Supra Lockbox Stats Through 6-7-2009 Up Again From Previous Week
The latest information from Supra shows lockbox openings were up from the previous week in Oregon and Washington.
Coming Soon to RMLSweb: Option of Searching with Map Ranges Instead of MLS Areas
Later this month we will be adding mapping to several searches in RMLSweb including Advanced Search and Prospecting. This will allow you to choose between searching via custom Map Ranges or Area Numbers in the future.
To schedule a training session on this new release, call your local RMLS™ office, or e-mail training@rmls.com.
How Affordable Are Homes These Days?
Rumor has it that first time buyers (thanks to the $8000 tax credit) and investors are making the bulk of home purchases these days. Like all savvy shoppers, I’m sure they want to make sure they are getting a good deal.
While, ultimately this is extremely personal calculation (because it depends on the buyer’s income, mortgage rates, how well the house will meet their needs, etc.) there is one generic indicator that we can use to get a sense of where the market is at overall: the Affordability Index.
This graph shows the affordability index for the Portland Metro Area by quarter since Sept. 2003.
According to our calculations (which are based on a formula we got from the National Association of Realtors a while back) houses have been becoming increasingly more affordable since September 2008. But what does that mean?
Let’s look at the index rating for April, which was 1.41 (see graph above). In theory, someone making the median family income $70,000 according to HUD (surprisingly it’s up this year) would earn 41 percent more money than they would need to be able to afford the monthly payment on the median priced home in the Portland Market ($246, 400 according to the April 2009 Portland Market Action–of course).
That is IF they got a loan at the 4.81 percent average interest rate per Freddie Mac in April AND they had a 20 percent down payment (which we all know isn’t all that common for first time home buyers these days).
Question is: what will happen now that interest rates are starting to creep back up? We’ll let you know in the July issue of Market Action—that’s the next time we calculate and report affordability in the newsletter.
Fun with Acrostic Poetry: Attached v. Detached Houses
We sometimes get reports of homes being entered into RMLSweb as detached homes, when they are in fact, attached (or vice versa). We realize this can be confusing at times, so let’s briefly review the attached v. detached question.
Let’s start with the textbook definitions:
“Attached: An element of the residence’s construction (such as a wall, ceiling, or floor) is shared with another property. Condominiums excluded.”
“Detached: A stand-alone residence, excluding manufactured homes, for which the sale includes the land on which the residence is located.”
Now – remember how your teachers would have you come up with acrostic poems? It’s when you take each letter of your name or a word & you have to use it as the first letter in each line of the poem (here are instructions on how to write an acrostic poem… in case you wanted to know).
We came up with one each for Attached & Detached houses to help you remember the difference!
ATTACHED:
Adjoined
To
Things, such
As
Ceilings and walls of other
Houses,
Especially
Duplexes
DETACHED:
Disconnected from
Everyone, especially from
Those
Adjacent buildings,
Construction, and
Housing. But, connected to
Earth and
Dirt
Ok, I’m aware that acrostic poems probably won’t be particularly helpful in remembering what’s attached v. detached, but just let this silly attempt at a mnemonic device serve as a reminder to be cogniscent cognizant of the issue when entering listings. And if you’re ever unsure, feel free to give us a call!
Oh, and in case you want the original poems, I wrote them on this cool writing paper I found online:
My originals, missing is the "F" for poor penmanship.
Becoming a Homeowner
June is National Homeownership Month and if you read the blog, you probably know I am a new member of the homeowner community.
After getting through my first transaction, I can say that I definitely understand how some first time homebuyers can be intimidated by the process of buying a home. Per the old adage, “nothing good comes easy”, and I emphasize the good.
Between choosing a Realtor and a lender, finding the right home, negotiations, inspection and the mounds of paperwork at each step, it can make your head spin when you have no experience with it. Fortunately, Realtors help alleviate all of those concerns and lend understanding to each stage of the process.
However, for those first time buyers who may not have chosen a Realtor yet, or a just looking for more information, our friends over at the Portland Metropolitan Association of Realtors® (PMAR), have put together a great website for potential buyers – HOWNW.com (Homeownership Opportunities Website Northwest).
The website features a very helpful Home Buying Process section. I peeked at the site a few times before I decided to buy and found it very helpful. The site also includes a section that allows potential buyers to search for homeownership programs that may fit their needs.
Even though I had a good Realtor, along with friends, family & colleagues around me that are knowledgeable about real estate, I still found it stressful at times (I’m a worrier), so I think any other resources that can shed some light on the process are worth highlighting – here are a few others I was able to find:
American Bankers Association – National Homeownership Month Resources
CNN Money: Money 101 – Buying a Home
Portland Housing Center: Schedule for Homebuying 101 Classes
Image courtesy of John Salazar