Stats Show Portland Condo Prices Still Up

Finding a condo in Portland isn’t hard to do. There are plenty out there. Does the word glut come to mind?

Yet according to the RMLS, the average sales price continues to rise dramatically with double-digit appreciation the last four years.

Here are the average sales prices and appreciation rates for Portland condos:

Year = Appreciation = Average Price

2007 = 13% Increase = $272,900
2006 = 14% Increase = $241,800
2005 = 14% Increase = $212,000
2004 = 12% Increase = $186,600

The Book On Powell's

It says a lot about Portland that a bookstore, Powell’s, serves as such a source of pride for locals as well as must-see destination for visitors.

And on that note, Powell’s was recently named one of nine destination bookstores in the U.S. Here’s an excerpt:

POWELL'S CITY OF BOOKS: 1005 W. Burnside, Portland, Ore.; http://www.powells.com or 800-878-7323. The Gold Room, the Rose Room, the Purple Room - even with a color-coded map and signs, it's easy to get lost in the labyrinths of Powell's City of Books. And "it's hard to walk out with less than 10 books," said marketing coordinator Kim Sutton. She added that locals love to bring their out-of-town guests in: "They'll say, 'This is my bookstore,' and show them around with a lot of pride and ownership." Powell's claims to be the world's largest independent used and new bookstore; its other locations include three other general bookstores and two specialty stores (Technical and Home and Garden).

Here is a link to the rest of the story.

Average Time To Sell A Portland Home

When it comes to selling a Portland area home, properties in inner city Portland make up three of the top four fastest places.

Here are the average market times, days on the market (DOM), that it’s currently taking to sell a home in metropolitan Portland, Oregon. Times are listed from shortest to longest:

55 – North Portland
56 – Beaverton, Aloha
60 – Northeast Portland
62 – Southeast Portland
66 – Lake Oswego, West Linn
68 – Hillsboro, Forest Grove
75 – Northwest Washington County
79 – Milwaukie, Clackamas, Happy Valley
79 – Oregon City, Canby
80 – West Portland
84 – Tigard, Tualatin, Sherwood, Wilsonville
89 – Gresham, Fairview, Troutdale

Portland Best City To Have A Baby

Once again, Portland has been named the best city in America to have a baby.

Fit Pregnancy Magazine ranked Portland at the top for various factors, citing:

Relative to population, Portland has more specialty retailers of healthy/organic foods and vitamins than most places in our survey.

According to our survey of park departments, for every 10,000 residents, Portland has 150 miles of public trails and pathways for hiking and stroller use, the 4th highest in our survey. The average city in our survey has 79 trail miles for every 10,000 residents.

State laws require stringent background checks for day-care workers.

To read more, click on this link.

Here are the top ten cities:

1. Portland
2. Minneapolis
3. San Francisco
4. Seattle
5. Denver
6. Boston
7. Omaha
8. Virginia Beach
9. Austin
10. Albuquerque

Weather Tips For This Week, Vacant or Not

The weather in Portland is cold and predicted to be very cold, even below freezing, during stretches over the next couple of days. It can't be good when the term "artic chill" is being used.

So if you own a house that's vacant, you should make sure it's winterized with the heat turned on. Protecting your home this way could save you thousands of dollars in damage from broken pipes that have frozen. Even if you're living in your home, take steps to proect yourself. Hardware stores throughout the Portland area also sell hose bib protectors.

Whether you’re selling your home or not this winter, it’s not too late to perform seasonal maintenance. In fact, 10-15 minutes of your time would go a long way protecting your Portland home.

Here are some other quick tips/reminders:

Clothes washer & dryer – remove & clean intake screen and lint filter

Windows/Doors – check for drafts

Smoke/carbon monoxide detectors – replace batteries on battery-operated and battery back-up units. Carbon monoxide detectors cost about $25 and take about 10 seconds to install!

Current Average & Median Home Prices In Portland

“How much do homes cost in Portland?” That’s probably the number one question I get asked followed by, “Are prices going down yet?”

So let’s talk price. Here are the most current average & median sales prices of homes in Portland and the suburbs:

Average & Median = Area

$567,900 & $465,000 = Lake Oswego, West Linn
$468,100 & $379,700 = West Portland
$419,400 & $385,000 = Northwest Washington County
$374,700 & $339,900 = Tigard, Tualatin, Sherwood, Wilsonville
$334,200 & $300,000 = Milwaukie, Clackamas, Happy Valley
$329,600 & $303,000 = Oregon City, Canby
$321,600 & $283,000 = Northeast Portland
$297,900 & $270,000 = Hillsboro, Forest Grove
$286,500 & $260,000 = Beaverton, Aloha
$285,500 & $250,000 = Southeast Portland
$281,900 & $259,900 = Gresham, Fairview, Troutdale
$266,600 & $253,500 = North Portland

Slight, But Important Change In 2008

I write this blog for people interested in Portland real estate, not Portland Realtors and agents.

So this topic, I feel, may be preaching to the choir (fellow real estate agents), but is important for those of you actively in the market because of its timing.

We are now two weeks into the new year, but 2008 has brought change in the form of paperwork. I know paperwork is a boring topic. But I wouldn’t write about, eek, paperwork if it wasn’t important.

Most importantly, the seller’s property disclosure statement that a homeowner, by law, must deliver to homebuyers (in the majority of cases) has been changed. It’s now statutory that the homebuyer receive the new disclosure paperwork.

Gee, big deal. Right? Well, yes kind of.

You see, a homebuyer in the state of Oregon is given five business days (about a week) to terminate a purchase/transaction upon receiving the seller’s property disclosure statement. So what happens if a homebuyer receives disclosures using 2007 paperwork? I’m not attorney and do not profess to be and am not, do not give legal advice. I’ll just say it is statutory that 2008 forms be used.

If 2007 forms were used, the clock on the five day period would begin…. Hmmm.

2007 Final Figures, Plus Current Housing Inventory Remains High

Latest figures from the RMLS show that housing inventory in Portland remains high- and so the buyers’ market remains.

More on this in a second.

First, let’s recap 2007 now that final data is available.

Home sales in the Portland metro area fell 13.1% in 2007 compared to 2006. There were 28,173 home sales in 2007- an average of 2348 transactions sold per month.

New listings increased 8.1% in 2007 compared to 2006. There were almost 60,000 properties listed for sale in 2007.

You would think that less sales and more listings, combined with extensive media coverage both local and national, would mean a drop in sales price. But as of this posting, Portland is one of three major cities in the U.S. to still experience real estate appreciation.

In 2007, the average sales price of a Portland home was $342,900. In 2006, the average sales price was $322,600.

In 2007, the median sales price of a Portland home was $290,000. In 2006, the median sales price of a Portland home was $270,500.

As for current trends, housing inventory now stands at 8.5 months. This means that if no other homes were listed for sale, the supply would dry up in 8.5 months. This is slightly up from the previous month’s supply of 8.3 months. In fact, the last four months of 2007 all saw inventory levels of more than 8.0.

In other words, homebuyers have plenty of options right now.

The most current market time to sell a home, on average, is 73 days.

In the coming days, I will post to this real estate blog information regarding the average & median sales price of homes for inner city Portland and the suburbs, as well as data on average market time, appreciation rates, condo prices, etc.

2008 Mortgages & Loans: The Outlook

Today’s blog post is courtesy of Jeff Naylor, mortgage planner with Equity Home Mortgage here in Portland. Jeff discusses what’s happening in today’s up and down mortgage world.

Jeff Naylor:

The real estate market trends are not something that we can take a generalized look at to understand what’s really going on in our local market. What’s happening in Phoenix and Las Vegas isn’t happening here in Portland. Real estate is a local business with local trends.

One of the reasons the media has taken such a generalized look at real estate has a lot to do with the National banks. They lose tons of money on Wall Street after reporting foreclosure losses. All of us can see this, whether we are in New York or California or Oregon. The quiet secondary market has now lost the thirst for securities that are backed by mortgages that don’t come from FannieMae, FreddieMac, FHA and VA.

Wall Street doesn’t explain where all these foreclosure losses come from, but they aren’t coming from Oregon or Washington. Fortunately for us, our market hasn’t gotten too big for its britches (although it may seem that way at times). Locally, most of the applicants who walk into my office can qualify for a mortgage without overstating their income to qualify for the median priced home in our market. At times, in markets that outgrew themselves the only way to “get in” on this type of investment was to lie on the application.

The subprime lenders were first the ones ready to turn the other cheek because real estate was appreciating at 45% annually, so the risk they were taking seemed to be irrelevant. Even if they had to foreclose in a couple of years they would still be in a pretty good position, right?

This became the foundation to the way many markets grew, and we all know when the foundation is weak, the house will eventually fall.

So where do we all go from here in 2008? Let’s take a closer look and break down what’s available for our clients right now:

The Basics - the 30 year fixed rate is currently at 5.5% and this applies to all owner-occupied purchase loans at 95% or under that are approved/eligible with FannieMae or FreddieMac. This loan is a powerful step-up, step-down or first-time homebuyer loan. You just need 5%!

First-Timers and Little to No Downers – We have one of the most powerful loans to get you going in the Oregon Bond. With nothing down, we can get you 5.625%, or with only 3% down, you get 5.125%. If you don’t fit inside of the Oregon Bond box, we still have the FannieMae My Community or Flex Mortgages, the FreddieMac Home Opportunities or Home Possible Mortgages, and FHA, VA, and ODVA. All these fit our clients with little or no money down.

Investor Loans – Today, with as little as 10% down, investors can get 6% rates to buy investment properties. These loans will typically need a look at financials for an approval. Stated income investment properties can be harder to come by and these programs seem to show up as often as they disappear. To help your client’s cash-flow, the mortgage can be stretched to a 40 year term or you can just pay the interest on an interest-only loan.

2008 Summary – To get a loan in today’s market, you will have to prove that you deserve one. Yesterday’s money has caused problems today, but we dodged a lot of the national problems in Oregon. Let’s have a great year and get things done the right way!

The Tax Man Cometh For Some Oregon Homeowners

If you sell a home in Oregon, as of January 1st of this year, and do not live in Oregon then you will probably face a tax consequence that’s new- sort of.

At our weekly broker’s meeting, we discussed several new clauses that were added or modified in the sales agreement (offer paperwork) that Realtors here use. A change to note in this agreement is the “Seller Advisory: Tax Withholding Obligations” section.

It’s my understanding that the result of this new wording isn’t so much new as it is newly enforced. What’s this mean?

If you sell your home in Oregon anytime in 2008 or beyond, escrow will withhold money from your proceeds for income tax purposes. Again, this applies if you do not live in Oregon.

You might think this would apply to investors only, but many people live just across the Columbia River in Vancouver, Washington. What if you sell your Portland home and move to Vancouver or even San Francisco? I honestly don’t know the answer at this point because this is so new, but this was discussed in our meeting. Apparently, the timing of the move to an out-of-state locale plays a factor, along with the timing of when you actually receive your proceeds.

One Realtor in our office said he was selling a home in NE Portland for someone who lives in Vancouver. It was suggested to him that his client/homeowner contact a tax advisor. Granted, this situation was more complicated because of an inheritance, etc.

As I learn more about this topic, I will post it to this blog.

You can read the cause of this change, here at Oregon House Bill 2592.

Rents Rise In Portland, But Don't Make Most Expensive List

Home sales are down which means rents are up in Portland. The average apartment rent has climbed to $781, up 5.7 percent in the past year, but well short of the rents paid in the 10 most expensive cities for renters.

Here are the nation's 10-most-expensive cities for renters and the average rents. The data is provided by Marcus & Millichap:

1. New York , N.Y.: $2,922
2. San Francisco : $1,904
3. Boston : $1,658
4. San Jose , Calif.: $1,612
5. Los Angeles : $1,452
6. San Diego : $1,304
7. Washington , D.C.: $1,302
8. Miami : $1,080
9. Philadelphia : $1,014
10. Chicago : $1,010

Metro-wide, apartment vacancy rates stand at about 4.4 percent, down from 4.9 percent a year ago.

The numbers are helped by a slowdown in new construction, with about 770 units expected to be constructed in the area this year, somewhat below the annual average of 1,000.

Source: Portland Business Journal, Forbes

Oregon Ranks 11th for Population Growth

Oregon is the 11th fastest growing state in the nation, according to new Census Bureau estimates.

The estimates showed that about 56,000 people moved to Oregon in the last year year, giving the state 1.53 percent growth. That gave Oregon an estimated 3,747,455 residents, 27th among the states.

Here are the top 11 fastest growing states:

1. Nevada
2. Arizona
3. Utah
4. Idaho
5. Georgia
6. North Carolina
7. Texas
8. Colorado
9. Wyoming
10. South Carolina
11. Oregon

Here's a link to the story.

Cool Tools and Websites For House Hunters

House Hunting in the year 2008 isn’t like it used to be. Truth be told, the days of driving around endlessly from neighborhood to neighborhood should be over- replaced by cruising the information super highway.

Yes, the Internet makes just about anything possible.

Here are some cool websites and tools worth checking out for your home search:

• On recently launched StreetAdvisor.com, based in Melbourne, Australia, buyers can look for input from residents of a particular street about their neighbors, local services and more.
• For a different take on neighborhood life, house hunters can check San Diego-based RottenNeighbor.com. This site lets users post complaints about their neighbors, so it can serve as a warning about frictions in a neighborhood.
• Walkscore.com, started by Seattle-based Front Seat Management LLC in July, rates the walkability of a neighborhood by the proximity of stores, restaurants, schools, parks, libraries and more to an address the user submits.
• In the wake of a recent rash of brush fires, water shortages and other drought conditions around the country, Sperling's Best Places of here in Portland, Ore., launched DroughtScore.com last month.
• At EPA.gov, house hunters can click on the "Where You Live" tab to learn about levels of air and water pollution, hazardous-waste sites and releases of toxic chemicals in a given city, county or ZIP Code.
• At EnergyStar.gov , a joint site of the Environmental Protection Agency and the Department of Energy, users can find builders working with the EPA to build homes that meet the government's Energy Star standards for energy efficiency.
• GreatSchools.net - The site gives information for both public and private schools, including test scores, the ethnicity of students, student-teacher ratios and spending per pupil.
• Another site, SchoolMatters.com, a service of the Standard & Poor's division of McGraw-Hill Cos., provides information on public schools only.
• For crime statistics, Las Vegas-based AreaConnect LLC lets users compare data for more than 8,000 cities at www.AreaConnect.com/crime. Family Watchdog LLC, based in Indianapolis, provides the addresses and pictures of registered sex offenders at FamilyWatchdog.us. The site also will send email and cellphone alerts if a registered offender moves into a given neighborhood.
• For a much broader scope, YourStreet.com , owned by San Francisco-based YourStreet Inc., lets users find recent news reports and commentary from blogs for any location in the U.S.

And of course, the city-run Portland Maps website is a must-visit for anyone in the real estate market here in Portland.

Sources for Down Payment Money

Buyers who don't have a 20 percent down payment are finding it harder to buy a home.

Below, I have listed some sources of money that can still be used and I’ve added the comments of Portland mortgage planner, Jeff Naylor of Equity Home Mortgage, regarding his observations:

Sources of money:

Borrowing from a 401(k). Only some companies allow this. The maximum available is $50,000 ($100,00 if both spouses have 401(k)s) and the loan must be repaid within five years. Failure to do so and the loan will be considered a withdrawal, leaving the borrower liable for penalties and federal income tax.

Withdrawing up to $10,000 from an IRA for a purchase of a first home. Spouses who both have IRAs can withdrawal a total of $20,000. A potential borrower who hasn't owned a home in the past three years is considered a "first-time buyer" for this specific purpose and can make a withdrawal. Federal taxes must be paid on the withdrawal at the borrower's current marginal tax rate.

A gift. If buyers are comfortable asking for money, their parents, friends, and relatives can give a gift toward the down payment. But for the lender to approve it, the giver must sign a gift letter stating that the money doesn't need to be repaid.

Comments from Jeff Naylor, local mortgage planner:

“All of these options offer good alternatives to trying to qualify for higher loan-to-value financing. There are still options out there where you can qualify at 100% to get into a home. Lenders are looking to get a file with a good combination of credit, income and assets or down payment. Government sponsored lenders still have in there business plans a priority of getting lower income families and applicants into homes. FHA, VA, Fannie Mae and Freddie Mac are among those who will still offer 100% financing loans if buyers meet proper loan requirements. If buyers are approved at 97% for FHA, Freddie Mac or Fannie Mae, they will also qualify for Oregon Bond financing which should help with lower rates and more buying power.”

Source: ThinkGlink.com, Ilyce Glink

Portland Is Literate

Portland ranks 12th in the country when listing the nation’s most literate cities.

A study by Central Connecticut State University shows that Portland is down from No. 12 in 2006 and No. 10 in 2005.

Here are the top 12 cities:

1. Minneapolis, MN
2. Seattle, WA
3. St. Paul, MN
4. Denver, CO
5. Washington, D.C.
6. St. Louis, MO
7. San Francisco, CA
8. Atlanta, GA
9. Pittsburgh, PA
10. Boston, MN
11. Cincinnati, OH
12. Portland, OR

In the study, Portland also ranked No. 5 in educational attainment and No. 6 in bookstores per 10,000 population. Seattle ranked No. 1 in both categories.

Sixteen Years of Real Estate Appreciation In Portland

Real estate appreciation has been whopping to say the least over the last several years, but since 1990 Portland has really seen home prices rise.

Leading the way has been the city’s eastside.

Here is the median home price appreciation for homes and condos, excluding new construction, from 1990 to 2006:

Percentage Increase - Area = Prices

481% Increase – North Portland = $41,300 to $240,000
328% Increase – Northeast Portland = $62,400 to $275,000
297% Increase – Southeast Portland = $59,200 to $235,300
209% Increase – Milwaukie, Gladstone = $94,000 to $290,000
200% Increase – West Portland = $143,400 to $430,500
190% Increase – Gresham, Troutdale = $88,900 to $257,500
173% Increase – Tigard, Wilsonville = $125,600 to $343,500
172% Increase – Lake Oswego, West Linn = $183,600 to $500,000
166% Increase – Northwest Portland = $144,200 to $383,400
162% Increase – Beaverton, Aloha = $105,500 to $276,000

Source: RMLS,PSU Center for Real Estate, The Oregonian

Don't Sidestep The Sidewalk In Portland

Homeowners, Homebuyers,… Pay attention to the sidewalk.

Time and again, I meet people who are selling their homes within Portland’s city limits and who don’t realize that maintaining the sidewalk bordering their house is their responsibility. Most of the time, this isn’t a big deal. But it can be.

When a homebuyer conducts a home inspection, it’s common for the inspector to point out that the sidewalk is in need of repair. Often times it will be referred to as a “tripping hazard.”

So if you’re selling your home, just be aware this could become an issue. If you’re house hunting, check out the sidewalk just as you would the rest of the house and landscaping because you'll inherit this problem.

Portland, Top Ten Green City

Portland ranked No. 10 in a national survey of the top 10 green cities in the country.

According to data compiled by the EarthLab Foundation, a Kirkland, Wash., nonprofit, Chicago tops the list, followed by New York, Boston, Los Angeles and Philadelphia. Remaining top 10 green cities are Minneapolis; San Francisco; Seattle; Austin, Texas; and Portland.

The data used for the survey are based on a sampling of more than 1 million U.S. residents who used EarthLab's Carbon & Lifestyle Calculator, which scores users' personal impact on the environment, factoring in energy consumption, transportation, work, recycling and other lifestyle habits.

The EarthLab calculator has been featured in Leonardo DiCaprio's documentary "The 11th Hour," the 2007 Emmy awards, and the Alliance for Climate Protection , which is chaired by Al Gore.

Top Ten Green Cities

1. Chicago
2. New York
3. Boston
4. Los Angeles
5. Philadelphia
6. Minneapolis
7. San Francisco
8. Seattle
9. Austin
10. Portland

Here’s a link to the story.

Video Reminder To Price It Right

In starting out 2008, I'd like to share the video below that I stumbled upon.

It's from a Realtor in Virginia and I'm sharing it because I think it's funny and clever. More importantly, it's dead on. There are a lot of nice homes in Portland that are not selling right now, but could be if the price were right.