Stimulus Plan Overview

To anyone who owns a home and are afraid of having it foreclosed, the stimulus package is incredibly important. There are going to be three main ways that Obama's is going to try to help people stay in their homes. First, 3-4 million people whose mortgages are owned by Freddie Mac and Fannie Mae will be able to refinance with long term, fixed rates, possibly in the low 5% range. Second, people who might be foreclosed upon in the near future will be able to do a co-payment plan with funds from the government. Finally, the government is going to give Fannie Mae and Freddie Mac an additional $200 billion. While these measures may not be enough for those in the worst markets of the Southwest and East, they may keep those markets, such as the Northwest, that are in fairly good shape from ever getting that bad. In addition to aiding homeowners, the stimulus plan also has good news for first time home buyers- an $8000 tax credit for those that purchase between January 1, 2009 and December 1, 2009!

Latest Portland Real Estate Market Info

Today the latest numbers on the Portland Oregon real estate market came out from the RMLS. As always with the market these days, there is both good and bad news. To get it out of the way, the bad news is that sales in January 2009 were down 32.5% from January 2008. On to the good news! Pending sales in January 2009 were up 52.5% from December 2008, and new listings increased 123.2%! As for sale prices, the average sale price in Multnomah County dropped just 1% for this January compared to the beginning of 2008. That is an incredibly small decrease compared to other local counties that had drops of up to 9% from 2008 to 2009.

Some numbers that I always think are interesting are the January median sales prices by Portland Metro region.

North Portland: $232,300
NE Portland: $261,900
SE Portland: $206,500
West Portland: $347,300
Milwaukie, Gladstone, Boring, Clackamas, Estacada: $263,000
Lake Oswego/ West Linn: $429,500

Recession Home Improvements

Whether you are sprucing up your home to sell, or want to make it more comfortable for your family, there are many penny saving things that you can do now. To keep the heat in and give a fresh look to the house you can update windows, and get up to a $500 tax credit. Adding solar panels is a big investment, but you can lower your energy costs, and give your home something extra to attract buyers who are ecocontious and also hoping to keep electicity bills down. Something a simple and attractive as planting leafy trees can cool a house in the summer with shade, and allow sun in during winter months when the leaves have dropped. Keep a tally of all the money saving improvements you make on your home now, and pass that information on to your real estate broker, they can include these benefits when advertising your home. Buyers can often be overwhelmed by the extra costs in owning a home for the first time, or upgrading to a larger home, but knowing how you have lovingly cared for the home can reassure them that they are making a wise choise. Even if you arent' planning on moving now, if you can invest in your home, do it while the tax credits are high and contractors are in need of work, you might be able to get a better deal, and save money in the long run.

Foreclosures and Short Sales

A new CNNMoney.com report states that as real estate values around the nation have collapsed the sales of foreclosed and short sales homes have risen. Zillow.com also reported that nearly 20% of the nation's home sales in 2008 of bank owned properties. On top of that , another 11% were short sales. A short sale is when the seller owes more on the mortgage than what the property is selling for; they are selling short of what they owe.
With almost a third of nationwide home sales in these situations it is good to know that both buyers and sellers can take advantage of the market. It is easy to see that it is a buyer's market, with so few buyers and so many homes for sale, property values have dropped or stagnated. Sellers who are not in foreclosure are in a good position as well, many buyers do not want to get involved in the long and often stressful negotiations with a bank owned property, and are quick to jump on properties that can have a quick and reliable closing timeline. It is also a great time to move into a larger home, or one in a neighborhood you have desired to live in. Interest rates are low, and that means you can get more house for your dollar. Always consult with your lender and Realtor before making any big decisions, but don't be afraid to enter the real estate market now!