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."