Pending Home Sales on the Rise

Due to low interest rates and an $8,000 tax credit for first-time home buyers, pending home sales have gone up for the third month in a row.

It varies greatly from one area of the country to another, here in the West the Pending Home Sales Index rose 1.8%, to 94.8, but is 2.9% below a year ago. A pending home sale is a contract for a home sale that has been signed but the home sale has not closed yet.

Total number of existing-home sales is expected to improve in general but some corners of the United States have already bottomed out and started to recover while others are still falling slowly.

Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer for future existing-home sales.

It has noted that pending sales have increased, which is a sign that we're moving in the right direction, but that we are still drastically below where we were at the peak of the market. We probably should not be comparing our numbers to the peak of the market though. That was just the extreme the other way and ideally we'd like to be plain ol' steady.

http://www.businessweek.com/bwdaily/dnflash/content/jun2009/db2009062_031070.htm

PLEASE CHECK OUT OUR NEW PODCAST ON THE HOMEPAGE OF OUR WEBSITE http//:www.TonyandLibby.com

Portland OR Market Report

April Residential Highlights

While sales activity continued a steady month-over-month increase in the Portland metro area, it still fell short of 2008’s same month marks for April. Comparing April 2009 with the same month in 2008, pending sales were down 10.1% and closed sales decreased 17.7%. New listings also dropped 28.1%. On the other hand, comparing April 2009 with March 2009, pending sales grew 13.6% (1,860 v. 1,637). Closed sales also rose 10% (1,302 v.1,184). New listings increased 3.3% (3,808 v. 3,685). Pending sales continue to rise month-over-month at a steeper than usual rate (13.6% in 2009 vs. 6.8% in 2008 and -2.3% in 2007).

Inventory also dropped to 11 months and this is the first time it has dropped from March to April since 2004. Active residential listings in April numbered 14,328 - up from 14,158 in March.

Sale Prices

The average sale price for April 2009 was down 10.4% compared to April 2008, while the median sale price dropped 9.1%. Month-to-month, the average sale price and median sale price were mixed when compared with March levels; the average sale price decreased 2% ($291,100 v. $297,000) and the median sale price was up 1.4% ($249,900 v. $246,400).

PLEASE CHECK OUT OUR NEW PODCAST ON THE HOMEPAGE OF OUR WEBSITE http//:www.TonyandLibby.com & OUR NEW PORTLAND METRO BLOG AT pdxrealtynews.com

Great News For First Time Home Buyers!

GREAT NEWS FOR FIRST TIME HOME BUYERS!

Great news for first-time home buyers. This week, Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development stated that the Federal Housing Administration (FHA) is now going to permit it's lenders to allow home buyers to use the $8000 tax credit as a down payment. Previously, buyers had to wait to file their taxes to take advantage of the tax credit, which hindered some home buyers from buying.

By allowing buyers to utilize the tax credit as a down payment, money will now be freed up for the buyer that would otherwise be needed at closing. This will allow the first-time home buyer to save their money for a rainy day or for home improvements.

I believe this new program will further stimulate the already improving real estate market, attracting even more first-time home buyers.

There couldn't be any more incentives for first-time home buyers, considering that interest rates are at an all time low, home prices are not over inflated and there are plenty of homes to choose from. Sellers would have to give the home away for free for there to be a better deal. This is the absolute best time to be a first-time home buyer.

Consumer confidence needs a boost and I feel that this is just the news that will do it or at least light a fire. Now, if only the news media such as the TODAY Show would report on this great news instead of always reporting on the negatives about the real estate market, consumer confidence would increase.

If you are a first-time home buyer, get out there and find your home before this tax credit is gone in November.

Mortgage Interest Rates*
Rates as of Wednesday, 13th May, 2009:


Conforming APR Payment per
$1,000 Jumbo APR Payment per
$1,000
Conforming FNMA Fixed 5.0% 5.088% $5.37 % 0.000% $0.00
FHA 97% Fixed 4.875% 4.962% $5.29 % 0.000% $0.00
Conforming 15 Fixed 4.625% 4.711% $5.14 0% 0.000% $0.00
Conforming 3 year ARM 4.5% 4.585% $5.07 % 0.000% $0.00
Conforming 5 year ARM 4.5% 4.585% $5.07 % 0.000% $0.00
Jumbo Fixed 7.0% 7.099% $6.65 % 0.000% $0.00
Jumbo 5 year ARM 6.125% 6.219% $6.08 % 0.000% $0.00
*Rates are subject to change due to market fluctuations and borrower's eligibility.

Information provided by...

Kevin Donahue
Executive Mortgage Advisor
Wealthbridge Mortgage
Phone: 503.501.6468
Fax: 503.597.7525
kevin.donahue@wealthbridge.com
http://www.wealthbridge.com/ <http://portal.mxlogic.com/redir/?FTujKDuX8USDtYQsEEIEzzhOr016fQ-pcx6i17-nMTvHTLuX3XNEVsdTdPZlo_p_g57RS4WRf8l3-ndEIe9I6QkS4QSbI9LCQNNIb7Xek6Rkzh02ZDVEw2qO6PYQg0LZgb6V-7PNo_pgdECQjqtTPhOyyOyMyrD06O>

PLEASE CHECK OUT OUR NEW PODCAST ON THE HOMEPAGE OF OUR WEBSITE http//:www.TonyandLibby.com & OUR NEW PORTLAND METRO BLOG AT http://pdxrealtynews.com/

Our New Tram gets National Exposure

The new $57 million tram that connects OHSU with the South Waterfront was highlighted in the Feb. 3rd edition of USAToday.

The tram was built as part of a plan to develop the South Waterfront, which is drawing some $2 billion in private investment. The Tram connection between OHSU, which had run out of room on the hill, and the expanding Waterfront is expected to reduce driving by 2 million miles a year, saving 93,000 gallons of gas by tram riders who avoid the twisty road up to the hospital.

The article goes on to give props to Portland for "its impressive array of alternative forms of transportation, including streetcars, a light rail system and miles and miles of bike paths."

Nice to receive national recognition for our beautiful city and efforts to give people alternatives to driving. The tram has been ferrying hospital employees and patients since mid-December, and opened to the general public in late January. If you have had a chance to ride the tram, please leave a comment to share your thoughts.