All Smiles in Happy Valley?

Uh, not so much.

Happy Valley was hit…hard…by the real estate correction. Honestly, it figures. Unlike, say close-in Portland, Happy Valley allowed new construction at an alarming rate. Sure, at the time there seemed like there was a need. Afterall, those new homes sold quickly and often over asking price.

However, the over-building contributed mightily to the current inventory glut. Put simply, there are just too many homes for sale.

Now the city of Happy Valley is taking the unusual step of holding what amounts to a city-wide open house.

I give them credit. In times like these innovation and creativity rule. Of course, incredible deals are what will eventually moves these homes. There are deals to be had, though. A lot of these properties are bank owned and are going for 30 or 40% below the original asking prices.

The only question is, “Do you want to buy a new construction house in Happy Valley?”

Stable But Not (Yet) Recovering

RMLS released April’s Market Action report and the numbers are consistent with the recent trends.

If you’re a potential home buyer, you’ll be ecstatic to hear that Portland housing is at its most affordable point since December 2004. Have I mentioned that now is an incredible time to buy, especially if you’re a first time buyer? Affordability takes into account housing prices as compared to average income. While this economy has been no fun for most of us, there is a silver lining if you have stable employment and want to buy a home.

Put simply, the market is slowly improving. We’re seeing incremental increases in sales activity (as measured by closed sales) and slow decrease in housing inventory. As I’ve been saying for quite some time, it is my contention that the housing market will not fully stabilize and begin its recovery cycle until inventory comes back down to a reasonable level. April’s inventory was at eleven months, meaning at the current rate of sale there are enough houses on the market to last eleven months. I’d like to see inventory absorbed and a monthly figure of seven or eight. That would bring us closer to balance. Still, the decrease from twelve months to eleven is a positive sign.

In a sign that prices are beginning to find their equilibrium, housing prices stayed just about the same in April, as compared to March.

When we compare April 2008 versus April 2009, we see a similar trend of stability. Prices are down roughly 10% compared to April of last year. Sales volume is down about 18% and new listings are down 28%. Those figures are very similar to what we’ve been seeing since February or so. Again, the signs point towards a stability, though not yet recovery.

OK, here’s what you’ve all been waiting for, how much have prices dropped? The twelve-month average shows a 7.4% drop in prices. All things considered, that’s pretty good. Portland has been lucky to avoid the true crash that markets hit places like Detroit, Phoenix and Las Vegas.

For a closer look at your part of town click here. h

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Every Cloud Has a Green Lining

The Oregonian ran a very interesting article about how the down economy and slow real estate market is a boon to conservation groups. You know the old saying that every cloud has a silver lining, well the omnipresent cloud of a bad economy most certainly has a green lining. Conservation groups are buying acreage originally slotted as subdivisions guaranteeing that some valuable (and not just valuable in terms of money, but in terms of nature, beauty, serenity, etc.) local land will not be developed anytime soon.

I understand that I’m a real estate agent and I should want development so there are more homes to sell. Uh uh. I’m a Portlander first and, as such, I love the green, the nature, the ability to live in a city that has both culture and diversity, but also nature and serenity. It’s what brought me here from LA in the first place.

There really is a bright side to the down market. I represent a local non-profit that does redevelopment work in close-in SE Portland. They take run-down apartment buildings and turn them into beautiful new homes for lower income individuals. The tough real estate market has enabled them to purchase property that otherwise might not be available…and at very reasonable prices. They’re able to take local eyesores and beautify the neighborhood while providing housing for some really great people who just need a little help.

Yes, I can’t wait for an economic turaround, but while we wait, I’m happy that every cloud as a GREEN lining.

http://www.oregonlive.com/news/index.ssf/2009/05/conservationists_find_eager_se.html

Government Hard at Work to Protect YOU!

Before I get to the really important news of the day, let me pass on some real estate industry info. Mortgage rates ticked up today. While rates on 30 year fixed loans remain below 5% for the eighth consecutive week, they did tick slightly up today: 4.84 from 4.78. What does this mean to you the consumer? Honestly? Not much.

The real question is simply does this signal a slow and steady interest rate climb? It’s really way to early to say. It’s clear that rates will climb eventually. There’s no doubt about that. It’s matter of when, not if. Personally, I expect rates to remain ridiculously low for the time being.

Unfortunately, while the low rates have led to record refinancing rates, they have not led to as many purchases as hoped. It’s not too late, though. Time to take advantage of the low rates, buyers’ market and first time buyer tax credit!!!

OK, on to the really important local news.

CHEERS!

The Oregonian is reporting that the House has passed House Bill 3122 allowing bars that serve full 16 ounce pints to affix a sticker saying so. No more will you order a pint and receive a 15 or 14 ounce beer.

With Portland’s status as micro-brew king of the world, this is a wonderful step to keep the city lubricated. So maybe this isn’t as important as, say, universal suffrage, health care reform or the like, but it’s a nice step in the right direction. Afterall, we all want to get what we pay for.

Especially when it’s beer that we’re paying for! CHEERS!

http://www.oregonlive.com/politics/index.ssf/2009/05/house_says_yes_to_honest_pints.html

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