In July of 2002 if new listings were to cease, it would take 4.7 months to sell all the houses at the then rate of sales.  In July 2007, it would take 30 DAYS LONGER THAN THAT! Yup, it would take 5.7 months to sell all of our listings at the current rate of sales.  TERRIBLE!  We have almost 1/3 more homes to sell than we did five years ago! 

Look at closed sales for the year to date for July 2002 at 2,337 vs. 2,624 for July of this year!  THAT IS A 12% INCREASE IN SALES!  THAT IS TERRIBLE!  Wait A minute…a sales increase is actually a good thing. 

In July of 2002 the average market time was 61 days.  The average market time this past July was 52 days!  THAT IS TERRIBLE! 

Appreciation must be TERRIBLE!  In the market we are in, prices are dropping like a rock!  For example, our office does a lot of business in Hillsboro/Forest Grove, and the annual appreciation rate year to date in 2002 was 5.7%.  This year, for the same time period, it dropped clear down to 10.8%.  Isn’t that UP almost double?  In Gresham, the appreciation rate went from 1.2% to 12.7%.  What a travesty!  The Regional Multiple Listing Service (RMLS) showed three areas in July of 2002 that had negative appreciation, and none in 2007.

We are in a state of emergency in this country regarding foreclosures.  They are at an all time high.  Well, they are at an all time high in Illinois, Michigan, California, Colorado, Arizona and Florida.  In our area, foreclosures are actually down.  Foreclosure rates in

 I don’t pretend to ignore the fact that the real estate market is much different today than it was a couple of years ago.  Financing is more difficult.  The real estate market is and always will be very cyclical in nature. 

The problems in the early 1980’s were much different.  High interest rates (12% to 18%) were prevalent.  Unemployment was high.  Today we have good employment, a bustling economy and low interest rates. 

While we face a different set of problems today, they are not yet, and probably won’t become overwhelming…unless you let them, and that would be TERRIBLE!

“Residential home appreciation rates continue to rise in smaller towns in the Northwest, even though many areas of the country are facing gloomy prices and it’s difficult to sell a home.

Salem, Oregon (Oregon’s state capital), may not be as busy and cosmopolitan as its neighboring metropolis, but it and the surrounding Willamette Valley continues to see rising home values (nearly 10% in the first half of 2007).  Why?  Perhaps it’s because the smaller city was not part of the original housing boom, and therefore didn’t have the same level of builder speculation as the big kids in the state.  Or it could be the plethora of recreational activities, seemingly closer at hand.

One economist from a federal housing agency, Andrew Leventis, says “The Pacific Northwest was a little bit late coming to the party. The extreme appreciation over the past five or six years in the country only just began in the Northwest a few years ago.” 

Nationwide, house prices rose 0.5 percent the first quarter of 2007 above the fourth quarter of 2006.  Oregon experienced a growth in the same timeframe of 10.77 percent.  Salem area prices are rising fast because, until recently, the capital city was overlooked and bargains are easier to find.

Food for thought, for those thinking about leaving the Rat Race and willing to commute a bit longer for a better quality of life in a smaller town.

“A recent survey of hundreds of residential builders throughout the U.S. shows that a majority of them found buyers willing to pay up to 25 percent more for a green-built home.  Are you one of them?

A green home is one built for conservation-minded use, with sustainable materials, designs and technology.  It uses less energy and natural resources and creates less waste.  It’s healthier and more comfortable for people who live in them than a traditional home.

If you don’t want to move, or spend the money for a green home, you can change your existing home toward being green by using basic weatherizing and energy-saving tools like:  programmable thermostats, correcting air leaks from the outdoors, insulation, fluorescent light bulbs, maintenance to your HVAC. 

The Northwest has the highest certification for green buildings in the U.S., rated by the Leadership in Energy and Environmental Design (LEED), created in 1993.  U.S. Green Building Council is an excellent resource for many of the steps that can be taken to help with global warming and the environment by “greening” up your home.
 

Owning a home is an important part of the American dream and an important part of our way of life. Core American values of individuality, thrift, responsibility, and self-reliance are embodied in homeownership. During National Homeownership Month, we raise awareness of homeownership and encourage more Americans to consider the benefits of owning their own home.

Some benefits of home ownership include:

• Home owners provide stability. Owners typically stay in their home 12 years whereas renters stay no more than three years. (U.S. Census American Housing Surveys)
• Home owners create positive environments for families. Children of home owners are 59% more likely to become homeowners. Their children are also 25% more likely to graduate from high school and 116% more likely to graduate from college. ( Boehm & Schlottmann, University of Tennessee)
• (more…)