Lake Oswego Market Snapshot - July 2009

Housing prices in our market started to decline in late 2007. The average Lake Oswego sale price fell 4.5% in 2008 and through the first 6 months of this year it has decreased another 13%.

We are in a strong buyers’ market with sellers vying for the attention of buyers by beating the competition in price and condition.

In addition to the decrease in the number of potential buyers, those that can “afford” to sell are faced with competition from:

• undervalued bank owned foreclosures
• drama-priced “short sales” trying to avoid foreclosure
• new construction inventory with below market financing

Distressed Property Information -zip codes 97034 and 97035

Currently Listed For Sale in RMLS
Bank Owned Properties: 10
3rd Party Approval Required -short sale?: 46

From Real Quest Investor Data
Received Notice of Default: 3
Date Set for Auction on Court House Steps: 305
REO Properties -bank owned: 10

More stringent appraisal regulations were enacted earlier this year resulting in lower mortgage appraisals in many cases. Comps used for appraisal purposes have to be within the last 90 days and the appraiser must note that the local market is in a decline and make a deduction for that. The standard Oregon sale agreement states, “If a new loan is required, this transaction is subject to buyer and property qualifying for the loan and the lender’s appraisal being not less the than the purchase price.”

Although we are in a challenging market, there are buyers looking and activity seems to be picking up. Good homes, presented and priced well are selling.

Rodeo Time

Summertime is rodeo time in some of the nearby communities. St. Paul and Molalla have their big rodeo over the 4th of July weekend; the Buckeroo in Molalla holds several events throughout the summer including 4 weekends of the Willamette Valley Junior Rodeo Association (kids ages 2 through 18).

2009 Farmers' Markets are Opening Soon

Lake Oswego
Saturdays: May 16 - Oct 10
8:30am - 1:30pm
Millennium Plaza Park

West Linn
Tuesdays: Jun 2 - Sep 29
4:30pm - 8:30pm
1725 Willamette Falls Drive (between 10th and 14th streets)

First Time Home Buyer Tax Credit for 2009

The 2009 Federal tax credit of up to $8,000 is a great opportunity for qualified first time home buyers purchasing their principal residence before December 1, 2009.

Visit www.federalhousingtaxcredit.com to learn more and take advantage of the credit to buy a home this year. Here are some of the highlights:

• A first-time home buyer is someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid if you live in the home for 3 years.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

West Linn Market Activity Aug 08 - Jan 09

Lake Oswego Market Activity Aug 08 - Jan 09

I spent some time this afternoon looking at data from our local MLS and compiled the charts above.

The first chart shows the number of homes listed for sale that month, how many went pending and how many sold.

The second chart shows the average list price of homes on the market that month and the average sold price.