Real Estate Information

I think our government is starting to get a few things right. Check out the link here.

Remember when the $700 billion bailout was meant to acquire troubled financial institutions to bolster our economy? Here is a direct quote from this article, "The government has abandoned the original centerpiece of its $700 billion rescue effort for the financial system and will not use the money to purchase troubled bank assets." Instead, U.S. Treasury Secretary Henry Paulson is deciding to have some of that ear-marked money go toward economic needs such as credit card debt, car loans and student loans. A percentage will still go toward bailing out mortgage companies trying to help borrowers who need to get their debt under control, but the outlook seems to be leaning away from propping up failed, mammoth lending institutions who were some of the creators of this crisis in the first place.

I am proud of our American economic leaders today. Here's hoping they continue to see the light and aid those truly in need with that huge $700 billion debt we have just mortgaged onto our grandchildren.

As always, have a great day!

Today, I came across a very interesting article concerning purchasing repossessed, HUD-owned properties for $1. This article is here.

Basically, it states that properties can be purchased for $1 by your city or town. The city would then have the option of either rehabbing the property and either renting or selling the property on the open market, or the city could tear down the property and remove an eyesore which can then be turned into something like a park or a rebuilt, newer home to a financially-sound investor. The reality is that there are not that many homes available in the Oregon market that fit this particular mold (most of these $1 buys are found in the midwest - Michigan and Ohio are prime markets). However, perhaps you might contact your city council and advise them to look into this neglected acquisition possibility that might help with your local economy and/or beautifying your neighborhood.

So the next time you turn on your television to a late-night infomercial trumpeting purchasing homes for $1, that information is correct. Unfortunately, these can only be purchased by your city or town. I guess there is truth in advertising. It just depends on how well you advertise your fine print!

Have a wonderful week. :-)

Barack Obama has been elected President of the United States.  And now the repair of our economy begins!  I am thankful that our country has the freedom to elect its leaders.  My hope and prayers are that these newly- and re-elected leaders look to fiscal responsibility in attempting to rebalance our economy.  Massive bailouts and wars abroad are difficult examples that this new administration has in front of it.  With the majority of our population looking for change, a new leadership has been elected to bring us out of our current economic funk.  I believe in our democratic process.  I also believe we need a change.  Congratulations, Mr. President-elect Obama.  You have been charged with a huge undertaking and, as unfair as it seems, my family and millions of other American families trust you to be a man of your word and bring much-needed change for our country.

This information came directly from Jeff Laeng, District Manager/Certified Mortgage Planning Specialist for Avenue Mortgage:  "The Fed officially lowered Fed Funds rate by 50bp bringing the benchmark rate to 1% from 1.5%. This rate again affects short term rates like car loans, line of credits and credit cards. This rate directly affects the prime rate, so prime rate now is at 4%. These rates have not been seen in almost 5 years. By lowering this rate, it usually has the opposite affect on long term rates, meaning they may rise, but due to the stock market shooting up yesterday by almost 900 points, this may mean that long term interest rates will not be affected. We will keep you in the loop in regards to the progress of rates."

So if you are in the market for a home and have spoken with a lender about federally-insured loans (FHA, VA), now might be the time to jump!  Call me if you are interested in purchasing a home in the Mid-Willamette Valley area!  Have a great day.

Over the past few weeks, I've had a few brokers ask me if I have a plat map for my listings.  What I tell them is that I have this fantastic site with satellite images of the exact property they want, complete with approximate property lines lying over the top of the property!  This fantastic site is located here.

The photos from this site are terrific and you are able to zoom in/out at your leisure.  Just grab the screen and move it to center your property, then keep zooming until you can nearly count the dandelions in my yard! :-)

The usefulness of this tool is phenomenal for anyone interested in marketing their property.  So if you have any other real estate questions that may need some answers, feel free to ask!  Have a great day.

I pulled sold statistics for the entire city of Dallas from September 1, 2008 to today.  During this time, 11 residential properties under 1 acre have sold.  The low price was $125,000 (1440 SW Stump St, Dallas - original list of $150,000) to the high price of $275,650 (677 NW Eakin Ln, Dallas - original list of $345,000).  An interesting statistic since October 1 is that properties range from $200,000 - $264,500 -- no properties sold under $200,000.

As election time rolls to within two weeks away, interest rates for a 30-year fixed, conventional loan is 5.75%, down .75% from 10/16/08!  Volatility in the stock market is creating havoc with interest rates.  However, if you are looking for a long range investment, put your money into real assets - real estate!  With over 7,835 currently active listings (up 16.61% from previous year - http://www.wvmls.com/stats/sept08.pdf), your inventory couldn't be more diverse.

Call me if you need a realtor to help you buy your next investment property! :-)

Although this is not a real estate entry, I feel this may be a time when people are getting pounded left and right with negative, ruthless "news", and I'd like to add a little positive, local spin to this day's proceedings:

This past Sunday, I was lucky enough to observe fifteen little 9- to 12-year-old girls from Dallas, Oregon (pop. 13,500) at the Tualatin Athletic & Swim Center and played in U-12 girls' semifinals of the Oregon Youth Soccer Association's annual Kohl's Cup Soccer Invitational.  This group of little girls watched the Portland State University women's soccer team defeat the Eastern Washington University team moments before their game started on the same adult-sized soccer field.  Understand, the Dallas team plays on a 2/3-sized field during their league play.  These little girls had to win in both games the previous two weekends against teams from larger-population Sherwood, and again versus a team from Portland's North Hills in order to advance into the "big" tournament.  They won 3-0, and 3-2, respectively.

What happened before our collective eyes on Sunday was a beautiful display of sportsmanship, class, hard-work, and just plain joy as these little girls played a wonderful Lake Oswego team (defeating them 3-0) in the semis and advancing to the finals.  At the end of the game, although the Lake Oswego team had a few tears, in an unselfish display of sportsmanship, Lake Oswego made a "skydome" for the Dallas girls to run under.  Their was laughter and cheering from and for both teams during this entire sequence of events.

During the exceptional finals with little Dallas facing an equally-talented Gresham team, the regulation game ended in a 1-1 tie, with my daughter, Erin, injuring her knee at the tail end.  Within the 20-minute extra period, with my daughter looking on at the end of the bench, Dallas scored two unanswered goals and won the U-12 girls tournament!  Wins and losses aside, what happened after the tournament is what will stick with me for the rest of my life as a father.

When the teams lined up and shook hands, Erin was scooped up by her head coach, Ty Gunesch, and carried along so she could take part with the rest of her able-bodied teammates, ala Kerry Strug in the 1996 Olympics.  And not one hour after we get home from this tournament, our family receives a telephone call from this same coach checking on the status of one of his players.  THAT is a classy human being.

During times when "win-at-all-costs", "me-first" attitudes, greed, and violence take up the headlines, I will always cherish these little "meaningless" times of watching a joyful moment when a triumphant coach carried an injured player to her rightful place with her team.  My children were there to see and experience this moment.  I believe my daughter will remember it for quite some time.

Yes, msnbc.com, there are good stories in this world.  Sometimes we just have to turn off the television and computer to experience them.  Have a wonderful day! :-)

The President of the United States has signed a bill into law that will give many home shoppers the extra push they need to get off the fence and into a home of their own.  If you are a first-time home buyer, you should definitely investigate the possibilities.

The Housing and Economic Recovery Act of 2008 provides a tax credit of up to $7,500 if you buy a home.  A new Web site, www.FederalHousingTaxCredit.com, explains how this important incentive works.  Here are the provisions in a nutshell:

• Qualifications.  The tax credit is available for first-time home buyer, which under the Act also includes people who have not owned a home for at least three years.
• Income limits.  The credit can be as much as $7,500 but is decreased depending on how much money the potential home buyer makes.  To receive the full tax credit amount, the income limits are $75,0000 a year for single tax payers and $150,000 for married taxpayers filing joint returns.  For partial credit, the upper limit is $95,000 and $170,000 respectively.
• Time limits.  To qualify, a home purchase must occur on or after April 9, 2008, and before July 1, 2009.  For the purposes of the tax credit, the purchase date is the date when closing occurs -- the date when title transfers.
• The way credits work.  Qualified home buyers claim the credit when they file their income tax return -- no addiotional application or certification is required.  A tax credit is a dollar-for-dollar reduction in what the taxpayer owes.  A taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS.
• Payback.  You can look at this tax credit as an interest-free loan with up to 15 years to pay it back.  For example, a home buyer claiming the full $7,500 credit would repay the loan at a rate of $500 a year.  There are exceptions, of course, but all that is explained on the Web site.  www.federalhousingtaxcredit.com also includes links to the resources you need to to help make buying a home easier, including information on the home buying process, financing and new home listings.

Homeownership has always been the cornerstone of the American dream, and it remains the best way for a family to build wealth over the long term.  The HOusing and Economic Recovery Act of 2008 is also designed to help struggling home owners avoid foreclosure and keep their homes and provide a boost to the housing market and economy overall.

The new legislation combined with current market conditions gives home buyers the opportunity of a lifetime to get into the home of their dreams.  Interest rates are still at near-historic lows, and due to the housing downturn, there is a large selection of homes on the market to choose from, and prices are more competitive than they have been in years.

But this opportunity won't be around forever.

Remember that you need to purchase and settle on your new home before July 1, 2009.  As homes currently on the market sell, there won't be a lot to choose from for the next couple of years.  And as fuel and material costs and demand for homes goes up, so will prices.

More than two-and-a-half million home owners and home buyers will benefit from Housing and Economic Recovery Act of 2008.  To find out if it can help you, visit www.FederalHousingTaxCredit.com today.  Learn about home buying opportunities in Oregon by calling or visiting the Web site of your local HBA.

Printed in its entirety from OREGON BUILDER, Jim Patrick October/November 2008.

Based on the traffic to this real estate blog, the most viewed entry by nearly 1000% is here.  And using the popular vernacular, "Back by popular demand..." here are the most recent sales in Dallas since July 1, 2008, straight from the Willamette Valley Multiple Listing Service ~~ Recent solds of residential sales only (under 1 acre parcels), regardless of size, age, price, etc. using Paragon's CMA Summary worksheet:

32 sold properties with an average List Price (LP) of $221,505, the average Sold Price (SP) of $216,471, with the average Days on Market (DOM - from date of list to date of closed sale) of 121 days (one week shorter than my previous July posting).  The low LP was $109,000 and high LP was $449,000 with a median LP of $205,900.  The low SP was $105,000 and high SP was $439,900 also with a median SP of $195,950.

Based on the WVMLS numbers previously posted here on this blog in July, sales have held pretty steady with the median sold price actually having a slight up-tick compared to July ($193,000/July v. $195,950/September).  175 currently active residential properties are available for sale today.  29 of those active listings were listed in July, 28 were listed in August, and 23 in September.  Economic unrest aside, Polk County real estate looks pretty good. :-)

Have a great weekend!

Existing single-family home sales were down slightly in June, but National Association of Realtor's forward-looking indicator suggest sales growth will pick up smartly in the months ahead.  The sales pace was 4.86 million units, down from 4.99 million in May.  The pending home sales index, though, jumped to 89.0 from a downwardly revised 84.5 in May. (Realtor Magazine, September 2008).

Steady Buyer Traffic

Practitioners' expectations remain moderate but the outlook for buyer traffic is holding up well, with only a statistically insignificant easing seen.  Practitioner confidence in seller traffic is down, though.  Practitioner views were surveyed in July. (Realtor Magazine, September 2008) *Results are based on 1,562 responses to 3,000 surveys sent to large and small real estate offices.  The survey asks practitioners to indicate whether conditions are strong (100 points), moderate (50), or weak (0).  Responses are averaged to derive results.