Stats & Trends - November 2009

The November 2009 residential highlights have been release from the Regional Multiple Listing Service (RMLS) and it shows some areas of improvement:

• Closed sales were up 72.4% compared to November 2008 (largest on record for the area)
  
• Pending sales rose 19.9% and new listings dropped 7% over the same period

And some areas of decline were noted:

• The average sales price was down 11.4% compared to November 2008
• The median sales price dropped a bit from October 2009 ($239,000 v. $245,000 in October)

Overall, the activity levels are up due in part to the extension and expansion of the Homebuyer Tax Credit which allows for and $8,000 first-time home buyer tax credit and a $6,500 move-up buyer tax credit.

The holidays are typically a slower time in real estate but tend to get busy once the New Year arrives so if you are thinking of making the move now may be a good time to start the ball rolling by contacting me to get a plan in motion.  Remember, even if you are outside the Portland metro area I can still help you by finding just the right professional to assist you.

Gearing Up for 2010

Have you begun to see the light at the end of the tunnel (otherwise known as 2008-2009)?  Based on the trends over the past six months and what the projections are for the upcoming six months it looks like the worst is over.  The residential markets are seeing more activity, inventory levels are dropping and prices seem to be stabilizing.

I'm no Carnac the Magnificent but I have a pretty good feel for how the market will react.  The first quarter of 2010 should remain stable with the Homebuyer Tax Credits of $8,000 for first-time buyers and $6,500 for move-up buyers fueling the surge.  Once the tax credits expire (April 30, 2010 is the deadline for being under contract) we should see a slight seasonal uptick.  What does this mean to you?  At some point the prices are bound to start going up.  Interest rates are at historic lows hovering near 4.75% and prices are at "OMG that's a great deal" levels.

This should tell you something.  Don't kick yourself in the butt 3-5 years from now because you didn't buy your first home, a move-up home or and investment property in one of the greatest buying opportunities you will see. 

I'm telling you now: DON'T WAIT! 

New Short Sale Guidelines Announced

The US Treasury Department has decided it is taking too long for short sales to be approved or rejected by mortgage servicers.  Several changes have been made and were announced last night that could greatly impact home owners facing foreclosure.

Realtors have complained that sales fall through as lenders bicker over the sales price, what they should receive from the proceeds, and whether the borrower will be held accountable for the debt in the future.
Among the changes designed to help homeowners:

• Mortgage servicers have 10 days to approve or disapprove a request for short sale, and when done the transaction must fully release the borrower from the debt
• Borrowers would receive $1,500 for relocation expenses
• Mortgage servicers will receive a $1,000 incentive for completing a short sale and investors will receive incentives up to $1,000 for signing off on payments to subordinate lienholders.

The effective date has not been announced as of yet but I will make the leap and guess it will be right away.  This should help stem the tide of foreclosures and reassure homeowners that they have alternatives to simply letting their home go back to the bank.  By selling the home, even on a short, homes will have new owners living in them rather than remaining vacant for long periods of time.  This helps to stabilize neighborhoods and in the long run will help home values.