Agent Profile
My job is service...service to you and your real estate transactions! How can you benefit from my 25 years of experience and expertise? What can I offer to make the process more productive?
* Current information on available housing...comparative and competitive market pricing and analysis
* Daily involvement in the local real estate marketplace.
* Thorough, comprehensive knowledge reflecting years of helping others complete their real estate business.
* Extensive network of professional resources to make the process as smooth as possible.
My commitment is to you! Being available to you...returning your calls...answering your questions...addressing your concerns...respecting your money...matching your timeline...meeting your expectations...helping accomplish your real estate goals!!
JANEESE JACKSON: 503-709-0802 or jj@janeesejackson.com
Billy Joel sings “And, So It Goes”
JUNE 2010 PORTLAND REAL ESTATE UPDATE!
Once again, when comparing sales activity in the Portland metro area in May 2010 compared to the same time last year (May 2009) closed sales increased 43.7%. Pending sales and new listings both decreased by 24.1% and 10.2% respectively. HOWEVER (and it’s a big “however”) a lot of that is still the residue sales from the “First-Time Buyer Tax Credit” and a little from the “Repeat-Buyer Tax Credit”. Those deals had to be accepted by April 30th, 2010 and were supposed to be closed by June 30th, 2010 (however, the Senate just voted to extend the required close date to September 30th, 2010). Altos Research (which updates weekly) shows that inventory and days-on-market are climbing, while the Market Action Index has been flat recently. This trend points to a weakening market. It is still a buyer’s market, yet we’ve seen some areas with pricing moving higher, but because of high inventory levels our price conditions are still very fragile and if the market cools off further that price trend is likely to reverse. When comparing May 2010 to the month prior, the average sale price fell 2.3% ($275,500 v. $282,100) and the median sale price decreased slightly by 0.4%. Total market time has decreased from this time last year from an average total market time of 147 in May 2009 to an average total market time of 123 days on market in May 2010! We are down to 7 months of inventory. Our inventory in months is calculated by dividing the Active Listings at the end of the month in question by the number of closed sales for that month. It would take 7 months to absorb the current inventory if sales continued at the same pace. All the research continues to indicate that we are in recovery (although, I’m not really “feeling the love”) but that it will be a slow process that could take 3-5 years.
My experience in the everyday Portland real estate market is that buyers are still looking for a “steal or a deal” and sellers are still not fully comprehending the competitive nature of the marketplace. Buyers are reluctant to “step up to the bat” unless they feel the property is priced at or even slightly below what the current market dictates. There is still increased inventory and a smaller pool of buyers. Once a property gets correctly priced, I often see or hear of multiple offer situations (and experienced it myself recently), so there ARE buyers out there. The credit markets are still very tight and appraisal standards are amplified. I’ve experienced multiple problems with appraisals as the pendulum swings back from the era of “drive-by” appraisals to the reactionary “over-kill” now present in the lending environment.
Sellers, let’s pretend that someone drops in from outer space and does not know what has happened to our local, national….NO, world real estate market and they agree to pay full price on your property (even though it’s priced over recent “solds” in the area). They don’t go see and compare other similar homes (because they’re from outer space). Unless they just won the lottery or have a considerable cushion of cash (and are willing to use it all to buy this home), they must get a mortgage. If they are one of the prudent ones with good credit, a saved downpayment and can overcome the new strenuous mortgage requirements, the house must still appraise. The average buyer will balk at purchasing for more than the appraised value. I paid over appraised value last year on an investment property, but you have to be pretty confident that you are making a good investment. Generally, the only buyers willing to do so are investors (either the numbers work for a rental property or a 1031 exchange protects profits from the sale of another investment, etc). You can consider the current active listings but just so you’ll know your competition. The only properties that an appraiser will consider are recent, comparable “solds” (they prefer to only go back 3 months). I recently completed an article on “Why Homes Don’t Sell”. Remember: it doesn’t matter what you paid for the home, how much you’ve spent on the home or how much you need out of the home, the only factor that determines what a home will sell for is how much an agreeable and able buyer is willing to pay (but, see “must appraise” above)!!
Buyers, let’s pretend you are waiting for the “bottom of the market”. Some areas and neighborhoods appear to be already there and repairing, others could still be challenged due to “shadow inventory” of foreclosures and short sales. Do keep in mind, that interest rates will trump price over the life of the loan. Rates are holding between 4.5% and 5%. But, as the economy improves, interest rates will most likely go up. Most of the time, you will find ample inventory and have plenty of time to consider your decision. However, occasionally when a property is priced right, savvy buyers will immediately jump on a “good buy”. That could force a multiple-offer situation. So, being prepared (which includes watching and comparing inventory, getting your mortgage pre-approval, as well as mental readiness) to make a decision could be paramount to success. What is a good deal in real estate? When you get what you want!
About the Author | Janeese Jackson
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