Portland housing market ranked fourth best

Forbes magazine has reviewed the latest S&P/Case-Shiller 20-city home price index which shows a record 18.5% drop from the previous year. Portland ranks as the fourth strongest market in the country.

Forbes analyzed monthly declines and year-over-year declines in home prices to determine where prices were falling fastest and where those drops were picking up momentum. It's not a good thing for San Diego that prices from November 2008 to December 2008 fell 2.13%, but as prices declined by 2.29%from October to November, and 2.44% from September to October, the speed with which prices are falling is slowing.

That slowing rate of decline — also seen in places such as Denver, Washington, D.C. and Boston — helped rank those cities as some of the stronger markets in the country.

Five best housing markets:

1. New York
2. Washington DC
3. Charlotte, NC
4. Portland, Ore
5. San Diego, Ca

Five worst housing market:

1. Las Vegas
2. Phoenix
3. Detroit
4. Minneapolis
5. San Francisco

Tip of the week ... how to make a proper cup of tea

Coffee isn't the only caffeinated beverage to get the gourmet makeover. How to properly tackle tea.


Long before shorts, talls, pumpkin lattes, and frothy half-caf frappuccinos, America was a nation of tea totallers. Colonists drank black tea with abandon, renouncing it only when Britain’s unjust taxes inspired the Founding Fathers to dump their tea into the ocean. Tea didn’t completely disappear, but it was eclipsed by another caffeinated beverage.

It’s taken two centuries for tea to make a comeback, but over the past few years, the market has changed. From 1990 to 2006, wholesale tea sales more than tripled to an estimated $6.5 billion.

Brewing It Right
Just as with espresso, there are rules for making a “proper” cup of tea. First, heat the water—which isn’t as straightforward as it sounds. Experts say that you should use boiling water for black tea. For more delicate green or white tea let the water cool for a few minutes. Always add the water to the leaves instead of the reverse. How long you let the tea steep depends upon the variety and how much you’re making.

Be color-conscious
Grandma might pour it into bone china, but it doesn’t really matter what kind of cup you drink from. The only rule, according to Joe Simrany, president of the Tea Association, is that the inside should be white so that you can discern from the color of the tea that it has been properly steeped.

Leaf It Alone
When stored in an airtight container, out of direct sunlight, tea can last for quite a while. White and green teas can be stored up to a year but are best drunk relatively quickly. Darker teas tend to hold up better. Limit the amount of air in the container; a rolled-up Ziploc bag works well. Don’t bother with the refrigerator, since the leaves can pick up odors and flavors from other foods.

Source: Portfolio.com

OMSI After Dark

Looking for something fun and scientific to do at night. On the fourth Wednesday of every month, OMSI puts on a special program - OMSI After Dark.

Here's your chance to shoot off water rockets, concoct chemical creations, and enjoy the wonders of OMSI with no kids in sight! Enjoy a glass of wine while learning about robots, tornados, or fossils. Have a pint of local beer while exploring the exhibits. Talk to a baker about the science behind bread, or taste the complexity of coffee.

OMSI After Dark is an opportunity for the 21-and-over crowd to explore the museum in a child-free environment. Visitors will also be able to taste and learn the science behind food and beverage favorites with local artisans. The OMSI Market Cafe will be open and cash bars will also be available for those who want more than just a taste!

Special features for Wednesday, February 25:

See Leonardo da Vinci's genius come to life! In our featured exhibit Da Vinci: The Genius, you can enjoy two floors of interactive reproductions of Leonardo da Vinci's inventions and 3D plasma presentations of his paintings. Highlights include Secrets of Mona Lisa Gallery, which features findings about the world's most famous painting that have startled the art world.

Talk to local food and beverage companies about the science behind their products and sample their tasty treats! Companies joining us in February will include: Caffe Vita Coffe Roasting Co., Cupcake Jones, Dave's Killer Bread, Hot Lips Soda, Missionary Chocolates, and Picklopolis.

For more info, go to the OMSI web site or calll 503.797.4517.

Case Shiller Index report for December

The Case Shiller Index report for December was released today. The Portland market continued to see declines: a 13.14% decline for the past one year. Since our market's peak in July 2007, we have seen a drop of 15.02%.

Other West Coast cities saw steep declines:

Phoenix -33.96%

Los Angeles -26.42%

San Diego -24.84%

San Francisco -31.24%

Las Vegas -32.98%

Seattle -13.35

Getting Close to the Real Estate Tipping Point

Are we getting close to the "tipping point" for real estate? One observer thinks so. Below is an excerpt of an article published in Realty Times by Kenneth Harney.

Are we somewhere near the "tipping point" for real estate, where an accumulation of positive economic and government policy developments starts moving housing toward higher sales and stabilized prices?

This week there are some strong signs that we just might be there.

Tops on the list: The massive stimulus bill signed into law by President Obama is certain to pull buyers into the market who otherwise would have stayed on the sidelines.

The new tax credit in the legislation goes up to $8,000 and is non-repayable -- unlike last year's ineffective credit program. It' s intended for "first time" purchasers, but under the program definition, you're a first timer as long as you haven't owned or co-owned a house during the previous three years.

You might have sold your long-time home in 2005 or early 2006, and haven't owned a house since, but you still qualify as a first timer for the $8,000 credit this year.

Most economists aren't sure just how many additional home sales the credit will stimulate, but even Mark Zandi of Moody's Economy.com says the "credit is a plus for the housing market." Brian Bethune, an economist with IHS Global Insight, says the $8,000 credit will not only push large numbers of consumers to buy homes, but will also "buffer the rate of decline in home prices" by creating more demand.

A second major government initiative announced last week should also be helpful: The Obama administration's massive $275 billion relief program to keep three to four million home owners out of foreclosure, and to refinance three to four million mortgages where owners can't otherwise qualify for a new loan because of property value declines.

Still another positive sign: Home buyers and owners are beating a wide path to their mortgage lenders not only to refinance but to take out new loans to buy houses. Total applications for new mortgages last week exploded -- up by an extraordinary 48 percent, according to the Mortgage Bankers Association. Applications for conventional loans to buy houses were up by 11 percent.

Part of the reason was that rates fell again -- this time to an average of just 4.99 percent for 30 year fixed rates and 4.7 percent for fixed rate 15 year loans.

The opportunities here are pretty tempting ... and it looks like buyers are getting the message.

Amazing Green Comet to Pass the Earth this Month.

This just in from the Associated Press (AP) - An odd, greenish backward-flying comet is zipping by Earth this month, as it takes its only trip toward the sun from the farthest edges of the solar system. The comet is called Lulin, and there's a chance it can be seen with the naked eye — far from city lights, astronomers say. But you'll most likely need a telescope, or at least binoculars, to spot it.

The best opportunity is just before dawn one-third of the way up the southern sky. It should be near Saturn and two bright stars, Spica and Regula.

On Monday at 10:43 p.m. EST, it will be 38 million miles from Earth, the closest it will ever get, according to Donald Yeomans, manager of NASA's Near Earth Object program.

Lulin was discovered by a Chinese teenager two years ago. It still has many of its original gases — gases that are usually stripped away as comets near the sun. Unlike most comets viewable from Earth, this one hasn't been this close to the sun before, Yeomans said.

First Time Home Buyer Stimulus - explained

The Stimulus bill signed by President Obama has a terrific benefit in it for first time home buyers and for people who have not owned a home for over three years.

First-time home buyers (including those who haven't owned for three years) who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income. The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Another provision of the stimulus bill is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

We believe these initiatives will help provide stability for the real estate market and give folks confidence to make a purchasing decision.

January RMLS Market Report

January is a good news, bad news month. The bad news first - closed sales were really low. Just 732 homes were sold in January. Compared to January, 2008 that is a decline of 25.8%. This is no surprise as we feel the December snow storms kept many people indoors resulting in fewer offers to buy.

The good news is that January pending sales are up 52.5% compared to the previous year. Perhaps the snowbirds who didn't write offers in December, came out and made purchasing decisions in January.

Hopefully this upward trend will continue and be based on good value in the market place, low interest rates, and pent up demand for housing.

Getting Involved in your Neighborhood Association

The following is from an article printed in The Oregonian late last year. We liked it and thought it would make a good post on the blog.

If you really care about an issue or have an idea for a project in a Portland Neighborhood, you might find support at your neighborhood association.

The City's 95 associations do everything from planning festivals to reviewing land-use proposals. They are run by volunteers, and their agendas tend to reflect the interests and priorities of the people who come and participate, according to Paul Leistner, the city's neighborhood program coordinator.

To get started, look up your association by entering your address at www.portlandmaps.com/. The name of your association will appear in the upper left hand corner next to your address.
then go to www.portlandonline.com/oni and click on the "my neighborhood" tab at the top for a directory of leaders and meeting times.

For downtown residents, you will find six different neighborhood associations depending on where you live.

For more details you can call 503-823-4519.

Weekend Trip to Hawaii

Courtesy of Vincent Laforet

How to time the Market.

When I don't know what to do, I listen to experts--like these:

"The stock market will fluctuate, but you can't pinpoint when it will tumble or shoot up." (AAII Guide to Mutual Funds)

"It must be apparent to intelligent investors--if anyone possessed the ability to do so (market time) he would become a billionaire--quickly--." (David Babson, author, adviser)

"What it really takes to improve your returns and diminish your risks is a willingness to stop focusing exclusively on the movement of the markets." (Baer & Ginsler, The Great Mutual Fund Trap)

"If we haven't said it enough, we'll say it again: Market timing is dangerous." (Barron's Guide to Making Investment Decisions.)

"Only liars manage to always be "out" during bad times and "in' during good times. (Bernard Baruch, famed investor)

"You have to keep reminding yourself. We don't know what's going to happen with anything, ever." (Peter Bernstein)

"I never have the faintest idea what the stock market is going to do in the next six months, or the next year, or the next two." (Warren Buffet)

"Any investment method that relies on predicting the future is doomed to fail." (Chandan & Sengupta, financial authors)

"A successful investor has a good knowledge base, a well-defined investment plan, and nerves of steel to stick with it." (Andrew Clarke, financial author)

"Forget market timing in any form." (Paul Farrell, (CBS Marketwatch.com)

"Benjamin Graham spent much of his career trying to devise a good formula for when to get into--and out of--the stock market. All formulas, he concluded, failed." (Forbes, 12-27-99)

"Don't sell out of fear or buy out of greed. Just keep making investments, and let the market take its course over the long-term." (Norman Fosback, author, researcher)

"The only function of economic forecasting is to make astrology look respectful." (John Kenneth Galbraith, Economist)

"If I have noticed anything over these 60 years on Wall Street, it is that people do not succeed in forecasting that's going to happen to the stock market." (Benjamin Graham)

"From June 1980 through December 1992, 94.5% of 237 market timing investment newsletters had gone of business." (Graham/Campbell Study)

"After receiving the Nobel Prize, Daniel Kahneman, was asked by a CNBC anchorman what investment tips he had for viewers. His answer: "Buy and hold."

"No one is smart enough to time the market's ups and downs." (Arthur Levitt, former SEC chairman)

"Nobody can predict interest rates, the future direction of the economy or the stock market." (Peter Lynch)

"At the peak of the bull market in March of 2000 only 0.7% of all recommendations on stocks issued by Wall Street brokerages and investment banks were to "Sell." (Miami Herald, 1-26-03)

"We're not keen on market-timing. It just doesn't work." (Morningstar Course 106)

"We've yet to find anyone who can accurately and consistently predict the market's short-term moves." (Motley Fools)

"Forget trying to time the market and do something productive instead." (Gerald Perritt, financial author)

"The market timer's Hall of Fame is an empty room." (Jane Bryant Quinn)

"In the long run it doesn't matter much whether your timing is great or lousy. What matters is that you stay invested." (Louis Rukeyser, TV host)

"It's my belief that it's a waste of time to try to time any market decline, or try to pinpoint a market bottom." (James Stewart, Smart Money columnist)

"People should stop chasing performance and just put together a sensible portfolio regardless of the ups and downs of the market." (David Swensen, Yale Investments)

"Trust in time and forget market timing. Allow time to work its compounding magic for you. Let market timing inflict its miseries on someone else." (Tweddell & Pierce, financial authors)


Courtesy of Taylor Larimore (It’s actually for stock market but can just as well be applied to purchasing a home)

Portlands Best Coffee?

The editors at City Search feel that Portland's best coffee can be found in the Pearl District. It's located just two blocks from our office at 1105 NW Marshall St. This place is not your typical coffee shop like Starbucks or Seattle's Best. It's a fanciful Italian dessert cafe which hits the sweet spot with pastries and gelato.

Have you guessed it yet?? TaDa.... we're talking the one and only Via Dilizia.

Having been there many times for evening desert, I now need to give it a try in the morning.

Terra Del Sol Spa and Salon

As a real Estate Broker specializing in downtown properties, we are sometimes asked about the location of area Day Spas. There are actually more then you might think. Recently, I became aware of one located midway between the Pearl District and the NW Nob Hill area. The name is Terra Del Sol Spa and Salon. They are located at 210 NW 17th, just a few blocks from Burnside.

The Terra Del Sol web site offers upcoming Valentines Day specials. They also have specials related to First Thursday, Mothers Day, etc. It looks like a great place to spend an afternoon.

Relax in their Grotto with Immersion Pool and Cool Dip, Turkish Steam Bath, or the Sun and Sand Room with Poolside appetizers. In addition, they offer a variety of massages, facials, and just about anything else that might be spa related.

The Case for Buying Real Estate Now

There is no better time to purchase a downtown condo then now. Over the past six years we have been watching this market. Buyers are facing their best prospects, yet many don't seem to know it. The primary fear is that prices will continue to go down. This may seem like a valid concern but for investment minded people with long term plans to own, this is the right time.

No one can time a market bottom - not in stocks and not in Real Estate. We see the bottom only when we look in the rear view mirror. Mortgage rates are terrific, sellers are highly motivated, the supply of available units is astonishing, and government programs to encourage home purchases are creating some tempting opportunities.

For those who think of real estate as a short term investment, this is not for you. For those who want to own the home they live in and want to have lots of choices, you should be looking now. You should be well versed in what you can afford and how you will structure a loan. This means serious discussions with a lender.

Our team has years of experience working with buyers and sellers in all price ranges. First time home buyers and transferees moving to our region get the same service as our immediate family members would.

Don't wait. Interest rates may dip some but will eventually go up. Inflation will surely come on the heals of the big stimulus programs being debated in Washington DC, and sooner or later, the supply of decent homes will trend downward. These factors usually contribute to rising home values.

Please feel free to contact us for more information.

The Meriwether Condominiums

The Meriwether is the first residential building to be completed in the South Waterfront district. It consists of two high-rise condominium towers and seventeen street-level town homes. The Meriwether is LEED certified Gold, features upscale finishes, a concierge desk, secured entry, private courtyard and access to the new Willamette Riverfront walkway.

This building represents a terrific value for those interested in making a condo purchase. Prices here are lower then the Pearl District and there are a number of unit resales for buyers to consider.

Presently, our team has two units available for sale at The Meriwether. Unit #106 is a two story town home on SW Curry Street. It has two bedrooms, two baths and over 1600 sqft of space. It's priced at just $458,000. Also available is unit #1113. This eleventh floor condo features two bedrooms plus a den area, two full baths, fireplace, and large terrace facing south. It's priced at $595,000 and is just over 1600 sqft.

If you are interested in knowing more about properties for sale at the Meriwether, please visit our website, http://www.bpr.com/. We have a feature page for the building which is linked here.

First Thursday Gallery Suggestions

Should be a beautiful evening tonight for art viewing. There are quite a few new shows and the weather should be nice. Below are just a few of the more interesting exhibits you might want to check out.

• Laura Russo Gallery, 805 NW 21st St - Painter Jack Portland combines elements of surrealism and expressionism with a patterned and abstract vocabulary. He incorporates images ranging from landscape to still life to a synopsis of personal forms.
  
• Butters Gallery, 520 N.W. Davis, Second floor - encaustic paintings by Debra Van Tuinen, and glass pieces by Alessandro Casson.
  
• New American Art Union, 922 SE Ankeny Street - presents Evident by Laura Fritz.

Should you refinance?

According to Consumer Reports Magazine, with fixed rate mortgages hovering near 5%, now is a good time to refinance. If you're underwater with your mortgage - you owe more than your home is worth - you won't be able to do that. But if you have significant equity as well as great credit, you're a prime candidate. Expect to pay for an appraisal and face strict documentation requirements.

In this chaotic housing market, it pays to shop around for a lender. According to mortgage experts, there can be a 1 percentage point difference in rates from the highest-priced lender to the lowest-priced and 0.25 percentage point swings in the market day to day. When comparing mortgages, be aware that lenders might offer you their best rate when you first contact them, then quote a higher rate when you apply. Any rate you're offered can change quickly, so if you get a great rate, lock it in that day.

If you would like a list of lenders who have worked successfully with our buyer clients, please let me know and I will email you their list.

Energy Saving Tips of the Month

The good folks at Earth Advantage came up with the following advice on how we can change the way we use energy with these no-cost and low-cost energy saving tips:

• Caulk small holes and cracks under countertops and around plumbing pipes, exhaust fans, dryer vents, sink and bathtub drains, and fireplaces.
  
• Check your furnace filter monthly and clean or replace dirty filters to help your furnace work at peak efficiency.
  
• Stop air leaks by installing gaskets behind switch plates and outlets on exterior walls.

Visit Energy Trust of Oregon for more energy-saving ideas and to learn about cash incentives available for qualifying home improvements.