Tuesday, January 21, 2014

Reversing the Decline

Real property sellers have held off for years; wanting to see a real estate value shift back to a market that supports them. The current market conditions show that shift is now.

I always tell sellers it is not the value of your home as much as the market setting a value. So, a home in a “Buyer’s Market” will usually sell for less than one sold in a “Seller’s Market”.

A Buyer’s Market means there are lots of properties available; more than 6 months of inventory. (At the height of the recession there were years of inventory available on the market.) A Seller’s Market means there is little inventory and less than 6 months of homes to sell. (Recently I have seen weeks of inventory versus months in some areas and price points.)

Right now we are in a “Balanced Market”, though this can change at any time. Basically, the level of inventory and absorption rate (how quickly you can expect the inventory to be sold) is what determines the type of market. Anytime you have about 5-7 months of inventory you could use the “Balance” descriptor. However, my take is we are almost always in a “Transitional Market” either moving through a balanced into a seller or buyer market. (Another good reason to use a professional real estate broker.)

As the levels in inventory increase/decrease seasonally and regionally we either increase in value or decrease in value. That said, what you may be able to sell for today is much improved from the previous 7+ years. Year over year improvements nationally are around 12%+ meaning the “appreciation” of the previous 12 months has exceeded the more typical 3-4% appreciation of a “normal market”.

In almost all areas rents are moving up and the shortage is as tight as recent memory. Mortgage interest rates may remain low for the short term, but new rules and more strict guidelines (some taking effect April 1st) will make the availability of loans perhaps costly and/or difficult as well. Therefore inventors, first-time home buyers, move up buyers and sellers should expect a reasonable return and a good investment return either in single family homes or multi-family.

As of 1/21/2014:
Lyons, Oregon = 9.3 months of inventory
Mill City, Oregon = 10.8 months of inventory
Stayton, Oregon = 4.7 months of inventory

Sublimity, Oregon = 2 months of inventory 

YouTube video posted - via Circlepix.com

1864 Kent Av Stayton, OR 97383

New listing video just posted:

http://video.circlepix.com/VTLU67/521/1739

Description: One of Stayton's finest neighborhoods, perfect for those looking to downsize without giving up function: less space - more style, one-level, open floor plan w/tile in living areas. The third bedroom is converted to a library with lovely French doors. The yard is easy to maintain and fenced. Huge, newer Trex deck for entertaining. Four window seats, gas fireplace, water heater & furnace, vaulted ceilings, newer vinyl windows & loads of storage. Close to area services and ready for your personal touches.




Home Information:

Beds: 3

Baths: 2.00

Sqft: 1352

Price: $179900

MLS #: 671243

YouTube video posted - via Circlepix.com

23195 Salmonberry Ln Lyons, OR 97358

New listing video just posted:

http://video.circlepix.com/FQT8MB/521/1739

Description: North Fork of Santiam River frontage with this charming older home also has a darling separate cottage guest house. Secluded setting with Lyons city water and easy access from Hwy 22. Like living in a tree house, this home invites the outdoors in: views, decks & living space all focus toward the river. Skylights make it light and bright inside. Large upstairs bedroom has bunk beds & lower bedroom has slider to deck, gas stove in living room and all kitchen appliances included, AS IS.




Home Information:

Beds: 2

Baths: 1.00

Sqft: 1320

Price: $239900

MLS #: 666833

YouTube video posted - via Circlepix.com

455 SE Hazel St Mill City, OR 97360

New listing video just posted:

http://video.circlepix.com/BU5GBL/521/1739

Description: Super price on multi-family zoned property currently with single-family home. Live in 1930 built home and/or develop for additional rental income. Large lot is mostly flat with several out buildings, covered carport and deck with a view. Space for RV with city services too. Bedrooms have built in storage as do both of the outbuildings. Loads of potential to make this one your own, though condition does suggest cash or fixer loan; just bring your skills to make this one shine again.




Home Information:

Beds: 2

Baths: 1.00

Sqft: 740

Price: $69900

MLS #: 671232

YouTube video posted - via Circlepix.com

000 SE Division Sublimity, OR 97385

New listing video just posted:

http://video.circlepix.com/9JLS2D/521/1739

Description: Established residential neighborhood in Sublimity, single family home site is flat and ready for your new custom home, utilities nearby.




Home Information:

Beds: 0

Baths: 0.00

Sqft: 0

Price: $65000

MLS #: 666841