The real estate boom years between 2003 and 2008 created a unique phenomenon that changed the way we all classified a real estate investment.   Real Estate essentially overnight went from being a fixed asset on all of our balance sheets to about as liquid of an asset as cash.  If any of us wanted to make a real estate move, sell one piece, and buy another, it was almost as simple as trading in a car and getting a new one the same day.  Brokers had buyers waiting, money to facilitate your next purchase before selling your existing home was readily available, and presto, everyone made moves as easily as a Friday night Monopoly game. 

Fast forward to today and the landscape has changed dramatically.  We are back to normal and normal seems like the industry is moving like a tortoise.   Every move you make requires forethought, a strategy, implementing a plan, and patience.  Real Estate is once again back in the place it belongs on the balance sheet as a fixed asset.

To make real estate move today usually means you started working on this possibility 4 to 12 months earlier by studying the market, proactively maintaining your home to perfection, and carefully investing in the appropriate improvements in your home to compete in the marketplace.  You see today, there can be 100 homes for sale in a market and only 5 selling each month; meaning if you want to sell, you best be dressed for success.   What is more challenging is that the competition is stiff, bank foreclosures, short sales, distressed builders, and sellers who have been relocated, are all competing to be one of those next five sales. 

However, what is exciting is that for those who prepare, there are wonderful opportunities to capitalize upon.  While it seems ridiculous, fixed rate loans are at the record of all record lows at 4.5%.  The selection of homes to choose from is at a 10 year high, and from time to time a “great deal” may actually be a home you would live in.  But do know this, if you are interested in making a change, it requires time, effort, patience, and a plan.

From KATU News..

PORTLAND, Ore. – For about a month now it seems the only variety of weather we’ve seen is “showers to pouring rain.” Now the rain could set records for the Oregon and Southwest Washington area.

KATU Meteorologist Dave Salesky predicts Wednesday’s soggy weather will turn into a “monster of a storm” hitting the Pacific Northwest.

“We have a good chance of a 24-hour rainfall record for June,” Salesky said. The current record is 1.82 inches, set June 5 and June 6 in 1958. See the forecast for more rain and snow predictions.

Due to the rain, Portland’s Waterfront Village closed around 11:45 a.m. Wednesday. KATU Reporter Margie Lynch was at the scene, saying it’s a “muddy gooey wet mess” around the mechanical rides. No injuries or larger problems have been reported.

The decision to temporarily close the Rose Festival’s Waterfront Village was announced just before noon. As of early Wednesday morning thick, ominous clouds already hung over Portland. (See photo above.)

Despite the rain storm rolling in, KATU Reporter Valerie Hurst still found people out jogging and bicycling Wednesday morning. She also found a tourist who told us she gave up hot weather in Denver to be here.

“I’m finding your city very beautiful,” said tourist Jan Hicks. “I enjoy the rain … Denver’s been having some hot weather, so this is a switch.”

The commute has been a tough one on this rainy Wednesday. Rain blurred windshields and causing big backups as people in the West Hills merged onto Highway 26.  

The Portland Office of Transportation’s Cheryl Emma Kuck said crew’s preparations for the storm appear to have worked really well. Crews worked to clear drainage areas in the hills. The areas help guard against water running down hillsides.

Crews began clearing debris out of clogged basins as a preventative measure over the weekend. Homeowners who can’t clear their street-side debris to allow the water to flow can call 503-823-1700 to get help from the city.

“The ground is saturated,” reported Kuck in a prepared statement Wednesday. “Homeowners, especially in the hills, should watch for earth movement. Pay attention to property. Any sign of a trees leaning or earth movement and really soggy spots are signs of water underground and possible earth movement.”

In Lincoln County on Oregon’s coast we also have reports of scattered trees blown down as a result of Wednesday’s winds. 

Winds are expected to pick up later in the day. Sustained winds of 25 to 45 miles per hour should top out around 50 miles per hour.

Meanwhile, May was already close to a record-setting month for Portland rain. The city received 4.75 inches of rainfall in May, reports the Steve Pierce with the Oregon Chapter of the American Meteorological Society.

“This is exactly 200 percent of normal – of average – for the month of May,” Pierce said.

He said May’s total rainfall is the third highest on record for the month of May, trailing only 1996′s 4.88 inches and 1998′s 5.55 inches of rainfall.

“May also saw 22 days with measurable precipitation of at least 0.01 inch or more,” Pierce said. “This is also the first two back-to-back wetter-than-normal months at both Portland and Vancouver since fall of 2007 – nearly three years ago.”

Born and raised in Southern California, Roxann has spent most of the last decade in Portland.   A long-time resident of both the Forest Heights neighborhood and Lake Oswego, Roxann is intimately familiar with the west side of Portland, from North to South.

After graduating from Whittier College in Los Angeles, she spent much of her career in corporate America.   Working for an arbitration and mediation firm in the bay area allowed her to develop the critical negotiation skills necessary to assist people in finding common ground and achieving win/win solutions for both parties.  Roxann’s next opportunity as a sales representative for pharmaceutical giant, Abbott Laboratories provided the experience for aggressive top level prospecting and sales.

She has always had a passion for Real Estate. She bought, remodeled and sold several homes of her own in San Francisco, Portland, the Oregon coast and Boston, MA.  She is committed to service, and her strengths include professionalism, accountability, reliability, timeliness and enthusiasm.

Click on the image below to see the full RMLS report in PDF format:

Market Action Report

With the strong growth of Lee Davies Real Estate, it was only a matter of time before the company would look to add some specialized expertise in the terms of a managing broker.  In order to fill that role, a broker must complete additional schooling and years in the industry to obtain a principal broker’s license.  The principal broker’s primary role will be reviewing contracts for industry compliance and risk management. 

It is with great pleasure that Lee was reunited with Andrew Misk who Lee coached as an 8th grader some 18 years ago.  Andrew comes to us after eight years in the industry with both ReMax and Keller Williams Real Estate and is the perfect complement to LDRE.  Growing up in the Cedar Hills area then living downtown, and on the eastside, he knows Portland exceedingly well.  Andrew graduated from Sunset High School and went on to receive a degree at Texas Christian University (TCU).  He has extensive experience in foreclosures, short sales, as well as traditional real estate transactions.  We are thrilled to have a resource like Andrew to rely on for technical contract compliance as well as guidance for distressed sales situations, and look forward to seeing his real estate career grow further.

U.S. home prices rose in February for the first time since late 2006, but Portland was one of the few exceptions, with prices dipping 4.8 percent in the past year, according to the latest Standard & Poor’s Case-Shiller index.

Home prices were up 1.4 percent nationally in the index’s 10-city composite and up 0.6 percent in its 20-city composite. It was the first time both indices showed positive growth since December 2006.  For the month, home prices fell in 18 of the 20 cities in the index, including Portland, where prices fell 2.4 percent, the biggest month-to-month decline in the index.

• Portland, Charlotte, Las Vegas, New York, Seattle and Tampa posted new lows for home prices.
• Portland home prices have dropped 23 percent since the market peaked in July 2007.
• Nationally, home prices have returned to mid-2003 levels after peaking in mid-2006.

David Blitzer, chairman of the index committee, cautioned against using the overall improvement as a measure of improvement in the market.  “This simply confirms that the pace of decline is less severe than a year ago,” he said in a news release.  He attributed improvement in home sales, inventory levels and housing starts to the federal home buyer tax credit, worth up to $8,000 for first-time buyers who have homes under contract by April 30. The expiration of the credit and rising foreclosure activity mean the worst is not yet over.  “As these homes are put up for sales, we may see some further dampening in home prices,” Blitzer said in the news release.

The Case-Shiller home price index measures single family home prices. It has a base value of 100 based on home prices in January 2000.
Portland’s February home price index was 143.69 in February, meaning a $100,000 investment in 2000 now is worth $143,690. The Portland market peaked at 186.51 in July 2007.  Portland narrowly edged out Seattle’s index of 143.54. Seattle peaked at 192.3 in July 2007. Detroit remains the only city in the index with prices below 2000 levels. Its index is 70.50. It last exceeded the 100 level in January 2008.  Washington D.C., is the best market for long-term home appreciation with a February index of 176.49. Los Angeles was second with 171.82.
Read more: Home prices fall 4.8 percent – Portland Business Journal

TODAY’S MORTGAGE RATES
from Northwest Mortgage Group 

As of April 28, 2010 (1% loan fee applies)

Rates shown above are based on transactions with a 20% down payment, 1% loan origination fee, 740 credit scores, impounds for property taxes and insurance and 30-day rate lock.  Contact Jeanine Roe or Brian Page of NW Mortgage Group for more information at 503.439.9191.

If you were hoping to cash in on either of the home buyer tax credits you must have a home under contract by this Friday at Midnight and close on that purchase transaction no later than June 30, 2010.   The $8000 credit is available only to first time home buyers (folks who have not owned a home in more than three years) and the $6500 tax credit is available to buyers who have owned a prior home for at least five years.  If you have any questions, call your Realtor, lender, or tax advisor to learn more.

Roscoe Hemenway:

     Mr Hemenway was born in Cottage Grove, Oregon in 1899.  He graduated from the University of Oregon Architecture school in 1923 and promptly came to Portland.  His first design was for his sister and her husband at 3112  N.E. 17th Street in Irvington.  She lived in the home until she was 99 and it now has it’s second owner.  It has been updated a bit, but all the original moldings and decoration are still intact.  He practiced in Portland for over 30 years and was one of Portland’s most prolific Architects.  The majority of his designs are in the Colonial Revival style, but he also designed Mediterranean, 30s Modern, Ranch, and Tudor homes.  The majority of his homes are in Portland’s West Hills, yet he also designed in Irvington, Alameda, Colonial Heights, Eastmoreland, Raleigh Hills, and Lake Oswego.  Arguably his most famous design is the “Archbishops House” at the intersection of S.W.  Patton Road, S.W. Greenway, and S.W. Talbot Road.

    I’ve been lucky enough to have lived in a Hemenway on S.W. 17th in Portland Heights for many years.  There are several things about the home that impressed me; the quality of the craftsmanship, the overall floor plan, and the materials used.  What is most significant about a Hemenway house is the scale of the home.  He placed homes on a lot in such a way that takes full advantage of the surrounding landscape and views, yet each room was of a size that was pleasing to the eye and worked well with furniture.  He was known for his “Keeping Kitchens” which were a kind of Den/Family room off of his kitchens, his use of fine woods, and his high quality cabinetry.

     It is not known how many homes he designed and built.  Mr Hemenway died in 1957 at the relatively young age of 58 and while there are bits and pieces of information about him, there is no formal organization that studies and preserves his homes.

     I will be blogging every two months about Portland’s Architects and you can find it here on the Lee Davies website.  You can also contact me with any questions or comments.  I am one of Portland’s top Realtors specializing in Architecturally significant Real Estate.  Next up:  Wade Pipes.

by Mike Ness