Remodeling tests the strength of your resolve.  I feel like it’s very much a step-by-step process combining a flexible plan, lot of resiliency and a bit of faith in your vision.  You are watching the rose unfold, the painting evolve, the present unwrap…okay, I’m a little melodramatic sometimes.  But, it is my “baby” and I really, really care about the progress.  Again, I have a philosophy that if you love your property, your tenants will care more about it!  I’m enchanted by this North Mississippi neighborhood and I appreciate the vintage and “feel” of this piece of real estate.  I’ve already had multiple calls wanting more information about renting simply from people “cruising the ‘hood”.  The refinished hardwoods look great, authentic and aged, but really good.  Thanks to “All About Wood Floors”/503-309-4036 (they finished the floors on the Vancouver duplex last summer also). 

subtle, updated colors replace former "hot pink" paint

just in case you forgot the former awful bright pink

black & white "art deco" look in the kitchen w/soft yellow walls

new tub surround, we were able to save the window

New insulation, bathtub refinishing and kitchen next week.  Stay tuned….

MAY 2010 PORTLAND REAL ESTATE UPDATE!!

Sales activity in the Portland Metro area continued to show improvement in April 2010 compared to the same month a year ago. Closed sales increased 49.1% and pending sales jumped 60.8%, and new listings rose 23.8%. The average sales price for April 2010 decreased 3.1% compared to April 2009, while the median sale price went down 4%. Month-to-month, there were minimal changes in prices. Comparing January through April 2010 with the same period in 2009, closed sales increased 41.4%. Pending sales jumped 46.3%, and new listings also rose 15.4%. We are now at 7.3 months of inventory, which is the lowest of this year. To give it some historical perspective, in 2008/2009 and thus far into 2010, 19.2 months of inventory was the highest (January 2009) and 6.5 months of inventory was the lowest (October 2009…note that was right before the initial first-time buyer credit was to expire). The average market time YTD is 138 days on market. A solid web presence, staging, pricing and a little patience are all virtues. We are adjusting to a new pace. As always, information is VERY neighborhood specific, so contact me for information about your area.

This said, I do believe we have experienced a bit of backlash in May from the expiration of the 2nd tax credit, which ended April 30th, 2010. (May’s Market Update may show some figures down from March and April 2010, though perhaps still better than the same time period in 2009). RMLS (Realtor’s Multiple Listing Service) stats showed that lockbox activity in the Portland Metro area was down 17.3%, when comparing the week of April 26-May 9th with the week prior. Today’s Monday morning stats show the activity recovering some of those losses and when comparing the week of May 10-16 with the week prior, lockbox activity was up 6.4% I think we will now have an opportunity to see what the “new normal” of the real estate market is and where we are in the recovery process without the artificial tax-credit.

As a buyer, the main obstacles I see in the real estate marketplace currently are restricted credit markets (loan programs are limited, money is tight, loan requirements have increased, appraisal standards are amplified) and diminished equity (many people would take advantage of this buyer’s market if they had enough equity in their existing property to move forward with their plans). But, the only way to find out is to ask me to run a analysis of recent comparable sales and plan a visit with a trusted mortgage broker. This is an incredible opportunity (with or without a tax credit) for some buyers. The week ended with mortgage rates hovering around 4.5% for a 30-year fixed loan!! And, FHA is a popular vehicle for that first-time buyer (or anyone purchasing a home with a loan amount of less than $418,750, more for duplexes, triplexes, etc) with only a required 3.5% down-payment. There are also some 90% LTV (loan-to-value, so 10% down) loans out there for “non-jumbo” loans (loan amounts of less than $417,000). So, with low interest rates and pricing you will find some good buys out there. Well-priced investment properties are a great addition to any financial portfolio. These properties are hard to find and even harder to secure, often with multiple offers. Follow my story on a duplex I am attempting to purchase. I almost “over-analyzed” myself right out of this great investment opportunity!!

As a seller, price is the new location. It is still very much a “buyer’s market”. There is a smaller pool of buyers, increased inventory and you must compete with pricing on short-sales and bank foreclosures. A very pragmatic approach to pricing your home is mandatory, even slightly over-priced properties will be ignored by an aware and savvy pool of buyers and dismissed by the showing Realtors. You must “think like a buyer”! Pricing is the hardest part of the marketing process these days because getting priced right is the key and will shorten market time and could ultimately result in more money in your pocket. I have felt a little momentum building again in the marketplace, so sellers have to decide how they want to be positioned in the marketplace!

Forbes Magazine is famous for its lists. And, Portland is always making one list or another. We recently made #16 on “The Best Places to be Single” . Also, #74 for “Best Bang for the Buck” .  And, finally #19 as “Best Places for Business and Careers” due to projected economic growth. Forbes.com analyzed the most recent Case-Shiller report to determine the best and worst housing markets in the nation. Forbes also analyzed monthly declines and year-over-year declines in home prices to determine where prices were falling fastest and where those drops were picking up momentum. Portland ranked fourth best in their study.

By the end of the month you will be able to enjoy my newly updated web site! It will definitely continue to offer the great “search properties” function and daily e-mailing of new property information. It will still include my blog and my Resource Guide as well as other links to valuable information and resources. But, it will have a new look and feel and the goal is to be more search-engine friendly so my listings can be more easily found on the web. Check it out…before and after!!

As always, your business and referrals are appreciated ….jj

So, what does the Portland Oregon real estate market feel like today?  Like “walking through quicksand” or like getting “stuck in the mud”.  It’s moving in slow motion.  Our market gains a bit of perceived momentum and it’s suddenly “dead in the water”.  The Oregonian says in today’s (05/18/10) Business Section:  “Home sales rise, but prices drop”.  These are mixed signals at best!!  There has been a lull since the end of the Federal tax credit and when comparing the week of April 26 - May 9 with the week prior, the number of times an RMLS subscriber (Realtor or appraiser) opened a lockbox decreased 15.6% in Washington and decreased 17.3% in Oregon.  Even if you find your new dream home or a great investment property or get a willing buyer for your home, the roller-coaster ride is just beginning. In an attempt to manage and normalize an industry that went a bit bonkers…no doubt, the mortgage market pendulum has totally swung to an incredibly tight credit market, less mortgage options, extreme difficulties with appraisals and transactions unable to close due to new regulations and restrictions! I’m still waiting to get back “to business as usual” (although I can’t really remember what that was), so at least a “new normal” !!!

One great find was the “Restore for Habitat for Humanity”!  There’s one in Portland located at 66 SE Morrison and one across the river at 5000 E 4rth Plain in Vancouver.  Many local companies and contractors AND individuals donate leftover tile, carpeting, wood trim, cabinet hardware, lighting, appliances, sinks, toilets, paint and more.  It keeps these items out of our landfills AND allows budget-conscious “scroungers” like myself to search for discounted remnants for smaller jobs.  The tile in the duplex kitchen in the upper right photo was found at the Restore in Vancouver!  And, thanks to Moses Beltran for the excellent tile work!!!

This just in…..bored “taggers” hit duplex under remodel!  (More on my recent Portland Oregon investment property acquisition and duplex remodel…if you need to catch up: http://fabulousportland.com/2009/08/10/soi-took-my-own-adviceit-is-a-good-time-to-buy/ or http://fabulousportland.com/2009/08/16/let-the-work-begin/ or http://fabulousportland.com/2009/08/21/more-on-the-continuing-saga-of-the-duplex-remodel/ ).  Oh well, I was thinking that the siding looked a little tired anyway.  We had already erected scaffolding to clean the front of the property but now it will simply be painted to erase the graffiti!  For more on the city of Portland’s graffiti abatement program and to report graffiti property vandalism, go to:  http://www.portlandonline.com/oni/index.cfm?c=32420 or for ideas on removing graffiti, go to http://bit.ly/removegraffiti .  The really good news is that we’ve now met most of our neighbors (who came out to sympathize with our unexpected selection of exterior decor)!  So, something good comes out of everything!  Tile work starts today….

Also, what an amazing difference a little paint thrown around can make!!!  The original facade in photos #1 below and the new color scheme in the 2nd picture.  Shutters will be next on the upper windows in black (to compliment the doors).  It’s a “work-in-progress”!!  It took awhile to get the greenish color that I want (but, finally found it through Kaleidoscope at SE 9th & Salmon…it’s a Benjamin Moore color…and they were VERY helpful with choosing and mixing the correct paint).

Oh yes, and the backyard now has a fence (thanks to Pedro & Beatrice Naranjo)!

Then there was the dilemma with the stairs!  The vinyl stair treads that were glued to the original wooden stairs treads did not want to come off without a fight, so the stair risers and treads ultimately had to be replaced! My duplex partner (with the help of a friend who talked him through the process long-distance) placed new treads and risers.

Investment properties in Portland have managed to “hold their own” in an otherwise challenged real estate market, even though the rental market has also had to adjust prices to compensate for the extra rental inventory.  Portland property owners who feel they cannot garner what they need to sell their home have added to the number of available rental properties, putting downward pressure on rents!

Stay tuned…more to follow!!