2012 Salem Oregon Real Estate Overview through Q3

Happy October! It has been a crazy year.  We are seeing rates staying low, prices great and but the biggest change is inventory is shrinking.  A change in market from Buyers market to Sellers market happens between 3 and 6 months worth of inventory.  An example of that is in Portland Oregon some price ranges have only 3 months of inventory.  What agents are saying is that within a few days of listing the home they are getting multiple offers.

During the past few years here in Salem Oregon we have seen inventories over 15 months in some higher end price ranges inventory was calculated in years not months.

We have been trending down for months now.  We were at 8.9 months last month.  That is great news for Sellers looking to sell.  There is just less competition.  We have been finding that with Buyers we are working with that they actually can’t find a home that they want or when they do it may have an offer already pending.

The link below is a look at the past 25 years stats and this year through Sept.

Click HERE: 2012 3rd qtr Market Overview

If you have any questions please feel free to comment below or email me directly tyjhildebrand (at) gmail dot com.

Want to check out what’s on the market? Click Here to view Properties from Salem to Portland !

What in the world is going on? Salem Residential Real Estate Market Update

Live Where You Play!

Seems like these days we are hearing more and more positive real estate news nationally.  We are seeing housing starts up around the country, existing home sales gaining some serious momentum ( 27 month high in August) and interest rates and stupidly low .. this week at staff a 30yr fixed was at 3%. Yes, 3%.  We are closing on a owner occupied commercial office building, their rate was locked at 3.49%.  Just crazy.

What’s HOT!

Portland, OR — This is from the Portland Business Journal Sept 13, 2012 – read full article

“More than 2.300 Portland area homes were sold in August, the MOST sales in a single month since August 2007, when 2.554 homes sold.. source RMLS.”

“The 2311 Portland area homes sold in August was 28 percent higher than the 1,805 homes sold in August 2011.  The average priced climbed 3.6 percent”.. Yes CLIMBED.. appreciated.. Words I haven’t seen in writing in 5 years.

My favorite stat! “There is now a 3.9 month inventory of homes on the market.”  A 6 month inventory is considered a healthy market.

So how does Salem’s Market compare?

Our business is way up from last year.  August is always a strong month but this year we had a very strong March, May, June and if we can keep everything together September will be our largest closed sales volume since 2006.  What I am seeing in the market is a lot of Buyers writing offers on the same house.  We started seeing that in the first quarter of this year.  Investors were coming into the market buying fixers to either flip or rent.  That is huge still right now.  Investors are buying finished lots in the $20k range building homes on them and renting them out.

Even in the higher price ranges, We have a listing over $500 that had 3 offers on it.  There still are tons of foreclosures, short sales and REO’s out there but it seems like they are getting absorbed faster than before

Stats for August in Salem Oregon Residential Real Estate Market:

In the month of August 2012, there were 1091 new listings that came on the market and a total of 5636 listings available.  In the month of August 2011 there were 1066 new listings that came on the market and a total of 6426 on the market.  That is a 12.3% decrease in listings available this year over last year at the same time.

In August 2012, there were 664 closed sales. With that number of closed sales we have approximately 8.4 months of inventory on the market.

Days on the market currently are:

Salem/Keizer:      140

Marion County:  149

Polk County        150

Closed Sales in Units for the last five years:

Through the end of August 2008:  4180

Through the end of August 2009:  3442

Through the end of August 2010:  4058

Through the end of August 2011:  3921

Through the end of August 2012:  4307

January 2012 Real Estate Stats for Salem Oregon

Great Horse Ranch for Sale in Aumsville.  Check out the video of the property!

In the month of January 2011, there were 1049 new listings that came on the market and a total of 6451 listings available.  In the month of January 2012 there were 935 new listings that came on the market and a total of 5238 on the market.  That is a 23.16% decrease in listings available this year over last year at the same time. more….  Click Here for the entire eNewsletter with all stats and a few articles from us!

Hope the trend is here to stay!!

Where to buy foreclosures, 2012 starts out with a bang! Interest Rates

First off, Happy New Year.  Here is to a great 2012!

the shed @ Roberts Crossing!

Crazy year in the Salem Or real estate market.  No doubt it has been an incredible time for buyers.  Sellers that have been able to stomach the sale are the ones that are realizing their loss on the home is being made up in the interest rate and the home they are buying.  In most cases the buyers we have worked with have bought much more house and their payments were not that different because of the great rates they were able to lock in.  At the end of the post is a copy of the rate sheet we received from Wells so you can see for yourself how great these rates are.

It is funny to look back at my last years post titled the Perfect Storm & Perfect Storm 2.  Because we are still in it.  Prices are incredibly low, inventory is still high, off a little bit from last year but still about 12 months of inventory and as you can see these rates are crazy low.

A couple of positive things happening already this week is

1. FHA removing the 90 day hold on reselling a home after purchase.  That is great because we are seeing investors back in the market now big time but there play is a buy and hold (rent) but the flippers can now take a foreclosed property that is doing nothing but causing the value in neighboring like homes decline being flipped at a higher price after fixing it up is HUGE.

2. Fannie Mae /www.HomePath.com 3% down owner occupied and 10% investor financing.

Looking for a foreclosure?  Well,  I would search Salemlisted.com but you can also check out www.homepath.com this is the website for Fannie Mae we can help you with offering on these homes but it is nice to use the site to see what the financing incentives are.  It is a great way to stay on top of the foreclosure market.  Why I like to keep an eye on these guys is because they have a lot of inventory on their books and they want to get them sold.  They offer incredible financing for these properties that they own.  Right now you can purchase a Fannie Mae home for as low as 3% down plus they have some other incentives plus for an investor you can get into some of these homes for only 10% down.  If you have any interest in learning more about the foreclosure market please don’t hesitate give us a call or email.  503.881-2313 – ty at prurep dot com.

If buying or selling real estate is your plans for 2012 lets sit down and discuss your goals as they pertain to real estate and see if we can help you.

Short Sales are still going to be a huge part of the Salem Oregon real estate market.  Short Sales are definitely a harder sale and a harder purchase but this option can be good for both buyer and seller.  It does get the Seller out of a tough position and in most cases the buyer can get a good buy.  They take a lot of work and we have been on both sides of the deal so if you would like some consulting on some of your options we would love to discuss those with you.

Again, Happy New Year!

Existing home sales up > Median Home Prices Way Down in Salem, OR

Yes, there is definitely a lot more activity in our market place today.  Spring has sprung and offers are being made, new listings are hitting the market and if you read this article you will see that existing homes sales are up nationwide. But, the huge (but) home values are still falling.  We are seeing a lot more investors in the market today and the reason is prices and low interest rates… Great investor programs like Homepath Loans on Freddie Mac owned properties make it a great time to buy.  I would just love to see our market stabilize.  I would take no gain over 20.6% decrease in median home value in one year.  Yes 20.6% #3 in the nation.. read the article from Inman News and see the chart here.

Metro Q1 2010Q1 2011% Chg.

1. Gulfport-Biloxi, Miss.$128,800 to $99,400-  22.8%

2. Akron, Ohio$95,300 to $74,900-     21.4%

3. Salem, Ore. $193,300$-153,500-    20.6%

4. Dayton, Ohio  $97,900 to $78,000-     20.3%

5. Cleveland-Elyria-Mentor, Ohio $108,300 to $87,000 -19.7%

6. Miami-Fort Lauderdale-Miami Beach, Fla.$191,200 to $153,600 -19.7%

7. Ocala, Fla .$92,900 to $75,400- 18.8%

8. Allentown-Bethlehem-Easton, Pa.-N.J.$228,200 to $186,200- 18.4%

9. Tucson, Ariz.$166,800 to $136,800- 18.0%

10.Cumberland, Md.-W.Va.$98,300 to $80,700- 17.9%

My take on the article is that the foreclosures and bank owned homes are just killing the real estate market.  If your in the market now is an awesome time to get in! If your looking to sell the best thing to do is be as aggressive as you can and know that when you purchase you will be making up for your loss in the low price plus the incredible interest rates.

Distressed Property Series

Starting Monday May 2nd I will embark on a 6 weeks training seminar. It will show you everything you need to know about buying or selling a distressed property.

Any questions give me call at 503.881.2313!!!

Ever thought of being a landlord?

Everyday we see the new listings that hit the MLS.  In my office at least once a day you hear.. “oh my, look at this price”.  It is true there are some incredible deals in our town.   Short-sales, and REO’s (bank owned) are the 2 things everyone is after.  Don’t worry though there are plenty of these homes to go around. 

We have a great distressed property search at SalemListed.com.  It allows you to search the entire Willamette Valley for everything distressed.  Click Here!  From notice of defaults, short sales, bank owned, corporate owned .. when I checked the site this morning there are currently 1822 homes that fall into the distressed property category. 

This is an incredible time in our community for real estate.  If you ever wanted to own a rental property now is the best time ever.  Think about it.  Prices — way below 2007 prices, Interest Rates — lowest in 50 years (5/1 arm last week 2.5%) Rental market — hot, why because there are so many displaced families.  Very sad but true.  The rental market is on fire because of people loosing there homes and starting the rebuilding process.

If you ever thought about investing in Real Estate now is a great time to at least investigate your options.  We can do most of the work for you.  We can help identify some possibilites, work with property managers to see what kind of rental income you could expect and run the numbers.  To see if the rent will cover all your expenses. 

The best part of rentals is that some one else is paying your mortgage and eventually that asset will provide you with hopefully a steady income.  If you would like to learn more about investing in real estate please don’t hesitate to call our office 503-945-0234 or check out our property search engine SalemListed.com  it is very easy and you can identify what your looking for and the system will email you everytime a listing matching your criteria hits the market.  Its that easy properties in your inbox!

It’s a Buyers market for Real Estate Investors too!

Turn on any financial news program and at some point you’ll hear the experts extolling the virtues of diversification.

Real estate,even through the market downturn, has long been considered a conservative, long-term strategy to growing wealth.

In fact, that very downturn has created a historic buying opportunity for potential homebuyers and investors alike. The combination of lower home prices across American and historically low mortgage rates, two essential factors that usually don’t trend in the same direction, have triggered a buyer’s market in many areas of the country. For real estate investors who want to rent their properties, this can make the difference in achieving positive cash flow sooner or right off the bat.

While some seasoned real estate investors make it look easy, to be successful, beginners should follow some basic principles.

• Learn all you can. Before committing your cash, you should have a fundamental understanding of real estate. For example, be aware that, in general, investment properties are not liquid investments. Barring exceptional circumstances, real estate does not sell at a moment’s notice. It could take days or months to sell a property, depending on the strength of the market in a particular region.
• Consider cash flow. You’ll need to have enough capital on hand to cover any short-term losses due to vacancies between tenants.
• Start small. Look into buying a condominium, single-family home or a duplex. Leave large apartment buildings and commercial properties to the pros.
• Inquire at the local Chamber of Commerce about companies relocating into or out of the area. Company movement is one indicator of demand for rental and/or office space.
• Find a property that will be in demand. Look for a moderately priced home with three or four bedrooms, two bathrooms, and a garage that sits on a quiet street.
• Research the property. The most common way first-time investors lose is by failing to investigate a property thoroughly. Look beyond the front door. Investigate the reputation of the school district, the crime rate, and plans for expanding a nearby highway or developing vacant land. Ask a local real estate professional about the area, its history, and how fast (or slow) properties are moving.
• Inspect the home you’re considering for signs of water damage, such as stains on the ceiling and crinkling or gathering wallpaper; open and close every door and window; and check all electrical sockets by plugging in an appliance. Get an independent home inspection, roof inspection and termite inspection. Unexpected repair costs can eat away your cash flow. Because even the best inspection can’t always predict problems, try to set aside some of the rental income for unexpected repairs.
• Spend time driving the streets of the neighborhood noting the condition of other properties. Are lawns maintained? Are roofs in good shape? Are homes kept up?
• Be ready to make fixes quickly and respond to the renter’s needs. If you’re not prepared to be a hands-on landlord, consider hiring a property management firm.
• See your tax advisor for related planning and laws that can affect your investment decisions.

Remember, investing in a property is much different than living in one, and while emotion and attachment can be prime motivators when it comes to homes, it is return on investment that counts when investing in real estate.

Ty Hildebrand can be reached at503-371-3013 x1234. Prudential Real Estate Professionals is an independently owned and operated member of The Prudential Real Estate and Relocation Services, a Prudential company. Equal Housing Opportunity.