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Mt. Hood Real Estate Blog

Liz Warren

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Displaying blog entries 1801-1810 of 1876

What about those JUMBO loans?

Monday, April 7, 2008
by Liz Warren

I read a recent article about Jumbo loans in California.  The temporary raised loan amount rate in the California market is $730,000 vs. $417,000 for our area. Lenders are reporting that it hasn't exactly helped the situation because rates on these loans are at least a point higher than stated rates on a 30 year fixed. In other words, if the rate quote is 6% for a 30 year fixed, a JUMBO loan, one over $417,000 locally would be around 7% and possibly more. Jumbo loans have had stricter qualifying conditions and good credit is a must.

These loans are sold to pensions funds and other secondary markets who are spooked from the sub-prime disaster. Therefore they are requiring tougher standards for the buyer qualification AND a higher interest rate. Well, the Californians are not rushing in to get these loans for new home purchases nor refinancing as the feds thought they would who raised the temporary limits to help things "move along".

We have seen the impact here in our local market from Government Camp to Welches and Rhododendron. The market above $500,000 has slowed substantially.  There have been three sales in the past seven months in the over 500K range for single family homes.

The Grand Lodges Condos in Government Camp are now closing and should produce several sales substantially over the barrier.

Agents in California feel it will take a year or so for Jumbo rates to come down. We'll see more movement, and sales when they do but until then, buyers will need great credit to even qualify for these Jumbo loans and count on at least 1% higher interest rates than the sub 417K conventional loans.

 

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2007-Second Home and Investor Numbers Will Surprise You

Tuesday, April 1, 2008
by Liz Warren

This is a real eye opener considering 2007 reports on the market! Second home and investment buyers purchased about one third of properties sold in 2007 according to the National Association of Realtors. Vacation home sales only declined two percent from 2006 to 2007. (12% of total sales in 2007).

Despite the fact that we are in a credit crunch and in tough economic times, second homes are elective purchases. Locally we know that at least a third of homeowners in Portland have no mortgage. We also know that Oregon ranks 47th in the subprime problem-which means there is extra money available for purchasing second homes.

Actually, it’s a bonanza of an opportunity for buyers with super low interest rates, softening prices and increased inventory. Yes, primary home sales have softened the most but second home sales have not seen the declines locally that many media outlets have declared.

Believe it or not 28% of second home buyers paid cash for their purchase. Many second home  buyers are looking to purchase now knowing their investment will appreciate greatly in the next five to ten years. Portland metro has a particularly great opportunity with a recreational area so close to the city, many weekenders take advantage of the quick one hour drive making the Mt. Hood area a premium destination for a rec home that can be used year round.

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Monday Morning Coffee: Inspiration For Today

Monday, March 31, 2008
by Liz Warren

INSPIRATION FOR TODAY:

"It's OK to build castles in the air . . .
so long as you build a firm foundation under them."  

~ Henry David Thoreau

WANT TO ACCOMPLISH SOMETHING REALLY GREAT?

Ever dream of becoming a U.S. Senator? Want to become an anonymous benefactor of youth programs in your community? Want to rise to the top 1% of your profession? Inspirational artist D. Morgan puts it this way: "The impossible dream . . . isn't!"

So - how do dreams become reality? Once your dream becomes your passion, you can begin building the foundation that will support the eventual structure of your dream. Begin by reading and studying how others have achieved similar dreams.

For politicians-to-be, there are plenty of biographies that reveal the long road to election. For those who aspire to achieve peak earnings, mentors are plentiful. Hang out with, attend courses with, and "shadow" the real stars in your chosen field. Ask how they began their rise, how they blend their work and family, how they attract and retain clients and customers.

In most cases, you will find that the models you choose have also made hard choices. They have first adopted certain principles upon which their decisions are made. Their actions are congruent with those principles. They are not duplicitous in their dealings with others. Their "word is their bond." Their foundational character sets the tone for the structure of their dreams.

Finally, with the foundation in place - they just build. They create plans, they implement strategies to achieve those plans. They understand that their final success does not occur in one fell swoop. It is the result of many footsteps in the direction of their dreams.

So . . . go ahead and dream! Remember - destiny is not a matter of chance . . . it's a matter of choice!

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Local Weather Impacts Mt. Hood Sales

Saturday, March 29, 2008
by Liz Warren

It's snowing again in Welches and for a late March date, this is a bit unusual. The weather has had a rather substantial impact on real estate this year. Access into the forest service cabins in the Mt. Hood National Forest, mainly from Government Camp to Rhododendron, has been limited since the end of December when the snow has been falling at record levels.

These National Forest roads are not plowed, except for Road 10.   Many cabin owners have not been able to use their cabin this winter unless they have a good  four wheel drive with high wheel based capabilities. Of course some owners have skied or snowshoed in. At last count a local towing company said at least 200 vehicles had been pulled off of forest service roads. The snow has reduced listing activity and sales activity for these cabins over the past three months. This has also delayed many owners completing their compliance requirements for the new permit set to start January 1, 2009!

Government Camp has been buried most of the winter. Snow plows have not been able to keep up with the load.. When trekking up for a showing this winter, not only could we hardly identify the cabin from the road, snow up to it's roof nearly, but there was no way we could scale the 20 foot bank that had been snowplowed toward the front of the chalet. I can only imagine some of the damage many of these properties have suffered this year from collapsing chimneys to crushed decks and other snow related issues. Bottom line, if you don't like to shovel snow, don't even think about purchasing in Government Camp.

The lack of accessibility has also hampered the Government Camp sales except for condos.. Under the strict appraisal requirements coming from lenders these days, I doubt a lender would even consider an appraisal until the snow melts further and they can eyeball the property.

Sales statistics will tell the story soon. Stay tuned for additional updates.

 

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New Home Valuation Protection Code

Wednesday, March 12, 2008
by Liz Warren

Ever hear of this? New York state attorney general Cuomo has come up with a proposal that Freddie Mac and Fannie Mae (the companies that buy most of the conventional loans) will be agreeing to. This Code will basically protect consumers from the "conflicts" where appraisers have been pressured into "over appraising properties-inflating values" which is one of the reasons we are in this mess of the housing/foreclosure market.

The requirements of the act are: that mortgage brokers cannot select appraisers, lenders cannot use "in house" staff appraisers and lenders cannot  use appraisal companies they own or control.

This takes the conflict out of the system and protects consumers. This is also one way  states may have slipped their toe into the Federally regulated bank, savings and loan, and credit union systems that are completely monopolized and regulated by the FEDS.

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Hiway 26 is Widening in the Hoodland Corridor

Monday, March 10, 2008
by Liz Warren

If you've noticed lots of BIG TREES coming down in the Brightwood area, the highway widening is beginning now. Streams of florescent tape mark  the North side of Highway 26 near Wildwood Park. Not only is the visual impact going to be huge, I feel sorry for the homeowners who have lost a major noise and visual buffer from their homes along this stretch!

This is the beginning of a summer full of road construction  and paving in the corridor from Brightwood, Welches and Rhododendron.  Locals and second homeowners will need to be armed with lots of patience this summer.

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HELOC FREEZE?

Wednesday, March 5, 2008
by Liz Warren

Many buyers of homes are familiar with HELOCS or Home Equity Lines of Credit. This has been a convenient way for homeowners with equity to borrow money against their homes for vacations, college expenses, home improvements, second homes, or just unexpected expenses. This convenient home ATM is going into "shut down mode" with the following big banks sending "freeze" letters out due to falling home prices in many areas of the country. Here is a list of some of the larger banks implementing this policy:

Countrywide

Bank of America - HELOC Freeze

Countrywide - HELOC Freeze

Chase - HELOC Freezes

CitiGroup - HELOC Freeze under review

National City - HELOC Freeze

Suntrust - HELOC Freeze

USAA Federal Savings - HELOC Feeeze

Washington Mutual - HELOC Freeze

The credit crunch is on and the impacts of this will be severe for many home sellers in our area. Our home values have not fallen as far as many parts of the country but this inconvenience will impact many second home buyers.

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Is This a Great Time To Buy a Home or What?

Friday, February 29, 2008
by Liz Warren

Lets face it, the media has beaten down buyer confidence in the housing industry to small sized orange juice pulp. It's the herd mentality again. The rush to Dot Com stocks, crash, the run to real estate investing, crash, and now the touting of "it's going to get even worse in housing"  syndrome.

Opportunities are passing buyers by right now. Historically low interest rates, a huge glut of properties and many motivated sellers? Sounds like a buyers nirvana to me.

 

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Government Camp: Golden Poles Condo Roof Is Giving Way

Tuesday, February 19, 2008
by Liz Warren

Huge amounts of snow has fallen locally and particularly in Government Camp. They received six and a half feet in six days!  The amount of structural damage is just now showing up as the snow melts. Today the roof started to collapse in the Golden Poles Units near Multorpor Meadows. Beams are cracking and chimney damage is occurring.  Once all the snow is gone there will probably be an even greater amount of damage uncovered. Here is the news story and video:

see story and video here

 

 

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Oregon Trail School District Needs A New High School Desperately!

Thursday, February 14, 2008
by Liz Warren

The Oregon Trail School District has formed a Task Force who has been working very hard on the high school issues at hand. They are recommending a November 2008 bond election to build a new 1,600 student high school and improve safety, security, and deterioration issues at other district facilities.

To read about the bottom line and outline of what is needed you can download this pdf file of information.    

click here

If you have ever visited Sandy High School, you will understand why this is an urgent need not only for area children but this will help maintain a more stable and desirable community for the entire area from Sandy and Boring to Welches and Government Camp.

 

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Displaying blog entries 1801-1810 of 1876

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