Linda Heinrichs

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I don't know about you, but each time I read about giant bonuses and huge profit margins due to the generosity of our government I seethe as a person and professional. This LA Times article exposes yet another bail out windfall - http://www.latimes.com/business/la-fi-onewest20-2010feb20,0,880625.story

It has been a tough year all the way around. I don't want to begrudge anyone a profit. Even a big profit. But according to one You Tube site the FDIC offered a sweet deal to OneWest Bank which covers investor losses over $2.5 billion. The FDIC adamantly defends their position and the agreement with OneWest. http://budurl.com/p8g6

The real answer is probably somewhere in between, but I do know from my little microcosm of the real estate world here in Portland Oregon, there are real people hurting. Sellers that have lost jobs and are losing their homes. Lenders ignore pleas to modify loans and then sell the loan to another service provider for a fraction of the cost, creating confusion and chaos for the seller to try and redirect their efforts. All without a change in looming foreclosure timelines. The bank doesn’t miss a beat.

And what do you think about the special bailout of 5 states announced by the White House? Again, personally and professionally I look at Arizona, California, Florida and Nevada and think about how many investors and speculators bought rows and rows of homes in these communities that allowed unbridled building. Michigan has its own set of issues so we will leave them alone. Now we are setting up a special fund because they have been so hard hit. How can this be that our government is willing to create and additional $1.5 billion bailout for the people that took higher than normal risks. Many of these same risk takers also received higher than normal rewards before the fallout occurred. Is there anyone out there that thinks this is wrong?

Slowly we are gaining ground by doing the right things. It is a fragile perch that could topple again with the above kinds of actions. Maybe it is time to get involved and demand your representatives be held accountable for their special interest actions. I am not a political person, but I am rapidly approaching the “Mad as Hell” mode with the nonsense going on. It is hard to focus on my true passion of helping people make a move to or from a home to the next phase of their lives with all this extraneous stuff going on.

What’s on your mind? For service with integrity, passion, hard work and client focused services, call Linda Heinrichs today www.portlandmetrohomesforsale.com

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Recent information from the RMLS showed a slight uptick in the housing market in February 2009 when compared to the previous month. This brings a much needed sigh of relief after the particularly barren January. But we still have a lot of houses to sell. Inventory dropped from 19.2 months of backlog to 16.6 and based on the numbers it is apparent the drop was not all due to houses being sold. Closed sales year over year, February 2009 to February 2008 fell 35.8% and the average sales price is down 12.9%. Average days on market continue to trend upward and most folks can plan on a solid 4-6 months to sell their home. Longer in higher priced markets and condos and shorter in highly desirable close in neighborhoods. Pricing is king and the key element in gaining buyer attention.

One area of concern is our sellers who are getting frustrated when finding themselves in a short situation, which will only get worse with the continued drop in prices. They are genuinally surprised when this happens inspite of upfront education on the market and price points. I have seen this defeat on more then a few occasions with folks just giving up and walking away. These are not people who over-extended, but rather the conservative homeowner that has lived in their home a number of years, perhaps used a line of credit (probably at the urging of a mortgage professional somewhere) for college, medical or remodeling and now finds that they owe a lot more on their home then it is worth. Their $500,000 home is now worth 25% less when they realize they need to make a move. With a $425,000 mortgage, they need to come up with some cash, stay on for at least another 4-5 years to get back to a potential break even or take the plunge now and go. While this normally goes against the grain of most folks, there is the allure of a "get out of jail free card" lurking around the corner. What do you think? Will there be a lot more people walking from homes and mortgages that would not normally fall into this category? I think the answer is yes and thus our hole will continue being dug.

Meanwhile, the powers that be are busy trying to come up with an alternative to the Mark to Market benchmark for valuing assets at our lending institutions, so they will not continue to be plagued by insolvency due to declining values. Does anyone have the answer out there? Would love to hear what you have to say!

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Ok, be honest, you hear it on the news, you read it in the papers, it's everywhere . . . the real estate market is in the tank, the sky is falling. Houses in foreclosure, prices coming down, it just is not pretty.

But, what is the truth about the Portland Market which is the second best in the nation. Portland is hot, folks are moving here for many reasons, but mostly because it is thriving. Good jobs, fantastic lifestyle & affordable living, which includes homes. Our little city is flat out bucking the trends which is a consistent theme for Oregonians.

Yes, there is back news, but if you are a buyer it is time to jump for joy. Interest rates are excellent (unlike 1982 when I bought my first house at 16% interest), there are lots of choices and you don't have to have a spiffy resume, photos of the family (including a borrowed golden retriever) and stand on your head to get the house of your dreams. All you need is a tenacious Buyers Representative, like myself:)

Oh, you say that you want to make a good investment - buy low, sell high. Again, jump for joy. Prices have dropped, there are deals to be had and the truth of the matter is all the experts (we hear and see them in the media everyday) can't seem to get the "timing" thing down. The problem with trying to time any market is that most folks do not realize the bottom or the top have hit until after the market has changed directions. Yes, some people get lucky and hit it at the very bottom and very top - we all hear those stories.

However, most of us average investors or homeowners make our money the old fashioned way over the long term. Meanwhile, think about the real investment you are making when buying a home. An investment in your city & neighborhood, an investment in a secure lifestyle, perhaps an investment in your children & their education, an investment in your comfort, the list goes on and on. And while all these investments are paying off on a daily basis, you are simultaneously making a financial investment by building equity through regular monthly payments, tax advantages & over time prices that go up as we deplete our finite resource of land.

Don't let the doom & gloom of the media set your sail. Portland is a great place to live today and will be a great place to live tomorrow. So now is is the time to buy your little slice of Rose City heaven.

If you would like more information on any Portland neighborhoods, contact Linda Heinrichs at lindaheinrichs@equitygroup.com