Washington County October Sold Stats - Single Family Residences

• 55% Homes sold were 3 bedroom
• Average price = $241,257
• 32% closed in 30 days or less
• 22% closed in 121 days or more
• 48% buyers used conventional financing
• 25% buyers used FHA financing
• Closings down from last month by less than 13% (359 vs 411)

Understanding Your Property Tax Statement

Oregon has a complicated property tax system. Could be the most difficult to understand system in the entire country.


Real Market Value (RMV)

Maximum Assessed Value (MAV)

The RMV is what the county assessor estimates the actual value of the property (or what it would have sold for on January 1, 2010 for 2010/2011 tax statement).

The MAV, as a result of an Oregon Ballot Measure (50) from the mid 1990s, takes the 1995 value, reduced by 10%, then increased 3% every year after 1997.

Add in that Oregon has two tax rates and confusion continues. The current rate(usually higher) applies to the MAV. The other rate (Oregon Ballot Measure 5 from 1990) limits the tax to .5% on education, 1% on government but no limits on whatever voters have approved in each tax district (bonds, levies, etc…). This rate only applies to the RMV.

You are taxed on whatever value is LOWER. That becomes your AssessedValue.

During the Portland real estate boom in the mid 2000′s, some property values were increasing at 10% per year(sometimes more), Portland real estate property taxes were only go up 3%. Sounds great when values were going up but, now that Portland real estate values are stagnant (with some still in decline), property taxes are still rising at the consistent pace of 3% per year. Since MAV has been capped since 1997, it should be lower than RMV and that is why your property taxes aren’t going down.

Did your assessed value go up by more than 3%?

Is the RMV more than your property is worth as of January 1, 2010?

Are you being taxed for something that does not exist?

If so, or if you have any questions about your tax statement, I suggest you to call an Oregon property tax professional to help you decide.

October 2010 Portland Market Update

Portland Market Update: October 2010


Our Portland real estate market is making steady improvement albeit slowly.




Homes Under Contract Up More Than 6%

According to statistics from the Regional Multiple Listing Service (RMLS™), the number of homes that went under contract in October 2010 was up 6.3% as compared to September 2010.

In fact, the number of homes with an accepted offer is now at its highest level since April, when the numbers were driven by the deadline for the Homebuyer Tax Credit.

The increase is one example of how the real estate market in Portland is showing steady improvement.

Homes selling faster

Homes in the Portland area in October sold faster than the month before, trimming three days from September, and one day from October 2009.

This is significant, because the traditional busy season for real estate is summer, when families are relocating while school is out. Generally, we expect sales to drop in the fall and winter months.

Median price falls slightly:

The median sales price dropped 2.52% from September to October. Affordable areas include Beaverton with median prices of $192,500 and Hillsboro with $200,500.

August 2010 Inventory Levels - By Area

BUYERS REAL ESTATE MARKETS (Favoring buyers = too many houses for sale):


**Neutral Market = 6 - 7 months inventory **



N. Portland = 11.6 months of inventory

NE Portland = 8.4 months of inventory

SE Portland = 9.5 months of inventory

Gresham/Troutdale = 9.2 months of inventory

Milwaukie/Clackamas = 11.9 months of inventory

Oregon City/Canby = 14.1 months of inventory

Lake Oswego/West Linn = 14.06 months of inventory

W. Portland = 9.9 months of inventory

NW Washington County = 9 months of inventory

Beaverton/Aloha = 8.4 months of inventory

Tigard/Wilsonville = 10.1 months of inventory

Hillsboro/Forest Grove = 9.3 months of inventory

July 2010 Inventory Levels by Area

Balanced Real Estate Market (favoring both buyers and sellers & under 7 months of inventory):

• NE Portland 6.7 months of inventory

Buyers Market (favoring buyers and = too much inventory):

• N. Portland 10.7 months of inventory

• SE Portland 8.4 months of inventory

• Gresham/Troutdale 13.3 months of inventory

• Milwaukie/Clackamas 9.3 months of inventory

• Oregon City/Canby 14.7 months of inventory

• Lake Oswego/West Linn 10 months of inventory

• West Portland 12.5 months of inventory

• NW Washington County 9.5 months of inventory

• Beaverton/Aloha 10.6 months of inventory

• Tigard/Wilsonville/Sherwood 12.2 months of inventory

• Hillsboro/Forest Grove 10.4 months of inventory

May WA County Sales Stats

Single Family Residential

• 58% homes sold were 3 bedrooms with an average price of $241,505
• 42% closed in 30 days or less
• 17% closed in 121 days or more
• 50% buyers used conventional financing
• 30% buyers used FHA financing
• Closings down 1% from last month (561 vs 568)

April 2010 PDX Metro Sales Stats

• 53% homes sold were 3 bedroom with average price of $254,962
• 44% closed in 30 days or less
• 20% closed in 121 days or more
• 43% buyers used conventional financing
• 31% buyers used FHA financing
• Closings were up by 7% last month (1769 vs 1641)

Mortgage Rates Reach 2010 Low As Stocks Crash

Mortgage rates inched lower yesterday as global investors continued to flock to risk free U.S. Treasury debt securities. This has been a constant theme in the rates market recently. However, while benchmark Treasury yields have moved considerably lower in a short time, mortgage rates have failed to keep pace with the "flight to safety" rally.


A flight to safety happens when investors are nervous about owning risky assets like stocks, but do not want to miss out on earning a return on their funds, so they allocate money into risk-free U.S Treasury debt to provide a safe-haven AND an investment return. To remind readers, as benchmark Treasury yields fall, prices of mortgage-backed securities move higher, which allows lenders to offer lower mortgage rates. As Treasury yields rise, mortgage-backed security prices are led lower, which forces lenders to push mortgage rates higher.

PDX Metro Real Estate Stats - February 2010

Portland Metro Real Estate Stats


February 2010

Single-Family Homes (Residential)


* 51% of homes sold were 3 bedroom- average price was $234,750

* 31% closed in 30 days or less

* 26% closed in 121 days or more

* 43% of buyers used conventional financing / 29% of buyers used FHA financing

* Closings were up from January a little more than 4% (929 v. 890)



Condominiums



* 20% sold were in the $200-249k range- average price $255,286

* 37% closed in 121 days or more

* 28% closed in 30 days or less

* 44% of buyers used conventional financing / 20% of buyers used FHA financing

* Closings were down from January by a little more than 12% (86 v. 109)



Stats were provided by RMLS, Home Sales Report, February 2010

Feb 2010 Sales Stats

• 51% homes sold were 3 bedroom - avg price $234,750
• 31% closed under 30 days
• 26% closed over 121 days
• 43% buyers used conventional financing
• 29% buyers used FHA financing
• Closings up over 4% from last month (929 vs 890)

PORTLAND METRO REAL ESTATE STATS - FEBRUARY 2010

Survey Results of 2009 Homebuyers & Sellers

• 47% of recent home buyers were first-time buyers
• Typical first-time home buyer was 30 years old while typical repeat buyer 48
• Typical home purchased was 1800 SF and built in 1991
• 78% home buyers purchased a detached single-family home
• Typical home buyer searched for 12 weeks and viewed 12 homes
• 77% of buyers used a Real Estate Agent
• 10% buyers purchased a home in foreclosure, up from 3% in 2008
• 92% buyers financed their recent home purchase
• 85% sellers used a Real Estate Agent to sell their home
• Recent sellers typically sold their homes for 95% of the listing price
• 60% sellers reported reducing their asking price at least once

FHA changes!

Just a heads up if you...if you didn't know...FHA has just announced...


they will begin charging 2.25% in up front mortgage insurance (from 1.75% last year and 1.50% the previous year) and

require 10% as a down payment for borrowers with poor credit scores.

This is to begin Spring 2010.

The details are still to be released.

2010

Who are the big losers going to be in 2010? Here are a few hints:


1. Smaller regional banks. According to Troubled Asset Relief Program (TARP) figures, small banks have been repaying TARP funds much more slowly than larger national banks. A total of 663 banks with $58.6 billion in outstanding loans that have not yet paid back the U.S. Treasury, and they do have five years to use the funds before they must get the bailout paid back. Many of them, however, probably never will pay back. One of these banks has already gone bankrupt and two others have failed. Others face government sanctions, and 56 missed their last quarterly dividend payments to investors.

2. Luxury Homeowners. Those with mortgages of $1 million or more are defaulting at twice the average U.S. rate, according to a Bloomberg report. The stock market decline and cuts in bonuses and pay have squeezed many high end owners who are also seeing their mortgages become seriously under water in many markets. As home prices continue to decline in markets such as New York-New Jersey and in many east and west coast markets, expect even more $1 million plus homes to become available for Short Sales.

3. Commercial and multi-family property owners. Look for Lenders to stop carrying along commercial properties in serious default. The Mortgage Bankers’ Association has reported delinquencies in this category to be up in the 3rd quarter and we fully expect that the 4th quarter results will continue this trend. This will be a tremendous opportunity for Short Sale flippers and buy and hold Investors to acquire reasonably priced properties.



Hiring Expectations for 2010

In order to safeguard against a double-dip recession (which many bearish economists predict) there needs to be some acceleration in hiring. Will it happen in 2010?

There’s a little good news on the job front predicted this year, according to CareerBuilder, one of the largest online job boards. Their forecast indicates 20% of employers will increase the number of permanent, full-time employees in 2010, which is a 14% improvement over 2009. Only 9% of CareerBuilder employers plan to shrink the permanent employee base in 2010, which is down 16% from 2009. The largest percentage, 61% expect no hiring changes during the year, and 10% of the survey respondents were unsure of their hiring trends for 2010. There were fewer changes expected in part time hiring, but more employers, 11%, expect to add part-timers than plan to lay off (8%).

The fields that look good to expand in 2010, according to CareerBuilder, are information technology, manufacturing, financial services, business and professional services. Technology and customer service were the two biggest fields slated for hiring. Expect to see many freelancers and independent contractors hired rather than permanent employees in many cases.



When Will Home Prices Hit Bottom?

Our crystal ball has predicted a continuing decline in home values in the majority of markets. When will we begin to see some improvement?

According to First American CoreLogic prices will decline through the winter and then, spurred by lower unemployment rates and lower housing re-sales inventory, the prices will begin to bounce off the bottom in March. First American CoreLogic expects 45 of the largest housing markets to decline 4.2%, much less drastic a prediction than that of Deutsche Bank, which we reported a week or two ago expected a decline of 10 to 12%. First American CoreLogic projects a 1% year-over-year appreciation by October 2010.

Which projection should you follow? It depends on the details for your specific market. We tend to skew more conservative when it comes to projected values. If the decline is less than you predict, you get a built-in bonus – if it’s more than you predict, you could end up upside down. Make sure that if a decline is expected in your market you figure those projections into your Short Sale offers. On average the Short Sale will take three or four months to complete, and may take longer.



New Home Sales Plunge; Expected to Rise in 2010

The November new home sales statistics were expected to be up, but instead declined by 11.3% in November (355,000 new homes). The decline may be due to a drying up of buyers under the original $8,000 home buyer’s tax credit program, or uncertainty about whether the program would be continued.

With the extension and expansion of the tax credit program economists expect to see a new surge in new home sales early in 2010. The expansion to include those looking for credits on move-up homes will give a good boost to the home construction industry for those projects that can be completed by mid-year. The NAR reports a 7.9 month supply of new homes currently on the market, or 235,000 for sale as of the end of November.