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The other day I wrote how experts are now viewing months’ of inventory.  It was the norm in the past to say a balanced market had 5-6 months’ of inventory.  However, due to technology, a shift in thinking has taken place. It is now considered the norm to have 4 months’ of inventory for a balanced real estate market.

MONTHS’ OF INVENTORY

In our Portland metro real estate markets and Lake Oswego, we are edging closer to that 4 months’ of inventory that is now considered to be more balanced favoring both buyers and sellers.

“Here is a recent quote regarding “shaving off two months’ of inventory”

Inventory of existing homes for sale edged up 1.1% year-over-year to 1.88 million homes. Unsold inventory rose to 4.4 months’ supply. And this is where it gets interesting – because it breached a new line.

Housing market players are relying more and more on technology to make the purchase of a home and the approval or a mortgage much faster and more efficient. What might have taken months can now be done in days.

These technologies include online listings that are instantly viewable by everyone (rather than printed listings that took a long time to get to the potential home buyer), online research tools, drone-generated video of the home, automated income verification tools for lenders, automated credit approvals, and the like. These technologies are impacting every part of the market. And there have been big consequences.

“Technology has permanently taken two months off the time required to sell a home,” Rick Palacios Jr., Director of Research at John Burns Real Estate Consulting.

A SHIFT IN THE REAL ESTATE MARKET

As I also noted the other day, my experience has shown that once we enter into a balanced market phase, it does not take long to shift to a buyers’ real estate market. A balanced real estate market seems to be short-lived based on the history of previous years.

The media seems to be playing loud and clear that another recession is headed our way. However, all this is not to get panicked over as we were at a fever pitch in real estate sales since the past Recession, in price and lacking inventory. Over time this frenzy could not be sustained and it has now been 10 years.  Inventory levels are increasing.

Buyers are sitting back and taking their time right now so there has been a slow-down for the many reasons I wrote about in my last post yesterday.  None of this is a bad thing. Perception is everything and buyers and sellers will need to adjust to a “new norm”. Real estate is ever-changing and each recession or market is different.

RISE IN INTEREST RATES

Historically, interest rates are good.  Remember the days of 9, 12, 18 and up to 21% (for a short time).  I remember those days.  I have sold real estate during many recessions.  We still sold houses in each recession.  There were still buyers wanting to buy and sellers wanting to sell.  I remember I had a listing that took 3 years to sell, but it eventually did.  I remember the short-time period when we had 21% interest rates.  As agents we couldn’t wait until the interest rates fell to 12%, then we were hoping for 9%. Those years were some of the best years I have had selling real estate.

WANT TO BUY OR SELL?

There is never a better time to sell than when you want to.  The same holds true when buying.  If you want to buy now, buy now! But now is not the time to panic over a perceived recession as reported in the news media which may or may not happen.

RECESSION??

Source: The New York TImes

It is really difficult to look into the future. We can only look back at what history has shown.

Most economists I have heard or read have said they do not feel real estate will be affected very much, if at all, or at least very little. Here is a link to a recent Economic Report I was at while attending our recent Oregon Association of Realtors’ Convention in September 2018.

Granted no one knows for sure about what will happen.  There are many factors in play that can affect an outcome. We can’t worry about something that “might” happen. I will continue to watch and will write updates here on my blog site. (Chart Source: The New York Times)

If you want to navigate the real estate market here locally, I can help.

Thinking of Selling Your Lake Oswego Home?

Now may be the best time to sell your home.  Don’t know how much equity you really have or what a price would be to sell your home?  I can help! Give me  a call. Your home may be worth more than you think. 503-804-9685.

SEARCH FOR REAL ESTATE

There are links above to search for real estate.  I have a new website where you can search or you can use my mobile phone app as well. My website and mobile app provide you with access to all listings available on the RMLS™ system regardless of who the listing agent or brokerage may be. Listings are updated frequently throughout the day giving you the information you need, when you need it.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent.

I have worked in Lake Oswego as a Real Estate Broker since 1978, have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is still strong here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2018. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright law.

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We have been seeing a “shift” in our local real estate market.  In the past few weeks I have seen 8-10 foreclosures in just the Lake Oswego real estate market.  This is unusual in that our economy is doing great and I have not seen this many foreclosures to speak of since our last recession.  Is this a sign of things to come for our local real estate market or are lenders releasing some of their recession inventory?

LAKE OSWEGO REAL ESTATE AND THE DREADED “R” WORD

Since I am not an economist, I don’t know the answer to that, but I will be watching our local market.https://lakeoswegorealestateblog.wordpress.com/

Here are some other things I have seen:

  • Inventory has increased, the highest in 3 years this spring and price appreciation is down to single digits except for the Gresham/Troutdale and Mt Hood areas. In my next newsletter, once our stats for the first half of 2018 from RMLS will be published, I will then post what the appreciation rates have been for the first half of this year.
  • Listings are taking longer to sell and in many cases it is now taking a few weeks to get offers vs the few days we had been seeing.
  • When the renters’ law passed in the City of Portland, many saw a slow-down in sales. The uncertainty of rates, massive growth in a few years and still unknowns on multifamily design standards have created a lull.
  • However, for the most part the rise in interest rates has not really affected our local real estate market (at least not yet).
  • Portland area’s home prices climbed slower than the rest of the nation for the first time since 2012.https://lakeoswegorealestateblog.wordpress.com/

We are still in a sellers’ real estate market.  Prices as I have said many times, will continue to increase due to our low inventory.  However, there will be a point in time when buyers will get maxed out. The cyclical laws of boom and bust demand will eventually end.

But the real question – as the Portland metro areas continue to deal with a population boom, a housing-affordability crisis and historically high increases in rents – is when will that happen? “I couldn’t even begin to tell you that,” said Tim Duy, an economics professor at the University of Oregon. “There’s no fundamental law that says it has to end anytime soon

As a Real Estate Broker, part of my job is to keep informed of not just our local Portland metro real estate markets but also what is happening nationally.  For a while now the dreaded “R” word has been creeping up in news articles-namely “R” as in Recession. However, economists weren’t right about the last one and as of now, I am still not worried about the next one.  I have been selling real estate now through the last 5-6 recessions here in our local Portland real estate market. I am not an alarmist, nor am I a pessimist.  What I am is a “realist”. Further, a recession does not mean there will be a housing crisis.

According to the Merriam-Webster Dictionary, a recession is defined as follows: “A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.” A recession means the economy has slowed down markedly. It does not mean we will be experiencing another housing crisis. Obviously, the housing crash of 2008 caused the last recession. However, during the previous five recessions home values appreciated.

Experts have recently weighed in and said that the top three probable triggers for the next recession are:

  • Monetary policy
  • Trade policy
  • A stock market correction

A housing market correction was ranked ninth in probability. Those same experts also projected that home values would continue to appreciate in 2019, 2020, 2021 and 2022. Others agree that housing will not be impacted like it was a decade ago. Mark Fleming, First American’s Chief Economist, explained:

“If a recession is to occur, it is unlikely to be caused by housing-related activity, and therefore the housing sector should be one of the leading sources to come out of the recession.”

And recently, U.S. News and World Report agreed: “Fortunately – and hopefully – the history of recessions and current issues that could harm the economy don’t lead many to believe the housing market crash will repeat itself in an upcoming decline.”

Bottom Line according to economists is that a recession is probably less than two years away. A housing crisis is not.

Thinking of Selling Your Lake Oswego Home?

Prices are still increasing in Lake Oswego. Interest rates are also increasing but are still low and there is a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. If you want to know the value of your home in today’s real estate market, please call me at 503-804-9685.

SEARCH FOR REAL ESTATE

There are links above to search for real estate.  I have a new website where you can search or you can use my mobile phone app as well. My website and mobile app provide you with access to all listings available on the RMLS™ system regardless of who the listing agent or brokerage may be. Listings are updated frequently throughout the day giving you the information you need, when you need it.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1978 and have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is “hot” here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2018. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

 

Lake Oswego Real Estate And Hurricanes

There are some questions I have been asking myself since the hurricanes hit.  It seems others are starting to ask the same questions.

While the US has been devastated from hurricanes Harvey and Irma and the suffering is unparalleled, the aftermath will bring about many questions.  I have seen reports that Houston and other parts of Texas along with Florida have no building restrictions.  After Hurricane Harvey, I read that Houston allows building anywhere and whatever you want to build, even in flood plains. In addition, I saw a report about Florida building rules where those have been largely ignored, if any even exist, in favor of the big $$$.

Oregon has strict building laws.  We also have our coastline absent of any housing as Governor McCall put into place a law that said the coast is for everyone to enjoy.  I know that our local Lake Oswego building ordinances are also strict and many blame our Urban Growth Boundary for our high cost of houses and a limited supply of affordable housing in Portland’s metro areas.

While you cannot predict what Mother Nature will do, there should be more thoughtful consideration being given as to where or what you can build in hurricane/tornado areas of the U.S. for the safety of everyone.

America is Tested Again and Again

All through our economic commentaries we always are fearful of making predictions. No matter how much information we have, there are always unknown factors which can change the future to a significant degree.

There is no better example of this than what Texas and Louisiana just faced with Hurricane Harvey. An entire region of our country devastated with an amazing amount of support pouring in throughout the country. There is no doubt about the fact that this natural disaster will have a major effect upon our economy — as well as Irma and whichever storms follow. From the devastation of local economies to gas prices, there will be a multitude of factors we will be facing.

In the long-term there will be an economic revival as we rebuild lives, houses and infrastructure. We have rebuilt successfully before and we will rebuild again. America has always demonstrated our resiliency.

However, there are major questions which will remain far beyond this event. For example, we all know that houses are expensive to build and “excessive” regulations are part of that equation. On the other hand, as the insurance companies continue to point out, the lack of adequate building and zoning standards in some areas of the country have increased the cost of rebuilding significantly.

In other words, we have some very hard questions to address, questions which are very difficult to answer. And coming out with the right answers will help us pass this test in the future long after we rebuild this time around.

In the wake of Hurricane Harvey, the Insurance Information Institute (I.I.I.) released a primer on the difference between water damage covered under a homeowners policy and damage covered by flood insurance. The Institute reported 40% of homeowners think that standard homeowners insurance covers flood damage caused by heavy rain, which it does not. “Hurricane Harvey has, once again, shown that tropical storm systems are often major rain events, rather than wind-related.

This brings strong motivation for everyone to consider flood insurance, even if their mortgage lender does not require it,” said Loretta Worters, vice president of Media Relations with the I.I.I. According to the I.I.I.’s May 2016 Consumer Insurance Survey, only 12% of homeowners have flood insurance nationally, the lowest number since 2010 and down from 14% in 2015. Standard homeowners and renters insurance will cover wind damage from Hurricanes. Flood coverage, however, is excluded and is available in the form of a separate policy from the federal government’s National Flood Insurance Program (NFIP) and a few private insurers. The NFIP provides coverage for up to $250,000 for the structure of the home and $100,000 for personal possessions.

Replacement cost coverage is available for the structure of a home but only actual cash value coverage is available for possessions. Excess flood insurance provides protection above the NFIP limits. It is available from private insurers for higher valued properties and for those living in a community that does not participate in the NFIP.

Source: Builder

More Americans Are Staying Put

The overall mobility of the U.S. population is at its lowest level and has fallen by nearly half since its most recent peak in 1985. Americans who live in rural areas are not moving. The rate of people who moved across a county line in rural America was just 4.1 percent, down from 7.7 percent in the late 1970s, according to the analysis. The mobility rate in rural areas has fallen faster than metro areas. “We’re locking people out from the most productive cities,” said Peter Ganong, an assistant professor of public policy at the University of Chicago. “This is a force that widens the urban-rural divide.”

It can stymie economic growth, adds David Schleicher, a professor at Yale Law School. The immobility of rural residents is preventing them from getting higher paying jobs and could even be choking off the labor supply for employers in areas where jobs are plentiful. Economists have indicated that the decline in rural mobility is mostly due to the escalating cost of housing. Small-town home prices have modestly recovered from the housing market crisis, while restrictive land-use regulations in metro areas have driven up prices.

Source: The Wall Street Journal

Multi-Generational Living

More generations are sharing a roof as a growing number of adult children move back in with their parents and aging parents move in with their grown children. Nearly one in five Americans are now living in a multi-generational household (defined as a home with two or more adult generations or grandparents living with grandchildren). The number of multi-generational households in the U.S. has bloomed to the highest level since 1950. About 60.6 million adults, or 19 percent of the population, were residing with their extended family in 2014, according to data from the Pew Research Center on multifamily households. The number has increased from 57 million in 2012.

Economists say the main reasons for the uptick are rising home prices, higher child care expenses, increasing college debt, longer life expectancies, and the growth in diverse communities.

Multi-generational living is more prevalent among certain ethnicities and cultures. For example, 28 percent of Asians live in a multi-generational household; that number is 25 percent for both Hispanic and African American families. Whites have the fewest multi-generational households at 15 percent. Builders have been responding to the trend, constructing homes with more square footage and that contain a separate wing for extended family members.

Source: realtor.com®

Information submitted by: Matt Jolivette, Associate Mortgage Brokers

 

SEARCH FOR REAL ESTATE

There are links above to search for real estate.  I have a new website where you can search or you can use my mobile phone app as well. My website and mobile app provide you with access to all listings available on the RMLS™ system regardless of who the listing agent or brokerage may be. Listings are updated frequently throughout the day giving you the information you need, when you need it.

Thinking of Selling Your Lake Oswego Home?

Prices are increasing at a fast pace in Lake Oswego. Interest rates are still low but are increasing, and there is still a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. If you want to know the value of your home in today’s real estate market, please call me at 503-804-9685.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1978 and have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is “hot” here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2018. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is in violation of federal copyright laws.

Jobs and The Cost of Housing

Guest Author: Matt Jolivette

Last week we counted our blessings with regard to the shape of the economy. This week we will talk about the release of the June jobs numbers which give us another reading regarding the health of the economy. Overall this reading was stronger than forecasts. Thus far this year, job growth has been solid, with just over one million jobs created in the first half of the year. This compares to 2.2 million jobs created in 2016, which puts the economy on track to match last year’s numbers. Despite strong jobs growth for the month, the unemployment rate rose to 4.4% last month, but that is not necessarily a bad thing, as it typically means that more long-term unemployed are re-entering the workforce.

Just as important as the jobs created, wages increased by 0.2% last month and 2.5% over the last year, which was slightly lower than economists expected. Higher wages are important, because they positively influence consumer spending for big ticket items.

For example, if wages do not go up as fast as the cost of housing, this provides a burden on renters and discourages home buying as well. Recently, home price data for April, as measured by the S&P CoreLogic Case-Shiller National Home Price Index, showed another record high — the fifth consecutive month of new peaks. Does that mean that housing will become unaffordable?

We caution you against reaching that conclusion. The First American Real Home Price Index currently shows that housing prices are still around 33% below their peak. To calculate the “real” cost of housing under the Real Home Price Index, incomes and mortgage rates are used to inflate or deflate house prices which are unadjusted for inflation in order to better reflect consumers’ purchasing power and capture the true cost of housing. It should be noted that lower interest rates do not directly benefit renters.

The message? As long as rates stay low, housing is still more affordable today than it was when peak prices were achieved a decade ago.

 

SEARCH FOR REAL ESTATE

There are links above to search for real estate.  I have a new website where you can search or you can use my mobile phone app as well. My website and mobile app provide you with access to all listings available on the RMLS™ system regardless of who the listing agent or brokerage may be. Listings are updated frequently throughout the day giving you the information you need, when you need it.

Thinking of Selling Your Lake Oswego Home?

Prices are increasing at a fast pace in Lake Oswego. Interest rates are still low but are increasing, and there is still a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. If you want to know the value of your home in today’s real estate market, please call me at 503-804-9685.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1978 and have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is “hot” here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2018. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is in violation of federal copyright laws.

Lake Oswego Real Estate National Housing Trends

The real estate market is always changing, and the growing reliance on technology in our industry makes it move even faster. Buyers and sellers search for homes and communicate differently than they did just two decades ago. On top of that, they also have more access to data and information than ever before. https://lakeoswegorealestateblog.wordpress.com/national housing trends

What are some trends that will have an impact on real estate in 2016?

  • Buying costs less than renting.

In most areas, it’s cheaper to buy instead of rent. According to Trulia, nationally, it’s 35 percent cheaper to buy instead of rent, and CNN Money reports that for millennials, it’s 23 percent cheaper.

  • The Internet is king.

The Internet continues to be the first stop for buyers and sellers looking for information. In fact, 43 percent of all buyers looked for properties online before contacting an agent or looking for information about the homebuying process. This percentage is even higher for younger buyers or millennials. It only makes sense. After all, younger buyers are more likely to have grown up with computers in their homes and access to the Web from an early age.

  • Agents are still necessary.

According to the National Association of REALTORS® Profile of Home Buyers and Sellers, 88 percent of buyers would use their agent again or refer him or her to others. Despite having incredible access to information, buyers and sellers still rely on agents to guide them through the real estate process. Buyers want their agents to help them find the right home, negotiate a great deal and help them with all the paperwork. Sellers, on the other hand, want their agents to market their home to potential buyers, sell it within a particular period and price it to sell. Technology hasn’t made agents obsolete — it’s made them more valuable.

Source: Inman News

The total value of America’s residential real estate hit $28.5 trillion at the end of 2015 according to analysis by Zillow. The housing market added $1.1 trillion in value, a 4.1 per cent increase on 2014. Although the growth was lower than in 2014 (6 per cent) some markets have outperformed the national average.

“Total home value growth slowed this year, but there was still a significant increase in overall value, and many markets are more valuable than they’ve ever been. At the same time, more renter households and rising rents combined to set new records in rental spending in 2015.

Americans are spending a lot of money on housing, and that will make affordability an important issue next year,” said Dr Svenja Gudell, Zillow’s chief economist. Americans shelled out nearly $20 billion more in rent in 2015 than in 2014 as people around the country set up 1.8 million new renter households and median monthly rents rose at a record pace.

Source: Mortgage Professional America

SEARCH FOR REAL ESTATE

There are links above to search for real estate.  Or, I have a new website where you can search or you can use my mobile phone app as well. My website and mobile app provide you with access to all listings available on the RMLS™ system regardless of who the listing agent or brokerage may be. Listings are updated frequently throughout the day giving you the information you need, when you need it.

Thinking of Selling Your Lake Oswego Home?

Prices are increasing at a fast pace in Lake Oswego. Interest rates are still low and there is a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. If you want to know the value of your home in today’s real estate market, please call me at 503-804-9685.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1978 and have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is “hot” here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs!

“There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2016. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is in violation of federal copyright laws

RE MAX equity group Portland Housing Update April 2014

Closed sales rose 15.4% from March’s 1,857 and represented a 0.8% increase over the 2,125 sales closed in April 2013. Despite the small increase, it was still the best April for closed sales in the Portland metro area since 2007, when there were 2,594. New listings were up 0.2% compared to last April and 17.4% compared to the 3,090 new listings posted in March. Pending sales increased 11.5% from March’s 2,534 but dropped 4.0% from pendings in April 2013.

The average price the first four months this year was $325,100, up 10.7% from same time in 2013 when the average was $293,600. In the same comparison, the median rose 10.0% from $250,000 in the first four months of 2013 to $275,000 in the same period of 2014.

Portland Housing Update April 2014

RE MAX equity group Portland Housing Update April 2014 .lakeoswegorealestateblog.wordpress.com

Want To Buy A Condo Or Lake Oswego Home And Don’t Have A Down Payment?

Need Help With Closing Costs?

There is a loan program that I have become aware of that gives, yes gives, you up to 3% down which does not have to be repaid. This is great for buyers who haven’t been able to save up for a down payment, are self employed, or need help with closing costs. There are income requirements, but if you haven’t been able to purchase and want to give me a call at 503-804-9685, I’d love to be your Realtor®!

 

SEARCH FOR REAL ESTATE

There are links above to search for real estate.  Or, I have a new website where you can search or you can use my mobile phone app as well. My website and mobile app provide you with access to all listings available on the RMLS™ system regardless of who the listing agent or brokerage may be. Listings are updated frequently throughout the day giving you the information you need, when you need it.

Thinking of Selling Your Lake Oswego Home?

Prices are increasing at a fast pace in Lake Oswego. Interest rates are still low and there is a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. If you want to know the value of your home in today’s real estate market, please call me at 503-804-9685.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1975 and have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is “hot” here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2016. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

Lake Oswego Real Estate Boom or Bust For Housing in 2014

At the end of September, I attended the Oregon Association of Realtors® (OAR) Convention in Sunriver. I had posted on my FB blog page that I would write about that conference. One of the many reasons I attended was to hear Dr. Lawrence Yun, Chief Economist for the National Association of Realtors® (NAR). I had never heard him speak and was really looking forward to it. He did not disappoint.

I haven’t written anything or read what economists are predicting for the 2014 housing market, so this might be a jump ahead of them. Dr. Yun stated Wall Street Economists, as well as the Case-Schiller Report (albeit always 3 months behind housing market activity) both use the NAR stats.

National Housing Market 2013

Here are some bullet points from Dr. Yun’s speech:

  • According to home price forecasts, Wall Street economists and Dr. Yun, house prices will increase nationally by 7% in 2013 and 5% in 2014.
  • Homeownership rates have fallen. During the housing boom, homeownership was 70%, during the housing crisis it fell to 65% and currently it is at 63%.
  • There is an increasing population of renters. However, rising interest rates should persuade renters to purchase soon.
  • We may actually get 6 percent mortgages next year, if inflation increases.
  • Records show that the net wealth of homeowners is higher than the net worth of renters.
  • Average net worth of renters is $3-4,000 while it is $200,000 for homeowners.
  • There is a big gap in wealth distribution and there will be more of an inequality in the future.
  • Nationwide closings in 2013 are up 18%, prices increased 15%, Total $ Volume shot 33% higher, and the total days on the market has fallen from 127 to 100 days.
  • Financial institutions have money but it’s not being funneled to main street mainly because of strict underwriting guidelines, credit scores etc.  The average required credit score is 720.
  • Student debt is out of control.  Most have over borrowed.
  • 90% of average student debt is $13,000; however,10% have over borrowed and owe on average $61,895.
  • 50% of all students won’t be 1st time homebuyers.
  • FHA was a major player during the housing recession and funding it should continue.  We could have reached depression levels had FHA not provided funding.  FHA is for the first time ever operating at a loss and has a shortfall of $2 billion.
  • There have been several spikes in the housing recovery.  The real estate market since July has slowed. NAR is watching closely to see if this a temporary blip, just a seasonal decline or a long-term decline.
  • The current pipeline of buyers has been exhausted and had existed because of pent-up demand. When rates were 3.4% to 4.4%, the serious buyers purchased.
  • Dr. Yun predicts higher interest rates in the next 2-3 years. We are currently experiencing a temporary relief in interest rates, but there will be a sudden jump in rates next Spring and closings will drop.
  • There has been a “last hurrah” for the housing market the past 12-18 months.
  • Inventory of houses is at a 13 year low and could continue to hit 14-15 year lows.
  • 1/3 nationally were cash buyers.  In Oregon, 25% were cash sales. In 1986, during that recession, cash buyers were at 21%.
  • There is no bubble and there will be none.  Dr. Yun feels we are having a over-correction from our downward spiral.
  • NAR feels we will never touch interest rates below 4% again.
  • Dr.Yun feels there will lawsuits because of sellers doing pocket listings to sell their homes.  He doesn’t feel a seller gets full exposure, that it isn’t in their best interest, and they don’t achieve the highest and best price.

Economy and Jobs

  • Job creation is crucial in propping up the missing entry-level segment of homebuyers.
  • Students feel the weight of their loan debt and only jobs will help them pay off debt or buy a home.
  • Creation of jobs is running at a slow pace and hindering young people in the country.
  • There were 1 million new households a year prior to the recession, but during the last 5 years we didn’t see any increases.

New Construction

  • NAR stats show that nationwide, new houses typically sell for 10% higher than resale houses.
  • We are at 50 years lows in new construction inventory.
  • Local builders aren’t able to obtain financing for new construction.  The Wall Street builders such as Centex, Toll Brothers, etc. (large builders) are getting money to build.
  • There will be a shortage of new construction at least until next year.
  • Builders need to build to continue the housing recovery. The only way to a stable housing market is for builders to build new homes.

Housing Boom Or Bust In 2014?

  • It will be a multi-year housing recovery.Lake Oswego Real Estate Boom or Bust For Housing In 2014.lakeoswegorealestateblog.wordpress.com
  • Distressed sales will hit 11 to 13 percent in 2014, and then fall to a single-digit percentage in 2015.
  • Oregon and Washington have higher levels of shadow inventory (distressed but not yet REOs) than California due to our foreclosure processes. California has cleared out most of their shadow inventory which will result in more California buyers moving to Oregon.
  • There were 8 million jobs lost during the recession.
  • 1/2 of all jobs lost in Oregon have come back and are in Portland.
  • According to Dr. Yun, there have been no jobs recovered in Bend, Corvallis, Eugene, Medford or Salem since the recession.
  • Housing inventory needs to reach 1.5 million soon or there will be consistent shortages in the years ahead.
  • Investors are buying houses but not selling.
  • Boomers aren’t planning to retire and aren’t planning to move.
  • Move up sellers are able to sell, but there’s not enough inventory of homes to buy.

Summary

Dr. Yun said the only things that will help the housing recovery stay on track are the creation of jobs, interest rates not spiking, builders adding inventory to the housing market, and Washington D.C. not causing any harm to housing (hope Congress gets its act together!)

There was more!  Here is a link to Dr. Yun’s complete presentation. It was a very interesting speech and I was extremely glad I attended the Convention.

You can use the link at the top of this page to search for Lake Oswego or Portland metro area real estate.

Thinking of Selling Your Lake Oswego Home?

Prices are increasing at a fast pace in Lake Oswego. Interest rates are still low and there is a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your condo or home. If you want to know the value of your property in today’s real estate market, please call me at 503-804-9685.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1975 and have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is “hot” here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate Copyright 2008-2016. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is in violation of federal copyright laws

Lake Oswego Real Estate RE MAX equity group Housing Report June 2013

Numbers Cool Compared to Last Month

Closed sales, pending sales, and new listings all declined in June 2013 as compared to May 2013 but were up more than 10% over last year.

Closed sales declined 6.4% in June compared to May but were up 11.9% over June of last year. Pending sales were down 5.8% from May but up 15.2% over June 2012. New listings slipped 2.1% from May but climbed 16.9% over last year.

Even with the drop in sales and listings, available inventory managed to inch up from May’s low of 2.5 months to 2.9 months in June 2013.

Prices Continue to Rise

The median sales price from January to June of 2013 rose to $257,500. The same period last year, the median sales price $225,500.

 Lake Oswego Real Estate RE MAX equity group Housing Report June 2013.lakeoswegorealestateblog.wordpress.com

 

Thinking of Selling Your Lake Oswego Home?

Prices are increasing at a fast pace in Lake Oswego. Interest rates are still low and there is a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. If you want to know the value of your home in today’s real estate market, please call me at 503-804-9685.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1975 and have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is “hot” here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2016. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

 

Lake Oswego Real Estate April RE MAX equity group Housing Report

New Listings

New listings continued to rise—at 3,623, the number of new listings for the month was the greatest in any one month since August 2010. This also represented a 20.7% increase over March’s 3,002 new listings. The increase in new listings helped inventory stabilize: the number currently sits at 3.1 months, down slightly from last month’s 3.2 months.

Days On The Market

Average time on market currently stands at 91 days—the last time market time was that low was July 2008.

Closed Sales

Closed sales are up as well, with April’s 2,125 posted sales representing a 9.8% increase over March 2013.

Portland Real Estate Prices Increase

The average sales price so far this year was $293,600, up 15.3% from the same period in 2012, when the average was $254,600. In the same comparison, the median increased 15.6% from $216,200 last year to $250,000 in the fi rst four months of 2013.

Lake Oswego Real Estate April RE MAX equity group Housing Report.lakeoswegorealestateblog.wordpress.com

Thinking of Selling Your Lake Oswego Home?

Prices are increasing at a fast pace in Lake Oswego. Interest rates are still low and there is a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. If you want to know the value of your home in today’s real estate market, please call me at 503-804-9685.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1975 and have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is “hot” here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2016. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

RE MAX equity group Housing Update March 2013

Both accepted offers and closed sales earned “Best March since 2007” honors. The 2,628 pending sales were 15.7% over the 2,272 entered in March 2012 and 23.4% higher than February’s 2,130 offers. Closed sales reached 1,935, which topped March 2012 sales by 14.2% and February 2013 sales by 40.6%.

Portland Housing Inventory

The increase in new listings was not enough to reverse the trend in active inventory, which crept down slightly to 6,207 listings. It would take only 3.2 months to exhaust the active inventory at the March rate of sales. This is lower than in any month since June 2006, when unsold inventory reached 2.6 months.

Portland Housing Prices

The average price in the first quarter this year was $290,300, up 15.3% from first quarter 2012, when the average was $251,700. In the same comparison, the median increased 16.6% from $212,000 last year to $247,100 in the first quarter of 2013.

RE MAX equity group Housing Update March 2013.lakeoswegorealestateblog.wordpress.com

 

Thinking of Selling Your Lake Oswego Home?

Prices are increasing at a fast pace in Lake Oswego. Interest rates are still low and there is a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. If you want to know the value of your home in today’s real estate market, please call me at 503-804-9685.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1975 and have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is “hot” here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2016. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

Contact Betty Jung

Betty Jung, Broker
REALTOR®
CRS, GRI, ABR, SRES, CNHSS

MORE Realty, Inc.
14945 SW Sequoia Parkway, #150
Portland, OR. 97224

503-804-9685 Cell

or email:betty@bettyjung.com

"Selling Real Estate Since 1978. There Is No Substitute For Experience!"

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