Home Ownership Builds Wealth
Thursday, September 27, 2018
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Displaying blog entries 661-670 of 1921
Home Prices: The Difference 5 Years Makes
Tuesday, September 18, 2018
CoreLogic recently released their Home Price Index Report. One of the key indicators used in the report to determine the health of the housing market was home price appreciation. CoreLogic focused on appreciation from July 2013 to July 2018 to show how prices over the last five years have fared.
The graph below was created to show the 5-year change in price from July 2013 to July 2018 by price range.
As you can see in the graph, the highest price appreciation occurred in the lowest price range with 48% growth, while the highest priced homes appreciated by 25%. This has been greatly fueled by the lack of inventory of homes available at the lower price ranges and high demand from first-time buyers looking to enter the market.
Where were prices expected to go?
Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts, and investment and market strategists and asks them to project how residential home prices will appreciate over the next five years for their Home Price Expectation Survey (HPES).
According to the Q3 2014 survey results, national homes prices were projected to increase cumulatively by 19.5% by December 2018. The bulls of the group predicted home prices to rise by 27.8%, while the more cautious bears predicted an appreciation of 11.2%.
Where are prices headed in the next 5 years?
Data from the most recent HPES shows that home prices are expected to increase by 20.0% over the next 5 years. The bulls of the group predict home prices to rise by 31.2%, while the more cautious bears predict an appreciation of 9.3%.
Bottom Line
Every day, thousands of homeowners regain positive equity in their homes. Some homeowners are now experiencing values even greater than those before the Great Recession. If you’re wondering if you have enough equity to sell your house and move on to your dream home, let’s get together to discuss conditions in our neighborhood!
Zig Zag Riverfront A-frame Like New Condition
Friday, September 7, 2018
If you're looking for a great ski cabin for this winter or the perfect summer getaway or year round vacation home, this is the place! Located on the Zig Zag River and only 10 minutes to the slopes of Mt. Hood, you've hit the jackpot on this one. Completely refurbished from top to bottom there's nothing you need to do here, it's user ready.
Located in the Mt. Hood National Forest on leased land, the pristine setting of the forest will relax you beyond belief. Biggest benefit, it's only about an hour from Portland so your getaway is easy to reach and will make your weekend winter ski trips much more fun! $319,000
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Supply and Demand in the Mt. Hood Real Estate Market
Thursday, August 30, 2018
Today's Mt. Hood real estate market has a current inventory of 55 homes available. Our current supply will last around four months.
Mt. Hood Condos On Golf Course at Mt. Hood Oregon Resort
Wednesday, August 29, 2018
Are you looking for a great getaway with no maintenance right on the golf course at the Mt. Hood Oregon Resort, formally the Resort at the Mountain? Four great choices are currently for sale in Welches. Two are located in the Whispering Woods complex with amenities including a swimming pool and work out facilities. Two are located in the Clear Hills Condo association with great Salmon Valley views. Skiers will love the convenience of cutting that long drive back and forth for winter skiing. This is an affordable alternative to dishing out weekend hotel fees!
Government Camp Condos can be found here
Three Real Estate Myths
Wednesday, August 29, 2018
There are many conflicting headlines when it comes to describing today’s real estate market. Some are making comparisons to the market we experienced 10 years ago and are starting to believe that we may be doomed to repeat ourselves. Others are just plain wrong when it comes to what it takes to qualify for a mortgage.
Today, we want to try and clear the air by shedding some light on what’s causing some of these headlines, as well as what’s truly going on.
Myth #1: We Are Headed for Another Housing Bubble
Home prices have appreciated year-over-year for the last 76 straight months. Many areas of the country are at or near their peak prices achieved before the last housing bubble burst. This has many worried that we are headed towards another housing bubble.
Reality: The biggest challenge facing today’s real estate market is a lack of homes for sale! Demand is strong, as many renters have come off the fence and are searching for their dream homes. The Mt. Hood area has 55 single family residence for sale and 12 of those properties are in the Mt. Hood National Forest.
Historically, a normal market requires a 6-month supply of inventory in order for prices to rise with the rate of inflation. According to the National Association of Realtors (NAR) there is currently a 4.3-month supply of inventory. This rings true for area 153, the Mt. Hood area with a 4 month supply of homes, a seller's market.
The US housing market hasn’t had 6-months inventory since August 2012! The concept of supply and demand is what is driving home prices up!
Myth #2: The Rumored Recession Will Lead to Another Housing Market Crash
Economists and analysts know that the country has experienced economic growth for almost a decade. When this happens, they also know that a recession can’t be too far off. But what is a recession?
Merriam-Webster defines a recession as “a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two consecutive quarters.”
Reality: Recession DOES NOT equal housing crisis. Many people associate these two terms with one another because the last time we had a recession it was caused by a housing crisis. According to the Federal Reserve, over the last 40 years, there have been six recessions. In each of the previous five recessions, home values appreciated.
Myth #3: There is an Affordability Crisis Looming
Rising home prices have many concerned that the average family will no longer be able to afford the most precious piece of the American Dream – their own home.
There are many different affordability indexes supported by different organizations that all measure different data. For this reason, there is a lot of confusion about what “affordable” actually means.
The monthly cost of a home is determined by the home’s price and the interest rate on the mortgage used to purchase it. According to Freddie Mac, interest rates have risen from 3.95% in January to 4.59% just last week.
Reality: As we mentioned earlier, home prices have appreciated year-over-year for the last 76 months, largely driven by high demand and low supply.
According to a recent study by Zillow, the percentage of median income necessary to buy a home in today’s market (17.1%) is well below the mark reached in 1985 – 2000 (21%), as well as the mark reached in 2006 (25.4)! Interest rates would have to increase to 6% before buying a home would be less affordable than historical norms.
The starter-home market has appreciated at higher levels (9.4% year-over-year) than any other market. One reason for this is the fact that many of the first-time buyers who have flocked to the starter-home market are being met with high competition. For some hopeful buyers, it may take more than a good offer to stand out from the crowd!
Bottom Line
There is a lot of confusion in today’s real estate market. If your future plans include buying or selling, make sure you have a trusted advisor and market expert by your side to help guide you to the best decision for you and your family.
Hood To Coast Run Today
Friday, August 24, 2018
Today is the day Hood to Coast, one of the biggest relay races in the country, fills our Highway 26 with funky vans and costumed runners for miles and miles. The race starts at Timberline Lodge and ends at Pacific City at the beach. Here are some fun facts about the run from the official website.
Air quality has been a big concern with lots of smoke socked in the Mt. Hood Village area. Predictions say the lift should come around noon today and with our cool temperatures that have rolled in the majority of runners may be spared the smoke filled air.
Drivers should be on top of their game watching for distracted van drivers and streams of runners throughout the course.
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Displaying blog entries 661-670 of 1921
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