Are you looking for a bargain?

Don't wait too long!

What do you hear in the news about the real estate market? Are you hearing that we're in a declining market? That home prices are falling? Do you think by waiting you'll be able to find a better deal in that new home you want to buy? Consider this...

The best way to determine where we're going is to look at where we've been. I did a comparison of our market prices that I posted a few days ago with the same period from last year. You may be surprised at the result. Keep in mind as you review these numbers that the market today is a reflection of the decline that has happened in our real estate market here - I won't deny that it has declined. However, the decline we have here is in the rate of growth as you will soon see.

We'll take a look at Corvallis first. For the three month period that ended in October 2006, 178 homes sold at an average price of $293,483. The average sold price per square foot was $157.05 and it took an average of 95 days for a home to sell. Compare that to where we are today. For the three month period ending October this year, we had 135 homes sell at an average price of $279,439. Now, you're probably saying "see, the price of a home has gone down, how can you say the decline is only in the rate of growth?". Let me show you the current sold cost per square foot: $165.69!

In my judgement, what this shows is that a higher number of less expensive homes are selling in Corvallis, yet at a higher price than an equivalent home from a year ago. If you were looking at an "average" 1800 square foot home last year, that home would cost you roughly $282,690. Today that same home would cost $298,242, or $15,552 more! What does that mean in dollars out of pocket? Interest rates a year ago were about 6%. Today they are around 6%. (and yes, there is still plenty of mortgage money available!) Last year when you bought that house with 10% down, your monthly interest and principle payment would be $1,525.38. Today, that same home will cost you $1,609,30 - $83.92 more per month - that's a lot of groceries!

If you believe interest rates will decline to the same levels they were a year ago, and that home prices will decline to where they were a year ago, or less - then wait to buy. All indications show the opposite is true. Interest rates may decline somewhat in the next few months as the fed attempts to shore up the falling housing market elsewhere in the country, but as the prime rate continues to go down, other factors in the economy will tend to prevent mortgage rates from falling too much - new regulations in mortgage lending for one.

Bottom line is, if you're thinking of buying a home, don't wait. Money is available at very good rates, and the home selection in all areas of Linn & Benton counties remains very high. Call me to help you get started! 541-231-2388.

Now for a brief look at the surrounding towns and their changes from last year:
Albany, October 2006

October 2007

247 homes sold, $218,079 avg sold price, $129.00 avg price / SF, 90 DOM

202 homes sold, $246,176 avg sold price, $139.48 avg price / SF, 113.8 DOM

Lebanon, October 2006

October 2007

85 homes sold, $156,101 avg sold price, $120.54 avg price / SF, 99 DOM

48 homes sold, $172,576 avg sold price, $122.09 avg price / SF, 111.7 DOM

Philomath, October 2006

October 2007

16 homes sold, $272,738 avg sold price, $149.46 avg price / SF, 70 DOM

10 homes sold, $288,380 avg sold price, $148.75 avg price / SF, 92 DOM

Questions?

Comments?

Let me hear from you! Chuck@Corvallis-Homes-for-Sale.com

Until next time...

How to Buy a Home, Part 1

One of my primary intentions for this log is to help you, my reader, become more educated about real estate, and through that education, make home ownership a positive experience for you. For today's message, I thought I'd go through some of the basic steps involved in the purchase of a home.

Where to start? As a real estate professional, my most important, and most difficult job when working with buyers is finding out what you want in a home. I have never "sold" anyone a home. What I do is help you buy the home you want, and my job is then to "sell" your offer to the current owner.

So, what's your job in this? When you begin looking for a home, think about everything you want in a home. Start by looking at your current home - what do you like about where you live? Do you like the way the space is layed out? Do you like the size of the bedrooms? Do you like the convenience of the entry from the garage into the kitchen area? Do you like your yard?

Once you've listed everything you like about your current home, then start thinking about everything you don't like. Is the kitchen too small? Are you constantly working around who gets to use the bathroom when? Do you have stuff piled all over because there's not enough space to store it out of the way between seasons?

Now you should have two lists - one of your present likes and one of your present dislikes. The likes are easy. Just add those to your list of things you want in your new home. The dislikes can be just as easy - for everything you've written that you don't like, switch it around. If you kitchen is too small, write on your wish list that you want a bigger kitchen. Picture it in your mind. Get a real good image of the home you want to be in.

Now, come talk to me. We'll take your wish list, plug it into the system and see how many homes match what you want. We can look at as many homes as you want, in as many locations as you'd care to see and never have to leave the office. After we've narrowed down the list of homes either by getting more specific on your desired location, the size of the home, the number of bedrooms, whatever... we can look at the likely price is of your desired home and start to talk about your budget.

We'll cover that topic next, so get your list together and be clear on what you want.

Questions?
Comments?
Let me hear from you! Chuck@Corvallis-Homes-for-Sale.com

Until next time...

Market Stats - Ending October 2007

The following chart shows the market activity in various cities within Linn & Benton counties. Click on the image to enlarge and be able to read it.

This chart shows the sold activity for the past three months ending October 31st this year. As I mentioned in my post yesterday, we have a lot of homes available for sale. To turn that statement into solid numbers, I just took a look at the number of residential homes available in these same cities, and the result was astounding. Keep in mind that these are all the homes that no one as yet has decided to purchase - the homes you could go out today and see. The total for all these cities is 1018 homes! That total breaks down as follows...

Albany - 431 homes averaging $266,296 and 115.8 days on the market.

Brownsville - 12 homes averaging $268,490 and 142.5 days on the market.

Corvallis - 239 homes averaging $353,308 and 89.0 days on the market.

Lebanon - 163 homes averaging $221,412 and 96.3 days on the market.

Philomath - 62 homes averaging $308,034 and 103.7 days on the market.

Sweet Home - 111 homes averaging $198,717 and 104.0 days on the market.

Even though the number of available homes is up significantly, you can see from the sold stats that the prices are holding steady. We're not in a declining market here as the media would lead you to believe. We have a strong market with a great selection of homes. Take advantage of it!

Questions?

Comments?

Let me hear from you! Chuck@Corvallis-Homes-for-Sale.com

Until next time...

What if it's a good time to buy?

Today I sat an open house in Albany. Nice house. Well kept. Very clean. Great price. Good location. Nice neighborhood. For three hours I enjoyed the company and conversation of one of my favorite lenders, Michelle Maddux of Mission Hills Mortgage Bankers. Only thing was, nobody else showed up. Granted, it was a gorgeous day today in the mid Willamette valley, and there was that football game on that I'm sure EVERYONE just had to see... Still, I wonder what's keeping people from getting into that first, next or last home - or even going out shopping for a home now?

I realize the media is constantly bombarding people with news that the real estate market is in dire straights - thing is, that's just not true. We have more homes on the market now than I've ever seen in my five years in the business here in Linn/Benton counties. Prices of those homes are remaining fairly stable. In other words, there's not a significant downward trend in home prices either in Corvallis or Albany (the two largest markets here in Linn/Benton). Sure, the prices aren't going up as fast as they were last year, but they haven't started dropping precipitously. There are homes available in all price ranges from entry level "starter" homes all the way up to the million dollar plus dream estates. So, availability is certainly not the issue.

Are you waiting for interest rates to come down? Well, the fact is interest rates are still at historic lows. Sure, rates aren't in the low 5's or high 4's any longer, and they probably never will be again - at least not in anyone's foreseeable future. Interest rates are fantastic - loans are available now for less then 6%, 100% financing is still available, and if you're really strapped for cash, I can help you structure an offer to purchase where the seller will pay most or all of your closing costs for you. All you'll need is available cash for an earnest money deposit, decent credit, earned income and you CAN buy a home!

So, tell me, why wouldn't you buy a home in today's market? Drop me a line at Chuck@Corvallis-Homes-for-Sale.com and give me your thoughts. If you allow it, and I feel the question you ask is remotely relevant to others, I'll post both your question and my response. Help me understand, and I'll help you. It's a win-win for both of us!

Until next time...