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.

New Grant Program available to help first time Oregon homebuyers!

Available starting today is a grant for first time home owners who earn less than or equal to the median income for their area of the state. Created by a partnership of the Oregon Association of REALTORS® and the Oregon Bankers Association, the HOME Sweet Home Program (HSHP) is designed to provide homeownership opportunities for Oregonians.


The Ira Gribin Workforce Housing Grants Program has provided the initial funding by providing $80,000 grant to the Oregon Realtors Association HOME Foundation. The goal is to address the growing need for affordable housing to the average layperson.

First time homeowners will be eligible for a $2000 grant funded by HSHP. Those interested in this program must be working on the home purchase with a broker who is a REALTOR® and obtain their mortgage through an Oregon Bankers Association member bank.

Time to get off the Fence, Sunset is coming….

The April 30 deadline for selecting a home and having it under contract is just weeks away. The National Association of Realtors has been in extensive discussions with Congress to gain an additional extension of the tax credit. Today the association announced that it is not likely to occur. The tax credit deadline combined with this week’s news that funding for the USDA Rural Housing Programs will run dry at about the same time and the Federal Reserve will no longer buy Fannie Mae and Freddie Mac mortgage backed securities signal it’s time to get off the fence and buy one of today’s bargains.


For many the tax credit program when combined with the USDA program can make all the difference in the world. Waiting for the perfect property or for the bottom of the market might prevent many from realizing their homeownership dream. For the rest of us fence sitting can prove equally damaging. Waiting, waiting, waiting, and then bam next thing you know it interest rates have risen and you can afford less house than before. By waiting you may have a slightly better price on the house but that added interest has moved you just out of the range of affordability.

If you are waiting on the fence do not fall prey, programs will be ending and interest rates will be rising. The programs have been fantastic, prices and interest rates are at historic lows, do not miss out the party is about to end.

Will your lender be seeking a deficiency judgment against you ….

The other day I was interviewing with a prospective client about their distressed property and the options available to them. After researching their options on the internet they were confused about whether a lender has the right to pursue a deficiency judgment against them if they were to short sell their home. Not wanting to go through the ordeal of selling their home only to have the unresolved debt stall their fresh start they asked for my take on the subject.


The first recommendation was that they seek professional counsel from a qualified real estate attorney and CPA. I then shared some of the research that the Oregon Realtors legal hotline had recently provided its members. The hotline offered that currently in Oregon since the short sale of a property is a voluntary modification of terms of the loan agreement, the new agreement can contain any terms the parties agree to. In a voluntary modification like a short sale the deficiency is the unpaid balance of the note. A note holder can sue in court for the unpaid balance of the note unless the maker of the note bargains for and gets “full satisfaction” of the note. Should the borrower get only the note holders verbal agreement to waive their lien and not foreclose that would leave the borrower exposed for the unpaid balance.

To get “full satisfaction” the borrower needs to ask for it!! Otherwise the lender is allowed to waive their lien on the property, forego foreclosure and continue to hold the note as an unsecured debt. Since the note is no longer secured by the property and has become a personal debt, the lender is no longer bound by the foreclosure laws of Oregon. The lender is now free to pursue a judicial judgment for the unsecured debt. In Oregon the statue of limitations for pursuing a judgment is ten years, with the possibility of an extension for another ten years. Just when you thought you would be rebuilding your credit in the next two to four years this dog could be following you around for the next ten years if you do not ask for and receive in writing “full satisfaction” to your lien.

You like the home but wish it had newer kitchen, larger bedrooms or a newer roof….

You have been searching and have found a property you really like but it needs a little love or maybe the rooms are too small and you want to expand them to make it the home you desire. Since 1978 HUD has provide a program design specifically for the buyer who is has found a home they like but needs some immediate attention. The program is designed to help provide a loan package for you to purchase and rehabilitate a home that has been completed for at least one year. The beauty of the program is that it rolls both the purchase price and renovation costs into one loan with a down payment as low as 3.5%.


There are two versions of this program available 203(k) and the 203(k) streamline. Both offer a loan to value rate maximum of 96.5% on the purchase and 110% on the renovation. The streamline program offers fewer restrictions, in this program there is no minimum renovation expense but it does have a capped at $35,000. All properties must be appraised prior to the loan and a value must be determined for the work to be performed. All work done must start within thirty days of closing and be completed within six months of closing. If you can keep your costs down to $15,000 no inspection of the completed work is required.

There are limits to the scope of work that can performed, slab granite counter tops won’t make the grade but a new roof, new appliances, upgrades to heating/cooling systems, flooring, new windows and much more are acceptable.

Ask your mortgage broker to explain the full benefits of how this program can benefit you! If your broker is unfamiliar with the program contact me and I would be glad refer you to a mortgage specialist who is familiar with all aspects of this great program.

I’ve fallen, can you help me find my way!

Are you like many of my clients where the last few years have not been kind to your finances? Do you owe more on your home than what it would sell for in today’s market? Have you been exploring your options; loan modification, deed-in-lieu, short sale, foreclosure or gutting it out and wait for the market value to return? With such a dizzying array of choices, all with serious repercussions, where should you start?

Seeking the wisdom of professionals well versed in today’s ever changing real estate landscape is your best chance to make the best of an unfortunate situation. Real estate agents/brokers are on frontline in this battle and can help provide direction and insight to current market conditions but few are licensed to practice law or give financial advice. The advice of a real estate attorney and a certified public accountant is essential to mapping out a strategy that could affect your finances for the next twenty years.

While most folks who find themselves in this ever evolving nightmare cannot begin to afford a $275 an hour attorney or accountant, there is alternative help available. Here are a few contacts to start with; Legal Aid Services of Oregon, LASO, 541-385-6944 for the Bend office or visit their web site at http://www.lasoregon.org/. Another option is Free Legal Aid at http://www.usattorneylegalservices.com/; this website will refer you to LASO, but also has a lot of good resources that will help depending on what path you take. The Free Legal Aid site has good examples of a sample hardship letter, debt settlement letter and more. Last but not least there is Neighbor Impact their mission is to help the economically disadvantaged in our area. Neighbor Impact offers mortgage default counseling amongst several other financial counseling programs. They can be reached at 541-548-2380 or visit their website at http://www.neighborimpact.org/.

No matter the path you chose, start your journey by collecting and organizing your financial information. Being prepared to provide the most intimate details of your finances will lessen the stress involved in discussing and planning your exit strategy.

You will need to collect a list of your income, assets and liabilities. Two months is the standard for providing pay stubs, bank, mortgage and other monthly statements. Have complete tax returns for the last two years at the ready. In your packet include all correspondence from your lender(s) pertaining to foreclosure of your property; if you have received a Notice of Default include it too. Rounding out your information packet, draft a letter that describes why you are in financial hardship. To say that your house is no longer of the value it once was will not suffice as a reason for your hardship, though it may be a large contributor to your situation.

Mentally prepare yourself for journey of twist and turns that will take months and possibly years to complete. Be strong as all things do pass and life will get better.

First Time Homeowner Rebate Coundown

Just sixty days left before the $8000 first time homeowners tax rebate expires this November 30th. Are you in position to take advantage of this program? If not it is time to move fast before this fabulous program gone.

The program is designed to bring first time home buyers or those who have not owned a home for three years or more into the market. This program combined with ultra low interest rates and home price that are in full retreat, a new home buyer has never had it better.

"Time is of the Essence" is a common phrase in real estate but never more relevant than now with home sales transactions taking anywhere from thirty to ninety days to close. Since the banking collapse many new laws have inacted to protect consumers. These laws have added more layers to the process of buying and closing a home. Ironically these laws meant to protect may now cost many the opportunity to buy a home.

First time buyers need to have there ducks in a row. First off having pre-approval from your lender is essential. Do the research in selecting a mortgage professional, make sure that they have a history of moving quickly to get all the paperwork processed in a timely fashion.

With pre-approval in hand, time will be short to find the right property, one that meets your physical and financial needs. There are a wide variety of buying situations that may provide the timing and value you need to close quickly.

Bank owned properties offer a tremendous value, they have their quirks but generally have fewer strings attached leading to a quicker closing.

With the short timeline most short sales are out of the picture. Short sales require the seller to get the approval of their lender(s). This is a time comsuming process sometimes taking over 120 days. Once the sale has approval you will need to tack on the lenders time needed to close out the sale. Occasionally there will be short sales available that have already been approved by the lender(s) for a previous buyer who's deal fell through. These properties can provide an opportunity to buy low with out having the unbearable wait.

Probably the least cumbersome is the conventional home sale. No need to deal with the sellers lenders here.

If you are looking to purchase in the Bend market, let me be your guide.


Bill Panton
Broker, Duke Warner Realty
1033 NW Newport Ave.
Bend, Oregon 97701
bpanton@dukewarner.com
cell 541-420-6545
office 541-382-8262
fax 541-385-3272