Have fun on your search!
Real example: home was owned for over 30 years by one owner; he died, kids want their inheritance; house needs some work...I bring buyer, negotiate for seller to pay 9900 in cc&pp's and to provide Home Warranty, then inspection shows issues...I negotiate for seller to cover enough to make home "safe" by HVAC and Electric standards, sellers want out so after hem, haw, negotiate...they ok to get it sold. The buyer will come out with a home they got for a below market price, a great warranty which allows for pre-existing conditions, all cc & pp paid and enough left in that to cover to buy down a rate to 5.25% fixed for 30. There is instant equity and as soon as they plunk in another 10K the appraisal will be increased by 30K or so. A deal is out there for you; patience and an realtor who will work for you is the key. This deal took some time because I wouldn't settle for the usual negotiations. Knowing how to take advantage of the opportunities that are out there and applying some unique "now" negotiation strategies will help you find just the right investment. Contact me via my web site if you would like help in your search. Best to you!
Thereâ€™s an oft-quoted saying: â€œThere are lies, there are d*** lies and then there are statistics.â€ (For some background on that quote, check out this link: http://www.york.ac.uk/depts/maths/histstat/lies.htm )
The 9% decline figure is elusive to me. However, whatever the figure and source, home prices in the Portland area, according to the highly regarded S&P/Case-Schiller Report, showed a 4.7% decline April-to-April: http://www2.standardandpoors.com/spf/pdf/index/CSHomePrice_R
But, hereâ€™s the rub: that report covers a 7-county metropolitan statistical area. Using those statistics alone to make a real estate decision would be like planning a winter hike on Mt Hood based on the 7-county average temperature for that day.
Tom Inglesby quoted some good RMLS figures in a previous post that show a stronger market than the Case/Schiller report. He also made some good points on the strength of the close-in market and the cost effect of rising interest rates.
However, your question is more about market timing and the future. And predicting the short-term future in real estate is as difficult as predicting Portlandâ€™s weather.
Short answer: itâ€™s always the right time to buy the right house. Butâ€¦whatâ€™s the right house?
In my opinion, if you want to increase downside protection, buy quality of location. This means buying a home in an area where inventory levels are low and values have held up. Within those areas, look for homes in a price range where inventory levels are also low. Some areas of close-in Eastside Portland match these criteria pretty well.
A good agentâ€™s help is invaluable, especially in this market. They know the strong pocket markets in the area. And they should be able to provide you with market date similar to this: http://www.trendgraphix.com:80/ORE/charts/721272137214721572 (If youâ€™re into market statistics, check out this page on my website: http://edburnham.mywindermere.com/index.cfm?fuseAction=conte )
Most important, your agentâ€™s familiarity with the area will help you sort the wheat from the chaff in the listings. They will also provide you the data on comparable homes and the market knowledge you need to determine a good offering price.
Finally, the best general advice I ever got: Take the long-term view. Donâ€™t try to time the market. If the deal seems too good to be true, it is.
Get a good mortgage lender, a good agent and get started!
Happy home hunting!
Ed Burnham, Real Estate Broker
Windermere/Cronin & Caplin Realty Group, Inc
825 NE Multnomah Street, Suite 120
Portland, OR 97232
Visit my website: http://www.edburnhamhomes.com
We are dropping some. Some areas more than others. But for buyers that can commit and are ready to buy you will find willing sellers. I would expect that you will be able to get anywhere from 2-8% off a price but make sure the comps are right on a home.
The big story is the rates. They are going up. A 1% rate increase will mean that you pay $100,000 more for the same home over the term of the loan. So I say be a buyer if you are ready.
Ne constructions starts are way off and there is a sell off in that sector. Once those deals are gone...in a year max...than prices for re-sale start to rise again.
So if you are needing a home do not wait. Be active. Look for late Summer and early Fall here to be the best time to buy.
I am always here to help.
I sold in the last downturn and I am having no trouble selling now.
Re\Max Hall of Fame
#1 Rated Re\Max Agent in Oregon
I think now is a good time to make offers. If you find a property that you want to own, you are able to get it for the price you want, and you and the property are approved for the loan then yes it is a good time to buy.
Best of Luck,
Realty Trust Group Inc.
Tom Inglesby, Broker
ABR, CRS, RECS, CLHMS
RE/MAX Equity Group Inc.
A month ago I would have said wait, but given where interest rates are going I would say if you can find a deal go for it.
I've seen a number of houses selling for up to 20% below what they sold for 2 years ago. I think that's pricing in a correction pretty well.
1. Significantly less sub-prime loans and subsequent foreclosures than CA, NV, AZ
2. Continued stability and appreciation in Portland sub-markets such as inner SE/NE
3. Continued public funding for urban renewal areas
4. Urban Growth Boundary - which has curbed development/inventory
As a result, it appears unlikely that Portland will experience the kinds of price drops we have seen in other markets. In other words, prices may continue to drop, but presumably we're not going to see them bottoming out at 20% (vs. peak) - as is the case in Riverside, CA or Las Vegas.
So, buying in the next 3-6 months may mean that you're not buying at the lowest point, but it would allow you to benefit from the circumstances only a market correction offers i.e. desperate sellers, lots of inventory to choose from etc. If you would like to find out more about this approach check out my blog (see below) which tracks properties that have been on the market for more than 100 days and/or where sellers have reduced their asking price by at least 7%.
The strategy varies for buyers based upon the type and cost of property, your investment goals and the length of planned ownership. Get an agent who will help you think through all of this... and not just try to get you to buy regardless of your goals. Feel free to count on me for that type of help. My clients can count on me to be their realtor for life. That means I'm not just in it for the quick closing. Your dreams, goals and investment risks are top priority. I want you to be happy by encouraging well thought out plans and informed decisions. Give me a call or email email@example.com to establish contact. Feel free to check out my web site. And Best To You!
Stats are Stats and they can be used however you want. I could find you stats that say that we are down 30% in the Pearl and up 12% in inner SE. Tell me what you want. I can make the stats happen.
To answer your question..... Yes. Buy between now and the end of the year. If you need a home get one. If you don't buy and the rates go up 1% than you are paying another $100,000 for the home.
There are some smoking deals rigth now....
I'd go and get one.
Re\Max Hall of Fame