If you look at a calendar and don’t look out through your windows, you’ll see it is June. The gloomy weather coincides with what we’ve been seeing in the real estate market. The summer months are the Christmas season for real estate. Landscaping comes to its potential. Daylight hours give clients more flexibility to look and show houses (looking at a house in January when it is 33 degrees, raining and dark really isn’t fun). Anybody that says “buy or sell now” had better put that in context. Reiterating what I’ve said before: it is a great time for SOME people to buy and sell now.”
What I think:
- The bottom of the slide is out there somewhere. It could be today, it could be years off. We’ll all be able to see where the bottom was because we can only see it through historical data. Everyone wants to buy at the bottom and sell at the top but that is not how markets work. Case-Shiller reports put Portland’s current values at 2006 levels. We didn’t hear too many sellers complaining back then. If you bought before 2004 and haven’t sucked the equity out of your property, you’re probably going to do okay when you sell. Not as good as you might have but still not bad. If you are looking to buy, you’ll appreciate the above and that you don’t know the bottom until it happened. Everyone has more than one “perfect” house. What is on the market today may not be in the future but there will probably be an equivalent home on the market then. Distressed sellers may not have a choice whether to put their home on the market or not (there was a TV story this week that foreclosure rates are the highest ever). Would I sell now one of our houses now? It depends. I think we could sell either our Belmont or Hawthorne rental and be happy with the result. I’m not sure that I would want to list the house that we live in now as we’ve only been here two years. Sapphire Development bought a house last week and while not officially back on the market, everything is for sale. We’ll need four to six months to get it ready for sale.
- I think Barak Obama will be the next President. I’m not currently qualified to write how the change from a Republican president to a Democrat president affects markets. We’ll work on flushing that answer out.
- Thirty year mortgage rates hovering around 6% is still historically great. Lending requirements have stiffened and that has shrunk the buyer pool. You can still buy a house with zero down but you’ve got to understand the risks of doing that in a declining or static market. It’s having the knowledge available to determine what you should do in your situation, not listening to someone tell you to “buy now” or “you’d be a fool to buy now.”
- I am not a fan of the Oregon Realtor Association’s Realtor Vision Campaign. I posted about it here at the beginning of the week.
- Skinny houses have a place in real estate. Not my style personally but I’m not helping you buy or sell a house for me. More valuable than my opinion would be those that live in, build and design them.
These are my opinions and even if you don’t agree, I hope you can respect them. Can anybody source or take credit for the picture? It was sent to me via email.