We continue to buy ever larger homes, now average 2700 SqFt (up 1,000 from 1973). 41% of renters wish they’d bought. Full details here.
I just learned of a new down payment match offer from Guild Mortgage, the largest local mortgage lender in the NW. It’s really simple: you put up 1% of the purchase price of a home and Guild makes a grant of 2% so you qualify for a conventional 3% down payment mortgage. Yes, you just tripled your money. You can buy a $350,000 home with only $3,500 of your money down (plus closing costs). You could buy a nice $100,000 condo with $1,000 down. There’s even more good news in the fine print in the detail flyer my preferred lender, Kelly Parkman at Guild, gave me today
And here’s a short video of Kelly himself explaining it. We’ve worked together for five years and I’ve never seen him so excited.
Contact Kelly at 503/528-9800 or KParkman@GuildMortgage.net or contact me and I’ll help, too
This may not be a surprise to a lot of Portlanders, but our city has been included in a list of the top ten “next tech havens“
So you ask, “What does that have to do with real estate?”
With new jobs comes new population – people who don’t live here today. And those people buy things – groceries, cars, insurance, medical, accounting AND homes. Some will rent, of course, but the gap between the cost of renting and buying in Portland has grown pretty wide, so most will buy a home.
That adds to the number of home buyers, which already far outstrips the number of homes for sale, and keeps the upward pressure on home prices. Last month I listed a very nice condo in Tigard and had ten offers (all over list) in the first week. Maybe not ten, but for nice homes, multiple offers is the rule.
If you’re one of the nine buyers who didn’t get this one, that’s hard and I feel for you.
Of course none of us wants to live where jobs are disappearing (and home prices are going down). If you’re a buyer and your first thought is “Yes I would.”, while that does put you in an easier buying position, you wind up buying a major asset that’s worth less tomorrow than today. I’ve been in real estate in that kind of market and it’s not easy for buyers, sellers, or Realtors.
Today’s market in Portland is difficult but not impossible for buyers, and at least you’re buying a major asset that’s likely to be worth more tomorrow than today.
|A 2016 study from Josh Lehner (Oregon Office of Economic Analysis) illustrates Oregon is currently underbuilt by 24,000 units. In other words, we need to build 24,000 units just to equalize the supply/demand curve. Until we reach a period of hypersupply, Oregonians will continue to feel the pinch of the real estate supply/demand curve https://www.oregon.gov/das/OEA/Pages/forecastecorev.aspx|
Not necessarily the best for quick return (important if you're selling in the next year or so), but the best value in the long term. HouseLogic's "8 Most Financially Savvy Home Improvements are here
the question is how to do it so the value holds up for the long run.
Here's HouseLogic's list of the seven "Kitchen Remodeling Decisions You'll never regret"
The $20,000 figure is from the 2016 "Cost vs. Value" report* that shows costs in Portland for 27 popular remodels . It's for a "minor" kitchen remodel, (a "major" is $61,927 and an "upscale" $122,359). It also estimates how much each project will return in short-term sale price. The "minor" kitchen remodel will increase your short term sale price by $23,197 – 11% over your cost, so a pretty good investment. The "major" adds $48,371 and the "upscale" $87,667, but neither returns more than their cost. Still, if you're going to live in the house for many years, there's no dollar value on the enjoyment you'll get from the new kitchen. The report has figures on 26 other remodels. Want a copy? Let me know and it's on its way.
If prospective buyers could spend a week in a house they're thinking about buying, it would give them a good feel for the neighborhood, including how noisy (or quiet). Now there's a tool that can help with that. Enter the address at HowLoud and you'll get a SoundScore – a 50 to 100 rating (higher is quieter) on the ambient noise level. While it won't tell you about the neighbor who leaves for work at 5:00 AM on his Harley, it will give you a look into noise produced by trains, airplanes, traffic, commercial sites and the like. If this "takes off" it will become similar to a WalkScore as one independent tool to evaluate a neighborhood.
Oregon property taxes can by confusing. Especially due dates and how they are prorated when you buy or sell. Click Here for a simple chart from our friends at Ticor Title
At a Windermere meeting last week we heard Windermere's Chief Economist.
Here's the takeaway in plain English: http://www.bizjournals.com/portland/blog/real-estate-daily/2016/02/is-the-economy-going-to-be-better-this-year-brian.html
While the chart shows Oregon as less than 30 days, the reality is that any decent Portland home that's fairly priced will be gone in a week. My last listing went live on MLS at 8:00 PM on a Saturday night. We received 10 offers by Wednesday and accepted $56,000 over the list price.
Besides the fact that the market is hot, this seller had wisely decided to have a home inspection before it went on the market, and fixed everything the inspection report turned up. I recommend the pre-listing home inspection to all my sellers. Even if you don't want to fix everything, you get the time to generate multiple estimates for the work, instead of being presented with the buyer's bid late in the standard 10-day inspection period when you can't realistically get a contractor to show up in time to get any competing estimates. It's almost like agreeing to the highest repair estimate before you even see it. Much better to have the time to get your own and either do the repairs or credit the buyer the amount of the lowest estimate.