Here’s a link to a 4-minute video showing why (some) banks aren’t really interested in HARP refinances or modification:

Hat tip to Ralph Olson at Pacific West Appraisal.

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If you want an assured ticket for Portland’s popular modern home tour (April 17), you might have to pony up early.

The 2010 edition of the Street of Eames will be the last. And tickets will disappear in a matter of minutes.

However, from an announcement this week from the organizers of the Street of Eames home tour:

Tour tickets go on sale Monday, Feb. 22. But, as we did last year, we are selling advance tickets (with a donation) now so you can be sure of getting in.

Effective through Feb. 21, you can purchase tickets at $250 per pair. This includes two $50 tickets and a tax-deductible donation of $150 to the Street of Eames Fund, which supports after-school programs for homeless elementary school students in Portland Public Schools.

We have sold out every tour every year so buy your advance tickets now and make a difference for our city’s neediest children.

The April 17th tour, the fifth and final Street of Eames, will feature eight fabulous houses!

For more information, go to streetofeames.org. And follow us on Twitter @StreetofEames for updates as well as tour-day traffic alerts.

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It’s two minutes and forty-seven seconds of epic flameouts. Enjoy.

Ouch.

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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.

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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.]

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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

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

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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.

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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.

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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.)

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I changed agencies right around the turn of the year. I didn’t really talk about it at the time or since, because I don’t think most consumers really care. But it was a good change for me and I will share more about why soon.

The start of 2009 really scared me. From November 2008 through January 2009, homebuyers just plain disappeared. With the economic turmoil at the time, I didn’t blame them, but I wondered if I was being prudent by staying in the industry (so did my family!). But around mid-January, my phone started ringing heavily, and soon I began to wonder if I would need an assistant or partner to help me.

Whereas 2008 was more of a ‘listings’ year for me, in 2009 it was all about buyers. I showed over 600 homes through the year. My auto miles increased by around 10,000 miles over 2008. Most buyers wanted to be close-in — near transit or bike commute routes. That meant I didn’t spend as much time in the suburbs this year.

As an agent I had my best year ever in terms of clients and transactions, but it was also the most expensive year I’ve had, too. I earned a number of referrals from other agents and partners, who all received a sizable portion of my compensation. I’m working a strategy to earn more business ‘organically’ and raise my bottom line to something more manageable.

I did not close even one short sale transaction. All of my offers expired after at least 8 weeks of waiting for an answer from the lender. My buyers did not want to wait. In one case, the prospective home had a rain gutter overflow along the foundation wall and seep into the brand-new basement, causing a 4-foot high mold bloom in the sheetrock. Even though the bank offered an additional $7,000 discount, my clients walked away.

Every bank-owned property (REO) that I wrote an offer for (many) had multiple offers, and the winning bids were usually cash transactions with minimal inspection contingencies and quick closing timeframes. My clients, with their FHA financing (usually) had no shot, even if our offer was slightly higher than the cash bid.

Tighter lending standards and underwriting reviews added considerable friction to the process. Every transaction I had where a mortgage was involved was delayed by no fewer than 3 days, sometimes a week or more. In a couple cases, I had clients in moving trucks with no home to put them in. Everyone survived, but it wasn’t fun. Let’s just say I enjoyed working with clients in all-cash positions!

Around mid-year, one of my clients volunteered to participate in HGTV’s “My First Place”. While it was mostly a fun experience being on camera, it added tens of hours to the process of actually viewing and buying a home. At times I just wanted to take my clients aside for some productive, un-filmed conversation and advising. They started out looking at single-family homes, but ended up with a cool, modern-style condo — which shook up the storyline for sure. I’m not sure when the show will air, but I will let you know.

Late in the year, I was appointed to the RMLS Board of Directors and will be heading up the Technology Committee for RMLS. Looking forward to both of those roles and working more closely with the staff there.

On the downside, I damaged a potential client’s car in October to the tune of $550. My associates have urged me to tell that story here, so expect a post about that sometime. Worst Realtor day, ev-ah!

Things look good going into 2010. I have activity and transactions in escrow, even an offer to be written on New Year’s Eve. My business is more balanced between advising buyers and sellers, which I prefer.

The market will probably be stable through the first half of the year, but rates are predicted to rise and government stimulus programs will expire. And we need jobs, but that’s fodder for a New Year’s post.

Thanks for indulging me today, and for reading re:PDX this year. I look forward to the New Year. How about you?

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