Everything Portland!

Waiting for Recovery
When you think about it we are all waiting for recovery from the market, except for the buyers. Most buyers want recovery but only after they have found their home on clearance sale right? In this market the buyers are having a ball and the sellers are crying in their soup. Just a mere 4 years ago the sellers were the ones who were really controlling the market place and loving every minute, and now it's the buyers turn.
Buyers although they understand what sellers are going through, feel it's their turn to be rewarded and they are. Prices haven't been this good since 2005 and buyers are making out with "free" interest rates, (at least when they dipped in to the 4% range I consider that free). Oh and that $8,000 tax credit, again free money from the government if you qualify. So where's the risk? And the big bonus for buyers....when the market swings back up so many of them will be dancing for joy at the equity boom they will see and they will talk about the time when they bought when the market was in the tank and how they got such a great deal.
Oh the world of real estate is such an interesting place!



Tides of Change
Lately I have been swamped with new business. Every time I turn around I meet someone new or get an email from someone ready to start looking to buy or needing to sell.
As the summer months are upon us, it's not a wonder things are a little more crazy in this business but it's also a strange time we are in.
With the unemployment rate in Oregon looming around 12-13%, the local economists are stating we will see a turn around as early as 2010.
A new forecast from Moody's economy.com claims Oregon will lead the pack in the top 5 states of getting out of this recession.http://www.msnbc.msn.com/id/30991972/.
It appears the growing consensus is that we are about to see another tide of change in the market. Should we be so optimistic in light of the positivity? I think a bit more time will tell.
In the meantime I stay busy helping those who always need to buy and sell and then the unfortunate seller.
I have seen some stabilization in the real estate market lately, as if we are bumping along the bottom. Hopefully this tide will change for the better!



Home Buyer Seminar May 7th from 7-8pm! Come Join me!
For those of you who are thinking about jumping into the market as a buyer or know of someone...friend, co-worker, family member, come join me for a great evening on May 7th from 7:00-8:00pm at the Baja Fresh off Scholls Ferry Rd conference room. We'll serve food and beverages while we engage in conversation and an informational on the new $8,000 tax credit, discuss financing options in this new market and give a sneak peak of what kind of deals are out here right now for a home buyer to jump on.
If you'd like to invite someone, yourself or forward this on to someone you know please do so or email me with your RSVP! AnneStewart@kw.com or #503-804-1466

I will have a lender partner at this meeting to help interpret some of the financing and we promise to keep it to one hour so you can get home at a decent time!




The sun is out and it almost feels like we jumped into another part of the country with this great weather. Home buyers are out and about this week and my phone hasn't stopped ringing.
In fact many of my listings have really been getting a new surge of activity and a few offers have even found their way through my door.
Something about the good weather and this time of year historically brings the buzz of activity and much needed nourishment to our real estate market.
I showed property the other day with the A/C kicking! The flowers are in full bloom and everything just looks so much better with a little sun!
The market has officially up ticked for the year and I'm loving it!



Does Obama every sleep!
Since the first of the year, I've seen Obama on the news and in front of the public every week, several times a week. He's everywhere and always involved in all these major issues at hand in our world. I have to say I'm impressed. Does he go to sleep? I swear I went to bed watching him give his address only to wake up in the morning and see him giving another press conference. He's on Jay Leno, he's on the news, he's interviewing for 20/20, holy smokes he's everywhere all the time!
I don't remember seeing this much of the last president, not that I'm judging but I see Mr. Obama all the time. It really makes me feel good about our president. He couldn't have stepped in to office in a more stressful time and I'm glad to see he's not in the corner fearing for the nation but rather stepping up to the plate, even with a bit of a sense of humor. I appreciate who he is and what he's doing.
Hope you get some rest and time with your kids soon Mr. Obama! Thanks for being where you are!



The New Housing Act
The new housing Act that is currently on the floor to stimulate the housing market further has been verbally passed and is awaiting to get in front of Obama for a final signature.
The Act helps a myriad of problems going on in our real estate industry and for the first time since I heard the word "stimulus package" I've felt confident this one could position itself to work in every one's best interest.
The act would double the tax credit from $7500 to $15000 for home buyers and not just first time home buyers either! Big plus for anyone who is thinking of purchasing that has already owned real estate. It also addresses refinancing so those who are responsible mortgagees could also take advantage of the all time historic low rates in the 4.0%-4.5% they are proposing.
You can read further at: http://www.google.com/hostednews/ap/article/ALeqM5gdDrWnoMueqVFI-Uo1ClxVZur22AD9652KL00

here's also more data on this New Act:

Fix Housing First Act
· Through lower mortgage rates, provides the equivalent of more than a $400 per month tax cut for 30
years to more than 40 million creditworthy American homeowners.
· Provides an additional $15,000 tax credit for the purchase of a new home.
· Includes targeted income and business tax cuts to help create new jobs.
How it Works
4.0 to 4.5% Fixed-Rate 30-Year Mortgages
· New and refinanced mortgages would be available for 4.0 to 4.5% -- providing a monthly savings of more
than $400 for the average homeowner?s mortgage payment.
· Banks would issue these lower fixed-rate mortgages on primary residences ? both for new home
purchases and for refinanced mortgages for responsible homeowners.
· To encourage banks to issue these mortgages, the government will direct Fannie Mae and Freddie Mac to
purchase these newly originated loans. Homeowners already holding loans from Fannie and Freddie
would also qualify.
· The new, lower rate would be roughly between 4.0 to 4.5% today. The rate would be calculated based
upon the historic spread between the 10-year Treasury bill and the 30-year fixed mortgage rate.
· The program would not be for ?jumbo? loans.
· These mortgages would be available only until the end of 2010 ? the time period of a targeted stimulus.
· The cost of the program is capped at $300 billion, though economists believe it would actually be much
less.
$15,000 Homebuyer Tax Credit
· The proposal expands the current first-time homebuyer tax credit to make it more attractive and
effective.
· Specifically, the size of the tax credit is doubled from $7,500 to $15,000 (or 10% of the purchase price,
whichever is less) and the program is expanded to cover all primary residences and all homebuyers, not
just first time homebuyers and vacant or foreclosed properties.
· Available for purchases made between January 1 and December 31, 2009.
· The cost in lost revenue to the government is about $20 billion.
Loan Modifications
· Privately securitized mortgages are at the core of the housing crisis. They account for more than 50% of
all foreclosure starts, despite accounting for only 15% percent of all outstanding mortgages.
· This provision could substantially limit foreclosures at an estimated cost between $9B and $12B by:
o Temporarily (for 3 years) compensating servicers who modify privately held mortgages to allow
homeowners facing foreclosure to pay lower monthly payments.
o Temporarily (for 3 years) eliminating legal barriers to loan modification and creating a ?safe
harbor? from lawsuits for servicers who act in good faith to do loan workouts

A Real Stimulus: More Bang for the Buck
· At a cost to taxpayers of only $300 billion, the 4% mortgage plan could provide up to $6.1 trillion in
savings to homeowners over the course of the 30-year loans ? up to $150,000 for the average
homeowner.
· That?s over $5,000 each year they can spend on other priorities for their families ? spending that will spur
job creation.
Restoring Homeowner and Financial Security
· The economic downturn began with a collapse of the housing market; no stimulus plan will work if we fail
to address housing. If we don?t fix that problem, we?ll only be treating the symptoms.
· More than 860,000 properties were repossessed by lenders in 2008, more than double the 2007 level.
· The Fix Housing First Act will bring security to homeowners, thereby stabilizing the housing market and
financial markets:
o Increases home sales by lowering costs for new homebuyers, reducing the extensive backlogs of
housing inventories
o Decreases foreclosures by allowing eligible homeowners to refinance into more affordable
mortgages and by incentivizing mortgage servicers to do loan workouts
o Helps stabilize housing prices by increasing the number of homes sold and decreasing
neighborhood foreclosure effects
o Helps facilitate loan modifications for struggling homeowners
o Eliminates the uncertainty for the value of securitized mortgages held by financial institutions,
lowering their need to hoard capital and increasing their ability to lend
o Stabilizes credit markets by providing new cash flow to financial institutions
Targeted Tax Cuts to Create More Jobs
· To spur job creation and help struggling families, the legislation also includes targeted tax cuts:
o Help for Families: Income tax cuts for low and middle-income families: a two-year reduction of
marginal income tax rates on the lowest brackets, from 15 to 10% and from 10% to 5%.
o Create Jobs, Stimulate Spending: Extension of Bonus Depreciation for 2009: reduces costs of
buying new equipment to encourage business growth, including for small businesses.
o Effectively Utilize Losses: 5-year Carryback of Net Operating Losses: helps businesses that have
seen profits turn to losses during this recession.
o Help Our Heroes: Incentives to Hire Veterans: provides a tax credit to businesses that hire
veterans.
o Inject Liquidity into Our Economy: Delayed Recognition of Certain Cancellation of Debt Income:
provides targeted tax relief to companies when settling debts with their creditors, which helps
save jobs.
o Encourage Investment: Small Business Capital Gains: based on President Obama?s proposal,
eliminates capital gains taxes for start-ups and certain small businesses.
o Infrastructure Investment: Broadband Internet Access Tax Credit: encourages companies to
provide high-speed internet access to areas without such service today.



Check out this new listing! Lake Oswego














Hidden back off the street lies a great house with a BUNCH of potential in Lake Oswego.





Starting at $599,000





4 bedrooms, 2 1/2 bathrooms with vaulted cedar lined living room and fireplace. Den on the main level with plenty of built-ins, gorgeous granite tile.





Keep your eyes on this house as we are going to marketing it aggressively until it sells!


















Multiple offers???
For the second time in less then a month I have found myself in a multiple offer situation. My client has seen the house he loves, the house has been on the market for a few months...so we wrote an offer.
To my surprise the listing agent called to say that they just happened to have a showing and the other buyer slipped in a quick offer just as he was presenting mine!
I, representing the buyer, can hardly believe it. You'd think we were back in the 2005 market! But as I've always known the best houses in even a bad market get snatched up, especially if they are priced right and condition perfect. I actually have a technical name for this; it is called..."going in to heat", just like animals do. The houses send out their powerful "home-hormone" and the minute a buyer wants it so does another one, and they seem to show up in the nick of time; like it was planned by a stretegic circle of closely networked agents & buyers...Of course I like to see this kind of activity happen in today's market but not when I'm representing my buyer!
Although the outcome is still unknown at this point, and I await the results of our bidding, I ponder this mystery of the industry and the daily unexpected surprises that await around every corner.



Today's Rate
4.625% on 30yr Conventional
5.000% on FHA 30yr fixed


Posted above are rates for the day of January 28th 2009. Wow, did you ever think rates would be in the 4% range? I often tell my clients that anything below 5% is free money to borrow. It just can't get any lower, truly! We thought the 5-6% was fantastic but with 4%+ range showing it's face every week it truly is an amazing time to buy. As a buyer there is no risk...a glut of inventory to choose from, rates are at a 40 year all time low, and housing prices are down..where is the risk? Wonder why all the buyers seem to have so much fear?
If your a buyer you should be shouting from the roof tops on how exciting it is to be in this market. I have seen more deals then ever out here. A few years from now when the dust settles; those who bought in this climate will be thanking their lucky stars they did. Even amongst the glum housing and economic conditions we are facing we will make many homeowners wealthy again down the road.



Latest Housing update by Standard & Poor
The following is a link to Standard and Poors latest housing data:

http://www2.standardandpoors.com/spf/pdf/index/CSHomePrice_Release_012724.pdf



Dynamite Deals!


A dynamite deal in the Tigard neigbhorhood off Barrows Rd for only $239,900. Where can you find a 3 car garage!

A 2 bedroom, 2 bathroom condo with Garage! $159,900, near easy freeway access and shopping.



Real Estate Update for December 2008
http://



Pre-Forclosure, A Steal for a Buyer $239,900


I just took a listing this past week from a client with a bit of a distressed situation. Before it goes into forclosure they asked if I would try selling it for them....auction date in February, no pressue right!


These transactions are called Short sales, they are unfortunetly a common thing right now as people who used exotic loans attempted to purchase houses at the highest price with no money down and not-so-clean loan terms = Trouble.


So this home is a 4 bedroom home in Tigard/Portland area that offers a 3 car garage for only $239,900! What a deal. It however needs all new carpet, paint, landscaping, maybe some fixtures, appliances and whammy, you got yourself a bit of sweat equity and a great home!
I foresee many home sellers down the road who took advantage of all these great deals that are in the Portland area. Interest rates are at the lowest they have been in 40 years, I've seen as low as 4.5% and the housing inventory is in the favor of the buyers. Where's the risk? None! The risk was in the last 4-5 years prior with all the crazy houses over-priced and crazy loan terms. So now is the time to take advantage of this great opportunity!
Call me to see this house #503-804-1466













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