Real Estate Information Archive, Corvallis Oregon Real Estate

We are coming into our traditional slower season, and with elections looming and uncertainties, the market is experiencing interest and some buying but not at the speed of the summer.  MLS statistics show that the number of sales is down about 34% year to date from last year but prices are not significantly off in Linn County and only about 2% down in Benton County recent sales.  This is definitely not the gloom and doom the media plays up.  Wealth can be built in many ways but real estate has been a front runner throughout history.  This is the perfect time to buy rather than sitting back and waiting for a better comfort level.  Interest rates are still low and prices and slightly soft.   Interested in investing?  There is a new real estate investor group forming open to everyone. There will be a kick-off seminar "You as an Investor" on November 13th in the evening in Corvallis.  Call 766-0262.

Every day I wake up and think about things to be thankful for.  These days I find myself looking backwards and thinking I should have been more thankful about a lot of things, such as the price of gas, stock market, credit and lending process, and the great real estate market we've enjoyed in the Corvallis/Albany area.  I took so much for granted.  Young people know no different, it has been such a good economy for so long.  There is a store on the Oregon Coast called "Spoiled Silly".  What a great name for a store...  I'm thinking we have been...  Are we still?

Confidence is key!

   I  wonder about  so many people pulling their money out of the stock market.  What are they doing with it instead?

   Will they consider real estate? Willamette Valley real estate market is a perfect option as interest rates just dropped to below 6%, prices are down, Lebanon is building a medical school complex and big box distribution center.  People are still migrating to our state whenever they can get their home sold in their states of origin.  If a home is a bundle of commodities that go up historically 4%, it stands to reason, that the real estate market has inherent value as an asset.  As an investment, will there be more renters now that it is harder to get a loan?  Investors may well want to consider real estate as the option of choice.

What a place to call home!  I can't believe the sense of community we have here in Corvallis!  So many people volunteering for the Corvallis Fall Festival, all the vendors with their beautiful arts and everyone enjoying wonderful festival food like Frisco Sandwiches (incredible mix of chicken, cabbage and at least five sauces cooked to perfection and just slopping out of the wrapper).  The weather was perfect, the leaves getting that tinge of red on the edges whispering fall is here, and 700 people running their behinds off all over town for the Fall Festival Run to maybe get a ribbon. None other than the new OSU Basketball coach, gave out awards. Precious kids were selling their creations, from jewelry to magnets and other specialties.   For a few balmy hours It was easy to escape the financial woes, election slams and real estate crisis and just bask in the Willamette Valley sunshine and festivities.  My advice is to start practicing now for next year's run—remember you can choose the 1K, 5K or 10K or be one of the phenomenal cheering ranks making everyone feel good about their efforts.  I just love it.  Sign me up!

Q: What is going on in the mortgage market today?

A:  Things are changing rapidly.  You can still obtain loans at 5% or 10% down.  But the lenders are looking very carefully at the appraised values and your credit scores on these higher value loans compared to if you put 20% or more down.  Underwriters have much more stringent requirements for the appraisers and comparisons that they can use to evaluate properties.  Many of the loan programs are changing and some have been discontinued so there are more limited choices of loan types to fit a buyer’s needs.  We will likely continue to see changes until the banking industry stabilizes.  In the meantime, this is a great time to buy with interest rates below 6% and sellers are VERY MOTIVATED!

Q: We are leery but want to pick up some rentals. Is this a good time to invest?

 A: In making your decision consider that interest rates are still low, inventory is up and sellers are eager. You may be more likely to find more motivated sellers willing to buy your interest rate down or pay some of your closing costs. This can be a win-win as they are then able to move on with their plans as well. If you would like to learn more, contact us about attending an upcoming real estate investment seminar. We have  lender, escrow, and 1031 exchange experts on hand. Enjoy hearing some basics on pros and cons of investing now. Call us at 766-0262 for more info.

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.

The Housing and Economic Recovery Act of 2008 was just signed by President Bush with some amazing benefits for first time homebuyers. Call everyone you know who wants to buy their first home (or who hasn't owned one in three years), this is too good to miss - it's a $7,500 tax CREDIT (not deduction but a credit).

If you have not owned a home in three years, you qualify as a first time home buyer. If you buy a home after April 9, 2008 and before July 1, 2009, you qualify for this credit. Call your friends who just bought a home since April 9th and tell them they may take $7,500 off their tax bill if they qualify. It has to be your principal residence, so rentals do not count.

The tax credit is 10% of the cost of the home, up to a maximum of $7,500. This is not an additional deduction that lowers the amount of income to be taxed, it is a tax credit. In other words, you take $7,500 off your tax bill. But there is a catch; the credit you receive now is actually an interest-free loan that must be repaid.

The loan has no interest, and will be paid back over 15 years. You get the credit on your 2008 taxes, but you start paying it back on your 2010 taxes that are due in 2011, so you get at least two years without a payment. You pay back 6.67% of the credit each year, so for a $7,500 credit the payment is $502.50 per year. If you stay put for 15 years, you pay it off with no interest.

What happens if you sell the house? You pay the balance back at the closing. So, you get $7,500 now, and pay the rest of it back if you make money on the sale of your house. What happens if you do not make enough money when you sell your house? They forgive the rest of the debt.

Other restrictions stipulate that you have to buy your first house in three years before July 1, 2009, not have super high income, not use bond financing and buy anywhere in the US.

If you'd like to learn more about this program, please call me!