The market is showing continued signs of slowing. According to RMLS, inventory is up, days on market is up, prices are slipping. We can expect to see this trend continue as there is continued uncertainty in the mortgage market. We’ve had some better news as of late, as the feds are cutting rates in acknowledgement of the growing crisis.

I’m seeing more foreclosure and short sale listings cropping up, I’m hearing of more folks in trouble or nearing that point. It’s imperative that if you think you may be headed towards a crisis that you talk with a good loan broker that is staying abreast of the everyday changes that are taking place in the finance market. Just yesterday I had lunch with my personal loan broker, Adrian Hinckley, and he had some great news. Even though the subprime market is near non-exsistant, conventional loans are now becoming easier to obtain. FHA and the banks are starting to relax their guidelines and are offering some great rates in hopes of stimulating the market. According to his weekly email I recieved yesterday afternoon, he is offering 30 year fixed at 6.125% and 15 year fixed at 5.875%.

I’d like to offer the following advice:

For Buyers: This fall will be an extraordinary time to get out there and make a deal. We will have summer’s left over inventory, and motivated sellers that need to unload their properties. I’m not seeing all that many full price sales anymore, and the repair addendums are getting longer and longer, as buyers now have the upper hand.

For Sellers: If you are in the under $325K price range, you can expect your home to sell in a relatively short period of time, if it’s priced right and shows very well. If you are over that price range, expect to be making decisions and moving during the holidays. OR price your home under market value for a quick sale. Buyers are out looking for value right now. What I’ve been advising my listing clients to do is put some money into freshening(paint & carpet) and/or light remodeling (countertops, windows, etc) during the winter months, and be prepared to be on the market late February, early March. Most importantly, start studying the market.We can come up with a strategy for even the worst seller’s market, but it’s very difficult to come up with a fail safe strategy in a market fraught with uncertainty.

For Investors: Buy rental properties, stay away from flips, unless it’s a screamin’ deal and you are certain it has upside. Rent is rising as there is a higher demand with first time buyers being shouldered out of the market with the mortgage crisis. We can expect to see this demand for rental housing to increase as more people are hit by maturing ARMs (no pun intended).

The good news is that Portland is not nearly hard hit as most other markets across the nation. We are still appreciating, if even at a decreased pace. Areas farther out are appreciating at rates in the double digits, while most communities close-in are averaging 3-6% appreciating. But do not expect to price a home at the top of the market and hope for an out of state buyer to fall in love with it over the holidays while here visiting family. For the most part, out of state homes are not selling……

If you’d like to talk shop in person, stop by my open house this weekend, I’m baking up some delicious peanut butter chocolate chip cookies!

Opinions expressed in this article are the opinions of author, and not to necessarily the opinions of Meadows Group Inc.
All rights reserved on all original content, non-original content is given credit | Michelle Berry | 2009