Dave Pautsch’s Blog

Housing markets run in cycles…we all know that don’t we?  Today in most of the country we are hearing that it’s a Buyer’s Market.  However, what makes that so…and what does it mean?

Housing is a supply and demand business for the most part.  In Oregon’s mid-Willamette Valley there is a great deal of inventory on the market (about 400 residential lisitngs right now as compared with about 300 last spring).  In Albany right now there is over 5 months of inventory on the market. While there are still sellers who are out there “dipping their toes” in the market, many of them have a legitimate NEED to sell and are offering discounted prices, as well as other incentives (like closing costs for example) to get their homes noticed and attract qualified buyers. 

Interest rates are great and there IS money available for qualified buyers.  By “qualified” I’m referring to buyers who have already seen a lending professional and had their credit and other criteria reviewed…ready, willing, and ABLE to buy…and armed with information as to how much they can afford.

Lastly, it’s the holidays…a time when almost all markets are slow anyway.

In a buyer’s market, if you want to be most successful you should:

1. Shop around.  You have a little bit of the luxury of time right now.  While nice homes that are priced well are still going to sell relatively quickly, it is rare that you’ll have to make a decision in 5 minutes or risk losing the house.

2. Arm yourself with as much info as possible.  How long has it been on the market? Is it vacant or still occupied?  What are the recent SOLD comparables? How many other homes are on the market that are almost the same?  How much are THEY asking? 

3. Negotiate hard.  While you may not get the world in every case, right now it is NOT unreasonable to ask for a discount and a few extras.  The individual seller’s motivations come into play here (hopefully you got some insights in your research)…but many can’t afford to be “offended” right now by a low-ball offer.  You are in the best negotiating position if you have money/secure financing, don’t have a house to sell, and are ready to close quickly.

4. Get an INSPECTION!  Make sure your “buy” decision is a good one.  Seller’s are required to disclose, but sometimes they really don’t know.  Knowing what the problems are and making sure that major issues are either resolved or ‘priced in’ is key.

5. Surround yourself with professionals!  Buying a home in any market has lots of complexities.  This is a legal, binding contract that has ramifications. Make sure you know what you are signing.  Having a Realtor, an Inspector, and a local lender that you like and trust as part of your team can save you money, give you additional leverage, and make your buying experience all that much smoother.

Good househunting!

D

Welcome to David Pautsch’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Albany. As the host of Real Estate Talk on 1580 KGAL, I do my level best to get consumers information to help them become good consumers of real estate…wherever they are in the real estate lifecycle; buyer, seller, or home owner.  Here are the Market Update statistics from my last show:

Real Estate Talk Market Update for 06 December, 2007 

1.      (1) “SOLD” statistics include both SOLD and PENDING
2.      (2) Months of Inventory Calculation based on the rate of sales in the previous 90 days. 

Albany

• SOLD/Pending (past 90 days) – 288  
  • Average price – $217,667  
  • Median Sale Price – $193,500  
  • Average Days on the Market – 122  
  • Average Dollar per Square Foot - $132.95
• Current Active Listings – 400  
  • Average Price of Active Listings - $265,063   
  • Months of Inventory – 4.17 

Corvallis

• SOLD/Pending (past 90 days) – 174  
  • Average price – $291,380  
  • Median Sale Price – $294,975   
  • Average Days on the Market – 82  
  • Average Dollar per Square Foot - $167.51
• Current Active Listings – 217  
  • Average Price of Active Listings - $343,243  
  • Months of Inventory – 3.74 

Lebanon

• SOLD/Pending (past 90 days) – 64  
  • Average price – $171,304   
  • Median Sale Price – $164,000  
  • Average Days on the Market – 110  
  • Average Dollar per Square Foot – $120.23
• Current Active Listings – 150  
  • Average Price of Active Listings - $215,056  
  • Months of Inventory – 7.03 

This Week’s guest – 6 December – Laura Uhler, Solar Ki – Solar energy for your home; building an energy efficient home and retrofitting your home with solar power*Encore performance on 8 December.  The audio is available for download at www.kgal.com/realestatetalk.asp

Upcoming Guests Scheduled: 

15 December - Year End Summary.  I’ll be looking back at the 1st year of Real Estate Talk and highlighting some of the information that you need as we get ready for a new year in a buyer’s market here in Oregon’s Mid-Willamette Valley.

20 December -  (Tentatively) – Kim Armstrong, Wells Fargo Home Mortgage will be here talking about loan programs for First Time Buyers.  There are STILL quality lending packages available for qualified buyers, including 100%.* Encore performance on 22 December 

29 December – David Crooks, Author of the Wall Street Journal’s Complete Guide to Real Estate Investing (Real Estate Replay of a previously recorded interview)