Big Hat Real Estate

Portland Real Estate Market Action Report Dec. 2011

Jack Kearney — Mon, 06 Feb 2012 00:35:52 +0000

Introduction: This post analyzes the RMLS Market Action Report for Metro Portland for December 2011. I use the first two pages because they contain uniform, meaningful information. Below the images are my comments. Click here to view the full MAR December 2011 or to view the Archives.

Narrative: The “December Residential Highlights” section addresses changes between December 2010 and December 2011. Closed sales are up 10.3%, pending sales are up 19.3%, and new listings were reduced by 11.7%. This year’s inventory is 5.3 months (last year was 7.9, last month was 6.2).

With closed sales, the year-to-year percentage change saw the Metro Portland market fall 6.2% on average sale price and 5.8% on median sale price. The month-to-month indicators show that the average price went up 0.5% and the median sales price went up 3.7% from last month.

The inventory absorption figure is 5.3 months, still much lower than January (11.3) and February (10.9) of this year. Last year, we were at 7.9 months. A portion of this year’s decrease is the reduction in new listings. We’re below the inventory levels from two years ago (7.7 months).

Interest rates again dipped below 4.000% for a 30-year fixed, conforming loan (loan amount under $417,000). Rates fluctuated, in the last month, but are a little lower than last month.

On the second page, some close-in areas are still off on a year-to-year basis. N (area 141), NE (142), and SE Portland (143) are off 3.6% (from 4.4% last month), 5.8% (from 5.2%), and 9.7% (from 9.5%) and market times are 90, 139, and 112 respectively. All three are below the regional average of 142 days.

You can see more activity here than other areas. For example, North Portland had 66 closed sales and 303 active listings (21.8% closed (19.6% last month)). NE was 162/594 (27.3% (20.2% last month)) and SE was 199/807 (24.7% (20.2% last month)).

Other Areas: The West Side (148) includes all NW and SW Portland. It is off 6.2% (4.1% last month) with a market time of 166 (131 last month). Lake Oswego/West Linn (147) is off 1.4% (3.3% last month) with market times of days 165 (179 last month). The West Side had 190 closings and 929 active listings (20.5% (14.6% last month)), while Lake O had 104/601 (17.3% (15.1% last month)).

Absorption: The absorption rates indicate that N (4.6 months), NE (3.7), and SE (5.1) are all below the Metro average of 5.3 months of inventory. NW/SW (4.9) is below average and Lake O/West Linn (5.8) is just above average.

The data continues to show that Portland Metro’s many areas are performing at different paces. Each of these areas can be broken down into sub-areas (e.g., neighborhoods, zip codes, school districts) that have different pricing, market times, and absorption rates.

Those are my “highlights” and analysis on this month’s report. If you would like a report from another area or if you have questions about this report, please call or e-mail. You can view more information on specific neighborhoods on my BIGHAT homepage or on posts to my neighborhood landing pages for Beaumont, Irvington, Grant Park, Hollywood, Alameda, and Laurelhurst. You can also search all homes for sale in Metro Portland on an Interactive Map.

Portland Real Estate – Hollywood District – 2214 NE 45th Ave.

Jack Kearney — Thu, 02 Feb 2012 16:47:33 +0000

This featured home is located a block from Sandy Boulevard, so there’s easy access to everything in Hollywood. The home has a great front porch and a very inviting backyard. Many elements of the interior have been restored or renovated, including a high-end kitchen. This one-of-a-kind home is definitely worth a tour.

Visit the Neighborhood Listing Page to view more homes for sale in Hollywood. To stay on top of the market, sign up here for Daily Emails of RMLS listings for sale in Hollywood.

Below is a thumbnail listing. Click on “View Detail” to learn more about the property, save it as a favorite, email it to a friend, or request a showing.

Click here for an Interactive Map of Hollywood

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Portland Real Estate – Beaumont – 3415 NE 49th Ave

Jack Kearney — Thu, 02 Feb 2012 16:32:50 +0000

This featured home is located a half-block south of Fremont Street and has easy access to Beaumont Village. The exterior is quaint with mature trees providing shade and a bright paint scheme to keep things light. The interior has lots of charm with built-ins and French doors. It could have second story addition potential, so someone looking for a project at a great price should tour this one.

Visit the Neighborhood Listing Page to view more homes for sale in Beaumont. To stay on top of the market, sign up here for Daily Emails of RMLS listings for sale in Beaumont.

Below is a thumbnail listing. Click on “View Detail” to learn more about the property, save it as a favorite, email it to a friend, or request a showing.

Click here for an Interactive Map of Beaumont

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Celebrating the Year of the Dragon – 2012

Jack Kearney — Thu, 02 Feb 2012 04:13:00 +0000

To be read in your best Andy Rooney voice:

Is it just my imagination, or have we been peppered with a pant-load of Year of the Dragon references this month? This year’s Dragon Fest, which began on 1/23/2012, celebrates the luckiest animal in the Chinese zodiac. To be sure, I feel lucky to have a full dance card in 2012. We’ve got Leap Day in February, the Summer Olympics in July-August, a presidential election in November, and the impending apocalypse in December. At least Leap Day gives us an extra 24 hours to crank REM’s “It’s the End of the World As We Know It” before the Earth spins off its axis.

Speaking of that, if the ancient Mayan prognosticators are correct (and there’s compelling reasons that they’re not), we’ll all be shuffling off our mortal coils on 12/21/12. I’m a glass-is-half-full guy, so I’m banking that those friendly aliens that shadow Comet Hale-Bopp will come to the rescue. In my latest Vision Quest, they beam us up and keep us in stasis until Newt Gingrich’s moon colony is up and running. That sure is a load off my mind.

Back to the Chinese zodiac, I was born in the Year of the Horse. It sure beats being a pig or a rat, but Bruce Lee never made a film called Enter the Horse. We equine types can claim National Velvet (5 Oscar nominations/2 wins), Equus (3 nominations), Seabiscuit (7 nominations), and this year’s War Horse (6 nominations), but where’s the box office draw to a real-life animal that can’t even talk? Even the famous Mr. Ed, who could talk, never got promoted beyond TV or Nick at Nite reruns.

Now a DRAGON, that’s a mystical animal that belongs on the Silver Screen (regardless of whether it can talk). So Mickey Rourke’s Year of the Dragon flopped at the box office, but look at Crouching Tiger, Hidden Dragon (10 nominations/4 wins) and this year’s The Girl with the Dragon Tattoo (5 nominations). The dragon on this page hangs over the entrance to Grauman’s Chinese Theater in Hollywood (California). They used to host the Academy Awards there, but now they use a larger theater next door. That shows you the power of the dragon in LaLaLand.

In the spirit of the dragon, here’s a link to find out which Chinese zodiac sign applies to your birthdate. Here’s another to see what happened during your birth year. Speaking of birthdays and dragons, have you visited Dragon Gate restaurant in yet? They’ll give you a free meal on your birthday – I know because I got mine last week. Enjoy – and I’ll see you on the moon in 2020.

Dave Otis Masonry – BIGHAT Contractor Referral

Jack Kearney — Wed, 01 Feb 2012 07:54:10 +0000

This month (Jan. 2011) we got a generous helping of rain in the Rose City. A few weeks ago, I crossed the Broadway Bridge and saw the swirling, latte-colored Willamette River nearly breaching the banks at the McCormick Pier condos. As if the condo market hadn’t suffered enough, these ones were almost literally under water. Not to make light of condos, but the excess rain creates water management issues for Portland homes. I wanted to recognize Dave Otis, of Dave Otis Masonry, who has saved me and a bunch clients from water-related issues over the years.

Dave and I met in the summer of 2001 when I was renovating a home on Schuyler Street. The contractors who owned the home before me had removed the chimney from the roof down to the first floor. Dave gave me some candid advice and told me to install ventless gas logs and not to bother with replacing the flue/chimney. I thought that was very honest and unexpected.

About a year later, I was renovating a home on NE 8th Avenue. It had some water issues on one of the basement walls. I felt like the Dutch Boy holding his finger in the dike. I’d put a hydraulic cement patch in one place, then a new leak would start. I spent a couple of weeks fighting this and then an offer came on the house, so it had to be fixed for good. I contacted Dave and he was able to stop the leak from the outside. He also provided the five-year warranty the buyers requested.

Since that time, Dave has been helpful with all of my referrals, most of whom have water or masonry issues. Sometimes he gives them honest advice about how to fix an issue themselves (e.g., installing an elbow on the downspout to run it away from the house or using above-ground pipes). Other times, the client hires Dave to solve the problem. This can involve a French drain, sealing a foundation wall (works best from outside), replacing an underground pipe, or other creative means for handling water.

Aside from keeping water out of basements, Dave does a lot of other masonry work. He works on chimneys and flues, does decorative stone and tile work, and he’s licensed to do both residential and commercial projects. Dave also does landscaping projects including plants, walls, and walkways. Check out Dave’s website, including photo gallery of his work, and find his contact information.

I want to thank Dave for all the work he’s done for me and my clients over the years. He’s earned a very good reputation with plenty of referrals. Keep up the good work, Dave.

Portland Home Sale Report – 2011

Jack Kearney — Wed, 01 Feb 2012 06:58:32 +0000

In 2011, the housing crisis continued to affect home sales and property values in Portland. This post covers the four MLS areas in the City of Portland (North, Northeast, Southeast, and West) during the last year. Some of our close-in neighborhoods are starting to show appreciation (bet you haven’t read that in a while), but that’s a subject for a “silver lining” post to follow.

In terms of value, each of the areas in the city depreciated, but at different paces. The percentage of distressed property sales (i.e., bank-owned or short sales) also varied. The data is presented by city area followed by City of Portland totals. Please pardon all the numbers and repeated language, but I’d go blind or insane otherwise.

North Portland (Area 141): In 2011, 836 homes were sold at an average sales price of $222,269 (a 3.6% reduction in average sales price from 2010). Of the sales, 154 were bank-owned and 63 were short sales. The percentage of distressed properties was 18.42% bank-owned and 7.54% short sale for a total of 25.96% distressed sales. From 1/1/2010 through 12/31/2011, the distressed sale percentage was 23.32%, so 2011 was an upward trend.

After backing out the distressed property sales from the total, the average non-distressed sale was $247,537. Compared to that, bank-owned homes sold for $140,012 (56.56% of retail) and short sales averaged $175,076 (70.73% of retail). Overall, North Portland gave up the least value of all areas in the city and was middle of the road in terms of percentages of distressed sales.

Northeast Portland (Area 142): In 2011, 1,984 homes were sold at an average sales price of $266,690 (a 5.8% reduction in average sales price from 2010). Of the sales, 368 were bank-owned and 147 were short sales. The percentage of distressed properties was 18.55% bank-owned and 7.41% short sale for a total of 25.96% distressed sales. From 1/1/2010 through 12/31/2011, the distressed sale percentage was 23.18%, so 2011 was an upward trend.

After backing out the distressed property sales from the total, the average non-distressed sale was $301,780. Compared to that, bank-owned homes sold for $147,941 (49.02% of retail) and short sales averaged $213,305 (70.68% of retail). Overall, Northeast was second to North Portland for value retention and tied North Portland for percentages of distressed sales.

Southeast Portland (Area 143): In 2011, 2,471 homes were sold at an average sales price of $214,893 (a 9.7% reduction in average sales price from 2010). Of the sales, 658 were bank-owned and 203 were short sales. The percentage of distressed properties was 26.63% bank-owned and 8.22% short sale for a total of 34.84% distressed sales. From 1/1/2010 through 12/31/2011, the distressed sale percentage was 32.25%, so 2011 was an upward trend.

After backing out the distressed property sales from the total, the average non-distressed sale was $254,204. Compared to that, bank-owned homes sold for $135,244 (53.20% of retail) and short sales averaged $161,287 (63.45% of retail). Overall, Southeast gave up the most value and had the highest percentage of distressed sales.

West Portland (Area 148): In 2011, 2,294 homes were sold at an average sales price of $384,547 (a 6.2% reduction in average sales price from 2010). Of the sales, 296 were bank-owned and 219 were short sales. The percentage of distressed properties was 12.90% bank-owned and 9.55% short sale for a total of 22.45% distressed sales. From 1/1/2010 through 12/31/2011, the distressed sale percentage was 20.27%, so 2011 was an upward trend.

After backing out the distressed property sales from the total, the average non-distressed sale was $423,862. Compared to that, bank-owned homes sold for $229,494 (54.14% of retail) and short sales averaged $274,753 (64.82% of retail). Overall, the West Side gave up the third most value, but had the lowest percentage of distressed sales.

City of Portland Totals: In 2011, 7,585 homes were sold at an average sales price of $280,564. Of the sales, 1,476 were bank-owned and 632 were short sales. The percentage of distressed properties was 19.46% bank-owned and 8.33% short sale for a total of 27.79% distressed sales. From 1/1/2010 through 12/31/2011, the distressed sale percentage was 25.35%, so 2011 was an upward trend.

After backing out the distressed property sales from the total, the average non-distressed sale was $321,318. Compared to that, bank-owned homes sold for $157,808 (49.11% of retail) and short sales averaged $214,079 (66.33% of retail).

As seen above, all of the areas in the City of Portland gave ground on value in 2011. However, some of the close-in neighborhoods have outperformed their areas and the Metro Portland statistics. Look for an update on those neighborhoods and for more information on non-distressed sales.

Portland Real Estate – Irvington – 1302 NE Tillamook

Jack Kearney — Mon, 30 Jan 2012 06:10:17 +0000

This unique home is a triplex condo located three blocks north of Broadway. From the exterior, it’s hard to tell that this is a triplex. The interior has been redone in the last few years and should maintain its newness and charm for years to come. This home has innate charm and features you will want to see in person.

Visit the Neighborhood Listing Page to view more homes for sale in Irvington. To stay on top of the market, sign up here for Daily Emails of RMLS listings for sale in Irvington. Below is a thumbnail listing. Click on “View Detail” to learn more about the property, save it as a favorite, email it to a friend, or request a showing.

Click here for an Interactive Map of Irvington

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Portland Real Estate – Alameda – 2705 NE Alameda

Jack Kearney — Mon, 30 Jan 2012 00:10:11 +0000

This wonderful home is in need of a makeover. Your paint and landscaping touches will restore its curb appeal. The interior decor is dated, but there are large rooms and bedrooms, detailed woodwork, and good flow. The bones are in good condition, so the budget shouldn’t break the bank. Stop in to see this one for yourself.

Visit the Neighborhood Listing Page to view more homes for sale in Alameda. To stay on top of the market, sign up here for Daily Emails of RMLS listings for sale in Alameda. Below is a thumbnail listing. Click on “View Detail” to learn more about the property, save it as a favorite, email it to a friend, or request a showing.

Click here for an Interactive Map of Alameda

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Government Assistance and Programs for Homebuyers

Jack Kearney — Wed, 18 Jan 2012 21:14:02 +0000

What has the government done for you lately? There’s a great Monty Python skit about this very issue, but that’s for another time. In reality, the federal, state, and local governments (as well as private foundations and trusts) do a lot to put people into homes. Below you’ll find information on HOWNW and several programs that help buyers either purchase a home or keep ownership more affordable. Two of the programs actually lower the buyer’s tax burden. Now that’s news you can use!

Homeownership Opportunities Website Northwest (HOWNW):

Click here for HOWNW’s homepage or to view a list of programs available to Oregon home buyers. There’s even a data entry process where you can input your attributes (household size, income, veteran status, etc.) and see the programs that may apply to you. Some of these programs can be used in combination, so make sure you know all the details and combinations. When you’re done perusing the programs, contact me for more information or explanations.

Oregon Bond:

Oregon Housing and Community Services program that provides down payment assistance and/or lower interest rates. Click through to learn more about the Cash Advantage and Rate Advantage programs. Click to view income limits based on household size.

Mortgage Credit Certificate:

Portland Housing Bureau program that allows qualified buyers who purchase homes within the City of Portland to take an ongoing federal income tax credit. Applies to first-time buyers (and certain non-first-timers in Target Areas) as long as they keep the purchase loan and use the property as their principal residence. Click here to learn more about the MCC and to view the income limits.

Single-Family New Construction Limited Tax Exemption:

Portland Housing Bureau program that abates a portion of the Multnomah County property taxes for a 10-year period for qualified buyers who purchase qualified new construction homes. One of my clients has already saved more than $4000 in two years. Follow this link for more information.

OMPA Panel Discussion on Financial Stability

Jack Kearney — Tue, 17 Jan 2012 21:44:30 +0000

OMPA Panel Discussion – January 2012

The Oregon Media Production Association (OMPA) held a panel discussion called “Financial Stability for Freelance Creatives.” The event was hosted at the Lawyers Title Insurance Company office at Lloyd Center in Portland. Harold Phillips, actor and OMPA member, moderated the event which was held to educate creative professionals about achieving financial stability and accessing benefits and opportunities that flow to more traditional workers and employees. The panel consisted of union representatives and members of the financial planning, mortgage/finance, and real estate industries. The audience asked questions on a wide variety of topics affecting their current and future financial affairs. Below is the contact information for the panel members.

Moderator

Harold Phillips
Email: harold@haroldphillips.net Website Website2

Financial Planning

Andrew Pollack, Financial Advisor
Ameriprise Financial Services, Inc.
3939 NE Hancock St., Suite 203 Portland, OR 97212
O: 503-473-8180 F: 503-445-9776
Email: andrew.d.pollack@ampf.com Website

Mortgage and Financing

Paul Geske, Mortgage Consultant
MLO-118286 / ML-3236
Summit Mortgage Corp.
5331 SW Macadam Ave., #314   Portland, Or. 97239
C: 503-706-2586 O: 503-459-0590   F: 503-223-6192
Email: paulg@go-summit.com   Website

Real Estate Brokers

Heather J. Benjamin, Principal Real Estate Broker
Earth Advantage Broker ABR, AHWD, HCS
World Wide Realty, Inc.
PO Box 10661 Portland, OR 97296
C: 503-799-0092
Email: heather@heatherjbenjamin.com

Jack Kearney, J.D., LL.M. in Taxation, Principal Broker
M Realty LLC
2211 NW Front Ave. Portland, OR 97209
C: 503-806-1496 O: 503-479-5574 F: 503-328-7078
Email: jkearney66@gmail.com Website

Bonnie Roseman, Principal Broker, CRS
RE/MAX equity group
237 NE Broadway Portland, OR 97232
C: 503-515-5973 O: 503-495-5777 F: 503-495-4925
Email: bonnie@rosecityroseman.com Website
Facebook: http:www.facebook.com/BonnieRosemanRealtor

Union Representatives

Dena Beatty
Executive Director Pacific Northwest
Screen Actors Guild
800 Fifth Avenue, Suite 4100   Seattle, WA 98104
O: 206-402-5958   F: 206-402-3489
Email: dena.beatty@gmail.com   Website

Click here to go to the OMPA Member Benefits page.