Showing Activity Down

Not a surprise, but RMLS just announced that last week’s lockbox activity was down nearly 4% from the previous week.  With the holiday week/weekend, I expect another decrease when the next set of stats are released.

Personal anecdotal evidence says the same thing.  In conversations with other local Realtors, I have found that showing activity has been extremely slow.  Interestingly, though, pending and closed sales are still increasing.  That’s good news!

Hang in there, home sellers!

Housing Recover Driven By Affordability, Tax Credit

The Numbers: Good-bye to the Buyers’ Market?

(The following information is based on October’s Market Action report, courtesy RMLS)

Check out that inventory!  6.5 months?  You could make an argument that we’ve reached that elusive “balanced market”.  Personally, I would like to see a inventory figure between 4 and 6 or so for a few consecutive months before I deem Portland a balanced market (as opposed to a buyers’ or sellers’), but it certainly looks like we’re well on our way. 

Pending and closed sales are WAY up versus October 2008.  When I say way up, I MEAN way up.  Pending sales were up 64%, which is the largest same month increase since February 1996, also known as Winter Quarter of my senior year at UCSB.  Yeah, it’s been awhile.  Closed sales were up a ridiculous 37% versus October last year.

The month-to-month figures aren’t quite as staggering, but they’re fairly impressive nonetheless.  Closed sales increased 11% compared to September 2009. 

Why all the activity?  I think we can safely assume that the first time buyer tax credit’s, then, expected expiration drove many buyers into making quick decisions.  It’s definitely possible that the tax credit extension will actually slow sales back down, but we won’t really know for another month or two.

In the meantime, remember that it is still an incredible time to be a home buyer.  $8000 tax credit for first time buyers.  $6500 tax credit for many current home owners.  Extremely low mortgage interest rates.  Etc.

Rent Your Own House?

In an attempt to slow down the ridiculously high foreclosure rate, Fannie Mae recently implemented its new “lease-for-deed” program for borrowers in danger of defaulting on their loans who do not qualify for loan modifications.

The deed-for-lease program allows home owners to essentially giver their deed back to their lender (bank) and then sign a lease to stay in the home.  With the rising stream of foreclosures, Fannie Mae created this program to allow underwater (or soon-to-be underwater) borrowers of Fannie Mae owned or backed loans who are unable to qualify for loan modifications  a way to stay in their homes.

Stipulations include:

• Borrowers must not qualify for loan modification
• Borrowers must live in the home as their primary residence
• Borrowers must prove they can afford “market rent”
• Payment cannot be more than 31% of borrower’s pre-tax income

The program is useful in that it allows troubled parties a way to keep their roof over their heads, but it will not alleviate the eventual sale of the distressed property.  On the bright side, though, Fannie Mae hopes that this act of generosity will reduce the number of abandoned and/or vandalized foreclosures.  Down the road the properties will likely be sold as REOs.

For more details please visit Fannie Mae online.

It’s Official – Tax Credit Extended

As expected, Congress has officially extended the $8500 first time buyer tax credit through June 2010 (though contracts must be signed by April 30, 2010).  It also adds a $6500 credit for “move up” home owners who meet certain requirements.

As details become available, I will share them here.

http://www.oregonlive.com/politics/index.ssf/2009/11/senate_extends_unemployment_in.html

Smoke Detectors – PLEASE BE SMART

Many of you probably read The Oregonian story regarding a fire at a Clackamas area home.  Thanks to the fire department’s amazing response time, skill and bravery the fire was under control within 15 minutes and damage was minimal to surrounding property.  Unfortunately, after the fire was contained it became evident that the home had no smoke detectors.

Come on!  It’s nearly 2010.  Haven’t we learned anything about safety?  Seat-belts are mandatory and so are smoke detectors.  It’s true.  No dwelling may be sold unless there are operable smoke detectors/alarms installed in accordance with the State Fire Marshall’s rules.

Yes, it’s the law.  More importantly, though, why would ANYONE not have a working smoke detector?  They’re inexpensive and SAVE LIVES!

If you don’t have smoke detectors in your home, please install some immediately (Call your local fire department if you need help or info).  If you do have them (thank you), please check the battery regularly.  If you have children, be DOUBLY vigilant.  If you live near other people (and unless you’re a farmer, you do!) be TRIPLY vigilant.  If you live near a school, don’t even play around.  If you…

Get the point?