PORTLAND HOME PRICE INCREASES TAKE A SLIGHT BREATHER IN NOVEMBER

Portland home prices have increase 12.5% over the year after dropping 0.34% between October and November according to the latest S&P/Case-Shiller report. The non-seasonally adjusted October-to-November slip was the first price drop the Metro area has seen in 8 months.

The 10-city and 20-city composites increased 13.8% and 13.7% year-over-year. Both composites dropped 0.1% from October-to-November following nine consecutive months of gains.

Dallas saw its strongest annual gain of 9.9% since 2000 and Chicago knocked it out of the park with an annual rate of 11%, its highest since December 1988.

The decline in prices is no surprise as they usually weaken as we move closer to winter. Still, the 10-city and 20-City Composites showed the best November since 2005.

 

Portland Metro Home Price Index

S&P Dow Jones Indices LLC

SUPER TIGHT HOUSING MARKET LEAVES BUYERS IN THE COLD

If you are a buyer looking for a new home in the Portland area, then you've probably noticed that available inventory is as tight as a drum. That's because buyer traffic is up 40% across the country from a year ago while homes available for sale have dropped.

 

At the end of January, homes available for sale fell 4.9% according to the National Association of Realtors. There is a 4.2 month supply of homes available which is down from 4.5 months in December. That's the lowest supply since April 2005 When supply was at 4.2%.

 

If you are a home owner thinking about putting your home on the market then NOW IS THE TIME!!! Why wait till spring when the inventory may open up creating more competition for you. Buyers need homes NOW and waiting could cost you valuable time and money.

 

Contact me at 503-318-1918 if you would like to know what I can do to sell you home quickly for top dollar. If you are a buyer, I have strategies that can help you land that home in a multiple offer situation. I am here to help.

 

Photo from milesandbarr.co.uk

HOME SALES EDGE UP IN SELLER'S MARKET

Sales of previously owned homes edged up in January, held back by a shortage of homes for sale, according to the National Association of Realtors.
Single-family home sales increased 0.2% to a seasonally adjusted annual rate of 4.34 million in January vs. 4.33 million in December, and 8.5% above the 4 million-unit level in January 2012.
The median single-family home price was $174,100 in January, up 12.6% from a year ago.
Lawrence Yun , NAR chief economist, said tight inventory is a problem and, as a result, "We've transitioned into a seller's market in much of the country."
"Buyer traffic is continuing to pick up, while seller traffic is holding steady," he said. "In fact, buyer traffic is 40% above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly."
Homes available for sale at the end of January fell 4.9% to 1.74 million previously owned homes, a 4.2-month supply at the current sales pace, down from 4.5 months in December, and the lowest supply since April 2005, when it was also 4.2 months, the NAR said.
The inventory is 25.3% below a year ago, when there was a 6.2-month supply. The number of homes available for sale is at the lowest level since December 1999, when there were 1.71 million homes on the market, the Realtors said.
"We expect a seasonal rise of inventory this spring, but it may be insufficient to avoid more frequent incidences of multiple bidding and faster-than-normal price growth," Yun said.
Sales rose in every region but the West.
Overall, sales of single-family homes, condos and townhouses were up 0.4% from December, at a seasonally adjusted annual rate of 4.92 million. That was up from a downwardly revised 4.90 million in December, and 9.1% above the 4.51 million-unit pace in January 2012.
Distressed homes -- foreclosures and short sales -- accounted for 23% of January sales, down from 24% in December and 35% in January 2012.
The median time on market for all homes was 71 days in January, down from 73 days in December and 28.3% below 99 days in January 2012.

Ray Goldbacher, USA TODAY

BEAVERTON AMONG SAFEST CITIES REPORT SAYS

The City of Beaverton announced Jan. 24 that a recently released annual report ranks it in the top 50 in low crime rates among U.S. cities with populations of at least 75,000. (Everton Bailey Jr./The Oregonian)

Beaverton is among the top 50 U.S. cities with the lowest crime rates, according to an annual nationwide crime ranking report.
The City of Beaverton announced Friday that it ranked 42nd among U.S. cities with populations of at least 75,000 in the CQ Press' "City Crime Rankings 2014: Crime in Metropolitan America."
It was the highest ranking of any city in Oregon and the seventh consecutive year Beaverton has made the list. The city was ranked 55th in the 2013 rankings.
Beaverton Police Chief Geoff Spalding said in a statement that the ranking was "a tremendous honor."
“The brave men and women of the Beaverton Police Department are committed to staying diligent to keep Beaverton safe," he said.
CQ Press calculates the rankings by taking into account the differences between city and national crime rates for reported cases of murder, rape, robbery, aggravated assault, larceny, motor vehicle theft and arson. Each city is then ranked based on an overall score. The latest CQ Press rankings are based on crime data reported to the FBI in 2012.
Beaverton police reported no murders, 11 cases of rape, 40 robberies, 93 aggravated assault, 1,200 larceny, 111 motor vehicle theft and 24 arson cases in 2012. Only reported robberies increased from 2011 to 2012. Beaverton police have not released crime statistics for all of 2013.
The next five Oregon cities after Beaverton to appear in the rankings were Hillsboro (104th), Eugene (188th), Salem (221st), Medford (228th) and Portland (282nd).
The five cities with the highest crime ranking scores were Fishers, Ind.; Carmel, Ind.; Parma, Ohio; Johns Creek, Ga.; and Ramapo, N.Y. The five cities listed with the lowest scores were Camden, N.J.; Flint, Mich.; Detroit, Oakland, Calif.; and St. Louis. Several other cities, such as Chicago, were not included because numbers of rape cases were not available, according to the CQ Press.
-- Everton Bailey Jr.

THE LATEST MARKET ACTION REPORT SHOWS YEAR END HIGHS IN REAL ESTATE

December Highlights

Metro Portland’s real estate activity cooled more compared to November, but numbers are still

up compared to last December and for the year overall. Closed sales (1,782) fell 2.1% compared

to November but are 1.3% ahead of December 2012. Likewise, pendings fell 18.8% to 1,484 from

November’s 1,827—but are 7.2% better than the 1,384 offers accepted in December 2012. Portland had the best December for pending sales since 2006, when there were 1,825! New listings fell 32.5% to 1,333 from November’s 1,976 but are a 3.7% increase from December 2012. The number of total active listings dropped to 7,511 in December, and total market time increased by a week to 87 days. Inventory decreased slightly in December to 3.2 months. 

Year-to-Date Summary

 There have been 27,065 accepted offers and 26,782 closed sales to date in 2013, up 12.7% from 24,010 pendings and 14.3% from 23,438 closed sales in the same period last year. The 35,858 new listings to date this year represent a 11.0% increase from the 32,300 entered through the end of last year.

Average and Median Sale Prices

The average sales price through the end of the year is $310,600, up 12.9% from the same period in 2012, when the average was $275,000. In the same comparison, the median price increased 12.8% from $235,000 last year to $265,000 to end 2013.

 

 

 

 

 

 

 

NEW MORTGAGE RULES ARE NOW IN EFFECT. HOW COULD THE CHANGES IMPACT YOU?

New mortgage rules are designed to lower the risk of defaults and foreclosures among borrowers according to the Consumer Financial Protection Bureau.

*Lenders must now determine that the borrower has the ability to repay the debt throughout the life of the loan

*Lenders must also make sure that the borrower isn’t taking on more house than they can afford

*Lenders will no longer be able to market loans with risky features such as interest only payments or loans longer than 30 years.

*Upfront fees cannot total more than 3% of the mortgage balance.

How will these changes affect you?  Lenders will need more information from you to verify that you have the ability to repay the loan both now, and when it’s fully amortized. This will require more paperwork and longer processing times.  Your debt-to-income ratio will also need to be below 43% unless factors outweigh the risks. This may mean it will be tougher for you to qualify.

The good news is many lenders have already tightened their standards over the past few years and that means you probably won’t see too much of a change.

*photo from Langvuong.com

DECEMBER UNEMPLOYMENT & HOUSING

The unemployment rate dropped to 6.7 percent in December as the US economy added 74,000 jobs. That was well below economists’ estimates and was the weakest job creation in almost three years. Meanwhile wage growth also came in at 1.8 percent for all of 2013. The Bureau of Labor Statistics says that’s well below the inflation rate.


How will these numbers affect housing? It could mean that fewer people will be qualified to purchase a home, but those who do could expect to see mortgage rates drop. It could also prompt the Fed to slow down its cutbacks to the mortgage bond buy back program which would keep interest rates low for longer than expected. 

We’ll learn more about the Fed's reaction to the numbers when they hold their January policy meeting on the 28^th.  

If you have questions regarding your ability to buy or sell a home, feel free to call me at 503-318-1918.

Picture from foreclosuredeals.com

PEOPLE ARE MOVING TO OREGON WHERE THE HOUSING MARKET IS ALREADY TIGHT. ARE YOU READY TO SELL?

 

Have you noticed a lot of moving vans in Oregon lately? If so, it's not surprising. Atlas Van Lines annual report shows people are moving here while fleeing other areas like Wyoming, Nebraska and Canada. Oregon is one of the 8 areas where people are moving to based on information where people rented their moving equipment and where they ended up.

 

Check out the findings of their annual report:

 

HOME BUYERS ARE OUT...WHERE ARE YOU????

  The Portland housing market experienced a slight lull in the fall months as buyers took a break from the rising interest rates and summer bidding wars.  Experts predict that the housing market will cool in 2014 as home buyers get priced out of the rising market.

Meanwhile, I have noticed a flurry of house shopping taking place as we kick off 2014. If you’re intending to sell your house this year, you should have it on the market NOW.  Here’s why. Buyers may lose their motivation to shop as interest rates rise to an expected 5.5%. Buyers will have more to choose from as home owners come out from being under water on their mortgage and home builders bring new homes to the market. Home prices will continue to rise, but more slowly. Experts predict prices will rise 4% in 2014 which is much slower that 2013’s 12.5% increase.

If your New Year Resolution includes buying or selling real estate, I would love the opportunity to help you. Call me at 503-318-1918 to find out what I have to offer as a real estate expert.