Greetings:
Happy New Year 2012! I hope that you had a wonderful and joyous Christmas and celebrated New Years in great fashion. Cathy and I had a blast at the Rose Bowl with 50,000+ of our closest friends. The win by the Ducks was so sweet. (it was 95 years ago that the Ducks won their last Rose Bowl).
I just finished reading an article in our local paper that took a look at area businesses that have not only survived but thrived over the past few years in our tough Douglas County economy. WOW…good news for a change. The article highlighted many small businesses that have added staff to their companies to meet their growing demand and also featured businesses that have expanded their companies into the national and international marketplace.
In Real Estate, the housing recovery is occurring nationwide, but at a slower pace then expected according to Lawrence Yun, chief economist, for the National Association of Realtors. However, home inventory is trending downward, pending sales are rising and even though sales prices continue to go down, at least consumers are gaining confidence in the real estate market. People still need a place to live and raise their family and have come to accept the fact that they may or not make money on their home when it is time for them to sell.
Real Estate trends in Douglas County continue downward. Comparing 2010 with 2011, all real estate activity declined. Closed sales went down -4.4%, pending sales fell -3.1% and new listings decreased -17.6% Total sales volume in 2011 was $136 million, down from $143 million in 2010. The average sales price in 2011 was $154,800 v. $155,300 in 2010. There were a total of 878 closed sales in 2011 with Myrtle Creek and South County seeing the most closed sales activity (14 %), followed by the N. Roseburg, (13%) and Sutherlin area (12%).
It seems to me that, even though our real estate prices have not bottom out, our prices are not declining as much as they were just 2 years ago. I feel that Douglas County will continue to grow because of our climate, our location on 1-5 and our boundless recreation activities. We all live a good life in Douglas County and more people are discovering us.
Please remember all our military personal and their families in your thoughts and prayers. Have a wonderful and loving Valentine’s day with your family and loved ones.

admin Market News

Greetings:
Douglas County is very fortunate to have the amenities that people are looking forward in locating here. We have a great climate for growing a variety of produce, great location on the I-5 corridor, great medical facilities with Mercy Medical Center and the Veterans Hospital, located near great outdoor recreation with hunting and fishing, biking, and golf, and the lists go on. However, what concerns me the most is that our population is aging with over ½ of those of us that live in Douglas County are over 55. What that means is that we are losing our best and brightest young people who choose to move because of the lack of employment and limited opportunities, that we offer them.
We need to do something about this and in May 2012 our Umpqua Community College will be asking the homeowners of our area to pass a $40 million dollar bond levy that will be used to construct 3 new facilities. This bond levy will cost the average home owner about $58 per year over a 25 year period and will offer a new Allied Health building, a Technology building and a south county facility which will provide our area with much needed jobs and training for our students now and for years to come.
As chairman of this campaign I am asking for your support because it will take all of us to work hard in our county to get our county rolling again. We have a great opportunity to turn the tides of this very crippling economy by passage of this levy because it will have over a $200 million dollar impact on our local economy. Also, the state of Oregon will provide a $8.5 million matching construction grant and with construction costs down plus this grant, we are afforded a golden opportunity to give our county residents hope for the future. We are asking the property owners to invest into our future so we can stem the tide of losing our young people and improve our local economy. This project is a win-win for our county. So please help us get out the message and vote for passage of this very important issue. If you want more information on the levy or would like to help us, feel free to contact me.
As we compare November 2010 with November 2011, closed sales fell from 66 to 64. Pending sales grew from 74 to 75 and new listings increased by 37.5% from 96 to 132. Historically November is a slower month in Douglas County as far as real estate sales and our stats reflects that trend. On a month to month basis, Douglas County showed declining sales activity when comparing the previous month of October 2011 with November 2011. Closed sales decreased from 73 to 64 (-12.3%), and pending sales fell from 93 to 75 (-19.4%). New listings saw a rise of +7.3%, up from 123 to 132.
When comparing November 2010 to November 2011, the average sales price dropped 6.0% ($165,700 v. $155,800). However, a comparison of the month prior October 2011 to November, shows a +11.1% rise in the average sales ($140,200 v. $155,800). The average sales year to date is down -2.0% ($155,600 v. $152,500).
We want to wish you and your family a very Merry Christmas and Happy New Year. Be sure to include all of Military troops and their families in your thoughts and prayers during this time for all that they do to help us enjoy our liberties. God Bless all of you and your loved ones, and God Bless America.

admin Market News

GREETINGS:
Our local economy continues to suffer, in fact, it stinks. One of largest employers in our area, the Swanson Timber Company just laid off 400 workers until the end of the year and plans to revaluate what they will do then. The demand for finished lumber continues to decline nationwide and worldwide even though the demand for raw logs exports are up. These are reasons why we need to pass the UCC bond levy in May to offer hope of future employment in the growing health care and technology field. This is critical for the long-term well being of our community and the people that live here. We are, however, hearing that many of our local retailers are hiring for the holidays and there seems to be an uptick in consumer confidence. Our local Wal-Mart is expanding its current facilities and it will soon become a “Super Wal-Mart” which will include a grocery store.
Gradual Recovery for Housing and the Economy is expected in 2102, according to our lead economist at the National Association of Realtors, Lawrence Yun. He went on to say that home sales should be stronger in 2012 even though they struggled in 2011. “Tight credit restrictions have been holding back home sales and consumer confidence has been shaky. Nonetheless, there is a sizeable pent-up demand based on population, the growth of jobs in certain key sectors of our economy, and lower than normal interest rates will likely contribute to the growth in home sales.” With the continued interest in the elections in 2012, Yun feels that many consumers will once again feel good about the nation’s economy, depending on the outcome of their specific region. In other words, our economy will grow more regionally than nationally, Yun feels. Of course, we are seeing that already with the recent surge of housing demands in Williston North Dakota when oil rigs are popping up like weeds. In fact, Williston is expected to grow from 30000+ to 60000+ in the next 2 years or less.
In Douglas County October Residential activity was down when you compare October 2011 to October 2010 when closed sales fell from 80 to 73 (-8%). Pending sales remained constant at 93, while new listings dropped by (-28.5%) from 172 to 123. When you compare the respective month of October in 2010 to October 2011, the average sales price dropped from $163,600 to $140,200 (-14.3%). The total market time for this same period, October 2010 to October 2011 also dropped from 176 days to 154 days, which is significant.
On a month-to-month basis, Douglas County showed declining sales activity across the board when comparing the previous month of September 2011 with October 2011. Closed sales decreased from 82 to 73 (-11%), and pending sales fell from 100 to 93 (-7%). New listings saw a drop of 11.5%, down from 139 to 123. At this month’s rate of sales, the 1,027 active residential listings would last about 14.1 months, which is the lowest October inventory rate of the last 3 years.
Cathy and I had the pleasure of attending the 236th Birthday of the Marine Corps in the Portland area, hosted by the Recruiting Station of Portland. There were close to 400 Marines and their guests in attendance honoring past and present Marines. It was a lively and eventful evening.
Please keep our Military men and women and their families in your thoughts and prayers and be thankful for what you have and the wonderful life that you live because our servicemen and women are preserving our freedoms. Happy Thanksgiving and enjoy your time with your family and friends.

admin Market News

Greetings:
The Occupy Wall Street protestors and the 99% majority sure have stirred the pot not only in our country but worldwide. In fact, we in Douglas County had our own demonstration on the 15th of October where about 200 people walked from downtown to the Garden Valley area. According to a recent CBS poll over 73% of Americans agree with what these protestors stand for even though they do not believe in their tactics. I know that most of us feel that our voices go unheard in Congress and with the dire condition of our economy, we are all getting very frustrated and fed up with our leadership not only in the White House, Congress but in our corporate world as well. Many of us have seen our incomes drop considerably over the past few years where we have all had to adjust. I realize that many of our money policies needed to be reformed but in the interim the feds are becoming way over zealous in their attempts to correct those policies.
Real Estate trends in Douglas County continue on the rise which is great news. The average sales price increased by +9.1% when you compare September 2011 to a year ago. ($157,600 to $144,400) However, the average sales price year to date went down slightly -0.2% from $154,100 to $153,800. We are seeing more offers written and more sales close up +17.1% (82 v.70) This is great news for our sellers which means that sales are increasing. As we all know by now, sales are a direct result of demand and price. I feel that the majority of buyers are starting to have renewed confidence in the value of purchasing a home to live and raise their family. Most buyers have decided to buy, with historically low interest rates and the willingness of sellers to cooperate in paying for some if not all of the buyers’ closing costs, making them feel better about their purchase.
Pending sales jumped a whopping +137.5% in Northeast Roseburg, followed by Myrtle Creek at +100%, then Northern Douglas County at+ 83.3% and Winston Dillard at+ 75% with the Winston area at+ 45.5% as you compare the month of August 2011 to the month of September. The biggest drop in pending sales occurred in Northwest Roseburg at -43.8%, -25.0%in Southwest Roseburg, -25.0% in Glide and down -20.0% in Southeast Roseburg. Closed sales in the month of September were at the same level they were in 2007 which is wonderful news.
Currently we have 13.1 months of inventory remaining on the market for sale in residential. This is down from last month which was 15 months and down from 2009 when it was 15.3 months and 18 months in 2010. These trends are another good sign that our local real estate business is headed in a positive direction.
Please remember all of our men and women in uniform and their families in your thoughts and prayers for the sacrificing they are making to keep us safe and free. Enjoy your Halloween and remember to “Trick or Treat” on the 31st and have fun.

admin Market News

Greetings:
Good News! I have been selected to be the chairman of the upcoming bond measure in May 2012. Umpqua Community College will request authorization from the voters of Douglas County in May 2012 to finance $40,000,000 in general obligation bonds to build a Regional Allied Health & Science Training Center, an Industrial Arts & Technology Training Center, and to repurpose vacated spaces, including the infrastructure on the campus. The bond would also enable Umpqua Community College to purchase a facility or build a facility to provide programs and services in South County. The tax rate is anticipated to be $.33 per $1000 assessed value of property in Douglas County. The median home value in Douglas County is $176,700 and at $.33 per $1000 that equates to $58.08 per year for 25 years to support the bond levy. I am often asked,“ why would the College put a bond levy to vote under the worse economic conditions in our nation, in our state and in our county? “ In my opinion, we need to do it now more than ever! We really don’t have any other choice! If we don’t do something constructive who will help us? I feel strongly that our college is the catalyst for economic growth in our community by offering students the curriculum to survive and thrive in the workplace.

The citizens of Douglas County are a very resilient and self supporting group, and with the successful passage of this bond levy, we will offer hope for not only now but into the future. To me, this is more than a bond levy or another tax, it is an investment now for the future citizens of this county. What we are asking in this bond levy reminds me of what was asked of our community in 1964 when the college was established. Douglas County was fortunate to have the conscientious and futuristic leaders back then to secure the location of a community college here. They invested then and we are being asked to invest now for bigger dividends into the future of our community. A recent study conducted by EMSI concluded that the college has a $196.7 Million impact on our local economy annually. Folks, that is huge. Please help me and the college get this measure passed in May 2012, the future of Douglas County depends on it. If you would like to help me, please call me.

Residential real estate in August 2011 compared to a year ago saw that our closed sales went up from 75 to 77. Also, compared to last month our closed sales rose as well from 65 to 77 (+18.5%). Pending sales also grew from 79 to 102 (+29.1%). However, when look at year to date to closed sales compared to this time last year we are down -4.9%. (585vs615). The average sales price has decreased by -8.6% compared to last year at this time to $152,200 vs. $155,600. As you can see, when prices decrease our sales increase. Today’s prices are where they were in August 2004 and down from the high of $251,000 in February 2007. I am very encouraged to see the upward trends in our market, which can be attributed to lower prices, lower interest rates and sellers that are willing to work toward getting their houses sold. Sellers are pricing their homes to sell rather than just to see if they sell. I often tell sellers that even if they take less in the sale of their property more than likely wherever they are moving to, they will buy at a lower price as well.

Again, please keep our brave young men and women who are serving our country along with their families in your thoughts and prayers for all their sacrifices in keeping our nation free. Also, remember those families and survivors of 9/11, ten years later. God Bless you and the USA!

admin Market News

Greetings:
Congress and the President did come to some resolution regarding the debt ceiling and cutting some of the costs of running the government. However, to take the heat off Congress and the President, they created another “Super Elite” committee made of an equal number of Republican and Democrat Senators to examine ways to trim the cost of government. That is all we need, another committee! We all know the definition of a two hump camel, “that is a horse that goes to a committee and comes out a two humped camel.” Committees are nothing more than a cop-out for they are only temporary and advisory at best with no authority to enact what they suggest. As a nation, we need to be careful that our Congress and President become nothing more than entities that study and recommend rather than comprise and enact laws. However, we must keep in mind that changes in Washington are slow and grinding for a reason, it is called a democracy.
Nationwide real estate sales continue downward in the West and the South. There has been a slight increase in sales in the Midwest and Northeast. There are a number of reasons for this, mostly attributed to the heavy flooding and tornado damage in those regions. In fact, new housing construction is up which is some good news for homebuilders. NAR chief economist, Lawrence Yun, said “there is a real tug and pull on the market. “ Most potential buyers are finding that the lender requirements have been so harsh that many of them can’t qualify to buy, even though they want or need to buy. I am often asked, “is there an answer to solving the domestic housing crisis?” There is in my opinion, re-establish the credit for all buyers (not just first time homebuyers) that was so successful 2 years ago. In the short term, it will help get rid of the surplus of houses on the market and in the long run, get people into homes to fulfill their American Dream, home ownership.
July’s real estate prices and activities continue to decline in terms of closed sales with year to date at 507, which is down from 540 a year ago, (-6.1%). Comparing June 2011 to July 2011, closed sales fell from 84 to 65 or (-22.6%). Pending sales for this same period dropped from 95-79 (-16.8%). New listings increased from 179 to 213 (+19.%). At this month’s rate of sales, the 1,172 active residential listings would last approximately 18 months which is up from 11 months last month. Even though the amount of closed sales and pending sales were down, the average sales price rose from $126,600 to $171,400 (+35.4%). This is one of largest increases in value we have seen for awhile. This is great news, slowly we are moving toward recovery. The Sutherlin-Oakland area continues to see the largest increase in value at +8.6% with the average sales price at $174,500. The Green area saw the largest decrease in value at -18.8% with average sales price at $124,300. The total market time has increased to 198 days so you see it is taking over 6 months to sell the average sales price home in Douglas County with is up from 169 days a year ago. As I said earlier the average sales price has increased to $171,400 which is where prices were in January 2005 which is 31.4% below where prices were in 2007.
Cathy and I are new grandparents for the fifth time! Yes, Clark Harris Hummel, was born to Jamie and Adam on the 17th of August. He is a good, healthy and handsome dude, which will make him a good candidate for The Marine Corps Officer Training School in about 22 years. We are extremely proud of all 5 of our grandchildren; Chance, Ashlyn, Andi, Ryann and now Clark. We are truly blessed!

admin Market News

WHAT CAN BE DONE IN WASHINGTON? We all have our own opinions about should be done to resolve the deadlock in Congress but no action is not an option. We all say that something needs to be done about reducing the uncontrolled spending at the Federal and State level, but as soon as they start talking about cutting back on this or that program, we all start whining about it. In other words, cut those programs or entitlements that don’t affect me. That is where everything gets complicated real fast. I am confident that Congress and the President will get this resolved and I am certain that it will not please everyone but that is the beauty of our democratic process. A wise old man once told me, “when people get together to resolve a conflict and the parties come out both still upset, that is good for neither party truly got everything they wanted.” Write or call you Congressmen and Congresswomen or Senators and voice your opinion, for that is how to practice our the democratic government. Remember, if you do not express your opinion, you will end up with something you won’t like. It is your right to get involved and stay involved if you want to see things change. As you know, if you don’t vote or don’t get involved, the only person you can blame is yourself.

Real Estate activity in Douglas County is following the National and State trends of decreasing prices and decreasing sales. Comparing June 2010 with June 2011, closed sales went down 92 to 84 (-9.5%), new listings fell from 247 to 179 (-27.5%) however pending sales grew from 93 to 95 (+2.1%) which is good news for pending sales lead to closed sales. As we compare June 2011 to May 2011, we see that the average sales fell from $160,000 to $126,600 (-21.2%). The average prices today for residential properties have dropped from $250,000 in 2007 to the present price of $126,600 (-49.3%). This was the most dramatic drop in prices that I have seen occur in the 38 years I have been in real estate.

I am often asked, “how long will this downturn in prices be?” I feel it will be at least 2015-2016 before we see any type of stabilization in house prices. My advice to sellers is simple, if you need to sell, you need to be at or below the average sales price in your market area. My advice to buyers is, if you want to buy, buy because if the house meets your needs or family needs, buy it. Buyers need to realize that they may not see their house appreciate in value in the short term but after they have raised their family and enjoyed living there that is comfort enough. I know my parents did not think about making money on their home when they sold, however, it provided a home for us in the neighborhood that we all enjoyed.

We go through this downturn about every 10 years and as we all know it started in 2007 so if history repeats itself, it will 2017 when properties will begin to gain in value. With all the confusion that is taking place right now in the lending business with all the new regulations it makes it more difficult for buyers to buy. Are buyers still buying, yes, however the sellers need to help with offering concessions. Those properties that are owned free and clear by the sellers are being sold on private contracts with the sellers acting as the lender. This was and now is becoming more common place. In fact when I first started in 1973 the majority of my sales were owner carried contracts.

Believe me, I am just as frustrated and angered as you are for I feel the anxiety and stress that many of you feel right now who are either buying or selling. However, there are still ways and means to get properties sold, we all have to work more closely with our buyers to make sure that happens. Many of us feel that we are in unmarked territory but let me assure you, we have been here before in the year 2000. Keep the faith and continue to move forward, developing new strategies on keeping yourself solvent. If you don’t know what do, then ask your financial advisor or your banker for help.

Please remember in your thoughts and prayers all that are serving in the armed forces and their families that are making sacrifices as well. Also remember the people and children who died in the bombing and random shooting in Norway. We all need to count our blessings and be happy and grateful with what we have rather than what we don’t have.

admin Market News

GREETINGS:
LIFE IS FULL OF EVENTS THIS TIME OF THE YEAR FROM GRADUATIONS, WEDDINGS, RECREATION, AND RELAXATION. I HAD THE DISTINCT HONOR TO GIVE THIS YEAR’S COMMENCEMENT SPEECH TO THE GRADUATING CLASS OF 2011 AT UMPQUA COMMUNITY COLLEGE. I FELT VERY HONORED AND HUMBLED TO SPEAK TO THE 500+ GRADUATES AND THEIR FAMILIES ABOUT SOME OF MY THOUGHTS ABOUT THE LAST 38 YEARS IN THE REAL ESTATE BUSINESS IN OUR COMMUNITY. MY WIFE AND I HAD GRADUATED FROM UCC IN 1969, SO IT WAS VERY INTERESTING TO REFLECT BACK WHEN I SAT IN THEIR SEATS AWAITING OUR DIPLOMAS.
IN DOUGLAS COUNTY CLOSED SALES WENT UP FROM 83 TO 94 (+13%), WHEN COMPARING MAY 2010 TO MAY 2011. PENDING SALES ALSO INCREASED FROM 72 TO 89 (+23.6%), WHICH IS A GOOD INDICTATOR OF FUTURE CLOSINGS. NEW LISTINGS FELL FROM 193 TO 189 (-2.1%), WHICH MEANS THAT WE HAVE JUST 11.5 MONTHS OF LISTING INVENTORY ON THE MARKET. THIS IS THE LOWEST LEVEL OF LISTING INVENTORY FOR THE LAST 2 YEARS. THE AVERAGE SALES PRICE CONTINUES TO GO DOWN YEAR TO DATE AND IS NOW AT $154,700 (-7.5%). THAT MEANS AGAIN, THAT THE SELLERS ARE WILLING TO ADJUST THEIR PRICES IN ORDER TO GET THEIR HOMES SOLD AND HAVE BEEN HELPING THE BUYERS WITH INCENTIVES IN ORDER TO CLOSE. IN FACT, NEARLY ALL THE SALES THAT WE PUT TOGETHER HAVE SOME SORT OF SELLERS CONCESSIONS. THE YEAR TO DATE COMPARISONS SHOW A DOWNWARD TREND WHEN COMPARING JANUARY-MAY 2010 WITH THE SAME PERIOD OF 2011 IN CLOSED SALES; 364 TO 355 (-2.5%), PENDING SALES 425 TO 384 (-9.6%) AND NEW LISTINGS DECLINED 1,120 TO 867 (-22.6%). TOTAL MARKETING TIME IN MAY 2011 HAS INCREASED TO 191 DAYS WHICH IS UP FROM 156 DAYS IN MAY 2010 (+22,4%).
THE AVERAGE SALES PRICE CONTINUES TO DROP IN OUR AREA. IN FACT, PRICES IN THE MYRTLE CREEK AREA WENT DOWN YEAR TO DATE BY -20.6%, WHICH IS THE MOST SIGNIFICANT IN OUR COUNTY. IN ROSEBURG, THE MELROSE AREA’S AVERAGE SALES PRICE DECLINED BY -13.6% WITH THE GREEN DISTRICT CLOSE BEHING AT -12.6%. HOWEVER, THE GREATER NORTHERN PART OF DOUGLAS COUNTY (DRAIN, YONCALLA AND ELKTON) PRICES INCREASED BY + 5.2% WHICH IS DUE IN LARGE PART TO A FEW LARGE RANCHES SELLING. THE GRAND TOTAL OF AVERAGE SALES PRICES IN DOUGLAS COUNTY IS A NEGATIVE -4.2% WHICH IS THE LOWEST DROP WE HAVE SEEN THIS YEAR.
WITH PRICES CONTINUING TO DROP, SELLERS NEED TO CONTINUE TO ADJUST THEIR PRICES IN LINE OF WHAT IS SELLING AND CLOSING. WE ARE ALSO ADVISING OUR SELLERS TO OFFER BUYER INCENTIVES BECAUSE NEARLY 80% OF ALL THE OFFERS THAT BUYERS ARE WRITING UP ARE ASKING FOR SELLERS TO PAY UP TO 3% TOWARD BUYERS PREPAIDS AND CLOSING COSTS AT ALL PRICE LEVELS.
REMEMBER TO KEEP OUR MILITARY AND THEIR FAMILIES IN YOUR THOUGHTS AND PRAYERS. BECAUSE OF THEIR SACRIFICES WE CONTINUE TO ENJOY OUR FREEDOMS. HAVE A WONDERFUL 4TH OF JULY AND CELEBRATE OUR COUNTRY’S BIRTHDAY IN STYLE.

admin Market News

GREETINGS:

WHAT GREAT NEWS! OSAMA bin LADEN IS DEAD! AS A FORMER COMBAT MARINE IN VIET NAM, I ADMIRE AND AM VERY PROUD OF THOSE SEALS THAT RAIDED HIS COMPOUND AND THE BRAVE YOUNG MEN AND WOMEN WHO ARE IN HARMS WAY EACH AND EVERY DAY SO THAT YOU AND I CAN ENJOY OUR COUNTRY AND ALL THAT IT HAS TO OFFER US. SAY A SPECIAL PRAYER OF THANKS THAT YOU HAVE THESE YOUNG PEOPLE DEFENDING US AGAINST THE PEOPLE WHO WANT TO SEE OUR COUNTRY DESTROYED. GOD BLESS THEM AND GOD BLESS AMERICA!
THE REAL ESTATE ECONOMY CONTINUES TO SUFFER, HOWEVER, IN THE PAST MONTH WE SAW SIGNS OF IMPROVEMENT THROUGH OUT THE UNITED STATES, ESPECIALLY IN THE WEST. HOUSING EXPERTS PREDICATE THAT ANNUAL HOME SALES WILL TOP 5+ MILLION IN 2011 WHICH IS 7-10% BETTER THAN LAST YEAR. THEY GO ON TO SAY THAT THE WE SHOULD EXPECT THE AVERAGE SALES PRICE TO CONTINUE TO DROP AS MUCH AS 20% NATIONALLY. THEY SAID THAT THIS IS DUE IN LARGE PART TO THE NUMBER OF FORECLOSURES AND SHORT SALES ON THE MARKET. AS WE ALL HAVE BEEN HEARING, THE BANKS AND LENDING INSTITUTIONS HAVE PLENTY OF MONEY TO LOAN . HOWEVER, THE MAJORITY OF BUYERS THAT ARE APPLYING FOR LOANS DO NOT MEET THE NEW REQUIREMENTS WHICH HAS BEEN HAMPERING SALES. ALSO, THE APPRAISALS ARE COMING IN LOWER THAN THE SALES PRICE IN MANY CASES. REAL ESTATE SALES HAVE BEEN CHALLENGING FOR ALL THE BUYERS, SELLERS, LENDERS AND REAL ESTATE BROKERS. UNFORTUNATELY WE ARE NOW IN THE 4TH YEAR OF THIS DOWNWARD TREND. I AM OFTEN ASKED, “WHEN DO I SEE A TURN ABOUT IN THE REAL ESTATE MARKET?” TO BE HONEST, I DON’T KNOW. HAS THIS REAL ESATE MARKET BEEN TOUGH, YES IT HAS. WE MUST ACCEPT THE FACT THAT WE NEED TO ENJOY WHERE WE LIVE AND FORGET ABOUT MAKING MONEY ON OUR HOMES THAT WE LIVE IN.
REAL ESTATE SALES ACTIVITY FOR DOUGLAS COUNTY EXPERIENCED A DECLINE IN APRIL 2011 WHEN COMPARING IT TO A YEAR AGO WITH CLOSED SALES DOWN 279 TO 261 (-6.4%) AND PENDING SALES DECLINED FROM 120 TO 78 (-35%). HOWEVER, IF WE COMPARE APRIL 2011 TO LAST MONTH’S ACTIVITY CLOSED SALES GREW FROM 67 TO 76 (+13.4%) WITH PENDING SALES DECLINGING FROM 99 TO 78 (-21.2%). THE AVERAGE SALES PRICE INCREASED FROM $152,600 (2011) V. $152,100 (2010). AS WE LOOK BACK IN TIME IN THE REAL ESTATE WORLD, THE LAST TIME THE AVERAGE SALES PRICE WAS IN THE $150,000 PRICE RANGE WAS OCTOBER 2001. OUR AVERAGE SALES PRICE WAS OVER $250,000 IN APRIL 2007 AND HAS BEEN DECLINGING SINCE THAT TIME. THE VALUE OF THE AVERAGE SALES PRICE HAS DROPPED OVER $100,000 OR A 40% DECLINE. IS THIS A GOOD TIME TO BUY? YES, YES, YES, AND YES…BECAUSE OF THE DOWNWARD TREND IN HOUSE PRICES, HIGH INVENTORY OF HOMES AVAILABLE, AND LOW INTEREST RATES THAT MAKE MANY HOMES AFFORADABLE. YES, THERE IS A SILVER LINING TO THIS HOUSING CRISES AND BOTH BUYERS AND SELLERS CAN BENEFIT. AS SELLERS TAKE LESS WHEN THEY SELL, I ADVISE THEM THAT CHANCES ARE THEY WILL BE ABLE TO PURCHASE FOR LESS WHEN THEY MOVE. TO BUYERS, I AM TELLING THEM TO BUY NOW BECAUSE OF THE REASONS STATED EARLIER.

REMEMBER THIS MEMORIAL DAY TO KEEP ALL THOSE THAT HAVE DIED SERVING OUR COUNTRY TO KEEP IT FREE AND ALL THE ACTIVE SERVICEMEN AND WOMEN WHO ARE PRESENTLY SERVING OUR COUNTY. THE FREEDOMS OF THIS COUNTRY THAT WE ALL ENJOY ARE NOT FREE!!!!!

admin Market News

GREETINGS,
HAVE YOU BEEN TO THE GAS PUMP LATELY??????? EVERYDAY THERE IS A NEW PRICE!!!!! THE OIL COMPANIES ARE BLAMING THE INVESTORS WHO ARE BIDDING UP THE PRICES BECAUSE THEY FORESEE A SHORTAGE DUE TO THE CONFLICTS IN THE MIDDLE EAST. THE CONSUMERS ARE BLAMING THE OIL COMPANIES FOR GOUGING US AT THE GAS PUMPS. THE VENDORS AT THE GAS STATIONS BLAME THE LACK OF SUPPLY AND THE NEED TO DRILL MORE.
REAL ESTATE VALUES CONTINUE ON THE DOWNWARD TREND WITH PRICES CONTINUING TO DROP IN MOST AREAS THROUGHOUT THE UNITED STATES. UNTIL WE GET THE FORECLSOURE ISSUES RESOLVED AND THE INVENTORY OF THOSE PROPERTIES SOLD WE WILL CONTINUE TO SEE THIS NEGATIVE TREND OCCURING IN THE REAL ESTATE MARKET.
I JUST ATTENDED A 2 DAY COMMERCIAL MARKETING SESSION IN OUR AREA WHERE COMMERCIAL REAL ESTATE BROKERS FROM OREGON, WASHINGTON, CALIFORNIA AND IDAHO WERE IN ATTENDANCE. THESE BROKERS PRESENTED OVER 100 PROPERTIES AND THE ONLY PROPERTIES THAT GENERATED ANY OFFERS WERE APARTMENT COMPLEXES. PEOPLE THAT ARE BEING FORCED FROM THEIR HOMES THROUGH FORECLOSURE NEED SOMEPLACE TO LIVE SO THEY ARE MOVING TO APARTMENTS. AS WE DISCOVERED THAT THERE WERE SOME PEOPLE THAT WERE NEVER SUPPOSE TO OWN PROPERTIES AND WILL PROBABLY BE RENTERS FOR THE REST OF THEIR ADULT LIVES. EVEN THOUGH I HAVE SEEN SEVERAL RECESSIONS IN MY 38 YEAR CAREER IN REAL ESTATE, I HAVE NEVER SEEN ONE GO THIS LONG AND CUT THIS DEEP INTO OUR ECONOMY. WE ARE NOW IN THE 4TH YEAR OF THIS RECESSION AND IT IS BELIEVED BY MOST ECONOMISTS THAT THIS RECESSION WILL LAST AT LEAST ANOTHER 2-3 YEARS.
DOUGLAS COUNTY’S SALES ACTIVITY EXPERIENCED A DECLINE IN MARCH OF 2011 WHEN YOU COMPARE MARCH 2010. CLOSED SALES WENT DOWN FROM 80 TO 67 (-16.3%) WITH PENDING SALES FALLING FROM 101 TO 99 (-2.0%) AND NEW LISTINGS FELL FROM 250 TO 167 (-33.2%). AT THIS MONTH’S RATE OF SALES, THE 1,026 ACTIVE LISTINGS WOULD LAST APPROXIMATELY 15.3 MONTHS. THE AVERAGE SALES PRICE FOR MARCH 2011 WAS DOWN -18.1% ($137,200 V. $167,600). THE AVERAGE SALES PRICE FOR OUR AREA IS NOW WHAT IT WAS IN 2001. WE HAVE SEEN THE AVERAGE SALES PRICE IN DOUGLAS COUNTY DROP OVER $100,000 SINCE 2007. W0W, ALL THIS HAPPENED IN FOUR SHORT YEARS.
WE HAVE BEEN ADVISING OUR SELLERS THAT THEY NEED TO REPRICE THEIR PROPERTIES IN ORDER TO GENERATE A SALE. SINCE THE FIRST OF YEAR OUR PRICES HAVE DROPPED OVER 35% AND SELLERS NEED TO LOWER THEIR PRICES OR THEY WILL NOT GET THEIR PROPERTIES SOLD. I ADVISE SELLERS THAT THEY MAY HAVE TO TAKE LESS BUT MORE THAN LIKELY WHERE THEY ARE MOVING THEY CAN ALSO BUY FOR LESS. FURTHERMORE, OUR HOMES ARE PLACES WHERE WE RAISE OUR FAMILY, LIVE IN DESIREABLE NEIGHBORHOODS AND WE DON’T NECESSARILY MAKE MONEY ON THEM. THAT IS THE REAL FACT OF LIFE. ENJOY THE SPRING AND HONOR YOUR MOTHERS ON THEIR SPECIAL DAY.

admin Market News