First impressions are extraordinarily powerful, and your house is no exception. When others approach it for the first time, does it strike them as clean, inviting and well maintained? In real estate, these all-important qualities are known as “curb appeal.” If you plan to put your home on the market, or simply want it to look its best, here are some ideas that will ensure your home makes a positive first impression.

Clean, clean, clean

Start by cleaning and tidying your driveway, walkway, front yard, and front porch. Pressure washing can make concrete and aggregate surfaces look like new; pressure washers are also ideal for cleaning stains from gutters and removing moss from patios and decks.

In your yard, keep the grass neatly trimmed, and edge your paths and walkways for a meticulously groomed look. Keep the beds weed-free, and trim trees and bushes as needed. Remove and replace any dead or struggling plants. If you are selling your home, it’s a smart investment to have a professional gardener make things picture-perfect, and then you can maintain the look yourself.

On your front porch, remove any cobwebs and sweep away all traces of dirt, leaves and pet hair. Clean your light fixtures and bulbs, and be sure your windows are sparkling clean. Wipe down your front door and polish your door hardware.

Repair and update

Fix or replace loose latticework, gently tap down nail heads that have worked loose from your siding or decks, and ensure that downspouts are attached and secure. It might make sense to replace and outdated front door, or at least five it a fresh coat of paint and update the handle and kick plate.  If your exterior light fixtures were fashionable 25 years ago, they’re undoubtedly out of date now. Visit a home-improvement store and choose something more contemporary.

If your exterior paint is in good shape, light pressure washing will make it look almost new, and a fresh coat of pain on just the trim and shutters can provide a quick facelift. On the other hand, shabby paint dramatically devalues a home. If repainting is necessary, use a mainstream color that fits in with your neighborhood.

Keep it simple, clean and classic

If your home is on the market, be ruthless with clutter. Remove anything that distracts from the home itself, including children’s toys, bicycles, garden hoses and tools. You want your home to appeal to as many people as possible. When potential buyers step onto your property, they need to be able to imagine it as their own.

Create a welcoming entry

Your front porch and/or entryway provide an opportunity to make visitors feel comfortable and welcome. Beautiful pots overflowing with flowers appeal to everyone, and a trickling water feature can create a serene atmosphere. And if there’s room, a small table and chairs on the front porch are very inviting.  Finally, if your doormat has worn out its welcome, it’s time to purchase a new one.

Get a fresh point of view

It can be surprisingly difficult to view your home objectively and to see it as others do. One helpful trick is to shoot photos or video; for most people, this technique helps them see their home from a fresh perspective. By all means, ask your agent for a professional opinion. He or she can give you a checklist of recommended tasks that will strengthen your home’s curb appeal.

There’s only one chance to make a first impression

Curb appeal is more important than you might imagine. We’ve seen buyers make a snap judgment before they step out of the car. If it’s a negative first impression, that’s hard to overcome no matter how nice the home is inside. One the other hand, when a home is charming and cleaned and cared for on the outside, buyers can be so positively affected that once they’re inside, they are less critical of an outdated kitchen or a small bathroom. Strong curb appeal can help cement a positive opinion.

If you have questions about getting your home ready to sell, or are looking for an agent in your area we have professionals that can help you. Contact us here.

We are often asked, “Which is the better buy, a newer or older home?” Our answer: It all depends on your needs and personal preferences. We decided to put together a list of the six biggest differences between newer and older homes:

The neighborhood

Surprisingly, one of the biggest factors in choosing a new home isn’t the property itself, but rather the surrounding neighborhood. While new homes occasionally spring up in established communities, most are built in new developments. The settings are quite different, each with their own unique benefits.

Older neighborhoods often feature tree-lined streets; larger property lots; a wide array of architectural styles; easy walking access to mass transportation, restaurants and local shops; and more established relationships among neighbors.

New developments are better known for wider streets and quiet cul-de-sacs; controlled development; fewer aboveground utilities; more parks; and often newer public facilities (schools, libraries, pools, etc.). There are typically more children in newer communities, as well.

Consider your daily work commute, too. While not always true, older neighborhoods tend to be closer to major employment centers, mass transportation and multiple car routes (neighborhood arterials, highways and freeways).

Design and layout

If you like Victorian, Craftsman or Cape Cod style homes, it used to be that you would have to buy an older home from the appropriate era. But with new-home builders now offering modern takes on those classic designs, that’s no longer the case. There are even modern log homes available.

Have you given much thought to your floor plans? If you have your heart set on a family room, an entertainment kitchen, a home office and walk-in closets, you’ll likely want to buy a newer home—or plan to do some heavy remodeling of an older home. Unless they’ve already been remodeled, most older homes feature more basic layouts.

If you have a specific home-décor style in mind, you’ll want to take that into consideration, as well. Professional designers say it’s best if the style and era of your furnishings match the style and era of your house. But if you are willing to adapt, then the options are wide open.

Materials and craftsmanship

Homes built before material and labor costs spiked in the late 1950s have a reputation for higher-grade lumber and old-world craftsmanship (hardwood floors, old-growth timber supports, ornate siding, artistic molding, etc.).

However, newer homes have the benefit of modern materials and more advanced building codes (copper or polyurethane plumbing, better insulation, double-pane windows, modern electrical wiring, earthquake/ windstorm supports, etc.).

Current condition

The condition of a home for sale is always a top consideration for any buyer. However, age is a factor here, as well. For example, if the exterior of a newer home needs repainting, it’s a relatively easy task to determine the cost.  But if it’s a home built before the 1970s, you have to also consider the fact that the underlying paint is most likely lead0based, and that the wood siding may have rot or other structural issues that need to be addressed before it can be recoated.

On the flip side, the mechanicals in older homes (lights, heating systems, sump pump, etc.) tend to be better built and last longer.

Outdoor space

One of the great things about older homes is that they usually come with mature tress and bushes already in place. Buyers of new homes may have to wait years for ornamental trees, fruit trees, roses, ferns, cacti and other long-term vegetation to fill in a yard, create shade, provide privacy, and develop into an inviting outdoor space. However, maybe you’re one of the many homeowners who prefer the wide-open, low-maintenance benefits of a lightly planted yard.

Car considerations

Like it or not, most of us are extremely dependent on our cars for daily transportation. And here again, you’ll find a big difference between newer and older homes. Newer homes almost always feature ample off-street parking: usually a two-care garage and a wide driveway. An older home, depending on just how old it is, may not offer a garage—and if it does, there’s often only enough space for one car. For people who don’t feel comfortable leaving their car on the street, this alone can be a determining factor.

Finalizing your decision

While the differences between older and newer homes are striking, there’s certainly no right or wrong answer. It is a matter of personal taste, and what is available in your desired area. To quickly determine which direction your taste trends, use the information above to make a list of your most desired features, then categorize those according to the type of house in which they’re most likely to be found. The results can often be telling.

If you have questions about newer versus older homes, or are looking for an agent in your area we have professionals that can help you. Contact us here.

Since 1993, the Windermere Real Estate North, Inc. office in Lynnwood, Washington has been building on its commitment to providing the opportunity for homeless kids to attend summer camp. Through a partnership with YMCA Camping Services, a department of the YMCA of Greater Seattle, and funding through the Windermere Foundation, the office has provided monies for camp scholarships for youth ages seven through seventeen to attend overnight summer camp at either Camp Orkila on Orcas Island, or Camp Colman on the Key Peninsula. Over the years, scholarships have been extended to include financially distressed families as well. Without this funding, this once-in-a-lifetime opportunity simply would not exist for many deserving kids.

   
The YMCA in-resident summer camp programs run anywhere from eight to twenty-one days. There are traditional sessions for younger kids, involving round-the-clock fun, mentorship, outdoor activities, positive leadership and amazing personal growth. There are also incredibly successful teen leadership development programs specifically developed to help teens build strong positive bonds amongst themselves and their leaders, to build good solid character through core values-based programming, and to build friendships for life—all while having a tremendous amount of fun!

  
“This scholarship program is near and dear to our hearts,” said Windermere designated broker and owner, Lena Maul. Many years ago, their office began a family-oriented, office retreat weekend to YMCA Camp Orkila. The idea was to create the opportunity for their office brokers and their families to spend a weekend together, be involved in the onsite program, and to experience the actual program they support. “This has created a personal connection to the actual facility, its leadership staff, and to its programming,” said Maul. “Experiencing and understanding the focus of our donations has become critical in the ongoing commitment.” The retreat has become an annual event.

Agent donations to the Windermere Foundation are used to fund the camp scholarships. Throughout the years, over $110,000 has been pledged, raised, and donated by the brokers in the Windermere Real Estate North, Inc. office to provide this wonderful opportunity. This year, over $8,000 has been raised to once again continue supporting camper scholarships.

This scholarship program is near and dear to our hearts,” said Windermere designated broker and owner, Lena Maul. Many years ago, their office began a family-oriented, office retreat weekend to YMCA Camp Orkila. The idea was to create the opportunity for their office brokers and their families to spend a weekend together, be involved in the onsite program, and to experience the actual program they support. “This has created a personal connection to the actual facility, its leadership staff, and to its programming,” said Maul. “Experiencing and understanding the focus of our donations has become critical in the ongoing commitment.” The retreat has become an annual event.

Agent donations to the Windermere Foundation are used to fund the camp scholarships. Throughout the years, over $110,000 has been pledged, raised, and donated by the brokers in the Windermere Real Estate North, Inc. office to provide this wonderful opportunity. This year, over $8,000 has been raised to once again continue supporting camper scholarships. 

Q:  I am interested in buying an FHA short sale. I’ve heard they can be tough. Do you have any advice?  Travis in Renton, WA

A: My advice can be summed up in two words: Buyer beware.  In a non-FHA short sale, the  lender’s approval process can be quite lengthy. With an FHA loan, the federal government is the investor, and the wheels of government move very slowly. It’s not unusual to wait 9 to 12 months for a decision on an FHA short sale offer. It’s a rare buyer that has that level of patience and flexibility. There are also a number of stipulations that the FHA imposes on short sale purchases:

• The home must be owner-occupied.
• The buyer’s closing cost credit cannot exceed 1% of the purchase price.
• The second lien holder is only allowed to receive $1500. As a result, if there is a second lien the chances that the deal will close are very slim.

All that said, if you love the house and are willing to accept all the criteria – and the property only has one mortgage -  go ahead and proceed.  Just be ready to be patient.

Download PDF of Complete FHA Short Sale Program Guidelines

Martin Goldberg is a Windermere broker in Bellevue, WA and co-founder of Washington Property Solutions, a short sales negotiating company. Since 2003 he has helped more than 900 homeowners sell their homes. A Bellevue native,   Martin graduated with honors from the University of Washington Law School and is a Certified Distressed Property Expert. He loves to travel and has visited 49 of the 50 states. You can learn more about Martin here or at www.washortsales.com.

Q: I've done a short sale. How long before I will be able to buy another home?
Mike in Kirkland, WA

A: One of the biggest advantages in doing a short sale instead of foreclosure is the shorter waiting period before you are able to purchase a home in the future. For example, in certain circumstances one can be current on their payments and still do a short sale. And if a homeowner is current on their mortgage through a short sale, they can qualify for an FHA loan afterwards without any waiting period. The same option is not available following a foreclosure.

There are a number of variables that determine the length of the waiting period before you can purchase a home after a short sale, including the homeowner’s credit rating, extenuating circumstances and the guidelines of the lender you are working with.

While the timeline will vary according to each individual’s situation, here are some general guidelines on the waiting period for a loan after a short sale:

FHA loan after a short sale

• No waiting period if homeowner was current on mortgage when short sale closed
• 3 year wait if homeowner was in default at closing
• Less than 3 year wait if the homeowner has re-established good credit and can show extenuating circumstances

Fannie Mae loan after a short sale

• 2 year wait if the homeowner puts 20% down
• 4 year wait if the homeowner puts between 10% to 20% down
• 7 year wait if the homeowner puts less than 10% down
• 2 year wait if the homeowner can show extenuating circumstances and puts more than 10% down

Freddie Mac loan after a short sale

• 4 year wait before being able to get a loan
• 2 year wait if the homeowner can show extenuating circumstances

Every homeowner’s situation is different, so we always recommend that you speak with a real estate attorney who can offer advice on the legal and tax implications for your individual circumstances.  

Martin Goldberg is a Windermere broker in Bellevue, WA and co-founder of Washington Property Solutions, a short sales negotiating company. Since 2003 he has helped more than 900 homeowners sell their homes. A Bellevue native,   Martin graduated with honors from the University of Washington Law School and is a Certified Distressed Property Expert. He loves to travel and has visited 49 of the 50 states. You can learn more about Martin here or at www.washortsales.com.

We’re excited to announce that the new Windermere Real Estate Search App is now available to download in the iTunes App Store.

The Windermere Search App for iPhone enables home buyers to search for properties by MLS number, address, and GPS-based location. It also offers the ability to receive email updates, create driving tours, search for open houses, and save favorite searches/properties using myWindermere.

This free app, available for iPhones with iOS version 5 or higher, has many great features including:

• GPS based Nearby Listings & Nearby Open Houses
• Google Points of Interest near you and near a specific property
• Property search by location
• Agent and Office Search

Those with a myWindermere account also have access to:

• Driving Tours
• My Favorites
• My Saved Searches
• My Agent
• Listing Details with all the information available on the website as well as “More Like This” which shows similar listings.

Property Search

The map search shows 50 listings at one time:

“List” shows the search results in a list view:

To modify the search results you can zoom in and out while on the map, or click “Options”:

You can save the search while on the map; a myWindermere account is required just like on the web. (Sign up for your myWindermere account at www.windermere.com). 

The Property Details includes the data about the property, as well as the following features that are also on Windermere.com:

• View property images
• Ability to comment on the property, and view your agent’s comments
• Add/ Remove the property from Favorites
• Send a link to the property on Windermere.com via email
• Share a link to the property on Windermere.com via Facebook and Twitter
• Hide to exclude the property from appearing in search results
• Map this Listing which includes a link to get driving directions
• Contact links for additional information about the property

And these new features:

• “More Like This” shows the user similar listings within a one mile radius.
• “Add to Driving Tour” allows you to create a new tour to add the property to, or add to an existing Driving Tour.
• “What’s Nearby” takes you to a map view of nearby Google Points of Interest:

Driving Tours

You can add multiple properties to a Driving Tour, and have the tour route optimized by Google. You can then view the tour on a map, or in a list. In list view you can view turn-by-turn directions.

Driving Tour Map View

Driving Tour List View

Driving Tours can be emailed to your iPhone contacts using the phone’s email client:

To download the app, search for “Windermere Real Estate Search App” in iTunes App Store, or click here from your iPhone:

Rising home prices have been in the news.  The upside:  It’s a solid sign of a recovering economy.  The downside:  It is creating unrealistic optimism among underwater homeowners, causing many of them to think, “I’ll just hold off on a short sale and see what happens.” That decision could be a very costly mistake for homeowners. Here’s why.

1) While home prices are rising in some areas, they’re not rising fast enough. 

Projections for home prices in many areas of the country for 2013 indicate an increase.  But it’s a moderate increase. And there are just as many areas that are expected to see flat or decreased values through 2013. The result? Underwater homes will remain underwater for years.

2) Banks are moving more quickly on foreclosure.

In the past, homeowners often had the luxury of time.  Lenders caught unprepared for the onslaught of distressed properties often took nine months or more to begin foreclosure proceedings.  That is no longer the case. With systems and resources now in place,  the foreclosure process now is moving quickly. And as soon as a homeowner receives a Notice of Default from the lender, their options are limited.  While a short sale may still be an option, it’s a race against the clock. If the homeowner can’t execute a short sale in time, they face foreclosure. When they go to buy a home again in a few years, homeowners will have fewer options after a foreclosure vs a short sale.

3) Waiting too long may cost homeowners thousands of dollars in taxes.

As part of the fiscal cliff resolution, Congress extended the Mortgage Forgiveness Debt Relief Act …but only through December 31, 2013.

The extension prevents many homeowners who go through a short sale from being taxed on the amount of their mortgage debt that has been forgiven. Normally, debt that has been forgiven by a lender counts as taxable income.

If a homeowner wants to make sure their debt forgiveness is not counted as taxable income, their short sale must close by December 31, 2013. That means they need to get their house on the market now.

Richard Eastern is a Windermere broker in Bellevue, WA and co-founder of Washington Property Solutions, a short sales negotiating company. Since 2003 he has helped more than 900 homeowners sell their homes. A Bellevue native and a University of Washington grad, Richard is an avid sports fan and a devoted Little League and basketball coach. You can learn more about Richard here or at www.washortsales.com.

Q: I'm thinking about making an offer on a short sale. What questions should my agent and I ask the listing agent to make sure the transaction goes smoothly?

Fiona in Mill Creek, WA

A: Short sales are complicated transactions even for those highly experienced in short sale negotiation. Properties that are represented by agents with little or no short sale experience can cause considerable headaches to buyers. Here are a few questions you can ask to determine whether you want to move forward with an offer.

Who are the lien holders?

The amount of time it takes to process a short sale varies greatly from lender to lender. The listing agent should be able to tell you who the lien holders are, and the average number of days the lenders take for closing. This will help you decide whether the lender timeline matches your timeline.

Who is negotiating the sale? How many short sales have they closed? Do they have experience working with the seller’s lien holders?

Real estate agents, attorneys and mortgage brokers are the only individuals that can legally negotiate a short sale. If the negotiator is a real estate agent, they must be listing or co-listing the property – they cannot legally negotiate the sale unless they are part of the listing agreement.

Because of the complexity and ever-changing nature of short sales, you want to make sure the negotiator is highly experienced. That means they’ve closed a minimum of 100 short sales and have worked with a broad range of lenders, including the seller’s lien holders.

Are there any additional costs to negotiate the sale? If yes, who pays those costs?

If the negotiator is a real estate agent, negotiating the short sale is part of the service that they provide when they list or co-list the property. There is no additional fee to anyone.

Attorneys typically charge a fee of 1-2% of the purchase price to negotiate a short sale. The lender may be willing to pay their fee, but more and more often they’re not. The seller typically is undergoing economic hardship and doesn’t have the funds. That leaves the listing agent, buyer or buyer’s agent to pick up the attorney’s fee. Before you make an offer make sure you have in writing who is responsible for the negotiating cost.

Is there someone dedicated specifically to follow up with the lender? How often do they follow up?

For a short sale to progress smoothly it is essential that the negotiator has a system to follow up regularly with all the various lender departments that are involved with the short sale. The negotiator can never assume that just because they have sent the correct paperwork, the lender is moving forward on the sale. We call lenders daily to make sure the right people have the right information to close the sale in the shortest possible time.

Martin Goldberg is a Windermere broker in Bellevue, WA and co-founder of Washington Property Solutions, a short sales negotiating company. Since 2003 he has helped more than 900 homeowners sell their homes. A Bellevue native,   Martin graduated with honors from the University of Washington Law School and is a Certified Distressed Property Expert. He loves to travel and has visited 49 of the 50 states. You can learn more about Martin here or at www.washortsales.com.

Financial setbacks like the loss of a job or large medical bills can make it tough to make ends meet. If you find yourself behind on your mortgage payments, it helps to be proactive.  It's also good to know that federal and local agencies, even banks, are working to help those who are behind on their mortgages from going into foreclosure.

If you are behind on your mortgage, here are 5 steps you can take.     

1)  Call your lender as soon as possible.

As uncomfortable as that call can be, the problem will not go away by avoiding your lender. If you are having trouble making your payments, the sooner you contact your lender, the more options you will have. Some homeowners postpone communicating with their lender for so long, that foreclosure becomes the only option.  Don't let that happen to you.

2) Talk to a housing counselor.

The U.S. Department of Housing and Urban Development (HUD) has a list of approved nonprofit housing counselors, who will provide free counseling for homeowners who are behind on their mortgages. They'll go over options and suggest next steps. Call HUD at 888-995-4673 or visit the HUD site to find a counselor in your area.

3)  See if you can lower your mortgage payment.

You might be able to refinance or do a loan modification to make your monthly payment more affordable. There are a number of programs available depending on your circumstances. A HUD housing counselor or your lender can help you explore your options.

4)  Find out if you qualify for a short sale.

A short sale is an alternative to foreclosure when a homeowner needs to sell and can no longer afford to make mortgage payments. The lender agrees to accept less than the amount owed to pay off a loan, rather than going forward with a lengthy and costly foreclosure process.

Although every homeowner’s situation is unique, the basic criteria for qualifying for a short sale are:

• You need to sell your home.
• You owe more on your mortgage than your home is worth.
• You have a personal financial hardship that will prevent you from making future payments. (Examples of hardship include loss of job, divorce, death of a spouse and medical emergency or illness.)

In most instances, a short sale makes more sense than foreclosure. In general, when you want to obtain a loan to purchase a property in the future, more opportunities will be available to you if you do a short sale. Find out more about how short sales work.

5) See if you qualify for cash incentives tied to a short sale.

Several programs offer cash incentives to homeowners to do a short sale in order to avoid foreclosure.

The federal government's Home Affordable Foreclosure Alternatives (HAFA) program might provide $3,000 in relocation assistance to homeowners who do short sales. 

Lenders, including Chase and Bank of America, have paid significant cash incentives to encourage sellers to do a short sale and avoid foreclosure. In the past few months, we have had homeowners receive checks from their lender at closing in amounts that range up to $35,000. And these large incentives are not restricted to owners of high-end properties. The owner of a short sale property that recently sold for $164,000 received a check for $25,000. The checks are given for relocation assistance and can be used however the homeowner sees fit. There are no restrictions.

It’s important to note that the seller incentive is determined by the investor, so not every lender is paying incentives. However, if you are considering a short sale, it’s a good time to find out if you qualify.

Richard Eastern is a Windermere broker in Bellevue, WA and co-founder of Washington Property Solutions, a short sales negotiating company. Since 2003 he has helped more than 700 homeowners sell their homes. A Bellevue native and a University of Washington grad, Richard is an avid sports fan and a devoted Little League and basketball coach. You can learn more about Richard here or at www.washortsales.com.

Windermere Real Estate is proud to partner with Gardner Economics on this analysis of the Oregon and Southwest Washington real estate market. This report is designed to offer insight into the realities of the housing market. Numbers alone do not always give an accurate picture of local economic conditions; therefore our goal is to provide an explanation of what the statistics mean and how they impact the Oregon and Southwest Washington housing economy. We hope that this information may assist you with making an informed real estate decision. For further information about the real estate market in your area, please contact your Windermere agent.

Regional Economics

On an annualized basis, the Oregon counties covered in this report increased employment by 0.92 percent, or approximately 15,590 jobs, a further—albeit modest—improvement from the 0.8 percent annual growth that was discussed in our last report. On a year-over-year basis, 19 counties saw their employment base expand and five saw employment contract.

Employment growth was most pronounced in Klamath County (+2.9%). This was followed by Tillamook (+2.8%), Hood River (+2.2%) and Deschutes (+2.0%) Counties. Unsurprisingly, on an absolute basis, Multnomah County continued to contribute the largest increase in jobs with 5,800 additional positions over the past 12-month period. This was followed by Washington (3,100) and Clark (2,000) Counties.

On the negative side, job losses totaled 1,920 spread across five counties. Losses were most pronounced in Marion County, but the numbers were down by just 823 jobs. This was followed by Linn (-780) and Polk (-207) Counties. Losses in Josephine and Coos Counties were measured at 110 jobs combined.

It is pointless to compare the current employment situation to that seen at the end of the year, as the data is not seasonally adjusted and, therefore, the decline in overall employment in almost every county between December of 2012 and March of 2013 was not a surprise. However, the number of jobs lost was. Employment shrank by almost 20,000 in the time period and I will be watching very carefully to see that this was just a function of seasonality and nothing to be concerned about.

Continuing a trend that started in 2012, when compared to a year ago, the unemployment rate shrank in every county that was analyzed. This is positive and continues to suggest that the market is improving in a fundamental way.

The greatest improvement was seen in Clark County, where the unemployment rate dropped by a substantial three percent to 8.5 percent. This was followed by Tillamook (-2.0%) and Deschutes (-1.8%) Counties. The smallest improvements were seen in Benton (-0.3%), as well as Washington and Multnomah Counties, which both saw their unemployment rates reduce by 0.4 percent.

As much as this may sound like a broken record—having made this statement in previous reports—it remains true that the Oregon economy is stuck in low gear. Expansion remains well below its potential. I cannot, therefore, raise the grade from the “C-” that I gave it at the end of 2012.

I believe that the job market will continue to grow, but at a pace that is lackluster.

Regional Real Estate

In the first quarter of 2013, the region reported 8,167 units of resale housing—a modest improvement of three percent from the same period in 2012.

In 2012, the greatest growth in housing sales was seen in Cowlitz County (+61%), Wasco County (+46%), Tillamook County (+44%), Coos County (+36%) and Lincoln County (+32%). There were four counties that saw sales volumes drop when compared to Q1 2012. The most pronounced decline was seen in Jackson County, where sales dropped by 19 percent. This was followed by Deschutes (-14%), Josephine (-13%) and Klamath (-5%) Counties. As to whether this is a function of lack of supply, or lack of demand, is uncertain, but the drop was a fairly modest 255 units.

When we turn our attention to home prices, it is very pleasing to see that 21 of the markets analyzed registered year-over-year price increases (up from 15 in the last report), with just three showing declines in values from a year ago. In aggregate, the markets surveyed saw values increase by 17.9 percent over the same period in 2012.

Other than the dramatic 72.7 percent growth in the very small Clatsop County market, 15 other counties registered double-digit gains in price between March 2012 and March 2013. When compared to prices seen in the last quarter of 2012, 16 counties saw prices rise (up from 13 in our last report) and eight saw sale prices drop.

As we look at longer term trends, I continue to be pleased to see prices generally trending higher. When compared to the same period in 2012, there are now 19 counties that have seen prices rise – up from 14 in our last report. When compared to March of 2008, there are now five counties where sales prices are higher.

I am giving the market a “C+” grade for the first quarter of 2013, up from a “C” at the end of 2012. Without a doubt, inventory constraints are affecting the market, but sales and prices are still higher.

Conclusion

In 2012, Oregon’s economic performance was very similar to both 2010 and 2011. In each case there were some cautious hopes for stronger growth and more jobs as momentum was building near the end of the previous year. However, each time the regional economy has encountered headwinds that slowed growth near mid-year. The usual suspects have been flare-ups in the ongoing European recession and sovereign debt crisis, weak housing-related industries, and cuts at all levels of government. The end result in each of the past three years has been slow, lackluster growth.

As 2013 opens up, unfortunately, there is little hope that Oregon will see much immediate improvement in economic growth. Federal government cutbacks and tax increases are weighing on the economy, and the pipeline of future orders has slowed among many local manufacturing industries.

That said, and despite the weak near-term outlook, I believe that the stage is set for stronger growth going forward, should the economy manage to successfully navigate the next few months. The primary reason for optimism is the strength of balance sheets for businesses and consumers alike. With financing costs low and corporate profits high, a great deal of spending and investment stands to be unleashed as soon as some of the uncertainty that is obscuring the near-term outlook is cleared away. Although household net worth is not back to pre-recession levels, it has been growing strongly. Home prices are rising once more, and stock markets have regained all of their recessionary losses.

Looking at the housing market, I am modestly pleased with its progress so far. Rising prices and slightly higher interest rates have been a catalyst to get would-be buyers off the fence and in search of a new home.

However, we are in dire need of inventory. As I mentioned in my last report, if there are not substantial increases in listings, there will be some buyers who will become disenchanted either with the lack of choice in the market, or with the desire not to get into bidding wars on homes that actually are for sale. This remains a mid-term concern.

About Matthew Gardner

Mr. Gardner is a land use economist and principal with Gardner Economics and is considered by many to be one of the foremost real estate analysts in the Pacific Northwest.

In addition to managing his consulting practice, Mr. Gardner chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; sits on the Urban Land Institutes Technical Assistance Panel; is an Advisory Board Member for the Runstad Center for Real Estate Studies at the University of Washington and is the Editor of the Washington State University’s Central Puget Sound Real Estate Research Report.

He is also the retained economist for the Master Builders Association of King & Snohomish Counties. He has twenty-five years of professional experience in the U.K. and U.S.

He has appeared on CNN, NBC and NPR news services to discuss real estate issues, and is regularly cited in the Wall Street Journal and all local media.