Lockbox activity down slightly
After an increase last week, lockbox activity dipped slightly in the week of August 10-16 compared to the prior week. In Washington, the number of times RMLS™ subscribers opened Supra lockboxes decreased 3.4% and in Oregon activity was down 1.4%.
Click the chart for a larger view (Washington, top; Oregon, bottom)
Archive
View an archive of the Supra lockbox statistical reports on Flickr.
There’s been some encouraging news lately in the RMLS™ market areas. The number of sales and pending sales are finally outpacing the totals from the same month in 2008. How much of it might be a result of the $8,000 first-time homebuyer tax credit, though?
I recently put together some statistics for the Oregonian on the Portland metro area, and thought I would share them with you.
There is no question that home sales in the lower-end of the market have seen a big jump this year. In 2007, homes priced between $0 and $249,999 only made up 35% of all sales in the Portland metro area. In 2009 so far, they make up 49.6% of the market.
As you’d expect, coinciding with the increase in lower-end homes is a drop in high-end homes. Homes priced $500,000 or above have dropped from 13.5% of the market in 2007, to just 8.2% of the market this year.
The question is: what will happen when the $8,000 tax credit expires on December 1?
I know the tax credit definitely got me off the fence & I can literally think of 15 of my friends and acquaintances (off the top of my head) who have bought or are actively looking to buy.
So in my humble opinion, there’s little doubt that the tax credit spurred people to buy. But as the deadline for the credit approaches, it should be interesting to see where sales go.
After a few down weeks, lockbox activity rebounded in the week of August 3-9 compared to the prior week. In Washington, the number of times RMLS™ subscribers opened Supra lockboxes increased 18.2% and in Oregon, activity was up 8.8%.
Click the chart for a larger view (Washington, top; Oregon, bottom)
Archive
View an archive of the Supra lockbox statistical reports on Flickr.
Portland Metro Active Listings: Note how the 2009 line is basically flat.
Inventory: Inventory is showing steady improvement in Portland (7.3 months), Clark County (7.3 months), and Lane County (6.2 months). In most circles, 6 months of supply is considered a balanced market. The drop in inventory comes thanks to strong closed sales, but also because the number of active listings is growing at a much slower pace than usual.
Closed sales: The Portland metro area was finally able to post a gain in same-month closed sales for the first time since April 2007. Closed sales were up 8.6% compared to last July. Clark County posted a gain for the second straight month – closed sales were up 23.5% there. Lane County also posted an 11% gain. Baker County, Curry County, Douglas County, and the Mid-Columbia region also saw growth.
Clark Co. Pending Sales: Oh, so close to reaching July 2007 levels.
OREF’s legal counsel, Phil Querin, advises all brokers in the state of Oregon to be aware of federal disclosure requirement that may cause a delay in closing.
Under new rules enacted by the Federal Reserve Board Truth in Lending Act, effective July 30, 2009 it is required that if the final Annual Percentage Rate (APR) changes by .125% or more as disclosed in the Good Faith Estimate there is a mandatory additional three business day waiting period before the transaction can close.
It is suggested that brokers get their buyers and sellers to agree in advance to a written extension as a contingency if the final APR causes the 3-day extension beyond the scheduled Closing Deadline such as:
“In the event that Buyer’s final Annual Percentage Rate (“APR”) differs from the APR initially disclosed to the Buyer in the Good Faith Estimate by .125% or more, the Closing Deadline defined in the Real Estate Sale Agreement shall automatically be extended for three (3) additional business days in accordance with Regulation Z of the Truth in Lending Act, as amended on July 30, 2008.”
If brokers encounter such a situation for a transaction already in process, they can extend the Closing Deadline by using an addendum form (OREF-002).
Caveat: This is not legal advice. All brokers should confer with their principal brokers and also recommend that their clients consult their own legal counsel if they have any questions.