Tigard Home Sales February 2011

single family homes - compared to Feb. 2010

• average sold price $313,703.00 - down 5.1%
• Days on Market 236 - up 30%
• active listings 53 - down 34%
• 22 homes were sold - down 33%
  • 10 were in the $200,000 to $300,000 range
  • 8 were in the $300,000 to $400,000 range
  • 4 were in the $400,000 to $500,000 range
• 59% of the homes sold were short sales (3) or bank owned properties (10)

All information is deemed accurate but is not guaranteed.

Real estate activity in Tigard Oregon for the month of February was quite low. People still need jobs and Banks have too many foreclosures. When these two conditions improve, the real estate market will improve because there is much pent up demand for housing. This should be the last big year for foreclosures because the peak of people needing to refinance their interest only loans will pass.

How to Buy Foreclosures

Most people have heard of foreclosures, but don't know that buying one is relatively easy and usually profitable, if you start out with reasonable expectations. A foreclosure is when the Bank owns the property and the property no longer has a mortgage. Foreclosure, Bank owned property, and REO (real estate owned) basically all mean the same thing; the Bank has taken back the property and wants to sell it.

Not all Bank owned properties are bargains, but many are. Just like any other property, condition and location must be considered, along with the price of comparable properties in the neighborhood. Foreclosures tend to be under-priced, but this is not always the case. Popular properties can generate multiple offers and sell for more than the listed price. Do not get caught up in a bidding war and pay more than market value. Most foreclosures do not generate this kind of activity and can be purchased at a discount from the listed price.

Here are a few money saving tips to follow when purchasing foreclosures:

•1.       Select a Buyers' Agent that has experience with foreclosures and the neighborhood you are interested in. Have your agent get the history of the property from a Title Company. Since most Banks have only one or two agents handle their foreclosures in an area, have your agent do a MLS search on this agent to determine the sales price to list price ratio. This will give you an idea on how much of a discount to ask for.

•2.       Always offer less than asking price. This amount is based on how long the property has been for sale and the condition of the property. Low-balling a property when it first comes on the market is not going to work. A small discount has a much better chance of succeeding. Banks usually are not firm on their price because they are not in the business of being property managers. This is especially true if a listing is more than a few weeks old. A larger discount may be in order if this is the situation. Have your agent ask how many offers have been received on this property. The fewer the offers, the more of a discount you can ask for.

•3.       Banks sell the homes "as is" and do not want to make repairs. This is not a hard and fast rule and may be waived on certain properties. Don't ask for any repairs until you have an inspection report in hand. Banks are generally exempt from most disclosure laws because they do not know the history of the property, but like everyone else, they are required to disclose any known "material facts". Ask the Listing Agent for a copy of any inspections that have been done on the property.

•4.       Your offer should include a pre-approval letter and a Buyer biography. It is even better if you can get pre-approved from the same Bank's lending department. The stronger you present your offer, the easier it is for the Bank to accept it.  Banks do not to start a transaction and then have it fail because of financing. Being able to prove that you have the ability to complete the transaction will tip the scales in your favor. Banks also may have certain forms they want included with your offer. These can be obtained from the Listing Agent and you should be aware of their significance to the transaction.

•5.       Offers are usually faxed to the Bank. You do not have the opportunity to present the offer in person. Bank personnel do not work weekends or evenings, so be patient. Banks have many foreclosures and offers to work through, so do not be surprised if your dead-lines come and go. It often takes more than one person or department to approve offers. You can always extend the deal if you wish to proceed.

•6.       Protect your earnest money. Some Banks make the earnest money non-refundable immediately upon the acceptance of your offer. Some Banks will not accept personal checks and require a cashiers' check or other certified funds. Since each Banks' policy differs, make sure you have a conversation with your agent about protecting your earnest money.

•7.       Your offer should include an "inspection contingency". This will allow you enough time to get an inspection and terminate the deal if unanticipated defects are found. Now is the time to ask for repairs to be done or a credit applied to the purchase price. Banks may renegotiate to save the deal.

•8.       An appraisal still needs to be done. This may take up to two weeks. The Bank paperwork may say that if the appraisal comes in low, the Buyer will make up the difference. Don't offer an unrealistic high price thinking that you can get the price reduced when the appraisal comes back. This is a risky strategy.

•9.       You are not home free yet. The Bank may quibble over paying certain closing costs/fees. Ask the Listing Agent, before you write an offer, what fees the Bank is accustomed to paying. You also need to be aware that somewhere in all that paperwork from the Bank is a clause that in effect states that they can terminate the deal for any reason right up until closing. Fortunately, this rarely happens.

Buying a foreclosure home is not a "slam dunk" way to wealth as the late night infomercials tout. There are certainly bargains to be had in the foreclosure market. These tips will help manage your expectations and are a starting point in discussions with your real estate agent.

Tigard Home Sales Statistics for January 2011        

single family homes    

•   The average sold price is $300,580. This is a decrease of 2.5% from a year ago.

• The average median price is $295,000. This is a increase of .5% from a year ago. 

All information is deemed accurate, but is not guaranteed.      

I expect short sales and foreclosures (Bank owned properties) to remain a significant portion of total sales in Tigard through 2011 and most of 2012. This will keep a downward pressure on sales prices. I am not expecting appreciation to return until at least 2013. The average median price being lower than last year indicates that the home sales are in the lower price ranges. Not many expensive homes are not selling right now.   

• Now is a great time to buy because there are some real values in housing available now, but don't buy if you expect to move within 5 years. Prices are going to stay flat or slightly decrease for a while. If the time is right for you or your family to buy a home, do it. Don't try to play the market.
• If you are a Seller, don't sell unless you have to. You are going to get beat up in this market. If you must sell, price your home right when you put it up for sale, and make sure your home sparkles. It has to stand out from all the other homes on the market.
• If you are an investor, now is the time to buy because you can find properties where the rental income will cover the mortgage payment. When this recession is over, these bargains will disappear. Take advantage of this unique situation.
• The real estate market is not going to improve until the unemployment rate goes down. Buyers need jobs!

Here are some recent articles I have written about the real estate market:   

   Money, Marriage, and the housing Crisis     What has Happened to the American Dream?       

Wayne Pruner is a Realtor in Tigard Oregon. I am ready to help you save money when you buy or sell your home. My direct phone number is 503-891-0795 and my email is waynepruner@oregonfirst.com.  

Tigard Single Family Home Sales for December 2010

• The average sold price is $291,061. This is a decrease of 7.1% from a year ago.
• The average median price is $260,000. This is a decrease of 12% from a year ago.

• The average days on market is 144. This is a decrease (improvement) of 25%.
• Active listing are up 52% from a year ago.
• The total number of homes sold, 44, is an increase of 18.9% from a year ago.
• There were 13 short sales and foreclosures. This represents 29% of the total homes sold.
• Only 5 homes over $400,000 were sold in Tigard this month.

All information is deemed accurate, but is not guaranteed.

I expect short sales and foreclosures (Bank owned properties) to remain a significant portion of total sales in Tigard through 2011 and most of 2012. This will keep a downward pressure on sales prices. I am not expecting appreciation to return until at least 2013. The average median price being lower than last year indicates that the home sales are in the lower price ranges. Not many expensive homes are not selling right now.

• Now is a great time to buy because there are some real values in housing available now, but don't buy if you expect to move within 5 years. Prices are going to stay flat or slightly decrease for a while. If the time is right for you or your family to buy a home, do it. Don't try to play the market.
• If you are a Seller, don't sell unless you have to. You are going to get beat up in this market. If you must sell, price your home right when you put it up for sale, and make sure your home sparkles. It has to stand out from all the other homes on the market.
• If you are an investor, now is the time to buy because you can find properties where the rental income will cover the mortgage payment. When this recession is over, these bargains will disappear. Take advantage of this unique situation.
• The real estate market is not going to improve until the unemployment rate goes down. Buyers need jobs!

Here are some recent articles I have written about the real estate market:

Money, Marriage, and the housing Crisis

What has Happened to the American Dream?

Wayne Pruner is a Realtor in Tigard Oregon. I am ready to help you save money when you buy or sell your home. My direct phone number is 503-891-0795 and my email is waynepruner@oregonfirst.com.

If this is a Buyer's Market, then where are the Buyers?

A Buyer's market is one that favors the Buyer. In normal times this means that there is more inventory than demand. The current abundance of very affordable homes for sale and the historically low interest rates would make this a buyer's market of colossal magnitude, but Buyer's are staying away when they should be crawling out of the woodwork to take advantage of the situation. In reality, sadly, this is a Buyer's market only because few have the ability to buy. Why is this happening?

•1.       Lack of jobs. When people are afraid of losing their jobs or are working reduced hours, they are not thinking of buying a home. Obviously the already unemployed are not going to be buying homes. This is the number one issue.

•2.       High lending standards. Financial institutions have swung from to loose lending standards to being overly strict. Denying mortgages has the consequence of reducing the pool of willing Buyers for their inventory of foreclosed homes.

•3.       Lack of credit. This is not just relevant to the current recession. Most people are unaware of what actions negatively impact, or what actions improve their credit score. Managing your credit properly has lifetime benefits.

•4.       Investors with cash. Short sales and foreclosures are approximately 30% of the homes for sale. Investors with cash can often get deep discounts because they offer a quick close. A Buyer that has to get a loan is often not a sure thing because of last minute financial, appraisal, and inspection issues.

•5.       Condo issues. It is very difficult to get a loan on a condo if the Home Owner's Association has more that 15%of it's' owners behind on dues and it does not have enough reserves for future maintenance. Getting a loan when the owner-occupancy rate is below 75% is very difficult. Foreclosures and short sales in a complex magnify these issues and a Buyer needs lots of cash to make a purchase.

•6.       Buyer confidence. Many people are sitting on the sidelines fearful to make a purchase because of all the negative housing news, primarily the threat of prices continuing to decline. Many Buyers are waiting for the market to hit the bottom before making a purchase, causing that day to be further extended into the future.

There is pent up demand for home ownership. Homeowners want to refinance to lower their monthly payments, freeing up money for other purchases. Financial institutions can help their own predicament by easing up on lending requirements. I also think that they should offer attractive financing or reduced closing costs to anyone who wants to purchase from their inventory. This would put them in the driver's seat for the whole transaction and increase their confidence that the deal will be done.

Tigard Home Sales for November 2010

single family homes

• The average sold price was $286,297; this is a decrease of 9.9% from a year ago
• The average median price was $255,000; this is a decrease of 10.3% from a year ago. 

• The average days on market was 145; this is an increase of 9.8%.
• The average number of listings was 46; this was a decrease of 9.8%.
• The number of homes sold was 33; this is a decrease of 31%.
• The number of short sales sold was 3; the number of  Bank owned properties sold was 7; these distressed sales represents 30% of all homes sold. 

  All information is deemed accurate, but is not guaranteed.

I expect short sales and foreclosures (Bank owned properties) to remain a significant portion of total sales in Tigard through 2011 and most of 2012. This will keep a downward pressure on sales prices. I am not expecting appreciation to return until at least 2013. The average median price being lower than last year indicates that the home sales are in the lower price ranges. Not many expensive homes are not selling right now.

• Now is a great time to buy because there are some real values in housing available now, but don't buy if you expect to move within 5 years. Prices are going to stay flat or slightly decrease for a while. If the time is right for you or your family to buy a home, do it. Don't try to play the market.
• If you are a Seller, don't sell unless you have to. You are going to get beat up in this market. If you must sell, price your home right when you put it up for sale, and make sure your home sparkles. It has to stand out from all the other homes on the market.
• If you are an investor, now is the time to buy because you can find properties where the rental income will cover the mortgage payment. When this recession is over, these bargains will disappear. Take advantage of this unique situation.
• The real estate market is not going to improve until the unemployment rate goes down. Buyers need jobs!

Here are some recent articles I have written about the real estate market:

Money, Marriage, and the housing Crisis

What has Happened to the American Dream?

Tigard Oregon City Information

Tigard Oregon is a city located in Washington County. The city is named after Wilson M. Tigard (pronounced Tie-gerd) who settled in the area in 1852. He traded two cows for 320 acres of land that had a small cabin. Mr. Tigard became quickly involved in civic affairs by helping build the East Butte School, as the area was then known, in 1853. Wilson's son, Charles F. Tigard, established the first post office in 1886 and the area became known as Tigardville.

The late 19^th century saw the influx of many German immigrants to this predominately farming community. There was little change in the area until the Oregon Electric Railroad began daily service to Tigardville in 1910. This railroad connected Portland, Salem, and Eugene. To avoid any confusion with the Wilsonville stop south of Tigardville, the Oregon Electric Railroad named the local stop Tigard.

With the introduction of the railroad stop, Tigard started becoming a residential area for people working in Portland. Tigard remained primarily a farming community until the completion of Oregon Highway 99 and Interstate 5 in the 50's and 60's. These roads brought new people to the area and the population started to increase.

Amazingly, Tigard did not become an incorporated city until September 11, 1961. The incorporation measure had failed twice before. It was not until the City of Portland threatened to annex the area did the residents vote for self rule.

Tigard is now Oregon's 12^th largest city with a population of about 49,000. The city is 10.9 square miles and has 300 acres of parks. Tigard is a clean and affordable family oriented community with several city sponsored events.

There are many comfortable older homes and established neighborhoods mixed in with newer housing developments. The city is divided into 13 neighborhoods and encourages resident participation in local affairs. The Tigard - Tualatin School District is one of the most highly regarded school systems in the state.

 Here are some other recent articles I have written:

Tigard Home Sale Statistics for October 2010

Choosing a Tigard Home Tips

Tigard Real Estate Market Report for October 2010

Single Family Homes

Average sold price $291,390: down 7.1% from a year ago

Average days on market 125: has increased 8.7% from a year ago

Average median price $260,000: down 12.7% from a year ago 

Active listings 87: has increased 45% from a year ago

Short sales and Bank owned properties 10: represent  24.4% of all homes sold in Oct. 2010

All data is deemed accurate, but is not guaranteed.

I expect short sales and foreclosures (Bank owned properties) to remain a significant portion of total sales in Tigard through 2011 and most of 2012. This will keep a downward pressure on sales prices. I am not expecting appreciation to return until at least 2013. The average median price being lower than last year indicates that the home sales are in the lower price ranges. Not many expensive homes are not selling right now.

• Now is a great time to buy because there are some real values in housing available now, but don't buy if you expect to move within 5 years. Prices are going to stay flat or slightly decrease for a while. If the time is right for you or your family to buy a home, do it. Don't try to play the market.
• If you are a Seller, don't sell unless you have to. You are going to get beat up in this market. If you must sell, price your home right when you put it up for sale, and make sure your home sparkles. It has to stand out from all the other homes on the market.
• The real estate market is not going to improve until the unemployment rate goes down. Buyers need jobs.

Here are some recent articles I have written about the real estate market:

Money, Marriage, and the housing Crisis

What has Happened to the American Dream?

Choosing a Tigard Home

When you're in the market for buying a home in Tigard, it's wise to have an idea of what you need in your new home. Buying a Tigard home is pretty much like buying real estate anywhere else. There are many homes for sale in Tigard and the home buying process can soon become overwhelming, but with a little pre-planning you can lessen your fears and doubts and obtain the Tigard home that's best suited for you. Do not enter the market unprepared. I am happy to provide you with any information or advice that you may need.

Buying your own home is one of the smartest financial decisions you will ever make.  It is the foundation for building personal wealth. It also emotionally satisfying. It is a symbol of starting a new chapter in your life.

Before deciding which home to buy, think about your lifestyle, your current and anticipated housing needs, and your budget. Know how much of a loan you qualify for and how much you can afford to pay for house payments.

What factors are important to your specific needs?

First-time Tigard home buyers should not be thinking of buying a perfect home. Unless you have lots of money and good credit, this is an impractical approach. Think of finding a good home that has 80% of what you want and one that has potential for appreciation and may be under priced. Then trade up in 4 or 5 years, after you have built up equity, to a home that is closer to your ideal choice.

Start making a list. Do you know what you really want and need in your new Tigard home? You'll save yourself many hours of looking at homes if you make a list ahead of time. Start compiling your wish list by thinking what you like and dislike about your present home. Zero in on the features you must have and the ones you definitely don't want. Then add ones that would be nice to have. The goal is to find the right home in Tigard for yourself or your family and to avoid the one you "just have to have" that may not meet your needs or is more than you can comfortably afford.

When creating your wish list, take a look at your lifestyle. Think about your unique needs and what it will take to satisfy them.

• How many children do you have and plan to have?
• If you love to cook, you will need a well-equipped kitchen.
• If you love to garden, you will need a large yard.
• If you build and fix things, you will need space for your workshop.
• You may need an extra room for a library or home office.
• Do you have a boat, an extra car and RV?  You will need a place to park them.

Think about the floor plan. You need a livable home.

• Is the kitchen large enough? Would you be happier with an eat-in kitchen?
• Do you need a separate formal dining room?
• How many bedrooms and baths do you need? Do you need a guest bedroom? Are the rooms large enough?
• What style of home do you want?

As you think about your housing needs, it's important to consider how long you may live in your new home. This is important to the type of mortgage you select and the size and location of your home purchase.

• If you are newly married you might not be concerned with a school district right now, but may be concerned in a few years. Will you move then or are there good schools there now?
• If you have aging parents, might they need to live with you in the near future? If so, you may need to look at homes that offer living arrangement for them also. In such situations, the distance from your home to the hospital or their doctor is important.
• If you have to move often because of your job, how easy will this house be to resell?

You need to think about the home's location just as carefully as you do about the houses physical features. You don't just live in the house, you also live in the neighborhood. Identify what kinds of communities and neighborhoods in Tigard that are right for you. What kind of factors will affect your quality of life? Obvious ones come to mind.

• How far will you have to drive to work from Tigard?
• Do you need senior services and public transportation?
• What is the crime rate in the area?
• Will your new home be next to a vacant lot or commercial property or a freeway?
• What are your neighbors like?

You need to evaluate the availability of shopping, police and fire protection, medical facilities, day care, traffic and parking, recreational facilities and other community amenities. Chat with the neighbors to see what they think of the area.

Drive or walk around neighborhoods you are interested in. Talk to people who live and work in the community you are considering. Surf the Web. Learn the pluses and minuses of the area. Even a picture-perfect dream home can be a mistake if it is in an undesirable location, and a poor location can be a particularly bad choice if you expect to sell within a few years.

Do you prefer a new home or an older home? If you have the time and money to invest in fixing up a home, you may want to buy an older home that needs some work. Or remodel a home that is close to your needs. If you don't, you may want to buy an older home with all the renovations complete, or a new home that offers energy-efficient systems and modern materials.

I hope this helps you determine what is really important to you when you make your Tigard home purchase decision. It's a difficult decision for everyone, but the rewards for owning your own home are great.

These and many more questions need to be answered. Please read Tips For First Time Home Buyers  for other issues to consider when choosing a Tigard home.

Wayne B. Pruner is a Realtor® at Oregon First, in the City of Tigard, Oregon . I am ready to help you choose your Tigard home. I am knowledgeable and experienced and I can save you money. There will be no sales pressure.  My phone number is 503-891-0795. My email is waynepruner@oregonfirst.com.

Money, Marriage,  and the Housing Crisis

According to recent figures from the Census Bureau, couples are postponing marriage until their financial situation improves. The number of new households being formed is at its lowest level since 1947. This phenomenon is helping to keep the supply of unsold homes at record levels.

People are worried about losing their job or finding a job and are not thinking about buying a home. College graduates, who normally get a job and their own place to live after graduating, are moving back in with their parents because they cannot find a job. These graduates are not contributing to shrinking the housing supply.

The foreclosure crisis itself does not account for the oversupply of homes. When a house goes back to the Bank, these people still need a place to live. When these people "double up" in a rental, move back in with their parents, or become homeless, the demand for homes decreases and this increases the supply of unsold homes.

In normal times, new household formation would be about 1.25 million a year. From March 2009 to March 2010 the number of newly formed households was 357,000. Additionally, the number of new homes being built has plummeted because the underlying demand for new replacement homes has virtually vanished. Construction activity is a major employer and unemployed construction workers represent a significant portion of the unemployed.

There is a pent up demand for housing. These people that are doubling up don't want to be in that situation. They want to be on their own. They want to feel successful. They want to raise their own families in their own home. The oversupply of homes is not going away until these people find jobs and are confident that they can keep that job.

The housing industry had traditionally helped pull this country out of recessions. This recession is so perverse, for so many reasons, that it has reached down and altered the basic fabric of American life.

 To view a related article on this subject, please read What has Happened to the American Dream?