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Construction is already underway with the estimated opening date of March of 2013. Yes, we have to wait that long!

Target’s urban stores differ from the traditional suburban stores catering to the urbanites with such items as fresh food, disposables and daily use items as well as fashion and home furnishings.

Overall home prices dropped 6.7% in 2011. The medium home price dropped almost 8% illustrating that the lower priced homes have been outselling the higher priced homes, led by investors and first-time home buyers snatching up good real estate deals. Over the last few months the Portland-metro market has seen very small monthly increases in prices, further proof the market may be turning around.

To read more about the 2011 year in review, view the RMLS Market Action Report.

While the reduction in available homes on the market has not yet had a positive impact on the price of homes, it is a clear indicator that the market is shifting. As the housing supply shrinks the home prices will stabilize.

Here are some highlights from the November RMLS numbers:

• Home sales are up 18.9% in Nov 2011 vs. Nov 2010
• Pending homes sales rose 18.2% vs. last November
• New home listing were 18.1% lower than last November
• Prices shrunk 4.6% compared to last November
• YTD sales are up 3.4% and new listings are down 26%

Full RMLS report here

A short sale is when you reach an agreement with your mortgage company to sell the home for less than the current amount you owe. Your mortgage company will do this because it helps them get the home off the books for usually a lot cheaper and quicker than if the bank had to foreclose on the home.

If you are facing foreclosure you should consider a short sale. You can avoid the foreclosure process and in most cases the lender will forgive a portion of your current loan.  The drawback of a short sale is that your credit will likely be damaged. Fortunately it does not have the same impact as a foreclosure, but is severe enough to make getting loans difficult. In addition, most lenders will only entertain the idea of a short sale if you are several payments behind or if you have gotten a default notice. They will also consider the short sale option if you have suffered a life changing experience such as a divorce, job loss, medical issues, income reduction or you need to relocate.

Procedure:

1. Contact your lender and inform them that you would like to short sale your home. Each lender will have their own unique instructions as to what to do next. But generally….
2. You will need to prepare a “Hardship Letter,” which describes why you cannot continue to make payments on your loan.
3. Collect your bank statements, prepare a personal financial statement including monthly expenses and income.
   
4. Contact your real estate agent

Short sales may have legal and tax implications so it is always advised to speak to a lawyer or tax accountant about possible consequences.  Urban Pacific works with a professional short sale expert/negotiator to handle all shorts that we sell. The short sale negotiator handles all the communication with the bank and works to successfully complete the short sale as well as tries to remove any chance the IRS would come back on you for taxes associated with the forgiven loan. The negotiators has a much higher success rate of completing a short sale as well as removing any tax ramifications.

If you would like more information on how to short sell your home, contact ritchie@urbanpacificrealestate.com

Overall home prices declined 0.6% for the 20 metro areas included in the index. Only Portland, New York and Philadelphia saw improvement in prices.

• The number of homes sold in Sept 2011 vs. 2010 was up 13.4%
• The number of new homes on the market in Sept 2011 vs. 2010 was down 29.5%
• Average sales price of homes sold over the last 12 months vs. the previous 12 months was down 5.9%
• The 3rd quarter of 2011 vs. 2010 showed a 21.6% increase in the number of homes sold
• The average number of days it takes for a home to sell in the Portland Metro area is 131 days

To see the full RMLS report click here

Active listings (the # of homes on the market, not sold or pending) also took a dive, down 25% annually and 2% versus July. The drop left the Metro area with 6.2 months of inventory.

Month-to-month the average sales price fell about 1%. Comparing the last 12 months against the previous 12 month span, the prices have fallen about 5.8% annually in the Portland Metro area.

The Beaverton/Aloha, Milwaukee/Clackamas and Oregon City/Canby areas are continuing to see double digit price drops annually,  while the downtown market and close-in neighborhoods are seeing a stabilization in pricing.

For more information on the August RMLS statistics go HERE.

1. Appraisal Problems: Even if you do find a buyer willing to pay an inflated price, the fact is over 90% of buyers use some kind of financing to pay for their home purchase. If your home won’t appraise for the purchase price the sale will likely fail.
2. No Showings: Today’s sophisticated home buyers are well educated about the real estate market. If your home is overpriced they won’t bother looking at it, let alone make you an offer.
3. Branding Problems: When a new listing hits the market, every agent quickly checks the property out to see if it’s a good fit for their clients. If your home is branded as “overpriced”, reigniting interest may take drastic measures.
4. Selling the Competition: Overpricing helps your competition. How? You make their lower prices seem like bargains. Nothing is worse than watching your neighbors put up a sold sign.
5. Stagnation: The longer your home sits on the market, the more likely it is to become stigmatized or stale. Have you ever seen a property that seems to be perpetually for sale? Do you ever wonder – What’s wrong with that house?
6. Tougher Negotiations: Buyers who do view your home may negotiate harder because the home has been on the market for a longer period of time and because it is overpriced compared to the competition.
7. Lost Opportunities: You will lose a percentage of buyers who are outside of your price point. These are buyers who are looking in the price range that the home will eventually sell for but don’t see the home because the price is above their pre-set budget.

Most buyers look at 10-15 homes before making a buying decision. Because of this, setting a competitive price relative to the competition is an essential component to a successful marketing strategy.

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