According to a recent survey by Trulia¹ the American Dream of homeownership is alive and well.  

One interesting fact to me is that the number one concern of potential home buyers is the ability to save up a sufficient amount for a down payment. 

I find this  a bit ironic given the political trend to create an environment of even higher downpayments. As recently as this spring, regulatory agencies were working on rule making that would further increase the downpayment requirments. This was covered by The National Association of REALTORS^® (NAR) in REALTORS® Oppose High Down Payment Requirement for Qualified Residential Mortgage Exemption . 

The survey also covers the age demographics and ideal home sizes and locations.  Interesting information.  It’s worth a look.

 ¹ Trulia is a major site that provides information about real estate and homes for sale and rent

A New Resource for First Time Homebuyers

Coldwell Banker Corporation has just added a new resource for First Time Homebuyers to its web site ColdwellBanker.com.  The First-Time Home Buyer Resource Center includes videos, articles and tools to answer questions and guide new home buyers through the real estate search process.  If you’re thinking about buying a home for the first time in Corvallis, Albany, Philomath or for that matter, anywhere in Oregon or the U.S., this site would be worth a visit.

If you want to ask questions or need help buying your first home, Contact Dava.

Here’s today’s perspective on the real estate market from Greg Rand, OwnAmerica Founder

Greg is a regular contributor in print and on cable news and has a broad base knowledge on housing and the mortgage market.  He is one of the experts that was at the Coldwell Banker GenBlue Conference in Las Vegas (March 2011.)  I’m taking his class and can’t wait to see what develops. I’ve read his book Crash Boom! , was very impressed and think that what he has to say has value.

With loads of extras and a great new price this Philomath property (3201 Southwood Drive) stands head a shoulders above the rest. 

In addition to being very close to Corvallis (really a very short under 5 mile commute), great shopping, quick access to local employment areas including OSU and easy access to main transportation corridors leading  to the coast, highway 99 and Interstate-5), this beautiful, well planned home has many features not typically found in most homes.  A few of the highlights follow:

View from 3201 Southwood Drive

Whether you are thinking about a “move-up” to something larger (with potential for additional living areas), looking for single level living (finished living space 3 bedrooms/2 baths/kitchen/dining/living room and garage are located on the main level), shop space (daylight basement is huge with high ceilings and extra electrical), potential for dual living (finish the basement)  or have other needs, this home should be one you consider.

View details, additional photos, virtual tour and video tours regarding this property 3201 Southwood, Philomath.

Please join us for our first annual Winter Twilight Tour.

The agents of Coldwell Banker Valley Brokers will be hosting a festive winter themed Twilight Open House Tour this Sunday, December 19th, 2010 from 3:00-6:00 pm.  I have 3 homes open this weekend and have staged them specifically for this event, a fun and creative challenge.   

My listings that are open are:   

5168 Springhill Drive NW, in North Albany–hosted by Dava Behrens   

1730 Grandview Drive NW, in North Albany–hosted by Matt Gerst   

 4915 NW Lavender Circle, in Corvallis–hosted by Ana Norlander   

All are beautiful properties and offer different amenities and price ranges.   

Twilight Tour all open homes

An interesting item in DSNews: Economists Say Home Prices Have Already Hit Bottom

I’m glad that a panel of economists could read the writing on the wall:

 “When it comes to the distressed side of the business, it’s become clear that the nation’s high level of unemployment is now one of the primary triggers of default among struggling homeowners. Getting more people back to work is key to a recovery in housing and getting a handle on still-rising delinquency numbers.”  

Home prices in some markets have hit the floor, some may be rebounding and some may still experience a dip, it has a lot to do with what the local (key word here is “local”) economy is doing including housing inventories, the job market, business growth, and potentials for lender owned properties to come into the market (affecting inventory).

Locally, there are vast differences between markets that are virtually contiguous. For example, Albany and Corvallis have vastly different economic profiles. Philomath is a community adjacent to Corvallis; it’s small and often gets overlooked in “searches” (Realtor.com, Zillow, Trulia, and other real estate search sites.) One does not “compare’ properties in these differing markets against each other when attempting to establish a market value.

Job availability and types of jobs, growth rates, volume of new construction during the “boom” (which added to inventory), profile of homes built, price appreciation during the “boom”, supply and demand (including supply and demand for rental properties), homeowner and home buyer demographics all play into the availability, pricing and negotiability of prices. 

Further, “The group of economists is projecting gains in home prices of 1.2 percent over the course of 2011”, I personally find it inappropriate to make sweeping comments about “home prices”.  There is no “national real estate market” it’s all local. Saying there’s a “national average home price” or a “national median home price” is a little like saying there’s “a national average temperature” or “a national median temperature”.  Those kinds of statistics are a method of measuring change, but one should not take the figures and attempt to apply them to any specific market. 

Consumers, either Buyers or Sellers, looking to enter any market are best served to research that market, taking into consideration the local economy and local housing market prior to drawing conclusions. Investigate communities near-by. Good values can be found in surrounding communities. Don’t assume that the market where you are going is similar to the one from which you are moving. Let’s all just know that the key to any recovery is the strength of the local job market and get on with the business of living.

Three little things during the move–that I’d rather not have happened and how I might have prevented them.

1. My husband hit head on the light fixture that used to be over the table.  Table had been moved, but stuff was still being packed in that area.  This was not the first time for this bit of glass.  I worried about it a lot and generally had it protected (faked a table with boxes under it, but they got relocated and …)  I think for future if I have a light fixture like that, I’ll simply remove the glass to a safe place.  
2. Sudden loss of water at the new house. Ohhhh, freak out! I’ve not lived with a well before, so of course, all the worst case scenarios leaped to mind before we discovered that the cable guy had unplugged the pump.  Maybe there should be a sign that says “don’t unplug this” near the well pump.
3. Limited participation on my part.  I was busy, busy, busy with work. So a lot of the actual moving day stuff was handled without my assistance.  Perhaps this is a good thing, as I tend to the bossy side of life. Also, it was much less stressful for me, but still, stressful.  The good thing is, the work I did was very productive.

All in all it wasn’t a bad move. Everything made it here it good condition.  It will be a while before we find everything (especially since we’re starting a remodel as soon as we move in…).    The pre-planning and pre-packing was well worth the effort.

The Oregon Association of Realtors Reports the Following as of Today (07-01-2010):

Congress Extends Closing Deadline for Homebuyer Tax Credit 
After a close encounter with the deadline, the United States Senate passed an extension of the Homebuyer Tax Credit closing deadline last night. The extension applies only to transactions that have approved contracts in place as of April 30, 2010 and have not yet closed. The legislation should create a seamless extension and the new closing deadline for eligible transactions is now September 30, 2010. There will be no gap between June 30, 2010 and the date the President signs the bill into law.

It’s important to note that this does not extend in any way the time frame for buyer’s to make a contract or get into one. It helps the approximately 180,000 individuals that have already entered into binding agreements as of April 30th and have not been able to finalize their transactions–this is espeically true for those that are involved in Short Sale transactions or are bogged down in the lending process.

National Flood Insurance Extended

Last night, the Senate also passed the National Flood Insurance Program Extension Act of 2010, which extends flood insurance until September 30, 2010, and will allow transactions to move forward. The bill is retroactive and covers the lapse period from June 1, 2010, to the date the extension is enacted.

Hopefully, before September 30th, they’ll come up with a more permanent solution. The lack of flood insurance creates instablility in the market and is potentially damaging to many homeowners.

Lending News!

On June 1st, Fannie Mae instituted a new lending rule that is affecting all Conventional loans that could make the lending process take a little longer.

Fannie Mae Loan Quality Initiative:

For ALL new Conventional loan applications taken ON or AFTER June 1st 2010, the following will be required:

• Lenders will be required to pull an additional credit report prior to funding (closing) the loan. The purpose of this report is to specifically look for any new credit inquiries, new debt accounts, or increase in any existing debt accounts.

• If there are any new inquiries since the original credit report date, the buyer/borrower will have to submit a written explanation for those inquiries and whether any new debt was opened. The lender will have to also confirm whether any new debt was opened with any vendor for which there was a new inquiry.

• If any current liability balances (debts) have INCREASED since the first credit report, or if any new debts appear, the loan will need to be reviewed to confirm that the buyer still qualifies for the loan (a recalculation of debt-to-income ratios will need to be done).

• Any changes (as listed above) for either increased debt or inquiries will have to be sent back to underwriter for sign-off before final documents (loan papers needed for closing) can be sent to the title company.

Conclusion:

In light of these changes, it is really important that the buyer (or someone in the process of a refinance) avoid creating situation where additional inquiries on their credit (other than for homeowner’s insurance) are made… and even more important to NOT incur any additional debt.

From a practical standpoint, many people use credit for buying gas or food, and most people pay that off quickly. This probably won’t cause any issues, unless the client is right on the edge of whether they qualify or not. The main caution is to counsel clients to pay cash for major purchases … refrigerator, new home items, etc, if they plan to make a purchase during the loan process. Even better, hold off on those types of purchases until after closing, keep credit use at a minimum and hold on to your cash.

Any significant jumps in debt balances that show on the final credit report will have to go back to underwriting, and that will delay closing and could affect an approval.

This is a Fannie Mae rule, Freddie Mac’s rules are typically the same as Fannie’s and most lenders take the Fannie/Freddie guidelines and adopt them, even if they don’t sell the loans immediately.

Coldwell Banker Buyer Bonus Program

The Coldwell Banker Buyer Bonus Event is a three month-long national sales promotion that began on May 1st and ends on July 31st, 2010. These dates coincide with the end of the Federal Tax Credits and the objective is to maintain the momentum initiated by the government’s tax credits. The benefits of the Buyer Bonus program apply to a much wider audience of buyers than did the tax credits.

How it works: It’s not complicated. If a seller decides to participate in the promotion, they agree to provide the buyer, at closing, a credit toward allowable closing costs and prepaid expenses of 3% of the purchase price, up to $8,000. Buyer’s may take advantage of the bonus, but need to confirm that it will work with the loan program they have selected.

Coldwell Banker is investing in national advertising to promote the event. There are currently Coldwell Banker television commercials airing during the months of May, June and July promoting the event. The event is also being heavily promoted on ColdwellBanker.com with flash headers, and banner/buttons as well as a quick searches for Buyer Bonus participating properties. Coldwell Banker is promoting the program with messaging on Facebook and Twitter and with a consumer video on OnLocation (our YouTube Real Estate channel). Locally, properties participating in the event will have special sign riders, notations on property fliers, special advertising sections in the newspaper insert (This Week In Real Estate) and special logos on search results for participating properties on websites.

Benefits to sellers are additional exposure of your property through the extra advertising avenues available only to Buyer Bonus properties.