Real Estate Information

According to the Portland MLS (RMLS) For the 12 months ending in July, 2006 vs. the previous 12 months, the average price in the Portland Metropolitan area appreciated 17.4% according to RMLS.  The average price rose from $263,500 to $309,400 and the median price rose from $220,400 to $260,000 for an increase of 18.0% for the same 12 month period.  The average sales price for all the sales in the month of July 2006 was $325,700 with an average market time of 38 days.  At the end of July there were 9,555 active listings listed in the MLS representing a 3.5 month supply. This is still well below the 5.5 months considered optimum and a balanced market.

According to the Portland MLS (RMLS) For the 12 months ending in July, 2006 vs. the previous 12 months, the average price in the Portland Metropolitan area appreciated 17.4% according to RMLS.  The average price rose from $263,500 to $309,400 and the median price rose from $220,400 to $260,000 for an increase of 18.0% for the same 12 month period.  The average sales price for all the sales in the month of July 2006 was $325,700 with an average market time of 38 days.  At the end of July there were 9,555 active listings listed in the MLS representing a 3.5 month supply. This is still well below the 5.5 months considered optimum and a balanced market.

I have been running into issues of late where buyers and particuarly home sellers are not fully aware of the rules and regulations regarding either in use or abandoned heating oil tanks.  There were some significant changes in the law here in Oregon last year, and the following are a few highlights, plus a link to more information from the DEQ website.

Oregon law (ORS 466.878) requires the owner to pump out all heating oil from an abandoned (unused) underground heating oil tank when: (1) The tank is no longer used as a heating source. (2) The tank has been replaced with a new one, and (3) The home or business is sold. Also, many lenders will require the tank be decomissioned either in place, or removed from the property and you will need to follow the rules from DEQ regarding the decommissioning of the tank which involves getting soil samples from around, and under the tank to confirm whether it has leaked or not.  If it has leaked, then it can be decommissioned in several ways, all of which are explained on the site.  If you have an active, or unactive heating oil tank, I urge you to read this information so you are aware of the issues that may come up upon the sale of your home.  For buyers, we also urge you to read this so you are aware of issues we will be asking the seller to take care of for you when we write an offer on a home.  The page link can be found HERE.  If the link doesent work, click on the following or paste into your browser.

http://www.deq.state.or.us/lq/tanks/hot/homeownersfaq.htm

CNN/Money.com recently released a report on how overpriced some of America’s cities area.  It is amazing in their opinion that cities such as Modesto, CA is a whopping 71% over where they see prices should be.  Other cities of note in the west are Los Angles / Anaheim CA at 57% overpriced, San Bernadino / Riverside 64% overpriced and Santa Barbara 81% overpriced.  By overpriced they mean that in Santa Barbara’s case ( the largest overpriced area in the USA according to this article) homes are priced at 81% more than they should be.

So where do homes in Portland, Oregon fit in?  The same article says we are a “fair value” at 15% over what homes should be.  Of course we have special circumstances here such as an urban growth boundary past which you cannot build, which causes prices to be higher within, but as we have always been the Portland area is still the bargain basement of the west coast’s major cities..

More information can be found by reading the article by clicking HERE

We have always had an interesting relationship with our neighbors to the south of us.  It’s interesting to think there are 37 million Californians and only about 3.5 million in the ENTIRE state of Oregon.

In studying the very cyclical real estate market in California, it appears that the last four down cycles have produced a mass migration to Oregon, and I'm trying to figure out if the same will happen this time around.  For sure, there will be the people who "cash out" of their home and move here purchasing a wonderful home where their kids can go to great schools, etc.  The Rob Levy team have sold many this year and have many more such buyers in the works.  Also for sure are the investors who are now seeing prices fall in many parts of California and are looking here for investments, we have several we are working with right now. 

But what we are finding interesting - and for the first time in my 18+ years of being one of Portland's top selling real estate teams - is kids coming.  By this I mean recent college grads who grew up in LA, SF, San Diego on most any big city, and have just gotten out of college and now can’t afford a home anyplace near the home they were raised in.  We have sold, and are selling many homes to such clients as they are moving here for affordable housing (in comparison), plus the similarity of the time zones, political climate, and the close proximity ( they are 2 hours away from home with a non-stop flight.  A recent study indicated that some 60% of college grads plan on living at home!  (Please if my three boys currently in college read this, your Mom and I are planning on selling the home and buying a studio condo :-)).

So the big question is as California clearly has entered a slow down, plus in a recent report showing that 24 of the 28 largest markets are declining in value, will the migration begin in earnest as before?   Well, let’s look at what’s also different this time....    The one major thing I can put my finger on is while we are in a robust economy, there aren’t the proliferation of high paying jobs here as in the last few cycles, but more service sector jobs - which indicate a need for more investor homes.  But, it’s the lifestyle, dummy!  That’s what brought me here 22 years ago, and Sandy on my team, and Cathy on my team, and Sandra on my team and Alicia too.  With what we have to offer - mountains, ocean, rivers, beauty, great schools, ease of life, minimal commutes, and that all important UGB (urban growth boundary) which will continue to drive up costs within I just don’t see anything more than a slowdown here to more reasonable appreciation of maybe 7-10% vs. the 18% we have been seeing – and that’s just healthier for all of us.  

But as with all predictions, time will tell........      Thanks for listening…… ROB 

I have been asked to speak this week at the national Star Power convention in New York City.  Each summer, real estate agents get together from around the country and discuss trends and strategies for improving their customer service and overall business.  It's really an honor to be with so many dedicated professionals who care so much about others and are willing to share everything they know.

One of the topics that was discussed during the opening sessions was something called "Living in the Dash."  The idea is that we all have a very limited time to make a difference before we pass away, and the only thing left, when it's all said and done, is represented by that small dash between the date you were born, and the date you die.  Someone living between 1920-2009 will appear to have lived a full life, but the real fulness comes from what you did during that time.  Was life in the Dash everything it could have been?  It was a really empowering concept that got a lot of people thinking.  It's really important that we enjoy the life we live and share what we can with others.  I think that's why I like being a real estate agent in Portland: meeting new people, making friends, and helping people with their dream homes.  There's no other job like it!