Statistics, the Media and Real Estate | The problems with housing market data: What does it all really mean?
The problems with housing market data: What does it all really mean?
I recently came across this blog post about housing market data, headlines and statistics. Honestly, I couldn’t agree more to what has been presented in terms of the daily news and how data is manipulated. Average, median and other “statistics” have even less contextual meaning in a “small” community because of the relatively small sample size and nearly no market significance when compared to an individual property.
The “quality” of the data has an impact. Is the reporting accurate? Do the reported sale prices include concessions (things the seller gives up to make the sale happen)? When a market has a limited data sample, the variances and inaccuracies have a larger impact.
Price per square foot has to be one of the worst benchmarks ever. Homes are not produce. They do not sell by the pound. Bananas are produce… Square footage is only one factor in determining price: style, location, fit & finish all affect price (and therefore price per square foot), lot size has an impact.
Another less than meaningful statistic is the “average number of days on the market”. There are too many factors influencing this number including: method of calculation for number of days; does a re-list count as new? does the days-on-market include the escrow period (it does here, and as such it’s a variable controlled by the needs of the clients, certainly not the “market”). There are plenty of other factors influencing how long a specific property is on the market (e.g. new construction listed prior to build out; poor location; unique style; condition of improvements, potential to obtain financing; price point…).
National statistics have very little meaning in a local market. It’s a little like trying to use the average temperature in the U.S. and compare it to a specific location. Not meaningful, especially if you’re in the warmest or coldest location. What’s more important is how robust is a local economy? How is the job market? What are the supply and demand levels?
As stated in the post, these kinds of statistics become more meaningful when compared to similar properties in similar neighborhoods.
The bottom line? The public needs to be very careful before they embrace any “news” with broad based statistical data. It’s interesting, but of limited value in a given market.
If you are interested in what’s happening in the Corvallis, Albany or other areas of the Mid-Willamette Valley, I’d be happy to help you figure out what the statistics mean to you.
Don’t Miss Out | Existing Homeowners may qualify too!
Don’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.
Important Items To Look For In A Home Inspection
Important Items to Look for In a Home Inspection
For Buyers and Sellers
Home inspections can vary from simple one page check lists to extensive multi-page documents. When evaluating written reports and/or selecting an inspector based on the report produced, there are several
important factors to consider:
- What is the scope of the inspection; what systems, fixtures, and components are inspected? Does the report include general information to improve the reader’s overall knowledge about the property in addition to reporting problems? How much of the property is inspected? Is there a systematic approach to the inspection? Knowing what is included in the inspection report is key to knowing if the inspection is thorough. Obtaining information about the status of all components (those in good condition as well as those needing attention) provides you with a benchmark of condition for ongoing maintenance.
- Is the report easy to read? Is the layout straightforward and is redundancy avoided? Is there a summary that supports the details? Are the items numbered and in categories that are easy to follow? A report that’s easy to read and identifies items by category and/or room as well as numbers makes communication with others regarding the findings easier.
- How detailed is the report? Does it include photographs of the findings? A picture paints a thousand words. Photographs make it easier to understand items included in the report.
- Is an electronic version of the report provided? Frequently the report needs to be distributed to others in order to work through negotiations and contractor evaluations. A report that’s easy to forward on to others streamlines those processes.
- How quickly will the report be provided? Often times there are tight time lines associated with negotiation of inspection related items. Prompt delivery of the inspection is an essential element of the inspection process.
- Does the report “package” include items of added value? Some inspectors provide coupons, home
maintenance checklists and simple home repair guides as added value to their reports. - Is the inspector available to answer questions after the fact? Being able to communicate with the inspector about the specifics of the report and clarification of findings helps simplify the corrective action process.
Recent Changes In Laws That Affect Oregon Real Estate
Recent Changes In Laws That Affect Oregon Real Estate
There have been a number of recent changes to Oregon laws that affect real estate transactions and real estate in general. The following are a few highlights of those changes. What’s important to know is that when it comes to your transaction, I take care of making sure you know what to do.
Residential Rental Smoking Policies and Rental Agreements HB 2135): Requires a rental agreement for a dwelling unit regulated under ORS chapter 90 to include disclosure of the smoking policy for the premises on which the dwelling unit is located. Must state whether smoking is prohibited, allowed on the entire premises or allowed in limited areas. Owner occupied mobile homes and house boats are exempt from the rental agreement requirement. Effective 1/1/2010.
Read the bill: http://www.leg.state.or.us/09reg/measpdf/hb2100.dir/hb2135.en.pdf
Disclosure of 100-Year Floodplain to Tenant (HB 2614): The law requires a landlord of a dwelling located in a 100-year flood plain to notify a tenant that the dwelling is in the flood plain. Allows the tenant who did not receive notification and then later experiences a loss to recover from the landlord the lesser of the actual loss or two months rent. Effective 1/1/2010
Read the bill: http://www.leg.state.or.us/09reg/measpdf/hb2600.dir/hb2614.en.pdf
Landlord May not Charge Tenant More than Landlord is Charged for Utilities (HB 2613): Amends the residential Landlord Tenant Act. Prohibits a landlord from billing or collecting more money from tenants for utilities or services than the utility or service provider charges the landlord. Effective 06/17/2009
Read the bill: http://www.leg.state.or.us/09reg/measpdf/sb0700.dir/sb0772.en.pdf
Additional Well Testing for Arsenic (SB 739): Requires a seller of real estate that includes a well that supplies ground water for domestic purposes have the well tested for arsenic upon acceptance of an offer to purchase. This is in addition to tests for nitrates and coliform bacteria (already required). Test results must be submitted to both the Drinking Water Program of DHS and the buyer within 90 days of receipt of the results. Effective 1/1/2010
Read the bill: http://www.leg.state.or.us/09reg/measpdf/sb0700.dir/sb0739.en.pdf
Oregon Homeowner Facing Foreclosure (SB 628): Foreclosure notices must now include new information about how to meet with their lender and how to request a loan modification. If so requested, the lender must meet with the borrower and evaluate the borrower for a loan modification before foreclosing on the home. The meeting can be by phone and it must be with a person who has or can get authority to do the modification. Effective 06/30/2009.
Read the bill: http://www.leg.state.or.us/09reg/measpdf/sb0600.dir/sb0628.en.pdf
Tenants Living in Property Subject to Foreclosure Sale (SB 952): Includes provisions to: require that tenants in good standing receive advance notice of foreclosure proceedings with specific information regarding tenants’ rights; allow tenants with fixed-term leases to stay after the foreclosure sale for the earlier of 60 days or until the lease expires, except when the purchaser intends to live on the property in which case only 30 days’ notice is required; provide tenants with weekly or monthly agreements with notice of the intent to evict 30 days after the date of the foreclosure sale; allow tenants receiving notice of foreclosure to apply pre-paid security deposits toward ongoing rent obligations (and relieves purchase of any obligations to return security deposits); and clarify that purchasers do not become “landlords” unless they accept rent from the tenants, enter into a new rental agreement, or fail to terminate the tenancy as provided by this bill. Effective 8/23/2009
Read the bill: http://www.leg.state.or.us/09reg/measpdf/sb0900.dir/sb0952.en.pdf
Carbon Monoxide Detectors (HB 3450) Includes provision to: prohibit title transfer of single family dwelling or multifamily housing containing carbon monoxide source unless there are properly functioning carbon monoxide detectors at locations that provide carbon monoxide detection for all sleeping area; allow for civil action to recover damages, attorney fees and costs for violation; allow State Fire Marshall to adopt rules establishing standards for carbon monoxide detectors and requires adoption of rules for alarms in existing housing; require landlords in multi-family housing to maintain carbon monoxide detectors in units; prohibit tampering with installed detectors; and require all rental housing to have alarms in place by April 1, 2011. Pending rule making, Effective 6/25/2009.
Read the bill: http://www.leg.state.or.us/09reg/measpdf/hb3400.dir/hb3450.en.pdf
Transfers of Real Property Interests(HB 2481): The law prohibits conveyance of an agreement for transfer of real property that imposes fees or other consideration upon actual or purported future transfer of the property. Certain exceptions are allowed. Effective 06/17/2009
Read the bill: http://www.leg.state.or.us/09reg/measpdf/hb2400.dir/hb2481.en.pdf
Document Recording Fees (HB 2436): Adds a new $15 fee to the existing fees pertaining to deeds and mortgage records filed with county clerks (with same exclusions). The fee imposed by this measure will be collected by counties and deposited into specified accounts within the Housing and Community Services Department for affordable housing-related programs. Effective 09/28/2009
Read the bill: http://www.leg.state.or.us/09reg/measpdf/hb2400.dir/hb2436.en.pdf
How Would You Spend Your Tax Credit?
How Would You Spend Your Tax Credit?
COLDWELL BANKER REAL ESTATE STUDY FINDS CONSUMERS’ ANTICIPATED ‘SMART SPENDING’ OF HOMEBUYER TAX CREDIT WILL AID ECONOMIC RECOVERY
83 Percent of Current Homeowners Surveyed Say They Would Spend Tax Credit on Repaying Existing Debts, Home Improvements, Savings/Investments and Household Expenses
Coldwell Banker Real Estate LLC today announced the findings from a new survey that looked at how the recently expanded federal homebuyer tax credit, which opened up the credit to existing homeowners, might impact the economy. Of the more than 1,000 homeowners surveyed, 83 percent responded that if they were to purchase a home and qualify for the tax credit, they would engage in “smart spending” or put the money toward paying off existing debts, home improvements, savings/investments, or everyday household expenses. Only 6 percent of respondents indicated that they would spend the money on what are commonly referred to as luxury items such as a vacation or a shopping spree.
According to the survey, the top way homeowners would spend their $6,500 tax credit in a “smart” way would be to pay off debts (34 percent), followed closely by making home improvements (29 percent) and putting it into savings and investments (28 percent).
In addition, Coldwell Banker Real Estate found that 20 percent of homeowners indicated they were more likely to consider purchasing a home than they were six months ago, after learning about the $6,500 federal tax credit. The tax credit, which previously only was for first-time homebuyers, is now available to existing homeowners who sign a binding contract before April 30, 2010 and close on the purchase of a home before June 30, 2010. To learn more about the details of the expanded homebuyer tax credit, go to www.coldwellbanker.com
If you’re considering purchasing a home in Corvallis, Albany, Lebanon or Philomath (and surrounding areas of the mid-Willamette Valley); I’d like to help you meet your goals. I work with buyers and sellers at all price levels. Please get in touch and we can get started today.
Other resources for information about the tax credit:
National Association of Realtors frequently asked questions about the tax credit
I.R.S. information abut the tax credit
Albany, Oregon | Absorption Rates through November 2009
Includes all single-family residential properties on less than two acres
as reported by WVMLS.
Data taken from WVMLS 12/9/2009
| Price Range | Active Listings as of 12/9/2009 | Sold Listings Last 6 Months | Average Sold Per Month | Months of Inventory | Av. Days on Market Solds |
| $0 – $99,999 | 18 | 17 | 3 | 6 | 104 |
| $100,000 – $149,999 | 60 | 73 | 12 | 5 | 116 |
| $150,000 – $199,999 | 123 | 129 | 22 | 6 | 121 |
| $200,000 – $249,999 | 83 | 63 | 11 | 8 | 165 |
| $250,000 – $299,999 | 45 | 35 | 6 | 8 | 180 |
| $300,000 – $349,999 | 28 | 10 | 2 | 17 | 116 |
| $350,000 – $399,999 | 19 | 8 | 1 | 14 | 240 |
| $400,000 – $449,999 | 3 | * | 0 | * | * |
| $450,000 – $499,999 | 1 | 1 | 0 | 6 | 78 |
| $500,000 – $599,999 | 3 | 1 | 0 | 18 | 157 |
| $600,000 – $699,999 | 1 | 1 | 0 | 6 | 337 |
| $700,000 + | * | * | 0 | * | * |
| 384 | 338 | 9 | 161 |
Expanded and Extended Tax Credit Information–From the Expert
Questions and Answers from the Expert about the Expanded and Extended Tax Credit
Sellers and Buyers in and around the Corvallis and Albany, Oregon real estate markets can benefit from a clear understanding of the opportunities the Expanded/Extended Home Buyer Tax Credit provides.
An excellent source for answers to questions you may have about the expanded and extended tax credit for First Time Home Buyers and Long Time Home Owners that are thinking of making a change can be found at the Q & A page for the I.R.S. The ultimate resource for information about taxes, tax credits and all other information that relates to the Expanded and Extended Tax Credit for buying a home.
It is possible to have parent (or other family members) assist in the purchase and still be eligible for credits.
If you are currently a homeowner and meet the other requirements, you do not have to sell your existing home (you could rent it out), but you do have to occupy the newly acquired home and meet all the other requirements.
You do not have to “buy up” or, in other words pay more for the new house.
Read the Questions and Answers about the tax credit for Home Buyers. This is truly a limited time opportunity.
I.R.S. Information about the Expanded and Extended Tax Credit
As always, seek the advice of a qualified tax advisor if you have questions about tax laws and how they pertain to personal circumstances.
Coming Soon | 5 Bedrooms | 3.5 Baths | $399,900
I have a another new listing coming on the market very shortly and just wanted to let everyone know about it before it gets here!
This dream home located in North Albany is complete with all the amenities. Chef’s kitchen with dramatic black granite counter-tops, spacious island, stainless steel appliances, and stunning wood cabinets, combines with dining area and family room to create “Great Room” style living. Spacious and bright main level has formal living room with gas fireplace and formal dining room. Upper level master suite features gas fireplace, jetted tub, and huge walk-in closet. Second master suite on the main level is ideal for guests or extended family living. Excellent outdoor living spaces, pond with water feature, underground sprinklers, and RV parking. 5 bedrooms, 3.5 baths, approximately 3733 sq. ft.
Located east of Corvallis and easy commute to Corvallis employment, including Oregon State University.
Albany, Oregon | Absorption Rates through October 2009
Includes all single-family residential properties on less than two acres
as reported by WVMLS.
Data taken from WVMLS 11/10/2009
| Price Range | Active Listings as of 11/10/2009 | Sold Listings Last 6 Months | Average Sold Per Month | Months of Inventory | Av. Days on Market Solds |
| $0 – $99,999 | 19 | 11 | 1.83 | 10.36 | 121 |
| $100,000 – $149,999 | 59 | 65 | 10.83 | 5.45 | 117 |
| $150,000 – $199,999 | 110 | 115 | 19.17 | 5.74 | 123 |
| $200,000 – $249,999 | 87 | 62 | 10.33 | 8.42 | 164 |
| $250,000 – $299,999 | 42 | 31 | 5.17 | 8.13 | 168 |
| $300,000 – $349,999 | 29 | 10 | 1.67 | 17.40 | 165 |
| $350,000 – $399,999 | 18 | 6 | 1.00 | 18.00 | 215 |
| $400,000 – $449,999 | 3 | * | 0.00 | * | * |
| $450,000 – $499,999 | 1 | 1 | 0.17 | 6.00 | 78 |
| $500,000 – $599,999 | 3 | 1 | 0.17 | 18.00 | 157 |
| $600,000 – $699,999 | 2 | 1 | 0.17 | 12.00 | 337 |
| $700,000 + | 1 | * | 0.00 | * | * |
| 374 | 303 | 10.95 | 165 |
House of Representatives Approves Tax Credit | Bill Signed by President
Update: Bill signed into law by President Obama this morning. 11/06/2009
Now, it’s on to President Obama for signature in the next few days.
Here’s a chart of the differences between the existing tax credit and the revised (primarily there’s provisions not just for First Time Homebuyers but also for those that have owned a home and are purchasing a replacement property.) There are many fine points to the changed tax rules. It is in your best interest to get advice from qualified tax professionals and understanding your options in relation to these “new” tax guidelines.
The Home-buyer Credit is an amendment (S. A. 2712) to the Unemployment Compensation Extension Act (H.R. 3548)
(click on chart for a larger view or use your zoom tool on your browser)
This should prove to be very helpful for buyers and sellers in the Corvallis, Oregon and surrounding markets of Albany, Oregon; Philomath, Oregon; Lebanaon, Oregon and Linn and Benton County by creting movement throughout the market, not just in the “first time homebuyer” segment.
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