TIMING IS EVERYTHING AND NOW MAY BE THE TIME TO BUY!
by Lee Davies
Here is why:
Sales: Increased 21% from 1412 in July 2010 to 1709 in July 2011.
Pending Sales: Increased 18.4% from 1629 in July 2010 to 1928 in July 2011.
New Listings: Decreased 27% from4029 last July to 2942 in July 2011.
Average Price: Decreased 7.4% from 297,000 last July to $275,100 in July 2011.
Interest Rates: Lowered and one can get a 4% fixed rate mortgage for 30 years
Case Schiller Report States: “ Portland residential real estate continues to become dramatically more affordable. From the high point in August 2007 (187) to current (134) Portland residential Real Estate has become 28% more affordable.”
Under the current economic conditions, it would seem apparent that at least the starter home market will stabilize here in Portland and one can lock into a fabulous rate while buying a greatly depreciated property. If this July over July trend is to continue, inventories will continue to shrink and thus stabilize if not begin to put upward pressure on the market. While this all may be premature, as many experts still feel that there is a “double dip” in our future, the fact is that if you are going to own your next home for five years or more, it will be tough to lose by locking into today’s pricing and interest rates and the upside possibilities are more probable.
We have compiled seven of our current lower priced listings for those of you looking to guide your child into their first home, or perhaps are considering “downsizing”. While our average sales price at Lee Davies Real Estate was $513,000 last year, the fact is we proudly enjoy working with first time buyers and take great pride in helping families re-position themselves into the ideal long term downsizing home. Below are the homes along with some possible financing options (click each title to see property details):
All financial projections are approximate and based on the buyer paying the full asking price; however, it can be anticipated that most sellers will be negotiable.
Claremont Townhome $299,900:
With a 20% down payment on a 15 year fixed rate mortgage, current reasonable rate available would be 3.25% (0% Loan Fee)
Cash to close this transaction would be $66,800; however, if negotiated, the seller may pay up to 6% of the buyer’s closing costs which would lower the buyer’s cash out of pocket to $60,800.
The monthly principal and interest payment would be $1686 plus taxes and insurance.
Beaverton Home Backing Greenspace $209,900:
With 3.5% down payment on a 30 year fixed rate FHA mortgage, current rate available would be 4.125% (zero points)
Cash to close this transaction would be $13,400; however, if negotiated, the seller may pay up to 6% of the buyer’s closing costs which would lower the buyer’s cash out of pocket to $7,350.
The monthly principal, interest and MIP payment would be $1186 plus taxes and insurance.
Luxury Tigard Townhome $210,000:
With 5% down payment on a 30 year fixed rate FHA mortgage, current rate available would be 4.25% (zero points)
Cash to close this transaction would be $16,376; however, if negotiated, the seller may pay up to 6% of the buyers closing costs which would lower the buyer’s cash out of pocket to $10,500.
The monthly principal, interest and MIP payment would be $1175 plus taxes and insurance.
Pearl Dist. Condo $459,000:
With 30% down payment on a 5 year adjustable rate mortgage, current reasonable rate available would be 2.875% (1% loan fee)
Cash to close this transaction would be $147,888; however, if negotiated, the seller may pay up to 6% of the buyer’s closing costs which would lower the buyer’s cash out of pocket to $137,700.
The monthly principal and interest payment would be $1333 plus taxes, insurance and HOA fees.
Sherwood Condo $99,900:
With 3.5% down payment on a 30 year fixed rate FHA mortgage, current rate available would be 4.125% (zero points)
Cash to close this transaction would be $8,630; however, if negotiated, the seller may pay up to 6% of the buyer’s closing costs which would lower the buyer’s cash out of pocket to $3,500.
The monthly principal, interest and MIP payment would be $564 plus taxes and insurance.
Oregon City One Level $225,000:
With 5% down payment on a 30 year fixed rate mortgage, current reasonable rate available would be 4.25% (zero points)
Cash to close this transaction would be $16,700; however, if negotiated, the seller may pay up to 3% of the buyer’s closing costs which would lower the buyer’s cash out of pocket to $9,943
The monthly principal and interest payment would be $1190 plus taxes and insurance.
Lincoln City Luxury Home with View $278,500:
With 20% down payment on a 30 year fixed rate mortgage, current reasonable rate available would be 4% (1% loan fee)
Cash to close this transaction would be $63,300; however, if negotiated, the seller may pay up to 6% of buyer’s closing costs which would lower the buyer’s cash out of pocket to $55,700.
The monthly principal and interest payment would be $1064 plus taxes and insurance.
If you would like to see any of these homes or would like to really get out there and investigate the current market, please call your LDRE broker today or call Lee Davies directly and he will get you aligned with the best broker in our company to help you with your next move.