PDX January 2010 Market Action

January Residential Highlights

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).

PDX November 2009 Market Action

The November 2009 Market Action Report was released today by the RMLS (Regional Multiple Listing Service).  Here are the highlights:

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.

Better Hurry …

I’m working with 4 active first-time home buyers right now.  They’re all looking for a home in the “under $235K” price range, but in different parts of Portland.  Some want a house, others want a condo.  Folks, it ain’t easy right now.  The starter homes are selling quickly.  Yesterday’s story:  the house sold on its first day on the market.  There were a total of 4 offers.  I’m telling you … don’t delay.  If this demand continues, we’ll see prices start to rise.  Interest rates already have — don’t miss a chance to own a home.  We won’t see prices and interest rates this low forever.  Remember:  the $8000 tax credit for first-time buyers ends on November 30, 2009.

Client Testimonial

I guess I should call this my “braggin’ wall.”  Recently, I represented a great couple who had decided they wanted to make a lifestyle change.  So together, we listed and sold their house in the Mt Scott/Arleta neighborhood and they bought a cool condo downtown.  My Principal Broker (the boss) received this nice letter and I wanted to share it with you.  My goal is to make my clients’ transactions smooth and successful! I can’t help but love getting praise like this!

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.”

Rehab Financing Program

So you’ve found your dream house, but there’s one small problem.  It could stand some sprucing up, but you don’t have the cash to buy it and renovate it.  That’s where the FHA’s 203k financing program can help.  There is no doubt that as homeowners walk away from houses they can’t afford there will be a certain amount of deferred maintenance that new homeowners will face.  So the FHA is offering up to $35,000 to take care of those needed improvements whether it’s a home you want to purchase or a home you already own and plan to refinance.  Here are the basics:

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).

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