In proverbial "round numbers", mortgage payments on the average home in Portland next year will be about $200/month more than today if this forecast increase in mortgage rates is correct. (To check the forecasting accuracy of these sources, I looked up their January 2012 forecast for January 2013 – they were within 0.2 of today's average rates.
That's to buy at the same price. If home prices go up 5-6% as predicted, it's even more.
To go beyond "round numbers" and see what it would cost you to buy that real Portland-area house you want today, I can introduce you to a good mortgage broker. Between the two of us, you can see real numbers and real homes for you. Call or text me at 503-505-9722 or @DaveSuttonHomes
If that sounds strange coming from someone whose favorite activity is working with people who want to buy or sell a home, let me explain.
What I will do is help you find the right home for you. When you see it, you'll know it's the one. No "strong arm" needed from me. I write it because
If this seems like a strange post from a Realtor, it's because I think some people hesitate to ask a Realtor a question or talk about their dreams and desires for a home because they fear being pushed into buying something that's actually not the right home for them, or at the right time.
My clients will tell you what they most appreciate is my patience and my professionalism. I love to answer real estate questions, even if you're not ready to buy or sell right now…or ever ! What's your question? Call or text me at 503-505-9722, or Tweet @DaveSuttonHomes
This chart is the simplest answer to both questions.
The longer you rent, the higher the cost, and while you have paid for a place to live, you have nothing to show for it but rent receipts.
On the other side, buying a property to rent has all the advantages the renting does not. In either case, a fixed rate mortgage would hold your costs level (OK taxes might go up, but that's a minor part of the equation), while your rental income increases.
And in both cases, there are significant tax advantages. For Home Owners, mortgage interest is tax deductible. For Investors, you also get depreciation and other deductions. Don't believe me? I can recommend a good Portland CPA.
The 2013 numbers for short sales and bank owned homes (both new listings and sales) are in the chart below. Total homes for sale continues to be quite low. At year-end 2013 there were 5,159 total listings, down from year-end 2012's 5,632. Year-end 2009 listings total 13,019, so we currently have less than half the "normal" number of listings. A six-month inventory is an even buyer-seller market, and we are currently at half that (3.2). If you're thinking of selling, this is an excellent time. Contact me for a free no-obligation analysis of what your home might sell for today.
Until just a few years ago, 6.0% was a terrific rate. Then we got spoiled with a few months of 30-year fixed rates in the low 3% range.
I get a weekly "rate sheet" from a Portland credit union.
Today's shows a 30-year fixed FHA rate of 3.75% "with limited fees" Because of fees you may be better off with a "conventional" mortgage, quoted there at 4.25% for 30-yr. fixed. Your best home finance information comes from a local mortgage professional. Contact me for a no-obligation referral in Portland. .
The current "This Week on Houzz" features "Paint and pluck revamp a Portland ranch house". See the before and after photos and the owner's comments here,
I know, the only problem with forecasting is when it involves the future, so this is not me talking, but Zillow says Portland will be the ninth hottest market in 2014. Their story is here
If you own property in Multnomah County you've probably received your tax bill by now. We're hearing that some have increased, and by seemingly more them a 3% new "bond", and without any new building permit activity.
If you feel your tax bill is not correct, the information to file an appeal is here
Our friends at Trulia.com have recently designed a free interactive rent vs. buy calculator that's a good bit more detailed than others I've seen, and it's localized for any of the top 100 cities in the U.S. Here's what it shows comparing renting (at $2,000/month) vs.buying the median-priced Portland single family house ($290,000).
For renting to be the same cost as buying you'd have to be able to rent that median priced home for $1400/month. On the Trulia calculator you can slide the marker to adjust any of the items and see the buying vs. renting bars change as you do. The Trulia calculator is here. You can also use it to see how much house you could buy for any given rent before it was cheaper to rent. At $1500/month rent, it's cheaper to buy a house up to $310,000. You can also see the effect of selling at different points. The longer you stay in a house, the more the equation shifts toward buying, or the more house you can afford.
A Forbes Magazine article about rent vs. buy calculations in other cities, including the 10 "no-brainer" cities for buying and the 10 that might be approaching renting being the better choice, is here, along with the details behind the Trulia calculator.
If you're a renter who'd like to see what it would take to buy in Portland, let's find a time to explore that question together, and see what your rent today might buy. Email me at DaveSutton@Windermere.com or call or text me at 503.505.9722. No cost, no obligation.