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What Impact Will the New Tax Code Have on Home Values?

by Amy McLeod Group

Every month, CoreLogic releases its Home Price Insights Report. In that report, they forecast where they believe residential real estate prices will be in twelve months.

Below is a map, broken down by state, reflecting how home values are forecasted to change by the end of 2018 using data from the most recent report.

As we can see, CoreLogic projects an increase in home values in 49 of 50 states, and Washington, DC (there was insufficient data for HI). Nationwide, they see home prices increasing by 4.2%.

How might the new tax code impact these numbers?

Recently, the National Association of Realtors (NAR) conducted their own analysis to determine the impact the new tax code may have on home values. NAR’s analysis:

“…estimated how home prices will change in the upcoming year for each state, considering the impact of the new tax law and the momentum of jobs and housing inventory.”

Here is a map based on NAR’s analysis:

Bottom Line

According to NAR, the new tax code will have an impact on home values across the country. However, the effect will be much less significant than what some originally thought.

Contact The McLeod Group Network for all your real estate needs! 971.208.5093 or mcleodgroupoffice@gmail.com.

By: KCM Crew

Thinking of Selling? Now is the Perfect Time

by Amy McLeod Group

It is common knowledge that a great number of homes sell during the spring-buying season. For that reason, many homeowners hold off on putting their homes on the market until then. The question is whether or not that will be a good strategy this year.

The other listings that do come out in the spring will represent increased competition to any seller. Do a greater number of homes actually come to the market in the spring as compared to the rest of the year? The National Association of Realtors (NAR) recently revealed the months in which most people listed their homes for sale in 2017. Here is a graphic showing the results:

The three months in the second quarter of the year (represented in red) are consistently the most popular months for sellers to list their homes on the market. Last year, the number of homes available for sale in January was 1,680,000.

That number spiked to 1,970,000 by May!

What does this mean to you?

With the national job situation improving, and mortgage interest rates projected to rise later in the year, buyers are not waiting until the spring; they are out looking for homes right now. If you are looking to sell this year, waiting until the spring to list your home means you will have the greatest competition amongst buyers.

Bottom Line

It may make sense to beat the rush of housing inventory that will enter the market in the spring and list your home today.

Let’s discuss your options! 971.208.5093 or mcleodgroupoffice@gmail.com.

By: KCM Crew

Exploring Salem Oregon: WINE 101

by Amy McLeod Group

Saturday, January 13, 2018
2:00 PM to 3:30 PM

Dive deeper into the understanding of what it takes to make wine.  Come out to the vineyard for an in-depth look at what we do at the winery and then taste wine.  $10 admission.

Chateau Bianca Winery
17485 Highway 22
Dallas, OR 97338

Call 503-623-6181 for more information.

Event Website

Courtesy of Amy McLeod, The McLeod Group Network

The Impact of Tight Inventory on the Housing Market

by Amy McLeod Group

The housing crisis is finally in the rearview mirror as the real estate market moves down the road to a complete recovery. Home values are up, home sales are up, and distressed sales (foreclosures and short sales) have fallen to their lowest points in years. It seems that the market will continue to strengthen in 2018.

However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. While buyer demand looks like it will remain strong throughout the winter, supply is not keeping up.

Here are the thoughts of a few industry experts on the subject:
 

National Association of Realtors

“Total housing inventory at the end of November dropped 7.2 percent to 1.67 million existing homes available for sale, and is now 9.7 percent lower than a year ago (1.85 million) and has fallen year-over-year for 30 consecutive months. Unsold inventory is at a 3.4-month supply at the current sales pace, which is down from 4.0 months a year ago.”

Joseph Kirchner, Senior Economist for Realtor.com

“The increases in single-family permits and starts show that builders are planning and starting new construction projects, that’s a good thing because it will help to relieve the shortage of homes on the market.”

Sam Khater, Deputy Chief Economist at CoreLogic

Inventory is tighter than it appears. It’s much lower for entry-level buyers.”

Bottom Line 

If you are thinking of selling, now may be the time. Demand for your house will be strong at a time when there is very little competition. That could lead to a quick sale for a really good price.

 

Contact The McLeod Group Network to find out how much your home is worth!  971.208.5093 or mcleodgroupoffice@gmail.com.

 

By: KCM Crew

712,000 Homes in the US Regained Equity in the Past 12 Months!

by Amy McLeod Group

CoreLogic’s latest Equity Report revealed that “over the past 12 months, 712,000 borrowers moved into positive equity.” This is great news, as the share of homeowners with negative equity (those who owe more than their home is worth), has dropped more than 20% since the peak in Q4 of 2009 (26%) to 4.9% today.

The report also revealed:

  • The average homeowner gained approximately $14,900 in equity during the past year.
  • Compared to Q3 2016, negative equity decreased 22% from 3.2 million homes, or 6.3% of all mortgaged properties.
  • U.S. homeowners with mortgages (roughly 63% of all homeownershave seen their equity increase by a total of $870.6 billion since Q3 2016, an increase of 11.8%, year-over-year.

The map below shows the percentage of homes by state with a mortgage and positive equity. (The states in gray have insufficient data to report.)

Significant Equity Is on The Rise

Frank Nothaft, Chief Economist at CoreLogic, believes this is great news for the “housing market.” He went on to say:

“Homeowner equity increased by almost $871 billion over the last 12 months, the largest increase in more than three years. This increase is primarily a reflection of rising home prices, which drives up home values, leading to an increase in home equity positions and supporting consumer spending.”

Of the 95.1% of homeowners with positive equity in the U.S., 82.9% have significant equity (defined as more than 20%). This means that more than three out of four homeowners with a mortgage could use the equity in their current home to purchase a new home now.

The map below shows the percentage of homes by state with a mortgage and significant equity.

Bottom Line

If you are one of the many homeowners who are unsure of how much equity you have in your home and are curious about your ability to move, let’s meet up to evaluate your situation. McLeod Group Network, 971.208.5093 or mcleodgroupoffice@gmail.com.

By: KCM Crew

Exploring Salem Oregon: Sunday Chess Club - Taproot Lounge and Café

by Amy McLeod Group

Sunday, January 7, 2018 - 7:00 PM to 10:00 PM

Join the Taproot crew every Sunday for Chess Club. Play casual or competitive. You can even challenge Taproot's owner to a five-minute speed match and if you conquer the elusive Topher, he'll buy you a beer. Free admission.

Taproot Lounge & Cafe
356 State St. 
Salem, OR 97301

503-363-7668

www.facebook.com/events/330554710704380/

Courtesy of Amy McLeod, The McLeod Group Network

The Benefits of Homeownership Go Beyond the Financial

by Amy McLeod Group

Homeownership is a major part of the American Dream. As evidence of that, 91% of Americans believe that owning a home is either essential (43%) or important (48%) to achieving that “dream.” In a market where some people may be unsure about the benefits and possibilities of buying a home, it is important that we remember this.

Homeownership is NOT just about the money. In fact, some of the major benefits are non-financial. Here are a few of those benefits as per the National Association of Realtors:

  • Consistent findings show that homeownership does make a significant positive impact on educational achievement.
  • Several researchers have found that homeowners tend to be more involved in their communities than renters.
  • Early studies of homeownership and health outcomes found that homeowners and children of homeowners are generally happier and healthier than non-owners, even after controlling for factors such as income and education levels that are also associated with positive health outcomes and positively correlated with homeownership.

Bottom Line

Homeownership means something more to people and their families than just the financial considerations.

Let The McLeod Group Network help you achieve your dream of homeownership. 971.208.5093 or mcleodgroupoffice@gmail.com.

By: KCM Crew

Ah, January. The time of new beginnings, new resolutions, and, in most of the country, a seemingly endless stretch of cold and gloom. We get it: You just want to hibernate, catch up on "The Crown," and scroll Instagram. But before you take up permanent residence on the couch (or treadmill, if you're on that kick), take heed: This is the absolute worst time to have a major home maintenance problem.

"Catastrophic issues tend to happen in the winter—and when those occur, nine times out of 10 it's due to failing to plan," says Janet O'Dea, owner of Powers Plumbing in San Diego. "Taking some time to anticipate and be ahead of maintenance issues throughout the year takes a lot of pressure off."

 

 
 

We couldn't agree more. And that's why we've done the heavy lifting for you, season by season, so you can avoid the pain (and expense) of costly home repairs. Now that's a resolution we can get behind!

1. Get ready for (more) winter storms

In most parts of the country, 'tis the season for freezing rain, sleet, and blizzards. Ensure you're ready for the next big storm before it strands you.

DIY: First, make sure you have a working generator, and keep a stash of batteries for flashlights and lanterns at the ready. 

"Heavy snows and ice can take down power lines and leave you in the cold and dark," says Krystal Rogers-Nelson of home safety and security company SafeWise.

Also a must-have: a solar-powered or battery-operated radio to keep you up to date on news in case cellphone reception goes out. Check the condition of your snow shovels, gloves, and window scrapers, and store snowy weather supplies near the door where you can access them easily.

We also love this novel tip from home maintenance expert Laura Gaskill: Mark the sides of your driveway and other key places with reflective poles, to help snow plowers see where to go.

Finally, a buildup of heavy snow on tree limbs can make them more prone to breaking, Gaskill notes, so brush snow off tree limbs after each big snowfall, using a broom to extend your reach.

Call in the pros: If a limb is buckling, have it removed as soon as the weather permits—expect to spend $75 to $150, depending on how much of the tree you lost.

2. Clean your oven

"Homemade food can really contribute to winter coziness at home, but unfortunately, the oven and its vents can easily turn into the dirtiest feature in the kitchen because they collect a lot of grime and grease," says Jasmine Hobbs of London Cleaning Team.

And over time, built-up grease can cause your appliance to use more power while turned on.

DIY: To clean your hood filters, fill a sink or a bucket with boiling water; add a quarter-cup baking soda and some liquid dish soap. Mix well and submerge the filters. Let them soak for a couple of minutes and rinse thoroughly. If your oven has a self-cleaning function, use it at least once a month. If not, apply a paste of baking soda and water, then scrub.

Call in the pros: If you never clean your oven and the thought of all that stuck-on grease is putting you in panic mode, you can call a reputable cleaning service. Most pro cleaners will charge a flat rate for whole-house cleaning and will include the oven; you'll spend between $115 and $236 for the whole kit and caboodle, depending on where you live and your home's grime level.

3. Inspect the property

Yes, it's cold and the last thing you probably want to do this time of year is walk around outside. But trust us, it's time well-spent.

"Home issues that are more susceptible in the winter—such as frozen pipes, window and door drafts, and the condition of a home’s gutters—can be easily detected during this time of year," says Patrick Knight of WIN Home Inspection.

DIY: Most big inspection issues are best left to a pro, but while you're taking stock, check off this easy to-do: Change the batteries in your smoke detectors and carbon monoxide detectors. You should be doing this regularly, but it's even more important in the winter months, when windows tend to be closed and heaters are running overtime.

Call in the pros: Consider spending some of that Christmas cash on a professional inspection, especially if it's been a while. Strong winter winds and cold temps help inspectors detect drafts and insulation failures. Plus, winter gives inspectors a better idea of how the home structure and roof holds with the extra weight of snow and ice. And fireplaces and heating systems are more active during the winter months, making identifying problems easier.

It's also a great time to check out crawl spaces and attics, which can easily reach temperatures of 120 degrees Fahrenheit or more in the summer months, making safe inspections nearly impossible.

Expect to spend upward of $300—and be sure you select a licensed, insured, and experienced pro for the job.

4. Take care of your wood floors

Winter can wreak major havoc on wood floors: Rock salt can stain wood (and its rough crystals can scratch floors), while indoor heaters can dry it out, causing problems like shrinkage and cracked floorboards.

DIY: Avoid using vinegar to remove stains, advises Dave Murphy of N-Hance Wood Refinishing. Instead, place rugs and mats in the highest-traffic areas. To lock moisture in the air and prevent heat-related damage to your floorboards, run a humidifier. And, of course, engage in routine sweeping, dusting, and mopping.

"This will also prevent particle and salt buildup," Murphy says. "And remember to mop with the boards, and not against the grain."

Call in the pros: In the end, winter's effects may be too harsh to manage on your own. Consider professional refinishing, which averages between $1.50 and $4 per square foot.

5. Block drafts

With temperatures down and indoor heaters working overtime, you'll know if your weatherstripping isn't up to par. And over time, all that unwanted cold air can increase your energy bill in a major way.

DIY: If the cold air is getting in under a door, pick up a door sweep at a local home improvement store. This doodad is typically made of hard plastic and attaches to the bottom of your door, sealing any gaps.

Call in the pros: Feel like you're wasting way too much energy during the winter months? Conduct an energy audit. A trained auditor can assess your home’s current energy efficiency and give you a list of recommended improvements. You can also find instructions for a DIY energy audit at Energy.gov.

6. Alleviate allergens

An estimated 50 million Americans live with allergies, according to the Asthma and Allergy Foundation of America, and many of their conditions are exacerbated by indoor allergens such as dust mites and animal dander.

The main sources of indoor allergens? Pets top the list, of course, but other culprits include wall-to-wall carpet, soft furniture, stuffed toys, bedding, damp areas, indoor plants, mattresses that aren't in allergen-resistant covers, and pillows and bedding that can't be washed in hot water.

DIY: Clean dust from your blinds and ceiling fans using your vacuum's attachment kit, and make it a regular practice to vacuum all upholstery and carpets.

Once a week, wash your bedding in hot water (at a temperature hotter than 130 degrees), and consider investing in an air purifier with a HEPA filter, which can filter almost 98% of allergen particles in the air, according to the AAFA.

Another good buy?  A zippered allergen-resistant cover for your mattress, which the AAFA says is even more effective than an air purifier at removing indoor allergens.

Call in the pros: For your living room upholstery and other soft furniture, consider professional steam cleaning. Expect to spend upward of $200.

Let The McLeod Group Network assist you with all your home buying and home selling needs. 971.208.5093 or mcleodgroupoffice@gmail.com.

By and photo credit: Holly Amaya, Realtor.com

Exploring Salem Oregon: Family-Friendly New Years Eve!

by Amy McLeod Group

Bar not really your scene? These events pack in all of the New Year's Eve fun and are family-friendly!  

Salem on Ice NYE PartyBring in the new year while ice skating to a DJ, with complimentary sparkling cider toast, games in the party area, beer, cider and wine for purchase culminating with a midnight balloon drop. 
When: 10 p.m. to midnight 
Where: Riverfront Park, Salem. 
Cost:
 $25 and $20 for children.

Noon-Year Eve CelebrationIf your kids can't stay up until midnight to ring in the new year, celebrate at noon with crafts and activities, a photo booth and a balloon drop. 
When: 10 a.m. to 1 p.m. 
Where: Gilbert House Children's Museum, 116 Marion St. NE Salem. 
Cost: Free with museum admission, $8 for ages 3 to 59, $4 for ages 1 to 2, $6 for 60 and older, free for those younger than 1 and Gilbert House members.

All-Ages Improv Comedy New Years CelebrationLaugh your way into 2018 with Capitol City improvisers. 
When: 8 p.m. 
Where: Capitol City Theater, 210 Liberty St. SE No. 150, Salem. 
Cost: $13 at tickets.vendini.com, $15 at the door.

NYE at Northgate: A ticket to this party includes unlimited bowling, nachos and soft drinks, plus prizes throughout the night and a toast at midnight. The theme is fantasy/medieval, and it is encouraged to dress up. 
When: 9 p.m. to 1 p.m. 
Where: 
Northgate Bowling, 2380 Northgate Ave. NE, Salem. 
Cost: $25

Courtesy of Amy McLeod, The McLeod Group Network

There’s More to a Bubble Than Rising Home Prices

by Amy McLeod Group

What truly causes a housing bubble and the inevitable crash? For the best explanation, let’s go to a person who correctly called the last housing bubble – a year before it happened.

“A bubble requires both overvaluation based on fundamentals and speculation. It is natural to focus on an asset’s fundamental value, but the real key for detecting a bubble is speculation…Speculation tends to chase appreciating assets, and then speculation begets more speculation, until finally, for some reason that will become obvious to all in hindsight, the ‘bubble’ bursts.

I have taken to calling the housing market a ‘bubble’.”

– Bill McBride of Calculated Risk calling the bubble back in April 2005

Where do we stand today regarding speculation?

There are two measurements that are used to determine the speculation in a housing market:

  1. The number of homes purchased by an investor and
  2. The number of homes being flipped (resold within a twelve-month period)

As compared to 2005, investor purchases are down dramatically (from 23% to 13%) and so is flipping (from 8.2% to 5.7%). McBride explains:

“There is currently some flipping activity, but this is more the normal type of flipping (buy, improve and then sell). Back in 2005, people were just buying homes and letting them sit vacant – and then selling without significant improvements. Classic speculation.”

What are the experts saying about speculation in today’s market?

DSNews recently ran an article which asked two economists to compare the speculation in today’s market to that in 2005-2007. Here is what they said:

Dr. Eddie SeilerChief Housing Economist at Summit Consulting:

“The speculative ‘flipping mania’ of 2006 is absent from most metro areas.”

Tian LiuChief Economist of Genworth Mortgage Insurance:

“The nature of housing demand is different as well, with more potential homeowners and far fewer speculators in the housing market compared to the 2005-2007 period.”

And what does McBride, who called the last housing bubble, think about today’s real estate market?

Sixty days ago, he explained:

“In 2005, people were just buying homes and letting them sit vacant – and then selling without significant improvements. Classic speculation. And even more dangerous during the bubble was the excessive use of leverage (all those poor-quality loans). Currently lending standards are decent, and loan quality is excellent…

I wouldn’t call house prices a bubble – and I don’t expect house prices to decline nationally like during the bust.”

Bottom Line

Speculation is a major element of the housing bubble formula. Right now, there are not elevated percentages of investors and house flippers. Therefore, there is not an elevated rate of speculation.

Let The McLeod Group Network assist you with all your home buying and home selling questions. 971.208.5093 or mcleodgroupoffice@gmail.com.

By: KCM Crew

Displaying blog entries 1-10 of 153

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Photo of The McLeod Group Real Estate
The McLeod Group
Keller Williams Capital City
1900 Hines St SE #220
Salem OR 97302
971-208-5093
Fax: 971-599-5229

**Disclaimer: Amy McLeod, and her team, do not initiate, process, or service mortgages.  And provide this information only as a service.  You should confirm information here with your Licensed Mortgage Lender.