Phil Anderson

Many homebuyers and property investors have been deterred from buying real estate in Portland, OR by the stereotypical perception of the region as a place with heavy rainfall and persistent cloudiness. Moreover, local homebuyers have struggled with the ever-rising housing prices, which substantially eroded housing affordability in recent years. However, while the weather has not changed much, the recent declines in home prices and attractive mortgage rates have created the right incentive for homebuyers to consider purchasing a home or investment property in the region. In fact, now may be the best time to buy a piece of real estate in Portland, OR.

Housing affordability in the Portland, OR real estate market has improved notably in the recent years. Traditionally, Portland, OR has been one of the local U.S. real estate markets with lower housing affordability than that for the nation as a whole. However, bolstered by affordable mortgage rates and declining housing prices, housing affordability in Portland, OR has improved significantly. As of the second quarter 2009, a family making on average $70,000 per year, can afford to buy about 60% of homes listed for sale in the region. This is the highest percentage since the first quarter 2005. Housing affordability will continue to improve in the year ahead, allowing an increasing number of Portland, OR families to purchase their dream home.

Buying property in the Portland, OR real estate market has also become more attractive because of large corrections in local housing prices in recent years. According to the S&P/Case Shiller Housing Price Index, home prices have declined by 20% from their peak in May 2007. In fact, so far this year, home prices have been falling at an average rate of 1% per month. Currently, based on home sales on a popular online MLS portal, Trulia, the median sales price for a home in Portland, OR is $255,000. This price is 11.1% lower than that recorded in the previous year. The pace of price declines will moderate, with the market expected to turn around sometime next year. This makes buying a home or investment property in many attractive local real estate submarkets in the Portland, OR region highly recommended.

Historically low mortgage rates, which are hovering near their record lows, also support buying a home in Portland, OR today. An average interest rate on conventional 30-year fixed-rate mortgages is currently 5.52% p.a. This is the lowest rate in a year, or about 1.5 percentage points below the rate recorded in August 2008. Given that mortgage rates are expected to rise from the currently low levels, buying a home in Portland, OR in the current market, with highly affordable mortgage-financing terms, could help prospective buyers save money.

In addition, Portland, OR first-time homebuyers may have a special incentive to buy a home. The recently extended first-time homebuyer tax credit of $8,000 would significantly reduce the cost of buying a house. When this tax incentive is combined with substantially discounted prices of homes in Portland, OR and historically low mortgage rates, buying a home today could prove to be not only a financially sound decision but also an investment choice that promises to produce high returns over the long-term period.

The real estate market in Portland, OR has become more attractive for prospective homebuyers and investors. Lower housing prices, favorable mortgage rates, and first-time homebuyer credit have improved housing affordability, luring many homebuyers by the once-in-a-lifetime opportunity to buy a piece of the American dream in Portland, OR.

Portland, OR has been bestowed with certain characteristics that make owning a home, a leisure house, or an investment property in the area highly desirable. The real estate market in this part of the United States has fared well in the current downturn. The region has also been attractive for homebuyers and investors because it features some of the most beautiful scenic landscapes in the nation, a healthy living and recreational environment, and a large number of unique qualities, including the city's designation as the "greenest" and "cleanest" city in the nation. The following distinctive characteristics of Portland should appeal to many property buyers looking for a dream house or an investment property offering exceptional value:

•· Resilient real estate market. Prices in the area have declined so far by 20% from their peak, while nationwide they have fallen by 30%. At the same time, foreclosure rates in Portland have climbed to 1.8% as of September 2009, while nationwide they are 2.7%.

•· Lower property taxes. In terms of the real estate tax as a percentage of home value, Multnomah County, in which Portland is located, is ranked 383^rd in the nation, with the ratio of 0.91%. This makes it more favorable in terms of property taxes than 49% of the counties in the United States and better than the nationwide average of 0.96%.

•· "Green" and "Clean." Portland, OR has been ranked in the SustainLane's 2006 U.S. City Ranking as the most sustainable city in the nation. The city is ranked number one in terms of energy/climate, green building, and city innovation. It was ranked second in terms of the air and tap water quality and green economy. Portland also has the inner-city free public transportation, which contributes to the area's image of the "green" and "clean" community.

•· Natural beauties and scenic landscapes. Portland boasts some 37,000 acres of land covered by the scenic greenery and 150 miles of bike trails and lanes. It is home to the largest urban park in the nation. The area is decorated by the rugged splendor of the Cascades, the rolling hills of Oregon's wine country, and the breathtaking Oregon Coast. Therefore, this place offers a myriad of indoor and outdoor recreational activities and attractions, fairs and festivals, and community-driven activities.

•- Well educated and young population. On average, residents of Portland are better-educated than the average community in the United States. Nearly a third of all citizens in the area have higher education.

•- A cultural hotspot. Contradicting the stereotypes, Portland, OR is also a city of artists. The city has more artists, designers and people working in media than 90% of the communities in America. In support of the city's artistic appeal is the fact that Portland Art Museum is the oldest museum on the West Coast.

•- A tourist hotspot. Many travel and food magazines have been writing about Portland as one of the new hip places to visit.

•- Safe living environment. This year, the violent crime rate in Oregon has dropped to the lowest since the early 1970's. In terms of property crime, the State's property crime rate is at its lowest level since 1966.

All these characteristics showcase Portland as one of the most desirable locations to live and own a piece of real property. Given the new trend in home buying and property investing that promotes a combination of safe and pleasurable living with a prospect of housing equity appreciation; Portland should appear as the natural choice for many homebuyers and investors.

I LOVE movies. And this just came out on DVD, and since I read/heard good reviews, and since I rarely go to the movie theater to see films, (last one was "Gladiator" and prior to that, "Jurassic Park"), I paid my $2.99 for a 5 day rental.

OK, I must disclose...I've only watched the first 20 minutes...But I didn't know that it's about a guy who is a Realtor. He works at a big, fancy-schmancy firm in or near Hollywood (don't lash out at me..I think it's in/hear Hollywood.... I don't know anything about California...other than it's south of Oregon somewhere. I've heard...). He holds an open house....he works in an office with a smarmy, overbearing co-worker...you know, the normal stuff :)

Anyway, if you've not seen it and like something with probably A LOT of adult humor in it, please rent it. And FIVE MINUTES in, you'll witness a Realtor's Ethics Code violation occur.

Already seen it? Do you remember the scene? Please, do tell! (*Hint: It's not long, drawn out scene. Just enough to get you fined/censured if caught!)

With the tax credit creating more interest from first time home buyers, I have been fielding questions regarding how to claim the credit. I figured that you might be getting the same type of questions, so I wanted to forward this information from the IRS which I hope will be helpful to you. Your clients can amend their taxes the day after closing and back date the credit to Dec 31^st on their 2008 returns.

Taxpayers who need to make a change or adjustment on a return they already filed can do so by filing an amended return. Here are the top 10 things every taxpayer should know about amending their federal tax return.

1. Taxpayers needing to amend their return use Form 1040X, Amended U.S. Individual Income Tax Return.

2. Taxpayers can use Form 1040X to correct previously filed Forms 1040, 1040A or 1040EZ. The 1040X can also be used to correct a return filed electronically.

3. Taxpayers should file an amended return if they discover any of the following items were reported incorrectly: filing status, dependents, total income, deductions or credits.

4. Generally, you do not need to file an amended return for math errors as the IRS will be able to make the correction for you.

5. You also do not usually need to file an amended return because you forgot to include forms - such as W-2s or schedules - when you filed; the IRS normally requests those forms from you.

6. Be sure to enter the year of the return you are amending at the top of Form 1040X. Generally, you must file Form 1040X within three years from the date you filed your original return or within two years from the date you paid the tax, whichever is later.

7. If you are amending more than one tax return, prepare a 1040X for each return and mail them in separate envelopes to the IRS processing center for the area in which you live. The 1040X instructions list the addresses for the centers.

8. If the changes involve another schedule or form, attach it to the 1040X.

9. If you are filing to claim an additional refund, wait until you have received your original refund before filing Form 1040X. You may cash that check while waiting for any additional refund.

10. If you owe additional tax for 2008, you should file Form 1040X and pay the tax as soon as possible to limit interest and penalty charges. Interest is charged on any tax not paid by the due date of the original return, without regard to extensions.

From http://www.irs.gov/newsroom/article/0,,id=108657,00.html. All necessary forms can be found at this webpage, also.

If you are looking for more info on this program, see: http://www.cars.gov/. Basically, the rules are:

Your vehicle must be less than 25 years old on the trade-in date

I'm all for a greener Earth and any program that helps get vehicles with poor gas mileage off the road is worthy of at least an "at-a-boy". As usual, similar to the Obama administration's other stimulus programs, I'd like to know where the $1 Billion Dollar funding is really coming from. Are we just printing more moolah, or taking services away from the elderly?