One of Portland Oregon’s best Custom New Home Builders is Olsen Homes.  You will definitely want to take a quick view of these tremendous new homes just minutes to down town Portland.  These classic homes have all the upgrades and a are located on NW Old Quarry Road in Washington County.  Just a short walk to the new Bonny Slope Beaverton Elementary School.  Large Lots, Custom features, in a lush green setting with Southerly Exposure and Views.  Check out the Video we just shot including two young Deer that visited the site while we help it Open in May of 2008!  We have two homes from the $700’s and one lot left to sell.  Hurry and get yours now!

Good News for Buyers and Sellers: March 6, 2008I know you’ve all been waiting for some relief to our current market conditions, and it arrived today: the new FHA and Fannie Mae- Freddie Mac conforming loan limits have been released by the U.S. Department of Housing and Urban Development. To find out the new limits in your area, simply click on this link: https://entp.hud.gov/idapp/html/hicostlook.cfm, which will take you to the “mortgage limits” page at the HUD web site. On that page, enter your state and county information, chose the type of loan from the “Limit Type” drop-down box (FHA Forward, Fannie/Freddie or HECM). [Note: FHA Forward is what HUD is calling the temporary FHA loan limit.] Then click the “send” button at the bottom of the page. On the results page, you’ll see the new loan limit for the type of loan you selected for your area. You can also find a county-by-county listing of the new FHA and Fannie Mae-Freddie Mac loan limits at REALTOR.org by following this link:
http://www.realtor.org/GAPublic.nsf/files/chart_hud_loan_limits_08.pdf/$FILE/chart_hud_loan_limits_08.pdf The new loan limits for FHA and Fannie Mae and Freddie Mac are now calculated at 125 percent of the HUD published median prices, with a floor of $271,050 and $417,000, respectively, not to exceed $729,750.We expect the impact of these loan limit increases on the housing market to be significant because of the infusion of capital into the mortgage market, which should result in lower interest rates across the board. In addition, there will be a direct impact on high-cost areas that previously required borrowers to take out costlier jumbo mortgages.

An economic impact study conducted by NAR in January 2008 estimated that increasing the GSEs’ conforming loan limits would result in as many as 500,000 refinanced loans and could help reduce foreclosures by as much as 210,000. In addition, over 300,000 additional home sales could be generated, housing inventory would be reduced and home prices would be strengthened by two to three percentage points.

HUD was mandated in the Economic Stimulus Act to publish new loan limits within 30 days of the bill’s signing by President Bush on February 13. This is going to stimulate the lower end and in many Communities that crucial move up market that allows the log jam of home equity to get moving once again. I strongly urge any of you that may have been denied access to credit to come back to the table and meet with us and one of our preferred Lenders to get things moving again.

There has never been a better time to buy in recent memory. Rates are Great and now we have this new Loan Limit increase and access to funds! Prices…well prices are off the hook and we have some awesome buys for people right now!

Call us and lets take advantage of this Market together!

Best wishes;

Dirk Knudsen

Re\Max Metro

503-799-8383

Here is a good article about a topic we have just been talking about.  We are experiencing a high number of Foreign Buyers here in Oregon as the US Dollar weakens against foreign currency.  For some this is like playing with Monopoly money.  We are yesterdays Mexico and Canada.  Foreign Investors are buying a weekend home’s in the US.  For many Foreigners the real American Dream is an American Home of their own.  Call us to tap into this growing market!

U.S. real estate a ‘bargain’ for foreign buyers

Many paying cash as dollar falls in value

Wednesday, January 23, 2008

By Tom Kelly
Inman News

Two years ago, while attending a home-builder convention in Orlando, Fla., a top-producing local real estate agent was bubbling over the interior design features of a vacation home.

“All of my international buyers are just going to love this,” the agent said. “I can’t wait to tell them what’s now available.”

I was intrigued. How many international buyers did she have?

It turned out that more than 60 percent of the agent’s clients were buyers from overseas. And, she is not the only real estate professional cultivating the foreign market. According to the National Association of Realtors, 65 percent of Florida Realtors had at least one international customer, and the trade group’s “Profile of International Home Buying Activity” indicated that at least 7 percent of home sales in Florida were to foreign purchasers.

“When you consider how the U.S. dollar has slid in value compared to other international currencies, you begin to understand why investors are purchasing real estate in this country,” said Mitch Creekmore, senior vice president of Stewart Title Co. “Real estate prices here are a bargain compared to many areas in western Europe and Asia.”

The currency environment probably played a major role in the proportion of foreign buyers who paid cash for their homes. The cash group (28 percent) was much greater than that of the general U.S. home buyer population (8 percent). In addition, international buyers who can afford a home abroad often are from wealthier households with higher monthly incomes and cash reserves. Also, the tax benefits of mortgage-interest deductions may not apply — depending on the buyer’s home country’s tax code — which lowers the incentive to take out a mortgage.

Buyers come from around the world to buy different types of properties at various prices. They plan on using the U.S. property for different reasons. Here are some common factors from NAR:

• The typical international buyer purchased a single-family home or townhouse. The primar

see the rest of this story here:  http://www.inman.com/hstory.aspx?ID=65870

Fed’s interest-rate cuts will benefit ARM, HELOC borrowers

Effect on long-term rates remains to be seen

Tuesday, January 22, 2008

By Matt Carter
Inman News

The unscheduled and dramatic cut in short-term interest rates announced today by the Federal Reserve will provide immediate relief for borrowers with home-equity loans or facing interest-rate resets, mortgage market experts say.

But long-term rates — which were at 2 1/2-year lows before today’s 75-basis-point reduction in the discount rate and the target for the federal funds overnight rate — could move in the other direction if bond market investors get nervous about inflation.

For now, the Fed seems to have decided that the threat of a recession far outweighs the risk of inflation, making in a single day cuts in short-term rates some observers had expected would be stretched out over months.

“Just a few weeks ago, the consensus was that the Fed would cut no more than 75 basis points, and 3.25 percent would be trough,” said Freddie Mac’s chief economist Frank Nothaft. “We’re there already. So are we at the low point? It’s really hard to say.”

Nothaft said the Federal Reserve’s Open Market Committee could cut rates again when it holds its scheduled meeting Jan. 29-30. Or its members may want to wait and see how to today’s dramatic move affects economic indicators.

The rate cuts are “certainly good news for people who have mortgages, or are shopping for a mortgage,” Nothaft said. For those with adjustable-rate mortgages (ARMs) indexed to the prime rate or home-equity lines of credit (HELOC) loans, “this shows up right away in terms of lower interest rates,” as banks follow suit and lower the prime rate to 6.5 percent. For ARM borrowers facing interest-rate resets, Nothaft said, that translates into a smaller increase in payments, and “maybe even a decline.”

Get the rest fo the story: http://www.inman.com/hstory.aspx?ID=65863

According to RMLS statistics, end-of-year 2007 saw a 6.3% increase in average home sale prices (and 7.2% increase in the median). Please note that these metrics roll 12 months of sales activity together and compare them to the previous 12-month roll-up. While this method ’smooths’ the data, it tends to minimize the most recent months’ activity.

As I have compiled these reports each month, the month-over-month changes to the average and median sale prices has become smaller and smaller. In some market areas, the median did not change appreciably over the past 3 or 4 months.

Areas relying on high amounts of new construction growth showed the smallest gains (Happy Valley, City Center, Oregon City/Canby, and Beaverton/Aloha.

Lake Oswego/West Linn, Northeast & Southeast Portland, plus Yamhill and Columbia Counties were among the stronger markets.

Below are the December 2007 results for year-to-date average and median sale prices, appreciation, and time on market (or DOM*).

Source: RMLS, January 2008.
* Note: DOM or days on market may exhibit reporting inconsistencies and should be used to analyze trends only.

Steady Growth in Portland Real Estate

Portland, Oregon real estate offers stability and affordability

Published on: Wednesday, January 16, 2008
Written by: Melana Yanos

Real estate in Portland, Ore., is arguably one of the West Coast’s best-kept secrets. In addition to ski resorts and coastal areas within driving distance, Portland real estate has median housing prices more affordable than most other major cities in the Western U.S. What investors find to be most remarkable about the real estate market in Portland, however, is the fact that it is growing, in spite of the subprime disaster sweeping the country. Its hardy performance begs the question: What exactly makes Portland so special?

A “softer landing”

“Portland’s [real estate] market did not have the massive appreciation that some of the markets that are hurting now did,” Charles Turner of Prudential Northwest Properties, and author of PortlandRealEstateBlog.com, said. “The result is that [the market] has experienced a much softer landing.”
 
And, unlike housing bubbles that eventually popped in other major U.S. cities, growth in Portland’s real estate market has been largely contingent on population and employment, Max Sinclair, a real estate broker and Realtor who specializes in luxury and investment properties in Portland area, said. This has lent itself to steady growth in Portland, in spite of a potential national recession.

“Oregon has one of the lowest foreclosure rates in the country,” Sinclair said. “The market [should] continue at a steady rate of growth of 5 to 7 percent during the economic recovery period.”

Impressive job growth in Portland is likely to maintain a healthy flow of residents to the Portland area. A recent projection by the Oregon Employment Department estimated an increase of 240,000 jobs over the next decade—an increase of 14 percent compared to the last 10 years, Sinclair said. Furthermore, it appears that Portland is becoming an alternate hub for technological companies in California.

“Intel has some of its biggest plants in Hillsboro, a suburb of Portland, [and] Yahoo! also selected Portland for its customer service center,” Sinclair said.

Portland authorities limit the number of developments in the metro area

Growing demand for Portland real estate is compounded by a limited supply of properties within the city. This is because local authorities maintain some measure of control over real estate inventory by limiting the number of allowable property developments within the metropolitan area.As a result of enforcing an urban growth boundary, “Portland [is] in a better position to weather the ups and downs of real estate investment over the long run,” Sinclair said.

In addition, Portland presents an affordable option for real estate investment in the western region of the U.S. The median cost of housing in Portland is $283,000, according to the most recently published NAHB/Wells Fargo Housing Opportunity Index for 2007; this is a great deal cheaper than the median price in its larger Pacific Northwest counterpart, Seattle, which is estimated at $380,000. The difference is even more dramatic when comparing Portland with major cities in California; median home prices in Los Angeles and San Francisco are $515,000 and $770,000, respectively.

Predictions for a buyer’s market

GET THE REST OF THE STORY HERE:

http://www.nuwireinvestor.com/articles/steady-growth-in-portland-real-estate-51406.aspx

Well 2007 is just gone but the memory of a year that started hot and fizzled has left buyers wondering if the Oregon real estate scene is falling or flat.  Seller’s are not sure if they should hang in there and wait or get aggressive and price to sell.  The year that was found most of us not expecting to get caught up in the national price drop phenomenon.

Oregon in general and especially the Portland area and the Tri County region have been strong in the past 5 years.  The National News reports Portland and Seattle and a few other markets like Salem to be among the leading cities in America where price appreciation is still being reported.  In general I agree with this assessment.  This is a great place to live and to do business.  Jobs are here and people are still showing up to the party.

I asked the local manager at the Hillsboro U-Haul if we had any net migration away from here and he said “No-way!”.  The yard there is full of trucks and it is clear people are still coming.  The reality is many of them are not flush with cash.  Even with a good job in hand buyers must have great credit and at leats 3% down payment in most cases to get a home. 

One of the frustrating things as an agent is trying to put these buyers together with a loan that will actually qualify them for a home purchase.  Money was so easy to get just a few short months ago and that has all changed now.  We are seeing the resurgence of some new products and FHA / VA Loan Limits are being raised and we should see that help soon.  The buyers are out there and want to make a move.  Some are watching the homes and trying to gauge the best time.

Sellers are now ready to deal and most have come off prices they were asking in the fall by as mush as 10% and in most cases 1-3% on average.  There are some exceptional deals out there but you have to look.  We are arming our buyers with lots of comps, market trends and data, and daily reports of the best new homes available.  This is really a great time to buy.

But there are signs of a comeback that started in December fo 2007.  January looks to be a good month and our brokerage is seeing a real increase in sales.  With our very tight land supplies, and an Urban Growth Boundary in place that simply prevents sprawl, the best buys will likely go down in the early part of this year.  Wit job growth in Oregon ongoing I see prices getting higher and sales increasing as the year goes along.

 In areas like Bethany and Tigard we see a few very good buys but realistically the number of new homes on the market is very small.  Any up tick will create a situation where there is a shortage again. 

Our message to our buyer clients…..get out and look now and get qualified now!  We can help in all these facets!  Call us today at 503-799-8383 to get started.   2008 is a great year to be a home buyer!

Existing Home Sales are rising again.  The West seems to be leading the market Nationwide.  Prices are great and this is a superb time to get into the market and seriously look.  Call Dirk at 503-799-8383 to get started! 

 Existing-home sales rose slightly in November, indicating a stabilization in housing in the wake of mortgage disruptions earlier this year, according to the National Association of REALTORS. Total existing-home sales - including single-family, townhomes, condominiums and co-ops - rose 0.4 percent to a seasonally adjusted annual rate of 5.00 million units in November from an upwardly revised pace of 4.98 million in October, but are 20.0 percent below the 6.25 million-unit level in November 2006.

The national median existing-home price for all housing types was $210,200 in November, down 3.3 percent from November 2006 when the median was $217,300, but there remains a downward drag on the national median as the mix of closed sales has shifted away from expensive markets.

Total housing inventory declined 3.6 percent at the end of November to 4.27 million existing homes available for sale, which represents a 10.3-month supply at the current sales pace, down from a 10.7-month supply in October.

Single-family home sales rose 0.7 percent to a seasonally adjusted annual rate of 4.40 million in November from 4.37 million in October, but are 19.9 percent below the 5.49 million-unit pace in November 2006. The median existing single-family home price was $208,700 in November, down 3.7 percent from a year earlier.

Regionally, existing-home sales in the West increased 10.3 percent in November to a level of 960,000, but are 25.0 percent below a year ago. The median price in the West was $325,800, which is 6.8 percent lower than November 2006.

In the Midwest, existing-home sales were unchanged at an annual rate of 1.18 million in November, but are 16.9 percent below November 2006. The median price in the Midwest was $163,000, down 0.5 percent from a year ago.

Existing-home sales in the South declined 2.0 percent to an annual rate of 1.99 million in November, and are 19.4 percent below a year ago. The median price in the South was $174,200, which is 2.5 percent below November 2006.

annual pace of 870,000 in November, and are 19.4 percent below November 2006. The median price in the Northeast was $258,300, down 3.2 percent from a year ago.

Oregon job gains ease recession worries

Posted by The Oregonian December 17, 2007 11:11AM

Categories: Top Stories

Fears of recession in Oregon diminished Monday as state economists said the state had not only gained jobs in November but also increased employment in October, contrary to earlier reports.

Oregon’s unemployment rate remained flat — at 5.5 percent, for both months — on a seasonally adjusted basis.

David Cooke, an Oregon Employment Department economist, said November’s increase of 7,500 in Oregon’s seasonally adjusted nonfarm employment is significant, especially following the gain of 3,200 jobs in October. Preliminary results for October, based on incomplete data, had shown a loss of 1,400 jobs.

Oregon’s total nonfarm seasonally adjusted employment stood at 1,737,900 last month.

“It really changes our view,” Cooke said. The growth, he said, “indicates that there’s been substantial economic strength in those two months in Oregon’s economy.”

Cooke said that October’s gain, instead of loss, could also change the prognosis of a University of Oregon economic index released last week, which suggested a recession was likely imminent in the state.

Not all the November numbers were positive, however. Retail holiday-related hiring increased, but not by as much as in each of the prior five years. Construction posted a seasonally adjusted job loss of 1,200. But seasonally adjusted employment in the closely watched sector remained above 100,000.

They say we have to make room for 1 million new families and people by the year 2025. We have had a housing shortage for several years. This 6-8 month dip we have been in has brought some great flexibility to this market for the first time since 91-92. Several buyers were in the market in December all asking me…”when should we buy”. They want to buy but the news is just so negative. Well not if your watching. Sales are still ongoing and seller’s are playing with 1-3% of their sales prices to make deals. Underlying this is the continued increase in jobs and a vibrant business economy.

On the one hand we have perception fueled by the media and the gloom and doom. That has created a perception that the entire country is that way. But perception is almost always something different than reality. The reality is that Oregon is in High demand and the mix of tight urban growth boundaries and scarcity of subdivision is still there. There are jobs here. It is a good value and the livability is just the best.

The time to buy is just as the reality begins to change perception. The positive news starting to come out of the Oregon Economic development is just what the Doctor ordered. We are telling our buyers to shop hard and if the right deal is there and you are well employed than jump on it! Now is the time. The best buys will be made between the new year and the first of May.

The fed made some great moves in the past few days and this is adding some confidence back into this market. It is down but it is not staying down. Curious that we are having one of the busiest December’s we have ever had….. in 2007… the down year.

2008 is the year that people will look back and say “I got a great buy that year” or the converse of “We blew it…and should have bought in 2008 in Oregon”. I am not advocating crazy buying but these prices are good if you shop and I do not see that many buyers missing out on this next year. Shop and get the info and buy in early 2008. You can thank me in a year or two when the home is way up!