Case Shiller released their most current index numbers today. We like this index because it reflects the value change of actual homes. CS compares a home's recent sales price to the it's previous purchase price. Based on this information, the Portland area logged an annual decline of 10% over the past one year period and a 8.4 % decline over a two year period.
This is the tenth month in a row that the index value for Portland has gone down. Real Estate values in Portland are now equivalent to February 2006 levels.
As tough as these numbers sound, nationally the one year decline was a whopping 19%.
Tuesday, December 30, 2008
Condo Trends: 2009 Forecast Condo Increases Overseas
Realty Times reports that if you're looking for where condo sales will trend upward in 2009, you may have to look outside the U.S. for such a forecast. Tokyo, Dubai and Newfoundland are all forecasting a rise in condo sales for 2009.
JapanEconomyNews.com reports the Real Estate Institute says that Japan should see an increase in condo sales of nearly 12 percent -- mostly because the market dipped so tremendously in 2008.
The website says, "The Real Estate Economic Institute must be looking at a combination of oversupply, heavily discounted prices and the chance that the economy will begin to turn around from the third quarter of next year -- or at least that consumer sentiment, wages and propensity to spend will be better."
Dubai, a hotbed of real estate investment for years, should see positive growth again in 2009, according to developers there. "The Chairman of Pearl Dubai, Abdul Majeed al Fahim, said, "As far as we are concerned there is no liquidity problem and our projects are on track," as reported on Dubai condo industry watcher EstatesDubai.com.
Closer to the U.S., some Canadian markets are also looking for growth in '09. St. Johns, Newfoundland has been one of the most stable markets throughout the international downturn. Realtors Stephen and Fraser Winters, a father-son team, report St. Johns will see another increase in sales this next year. "Seller's market conditions should prevail in 2009, with vendors commanding larger deposits and builders asking and getting at least five per cent down for new construction," they say on their blog stjohnsrealestateonline.com.
JapanEconomyNews.com reports the Real Estate Institute says that Japan should see an increase in condo sales of nearly 12 percent -- mostly because the market dipped so tremendously in 2008.
The website says, "The Real Estate Economic Institute must be looking at a combination of oversupply, heavily discounted prices and the chance that the economy will begin to turn around from the third quarter of next year -- or at least that consumer sentiment, wages and propensity to spend will be better."
Dubai, a hotbed of real estate investment for years, should see positive growth again in 2009, according to developers there. "The Chairman of Pearl Dubai, Abdul Majeed al Fahim, said, "As far as we are concerned there is no liquidity problem and our projects are on track," as reported on Dubai condo industry watcher EstatesDubai.com.
Closer to the U.S., some Canadian markets are also looking for growth in '09. St. Johns, Newfoundland has been one of the most stable markets throughout the international downturn. Realtors Stephen and Fraser Winters, a father-son team, report St. Johns will see another increase in sales this next year. "Seller's market conditions should prevail in 2009, with vendors commanding larger deposits and builders asking and getting at least five per cent down for new construction," they say on their blog stjohnsrealestateonline.com.
Monday, December 29, 2008
Pearl District with Snow
OK, here's the last post with a picture of the snow. It was taken by Bill Barry-BarryFoto with a 15mm fish eye lens. The location is the Starbucks on the corner of NW 11th and Lovejoy. The streets are set at a 90 degree angle but the rounded curve of the streetcar track combined with the fish eye lens makes the whole scene look like something we'd see in Paris.
Friday, December 26, 2008
Polar Express - The Movie
Now that Christmas is past and the cold spell seems to be breaking, what to do with the holiday time that remains. Perhaps take in a movie, maybe on an Omnimax screen over at OMSI.
Playing thru January 4 is The Polar Express.
Watch snowflakes float down on Portland’s largest screen and feel the train rumble via 12,000 watts of digital surround sound when The Polar Express arrives at the OMNIMAX Dome Theater. Based on the classic Caldecott award-wining children’s book written by Chris Van Allsburg, the film tells the story of a young boy’s extraordinary train ride to the North Pole and his discovery that the wonder of life never fades for those who believe. Tom Hanks stars.
Watch snowflakes float down on Portland’s largest screen and feel the train rumble via 12,000 watts of digital surround sound when The Polar Express arrives at the OMNIMAX Dome Theater. Based on the classic Caldecott award-wining children’s book written by Chris Van Allsburg, the film tells the story of a young boy’s extraordinary train ride to the North Pole and his discovery that the wonder of life never fades for those who believe. Tom Hanks stars.
Wednesday, December 24, 2008
Wheels When You Need Them
Tuesday, December 23, 2008
Home Sales Down Nationally
Last week we commented that home sales in the Portland Area had taken a big drop during the month of November. Today, the National Association of Realtors (NAR) reported that, nationally, sales of existing homes plunged far more than expected last month as buyers recoiled from October's financial wreckage on Wall Street. The median sales price fell by the largest amount on record.
The association said Tuesday existing home sales fell 8.6 percent to an annual rate of 4.49 million in November, from a downwardly revised pace of 4.91 million in October.
Sales had been expected to fall to a pace of 4.9 million units. according to Thomson Reuters.
The median sales price plunged 13.2 percent in November to $181,300, from $208,000 a year ago. That was the lowest price since February 2004, the biggest year-over-year drop on records going back to 1968 and most likely the biggest drop since the Great Depression.
The association said Tuesday existing home sales fell 8.6 percent to an annual rate of 4.49 million in November, from a downwardly revised pace of 4.91 million in October.
Sales had been expected to fall to a pace of 4.9 million units. according to Thomson Reuters.
The median sales price plunged 13.2 percent in November to $181,300, from $208,000 a year ago. That was the lowest price since February 2004, the biggest year-over-year drop on records going back to 1968 and most likely the biggest drop since the Great Depression.
Saturday, December 20, 2008
Cars Slide getting out of the South Waterfront
This video was shot by South Waterfront resident Bob Cronk of cars trying to drive up and out of the the South Waterfront area last Monday. Maybe he will create another one after tonight's storm.
Mice suspected in Million-Dollar Cheese Destruction
Mice are the unlikely villains of a new setback for the Italian cheese industry after allegedly spoiling more than $1m (€777,000) of products in the Northern city of Parma, say news reports.
Mice excrement and carcasses were found by police at a warehouse in the city, leading to the seizure of 2000 cheese rounds weighing about 80 tons, according to the Russian news agency RIA Novosti.
The cheese, produced by a local manufacturer, was partly destroyed with further tests determining whether other samples are still safe for consumption, according to the report.
Parma is famously associated as a key area for the production of Parmigiano Reggiano cheese.
Mice seem to be in the news frequently these days. They apparently are the prime suspects in a deadly cat fire near the Canadian city of Toronto. More on that here.
Friday, December 19, 2008
The Best French Fries
My wife and I had dinner last night at the Daily Cafe on the Pearl. It was a classic winter evening with holiday lights and snow flurries in the air. I had an appointment to show a condo at The Mackenzie Lofts so we decided to have a quick dinner then meet our client.
I must say, their french fries are about the best I have ever eaten. Thinly cut, lightly fried, and covered with a terrific seasoning. I asked the waitress what they put on their fries but she wouldn't completely give away the secret. Suffice it to say, it's a combination of herbs and spices.
The Daily is located at 902 NW 13th Ave (+ Kearney St).
I must say, their french fries are about the best I have ever eaten. Thinly cut, lightly fried, and covered with a terrific seasoning. I asked the waitress what they put on their fries but she wouldn't completely give away the secret. Suffice it to say, it's a combination of herbs and spices.
The Daily is located at 902 NW 13th Ave (+ Kearney St).
Thursday, December 18, 2008
An Idea for old Cell Phones
Like many, we have a bunch of old cell phones, PDAs, etc stashed in a drawer in our storage area. Not wanting to just through them away, we've been looking for something constructive to do with them.
Multnomah County has an option that can help keep the electronics' toxic elements out of the landfill, clear some clutter from your home and earn the cash-strapped county a little change.
You can dump your old cell phones, PDAs, MP3 players, chargers and Bluetooth headsets into one of the free recycling bins at 11 locations across the county. Drop boxes are at libraries and other county buildings.
Commissioner Jeff Cogen launched the program in October, but is pushing hard to get the word out to county residents as the gift-giving season approaches.
"Very few cell phones get recycled — Americans have three to five waiting in a drawer waiting for a solution, and we can help them," Cogen says. "This doesn't cost the county anything and addresses the needs out there."
Tossing cell phones in the trash brings environmental consequences, says Kat West, Multnomah County sustainability manager. Recycling or reusing 100 million cell phones could save enough energy to power 370,000 U.S. homes a year, according to the EPA.
Multnomah county will sell the phones to Wireless Alliance, a Colorado-based recycling company that will reuse or recycle them. The county isn't expecting big bucks. But the program costs the county — and you — nothing and could bring in up to $40,000 a year.
From Oregonlive.com --Nikole Hannah-Jones
Multnomah County has an option that can help keep the electronics' toxic elements out of the landfill, clear some clutter from your home and earn the cash-strapped county a little change.
You can dump your old cell phones, PDAs, MP3 players, chargers and Bluetooth headsets into one of the free recycling bins at 11 locations across the county. Drop boxes are at libraries and other county buildings.
Commissioner Jeff Cogen launched the program in October, but is pushing hard to get the word out to county residents as the gift-giving season approaches.
"Very few cell phones get recycled — Americans have three to five waiting in a drawer waiting for a solution, and we can help them," Cogen says. "This doesn't cost the county anything and addresses the needs out there."
Tossing cell phones in the trash brings environmental consequences, says Kat West, Multnomah County sustainability manager. Recycling or reusing 100 million cell phones could save enough energy to power 370,000 U.S. homes a year, according to the EPA.
Multnomah county will sell the phones to Wireless Alliance, a Colorado-based recycling company that will reuse or recycle them. The county isn't expecting big bucks. But the program costs the county — and you — nothing and could bring in up to $40,000 a year.
From Oregonlive.com --Nikole Hannah-Jones
Wednesday, December 17, 2008
Planning the Budget for a Successful HOA
I came across an article on HOA budgets in one of our real estate related newsletters. Since I work on the finance committee of a local HOA, it caught my eye. Here is an edited version:
Every homeowner association needs a well crafted annual budget to calculate the fees to be paid by the members. A review and revision should happen each year without exception because costs change every year. Failure to revise (read "increase") each year will put the HOA deeper and deeper in the hole. There are number of areas that every budget review should include:
Historical Operating Expenses. Examine the most recent 12 months' expenses to determine your base for each expense line item.
Anticipated Increases. Utility costs typically increase every year. Contract services also are subject to increase.
Contingency. HOAs often experience unforeseen expenses and/or revenue shortfall. Add 5-10% of the total budget to cover this.
Reserve Funds. Every HOA should set aside funds for future common element repairs and replacements. Both Fannie Mae and Freddie Mac (the entities that underwrite most home mortgages) require at least 10% of the condominium annual revenues be dedicated to reserves. For HOAs with little common area or few common elements, 10% may suffice but condominiums often need 25% or more of the annual budget dedicated to this purpose.
Experts advise not comparing the fees of one association too closely to that of another association. The financial fingerprint of each HOA is unique...no two are alike. The budget needs to be based on the specific services required to maintain the operation and reserves, not what the Joneses are doing. The Joneses may be headed for disaster. Even similar HOAs can have very different financial requirements. Some have higher insurance premiums due to prior claims. Some have funded their reserves appropriately, some are catching up, and some haven't even started yet. Some take care of repairs on a pro-active basis and some have deferred maintenance. Some have earthquake insurance, cable TV and Internet access and some don't. In other words, the "HOA fee" doesn't include the same costs in all complexes so comparing the bottom line without knowing what created it is meaningless. Your HOA fees should be based on specific needs, not the neighbor's.
What about cost cutting? Most HOA expenses are not discretionary but there are some areas with great potential for savings, such as:
Insurance. Increasing the insurance deductible lowers the premium. However, if this is done, there should be an Insurance Deductible reserve spread over, say, three years to cover at least one claim. If no claims are filed during the three years, the money is saved.
Landscaping Renovation. Older HOAs often have vast turf areas which are very expensive to maintain. Replacing turf areas with planting beds filled with drought resistant plants and bushes can dramatically reduce costs.
Lighting. Compact fluorescent bulbs use 70% less energy and last years longer than traditional incandescent bulbs. They usually work with existing fixtures and the brighter light they cast enhances security.
Heating & Air Conditioning. If the HOA provides central heating and air conditioning, it is often worth installing new energy efficient equipment. Your utility company usually can provide you a cost/benefit analysis. The older your existing equipment, the faster the payback.
Hot Water Heating System. The same cost/benefit approach applies to central hot water systems. Investing in new equipment can often pay back in only a few years with the energy costs savings.
In the final analysis, the board is charged with running business in the best interest of all members. Sometimes that means ruffling a few feathers. But the board has the fiduciary duty to set the HOA fees at a level that is adequate to cover realistic operating and reserve expenses. Budgeting for success means planning, leadership and execution.
Every homeowner association needs a well crafted annual budget to calculate the fees to be paid by the members. A review and revision should happen each year without exception because costs change every year. Failure to revise (read "increase") each year will put the HOA deeper and deeper in the hole. There are number of areas that every budget review should include:
Historical Operating Expenses. Examine the most recent 12 months' expenses to determine your base for each expense line item.
Anticipated Increases. Utility costs typically increase every year. Contract services also are subject to increase.
Contingency. HOAs often experience unforeseen expenses and/or revenue shortfall. Add 5-10% of the total budget to cover this.
Reserve Funds. Every HOA should set aside funds for future common element repairs and replacements. Both Fannie Mae and Freddie Mac (the entities that underwrite most home mortgages) require at least 10% of the condominium annual revenues be dedicated to reserves. For HOAs with little common area or few common elements, 10% may suffice but condominiums often need 25% or more of the annual budget dedicated to this purpose.
Experts advise not comparing the fees of one association too closely to that of another association. The financial fingerprint of each HOA is unique...no two are alike. The budget needs to be based on the specific services required to maintain the operation and reserves, not what the Joneses are doing. The Joneses may be headed for disaster. Even similar HOAs can have very different financial requirements. Some have higher insurance premiums due to prior claims. Some have funded their reserves appropriately, some are catching up, and some haven't even started yet. Some take care of repairs on a pro-active basis and some have deferred maintenance. Some have earthquake insurance, cable TV and Internet access and some don't. In other words, the "HOA fee" doesn't include the same costs in all complexes so comparing the bottom line without knowing what created it is meaningless. Your HOA fees should be based on specific needs, not the neighbor's.
What about cost cutting? Most HOA expenses are not discretionary but there are some areas with great potential for savings, such as:
Insurance. Increasing the insurance deductible lowers the premium. However, if this is done, there should be an Insurance Deductible reserve spread over, say, three years to cover at least one claim. If no claims are filed during the three years, the money is saved.
Landscaping Renovation. Older HOAs often have vast turf areas which are very expensive to maintain. Replacing turf areas with planting beds filled with drought resistant plants and bushes can dramatically reduce costs.
Lighting. Compact fluorescent bulbs use 70% less energy and last years longer than traditional incandescent bulbs. They usually work with existing fixtures and the brighter light they cast enhances security.
Heating & Air Conditioning. If the HOA provides central heating and air conditioning, it is often worth installing new energy efficient equipment. Your utility company usually can provide you a cost/benefit analysis. The older your existing equipment, the faster the payback.
Hot Water Heating System. The same cost/benefit approach applies to central hot water systems. Investing in new equipment can often pay back in only a few years with the energy costs savings.
In the final analysis, the board is charged with running business in the best interest of all members. Sometimes that means ruffling a few feathers. But the board has the fiduciary duty to set the HOA fees at a level that is adequate to cover realistic operating and reserve expenses. Budgeting for success means planning, leadership and execution.
Tuesday, December 16, 2008
Festival of Lights at The Grotto
A popular evening activity for Portlanders is to visit the Festival of Light at The Grotto. Located at NE82nd and Sandy Blvd, the Grotto has been putting on this delightful display of Christmas cheer since 1988.
Through the presentation of spectacular lights, hourly music concerts, outdoor caroling, and other family entertainment, The Grotto's festival surrounds visitors with the traditional sights and sounds of this wondrous holiday season.
The Grotto's Christmas Festival of Lights is a walk-through event. Free parking is available. While all entertainment areas are fully tented and all concerts are performed indoors, visitors and volunteers should dress for the weather, including warm rubber soled shoes.
Through the presentation of spectacular lights, hourly music concerts, outdoor caroling, and other family entertainment, The Grotto's festival surrounds visitors with the traditional sights and sounds of this wondrous holiday season.The Grotto's Christmas Festival of Lights is a walk-through event. Free parking is available. While all entertainment areas are fully tented and all concerts are performed indoors, visitors and volunteers should dress for the weather, including warm rubber soled shoes.
Saturday, December 13, 2008
Real estate sales down in November
The following is from the RMLS Market Action newsletter I received today. It indicates November was a very slow month:
The number of closed sales dropped 39.9% compared to last November. The 1,041 sold properties was the lowest sales total since February 1993. Pending sales also fell 31.7% compared to last November.
New listings decreased 20.2%.
Comparing November 2008 to October 2008, new listings dropped 25.5% (2,687 v. 3,605). Pending sales declined 12.6% (1,108 v. 1,268) and closed sales were down 28.9% (1,041 v. 1,465).
The inventory of homes grew to a record 15 months, assuming that the 15,611 active residential listings are sold at the month’s rate of sales (1,041).
The average sale price for November 2008 was down 10.5% compared to November 2007, while the median sale price dropped 7%.
The number of closed sales dropped 39.9% compared to last November. The 1,041 sold properties was the lowest sales total since February 1993. Pending sales also fell 31.7% compared to last November.
New listings decreased 20.2%.
Comparing November 2008 to October 2008, new listings dropped 25.5% (2,687 v. 3,605). Pending sales declined 12.6% (1,108 v. 1,268) and closed sales were down 28.9% (1,041 v. 1,465).
The inventory of homes grew to a record 15 months, assuming that the 15,611 active residential listings are sold at the month’s rate of sales (1,041).
The average sale price for November 2008 was down 10.5% compared to November 2007, while the median sale price dropped 7%.
Friday, December 12, 2008
Pre-cycling, the next evolution in recycling
Lately, several news organizations have come out with articles documenting problems within the recycling industry. The demand for recycled material is shrinking dramatically. This makes sense because as our national economy shrinks, factory production is down and the need for raw material is way down. Recycled “stuff” is raw material for a factory.
Now is the right time to examine the items we recycle and determine if we ever really need to bring it home in the first place. Know as “pre-cycling” it means not creating waste in the first place.
I’m reminded of the recycling laws implanted in Germany. The first step took effect at the end of 1991, requiring manufacturers and distributors to take back the cartons and crates in which they ship their products to retailers. The second step, which became effective in April 1992, requires recycling of product packaging. The law allows customers to leave outer packages, such as the cardboard boxes that their tubes of toothpaste come in, behind at the store. What is interesting here is the requirement for manufacturers to take back the packaging themselves. The result is that product packaging has been reduced at the source as manufacturers began to eliminate it on the front end instead of getting it back on the return end.
Pre-cycling has come of age. Now that the market for recycled material has stalled, we need to stop bringing this stuff home in the first place.
Now is the right time to examine the items we recycle and determine if we ever really need to bring it home in the first place. Know as “pre-cycling” it means not creating waste in the first place.I’m reminded of the recycling laws implanted in Germany. The first step took effect at the end of 1991, requiring manufacturers and distributors to take back the cartons and crates in which they ship their products to retailers. The second step, which became effective in April 1992, requires recycling of product packaging. The law allows customers to leave outer packages, such as the cardboard boxes that their tubes of toothpaste come in, behind at the store. What is interesting here is the requirement for manufacturers to take back the packaging themselves. The result is that product packaging has been reduced at the source as manufacturers began to eliminate it on the front end instead of getting it back on the return end.
Pre-cycling has come of age. Now that the market for recycled material has stalled, we need to stop bringing this stuff home in the first place.
Thursday, December 11, 2008
Market Conditions
The National Association of Realtors reported yesterday that that pending home sales eased against a deteriorating economic backdrop but remain in a stable range.
Lawrence Yun, NAR chief economist, noted, “Despite the turmoil in the economy, the overall level of pending home sales has been remarkably stable over the past year, holding in a generally narrow range. We did see a spike in August when mortgage conditions temporarily improved, which underscores two things – there is a pent-up demand, and access to safe, affordable mortgages will bring more buyers into the market.”
Regionally, the South saw the biggest increase, at a 7.8 percent jump. The region the furthest behind last year's numbers is the West -- still down 17.4 percent from last year.
The pending home sales index could continue to rise as interest rates fall.
Wednesday, December 10, 2008
Zip Car Memberships on sale
Zipcar is offering discounted memberships to residents of the Pearl District.
Between now and December 31st you can join Zipcar for $25 and receive a $35 driving credit (a savings of $50). Make sure to use the promo code "bigreveal" when filling out the application.
Zipcar has more than 20 vehicles located throughout the Pearl District, pick from over 15 different makes and models, BMW 380, Toyota Tacoma, Toyota Prius, Volvo S40, MINI and so many more... Gas, insurance and parking included!
You will find more information about this offer at http://www.zipcar.com/bigreveal/
Between now and December 31st you can join Zipcar for $25 and receive a $35 driving credit (a savings of $50). Make sure to use the promo code "bigreveal" when filling out the application.Zipcar has more than 20 vehicles located throughout the Pearl District, pick from over 15 different makes and models, BMW 380, Toyota Tacoma, Toyota Prius, Volvo S40, MINI and so many more... Gas, insurance and parking included!
You will find more information about this offer at http://www.zipcar.com/bigreveal/
Tuesday, December 9, 2008
Christmas Ship Parade
The annual downtown Christmas ship parade begins tomorrow. The fleet sails each evening thru December 21st. There are approximately 55-60 boats divided into two fleets. One sails on the Columbia and the other sails on the Willamette.
This is the 54th year for this popular event. Best place to view is at Waterfront Park near Riverplace Marina. The boats get into formation between 6:30 and 7pm. For more information please visit their web site at http://www.christmasships.org.
Monday, December 8, 2008
Entering the Blogosphere
We are pleased to be a part of the collective community of blogs known as the Blogosphere. Since all blogs are on the Internet by definition, they may be seen as interconnected and socially networked.
I did some research on the Blogosphere and found this on wikipedia: The term was coined on September 10, 1999 by Brad L. Graham as a joke. It was re-coined in 2002 by William Quick and was quickly adopted and propagated by the warblog community. The term resembles the older word logosphere (from Greek logos meaning word, and sphere, interpreted as world), the "the world of words", the universe of discourse.
For those of us who are more visual, here is a simple picture of the Blogosphere -
Friday, December 5, 2008
Mortgage rates as low as 4% ???
Yesterday I heard that mortgages rates were going to go to 4% based on a new government program. Like a lot of information these days, the truth doesn't always live up to the hype. A local lender sent me this today:
"We interrupt this broadcast to let you know everyone in the US is now eligible for a new mortgage rate at 4.5%" But wait, there's more..."Act now and we'll return your 401k to the highest level it has ever been."
I hate to say it, but you may have already heard something to this effect...if not. Pay attention, you will. The news media has been blasting this story on the front pages of every paper including the Wall Street Journal.
FACT: The US Treasury Department has NOT signed any new "acts" or "stimulus packages" that will make banks and mortgage companies issue loans at 4.5%. Treasury Secretary Paulson, admits that there was merely a "proposal" mentioned and the idea is being tossed around...but there is still much discussion needed before a plan like this would be put into place.
Paulson also said that "IF" such a plan were to pass, the 4.5% rate would ONLY be for home-owners buying new homes...NOT for those refinancing. As with Bush's Economic Stimulus Package that was passed this February, there would certainly be strings attached as well.
Remember, in this credit market, interest rates for mortgages are tied to a person's credit score, the amount of equity in their home and the amount borrowed. As much as I would LOVE to see EVERYONE get a flat rate of 4.5%...I honestly would be shocked, happily, but shocked if this plan ever became reality.
BOTTOMLINE: If you were planning on buying a home and thought today's rates (in the mid 5% range) was good...DON'T PASS IT UP. If you were thinking about refinancing...let's do the math together. If it saves you enough money, DO NOT wait another day. You may not get another chance like this for a long time.
"We interrupt this broadcast to let you know everyone in the US is now eligible for a new mortgage rate at 4.5%" But wait, there's more..."Act now and we'll return your 401k to the highest level it has ever been."
I hate to say it, but you may have already heard something to this effect...if not. Pay attention, you will. The news media has been blasting this story on the front pages of every paper including the Wall Street Journal.
FACT: The US Treasury Department has NOT signed any new "acts" or "stimulus packages" that will make banks and mortgage companies issue loans at 4.5%. Treasury Secretary Paulson, admits that there was merely a "proposal" mentioned and the idea is being tossed around...but there is still much discussion needed before a plan like this would be put into place.
Paulson also said that "IF" such a plan were to pass, the 4.5% rate would ONLY be for home-owners buying new homes...NOT for those refinancing. As with Bush's Economic Stimulus Package that was passed this February, there would certainly be strings attached as well.
Remember, in this credit market, interest rates for mortgages are tied to a person's credit score, the amount of equity in their home and the amount borrowed. As much as I would LOVE to see EVERYONE get a flat rate of 4.5%...I honestly would be shocked, happily, but shocked if this plan ever became reality.
BOTTOMLINE: If you were planning on buying a home and thought today's rates (in the mid 5% range) was good...DON'T PASS IT UP. If you were thinking about refinancing...let's do the math together. If it saves you enough money, DO NOT wait another day. You may not get another chance like this for a long time.
Thursday, December 4, 2008
Ask the HOA Expert
I came across a good article by Richard Thompson in one of our real estate related newsletters which I thought would be of interest to condo dwellers.
Question: If the governing documents state that maintenance of the common area is the responsibility of the homeowner association, can the Board enact a policy that allows homeowners to plant flowers around their unit and mandate that homeowners maintain that area?
Answer: The board has no authority to enact a policy that contradicts the governing documents. Amending the governing documents requires an appropriate vote of the members ("appropriate" means the percentage of members required in the governing documents).
Question: What are my options as an owner if the board and management company refuse to enforce one of the rules? I've filed an official complaint and they refuse to act. It's a board member in violation.
Answer: "One of the rules" is a bit vague. Not all rules are created equal nor carry the same importance of enforcement. But assuming the rule in question is a flagrant violation like parking an illegal vehicle, harboring a killer pit bull or adding an unapproved addition to his house or condo, then you indeed have the right to question what is going on. A board member who thinks that rules only apply to others should not remain on the board for obvious reasons. Foxes guarding the hen house seldom serve the chickens.
Your next move might include a petition signed by a significant number of owners, say, five to ten, who agree with you. The petition should describe the specific violation and the need to correct or cease and desist. If that does not have the desired effect, a letter from an attorney might do the trick. Board members have personal liability for their HOA actions and some have been subject to sizable fines from the court for failure to heed that fact. Lastly, you have the right to run for the board to start making a difference. It’s often easier to make changes from within than without.
Question: A unit owner has requested that the HOA repair damage to his unit deck that was caused by a prior owner. It looks like burn marks from a barbecue. This owner claims the HOA should inspect units for sale so this kind of damage is repaired prior to sale closing.
Answer: This damage is not normal wear and tear and damage caused by a resident, even a previous resident, is not the responsibility of the HOA. And, no, the board is not responsible to inspect units that are for sale. Presumably this owner did not buy the unit sight unseen and likely knew of the damage before closing the deal. If it was a deal breaker, he should have made sure the seller fixed it, not the HOA.
While HOAs are often responsible to repair and replace things like decks, the board should maintain all units in a consistent and cost effective manner, and not take special action or expense to increase a particular unit’s value or marketability.
Question: If the governing documents state that maintenance of the common area is the responsibility of the homeowner association, can the Board enact a policy that allows homeowners to plant flowers around their unit and mandate that homeowners maintain that area?
Answer: The board has no authority to enact a policy that contradicts the governing documents. Amending the governing documents requires an appropriate vote of the members ("appropriate" means the percentage of members required in the governing documents).
Question: What are my options as an owner if the board and management company refuse to enforce one of the rules? I've filed an official complaint and they refuse to act. It's a board member in violation.
Answer: "One of the rules" is a bit vague. Not all rules are created equal nor carry the same importance of enforcement. But assuming the rule in question is a flagrant violation like parking an illegal vehicle, harboring a killer pit bull or adding an unapproved addition to his house or condo, then you indeed have the right to question what is going on. A board member who thinks that rules only apply to others should not remain on the board for obvious reasons. Foxes guarding the hen house seldom serve the chickens.
Your next move might include a petition signed by a significant number of owners, say, five to ten, who agree with you. The petition should describe the specific violation and the need to correct or cease and desist. If that does not have the desired effect, a letter from an attorney might do the trick. Board members have personal liability for their HOA actions and some have been subject to sizable fines from the court for failure to heed that fact. Lastly, you have the right to run for the board to start making a difference. It’s often easier to make changes from within than without.
Question: A unit owner has requested that the HOA repair damage to his unit deck that was caused by a prior owner. It looks like burn marks from a barbecue. This owner claims the HOA should inspect units for sale so this kind of damage is repaired prior to sale closing.
Answer: This damage is not normal wear and tear and damage caused by a resident, even a previous resident, is not the responsibility of the HOA. And, no, the board is not responsible to inspect units that are for sale. Presumably this owner did not buy the unit sight unseen and likely knew of the damage before closing the deal. If it was a deal breaker, he should have made sure the seller fixed it, not the HOA.
While HOAs are often responsible to repair and replace things like decks, the board should maintain all units in a consistent and cost effective manner, and not take special action or expense to increase a particular unit’s value or marketability.
Wednesday, December 3, 2008
South Waterfront Holiday Party
Residents of the South Waterfront district are invited to the annual neighborhood holiday party this evening. The event will begin 5:30pm at Rilassi Coffee House and Tea for holiday food, drinks, mingling with neighbors, and kids activities. There will then be an Oregon Symphony Quintet performance held across the street in the John Ross plaza.
The event will include horse drawn carriage rides and music by DJ Mr. Mumu.
The event will include horse drawn carriage rides and music by DJ Mr. Mumu.
Downtown Condo Real Estate Report
Downtown condo sales were slower in November than in October. According to the RMLS system, there were 39 units sold in the month of November compared to 48 the previous month. These sales volumes are a continuation of the sluggish trend that began in the fall of 2007.
Sale prices in November ranged from $121,900 for a 320 sqft studio in NW Portland, to $1,025,000 for a 2346 sqft unit in South Waterfront at Atwater Place.
Sale prices in November ranged from $121,900 for a 320 sqft studio in NW Portland, to $1,025,000 for a 2346 sqft unit in South Waterfront at Atwater Place.
Tuesday, December 2, 2008
First Thursday Gallery Suggestions
For those planning to "gallery hop" this Thursday, here are suggestions from a few of our favorite galleries, courtesy of PADA - Portland Art Dealers Association:
- Elizabeth Leach Gallery, 417 NW 9th Ave features recent paintings by Stephen Hayes and new watercolor drawings by Justin Gibbens.
- Mark Woolley Gallery, 817 SW 2nd Ave features selections from ME9 by Stephen Scott Smith.
- Butters Gallery, 520 NW Davis will feature two new complimentary bodies of work by Andrea Schwartz-Feit and a selection of vintage ceramics from the Katsunari Toyoda Collection.
- Portland Art Museum, 1219 SW Park Ave is featuring works by Jonathan Lasker.
- Blackfish Gallery, 420 NW Ninth Ave features recent works of Christopher Shotola-Hardt and Kentree Speirs.
- The Laura Russo Gallery, 805 NW 21st Ave features new paintings by Sherrie Wolf and recent works from Rae Mahaffey.
Monday, December 1, 2008
Asa Lovejoy
The Sunday Oregonian had a really good story about NW Lovejoy St. The gist of the article is that Lovejoy is a downtown street that provides a bridge between the past, present, and the future. What I found interesting in the article were several bits of information that were "a ha" moments for me.
First, the street is named after Asa Lovejoy, one of our city's founders. There is a new apartment building right across the street from our office on Lovejoy Street named Asa Flats and Lofts. I had been wondering how they came up with that name. Clever of the building owners to apply the first name of this city founder to a building located on a street bearing his last name.
The second bit of interesting info is the story of how Portland received it's name. I had forgotten this tale. Seems that in 1845, Asa Lovejoy and Francis W. Pettygrove each wanted to name the new town after their home towns: Boston, Mass. and Portland, Maine respectively. They settled the argument with a coin toss. Pettygrove won two out of three coin tosses.
Third, the article talked a little about the historic Marshall Wells building, now lofts. It referenced one of our listings in that building. It's one of the best priced lofts in the Pearl; a 722-square-foot, one-bedroom, one-bath unit for $259,900.
First, the street is named after Asa Lovejoy, one of our city's founders. There is a new apartment building right across the street from our office on Lovejoy Street named Asa Flats and Lofts. I had been wondering how they came up with that name. Clever of the building owners to apply the first name of this city founder to a building located on a street bearing his last name.
The second bit of interesting info is the story of how Portland received it's name. I had forgotten this tale. Seems that in 1845, Asa Lovejoy and Francis W. Pettygrove each wanted to name the new town after their home towns: Boston, Mass. and Portland, Maine respectively. They settled the argument with a coin toss. Pettygrove won two out of three coin tosses.
Third, the article talked a little about the historic Marshall Wells building, now lofts. It referenced one of our listings in that building. It's one of the best priced lofts in the Pearl; a 722-square-foot, one-bedroom, one-bath unit for $259,900.
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