Each morning of late it seems the headlines shout aloud: “Foreclosures, Bankruptcies, the Housing Market is Crumbling”. Being in the industry as a mortgage consultant, I often tire of the continual barrage of messages that are designed to sell newspapers and magazines, and not inform us as consumers. Yes, the housing market has weakened, and the economy is suffering right now, but all is not lost.

John D. Rockefeller famously once said, “The way to make money is to buy when there is blood in the streets.” Now Rockefeller was referring to investing in our financial markets, but the same principal applies to any business or property investment. When the demand is low, prices will drop and that is when you buy. But, when demand is high, prices go up and you make your money. Pure economics is what drove the boom we saw in the housing market starting in late 2002, and now we are coming off that peak.

Here are 7 key points to consider:

• Interest rates are still as low as they were 6 years ago at the beginning of the home boom in 2002. They are the lowest they have been in the last 38 years with the exception of 2003-04. (Source: http://www.forecasts.org/index.htm )

• The home that may be 10% lower a year from now will still cost you just as much per month in a mortgage payment as interest rates WILL go up as the Federal Reserve raises the Fed Fund and Discount Rates and as the economy improves in 2009-10 and beyond. You will pay just as much for that home in the future as you will now even though it may have dropped in value.
(Source: http://www.time.com/time/magazine/article/0,9171,1713483,00.html )

• From a historical perspective the United States economy is NOT IN A RECESSION! We are in an economic adjustment period! Source: http://www.usnews.com/blogs/capital-commerce/2008/3/13/4-signs-we-are-not-in-a-recession.html

• Portland, Seattle, and Charlotte’s housing market actually appreciated in 2007 while 98% of Metro Cities across the U.S. declined. The Urban Growth boundary is a good thing! (Source: Prudential Northwest Properties of Oregon )

• The overall financial benefit of being able to write off interest on your taxes from mortgage payments, property taxes, and mortgage insurance will cut your overall taxable gross income by over $20,000 dollars with a home loan that is $250,000 or higher, literally pushing you into a lower tax bracket.

• Prices have never been more competitive since 2002 in the Portland, Oregon marketplace.

• Owning a home strengthens your personal credit, creates personal financial investment and independence, and pride of ownership. It also helps stabilize the local economy as home owners will spend their dollars locally based on where they live.

The last reason fits perfectly with Villebois in Wilsonville, and why you should consider the lifestyle and benefits of buying there. Villebois will be a community that is independent and will be full of owners who are proud to live there and invest in that community. Their commitment to Villebois will make Wilsonville the premiere community to live in between Portland and Salem on the I-5 corridor!

I and my lending partners, http://www.myportlandmortgage.com are excited to partner with Andy Green of Costa Pacific in creating a buying and lending experience that will be unlike any other in the Portland, Oregon area. Come check us out and see why everyone is talking about Villebois!