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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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Portland-Metro real estate market conditions for January 2010

Posted by Danny in Brokerage, Monthly newsletter, Real estate on January 18th, 2010

I hope everyone had a great holiday season. We had a great visit with our families back East in a whirlwind of a trip. You know things will be hectic when you start Christmas morning driving out to PDX. We were on a full flight, toddler in lap, which was delayed due to de-icing the plane. Our flight crew was made up entirely of on-call employees, since everyone that was regularly scheduled came down mysteriously ill and could not make it in to work. About five hours after boarding, we arrived in Houston. Our layover was just long enough to make it across the airport. My wife Jessica had the genius to grab a couple of gourmet sandwiches when we first stepped off the plane. Good thing, since every restaurant in the airport was busy closing at 5:30 pm local time. My wonderful, just turned two years old daughter Mackenzie helped us with our luggage, by holding a handle and staying close, and together we walked the full distance across the airport and insisted on standing on a rough-riding monorail. Fortunately, the flight to Knoxville, Tennessee was a comfortable express jet that was only at half capacity. Mackenzie had her own seat. We learned the meaning of “extra time for boarding” as my wife Jessica was hard at work installing our child’s car seat. She did it again in my father’s truck before the 90 minute drive to their home.

A week later, we loaded up a mini-van and left for New Jersey. It was Mackenzie’s first drive farther than Lincoln City. We left at 8:30 am to arrive just before 11:00 pm on a rare day of snow in the South. Actually, as we discovered during the drive, was that it snowed or was snowing along our entire route. I was never more grateful for the DVD player, Max and Ruby, and the Wonder Pets to help Mackenzie endure so much time in her car seat. We tried to make the drive easier with about two and half hours of stops.

After a day and a half in New Jersey, we went to stay with my in-laws in Connecticut for the rest of the week. Mackenzie appreciated the snow much more once we were playing in it. Our last day of vacation, they graciously drove us back down to Newark, where we arrived 3 hours before our evening flight, spending over two of those hours getting through heightened security and trying to occupy a bored toddler in a very busy airport. I was never more relieved to get on a plane. With one runway closed due to an emergency landing earlier in the day, we taxied for another hour before take-off. Fortunately, the moment the lights were out, so was Mackenzie. We arrived back home around 1:00 am. Six hours later, I was getting ready to return to work.

Since all of the travel, working in real estate is looking good! Market activity for December 2009 was much stronger than at the same time one year ago. Closed sales were up 52.6% over December 2008, pending sales were up 40.9%, and listings had increased by 11.9%.

Compared to November 2009, market activity was down. Closed sales fell 16.1%, pending sales decreased by 14.1%, and listings were down by 15.8%. 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, increased again last month, now up to 7.7 months. In October, active inventory was at its lowest since August 2007 at 6.5 months. November 2009 sales activity was markedly higher due to at-time expectations that the first time home buyer credit was about to expire. On November 6th, 2009, the home buyer tax credit program was extended and expanded to include buyers that enter contract on or before April 30, 2010 and close by July 1, 2010.

Sale prices went in opposite directions for the two time periods above when compared with their activity. The average sale price for December 2009 was down 2.5% and the median price dropped by 4.2% when compared to December 2008. Evaluating December 2009 to November 2009, the average price increased by 7.3% ($293,300 v. $273,300) and the median price went up by 1.3% ($242,200 v. $239,000).

For all of 2009, the average sale price dropped 12.2% from 2008. The median price also decreased by 11.2%.

January is traditionally a slow month for real estate. It will be interesting to see if the home buyer’s tax credit can spur market activity before the typical increase that arrives in the spring.

Would you like to receive more detailed information about?

· Your neighborhood or neighborhood of interest?

· The extended and expanded 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 December 2009 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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Portland-Metro real estate market conditions for December 2009

Posted by Danny in Brokerage, Monthly newsletter, Real estate on December 15th, 2009

On November 6th, President Obama signed into law an extension and expansion of the popular home buyer tax credit program. It extended the credit to buyers that enter contract on or before April 30, 2010 and close by July 1, 2010. A first time home buyer is considered anyone that has not owned a home in the last three years and is eligible for a credit equal to 10% of the purchase price, up to $8,000 for a couple. The credit has also been expanded to those that own or recently owned homes, as long as it has been a primary residence for five of the past eight years. The credit for home owners is still 10% with a limit of $6,500 per couple on the purchase of a new home. Credit limits are half for individual home buyers or for couples that file separately. There are many more details, please contact me if you would like more information or you may check the cited sources below.
In October, market data was skewed due to first time home buyers entering the market to take advantage of the at-time first time home buyers tax credit that required purchases to be closed by November 30th, 2009. Pending sales increased for the month more than they had since February 2006. Total closed sales for October 2009 were higher since August 2007 with the highest same month percent increase since January 2005.
Now let’s take a look at real estate market conditions for the Portland-Metro area for the past month. November closed sales were up 72.4% over the same month as last year and pending sales rose by 19.9% as many home sellers buying new homes became eligible for the expanded tax credit.
Still, listings dropped by 7% as some home owners decided they would rather wait to sell their homes at higher prices in a stronger market than accept a lower purchase price with a tax credit. The average sale price for November 2009 was down by 11.4% as compared to last year. Median sale prices were down by 9.8%. In comparison with October 2009, average sale prices were down 3.6% and the median price had dropped by 2.5%. 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, was up to 7.1 months. In October, active inventory was at its lowest since August 2007 at 6.5 months.
Our federal government has provided incentives to buy or sell homes. A seller can now take advantage of the credit to purchase a more expensive property at a lower market value or even to reduce costs and purchase a less expensive property. Buyers have an additional five months to receive an $8,000 credit when they purchase a new home with a market continuing to experience lower real estate prices and interest rates.

Would you like to receive more detailed information about?
• Your neighborhood or neighborhood of interest?
• The extended and expanded 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 November 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=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, Mortgages, Real estate 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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Portland-Metro Real Estate Market Conditions Report for October 2009

Posted by Danny in Brokerage, Monthly newsletter, Real estate on October 16th, 2009

September 2009 home sales continued to be higher than at the same time a year ago. September 2009 closed sales had increased over September 2008 by 9.8% and pending sales by 34.1%. New listings dropped by 14.3%.

Compared to August 2009, closed home sales decreased by 2.2% and pending sales grew by 6%. New listings dropped from August 2009 by 4.8%.

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, is at 7.6 months with 13,667 residential listings on the market. Active inventory in September 2008 was 10.4 months and 8.6 months in September 2007. Many consider the real estate market to be balanced when active inventory is at 6 months.

Comparing the third quarter of 2009 with the same timeframe in 2008, closed home sales are up by 6.5% along with pending sales at 17.5%. New listings are down by 18.7%.

Both sale price indicators went down last month compared to September 2008. The average sales price decreased by 8% while the median sales price was down by 9.6%. Monthly sales indicators also both dropped from August 2009 with average sales dipping by 2.1% ($296,100 versus $296,300) and median sales prices down 3.4% ($241,400 versus $249,900). 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.

The first time home buyers credit brought down average sales and median prices by increasing the number of pending and closed sales on less expensive properties. The last day to earn this federal tax credit is to close a home purchase no later than November 30, 2009, which falls on the Monday after Thanksgiving. To be certain to take advantage of this credit, closing should occur the Wednesday before Thanksgiving, November 25th. Considering today is October 15th, any new buyers seeking the credit should put in their offers immediately. An $8,000 tax credit should not be a pressure to purchase a home that you are only considering. The cost of owning a home that you are not satisfied with has much greater financial and emotional costs than a tax credit is worth. Short sales and foreclosures typically take 90 days to close and would need to already be in progress to take advantage of the credit.

There is some discussion between law makers to extend the first time home buyers tax credit on the national or even the state level in Oregon; but at this time, it has not been occurred. Fortunately, there will still be homes for sale after the credit. There may be less sales activity with fewer new buyers in the market, which could possibly cause sales prices to continue to decrease and create even greater bargains. The key word is possibly. Many would-be sellers and all current homeowners would appreciate the values of their most important investment to increase over the long term.

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 September 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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Portland winner of photography gift certifcate from my open house

Posted by Danny in Brokerage, Monthly newsletter, Open houses, Photography, Real estate on October 13th, 2009

Congratulations to Lisa M.  She won the drawing for a gift certificate for a portrait session valued at $150 from Jessica Shepard Photography after entering the drawing at my open house last Sunday.  Lisa was entered into the drawing by signing up to receive my monthly report on Portland-Metro real estate market conditions.

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Portland-Metro Real Estate Market Conditions Report for September 2009

Posted by Danny in Brokerage, Real estate 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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