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A QUARTERLY PUBLICATION
Lee EckrothReal Estate Advisor,
Broker, RealtorCNE, C-RIS, e-PRO, GRI
Cell: 541-760-4742
Efax: 541-610-1564
www.Talk2Lee.comSTATE OF THE MARKET: January through MarchThe Corvallis marketplace is alive and well. We are
seeing many homes coming on the market and getting
multiple offers. There are lots of first time home
buyers and buyers wanting to step-up from their first
home. Our biggest challenge, at this time, is that we do
not have enough quality listings available for the
number of people ready to purchase.
The statistical data indicates we are in line with 2014
home sales. That being said, one “X” factor is that we
have a tremendous number of buyers in the wings
awaiting more homes to come on the market. There are
quite a number of sellers getting ready to bring their
homes to market. We will see the true results of these
shadow buyers and sellers in our results that will be
forthcoming in July and October, as our traditional
highest closing months are between June and
September.
As you review this information – please consider that
every house, street, neighborhood, city, and
marketplace is different. Even locations within a
neighborhood can result in different values and
desirability. If you are interested in a Real Estate
Review – just to know what is happening or you are
interested in buying or selling – please let me know!
Vol. 1, No. 2 APRIL 2015E m p o w e r e d w i t h K n o w l e d g e
I n s p i r e d t o A c t i o n
INSIDE THE PULSE
Pg 1:
State of the Market:
Jan-March
Pg 2:
New Construction
Permits and Local
Events
Pg 3:
Housing Predictions
for 2015
Pg 4:
Shout Outs!
1
Happy Spring 2015! Flowers are coming up, it is
staying lighter longer and trails are amazing for hiking
and biking. I am excited to share that we are finally
starting to see some homes come on the market. The
past few months have been a bit discouraging for
buyers who have been unable to find a home. On the
flip-side, it has been a very strong market for sellers.
Interest rates will remain low at least for the next two
quarters according to the federal reserve. Many are
predicting 2015 might be the biggest year for real estate
since 2007. If you or anyone you know have any real
estate needs – please let me know! Now is the time!
Source: WVMLS data pulled April 1, 2015. Time frame from Jan. ’07 –Mar. ‘14. Properties listed for sale only – not for sale by owners. All
information deemed reliable but not guaranteed.
New Construction Building Permits
SFRDuplex
(total units)3+
(total units)
2004 195 2 69
2005 210 6 184
2006 190 4 50
2007 89 2 20
2008 34 0 43
2009 34 0 0
2010 30 0 8
2011 37 22 218
2012 57 10 213
2013 72 2 90
2014 46 22 338
CORVALLIS HIGHLIGHTS: Team Dirt
The film BUILDER is being presented by Team Dirt, an IMBA
(International Mountain Bicycling Association) chapter, as a fundraiser
and in support of our “Build It. Ride It." campaign. Go twww.teamdirt.org
to help make miles of sustainable local trails happen.
Held at the historic Whiteside Theatre, the event will serve as the wrap up
celebration of our capital campaign, and will feature a showing of
BUILDER, a Scott Secco Film, as well as a raffle with awesome prizes
including a Transition Bikes Klunker!! BUILDER will debut just a week
before at the Sea Otter Classic, and we have a special showing here in
Corvallis, thanks to Scott Secco!!
Mazama Brewing will be on hand to pour their awesome craft beer, and Starbucks Coffee will handle
the coffee service for the evening. Movie refreshments will be offered by the Whiteside Theatre
including popcorn, soda and candy.
Come help us celebrate our capital campaign and enjoy an evening with fellow riders and watch a rad
mountain bike film! Tickets will be availabe soon from Bike n' Hike, Corvallis Cyclery Inc.,
Cyclotopia and Peak Sports for $10 each, or at the door the night of the event. Doors open on April
25th at 6PM with Showtime at 7PM.
REAL ESTATE NEWS:New Construction Permits
New construction in Corvallis has historically
provided an opportunity and a challenge. Why
an opportunity? This is specific to builders –
we simply do not have enough new
construction single family dwellings. We are
fortunate to have the newer developments we
do have (Thank you Legend Homes!), but in
general the quantity is very limited. There are
some very nice newer homes, but most are
custom and in higher price categories.
Builders – we need more new construction!
Why a challenge? It is a challenge for buyers
to find a selection of quality, affordable, new
construction homes in Corvallis. This starts
with the limited land available for
development.
Most of our newer construction starts with
bare land which someone purchases and then
builds their dream home. We have some
amazing builders in this area and that makes
solving this challenge very doable.
We have seen tremendous growth in multi-
family properties over the last 3 years with the
expansion of Oregon State University. We
also continue to see growth in our single
family construction since the low of 2010. It
may be a while until we see the large numbers
of brand new homes like we saw available
between 2004-2006.
For more information, refer to the following
charts. If you are interested in finding a new
home or even building your dream home –
feel free to call me. I would be happy to share
more information to help you accomplish your
real estate dreams.
2
Spring
Home Maintenance
Exterior
Clear debris from around the outside air conditioner and remove the cover if applicable.
Pressure wash your home’s exterior and apply touch-up paint as required.
Remove leaves, small branches and debris from gutters and downspouts so that water drains well.
Look for sagging or otherwise damaged gutter components and repair as needed.
Turn on water to outdoor faucets. Turn on irrigation system, check sprinkler heads and make needed repairs.
Clean the screens on roof vents and louvers.
Remove early signs of bird and insect nests from eaves and ledges.
Check foundation walls and wooden areas at or near ground level for signs of termites and other wood boring insects.
TOP 5 HOUSING PREDICTIONS
FOR 2015 – Realtor.comFrom World Property Journal
According to Realtor.com's 2014 Housing
Review, this year demonstrated a steady build-
up of housing momentum - fueled by
significant improvements in economic
fundamentals, low mortgage rates, and
compressed inventory - and is expected to
carry the market into 2015 gains.
"Many of the gains that we recently predicted
in the Realtor.com 2015 Housing Forecast are
built on housing growth established in 2014.
Overall, this year's housing market showed
steady advances over 2013 with significant
improvement in key housing metrics, despite
some remaining challenges," said Jonathan
Smoke, chief economist for Realtor.com.
"Increases in job creation and gross domestic
product (GDP) have had a significant impact
on consumer confidence and home buyer
demand. Paired with historically low interest
rates, these factors kept properties moving
quickly with median time on market at
approximately 90 days. Unfortunately, the low
number of homes for sale and stringent lending
standards prevented a normal number of first
time home buyers from closing on their first
home in 2014."
1. Millennials will drive household formations:
Both population and households have grown at
a slightly higher pace in 2014 and this trend
will continue in 2015 with modest
improvement over this year's increases.
Households headed by millennials will see
significant growth as a reflection of economic
gains. Millennials will also drive two-thirds of
household formations over the next five years.
Next year's addition of 2.75 million jobs and
increased household formation will be the two
key factors driving first-time buyer sales.
2. Existing home sales will increase +8%:
Existing home sales will grow as more buyers
enter the market motivated by a clear belief
that both rates and prices will continue to rise.
The increase in home sales year-over-year will
be similar to 2012, but this time the
composition of properties sold will be more
normal with minimal levels of distressed
properties. While the majority of housing
activity next year will be driven by baby
boomers preparing for retirement, millennials
will account for 65 percent of first-time home
buyer sales in 2015.
3. Home prices will gain +4-5%: Low
inventory levels and demand driven by
improved employment opportunities will push
home prices up next year. While first-time
home buyers have many economic factors
working in their favor, increasing home prices
will make it more difficult to get into high
priced markets such as San Francisco and San
Jose, CA. As a result, first-time home buyer
activity is expected to concentrate in markets
with strong employment and affordability, such
as Des Moines, Iowa, Atlanta and Houston.
4. Mortgage rates will end the year at 5%:
Mortgage rates will increase in the middle of
2015, as the Federal Reserve increases its
target rate by at least 50 basis points before the
end of the year. Thirty-year fixed rate
mortgages will reach 5 percent by the end of
2015. One-year adjustable rate mortgages
(ARMs) will rise minimally. Lower ARM
interest rates will influence an uptick in buyer
interest for adjustable and hybrid mortgages.
While still at historic lows, rate increases will
affect housing affordability for first-timers
trying to break into the housing market and
will be another factor pushing them to less
expensive locales.
5. Home affordability will decrease 5-10%:
Affordability will decline in 2015 by 5-10
percent, based on home price appreciation and
increasing mortgage interest rates. This decline
will be somewhat offset by increasing incomes.
When considering historical norms, housing
affordability will continue to remain strong
next year.
For full article visit:
http://tinyurl.com/pzuwshw
3
Spring
Home Maintenance
Interior
Get your air conditioning system ready for summer; consider having it serviced.
Change or clean HVAC filters.
Check putty around window panes and weather stripping around windows and doors. Fix as needed.
Inspect windows and doors to make sure they function properly. Replace if necessary.
Check window and door screens and replace or repair as needed.
Check locks, latches, and hinges on your doors and windows. Replace or repair as needed.
Inspect your basement or crawlspace for dampness.
Examine caulking around sinks, tubs, and showers. Reapply if necessary.
If you know someone who would like to receive this newsletter, please call me.
Lee EckrothReal Estate Advisor,
Broker, RealtorCNE, C-RIS, e-PRO, GRI
Cell: 541-760-4742
Efax: 541-610-1564
www.Talk2Lee.com
Town & Country Realty
455 NW Tyler Ave.
Corvallis, OR 97330
R E T U R N S E R V I C E R E Q U E S T E D
E m p o w e r e d w i t h K n o w l e d g e
I n s p i r e d t o A c t i o n
LEE’S SHOUT OUTS
What is the value of time? What is the value of your time? I spent about a year researching this question. I
determined that we trade our time for experiences. The higher value the experience, the higher the value of
time. Each and every day I am grateful for the time I am blessed with. Thanks to all of you who provide
high value moments.
Jordan and Beth - Congratulations on your awesome first home!
Amanda – Congrats on the sale of Cheshire
Jeff and Val – You are gems! I am so happy for you.
Mark and Melanie – I am so happy you made your magic happen in just 67 days!
Jeanne and Eric – CONGRATS on investment #3!
Deborah and Robert – Thanks so much for your trust and friendship.
Steve and Kristi – So happy for you! I have really enjoyed becoming better friends over the past 6 months.
Rosa and Nick – YOU SCORED!!! Your home is awesome and I am so glad you got it!
Jerry and Anita – Thanks for having me on your team to get your Corvallis property sold. It happened!
OSU – Congratulations on making magic with your first TEDx event. AWESOME!
A special thanks to all my friends and family for returning our recent questionnaires. Because of you, this
newsletter is a reality along with our quarterly maintenance suggestions.