Real Estate Information

Check out my new chart below, I am now showing average and median sales price changes.  All areas of real estate activity are positive when comparing July 2012 with July 2011. There were 2,372 accepted offers, 23% more than the 1,928 reported in July 2011 although down slightly (-2.6%) from last month. The 1,973 closed sales represent a 15.4% increase over the same month last year, when 1,709 were recorded. This represents the highest numberof closed sales in the month of July since 2009.

New listings rose 7.5% from 2,942 to 3,162 when comparing July 2011 to July 2012 but were down slightly (-1.4%) from the previous month.  Overall real estate activity is positive when comparing July 2012 to the same month last year but down slightly from the previous month. We’ve seen a similar pattern in prior years with activity dropping in July from June highs.The unsold inventory in months ticked up slightly from 3.9 in June to 4.6 in July and is lower than any July since 2006. It would take only 4.6 months to sell the 9,041 active listings at the July rate of sales.

Home sale price measures were all positive in July. The median sales price rose 7.8% when comparing July 2012 with the same month in 2011 and 1.2% when comparing it to the previous month. When comparing the percent change of the last 12 months with the previous 12 months we see a 0.7% gain in the median price.

An article published today on MSNBC now rates Portland, Oregon #2 on the list of "Ten major housing markets with the shortest supply of homes".

The Rob Levy team has noticed inventory dropping a lot, especially in close in areas of SW, NW, NE and SE Portland, but its also spreading out to other areas as well priced homes in good conditon in Beaverton and other western suburbs are also hot right now.   The key is having your home "show ready", meaning not cluttered, nice and clean and ready for showing anytime.  

Check out the article, its interesting to see what other parts of the country are also low on inventory.

There was a fascinating article jsut released from the urban land institute about the future of housing in the United States, leaning towards the future - what will sell, what wont and where the needs are.  Conributing factors such as aging boomers, echo boomers buying etc. It points to a growing need for rental houses as well as handicap accessible houses etc.
http://www.urban.org/UploadedPDF/412520-Demographic-Challenges-and-Opportunities-for-US-Housing-Markets.pdf

That's right, Travel and Leisure Magazine has voted Portland, Oregon "America's Greenest City" in it's latest issue.   This is mostly to do with the huge amount of trees and parks, but also because of our transit system, electric charging stations, bike routes and more.  Check out the article America's Greenest City

An interesting article in today's Portland Oregonian about prices have declined some in 2011 however Portland is one of a few markets where prices are expected to increase in 2012.  The Oregonian Article can be seen by clicking HERE.  The article says prices fell in 2011 but have now turned the corner into 2012.

Given this information, and also a recent article in the Willammette Week about Portland being "Renter Hell" (meaning a REALLY low vacancy rate), as well as historically low interest rates, maybe now is also a time to look at buying a rental property ?

The Rob Levy team has over 50 years combined experience in the Portland real estate market.  We have unparalelled access to bank owned homes too.  Give us a call if you are thinking about looking for a home now for yourself, for a 2nd home (yes, we are selling many of these) or for a rental.

It seems when the property rental market is already tight in Portland, the market gets even tigher. Articles abound in various publications but a recent one in the Willamette Week really sums it up - the title is "Renters Hell" and explains why we are in the nation's toughest rental market.

The main issue is due to the high distressed property rate now (as much as 37% of all sales in metro Portland - distressed means either a short sale, or bank owned sale) many former homeowners are looking for places to rent, at the same time as a city known for appealing to the younger crowd (typically who are renters) from all over the country.  Property owners are also pleased because someome who formerly owned a home and is now a tenant usually rents for a longer period because they can't purchase another home for four or more years, and they tend to have a "homeowner" mentaility, so are easier to work with than a new to renting tenant, and in a market where there is a lot to choose from.

Investors out there....  There are lots of great buys out there with houses selling at low prices, with low interest rates and now a shortage of rentals. Maybe now is a good time to think about adding to your portfolio, or buying that first rental.  Check with the Rob Levy team at Atlantic & Pacific Real Estate today, we have unparallelled access to bank owned homes, many of which make for perfect rentals.

Many people either own a house that needs fixing up, or are thinking about purchasing a home which is affordable largely because it needs extensive repairs. Home repairs can be quite costly, however, and may not be affordable for those with less than ample budgets. There are also instances where the ability to pay back a loan on a house is not an issue, but a lender will still not allow a purchase for a variety of other reasons. This is where a 203k rehab loan can be the key to allowing you to own the home you have always dreamed of owning.

203k loans are government-based loans offered in situations where an investment would be considered high risk by the lender. The FHA's 203k rehab loan was created to provide homeowners with the resources to allow them to turn a damaged property into a livable home. From simple repairs to more drastic overhauls of a home, these loans are arguably the most reliable means of turning a questionable home into a sound investment, not to mention a sound dwelling. Generally, 203k loans are used to service homes in need of slight repairs, but they can be used for more involved improvements, and they cover the use of licensed contractors in the event that the loan borrower cannot complete the project without help.

The 203k rehab loans permit a wide variety of repairs to the home and surrounding area, but there are notable exceptions. Some of the repairs and work not permitted by these loans include landscaping and yard work, major remodeling, or fixing structural damage. It generally allows for more subtle repairs such as painting, addition or removal or doors, minor repairs or enhancements to kitchens or bathrooms, plumbing and electrical work and flooring, among many others. There are special terms and requirements that also come with each loan, including:

• The property must be the borrower’s own
• Work needs to be professional, and completed in a six month time frame
• The property must not be vacated for more than a month
• Depending on the situation, the borrower must possess a permit for the work done if one is required.

Despite some of the terms and limitations set forth by the loan, it is arguably the most helpful method for getting the necessary work done.

All aboard the Mt. Hood Railroad!  Only this is no ordinary train ride, but in fact an experience unlike any other.  Named for the highest mountain in Oregon, the iconic Mt. Hood which rises above the trees to 11,239 feet, this train commemorates the beauty of the state and is reminiscent of a time when the railroads roamed the United States almost exclusively.  Tour the exquisite forests of Oregon on this historic railroad fashioned to create a memorable experience.  Choose to travel on a Sunday and enjoy a leisurely brunch on board, or take an afternoon excursion for four hours to one of two mountain towns.  Exercise a flair for the dramatic and jump at the chance to dress up for an evening of elegant dining while sleuthing through a murder mystery party. 

Whether hopping on board a holiday lunch train for an afternoon of relaxation or riding to ring in New Year's Eve in a whole new way, choose to celebrate special days in an extraordinary way.  Departing from Hood River in Oregon, each Mt. Hood Railroad ride is a memory that will last, so gather a group for a family event or party, or charter an entire car for an intimate travel experience that everyone can enjoy.  For an unparalleled view of the Hood River valley, book a seat on the premium dome car, or dance the night away in the new Lewis and Clark car, fully equipped with a DJ or live music.  For an experience never to be forgotten, take a trip on the Mt. Hood railroad soon!

In a major decision for future land use and zoning in the Portland area, the regional Metro council voted on October 20 to expand the urban growth boundary (UGB) by 1,985 acres. All of the expanded growth areas are in Washington County. Except for 330 acres, all the expansion will be dedicated to residential development. This is a smaller expansion than has been done in the past. This decision now goes to the Oregon Land Conservation and Development Commission for final approval, which is expected in February. The decision is not without controversy, as the land use group 1000 Friends of Oregon intoned against expansion of the UGB, while the Westside Economic Alliance believes the decision was “timid, underachieving and uninspired,” and wanted more land to be included within the growth boundary.

Urban sprawl has been a major issue facing cities for decades. In response to this problem many states such as Washington and Oregon have created Urban Growth Boundaries (UGB) to limit urban sprawl by restricting growth beyond its boundaries. It allows for better management of future expansion with a focus on ‘in-fill’ of under-developed land within its borders. Several large U.S cities have adopted a UGB but none have gone as far as Portland, Oregon.

Not only does Portland have a UGB, it is unique in the U.S. for having a directly elected metropolitan planning group, called Metro. This organization is responsible for controlling growth not only in Portland but in the surrounding cites which border it spanning three counties.

Metro’s prime focus is on managing land development inside the UGB and dealing with transportation concerns. Dealing with traffic issues is usually one of the most important aspects in any UGB since the higher population density makes urban traffic problems worse. Metro is famous nationally for its promotion of light rail and trolley service through the regional transit company TriMet.

Expanding the UGB is not done lightly but in response to Metro’s mandate to keep a certain amount of population density projected out in 20-year cycles. The most recent expansion of the UGB by 1,985 acres was in direct response to the projected future need for jobs and housing. In addition to this expansion, Metro has moved to acquire land to allow a new East-West light rail line connecting the eastern edge of the UGB whose topography limits auto access.

To minimize the amount of times the UGB has to be expanded, Metro has land use laws which promote houses on smaller lots where the emphasis is on building up rather than out. For example, a plot which held in the past held two older single family homes would now be replaced with four dwellings.

Metro also works with the city governments under its umbrella to help create viable neighborhoods which have the businesses needed to limit travel for entertainment or shopping. This neighborhood emphasis has created a vibrant culture where different parts within the Metro UGB each have their own unique flavor. Metro works to balance the need for growth with the desire protect many of the natural areas which make the Portland area so desirable.