Condo of the Week…The Casey!

About The Casey

The Casey Condominiums in Portland, OR. was the first high rise condominium in the country to be certified by the US Green Building Council, at the Platinum level of LEED (Leadership in Energy and Environmental Design). This was the 3rd LEED Platinum project for the Gerding Edlen developers. ( Their other Platinum projects were the Gerding Theatre, the nations first Platinum historic renovation, and Oregon Health Science University Center for Health and Healing, which was the nations first and largest LEED Platinum medical building.)

With 16 stories and just 61 units, The Casey stands out from the crowd as one of Portland’s finer condominium developments. With a full time concierge and an ideal location in the heart of the Pearl District, The Casey is a place where it’s owners are proud to call home.

 

To learn more about The Casey, or to take a tour through one of the available units for sale, call me today at 503-896-8856

Next week…The Henry!

Banks make $25 billion mortgage settlement

Highlights

• Under the settlement,  servicers will provide cash for foreclosure victims.
• Individual homeowners  should receive on average $1,500 to $2,000.
• The biggest long-term  effect may be new mortgage servicing rules.

 Despite continued distress in the housing market and gridlock on Capitol  Hill, it looks like struggling homeowners will be getting a little more help in  the months ahead.

Today, Attorney General Eric Holder and Secretary of Housing and Urban  Development Shaun Donovan, along with most state attorneys general, announced a  $25 billion legal settlement of investigations into improper foreclosures,  mortgage modification misconduct and other abuses against U.S. homeowners by  mortgage servicers. The lone holdout was the state of Oklahoma, which did not  join the other 49 states included in the settlement.

In exchange for resolving those cases, the nation’s top five mortgage  servicers — JP Morgan Chase, Bank of America, Citibank, Ally Financial and  Wells Fargo, which service about two-thirds of U.S. residential mortgages –  agreed to significant concessions.

Under the settlement, servicers will provide cash for victims, fund billions  of dollars in mortgage write-downs for underwater homeowners and agree to new  guidelines for mortgage servicing designed to prevent future abuses.

Restitution for victims

About 750,000 homeowners affected by bank misconduct will receive  compensation from a $1.5 billion fund created by the deal. Individual homeowners  should receive on average $1,500 to $2,000, says Ted Gayer, a senior fellow with  the Brookings Institution.

While that may not seem like a lot for people who lost their homes because of  bank misconduct, homeowners are still free to try and recover more through the  court system. At a press conference today, Donovan stressed that the settlement  wouldn’t affect individual cases brought by homeowners.

Eligible borrowers who were foreclosed on between Jan. 1, 2008, and Dec. 31,  2011, will be notified of their right to file a compensation claim.

Fund for principal write-downs

The settlement establishes a fund of $20 billion to help struggling  homeowners, including $17 billion to reduce the mortgage balances of homeowners  who currently owe more than their houses are worth. Iowa Attorney General Tom  Miller, one of the architects of the settlement, says the fund may result in up  to $35 billion in reduced principal because officials overseeing the fund will  bargain with banks  to pay less than full value to reduce mortgage debt owed by distressed  homeowners.

Even so, if your mortgage is owned by Fannie Mae or Freddie Mac, you may be  out of luck. The funds won’t cover homeowners with mortgages held by these  entities.

“The big news here is principal reduction,” Gayer says. “But in the end, it’s  not going to end up being that substantial.”

Gayer says the final total of underwater equity written down will probably be  $17 billion to $30 billion, a fraction of the $200 billion in troubled  underwater equity in the U.S.

Officials hope the required principal reductions will provide a framework and  a push for future voluntary write-downs, but Gayer says that may be  unrealistic.

“It seems like (officials) are almost counting on this triggering a change of  behavior, which I’d be skeptical about,” Gayer says. “Banks could have always  done principal reductions before, but they haven’t for a number of  reasons.”

If you have questions about getting a mortgage in todays market, come visit the Portland condominium source, LuxuryCondosofPortland.com.

Want to begin touring some of Portland’s finest condos and lofts such as The Casey Portland, The Metropolitan or The Henry, give us a call today to set up a tour.

 

Luxury Condos are moving in Portland

December Sales

For the month of December we had about 35 sales which was equal to the

previous months sales.(approx. 200k and higher in Pearl District, South Waterfront and downtown)  Leading the way were  condos in the “Luxury” arena. This included a $2,000,000 sale at 937 Condominiums and a $1,000,000 sale at The Metropolitan Portland. The unit at The Metropolitan took a 9% hit from it’s

original listing price. This is the second unit in the last  2 months that took a pretty big hit from it’s original offering price. Last month a unit sold for over 14% off of it’s original listing.

What does this mean for Portland condos? It means some condos are still going on the market at price points that are wishful  and once again pointing out that if they had been correctly priced from the start, they may have gotten a better final price. Keep this in mind… you still have ongoing expenses as you hold onto an overpriced listing (Mrtg. payment, taxes and HOA fees etc) And the longer the listing stays on the market, the worse the offers become because buyers sense desperation in the sellers.

Remember, if you are thinking about putting YOUR Portland condo or loft on the market, give us a call and we will share with you what we feel is the very best condo marketing program in Portland! While we are committed to form strong relationships with our clients and believe this is important, we also believe that a strong relationship is not what gets a condo SOLD… it is good marketing!

“Marketing for today’s tech savvy buyers!”
Marketing Portland Condos for all their worth!

There are no Yard Signs with Condos!

Portland condominiums and lofts do not benefit from drive by traffic in the way that free standing homes do. The reason, well it’s pretty simple, there are no yard signs or directional signs with condominiums and lofts! Almost 100% of buyer traffic for condos comes through the internet!

What does this mean for someone about ready to sell their Portland condo or loft? It means the real estate agent you choose to list your condo better have great internet presence!

Now keep this in mind, agents have gotten very good in their listing presentations about making it sound like they are internet marketing experts.  In fact, I would say it’s pretty standard for most agents to say “ Your listing will be posted on 10 different websites and be seen all over the world!”  While this may sound good to the client, the reality of it is that it is more smoke and mirrors than reality!

Everybody has listings placed on the typical websites like Realtor.com, Trulia, Zillow and Craigslist just to name a few. Any good agent will have his listings on these websites so it is really nothing special that the agent is doing. The key here is…. Do they have websites that show up under the most common searches for condominiums? Serious condo buyers will search buildings…The Henry Condominiums, or they will check out the buildings HOA fee and it’s amenities…The Casey HOA fees, or Meriwether HOA fees and amenities. When you do these common searches do you see ANY of the above websites on page 1 of Google?
What you do see is OUR “Search Specific” websites… and they are everywhere! ( in the example above, the top 5 are our websites)  And it is our clients listings that will be the listings that stand out in front of the serious buyers.

Another consideration for selling your condo is if the agent you are using has an IDX fed  website…but this is another topic we will discuss later.

Coming soon…. The Metropolitan Portland… one of Portland’s finest!

$110 Million Condominium?

One57 New York

That’s right! $110,000,000. That is the listing price of the penthouse unit at One 57 in New York.

The One 57 tower eventually will rise to more than 1,004 feet when the building opens in 2013.  It would be the tallest residential development in New York to date. With the recent $88,000,000 sale at 15 Central Park, the door has been opened again for buyers dishing out big bucks for for New Yorks finest apartments. One 57 is sure to break some records for mega million dollar sales within the same building!

The penthouse is listed for $110 million at One 57 and is on the top two floors of what will be a 90-story building. It has a 57-foot-wide, double-height “grand salon” facing Central Park.

According to the documents, prices at One 57 are now up a total of $77 million, or an average of 3.9%, since the One 57 condo development plan was first submitted, with the largest increases on the most expensive condos. There are now four full-floor apartments priced at more than $50 million. Seven other lower full-floor units are listed for between $42.5 million and $48.5 million.

In terms of luxury and being the best of the best, One 57 New York is sure to make even Mr. Trump, a little envious!

Don’t have $110 Million? That’s ok! If you are looking for a luxury condo in Portland in all price ranges we can help. Call Brad Golik at 503-896-8856 to take a tour of Portlands finest!

November Condo Sales

Portland Condo sales for November

Condo sales for the month of November dropped nearly 25% from the previous month in which there were 48 sales in the Downtown, Pearl District and South Waterfront areas.  In the Portland condo market in these areas, with units priced above $200,000, there were 36 sales for November. Taking the #1 spot for Portland condo sales for the month was 937 Condominiums in the Pearl District with 5 sales. Following 937 with 3 sales was The Elizabeth Lofts with 3 sales, The Metropolitan with 2 sales and Atwater Place also with 2 sales.

An important trend to look at is the number of Portland condos and lofts that are selling at more than 5% off of their original listing price. This can happen typically, for  one of two of the most common reasons: 1st , sellers believe their condo is worth more and won’t budge on their pricing…until they HAVE to. Often leading the sellers to chase the market down and eventually selling for less than they could have if the unit would have been priced correctly from the beginning. 2nd, in competitive situations with competing agents, some agents will “Buy” the listing! What this means is that the agent will tell the sellers their unit is worth more than what a competing agent may have stated the value at. The overpriced unit will then sit on the market with very few showings and then the agent, after forming a relationship with you, will then “encourage” you to lower the price! When this happens, many times the unit becomes “stale” and the price reductions just continue. This, unfortunately, is something that is done by only a few and is a huge disservice to our industry and most importantly, a huge disservice to you, the seller.

A prime example of what can happen with a listing can be witnessed this month with a unit at The Metropolitan that recently went pending. Originally priced at $899,000, this unit was priced over $100,000 more than a similar floor plan a few stories lower. Had it been priced more competitively with the lower unit, say $40,000 more than the lower unit, it very well could have gotten an offer closer to it’s list price. Now, after chasing the market down, it  most recently went pending at $800,000 and will most likely close somewhere well below $800,000. ( Update*** This unit SOLD for $770,000… only $10,000 more than the unit 5 floors lower***) This will be between 11-14% off of the original list price.(14.3%)

If you plan on selling your condo in the near future, keep this in mind. A condo that is priced correctly will most often sell for more than if you try to over price it with the idea that you will drop the price if you don’t get interest. This strategy almost never works in your favor. In fact, a unit that is priced at the market will often deliver much better end results for the seller.

When pricing your unit, keep these thoughts in mind:

The market value of your condo IS NOT

• What you have in it
• What you need out of it
• What it was appraised for

The market value of your home IS

• Based on today’s market
• Based on today’s competition of units
• Based on today’s financing availability
• Based on today’s economic condition

As a seller, you control the price you ask and the condition of your unit. You do not control market conditions or your homes value!

New Video… Portland Luxury Condominiums

Here is our latest video!

Polish the Pearl!

Here is your chance to contribute to your neighborhood! On Saturday, October 22nd, clean up efforts for the Pearl District will begin at Peet’s coffee.

Thank you for your participation in the Pearl District Neighborhood Association’s Polish the Pearl event. For more information, please visit:

http://www.pearldistrict.org/2011/10/polish-the-pearl-make-your-neighborhood-shine/

Condo Sales for September!

Condominium sales for the month of September is pretty consistent with the monthly averages of 50 per month we have been seeing. September sales were 46 units sold in the Downtown, Pearl District and South Waterfront areas. The most expensive unit sold was a Pearl District townhouse on 11th Ave that sold for $1,175,000. The next most expensive unit to sell was at The Westerly in NW Portland that sold for $1,070,000. The sweet spot of the market, the price range where most units are selling, continues to be condos and lofts priced in the $300,000 to $400,000 range. Buildings with the most sales this month were 937  with 2 sales, Encore, Pacifica Tower, Marshall Wells and The Meriwether, each with 2 sales each. The townhomes just south of Pacifica Tower recorded 10 sales for the month!
  

The most challenging part of the market seems to be in the $600,000 to $850,000 price range. Sellers are still holding on to units that are just priced too high and not willing to adjust prices… and therefore, the units are not selling. Units that are selling in this price range are condos that are being sold by the developers such as Encore and 937. Developers are not afraid to adjust their prices to get their units sold! For those in the resale market, what we often see are owners that hold firm on their prices until they HAVE to sell. Then they often chase the market down and eventually end up selling their unit for less than they could have if they would have had it properly price from the beginning.

Where are the best values being found for Portland condominiums?  Some of the best values continue to be in the South Waterfront Condominium market. A great example of this is a recent unit at Atwater Place that sold for $780,000. This 2 bedroom unit had 2015 square feet and featured beautiful river views! While some may prefer Pearl District lofts or condos, it’s hard to argue against a price per square foot of $387 at Atwater Place compared to the $556 to $597 at 937 in the Pearl District.

If you are in search of a new luxury condominium in Portland, give us a call and we can set up a tour to get you started in a search for your new dream home!

Are we there yet? Are we there yet? Are we there yet?

More than five years after home values began their monumental slide from the heights of the real estate bubble, a recovery remains elusive.

View median home values

The latest survey from the National Association of Realtors shows the median sales price of an American home in the second quarter of this year was $171,900, down 2.8 percent compared to the same time last year.

Overall, prices fell in 109 of 151 metropolitan markets. Only New England showed an annual rise in housing values on a regional basis, rising 2 percent, to a median price of $245,600. The Midwest, South and West regions all declined, falling 5.4 percent, 2.7 percent and 3.1 percent, respectively.

Since the rapid decline in housing values slowed in 2009, home values have never added or lost more than 5 percent year-over-year.

“Median home prices have been moving up and down in a relatively narrow range in many markets, which shows a stabilization trend,” NAR Chief Economist Lawrence Yun says. “Markets showing consistent price stability or increases are those with solid labor market conditions, such as in Washington, D.C.; San Antonio; or Fargo, N.D.”

Part of the reason housing values can’t seem to get on track may be the continuing glut of distressed homes. Short sales and foreclosures accounted for 33 percent of second-quarter sales, close to last year’s figure of 32 percent. These “distressed sales” usually sell at a discount of around 20 percent. Investors appear to be snapping up many of those properties, accounting for 19 percent of homebuyers compared to 14 percent last year.

The dismal news in the Realtors’ report carried over to sales volume, which fell 12.7 percent since the same time last year. That drop may be due in part to numbers from a year ago being artificially inflated; the first-time homebuyer credit expired April 30 of last year.

The expiration of the tax credit in the second quarter may explain the smaller percentage of first-time homebuyers in the market. First-time buyers accounted for 35 percent of the overall market in the second quarter of 2011, down from 46 percent the same period last year.

Yun blames flagging home sales in part on tighter lending standards. “With home prices in a broad trough and historically low mortgage interest rates, high housing affordability conditions and rising rents could stimulate a more rapid sales recovery if banks get back into the business of lending to more creditworthy borrowers,” Yun says.

NAR President Ron Phipps seems to agree. “It’s frustrating for many creditworthy potential homebuyers to realize that when they’re ready to make a move, banks remain risk averse,” he says. “People with good jobs, long-term plans and who are willing to stay well within their means deserve an opportunity to realize their American dream of homeownership. When banks return to normal and safe but sensible lending standards, housing will be able to contribute its traditional share to economic growth.”

So like the young child on a road trip who asks “Are we there yet?”  We must learn patience.  And for those who have been patient, the rewards can be achieved as shown by the areas listed below.

The news wasn’t all bad for homeowners. Some areas showed substantial price gains. After years of being hit hard by the housing crash, Cape Coral-Fort Myers, Fla., showed a 17.9 percent rise in home values. Elmira, N.Y.; Dallas-Fort Worth-Arlington, Texas; and Grand Rapids, Mich., rounded out the list of double-digit gainers, rising 16.1 percent, 12.5 percent and 10.9 percent, respectively.

Are home values done dropping in the Portland condo market? To answer that question may be a bit tricky but you need to look at several factors. There are no new projects on the horizon so inventory issues will start to be a factor. Rentals? The rental market is hot! We are seeing increased rental fees. At some point, it becomes cheaper to buy then to rent and with rates so incredibly low, we may now be at that point! The key will be to be patient and seek good value. There are still many overpriced Portland condos and lofts in the market.  Many current sellers are just not being realistic on their selling price. The condos that are getting sold are units that were fairly priced from the start.