Lattest Market Action from RMLS

November Residential Highlights
For the second month in a row there was a slight decrease in inventory in the Portland metro area. At November’s rate of sales, the 14,435 active residential listings at month’s end would last approximately 8.3 months. The number of new listings dropped again, the second time since February 2006, decreasing 3.1% when comparing November 2007 to November 2006. However, the number of transactions also continues to drop.

When comparing November 2007 to November 2006 closed sales decreased 19.9% and the number of accepted offers fell 27.8%. Despite it all, sale prices appear to remain strong. Average sale price increased 6.9% comparing November 2007 with November 2006 and median sale price increased 2.5%.

Appreciation
Using the average sale prices for the twelve months that ended with
November 2007 compared to the twelve months ending in November 2006, the average sale price appreciated 6.5% ($340,900 v. $320,100). Using the same formula, the median sale price also appreciated 7.0% ($288,900 v.$270,000).

Why We Work So Hard!

Home Prices Slip, Supply Up!- What?

Well it official, prices slip, supply is up! That is according to the Oregonian's Dylan Rivera who just published these findings today in the Business Section. The average droped $1,200 or 0.5% from $286,200 to $285,000. In real estate terms that is nothing. Wow! I also heard the sky is falling! Is there more inventory out there than a year ago? Yes! Is that inventory taking a lot longer to sell than a year ago? Yes! Is the overall housing market in Portland still strong? In our opinion Yes! How do we know this, because we are selling a lot of homes for buyer and sellers?

Here are the simple fact campers- we are back to a more normalized sales cycle with regards to real estate. This is how it should be. Real Estate Agents are the first ones to cheer for the quick sale of any property (i.e. it's how we get paid.) This does not mean this is the way the housing marketplace should operate for a healthy long term play.

Now more than ever it becomes increasingly clear that you must price your property correctly. No more 10-20% "fluff." All home sellers and agents alike must do what is right if they truly want to sell a home. With the overwhelming amount of choice out there a buyer can take his or her time, and really look with a critical eye. They don't have to buy the first thing they see. In fact most of our buyer are taking there time and eating up our gas- just kidding. At $4 a gallon showing homes can get expensive in an SUV.

Furthermore, you property must be 110% ready to go. Clean walls, clean garages, manicured yards, no clutter, clean carpets, and the list goes on and on! These are the basic things a buyer expects when they make a home purchase. You don't want to inherit someone else’s filth or pet hair, or worse. Why should you expect to have someone want to do the same with your home? Like it or not they are buying a product. Your home is a product- plane and simple! It needs to be in excellent shape or they just move on and buy one that is.

So, is the Oregonian correct? Yes and no.... It's all a matter of perspective and perception.

March Residential Highlights

Market Activity in the Portland Metro Area seems to have slowed down when comparing March 2007 with March 2006. New listings increased nearly 24% in the past month, while accepted and closed sales dropped by 9.7% and .8% respectively.
The 10,557 active residential listings at the end of March would last approximately 3.8 months at the month’s rate of sales.

First Quarter/Year-to-Date
When comparing market activity through March 2007 to the same time in 2006, the first quarter appears to be off to a slow start. The number of closed sales decreased 6.2%. Pending sales also dropped 4.8%. However, new listings have jumped 20.3%.

Appreciation
To c a l c u l a t e s a l e p r i c e appreciation, the average and median sale prices for the twelve months that ended with March 2007 are compared to the prices for the twelve
months ending in March 2006. Using those time periods, the average sale price appreciated 12.2% ($327,800 v. $292,100). Using the same date range to compare
median sale price we see a 12.4% appreciation rate ($275,500 v. $245,000).

Brothers Working For You

Bringing to real estate transactions personal experience, Chris and Tim Larsson take the stress out.

Brothers Chris and Tim Larsson of Coldwell Banker Barbara Sue Seal Properties, know real estate from the inside out.

Not only do they understand what buyers and sellers are going through, but they can help navigate the tumultuous real estate waters for investors and home flippers alike, because they have done it themselves.

"Between the two of us, we've bought and sold 11 homes in the last 12 years; a lot of flips, personal resdiences and rentals," says Chris. "That's why we entered into the business-- doing a lot of personal transactions and seeing a need for agents with personal transactional experience. We understand the amount of paperwork, time, energy and effort it actually takes to purchase or sell a home.

"Moving is one of the most stressful things you can do in your lifetime and since we've done it a lot, we understand what our clients will go through and help make their move as smooth as possible," explains Larsson.

In addition, Chris and Tim can help clients sell their home for a higher price by giving them practical advice on how to add value to it. "We have a good handle on what home improvements cost; no only the materials portion of the job, but labor costs as well," says Tim, adding because they have remodeled serveral kitchens and bathrooms over the years, a customer that was anticipating, for example, a $100,000 remodel can realistically expect to pay far less.

"Because we've remodeled many times, we can look at a home ang give a realistic expenditure assessment on appliances, countertops, cabinets, etc.," explains Larsson.

Along with renovation know-how, the Larssons also understand capital gains tax rules. "It's such a huge tax advantage now with the two-year capital gains exemption. There are a lot of people that are selling their houses and making tens of thousands, if not hundreds of thousands of dollars in profit, tax free," they explain.

The note that real estate market is still very strong. "We've sold four of our last five listings within 6 days. And, there is still a lot of opportunity out there for buyers/investors. We are able to help buyers see value by putting a pencil to what makes sense and what does not because we do it a lot ourselves," the brothers say.

The have wide range of clientele. "We work clients that want second homes, rentals, or flips," they say. Our primary focus is taking great care of our current clients and making sure they come back to buy or sell with us again."

Article by Suzie Ridway, Pictures by Vern Uyetake. The Lake Oswego Review, July 27, 2006

Current June Look At Lake Oswego

Appreciation in Lake Oswego is up 13.7% during the last 12 months, despite the fact that Lake Oswego is Portland metro's most expensive area.

Homes continue to be in high demand and that's reflected in the average and median sales prices. Currently, the average sales price is $510,300 and the median sales price of a home is $441,000. From First Addition to Summit Ridge to Sexton Mountain and Fox Hills, homes in Lake Oswego are selling at a relatively quick pace.

Right now, the average days on market for a home to sell in Lake Oswego is 39 days.Overall, the average sales price of a home in the Portland metro area this year is $314,500 and the median sales price is $264,900.

Lake Oswego's Cottages are both best and beset

Teardowns--A magazine's accolades for First Addition come as real estate trends threaten the bungalows.

Lake Osweg'os First Addition neighborhood, known for its cute-as-a-button bungalows, was designated this month as one of the 10 best cottage communities in the country by Cottage Living. The national magazine gushed over the quaint homes, the easy walk to downtown and Oswego Lake, and the "jewel-box gardens winking from behind picket fences."

But the citation comes at a time when pressures such as population growth, scarcity of buildable land and climbing real estate prices are beginning to threaten the quality of life that earned praise from the magazine's editors.

A hot real estate market is transforming the neighborhood of modest ironworker' cottages into an area of minimansions best descibed as "something-esque" as in, "Craftsmen-esque" or "bungalo-esque."

Houses in the range of 1,000 to 1,5000 square feet are selling for upward of $400,000--in line with the median sale price in the rest of the city and in neighboring West Linn--and many are being torn down and replaced by homes twice the size.

"It's good we got the award now, because I don't think we'll have cottages in the next couple of years," said Jim Bolland, former chairman of the First Addition Neighborhood Association. "Instead of McMansions, we'll call them McCottages."

The city doesn't track demolition permits by neighborhood, but a research project last year by the head of the city's planning commission estimated that more than half of First Addition's affordable housing was at risk of being torn down based on building age and land value.

Neighborhood revolt against the pheonomenon has spaked citywide changes in housing density and infill policies. Houses in First Addition can't cover more than 35 percent of a 6,000 square-foot lot, and house height throughout Lake Oswego now is measured from the floor to the peak of the roof. Last year, councilors, spurred by complaints from First Addition residents maddened by construction noise, passed a Sunday ban on any work requiring a permit from the city.

But that still doesn't prevent Trista Nelson, a real estate agen, from selling a leaky 900-square-foot cottage for $400,000 late last year. Although homes in First Addition aren't as expensive as those in Oswego Lake, prices per square foot in First Addition still average between $300 and $320, real estate agents say.

A drive through the neighborhood reveals the trend: Half-finished homes tower over cottages built in the early 1900's. In later years, low-end apartments and a senior community center joined the mix of housing to create a neighborhood where young couples could buy starter homes and politicians mingled with graphic artists.

The city's ambitious plan for its downtown is one reason for the run-up in First Addition real estate, because the neighborhood is within walking distance of Main Street's glitzy new Lakeview Village, said Shari Newman, a real estate agent. According to her, some of the teardowns welcome but said that the now high prices are pushing out young families and upsetting those who have lived for years in First Addition.

Article by Lisa Grace Lednicer, The Oregonian, June 22, 2006