Thursday, May 26, 2016

What's More Affordable?! Renting vs Buying

Hi Again Friends!

I recently had a conversation with a young lady who shared with me that she had made the move to Salem from Portland.  One of the primary reasons she shared was the ever climbing cost to rent in the Portland Metro area.

It might be hard to believe - but rents, even here in Salem, are seeing increases pretty much across the board.  And more often than not  folks, like my earlier conversation, believe that renting is more affordable than purchasing.  Or that they can't make ownership work within their monthly budget.  

Here's a quick graphic that might help dispel that worry.

Of course, you always want to run your household's income/expenses to verify these percentages - but at the very least this might be a catalyst to have a more in depth conversation with a mortgage professional to see what you really can afford!

As always, please let me know if you have any questions or if I can be of any help.



Thursday, May 12, 2016

What's Best Long Term Investment?

Hi Friends!

I wanted to share this quick graphic with you that shares some interesting information about what folks consider to be their strongest, and best long term investment.

This insight definitely goes hand in hand with the level of activity we're seeing with our Buyer clients presently.  Buyers are taking advantage of still low rates - which offers great buying power.  And with tight inventories, Sellers who opt to enter the market now are taking advantage of pent up Buyer demand!  Competition is low for those in the market right now!

As always, if you have any questions - or if The McLeod Group can help in any way, please don't hesitate to call!  Because at The McLeod Group..."We'll Get You Home!"



Thursday, May 5, 2016

Where's All The Inventory?!

Hi Friends!

Here we are again - on the cusp of what's expected to be another gorgeous Oregon summer!  And typically, that also means one of the busiest seasons for real estate.  We're definitely busy for sure - but there's a challenge we're seeing across the Salem-Keizer market (and is being felt across the nation too!)...and that's a lack of inventory!

Take a look at this quick article that offers some additional insight:

"The price of any item is determined by the supply of that item, and the market demand. The National Association of Realtors (NAR) recently released their latest Existing Home Sales Report which gives insight into today’s market conditions.

Inventory Levels & Demand

Sales of existing homes rose 5.1% month-over-month in March and are 1.5% higher than this time last year. Sales rose in all four major regions in March.
Total unsold housing inventory is 1.5% lower than March 2015 at a 4.5-month supply and remains well below the six months that is needed for a historically normal market.
Consumer confidence is at the highest level in over a decade. Pair that with interest rates still below 4%, programs available for down payments as low as 3%, and you have an attractive market for buyers.
Homes sold in March were on the market for an average of 47 days and 42% of properties sold in less than a month.

Prices Rising

March marked the 49th consecutive month of year-over-year price gains as the median price of existing homes sold rose to $210,700 (up 5.7% from 2015).

So What Does This Mean?

The chart below shows the impact that inventory levels have on home prices.

NAR’s Chief Economist, Lawrence Yun gave some insight into the correlation:
"Buyer demand remains sturdy in most areas this spring and the mid-priced market is doing quite well. However, sales are softer both at the very low and very high ends of the market because of supply limitations and affordability pressures."

Bottom Line

If you are debating putting your home on the market in 2016, now may be the time. The number of buyers ready and willing to make a purchase is at the highest level in years. Let's meet up so we can get the process started."

If you're thinking of selling your home - now is likely one of the best times to take advantage of the current conditions: less competition & ever growing pent up demand!

As always, please let me know if you have any questions or if I can be of any help!