Last week I had the opportunity to view the Rivers Condominium project in downtown Salem on Front Street. The listing agent, James Hauge, gave me a tour of the development. The pictures below were taking via my iPhone from inside a few units and atop the roof.
Downtown Salem has several commercial/residential mixed use projects currently under development. It’s great to see the focus on the core of our beautiful city.
The Rivers offer an untouchable view of the Coastal Range to the West and the Cascade Range to the East. The project is located across the street from the Water Front Park downtown. The best part about the central location is the quick two block walk to Venti’s Cafe.
Today the US Senate advances the new Stimulus Bill which includes an increase in the current home buyer tax credit. Currently a home buyer purchasing a home from April 2008 to July 2009 may be entitled to a tax credit up to $7,500. Currently the credit is to be paid back in increments of $500 each year thereafter. The new Stimulus Bill proposes an actual tax credit of 10% of the sales price with a maximum of $15,000. This provision may rid of the requirement to repay the credit, making it a true benefit for the home buyer.
In the article Senate Advances Tax Breaks for Homebuyers, Senator Johnny Isakson said,
“We do have a history in this country with housing and it goes back to the crash of 1974, which actually in terms of inventory and price declines was comparable to what’s happening now”.
“Within one year of the inception of that tax credit, two-thirds of the available inventory that was on the market was gone. The market moved back to a balanced inventory, values stabilized and things became very healthy. The only reason I know all of that is I was selling houses in 1974, that’s what I was doing to feed my family and make a living.”
The Stimulus Bill that was passed by the house last week will be reconciled with the Bill passed today and may have a final approval as early as Thursday February 5th.
Stay tuned for more information regarding this tax break. Rates are still great and inventory is beginning to move again!
I mentioned in my post on Friday that the report for US existing home sales came in higher than expected at a gain of 5.5% over 2007. The number is encouraging considering the current state of the economy. According to Willamette Valley MLS, local home sales prices are showing a small decrease of 2.5% from 2007. With a gain in home sales and a small decrease in value, the numbers show that people are beginning to take advantage of the opportunity at hand.
With the financial markets trying to find some direction and the government’s intervention into those markets, we have obviously entered into an economically unstable time. Although times like these make it easy to point out the obstacles for each of us, I think it is more important to find the opportunities.
We are fortunate to live in the Willamette Valley where home sales didn’t appreciate at too abnormal of a pace. We are still greatly affected by the downturn of the real estate and mortgage market, but the recovery will be much less painful than those in areas where values were ridiculously abnormal. Opportunity is knocking for first time home buyers or those looking to start an investment portfolio. Although, it is not the best time to think about upgrading your home (simply because you won’t maximize your investment on your current residence), it has never been a better time to buy your first home or investment property.
Many have the excuse that financing is not available, however, that can be overcome with education and planning by a knowledgeable resource. With a plethora of homes currently on the market in the Willamette Valley, values are competitive and sellers are motivated. New construction is also an area of opportunity. Many large builders in the Salem area put their efforts into 50+ unit subdivisions. Unfortunately, much of the commercial financing used for construction is longer available. Builders too are motivated, making yet another opportunity for someone looking to purchase.
If you want to discuss opportunities that may be at your finger tips please don’t hesitate to call or email conrad@conradventi.com. Don’t forget that opportunities are never lost…someone will take the ones you miss!
The real estate market across the country has had so much negative media lately that it is rare to hear anything positive. With depreciation of home values at the top of the list it is hard to know how to have perspective on the information fed to us daily. The Salem housing market obviously benefited from the housing boom in recent years – seeing double digit appreciation. Fortunately, the appreciation numbers were not too abnormal and now the benefit shines through the negative attention towards the market.
I read in an article today at www.housingpredictor.com that Salem, Oregon is the 2ndhottest housing market in the US. Housingpredictor.com places Salem in the 2nd position for forecasted appreciation in 2008 at 4.7%.
Although we’ve definitely noticed a slow down in real estate sales in 2008, it is important to keep the news we hear in perspective. Now is a great time if you’re looking to purchase your first home or an investment property!
I had an interesting conversation with one of my family members today regarding current state of available mortgages. Dino Venti owner of Venti’s Cafe in downtown Salem has been building his loyal clientel for nearly 13 years. When you step into Venti’s you feel a sense of community among the regulars – it definitely has that “Cheers” type of atmosphere. Having the face to face contact with customers nearly every day for the past 13 years, Dino has established many friends and acquaintances in the Willamette Valley.
He mentioned to me this evening as I was picking up my Boulder Bowl and Teriyaki Chicken for dinner, that he had a client tell him today that there are no mortgages available for people who have a credit score less than 750.
We’ve all heard, seen, or read about the housing industry and the changes in lending from banks. As I mentioned in my post titled “Yes, You Can Still Get A Loan!” there are plenty of loans originating in these harsh economic times.
Communication is a key element in every aspect of our lives. The media’s job is to communicate the message to the people. How that message is interpreted by the people can vary on many levels. In times when there is a massive amount of information flowing from every source of media imaginable, it is vital to understand where you stand in the midst of the changes. The lack of financial education in our country has been prevalent for so long that we’re now dealing with the consequences. Education is the tool that must be utilized to understand the meaning of what we hear, see, and read.
If you have questions about how the changes in our banking, mortgage, and real estate industries affect you, please don’t hesitate to ask!
A couple of weeks ago I mentioned the FHA minimum down payment would be changed to 3.5% effective October 1, 2008. The Department of Housing and Urban Development (HUD) has postponed the change to FHA minimum down payment until January 1, 2009. So for now, the down payment remains at 3%.
As the banking system has undergone some obvious changes in 2008, FHA has become one of the most chosen products for clients looking for a low down payment. The VA home loan and USDA rural housing are the two programs still offering 100% financing.
