Posts Tagged Marketing

Portland-Metro real estate market conditions for February 2010

Posted by Danny in Monthly newsletter on February 17th, 2010

We just adopted a cat from the Oregon Humane Society. His name is Cougar. After a month in a shelter, he really seems to appreciate our home office as his starting room and to explore the rest of our house. He is also looking forward to trying out the deck. We appreciate having two floors with a baby gate on the top and bottom of the stairs, making it easier to introduce him to our other cat Gracie Joy. Did we have these features in mind when buying our home or baby-proofing it? I would have to say no.

In other news, my mother-in-law has just begun a three week visit. She has so far enjoyed sharing the room with Cougar. I am glad to continue sleeping in my own room during her visit. During the Valentines/Presidents Day weekend, we celebrated our love and patriotism by finishing the conversion of the home office to a guest room with office functionality. Meanwhile, the second office desk has been moved into our master bedroom. The idea is that neither desk is personalized and therefore usable for either my wife or I as needed. Mackenzie continues to enjoy a bedroom without a desk or work, though she is showing a lot of interest in both. You do not always have to change where you live to change how you live, but I am here to help if you want to buy or sell a home.

The Portland-Metro real estate market activity improved last month over the same period a year ago. Closed sales were up 34.7% versus January 2009 and pending sales increased by 24.3%, but new listings dropped by 6.2%.

Comparing last month to December 2009, pending sales were up 34.5% but closed sells fell by the same percentage. New listings increased by 87.1%! The drop in closed sales combined with the rise in new listings increased active inventory, which is calculated by dividing the total number of active listings for a month and dividing it by the number of closed sales. It would take about 12.6 months to sell the 12,449 active residential listings.

Sale prices for last month were down compared to January 2009 by 5%, and the median sale price also decreased by 4%. January 2010 sale prices were also down when viewed against December 2009 with average prices dropping by 3.7% while the median price slightly decreased by 0.9%.

If you are in the market to purchase a home, now is the perfect time to buy. There are plenty of properties available, sale prices have continued to drop, and interest rates are low. Additionally, if eligible, the extended and expanded home buyer’s tax credit is available if in a purchase contract by April 30, 2010 and close by June 30, 2010.

Would you like to receive more detailed information about?

  • Realtor services?
  • The extended and expanded home buyer’s tax credit?
  • Interest rates?
  • Your neighborhood or neighborhoods of interest?

Please contact me at:

dannyshepard@oregonfirst.com

503-267-8370

All statistics listed are quoted from the January 2010 issue of RMLS Market Action. The Regional Multiple Listing Service releases the previous month’s statistics near the 15th of the current month.

Tax credit information provided by the IRS at http://www.irs.gov/newsroom/article/0,,id=215791,00.html?portlet=7

Additional tax credit information provided by the National Association of Realtors FAQ on Homebuyer Tax Credit Changes, available on request.

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Buyer Agent Representation

Posted by Danny in Brokerage on October 26th, 2009

What is buyer agent representation? Why would someone buying a home want a real estate agent to represent them? How much does it cost?

Buyer agent representation is when a real estate broker assists and represents a buyer in a real estate transaction.  Representation is agreed upon in a written contract between the buyer and agent.  A Buyer’s Agents performs many duties, including: helping buyers identify what their wants and needs are, locate and show properties that will fulfill their wants and needs, submit and negotiate the best possible offer to the seller on behalf of the buyer, help the buyer evaluate counteroffers, perform all communications and follow-up inquiries with the seller, and inform buyers of any actions that are needed to insure the transaction closes as smoothly as possible.  Other duties of buyer agent representatives include educating buyers on: the real estate market, financing,  trends, neighborhoods, and providing informational sources on these and other topics.  A buyer’s agent may also suggest a list of potential real estate service providers, such as lenders and home inspectors; but not to select service providers without expressed consent from the client.

A real estate agent is more informed than even the most determined and motivated buyers.  Certainly, buyers should educate themselves, but they can only benefit by having a real estate professional working for them.  An agent representing a buyer works exclusively for the buyer’s benefit.  Any real estate agent in Oregon should provide a pamphlet from the state that defines an agent’s duties and responsibilities in representing buyers and sellers.

Finally, a buyer seldom needs to pay for the services of an agent to represent them.  That is correct.  The cost of services is typically free, to the buyer.  Sounds too good to be true? This is because the selling agent is typically willing to split a portion of the commission received by the seller at closing.  This amount is predetermined, typically by percentage of commission, and is provided as part of the listing information on the home for sale in the multiple listing service.  By cooperating with the selling agent, he or she is willing to pay for the buyer’s agent for the services.  The buyer’s agent conducts all business on good faith and duty as required by personal integrity and real estate law, but only owes loyalty to the buyer that the agent represents.

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Veterans Refinancing with a Streamline Loan

Posted by Danny in Veterans on September 23rd, 2009

I am learning how an Interest Rate Reduction Refinancing Loan (IRRRL), more commonly known as “Streamlining Loans”, can help a veteran lower their mortgage payments by paying less interest over the life of the loan.  Some are offered with zero closing costs; not zero money out of pocket, but no additional costs for the veteran towards closing on the new loan.  These loans are designed to help veterans that are already utilizing their VA loan from a period of higher rates to take advantage of currently-better interest rates.  Many mortgage companies offer these loans, but the best will seek out “zero-closing costs” at an improved, but not best rate, to save a great deal of money.  The advantage to the lender is that they gain a creditor with a proven record of making on-time mortgage payments and they will offer a competitive interest rate in comparison to loans made before today’s record lows.  There benefit can be maximized by not skipping any monthly payments and providing funds to keep the escrow account for insurance and property taxes to date.

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Portland-Metro Real Estate Market Conditions Report for September 2009

Posted by Danny in Monthly newsletter on September 16th, 2009

August 2009 home sales continued to be stronger than at the same time a year ago. August 2009 closed sales had increased over August 2008 by 4% and pending sales by 13%. Unfortunately, new listings were down by 14.1%.

Compared to July 2009, closed home sales decreased by 7.4% and pending sales by 0.7%. New listings dropped from July 2009 by 3.3%. From January to May 2009, active listings had increased. In June, they had dropped 8.2% compared to May. It appears that monthly new listings have peaked for 2009 as the busiest season for real estate is coming to a close.

Active inventory, which is calculated by dividing the total number of active listings for a month and dividing it by the number of closed sales, had increased for the first time in six months to 7.8 months. Active inventory compared to August 2008 is down by 21.2% at 9.9 months. This is explained due to a larger decline in new listings at the same time more homes are being sold and leave the market.

Comparing 2009 year-to-date with the same January-August period in 2008, closed home sales are down 15.6%, pending sales down 7.2%, and new listings down 22.4%. Though real estate sales activity has mostly improved since May 2009 over the same period last year, the first four months of 2009 had much lower activity than last year, dragging down all sales and activity statistics.

Both sale price indicators went down last month compared to August 2008. The average sale price was down 10.6% while the median sales price was down by 10.8%. Monthly indicators went in opposite directions from July 2009 with average sales prices up 2.7% ($296,300 versus $288,600) and median sales prices down 0.04% ($249,900 versus $250,000). The median price may be lower due to continuing purchases of first-time homes that have been aided by the first-time home buyer credit that expires on December 1, 2009. The federal tax credit maximum is 10% of the purchase price of a home, up to $8,000. The vast majority of properties in this area would qualify to receive the maximum credit.

These trends continue to display that the outlook for buyers is still optimistic, especially considering lower interest rates and the first time home buyer credit. With fewer new listings available, properties that had been sitting on the market appear to be selling at higher average prices. The outlook for sellers, especially of those desiring to sell their first homes and upgrade to more expensive properties, continues to improve with fewer houses in competition. Demand is up for first homes but has only slightly increased for more expensive properties. This market improvement should continue to push more first time house hunters into the market, and along with improved economic reports, could help increase sales activity and encourage hesitant sellers to list their homes.

Would you like to receive more detailed information about?

· Your neighborhood or neighborhood of interest?

· The first time home buyer’s tax credit?

· Realtor services?

Please contact me at:

dannyshepard@oregonfirst.com

www.dannyleeshepard.com

503-267-8370

All statistics listed are quoted from the August 2009 issue of RMLS Market Action. The Regional Multiple Listing Service releases the previous month’s statistics no earlier than the 15th of the current month.

Tax credit information provided by the IRS at http://www.irs.gov/newsroom/article/0,,id=206291,00.html

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