Real Estate Timing in the Fall

People often ask us about market timing. When is the best time to search for a new home? When is the best time to put our home on the market? The real answer is that there is no real answer. Trying to play the market is a lot like gambling. Sometimes you win, sometimes you lose, and most of the time success is in the luck of the draw. It's best to move based on the needs dictated by your family and job, or to become a landlord based on your long term investment goals.

And yet... RMLS reports that in August (the most recently compiled statistics), the inventory of homes on the market was down to its lowest level in more than two years. That wasn't just because people weren't putting their homes on the market, it was at least in part because sales were up 28% compared to August 2011. And more buyers are out there needing homes. While I still don't recommend playing the market, if you've been holding off on putting your home up for sale, these statistics show that you might want to start thinking about it.

Buyers might look at this and wonder, if inventory is so low, are there enough homes out there to choose from. They're out there, but if you're looking in a high demand area you may have to be patient while looking and move fast and aggressively if you find it. Low interest rates are keeping buyers active, and many of you are looking for the same thing. Despite the occasional challenge, those interest rates are exactly why you should consider looking now - when they go up it could make a huge difference in your purchasing power.

As for the timing, history may show this to be one of the strongest fall selling seasons in years... but we won't know that until it's history. Traditionally a season of slowing down and settling in for the long winter, this year may be different. Sellers are encouraged by the strong market. Buyers are encouraged by unprecedented interest rates. Plus the sun is out, which has a serious impact on showings. So the answer to that question about when to get into the real estate market may be answered with one word: now.
 
(Also, don't pick on my luck of the draw metaphor. I'm not a big gambler.)

If you think now is the right time, or want to talk about when now might be right, then give me a call.

~Amy Seaholt
 503-936-8705
 amy.seaholt (at) comcast.net

Kitchen Ideas on Tour

Portland's Architectural Heritage Center is hosting their annual Kitchen Revival Tour this coming weekend. The tour opens restored and remodeled kitchens to the public. The focus, as you might imagine from the Architectural Heritage Center, is on kitchens that have retained the feel of the period in which they were built. It's a great source for ideas. Or you can tour and wonder how on earth people manage to cook with so little counter-space. Either way, if you're interested in older homes it's worth your time.

If you would like to put your older home on the market, give me a call: 503-936-8705.
~Amy Seaholt

Value and Space Are So Very Subjective

NYC front yard on 10th st.
(screen grab courtesy of Google Maps)

I was on vacation in New York City last week, taking a walking tour of the Greenwich Village and Chelsea neighborhoods. While on tour, the guide pointed out a street that had front yards - Actual front yards! - and was clearly excited about this 3-foot-deep patch of grass. My first instinct was to laugh, but after spending only a few days in the hustle and closeness of the city, I could see where her excitement was coming from. Space, in New York, is at a premium. It adds tremendous value to a home.

It got me thinking about how our differences in experience can change our perspective and influence our wants and needs when we're looking for a home. In Portland, a high value is placed on homes that are walkable to shops and restaurants, particularly in certain close-in neighborhoods. Those houses have maintained value better during the real estate downturn because native Portlanders have collectively decided that we find it important to, at least occasionally, get out of our cars and enjoy even a peek of sunshine.

It's not important for everyone, though. Recently I worked with some people who were relocating from a suburb outside of Atlanta. They were accustomed to large lots in gated communities, and were having a hard time seeing any value in the close-in neighborhoods that I mentioned above.

In other words, perspective effects experience in nearly every situation in life. Including real estate. Portland was the 37th most expensive housing market in the country last year. Some transplant clients (Atlanta suburbs) think it is absurdly overpriced, while others (New York) thought they could get a fantastic bargain.

Interestingly, nearly everyone comes to the have the same perspective about Portland after living here. People tend to fall in love with it, though it may take a couple of rainy seasons to do it.

If you're looking to move into your next overpriced bargain of a perfect home, give me a call or email.

Amy Seaholt, Oregon Broker, CDPE
503-936-8705
amy.seaholt@comcas.net

When it Comes to Inspections, Wish for Rain

It was another sunny weekend here in Portland. Though I am definitely a fan of the fair weather on a personal level, professionally I secretly curse the lack of winter rain. Searching for a home in winter can have it's disadvantages - the inventory can be scarce as sellers wait until spring to put their homes on the market and gauging what a garden will do in the spring is nearly impossible. But there is one distinct advantage that makes me want to tell every client to buy in the winter: water.

When the (normally) heavy Northwest rain falls, a homes water issues can become apparent, revealing issues that in summer may be nearly impossible to see. I have some clients, dear friends, who I helped with the purchase of their dream home in summer. They called me justifiably upset after the first rain the fall after they moved in. Inches of water in their basement. I felt horrible for them! The challenge is that there were few signs of a problem in the basement, save for slight water marking that is actually pretty common in older homes. And if the home has Portland Cement - that porous aggregate so common in homes around here - dry weather makes it even more difficult to tell if it's a big problem like my friends had, or a smaller issue of seeping. (I realize that this example is also about the failure of the sellers to disclose the water intrusion, which is unfortunately difficult to prove, though depending on the situation may be worth pursuing in court. Fodder for another post.)

But there are the successful examples, too. I helped another friend purchase a home through Fannie Mae, who as a bank are not able to provide a detailed disclosure. The inspector found a roof leak because of staining on the living room ceiling. Once that dried in summer the problem may not have been apparent. Another client purchased a fixer where the walls seeped and mildew was beginning to grow. They were able to financially for the needed repairs. A good thing, because once summer rolled around the basement dried out and hid it's issues.

You and you family should decide to purchase a home or investment property in whatever season works for you. Just know that every season has its benefits and drawbacks.

One of the best things you can do is to hire well-recommended inspectors to investigate any issues with your prospective property. I like the guys over at Associated Master Inspectors, and Elena likes to use Home Inspections NW. While we can't unearth every problem, between good inspectors and Realtors, like Elena and I, who are willing to do as much homework as we can to find out the complete picture of a property's condition, you can do all you can to minimize surprises once you own the home.

If you are thinking of buying a home any time soon - whether winter, spring, summer or fall - I'd be happy to help you unearth the right home for you and be aware of its condition when you buy it. Give me a call at 503-936-8705 or email amy@rosecityrealtors.com.

-Amy Seaholt
    

Is It Possible to Turn Your Current Home Into Investment Property?

If you've ever considered keeping your current home as a rental, and using this "buyer's market" to get into your dream home, 2012 will be the time to seriously consider it. There are a lot of factors indicating that this is probably a wise decision if you have the means. Below are just a few things to consider:

• I'm not going to lie - it's a tough market for selling your home. By keeping it, you could take advantage of market timing. I don't always recommend trying to anticipate or "play" the market (usually it's best to make decisions on what's right for your family, not by RMLS and NAR data), but in this case, you may be able to buy in a low market and wait several years for a small recovery before you sell.
• Due to the recent decrease in home ownership in the past couple of years, the demand for rental property is at a high. I think it's a sad predicament - that housing is both difficult to find and at a premium. Moving out of your first-time home and adding a well-kept property to the rental pool might help both parties - renters and investors - in this climate. 
• The Federal Reserve announced Wednesday that it anticipates keeping the federal funds rate low through 2014. While these inter-bank interest rates don't immediately affect consumers, they do eventually influence the interest rates consumers pay on their home loans. The challenge is that interest rates are higher for loans on investment property. However, if you've lived in your primary residence for a year or more (check the fine print on your loan terms), you may be able to keep your current loan in place and still take advantage of primary home rates on your new property.  

If you'd like to explore whether this option will work for you, it's usually best to start by speaking with a lender. The two of us can work together to help you figure out if there is enough equity in your home and if there are  mortgage options for this approach to work for you.  

If you'd like to start receiving listings that fit the bill for your next home sent directly to you, sign up via my search website here. If you need a lender suggestion, I work with some great people! Call me at 503-936-8705 or email amy@rosecityrealtors.com for contact information. 

Looking a the Silver Lining, Not the Cloud

Housing market's silver lining - Jun. 21, 2011

I thought this article from CNN Money was a good read if you're interested in what's going to happen with the real estate market. It makes the point that the tough housing market isn't all bad. It's great for first time buyers and makes homes more affordable even for those who are not buying their first home, but want to move up or buy investment property.

Foundation Crack

The most interesting and thought provoking point, for me, was that this market creates a foundation for a housing recovery in the future. Of course! It makes so much sense! We were not on solid footing before, but we're getting there now. How did I not see it before!? Oh, wait... It wasn't just me. Few saw it before and those people weren't believed.

Many people still can and should seize the opportunity to take advantage of the affordable market. Call Amy or Elena at Rose City Realtors if you'd like to see what you might afford in Portland today.

- Amy Seaholt, Broker in Oregon, CDPE
503-936-8705

Expect more Micro Houses around Portland

The nation's population is predicted to grow by 150 million in the next 40 years, we can expect at least a few of those people to be here in Portland. To poorly paraphrase Mark Twain: they're not making more land. Instead we must learn to live on it more efficiently (read: tiny footprint), as described in this Realtor Magazine article.

Micro homes are tiny homes - from 100 to 800 square feet - with efficient floor plans and a very small greenhouse footprint. D.R. Horton has begun development of the first micro home community in Southeast Portland at 43rd and Division. Consistent with the idea of an efficient mixed use community, the neighborhood is walkable, centrally located, and cleverly developed.

Toronto's Tiny Home

Though this photo of a Toronto home made it's way around the internet and email lists as the target of jokes recently, the home is real and it meets a real need. These homes are targeted toward first time buyers or single-person households. Considering that married couples no longer make up the majority of homeowners in the U.S., the move to creating a smaller housing base makes sense. 

You can read more about these tiny houses and see other options besides those provided by D.R. Horton here.

If you or anyone you know is interested in exploring these micro homes - or bigger houses - give Amy or Elena at Rose City Realtors a call and we can help you with your home search.

- Amy Seaholt  503-936-8705