PDX Real Estate’s Top Five Items to Know for Q4
1. The time to move up has never been better
Between the first time home buyer credit stirring up the lower end of the market, low interest rates, short sales, foreclosures, and sellers who are downsizing, the selection of homes between $600,000 and $1,500,000 has never been better. Sellers of homes between $300,000 and $500,000 should consider the leap more now than ever. Lower priced homes are holding steady in value and homes that require jumbo financing have become tremendous values as the number of qualified buyers have diminished in these tough times. However, if you are one of those buyers who may be in the position to upgrade, call us today and we would be happy to help you evaluate whether this is the right time to make your move. Also, remember that most lenders will no longer allow buyers to buy first and then sell their existing home, so if you would like, we can have one of our Lead Brokers visit your home and provide you with a price report and some general consulting to help you determine if now is the right time for you.
2. Less than 60 days left to qualify for the Free $8000 first time buyer credit
The published date for the end of the first time home buyer cash credit is December 1, 2009; however, what many buyers may not know is that your transaction must be closed prior to that date to receive the credit. This means one should effectively have a home under contract no later than October 15, 2009 in order to close on or before November 30, 2009. If you are considering new construction, you are most likely too late, and/or need to find a home that has a scheduled completion date prior to the November 30th deadline. Our buyer brokers are here to put their full resources toward your search and understand the intricacies of structuring your sale correctly to insure you receive your $8000.
3. Sales are increasing and this fall should see strong activity
Since May of this year, sales have been steadily increasing in the Portland market and the absorption rate has decreased from a high of 18 months of inventory in January of this year, down to 10 months today. Lee Davies Real Estate has also seen growing sales activity and is gearing up for a tremendous fall. There is a pent up demand for housing and the public is beginning to see that an 18% price correction may be as good as it gets. If the market does in fact decrease more, it most likely will not be substantial and, once the market turns upwards, it will be due to a lack of supply and strong demand. Year-to-date, our sales have increased each month and we expect September and October to be our two best months of the year. If you are considering selling, call Lee Davies or your broker today. This will be the best time to sell in the past 18 months with great (unprecedented?) opportunities to buy.
4. Prepare for longer closings and more delays
Amendments to the Home Ownership and Equity Protection Act and Truth in Lending Act which were made in 2008 have recently gone into effect. These federal regulations require extended wait times once the lender’s disclosures have been delivered to a borrower which could extend closing dates but can be managed if the buyer’s real estate agent and lender are diligent. An open line of communication must be taken with your lender with regard to any changes in down payment, interest rate, loan amount, fees, seller concessions, repairs, etc. so that the lender can re-disclose when necessary preventing a last minute wait period which extends past the scheduled closing date. A closing date of less than 30 days is still very possible according to Brian Page of Northwest Mortgage Group, however Lee Davies Real Estate is encourages scheduling closings 5-6 weeks out to be safe in the event of any unforeseen complications.
5. Lee Davies Real Estate Opens City office at the Uptown shopping Center
August 3rd marked the opening of our new Uptown office catering to Portland’s urban market. Our new boutique branch at 25 NW 23rd Place in the Uptown Shopping Center is beautiful and contemporary with signs up, fresh flowers in place and excitement in the air. This location is perfect for us to build on the success we’ve already achieved in Portland Heights, Forest Heights, the Alphabet District and the Pearl and provides a perfect location for our broker experts in these areas to conveniently connect with their clientele. Our expansion is featured in this month’s issue of the NW Examiner newspaper. Click here to view the full article.