Building Permits and Housing Starts take a blow. That means that builders are not building any more new homes right now and they are trying to sell what they have built. They don't want to compete with the distressed sales on the market (ie. Short Sales, Bank Owned Foreclosures) . The existing housing inventory is low and mostly a mix of distressed sales and non-distressed homes (regular home owners trying to sell).
Distressed sales have driven down prices to their current lows. Traditional turn key sellers are motivated to sell their homes, whether it is to take advantage of the buyer’s market and move up or simply to get out from under their mortgage.
Property owners have seen an influx of new renters in the market due to foreclosures, short sales and transplants relocating here from out of state and this has caused some property owners to raise their rents.
Interest rates have been down this year and they continue to cruise to new lows. Most of you have heard for some time now that interest rates can't remain this low forever and you should buy before they go back up. While it is obvious that interest rates will not remain this low forever, no one can predict when they will go back up. However, all the reasons mentioned above have created a "perfect storm" for home buyers.
That is why now is a very good time to meet with your professional Realtor or Lender to find out how you can position yourself to take advantage of this "perfect storm". There are many reasons why you may be "on the fence" about buying a home in this market. Maybe you think prices will continue to drop or you just don’t think you will qualify for a loan. You might’ve even been burned by the housing market in another state. Whatever your reason for hesitation, an honest and competent professional can give you a realistic assessment of your options.
It’s never a bad idea to attain a Pre-Approval letter and know your options.
I went to First Thursday in the Pearl district last week and have to admit that I feel very privileged to live in Portland . At the risk of sounding “cheesy”, I am being sincere and honest that as a transplant here from So California, and with 7 years time, Portland has truly grown on me.
It could be all the different type of people, the art and artist, the environment and vibe, and scenery of a city with river and mountain-top views. But in reality those things can be found in a lot of cities, so it has to be more. What if it’s Portland ’s "Keep It Weird" bumper sticker?
Ok, a bumper sticker can’t make or change a city but a philosophy might. Specifically, it could be that walking around the city yesterday I never felt out of place. It’s as if Portland is a place for everyone! My spouse said it best yesterday while sipping on her salsa margarita at the Vault, “I could hang out in Portland alone one night and feel as if I made a ton of new friends”.
Selfishly, I looked around the room to see the tattooed, alternative, comfortable, beautiful and accepting people and thought I would love to help all of these people buy their home. Not just because it’s my job as a mortgage professional but because I enjoy helping my friends whenever possible. And I’m privileged to live in Portland: a city with a ton of new friends!
So I encourage you to follow me on Facebook and use this blog to learn everything you need to learn to become a homeowner. Whether you are a first time home buyer, investor or just moving up to the next house, in this market and lending environment it is important that you work with professionals and resources that can guide you through the process. Give us a call!
Written By Adrian Hinckley of Cobalt Mortgage
