Category: Buying Advice

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

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News & Notes ~ All About Loans ~ (well.. maybe not ALL : )

  • How Long Will It Take to Close? This is an important question and factor in structuring your Offer and making plans around the Purchase of a new residence.  You are lining up dominoes, and you want to know!  Well,  if you are selling your home to purchase the new one, then you are timing your own Sale’s closing date with the move-in/close of your Purchase.  It used to be fairly standard to achieve a closing in around 30 days.  What you need to know is that when you write this into the Offer, it becomes a “Time Is Of The Essence” feature of your contract (An accepted Offer is a contract… and that’s a legal term for: “You must meet this date.”).  That means you need to be pretty sure you are going to be able to meet that time line, as it is contractual.The lender requires time to gather information, order & analyze your appraisal, successfully navigate underwriting, and draw up your documents.                                                                                                                                                                                                                        Are closing dates often extended? Yes. Does the Seller have to agree to extend you additional time beyond the “on or before” closing date set in your Offer? No. Now, most parties want the transaction to go forward, and so often agreement to do this is reached, but it is very important for you to know that your Earnest Money is in play…  and should, let’s say, the Seller have another Buyer who has approached them during your transaction and, perhaps said “Hey, it’s too bad you sold your house to those Buyers because I really want it and I’d give you more money for it!”  Hmmm… Would there be incentive for the Seller to perhaps be awarded your Earnest Money because you failed to “perform” per the stipulations of the contract?  I’ll leave that for you to answer.  Just remember- With the new RESPA guidelines that lenders must follow, there is potentially more time that needs to be built into the process, so instead of 30 days, it is prudent to allow around 45 days.
  • Rates: They are under 5% now for a 30-year fixed.  We all know prices are down… Good combination eh?         – More Detail: “Recent Employment data which fell short of Wall Street forecasts and uncertainty about the pace of the economic recovery caused investors to shift to relatively safer assets, including government insured mortgage-backed securities.  This plus economic data indicating extremely low inflation resulted in declining mortgage rates over the last few weeks.”  (Thanks to Pat Goodell from Academy Mortgage for this update.)

  • USDA Loans: Though these are back in the running now with funds having been declared available for Rural Home Loans,  most investors haven’t given the “go ahead” to lenders to begin issuing commitments and closing those loans yet.  We are told the details should be worked out shortly though, so get ready for this 100% financing option to re-enter the scene!
  • Do you know how many people are involved in a real estate transaction (minimum)? The answer is 13+ .  Here’s the Breakdown (thanks to Naida Paris of Valley Mortgage for this!):   Listing Agent, Selling Agent, Seller (s), Buyer (s), Loan Officer, Loan Processor, Underwriter, Document Drawer/Funder, Escrow Officer, Title Officer, Inspector (s), Insurance Agent, and Appraiser.
  • FHA is going to be dropping the amount a Seller can pay toward a Buyer’s closing costs, but the outlook for that to take effect is 2011.  So, for now you can still take advantage of the current rule which is that a Seller can contribute 6% toward a Buyer’s closing costs.  You’ll want to talk w/your Realtor & Lender about how much the closing costs will come to prior to writing this into the offer, however.
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Take good care of your credit

I suppose it is somewhat of a no-brainer that as a consumer you need to take good care of your credit, but if you are considering buying real estate, it is more important than ever. The days that qualified you to buy a home by merely having a pulse are long gone. Credit is more important than ever.

What is a FICO Score?
The FICO score was developed by The Fair Isaac Corporation in 1958. It is a statistical analysis of the likelihood of default. It has long been considered the most fair means of analyzing credit because it is purely about statistics with no consideration given for any personal matters such as sex, race, religion, etc. Mortgage lenders reliance on FICO Scores has gained in prominence and only looks to increase.

A FICO Score can be anywhere from 300-850. It is made up of the following considerations:
35% is payment history: do you pay your bills on time?
30% is ratio of available credit used: do you max out your credit cards?
15% is length of credit history.
10% is types of credit (having a variety of credit is good)
10% is recent credit inquiries

So it is more than simply paying your bills on time. If you want an 850 credit score, you certainly need to pay your bills on time, but you also need a variety of credit, not too much of it, that has low balances, that you have managed for years, and that you have not recently applied for. I have heard it said that the magic number of credit cards is 4, most with little or no balances. You do need to be using the credit. If you have 4 credit cards that you never use, it is not going to help you.

By law you are entitled to a free annual credit report. You can obtain one from each of the 3 credit bureaus by visiting AnnualCreditReport.com Because there are 3 credit bureaus, each with their own means of analysis, you will want to obtain copies of all 3 reports. If you see something strange on the report, you will also find links to managing your credit and fixing your credit.

Why FICO matters when you buy a house.
First, having a high credit score will allow you to obtain a lower interest rate on your mortgage. On a 30-year fixed mortgage of $300,000, a person with a FICO score of 760-850 will be able to obtain an interest rate of about 4.567% and that will make the payment $1532 per month. With a credit score of 620-639, that same 30-year mortgage would have an interest rate of 6.156% and a monthly payment of $1829 per month. That is a difference of $300! Yes, you will be rewarded for being financially strong.

Second, your credit is going to be checked more then once when you buy a house. According to a recent article by Kenneth Harney of the Washington Post, on June 1st,Fannie Mae will be requiring a second credit report be pulled just prior to close of escrow. This is to find out if anything has changed with the buyer’s credit since the loan was approved. If it has changed, then, poof, you could be kicked right out of closing and not be able to buy the house you want. This means that once you find a home and get your offer accepted, do not do anything to change your credit. Even making an inquiry for new credit could create disaster. Suppose you go to a furniture store and apply for a line of credit because you are dreaming of furnishing your new home? You don’t even have to make a purchase. Just having the extra credit available could affect your credit. While in escrow, make all payments on time, but make no credit applications, no purchases on credit, and no changes, no matter how small, to your credit situation. This is much more strict than I have ever seen. It is real. I had a closing postponed for 3 weeks while the buyer made a $500 payment on his credit card and we waited for the payment to be reflected in his FICO score with the 3 credit bureaus. I am also aware of 1 late payment on a credit card while in escrow that completely kicked the loan out of underwriting and the transaction sale failed.

Please let me know if you have any questions on this issue or if you need any help. I work with a couple of excellent lenders who are happy to take the time to help you build and repair your credit so that you can qualify for the house of your dreams.

Dianne

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News & Notes

Real Estate News ~

Have a wood stove?  Planning to buy or sell a home with one? Note that beginning August 1st, 2010, in an effort to control emissions from smoke, when selling a home you will be required to remove the wood stove if it is “uncertified” by the DEQ.  Here is a link for more information: Woodstoves in Oregon

Greece and Mortgage Rates – MBS Quoteline reports: ” Despite stronger than expected economic data, the financial situation in Greece held the greatest influence on mortgage rates this week. A flight to quality and prospects of slower economic growth in Europe were favorable for mortgage markets and negative for the stock market, and mortgage rates ended the week lower.”

Current Mortgage Rates and Mortgage Insurance Updates – According to Pat Goodell of Academy Mortgage:

  • “Some of the Mortgage Insurance companies have gone to tiered pricing based on credit scores which is good news to those with good credit scores.  Mortgage insurance companies also will now allow “up front mortgage insurance” (in lieu of monthly mortgage insurance) to be paid by the seller.  The potential advantage of this is that the seller can pay the up front mortgage insurance as part of any allowable closing costs that a buyer might negotiate for a seller to pay.  Then the buyer has no mortgage insurance premium to pay as part of their mortgage – this may or may not be an advantage to the buyer depending on their situation; but it does help for qualifying by reducing their monthly mortgage payment.  There are qualifying parameters for this option and the lender also has to approve this option as well.”
  • “Interest rates are holding steady now with the 30-yr fixed still hovering around 5% — 30-yr fixed today is actually available at 4.875% with 0 pts, depending on the buyer’s qualifications.”

    • Community Notes ~

    Farmers Market opens this Saturday, May 15th in Lake Oswego. (yay!)  This is the 10th Anniversary Celebration.  You can find the food  & fun at Millennium Plaza Park from 8:30AM – 1:30PM on Saturdays through October 9th.   Local musical group, Southern Nights, will perform from 10:30AM till 12:30PM at the kickoff, and the Bike Gallery will be there to check your kids’ helmets!

    May is Sustainability Action Month. Take advantage of these local events:

    • Free screening of the film Deep Green with local film-maker Matt Briggs. This is an insightful look at “uncovering the best people with the best solutions for “de-carbonizing energy and restoring the natural world.” It will be held Saturday evening, May 15th at 7:30Pm at the Lake Grove Presbyterian Church, 4040 Sunset Drive.  Bring your family and friends!
    • Get a good look at Lake Oswego’s Century Trees on the Century Tree Bike Ride, May 22nd.  The bike ride is hosted by the Planning Dept.’s Green Team, and more information can be had by contacting Laura Weigel at Lweigel@ci.oswego.or.us .

    Lake Oswego’s city council created the Sustainability Action Board (SAB) in 2008. For more information on sustainability, visit: The Sustainability Resource Page

    To Move or Not To Move / Lifestyle Options for Older Adults , an educational program for seniors and their families is designed to give information on housing options and resources in Lake Oswego.  You are invited to attend on May 16th, from 2:00PM to 5:00Pm at the Lake Oswego Adult Community Center, 505 G Avenue.

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    Double-bottom-line Thinking

    I have had an idea swirling around in my head for a few weeks now. It comes from my personal experience with clients as they interact with the current economy and the housing market. This idea really jelled in my thinking when I read Ted Leonsis’ article in the April 12th issue of Newsweek.

    My observation with clients, both buyers and sellers, is that there is a tremendous amount of attention and focus put onto the dollars involved in buying and selling. This is nothing new. Real estate is, for most people, the largest financial investment they will make in their entire lifetime. So what is different is that the weight being put onto the investment is in many cases causing people to forget that real estate is also about a home. Yes, I am addressing this to houses that people live in and not to rentals or portfolio properties. What I am seeing is that people are so driven to get the right deal, that they are passing up properties that are far superior in amenities.

    Ted Leonsis is a former vice chairman of AOL and the author of a book, The Business of Happiness. His theory is that a company who wants financial success needs to not only think in terms of making money, but also in terms of doing what is often difficult but what is ultimately the right thing to do. This in turn keeps the company on a path of happiness that will ultimately also bring greater financial success. In other words, there is a link between pursuing happiness and also finding financial success. His case in point is the recent move by Google to route Web users from China to an unrestricted search page based out of Hong Kong. While this move may, in the short term, stifle the financial growth of Google in the biggest Internet market in the world, Leonsis believes that in the long term it will have greater financial success by placing its core values to do the right thing for humanity ahead of it’s short-term interest in its bottom line.

    “Google aims to make money, of course, but it also has a motto (“Don’t be evil”) and a higher calling: to organize the world’s information and make it universally accessible. By refusing to participate in Chinese censorship, the company imperiled billions of dollars in future profit. More important, it protected its status as a happy company at peace with its values—and happy companies are more, not less, likely to continue being successful.”

    Ted Leonsis goes on to call this way of looking at business double-bottom-line thinking. In other words, success should be measured by the financial growth of the investment, but also by the positive out come for the happiness of human beings.

    It is probably my liberal arts education coming out here, but I find this to be really important. As a Realtor, when I represent buyers my job it to get them the best possible deal. When I represent sellers, by job is to get them the highest possible sales price. I never loose focus on that. But it is hard when I have a buyer who is saying to me “show me foreclosures and short sales because I’ve heard that they are the best deal”. Or when a seller passes up a lower offer that is all cash for a higher offer with a buyer who is only putting down 5%. Focusing strictly on money may cause you to pass up the house that was lovingly cared for and is priced $10,000 higher than the beaten up foreclosure down the street. And in this lending environment, cash buyers are a real blessing.

    I guess I think that there is value that needs to be also given to things like timing (short sales take months to close, if they happen at all), good will (they buyer will take the house with the big pile of yard debris in the yard because it doesn’t bother them to have to clean it up), and livability (the big kitchen is ideally designed with loads of cabinets and counter space). For some reason this economy and this real estate market has got both buyers and sellers fixated on money, money, money. And that has them acting blindly to happiness. I thinking buying the right house, where you will live and grow, is just as important as buying the right deal.

    The perfect sale does both: the house will be bought or sold at the right deal and it will also be more than a house, it will be a home. That is double-bottom-line thinking and that is a good way to approach both a property purchase and a property sale.

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    News & Notes

    State of the Market:

    • Have We Hit Bottom? The experts agree that generally speaking, the country has “hit bottom”, with various areas lagging behind a bit.   CNN.Money.com predicts that the Portland area will hit bottom in Q3 of this year. Our latest RMLS Market Action Report for the Portland area indicates that Portland metro area closed sales increased 18.4% when comparing 2009 vs 2010. Pending sales rose 45% and new listings rose 12.4%. The average sales price declined 8.5%.

    (Money Magazine) — The drama is nearly over. After a decade of extremes — the ebullient highs of the real estate boom, then the devastating lows of the bust — calmer forces are beginning to prevail in the housing market.

    • Local Lake Oswego Data The RMLS Market Action Report lumps West Linn and Lake Oswego together, but here is some interesting data:
      * In February 2010 the average sales price was $457,700.
      * The average time on the market was 153 days.
      * Pending Sales rose 52.7% in Feb 2010 as compared to Feb 2009.
      * The average sales price has declined 9.7% in a rolling 12-month equation (i.e. 3/1/08 – 2/28/09 compared with 3/1/09 – 2/28/10)
    • Rates are Rising I have clients asking  “Is this the right time to buy or should we wait?”  One thing we know is that rates are rising. Right now they are still in the 5% range…  actually they are up a bit today at 5.125% but overall they’ve been fluctuating between 4.875% and 5.125% for 30-yr fixed.  As for more foreclosures to come, and prices lowering… interest rates are rising, some say 7% is possible NY Times… so if you ARE planning to finance, all the experts agree that this is the time to be buying, because even if prices go lower, the fact that the interest rates go up effectively nullifies your benefits.
    • Portland Area Rating Improves “Mortgage insurance companies have upgraded Portland’s property value housing trends, meaning that they predict values to be stabilizing in the Portland market.”  Pat Goodell, Academy Mortgage
    • Tax Credits For first-time home-buyers and “moving-up” buyers, there is still time to find a property you love & get a mutually-agreed deal in place before April 30th. So….  hang in there if you are still looking for that “right” one.  Work with your Realtor to narrow the field, or give Dianne or me a call if you are not working with a Realtor.  (I love working with Buyers…. it is actually the reason I originally got into real estate.)
    • USDA Loans USDA anticipates running out of funds to lend by end-April 2010.  If you are thinking about rural properties and considering a USDA loan, now would be the time to ink an offer.
    • FHA Mortgage Insurance Premiums Rising FHA’s upfront (financed) mortgage insurance premium increased to 2.25% effective April 5. And/but, if you are anticipating taking advantage of an FHA loan, don’t fret too much. You WILL now have the higher premium, however,  it’s not anything that should get you in a tizzy, as it will make very little difference in your mortgage payment.  For example, on a $300,000 loan amount, your payment will only increase by approximately $8./month adding in that higher mortgage insurance premium.  (This according to Pat Goodell of Academy Mortgage  503 380 0953.)
    • “The Deal” One thing I am noticing is that many people are becoming so enamored with “the deal” these days, that some are missing the point of why they decided to purchase to begin with, so I am simultaneously always trying to meet my clients needs & desires in a *property* (i.e. what they are trying to accomplish for themselves in their lives w/the purchase… what they truly like), while at the same time being cognizant of the “deal factor” for them.  Keep in mind these things regarding “deals”…  there are basically three kinds:
    1. People who are pricing their homes to sell. They have their own circumstances (down-sizing/relocation/up-sizing/on & on & on), and they are wanting to move on in some fashion.  There are plenty of these out there these days, especially as home owners look around and face the fact that they are now competing with so many homes in or approaching foreclosure.  There are some very real advantages to buying your home from these folks.  Some include: Often these homes are in tip-top shape / You are dealing directly with the owner of the home and as long as the agreed-upon sales price does not dip below what they owe on the property, you are in “Pending” status when you reach mutual acceptance, and /You are negotiating only with the Seller.  / You proceed through a normal closing process if you are taking out a loan, and notwithstanding any negotiations or hoops you need to jump through for the underwriter, you will most likely close in 30-45 days.
    2. Short Sales. These homes’ owners owe more to the bank than what the property is worth in today’s market. The bank is agreeing to take less than what is owed from the Seller.  There are many, many banks in existence and each has its own methods and processes, so there is no uniformity of what to expect, with a few exceptions that I will get into in a moment.  There may be more than one bank involved if there is a second mortgage or more. There are a few things that you can expect, and they are:   * Even if the Seller accepts your offer, the bank is the one (or ones) to give final approval considering that what they will receive is less than what was contracted with the Seller.   ***The bank (s) will usually have paperwork that you must sign if you want to be in the running that will change how the property proceeds through the sale process including: Notifying you that they will only accept an earnest money check & no promissory notes/ They will keep your money and wait to see how many other offers they receive / They will not give you a time line on when they will respond to your offer / You are usually on your own with regard to any repairs / It is usually several months before you find out if your offer was the one accepted & get to proceed to close / During this process the property very often stays in “Active” position on RMLS / Very often the paperwork you must sign includes a provision wherein the bank retains the right to accept another offer right up to closing.   ***For these reasons,  I counsel clients that they must REALLY be in love with a property to proceed through this process.  Also, depending on the property, you may be entering territory wherein you know that you will be competing with other offers, so the best advice, if this is the case, is to make this your best offer… especially if you plan to sit out the long process and want to have a happy ending.  Don’t try to “wing it”… these are complicated times & even the professionals involved are still feeling out the landscape.  There are all kinds of people calling themselves “experts”.  Make sure you know what you are doing and ask for licenses if you think people on the periphery are operating outside of their scope of expertise. Talk to your Realtor as to what your options are, and rely on that trusted professional relationship for guidance.
    3. Bank-owned properties. These homes have usually been through the short sale phase unsuccessfully.  The property has either been on the market & not sold, or the owners opted not to try a short sale and have simply stayed in the property until they had to move on as the bank proceeded through their legal remedies to regain the property due to non-payment.   These properties are sometimes in sad condition due to hardship (i.e. deferred maintenance), but many times these days, they are in very good condition… a sign of the times & the large numbers of otherwise responsible homeowners who simply found themselves in an untenable position through job loss or other factors. The thing to remember about these properties is that the price is ALWAYS lower than either short-sales or standard “good deals”. The bank wants to move on and prices the home low.  The bank is now the Seller and usually acts just like a normal Seller, i.e. Negotiating (tho usually not for repairs)/ accepting or rejecting an offer/Moving on to close with the property going to “Pending” status once it’s mutually agreed-upon/Proceeding through a normal closing process for the Buyer. For this reason: Investors and others are waiting in the wings to pounce on these very often with cash offers, so you have to be quick, and you want to be very careful about low offers, though this can sometimes still be a viable option. Talk to your Realtor about options as they will vary from property to property.

    Hope this info is helpful!

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    Buying a house on the Lake

    Oswego Lake has always had a certain appeal. It is in the middle of the town and is certainly a focus of the community. Years ago the waterfront homes were little vacation cottages that people came from Portland to enjoy on the weekends and on summer break. As rail lines and freeways made the drive quick and easy, the little cottages have gradually been replaced with modern homes and some pretty incredible mansions. Even if you will never aspire to living on the Lake, the real estate on the waterfront is certainly intriguing. And if you do want to live on the Lake, you need to know a little bit about the various values that the waterfront solicits.

    There are 4 distinct categories of values for the waterfront. I am going to explore each one and give you a list of the current inventory.

    Condominiums
    Up until 10 years ago, there just weren’t many condos on the lake. There is a really charming 1940’s 4-plex on Northshore, but that was about it. Then in about 2000 the Lakewood Bay Condomiums and Lofts were built. And in 2008 a couple of apartment complexes were converted to condominiums at the Eastern end of the Lake. Of the various developments, there are two condo complexes that have docks and lawn areas right on the water’s edge. Some units have boat slips. And for anyone with disabilities or trying to avoid stairs, the Lakewood Bay Condos have elevator access. Here is the current inventory of condominiums for sale:

    Address List Price # BR # BTHS Total SF Prop Type List Date
    244 RIDGEWAY RD $214,500 2 1 753 CONDO 11/14/2009
    668 MCVEY AVE $216,000 2 1 852 CONDO 1/28/2010
    668 MCVEY AVE 209000 – 229000 3 1.1 985 CONDO 3/9/2010
    668 MCVEY AVE $239,998 3 1.1 992 CONDO 11/24/2009
    668 MCVEY AVE $395,000 3 1.1 985 CONDO 7/24/2009
    119 3RD ST $399,900 3 2 1,204 CONDO 10/11/2009

    Houses on the Canals

    The canals are less expensive then the other areas of the lake.  Of course this will have a range of value with newer homes generally selling for more than older homes.  I think that location on the canals also affects the value.  Kelok Canal is a flowing body of water where the Lake is filled from the Tualatin River.  So the quality of the water is going to be better and more enjoyable to use than the more shallow and more stagnant water on the other canals.  Also, there is one canal that is so wide that it is often considered a bay, Blue Heron Bay/Canal.  There is a direct relationship between water quality and property values, in my opinion.  Here is what is currently for sale on the canals:

    Address List Price # BR # BRHS Total SF Prop Type List Date
    3300 SOUTHSHORE BLVD $549,850 2 2.2 1,162 DETACHD 1/1/2010
    17471 CARDINAL DR $575,900 4 2.1 3,056 DETACHD 2/11/2010
    17455 BLUE HERON RD $750,000 3 2 2,572 DETACHD 12/8/2009
    17344 CEDAR RD $1,099,000 4 2.1 2,831 DETACHD 3/1/2010
    3220 SOUTHSHORE BLVD $1,099,000 3 3 3,629 DETACHD 2/5/2010
    17460 WREN CT $1,295,000 3 3.1 3,300 DETACHD 11/6/2009
    17282 LAKE HAVEN DR $1,299,000 4 2.1 3,662 DETACHD 2/2/2010
    17281 KELOK RD $1,395,000 4 3 2,682 DETACHD 1/21/2010

    West Bay and Lakewood Bay
    At each end of the lake is a bay. The bays are rather wide with enough room for boating and water skiing. Not as big as the lake, they still have better water quality than most of the canals. Lakewood Bay has the advantage of being next to Millinium Plaza Park for easy access to the Farmer’s Market. It also shares the water with restaurants with dock-side dining. Here is the current inventory of homes for sale on both of the bays:

    Address List Price # BR # BTHS Total SF Prop Type List Date
    106 3RD ST $699,900 2 2 1,495 DETACHD 7/16/2009
    548 RIDGEWAY RD $999,500 4 3 2,830 DETACHD 10/19/2009
    811 NORTHSHORE RD $1,299,900 4 4 4,945 DETACHD 4/8/2008
    102 3RD ST $1,490,000 4 4 3,400 DETACHD 2/8/2010
    307 NORTHSHORE RD $1,500,000 3 2 2,673 DETACHD 12/19/2009
    425 NORTHSHORE RD $1,529,000 3 3 3,270 DETACHD 1/24/2010
    1103 LAKESHORE RD $1,599,000 3 3 3,200 DETACHD 7/26/2008
    4398 Lakeview BLVD $1,775,000 4 2.2 3,309 DETACHD 12/30/2008
    100 3RD ST $1,799,000 3 3.1 3,600 DETACHD 2/6/2010

    Main Lake
    The prime real estate on the Lake is the main lake. This body of water is a natural lake. At it’s deepest it is about 150′. It is a couple of miles long and about half a mile wide, so it is large enough for boating, sailing, and water skiing. In my experience the values on the lake are affected by the amount of sun that the home is exposed to. On the North shore the houses get full sun all afternoon. On the South shore there are areas that get very little sun light and remain shaded nearly all day long. For this reason, I do think that the North shore has higher values than the South shore. However, the North shore is the home of a rail line that is still in use. So the sunshine is shared with 3 or 4 trains on a daily basis. There is talk of taking out the train track some day and putting in a trail for biking. That’s still in the dream stage and don’t hold me to it. If you buy on the North shore, be aware of the train. Here is the current inventory for houses on the main lake:

    Address List Price # BR # BTHS Total SF Prop Type List Date
    16511 Maple CIR $925,000 3 3 3,341 DETACHD 3/1/2010
    16990 ALDER CIR $995,000 3 2.1 1,926 DETACHD 8/4/2008
    3203 Southshore BLVD $1,099,900 4 3.1 3,773 DETACHD 2/23/2009
    444 RIDGEWAY RD $1,150,000 3 2 2,099 DETACHD 9/9/2009
    16771 MAPLE CIR $1,450,000 3 3 2,074 DETACHD 1/3/2009
    983 LAKE FRONT RD $1,595,000 3 2.1 2,199 DETACHD 2/18/2010
    1835 PALISADES TERRACE DR $1,748,900 4 3 3,380 DETACHD 1/8/2010
    112 NORTHSHORE CIR $1,760,000 4 4.2 3,632 DETACHD 3/9/2010
    2557 SOUTHSHORE BLVD $1,775,000 3 3.2 3,604 DETACHD 1/11/2010
    333 NORTHSHORE RD $2,500,000 4 4.1 5,152 DETACHD 12/1/2009
    961 TERRACE DR $3,495,000 4 4.2 5,795 DETACHD 9/7/2009
    1719 LAKE FRONT RD $3,888,850 4 5.1 5,251 DETACHD 5/3/2009
    16697 MAPLE CIR $4,695,000 4 3.1 3,146 DETACHD 1/30/2010
    3012 LAKEVIEW BLVD $5,750,000 4 4.1 5,957 DETACHD 6/7/2008
    1901 PALISADES TERRACE DR $5,950,000 5 4.1 7,284 DETACHD 4/27/2009
    3232 LAKEVIEW BLVD $6,300,000 3 5.1 7,500 DETACHD 6/23/2008
    3214 LAKEVIEW BLVD $7,500,000 4 5.1 5,800 DETACHD 6/23/2008
    1850 NORTHSHORE RD $19,500,000 5 6.2 13,500 DETACHD 9/8/2008

    And for those of you who really like to crunch the numbers, I thought I’d give you a list of the water front sales that have occurred in the last 12 months:

    Address O/Price Close Price # BR # BTHS Total SF Prop Type CDOM
    668 MCVEY AVE 164900 160000 2 1 852 CONDO 9
    3688 SPRING LN 179900 164500 2 2 1,120 CONDO 81
    668 MCVEY AVE 229900 199900 2 1 852 CONDO 765
    668 MCVEY AVE 249850 200000 3 1.1 985 CONDO 982
    668 MCVEY AVE 239900 220000 3 1.1 1,184 CONDO 61
    668 MCVEY AVE 369900 300000 3 1.1 989 CONDO 521
    668 MCVEY AVE 399850 365000 3 1.1 985 CONDO 19
    111 3RD ST 419000 390000 2 2 1,206 CONDO 276
    101 3RD ST 474900 430000 3 2 1,447 CONDO 376
    17675 CARDINAL DR 599000 500000 3 3 3,458 DETACHD 294
    830 CABANA LN 668250 572941 4 3.1 3,029 DETACHD 79
    17332 Lake Haven DR 749000 710000 4 2 2,484 DETACHD 125
    706 MCVEY AVE 949000 780000 3 2 2,000 DETACHD 391
    18051 KELOK RD 899000 799000 5 3.1 3,670 DETACHD 401
    716 MCVEY AVE 749998 800000 3 2 2,348 DETACHD 805
    1755 SOUTHSHORE BLVD 949000 850000 5 3.1 4,757 DETACHD 104
    17960 SARAH HILL LN 1179000 910000 5 3.1 4,800 DETACHD 163
    1555 BAY VIEW LN 995000 945000 4 4.1 4,775 DETACHD 277
    17178 CEDAR RD 1195000 1049000 5 3.1 4,209 DETACHD 92
    1149 LAKESHORE RD 1295000 1115000 4 2.1 2,660 DETACHD 143
    3270 LAKEVIEW BLVD 1399000 1125000 3 3 3,295 DETACHD 147
    17211 KELOK RD 1399000 1230000 3 3.1 5,384 DETACHD 112
    128 NORTHSHORE CIR 1479000 1290000 3 3.1 3,550 DETACHD 764
    753 LAKESHORE RD 1385000 1335000 3 3.1 2,562 DETACHD 51
    2605 SOUTHSHORE BLVD 1395000 1340000 3 4.1 4,750 DETACHD 234
    17225 KELOK RD 1350000 1350000 4 3.1 4,161 DETACHD 0
    975 LAKE FRONT RD 1899000 1500000 3 3 3,232 DETACHD 157
    16840 ALDER CIR 1595000 1555000 4 2.1 3,563 DETACHD 77
    4313 WESTBAY RD 2775000 2100000 4 3.1 4,000 DETACHD 193
    890 LAKESHORE RD 2275000 2275000 3 3.1 3,200 DETACHD 0
    16819 ALLEN RD 5500000 4850000 3 3.1 4,591 DETACHD 8
    1980 TWIN POINTS RD 4987500 4987500 4 5 6,600 DETACHD 0

    This is a pretty quick summary. But I think it gives you a small insight into what values are like for homes on Oswego Lake. The lake is just a very beautiful and unique place to own a home. In my experience people who aspire to living on the lake will start out in a more affordable home on a canal and then through the course of their professional lives move up to a home on the main lake. I have also known people who bought distressed properties on the canals and made enough money on a good remodel to sell at a profit and move onto the main lake. In any case, what a great place to come home to at the end of a long day at work. Living on the lake is like always being on vacation.

    Please let Linda or I know if you have any questions about buying home on Oswego Lake.
    Dianne

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    New Lake Oswego Lots (River Grove)

    There is some buzz in River Grove lately as word spreads that the property off of Childs Rd.,  east of Pilkington between there & Bryant Rd. has been designed for 34 lots by Renaissance Custom Homes.  The area is a sought-after intersection of sleepy River Grove residential living and nearby shops, freeway access and so much more.  Neighbors have been anticipating the future of this land for quite some time as it has languished undeveloped and left many surrounding residents wondering at its fate.

    I spoke with Jack Hall of Renaissance who confirmed that they are taking lot reservations for a fully refundable cost of $2500. per lot.  The plats are not recorded as yet, but I’m told that all has been approved, with lots ranging from 7400SF – 11,000SF.  Homes range from 2100SF to 3600SF with prices from $559,900 to $659,900. Excavation with roads and utilities will begin the first week in July. Assuming recording of the plat in October, you would be in your new home by Spring 2011!

    The big kick-off party was held at Renaissance this past Monday evening where I’m told floor plans, prices and a fit list were released.  The result was that three of the 34 lots are now reserved.  More information may be obtained by contacting Jack Hall at 503 545 3982.  You may also wish to visit Renaissance Woods online at: http://www.renaissance-homes.com/futureDev.html As always, feel free to give Dianne or me a call as we’d be happy to assist you if you are not already working with a Realtor.

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    Lake Oswego Market Trends

    I thought it would be interesting to do a couple of snap shots of various price points in the Lake Oswego real estate market. These each cover all listing/sold activity for the last six months and are divided into value ranges. These are for single-family, detached homes and are all located in the 97034 and 97035 zip codes.  Click on any of the graphs to see a larger, easier-to-read version:

    Houses priced from $200,000 to $400,000

    • 166 were offered for sale
    • 88 sold
    • There is currently a listing inventory of 6.3 month
    • The average sales price was $324,773
    • Among the sold homes, the CDOM (cumulative days on the market) averaged 129 days

    Houses priced from $400,000 to $600,000

    • 156 were offered for sale
    • 71 sold
    • There is currently a listing inventory of 10.7 months
    • The average sales price was $480,964
    • Average cumulative days on the market to sell was 165 days

    Houses priced from $600,000 to $800,000

    • 76 were offered for sale
    • 36 sold
    • There is currently an inventory of 10.7 months
    • The average sales price was $701,924
    • Cumulative days on the market to sell was 234

    Houses priced from $800,000 to $1,200,000

    • 76 were offered for sale
    • 30 sold
    • There is an inventory of 17.2 months
    • Average sales price was $947,899
    • Cumulative days on the market to sell was 373 days

    Homes priced $1,200,000 to $2,200,000

    • 52 were offered for sale
    • 16 sold
    • There is a 24.5 month inventory
    • Average sales price was $1,552,281
    • Cumulative days on the market was 323

    I like these little snap shots.  It allows you to visually see the market.  It is very apparent that the first-time-home buyer tax credit that was originally supposed to expire in November had a big impact on the less expensive homes (we will probably see something similar this April with the extension).  It’s also very easy to see that less expensive homes sell more easily than more expensive homes.  Cumulative days on the market in the expensive homes is out and out ugly.

    One reason for doing this post, this week, was so that I could play with the new statistics function being offered to Realtors by the RMLS.  Our local multiple listing service was the first in the entire United States to go completely web-based about 8 years ago.  Since then they have continued to push the functions of the website and the new statistics function is the latest enhancement.  It still has some limitations, but it is really cool.  Linda and I can now take snap shots of pretty much any part of the market, depending on what our clients needs are, and produce these spiffy graphs and statistics.  Besides being fun, I think it’s going to be extremely helpful.

    I hope you found something useful in the information presented today.  If you have any other areas of the market you’d like studied or questions you’d like answered, just let us know.

    Dianne

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    Featured Property: 211 Oswego Summit

    Newly listed, this home should be at the top of your list if you are considering buying a condo in Lake Oswego. Priced at $229,900, it is a spacious 2 bedroom, 2 full-bath home that has been recently updated. It is immaculate with all new windows, crown moldings, and walnut floors.

    This property is on the top floor and at the end of the building. So it is very, very private and very, very quiet. It is also all on one level with an elevator, so there are absolutely zero stairs. It also has an over-sized, one-car garage that is 13×20 feet. The garage is just a few steps from the elevator. So access to your condo is both easy and convenient and you are covered and out of the weather the entire time.

    The rooms in this condo are large. The master bedroom is 17×12 and the living room is 21×14. The master has a huge walk-in closet and its own full bath. The living room has a wood-burning fireplace and a deck that goes the entire length of the room.

    Did I mention the view? There are spectacular views of SW Portland looking towards the city as well as Mt. St. Helens. Seriously, this is a lot of value for the money without there being a gorgeous view. Then add in the fact that every single day you get to live on top of the world and you have found one great place to live.

    This condo is located in Mt. Park on the Western edge of Lake Oswego. Mt. Park is one of the first planned developments in the United States. It features 15 miles of walking paths, tennis, basketball, swimming, weight rooms, exercise classes and a gorgeous rec center that can be used for meetings and receptions.

    Here are some of the numbers:
    Priced at $229,900
    1506 square feet with 2 bedrooms and 2 baths
    HOA fees are $361 a month (includes 2 pools, weight room, water, sewer, and garbage) and $207 every 6 months to Mt. Park
    taxes are just $2799 per year
    The condo was built in 1981 and it has recently been remodeled inside.
    The complex is extremely well cared for with gorgeous landscaping and all buildings in excellent condition.

    I would love to have the opportunity to show you this property in person. Do not hesitate to give me a call to make an appointment. I can be reached via phone at 503-803-6298 or via e-mail at jdgregoire@earthlink.net

    Thanks for taking the time to hear about this fabulous property!
    —Dianne

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    Linda’s “News & Notes”

    1) Some Interesting Updates on the Portland Area Market:

    –       (According to RMLS)

    • Home sales in the Portland area showed marked improvement when compared with the same period (December) a year prior. “Closed” sales were up 52.6%, “Pending” sales rose 40.9%, and “New Listings” rose 11.9%.
    • In addition, the average sale price was down 2.5% compared to Dec. 08.
    • The average sales price for the 12-month period of 2009 was down 12.1% from the previous year.

    2) Tax Credits: The “First Time Home Buyers” tax credit was extended to this Spring (yikes… getting close) and there has been an additional tax credit extended to those “Buying Up” who have lived in their current home for five years and are buying a property of less than $800,000.  Both of these tax credits expire in April: The contract must be inked by April 30th, and the closing must be by June 30th.  If you or someone you care about are considering taking advantage of this amazing opportunity, you really must start looking for a home now to make the timeline.

    3) Interest Rates to Rise: According to Carrie Bay of DSNews.com (among many others), interest are projected to begin rising, and have risen .25% already within the past month.

    4) F.H.A to Raise Standards for Mortgage Insurance: No date has been set yet, but the word is “summer”. (ANOTHER reason to put your home-buying plan in motion now…)

    –      (excerpted From David Streitfeld of the NY Times)

    • Borrowers who get an F.H.A.-insured loan will soon have to pay a higher initial insurance premium. The new premium will be 2.25 percent of the value of the loan, up from 1.75 percent. 
    • Starting this summer, sellers will not be able to offer as much help to buyers to pay their closing costs. The maximum amount of assistance will drop to 3 percent of the value of the property, from the current 6 percent.
    • Left largely untouched by the changes is the most controversial aspect of the agency’s program: a provision allowing buyers to make a down payment as low as 3.5 percent. Private lenders these days require at least 15 percent.
    • Borrowers who want to put the minimum down will now be required to have credit scores of at least 580. Previously, there was no minimum score. (This is a relatively decent bar though, so this rule may have little effect.)

    5) Attention Investors: Yay! HUD has decided to waive the 90 day seasoning financing contingency for buyers!

    -(From Pat Goodell of Academy Mortgage ~ 503 380 0953)

    Effective February 1st,  2010, there will no longer be a requirement for a seller of a property to be on title for 90 days or more in order for approval of an FHA backed loan. This is incredible news, since the majority of buyers in today’s market are FHA buyers! The 90 day seasoning issue has long been an issue for investors and agents when working with short sales. This is changing on Feb 1st. The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.”

    –          ***Linda’s note: There are a few minor restrictions on this.  Let me know if you’re interested & I’ll send you the entire document with more detail.

    6)Credit Card Companies Get Slapped w/Restrictions: We all know how hard the new mortgage guidelines have hit some potential home-buyers.  Sometimes it seems like every time you turn around the consumer is facing yet another hurdle from the banking industry.  Well, this time the consumer is being offered protections that should make it easier, less expensive, and less confusing to do business with, or work to pay off credit card companies.   Here’s an excerpt from the Federal Reserve’s Announcement:

    The Federal Reserve Board on Tuesday approved a final rule amending Regulation Z (Truth in Lending) to protect consumers who use credit cards from a number of costly practices. Credit card issuers must comply with most aspects of the rule beginning on February 22.

    “This rule marks an important milestone in the Federal Reserve’s efforts to ensure that consumers who rely on credit cards are treated fairly,” said Federal Reserve Governor Elizabeth A. Duke.  “The rule bans several harmful practices and requires greater transparency in the disclosure of the terms and conditions of credit card accounts.”

    Among other things, the rule will:

    • Protect consumers from unexpected increases in credit card interest rates by generally prohibiting increases in a rate during the first year after an account is opened and increases in a rate that applies to an existing credit card balance.
    • Prohibit creditors from issuing a credit card to a consumer who is younger than the age of 21 unless the consumer has the ability to make the required payments or obtains the signature of a parent or other cosigner with the ability to do so.
    • Require creditors to obtain a consumer’s consent before charging fees for transactions that exceed the credit limit.
    • Limit the high fees associated with subprime credit cards.
    • Ban creditors from using the “two-cycle” billing method to impose interest charges.
    • Prohibit creditors from allocating payments in ways that maximize interest charges.

    Consumers can learn more about changes to their credit card accounts by accessing a new online publication. “What You Need to Know: New Credit Card Rules.” It explains key changes consumers can expect from their credit card companies as a result of the new rules. The Board plans to release additional “What You Need to Know” publications in conjunction with other major rulemakings