Category: Buying Advice

What to do when buying real estate in Lake Oswego, Oregon

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News & Notes

The most recent real estate numbers for Portland and the Lake Oswego/West Linn areas (RMLS lumps them together) are available.

According to the RMLS Market Action Report for the Portland Metro Area, February, 2015:

  • There were 2,884 New Listings in February which was up 4.4% from January, and up 22.5% from February of 2014.
  • At 1,648, February Closed Sales increased 11.6% over January, and were up  12.3% from February of 2014.
  • February Pending Sales (accepted offers), at 2,534, was the strongest since 2007. Up… 10.5%  from January, and up a whopping 37.1% from February 2014.
  •  The Average Sale Price in February of $328,000 was down $1,400 from January, and up $2,500 from February of 2014. 

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The combined areas of Lake Oswego and West Linn  for the month of February 2015 reported:

    • 360 Active Listings
    • 198 New Listings
    • 149 Pending Sales
    • 86 Closed Sales
    • An Average Sale Price for February of $518,300.
    • Average Time on the Market: 100 Days
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Market Activity ~ March 16-22, 2015

The Lake Oswego market is humming right along.  Here is your Latest Market Activity Report:

Last week in Lake Oswego we saw 20 New properties enter the market, 24 move to Pending status, and 18 “Closed”/Sold.

Following is the breakdown for you according to RMLS:

NEW on Mkt (Mar 16-Mar 22, 2015)

Address List Price # Beds # Baths Total SF Prop Type
2189 FERNWOOD CIR $650,000 4 2.1 2921 DETACHD
15938 QUARRY RD #A5 $164,900 2 1 996 CONDO
5157 WOODCREST LN $649,900 4 2.1 3144 DETACHD
17280 WESTVIEW DR $429,000 4 3 2324 DETACHD
11 CHURCHILL DOWNS $430,500 4 2.1 2336 DETACHD
18481 WAXWING CIR $465,000 3 2.1 1840 DETACHD
279 EVERGREEN RD $639,000 3 3.1 2136 ATTACHD
18977 BARTON RD $875,000 4 3.2 5076 DETACHD
0 STAFFORD RD Lot 2 $899,000 4 3.1 2834 DETACHD
134 KINGSGATE RD $399,000 3 2.1 1794 DETACHD
6109 SUMMER WOODS $485,000 4 2.1 2331 DETACHD
25 PARTRIDGE LN $485,000 3 2.1 3148 DETACHD
14383 HOLLY SPRINGS RD $450,000 5 3 2238 DETACHD
54 GALEN ST Upper $135,900 2 2 995 CONDO
14084 GOODALL RD $1,424,900 5 5.1 5399 DETACHD
4201 HAVEN ST $649,900 4 3 2678 DETACHD
667 3RD ST $679,000 6 6 3120 ATTACHD
2609 GLEN HAVEN RD $1,100,000 4 4 3793 DETACHD
2481 MARYLSHIRE LN $795,000 5 3.1 4154 DETACHD
17701 BLUE HERON WAY $499,900 3 2.1 2002 DETACHD

PENDING SALES (Mar 16-Mar 22, 2015)

Address List Price # Beds # Baths Total SF Prop Type CDOM
13721 REGENCY CT $492,500 3 2.1 2311 DETACHD 102
13554 PETERS RD $899,850 3 2.5 3036 DETACHD 36
66 GALEN ST Upper $99,900 1 1 689 CONDO 111
550 2ND ST $395,000 2 1.2 1540 CONDO 286
16735 LAKE FOREST BLVD $315,000 3 2 1192 DETACHD 144
1990 GREENTREE RD $459,900 4 3 2100 DETACHD 11
13819 PROVINCIAL HILL DR $549,900 4 2.1 2096 DETACHD 24
703 5TH ST $979,000 4 2.1 2719 DETACHD 4
200 BURNHAM RD #306 $195,000 2 1 1199 CONDO 29
18706 Bryant RD $499,995 3 2.1 2400 DETACHD
9 DA VINCI ST $399,900 3 2 1768 DETACHD 5
1585 PATTON RD $539,900 4 3 3162 DETACHD 314
1015 SOUTHSHORE BLVD $619,900 4 3 3882 DETACHD 43
17763 MARDEE AVE $447,000 5 3 2300 DETACHD 10
4070 VIRGINIA WAY $747,500 3 2.1 3510 DETACHD 44
9 TOUCHSTONE $397,000 3 2 1890 DETACHD 15
44 AQUINAS ST $379,900 4 2 1870 DETACHD 2
1272 ZIVNEY LN $679,900 4 3 2658 DETACHD 16
1725 FERNWOOD DR $479,000 4 2.1 1580 DETACHD 13
4182 GLACIER LILY ST $630,000 4 3 2799 DETACHD 4
5707 YORKSHIRE CT $780,000 4 3.1 3400 DETACHD 0
2286 WEMBLEY PARK RD $699,000 3 3 2000 DETACHD 103
1033 OBRIEN ST $325,000 4 2 1416 DETACHD 25
17101 CHAPIN WAY $519,000 3 2 1949 DETACHD 6

SOLD  (Mar 16-Mar 22, 2015)

Address Opening Price Closed Price # Beds # Baths Total SF Prop Type CDOM
4650 LOWER DR /Lower $125,000 $115,000 2 1.1 1260 CONDO 86
1349 BONNIEBRAE DR /Twnhs $239,000 $219,600 3 1.1 1303 ATTACHD 118
17225 CHAPIN WAY $395,000 $347,000 3 2 2257 DETACHD 119
18 OSWEGO SMT #18 $69,900 $53,500 1 1 764 CONDO 176
4524 LOWER DR #A3 $315,000 $265,000 3 2.1 1650 CONDO 147
86 KINGSGATE RD #F-106 $142,000 $142,000 2 2 840 CONDO 3
4171 OLD GATE RD $350,000 $330,000 4 2 1752 DETACHD 7
4 TOUCHSTONE #136 $178,500 $163,700 3 2.1 1351 CONDO 5
124 D AVE /Twnhs $550,000 $550,000 2 2.1 1754 ATTACHD 7
2508 ORCHARD HILL PL $439,900 $452,000 3 2.1 2229 DETACHD 4
368 CERVANTES CIR /Twnhs $129,500 $117,999 2 1 882 CONDO 27
1625 BEDFORD CT $595,000 $574,000 2 2.1 2462 DETACHD 9
5487 TUALATA CT $339,455 $339,455 3 2 1200 DETACHD 1
751 BRIERCLIFF LN $528,950 $519,950 4 3 2534 DETACHD 32
127 DEL PRADO ST $459,000 $459,000 4 3 2310 DETACHD 5
17617 ARBOR LN $390,000 $390,000 3 2 1745 DETACHD 214
116 OSWEGO SMT #116 $139,000 $132,000 2 2 1140 CONDO 323
121 LEONARD ST #C $185,000 $178,000 2 2 1118 CONDO 131

Criteria: Homes in the 97034 and 97035 zip code, listed, pending or sold between the dates listed above as reported by the Regional Multiple Listing Service (RMLS). DETACHD refers to Single Family Detached Residence, MFG refers to manufactured housing, and ATTACHD refers to single-family residences with some portion of the structure attached to another property, but not constituting CONDO ownership. DOM stands for days on market, or the number of days from when the listing became active and when it received an acceptable offer, with CDOM standing for “cumulative days on market” accounting for “refreshed” listings.

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Home Warranties

Home warranties have become a common part of the majority of real estate transactions. It is basically an insurance policy that covers the home system components and some of the appliances. My most simple description is that if you think about items that have energy or movement in them, it is more likely to be part of the policy. Each policy is slightly different, so please consult the companies who offer them, but what is usually covered are furnace, water heater, plumbing and electric elements. What isn’t covered are stationary elements like the roof, the foundation, the walls.

When policies are purchased, they are good for one full year from the date of purchase and can then be annually renewed thereafter. I have twice had clients who received the policy when they purchased their home and then kept it the entire time they owned the house.

There are numerous companies who offer these policies. I am going to tell you about the three that I see most used in our area.

ahs_logo_176x65American Home Sheild is the big boy in this field. They were the first company I heard of and they do a big percentage of the plans that are sold. They have 3 plans: Esssential, Plus, and Complete. The numbers I am going to give you here are as of this day, and do not include quite a few options that could be added on. It is based upon a home that is single family, in Oregon, 10+ years of age (newer homes are slightly less expensive) and does not include air conditioning (which could be added on).

The Essential Plan does not cover any appliances. It does cover the furnace, water heater, plumbing and electric. It costs $380. The Plus plan covers the appliances, including the refrigerator and the washer and dryer, and it costs $510. The complete plan adds to the coverage things like the garage door opener, the door bell, and ceiling fans. It costs $565.

To use the policy you simply call an 800 number to make a claim. American Home Shield contracts locally and sends a technician to your home. There is a $75 charge for each service call.

It is possible to place the policy on the home at the time it is listed for sale. I highly recommend this. It is not paid for until the house is sold. If the house is never sold then there is no charge for the coverage unless the policy is used and that charge is just $60. So it is really affordable and the policy could potentially be used to deal with home inspection issues.

logoFirst American Home Buyer Protection Corporation is another well known company. They have two plans: Basic and Value+. Basic covers the home systems including the dishwasher and the range, but no refrigerator or washer/dryer. It costs $290. The Value+ plan adds air conditioning and it costs $420. Other items can be added to this plan, as it can be added to the other two, such as septic systems, swimming pools, the washer/dryer and the refrigerator. The service call to make a claim is $60. First American Home Buyer Protection also offers 180 days of coverage to the seller when the house is listed for sale at no charge, unless the policy is used and then the house is not sold, then there is a charge of $60.

home_warrantyLast I will mention Fidelity National Home Warranty They offer two plans: Standard and Comprehensive. The Standard plan does not include air conditioning and it costs $260. The Comprehensive plan does include the air conditioning and it costs $360. Both plans cover the dishwasher and the range, but neither cover the washer, dryer or refrigerator, which can be added on for an additional charge. The service call to make a claim is $65. Coverage for the seller at the time the house is listed for sale is available at no charge.

I think it’s pretty easy to see why purchasing one of these policies makes sense. For someone selling it may help cover repair issues and it certainly helps the buyer have a better comfort level with the home. For buyers, who usually spend most of their money on the down payment and the closing costs, it helps them to feel like they have a financial cushion for the first year that they will own the home.

Who pays for the policy? It’s negotiated between the buyer and the seller. I think it depends a lot on how long the house has been on the market without an offer, and also on how close to the asking price the buyer is offering.

I want to encourage you to do your research before you make or receive an offer. Figure out which plan you like and make sure it covers the elements that are of concern to you.

I am not an expert on these policies. I want to encourage you to contact these companies yourself to get exact information. Here is the contact info:

American Home Shield, 866-406-0440, www.ahs.com

First American Home Buyer Protection Corporation, 888-875-0533, www.homewarranty.firstam/Default.aspx

Fidelity National Home Warranty, 800-308-1420, www.homewarranty.com

Do not hesitate to get in touch with Linda, Whitney, or myself, if you have any questions about real estate!
Dianne

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News & Notes

The most recent real estate numbers for Portland and the Lake Oswego/West Linn areas (RMLS lumps them together) are available.

According to the RMLS Market Action Report for the Portland Metro Area, January, 2015:

  • There were 2,762 New Listings in January which was up a whopping 79.4% from December, and up 6.9% from January of 2013.
  • At 1,477, January Closed Sales dropped 34% from the month prior, but were up a full 5.8% from January of 2013.
  • January Pending Sales (accepted offers), at 2,294, were very strong. Up… 37.6%  from December, and up 13.2% from January 2013.
  • Comparing the 12 months ending January 31st of 2015 with the same 12 month period ending January 2014, Average Sales Price is up 7%.    The Average Sale Price in January of $329,400 was down $2,200 from the month prior. 

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The combined areas of Lake Oswego and West Linn  for the month of January 2015 reported:

    • 337 Active Listings
    • 166 New Listings
    • 113 Pending Sales
    • 68 Closed Sales
    • An Average Sale Price for December of $533,500.
    • Average Time on the Market: 84 Days
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Market Activity ~ Feb 2-8, 2015

Here comes the sun!
The market is pretty steady right now, and all reports are that the Buyers are out in force.

Here is your Latest Market Data: Last week in Lake Oswego we saw 18 New properties enter the market, 22 move to Pending status, and 10 “Closed”/Sold!

Following is the breakdown for you according to RMLS:

NEW on Mkt (Feb 2-8, 2015)

Address List Price # Beds # Baths Total SF Prop Type
1260 HALLINAN ST $298,000 3 1.1 1325 DETACHD
5061 FOOTHILLS DR $199,950 2 2 991 CONDO
0 Atherton 950000 – 1187500 4 4 3415 DETACHD
14128 EDENBERRY DR $749,900 4 2.1 3168 DETACHD
14034 TAYLORS CREST LN $869,000 5 3.2 4007 DETACHD
320 CERVANTES CIR $129,900 2 1 832 CONDO
4 TOUCHSTONE $178,500 3 2.1 1351 CONDO
4 TOUCHSTONE $160,000 3 2.1 1351 CONDO
2701 LAKEVIEW BLVD $724,500 3 2.1 2289 DETACHD
2701 LAKEVIEW BLVD $724,500 3 2.1 2264 DETACHD
368 CERVANTES CIR $129,500 2 1 882 CONDO
17749 LEAFY LN $579,900 2 3 3300 DETACHD
910 TERRACE DR $1,200,000 4 2.1 3934 DETACHD
4070 VIRGINIA WAY $747,500 3 2.1 3510 DETACHD
6310 ALYSSA TER $465,000 4 2.1 2452 DETACHD
127 DEL PRADO ST $459,000 4 3 2310 DETACHD
17617 ARBOR LN $390,000 3 2 1745 DETACHD
18975 INDIAN SPRINGS RD $437,900 4 2.1 1910 DETACHD

PENDING SALES (Feb 2-8, 2015)

Address List Price # Beds # Baths Total SF Prop Type CDOM
1539 LAKE FRONT RD $1,200,000 4 3.1 3385 DETACHD 119
15365 TWIN FIR RD $449,000 3 1 1201 DETACHD 198
13286 GOODALL RD $1,750,000 5 5.3 6819 DETACHD 142
49 BRIARWOOD RD $950,000 3 2 2412 DETACHD 67
18414 OLD RIVER LNDG $1,795,000 4 4.2 6498 DETACHD 553
15885 WHITE OAKS DR $625,000 4 2.1 2802 DETACHD 55
1401 GREENTREE CIR $419,000 3 2 1800 DETACHD 165
834 6TH ST $459,000 2 1 1062 DETACHD 94
1653 DEVON LN $485,000 4 3 3181 DETACHD 153
18224 BELLA TERRA DR $1,175,000 4 3.1 4050 DETACHD 210
1033 Spruce ST $499,500 2 2.1 1562 DETACHD 28
4504 WILDWOOD ST $399,900 3 2 1655 DETACHD 0
43 CONDOLEA CT $365,000 2 2.1 2157 CONDO 12
808 ELLIS AVE $514,900 3 2.1 2108 DETACHD 28
13024 ROGERS RD $769,000 4 3.1 3333 DETACHD 0
1015 SOUTHSHORE BLVD $629,000 4 3 3882 DETACHD 3
5487 TUALATA CT $339,455 3 2 1200 DETACHD 1
751 BRIERCLIFF LN $528,950 4 3 2534 DETACHD 32
17171 LOWENBERG TER $739,000 4 2.1 3002 DETACHD 118
121 LEONARD ST #C $185,000 2 2 1118 CONDO 131
2286 WEMBLEY PARK RD $699,000 3 3 2000 DETACHD 65
4104 LAKEVIEW BLVD $429,000 4 2 2252 DETACHD 66

SOLD  (Feb 2-8, 2015)

Address Open Price Close Price # Beds # Baths Total SF Prop Type CDOM
47 EAGLE CREST DR #40 $89,500 $85,000 1 1 696 CONDO 51
4077 JEFFERSON PKWY $234,500 $234,500 2 2.1 1462 CONDO 24
6101 HARRINGTON AVE $359,000 $361,500 3 2.1 1400 DETACHD 62
2751 SUMMIT DR $648,950 $655,000 3 2 2418 DETACHD 145
19211 TERRY AVE $370,000 $370,000 4 2 1872 DETACHD 41
4080 COLTSFOOT LN $525,000 $525,000 4 2.1 2884 DETACHD 0
18177 DELENKA LN $830,000 $787,500 5 2.2 3802 DETACHD 131
1075 OAK TER $340,000 $350,000 3 2 1356 DETACHD 29
616 4TH ST $1,049,000 $1,049,000 4 2.1 3034 DETACHD 0
3554 TEMPEST DR $449,007 $454,000 3 2.1 2279 DETACHD 4

Criteria: Homes in the 97034 and 97035 zip code, listed, pending or sold between the dates listed above as reported by the Regional Multiple Listing Service (RMLS). DETACHD refers to Single Family Detached Residence, MFG refers to manufactured housing, and ATTACHD refers to single-family residences with some portion of the structure attached to another property, but not constituting CONDO ownership. DOM stands for days on market, or the number of days from when the listing became active and when it received an acceptable offer, with CDOM standing for “cumulative days on market” accounting for “refreshed” listings.

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Market Activity ~ Dec 15-21, 2014

Yes, real estate is happening  : )

Here is your Latest Market Data: Last week in Lake Oswego we saw 5 New properties enter the market, 9 move to Pending status, and 13 “Closed”/Sold!

Following is the breakdown for you according to RMLS:

NEW on Mkt (Dec 15-21, 2014)

Address List Price # Beds # Baths Total SF Prop Type
490 BOCA RATAN DR $519,000 3 2 2023 DETACHD
6459 FROST ST $529,000 4 2.1 2627 DETACHD
3433 MCNARY PKWY #203 $150,000 2 1.1 1008 CONDO
3009 WEMBLEY PARK RD $598,500 4 2.1 1704 DETACHD
Highlands LOOP $2,195,000 4 4.1 5579 DETACHD

PENDING SALES (Dec 15-21, 2014)

Address List Price # Beds # Baths Total SF Prop Type CDOM
3986 CARMAN DR $204,900 2 2.1 1107 CONDO 58
3100 WESTVIEW CT $929,000 4 3.1 3750 DETACHD 17
18375 RIVER EDGE LN $897,950 4 2.1 3400 DETACHD 27
17138 CEDAR RD $1,495,000 3 3.1 3017 DETACHD 89
2131 WEMBLEY PARK RD $539,000 4 2.1 3228 DETACHD 188
12810 ALTO PARK RD $964,000 5 3.1 3834 DETACHD 97
820 FAIRWAY RD $1,189,000 4 3.1 3758 DETACHD 331
555 COUNTRY CLUB RD $625,000 3 3 2133 DETACHD 159
169 OSWEGO SMT #169 $100,280 2 2 1330 CONDO 63

SOLD  (Dec 15-21, 2014)

Address Opening Price Closed Price # Beds # Baths Total SF Prop Type CDOM
17547 CHERRY CT $1,225,000 $978,850 4 3.1 3737 DETACHD 337
19354 LORNA LN $950,000 $1,049,888 5 3.1 4169 DETACHD 403
16987 ALDER CIR $395,950 $400,000 3 2 1713 DETACHD 4
16990 LOWER MEADOWS DR $369,900 $374,900 3 2.1 2000 DETACHD 2
37 CHURCHILL DOWNS $470,000 $475,000 3 2.1 2372 DETACHD 4
4724 FIRWOOD RD $329,000 $325,000 3 1.1 1240 DETACHD 5
21 SUMMIT RIDGE CT $339,000 $332,000 2 2.1 1654 ATTACHD 16
200 BURNHAM RD #211 $385,000 $317,000 3 2 1862 CONDO 85
2341 STONEHURST CT $659,000 $659,000 4 2.1 3389 DETACHD 2
1531 BOCA RATAN DR $289,000 $277,000 3 2 1755 ATTACHD 57
804 2ND ST $505,000 $400,000 4 3 2224 ATTACHD 50
17619 Potters RD $575,000 $575,000 4 2.1 2665 DETACHD 9
2612 RIVENDELL RD $799,000 $730,000 4 3 3168 DETACHD 93

Criteria: Homes in the 97034 and 97035 zip code, listed, pending or sold between the dates listed above as reported by the Regional Multiple Listing Service (RMLS). DETACHD refers to Single Family Detached Residence, MFG refers to manufactured housing, and ATTACHD refers to single-family residences with some portion of the structure attached to another property, but not constituting CONDO ownership. DOM stands for days on market, or the number of days from when the listing became active and when it received an acceptable offer, with CDOM standing for “cumulative days on market” accounting for “refreshed” listings.

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Market Activity ~ Nov 24-30, 2014

snowflake_lgGreetings, Property Blotter readers!  OK, I  will go out on a limb and say that things are slowing down a bit.  I call this the Holiday Black Hole : )  I do business this time of year every year because people either Buy or Sell for so many reasons… most not having to do with the weather… and time of year often plays into the desire to accomplish something (by moving) at or around the time of the turn of the year.  Anyway, I decided that for myself a long time ago, and so it is ; ) But most people take their minds off real estate at this time of year and put them on family, friends, and the things that really matter in Life…  some of us just have “dual duty” in helping to make changes that house the family and friends that we Love, while decorating and toasting with Loved ones all at once!  …and that’s plenty of fun too.

Here is your Latest Market Data: Last week in Lake Oswego we saw 9 New properties enter the market, 10 move to Pending status, and 8 “Closed”/Sold.

Following is the breakdown for you according to RMLS:

NEW on Mkt (Nov 24-30, 2014)

Address List Price # Beds # Baths Total SF Prop Type
5275 OAKRIDGE RD $349,900 3 1 1267 DETACHD
5590 KILCHURN AVE $624,900 4 2.1 2472 DETACHD
13070 BOONES FERRY RD $549,000 3 1 1864 DETACHD
910 FAIRWAY RD $1,098,000 4 3.1 3384 DETACHD
34 DEL PRADO ST $569,950 4 3 3120 DETACHD
1075 OAK TER $355,000 3 2 1356 DETACHD
66 GALEN ST (Upper) $109,500 1 1 689 CONDO
2234 FERNWOOD CIR $545,000 4 3 2975 DETACHD
2109 WEMBLEY PARK RD $819,000 5 3 3154 DETACHD

PENDING SALES (Nov 24-30, 2014)

Address List Price # Beds # Baths Total SF Prop Type CDOM
18951 INDIAN SPRINGS CIR $449,900 5 3 2865 DETACHD 3
1744 FERN PL $599,000 4 2.1 2110 DETACHD 10
59 GALEN ST (Lower) $94,900 1 1 550 CONDO 22
831 4TH ST $525,000 3 1.1 2240 DETACHD 20
100 KERR PKWY #11 $95,000 1 1 617 CONDO 282
19211 TERRY AVE $370,000 4 2 1872 DETACHD 9
5048 TREE ST $310,000 3 1.1 1232 DETACHD 7
12819 ALTO PARK RD $1,038,500 4 4.1 3944 DETACHD 8
1045 BULLOCK ST $568,000 3 2.1 2105 DETACHD 11
5726 CHARLES CIR $696,500 4 3.1 3173 DETACHD 104

SOLD  (Nov 24-30, 2014)

Address O/Price Close Price # Beds # Baths Total SF Prop Type CDOM
3061 DORIS CT $449,000.0 $420,000.0 5 2 2684 DETACHD 68
87 OSWEGO SMT (Lower) $119,000.0 $79,000.0 2 1.1 1116 CONDO 125
16342 IVY LN $699,900.0 $645,000.0 5 3.1 4645 DETACHD 57
137 KINGSGATE RD $446,000.0 $449,000.0 3 2.1 2372 DETACHD 2
13327 ATWATER LN $895,000.0 $840,000.0 3 2 3004 DETACHD 220
6243 SW DAWN ST $314,000.0 $302,500.0 3 1.1 1254 DETACHD 89
4 TOUCHSTONE #110 $149,000.0 $145,000.0 2 2 989 CONDO 85
18936 BRYANT RD $749,900.0 $670,000.0 4 4 4100 DETACHD 189

Criteria: Homes in the 97034 and 97035 zip code, listed, pending or sold between the dates listed above as reported by the Regional Multiple Listing Service (RMLS). DETACHD refers to Single Family Detached Residence, MFG refers to manufactured housing, and ATTACHD refers to single-family residences with some portion of the structure attached to another property, but not constituting CONDO ownership. DOM stands for days on market, or the number of days from when the listing became active and when it received an acceptable offer, with CDOM standing for “cumulative days on market” accounting for “refreshed” listings.

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2015 Economic Forecast

royalty-free-finance-clipart-illustration-77965While 2014 may be winding down, 2015 is just around the corner. I tend to think of this time of year as a time to regroup. Business is slower. It gives me a chance to catch my breath, but also to gear up. January 1, I want to hit the ground running. With that in mind, I try to take advantage of First American Title’s annual economic forecast. This event happened this morning and I thought I share some of what I learned.

The expert who gives this presentation is John Mitchell, Chief Economist for M&H Economic Consultants. He does a great job of taking a dry subject that is filled with numbers and charts, and making it entertaining and engaging. I am going to share with you a few highlights.

For the most part the outlook is good. While economic growth has been slow, it has also been steady. For the past few years there have been fits and starts with the economy. Mr. Mitchell likened it to Bill Murray and Groundhog Day. We’ve seen it before and we will see it again. The economy is chugging along. It’s not explosive, but it is more steady than not.

Some positive news:
Consumers who have delayed major life decisions (getting married, having a child, buying a bigger house) are gaining confidence and starting to make those big moves. This is a stimulus for the housing market.

The US Economy is the envy of the world. Financial and personal security are threatened in many parts of the world (Asia and Europe continue to lag in economic recovery, then there are the world events in Russia and the Middle East). This has countries and individuals looking to put their assets where they feel they will be secure, and that place is the United States. Mr. Mitchell gave credit to this influx of foreign money for the unexpectedly low interest rates of 2014.

dire6n7rTThe housing market is rebounding with both existing family home and new construction selling at greater rates than they have in years.

Oregon was #6 in the Nation for job growth in 2014.

Nationally, mortgage delinquencies are the lowest they have been since 2000.

Some concerns:
We are entering a whole new world that has no historic precedent. The stimulus package is pretty much over. The Federal Reserve is no longer buying mortgage backed securities. The economy is going to have to hold up the anticipated growth on its own. Having said that, the Fed is prepared to jump back in and re-engage if needed. This shows how fragile this recovery is. There is a lot of uncertainty.

The world situation has a lot of areas of concern. Ebola and ISIS were not on our radar a year ago. A major event can derail our economy. These events are not just difficult to hear about because of their horror, they also have an impact on our economy through things like consumer confidence and political turmoil.

Slowly gathering strength
On the whole, our economy is slowly gathering strength. As the job market grows and people feel more financially stable, they start to make decisions to improve their lives. Buying a new home is a big part of that picture.

Mr. Mitchell did advise that interest rates are likely to go up in 2015, but it will be fact driven. If the economy is not rebounding, they will stay low. If the economic rebound gets stronger, they will go up. Odd to think that rising interest rates are triggered by good news, but they are.

My personal thought on all of this is that our government and the Fed need our housing market to continue to rebound. It is vital to our National economic health. I have confidence that the housing market will stay on track with slow and steady growth.

As always, thanks for reading The Blotter,
Dianne

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News & Notes

Here is the latest data for you on the overall Portland area, as well as specific Lake Oswego/West Linn (RMLS lumps them together) numbers:

The latest real estate numbers in Portland and the Lake Oswego/West Linn areas are in. Things have taken an uptick in October for the Portland area. This was the strongest October for Closed Sales since 2006!

According to the RMLS Market Action Report for the Portland Metro Area  October, 2014:

  • At 2,487, October Closed Sales rose 4.6% over the month prior, September, and were up a full 13.6% from October of 2013’s 2,189 .
  • There were 2,881 New Listings in October which was 7.1% down from September, but rose 13.6% from October 2013.
  • The Average Sale Price in October of $335,600 was down $2,500 from the month prior. The first ten months of 2014 are logging an Average Sale Price of $333,200, which is up 7.4% over the same time period in 2013.
  • October Pending Sales (accepted offers), at 2,480, were down 2.8%  from the month prior.  That said, the Pending sales for October are up a full 16.7% over October 2013.

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In Lake Oswego and West Lin steady activity is Good with Closed Sales down by 10 and/but Pending Sales up by 6. Average Sale Price was up $11,200 from September. (There is a very wide range of prices in Lake Oswego among a relatively smaller number of homes for sale as compared to the larger Portland area, so this is not unusual.)

The combined areas of Lake Oswego and West Linn  for October reported:

    • 475 Active Listings  (Sept was 501)
    • 166 New Listings  (Sept was 177)
    • 136 Pending Sales  (Sept was 130)
    • 130 Closed Sales  (Sept was 140)
    • An Average Sale Price of $547,800.  (Sept was $536,600)
    • Average Time on the Market: 81 Days  (Sept was 100)
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News & Notes

Here is the latest data for you on the overall Portland area, as well as specific Lake Oswego/West Linn (RMLS lumps them together) numbers:

The latest real estate numbers in Portland and the Lake Oswego/West Linn areas for September are in. Overall numbers are down from August and up from last year

According to the RMLS Market Action Report for the Portland Metro Area  September, 2014:

  • At 2,378, September Closed Sales dropped 8% from the month prior (August), and/but were up a full 10.2% from September of 2013’s 2,158 .
  • There were 3,102 New Listings in September which was 6.1% higher than September 2013, but down 13.4% from the month prior.
  • The Average Sale Price in September of $338,100 was down $1,900 from the month prior. The first nine months of 2014 are logging an Average Sale Price of $333,000, which is up 7.4% over the same time period in 2013.
  • September Pending Sales (accepted offers), at 2,551, were down 5.7%  from the month prior.  That said, the Pending sales for September are up a full 15% over September 2013. ***This was the strongest September for Pending sales since 2006 when there were 2,599!

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In Lake Oswego and West Lin steady activity with all numbers down slightly from August, and/but the Average Sale Price rising by $16,400… and interestingly, Average Time on the Market going from 57 to 100 days (that’s quite a jump!)

The combined areas of Lake Oswego and West Linn  for August reported:

    • 501 Active Listings  (August was 531)
    • 177 New Listings  (August was 185)
    • 130 Pending Sales  (August was 148)
    • 140 Closed Sales  (August was 134)
    • An Average Sale Price of $536,600.  (August was $520,200)
    • Average Time on the Market: 100 Days  (August was 57)