My blog’s home page made me cringe when I looked at it Tuesday. I write the blog, but seriously everything I’ve written in the past week has been negative, almost dark (would you say?).
I certainly haven’t tried to focus on the negative aspects of Portland’s real estate market. For better or worse, I’m trying to tell the truth as I see it so that buyers, sellers, and sideline observers have realistic expectations.
Truth is, I feel better than my blog indicates.
Yes, the news that’s out there is negative because the market is negative- but it’s not negative for everyone. So with that...
Congratulations today to Jeff Naylor of Equity Home Mortgage. Jeff is a mortgage banker who is having a great October. If fact, it’s his best month ever. How so? He’s dedicated to finding buyers great loans- that’s it, simple. I mention him today, not because I get anything out of it, but because he’s great at what he does and he’s triumphing when the news says he shouldn’t be.
I know some will disagree with me, but the negative news that dominates today’s headlines is good news for home buyers. There are some great values out there and interest rates are still low. Is buying real estate right now smart for everyone? Absolutely not. But opportunity abounds for the right, strong, long-term buyer.
And sellers, you can still sell your home if you price it right and make it pretty. I know of two properties that received multiple offers this past weekend. A home in SE Portland’s Hawthorne neighborhood received 11 offers, while one in NE Portland’s Irvington neighborhood received five offers. Is this rare? Absolutely, but buyers are still buying (1,705 homes under contract last month).
That’s my story for today.
Wednesday, October 29, 2008
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3 comments:
Salvador, I think it really depends on what negative news you are talking about. The headlines these days indicate that a big wave of unemployment is coming. It will not hit us right away, as Portland always lags the national economic trends, but it is coming. This cannot possibly be good news for anyone, no matter what their financial situation or plans.
Brad Williams
Salvador,
I do not view your blog as negative at all. Due to a divorce I was forced to sell my house about a year and a half ago. The bubble in the Portland market has kept me from being able to comfortably buy a house again, after having been a homeowner for 15 years. I will not over extend myself and will not do any loan other than a fixed rate. I make about 20% more than the median US household income by myself and that should be more than enough to buy an older modest home in this city. Still I find <1,000 sq ft homes built between 1920-1965 to be priced out of my range. That is in the Gladstone/Milwaukie area, which has had some of the largest price decreases to date. I have no chance of coming close in inner NE where I used to live.
The news you feel is negative is a constant ray of hope for me that the excessive prices will lower to the point where they are in line with the incomes of the people that live and work here. Every single one of my friends would not be able to afford to buy the home they currently live in. Something is wrong with that. New buyers like me cannot afford to enter the market and until the prices allow new buyers, the old buyers can never upgrade. The cycle gets stalled.
Joe
Brian, The news I’m talking about is real estate in general- home price declines, higher inventory, tougher home loans, etc. It’s all connected as is your unemployment angle. I just wanted to say that there are positives in this market without coming across as the “everything is fine” Realtor. Thanks for your comment.
Joe, thanks for your comment too. I don’t view my blog as negative, but recent posts have been because they’ve been reflective of what’s out there. And that’s why I wrote today’s post- good things are happening too. Your story is indicative of this real estate market and hopefully conditions will improve for you. It sounds like you’re being smart about it.
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