Archive for January, 2008
…for now. The rest of the nation….not so lucky.
According to today’s Case-Shiller Index release, Portland is only one of three markets in its 20-city index that showed 12-month positive growth in home prices.
At 1.3% growth, Portland joins Charlotte, NC (2.9%) and Seattle (1.8%) as the only shining spots nationally.
Miami, San Diego, Las Vegas, Detroit, and Phoenix have fared the worst in the past year, with a range of 13% to 15% decline in home values.
Pricing has flattened in the metro area, and S&P’s experts believe Portland will join the ranks of the declining values in the next few months. (January’s sales results from the multiple listing service should be out in a couple weeks.)
Grisly details at MSNBC.
Portland’s relative good news covered by Ryan Frank’s Front Porch blog coverage.
Technorati Tags: Portland, Oregon, homes, house, real estate, prices, sales, Case Shiller, index
Photo by nature.net, used under Creative Commons license.
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January 29th, 2008
Ryan Frank at the Oregonian reports that Buena Vista Homes is planning another auction in the next month or so.
Any new takers this time?
More to come…
Technorati Tags: Portland, Oregon, real estate, homes, auction, Buena Vista
January 29th, 2008
In the tempest of the current housing slowdown, the last thing you’d expect to hear is the launch of a new real estate technology startup.
Nevertheless, today marks the unveiling of Roost.com, a venture capital-backed consumer real estate search site, whose model will rely on advanced and thorough multiple listing searches, as well as partnerships with local Realtors, agents and MLS boards.
I was privy to a little advance notice of this service because my brokerage, Advanced Real Estate Services (and a select other few here in Portland) is participating in Roost’s public beta. So, if you choose Portland in the Roost interface and drill down for detailed property information, you will likely be directed to the areshome.com site to view the property details–and hopefully, engage an agent to assist in your homebuying experience.
Unlike Trulia and Zillow, Roost’s listings come from the local multiple listing service, meaning that users are seeing the actual inventory in each local MLS system. Besides Portland, Roost opened searches for Atlanta, Baltimore, Boise, Boston, Chicago, Dallas, Houston, Minneapolis, Orange County, Philadelphia, Sacramento, San Diego, and Washington, D.C.
Roost would appear to appeal to the independent agency market, like us. Many large brokers have their own search tools, but smaller agencies and individual agents cannot afford to build their own. Roost’s revenue stream will come from brokers buying click-throughs from Roost based on geography, akin to Google’s AdWords.
Roost’s launch was well-covered and analyzed this morning by real estate industry bloggers Joel Burslem, Dustin Luther, Greg Swann, plus TechCrunch.
I’ve provided a couple screen captures below, but you should try it out yourself at www.roost.com. The search parameters (image above left) are easy to modify, using the sliders we’ve come to see on sites like Trulia and others.
The search results are displayed rather quickly.
Hovering over a thumbnail of the attached photos pulls up a larger image. Very slick.
Technorati Tags: roost.com, startup, real estate, 2.0, mashup, IDX, Realtor, Trulia, Zillow, listings, areshome.com
January 23rd, 2008
…it’s not always grey and gloomy during Portland’s winters.
Mt. Hood, as seen from Happy Valley. Dedicated to Lila. Enjoy it while it is here!
Technorati Tags: Mt. Hood, Portland, Oregon, Happy Valley, blue, skies, winter, weather
January 21st, 2008
According to RMLS statistics, end-of-year 2007 saw a 6.3% increase in average home sale prices (and 7.2% increase in the median). Please note that these metrics roll 12 months of sales activity together and compare them to the previous 12-month roll-up. While this method ’smooths’ the data, it tends to minimize the most recent months’ activity.
As I have compiled these reports each month, the month-over-month changes to the average and median sale prices has become smaller and smaller. In some market areas, the median did not change appreciably over the past 3 or 4 months.
Areas relying on high amounts of new construction growth showed the smallest gains (Happy Valley, City Center, Oregon City/Canby, and Beaverton/Aloha.
Lake Oswego/West Linn, Northeast & Southeast Portland, plus Yamhill and Columbia Counties were among the stronger markets.
Below are the December 2007 results for year-to-date average and median sale prices, appreciation, and time on market (or DOM*).
| Lake Oswego / West Linn |
$567,900 |
$465,000 |
7.8% |
66 |
| West Portland |
$468,100 |
$379,700 |
3.6% |
80 |
| NW Washington County |
$419,400 |
$385,000 |
5.4% |
75 |
| Tigard / Tualatin / Sherwood / Wilsonville |
$374,700 |
$339,900 |
5.3% |
84 |
| Milwaukie / Clackamas |
$334,200 |
$300,000 |
-5.4% |
79 |
| Oregon City / Canby |
$329,600 |
$303,000 |
1.2% |
79 |
| Northeast Portland |
$321,600 |
$283,000 |
6.4% |
60 |
| Hillsboro / Forest Grove |
$297,900 |
$270,000 |
5.5% |
68 |
| Beaverton / Aloha |
$286,500 |
$260,000 |
3.4% |
56 |
| Southeast Portland |
$285,500 |
$250,000 |
7.1% |
62 |
| Yamhill County |
$281,600 |
$247,500 |
6.1% |
138 |
| Gresham / Troutdale |
$281,900 |
$259,900 |
6.3% |
89 |
| North Portland |
$266,600 |
$253,500 |
8.5% |
55 |
| Columbia County |
$254,000 |
$240,000 |
11.6% |
105 |
Source: RMLS, January 2008.
* Note: DOM or days on market may exhibit reporting inconsistencies and should be used to analyze trends only.
Technorati Tags: Portland, Oregon, real estate, market, results, 2007, appreciation, average, sale, prices, median
January 17th, 2008
December 2007 Portland-area real estate market results are released and despite softening trends in closed sales, inventory, and time on market, the year ended with increases in average and median selling prices.
The 12-month average selling price in the Portland metro area was $342,900 (up 6.3%), and the median price rose 7.2% to $290,000 when compared to the previous 12 month period. (One should note, however, that December 2007 sales prices showed only a 1% increase over December 2006 sales prices. This may be an indication of stalling prices in future months, but I have been wrong before.)
The year ended with 8.5 months’ inventory available and an average selling time of 73 days, both up substantially from year-end 2006. However, one factor in keeping sale prices stable or growing was the drop-off in new listings during the 4th quarter, down 44% from Q4 of 2006. New construction starts are down significantly, and perhaps sellers of existing homes are waiting for conditions to improve.
Other year-end results:
Through the Portland multiple listing service (RMLS), approximately 28,173 properties totalling $9.7 billion changed hands in 2007, down 6.7% from 2006. It was the third highest total sales volume in the market’s history. New listings were up 8.1%, but closed sales were down 13.1%.
Tomorrow, I will post results by market area for average and median sale prices, plus appreciation and time on market.
Source: RMLS, January 2008 newsletter.
Technorati Tags: Portland, Oregon, real estate, market, statistics, results, sales, listings, prices, homes, housing, appreciation
January 16th, 2008
Another installment of Week Links, an occasional link list of items germane to the Portland real estate market.
Bank of America acquires Countrywide for $4B.
Good or bad? Coverage and analysis by Diana Olick of CNBC at Realty Check, Brian Brady at Bloodhound Blog, and Jillayne Schlicke at Rain City Guide.
Portland Spaces, all about Portland homes and architecture, debuts
Brian Libby at Portland Architecture gets us an inside the velvet ropes at the kickoff party. Secret sauce indeed! I look forward to finding a copy of this publication by Portland Monthly.
Coyotes, peacocks, and poop, oh my!
Construction defects aren’t the only issues confronting condo owners.
Jeff Manning at the Oregonian explains.
And one non real estate-related note:
1st Annual No Pants! on MAX
Yup, in true Keep Portland Weird fashion, don’t be surprised to see mass-transit riders dropping trou’ at 4:30pm this Saturday. Coverage and information for those inclined to de-pants on Metroblogging Portland. Underwear required.
Technorati Tags: Portland, Oregon, real estate, links, stories, mortgage, Countrywide, Bank of America, pants, MAX, magazine
January 11th, 2008
The city of Portland has stepped in to provide relief to homeowners dismayed to find themselves on the hook for unforseen, major sewer repairs.
But for a prospective home buyer, a $100 video will help you avoid such shock.
Hopefully, by now it is commonly understood that an inspection of the sewer connection is an integral part of a homebuyer’s inspection procedure. For the uninitiated, a sewer inspection consists of running a fiber-optic camera down the home’s sewer connection all the way out to where it meets the city’s main sewer. The cameras are calibrated to show their distance down the sewer line, so if a crack, tree root intrusion, broken joint, or other obstruction (rats!) is found, it can easily be located in the yard. When it’s done, the potential homebuyer usually gets a DVD or tape of the inspection–their own ‘dirty movie’.
If damage is visible, then repairs become a negotiable item between the seller and buyer. Most of the simple line replacements I’ve seen have run in the $3,000 to $4,000 range. But it can be a lot more–particularly when it comes to the dreaded party sewer line. These are sewer lines that collect from multiple homes, sometimes traverse over several private property lots, and eventually find their way to the city main.
On January 2nd, the Portland city council unanimously approved a subsidy to share the cost with homeowners of replacing party sewer lines with individual connections to the city’s main lines. Over 3,000 properties in the city of Portland are still affected by party lines, particularly those on large lots in older neighborhoods that were subsequently divided to build new homes. The inner SE is especially affected.
From The Oregonian:
The plan…guarantees homeowners a rate of $2.98 per square foot of lot to run city sewer lines near their home. That’s nearly $15,000 for a typical 5,000-square-foot lot. The city will pay the rest of the cost for the work. Homeowners must also pay a plumber to connect their house to that city line, which often costs $1,000 to $2,000, Danaher (city sewer manager) said. That’s still much cheaper than the $25,000 to $60,000 bills homeowners typically face, she said.
So, potential homebuyers, while the city subsidy might be viewed as relief to the existing owners who were staring down a $50,000 estimate, your $100 inspection lets you see the filthy truth with your eyes wide open–and watch it over and over.
Photo: Mark from City Sewer, getting some footage on a 1993 property in Tualatin. Yes, it is advisable to check newer lines, especially if they are long runs out to the city main.
Technorati Tags: Portland, Oregon, real estate, sewer, inspection, scope, disclosure, repairs, party line
January 9th, 2008
It’s a new year Baby, and with it come a handful of modifications to Oregon’s real estate practice.
The 2007 Legislature passed a few items that have impact on homebuyers and sellers, and Oregon’s largest multiple listing service, RMLS, has made some changes, too.
Here’s a summary*:
RMLS Listings Numbers Change: The listing identification number on properties for sale in the multiple listing service has changed. Starting January 1, all new MLS listing numbers start with an ‘8′, as in RMLS# 8000043. This is standard procedure for RMLS, however, it does not ensure that the listing is NEW in 2008. Listings can change brokers, be removed from the market temporarily and relisted, or are merely refreshed with a new number (a practice that is frowned upon). Check with your broker for details for a history of how long a listing has REALLY been active.
Contracts address Measure 49, sort of: The Oregon Real Estate Sale Agreement commonly used by Oregon Realtors, now contains language addressing the recent passage of Measure 49. Like the previous language for Oregon’s Measure 37, the language cautions buyers and sellers to know their rights and the rights of neighboring property owners under the provisions of the new law. Those rights might seem a little murky right now as the courts and counties grapple with land use applications and lawsuits.
Flippers Get Relief: Oregon House Bill 2498 provides an exception to the licensing requirements for general contractors. Previously, if you were in the business of buying properties and fixing them up for re-sale (flipping), you were required to have a contractor’s license. Now, you may work on up to three existing homes and market them for sale per calendar year. Please note that if remodeling requires building permits, the property owner is required to hire a general contractor to perform the work or supervise subcontractors.
Tax Withholding: This change may bite a few investors this year. Oregon House Bill 2592 created a provision for tax compliance withholding at closing for all non-resident owners. So, escrow companies will now be required to withhold a percentage of sales proceeds at closing from out-of-state or foreign owners that do not qualify for an exception.
The withholding amount is the lesser of: 1) 4% of the consideration; 2) 4% of the net proceeds; or 3) 10% of the gain includable in taxable income.
The exceptions include: 1) when the consideration is less than $100,000; 2) if the property is acquired through foreclosure; or 3) if the seller is advised by ‘professionally competent knowledge or advice’ that it is a non-taxable transaction (i.e. tax-deferred (1031) exchange, sale of a principal residence, etc.). Real estate investors, beware…and talk with your tax advisor!
Other changes: Other changes for 2008 on Oregon’s real estate forms include new warning language surrounding legal lot or parcel validation and some minor changes to property disclosure language, but I won’t belabor them here.
*Note: I am not a tax or legal advisor, but have written this to highlight some of the more significant changes to Oregon real estate practice.
(Disturbing) photo by LifeSciences used under Creative Commons license.
January 2nd, 2008
