What is the state of our market? Part Three...

Previously, we talked about what to expect if you are a buyer in our current market.

But what if you are a seller? Should you be feeling hopeless? No, but let me give you some helpful information as well.

If you do not need to sell, don’t sell. It is true that values have dropped. So you will not get as much for your house as you would have a few years ago. Now, I cannot look into the future, but we are hopeful that prices will go back up at some point, and in looking at trends we have no reason to assume otherwise. So if you are happy with your house, then sit still.

If you are in over your head, meaning that you bought when the market was at the top and/or you have refinanced in the last few years and pulled money out, you should sit still as well. I would highly recommend waiting for prices to go back up and not be tempted to pull out any more money from your home value unless it is for an improvement that will be a real winner. (We will talk about those later.)

Now, if you have owned your home for more than 5 years, you probably have some equity. Listen up! This may be a great time for YOU to sell. Why? Because the house that you have dreamed of that may have previously been out of reach may be attainable now. Remember how I said values and interest rates have come down making it the buyers “perfect storm”? Well, you could be one of those buyers. Now I know some of you are saying, ‘But I am not going to give my house away or take a loss on it. I paid $200,000 for it and I am not going to sell it at $180,000!” That is fine. But I would encourage you to think this through. If you sell for a “loss of 20,000” but are able to get the house you had your eye on that was once $300,000 that is now $240,000…. Maybe it is worth it to take your $20,000 loss to save $60,000! You have stepped into what is likely going to be a great investment while buying at the market low and getting a great interest rate to boot. Just food for thought!

Next time we will look at the truth about foreclosures. Stay tuned@

What is the state of our market? Part Two

In our May 19 blog, we began look at our current market conditions, spearating rumor from fact. Let's continue the discussion...

As a Buyer… Contrary to what you may have heard, this is the time to buy!!! Interest rates (which I will discuss more in a later blog)are at close to HISTORIC lows. Last month we were seeing refi’s (which I will ALSO discuss later) on a 30 year loan and on home purchases still around the 5% mark. This is the close to lowest they have been in my 15 year real estate career.

All of this means your purchasing dollar goes farther. For example, in 2001, the average rates we were seeing on a 30 year mortgage were at 7%. So let’s say that I had a client buying a house back then for $150,000. Their monthly payment would have been $997.95. Today, buying that SAME house at that SAME price, their approximate payment would be $760.03. That is a monthly savings of $237!!! You are certainly getting more bang for your buck today!

Additionally, housing prices in the Valley are lower than they have been in 4 years. It has been my experience these last few months that in general houses are selling for what they would have sold for back in 2004. This is a far cry from what they would have sold for back in May of 2007 when we were hitting our value peak here in the Valley.

So if you look at both the combination of interest rates, lower prices, and the amount of inventory to choose from, you see that we have created a “perfect storm” in which to buy a home!

Add to this that if some of you are interested in being a first time home buyer, the government is offering some big tax incentives right now. I want you to write down this link if you are a first time home buyer: http://www.federalhousingtaxcredit.com/. According to this site, a tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid. This is amazing news!
So we see that the FACTS are telling us that it is a great time to buy, even if the news is telling us it is the time to fear.

In my next post, I will focus on the other side of the coin: What a seller should know in our current market.

Check this out! We are #1!

According to a recent article in Outdoor Life Magazine, Lewiston is ranked as the #1 spot in the US for "Affordable, thriving and perfectly wild towns in America." So if you are interestedwhat Outdoor Life presents as the 2nd Annual Top 200 Towns for Sportsmen, check out this link.

http://www.outdoorlife.com/photos/gallery/hunting/2009/05/top-200-towns?photo=10

Some positive news...

The following article was taken directly from the Lewiston Tribune and highlights what the market appears to be doing in our community.

Most property values in Nez Perce County remain stable
By Sandra L. Lee of the Tribune

Saturday, May 2, 2009

East Main Street businesses, apartments and farm ground are seeing the greatest increases in property values this year, Nez Perce County Assessor Daniel J. Anderson said.

However, most property owners in the county won't see any dramatic changes - up or down - in the notices going out late this month, Anderson said.

"The majority of folks are going to see a level (value) or an actual decrease, a small decrease," Anderson said.

The exception is East Lewiston commercial property that will rocket up 29 percent after being unchanged the past five years. The assessor's office looks at a different part of the city or classification of businesses each year. Averaged, East Main has gone up about 5 percent a year, he said, but it's still a good value compared with other commercial areas.

For instance, the downtown area west of Lincoln Street last year averaged increases of 9 percent for land and 22 percent for improvements.

Based on past sales, values of $1.50 a square foot on East Main will go to about $1.93, or $2 up to $2.60, none of which are anywhere close to Thain Road or 21st Street values, he said.

Throughout the county, apartment values are going up an average of 13 percent and farm ground by 10 percent. Condominiums will increase an average of 2 percent to 3 percent.

The county is seeing the reverse of what happened when residential values were escalating wildly in parts of the nation, but seeing relatively modest increases here, Anderson said. Now, homeowners in some of those regions are finding their houses are worth less than they owe, but values here are either flat or within a percent or two up or down from last year's values.

Where there are increases in residential properties, it's likely to be a couple percent, up to about 7 percent for newer manufactured homes in courts and parks, Anderson said. Manufactured homes on their own lots, however, are flat or even down a bit.

The more moderately priced houses, up to about $150,000, will see about a 5 percent raise.

"A case could easily have been made that I could have raised almost all property 5 percent because last year 70 percent of the sales sold for more than we had just raised them to," he said

"I'm given latitude by the State Tax Commission to be within a range based on the actual sales that occur between 90 percent and 110 percent. We're statistically setting around 95 percent, and I have opted to take a wait-and-see attitude as far as what's going to happen with sales in 2009."

Anderson said a couple things are protecting the market here. One is the continued stability of employment at places like Clearwater Paper, ATK, Regence BlueShield, St. Joseph Regional Medical Center and Lewis-Clark State College. There also wasn't a large stock of houses built on speculation, such as existed in other locations, to drive down the market.

New housing starts are down somewhat, but haven't stopped completely.

In 2008, permits were issued inside Lewiston for 40 new residences and seven manufactured homes. Permits for 15 of those stick-built houses and one manufactured home were issued in the first four months of 2008, compared with 10 house permits and two manufactured homes in the same period this year, according to Sarah Redenbaugh, permit representative with the Community Development Department.

---

Lee may be contacted at slee@lmtribune.com or (208) 848-2266.

What is the state of our market? Part One...

There are lots of interesting rumors, truths and lies going around related to our market. Most of this stems from the national state of the economy and the news we are being fed on the internet, television, and newspaper: that we are in a dire state and that the sky is falling.

While it is true that there have been times that the market has been hotter, we are in no way in a state of emergency. Foreclosure facts and figures even from places as close as Boise have little real affect on us. We are impacted by the national and state issues, but we are not strangled by them either.

So what does our local market look like right now? The following are some numbers pulled by my brokers in the last few months.

There are currently approximately 390 homes on the market. Most of these are 3 and 4 bedroom homes, and their average list price is around $228,000.

Last month, approximately 31 houses sold. Their average sale price was $150,800. They sat on the market an average of 158 days. They sold for about 94% of their list price.

Examining these numbers, we learn a few facts about our market.

1. The lower priced houses are selling. We are seeing that houses priced under $150,000 have a good chance of selling.
2. We have 12 months of inventory sitting there. In a fast paced market, we usually have about 3-4 months worth.
3. If you are planning to sell, you need to expect even if you are priced right to sit on the market for a good 5 months.

Over the next few weeks and posts, I will explain how these numbers affect you!

Creative Ways to Buy a Home

Here are four ways to expand the box of beginning home ownership when you don't have the needed downpayment or credit to qualify.
1. Speak with your Realtor and lender to determine down payment programs that may cover part or all of the downpayment.
2. Work closing costs into an offer so that the seller covers them as part of the contract.
3. Ask a family member to be a co-signer on the loan.
4. You can try a lease with an option to buy. This will allow you to rent while you save up for the downpayment needed.
For more information, contact your local Realtor and reputable lender to help with your individual situation.

What to make of averages...

Averages can misinform. Picture a room with Bill Gates, Warren Buffett, and eight other people, each of whom earn $100,000 annually. If a statistician were to average the annual incomes of the 10 inhabitants, the average annual income would be several million dollars a year, even though eight of the 10 inhabitants make nowhere near that amount. It would be impossible to implement a successful sales strategy based on that average income. In other words, averages can be irrelevant.

Such is often the case with real estate. Home prices in Phoenix tumbled an average of 51% from 2006 highs to the present, while Dallas prices tumbled an average of 11%. Average these two numbers and you get an average decline of 31%, which makes the Phoenix market look more robust than it is and the Dallas market less robust. What's more, that average is even more misleading because it is based on an average of an average.

The point is, don't let national averages influence your opinion of the economy too much. Most business is local, and what's happening in one part of the country can be completely different from what is happening in another part of the country. What's happening in your part of the country is what's most relevant.

-- This article was taken from a newsletter sent to us by Brian Bledsoe; it is not our original composition.

Did you miss the Dave Ramsey Town Hall for Hope?

We just received the following exciting news from The Dave Ramsey Show:

"The Town Hall For Hope event was a huge success with over 1 million people watching and listening. We are getting bombarded with requests to purchase the event on DVD, download, etc.


Dave will announce this afternoon that videos of the event will be made available through the Dave Ramsey online store. The video will be available in three formats: a video download, an online streaming version and a 10-pack DVD bundle.



The giveaway

The first one thousand people to select the video download will get it for free. If you’re signed up to get the Dave Ramsey newsletter, you’ll receive an email today with a link to the offer page and more details. This may go out in a few hours or possibly sooner.



The details

The costs are:


After the first 1,000 free downloads,

$7.95 – Video Download (download to your computer, burn to a DVD, highest quality)

$1.99 – Streaming Video (watch it on your computer, lower quality)

$38.95 – 10-pack DVD Bundle (to give away to friends)

Free -- www.hulu.com will offer free viewing online in a couple of weeks."


Take advantage of this great offer!

Got Paint?

4 Interior Painting Tips


Painting is a quick and easy way to liven up a house. But some smart prep work can make a huge difference in the quality of the results.

April 2009

1.Get the surface ready.

You want the paint to glide on smoothly, so be sure the surface is clean before you start painting. Remove any handprints, dirt, or scuff marks. Lightly sand any glossy spots to avoid streaks.



2. Select a paint sheen and color.

Ah, the choices! Many paint stores are making it easier to narrow down your choices by offering small trial sizes so that you can test the color at home and look for any variations in daylight and night. Lighting has a big effect on the way color appears. Remember: Higher sheen paints tend to offer more durability than flat paints, so use them in high-traffic areas. Stain or low-lustre finishes offer more warmth and depth than a flat paint. Consider a high sheen paint on the ceiling, which offers good reflection in the room.



3. Don’t go cheap on the paint.

It’s always tempting to save a buck, but it might not be worth it on paint. Painting is a big job, so you want the expense and quality to show. The Rohm and Haas Paint Quality Institute, a national painting education group, recommends purchasing top-quality acrylic latex interior paint, which will go on smoothly and allow for easy soap and water cleanups.



4. Choose the right paint tools.

If you’re using a roller to paint, select the right length of roller nap cover for proper paint coverage. The smoother your painting surface, the shorter the nap should be. Use synthetic materials, which are made from nylon or polyester, when applying latex or water-based paints.







Source: The Rohm and Haas Paint Quality Institute
This article was taken directly from Realtor Magazine online, April 2009.

The Murphy Bed May Be Making a Comeback

This article was taken directly from Realtor Magazine Online, January 2009 and was written by Mary Beth Klatt who is a freelance writer with a passion for architecture and home design.

The Versatile Murphy Bed


Home office by day, comfy guest bedroom by night. Murphy beds are making a comeback as home owners seek to maximize their space.

By Mary Beth Klatt | January 2009

A charming, retro space-saver is back in style. The Murphy bed, which can be flipped up inside a closet or cabinet when not in use, provides versatility in dwellings ranging from studios to country homes.



Once a favorite prop for comedians in early 20th century silent film era, the Murphy bed is now seeing its real heyday—especially in upscale urban lofts—some real estate practitioners and interior designers say.



"There's a demand for it," says William Robbins, a Columbus, Ohio real estate practitioner. "But at the same time, it's not widely available."



Robbins is surprised by how few people actually know about the Murphy bed, considering what a boon it would be for home owners who are short on space. He once told a client that thought a Murphy bed would be useful, but “in return, all I got was a blank stare," he recalls. At least one of his friends appreciates the versatility, and has one ready for guests in a spare bedroom. "She loves it," he says.



The Murphy bed got its name from its inventor, William Murphy, a Stockton, Calif.,

stagecoach driver. He and his wife didn't have enough room to entertain in their small San

Francisco home, so he created a way to make his bed disappear when company was over.



Murphy patented his invention in 1912, and the space-saver became instantly popular in apartment buildings nationwide. Architects would design buildings with closets large enough to fit the popular bed. By the 1920s, Murphy had showrooms across the country.



During the Depression, Murphy consolidated his business and moved to New York City. Unfortunately, his wall bed design lost popularity, especially after World War II when Americans moved into large homes in the suburbs. The Murphy, as the bed is sometimes known, didn't see a resurgence until the late 1970s and early 1980s when the oil embargo kicked in and Americans downsized, says Eugene Kolakowski, vice president of Murphy Bed Co. Inc., of Farmingdale, N.Y.



The bed became even more widespread after a 1989 court ruling, in which Murphy beds lost trademark protection. At that point, knock offs entered the market in droves.



By the 1990s, the Murphy bed evolved into a sophisticated system complete with cabinetry. Empty nesters put them in home offices or dens for visiting grandchildren, while landlords began retrofitting 1950s-era originals.



But even today, some misconceptions exist—probably due to those funny silent films mentioned earlier. The biggest fallacy is probably that the bed can fold up while someone is sleeping on it, or fall down out of the wall unexpectedly. Not true, says Kolakowski: "They're designed so that they lean back into the closet, so they can never fall out," says Kolakowski.



Many people also think that the beds can’t be moved to a new residence, as traditional beds can be. In fact, current models can be disassembled and transported to another location. A well-made bed can last 50 to 60 years. It's a good thing, top-of-the-line beds aren't cheap.



Prices for Murphy Bed Co. Inc's products range from $715 for an "econo" twin to $1,280 for a California king. Mattresses range from $305 to $795, and cabinetry can add as much as $2,420 to the total price.



Robbins says developers would be smart to offer a built-in Murphy as an upgrade in a small apartment. The customization would distinguish the unit from similar ones on the market. That's definitely the case in New York City, where the beds have long been in vogue and even the well-to-do often live in tiny, expensive rentals.



Harold Stark Industrial Development installed the space-savers in a renovated 50-year-old apartment building. "They give a little more room during the day," says company spokesperson Peggy Dragone.



If a listing has a Murphy bed, look for these features:



They're usually stored vertically in a wider-than-normal and deep closet or cabinet.
Older beds are usually inside deep and wide closets. These typically don't have box springs, just frames.
Watch for creaky parts that might need to be fixed.
Contemporary versions have glass, mirror, and lights as well as shelves for computers, books, television sets and stereos. Some owners even decorate the wall above the area where the pillow rests with artwork that won't be knocked down by an upright mattress.


While Murphy beds are ideal for tiny apartments, they’re not just for small spaces.



After Becky and Tom Stilp had a pool house built at their summer home near New Buffalo, Mich., they had a queen-sized Murphy bed installed inside. It can be opened and closed with a set of sliding doors on a barn-door track. The bed gets used by relatives and friends who come over for barbecues and holiday parties.



Indeed, versatility is the best feature of Murphy beds, says Kolakowsky. A bedroom by night can turn into a sewing room or exercise room by day. And today’s models are cinch to open and close. "Even a seven-year-old can operate one," says Kolakowski.