Be Empowered – Know Your Market!
October 1st, 2011
It’s important to analyze the market when listing a property for sale. You do not want to think you are automatically in a buyer’s market when it could be quite the opposite. Take a look at some of the changes that have occurred between August and September in Multnomah, Washington, Clackamas and Clark County. You will see that when you are empowered with real numbers, only then do you understand your market. That’s why the majority of homes sit for long periods of time without selling. They are not priced to sale.
THE MARKET IS CONSTANTLY SHIFTING. KNOW WHERE YOU STAND.
Multnomah Co. – Detached Homes
400-500k: WAS seller’s market, NOW buyer’s market
600-700k: WAS balanced market, NOW extreme buyer’s market
700-800k: WAS extreme buyer’s market, NOW balanced market
800-900k: WAS balanced market, NOW extreme buyer’s market
(nothing selling over 2 MIL)
Overall: WAS seller’s market, NOW balanced market
Multnomah Co. – Condos
100-200k: WAS balanced market, NOW extreme buyer’s market
400-500k: WAS seller’s market, NOW extreme buyer’s market
800-900k: WAS seller’s market, NOW extreme buyer’s market
(nothing selling over 2 MIL)
Overall: balanced market (no changes)
Washington Co. – Detached Homes
400-500k: WAS seller’s market, NOW buyer’s market
500-800k: WAS balanced market, NOW extreme buyer’s market
800-900k: WAS extreme buyer’s market, NOW seller’s market
(nothing selling over 2 MIL)
Overall: WAS seller’s market, NOW balanced market
Washington Co. – Condos
200-300k: WAS seller’s market, NOW buyer’s market
(nothing selling over 300k)
Overall: balanced market (no changes)
Clackamas Co. – Detached Homes
300-500k: WAS balanced market, NOW extreme buyer’s market
2-3 MIL: WAS extreme buyer’s market, NOW balanced market (interesting since 1-2 MIL range has 57 mo. of inventory)
(nothing selling over 3 MIL)
Overall: WAS balanced market, NOW normal buyer’s market
Clackamas Co. – Condos
200-300k: WAS balanced market, NOW extreme buyer’s market
400-500k: WAS buyer’s market, NOW seller’s market
(nothing selling over 600k)
Overall: balanced market (no changes)
Clark Co. – Detached Homes
No drastic changes
(nothing selling over 2 MIL)
Overall: balanced market (no changes)
Clark Co. – Condos
100-200k: WAS seller’s market, NOW buyer’s market
300-400k: WAS seller’s market, NOW extreme buyer’s market
(nothing selling over 3 MIL)
Overall: WAS seller’s market, NOW extreme buyer’s market
Homeownership: Still the American Dream
August 16th, 2011
Homeownership: Still the American Dream
by THE KCM CREW
Yesterday, Fannie Mae released theirNational Housing Survey for the second quarter of 2011. They survey the American public on a multitude of questions concerning today’s housing market. Each quarter, we like to pull out some of the findings we deem most interesting. Here they are for the most recent report:
Most Important Reasons to Buy a Home
When we talk about homeownership today, it seems that the financial aspects always jump to the front of the discussion. However, the study shows that the four major reasons a person buys a home have nothing to do with money. The top four reasons, in order, are:
- It means having a good place to raise children and provide them with a good education
- You have a physical structure where you and your family feel safe
- It allows you to have more space for your family
- It gives you control of what you do with your living space (renovations and updates)
The Home as an Investment
Though most people purchase a home for non-financial reasons, everyone realizes there is a money component to homeownership. Here is what they said on this issue:
- 65% of the general population (and 67% of homeowners) believe that homeownership is a ‘safe’ investment.
- 56% believe that homeownership has more potential as an investment than any other traditional asset class.
- 69% think that now is a good time to buy a home (this number has increased in each of the last two quarters)
Rent vs. Buy
We are always interested in the difference people see in renting vs. owning.
- 63% of renters have aspirations to someday own their own home
- 72% of renters think that owning is superior to renting
- 95% of homeowners see homeownership as a positive experience (4% see it as a negative experience) while 82% of renters see renting as a positive experience (17% see it as a negative experience)
- 96% of homeowners live in a single family residence while 46% of renters live in a multi-unit building
Bottom Line
Even in difficult times, Americans still realize the value of homeownership.
FSBO (for sale by owner) a No Go!
August 9th, 2011
FSBO a No Go!
by THE KCM CREW
This blog prides itself on the quality of real estate information we deliver each and every day. We try to gather empirical evidence to validate the positions we take. We do not use just an anecdotal story to make a point. We also do not get caught up in the sensationalism of the moment. However, today will be different.
We can’t resist commenting on the storywhich recently appeared in the Wall Street Journal regarding Colby Sambrotto, the founder and former CEO of forsalebyowner.com. It seems the founding father and lifelong evangelist of the concept of selling your home without a real estate agent was forced to hire a broker to sell his home after failing at what he preaches others should do.
After failing to sell his NYC apartment on his own as a For Sale By Owner (FSBO), Sambrotto hired a broker and paid a 6% commission in order to get the job done. His personal experience helps refute some of the myths Sambrotto has been espousing for over a decade. Let’s look at two of those myths:
Myth #1 – You Will Pocket More Money Selling on Your Own
Most FSBO sites say you can save the commission by selling on your own. What happened in Sambrotto’s sale?
From the WSJ article:
“The broker, Jesse Buckler, said he told Mr. Sambrotto the apartment in the Lion’s Head building on West 19th Street near Sixth Avenue was priced too low and wasn’t drawing the right buyers.
By May, it went into contract, he said, after attracting multiple offers. It closed in the last few days for $150,000 more than the original asking price.”
Myth #2 – The Internet Alone Can Sell Your Home
Many have said that, with the introduction of home search on the internet, hiring an agent is no longer a necessity. What happened to the FSBO guru when he attempted to only depend on the internet?
From the WSJ article:
“Looking to move his family to the suburbs, [Mr. Sambrotto] said he carefully staged his apartment for sale himself, and put it on the market. But after using a mix of websites to publicize his apartment, he said he had only ‘middling success’ and switched to a broker because many buyers were so reliant on brokers.”
Bottom Line
There is a reason the real estate industry has been around for centuries: it performs a valuable service.
P.S. We are putting together an infographic on this story for later this week. Check it out on Friday.
Real Estate Trends – July 2011
July 31st, 2011
CBS Money Watch: Buyer's Market
NPR - Good Time to Buy a Home
4 Financial Reasons to Buy Now
April 17th, 2011
The purchase of a home is a personal decision. However, we want to give everyone four great financial reasons why you should not wait before taking the plunge into homeownership.
Interest Rates Are Increasing
Interest rates have increased almost 3/4 of a point in the last six months. Most experts expect rates to continue to increase through the year. Interest rates along with price determine the overall cost of a home. Even with prices softening, if interest rates rise, it may be less expensive to buy now rather than wait.
The 30-Year Mortgage May Disappear
There has been much debate regarding government’s role in providing support for homeownership. There are several experts who believe If Fannie Mae and Freddie Mac’s roles are eliminated, or even limited, it may be the end to the 30-year mortgage. This concern is addressed in MSN Real Estate’s Is it curtains for the 30-year mortgage?
QRM Requirements Could Be Much More Stringent
Here are proposed changes to the requirements for a ‘qualified residential mortgage’:
- Certain mortgage types would be eliminated
- You would need to put a minimum of 20% down
- You would need a minimum 690 FICO score
- The ratios of income to both the mortgage payment and overall debt would become much more conservative (28% and 36%)
There would be loans available to purchasers who don’t qualify under the new rules. However, they will probably be more expensive to the buyer (both in rate and costs).
Rents Are Expected to Increase
The supply of available rentals is decreasing and the demand is increasing. That will lead to an increase in rental costs throughout the year. The Wall Street Journal this week quoted a report by Reis, Inc:
“Expect vacancies to continue declining, and rents rising through the rest of 2011 at an even faster pace.”
Bottom Line
You may be waiting on the sidelines to see if prices will continue to depreciate before you purchase a home. The mortgage expense is a major piece in the overall financial picture of homeownership. Make sure you consider it when timing your decision.
You’re a Firework!
February 14th, 2011
Happy Valentine’s Day everyone! You are truly a firework. Let yourself shine! XO
Does Staging Work? – Part 1
February 4th, 2011
Staging is a critical component of selling your home, and there are different ways to tackle it.
If you are fully furnished, you may need a little rearranging, clutter removed and some items brought in to create the perfect effect.
If you have a few items to work with, you can also add to them.
Vacant homes are abundant right now and to stand out you must create an environment where buyers can connect emotionally. I will illustrate here with some before and after staging photos so you can make your own decision.
Click here to find out more about Pangaea’s Home Staging Services.
Simply put, home staging is the process of thoroughly preparing your home to go on the market. Statistics prove that staged homes sell in half the time and for an average price 6.9% higher than their comparable non-staged competition. *
People are shopping for homes differently today and your property could be eliminated before a buyer ever comes near it. In 1995 just 2% of people did any online research before going out to look at homes, but by 2007 that number had jumped to a whopping 87%! ** Today’s buyers are looking at homes online and sending their brokers a list of properties they want to see. If your property doesn’t present beautifully in the listing photos, buyers will eliminate it before you ever get them to a showing. Home staging by a professional assures that your property will show in it’s most positive light in your listing photographs and for personal showings.
Those statistics go up to 2007. It is generally accepted that now approximately 95% of people are looking online prior to deciding which properties to look at. So staging and getting excellent photos dramatically increases your chances of getting a buyer to come for a showing vs. an empty property. – Study done by the International Association of Home Staging Professional
Punxsutawney Phil: Early Spring!
February 4th, 2011
I’m not big on holidays, but I have to say that Groundhog’s Day is one of my favorites. And February 2nd, 2011 Punxsutawney Phil awakened to find no shadow, so we are in for an early Spring. How great is that!
Groundhog’s Day is also one of my favorite movies. Check it out!
1st Annual Perfect Pickle
February 4th, 2011
On Monday The Dill Pickle Club is having an event that should be super fun. If you haven’t heard of the Dill Pickle Club it’s because it’s a fairly new group that has been busy educating folks about and altered and forgotten history lessons for just over a year.
The 1st Annual Perfect Pickle will be on Monday, February 7th, 2011 from 7-11pm. They’ve picked a unique space to throw the party – the Cleaners at the Ace Hotel (1022 SW Stark St) – live bands & a pickle challenge with Beast, Chop, DOC, Le Happy, Navarre, Olympic Provisions, Salt Fire & Time and Unbound Pickling. The judges are Dave “Killer Bread” Dahl, Tony Perez and Courtney Din.
This will be a fun event… It’s only $5. Click here for more about The Dill Pickle Club, support the cause and become a member today.
Washington Park Summer Concerts 2010
January 31st, 2011
I absolutely love walking down to the Portland International Test Rose Gardens in the evenings on warm summer days to experience a variety of entertainers with friends and neighbors. I will be posting the 2011 schedule as summer approaches… stay tuned.
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