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re:PDX is presented by Claire Widmark, broker affiliated with M Realty LLC in Portland, Oregon.
Phone: 971-275-3691
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Wipeout Weekend
Completely off the real estate topic today, but I bumped into this video posted at oregonlive.com, courtesy of the Windell Camp.
It’s two minutes and forty-seven seconds of epic flameouts. Enjoy.
Ouch.
FHA Raises Borrower Requirements, Increases Fees
It’s an FHA-kinda day here at re:PDX.
In a move to minimize its own insolvency and avoid a bailout, the FHA is refining its lending guidelines and raising fees to borrowers.
In changes expected to occur in the first half of 2010, FHA-insured loans will require:
- Up-front mortgage insurance premiums to be 2.25% (up from 1.75% currently).
- Minimum FICO credit score of 580. Lower credit scores will require a 10% downpayment.
- Sellers limiting credits toward buyer’s closing costs and prepaid expenses to 3% (currently 6%).
From USA Today:
The changes, aimed at strengthening the FHA‘s reserves in the face of rising foreclosures, shouldn’t hurt too many borrowers, officials say.
“We don’t expect this to have a significant impact on the housing market,” says FHA Commissioner David Stevens, adding that “the moves are designed to get the reserves back up.”
The FHA is playing a greater role in the mortgage market, insuring about 30% of new loans, up from 3% in 2007. Growing defaults have cut its reserves below the level mandated by Congress, leading to fears that it might need a taxpayer bailout.
HUD Temporarily Suspends FHA Anti-Flip Rule
Starting February 1, the Department of Housing and Urban Development will temporarily suspend a rule in FHA lending that prohibited lending on a home that had been previously owned for less than 90 days.
The rule had been in place to reduce the practice of speculators flipping properties for quick profit, but large inventories of foreclosures prompted the administration to suspend the rule in hopes of accelerating the sale of vacant properties.
“As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers,” said Donovan. “FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization.”
With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.
The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.
The ruling will be in effect for one year. I don’t know if the ruling will have a significant effect on the Portland market in particular. Full text of the HUD announcement here.
[Photo courtesy of Lazurite, published under Creative Commons license.]
Portland Real Estate Market Activity – December 2009 Results
December 2009 certainly beat the tar out of December 2008 when it came to sales volume. Poor weather and economic uncertainty keep buyers out of the market a year ago, but 2009 closed with a reasonable amount of activity — 1,506 homes sold vs. 987 homes in December 2008.
The year ended with a 12-month average sale price of $289,900 and a median price of $247,000. These results were 12% and 11% lower than the 2008 12-month marks.
The Portland metro market closed a nearly identical number of properties (18,955) compared to 2008 (19,132), but due to declining sale prices, the sales volume was down to $5.5 billion vs. $6.3 billion in 2008.
Here are the numbers for December 2009:
Market Summary
| December 2009 |
November 2009 |
Last Year December 2008 |
|
| Median Sale Price | $242,200 | $239,000 | $252,900 |
| Average Sale Price | $293,300 | $273,300 | $300,800 |
| Closed Sales | 1,506 | 1,795 | 987 |
| Pending Sales | 1,141 | 1,328 | 810 |
| New Listings | 2,104 | 2,449 | 1,880 |
| Active Listings | 11,597 | 12,697 | 13,882 |
| Total Market Time * | 144 days | 131 days | 138 days |
| Inventory (in months) | 7.7 | 7.1 | 14.1 |
Below is activity by market area. Please note that the median and average sale prices are year-to-date, and the appreciation numbers are a 12-month average compared to the previous 12-month average. Total market time is the number of days between the date it went on the market and when it received an acceptable offer.
Market Report by Area
| Area | YTD Avg. Sale Price |
YTD Median Sale Price |
12-Mo. Appreciation |
Total Mkt Time* |
| Lake Oswego / West Linn | $486,300 | $395,000 | -9.8% | 235 |
| West Portland & Downtown | $420,500 | $347,600 | -12.0% | 175 |
| NW Washington County | $369,300 | $349,900 | -8.7% | 158 |
| Tigard / Tualatin / Sherwood / Wilsonville | $316,000 | $285,000 | -10.3% | 178 |
| Milwaukie / Clackamas | $288,000 | $260,000 | -9.5% | 147 |
| Northeast Portland | $287,100 | $253,000 | -10.2% | 118 |
| Oregon City / Canby | $279,500 | $245,000 | -10.7% | 140 |
| Hillsboro / Forest Grove | $243,200 | $225,000 | -12.3% | 140 |
| Beaverton / Aloha | $241,100 | $223,000 | -11.9% | 122 |
| Southeast Portland | $240,900 | $215,000 | -12.7% | 104 |
| North Portland | $236,000 | $230,000 | -11.3% | 101 |
| Yamhill County | $227,300 | $206,000 | -14.8% | 197 |
| Gresham / Troutdale | $222,100 | $210,000 | -14.1% | 112 |
| Columbia County | $193,300 | $185,000 | -16.1% | 152 |
New RMLS CEO & President appointed
Big news yesterday at RMLS headquarters as Kurt von Wasmuth was appointed as the new CEO and President of Oregon’s largest multiple listing service.
A long-time RMLS employee, Kurt has worked his way through the ranks at RMLS and, according to the RMLS Board of Directors Executive Search Committee, clearly distinguished himself from the other candidates interviewed for the position.
This is good news for the Realtors in the Portland/Vancouver metro area because Kurt’s appointment offers leadership continuity and also a firm grasp of the challenges ahead for the MLS — issues like declining membership due to housing market conditions, rapid technology advances, and sea change in the MLS industry in general.
Kurt succeeds Beth Murphy, who retired in December.
Street of Dreams returns to its luxury formula
The Portland Tribune reports that the Homebuilders Association of Metropolitan Portland will be revisiting its single-family, luxury home tour roots–an eight-lot subdivision in the Forest Park area in NW Portland.
Last year, the summer home tour altered course and showcased luxury condos in the Pearl District.
After a year highlighting existing condominium projects, the 35th annual showcase will once again feature new homes in a new development – this time above Forest Heights in Northwest Portland. At least five homes are scheduled to be built in the new Cresap Summit development near Skyline and Thompson by the July 31 kick off date.
The switch will result in a display of lower-priced homes, however. The nine penthouses in last year’s show ranged from $1 million to $2.5 million. In contrast, this year’s homes are expected to be priced from $750,000 to $1 million. They will also be built to Earth Advantage Silver standards or higher, and will range in size from 2,700 to 3,500 square feet.
“The trend in luxury building right now is to build smaller, more affordable homes that have more flexible living spaces and leave a smaller carbon footprint,” says Haskins.
Two builders have already agreed to feature pre-sold homes in the show, Renaissance Homes and Hearth and Home. Two or three other builders are expected to sign on soon.
It remains to be seen if the homes will be viewed as 1) affordable and/or 2) luxurious.
Chickens Out, Goats In for 2010
To stay on the cutting edge of Portland’s urban farming scene, you’ll need to trade in your chicken coop for pygmy goats, according to the latest Willamette Week.
Here are 14 people (including one of my current clients, very cool) and trends to follow in 2010.
(Photo courtesy of Monterey Bay Equestrian Center.)
