It has been a little while since my last blog and I am striving to write more consistently. This week has been a major trial for me. Tuesday morning I received the awful news that my dear beloved friend Joseph Wohlfeil had passed away. Joseph was such a special friend to me. He blessed my life with so many wonderful lessons and unconditional love. He was 97 and had served as one of the proud and few Merrill's Marauders. What a great man he was to surrender all fear and selflessly serve his country, Joseph will be missed by so many. Joseph's funeral took place this morning and he was honored with a military service. It was beautiful to hear the heartfelt dedication of those who loved him so much. A woman who attended the service approached me at Joseph's funeral and mentioned how much she appreciated a blog I had posted about Joseph about one month ago. She found the blog by searching Joseph's name in google looking for information concerning his funeral and my ActiveRain blog appeared. ActiveRain has enhanced my business and my personal life in so many ways and I am extremely grateful. The lessons Joseph gave me are invaluable and I promise to share all that I can of these lessons with others.
Later this same day, I was severely rear ended by a large vehicle. It happened in the evening hour on my way home from showing listings to clients. My vehicle is totaled, however, I am grateful for my life and I am grateful that no one else was injured.
So, it has been a whirlwilnd of a week but, life goes on and so will I. Thank you friends for all of your support and caring through this challenging time.
Thank you ActiveRain for my first contract as a result of Blogging and also making a reconnect with a long lost friend!
For about two years my good friend Todd Clark has been urging me to blog blog blog on ActiveRain. So I put a blog in here and a blog in there with (I admit) some half-hearted effort. He kept telling me what a wonderful reward it is and what an excellent learning opportunity it is. While I never doubted Todd for a moment it always seemed that I had "other" things that trumped blogging.
Well, two years later the reality of Todd's claims has smacked me in the face because a wonderful girl who I lost contact with for three years just called me two days ago to tell me that she had some real estate needs and she thought of me. She didn't have any of my contact information so she Googled me and low and behold, she found my Localism blogs and gave me a call. I was so excited to hear her voice on my answering machine and so thrilled that she thought of me for her Real Estate transaction that I couldn't contain the butterflies in my stomach when I called her up! Even though I may have lost contact with a few people I am confident that if they look me up they will see that I am active as a real estate professional by reading my blogs. OK TODD, I GET IT! ActiveRain is a necessary tool for my business success and another step in achieving my real estate goals! Thank you ActiveRain for the business and thank you as well for the reconnection!
My business partner Dave Smith and I have enjoyed some very positive feedback from our readers and almost unilaterally, the most popular article in our newsletter is the "Lesson's From Mac" section. It happens to be one of my favorite sections as well and I thought that it would be great if I shared some insight from a great friend of mine, Joe Wohlfeil. Joe Wohlfeil lives in Gresham, OR and is 95 years old. Joe served in the U.S. Army from December 1941- December 1945.
Every time Joe and I visit, he has a great story to tell from one of his many experiences in the Army. One of my favorites is about his experience in what used to be known as Burma (now Myanmar). Joe was a 2nd Lieutenant who was attached to the now famous commando unit, Merrill's Marauders. This story particularly stood out to me because of the amazing faith and courage that was needed to survive and triumph through a deadly and miserable war. As he shared his experience with me, I began to draw several parallels in my mind between his personal history and the current economic market. Obviously, economic catastrophes do not even come close in comparison with war. The misery and death of war is incomprehensible. However, I believe it is fair to say that there may be some valuable lessons that can be learned from the most deplorable circumstances a person endures during a war. Joe has taught me a lot about the necessity of faith and strength in an effort to win a hopeless battle.
Joe tells me that when he first joined the army everyone had advised him to never volunteer for anything. The reason was that when volunteers were requested, the details about the volunteer work were rarely given and sometimes the work was downright awful. Joe always had a different attitude about volunteer work. He said that he always volunteered because even though some of the experiences may have some challenges, the potential for great opportunities would arise as well and valuable lessons could be learned. That was his attitude when 3,000 men were sought to volunteer for a dangerous and hazardous mission into the Burma wilderness in an effort to eradicate the Japanese from the surrounding area. It was an important and extremely dangerous mission because they were grossly outnumbered. The plan was to strategically place each platoon in various areas rather than walking the guys in one collective area so that the Japanese would not be able to completely surround and sabotage the soldiers.
Once Joe and his soldiers were positioned, they soon realized that they were behind enemy lines - not good. This meant that they were surrounded by the Japanese army and their mission was going to be more complicated than they first understood. In this position, the only food they could rely on was food that was air-dropped by C-47 aircraft. The C-47 airplanes were responsible for delivering food and ammunition to the soldiers. This was treacherous because it was painfully obvious to the Japanese exactly where they were located. Many times soldiers would be ambushed just working to pull in the packages and food. He taught me that the soldiers completely ignored the feelings of fear in their minds because dwelling on them would only be paralyzing. In that sense, fear would make them more susceptible to injury. Joe said that the focus of the soldiers had to remain on getting the mission completed so that they could get on that plane ride back home.
The more I talk with Joe the more I realize how important qualities of faith, courage and belief play in all of our lives. While things around us may seem tough and sometimes even unbearable, we must remember to focus on the truly important things in life like our families, spiritual food, health and our profound inner will to survive and succeed. We don't have to suffer things like Joe suffered but we can be strong like he was and win a great victory in the face of overwhelming odds.
Since our last report in December 2008 it is evident that the market report has not changed significantly for January 2009. While Pending, and Sold activity is still down in comparison to the same month last year, we were encouraged to see that the inventory has decreased from a staggering record high in November from 15 months of inventory to 14.1 at the end of December. For all those in the market to purchase, note that the average sale price has decreased in the Metro-Portland area from $342,900 to $330,300.
To summarize the 2008 report; when comparing the market activity to 2007, new listings decreased 8.7% while Pending sales dropped 30.9% and closed sales were reduced to 32.1%. It is evident that lender guidelines and tighter regulations in the banking world are affecting these statistics. It certainly isn't the seller's market that it used to be because fewer buyers are truly qualified and approved to purchase. Debt to income ratios required by the lenders has tightened and many of the loan options available in 2005 and 2006 are a thing of the past. That is why I believe it is absolutely crucial that seller's consult with a Realtor for competent representation when selling their home. Sure, anyone can list their home for sale and advertise their property in the local newspaper, but sellers are not going to waste their time with unqualified buyers. Your Realtor will act as your advocate by screening out the chaff for buyers who truly want your home. It is more important than ever to have your home nice, clean, and well staged for their 20 minute walk through. Anyone who has sold a home knows how frustrating it can be to be continually leaving your home for showings. If you have to be inconvenienced, wouldn't you want it to be as a result of a real borrower coming to your home or just a "Looky Lou?"
Area Report
Rank
Area
Appreciation
Pending Sales
Average Sales Price
Top 3
1
West Portland
1.9%
-28.5%
478,500
2
North Portland
-0.1%
-24.8%
266,100
3
Northeast Portland
-0.4%
-30.8%
320,000
Worst 3
1
Mt. Hood/Gvt. Camp
-10.5%
-21.1%
253,700
2
Columbia County
-9.0%
-43.6%
230,700
3
Gresham/Troutdale
-8.2%
-34.3%
258,700
If you have followed the trend of our earlier reports it is obvious that very specific areas within the Metro/Portland area have continued to outperform other markets. Not surprisingly, West Portland continues to be our most consistent and best performing market area with appreciation at a positive 1.9%, average sale price of $478,500 and 2,258 closed sales at the end of December 2008. North Portland moved from the third position to second replacing Lake Oswego at -0.1% appreciation, average sale price of $266,100 and 971 closed sales ending in December 2008. Our third best performer is Northeast Portland which bumped Lake Oswego completely with appreciation at -0.4%, average sale price of $320,000 and year to date closed sales at 1,972 homes in 2008.
Dave and I are excited to announce that things are moving in the more positive direction for buyers and sellers. We have noticed that while the inventory is down from the previous month, we are now seeing more "qualified buyers" initiating the loan, and property search process this month more than any other previous month this year. What is happening for many of our investors is that they have been waiting on the sidelines for the perfect time to purchase. Home prices are down and I expect that we will continue to see further declines in prices in some areas. However, be careful of decision procrastination. We have counseled these past six months that the moment the market turns direction we will experience an explosion of sales and appreciation. There are a huge amount of homes to be purchased and eventually prices will reach a critical level and the direction will turn. When it does, the procrastinators will have lost precious time and equity.
Okay, I must admit it has been a while since my last post but I am making it a priority to get back into the routine of regular blogging. I realize how important it is and while it is a huge commitment, I know that it is worth every minute.
Special thanks to all of those who have supported me during my transition from John L. Scott to Palazzo Realty Group, INC. Currently I am fortunate enough to accept the role of CEO for the company and it is my most sincere desire that all of my best intentions and goals for this company will transmutate consistently for 2009 and forward.
Making this transition was not easy as most transitions usually are not; however, this company shares the same professional vision that I do when it comes to servicing our clients with the best possible service and providing outstanding training, marketing and cutting edge technology for our brokers. Palazzo realizes that our true measure of success is determined strictly upon how well we treat our clients and our brokers. We want to be in business for our real estate professionals and not the other way around. Our real estate brokers are like family and we realize that they are out there making the deals and working hard for us to grow and thrive. Palazzo Realty Group offers compensation that is truly rare among most real estate firms because we understand that we are here as a result of outstanding Realtors who work as a team and as independent consultants who bring many individual talents and skills.
Thanks again to everyone to encouraged me through this process. I am proud to represent such a beautiful business model for an outstanding company.
There is so much more to relocation and the purchase of "Real Estate" than interest rates, rate locks, investment capital, brokerage fees, home-inspections and appraisals. The last week I spent some time with Dave Smith conversing with neighbors in the N Portland area and it really opened our eyes to a very significant neighborhood transformation that has really picked up in the last 5 to 7 years. Gentrification is a phenomenon that is changing the face of Old Portland Homes and like all changes; it brings the good and the bad.
The effect of this dramatic transformation is what is known as gentrification. According to Wikipedia, "gentrification is a number of processes of change in demographics, land uses and building conditions in an area accompanied by rapid increase in a neighborhoods property prices and influx of investment and physical remodeling and renovation."
At a glance, areas such as Piedmont, Irvington, Alberta, Sellwood and some other surrounding communities are radically changing shape. Take a stroll down any of these characteristic neighborhoods and you will immediately notice many home renovations, in fill developments and many projects aimed at improving "curb appeal". Beyond the colonial columns, white picket fences and arborvitaes, there is a great deal of history and those homes can still remember the sounds of families playing and living together. On the breeze of the old maples and dogwoods, one can hear the whispers of life long since past. Gentrification changes this and builds new memories for the world of tomorrow.
One of the primary results of gentrification is a shift in the demographics of a neighborhood. As properties are improved and prices increase, lower-income residents can no longer afford to buy in these areas. Another consequence is that an increase in property values results in an increase in property taxes. Residents, who find themselves unwilling or unable to pay the difference, typically sell or even transfer the difference to their tenants by increasing rents. So, gentrification usually moves lower-income residents out of a neighborhood. For better or for worse, this is a natural result of the general improvement of the neighborhood.
There are many people who are very un-happy about gentrification. We spoke with one member of the community who felt guilty for contributing to the renovation of her community. She said, "I have seen good and bad come of this. It is just shocking for me to see a house that 10 years ago sold for $100,000.00 and recently within the last month I watched it go for over $600,000.00." Yes, it is true that if you build up the value of the community, prices will increase as a result. It's also true that the increased prices will shut out certain demographic groups. These are tough issues and there isn't an easy answer.
On the other hand, there are also many wonderful results that naturally come from gentrification. As a native Oregonian, I have many memories of the NE and N Portland areas and I remember numerous homes that were poorly maintained and in terrible shape. Many of the homes in the N and NE Portland neighborhoods were run-down, neglected and abused. My family and I always admired the 3 story, 5000 square feet historic Craftsman style homes (circa 1900) and the grandeur of historic colonials with their enormous columns boasting incredibly ornate detail. At the same time, we were usually admiring these gems for their potential, because so many of them had fallen to the wayside. To have such a unique piece of history slide into disrepair is such a shame. Although gentrification alters the face of history, neglect can have a worse impact on both the value and the history of those old neighborhoods.
A great aspect of gentrification is that old, run down neighborhoods are making a huge comeback. Remodelers and renovators are buying some of these homes and they are bringing them up to modern standards while maintaining their original charm and character. Sometimes this doesn't happen and a total demolition occurs. But on the whole, these neighborhoods are now becoming very desirable places to live and this is resulting in the revitalization and renewed vigor of these communities.
What is attracting so many renovators and remodelers to these areas? Most of them are admired for character, developed neighborhoods, mature growth, history and charm. Take Piedmont for example, which is located on the East side of the Willamette River in the N and NE of Portland. The boundaries for Piedmont include Interstate 5, Northeast Columbia Boulevard, Northeast Martin Luther King Jr. Boulevard and North Ainsworth Street. Within Piedmont's general boundaries contain approximately 616 acres, 2,518 residences and 6,427 residents. Piedmont is known to be considered as an "Ideal Urban Village" and is widely praised for its easy access to popular neighborhoods like Kenton, Boise, Alberta, Irvington, Mississippi and Humboldt.
Furthermore, Piedmont, which literally means "foot of the mountain", was established in 1895 as an upper middle-class suburb (it's not a suburb anymore) and it was previously known as "The Emerald and Portland's Evergreen Suburb." Gentrification is renewing and reenergizing "Historic Piedmont" and this is a substantial improvement to the devolution that occurred there over the past 30 to 50 years. Just as Dave spoke about waves in real estate pricing; Piedmont is experiencing a tremendous increase in both status and popularity. Within the last 5-7 years, Piedmont has become one of the highest appreciating cities of all surrounding Portland neighborhoods. Advancing from "starter home" to "fixer-upper" and now to "established"; the neighborhood has made a major transformation. Some properties in the Piedmont area have appreciated by an astonishing rate of 80% or greater in the past 5 years. This is one of the reasons that I write these articles. I want my clients to be highly informed about the pockets of real estate that show the most promise.
Personally, and I believe Dave would agree, I am delighted with the renovation of these Portland neighborhoods. There is quite a lot of controversy surrounding the topic of neighborhood gentrification.
Allow me to make a case for gentrification because there are so many positive outcomes. I concede that this process is changing the nature of the neighborhoods that are found in N and NE Portland. However, these changes have revitalized the community atmosphere. This renovation is a testimony to property rights and freedom of land ownership. This progression has taken place freely and gradually as more and more purchasers began to take an interest in the abundance and diversity that these neighborhoods boast. There is also a profound sense of community that seems to be lacking in the more suburban neighborhoods. We were talking with local residents in the Alameda and Piedmont areas and they were happy to tell us about their block parties, community barbeques, neighborhood awareness and the like.
It will be interesting to learn more about the neighborhood and to further investigate the development and effects of gentrification. I highly recommend these communities to my clients because there is still a tremendous amount of untapped potential. I will continue to work in this area and I look forward to speaking with more community members who are usually kind enough to share their intriguing stories with me. This is perhaps the greatest thing about these neighborhoods; you are not only living in history but you become part of it.
This article is intended to thank all the Realtors who have been kind enough to visit my recent broker tours. Lately, I have been experiencing much success with broker tours and I owe that to all the Realtors out there who still believe in the power of networking and (getting off their butts and out of the office).
It's amazing how inspired I feel after a good day at a broker tour! With all the negativity that is infecting the media these days, I believe that the significance of open houses and broker tours is greatly underestimated. Realtors, for the most part, sell listings! How much more affectively could we get listings sold if we all conspire to work together?
In addition, the ability to network with other Realtors outside your office is truly invaluable. I love hearing about the type of clients that my colleagues are working with, what types of strategies they are using, new programs available, upcoming events I didn't previously know about and the list goes on. Every time I have a broker tour, a few of the agents will say, "I have to bring my client to see this", and they do! The listing is always shown more after one of my broker tours. That is the power of networking and getting off your seat!
What type of a reaction do you hope to elicit from someone viewing
your listings?
This has been a topic I have wanted to write about for 3 years. What are people thinking when they post pictures of properties with cars all over the driveway, debris inside or outside of the house, laundry on the floor, etc..?
What type of a reaction are you hoping to inspire from potential buyers when posting a listing? Should we not do everything we can to get buyers in the front door?
Residential Buyers are Visual Creatures
Specifically "residential home buyers" tend to be visually motivated. I am not referring to the advertising of investment properties where the buyers are looking at the purchase from a logistical standpoint. If you have watched any of these tv shows like "Curb Appeal" or "Sweat Equity" on DIY Network,it is easy to see that what you can "see" makes all the difference. According to a source from MarketingCharts, "Internet display advertising continued its growth leadership, increasing 15.9% in 2007 to $11.31 billion in expenditures." If visual appeal isn't important, why is the US spending so much money on it?
People Tend to Buy Emotionally & Visually
People tend to purchase emotionally and visually. No more are we in the days of predominantly text and static images. People want to be wooed and impressed and this almost always requires use of graphics. It is amazing how emotionally moved a client can be to view a property based on how it looks in the MLS.
I have literally watched clients toss listings based on how they "look" in the images. Are you going to let that happen to your listing? You don't have to be a marketing major to drive buyers to view your listed properties. Show the properties off in the best light possible. I can't help but chuckle at some of the photos posted by agents on-line. My favorite laugh to date was a new property flyer that had a great big image of the front of the house with a quaint little "Port-O-Potty" just off to the right of the image. It might have taken just a few minutes to apply a cropping tool to the photo. Ha! That just cracks me up!
Technology Is Better Than Ever!
As real estate experts, we have absolutely no excuse for not taking advantage of the technology available to us for effectively advertising listings. With Photoshop, virtual tours, streaming videos and various photo enhancer technology (within reason of course), we can without a doubt market our property listings with awesome visual appeal. One of my personal favs is Adobe Photoshop which I would definitely recommend for someone who is more advanced with photo enhancement tools. I personally love the ability to perfectly crop and add text and borders to the photos.
It Takes Some Cooperation!
Sometimes, it really isn't possible to take a good photo. Let's face it, there is only so much one can do with photography. This is when we need to be the professional and express to our clients what is in their best interest to do in order to get the property shown. It is unacceptable, in my opinion, to sign documents and start snapping photos without that property being completely prepped first. If there are small children in the house it may be necessary for the owner to store away items that you would not want to see in property photos. Did I mention the time my client spotted diapers and baby wipes in a property photo? Anyway, make sure the property is ready to take the stage. The beauty of this is, your client will respect you for it!
So there you have it. Let's set the stage for our listings and market them with confidence.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Once Joe and his soldiers were positioned, they soon realized that they were behind enemy lines - not good. This meant that they were surrounded by the Japanese army and their mission was going to be more complicated than they first understood. In this position, the only food they could rely on was food that was air-dropped by C-47 aircraft. The C-47 airplanes were responsible for delivering food and ammunition to the soldiers. This was treacherous because it was painfully obvious to the Japanese exactly where they were located. Many times soldiers would be ambushed just working to pull in the packages and food. He taught me that the soldiers completely ignored the feelings of fear in their minds because dwelling on them would only be paralyzing. In that sense, fear would make them more susceptible to injury. Joe said that the focus of the soldiers had to remain on getting the mission completed so that they could get on that plane ride back home.
Broker Tours For The Soul 
Show the properties off in the best light possible. I can't help but chuckle at some of the photos posted by agents on-line. My favorite laugh to date was a new property flyer that had a great big image of the front of the house with a quaint little "Port-O-Potty" just off to the right of the image. It might have taken just a few minutes to apply a cropping tool to the photo. Ha! That just cracks me up!
;)
;)
