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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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When Renting Doesn’t Turn Out So Well
Despite the current popular advice to not buy a home in a recessionary economy, here’s some counterpoint regarding the risks of renting.
Willamette Week shares these stories of Room 120 at the Multnomah County Courthouse, where tenants and landlords do battle.
I’m not being a Realtor shill for sharing this. Owning isn’t for everyone or every season, but it does provide you with more stability and control over your home life.
Photo courtesy of sashafatcat, used under Creative Commons license.
No. That’s not Mickey Mouse in your sewer line.
You just never know what you’ll run into during a home inspection. Here’s my latest sewer inspection (scope) result. The audio starts at 10 seconds and ends at around 50 seconds:
As you can hear, the inspector is delighted (“Sweet!”), not because he found rats in the sewer, but because he got some video footage of rats to share in his training sessions. I’m the one chuckling, nervously, in the background.
The buyers, um, did not find much humor in the discovery. In this case, however, the hole was near the city main, past the curb out in the street and will be the city’s repair.
But, here’s the point. I’ve had three sewer scopes done in past few weeks. And all three failed due to bellies (low points that hold water and waste) or separated joints in the pipe that will eventually cause problems. Even on new construction, it’s worth the $100 test fee, even if you don’t find rats.
UPDATE 07/01/2009:
If you thought that was gross, check out this sewer footage from North Carolina (hat tip Mike Rohrig).
re:PDX Home Search Page Now Available
It thrills me to no end to announce the availability of my long-awaited (awaited by me, anyway) real estate search page here at re:PDX. The software developers and designers in my company have been dealing with my persnickity preferences in incorporating a map-based search into the site, but here it is.
Serious shoppers and real estate junkies (you know who you are) alike will like it. Features:
- It’s Google map-based.
- It’s neighborhood-defined.
- It contains all homes for sale in the Portland MLS that are approved for internet display.
- It’s free to use and no registration is required to use the map.
- If you would like to save homes to a Favorites list for future viewing, you can do so by setting up an account.
- You can even request a showing of any listing with just a click.
To see it in action, just click the Home Search in the top menu.
$15K tax incentive ends up on cutting room floor
Tax credit stimulus for 2009 home buyers dies in compromise. Maybe. Probably. Details covered ably by The Phoenix Real Estate Guy.
Is 4.5% and $15,000 Stimulating Enough?
It appears the Federal government is pulling out all the stops on resuscitating the U.S. housing market.
As of Wednesday, February 11, the economic stimulus package considered by the Senate included an up-to-$15,000 tax credit for all homebuyers in a yet-to-be-determined time frame.
At the same time, theories that Government action that could drive mortgage rates down to 4.5% sometime this year continue to linger.
So, potential buyers, is a sizable tax credit combined with a screaming low interest rate enough for you to consider buying a house this year? Or are you motivated to wait, believing that the market has not yet bottomed?
The effects of this artificial stimulus could come at an interesting time. Home prices generically across the Portland metro area are down 17% from the peak. Sales are stagnant.
I certainly think these incentives could spur a renewal of activity by those that are qualified, but I could argue that the Portland market has not had enough time to correct for its irrational, artificially fueled price run-up (I can hear home sellers screaming at me from the distance).
Another data point: Since Portland’s market has paralleled Seattle’s performance over the past several years, it’s interesting to compare. One respected agent believes Seattle is at the bottom, noting that non-distressed homes are moving when priced at 80% of their peak price. Distressed properties are selling closer to 40% off the peak. Is Portland far behind?
UPDATE (02/11/2009):
It appears the $15K tax credit incentive is off the table, discarded as a bargaining chip in the larger stimulus package negotiation.
Photo by sbluerock, used under Creative Commons license.
Camera Friendly? HGTV has a role for you
My First Place, one of HGTV’s gazillion home shows, is coming to Portland to shoot soon.
From their invitation:
We are looking for fun, high-energy people who are just starting the home-buying process for their first place! Our goal is to capture all the trials and tribulations of looking for, bidding on and buying your first place.
Ideal candidates will be enthusiastic buyers with a great story to tell and a desire to share their experiences. Singles, couples and families are all invited to apply!
Interested? Call Jon Kawano at (303) 712-3222 or email at JKawano@highnoonentertainment.com.
I’m ready for my close-up Mr. DeMille.
Hat-tip Marisa Swenson & PortlandNeighborhood.com.
On The Hunt for a New Home? Try Searching on a Neighborhood Map
UPDATE: The home search feature discussed in this post is now integrated with re:PDX. Just click the Home Search link in the top menu.
———————————————-
Earlier, I alluded to some changes going into the new year and here’s the first—a new, upgraded real estate search feature.
Since re:PDX is getting a makeover, it will be some time before it’s integrated into this site, but you can use it now at my independent search site, findportlandhouses.com.
Different from other real estate search sites, this one is based on neighborhood boundaries and integrated with Google Maps so you can search your preferred neighborhoods. You might be interested in just Hawthorne, Ladd’s Addition, and Laurelhurst, for example, but not all of inner SE Portland or a particular zipcode.
The search requires no registration, unless you’d like to save properties to a Favorites account or request a showing.
Here’s a screen shot of the site (click on the image to go to the site):
Here’s a peek at the neighborhood-level detail. Icons show the active home listings. Hovering over the icon shows a thumbnail and price. Clicking on it gives you more detail over in the sidebar.
The properties include all* RMLS listings ranging north of Salem to Vancouver. The Gorge is represented and some beach properties, too.
Be careful. Using it could be addicting.
* “All” means all listings approved by the listing broker for display on the Internet. Some brokers opt out of this.
Craigslist Shakes Up Real Estate for Sale Section
Casual users of Craigslist may not have noticed a change last week to the Real Estate for Sale section. Recently, my bookmark for that section suddenly started showing fewer and fewer listings.
Around August 4, it appears the ‘real estate for sale’ category was split into ‘for sale by broker‘ and ‘for sale by owner‘ buckets. Fortunately, the company kept the ALL category alive, but is now addressed as http://portland.craigslist.org/rea/ (instead of /rfs).
I saw complaints about the previous real estate for sale section, like, “Why do brokers put their listings here (multiple times), when there is already an MLS?” The new categorization solves that issue if you just want to see owner listings. But when I looked in the ‘by owner’ section today, it seemed rife with spam, foreclosure ‘help’ ads, and other money schemes. Some policing will be needed.
Another thought, with the split, is Craigslist prepping to charge Portland brokers to advertise their listings like they do in NYC? We shall see.
Portland Condo Market Update – May 2008
A recent reader prompted me for a condo update for Portland and it’s time to oblige.
Interestingly, the inventory of condos and townhomes has not ballooned with the slower sales market. In fact, since my last update in August 2007, the market contains just a couple hundred additional units. It’s not an insignificant number, but clearly, developers have cooled their jets, even converting some projects to luxury apartments while existing inventory is absorbed.
On the other hand, it’s not likely that all units available are marketed in RMLS. From a developer’s standpoint, there is little value in listing a multitude of identical units — thereby showing a surplus in supply and a weak bargaining position. So, consider this report a high-volume sample, just like the other reports I’ve done.
As of May 12, there were 3,896 active condo/attached home listings throughout the Portland metro area. The average list price is $329,000 for 1,344 square feet. In the August 2007 snapshot, the area had 3,675 listings at an average 1,336 sq. ft. and list price of $333,300.
In the past six months, the average list price is down just 2%–bringing the average price per square foot down to $245.
Like last time, I first rolled up condos and attached homes in the same analysis, then broke them out separately. The tables below show 1) Condos and Attached Homes together; 2) Condos only; and 3) Attached Homes only. All sorted by average list price:
| Area | Listings | Avg. List Price | Avg. Sq. Ft. | $ per sq. ft. |
| West Portland (Downtown) |
1,093
|
$522,688
|
1,320
|
$396
|
| North Portland |
208
|
$378,049
|
1,424
|
$265
|
| Lake Oswego / West Linn |
250
|
$364,581
|
1,493
|
$244
|
| NW Washington County |
128
|
$276,518
|
1,419
|
$195
|
| Columbia County |
29
|
$269,976
|
1,404
|
$192
|
| Northeast Portland |
225
|
$263,799
|
1,180
|
$224
|
| Milwaukie / Clackamas |
144
|
$245,274
|
1,551
|
$158
|
| Tigard / Tualatin / Sherwood / Wilsonville |
341
|
$232,119
|
1,305
|
$178
|
| Oregon City / Canby |
71
|
$231,808
|
1,540
|
$151
|
| Southeast Portland |
420
|
$224,575
|
1,213
|
$185
|
| Hillsboro / Forest Grove |
258
|
$222,381
|
1,407
|
$158
|
| Beaverton / Aloha |
499
|
$214,510
|
1,321
|
$162
|
| Gresham / Troutdale |
170
|
$211,180
|
1,402
|
$151
|
| Yamhill County |
60
|
$210,825
|
1,504
|
$140
|
| TOTAL |
3,896
|
$329,023
|
1,344
|
$245
|
Table 2: Condos only
| Area |
Listings
|
Avg. List Price | Avg. Sq. Ft. | $ per sq. ft. |
| West Portland (Downtown) |
982
|
$530,173
|
1,263
|
$420
|
| North Portland |
170
|
$395,768
|
1,376
|
$288
|
| Columbia County |
8
|
$346,875
|
949
|
$365
|
| Lake Oswego / West Linn |
188
|
$340,515
|
1,307
|
$260
|
| Northeast Portland |
165
|
$253,475
|
997
|
$254
|
| Southeast Portland |
320
|
$212,609
|
1,119
|
$190
|
| Milwaukie / Clackamas |
83
|
$209,409
|
1,236
|
$169
|
| Oregon City / Canby |
23
|
$208,852
|
1,501
|
$139
|
| Hillsboro / Forest Grove |
135
|
$204,262
|
1,291
|
$158
|
| Tigard / Tualatin / Sherwood / Wilsonville |
217
|
$201,882
|
1,140
|
$177
|
| Beaverton / Aloha |
281
|
$198,031
|
1,191
|
$166
|
| NW Washington County |
63
|
$191,925
|
1,001
|
$192
|
| Yamhill County |
17
|
$188,257
|
1,355
|
$139
|
| Gresham / Troutdale |
64
|
$173,508
|
1,101
|
$158
|
| TOTAL |
2,716
|
$346,160
|
1,215
|
$285
|
Table 3: Attached Homes only
| Area |
Listings
|
Avg. List Price | Avg. Sq. Ft. | $ per sq. ft. |
| West Portland (Downtown) |
111
|
$456,474
|
1,825
|
$250
|
| Lake Oswego / West Linn |
62
|
$437,557
|
2,054
|
$213
|
| NW Washington County |
65
|
$358,509
|
1,823
|
$197
|
| North Portland |
38
|
$298,782
|
1,641
|
$182
|
| Milwaukie / Clackamas |
61
|
$294,074
|
1,979
|
$149
|
| Northeast Portland |
60
|
$292,190
|
1,683
|
$174
|
| Tigard / Tualatin / Sherwood / Wilsonville |
124
|
$285,033
|
1,594
|
$179
|
| Southeast Portland |
100
|
$262,867
|
1,514
|
$174
|
| Oregon City / Canby |
48
|
$242,808
|
1,558
|
$156
|
| Hillsboro / Forest Grove |
123
|
$242,268
|
1,534
|
$158
|
| Columbia County |
21
|
$240,681
|
1,577
|
$153
|
| Beaverton / Aloha |
218
|
$235,752
|
1,488
|
$158
|
| Gresham / Troutdale |
106
|
$233,925
|
1,584
|
$148
|
| Yamhill County |
43
|
$219,748
|
1,562
|
$141
|
| TOTAL |
1,180
|
$289,578
|
1,642
|
$176
|
Please note, this is just a snapshot as of May 12, 2008 of the active listings in the local multiple listing service. It may not include inventory sold by owner or through developer sales groups. Every effort has been taken to ensure accuracy, but is not guaranteed.
With a quarter of the active listings located in the City Center, I’ll be back later in the week with and update on downtown sales and active listings.
Life Expectancy of Housing Components
Perhaps it’s because my home is going on 20 years old and I’m in the throes of making costly updates (windows, furnace, roof, etc.), but lately I’ve been making particular notes about the age and condition of homes’ costly components when touring with clients.
When viewing a home listing, in addition to the cosmetic aspects of the home, I pay particular attention to items like the furnace, roof, and deck — costly replacement items that may need attention from the new owner in relatively short order.
If you’re in the market, you might want to educate yourself on these issues in advance. To help, The National Association of Homebuilders conducted a study in 2006 on the effective life of many housing components. I chose a handful of areas to display here, particularly considering our NW climate and environs:
Appliances:
- Gas ranges: 15 years
- Dryers and refrigerators: 13 years
- Compactors: 6 years
- Dishwashers: 9 years
- Microwave ovens: 9 years
Decks:
- 20 years
Faucets and Fixtures:
- Kitchen sinks (acrylic): 50 years
- Faucets: 15 years
- Bathroom shower enclosures: 50 years
- Shower doors: 20 years
- Showerheads & toilets: Lifetime
- Whirlpool tubs: 20 to 50 years
Flooring:
- All natural wood flooring, and marble, slate and granite: 100 years
- Vinyl floors: 50 years
- Linoleum: 25 years
- Carpet: 8 to 10 years
Heating, Venting and Air Conditioning:
- Furnaces: 15 to 20 years
- Heat pumps for 16 years
- Air conditioning: 10 to 15 years
- Tankless water heaters: 20 years
- Electric/gas water heater: 10 years
Roofing:
- Slate, copper and clay/concrete: 50 years:
- Asphalt-shingle roofs: 20 years
- Fiber cement shingles: 25 years
- Wood shakes: 30 years
Siding and Accessories:
- Brick, engineered wood, both natural and manufactured stone and fiber cement: Lifetime
- Copper gutters: 50 years
- Aluminum gutters: 20 years
- Copper downspouts: 100 years+
- Aluminum downspouts: 30 years
Windows and Skylights:
- Aluminum windows: 15 to 20 years
- Wood windows: 30 years
Note that these are functional lifetimes. Kitchens, bathrooms, appliances, paint, etc. have much shorter stylistic lifetimes. Obviously, these guidelines are highly dependent on local weather conditions, proper building and design, material quality and adequate maintenance. I can think of a few other exceptions too, like EIFS and LP siding.
Something to keep your eyes open to when touring homes 10+ years or older. You might want contractors to certify roofs, inspect furnaces, provide replacement costs, and give you additional advice during your home inspection timeframe.
The link is broken on the NAHB website, but I’ve got the full, detailed report here.
