I've been telling my Real Estate Talk listeners for months that, depending on where you live in the mid-valley, we are somewhere between a neutral and a strong buyer's market...but why aren't the buyers buying?
Even though the local housing market is strongly favoring the buyers, many are still sitting on the sidelines. I think there are really 3 things they are waiting for. First, they're waiting for prices to come down a little further, everyone wants to buy as close to the bottom as they can; Secondly, they are waiting for the right interest rate, and finally there are other buyers who think that they won't be able to get financing because there isn't money available from lender
Waiting for the bottom...
Waiting for the bottom may be the best way to miss a great deal in housing. First of all, you won't know the bottom hit until some months afterward - it's a data point, an historical fact. Prices in the mid-valley are off about 10% from their highs a year and a half ago. Might they come down a bit further, sure, but depending on how long you intend to own the home, the exact bottom isn't really that important. Over time, a nice home in a good location will ALWAYS appreciate in value. For those looking to own for at least 5 to 7 years, using this buyer's market to your advantage toda
y means you'll get a great deal today, and maximize your opportunities for the future.
Interest rates have the largest impact...
Interest rates have the largest impact on your monthly payment, and the affordability of your home. Generally speaking, interest rate has a bigger impact even than a drop in price. Over the past year and a half, interest rates have been consistently between about 5 and ½ and 6 and ½ percent, historically, pretty exceptional rates. Where are they headed in the future, it's really un-predictable and frankly, 
why would that be an over-riding factor in your decision? If you are going to stay in the home long enough, it could be worth an investment in up-front closing costs to buy down the interest rate and in today's market you can negotiate that from the seller instead of, or IN ADDITION to a price reduction. Secondly, if rates come down substantially in the future, you may have the opportunity to take advantage THEN and refinance anyway. Paying attention to the interest rate in the housing equation is important, but don't let it paralyze your ability to make a decision and miss a great opportunity.
The news media...
The news media has unfortunately created this perception that loans are not available. That just isn't the case. What has happened is that lending standards have definitely tightened, and that is a good thing for the long term health of the market - but banks still have money to lend to qualified buyers. If you have a steady job, solid credit, and the ability to document it, you can get a loan. How much HOUSE you can afford may be more limited by the resources you have for a down payment than anything else. An FHA loan today will require a minimum of 3 and ½ percent down payment, that's 
the lowest out there. Most lenders are going to want 5, or 10, and in some cases 20% down. This is a move back to the OLD, pre sub-prime days. My advice is for potential buyers to meet with a lender they like and trust and open the dialogue. Additionally, there are resources out there to help buyers increase their down payment - for more information check out the Real Estate Talk web-site.
Summary
I believe very strongly that there is a pent up demand for housing in our area. Our local economy is still solid, still creating jobs, despite what you might hear on the news. Getting the housing market moving again is a key to the wider health of the economy and doing just a little research, asking questions of professionals that you trust, could help many potential buyers realize that not only is NOW the best time to buy a home and make the transition from renter to home owner...but that it is well within their reach. Prices are down - will they go down further - maybe but when balanced against the future of interest rates, I think you will be hard pressed to find a more affordable time to buy. Most importantly, there IS financing available for qualified buyers. Don't be paralyzed by unknowns and false assumptions. The ONLY way for you to determine if buying is right for you...and if you're in the position to buy - is to sit down with a real estate professional and a lender- and start building a plan today.
(1) "SOLD" statistics include both SOLD and PENDING
(2) Months of Inventory Calculation based on the rate of sales in the previous 90 days.
Albany
Corvallis
Lebanon
Last show: Thursday, November 6 - Carisa Ramey, Central Willamette Community Credit Union is scheduled in to talk about Programs available for first time buyers, as well as provide her insights into the current mortgage lending environment.
Upcoming Guests Scheduled:
Other November guests:
November 15 - Mary Hartley (RE/MAX Integrity) - Sellers and the holidays. Do you keep your home on the market or take it off over the holiday season? Many sellers are going to have to make that decision in the next week. We'll discuss the pros and cons with Mary.
Real Estate Luncheon - Our monthly roundtable discussion about the local real estate market and current events. Tentatively scheduled: Bryan Milligan (Pacific Residential Mortgage), Theresa Markham (LandAmerica) and Carla Allen (RE/MAX Integrity-Corvallis)
Date TBD - Tax Assessment - Mark Noakes, Linn County Tax Assessor will be in to discuss how property taxes are assessed, how to read your property tax statement, assessment appeals, new construction valuations, and more.
Are you a First Time Home Buyer? Do you want to participate in Real Estate Talk? Dave is looking for someone to go through the process "on the air" by working with him, and letting the listeners know how things are going throughout the entire process. The person(s) selected will receive some nice gifts as a way of saying "thank you." Jay Chase Inspections will provide the Pest and Dry Rot Inspection at no charge to the buyer(s) selected for this program. Corvallis Moving and Storage will provide the Local Move (packing not included).
For more information, contact Dave at realestatetalk@kgal.com.
(1) "SOLD" statistics include both SOLD and PENDING
(2) Months of Inventory Calculation based on the rate of sales in the previous 90 days.
Albany
Corvallis
Lebanon
Last show: Thursday, 16 October - The Eugene real estate market. What is going on there, and what it means to us in the Linn and Benton Counties. Tentative guests include Kevin Simrin (Owner-ReMax Integrity).
Upcoming Guests Scheduled:
Saturday, 25 October - Michael Berrey and Erin Moseley (State Farm Insurance) The fundamentals of home owners insurance when you are buying a home. Understanding flood insurance.
Are you a First Time Home Buyer? Do you want to participate in Real Estate Talk? Dave is looking for someone to go through the process "on the air" by working with him, and letting the listeners know how things are going throughout the entire process. The person(s) selected will receive some nice gifts as a way of saying "thank you." Jay Chase Inspections will provide the Pest and Dry Rot Inspection at no charge to the buyer(s) selected for this program. Corvallis Moving and Storage will provide the Local Move (packing not included).
For more information, contact Dave at realestatetalk@kgal.com.
(1) "SOLD" statistics include both SOLD and PENDING
(2) Months of Inventory Calculation based on the rate of sales in the previous 90 days.
Corvallis
Lebanon
Last show: Encore performance of Anna Balkema (Willamette Neighborhood Housing Services) and our discussion of 1st time buyer assistance programs.
Upcoming Guests Scheduled:
Thursday, 16 October - The Eugene real estate market. What is going on there, and what it means to us in the Linn and Benton Counties. Tentative guests include Kevin Simrin (Owner-ReMax Integrity)
Saturday, 25 October - Tentatively scheduled. Michael Berrey and Erin Moseley (State Farm Insurance) The fundamentals of home owners insurance when you are buying a home. Understanding flood insurance.
Are you a First Time Home Buyer?
Do you want to participate in Real Estate Talk? Dave is looking for someone to go through the process "on the air" by working with him, and letting the listeners know how things are going throughout the entire process. The person(s) selected will receive some nice gifts as a way of saying "thank you." Jay Chase Inspections will provide the Pest and Dry Rot Inspection at no charge to the buyer(s) selected for this program. Corvallis Moving and Storage will provide the Local Move (packing not included).
For more information, contact Dave at realestatetalk@kgal.com.
(1) "SOLD" statistics include both SOLD and PENDING
(2) Months of Inventory Calculation based on the rate of sales in the previous 90 days.
Albany
Corvallis
Lebanon
Thursday, 02 October - Ana Norlander (Windermere, Willamette Valley). The Earnest Money Agreement - an overview of the important clauses and decision points you need to understand as either a buyer or a seller.
Upcoming Guests Scheduled:
Saturday, 11 October - TBD
Thursday, 16 October - The Eugene real estate market. What is going on there, and what it means to us in the Linn and Benton Counties. Tentative guests include Kevin Simrin (Owner-ReMax Integrity)
Saturday, 25 October - Tentatively scheduled. Michael Berrey and Erin Moseley (State Farm Insurance) The fundamentals of home owners insurance when you are buying a home. Understanding flood insurance.
Are you a First Time Home Buyer? Do you want to participate in Real Estate Talk? Dave is looking for someone to go through the process "on the air" by working with him, and letting the listeners know how things are going throughout the entire process. The person(s) selected will receive some nice gifts as a way of saying "thank you." Jay Chase Inspections will provide the Pest and Dry Rot Inspection at no charge to the buyer(s) selected for this program. Corvallis Moving and Storage will provide the Local Move (packing not included).
For more information, contact Dave at realestatetalk@kgal.com.
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Helping people achieve their goals in real estate. As the host of "Real Estate Talk" on 1580 KGAL I spend every Saturday morning from 10-11 am helping to educate the Willamette Valley on real estate.
My goals as a real estate professional are simple:
* First, to help my clients achieve THEIR goals;
* Secondly, to create positive relationships with my clients
* Lastly, to develop the reputation of service and personal commitment that every one of my clients will be proud to refer their friends and family to me for any real estate need.
I host a weekly radio show, Real Estate Talk on 1580 KGAL. The show provides the only radio resource in the mid-Willamette Valley for real estate questions. We try to focus on the Real Estate Lifecycle, providing invaluble information for our listeners in every phase...whether buyer, seller, or home owner. Each show contains a weekly Market Update, an often lively discussion on hot topics in real estate, answers to questions that listeners have e-mailed in, and a Real Estate Showcase that covers the Lebanon, Corvallis, and Albany markets in the mid-Willamette Valley.
As a retired Naval Officer, I spent a 23 year career on active duty. Having never had less than 120 people working for me, I know about responsibility...and how important it is to "accomplish the mission." I bring the same skills and attitude to every real estate transaction. Coordinating the escrow, lender, inspector, and everyone else important to making your deal close.
My background:
intensity, goal orientation, and mission accomplishment framework to real estate.
Dave,
As you well know buying and selling your home is an interesting and emotional process; your timely, informative and continued support and communications served us well. When we decide to make the plunge again, you will be the first to know. If we ever have the opportunity to recommend you, we will.
PMA + POA = $ (Positive Mental Attitude plus Plan of Action = $uccess) you always had them both.
Best wishes and good luck to you and your family. FB and Ionela Lynch
David was a wonderful agent and we were very happy with his services... We love our new home.
From: Greg and Nova
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