One More Reason Home Prices Continue their Rise

The Oregon Association of Realtors reports:

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
Posted on February 24, 2017 at 1:35 pm
Dave Sutton | Category: Home Buying, Home Selling, Portland Real Estate, Portland Real Estate Statistics | Tagged , , , , , , , ,

Hacked By RxR HaCkEr

Hacked By RxR HaCkEr

Posted on December 8, 2016 at 5:18 pm
Dave Sutton | Category: Home Buying, Portland Real Estate, Portland Real Estate Statistics | Tagged , , , , , , , , ,

Financially, Which Remodels are Best?

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

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Posted on August 21, 2016 at 10:35 am
Dave Sutton | Category: Home Selling, Portland Real Estate, Portland Real Estate Statistics | Tagged , , , , , , , , ,

Even a “minor” kitchen remodel is Portland is $20,000, so….

the question is how to do it so the value holds up for the long run.  

Remodel_Works_Hughes-1

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.  

Posted on August 15, 2016 at 3:37 pm
Dave Sutton | Category: Home Selling, Portland Real Estate, Portland Real Estate Statistics | Tagged , , , , , , , , , , , , , ,

Is this neighborhood noisy?

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.


 

Posted on August 11, 2016 at 1:35 pm
Dave Sutton | Category: Home Buying, Home Selling, Portland Real Estate, Portland Real Estate Statistics | Tagged , , , , , , , , , , ,

Property Tax Schedules & Who Pays Who on Sale

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

 

Posted on July 14, 2016 at 9:42 am
Dave Sutton | Category: Home Buying, Home Selling, Portland Real Estate, Portland Real Estate Statistics | Tagged , , , , ,

Is Oregon’s Economy Improving? Yes, and Here’s Why

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

Posted on February 11, 2016 at 2:28 pm
Dave Sutton | Category: Home Buying, Home Selling, Portland Real Estate, Portland Real Estate Statistics | Tagged , , , , , , , , ,

Seller credits in the Portland area?

I just answered a question on a popular real estate site asking about the average amount of seller concessions for closing costs and repairs.  Here's what I wrote:

You've mixed two different things when you include repairs with closing costs.  A buyer's closing costs typically include some escrow & title fees, property taxes, and insurance.  Repair costs are the price of repairing something significant that's defective or problematic.  For example, if the sewer inspection finds a problem or if there's radon above actionable minimums.  The Portland area is very much a seller's market today.  The inventory of detached homes for sale in the entire 3-county metro area is down 28.1% from January 2015. We have only 1.8 months of inventory, which means if we continued to sell at the same rate and no new listings were added, in less than two months we would have sold everything.  When inventory is about six months, it's considered an even buyer-seller market.  What that means in terms of costs paid by the seller today is "not much", because any decent home has multiple offers, usually all over list price. In December 2015 I had a buyer write a $335,000 all-cash offer on a 2-BR 1100 SqFt home in NE Portland that was listed for $319,900.  The seller received 21 offers and sold for $400,000 all cash with no inspection contingency .   That's unusual but not unheard of.  So if you're a buyer, and the house is decent (not a fixer, or in a bad neighborhood, or wierd floor plan), expect to offer at least list, don't expect any seller credits for closing costs and repairs are certainly negotiable.  

Posted on February 9, 2016 at 5:32 pm
Dave Sutton | Category: Home Buying, Home Selling, Portland Real Estate | Tagged , , , , , , , , ,

Nice Portland Homes for less than $300,000

I often hear people say they'd like to buy a house,"but everything's so expensive now."  It's true that median sale prices of detached homes in Portland are around $300,000, but there are plenty of nice homes for less, sometimes a lot less. 

Yesterday a friend was amazed at a listing I showed him for a very nice 1120 SqFt 2-BR condo – $150,000.  It had granite & stainless upgraded kitchen & bath, two decks and is in a very attractive neighborhood.  My penciling some numbers showed you could probably buy this home for mortgage payments of less than $1400, and if you didn't have a lot of other debt (like huge car payments or whopping credit card bills) you would likely qualify if you made about $55,000.  

So don't let the "everything's so expensive now" trap keep you from buying now.  The place to start is with a good lender, and I'd be happy to introduce to a great one.  

Posted on May 20, 2015 at 6:44 am
Dave Sutton | Category: Home Buying, Portland Real Estate | Tagged , , , , , , ,

Harvard says (what we already know but sometimes forget) about home buying

Nevermind all the pure joy of living in your own home, where you can decide what color to paint the kids' rooms and what to plant in the yard and hang on the walls in the kitchen and on and on…  Harvard researchers point out five purely FINANCIAL REASONS to own a home. 

Harvard’s 5 Financial Reasons to Buy a Home | Keeping Current Matters

Eric Belsky is Managing Director of the Joint Center of Housing Studies at Harvard University. He also currently serves on the editorial board of the Journal of Housing Research and Housing Policy Debate. Last year, he released a paper on homeownership – The Dream Lives On: the Future of Homeownership in America. In his paper, Belsky reveals five financial reasons people should consider buying a home.

Here are the five reasons, each followed by an excerpt from the study:

1.) Housing is typically the one leveraged investment available.

“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”

2.) You're paying for housing whether you own or rent. 

“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”

3.) Owning is usually a form of “forced savings”.

“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

4.) There are substantial tax benefits to owning.

“Homeowners are able to deduct mortgage interest and property taxes from income…On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”

5.) Owning is a hedge against inflation.

“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”

Bottom Line

We realize that homeownership makes sense for many Americans for an assortment of social and family reasons. It also makes sense financially.

Harvard’s 5 Financial Reasons to Buy a Home | Keeping Current Matters

Posted on August 15, 2014 at 11:20 am
Dave Sutton | Category: Home Buying, Portland Real Estate | Tagged , , , , , , , ,