Real Estate Information Archive

Blog

Displaying blog entries 231-240 of 1881

Is This a Shifting Market for Mt. Hood Homebuyers?

Wednesday, August 10, 2022
by Liz Warren

Is the Shifting Market a Challenge or an Opportunity for Mt. Hood Homebuyers?

Is the Shifting Market a Challenge or an Opportunity for Homebuyers? | MyKCM
 

If you tried to buy a home during the pandemic, you know the limited supply of homes for sale was a considerable challenge. It created intense bidding wars which drove home prices up as buyers competed with one another to be the winning offer.

But what was once your greatest challenge may now be your greatest opportunity. Today, data shows buyer demand is moderating in the wake of higher mortgage rates. Here are a few reasons why this shift in the housing market is good news for your homebuying plans.

The Challenge

There were many reasons for the limited number of homes on the market during the pandemic, including a history of underbuilding new homes since the market crash in 2008. As the graph below shows, housing supply is well below what the market has seen for most of the past 10 years (see graph below):

Is the Shifting Market a Challenge or an Opportunity for Homebuyers? | MyKCM

The Opportunity

But that graph also shows a trend back up in the right direction this year. That’s because moderating demand is slowing the pace of home sales and that’s one of the reasons housing supply is finally able to grow. For you, that means you’ll have more options to choose from, so it shouldn’t be as difficult to find your next home as it has been recently.

And having more options may also lead to less intense bidding wars. Data from the Realtors Confidence Index from the National Association of Realtors (NAR) shows this trend has already begun. In their recent reports, bidding wars are easing month-over-month (see graph below):

Is the Shifting Market a Challenge or an Opportunity for Homebuyers? | MyKCM

If you’ve been outbid before or you’ve struggled to find a home that meets your needs, breathe a welcome sigh of relief. The big takeaway here is you have more options and less competition today.

Just remember, while easing, data shows multiple-offer scenarios are still happening – they’re just not as intense as they were over the past year. You should still lean on an agent to guide you through the process and help you make your strongest offer up front.

Mt. Hood inventory now sits at 30 available properties. One third of those properties are over $1,000,000. We've seen an increase of Mt. Hood National Forest inventory up to five available cabins!

Bottom Line

If you’re still looking to make a move, it may be time to pick your home search back up today. Let’s connect to kick off the home buying process.

Add Comment

Fire Restrictions on the Mt. Hood National Forest

Monday, August 8, 2022
by Liz Warren
 
Mt. Hood National Forest
Forest Service News Release
 
Fire Restrictions on Mt. Hood National Forest
 
 
Due to dry and hot conditions, campfires are prohibited across the Mt. Hood National Forest, beginning Wednesday, August 10, 2022.
 
All campfires, charcoal or briquette fires, pellet fires, or any other open fires are prohibited under a Forest Order, including in developed campgrounds. Portable cooking stoves, lanterns, and heating devices using liquefied or bottled fuel, such as propane, are still allowed as they can be instantly switched off. Additionally, target shooting is temporarily prohibited because of the risk of wildfire.
 
While the Forest enjoyed a wet and cool spring, dry July and August conditions have resulted in low moisture levels in vegetation, increasing the risk of wildfire. With the current dry and warm long-range forecast, any wildfire start poses a greater threat to firefighter safety, public safety, and personal property. 
 
“The Forest has recently seen an uptick in wildfires, many of which are human caused,” said Dirk Shupe, Fire Management Staff Officer for the Mt. Hood National Forest. “With a dry August ahead, we want to limit the unnecessary risk caused by abandoned or escaped campfires to our local communities, and the recreating public.”
 
More wildfire information can be found at: https://www.fs.usda.gov/main/mthood/fire
 
For more information about the local and regional fire outlook, visit: https://gacc.nifc.gov/nwcc/predict/outlook.aspx
 
And remember, fireworks are always prohibited on national forests.

 

Add Comment

Zig Zag Riverfront Four Bedroom Cabin

Sunday, August 7, 2022
by Liz Warren

Skiers will love this location which is right on the Zig Zag River and only about five minutes to Government Camp. Tons of room with four bedrooms and two and a half baths to sleep a boat load of people. Wood floors and a cozy fireplace, paned windows, with a large main living area.HUGE deck that looks right over a pristine forest and a short walk down to the river! $425,000

 

Zig Zag Riverfront Cabin on Mt. Hood

       Zig Zag Riverfront Cabin Living room and fireplace    Dining Room of the Zig Zag Riverfront Cabin

       Main Bedroom in the Zig Zag Riverfront Cabin    Zig Zag River

Add Comment

Housing Market Forecast for the Rest of 2022

Friday, August 5, 2022
by Liz Warren

Housing Market Forcast

Add Comment

Three Graphs Showing This Isn't a Housing Bubble

Tuesday, August 2, 2022
by Liz Warren

3 Graphs To Show This Isn’t a Housing Bubble


 

With all the headlines and buzz in the media, some consumers believe the market is in a housing bubble. As the housing market shifts, you may be wondering what’ll happen next. It’s only natural for concerns to creep in that it could be a repeat of what took place in 2008. The good news is, there’s concrete data to show why this is nothing like the last time.

There’s a Shortage of Homes on the Market Today, Not a Surplus

The supply of inventory needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued price appreciation.

For historical context, there were too many homes for sale during the housing crisis (many of which were short sales and foreclosures), and that caused prices to tumble. Today, supply is growing, but there’s still a shortage of inventory available.

The graph below uses data from the National Association of Realtors (NAR) to show how this time compares to the crash. Today, unsold inventory sits at just a 3.0-months’ supply at the current sales pace.

3 Graphs To Show This Isn’t a Housing Bubble | MyKCM

One of the reasons inventory is still low is because of sustained underbuilding. When you couple that with ongoing buyer demand as millennials age into their peak homebuying years, it continues to put upward pressure on home prices. That limited supply compared to buyer demand is why experts forecast home prices won’t fall this time.

Mortgage Standards Were Much More Relaxed During the Crash

During the lead-up to the housing crisis, it was much easier to get a home loan than it is today. The graph below showcases data on the Mortgage Credit Availability Index (MCAI) from the Mortgage Bankers Association (MBA). The higher the number, the easier it is to get a mortgage.

3 Graphs To Show This Isn’t a Housing Bubble | MyKCM

Running up to 2006, banks were creating artificial demand by lowering lending standards and making it easy for just about anyone to qualify for a home loan or refinance their current home. Back then, lending institutions took on much greater risk in both the person and the mortgage products offered. That led to mass defaults, foreclosures, and falling prices.

Today, things are different, and purchasers face much higher standards from mortgage companies. Mark Fleming, Chief Economist at First American, says:

“Credit standards tightened in recent months due to increasing economic uncertainty and monetary policy tightening.” 

Stricter standards, like there are today, help prevent a risk of a rash of foreclosures like there was last time.

The Foreclosure Volume Is Nothing Like It Was During the Crash

The most obvious difference is the number of homeowners that were facing foreclosure after the housing bubble burst. Foreclosure activity has been on the way down since the crash because buyers today are more qualified and less likely to default on their loans. The graph below uses data from ATTOM Data Solutions to help tell the story:

3 Graphs To Show This Isn’t a Housing Bubble | MyKCM

In addition, homeowners today are equity rich, not tapped out. In the run-up to the housing bubble, some homeowners were using their homes as personal ATMs. Many immediately withdrew their equity once it built up. When home values began to fall, some homeowners found themselves in a negative equity situation where the amount they owed on their mortgage was greater than the value of their home. Some of those households decided to walk away from their homes, and that led to a wave of distressed property listings (foreclosures and short sales), which sold at considerable discounts that lowered the value of other homes in the area.

Today, prices have risen nicely over the last few years, and that’s given homeowners an equity boost. According to Black Knight:

“In total, mortgage holders gained $2.8 trillion in tappable equity over the past 12 months – a 34% increase that equates to more than $207,000 in equity available per borrower. . . .”

With the average home equity now standing at $207,000, homeowners are in a completely different position this time.

Bottom Line

If you’re worried we’re making the same mistakes that led to the housing crash, the graphs above should help alleviate your concerns. Concrete data and expert insights clearly show why this is nothing like the last time.

Add Comment

Let's Talk Recessions

Monday, August 1, 2022
by Liz Warren

Mortgage Rates and Recessions

Info on Mortgage Rates and Recessions

Recession Doesn't Equal Housing Crisis

Add Comment

Knotty Pine Camp Creek Cabin in Government Camp

Sunday, July 31, 2022
by Liz Warren

If you're a skier, this is the spot for you! Nestled among the trees in a pristine forest right above Camp Creek is this knotty pine charmer in the Mt. Hood National Forest. It's only about five minutes to the slopes so no more getting up at 5 AM on weekends!

Two lofts above the living room with high vaulted ceilings, wood floors, paned windows and a cozy kitchen and dining room area. Steps to the deck that over looks the creek there's also an old fashioned swing to enjoy. The sellers even have an original Timberline ski chair in the living room. 

A small fee and you'll be a part of a plowed road for easy access when the snow gets deep! $374,000

Camp Creek Cabin in the Mt. Hood National Forest

Knotty Pine Cabin with Wood Floors

Camp Creek from Cabin deck

Add Comment

Real Estate Fact and Fiction

Friday, July 29, 2022
by Liz Warren

A Real Estate Professional Helps You Separate Fact from Fiction

A Real Estate Professional Helps You Separate Fact from Fiction | MyKCM
 

If you’re following the news, chances are you’ve seen or heard some headlines about the housing market that don’t give the full picture. The real estate market is shifting, and when that happens, it can be hard to separate fact from fiction. That’s where a trusted real estate professional comes in. They can help debunk the headlines so you can really understand today’s market and what it means for you.

Here are three common housing market myths you might be hearing, along with the expert analysis that provides better context.

Myth 1: Home Prices Are Going To Fall

One piece of fiction many buyers may have seen or heard is that home prices are going to crash. That’s because headlines often use similar, but different, terms to describe what’s happening with prices. A few you might be seeing right now include:

  • Appreciation, or an increase in home prices.
  • Depreciation, or a decrease in home prices.
  • And deceleration, which is an increase in home prices, but at a slower pace.

The fact is, experts aren’t calling for a decrease in prices. Instead, they forecast appreciation will continue, just at a decelerated pace. That means home prices will continue rising and won’t fall. Selma Hepp, Deputy Chief Economist at CoreLogic, explains:

“. . . higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”

Myth 2: The Housing Market Is in a Correction

Another common myth is that the housing market is in a correction. Again, that’s not the case. Here’s why. According to Forbes:

“A correction is a sustained decline in the value of a market index or the price of an individual asset. A correction is generally agreed to be a 10% to 20% drop in value from a recent peak.”

As mentioned above, home prices are still appreciating, and experts project that will continue, just at a slower pace. That means the housing market isn’t in a correction because prices aren’t falling. It’s just moderating compared to the last two years, which were record-breaking in nearly every way.

Myth 3: The Housing Market Is Going To Crash

Some headlines are generating worry that the housing market is a bubble ready to burst. But experts say today is nothing like 2008. One of the reasons why is because lending standards are very different today. Logan Mohtashami, Lead Analyst for HousingWire, explains:

“As recession talk becomes more prevalent, some people are concerned that mortgage credit lending will get much tighter. This typically happens in a recession, however, the notion that credit lending in America will collapse as it did from 2005 to 2008 couldn’t be more incorrect, as we haven’t had a credit boom in the period between 2008-2022.”

During the last housing bubble, it was much easier to get a mortgage than it is today. Since then, lending standards have tightened significantly, and purchasers who acquired a mortgage over the last decade are much more qualified than they were in the years leading up to the crash.

Bottom Line

No matter what you’re hearing about the housing market, let’s connect. That way, you’ll have a knowledgeable authority on your side that knows the ins and outs of the market, including current trends, historical context, and so much more.

Add Comment

Three Reasons To Buy a Home on Mt. Hood in Today’s Shifting Market

Friday, July 29, 2022
by Liz Warren

 

Three Reasons To Buy a Home in Today’s Shifting Market [INFOGRAPHIC] | MyKCM
 

Some Highlights

  • The housing market is moving away from the frenzy of the past year and it’s opening doors for you if you’re thinking about buying a home.
  • Housing inventory is increasing, which means more options for your search. Plus, the intensity of bidding wars may ease as buyer demand moderates, leading to fewer homes selling above asking price.
  • If you’re ready to buy a home, now may be the moment you’ve been waiting for. Let’s connect to start the homebuying process today.
Add Comment

How to Beat Inflation with Homeownership on Mt. Hood

Thursday, July 28, 2022
by Liz Warren

              

Add Comment

Displaying blog entries 231-240 of 1881

Syndication

Categories

Archives