The index measuring current confidence rose two points, from 12 in April to 14 in May.

Any reading under 50 still indicates the majority of builders view conditions as poor.

“The fact that the May [Housing Market Index] continued to tick up from April’s 5 point increase provides confirming evidence that the improved confidence level was no fluke,” said NAHB chief economist David Crowe. “This continued increase indicates that home builders feel we’re at or near the bottom of the market and that positive signs lie ahead for builders and potential home buyers, provided that builder access to production credit significantly improves.”

A separate index measuring expectations for the next six months rose three points to 27.

It is the first back-to-back increase in builder confidence since February 2008 and is now at its highest level in eight months.

Builders and Realtors are hoping lower prices and historically low mortgage rates will overcome tighter lending standards. The housing market may also benefit this year from an $8,000 tax credit for homebuyers.

Earlier this month, the National Association of Realtors reported pending sales of existing homes rose 3.2 percent in March, the first back-to-back increase in pending sales in a year.

In my 23 years of selling real estate, I don’t know if there has ever been a better time for first time homebuyers to get into the market.  Armed with record low 30 year fixed interest rates of 4.625%, an 18% reduction in home prices over the past year, a slew of homes on the market to purchase and now the $8,000 Home Buyer Tax Credit, this is an incredible opportunity.

What this means is that you will effectively be paid $8,000 (in the form of a tax credit, whether you paid the taxes or not) if you purchase a home.  This is truly an amazing opportunity.

Thanks to the American Recovery and Reinvestment Act of 2009.

• The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The credit is available for homes purchased after January 1, 2009 and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

To learn more, call Lee Davies Real Estate today.  If you qualify, then this is the time to move and we look forward to educating and representing you.

Portland homeowners have a new reason to thank FHA due to the recent increase in mortgage loan limits. Buyers may obtain a fixed rate loan up to $417,000 in the Portland, Vancouver with only a 3.5% down payment!
Even better yet, today’s rate is 4.5% fixed for 30 years!
To learn more, call Lee Davies Real Estate today and we will introduce you to our partners Brian Page and Jeanine Roe at Northwest Mortgage Group to determine which financing option is in best for you. While we love selling homes, our goal is to educate our clients first, so that they can determine if this is the right time to move. We look forward to guiding you.

There are many attractive solutions for Jumbo mortgages and, thanks to the fact that second mortgages do still exist, Jumbo buyers with 20% down, can take advantage of these incredible 4.625% conforming rates. 

To clarify, “Jumbo Buyers” refers to buyers who plan to finance more than $417,000, the conforming loan limit as established by Fannie Mae, Freddie Mac, and the federal government for Oregon.  Therefore, many people who want to purchase a $700,000 home, with 20% down payment, have not had the luxury of obtaining these recently available sub 5% rates.  In fact, Jumbo rates this past fall were generally above 7% and had a tremendous negative impact on the sale of homes above $500,000.

Last fall, a home purchase price of $700,000 with $140,000 down payment (20%), and a $560,000 loan at 7%, would have resulted in a monthly payment of $3,725 on a 30 year loan.  Today, thanks to lower interest rates and new programs, borrowers have many options to choose from for the same scenario.  Here are three options:

• Conforming first mortgages of $417,000 at 4.625% for 30 years creates a payment of $2144, and then add a second mortgage (US Bank) of $143,000 at 7.9% on a 20 year amortization for an additional $1187. The combined payment of the first and second would be $3331, resulting in a payment $394 lower today!
• Washington Federal now boasts Jumbo rates up to a loan amount of $600,000 at 5.75%. So, with our $560,000 loan amount the payment would be $3268 and result in a $457 savings.
• The ING 7 year A.R.M. will provide a buyer with a 4.875% fixed rate for 7 years. This translates into a payment of $2964 for a loan amount of $560,000 and a savings over last fall’s fixed rates of $761 every month!

These significant savings allows buyers to now comfortably afford a home they passed on last fall, or it could allow them to borrow an additional $100,000 while enjoying the same payment!  Combine this with the fact that prices are down close to 18% over last year; the news is tremendous for home buyers.

To determine what your best acquisition strategy is, know that each of these programs has it’s advantages for buyers who have different circumstances.  For the buyer who only wants a mortgage of $417,000, the second mortgage can be paid off quickly without payoff penalty, leaving one with the incredible long term rate of 4.625 for the life of the loan.  The Washington Federal program is terrific to have the security of a Fixed 30 year mortgage today.  And the ING A.R.M.  is a terrific loan for those who know they will live in the home for less than 7 years as well as it gives buyers the most buying leverage with the lower payment. 

To learn more, call Lee Davies Real Estate today and we will introduce you to our partners Brian Page and Jeanine Roe at Northwest Mortgage Group who will determine which financing option is in best for you.  While we love selling homes, our goal is to educate our clients first, so that they can determine if this is the right time to move.  Please consider us part of your consulting team.

Our series of free classes will be held at the Lee Davies Real Estate Office, 9200 SW Barnes Rd., Portland. Space is limited so please contact us to reserve your seat.

Preparing Your Home to SELL
Monday, May 4, 2009 at 6:00pm
Where to start? Learn our proven step-by-step plan to prepare your home for sale. Our panel will help you create an individualized house preparation timeline, outline simple steps to eliminate potential problems, give suggestions about decluttering, cleaning, repairing, and staging your home for a successful Open house. We will also offer personal assistance with attendees unique selling problems. Whether you know you will be putting your house up for sale right away or whether you are just beginning to plan for a future date, this course can help you maximize your profit and reduce your stress!
Call 503.292.1500 to Reserve Your Seat or email us at info@leedavies.com

Real Estate Investing
Monday, May 18, 2009 at 6:00pm
For those interested in investing in real estate, this class will help you learn what to look for, how to find it and calculate your potential return, then, determine your best approach. Our panel of speakers for this class will provide you with tax, mortgage and property management information. In addition, the Lee Davies Real Estate Buyer Brokers will share their Investor’s Picks and offer the opportunity to join our Investors’ Club to have access to our weekly Investors’ Top 10 Picks.
Call 503.292.1500 to Reserve Your Seat or email us at info@leedavies.com

On April 23rd, Donald Trump, chairman and president of the Trump Organization, went on CNBC and stated, “It’s one of the best times to buy real estate.  It’s an amazing time to buy, this is the best time I’ve ever seen to buy both real estate and probably other things.  This is one of the great opportunities.”

We agree, with prices falling in some cases over 20% in the past two years and with interest rates now at 4.625% down from 6.5% (Over 28% decline), home buyers and investors now can buy 40% more house today, than they could have in 2007!  What is even more impressive is that the inventory of available homes to choose from has quadrupled from 3,000 homes in the Portland Metropolitan market to 12,000 available homes, giving buyers the ability to carefully shop and locate the ideal property and perhaps negotiate a substantial discount.

But Trump also said that banks are unwilling to lend money to their customers unless they are willing to consider purchasing foreclosed homes. “If you go to a bank and ask for a mortgage because you want to buy a [non-foreclosed] house they won’t give it to you,” he said. “The banks are not lending. Despite what they say, the banks are not lending.”

Wrong!  Why Mr. Trump would make such a statement baffles us at Lee Davies Real Estate.  Perhaps this is the case in his home states of New York and Florida, but it is far from the case here in Portland, Oregon, where Lee Davies Real Estate just celebrated a banner sales month in March.  Our clients are easily obtaining incredible financing and we are closing transactions!
To see the CNBC news clip go to: http://www.cnbc.com/id/30367055/site/14081545

It is truly amazing what buyers have before them today. Financing is readily available and buying power has skyrocketed due to the recent correction in real estate pricing.
Today, if you don’t have a 30 year fixed rate mortgage under 5.5%, you should look into this tremendous time to either re-finance or make the move. While your home’s value is down, so is everything else you would consider buying if you are remaining in the same marketplace.
Lee Davies Real Estate can help you access to these programs, along with many others, through our relationship with Brian Page and Jeanine Roe at Northwest Mortgage Group. Even during these difficult times, they have performed flawlessly providing our clientele with financing at these incredible rates. Call our office today and we will get you scheduled today for a pre-approval appointment.

Portland was named the fourth-best housing market in the country by Forbes magazine, based in part on the latest S&P Case-Schiller 20-city home price index, published monthly.
Case-Schiller examines monthly and year-over-year declines in home prices, price-drop momentum and repeat home sales, among other factors. It does not include new construction or foreclosures.
The five best housing markets, according to Forbes and in order, are New York; Washington, D.C.; Charlotte, N.C.; Portland; and San Diego. The five worst housing markets are Las Vegas, Phoenix, Detroit, Minneapolis and San Francisco.

Below is the link for information about the $8,000 Federal Tax Credit for first time home buyers:
First-Time Home Buyer Tax Credit

Lee Davies Real Estate Featured in the March 09 issue of Ceder Mill News! Read it on the website at…
http://cedarmill.org/news/