Debunking housing myths

Debunking housing myths

The rumors are swirling right now about the housing market.  Is it strong?  Is it cooling?  Is it still a seller’s market or is it a buyer’s market?  What does any of this mean to you?  Let’s debunk a couple of myths.  First of all, the market is still hot.  It’s not as white hot as it was but as with anything great and boring full force ahead, that can’t be sustained for too long before it slows.  For the past decade or so we have been spoiled with a white hot market and we all got used to it so now that that freight train is tapping the breaks it’s creating these rumors we’re all hearing.  The truth is, the market is strong AND home prices are still appreciating in value.  The rate of appreciation is declining but….still appreciating.  It seems that the word decline is a trigger word so whenever anyone hears declining there’s pandemonium.  End of myth 1.  

With any thriving economic market you tend to see rising interest rates.  The economy is healthy which means, rates will continue to rise.  This reality isn’t necessarily a deterrent for most buyers.  For a couple of reasons.  One being that consumers feel confident in the fact that they will have jobs to pay for their mortgages.  Another is that there are more and more financing programs available for buyers that, while still protecting them and their ability to repay, allows them to attain financing when in prior years they may not have been able to do so.  Varying buyer profiles becoming more widely accepted, in addition to consumer confidence continues to boost our economy further.  This is paired with the fact that interest rates are still incredibly low historically.  There have only been 2 times in history where rates have held steady at or below 5% and one of those times is right now.  So although, once again we have grown accustom to the recent rates of well below 5%, the fact that our economy is strong enough to support higher rates is great news for us all.  

In short, it’s still a great time to invest in real estate.  You’re going to have to pay living expenses anyway.  Why not utilize that investment and make it work for you?  Gain equity through a purchase versus renting.  If you already own a home maybe cash out some equity to pay off debts, diversify your investments in other sources or achieve additional goals like sending kids off to college or traveling.  Sell your current home and move into something that fits the life that you have now versus the circumstances you had before.  It’s always a great idea to know your options and make sure that you’re maximizing what you spend your money on.  You work to live, not live to work and no one should be throwing money into something that doesn’t work for them.  

By: Nichole Jackson – Options Financial Residential Mortgage

Tauber Team

Tauber Team

Lou & Jae Tauber
Your Trusted Real Estate Advisors
Licensed in the State of Oregon

The power of pricing.

The power of pricing.

The power of pricing. That is a great statement that we remind our sellers of constantly. A seller needs to price their house according to the market, not to their desire. Just because they want a certain price or perhaps need a certain price doesn’t mean that the house will sell for that price. We take a look at the sales, find your competition and recent sales, check the statistics, and then give an opinion as to what the house will sell for. Our opinions tend to be pretty good since we have been doing this for a combined 51 years. However, we don’t have a crystal ball to the future to know what buyers are out there, if the market will suddenly slow down or interest rates will jump; and we certainly can’t foresee the economy and what that will do. These are all factors in pricing a house. The one thing we would like to mention is to listen to your agent. If your agent has any experience, they will have a good idea as to what the market is like and what a good price would be. Even if you think the neighbors house that sold for a certain price and your house is WAY better than theirs, so your house should sell for way more than theirs, doesn’t mean it will. You may not have noticed that your house is more worn than theirs or that they updated certain features, etc. Unless you have certain facts that we may not know, we should still, most likely, be able to figure the price better. Since this isn’t a science we can only do the best we can with the facts. Most of you who have worked with us have heard Jae quote “there’s nothing wrong with a house that the price can’t fix”. This is so true.
Tauber Team

Tauber Team

Lou & Jae Tauber
Your Trusted Real Estate Advisors
Licensed in the State of Oregon

We keep talking about the market and what is happening

We keep talking about the market and what is happening

We keep talking about the market and what is happening. We have mentioned that the market is hot right now, but you have either just moved, love your home, or have no where to go if you do move. There are a lot of people in your same position. Did you know that the home improvement stores, paint stores and landscapers are very busy? People have decided to hang on to their home and do those improvements they have been putting off or remodeling to make their home more to their liking so they don’t have to move. This means that the usual spring time market that people wait for to put their home on the market or find the home of their dreams isn’t happening. The time is ripe for selling. If you hear a neighbor or friend talking about selling their house, please remember to send them our way. We will take good care of them.

Tauber Team

Tauber Team

Lou & Jae Tauber
Your Trusted Real Estate Advisors
Licensed in the State of Oregon

Very unusual weather we are having, right Uncle Al?

Very unusual weather we are having, right Uncle Al?

This winter we had horrible snow, cold, and rain. Then this summer we had record setting high temperatures. Very unusual weather we are having, right Uncle Al? Sorry everyone else, inside joke! Which brings me to house hunting. Buyers got frustrated with the competition and the weather made it not fun to go out in search of the right house. This means that the houses that were flying off the market are now sitting around a bit longer. We keep saying this, but the right price now is even more important than ever. Sellers have a tendency to feel their home is better than the one down the street so, “why can’t I ask more”? They also feel they can ask more because a buyer can always ask less and we can negotiate. The problem with that is that buyers these days don’t have that mentality. The average buyer right now will go online and do their homework. They know what house prices in the area they want are going for, what the schools are like, what the crime rate is and other demographics. They sometimes know more about the neighborhood than the seller. So seller, you are not doing yourself justice by fooling yourself about the asking price of your house. Be realistic, don’t be greedy.

Now let’s talk about buyers. I love how some buyers feel they are being too demanding or too picky. Some of them are, but some just know what they want and why they want it. We had a buyer that only wanted the living room looking out to the street, not the backyard. Couldn’t tell me why, just wanted it. That meant they passed on perfect houses and waited so long, that the prices went up and they priced themselves out of the market. Some buyers are afraid to pull the trigger thinking that something better is just around the corner. Some have specific needs and wants and that makes it sometimes easier to do a search. Knowing what people want is half the battle. Some of you seem to feel you are our worst clients ever. Trust me, we have had many worse ones and rest assured that it isn’t you because we don’t send this magazine to those people! Keep your dreams alive, but be realistic and understand that in order to purchase a house you may need to make some adjustments in your demands.

Tauber Team

Tauber Team

Lou & Jae Tauber
Your Trusted Real Estate Advisors
Licensed in the State of Oregon

Oh the times, they are a-change’n…

Oh the times, they are a-change’n…

As Bob Dylan once sang, the times, they are a-change’n. Isn’t that the truth? Lou and I were reflecting back to the time when we bought our first house. The house was only $46,000 in 1980 but the interest rate was over 16%, making our monthly payment with taxes and insurance over $900/month. Today, the first time homebuyer will pay somewhere around $300,000 and the interest rate will be about 4% (or for some, even lower!), making their payment with estimated taxes and insurance of about $1,900/month. And hopefully, salaries have crept up in the last 37 years! In 1980, we didn’t have any inspections what-so-ever, we didn’t even know they existed! We bought the house and hoped for the best. Today, the home-buyer will get a general inspection and most likely a sewer-scope, radon test, and add any other specialty inspections that the home inspector deems necessary. It’s not uncommon to get specialized inspectors to examine the furnace, chimney, fireplace, foundation, roof, electrical, or even figuring out the discoloration that could potentially be mold! We’ve mentioned how the current housing market is very tough for first time buyers. One of our strengths and favorite things to do is to work with first time buyers. We like to help and explain the process and make the journey a fun one! One of our preferred lenders, Joel Morgan of Options Financial has said that working with the Taubers is like working with your parents (only in a good way!). We are here to help you every step of the way, and we love what we do!

Tauber Team

Tauber Team

Lou & Jae Tauber
Your Trusted Real Estate Advisors
Licensed in the State of Oregon

Spring is finally here!

Spring is finally here!

Spring is finally here and now is the time to be planting your garden. Do you love your home but have no place for a garden or perhaps not the knowledge to grow a great garden? Consider a community garden. They are popping up all over the city and you probably have one closer than you think. They are a fantastic option to have instead of growing a garden in your own yard. It is also a place to meet other gardeners who share a common passion and who can even share the work load when you go on vacation.

Tauber Team

Tauber Team

Lou & Jae Tauber
Your Trusted Real Estate Advisors
Licensed in the State of Oregon