News & Notes

Take a break from Holiday Merry-Making and check out what’s happening in the local real estate market!
Here is some recent data for you on the overall Portland area, as well as specific Lake Oswego/West Linn (RMLS lumps them together) activity:

According to the RMLS Market Action Report for the Portland Metro Area November, 2012. At 1,733, closed sales were 13.9% higher than November 2011 sales of 1,521.

  • In the first 11 months of 2012, there were 30,964 new listings, 22,726 accepted offers, and 21,546 closed sales.
  • The average sale price year-to-date ($273,800) rose 3.9% over the same period last year,
  • ***AND… Total time on the market has dropped by 21.5% from 143 to 112 days.
  • For our Property Blotter readers, the combined area of Lake Oswego and West Linn reported:

    • 520 Active Listings
    • 94 New Listings
    • 101 Pending Sales
    • 97 Closed Sales
    • An average Sale Price of $425,600.
    • Average Time on the Market: 128 Days

    Our Thanksgiving Wishes

    Dianne and I want to take a moment to thank all of our loyal Property Blotter readers and clients for the confidence and support for our work that you’ve shown through the years. On a day like today, we are humbled and grateful for so many things, and YOU rank high on the list : )

    Sometimes I go on and get all sappy with you on Thanksgiving (that’s just me…. I get emotional when I think of all the things I have to be grateful for!), but this year I’m going to let someone else pull the heartstrings. I’m attachiing a photo and poem from my friend and poet, Sean Reynolds:

    I wish you all;
    Pale hills under a yellow moon
    amber leaves on dark green lawns
    a welcomed chill in the morning air
    cartoon balloons and sweet potatoes
    with little marshmallows and football

    and family and children’s fingers adorned
    with olives and naps on the sofa after
    wine and pie and laughter—sr

    May each of you experience a day of Peace, Abundance, and Love.

    Happy Thanksgiving,
    Linda & Dianne

    News & Notes

    September 2012
    Here are some Market Notes for You~

    According to the RMLS Market Action Report for the Portland Metro Area Sept 2012, “At 1,894, closed sales were 19.4% higher than September 2011 sales of 1,586, while declining 18.0% from the August 2,311 total.

    • “This was the best September since 2006 for closed sales.”:
    • The average sale price year-to-date ($272,200) rose 2.9% over the same period last year,
    • ***AND… Total time on the market has dropped by 20.7% from 145 to 115 days.

    For my Property Blotter readers, the combined area of Lake Oswego and West Linn reported:

    • 668 Active Listings
    • 163 New Listings
    • 134 Pending Sales
    • 95 Closed Sales
    • An average Sale Price of $453,500.
    • Average Time on the Market: 137 Days

    Open Houses for Oct. 14th

    Get out your galoshes and go see some open houses! It’s supposed to be rainy, after 3 straight months of little or no rain, so be sure to also drive carefully.

    Address Type Price BR Baths Open
    16758 Graef Circle Detached $259,000 3 1 1 to 3
    16909 Tracy Ave Detached $325,000 4 2 1 to 3
    1454 Glenmorrie Dr Detached $425,000 4 2.5 1 to 3
    16439 Lexington Ct Detached $439,000 2 2 1 to 4
    18096 Pilkington Rd Detached $625,000 3 2.5 1 to 3
    2479 Palisades Crest Dr Detached $664,500 5 3.5 2 to 4
    1131 Devon Ln Detached $679,900 3 3.5 1 to 3
    16633 Woodsman Ct Detached $699,900 4 4 2 to 4
    1985 Country Club Rd Detached $699,999 5 4 2 to 5
    2300 Childs Rd Detached $750,000 4 2 1 ro 4
    655 7th St Detached $819,000 3 2.5 1 to 3
    112 Northshore Circle Detached $1,600,000 4 3.5 11 to 4

    Contesting Your Property Taxes

    You know that fall is in the air when the leaves are turning color and your tax bill is about to arrive in the mail. So it seems appropriate that I share some information that may be of help with your tax bill.

    Some History
    The tax year in Oregon runs from July 1 to June 30. Taxes are due on November 15. So when you pay your property taxes you are paying back to July 1 and ahead to June 30. That in and of itself is confusing because it doesn’t correspond to the calendar year.

    Coming out of the recession weary 1980’s, Oregon’s real estate boomed. We had year-over-year property value growth. With no caps on tax assessment, people would receive their property tax bill in October and find the tax amount due had increased 10-20%. This was a huge burden and an unexpected expense that had to be paid. It lead to a series of ballot measures put before the people of Oregon to address this problem. In 1996, ballot measure 47 was passed.

    Ballot measure 47 restricted the annual rate of tax increase to not more than 3%, plus any bond measures that were voted on and approved by the community. The exception to this is significant remodeling that changes the property.

    The sale of a house does not trigger a new assessment. The tax rate remains on the property when it is transferred to a new owner, and is subject to the same 3% annual limit.

    Move forward from 1996 and property values changed significantly. We had years of appreciation in property values that were in the double digits year after year. Real market values increased at a rate significantly greater than 3%.

    When you get your property tax bill, you will see two valuations. One is what the county tax assessor thinks your real market value currently is (what your house would sell for today). And one is the current value that your tax bill is assessed at. As long as the market value is greater than the assessed value, your taxes will go up. The increase limit is 3%. This is why your tax assessment goes up even though you know your property value has gone down. This will continue to happen as long as your market value is higher than your assessed value.

    If you think your assessed value is higher than your market value, there is a process you can go through to appeal your taxation and potentially reduce your property taxes.

    Contesting your property taxes
    To appeal your property tax bill, you need to submit a petition to the Clackamas County Board of Property Tax Appeals between October 25th and December 31st. This window of time is the only time an appeal can be made. If you don’t do it on time, you have to wait until next year.

    Once you have submitted your petition, you will be given the opportunity to appear before the appeals board sometime starting in February, but not later than April 15th. At your hearing you will have 15 minutes to present your evidence. Evidence can consist of the following:

    A professional appraisal
    Your testimony and testimony of witnesses you bring with you
    Physical evidence such as photos, maps, graphs, and documents
    The paperwork from your recent purchase of the property
    Recent sales of comparable properties

    At the hearing you need to be prepared and concise. The Board will attempt to make a decision at the hearing, and a written decision will be mailed to you in about 3 weeks.

    My story
    I attended a class on the tax appeal process last winter. The class was taught by a man who had served on the Appeals Board. He brought up a case as illustration of the process. It happened to be a condominium where my 82 year old mother currently lives. The condominium complex, in Lake Oswego, had been an apartment conversion in 2007. The entire complex was remodeled. With beautiful units, right on the Willamette River, the condos sold on the high-end of the condo market. Well, we know what has happened since then. Those condos have lost more in value than the average home. One of the unit owners successfully contested their taxes and reduced them. A discussion took place, which was now shared with the people in the class I was attending, that perhaps the tax assessor should reduce the taxation throughout the complex (benefiting perhaps 100 home owners or more). The decision? No. Each unit owner would have to bear the burden of individually contesting their taxes.

    Needless to say, I am going to be working with my Mom to appeal her taxes this year.

    Would you like to appeal your taxes? Click here to get started.

    If you would like me to run some comparable sales for you, I am happy to help. Disclaimer: I am not an expert on the appeals process and I will not do the appeal for you. But I can at least point you in the right direction. Drop me an e-mail at jdgregoire@earthlink.net and tell me about your house. I will run a quick property search for comparable sales in your neighborhood and send them back to you. This will help you to know if you should do an appeal or not. And you can use the comparables at your hearing if you decide to pursue the process.

    Wish me luck with helping my Mom. I’ll let you know next spring if we are successful.
    Dianne

    News & Notes

    August 2012
    Here are some Market Notes for You~

    According to the RMLS Market Action Report for the Portland Metro Area August 2012, “All measures of real estate activity are positive when comparing August 2012 with August 2011″:

    • “At 2311, closed sales reached the highest level for a single month period in five years”
    • 2311 represents an increase of 28% in closed sales over August 2011.
    • The average sale price year-to-date ($271,100) rose 2.7% over the same period last year,
    • ***AND… Total time on the market has dropped by 20.3% from 146 to 117 days.

    For my Property Blotter readers, the combined area of Lake Oswego and West Linn reported:

    • 685 Active Listings
    • 210 New Listings
    • 131 Pending Sales
    • 149 Closed Sales
    • An average Sale Price of $470,000.
    • Average Time on the Market: 109 Days

    Realtor with a Capital “R”

    The State of Oregon requires Realtors to take 30 hours of very specific continuing education to be re-licensed every two years. And the National Association of Realtors requires that every four years Realtors must take a class on the Realtor Code of Ethics.

    I’ve taken this class quite a few times. There is very little variation. To be a Realtor, that is with a capital “R”, a licensee must adhere to the Code of Ethics. I belong to one of the very few vocations that actually has a code of ethics. I think it goes without saying that it shouldn’t be necessary, but it is. And I am very proud of my profession that we have taken this position to maintain fair dealings and integrity.

    Oregon has a pretty interesting history on this front. Oregon was the very first state in the United States to adopt a code of ethics on July 29th, 1913. So it isn’t just the bottle bill with which we have led the Nation.

    The code has 17 Articles that stipulate fair dealings with fellow Realtors, with the our clients, and with the public. Each local real estate board is charged with enforcing the code of ethics. Yes, Realtors are held accountable.

    Think about it, real estate involves the most important financial dealings that most people make within their lives. It must be handled with ethics.

    My favorite part of the Code of Ethics is the preamble. I’d like to share with you just a sample:

    “Under all is the land. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization. Realtors should recognize that the interests of the nation and its citizens require the highest and best use of the land and the widest distribution of land ownership. They require the creation of adequate housing, the building of functioning cities, the development of productive industries and farms, and the preservation of a healthful environment.”

    And that is just the beginning. It is a beautifully written document and a standard that I am proud of in my profession.

    Dianne

    News & Notes

    Hello from the Property Blotter!
    Ok, here’s the news of the week….. It’s hot and sunny in Lake Oswego, and Dianne and I are busy selling real estate! : )
    Just leaving you with an image of Lake Oswego Tomatoes for now, and encouraging you to enjoy your own harvests! Ours are overflowing here…. Tomato recipes are welcome in comments from our readers below!

    Analysis of the Higher Price Ranges

    I think that there is a general perception that the market has picked up a bit of steam. I have personally seen this in multiple offer situations and short market times. But I have to say that I’ve seen it in the more affordable price ranges.

    I did have a sale recently for a $625,000 house that sold in 1 day with multiple offers. But I found myself wondering, was that a fluke? Is that really happening in the higher price ranges? So I took some time today to compare the more expensive homes (purely arbitrarily I chose $500,000 and higher) today versus what was happening a year ago in the same 6-month time period. Here are the results:

    Price Range Sold 2/11-8/11 Active Today Pending Today Sold 2/12-8/12 Current Months of Inventory
    $500,000-$600,000 29 36 17 53 4
    $600,000-$700,000 25 32 3 27 7
    $700,000-$800,000 23 35 7 17 12
    $800,000-$900,000 17 18 4 18 6
    $900,000-$1,000,000 9 18 2 11 9
    $1,000,000-$1,500,000 19 38 6 15 15
    $1,500,000-$3,000,000 3 22 4 5 26
    $3,000,000-$20,000,000 0 11 2 1 55

    Pretty interesting. The $500,000 to $600,000 is selling strongly. So is the $800,000 to $900,000. 4 to 6 months of inventory is a pretty healthy market. Pricing over a million is where it really hits the skids. And that way tip-top price point of $3,000,000 and more is barely moving. This is when we look at the closed sales. But then when you factor in the pending sales, and there are several, it looks a bit better. When the pending sales in the top price bracket close, and this should happen in 45-60 days, the inventory drops from 55 months to 22 months. In the $1,500,000 to $3,000,000 it drops the inventory from 26 months to 14.

    Bottom line, it’s still too soon to tell. And it can still be said that the higher priced homes just take longer to sell as there are fewer people financially qualified to buy them.

    So what are these high priced houses like?

    The most expensive, recently-closed sale was a house on the Willamette River. It sold for $3,600,000 and went pending in just 33 days (seriously!).

    The most expensive pending sale is on the North shore of Oswego Lake. Priced at $4,695,000, it took 428 days to receive an accepted offer.

    The most expensive house currently for sale is NOT Jantzen Island. That house has been withdrawn from the market. It was price reduced from $19,500,000 to $15,000,000. The new king of the most-expensive- house-fo-sale-in-Lake-Oswego-pageant is a house on Northshore that is listed for $11,600,000. It was built in 2009 and has 13,462 square feet, 5 bedrooms, 6 full baths and 2 half baths.

    I hope you find this information of interest. It’s always a kick to try and figure out the market and its trends. Let me know if you have any questions.
    Dianne

    News & Notes

    * Summertime Fun – Wondering what to do in Lake Oswego this summer?  CLICK HERE  for a “Summer Catalog”!

    * Pre-Register for “After School” – Junior High is a time for our kids to spread their wings a little bit.  It also can be a time of testing newfound freedoms, and for parents to begin to look at things from a bit of a different perspective.  CLICK HERE for information on the After School program that offers junior high school kids lots of fun activities after school! Its a great way to meet new friends, learn and engage in familiar, and maybe some unfamiliar activies during that time in between school and dinner! Snacks, clubs, competitions and parties… sounds like fun!

    * Farmers Market… Want to Participate? – Have you ever pondered bringing yourself and your particular passion to the fabulous Lake Oswego Farmer’s Marekt?  CLICK HERE  for more information on just what that might entail for YOU!

    * Lake Oswego Review –  We have lots of out-of-state readers who look to us to keep them abreast of all things “Oswego” : )  For these readers, please also visit the local paper ONLINE to catch news snippets and to get a glimpse inside our beloved community.