Comments on: West Linn Real Estate Market Activity – May 18 – 24, 2009 http://www.move2westlinn.com/2009/05/26/west-linn-real-estate-market-activity-may-18-24-2009/ News, Statistics, and Commentary about West Linn Oregon Real Estate Wed, 23 Jun 2010 15:10:28 +0000 hourly 1 http://wordpress.org/?v=3.0 By: dj http://www.move2westlinn.com/2009/05/26/west-linn-real-estate-market-activity-may-18-24-2009/comment-page-1/#comment-683 dj Fri, 29 May 2009 17:09:43 +0000 http://www.move2westlinn.com/?p=636#comment-683 Well said, Stuart. The interest rate spike will definitely have an impact on pricing. I'm just amazed at how quickly prices are falling. It took almost 1 year for prices to go from $200+/sqft to $170/sqft, and yet it took about 4 months to go from $170 to about $130/sqft. And, all this despite the first-time home-buyers credit and the low interest rates. Given this, buyers will be very sensitive to any increases to interest rates as it ups the monthly payment, and hence will be factored into any offers that will be made to sellers (i.e. lower offers). In addition, we will continue to see homes in the <$500K range sell, while those above this threshold will linger on the market for months looking for a buyer. This is because of the $417K limit before going "jumbo". Stuart, I think your $120/sqft prediction is pretty much a reality at this point. Well said, Stuart. The interest rate spike will definitely have an impact on pricing. I’m just amazed at how quickly prices are falling. It took almost 1 year for prices to go from $200+/sqft to $170/sqft, and yet it took about 4 months to go from $170 to about $130/sqft. And, all this despite the first-time home-buyers credit and the low interest rates. Given this, buyers will be very sensitive to any increases to interest rates as it ups the monthly payment, and hence will be factored into any offers that will be made to sellers (i.e. lower offers). In addition, we will continue to see homes in the <$500K range sell, while those above this threshold will linger on the market for months looking for a buyer. This is because of the $417K limit before going “jumbo”. Stuart, I think your $120/sqft prediction is pretty much a reality at this point.

]]> By: Stuart http://www.move2westlinn.com/2009/05/26/west-linn-real-estate-market-activity-may-18-24-2009/comment-page-1/#comment-681 Stuart Wed, 27 May 2009 19:51:04 +0000 http://www.move2westlinn.com/?p=636#comment-681 Bank owned, or not, that is the price that these properties, in this market, at this particular time, could be sold for. This weeks average is now $131 per square foot. Potential buyers, sellers, and agents should seriously take note. This is a surprising drop and may well be a temporary anomaly as we trend down to what I had predicted to be $140 per square foot. However, the bond market fell over today, inevitably pushing mortgage rates up. If you could get a 30 year fixed rate mortgage at 5% last week and were looking for a $400K conforming note ($2147 P&I) with a $100K downpayment, but now rates go to 6%, your $2147 payment now only buys you a $358K mortgage, knocking $42K off the $500K total you could have paid for a house. Maybe that's already being baked in to the prices, or perhaps we have another 8% drop (or more) to go? $120 per square foot anyone? Bank owned, or not, that is the price that these properties, in this market, at this particular time, could be sold for.

This weeks average is now $131 per square foot. Potential buyers, sellers, and agents should seriously take note. This is a surprising drop and may well be a temporary anomaly as we trend down to what I had predicted to be $140 per square foot.

However, the bond market fell over today, inevitably pushing mortgage rates up.

If you could get a 30 year fixed rate mortgage at 5% last week and were looking for a $400K conforming note ($2147 P&I) with a $100K downpayment, but now rates go to 6%, your $2147 payment now only buys you a $358K mortgage, knocking $42K off the $500K total you could have paid for a house.

Maybe that’s already being baked in to the prices, or perhaps we have another 8% drop (or more) to go?

$120 per square foot anyone?

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