While not quite as dramatic as last month, sales activity in the Portland metro area continued to show improvement in January  2010 compared to the same month a year ago.Closed sales were up 34.7% compared to January 2009 and pending sales rose 24.3%.  However, new listings fell 6.2%. Pending sales were also up 34.5% (1,535 v. 1,141) when compared to December 2009. On the other hand, closed sales fell 34.5% (986 v. 1,506) and new listings grew 87.1% (3,937 v. 2,104) driving inventory to double digits for the first time since May of 2009. At the month’s rate of sales, it would take approximately 12.6 months to sell the 12,449 active residential listings.

Sale Prices

The average sale price for Janua ry 2010 was down 5% compared to January 2009, while the median sale price declined 4%. Compared to December 2009, the average price decreased 3.7% ($282,400 v. $293,300) and the median fell 0.9%  ($240,000 v. $242,200).

There is 7.1 months’ inventory* of unsold homes.  That means if no other homes came onto the market, it would take 7.1 months to sell those properties.  In November 2008, Portland had a 15-month inventory of homes for sale.

Closed sales were up 72.4% compared to November 2008 and pending sales rose 19.9%.

The average sale price for November 2009 was down 11.4% compared to November 2008.

The median sale price declined 9.8%.

The average and median sale prices were down compared with October 2009 levels.

Average sale price is down 3.6% ($273,300 versus $283,500).

Median sale price is down 2.5% ($239,000 versus $245,000).

* Inventory in months is calculated by dividing the Active Listings at the end of the month in question by the number of closed sales for that month.

Dear Eva Sanders,

My wife Mary and I just sold our home on SE 66th St in Portland and bought our new condo at SW 1st St with the help of Deborah Giles.

We met her by chance when we went to an open house in our neighborhood.  She kept in touch after that, and we began the process of preparing, then having the house on the market, and looking for what we wanted with her.

Deborah was a warm, involved professional who listened to our dreams and organized a plan which matched who we are.  She used active, well-planned advertising, and was a very active communicator through the process.  She also was supportive, in an “adult way,” as several tense complications developed.

She certain is an asset to your realty group, and she was marvelously helpful to us.

Sincerely, John and Mary E.”

1. May be used for the purchase or refinance of one-to-four (single family) residences including HUD REO (means “real estate owned”) properties.
2. The loan can be an adjustable or fixed-rate mortgage.
3. The funds to purchase or refinance are combined (and pays off existing liens) with the funds needed to repair or rehabilitate the property. Repairs are completed after closing but you can’t do a “cash-out” refinance.
4. Instead of two separate closings for two loans, the rehab funds are lumped into a single escrow.
5. The money can be used to update a home, handle safety issues or pay for a big ticket item you need (like a new paint job or a roof).
6. Same rules apply in terms of appraisals, property values must be sufficient to make the loans and the buyer must have the means and credit eligibility to get the loans.
7. Sorry, but investors are not eligible (including REO sales).

Despite the efforts of Realtors and mortgage brokers who advertise it constantly, many people still don’t know about the First-Time Homebuyer Tax Credit. The American Recovery and Reinvestment Act allows first-time homebuyers, or those who have not owned a home in the past three years, to take advantage of this tax credit.  The credit is 10% of the purchase price of the home up to a maximum of $8000.  Since most houses in Portland cost at least $150,000, it’s easy to receive the entire $8000.  (i.e., 10% of $150,000 is $15,000.  That’s over the maximum allowed, so the IRS would send $8000). Even an $80,000 condo would qualify for the full $8000!  Here are the basics:

1. Effective on home purchases on or after January 1, 2009 and before December 1, 2009.  In other words, you need to plan now so you don’t run out of time.
2. Any single-family residence including condos, co-ops or townhomes are eligible.
3. Purchasers will receive a refund on their taxes less any taxes owed.  In other words, if you owe the IRS $2125 in taxes for 2009 and you are eligible for the entire $8000, the IRS will send you a check for $5875.  If you don’t owe any taxes or the IRS owes you, then you’ll receive your regular refund plus $8000.  Not bad!
4. Income limits are:  full amount of the credit is available with adjusted gross income of no more than $75,000 for an individual or $150,000 for a joint return. The credit phases out above those caps at $95,000 and $170,000 respectively.
5. If you sell the home within three years of the purchase, the entire amount of the tax credit will be recaptured on the sale.  So, plan to stay in your new home at least 3 years and one day!

I can’t begin to tell you what a wonderful opportunity this is!  Call me and we’ll get started finding your first home!