Monday, September 21, 2015

7 Ways a Rental Property Can Increase Your Net Worth

Below is a great article about investment properties that generate positive cash flow.  My comments can be seen in red.
If you can find a property where the rental income covers the monthly costs, then you have a winning scenario.
Have you ever dreamt about buying a few units in the condo building downtown and converting them to rentals? Or that cute home near the college campus — just for investment and a side rental profit?
While rental properties do have pesky monthly costs and the sometimes-dreaded responsibilities of acting as a landlord, buying a rental property where rental income covers your monthly mortgage payments is a winning scenario. Here are seven key ways a property can exponentially boost its value — and your net worth!
1. Rental properties create cash flow
Cash flow is one of the cornerstone principles of all real estate wealth building, and rental properties create the opportunity for cash flow. A house or a building with multiple units can generate money each month that pays more than your carrying costs, mortgage, and expenses.
Multi-unit properties such as duplexes and triplexes typically make it easier to generate positive cash flow because there are more units to rent out.  It is almost like buying multiple houses with one purchase.  If you are a first-time homebuyer, FHA may allow financing on multi-unit properties so this could a smart way to get started off with buying your first house to live in and, at the same time, building your rental portfolio.  
2. Positive cash flow pays off your mortgage early
Positive cash flow is created when rent from your tenants exceeds your property’s expenses. Put simply, it’s the money left over each month after all your property bills are paid. Having positive cash flow allows you to pay off mortgages early.
Expert tip: Work to reinvest any positive cash flow to pay down your mortgage balance as soon as possible. The sooner you can pay off your mortgage, the sooner you’ll have checks coming to you, not the bank.
Although it is great to be debt free and have no mortgage obligations, current mortgage interest rates are extremely low from a historical standpoint. This means you may be better off investing that positive cash flow elsewhere instead of paying down your mortgage balance at a faster pace.  Please consult with a licensed financial adviser about this topic to see what makes the most sense in your situation. 
3. Other people’s money pays off your mortgage
Someone else pays off your entire mortgage for you. As you use the rent money from your tenants’ payments toward your mortgage, you are actually paying down your loan amount. Keep that property rented for at least 15 to 20 years and you can own that house free and clear without a penny more out of your pocket. It’s a simple, but brilliant, concept.
This is a great one.  I often tell my friends who rent that if they aren't paying their own mortgage, they are helping their landlord pay his/her mortgage.
4. Improving the property increases its value
Making the right improvements can increase your property’s value and protect you against downward swings in the market. Look to invest in properties where you can add equity and value by making smart, cost-effective improvements.
The key words are “smart, cost-effective improvements.” The average remodeling project recoups just 62.2% of its cost in added home value.  Here is a great article on the average cost and resale value of some common remodeling projects. 
5. Market appreciation boosts your equity
Market inflation and simple supply-and-demand economics also increase home prices over time. The combination of appreciation from improvements and long-term market appreciation is a huge bonus for rental properties. It’s a profit, equity, and wealth builder.
6. Tax advantages keep more money in your pocket
Another aspect of wealth building, from an accounting standpoint: It’s “on paper.” There are tax benefits to owning rental properties, which include depreciation, rental expenses, and mortgage interest deductions you can take each year.
There are great tax benefits to owning a home.  Please consult with a legal tax professional about this topic. 
7. Increasing rents increases the value of your property
When you improve your property, you can increase your rents, which in turn increases the value of the property again. It’s a wonderful cycle. If you buy a run-down property that was poorly managed and you improve it, you not only stand to significantly boost its value and your equity, but you’ll also boost its rentability. You will be turning an underperforming rental property into a gem that attracts quality tenants and higher rents!
http://www.trulia.com/blog/buying-a-rental-property-build-wealth/

Please note:  this post is for informational purposes only and does not constitute legal, tax, or financial advise.  Please consult with a qualified representative on these issues. 

Tuesday, August 25, 2015

Top Up-and-Coming US Housing Markets

Portland, Oregon made the news again ­­recently for housing markets in the US.  This time, GOBankingRates ranked Portland 11th on a list for top 11 up-and-coming housing markets for US homebuyers.  Here is what they had to say about Portland:

11. Portland, Ore.
Arguably one of the most green cities in the U.S., if not the world, Portland is highly bike-friendly and walkable, according to WalkScore.com. It also has over 10,000 acres of public parks. Portland has a growing population of young adults and was at the forefront of the nation's current widespread microbrewery and sophisticated food truck movements.
These trends coincide with PWC and The Urban Land Institute's findings that the most walkable cities with 18-hour accessibility tend to be the most desirable for millennials -- whose numbers total around 75 million according to the Pew Research Center -- and moderately attractive to boomers, whose numbers are almost as strong.
Job growth in Portland is strong, and real estate is relatively inexpensive compared with California cities of a similar size, although prices are rising. The median home costs $368,000, up 15 percent over last year.
The list was created based off of housing and lifestyle-related data – including housing affordability, job growth, home sales, and emerging real estate trends.  Based on those metrics, I am actually surprised Portland didn’t rank higher.  Our economy has been strong in recent years, we have one of the highest net migration percentages in the country, and Portland recently ranked #2 as the Hottest Housing Market to name just a few reasons why I believe Portland should be higher on this list. 

Thursday, August 6, 2015

Portland #2 Hottest Housing Market

A report was released recently about the hottest housing markets in the US.  This report is based on the percent increase in home sales.  The Portland-metro area ranked #2 on this list!  The increase in homes sales is up 21.68% with the average home price in June at $339,482.  The real estate market here has been crazy with low supply of homes on the market and very high demand. I expected Portland to be on this list, just not as high as #2!

Photo provided by Alex Bailey - alexbaileypdx.com

Friday, July 31, 2015

National Housing Outlook and Trends

As a follow up to the most recent post, below includes the outlook/trends in the national housing market based on the Harvard's "The State of the Nation's Housing 2015" report.  

The housing market is constantly changing due to many different dynamics such as the size of new homes are getting bigger.  More duplexes and multifamily units are being built to supplement the high demand for rentals.  Furthermore, Single family homes more often are being purchased as investment (rental) properties. Also, the major changes in demographics will also influence new housing construction as two of the biggest generations (baby boomers and millennials) age and search for more suitable housing for their lifestyle. 

  • Multifamily (2+ units) starts rose steadily to nearly 360,000 units in 2014—more than in any year in the 1990s and 2000s.
  • More than 90 percent of multifamily units started last year were intended for the rental market, up from less than 60 percent in the mid-2000s.
  • Rental growth is likely to remain strong as members of the huge millennial population enter the housing market. According to the latest JCHS projections, individuals that are currently under age 30 will form over 20 million new households between 2015 and 2025, and most of these households will be renters.
  • There will also be a large increase in renters over age 65 as more members of the large baby boom generation cross this threshold over the coming decade.
  • Single-family construction starts increased 5 percent in 2014.
  • Just over one million housing units were started last year, which until the recent downturn would have been the lowest annual total in the past half-century.
  • Multifamily construction starts increased 16 percent in 2014.
  • More multifamily units were started in 2014 than in any year since 1989.
  • Up to 1 million households who lost their homes to foreclosure have already restored their credit standing, making them again eligible for FHA and other mortgages, and 1.5 million more could do so shortly.
  • While the volume of new homes built is near record lows, the median sales price of new homes hit a record high $283,000 last year.
  • The median sales price of new single family homes is now 35 percent above the median sales price of existing single-family homes.
  • Rather than signaling a broadly healthy market, however, this record-setting price is largely due to changes in the size, quality, type, and location of new homes.
  • The size (median square footage) of the typical new home increased 12.5 percent in 2009–13.
  • Although the three major Census Bureau surveys all show that household growth since 2008 has remained far below the 1.2–1.4 million annual average of the previous decade, the Housing Vacancy Survey—the timeliest of the sources— reported a marked pickup in the fourth quarter of 2014 that brought household growth for the year to 800,000, closer to its long-run potential.
  • The Joint Center for Housing Studies projects that demographics will support baseline household growth of just under 1.2 million annually in 2015–25, with the millennial generation driving much of this growth.
  • By 2035, given headship rates similar to those of previous generations, the millennials (born 1985-2004) are expected to form more than 30 million new households.
  • Over the next two decades, the number of adults aged 70 and over will increase by 91 percent, driving the demand for housing that is affordable, accessible, and provides social connection and supportive services.
  • At more than 86 million, the number of people that comprise the millennial generation has already exceeded that of the baby boomers at similar ages and will increase over the next 20 years as immigration (typically of young adults) continues to pick up.
  • In 2015–25, the typical millennial will move from the 20–24 year-old age group (where just one in every four persons has formed an independent household) to the 30–34 year-old age group (where half of the population lives independently).
  • As the labor market makes steady gains, rising employment rates among young adults will impact household growth, as employed younger adults in their late 20s and early 30s are 50 percent more likely than unemployed younger adults to head independent households.
  • Although net international immigration is still below the 1.2 million annual average in 2000–07, the pace of immigration is projected to pick up in the decades ahead, projected to reach nearly 1.4 million by 2035.
  • Minorities are expected to drive 76 percent of net household growth over the next 10 years and fully 85 percent over the next 20.
  • Homeowners continued to pare down their mortgage debt in 2014; real aggregate mortgage debt totaled about $9.4 trillion last year, a 2 percent decline from 2013 and a 13 percent drop from 2010.
  • Despite a decline in mortgage debt at the aggregate level, a higher share of older owners are entering their retirement years with mortgage debt: more than a third (38 percent) of owners aged 65 and over had mortgages in 2013, up from a little over a quarter in 2001.
  • According to Fannie Mae’s National Housing Survey for the fourth quarter of 2014, 82 percent of respondents thought that owning made more financial sense than renting. Even among renters, 67 percent agreed with this statement.
     

Friday, July 24, 2015

Rental Market Continues to BOOM

The Joint Center for Housing Studies of Harvard University recently released a report called “The State of the Nation’s Housing 2015.” You can view the report here. This type of report has been released by Harvard since 1988. The goal of these reports is to provide a current assessment of the state of the rental and homeownership markets; the economic and demographic trends driving housing demand; the state of mortgage finance; and ongoing housing affordability challenges.

Here are a few Key Facts from the report:

THE RENTAL MARKET CONTINUES TO BOOM
  • · The share of US households that rent their housing rose to a 20-year high of 35.5 percent in 2014, marking the 10th consecutive year of robust renter household growth.
  • · Households in the top half of the income distribution contributed 43 percent of the growth in renters.
  • · While single persons still make up the largest share of renter households, the numbers of renters of all family types rose over the decade.
  • · Single family homes housed more than half of the growth in renters in 2004–2013.
  • · The national rental vacancy rate dipped to 7.6 percent in 2014, its lowest point in nearly 20 years.
  • · Rents rose at a 3.2 percent rate last year—twice the pace of overall inflation.
  • · Rental growth is likely to remain strong as members of the huge millennial population enter the housing market.
  • · In 2015–25, the typical millennial will move from the 20–24 year-old age group (where just one in every four persons has formed an independent household) to the 30–34 year-old age group (where half of the population lives independently).
  • · At more than 86 million, the number of people that comprise the millennial generation has already exceeded that of the baby boomers at similar ages and will increase over the next 20 years as immigration (typically of young adults) continues to pick up.
  • · By 2035, given headship rates similar to those of previous generations, the millennials (born 1985-2004) are expected to form more than 30 million new households.
  • · The Joint Center for Housing Studies projects that demographics will support baseline household growth of just under 1.2 million annually in 2015–25, with the millennial generation driving much of this growth.
This information is based on national data. The rental market has been even stronger here in the Portland-metro area as rents have rose over 20% in the last 5 years alon­­­­e.


Right now would be a great time to purchase a rental property as rents are expected to increase at a pace above inflation.  This will make it easier to generate positive cash flow.  Also, the strong rental demand has lowered vacancy rates which means it is easier to find new tenants quickly.  These factors make it a favorable market for investment property owners as they can hike rents and find new tenants quickly.  Another great reason investment properties are a great buy right now is because of above average home appreciation which Oregon has been witnessing the last couple years. 

Monday, May 11, 2015

Home Affordable Refinance Program (HARP) Extended Through 2016

Great news, the Home Affordable Refinance Program (HARP) has been extended through 2016!  This is a refinance program that is aimed to help borrowers who are currently underwater (mortgage > home value) lower their mortgage payment by refinancing. 

This program can help borrowers who have a Fannie Mae or Freddie Mac loan that originated before May 31, 2009.  If you bought your house before then and are currently underwater, you may be able to refinance to lower your rate and avoid mortgage insurance (if you did not have mortgage insurance when you bought the home). This is an amazing program which more underwater borrowers should take advantage of.  That is why it has been extended through 2016! 

If your loan originated before May 31, 2009 and you are currently underwater; please reach out to us and we can see if you qualify for the HARP! 

Thursday, May 7, 2015

Oregon Home Values Up 2% in March

CoreLogic recently released the Home Price Index report for the month of March which showed an average increase of 2% in Oregon home values.  If you owned a $300,000 house, that would equate to an extra $6,000 in home equity!  This is the highest month-over-month appreciation in Oregon since April of 2013.  This is a big jump from February which reported an increase of 0.7%.  This jump is likely due to the increase in demand, which demand often picks up when the nicer weather rolls around (spring/summer).  It’s safe to say that the homebuying season is officially here! 

Wednesday, April 22, 2015

Portland Ranks 7th Best Market for Seller's to Negotiate

Zillow published an article yesterday on it's blog about the Top 10 markets for selling your home and Top 10 markets for buying a home.  The purpose of this article is to show where a seller has the most negotiating power in a specific market and where a buyer has the most negotiating power.  Here is the list of Top 10 Seller Markets:
  1. San Jose, CA
  2. San Francisco, CA
  3. Denver, CO
  4. Seattle, WA
  5. Dallas-Fort Worth, TX
  6. Los Angeles, CA
  7. Portland, OR
  8. Sacramento, CA
  9. Nashville, TN
  10. Boston, MA
Finishing 7th on the list was Portland which has low inventory of homes for sale.  Strong demand for well-priced homes leads to competing offers which gives the seller’s more power over negotiations.  

This is great news if you are looking to sell your home this spring or summer.  If you are looking to buy a house and want to stand out from the competition, ask us about our 21 Day Closing Guarantee which will help boost your chances at getting an accepted offer.

Friday, April 17, 2015

Is Now the Time to Sell Your Home?

The KCM Crew released an article about why now may be the perfect time to sell your home.  Here are three of the main points:

1. Demand is Strong

Foot traffic refers to the number of people out actually physically looking at homes right now. The latest foot traffic numbers show that there are more prospective purchasers currently looking at homes than at any other time in the last 12 months which includes last spring’s buyers’ market. These buyers are ready, willing and able to purchase… and are in the market right now!

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

Housing supply just dropped to 4.6 months, which is under the 6 months’ supply that is needed for a normal housing market. This means, in many areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market in the near future.

Also, new construction of single-family homes is again beginning to increase. A study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).

The choices buyers have will continue to increase. Don’t wait until all this other inventory of homes comes to market before you sell.

3. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 19.3% from now to 2019. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30-year housing expense with an interest rate under 4% right now. Rates are projected to increase by about three quarters of a percent by the end of 2015.


When looking at point #2 from a local standpoint, the Portland-metro area is below the national average with a housing supply of 3 months.  This creates even higher demand which drives up home prices with competing offers.  As seen in the below graph, a seller’s market (under six months of inventory) leads to appreciating home values.  This is great news if you are looking to sell your home this spring or summer season. 

Thursday, April 9, 2015

The Math Behind Buy Versus Rent

Zillow’s breakeven horizon shows that it is a great time to buy real estate in Oregon, especially if you are currently renting.  Each area reported in Oregon shows that homeowners would come out ahead instead of renting in less than 3.5 years.  In certain areas, that breakeven point is less than two years, such as the Portland-metro area!  Here is a quote from a recent Zillow report about buying versus renting:

“If the buy versus rent decision were about simple math, we’d likely have millions more homebuyers in the market, because the equation is tilted heavily in favor of buying,” said Zillow Chief Economist Stan Humphries. “But no matter what the numbers say, buying a home is a huge commitment. Every day, Americans make decisions to buy or rent based on any number of personal dynamics, including preference, flexibility needs, family factors and, yes, financial considerations. There is no right or wrong choice, and it’s important that America’s housing market maintains a number of affordable options for renters and buyers, no matter their preferences.”

Below is a snapshot of the Portland-metro area in Zillow’s breakeven horizon.  They are expecting strong appreciation in this market with a high (but lower than recent years) increase in rents.  Over the past couple years, Oregon has witnessed higher appreciation and higher rent inflation than they are forecasting.  However, this is good news as the market stabilizes.

You can view the Zillow’s breakeven horizon here: http://www.zillow.com/research/q4-2014-buy-rent-breakeven-9380/

Tuesday, March 31, 2015

Mortgage Interest Rates - The Crystal Ball

Today is the last day of Q1 in 2015. Before the year started, analysts expected mortgage interest rates to average around 4.1% - 4.4% for Q1. Here are those forecasts:

2015 Q1
2015 Q2
2015 Q3
2015 Q4
Fannie Mae
4.10%
4.20%
4.30%
4.40%
Freddie Mac
4.20%
4.50%
4.70%
5.00%
National Association of Realtors (NAR)
4.40%
4.70%
5.10%
5.40%
Mortgage Bankers Association (MBA)
4.40%
4.60%
5.00%
5.10%
Total Average
4.275%
4.500%
4.775%
4.975%

Fortunately, mortgage interest rates remained low throughout Q1 due to economic turmoil overseas. 2015 began with a strong move to the lowest rates seen since May of 2013. The catalyst was Europe and the introduction of European quantitative easing (QE). 
With European QE having now begun, we're on high alert for a big picture bounce in European economic data, sentiment, growth, and rates. The more it looks like such a bounce is taking hold, the greater the risk that domestic bond markets and mortgage rates will also experience a big bounce higher. There was a possibility that the bounce occurred in February, but European bonds got back to the task of improving in March. This has helped calm the domestic bond market's move toward higher rates.
While more immediate, bigger-picture disaster has been averted, it's still a highly uncertain time for global financial markets. On the one hand, some believe we're in the midst of a race among world central banks to devalue currencies and lower interest rates. Others believe that the global economy is turning a corner and rates will grind higher. That creates a lot of volatility, and volatility is bad for mortgage rates.
To sum this up, there is no magic “crystal ball” to predict mortgage interest rates. Today, the 30 year fixed mortgage is at 3.875%. Borrowers should take advantage of these low rates as mortgage interest rates are expected to rise barring domestic and non-domestic economic setbacks.

Wednesday, March 25, 2015

Buy vs Rent vs Live With Parents

Below is an article from CNN Money about buying vs renting vs living with parents. One of my kids moved back home after college to save money for buying a home.  Since paying rent can become a wealth trap, this decision helped him become financially independent and stable quicker.  By not throwing away money to rent, he was able to purchase a house with an FHA loan (3.5% down payment) about a year after moving in.  Now that he has moved out, we are both happy!


Only 13.2% of people aged 18 to 34 are homeowners, a record low number. An astonishing 31% of people aged 18 to 34 are still living with their parents. 

For graduates with student loans, living at home or with relatives is a smart strategy and the single most effective budget tool you have. It's actually a no-brainer: Why give 50% or more of your pay to a landlord when you can live at home rent-free and use that money to cut your debt, build your emergency fund and save up for a home. 
 
Assuming your finances are in good shape -- you are gainfully employed, have six months of savings in the bank and money for a down payment -- then the smartest money move you can make is buying a home now. Interest rates are rock bottom, but will start rising either late this year or next. 

Thursday, March 19, 2015

Oregon Top Moved-to State

Oregon is a phenomenal state to live in.  It might not be the hottest or driest state in the US, but it was the top moved to state in 2014 as reported by United Van Lines.  Oregon has a lot to offer for those looking to purchase a home, whether it's a primary residence or vacation home.  That's why it was #1 on the top moved-to states!  You can view their report here: http://www.unitedvanlines.com/about-united/news/movers-study-2014.

Here is their Top 5 moved-to states:
  1. Oregon
  2. South Carolina
  3. North Carolina
  4. Vermont
  5. Florida 
Here is their top 5 moved-from states:
  1. New Jersey
  2. New York
  3. Illinois
  4. North Dakota
  5. West Virginia
To add to this, the Wall Street Journal had an article earlier this week about Portland, Oregon being one of the best cities to retire in.  You can view this article here:


Tuesday, March 17, 2015

Rents Keep Rising at Fast Pace in Portland

Portland's Rents Rose at Nation's Sixth-fastest Rate

Rents in the Portland metropolitan area rose 20.45 percent over the last five years, giving the area the sixth-fastest rise in the nation, according to a new study from the National Association of Realtors.

Portland's low vacancy rates have helped fuel an apartment building boom. But many of the new units are entering the market at with rents above the median. A study by Zillow last month found that Portland-area rents rose 7 percent year over year, the seventh fastest rent rise in the country. The area's median rent was $1,587, Zillow said.

Units at the recently opened Grant Park Village apartments range from $1,194 for a studio to $2,619 for a three-bedroom unit, according to the project's website. At Hassalo on Eighth, studios will start at $1,008 and three-bedroom units will range up to $3,338. At Tupelo Alley on North Mississippi, listed rents range from $1,100 to $2,590.

Let's compare that studio for rent at about $1,200 per month.  What does $1,200 per month in rent equate to in home value with an FHA loan? 


The property taxes and hazard insurance used in these numbers was based on a factor of the sales price, .012 and .002 respectively.  

If location doesn't matter, seems like a no-brainer when comparing a home mortgage to a studio rental.  If a downpayment is the big obstacle, remember that FHA allows gift funds from a relative to cover the full downpayment, closing costs, and prepaids.
  
Happy St. Patrick's Day!

This post is for information purposes only and is not an advertisement to extend customer credit as defined by Section 12 CFR 1026.2 Regulation Z. Program rates, terms and conditions are subject to change at any time.

Tuesday, March 10, 2015

Credit Report Changes Coming

Great news!  The three major credit reporting agencies (CRAs) announced on Monday the most radical change to credit reporting in decades.  This reform is designed to help protect borrowers, provide better accuracy of information, increase the fairness and efficacy of complaint resolution, and decrease the harm done to credit histories due to medical debts.

In the mortgage industry, credit scores and the information that is reported in credit reports are very important as it can affect the:
  • Interest rate
  • Loan program or structure
  • Homeowners insurance premiums
  • Mortgage insurance premiums (if applicable)
All these factors play a part in determining what a borrower can qualify for.  These changes will help improve credit scores as a 2012 study by the Federal Trade Commission reported that 26% of participants found at least one potentially material error in their credit report and 13% received a higher credit score after successfully disputing an error.

There are four main areas that this agreement aims to reform:
  • Improving the Dispute Resolution Process
    • The agreement requires that CRAs have specifically trained employees (currently a fully automated process) review all documentation submitted by consumers claiming that incorrect information belonging to other consumers has been mixed into their files or that they are the victim of fraud or identity theft.
  • Medical Debt
    • Medical debt constitutes over half of all collection items on credit reports and often results from insurance-coverage delays or disputes.  Under the new agreement CRAs must institute a 180-day waiting period before medical debt is included in a credit report.  In addition, while delinquencies ordinarily remain on credit reports even after a debt has been paid, the CRAs will remove all medical debts from a consumer's credit report once the debt is paid by insurance.
  • Increasing Visibility and Frequency of Free Credit Reports
    • The agreement requires the CRAs to include a prominently-labeled hyperlink to the AnnualCredit Report.com website on the CRAs' homepages.  Consumers will also now be entitled to receive a second free report each year if they successfully dispute an item on their report in order to verify the accuracy of the correction.  
  • Furnisher Monitoring
    • The agreement requires the three CRAs to create a National Credit Reporting Working Group that will develop a set of best practices and policies to enhance the CRAs' furnisher monitoring and data accuracy.  This group will develop metrics for analyzing furnisher data, including: the number of disputes related to particular furnishers or categories of furnishers; furnishers' rate of response to disputes; and dispute outcomes.
Some of these changes could be in place within six months but other changes could take up to three years to implement.  The important this is the CRAs are taking a leap forward in improving the accuracy of information reported and the process of disputing errors.  This will ultimately lead to higher credit scores, which leads to better interest rates and a higher qualifying loan amount.

For more information, please visit: Mortgage News Daily

Friday, March 6, 2015

January Appreciation in Oregon

Corelogic recently released its January Home Price Index report which tracks home appreciation on a state level.  On average, Oregon home values were up 0.6% between December of 2014 and January of 2015 which is good news for homeowners.  Here is what Corelogic has reported over the last 13 months for Oregon:

Date
Month over Month Appreciation*
Jan-14
1.30%
Feb-14
1.50%
Mar-14
1.60%
Apr-14
1.80%
May-14
1.00%
Jun-14
1.20%
Jul-14
1.00%
Aug-14
0.10%
Sep-14
-0.20%
Oct-14
0.30%
Nov-14
0.40%
Dec-14
-0.20%
Jan-15
0.60%

If you bought a home at $200,000 in January of 2014, your home value may now be close to $219,000 as shown in the below example.
Average Appreciation in Oregon
 Data Provided by CoreLogic*


Date
Home Value
Month over Month Appreciation*
Additional Value this Month
Additional Value since January 2014

Jan-14
 $        200,000
1.30%

                       -  

Feb-14
 $        203,000
1.50%
 $        3,000
 $             3,000

Mar-14
 $        206,248
1.60%
 $        3,248
 $             6,248

Apr-14
 $        209,960
1.80%
 $        3,712
 $             9,960

May-14
 $        212,060
1.00%
 $        2,100
 $           12,060

Jun-14
 $        214,605
1.20%
 $        2,545
 $           14,605

Jul-14
 $        216,751
1.00%
 $        2,146
 $           16,751

Aug-14
 $        216,968
0.10%
 $           217
 $           16,968

Sep-14
 $        216,534
-0.20%
 $         (434)
 $           16,534

Oct-14
 $        217,183
0.30%
 $           650
 $           17,183

Nov-14
 $        218,052
0.40%
 $           869
 $           18,052

Dec-14
 $        217,616
-0.20%
 $         (436)
 $           17,616

Jan-15
 $        218,922
0.60%
 $        1,306
 $           18,922