November Market Trend Reports for Bend, Oregon now available....

Just in time for the holiday's the numbers for last month are now available at shopbendhome.com .


The under $225,000 remains the hottest portion of our market with investors and first time home buyers leading the way. Those who have hesitated in putting their offers on these homes are finding themselves on the outside looking in and are learning to bring strong offers to the table quickly. For the month the under $225,000 range there were 81 homes in a pending sales status and 69 homes sold. This makes the third month in a row the inventory for homes in this range has held to under a three month supply.

The rest of the market has slowed with a little more strength showing up in the $325,000 to $425,000 range with rise in the number of pending status for sales while actual sales have dropped off slightly.

In the overall market the list price to sales price ratio has flattened out to a 2% difference, showing that sellers and buyers are getting closer in their expectations for what a property should sell.

For winter buyers there are great values being brought to the table by sellers who are in the $325,000 and up price range. Their homes have been on the market a bit longer and they tend to have had the most room to give a little in their pricing expectations and have adjusted accordingly. With interest rates continuing their slow climb upwards this winter could present some of the best opportunities for those looking to move up in the level of home they could purchase.

Enjoy dissecting the numbers and have a fabulous holiday season!!!

Mortgage Help for some of the Hardest Hit…

As most of us know the recession has hit Oregon especially hard. Oregon is hardly unique in this suffering and is one of 17 states to receive assistance from the U.S. Treasury Department to help those in need.


Coming December 10th the Oregon Homeownership Stabilization Initiative (OHSI) is going to be offering a Mortgage Payment Assistance program. This will be the first of several assistance programs to be offered through OHSI. The program is intended to help financially troubled homeowners avoid foreclosure. In Oregon it is anticipated that 5,000 unemployed or financially distressed homeowners will receive assistance by covering their mortgage payments for one year or up to $20,000 whichever comes first.

Visit http://www.oregonhomeownerhelp.org/ to get more information and take the eligibility test for the program. To stay informed on OHSI offerings make sure that you sign up for their newsletter.

A great reminder…to block that call...

This is kind of funny coming from a sales guy but for those of us who do not care for being bothered by sales calls from telemarketers, registering on the “National Do Not Call List” is a great idea. One thing not known to many is that cell phones become fair game starting this month. For most of us that means getting billed for those unwanted incoming calls.


If you register now it will take 31 days before telemarketers are to cease calling. So just after the New Year you should be free of most annoying calls, at least from telemarketers.

There are a couple of ways to register your phones; the easiest is to call 888-382-1222 from the phone that you would like have registered. The other is to go to the National Do Not Call Registry website, there you can register you can register numerous phone numbers.

Once your number is registered it will not expire. Telephone numbers placed on the National Do Not Call Registry will remain on it permanently due to the Do-Not-Call Improvement Act of 2007, which became law in February 2008.

The November Bratton Market Report for Central Oregon Real Estate is Here!

The Bratton group presents their numbers for October highlighting the real estate market trends in Central Oregon. The Bratton Real Estate Trends Report, Duke Warner Realty Real Estate Trends Report and The Bratton Notice of Default report are all available on shopbendhomes.com under area information – Market Trends Reports


These reports are great for the numbers junkies that can’t get enough information. You can use these numbers to distill your own ideas of where you think the market is heading. If this is too much information you can give me a call or email me and we can sit down and go over the pros and cons of today’s market conditions.

From where I sit the market in Central Oregon continues to stabilize with Notice of Defaults falling and homes in the $350,000 and under having the best strength. The lead in sales and the inventory has consistently been shrinking. In Bend there is currently 3.5 or less months of housing inventory in most categories under $350,000. The upper reaches of the market remain soft with more compromises on sales prices coming.

Redmond and the outlying markets have been slower to recover but have seen similar strength in the same price ranges. Our regions rural properties are bringing up the rear and remain relatively stagnant with money for financing being difficult to come by for these properties.

With interest rates remaining historically low many are finding this market prime with opportunity. These interest rates combined with the value in properties under $350,000 is helping lead the market to the low inventory numbers. It is hard to say how long we will see these low interest rates. Many feel the Feds decision to purchase $600 billion in long term treasury bonds last week may led to inflation hence driving the interest rates up. For now they remain low and should for the next few months.

If the rates head upwards it will be interesting to see if those who have been on the fence about buying in today’s market decide to make their move and jump in before they miss out.

Real Estate Trends Report for October is Ready!!

Many are finding that in Bend it is getting harder to find the house they want at a price they can accept. October has brought the lowest inventory of Bend homes for this year. With the lower inventory we are seeing houses that are well priced with nice amenities and a desirable location being snapped up off the market quickly. We have found that buyers who think that Bend has abundance of great homes at super cheap prices are astounded by how difficult it is to find the home that they want at a price they are willing to pay.


Many of the well priced homes are seeing multiple offers, which is a welcome change for sellers. That trend is especially pronounced in the lower price range of the market with only a 2.8 month supply of homes available under $225,000 and a 3.2 month supply of priced between $225,000 and $325,000. In categories below $625,000 there is currently less than an eight month supply of homes.

The average price for a home sold in Bend for the month was $259,474 down 12% from 2009. Of those homes sold this past month traditional sales made up the bulk of the sales at 44.7%. Bank owned homes fell in behind the traditional sales at 32.1% and short sales brought up the rear 23%.

Short sales remain a headache for all involved in the process. To illustrate how frustrating the short sale process can be there are 133 in a contingent sales status compared to 6 traditional home sales and 1 bank owned. In the contingent sales status most are waiting for approval of the third party lender/investor which can take months. Recently I have been told by certain lenders that they are attempting to complete the short sales transaction in a thirty day window, I have yet to see a lender accomplish that timeline.

The bank owned properties have been the primary recipients of multiple offers with their aggressive pricing; these homes have sold 99.1% of the list price at the time of the sale. Short sales have had the next best results with a ratio of 97.8% and traditional sales seeing the larger concession in prices at 95.1%.

For a different perspective on pricing, homes continue to sell in the mid 80% range of their original list price, this trend has held true since December of 2009. What I see in this last number is that sellers are still adjusting to the realization that their properties will not fetch the price of even just a year ago.

These trends will likely continue through the winter months and into the first part of the spring season. It appears that for the lower range of the market we have stumbled to the bottom of the market. I think we will remain there for the near future and into the next year while we wait for the rest of the market to catch up and the economy continue its recovery.

Click the following link to see this month’s market trends report.

Home Sweet Home

First time home owners are you looking for your first “Home Sweet Home”? The Oregon Bankers Association in conjunction with the Oregon Association of Realtors® has put together a program to assist first time home buyers in obtaining their first “Home Sweet Home”. The program is focused on providing homeownership opportunities for low and moderate income Oregonians earning less than or equal to 100% of the area median income.


To get started the first time home buyer must be working with a lender who is a member of the Oregon Bankers Association and a Realtor® who is a member of the Oregon Association of Realtors®. To help the first time home buyer your lender can make available to you a $2,000 grant for your down payment and/or closing costs, along with matching assistance from your lender or other qualified sources valued at a minimum of $500.


ELIGIBLE BORROWERS

To be eligible for a $2,000 grant you must:

• Be qualified as a first‐time homebuyer.

• Occupy the property you purchase as your principle residence.

• Not have household income over 100% of the area median income in the county where you purchase your home. Median income varies by county, so ask your lender for information on specific limits.

• Have no major credit obstacles.

• Have no more than $10,000 in liquid assets left after loan closing.

• Successfully complete an approved homebuyer education course.

• Be a legal Oregon resident or be pursuing permanent residency.


ELIGIBLE PROPERTIES

Eligible properties include any new or existing single‐family residences located in the State of Oregon, including site‐built homes, condominiums, townhouses and manufactured homes. Properties must meet quality standards required to qualify for a mortgage loan.


TYPES OF LOANS

The following types of loans may be used in conjunction with a HOME Sweet Home

Program grant: 􀁹 FHA 􀁹 Conventional

State Bond 􀁹 Rural Development 􀁹 VA


AMOUNT OF ASSISTANCE

In addition to the $2,000 grant, your lender will help you determine the type and amount of additional assistance from other sources that fits your needs and budget.


HOMEBUYER EDUCATION

Successful completion of an approved homebuyer education course is required to be eligible for assistance through this program. If you have not completed such a program, please contact your lender or visit www.oregonbond.us/OHCS/SFF_Homebuying_First_Time_Homebuyer_Training.shtml to learn about upcoming classes in your area.


ELIGIBLE LENDERS

All banks in Oregon that are members of the Oregon Bankers Association are considered
eligible lenders. A list of OBA member institutions can be found at http://www.oregonbankers.com/members/bank‐members/list/ . Qualified homebuyers must obtain financing through an eligible bank in order to access the HOME Sweet Home funds and must be a working with a REALTOR® in good standing.


Visit your bank to inquire about accessing the HOME Sweet Home Program.

Bend Oregon Market Trends...

While neglecting my blogging duties of late I have not posted the market trend reports for the last two months. If you visit my new website shopbendhomes.com under the Area Information tab you can find the Duke Warner Realty Market Trends reports dating back to June of this year and the Bratton Market Trend reports dating back to August.

Sorry for the inconvience but the web site provides a more complete platform for sharing this information.

Stepping Up To A New Web Site...

I have been feeling kind of bad for negecting my blogging duties of late but I have been working on the content in my new web site, shopbendhomes.com. A consuming task, which will be a work in progress for some time to come.  

My web site allows you find the latest properties available in Central Oregon with its powerful map based search engine. This search feature allows you to visit the properties location virtually. While viewing the property you will have all the listing information for the property presented at the same time. The web site allows you to set up your own account to keep track of all the properties you like and to be alerted to any changes in the properties status.  

My web site also contains pages and links to help guide you through the maze of real estate solutions. Take the time to visit my site I will be curious to hear your feedback and suggestions. 

Visit shopbendhomes.com to find your next Central Oregon property!

New Price on Cool Mid Town Home!!

Centrally located, a short distance to so many places… close to Downtown and Mid-Town shopping, Juniper Park and its aquatic/fitness center are just steps away. This home would make a great vacation rental and is priced to sell at $175,000!! Take a Visual Tour and see for yourself.

Bend Oregon July Market Trends

Here is the market trend report for July, I am a little tardy in posting this.

As one might expect the months of inventory on homes under $425,000 has increased as summer has attracted more sellers to the market. The inventory for homes in the price categories above $425,000 have actually dropped slightly.

The current list price to sales price ratio has remained in the high ninety percent range. The difference between original list price to sales price continues to shrink and is now at eighty eight percent. This is an indicator of how the smoking deals are disappearing from our market and that sellers have adjusted their pricing expectations.     

Our market continues to see investors that have been bolstered by Bloomberg's Businessweek report that Bend is number two on a list of the fastest recovering markets by 2014. Zillow's report that Bend is leading the nation in home value depreciation has many thinking that Bend is still ripe with opportunity. As the original list price to sale price ratio shows those bargins are starting to disappear.

The Roller Coaster called Bend, Oregon…

What a roller coaster ride, one day Bend, Oregon is predicted by Bloomberg Businessweek will be one of the fastest recovering markets by 2014 then Zillow reports that Bend is leading the nation in home value depreciation.


While the news of our market is mixed these days there are positive trends to report from Bend. Using data from the Central Oregon Association of Realtors MLS through Trendvision, the inventory of homes on the market has shrunk by 47% when compared to July of 2008 and 33% from last July. Currently there are 1587 properties on the market in Bend, down from 2363 last July. Looking back the last six months has produced the lowest inventory levels since 2004.

Sellers appear to be facing the reality of the current market conditions and are pricing their homes closer to today’s values. The differential from original list price versus sold price has increased 5.3% from last year at this time.

With sellers pricing their properties more realistically the days on market has dropped to the lowest in two years. The average time a home is on the market has decreased to 135 days versus 150 days last year.

So what’s it all mean, have we hit bottom? No one knows for sure, are we close? It sure has all of the appearances of being close to the bottom. What could we use as a gauge? How about using properties under $300,000, the ones that are good homes and are well priced have been getting snapped up quickly. Above $300,000 and on into the upper reaches of our market remain soft but there too if the property is well priced it disappears rapidly.

Another signal is the return of buyers from outside the area, buyers who see value in the properties here and wish to buy before the best values are gone. With the list price to sales price ratio shrinking the days of finding the killer deal is fading. One more positive signal is the success by a select few builders who have returned to the market to fill the niche for buyers who wish to have a new home.

In spite of our fall from grace Bend remains and will continue to be a great place to live! While our real estate market may bounce along the bottom for a bit of time our dry climate, the large variety of outdoor activities, enjoying that we are one of the great beer cities of the west and the access to flights from the Roberts Field that allows for quick access to all points beyond Bend are among what makes Bend a desirable place to live. Bend is a great place to live just as it has been since long before its recent popularity.

They just keep dropping...

In case you have not heard Freddie Mac reports that long-term mortgage rates have moved down again.


This week interest on 30-year fixed loans hit a new low of 4.49 percent, compared to 4.54 percent last week and 5.22 percent a year ago. For those of you in position to take out a 15-year mortgage, they have hit a huge low dropping to 3.95 percent, down from 4 percent last week and 4.63 percent a year ago. Five-year adjustable-rate mortgages also reached a historic new low of 3.63 percent, down from 3.76 percent last week and 4.73 percent a year ago.

For those who have been on the fence about purchasing a home or refinancing these rates should prove enticing. It is unlikely that interest rates will soar anytime soon but why take chances. You would hate to be the one who says man I should have moved quicker on those rates.

These historic rates and the dramatic home bargains available allows one to buy much more home for the dollar than any time in the last ten years.

If you where in Bend what could you do for your weekend...

A few excerpts from some of our friends...

Don't forget about the First Friday Art Walk! 5-9pm Downtown. Check out the participants and art here: http://www.downtownbend.org/august-first-friday-art-walk/

Need childcare for the art walk? Check out Drop & Hop! A youth arts and music event while you enjoy art walk. http://schoolofenrichment.com/event.htm

From the Bend Deschutes Brewery and Public House First Friday Art Walk, Come One Come All, Great Beer, Great Food, Great Music All Downtown Here At Our Pub, Only One Day A Month Don't Miss OUT!!!! First Friday BBQ in the back alley of the Bend Pub tonight! Grab a pint, some tasty BBQ & listen to live music from David Miller & the Champagne Jam Band as you gaze at Joe Frang's fabulous artwork! 5-9:30pm. See you there!

Grab Your Floaties, Kayaks, Canoes and Paddle Boards to Race For The River!
We are launching a brand new event this year that is sure to be a community favorite. Starting at Riverbend Park, racers will vie for the number one position in several different heats ending in the Les Schwab Amphitheater. Food, beverages, live music and fun will follow at a community wide celebration in the heart of the Old Mill District in the Central Plaza. Race for the River

From the pages of Visit Bend, The crème de la crème of funkified parisian antiques & vintage finds are at the French Flea Market this Saturday from 10-4pm at Pomegranate Home & Garden in Bend. Score some treasures from vendors & artisans from all over the west coast while munching on some fresh crepes!
http://www.pomegranate-home.com/

Visit Bend also shares that a reel good time is sure to be had at the Orvis Fly Fishing Casting Competition happening on August 12-15. A festival, food, free casting instruction and the world’s best fly casters converge on the 18-hole fly casting course at the Old Mill District. All proceeds benefit the Deschutes River Chapter of Trout Unlimited.
Bend Casting Competition

If you're happy about the Bend Ale Trail and want to show it ... like it on Facebook here http://www.facebook.com/pages/Bend-Ale-Trail/136346183055413
And kindly tell your friends.

Want the latest on Mt Biking in the Central Oregon area keep up with the latest COTA news; read the August newsletter: http://www.cotamtb.net/August10Newsletter.html

Fund Raiser for the Bend Fire Pipes and Drums
‎10 Barrel Brewing and Pub is gracious enough to donate a portion of their profits on Tuesday 8/24/10 5-9pm to the Pipes and Drums and the Bend Fire Fighters Foundation! Portion of all sales will be donated! Please come and join us for dinner and help out a great cause! Band members will be guest servers that night, kilted and all! We may even play a few songs that night...

 

Les Schwab Amphitheater at the Old Mill District

The St. Charles Free Summer Sunday Concert Series presents Dangermuffin

this Sunday August 8, (americana/rock/reggae) and Victor Johnson (americana/folk) on August 15. Join us for a family friendly afternoon of great music from 2:30-4:30pm. Bring a picnic, the kids, your dog and some sunscreen for a fun filled afternoon in the sun.

Get ready to welcome

Bob Dylan and John Mellencamp on August 27

Clint Black and Luke Bryan on August 29
Willie Nelson visits Friday, September 17th, 2010, Ryan Bingham & The Dead Horses will open the show. His album Mescalito and a performance at Austin City Limits helped bring him into the national spotlight in 2007 with his gritty south of the border (lyrics in Spanish and English) Americana Roots Rock sound.

Tickets are on sale now via Ticketmaster and the Ticket Mill in the Old Mill District.

Great Music is in the air!

For me I will be out camping enjoying the warm summer days on the lake…

Buying rental property makes sense…

With vacancy rates for Bend rental homes hovering around 3.5% and home prices at ten year lows and interest rates at historic lows, the time is right for investors to pick inexpensive properties. The low vacancy rates are not likely to change anytime soon, many people have given up the fight to keep their mortgaged homes and have been forced out into the rental market to fulfill their housing needs. Those who have lost the battle to keep their home now face having their credit severely damaged for at least two years possibly longer, making purchasing a home all but impossible for the next few years. This scenario should keep the rental market strong for many years to come.

For those folks with the means and capital reserves now may be the time to take advantage of today’s market conditions. Currently there are 25 homes listed in the Bend market under $140,000 that are not short sales, nine of these homes were built in the year 2000 or after. Many renters are looking for modern comfortable homes that are easy to live in and do not require a large commitment for upkeep.

A good example is a three bedroom home with one and a half bathrooms built in 2007 currently listed at $132,900. With a 25% down payment and an investor’s mortgage interest rate of around 5.5% rate, an investor would be paying approximately $770 a month for principal, interest, taxes and insurance. A quick survey of Craigslist would show that a home of this caliber should fetch a monthly rental of approximately $950-$1250. This would put you on the path to having a positive cash flow.

Positive cash flow is just one benefit of a rental property, not to be over looked are the tax benefits of owning a rental property. Check with your accountant for how a rental property could best work for easing your tax burden. Currently the near term outlook for appreciation on a rental property is unlikely the long term prospects for Bend are good. Those who took advantage of the real estate downturn in the eighties to buy rental properties are still chuckling today.

Those who are skeptical of the Bend market should remember that all of the qualities that made Bend popular a few years ago are still here, it just that a few of our warts are now more apparent. People will still want to move to Bend because of its proximity to outdoor recreation, dry climate, great beer and easy life style. Bend will never be an employment Mecca but for those who are determined there is always a way to make the lifestyle work. Maybe owning rental properties will be part of your portfolio for successful Bend living.

COBA Tour of Homes and the Sagebrush Classic…

This weekend kicks off the Central Oregon Builders Associations Tour of Homes. The Duke Warner Realty staff will be hosting a Greg Welch designed and built home in Northwest Crossing. Set amidst ponderosa pines and rugged lava outcroppings on the west side of Bend, Oregon; Northwest Crossing is one of Bend’s premier neighborhoods. Come by 2330 NW High Lakes Loop and visit me while I host this beautiful and efficient home Saturday 12:30 p.m. through 3:30 p.m. and once again on Sunday 3:30 p.m. to 6:00 p.m.

Check out Greg’s attention to details in the quality and comfort of this energy efficient home set in a neighborhood that has it all, parks, schools, gourmet grocery, shops & restaurants! This home has an open floor plan with a master suite on the main, gourmet kitchen with tiled center island, plus den/office & loft. To assist you in making the most of your leisure time the yard is fully landscaped with automated irrigation system.

After visiting our open house there are 36 more homes on the COBA Tour of Homes to consider this year. The event is spread out over two weekend’s so do not feel rushed to visit every home this weekend. Take your time to view all the eye candy for those who love well crafted homes.

I am a little late with this one but tickets are still available so while you are in town, make plans to attend the Sagebrush Classic Feast at the Broken Top Golf Club. This event has become one Bend’s best parties with food prepared by world class chef’s who have flown into make this an experience not to be missed. All proceeds from the event will benefit the many family assistance programs around town.

Bend, Oregon Residential Real Estate Trends for June 2010

Here is my take on the Bend, Oregon real estate market at early summer. Currently there is more interest from buyers from out of the area than folks that live here. People who live here are still nervous about the lack of jobs and the uncertainty of what the future will bring, many are waiting for more pain to come. Buyers from out of the area see this market as a great opportunity and generally come from areas with a rosier outlook on the economy. They are buying properties as rentals, retirement homes or second homes. The better properties that are priced well are moving quickly to these people.

Overall the market is stronger than a year ago but is by no means healthy. The properties that are being purchased are usually very good deals but not necessarily distressed. Inventories of homes is down to an 8.8 month supply, one year ago we had 14.4 month supply. We have been in the 8 month range since March of this year. The stats break out that 21.21% of the homes sold the last three months are short sales, 34.38% are REO's and the remaining 44.41% are traditional sales. The traditional sales are closing at a rate of 95.93% list price to sales price, short sales are at 98.13% and REO's are at 96.47%. Here is a scary number that most folks do not consider, the original list price versus the sales price, the number has improved from last year's 79% and is now at 85%. We have been in the mid 80% range since December of last year; I would expect that number to improve as people lower their expectations for what their home is worth.

To sum it up the lower end of the market $225,000 and under, there will not be much more downward movement. The $225,000 through $425,000 has all sorts of properties and pricing strategies. While most properties are priced reasonably there will be some more movement downward. Most brokers realize the value in having correct pricing but sellers can be quite headstrong on the original pricing wanting to give the higher price a shot before succumbing to reality. The $425,000 and up market has the most room for more downward pressure.

Charted below are the trend numbers for the past three months. To view in a full screen click on the box in the lower right.

Good News For Buyers Qualifying for the Home Tax Credit…

Home buyer’s looking to keep their homebuyers tax credit in play received good news today. The bill which extends the timeline for those buyers who had a qualified offer in to purchase a home before April 30th and receive the home tax credit was passed by the Senate last night. The original bill for the extension of the home tax credit had been tied to the additional unemployment benefits bill which had failed in the Senate earlier this week. Heavy lobbying by the National Association of Realtors® (NAR) enabled the bill to be introduced as a free standing bill which passed the House of Representatives and Senate. The bill now awaits the President’s signature.

The bill also contains additional provisions to tighten the rules to prevent tax credit fraud. Given the news earlier this month concerning prison inmates, some who are in for a life sentences receiving benefits from the tax credit, this should be a welcome inclusion to the bill. One can only imagine how many other scams are defrauding the program are out there, hopefully the provisions in this bill can curtail a good portion of the fraud.

The federal home tax credit was part of the American Recovery and Reinvestment Act signed into law in February 2009. The $8,000 credit was available to first time buyers who purchased a house after January 1, 2009 and was originally scheduled to expire on November 30, 2009. The credit was seen to have stimulated home sales, especially in the lower price ranges, and in November Congress extended it through April 30 and added a $6,500 tax credit for non-first-time buyers.

Those who had qualified offers in before the April 30th date were given until June 30th to close their transaction. In many areas title companies struggled with the added push of home buyers trying to complete their deals creating a backlog that could not be cleared by the deadline. Others struggled with cumbersome short sale proceedings, even the most straight forward transactions can take an excoriating amount of time to complete. The new date to complete transactions for the tax credit is September 30th.

Mid Town Cool...Centrally Located

Home Tax Credit Extension Dies (for now) on Senate Floor…

Do you have a transaction that qualified for the home tax credit?


Today’s action by the senate killed a large stimulus bill which included business tax breaks, renewal of the flood insurance program and an extension of unemployment benefits. Also attached to the bill was an extension of the deadline for the home tax credit. Real estate transactions that had been in contract before April 30th have a current deadline of June 30th, the extension would give buyers until September 30th to complete the transaction.

Senate Majority Leader Harry Reid who is one of the bills biggest backers feels that the extension may survive through being attached to another bill that has a better chance of approval. Should the bill not survive as many as 180,000 transactions that have yet to close and are in danger of not qualifying for the rebate. Many of those who will not meet the deadline are tied up in a short sale transaction, which are notorious for their lengthy closings.

The failure of the bill may impact many who were counting on the credit to offset their closing costs or down payment. Those buyers could look to the seller to help offset the lose, though it may be a uphill battle if they are dealing with a large loan servicing company for approval of a short sale.

Stay tuned to see if the bill lives on…

Is Your Contractor Certified? Lead Paint The Next Big Thing…

Yesterday the EPA announced that it will ease the date for contractors to be certified and in compliance with more stringent abatement procedures. Originally set to be enforced starting this past April, contractors now have until September 30 to sign up for training and until December 31 to complete the training.


The new lead paint abatement rules involve home renovations for houses, day-care centers, and schools built before 1978. The new federal rule mandates that a contractor certified in the handling of lead-based paint be hired for any renovations. The rule is geared toward reducing lead exposure and poisoning in children.

Why is this a big deal for you and me? The requirements in this new program will add significant costs to any project on older homes and most likely will affect the value of homes from that are of pre-1978 vintage. Contractors who have completed the certification believe that the new rules will 20 to 40 percent to the cost of work done to these older homes. In addition to the cost increase will be the added time it takes to comply with the new requirements. What was once a six hour job will now become an eight hour job.

Even for the simplest job there will be a higher price tag. Since the new regulation governs areas as small as six square feet. For instance, because of the precautions, the repainting of a room that would have cost $500 could now cost more than $800.

Why the high cost? To start with, furniture and equipment has to be wrapped in plastic at least 6 mils thick, by comparison your average kitchen trash bag is only 1 mil thick. Similarly, floors, doorways and windows have to be lined with plastic and workers must wear protective gear, which must be removed and disposed of each time they leave the work site. There are also special vacuums needed for cleanup, costing as much as $850.

Previously if you were having your house re-sided the crew would come out strip off the old siding pile it up then haul it off. Now crews must hazard tape the perimeter of the property, notify all surrounding neighbors. The crew must wear protective gear while taking each board off individually, wrap it in plastic, seal it with tape then photograph it to document that the procedures were followed. Now these boards may be disposed of in the local landfill with no additional requirements.

Training and certification classes cost roughly $180 to $250 per student, and a business would have to pay an additional $400 to $560 to register as a certified contractor.

Contractors and handymen are required to keep detailed records of the work they do when lead is present, including photos, which could be reviewed by inspectors if a complaint was made. The fines for noncompliance are up to $37,500 per violation — for example, not taking proper precautions to contain and clean up dust.

Will buyers be put off by these daunting regulations? How will this affect values in our older home inventory? Will lenders require more documentation for these homes? Hard to say, safe to say we should all buy stock in the 3M Corporation if these regulations stay.

For more in depth information visit:

http://oregon.gov/DHS/ph/lead/Renovation_Repair_Painting_Rule.shtml

http://www.epa.gov/lead/pubs/renovation.html

Interest rates and opportunity...

If you were in Bend the last time we saw the housing market take a tumble, you would have witnessed scene reminiscent of today’s struggles. Many watched as the homes they purchased in the late 1970’s and early 80’s fall in value by as much as 40%. Such a dramatic drop in values presented those with the means the opportunity for some incredible bargains, which they turned into huge profits in later years. Most folks who wanted to purchase these bargains found them unobtainable as interest rates soared into double digits preventing most from taking advantage of what was at that time the “opportunity of a lifetime”.


As history has repeated itself and “opportunities of a lifetime” are once again plentiful. Your advantage in this go around, interest rates! What once crippled the housing industry has swung the other direction to a point so low one would not have imagined it possible just a few short years ago. Since late April interest rates are at historic lows and hover below 5%. As this week comes to a close rates have remained steady with a thirty year fix rate loan coming in at 4.72%. While under writing standards are as tough as they have ever been, we are seeing folks take advantage of today’s market to seize what will be tomorrows “I wish I would have bought that…” moment.

Many industry experts had anticipated a rise in rates this past spring, yet with the stumbling of the European financial markets our bond markets have remained a strong value for investors to invest their money. Common sense would say that as the markets stabilize interest will slowly begin to climb. As the rates climb the window of affordability for buying will shrink, the ability to snap up properties at a great value may slip away.

Will you be one of those that follow past cries saying “I could have bought that property five years ago for…”? While our market will not see rapid appreciation any time soon, now is the time to buy low so in five years you will be the one selling high.

USDA Rural Loan Guarantee Program Has Funding Extended ...

Great news for folks trying to purchase rural properties in Central Oregon.

Two weeks ago on May 26, 2010, the Department of Agriculture, authorized the issuance of Conditional Commitments for USDA’s Section 502 Single Family Housing Guaranteed Loan Program beginning immediately and continuing until $2.5 billion in loan limits is exhausted. If you are looking to purchase property outside of the Bend urban boundries this program maybe of great benefit to you!!

There are many properties close in to Bend and far from Bend that will qualify for these programs. Let me do the homework for you in your search for these properties!

Bend, Oregon Real Estate Trends April 2010

Residential
Price Range	Number Active		Number New	Number Pending	Number Reduced		Number Sold			Avg SP/LP		Avg DOM	Months of Inventory
$125,000 - $225,000	227		95	108	86		71			99%		133	3.2
$225,100 - $325,000	131		49	43	31		27			98%		166	4.9
$325,100 - $425,000	103		37	25	17		14			96%		257	7.4
$425,100 - $525,000	58		13	9	20		6			95%		350	9.7
$525,100 - $625,000	35		9	7	18		2			54%		270	17.5
$625,100 & up	98		21	5	22		8			90%		201	12.3
Total/ Average	652		224	197	194		128			89%		230	9
	Active		$125-$225	$225-$325	$325-$425		$425-$525			$525- $625		$625 & up	Total
	5/1/10		227	132	105		58			35		98	655
Residential with Acreage
Price Range	Number Active		Number New	Number Pending	Number Reduced		Number Sold			Avg SP/LP		Avg DOM	Months of Inventory
$125,000 - $225,000	36		7	9	15		6			94%		221	6
$225,100 - $325,000	31		5	3	8		0
$325,100 - $425,000	25		6	1	3		2			97%		103	12.5
$425,100 - $525,000	21		5	2	7		0
$525,100 - $625,000	11		1	0	4		3			93%		209	3.7
$625,100 & up	63		9	0	9		0
Total/ Average	187		33	15	46		11			95%		178	7
	Active		$125-$225	$225-$325	$325-$425		$425-$525			$525- $625		$625 & up	Total
	5/1/10		36	31	25		21			11		63	187
Bare Land
Price Range	Number Active		Number New	Number Pending	Number Reduced		Number Sold			Avg SP/LP		Avg DOM	Months of Inventory
$125,000 - $225,000	115		20	23	25		12			91%		177	9.6
$225,100 - $325,000	80		7	1	14		3			90%		117	26.7
$325,100 - $425,000	66		1	1	7		1			100%		254	66
$425,100 - $525,000	28		3	0	1		0
$525,100 - $625,000	10		1	0	1		0
$625,100 & up	19		0	0	1		0
Total/ Average	318		32	25	49		16			94%		183	34
	Active		$125-$225	$225-$325	$325-$425		$425-$525			$525- $625		$625 & up	Total
	5/1/10		117	81	66		28			10		19	321

This report came out a little jumbled as I am still learning the in and outs of moving information into my blog page. If you have any questions about this report or would like the full version sent to you in a PDF format, call or email me. I would be glad to send one over to you.