplishments this past year:

PDX HOME GROUP 2012 TRANSACTION MAP:

OVERALL:

1. 67 closed transactions 
2. Repeat Clients/Referrals accounted for more than 50% of our Business
3. 5th Ranked team in NW Region of Keller Williams
4. $15,707,000 in sales volume
5. Our team expanded by 50%
6. 28% of sales were investment transactions

BUYER REPRESENTATION

1. We saved our Buyers an average of 3% on their home
2. 34 Buyers represented (50.75% of total transactions)
3. $8,681,690: total volume of homes purchased by our buyers
4. Short Sale or Bank-Owned purchases accounted for 35%

SELLER REPRESENTATION

1. We sold homes 75 days faster than average market time
2. Our Sellers received on average, 102.32% over list price
3. 33 Sellers represented (49.25% of total transactions)
4. $7,025,300 in volume of homes sold

CONFIDENCE GAINED BY BUYERS AND SELLERS ALIKE

Recently, due to a steadily improving economy and housing market, we are seeing more buyers and sellers coming together and overcoming obstacles presented by the Portland market. First time home buyers and move-up buyers are feeling more confident about their decision to purchase. Home owners looking to sell and buy a larger home are have less fear, as they realizing that selling their existing home is now a realistic goal. In addition, Sellers have come to better understand that the major correction in the real estate market has brought prices to where they were about 10 years ago.

EFFECTS OF LOW HOUSING INVENTORY

It is good news for Portland home sellers that the inventory of available homes is down about 45% from 2 years ago. This has helped create a much favored market for sellers as prices begin to increase. The average sale price in 2012 for a Portland area home was $275,000 up from $263,000 one year prior. The total market time dropped 21.5% from 143 days last year to 112 days in 2012.

Prospective buyers are overcoming the shortage by arming themselves with a real estate agent sooner in the process in order to stay ahead of the game and avoid frustration of stale opportunities. Having an experienced, well-connected agent on your side is a surefire way to have an advantage in this Seller's market. There has also been an influx of buyers who are pre-qualified before they even begin their home search, knowing that it could be the deciding factor when it comes to getting, (or not getting) the home they want. 

FORECAST

2012 provided us with a full range of scenarios in regard to representing both buyers and sellers. In 2013, The market will change, interest rates will fluctuate, and people will relocate. The one thing you can count on staying the same is the level of service you can expect from all of us at PDX Home Group. We look forward to learning you needs, answering your questions, and helping you achieve your real estate goals.

Steve Roesch | Principal Broker, Owner
PDX Home Group, LLC
o. 503.748.8387 | c. 503.318.6351 | f. 503.748.8307
Steve@PDXHomeGroup.com

www.PDXHomeGroup.com  |  Find Your Next Home  |  Free Market Report

---

Keller Williams Realty Professionals | 9755 SW Barnes Rd, Suite 560 | Portland, OR 97225

Assassination of Real Estate Deals through Low-Ball Appraisals

Barbara Corcoran Outlining Issues with Real Estate Appraisals on the Today Show 9/12/2012

Low Real Estate Appraisals have become a commonplace thorn in the side of buyers and sellers alike, and finally drawing the attention of the main stream media via the Today Show thanks to our gal Barbara Corcoran. Although, we may not always see eye-to-eye with Barb, she hit the ball out of the park with this one. 

Here is a snapshot of the many factors contributing to the lack of talent in the Appraisal industry. We all know the housing bubble was caused by inflated housing prices, backed by crooked Real Estate Appraisers in cahoots with lenders to determine values over a scotch on the rocks and a handshake.  Cut to the bubble bursting, when state and federal legislators had their hand in a “solution” in an effort to “protect” the consumer. This has backfired greatly and has resulted in giant Appraisal houses employing less-experienced robots passed off as Appraisers in lieu of a local expert.

Most cities including Portland have seen a massive uptick in the Real Estate market, due to an increase in buyers, short supply of inventory, and record-low interest rates. The problem? Appraisals are based on past home sales in the last six months to a year including short sales and foreclosures, which common sense would tell you, does not accurately reflect the values of today’s market. When the Appraisal comes in low, the buyer is then turned off, and the lender is not willing to complete the loan at the agreed upon price. Deal Breaker!

The lack of talent in the Appraisal industry is single handedly contributing to major chaos to over one-third of Real Estate transactions, and is crippling the housing recovery. Be sure to protect yourself by providing the Appraiser data on your local Real Estate market, verifying that the square footage and housing stats are correct in Appraisal, ask to have short sales and bank owned properties eliminated from the comparable properties, and if worse comes to worst, pay for a new Appraisal. It helps to have a Real Estate Agent that has your back as well, and will go to bat for you when they know the Appraisal comes in too low.

Steve Roesch
Principal Broker
PDX Home Group
Keller Williams Realty Professionals
Steve@PDXHomeGroup.com
503.318.6351 direct/text
www.pdxhomegroup.com

Wait for it... Wait for it... Too late

By the time you know the market had turned the corner, you are too late. Because it already happened.

The article below is about what's happening across some cities in the US. And its happening in many parts of Portland right now too.

As reported in the Bloomberg/Businessweek article today 3/27/12.  see full article

Bidding wars, absent from most parts of the U.S. residential market since its peak in 2006, are erupting from Seattle and Silicon Valley to Miami and Washington, D.C. The inventory of homes hovers close to a six-year low, while an increase in jobs and record affordability are tempting more buyers. The number of contracts to buy previously owned homes jumped 14 percent in February from a year earlier, the National Association of Realtors reported yesterday.

Here's an interesting portion of the article talking about Palo Alto and the Facebook millionare hype.  By the way, I've seen this Realtor speak at a conference 2 years ago, and he's not what you'd expect from a stuffy luxury home Realtor.  But he is exactly who you would expect Mark Zuckerberg to have as his agent.

Competition Increases

Agents encountered multiple bids on about half of offers in Seattle, Boston, Washington, D.C. and Oregon this year through March 15, said Tim Ellis, real estate analyst for online brokerage Redfin. In the San Francisco area, Redfin agents reported that three of four offers involved competition, he said.

One home in Palo Alto, California, received 38 offers and sold for $1.65 million, or $452,000 more than its asking price, said Ken DeLeon, a real estate broker in Silicon Valley since 2002. Another client paid $2.56 million for a home in 2007 and is listing it for $3 million, with the expectation of receiving higher offers, he said. The seller wants to use the proceeds to buy a home in Saratoga, about 18 miles southeast of Palo Alto, where the market hasn’t heated up yet, DeLeon said.

Prices are hitting all-time highs, above Palo Alto’s 2007 peak levels, in the 94301 and 94306 ZIP codes, as buyers rush to purchase in advance of an expected flood of newly minted millionaires when Facebook Inc.

February 2012 Real Estate Report

The latest real estate market report for Portland has come out and this is exciting enough to have to share.  Here are the key points:

• Sales continue to keep rising.  This means more buyers are entering the market place.  Also important to note, that if buyers enter the market and buy, that means lenders and banks are actually making more  loans.  Which was part of the sluggish past 5 years, they were issuing more declines than before.  It takes 1 year to recover from bad credit.  It takes 2-3 years to recover from a short sale.  It takes 4-7 years to recover from foreclosure. 

Could we now be seeing buyers re-enter the home buying market that perhaps were some of the first casulties of the recession?

• Less listings again this month.  As this supply and demand ratio continues it will put pressure on prices.  It didn't affect prices much for 2011.  Mostly because the trending didn't begin until 4th quarter.  I think what we are also seeing is short sales being approved.  And the short sales are being approved at lower prices, and as the bank owned enter the market they put their value based on what the short sales sell for.  Short sales take 3 months to a year to approve.  So many of them have had their prices set more than 3 months ago.  It's hard to see movement in current prices when we have stale listings such as short sales firmly holding on to yesterday's prices

• Lastly, well, prices have decided to bump up after all the supply and demand talk. The average sales price in Feb 2012 was 4.3% higher than Feb 2011. The year to date average sales price is up 1.8% over the same time frame 2011.  And, finally, a month to month increase from Jan 2012 to Feb 2012 of 2.4% 



Foreclosures Decline in Portland, but not every part

Latest statistics from CoreLogic and RealtyTrac have shown that Portland foreclosures are on the decline in 2011, and will continue throughout 2012.  Rates of decline in Portland have dropped by 3.21%, making the percent of homes in foreclosure for the city 2.39%.   The amount of homeowners delinquent on their mortgage payments, is also lessoning.  The foreclosure percentages are fairing better than the nation, and also better than the state.  The state is at 2.8%, and that was an increase.  The overall national foreclosure rate is 3.41%, and that number is on the decline.

Things are sounding good for the Portland area.  RealtyTrac reports that the percentage of sales for the nation that are actual foreclosures is around 20%.  Whereas in the state of Oregon, only 15% of home sales are comprised of the bank owned (REO) properties. 

I thought I would take that a little bit further and show you what 2011 looked like in some local sub markets of Portland.

For the first month of the 2012, the following statistics are RMLS data of the percent of bank-owned, single family residences and condos, in proportion to the total closed sales for each area.

1. Beaverton/Aloha      35%
2. SW Portland            20%
3. Hillsboro                  36%
4. NW PDX 97229     10%
5. NE Portland             18%
6. SE Portland              29%
7. Lake Oswego/WL   18%
8. Tigard/Tualatin         26%

It appears there is more foreclosure activity going on than the Realty Trac suggests.  Or, the January 2012 numbers suggest that Nov and Dec sales were gobbling up more bank owned homes that the previous year's trend. 

Nevertheless, what occured in the last months of winter, is reflected in the first part of the year, and the result has left us with an anemic supply of inventory, both traditional, bank owned, and short sale.  We now are at the lowest level of housing supply in the last 3 years.  The metro area of Portland sits at 5.3 months.

More jobs and less houses?

2011 finishes with 2 major indexes showing the lowest levels in 3 years for the Portland Metro area.

1. Unemployment = 8.9%.  We have finally broken the 9% floor and continue to move lower.  Dropping 2 tenths of a point from November, after being seasonally adjusted.  The highest level reached was 11.6% in mid 2009 and has been generally declining ever since.
2. Unsold housing supply  = 5.3 months inventory.  This is the lowest level of inventory for the last 3 years reporting. The highest level of inventory was early 2009 and reached near 20 months.  That's almost 2 years supply of homes on the market.  It hasn't been a steady decline the last 2 years.  It's been more like a yo-yo, due to 2 significant tax incentives. These incentives increased buyers activity before those key times, and then were followed with sluggish behavior, until 2011, which appeared to be a steady decline.

We know that buyers have been helping gobble the inventory because low home prices and low interest rates, are making record low monthly payments.  Also, inventory has been held low, as 2011 has shown less foreclosures being taken back by the banks.

But let's be frank.  Without jobs, there is no consumer confidence.  Potential buyers with fear that any day they will be next in the unemployment line, won't be shopping for a house. 

Therefore, it is no coincidence that these 2 indexes are declining hand in hand.  Although, 5.3 months inventory is a great number in the real estate world, 8.9% unemployment is no figure to write home about.  And with economists still threatening that banks are withholding a large number of shadow inventory yet to hit the market, we should still stay on our heels.  But, the clouds are lined with silver now.

Portland Home Values Beat National Trend. Finally...

The Standard & Poor's/Case-Shiller index shows prices dropped in September from August in 17 of the 20 cities tracked. That was the first decline after five straight months where at least half of the cities in the survey showed monthly gains. 

Portland wasn't able to enjoy gains through the summer.  However, in Portland sales did rise as prices remained flat or modestly declined.  Less sellers also entered the market this summer, creating balanced inventory in many areas of Portland. 

Portland, Oregon was one of only three cities on the list to show an increase in home prices in the latest survey. Portland home prices inched up by 0.1 percent in September compared to August. However, Portland home prices were down by 5.7 percent compared to last September.

Although, the increase is nothing to write home about, it's a small win to know that as other markets are seeing seasonal declines, Portland may be exiting the long cold winter of home value wreckage.  Case Schiller reporting, is typically 2 months behind in data, and local MLS stats are showing the last 2 months have continued to be good.

A separate index for the July-September quarter shows prices were unchanged from the previous quarter.

Atlanta, San Francisco and Tampa posted the biggest monthly price declines. Prices in Atlanta, Las Vegas and Phoenix fell to their lowest home point since the housing crisis began four years ago.

Prices also rose in New York and Washington.

Beaverton Culdesac

Walk through this Beaverton 4 bedroom on a culdesac. New on the market. Vaulted ceiling, fireplace, and air conditioning. True pride of ownership over 17 years.

FSBO.com hypocrite or realist?

As reported by AgentGenius.com.

Many Realtors have read the story below.  Founder of ForSaleByOwner.com uses a Realtor.  And they are touting it all over the internet, that 82% of all sales are between broker to broker, and even a huge proponent of FSBO sales has to get real once in a while and use a broker. 

I'm offering a different approach.  The founder truly believes in the ease of the professional in one of the most expensive transactions of his life.  And that he is in the large majority of other sellers and buyers who agree.  People don't want to miss a step in such a huge financial decision.

However, there does exist the other 8%, that are called DIY. The do it yourselfer. 

1. They change their own oil every 3000 miles. 
2. They will never hire a landscaper or painter to do anything they can reach under 30ft. 
3. You see that play structure in the back?  I made that, myself. 
4. Oh, and they are a big fan of TurboTax.  Sorry H&R Block.

So, while this story doesn't mean to change every DIY to quit FSBO and hire a Realtor, it does ensure that if you consider yourself part of the vast majority, make sure you enlist the professional to take care of your prized possessions...  Your money and your HOME.

Former FSBO CEO sells home the traditional way


Founder and former CEO of ForSalebyOwner.com, Colby Sambrotto listed his 2,000 square foot New York condominium on his own through online classified ads and FSBO sites, but after six months, he opted to hire New York broker Jesse Buckler who immediately advised a price change as the listing was not attracting the right buyer.

After giving up on the DIY route, Sambrotto’s decision to hire a broker led to attracting multiple offers, closing for $150,000 over the original asking price. The Wall Street Journal reports the listing sold for $2.15 million including a 6% commission.

When the foreclosure goes wrong.

According to the Oregonian Story on June 29th 2011, a Vernonia woman who fell behind on her mortgage payments, was foreclosed on December 2010.  The first lien holder put the home up for auction and the 2nd lien holder purchased it to protect their interest in the debt collection.  However, the owner wasn't moving out.  She hired an attorney and what they discovered was the first lien holder never had the right to foreclose.  They actually never had a recorded deed of trust. 

Something has been occurring in our industry, where lenders will sell the loans to other banks, and then never officially record the deed transfer in a county record.  They have developed an electronic system to keep track of these transfers.  It's called MERS.  It seemed to be a fine system for them to keep track, but as of late, investigators are uncovering a sloppy mess of disorganization.  The original notes and deeds have been getting lost.  And now, when challenged, if a bank that actually foreclosed on a property, never was truly in possession of the original trust deed of the property, they may have not had the right to foreclose.

As in the case with the Vernonia woman.  A judge just ruled that the bank didn't have the right to take back her house.  But they sold it?  Good thing they didn't sell it to another couple who was trying to move in...  No one knows what is going to happen next.

The editor's note:
Something has to be done to control the banks. This is most important.  However, does a person who defaults on the obligation have the right to have their home back too?  NO.  You don't pay, you cannot stay.  It's that simple.  Do we, as US citizens, let murderers out on on the streets, just because someone accidentally tampered with the evidence?  NO. oh wait...  yes we do.  Good luck fixing this one America.

http://mobile.oregonlive.com/advorg/db_/contentdetail.htm?contentguid=yljDufJC&full=true#display

Can't fight the Wal-Mart anymore

Whether we like it or not, Wal-Marts are coming. 

Portland's adversity toward the big box chain has kept the mega company and it's low prices and controversial/alleged low-waged-underpaid-discriminated employees, mostly outside the cities limits.  With the exception of SE 82nd and the one in Cornelius.  But not any more.  Wal-Mart is anouncing, not just plans, but acquisitions, and lease-ups in 10 identified sites already.  And plans for 7 more. 

Those 2 near Portland must be doing very well, for Wal-Mart to want to expand that big, and that fast.  Below is the list of sites you can expect to see a Wal-Mart pretty soon.  One could be right in your neighborhood.  Don't be fooled by their strategy to call these new stores "neighborhood markets".  They are just smaller versions of the BIG BOX. 

I guess on the bright side, they will create a lot of jobs.  Or replacing jobs.  Look at what they are replacing.  We've lost a lot of Hagen's, Zupan's and Gi Joes.  Even the famous empty WHOLE FOODS in Lake Oswego will be a new Wal-Mart!!!  Do you think these same employees are going to put on the blue apron?  Do you think the same clientele that attended these shuttered stores will be walking right into the sliding doors of hospital white floors and aisles of anonymity?  Probably not. 

I guess I am just sad, that our economy has gotten so bad, that we are replacing character with that sterile sameness.  It's so mid 70's.  

1. Raleigh Hills: Ex-Zupan’s at Beaverton-Hillsdale Highway and Apple Way.
2. Lake Grove: Ex-Whole Foods at Boones Ferry and Jean roads.
3. West Linn: Ex-Lamb’s Thriftway at Highway 43 and Hidden Valley.
4. Gresham: Ex-QFC at 182nd and Powell and ex-Food 4 Less Powell and Burnside.
5. Beaverton: Ex-Haggen’s at Southwest Murray and 147th.
6. Vancouver: Ex-Fred Meyer at Fourth Plain and Grand; and ex-Winco at Highway 500 and Thurston Way and land parcel in the Salmon Creek area at 134th and Interstate 5.
7. Oregon City: Land at Molalla Ave. and South Beavercreek
8. Tigard: Southwest Greenburg Road and Highway 217.
9. Oak Grove: Ex-G.I. Joe’s at Southeast McLoughlin and Concord.
10. NW Portland: Ex Ashley Furniture.  173rd and Cornell.

Huge Corner Lot in Cedar Hills

Sorrento Ridge 1/3 acre plus artist studio

Sorrento Ridge 1/3 Acre

14479 SW Arabian, Beaverton, OR 97008 View Map

Complete remodel and floor plan do over. This is a ranch turned contemporary in Sorrento Ridge on 1/3 acre. Features include Hardwood Floors, Granite counters, Vaulted Ceilings, Greatroom style. Master on the main plus 2 more bedrooms on the main level. Also includes 2 bedrooms plus bath and loft upstairs.Fantastic schools in the area: Hiteon, Conestoga and Southridge. Beautiful fenced back yard, with Deck and paver patio. Covered trellis and artist studio complete with power & heat.

Details

Asking Price:

$359,900

Sq. Feet:

2552

Lot Size:

.32 acre

Bedrooms:

5

Bathrooms:

3

# of Floors:

2

Garage Size:

2

Subdivision:

Sorrento Ridge

Year Built:

1978

Property Amenities

- Range/Oven - Sink Disposal - Dishwasher - Fireplace - Hardwood floors - Patio - Deck

- Fenced Yard - Great Room - Tool Shed - Secluded Setting - Central A/C - Family room - Living room

- Bonus/rec room - Office/den - Dining Room - Granite Countertops - Stainless steel appliances - Laundry area - inside

Community Amenities

- Garage Parking

Contact Info

Steve Roesch

Principal Broker/ Mentor & Coach

Main 503-748-8387


Dir 503-318-6351

Email | Website

All information is deemed reliable but is not guaranteed.

Oregon Unemployment is down again

Unemployment is down to 9.6% now in Oregon. High number? Yes. On it's way down? Yes. Heading in the opposite direction than the national rate? Yes, again. All signs about the job market have been positive. We are 2 points lower than our peak at 11.6% which was almost 2 years ago in June 2009. And down from 9.9% last month.

It's a pretty diverse job creation too. All sectors were seeing increases. From hospitality to health, and of course tech manufacturing. The only sectors that saw decreases are government and financial.

It's about Household Creation, not Population

Population growth always stimulates the housing market.  It's the roof over your head that is required.  Whether it's for a rental, or a permanent residence, population growth always helps.  However, we learned a few years ago, that another factor had drastically decreased so much that it basically equalized the population growth and had a negative impact on housing.  Both in rentals and new home construction.  That factor is Household Creation.  More people were moving back in together.  Divorcees were staying the same house longer.  Kids moving home after college.  Parents moving in with their kids.  And roommates taking on more boarders, and couch surfers.  And with double digit unemployment, homeless rates soared. 
The good news is, we may be out of the woods soon.  Household creation is on the rise again.  According to RealtorMagazine we are seeing a boom in new households.  Millions of young adults are beginning to move out of their parents’ homes and create new households at the fastest rate since 2007. Some housing experts are predicting these young adults may provide a major jump to U.S. housing starts--possibly by more than 50 percent, even by next year--and increase housing consumption at a rate nearly double that of the past two years, Bloomberg News reports.

Basically, in 2011 3/4 to 1million new households created are expected.  That's fantastic news.  Before the recession, the US would average at least 1 million each year.  But in 2006 we dipped to 900,000 then 800,000 and by 2010 we hit an all time low of 347,000 new households created.  This is welcome relief for the housing market.


full article http://www.realtor.org/RMODaily.nsf/pages/News2011050401?OpenDocument

Percentage of Distressed Sales in the Portland Market

Below is a graph made by the local multiple listing service showing the percentage of homes that are bank owned vs short sale, and compared to traditional transactions.  It's about 20-30%.  Remember a short sale, will likely become a bank owned, if it doesn't move into the SOLD category. 

Look at the size of the short sale listings that become a sale, vs the size of the bank owned that actually become a sale.  Most of the traditional listings that don't make it into the SOLDs, likely are home owners that decide now is not the time to sell, and they stay there.  However, most of the short sale sellers, that are unsuccessful at selling, still move.  When they move on, the house goes back to the bank.  And it will reappear again on the market. 

The inventory of bank owned will likely increase in 2011.  However, they have made their mark already in our marketplace.  Banks are interested in selling for fair market value these days.  It's the short sale sellers that are the motivated ones, that drop their price below fair market value, just to avoid foreclosure.  In these instances, these short sales are likely to fail and become bank owned.  It isn't truly new inventory added to the market.  It's actually the same house, now with a new owner, and typically, the price is fair market value.  The only grumblings are that we don't like what we see considered fair market value any more...

Short Sale Bail Outs. Pick one, MR MegaBank!

House Bill preventing deficiency lawsuits pursued by banks 2 years post short sale transactions.

What Rep Matt Wingard is trying to do, is make short sales easier, less scary for the home owner, and then ultimately it will lead to less foreclosures.

If the home owner and the banks find a happy ground to sell homes in the short sale arena, we will have far less vacant, distressed, liabilities on our hands, that are tearing down our state's housing values. Of course, the job market, the mortgage shrinkage, and overall supply and demand hurts too, but we don't need extra fear added to the equation. Every bit of consumer confidence helps.

Latest Interest Rate News

Latest Interest Rate News as reported by http://www.bankrate.com/ and RisMedia.

RISMEDIA, May 2, 2011—Mortgage rates remained below the 5 percent mark, with the benchmark conforming 30-year fixed mortgage rate inching lower to 4.95 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points.

The average 15-year fixed mortgage stepped down to 4.14 percent, and the larger jumbo 30-year fixed rate reset the low point of the year at 5.40 percent. Adjustable rate mortgages were also lower, with the average 5-year ARM dipping to 3.69 percent and the 7-year ARM dropping to an even 4 percent.

Mortgage rates were lower this week, but the movement in mortgage rates continues to be tame. Mortgage rates have remained within a one-third percentage point band since mid-December. The Federal Reserve did little to rock the boat, holding interest rates steady and changing very little in the post-meeting statement. Fed Chairman Ben Bernanke’s initial press release was a historic event, but uneventful. While the Federal Reserve confirmed that they will halt their bond purchases at the end of June, this has been widely expected and any resulting volatility in bond yields or mortgage rates is far from certain.

Mortgage rates are closely related to yields on long-term government bonds.

The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.95 percent, the monthly payment for the same size loan would be $1,067.54, a difference of $174 per month for anyone refinancing now.

The survey is complemented by Bankrate’s weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. The vast majority of panelists, 77 percent, don’t see much of any movement in mortgage rates over the upcoming week. The remainder are split, with 15 percent predicting an increase in mortgage rates and just 8 percent forecasting a decline in mortgage rates over the next seven days.