Real Estate Information Archive

I was chatting recently online with a group of Realtors I belong to called the CyberStars and we were discussing a much overlooked down payment assistance program I have been using in our market in Portland, Oregon.

This progam is called the Nehemiah Charitable Model and uses funds from charitable sources for downpayment assistance for persons who qualify.  The program can be found at http://www.getdownpayment.com/ and there is a tutorial there as to how it works.

Nehemiah is an FHA product in that all loans must comply with FHA/HUD rules, but there are many great points such as.....

• Gift funds up to 6% of the final contract sales towards your downpayment and/or closing costs
  
• Gift funds for both first time and repeat homebuyers
  (Nehemiah charges a nominal processing fee that may be paid by the seller, homebuyer, or lender.)
• Gift funds for both new construction and resale homes
  
• No repayment of gift money
  
• No income or asset limits
  
• No geographical restrictions

My preferred lender - Shawn Headlee with Columbia Mortgage is very familiar with these loans as we have done several, so if you think you can use this program to purchase a house in our current market, which is a great time to buy, then give us a call.

April 2008's Portland magazine has just come out and the front cover says "Buy Here Now".

They have written a terrific article explaining the reasons behind why our market has been doing so well consistantly since the mid 1980's ( the last time our prices dropped).

Our price never shot up too much

Our economy relies on booming Asia market

We are a strong in-migration state

We are the bargain basement of the west

The "creative clas" is moving here in droves.

The article goes on to rate different neigborhoods but the main picture they post is we are one of only three markets in the USA that went up in value in 2007 ( the other two were Seattle and Raleigh).  But the most fascinating part is how the "creative class" is moving here in droves from all over the country, not just from our most recent 600lb gorilla of California.    Click on the link above to learn more.

You may have grown up in the Portland area and know exactly where to buy your first home or maybe you are downsizing and have had your next location in mind for awhile.  Perhaps you are relocating and have heard of many popular communities or neighborhoods.

If you are lucky, you will find the location of your dreams right away.  However many home buyers find themselves debating between several neighborhoods determining strengths and weaknesses for each. If on a budget or with children, it is often schools, commuting and finances that dictate location the most.

Here are some suggestions from the  Home Buying for Dummies Book.

1)  Prioritize your needs.
Buying a home on a budget means trade-offs.  For the neighborhood you dream of it may mean purchasing a smaller home.  You must decide what factors are most important to you!

2) Talk to people who live in the neighborhoods.      

People living, working and playing in the community will have the most insight into pros and cons.  The Rob Levy Team recommends taking a day or two to walk or at least drive around the neighborhood at a few different times of day.  See how far the closest gym, park, freeway and coffee shop is.

3) Get the Days-on-Market (DOM) statistics from our team.

DOM statistics show how long the average house takes to sell in an area.  (Ask a team member about this, if a property has been listed by two agents back to back it may only reflect the current listing's DOM.)  Quick sales often indicate strong buyer demand which should make you feel good about the neighborhood you are investing in.

4) Get help from a professional.

This is where we come in!  Home Buying for Dummies suggests speaking to a REALTOR, lender or appraiser to compare the upside potential of home values in each neighborhood.

In the end, only you know what neighborhood will be best for your family.  There are no guarantees with "up-and-coming" neighborhoods, but the more you put into your community the more you will get out of it.  If you have plenty of time to scope out the area before you buy maybe take a Sunday drive through some different parts of town.  You may be surprised the many secret great finds around town.  The Office of Neighborhood Involvement has reported there are more than 90 neighborhood associations in Portland!

 Many Portland area home owners want to know how to make their home more “Green Friendly.”   Some builders are focusing on building “green” homes taking into consideration lumber, paint, and energy efficient appliances and products. 

One source is the Regional Green Building Hotline.  You can reach the organization at 503.823.5431 or submit an online inquiry at their website. 

The hotline’s hope is to provide resources for residents, businesses and contractors looking to overcome barriers of building green.

The Hotline can:

-Answer questions about green materials

-Provide strategies to reduce your building’s carbon footprint

-Inform about financial incentives

-Explain renewable energy, indoor air quality,

-Sustainable site development

-Construction material recycling

-Stormwater management.

(Information provided from the website Green Development Resource Center)

Last week was a special week for me.  I was invited to attend and be a panelist (twice) at the Certifed Residential Specialist convention in Honolulu.  My wife Beverly and I attended the show and took a couple of days off while there to explore, and then attended the entire event.  The show was well attended by about 1,000 of the USA and Canada's top Realtors.

The event was put on by Howard Brinton of Star Power Systems and as always, I learned a lot there.  One of the things I learned was how lucky we are to live in Portland Oregon where our market continues to thrive - especially when compared to other markets such as Florida's west coast.

According to PMAR (Porltand Metropolitan Association of Realtors) the Portland market is still a hot one, and our appreciation streak continues.  In fact, the local housing market is healthy, and thriving. Real estate remains a profitable investment. As you can see from the charts below, appreciation on Portland area homes has risen over the past five years, along with sales prices. The average appreciation rate over the past six years is 9.75%.

See the charts below for the facts....    The first one is appreciation and the 2nd one is average sales price.

As in the past 22 years in a row now Portland home prices continue to rise.

In the 12 months ending in November, 2007 vs. the previous 12 months, the average price in the Portland Metropolitan area appreciated 6.5% according to RMLS.  The average price rose from $320,100 to $340,900 and the median price rose from $270,000 to $288,900 for an increase of 7.0% for the same 12 month period.  The average sales price for all the sales in the month of November 2007 was $344,500 with an average market time of 67 days.  At the end of November there were 14,435 active listings listed in the MLS representing a 8.3 month supply of homes. 5.5 months is considered optimum and to be a balanced market.

A chart with year over year comparisons can be found at www.roblevy.com/newsletter.asp

Submitted by Bruce Hecht

Another first for Portland Oregon.  We have the "MOST GREEN buildings in the United States". 

See these sites to learn more: Greeb Building Services,Cascadia and Earth Advantage.

We are currently promoting this at an International Conference with many local businesses touting local Oregon Products and how we are continuing to "build Green" in Portland, Oregon.

Our Mayor Tom Potter has stepped it up to encourage and publicize Portland's always growing green building development. The city also created a new position - a manager for sustainable economic development.

And then there's PDX Lounge, which organizers say is an important vehicle for networking, showcasing local businesses and putting deals in motion.

Last year at the Greenbuild conference in Denver, about 30 local businesses set up shop in the PDX Lounge. The lounge itself was about  5,000 square feet and had a bar with a menu that described each company's services like a tasty yet potent cocktail.

"The whole thing is to provide an opportunity for local businesses to have a venue outside a sterile convention hall to meet with people and show their products," said Portland Commissioner Dan Saltzman, who oversees the city's office of sustainable development. "One night we have a party where we invite everybody in the world to come by and taste Oregon foods and Oregon wines."

This year, the lounge will be home to about 60 companies and organizations from throughout the state, said Tom Osdoba, who was recently hired as the city's first manager for sustainable economic development.

In addition to the big party, there will also be a discussion panel on climate change and a fashion show featuring Nau and Keen, two local apparel makers. Eventually, Potter wants to find a permanent space in Portland for PDX Lounge.

But while it's in Chicago, Potter plans to meet with Mayor Richard Daley during the conference to share strategies on clean energy, supporting sustainable businesses and other topics.

The two cities are considered among the greenest in the world. The U.S. Green Building Council has certified 33 green buildings in Portland, more than any city in the world, based on a number of environmental quality factors. Seattle boasts 31 and Chicago has 27".