The latest take on Portland area home prices shows a year-end decline of 2.4 percent in December from a year earlier.

That’s according to figures released Thursday by CoreLogic Inc.    CoreLogic Inc. Latest from The Business Journals Birmingham home prices dipped in DecemberMemphis December home prices declined 5.4% from 2010Nashville home prices dip in December Follow this company , a Santa Ana, Calif.-based real estate research firm.

The decline was less sharp when bank-owned and other distressed properties were excluded — 1.4 percent compared to the prior year.

CoreLogic paints a softer portrait of Portland home prices than the Regional Multiple Listing Service. In January, RMLS said the average home sold in December commanded $260,800, a 6.2 percent decline from one year ago.

The two real estate data firms use different methodologies, which could explain the discrepancy. (Read about CoreLogic’s methodology. RMLS uses its own database to determine pricing averages.)

CoreLogic said its national index, including distressed sales, declined 4.7 percent in December compared to the prior year. It is the fifth consecutive year for home price declines, CoreLogic said.

“While overall prices declined by almost 5 percent in 2011, non-distressed prices showed only a small decrease. Until distressed sales in the market recede, we will see continued downward pressure on prices,” said Mark Fleming, CoreLogic’s chief economist.

Distressed sales account for about 15 percent of the Portland home market and 20 percent of the national market.

http://www.bizjournals.com/portland/news/2012/02/02/corelogic-confirms-price-declines-for.html?ed=2012-02-02&s=article_du&ana=e_du_pub

While everyone wants to know when the housing market is going to rebound, the exciting news for those of us in the industry is that this may be the year of the flat line!   Since June of 2006 we have watched market values erode, in excess of 10% per year for a couple of years, but in 2010 the rate slowed to 8.7%,  and this past year according to Standard and Poors Case Shiller index, Portland’s values decreased only 4.7%.   For many folks this may still seem disappointing, but for home buyers this is excellent news, especially when you combine it with the fact that mortgage interest rates have set new record lows in the 4% range.   However, this is only one form of measurement, so here are some items that we, the troops on the ground here in Portland, would like to convey.

Year End Stats:                        2010       2011   
Inventory is Down                   45,691     34,084          
Sales Units are Up                   18,926     19,682            
Market Absorption Improved    7.9           5.3

It is common knowledge that, as inventory tightens, price begins to stabilize, and we are seeing it on the front line when working with buyers.   In years past we touted that the reason to buy now was that buyers finally had the ability to shop as there was a broad selection of homes.  Today, we have more buyers than sellers who are eager to snatch up a home at a 4% fixed rate mortgage, but the selection is not there.   Buyers, like Realtors, are anticipating the typical increase in inventory this spring as home sellers wait for the sunshine to show their homes.  But in the past few years, the carryover of inventory of available homes caused a glut of inventory in the spring.  This is not the case today.

At the end of 2008, the actual market absorption (time needed to clear out the current inventory of available homes) was over 14 months.  Today, those rates are down to 5-8 months.   The actual market absorption rate for your home may still be higher or lower than these figures and that is dependent on your location, price range, property type (single family home, condominium, acreage, etc).

Another positive indicator is lot sales.  Between 2008 and 2010, very few, if any, builders were buying lots as there was no available financing, and by the time builders would finish building the home, it was apparent based on market trends that the home could be worth 10% less than what they had projected.   A leading optimistic trend is that builders are now buying lots; in fact they are scrambling for them.  Some are able to get some traditional financing, but most have established creative private sources of funding to conduct business.  In 2009, based on the market absorption,  it was not uncommon to see that there was a 3 year supply of available lots, and now that figure is closer to a one year supply, but worse yet, much of the supply is made up of the “left overs” – the least desirable lots. 

Finally, it was recently reported in the Oregonian, that the actual number of foreclosures in Portland was lower than anticipated, once again suggesting when combined with these other bench marks, that the market appears to be stabilizing.

If you would like to know specifically where your property stands, or would like to begin formulating your real estate/home buying, selling, downsizing, or upsizing plan, please contact one of our brokers.  In my opinion, this is a very pivotal time to either make the move or develop your strategy for the years.

The foreclosure market in Oregon and nationwide improved in 2011, though foreclosures could tick higher this year.

The number of homeowners in Oregon who dealt with some form of foreclosure filing in 2011 dropped 39.14 percent from the previous year and 34.08 percent from 2009.

According to a year-end market report from Irvine, Calif.-based real estate data firm RealtyTrac there were 22,492 foreclosure filings in Oregon last year, or one for every 73 households. That ranked Oregon No. 14 nationwide in terms of the percent of homes in foreclosure.

The average price of a foreclosed home in Oregon is $171,044. According to the most recent data from the Regional Multiple Listing Service, the median price of Portland home not in foreclosure was $225,000 in November.

Multnomah County had the state’s highest level of foreclosure activity in 2011, with 3,335 foreclosed homes.

Nationally, there were 1.89 million homes in some stage of foreclosure last year, down 34.27 percent from 2010 and 33.17 percent from 2009.

While foreclosure activity in 2011 was at its lowest level since 2007, there could be jump in the numbers this year as lenders continue to work through a backlog of distressed mortgages.

“The lack of clarity regarding many of the documentation and legal issues plaguing the foreclosure industry means that we are continuing to see a highly dysfunctional foreclosure process that is inefficiently dealing with delinquent mortgages,” said RealtyTrac CEO Brandon Moore in a statement. “There were strong signs in the second half of 2011 that lenders are finally beginning to push through some of the delayed foreclosures in select local markets. We expect that trend to continue this year, boosting foreclosure activity for 2012 higher than it was in 2011, though still below the peak of 2010.”

http://www.bizjournals.com/portland/news/2012/01/12/oregon-foreclosures-down-40-in-2011.html?ed=2012-01-12&s=article_du&ana=e_du_pub

Portland home prices in October were down 4.7 percent since the same time last year, according to Standard & Poor’s Case-Shiller Home Price data released Tuesday. Portland home prices were also 0.5 percent lower than in September.

Case-Shiller tracks monthly home prices in 20 markets.

Annual home prices improved in 14 of the markets, including Portland. Last month’s data showed Portland home prices were down 5.7 percent in the past year.

Nationally, annual home prices were down 3 percent and 3.4 percent, respectively, for the 10- and 20-city composite indexes. For the month, the 10- and 20-city composite indexes were down 1.1 percent and 1.2 percent, respectively.

The index is based on a base value of 100 in January 2000.

Portland has an index value of 135.44. That means a typical Portland home has appreciated in value 35.4 percent since January 2000.

http://www.bizjournals.com/portland/news/2011/12/27/Case-Shiller-Portland-home-prices-down.html?ed=2011-12-27&s=article_du&ana=e_du_pub

Between shipping holiday packages, planning the family trip and baking cookies, the holidays can be anything but happy. Fortunately, The UPS Store ® hopes to help keep your holidays happy and hassle-free.

For customers who prefer to do it themselves, Tim Kimble, The UPS Store owner, offers the following tips:

• Begin with the proper materials: a new cardboard box designed for shipping, professional-grade packaging tape and packaging material like foam packaging peanuts or bubble cushioning (at least two inches all around).
• Include a label on the inside of the package with the destination and return addresses.
• Use a shipping option that provides a package tracking number.
• Take batteries out of toys, electronics, etc., before shipping and wrap them separately to avoid contact with metal.
• Seal home-made holiday treats in an interior airtight container or plastic bag before packing them and use an expedited air service.
• Ship wrapped gifts and luggage ahead to your destination, especially if traveling by air.

With only 20 shipping days between Thanksgiving and Christmas, good timing is critical. Mondays are typically the busiest shipping days and Dec. 12-16 is expected to be the busiest week of the year, but Tim expects to see the holiday rush as late as Dec. 22 for delivery on Dec. 23.

The UPS Store is located at 10940 SW Barnes Rd., Peterkort Towne Square.

Home preparation is the key to a quick sale at top dollar and the job to get one’s home ready takes a lot longer than most sellers realize.   Clean up, bids, color sections, scheduling, the process of getting your home prepared for professional photographing and  video filming is extensive and can easily take two to three months.  While we see some homeowners rally in a few weeks, most believe they can have it done quickly, only to hit the market a month or two after their initial goal.  This is where a good broker who is well connected and has design savvy can save you time and get you lined up to be one of the first fresh listings to hit the market this spring.

If you’d rather not fight the crowds at the malls or big-box stores this weekend, stop by Leedy Grange Hall, 835 NW Saltzman (the building with the mural!) for a great selection of gift items from local artists, crafters and entrepeneurs. We open up on Friday 3-8 pm — and there will be some special opening-night treats! “Just Us Flute & Guitar” duo will entertain from 4:30-6:30 with a selection of Celtic and Classical music, plus some favorite holiday tunes, too! And Mireille Nett, of Couleurs de Provence, is bringing her delicious French cookies called Madeleines – sample vanilla and lavender-flavored delicacies along with hot cider, coffee & tea, all free. The Bazaar continues on Saturday: 9-4; and Sunday: 11-4. Credit cards are fine.

Visit http://leedygrange.org/bazaar for more information.

As America comes upon hard times, many home owners have unfortunately had to sell and move into a rental home as they look to regroup and rebuild their nest egg.  The result is that good single family home rental properties are tough to find, rents are going up, supplies are decreasing, and there appears to be a great opportunity for investors to step into the real estate market.
 
When one combines the sub 5% “non-owner occupied” lending rates, along with the home bargains presently in the marketplace, this is a fabulous time for investors.   Prices are down 30-50% over the peak market in 2007 and are likely to stabilize.  Renters are in desperate need of a good home to hold them over with little supply.   And finally a fixed 30 year loan can provide a long term wealth building platform. 

While it sounds too good to be true, one may wonder why everyone is not jumping into this venue.  The answer is simple.  An investor needs a minimum of 20%, and ideally 30-40% down, along with a stellar credit score north of 700, in order to easily obtain financing.   Due to the financial crisis of the past four years, most folks have lost their liquidity and are not in the position to purchase investment real estate.  It is for this reason that there lies a great opportunity; the demand is down due to the lack of buyers with liquidity and for those who can acquire, the time is right.

China’s Architectural Curiosities…

Check out more – http://www.inman.com/news/2011/11/3/chinas-architectural-curiosities

Hope you have a great weekend!