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Mt Hood Real Estate Market Snapshot: March 30, 2014

Homes, Cabins & Condominiums: Mt Hood Area (153) per the Regional Multiple Listing Service (RMLS) which includes homes and cabins in Welches, NewMHRElogo_sredhood2Rhododendron , Brightwood, and Government Camp Oregon.

  • 91 Current Active Residential Home Listings which includes Single Family Homes, Cabins, & Condos. This is heading towards a seasonal low for inventory.  The Median List Price is $235,000.  There are 3 Bank Owned Listings, and 2 Short Sale Active listings
  • 24 Pending Home & Cabins are currently under contract.
  • 2 Short Sale Pending Residential Home Listings.
  • 41 Homes and Cabins have closed so far in 2014. Only 1 sale was a bank owned property & 1 a Short Sale.  The median Sale Price to date is $237,500.

Lots and Acreage: Mt Hood Area (153)

  •  44 Active Undeveloped land listings in the Villages of Mt Hood.
  • 1 Pending Undeveloped land property is currently under contract.
  • 2 Undeveloped land properties have sold so far in 2014.

Psst: How is 2014 measuring against 2013? Take a look at the Market Snapshots for March 22, 2013 for an in-depth review of the Mt Hood Real Estate marketplace.

February 2014 Mt Hood Real Estate Closed Home Sales

Here are the February 2014  Mt Hood Real Estate closed home sales for the Villages of Mt Hood area from Alder Creek to Government Camp, Oregon including the communities of Rhododendron, Welches and Brightwood.

Feb2014HomeClosings

  • Three of the closings were on Waterfront sites in the Mt Hood area, two on private land.
  • There were NO Short Sales and NO Bank Owned home closing!
  • Also, there were three Forest Service Cabin on a Forest Service Special Use Permit
  • Plus there were three Government Camp proper home/cabin closings

Market Snapshot: February 23, 2014

NewMHRElogo_sredhood2Homes, Cabins & Condominiums: Mt Hood Area (153) per the Regional Multiple Listing Service (RMLS) which includes homes and cabins in Welches, Rhododendron , Brightwood, and Government Camp Oregon.

  • 85 Current Active Residential Home Listings which includes Single Family Homes, Cabins, & Condos. This is heading towards a seasonal low for inventory.
  • 22 Pending Home & Cabins are currently under contract.
  • 2 Short Sale Pending Residential Home Listings.
  • 20 Homes and Cabins have closed so far in 2014. Only 1 sale was a bank owned property.

Lots and Acreage: Mt Hood Area (153)

  • 45 Active Undeveloped land listings in the Villages of Mt Hood.
  • 1 Pending Undeveloped land property is currently under contract.
  • 2 Undeveloped land properties have sold so far in 2014.

Psst: Take a look at the Market Snapshots for January 2013 & March 2013 for an in-depth review of the Mt Hood Real Estate marketplace.

All Dollars Not Equal: Division of Assets

The division of assets between the spouses is an important decision to finalize a divorce.  The exercise looks relatively simple: assign a value for each of the assets and divide them based on a mutual agreement between the parties.

The challenge is to make a fair division which requires an analysis to determine their value after they’rezaby- converted to cash.

Assume the two major assets in the example, a retirement account and the equity in the home, are equal at $100,000.  It might seem logical to give the home to one spouse and the retirement account to the other.  However, if the person receiving the home decides to sell the home, the net proceeds could be considerably less than the spouse receiving the retirement account.

Let’s pretend that the spouse with the home negotiates a lower price of $475,000 due to current market conditions.  The former couple had owned the home for many years and refinanced several times, pulling money out of the home each time.  When the remaining spouse sells the home, there could be a considerable gain that was never recognized.

As a single person, he or she is now only entitled to $250,000 exclusion and would have to pay tax on the excess gain.  After paying the sales costs, outstanding mortgage balance and the taxes due on the gain, the remaining spouse would have net proceeds of $24,375 compared to the $100,000 that the former spouse received in the settlement.

The message in an example like this is to examine and consider the potential expenses that may be involved with converting the assets to cash after the divorce. Obviously, expert tax advice is valuable in making such decisions.  divorce.png

What Can You Expect or The Cost of Waiting to Buy

The two most frequently quoted constants in life are death and taxes.  Two more things would-be homeowners can expect in the near future are increases in mortgage rates and housing prices.What can you Expect

Interest rates have been kept artificially low for several years by the Federal Reserve in an effort to strengthen the economy. Policy is shifting to allow them to seek their own natural level and that will surely result in higher mortgage rates.  Rates on 30 year fixed mortgages are up over 1% from January, 2013.

Foreclosure activity is down, new home starts are up and prices have been increasing in most markets for two years.  Most experts agree that the cost of housing is going up.

If the price were to go up by 2% and the mortgage rate by 1% while a buyer is “sitting on the fence” making a decision, the payment would go up by almost $175.00 each and every month for the term of the mortgage.  Even if a person can afford to make the higher payments, what could they have done with that extra $175.00 a month?  Buy furniture?  Car payment?  Principal reduction?  Retirement contribution?  Save for a rainy day?

Click here to determine what the cost of waiting to buy will be using your price home.

What can you expect_2

 

By |February 17th, 2014|Borrowers|0 Comments|

Refinance to Remove a Person

Most people are familiar with the various reasons a homeowner refinances their home which generally result in two major benefits: saving interest and building equity.

There is however another reason to refinance which may not be as common which is tozaby11-18-13 remove a person from the loan. In the case of a divorce, when one party wants to keep the home and the other party wants their equity out of the home, it is possible for the remaining party to refinance the home. If the equity is sufficient to justify it and the remaining owner can qualify for the new loan, the refinance can provide the proceeds to buy out the other spouse.

Refinancing to remove a person from the loan could also involve a situation where two or more heirs jointly own a property and have differing opinions on when to sell. The same situation could apply to a rental property with multiple owners and the refinance would provide a way to buy out a partner.

Sometimes, it’s not about taking cash out of the home to buy out the other party. If a person’s name is on the mortgage, they’re responsible if it goes to default. One party may be willing to deed the home to the other party but it doesn’t necessarily relieve them of the liability of the mortgage they originated.

Many times, once a person has made their mind to move on, they’ll take the fastest and easiest way out. Removing a person from the deed or a mortgage is a reason to consider obtaining legal advice to protect your interests. Refinance Analysis calculator.

Reasons to Refinance

1. Lower the rate
2. Shorten the term
3. Take cash out of the equity
4. Combine loans
5. Remove a person from a loan

By |February 14th, 2014|Borrowers|1 Comment|

Upward Market Trend Line for Mt Hood Real Estate Continues

If you characterize the Mt Hood real estate market of 2012 as crawling out of the big hole, then all indicators for 2013 is the upward trend in the Villages of Mt Hood continues. That is indeed welcome news.
I took a look again at 3 parameters: Sales Volume, Median Sale Price and the Number of Closed Sales. So now, what other insights can be drawn from these simple graphs on market trends when it comes to buying or selling “on the Mountain”?

03-13VolumeTrend_3

When it comes to volume, the Mt Hood real estate market is back to where sales volume was 10 years ago.

03-13MedSalePrTrend_3

2013 Median Sales Price is approaching 2005 and 2009 levels. In 2005 Sales Volume had peaked and in 2009 the real estate market on the mountain was still in “free-fall” and the median sale price had not yet bottomed out. That didn’t happen until 2011 when volume and medium sale price both tanked.

03-13#SalesYr_2

It is pretty clear how flat the market was with respect to the number of sales from 2009 to 2011 which also coin sides with the march downward in the median sale price and annual sales volume.

So, what is the big takeaway for a buyer trying to make a good decision when it comes to making a purchase? Sitting on the fence appears to be costing you money if the upward market trend line continues and expands throughout more price points.

2013 Market Snapshot for Mt Hood Real Estate

2013VolumebyQuarter

In 2013 there were 158 Closed home sales in the Villages of Mt Hood from Alder Creek on the west to Government Camp to the east and also including the towns of Welches, Brightwood and Rhododendron, Oregon.  2013 closed sales were up from the 140 closed transactions in 2012 or a 13% increase in the number of sales for 2013 . Volume is a more impressive increase for 2013. Total Residential Sales volume for the year was up by approximately 28% over 2012.

Here are some additional Mt Hood Real Estate Market factoids:

  • The Median Sale price rose in 2013 to $201,750.  It was up from $172,000 for the 2012 Median Sale Price for Homes, Cabins and Condos.
  • The total number of Distressed Sales, either a Bank Owned or Short Sale transaction,  in the Villages of Mt Hood fell in 2013 to 14% of the total Number of closed sales or 9% of the total volume.  In 2012,  25% of the transactions were “Distressed” sales.  I predict these distressed sales will continue to dribble into the marketplace creating what is being called a “New Normal”. The new category of Judicial Forecloses for the state of Oregon may impact the marketplace.  Time will tell.
  • Forest Service cabins accounted to approximately 16% of the market in 2013. This is not much of a change from 2012.  The Median Sale price was  $115,000 in 2013 and in 2012 it was $148,500 . This was a 23% DROP in 2013, the only niche Mt Hood Market in 2013 to have experienced a decline. The reason for this decline was a large number of sales at the lower price points due to necessary infrastructure improvements ie. septic system installation that the buyers completed.
  • Waterfront properties account for a significant number of transactions each year in the Villages of Mt Hood. In 2013, 37% of the transactions were on streams, creeks, rivers or lakes.
  • There was an Increase in Government Camp condo volume in 2013 over 2012 by a walloping 101% .  Fewer distressed sales and increase in the High End Luxury condos sales account for the percentage increase.

Happy House Hunting in 2014!

January 2014 Mt Hood Real Estate Closed Home Sales

Here are the closed Sales for the Villages of Mt Hood area from Alder Creek to Government Camp, Oregon including the communities of Rhododendron, Welches and Brightwood.

Jan2014HomeClosings

Three of the closings were on Waterfront sites in the Mt Hood area, 1 was a Short Sale and there were NO REO properties for Mt Hood real estate in January! Also there was one Forest Service Cabin on a Forest Service Special Use Permit and one Condo in Welches, Oregon.

The Homeowner Flood Insurance Affordability Act, S. 1926 Passes Vote in the Senate!

2-6-Flood

Mt Hood has many rivers and streams that are susceptible to Flooding and the recent enactment of the Biggert-Waters Act that went into effect last October 1, 2012 has left many not knowing what the future holds. “On January 30, 2014, the US Senate passed S.1926, the Homeowner Flood Insurance Affordability Act, on a vote of 67-32. Support for this bill included several Republican Senators from the coastal states of Louisiana, Mississippi, Georgia and Florida, suggesting that Congress may yet enact additional modifications to the flood insurance program this year. Action in the House is not yet assured, but there are indications that the House will consider a modified version of the Senate proposal.” per the Dentons on-line publication, Kara  Baysinger, Gary L. Goldberg, Mary Pat Lawrence and Sander  Lurie contributors.

Also,  the National Association of Realtors (NAR) released this exerpt, “This legislation will help homeowners nationwide who are experiencing financial hardship as a result of extreme flood insurance rates that are the unintended consequence of the Biggert-Waters reforms to the National Flood Insurance Program” ,  per Jenny Werwa for the NAR.

Kudos to both Senator Jeff Merkley and Senator Ron Wyden of Oregon to their yes votes. On the  House of Representatives where we hope gridlock is not their middle name in 2014!