Happy Holidays!

Wishing you the best in the coming new year!

Photo by 321 Photography

Lowest Interest Rates of the Year!

The bond market has improved over the last several days and rates have moved down into the low 5’s and even the high 4’s! It's a great time to buy or refinance and get a low fixed rate loan.

The Federal Reserve on Tuesday aggressively cut its target for overnight interest rates to a record low zero to 0.25%, and said it would employ “all available tools” to dispel a year-long recession.

The surprise move to lower its target for the benchmark federal funds rate by 0.75 percentage points to up to a full point from its prior 1% put the Fed in unprecedented policy territory. Financial markets had expected the Fed to lower rates by no more than three-quarters of a point.

“The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability,” the Fed said.

The cut in the federal funds rate pushes it to its lowest level on records dating to July 1954, and the central bank said it would likely keep it at “exceptionally low levels for some time.”

Read more at Financial Week

Portland Real Estate Market Update

November Residential Highlights

Sales activity continued to slow in the Portland metro area during November.

The number of closed sales dropped 39.9% compared to last November. The 1,041 sold properties was the lowest sales total since February 1993. Pending sales also fell 31.7% compared to last November. New listings decreased 20.2%.

Comparing November 2008 to October 2008, new listings dropped 25.5% (2,687 v. 3,605). Pending sales declined 12.6% (1,108 v. 1,268) and closed sales were down 28.9% (1,041 v. 1,465).

The inventory of homes grew to a record 15 months, assuming that the 15,611 active residential listings are sold at the month’s rate of sales (1,041).

Year-to-Date

Comparing January-November of 2008 to the same time period in 2007 there have been 31.8% less closed sales and 30.5% fewer pending sales this year. Additionally, there was a 8.3% decrease in the number new listings.

Sale Prices

The average sale price for November 2008 was down 10.5% compared to November 2007, while the median sale price dropped 7%.

Month-to-month, the average sale price and median sale price are both down when compared with October levels; the average sale price dropped 4.9% ($308,300 v. $324,300) and the median sale price was down 3.6% ($265,000 v. $275,000).

For more information about the local real estate market in your neighborhood, please contact me.

Source: RMLS Market Action News

Portland Neighborhood Feature: Downtown

Bustling downtown Portland is vibrant and alive with change. There are many beautiful parks to enjoy, as well as numerous theater, music, and entertainment events, restaurants and tax-free shopping. Portland’s famous light rail system, the MAX, runs through downtown Portland in what’s called the “fareless square.” Portland’s downtown blocks are shorter than most, roughly 200ft on each side, as a result making it easier to get around by foot.

In the heart of downtown Portland is Pioneer Courthouse Square, also known as “Portland’s Living Room.” It’s a brick-covered square that takes up a city block and it’s the perfect spot for the many festivals and public concerts that take up the square during the summer. It’s a popular place for Portlanders to hang out, eat lunch or read the paper.

Lying along the elegant, tree-lined South Park Blocks, you can explore some of the city’s major fine and performing arts institutions in the Cultural District. Interspersed among these six blocks are the Portland Art Museum, Portland Center for the Performing Arts, Arlene Schnitzer Concert Hall, Northwest Film Center, Lincoln Hall, Oregon Historical Society, and some of the city’s most impressive early architecture. The Portland State University campus is just a short stroll away. With a Safeway grocery store and several new loft-style condominiums, this area is an urban-dwelling destination.

Sites of Interest: Pioneer Courthouse Square, Park Blocks, Portland Saturday Market, Portland State University, Portland Art Museum, Tom McCall Waterfront Park, Arlene Schnitzer Concert Hall, Portland Farmers’ Market.

Location: Along the Willamette River bordering Naito Parkway to the east, Burnside St to the north, I-405 to the west and south.

Typical price and style of homes: Older historic buildings recently converted into condos, new loft-style condominiums and apartments primarily centered around PSU students. The average price is $480,571 and the median price is $349,000.

You can also view more neighborhood stats at: http://www.portlandmonthlymag.com/real-estate/articles/neighborhoods-by-the-numbers/

Portland Neighborhood: Northwest District

The Northwest District is a sophisticated, yet trendy, neighborhood surrounding the very popular NW 21st and NW 23rd Avenues nestled between the West Hills and the Pearl District. This neighborhood goes by many names which can be confusing, NW 23rd, Nob Hill, Uptown, etc. It is sometimes referred to by locals as “Trendy-third.” It is also known as the Historic Alphabet District, a very appropriate name since the street signs are in alphabetical order, making it easy to find your way around. Despite the name confusion it is a neighborhood not to be missed!

Some of Portland's best gourmet and nationally-rated restaurants are located in this area. Nob Hill is also well known for its shopping. On the tree-lined streets grand old Victorian houses perch above the sidewalks, some of which have been turned into artsy shops, trendy clothing boutiques and locally-owned book stores. You'll also find great bars, spas, salons, and local markets. This is a great Portland neighborhood for strolling and people-watching. Parking spaces are hard to find so ride your bicycle, walk or take the street car.

Boundary: The district stretches west to east from the base of the West Hills to I-405 (between NW 15th and 16th Streets), and north to south from NW Nicolai St. and the Willamette River to W Burnside St.

Typical price and style of homes: Turn-of-the century Victorians, restored Craftsmen, and other large Portland homes with period details, as well as many unique apartment homes, historic converted condos and rentals. The average home price is $368,938 and the median is $289,950. Detached houses typically range from half a million to a million dollars and you can buy a few hundred square foot converted loft for as little as $100,000.

Points of Interest: City Market NW, Papa Haydn, Dove Lewis Emergency Animal Hospital, Cinema 21, Mission Theater, Couch Park, Wallace Park, Forest Park

Home shoppers rush in as interest rates fall

Telephones are ringing — and ringing — at mortgage brokers' offices around the country after this week's sharp drop in mortgage rates.

Average rates on 30-year fixed-rate mortgages fell to 5.97%, down from 6.33% the week before, according to Bankrate.com. Some brokers report rates as low as 5.25%.

Borrowers with a $200,000 loan, for example, would save about $63 a month if their interest rate dropped to 5.5% from 6%.

Credit the Federal Reserve's announcement this week that it will buy $500 billion in mortgage-backed securities held by Fannie Mae and Freddie Mac, helping the two mortgage-finance giants increase the pool of money available to banks and other lenders to make new mortgages.

"It is pretty remarkable stuff," says Bob Walters, the chief economist at Quicken Loans, where applications quadrupled Tuesday from Monday.

View full article at USA Today.