How to build a house in Salem Oregon

As you drive around Salem you see something happening that hasn’t happened or been seen in a few years.  That new phenomenon is NEW CONSTRUCTION.  Seriously, you probably don’t pay attention to these things like I do but it started towards the end of last year that I noticed actual fresh 2x4s stacked up in front of a lot and dirt being moved around.

There are currently 81 NEW construction homes on the market currently.  Not all of them are finished but there is plenty to choose from.  See listings here!

I think this is a tell tale sign that a change is in the air.  Finished lots that were 100k 5 years are now on the market for $20k to $35k.  Yes, we have a few lots listed in NW that were purchased by the builder in 2008 for $95 and 1 of the lots is currently on the market for $29k.  Finished, ready to build.  Crazy.  But, what is happening now is builders are starting to call.  We had 3 builders look at the lots last week alone.

It is so interesting to have lived through this real estate cycle.  To go from the frenzy of anything and everything selling and at crazy high prices to absolutely nothing where foreclosure, short sale and REO was the only thing that sold to now multiple offers and builders building.

I don’t think that we are out of the woods and things will be rosie from here on out but one thing is for certain people are looking.  Our phone is ringing buyers are responding to our ads, our website is active, even our open houses have traffic.  With a 15 year loan in the mid 2% range how can you not want to take advantage of this Perfect Storm .

 If you are thinking about getting into the market either by selling, buying, investing or even building please give us a call to discuss.  Doesn’t hurt to know what is available to you!

Introduction to Distressed Properties 101

This week I am embarking on a distressed property blog o thon! Why you ask?

The main reason is this very statistic from WVMLS (Willamette Valley Multiple Listing Service). 49% of homes SOLD in our market in the first quarter of this year were distressed properties. There are 2.2m homes in Foreclosure in the US as of Jan 2011 and the amount of shadow inventory (the inventory lenders have that they haven’t released to the market) is not shrinking. So distressed properties are going to be here for a long while..

The opportunity in our market place right now is one that we probably won’t see again for years to come. Low prices / tons of inventory to choose from / incredibly low-interest rates this all adds up to a perfect storm for a Buyer. If you choose to get in to the distressed property world there is a lot of things that you will need to know and you really should work with a real estate agent that has been through all types of distressed property sales and after that… Hold On!

It is going to be a crazy ride… If you need more information we would be happy to sit down and discuss your situation, your needs and wants and see if this direction is good for you. If you’re in the situation of not knowing you’re options as a seller we would be happy to help you navigate that as well.

There may be more options for you than you know. The worst thing to do is not to ask for help. Hope you find some or all of the information that will be coming out over the next few weeks helpful and please feel free to hit the RSS button so you can get our blog directly to your favorite reader! RSS

Here is a great place to search and find everything from Notice of Foreclosure to REO (Bank Owned Properties) – Click Here to Find Salem Area Distressed Properties

Any questions please feel free to give us a call today at 503.945.0234 direct to our office.

Perfect Storm part 2

 Perfect Storm  was written because it seemed so amazing to me that more buyers were not getting into the market.  Since that post in February we have heard the threats of rising interest rates and hints that the bottom is near but that didn’t frighten anyone off the fence really.. There was more transactions written towards the end of the tax credit in April but many of them fell apart because from my angel the tax credit pushed folks to write an offer but it seemed that some of those people really weren’t ready to purchase and maybe got caught up in the excitement.  In fact we had 2 buyers back out of their deals because they had serious buyers remorse. 

Fast forward to today.  The rates today check them out http://www.bankrate.com/ are unbelievable today a FHA loan that requires a minimum of 3.5% down has a 30 year fixed APR rate of 4.669% that is incredible money.  Looking at the inventory in Salem Oregon that falls under the FHA guidelines for loan amount you can find some incredible deals. 

So this is clearly a strong buyers market but why are we not seeing those buyers swooping up the deals.  I think it really stems from consumer confidence, it has too.  The other part of it is that some many buyers were taken out of the market buy foreclosure or short sales. 

So if this a perfect storm why aren’t more buyers/investors getting into the market.  This article may shed some light on that.  An article in last Sunday’s Oregonian titled “Oregon foreclosure rate leaps 20 percent, leaving the state No. 3 in the country” read article here.  The nugget of the article and why people are on the fence is because at were we are right now in the country with housing and its tough state is because of 2.5 million foreclosures nationally, they predict a total of 6 million foreclosures will happen in the future.  That really makes people sitting on the fence wonder if they will find a much better deal and it also makes buyers think what will happen to my home value if I buy now and the prices go even lower. 

My only advice is that if you plan on buying and holding now is the greatest time in a long time to buy with cheap cheap money, tons of inventory and low prices you may want to take a hard look at this market. 

Real Estate Investors! stay tuned for some incredible properties with government financing programs available with as little as 10% down.  We are working on putting together an investor page with inventory and information on programs. 

Perfect Storm?

Is this the real estate perfect storm?  I don’t know how you can say it isn’t.

Coming from Bend, Or any market is going to seem better than what is happening in that poor town.  Salem is a breath of fresh air compared to Bend but still if you have lived in Salem and went through the bust as a buyer in 06, 07, 08 your feeling a pinch.  Your feeling major pressure on your home value and your equity.

All we hear is how horrible things are but maybe we should take a minute and think of the glass as half full.  Nationwide unemployment 9.7%.. very bad.. But, 90.3% of america is working.. and this is through the roughest recession we have seen in many years.

When I am out talking to buyers and sellers my mantra is this is the “perfect storm”.  The proof is in the pudding…

If you purchased a home in 2007 or 2008 yes you are underwater based on your purchase price.  But, if you sell at a loss you will be able to “move up” and get much more home than you could 2, 3 years plus the kicker, the sleeper, the reason for the season… Interest Rates.. the interest you pay on the money the bank loans you to purchase that undervalued home… way low… how bout a 4.75% FHA loan.. w/ 3.5% down.. UNBELIEVABLE! that to me is the perfect storm..   Great Prices, even better Interest Rates = the Perfect Storm.

We have seen a lot of new activity in all price ranges.. We have sold some homes recently that hasn’t seen offers in a year but what the buyers are all saying is that they feel rates are heading up and they don’t want to miss out on the perfect storm.. think about it?  Now is the perfect storm!!!