Archive for Corvallis Real Estate

An Opinion About the Real Estate Market (Corvallis and other markets)

Opportunities in the Corvallis Real Estate Market (and possibly in many other markets)

I replied to a face book post and was so inspired I may have gotten carried away. I wrote a lot about my opinions about the current market, the past market and hopefully will lead some to think about future markets. Corvallis and the mid-Willamette Valley has not been unscathed by the recent real estate downturn. However, all is not doom and gloom. This is what I wrote, for what it’s worth:

Every market has its opportunities; it’s how you position to take advantage and where you are in terms of need…

The insane market of the mid-2000s was not normal, it was an anomaly. So expecting or even wishing for a return to that type of craziness just doesn’t make sense. Labeling a market as hot or cold doesn’t make sense either. It depends on for whom it’s “hot” or “cold” and the perspective of the parties involved. We had situations here where buyers were so priced out they couldn’t move quick enough to buy. Yet, sellers made “killer” returns.

Now, it’s a better time for that buyer and for long term investors, they have more choices and can make intelligent decisions instead of jumping in because everyone else is. Those that have held their real estate long term have still made a return on their investment (think of the down payment and closing costs when you think of the investment). And, all the while have had a roof over their heads (for the most part).

There was a huge shift in the attitudes of buyers/sellers in the mid-2000s where the public seemed to think that real estate could be a short term investment (evidenced by a lack of good judgement eg. buy high, hold short, flip, use consumer credit to finance purchases and so forth). That attitude created a driven market that was out of whack with reality. For real estate to be considered an investment it needs to be a long term proposition. An important shift occurred, at the root was the loss of jobs, confidence in the financial markets and in particular housing crumbled and the market turned.

Owner occupied real estate really is an investment in life-style and has some “investment” benefits that renting does not provide (forced savings in the form of principle reduction; tax benefits and over the long haul the potential to appreciate), while still providing the all important shelter. With long term interest rates somewhere in the mid 4’s, those that can buy, who want to be homeowners, and who believe they have the financial fortitude to buy, may be well served to consider a purchase. Home prices are more affordable in many market; inventory is available in many markets, those factors coupled with record low interest rates create opportunity in today’s markets.

This is a market place where buyers and sellers can benefit from the long term knowledge of an experienced agent. What we do is not as easy as it may appear. As in every industry there are those that have a strong commitment to their craft and those that do not… Buyers and Sellers would be well served to seek out and agent that approaches their business as a business.

SOLD! HOME FOR SALE – 4614 SW 47th Place Corvallis Oregon

SOLD!

Home For Sale – 4614 SW 47th Place, Corvallis, Oregon – Light, Open, and Charming

Beautiful, light and open floor plan lives big! Newer 5 bedroom, 2.5 bath home is located on a quiet cul-de-sac and is private and secure. Convenient to local schools and parks including Starker Arts Park and recently renovated Sunset Park, Corvallis Country Club and Golf Course, Oregon State University campus, hiking and biking trails, and has easy access to Corvallis and Philomath. 5 Bedrooms, 2.5 Baths, approx. 2538 sq. ft.
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A great place to live, with plenty of opportunity for play and relaxation. As you enter from covered porch you’re greeted by beautiful black walnut wood flooring, vaulted ceilings, wide expanses of glass and a warm and inviting gas fireplace. The great room kitchen has painted wood cabinets and granite counter-tops; a planning station and generous amounts of counter top area and cabinets –a place for everything and everything in its place. Plenty of lighting and glass block accents make it light and appealing. The kitchen – family room lay-out provides for plenty of room for friends and family to gather round. Island with seating provides a great prep area. Breakfast nook opens out to backyard and covered patio. An ideal area for barbeques, outdoor relaxation, and play. Additional spaces that round out the main level include one bedroom — perfect for office or den, a half-bath and spacious laundry room.

Upstairs find rest and relaxation in the spacious master suite. Features include double door entry and private adjacent bath with separate shower and tub, double sink vanity, separate toilet room.  There’s a spacious walk-in closet with organizers.  Three additional bedrooms and a full bath upstairs round out this level.

Other features include: closet organizers, ceiling fans, view of Mary’s Peak from one bedrooms, spacious linen closet and a laundry chute, 2 car attached garage.  There are no age restrictions in this neighborhood.

Search for more homes in Corvallis here

Corvallis Real Estate Projection | Corvallis sits at #7 with projection of 4.1% Increase

Most recent Money Magazine projections…

Money Magazine’s latest projections for some of the Nation’s largest metro areas places Corvallis, OR as a top gainer in real estate price appreciation for the period Q1 2010 – Q1 2011 at average price increases of 4.1%.  Good numbers in a sluggish economy, but fairly close to expected numbers in a “typical” year.  Eugene, OR ranks #25 at 1.6%

Check out the snap shot synopsis of why Corvallis…

So, is it a Good Time to Buy Real Estate in Corvallis, Oregon? 

1) Low Interest Rates

2) Federal Tax Incentives

 and

3) Value Increase Projections… 

What do you think?

SOLD! HOME FOR SALE — 712 NW 32nd Street Corvallis Oregon

SOLD!

HOME FOR SALE — 712 NW 32nd Street, Corvallis Oregon

Desirable Oregon State University campus close location combined with tons of character plus BONUS detached studio create a charming and flexible home for you and yours. Open and light floor plan lives big. Oak flooring and arched passages create a warm and inviting atmosphere. Studio/bonus space provides many uses, from craft space to play room to home office, you choose. Garden shed is great for tool storage/bikes and work area. Private back yard has plenty of room for play, relaxation and gardening with fig, apple and cherry trees. 2 bedrooms, 1 bath, approximately 810 sq. ft. plus bonus room of approximately 240 sq. ft.

Located in a desirable neighborhood, close to the Oregon State University campus, local parks and schools, shopping, dining, and downtown Corvallis. Enjoy being within close distance to the First Alternative Co-op, Sam’s Station, and Schmidt’s Garden Center.

Warm and inviting atmosphere is created with an open and flexible floor plan that includes living room, kitchen with eat-in area, mud room with laundry, bedroom, full bath, and master bedroom. Oak flooring and arched passages add to the charming character of this home.

Private and detached studio/bonus room provides many uses, from craft space, play room, home office, guest quarters, home gym or more, you choose!

Garden shed is a great place for tool and bike storage, work area, or could be converted to a play house. Large, private backyard has plenty of room for playing, relaxation, barbeques with covered patio, hanging out with friends, and gardening with raised planting beds and fruit trees.

Related links to the extended home buyer tax credit:

Home Buyer Tax Credit De-Mystified

Expanded and Extended Tax Credit Information

Search for more homes for sale in Corvallis here.

Temporary Refinance Programs Extended–Home Affordable Refinance Program

The administration has extended the Home Affordable Refinance Program until June, 2011.  It was set to expire June, 2010. 

HARP benefits a borrower who has demonstrated acceptable payment history on their mortgage and needs an expanded Loan-To-Value ratio or potential relief from Morgage Insurance requirements for FNMA (Fannie Mae) & FHLMC (Freddie Mac) loans.  for more information call your current servicer for details.  This may be a way to lower your payment, allowing you to benefit from lower interest rates, even if your house has not gone up (or has gone down) in value.

SOLD! HOME FOR SALE – 550 NW Witham Drive, Corvallis, Oregon

SOLD!

HOME FOR SALE — 550 NW Witham Drive, Corvallis, Oregon

Solid single level in great location just blocks from Oregon State University and with easy access to downtown Corvallis. Great floor plan with separate family room that opens out to backyard. Kitchen and dining area combo has large windows, neutral counter-tops and  new vinyl flooring. Overall the feel is light and bright. Wood burning fireplace in living room. Generous use of wood floors in bedrooms and living room. Large .23 acre lot with established landscaping, sprinkler system, and wide paved side yard. 3 bedrooms, 1.5 baths, approximately 1,327 sq. ft.

Solid single level home located just blocks from the Oregon State University campus is perfect for Beaver fans, and is a great buy for investors, first time home buyers, or those down sizing. The count down is on for home buyers who are eligible for federal tax credits. Take advantage of other local amenities like the Benton County Fairgrounds, local parks, hiking and biking trails, and Irish Bend Covered Bridge and enjoy easy access to shopping and downtown Corvallis.

Open floor plan feels spacious and bright. Kitchen and dining area have large windows, neutral countertops, and new vinyl flooring. Living room is warm and cozy with wood fireplace with stone hearth and large windows to bring in the natural light. The family room is a great multipurpose area for play, tv, crafts, office space or you decide; complete with new carpet, large windows, and access to patio and backyard.

Master bedroom is light and bright with hardwood floors and large window. Attached half bathroom connects to the main bathroom allowing the master bedroom access to the shower and bathtub.

Enjoy outdoor spaces with paved side yard and large backyard with patio. Large nearly quarter acre lot is big enough for gardening, play structures, or other backyard dreams. Complete with sprinkler irrigation system to keep established landscaping green and lush year round.

Other amenities include:
•    Attached 2 car garage with laundry facilities
•    Air conditioning and gas forced air
•    2 additional bedrooms
•    Generous use of hardwood flooring
•    Approximately 1,327 sq. ft.
•    .23 acre lot

Related links to the extended home buyer tax credit:

Home Buyer Tax Credit De-Mystified

Expanded and Extended Tax Credit Information

Search for more homes for sale in Corvallis here.

Corvallis Included in 5 Metro Areas on the Real Estate Mend…

Corvallis, Oregon included in top 5 metro market that show promise.

Smart Money, part of the Wall Street Journal digital network is reporting that overall the real estate market is not looking good (of course, there is no such thing as a national real estate market…but that’s another discussion).  However, there are a few “pockets” that are seeing “strength” in the market.  Corvallis, Oregon is reported as being third of five of the best performing markets derived from a model created by Moody’s Economy.com which evaluated 384 metro areas.  Read the full Smart Money  article here.

It’s great for Corvallis to get this kind of press.  The real estate market is not all doom and gloom.

Corvallis, Oregon Real Estate Market: Over or Under Valued?

Corvallis, Oregon Housing Market Ranked 9th Most Over Valued – Is that a Fair Assessment?

Recently, I answered a posted question on Trulia.com, which related to a CNNMoney.com post that ranks Corvallis, Oregon as the 9th most overvalued housing market.  I’ve been asked about the study in person a few times… here’s what I think.

The study was done by IHS Global Insight and PNC Financial Services. The terminology used are “overvalued” and “undervalued”.  The study ranks Corvallis, Oregon as  the 10th  most “overvalued” market  in the study (there were only 399 markets included in the study—one has to wonder about the sample size) .

On one hand I’m completely aghast at the use of the terminology.  The definition of market value is “a price at which buyers and sellers are willing to do business” (Webster’s ninth new Collegiate Dictionary).  So, by the very definition of market value, how can a market be “over” or “under” valued? The published article is unclear about what the “percent” relates to (percent of what?).  Is it the number of homes on the market that are “over/under valued?” Or is it the total number of homes in the community (if so, where did they get that “value” from)?  Is it a comparison of number of home on the market or sold in relation to the median house price?  None of the data I reviewed tells you what any of it really means.  I searched the web in general  and the web site for both PNC Financial Services and IHS Global Insights could not locate to the actual study.

With only a surface evaluation at my disposal, I have to say, I am more than a little skeptical about comparisons or rankings of such diverse cities.  Seriously, Corvallis is in a list with Honolulu, Hawaii; Bangor Maine;  and Bakersfield, California? Not much commonality. Perhaps it would make more sense to compare college towns to college towns (See the Coldwell Banker  Home Price Comparison Indexes — there’s one  index for College Towns and one for select markets) or towns with similar features and sizes.

The study says it is based on select data: “These judgments are determined by comparing median home prices, local interest rates, population densities and income, plus historical premiums or discounts that areas have exhibited over time.”

 If you want to look at the “premiums” that Corvallis has to offer and length of time for the “history”, I have to say, Corvallis is not the same place it was 20 years ago. What are the “historical premiums or discounts”, and who is deciding which of these factors is significant. The term “overvalued” may be relative to who is doing the shopping and what the current “premium” list is…

How long is the history? It does not appear that there is any consideration for supply and demand; and important factor in a community like Corvallis.

Interest rates are very much based on national pricing (at least as long as Fannie Mae and Freddie Mac are still around) not locally set, so the rate climate really has a limited effect. 

Corvallis is a very small market. Median home prices fluctuate (and drop) when the upper end of the market is slow and/or when there is limited inventory in the entry level available. For a significant portion of 2009, entry and mid level housing was more active than any other price point because of low interest rates, inventory and tax incentives. When more homes sell in the entry and median levels, the median and/or average is bound to move down. It is simply how the math works (Median is the center point between the highest high and the lowest low, more weight at the lower end, drives the median down.) Based on what I know about individual home sales and the market in which I work, I am not clear on how the median can be a valid statistical point in our market. The sample is simply too small.

The variance in the study between 2006 and 2010 for Corvallis is under 5%–many of the communities on either end of the scale exhibit much wider variances between  the 2006 study and the 2010 study. That (almost 5%) is not much of a difference when you are comparing the same figure to other communities. To me it is an indication of a comparatively stable market (relative to the overall economic climate). Other communities, especially those where the bottom dropped out, show wider variations. The communities that are now rated extremely undervalued took big employment hits, have high foreclosure rates, did not control growth and/or a combination of those factors.  

Do not get me wrong. I do not think that any community that is immune to the impact of the current economy. However, I do not think that we are in for the fall that one might derive from this report. Jobs will determine that.

It was not until this last housing cycle that homes were considered short-term investments. In the past, most investors were looking at purchasing investment properties on the basis of cash-flow.  Appreciation was a bonus. Flipping was done only by the most experienced investors and with appropriate types of financial backing.

The last paragraph of the article is the most significant. “The bottom line, at least for a few years, is that the average buyer should forget about home purchases as investments. The good news is that, long-term, their home values should appreciate.” That sounds more like a return to normal to me.

I’d like to know what you think?  Please post your comment or question.

Don’t Miss Out | Existing Homeowners may qualify too!

home_eligibility_buttonDon’t Miss Out!

Some existing homeowners who purchase a replacement personal residence may qualify for a tax credit as well.  Here’s a link to a guide that can help you determine if you qualify or not. Timing is crucial and of course, check with your tax advisor for complete details. This eligibility test works for either existing homeowners or first time homebuyers.

Tax credit timing:  You must be in a contract by 4/30/2010 and close by 6/30/2010 to qualify.  We are not anticipating this credit to be extended.  The industry leaders that worked so hard to accomplish getting this credit passed, have publicly stated that they will not be asking for more.

If you’re interested in buying, time is running out; you need to get into the market sooner rather than later.  I specialize in residential real estate in Corvallis, Albany, Philomath, Lebanon and surrounding areas of the mid-Willamette Valley in Oregon.  I’d be happy to help you work your way through the process.

Check to see if you qualify for a home buyer tax credit (first time or current homeowner)

Note: Test provided by Alishia Jones, Mortgage Loan Officer, Bank of America, Corvallis, Oregon.

Money Matters

Money Matters

  • Federal Housing Administration (FHA) is rolling out new guidelines soon (April) for their loan programs, increasing the up-front Mortgage Insurance Premium (MIP) to 2.25% (currently at 1.75%).  For every $10,000 in loan amount, this translates to a cost of $50.00 extra in closing costs.  For example, if you were to borrow $200,000 the additional cost would be $1,000.
  • FHA is also reducing the amount that a seller can contribute toward closing costs from up to 6% of the purchase price to 3%.
  • The first time homebuyer credit is expiring soon as well.  April 30th is the deadline for a written contract to be in place; June 30th is the last date for that contract to close.
  • Attention existing homeowners; you too may be entitled to a tax credit.  There are many out there that are unaware that if you purchase a replacement primary residence (in contract by April 30th, Closed by June 30th) you may qualify for a $6,500 tax credit.


(Certain conditions apply for transactions to be eligible for tax credits—check this web site: http://www.homebuyertaxcredit.com/  and get advice from your professional tax advisor)

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