I Have a New Website!

I have a new website, with a blog built in, so I will no longer be updating this site.
Visit me here: BETH'S NEW BLOG AND WEBSITE
You will get multiple pages, plus video blogs!!!
Hope to see you there!

10 Reasons to Buy a House Now!

My sources are, as usual, the National Association of Realtors' Realtor Magazine, and the Wall Street Journal. Both push home ownership (I bet you can see their motivation) and so do I, but only for about 60% of the American population. Since WWII the homeownership rate hovered around that, but during the bubble of the mid 2000s it soared to 69%. So the 9% of Americans who were owning homes probably shouldn't have been. Now they have lost them, or are loosing them, and the real estate market is having to re-adjust. But on a lighter note:

1. You can get a good deal. Prices are down 30 percent on average. They're at a level that makes sense for people's income.

2. Mortgages are cheap. At 4.3 percent on average for a 30-year fixed-rate mortgage, your costs to own are down by a fifth from two years ago.

3. You can save on taxes. When you add up the deductions for mortgage interest and others, the cost of owning can drop below renting for a comparable place.

4. It'll be yours. The one benefit to owning that never changes is that you can paint your walls orange if you want (generally speaking; there might be some community restrictions). How many landlords will let you do that?

5. You can get a better home. In some markets, it's simply the case that the nicest places are for-sale homes and condos.

6. It offers some inflation protection. Historically, appreciation over time outpaces inflation.

7. It's risk capital. If the economy picks up, you stand to benefit from that, even if you're goal is just to have a nice place to live.

8. It's forced savings. A part of your payment each month goes to equity.

9. There is a lot to choose from. There are some 4 million homes available today, about a year's supply. Now's the time to find something you like and get it.

10. Sooner or later the market will clear. The U.S. is expected to grow by another 100 million people in 40 years. They have to live somewhere. Demand will eventually outpace supply.

Portland's Median Sale Prices- Some Gains, Some Losses.

North Portland: July: $227,000 August: $215,500 -$11,500
NE Portland: July: $251,500 August:$262,800 +$11,300
SE Portland: July: $197,700 August:$213,000 +$15,300
West Portland: July: $377,100 August:$353,000 -$ 24,100
Gresham/Troutdale/Sandy/Corbett/Fairview: July: $185,500 August:$205,000 +19,500
Milwaukie/Gladstone/Boring/Clackamas/Estacada: July: $240,000 August:$248,000 +8,000
Lake Oswego/West Linn: July: $416,500 August:$385,000 -$31,500
Beaverton/Aloha: July: $230,000 August: $209,500 -$ 20,500
Tigard/Tualatin/Sherwood/Wilsonville: July: $301,000 August: $275,000 -$26,000

Mortgage Defaults are Dropping, Repossessions are Rising

Banks repossessed more homes last month than they have since the beginning of the housing crisis, even as the number of homes going into default continued to drop for the 7th month in a row, according to foreclosure listing firm RealtyTrac Inc. Banks have increased foreclosures to clear out their inventories of bad loans, but despite repossessing 95,364 homes last month, they still have thousands to go.  Analysts predict that this shadow inventory will prevent home prices from bottoming out, despite a 28 percent decline in prices from 2006. “Whether it’s the sidelined, shadow, or current inventory, the issue is there’s more supply than demand,” said Oliver Chang, Morgan Stanley housing strategist. “Once you reach a bottom, it will take three or four years for prices to begin to rise 1 or 2 percent a year.”
Source: Realtor Mag

97213 Market Update

Let's look at a super local market snapshot- the zip code 97213 in NE Portland Oregon. That's my zip code, and the average price and days on market are standing firm, but the buyer's market that we have had for the last few years is trending downward. This means that in NE Portland there are less buyers who are actually making purchases. For more information on home buying and selling in NE Portland, contact me at bethsilva@cbseal.com. 

Short Sale Fraud- What to Look Out For

There are always bottom feeders who will take advantage of people when they are at the lowest point of their life. In real estate it is no different. The latest scam is short sale fraud- real estate and miscellaneous agents are running 2 main schemes right now.
1. The agent negotiates for the seller with the lender to sell at a really low price, an accomplice of the agent, called a "straw man," buys at the low price, then the agent turns around and sells it for much more.
2. The seller has a friend or family member purchase the home from them as a short sale, then they turn it back over to the original owner. This may be seen by some as a way to have family "re-finance" the house, but it's fraud!
A review of sales nationwide by CoreLogic found that about 2% of short sales that sell are probably fraudulent. They looked at short sales that were flipped, and sold at a much higher price.
Since the number of short sales has risen dramatically- 400,000 so far in 2010 compared to 100,000 in 2008- more and more people could be at risk for this fraud, either as buyers or sellers.
Source: NYT 9-10-10 Bob Tedeschi

Ecotourism in Portland Or

The fourth Ecotourism and Sustainable Tourism Conference (ESTC) is in Portland today and Friday. It has drawn about 340 delegates from over 20 countries.  Put on by the International Ecotourism Society (TIES) the conference this year focuses on practical ideas. Local breweries, wineries, casinos, and institutions such as OMSI are involved. To learn more visit their website here.

New FHA Program to Help Underwater Homeowners

FHA debuted a(nother) plan yesterday to help out homeowners who are underwater on their homes. The plan will allow lenders to refinance loans, and forgive up to 10% of the amount borrowed. Borrowers must be current on their mortgages, and owe at least 15% more than the current market value of the home. This is not a required program, and lenders do not have to apply it to any loans. The government estimates that between 500,000 and 1.5 million home owners will be helped, but Barclays' analysts doubt that even 300,000 will actually be helped. We can add this to the long list of programs that the government has proposed, we'll have to wait and see if it gets implemented, or has any affect on the economy or housing market.
Source: Alan Zibel AP 9-7-10

Understanding Capital Gains

When you sell a stock, you owe taxes on your gain — the difference between what you paid for the stock and what you sold it for. The same holds true when selling a home (or a second home), but there are some special considerations.

How to Calculate Gain
In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate, follow these steps:

1. Purchase price: _______________________

The purchase price of the home is the sale price, not the amount of money you actually contributed at closing.


2. Total adjustments: _______________________

To calculate this, add the following:

• Cost of the purchase — including transfer fees, attorney fees, and inspections, but not points you paid on your mortgage.
• Cost of sale — including inspections, attorney fees, real estate commission, and money you spent to fix up your home just prior to sale.
• Cost of improvements — including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.

3. Your home’s adjusted cost basis: _______________________

The total of your purchase price and adjustments is the adjusted cost basis of your home.

4. Your capital gain: _______________________

Subtract the adjusted cost basis from the amount your home sells for to get your capital gain.

A Special Real Estate Exemption for Capital Gains
Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:

• You have lived in the home as your principal residence for two out of the last five years.
  
• You have not sold or exchanged another home during the two years preceding the sale.
  
• You meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.

Source: Realtor Magazine

Staging Your Home

How do Buyers Find Their House?

The 2009 NAR survey found that buyers split the source of the home they purchase evenly between their Realtors and the internet. It does not qualify if their Realtor sent them the listings they are viewing online, which I do for all of my clients. No one found their house through a magazine of listings, which really makes me question why I'm paying monthly to have my listings put in one. Hmm. 6% found it through a friend, relative or neighbor, which I really like to see, because it let's people build their own neighborhood- have people you like move in next to you! 12% found it through a sign or open house, and I bet most of those buyers went home and checked it out online after they saw the sign, or called their Realtor.

Sellwood Bridge: New Design Vote

The Sellwood Bridge is going to be replaced, with groundbreaking the summer of 2012. The current bridge is in such poor condition that it only scored a 2 out of 100 on the Federal Infrastructure scale. The bridge alos is very undersized for car, pedestrian, and bike traffic. The new bridge will cost $330 million, with Multnomah County picking up its share of the tab beginning this week with a new $19 vehicle registration fee increase. The citizen committee, along with architect Ricardo Rabines scored the 12 proposed designs for the bridge, using input from a 2400-person city-wide survey. The designs are all very different, ranging  from the cheap and functional "Concrete Box Girder" to the iconic, highly-modern (and expensive) "Steel Extradosed." This one was deemed the Ugliest: 

 And this one the Most Beautiful:

I agree, the second option is vastly superior to the first, and is in line with the rest of the bridges in Portland.

4 FICO Schre Myths Busted

Since I'm not a mortgage broker, and don't work at a bank, I rely on experts for financing information. One of my favorite recourses is Mint- an online money management website. I use it to follow my bank accounts, and I love their blog for the way it explaines complex financial rules and policies. This is today's post on FICO scores. You can also go to the website here.
"FICO scores have been around since 1989, but they weren’t thrust into the public’s eye until the mid 1990’s when Fannie Mae and Freddie Mac endorsed their use in the mortgage environment. And by “endorsed” I mean, “forced.”


Mortgage lenders had until the late 90’s to fully implement FICO scoring into their underwriting processes. I was at FICO (FICO) when this happened and one of my jobs was to criss cross the country speaking at mortgage broker and banker events teaching these really angry people about the new tool that just got shoved down their throats. Talk about being the least popular guy in the room.

This GSE “endorsement” also meant a whole lot of public scrutiny of a tool that had always remained a secret to consumers, albeit unintentionally. I mean, if you don’t sell something directly to consumers then why would consumers know about it? No, FICO’s entry into the mortgage market meant more press, more attention, more criticism, more work for me, and a whole lot of incorrect information being passed off as the truth.

So, here is a list of a few FICO score myths that I have run into over the past 12 years. And, the subsequent debunking. There are certainly many more, which I will address as time goes on.

FICO Scores Consider Income, Yes or No?

The answer is NO. The FICO scores that we’re all familiar with are credit bureau-based scoring models. That means they only consider information on your credit reports. And, guess what, your income is not on your credit reports. There are models that consider income, as listed on your credit applications, but these are not the FICO scores that we all know and love.

John’s Final Thought: Income is a measurement of capacity (whether or not you can afford your payment) not creditworthiness (whether or not you’ll choose to make your payment.)

Closing a Credit Card Will Improve Your FICO Scores, Yes or No?

The answer is NO. This makes common sense, less available credit means you can’t get into as much credit card debt and therefore you’re a better credit risk.

The problem with that hypothesis is that it’s incorrect. And, thankfully, credit score development isn’t a common sense exercise. The empirical evidence shows, and has shown for over two decades, that having a lot of “open to buy” (unused credit limits) equates to better credit risk. This is commonly referred to as “revolving utilization”, the percentage of your credit limits that you’re currently using. Closing cards can actually increase this utilization percentage and lower your scores.

There’s a secondary myth to this one that says keeping your utilization percentage at or below 30% is the best for your score. That’s also incorrect. Nothing magical happens at 30%. It’s better than 40% but not as good as 20%. In fact, according to FICO, consumers who have scores above 760 have an average utilization percentage of just 7%.

John’s Final Thought: Shoot for lowering your balances to $0 if you can but if you can’t, get them as low as you can and your FICO scores will benefit. NOTE: This only applies to credit cards, not installment loans.

Closing a Card Causes You to Lose the “Age” Benefit of That Account.

This is incorrect. One of the secondary factors in your FICO score is the average age of the accounts on your credit reports. The older the average, the better for your scores. There’s a myth that closing a credit card account will somehow remove that card from consideration in the average age calculation.

Here’s the real deal: FICO scoring considers open and closed cards when determining the average age of your accounts. Closing the card doesn’t remove it from your credit reports so it’s still going to be considered.

John’s Final Thought: Be careful when deciding to close credit card accounts. Re-read myth #2 above for the reason.

Spreading Balances Across Multiple Cards Helps Your Scores.

Incorrect. First off, there’s no hiding credit card debt by doing this. $10,000 on one card is still the same amount as $1,000 on 10 cards. The aggregate revolving utilization percentage (see #2 myth above) is that same either way so you gain nothing there. But, what you have just done is to increase the number of accounts you have with a balance greater than $0, which is going to lower your scores.

John’s Final Thought: Stop trying to beat the system. Do you think the folks at FICO are idiots? Pay off your credit card debt, stop trying to shuffle it around.

Keep your eyes open for episode #2 of FICO Mythbusters. Coming soon to a Mint near you.

John Ulzheimer is the President of Consumer Education of Credit.com and the author of the book “You’re Nothing But A Number.” He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO and Equifax, John is the only recognized credit expert who actually comes from the credit industry. He has served as a credit expert witness in more than 60 cases and has been qualified to testify in both Federal and State court on the topic of consumer credit."

What to Look for in a Builder

New home construction is down right now, the market is already filled with newer homes that are short sales and bank owed, but if you are thinking about have a home custom built, here are some tips for vetting the builder.
   1.  Hire a good real estate attorney who has experience with new-construction contracts, knows state law, and is familiar with the issues unique to the area in which the property will be built.
   2.  Hire a Realtor who has experience with new home construction, and has worked with more than one builder.
   3.  Talk to other customers. Ask how satisfied they are with the builder and how his projects have held up over time.
   4.  Investigate. Search the builder’s name and company online and make sure that there aren’t lots of complaints about him.
   5.  Expect him to negotiate. In this market, a potential customer should be able to expect that a builder will be flexible.
 Source: Realtor.com

Facing Foreclosure in Oregon

As I said earlier this week, I went to a class on short sales and foreclosures that made my head swim, there was so much information. I got this great handout from real estate attorney Ben Knaupp, which I thought I'd pass on to you all.

TMI!

As in Too Much Information on Short Sales and Foreclosures. I just got back from a great, if challenging, class on the new mortgage relief, short sale, and foreclosure programs. Basically, the advise is: go see a real estate attorney! That's always been my motto, but now more than ever it is very important to have an attorney who know Oregon law, and a tax accountant, go over the options with you, and really figure out what is best for you. There are very few mortgage holders who will qualify for the alphabet soup that is the federal government's response to this mortgage crisis, but if you would like more info on HAFA, HAMP, HAUP, etc. check out www.knowyouroptions.com - a government site that will guide you through the preliminaries. One final note- if you can pay your mortgage, you will not get a short sale.

heading off to the morning meeting at Elephant's Deli, too bad they don't give us food for free!

Saw 6 new listings today on Eastside Tour- Prices are getting realistic! realestate pdx

41 Energy Saving Tips!

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  5 Tips for Saving Energy in the Family Room

  Reduce your electricity bills by systematically purging your family room of wasteful energy practices. Read
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  12 Tips for Saving Energy in Your Home Office

  Cut your power consumption, lighting, and heating and cooling costs when you work from home. Read
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  7 Tips for Saving Energy with Home Lighting

  Lighting eats up as much as 20% of your annual electric bill, but using energy-efficient bulbs and making other simple changes can cut lighting costs dramatically. Read
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  10 Tips for Saving Energy in the Kitchen

  Maintain your large kitchen appliances is part of a smart home energy efficiency plan. Read
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  7 Tips for Saving Energy in the Laundry Room

  Understanding your laundry room appliances is part of a smart plan to help you save energy in your home. Read

Visit houselogic.com for more articles like this.

Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®

Location vs Price

I asked that question on Trulia.com last week- which is more important to first time buyers. A lot of other real estate agents answered. They didn't say anything, just blathered on about how both are important and people need to find the right location with the right price. Obviously. But I really want to know what others think about giving up on living in their favorite neighborhood because they can't afford it, and all that entails such as longer commutes to work, friends, family, not being in the preferred school district, or having access to amenities? And what about people that are willing to pay more than they would like to have those things- do they regret it? End up loosing the house? I know that when my husband and I bought our first house we ended up looking for over a year because we were unwilling to live in certain areas, and we ended up paying a little more that we had originally thought we would to be in a neighborhood of our choice. And we are still about 30 years away from being able to afford the kind of house we want in our dream neighborhood! Just as I was thinking about this issue I came across an article about this subject, below is an excerpt that I think looks at the issue logically, while not ignoring how people actually approach buying their first house (illogically).
"Although buying cheap housing may be a good strategy for some investors, buyers searching for a home they'll occupy should not let price be the primary factor influencing which home they buy.
A home that won't work for the long term is not a good deal even though it's cheap if you'll have to move again in a few years. In fact, you could lose money using this approach, particularly if home prices haven't stabilized by then.
It's also not a good idea to buy a home that's not quite right for you just to take advantage of today's low interest rates. The winning strategy for today's homebuyers is to buy and hold.
The homes with qualities that are in high demand are located near a major metropolitan center or have good public transportation to get there. They are close to shops, cultural venues, restaurants, parks, and have good public or private schools close by and good public services.
The location within a neighborhood, condominium complex or cooperative can make a big difference in value. A home on a quiet cul-de-sac will generally sell for more than one in the same neighborhood that's on a busy street. Premiums are paid for homes with views, leveled-out private backyards and good natural light.
Be wary of listings that appear to be underpriced. They could be priced low to generate multiple offers, so they might sell for more than the list price and more than you can afford to pay. Or, there could be other reasons why they are listed at a lower price.
Often the lower-priced homes in an area don't sell for more because they have incurable defects. An incurable defect is something you can't change like a shared driveway, close proximity to a freeway or an entry to the home that's two flights of stairs up from the garage.
These homes may sell well in a hot sellers' market when buyers overlook defects because prices are rising rapidly. But, these homes can be hard to sell in a down market when buyers are less forgiving and are willing to wait for the right house.
THE CLOSING: Ideally, you want to buy a home that will be in demand in any market. If you can't afford to buy one that's in move-in condition, it's better to buy a home you can afford and that needs only minor improvements than one that looks great but has an incurable defect like an unworkable floor plan." Source: Dian Hymer

Living Somewhere Affordable vs. Living Somewhere Desirable

The age old real estate rule is "Location Location Location," which rings true not just within a town, but over the country as a whole. Let's say your requirement is that you must live in the United States- and get an average paying job. According to the CNNMoney Most (and Least) Affordable Cities you'll pick
1. Syracuse NY
2. Indianapolis IN
3. Detroit MI
4. Youngstown OH
5. Buffalo NY
Yes houses are cheap. Because so many banks own the houses because everyone lost their jobs and couldn't pay their mortgages. Not really a situation I would want to be moving into. Hopefully these towns will all see increases in their real estate values as jobs are created in industries that can adapt as times change.
Maybe I'm spoiled, but not all of their Least Affordable Cities seem that awesome!
1. New York NY
2. San Francisco CA
3. Santa Ana CA
4. Los Angeles CA
5. Honolulu HI
Okay, Honolulu would be nice. Houses in these locations are so expensive because there is little land to expand and build cheap houses on. Here in Portland with the firmly set Urban Growth Boundary we should expect to become more like San Francisco over the next 50 years- Yes you can move out of the city into a very nice suburb and commute, but do you really want to? Or will a large portion of the population pay more for less square footage and the convenience and pleasure of living in the city itself? I hope so! Portland does not make the ranking for Most or Least expensive, which is great!

3 Reasons to Buy Now- According to NAR

And it's not like they have any vested interest in having people buy houses. Oh wait, they do! Anyway, I agree with their reasons, especially it it's the right time for you to buy.
• Desperate sellers: Both home owners and lenders are eager to unload a flood of foreclosed and underwater properties. Buyers with the patience to push through these complex deals can save a bundle.

• Little competition. Because most people don’t have what it takes to negotiate their way through short sales and REOs, patient investors are winners.

• Low rates. Mortgage rates are at their lowest level in 40 years. If you believe inflation is inevitable, lock in now.

Source: MarketWatch, Michael Murphy (08/19/2010)

Median Sale Prices by Portland Metro Area

Once again, back by popular demand (of my own) is the RMLS Market Action Median Sales Price Map!
North Portland: $227,000
NE Portland: $251,500
SE Portland: $197,700
West Portland: $377,100
Gresham/Troutdale/Sandy/Corbett/Fairview: $185,500
Milwaukie/Gladstone/Boring/Clackamas/Estacada: $240,000
Lake Oswego/West Linn: $416,500
Beaverton/Aloha: 230,000
Tigard/Tualatin/Sherwood/Wilsonville: $301,000

Monthly Market Report from RMLS

July Residential Highlights
When comparing sales activity in the Portland metro area in July 2010 to the same time last year, July 2009, closed sales declined 29%. Pending sales also decreased 24.9% and new listings rose 3.1%. On a month-to-month basis, when comparing July 2010 to June 2010, closed sales fell 29.8% (1,412
v. 2,012), while pending sales grew 0.7% (1,629 v. 1,618). New listings also fell 0.5% (4,029 v. 4,049). At the month’s rate of sales, the 15,271 active residential listings would last approximately 10.8 months.
Sale Prices
The average sale price for July 2010 increased 2.9% compared to July 2009, while the median sale price went down 1.6%. When comparing July 2010 to the month prior, June 2010, the average sale price increased 2.5% ($297,000 v. $289,000) and the median sale price also went up 2.5% ($246,000 v. $240,000).
Year-to-Date
Inc re a s e s a re s e en when comparing January-July 2010 with the same period in 2009. Closed sales were up by 22.5%. Pending sales also went up 9.1% and new listings grew 6.8%.  RMLS Market Action Report

Repossessions are Up, Set Yourself Up for a Sluggish Recovery

As the numbers and statistics do not improve for the economy, banks are acting like any business and clearing out their inventory- in this case bad loans. Lenders repossessed 92,858 properties in July 2010, up 9% from June 2010 and up 6% from July 2009. This means that they are not just letting people sit in homes that the foreclosure process has begun on, they are going out and taking the houses back. Luckily, there are less homes this year than last year that are receiving the initial default notice, the first step in the foreclosure process. It rose just 1% from June to July of this, and is down at whopping 28% from 2009. The states most affected by foreclosures continue to be: Nevada, Arizona, Florida, California, Idaho, Michigan, Utah, Illinois, Georgia, and Maryland.

Who's in the Mood for Free? I am!

Free concerts are a great way to get out and about in PDX in the summer, and believe it or not but we do have several weeks left of summer.
These ones are all child-friendly, and I hope for my sake dog friendly too:
Kenton Park – N. Kilpatrick & Delaware, 6:00-8:00 PM

No food vendor: Bring your own picnic!
      Aug 17: Chata Addy & Susuma (Afro highlife)
      Aug 24: Portland International Raceway presents Hillstomp (bucket & stomp blues)
Ventura Park – SE 115 & Stark, 6:00-8:00 PM
Free art activities for children will begin at 6:00 PM each week.
Food vendors: Burgerville Nomad, Portland Ice Cream
      Aug 11: Joni Harms (country western)
      Aug 18: Aaron Meyer (rock violin)
      Aug 25: Conjunto Alegre (tropical dance party)
Couch Park – NW 20 & Glisan, 6:30-8:00 PM
Free art activities for children will begin at 6:00 PM each week.
Food vendors: Hot Dog Ernie’s, Island Daydream Natural Shave Ice
      Aug 5: Linda Hornbuckle & Friends (divas of soul)
      Aug 12: Freak Mountain Ramblers (Americana, bluegrass)

Free Portland Sunday Concert Series @ Rontoms- not child friendly, this laid back bar and concert venue is a great place to unwind. All concerts begin at 9pm.
8/08 :: Dat’r w/ Double Plus Good + Spain in the 70′s
8/15 :: Ramona Falls w/ Monarques + Dirty Mittens + Palmz
8/22 :: Portland Folk Fest w/ Celilo + Lee Corey Oswald + More
8/29 :: Iretsu w/ Yours, Sean Battles
9/05 :: Soundpool + Guests
9/12 :: Dolorean w/ Derby + Norman

I hope to see you all there!

Street of Dreams Part 2

Main Floor

                                 Lower Floor
It took me a little while to get around to it, but here is my second favorite house at the NW Natural Street of Dreams Portland 2010. Called Transitions (I know.) and built by Hearth & Home, this 2,800 square foot, 4 bedroom, 4.5 bathroom home is listed for $849,000. It's my second favorite house, behind Idea Box's Fortino, because the layout allows for so many different families to be comfortable. Each bedroom has it's own bathroom, and there are 2 each on the ends of the home, allowing privacy for older children, guests, or other family members to live with  out being on top of each other. The finishes were also superb. Understated colors, beautiful tiles and and modern, simple lines. There are eco-friendly systems and finishes, and the landscaping was designed with bioswales to reduce storm water runoff.

My Favorite House on the Street of Dreams

I went to the NW Natural Street of Dreams was the modular home by IdeaBox. The Fortino, pictured above, was built off-site, and installed in 2 weeks, which is a long time for them- usually installation is 3-4 days! Many people on the shuttle with me called it a "manufactured home," but this sleek, elegant, and high end small home is far from the parks you may be picturing. Think of a condo in the Pearl, but with your own lot. Think of a European boutique hotel, but your for all time.  At only 1,250 square feet, this 2 bedroom, 2 bathroom, home is a marvel for $148,000, lot not included. I can see myself, and many of my friends and clients, purchasing a home like this. The interior is customizable, and I think it could be easy upgraded as you grew into the home. Perfect for first time buyers, down-sizers, as a vacation home, or a primary residence. I can picture this house at the beach or in the mountains as a vacation home, or a great alternative to a mobile home on acreage. I enjoyed the whole Street of Dreams this year, and I will highlight my other favorite home tomorrow, but I think that IdeaBox's Fortino was the most innovative and creative out of the 6 homes.

I'm Moving Uptown!

I am pleased to announce that I have moved to the Uptown Office of Coldwell Banker Barbara Sue Seal Properties. I have been with Coldwell Banker Seal since I began my career, and I am thrilled to join this prestigious office. Located on the corner of W Burnside and NW 23rd Ave, the Uptown Office is known for it's urban feel, strong local history, and many know this office for the Seal on the roof. I am continuing to work in NE and SE Portland, as well as the greater Metro Area. If you or anyone you know would like to buy or sell a home, please call me at 503-367-1877, or visit my website at BethSilva.com.

Home Ownership Drops Dramatically, Media Continue to Freak Out

Part of the Census Bureaus job is to gather extra information on all of us, including if you own, rent, or squat where you are currently living. As of this the second quarter of this year, 67% of  Americans own homes, the lowest level since 2000. Out here in the West it's even more dramatic, with 61% of adults owning homes. Rental occupancy has also fallen, leaving us to ask: Where are people living? Since many people have lost homes due to foreclosure, and lost jobs and therefore had to short sell their homes, my guess is that people are living with family, friends, and renting illegally more than we have seen in decades. Many of my friends, even those with good jobs and prospering careers, continue to live cheaply and share houses and apartments. Generations within families are also co-cohabiting, either grown kids are moving home, or elderly parents are moving in with their boomer children. All of these moves are a return to a more conservative purchasing philosophy that has been lost on most Americans over the last few decades. Buying a home wasn't considered a right, it was a dream that had to be worked hard for. I for one am glad to see ownership rates settling back into a more realistic percentage of the population. 

Green Roofs- The Next Improvement You Should Make?

                                                        Photo: http://www.gamil.com/2008/07/15/why-does-portland-have-to-be-so-great/
Green roofs are popping up around Portland, which makes sense because things want to grow on our roofs whether we like it or not, but is this green trend right for you and your house? For the standard 3,000 square foot roof replacing it will cost about $20,000, about 3 times the cost of a new composite roof. According to Remodeling Magazine's 2009-10 Cost vs. Value Report you will recoup about 2/3 of the $20,000 when you sell. That may not seem like a good investment, especially if you are planning on selling in the next few years. 

A green (or living) roof is become more practical to average homeowners each year, now you can use modular systems for easy installation. Plastic grids fit together, keeping soil and plants in place on sloped roofs. This costs about $10-30 per square foot, depending on whether they are pre-loaded or not. Check out LiveRoof for samples and to order. Read more about green roofs and other eco-friendly things to do to the top of your house here.

Short Sales and Bank Owned Properties In Portland

When looking for a house these days it seems rare to find an actual person selling their house. Short sales and bank owned properties feel like they dominate the Portland market, but RMLS just compiled the stats, and found that they are actually a small percentage of homes for sale. Of all the listed houses on RMLS (31,762) 11.7% (3,731) are short sales and 5.4% ( 1,715 ) are bank owned. As you can see in the chart above, that doesn't seem so overwhelming. Houses actually getting sold is another thing, the percentage goes up for bank owned properties and down for short sales. Many short sales are never sold before the bank forecloses on them, and it is a very long and painful process to purchase a short sale, so it is no surprise that not as many are getting offers accepted (by the bank that holds the mortgage) or actually closing the deal.

Finally, for houses that are sold, of the 17,751 sold in the RMLS area from January 1, 2010 to June 30th, 2010, 9.1% (1,620) were short sales, and a whopping 19.3% (3,422) were bank owned.

June Market Action Report

Prices are down, but sales are up. That is the Portland real estate market in a nutshell. From June 2009 to June 2010 prices are down 4%, which is not bad considering the rest of the country, and how many short sales and bank owned homes are in our market. The good news is that with prices dropping people have been buying houses. They may be first time buyers spurred on by the tax credit, or maybe they were moving up or down, but getting more house for their money, and more seller concessions. Below is the map with the median sale prices for the Portland Metro Area.

Appliance Rebate Expanded in Oregon

As of July 1st, 2010, the Oregon Appliance Rebate Program expanded to now include dishwashers, refrigerators, hot water heaters, and washing machines. The program will rebate 70%, or $2000, of the cost of new Energy Star appliances to those that qualify. Check the chart to see if your income allows you to take Also, check out the Oregon Department of Energy's rebates, and The Energy Trust of Oregon for even more!  There are lots of ways to save money on great appliances that will lessen your bills and your carbon footprint, as well as make your home more comfortable and desirable.

Home Repairs- DIY or Hire a Pro?

I found a great article for the regular home owner on whether to attempt a repair project yourself, or to hire a professional. They rely heavily on the Home Depot, which is a store I frequent, but I think that you can find instructions on line or from a handy friend just as easily as going to an in store class. Check out Mint.com for the original post and for a bunch of other articles.
"Watch a few episodes of This Old House or Kitchen Impossible, and you may fancy yourself a competent carpenter or handyman. If TV hosts can do it in sixty minutes or less, how hard could it be, right?
Actually, some home repairs could be hard enough that you’d be better off hiring a professional. Even if it seems pricey, a botched DIY job can end up costing even more money in the long run. We asked Mike Albrecht, a division direction for installation at Home Depot, to help us figure out when to DIY and when to dial a pro. Albrecht oversees the store’s professional installers and has also worked with instructors helping do-it-yourselfers through in-store demos.
Albrecht says there are four main factors to consider with home repairs: cost, safety, permits/compliance, and time/convenience. The right decision depends on the individual’s skill level and desired results. Here are some additional factors to consider based on the project.
(Please keep in mind that the information in this article is intended to be informational only. When tackling your own home repair projects, follow instructions as outlined in your warranty or consult your local government for information on safety permits.)

Painting

“Painting’s a great DIY project,” says Albrecht. However, would-be painters should consider height and weather conditions, especially when planning exterior painting projects. “If you’re looking at painting a second story, then you probably want to consider a pro,” he says. “Height and safety concerns are the biggest factors.”
Whether you’re painting indoors or out, do your homework to make sure you’re using the right materials for your surface so you can get it right the first time. “[Painting] may be a waste of your time if it has to be redone and you have to go back and re-buy products,” says Albrecht.

Plumbing

Simple projects like installing a new faucet don’t necessarily require a plumber, but you’ll usually need to know how to shut off the water supply and turn it back on later. More complicated bathroom or kitchen remodels, like changing the location of a toilet or adding a vanity, require more specialized expertise (not to mention the proper permits).
The same goes for installing a new water heater. “In most cases, the DIYer will probably consult with a plumber,” says Albrecht. “If it’s gas, then you should definitely have somebody come out.”

Updating light fixtures or ceiling fans

Switching out light fixtures or installing a new ceiling fan are both doable for many DIYers, especially if the ceilings are eight feet or lower. However, if your project is more complicated or requires rewiring, you’ll need to worry about safety permits.
“If you’re extending the electrical service or adding a ceiling fan, and you need to be concerned about the framing or the electrical support, that’s when you want to call in a pro,” Albrecht says.

Retiling or reflooring

Adding a basic backsplash or ceramic tile floors are popular projects among DIYers. Some also tackle the installation of hardwood floors, but that can lead to problems in the future if they’re not properly installed.
“One of the bigger things that people don’t think about is warranties on kitchen cabinets or flooring,” Albrecht says. “Warranties require specific installation techniques, so a DIYer takes the risk of voiding the warranty.” For instance, if your home has moisture issues and you don’t create a moisture barrier or switch to ceramic tile, the wood could warp and the warranty could become invalid, potentially costing you thousands of extra dollars. “That’s the value of the pro with the flooring,” Albrecht says.

Carpentry projects

Most DIYers can successfully tackle projects like adding shelves to a closet or pantry.  Since those areas will be hidden most of the time, mistakes don’t matter as much. Another simple DIY project is adding crown molding or chair rails.
However, “if you start talking about framing, redoing a deck or basement, or adding an addition, that’s where it gets more expensive,” says Albrecht. You’ll probably need expensive equipment, too (some of which you can rent). Since safety and precision are more important with structural projects, it may make sense to pay a professional and avoid putting family members at risk."

Buyers Trending Toward Urban Living Over Next 10 Years

Housing researcher John McIlwain stated "the suburban century is over." He predicts that over the next 10 years economic, demographic and regulatory changes will create a "new normal" real estate environment across the country that focuses on city centers and close-in older neighborhood. As a senior fellow at the Urban Land Institute in Washington, D.C., and author of  “Housing in America: The Next Decade,”  McIlwain predicts that many central cities will experience strong demand for housing, with the strongest markets “in places that provide a vibrant 24/7 lifestyle.”Sounds like Portland! The trend is to be the highest in older baby boomers and millenials, and immigrants are 3 of the 4 main players in real estate, and they will all be aspiring for or forced to live an urban lifestyle. I have seen this in my own experience, buyers of my generation (the millenials) can't imagine living in the 'burbs, or if they do, they want to be close to mass transit to get back into the city on  a weekly basis. I'm excited to see this prediction come true, the most vibrant cities around the world have people actually living downtown, and I think Portland can be one of those.

 

Click for the Source

This infographic states right out that it is better to rent for 4-5 years than buy a house, which I patently disagree with! I think that if you were going to buy and own a house for a few years, then sell and rent again, it would be not such a good idea to buy. But if you want to buy a house, live in it for 2-5 years, then sell and move into a bigger house or more desirable area, then go for it! That's how people make money in real estate. The longer you own a home, the more equity builds up, unless you bought in 2007 at the top of the bubble! The more equity you have, the more cash you get back when you sell, which you can invest in a large down payment on your next home, or in a remodeling job. If you sell in less than 2 years you do have to pay capital gains tax, so unless you are flipping a home for an extremely large profit it's not really worth it. The majority of home owners are able to afford larger and nicer homes as they move up because they started with a small house, it gained equity, and then they kept moving every 2-5 years, sometimes very frequently, sometimes only 3-4 times over 40 years. The point of home ownership is too be able to do what you want in you house, which you cannot do in most rental situations. Disagree? Comment below and I'll respond!

RMLS Market Report

Last week the Market Action Report came out for May 2010, I haven't had a chance to blog about it until now. There is good news and bad news, as it is with all real estate news these days. The good news is that the inventory is continuing to drop in Portland- down to 7 months of supply, compared to 12.6 months in January of this year. The bad news is that the median home price in Portland is down 4.4% from May 2009- $239,000 compared to $250,000. My favorite part of the Market Action is the map on pg 6 which shows the median sale price by region. What is median in NE or SE is completely different than Lake Oswego or West Portland. Here's the summary along with the change from May of 2009.

North Portland: May 2010: $234,900 May 2009: $229,000 Difference: +$5,400

NE Portland: May 2010: $248,300 May 2009: $255,000 Difference: -$6,700

SE Portland: May 2010: $214,500 May 2009: $219,900 Difference: -$5,400

West Portland: May 2010: $329,500 May 2009: $367,500 Difference: -$38,000

Beaverton/Aloha: May 2010: $211,500 May 2009: $224,500 Difference: -$13,000

Tigard/Tualatin/Sherwood/Wilsonville: May 2010: $277,000 May 2009: $270,000 Difference: +$7,000

Lake Oswego/West Lynn: May 2010: 358,000 May 2009: $350,000 Difference:  +$8,000

Oregon City/Canby/Molalla/Beavercreek: May 2010: $242,000 May 2009: $220,000 Difference: + $22,000

Milwaukie/Gladstone/Boring/Clackamas/Estacada: May 2010: $260,000 May 2009: $265,000 Difference: -$5,000

Gresham/Troutdale/Sandy/Corbett/Fairview: May 2010: $206,300 May 2009: $223,400  Difference: -$17,100

10 Things Buyers Look for Today

Buyers in 2010- according to ZipRealty- are looking for these 10 things:
1. Garage or parking space: 86.8%
2. Master suite: 78.9%
3. Ample storage space: 72%
4. Large or walk-in closets: 66.5%
5. Guest bedroom: 66.4%
6. Outdoor entertainment area: 64.3%
7. Gourmet or updated kitchen: 60.6%
8. Breakfast room or eat-in kitchen: 55.8%
9. Large yard: 43.2%
10. Wood floors: 40.8%
The 3 Biggest Turnoffs:
1. Bad Oders
2. Busy Street
3. Awkward Floor Plan

Source: ZipRealty.

Seriously People, the FBI is Going to Get You if You Lie

Mortgage fraud seems like it would be really hard to pull off these days, but the FBI is gearing up for a major crackdown because it's still a huge issue. Lying about your income, debt, or falsely applying for mortgage relief programs are the main issues, and the FBI reported that they have set up 23 mortgage fraud task forces across the country. They stated that the housing bubble was caused by homes being bought with fraudulently acquired loans- brokers and banks gave mortgages without verifying income and to people with incredibly low credit scores. Read more here.

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  Q&A: Emergency Preparedness for Homeowners

  HouseLogic talks to Red Cross disaster response expert Court Ogilvie about emergency preparedness for homeowners. Read
• 

  Is the Cost of Hurricane Insurance Worth It?

  Decide whether to buy hurricane insurance long before the storm clouds appear. Read
• 

  Give Your Community the Gift of Emergency Preparedness

  Creating a neighborhood disaster preparedness plan can safeguard your family, neighbors, and property, while strengthening and unifying your neighborhood. Read
• 

  Create a Home Emergency Preparedness Kit

  Having a home emergency preparedness kit could be the key to your family’s safety if disaster strikes. Read
• 

  Insuring Against Natural Disasters

  Your homeowners insurance covers many of life’s disasters, just not some natural disasters like earthquakes and floods, so consider supplemental policies. Read

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