Buying a Home Right Now: Easy? No. Smart? Yes.

Through all the volatility in the economy right now, some have put their search for a home on hold, yet others have not. According to ShowingTime, the real estate industry's leading showing management technology provider, buyers have started to reappear over the last several weeks. In the latest report, they revealed:

“The March ShowingTime Showing Index® recorded the first nationwide drop in showing traffic in eight months as communities responded to COVID-19. Early April data show signs of an upswing, however.”

Why would people be setting appointments to look at prospective homes when the process of purchasing a home has become more difficult with shelter-in-place orders throughout the country?

Here are three reasons for this uptick in activity:

1. Some people need to move. Whether because of a death in the family, a new birth, divorce, financial hardship, or a job transfer, some families need to make a move as quickly as possible.

2. Real estate agents across the country have become very innovative, utilizing technology that allows purchasers to virtually:

• View homes
• Meet with mortgage professionals
• Consult with their agent throughout the process

All of this can happen within the required safety protocols, so real estate professionals are continuing to help families make important moves.

3. Buyers understand that mortgage rates are a key component when determining their monthly mortgage payments. Mortgage interest rates are very close to all-time lows and afford today’s purchaser the opportunity to save tens of thousands of dollars over the lifetime of the loan.

Looking closely at the third reason, we can see that there’s a big difference between purchasing a house last December and purchasing one now (see chart below):

Bottom Line

Many families have decided not to postpone their plans to purchase a home, even in these difficult times. If you need to make a move, let’s connect today so you have a trusted advisor to safely and professionally guide you through the process.

6 ways homebuyers' must-haves could change in the future

Past pandemics radically changed home design. Easy-to-disinfect subway tiles became a kitchen mainstay, half-bathrooms became commonplace and screened-in porches that were once for the sick, were transformed into backyard oases.

Although we’re far from the end of the coronavirus, home design experts are already predicting a shift toward health-conscious home design. Features such as antimicrobial materials, no-touch fixtures and hospital-grade air purifiers, and additional bathrooms could all become the norm to make our homes a formidable fortress against a future viral threat.

Here’s what could be on your buyers’ future must-have list:

Mudrooms - a space between the front door and the house, or from the garage into the house provides an ideal spot to remove shoes, hang up jackets, and put on sanitizer before stepping inside.

Additional Bathrooms - future homebuyers may be looking for one bathroom for every bedroom so if a family member falls sick, they can have their own bathroom.

Bidet Toilets - home designers expect bidets to stick around since they reduce the need for toilet paper and are considered a more hygienic way to clean.

Antimicrobial or touch-free fixtures - home designers expect future buyers to favor copper or ceramic over stainless stell due to their antibacterial properties. If the kitchen is all stainless steel, a touch-free faucet may be the best alternate option.

Home offices - with more people working from home, having a dedicated room, or converting a space such as a kitchen nook, to use as a home office may become more popular. Key features of the space will include good lighting, storage, comfort and function.

Cutting-edge air filtration systems - adding an air filtration system to the HVAC unit or investing in air purifiers for the home may become more of a top priority for homebuyers and owners.

Full article by Marian McPherson, Inman.com

How to Clean These Electronics…and Why You Should

If you’re like most Americans, you’ve stepped up your cleaning routine in the wake of the COVID-19 pandemic. From disinfecting door handles and light switches to wiping down groceries before bringing them into your home, many are going to great lengths to maintain a safe environment in their homes.  

One area that might not be on your cleaning radar, however, is your array of electronic equipment. Whether you’re working from home or using technology more frequently to stay in touch with loved ones, chances are your various devices are being put to use more than ever – which means they should be put into your regular cleaning rotation.

Here are five items to clean regularly, according to Martha Stewart, along with the most effective ways to clean them:

1. Your phone. Since your mobile device goes everywhere with you, resting on countless surfaces throughout the day, it needs to be cleaned often - and your landline as well. Clean the receiver of your landline with a microfiber cloth and a little rubbing alcohol. After unplugging the phone, clean the keypad and buttons with a cotton swab dipped in the rubbing alcohol. Since rubbing alcohol can harm the touch-screen surface on your mobile device, however, stick to using a slightly dampened cloth to clean your cell. Or, the best choice, invest in a special UV-light cleaner.

2. Your Keyboard. According to researchers, your computer keyboard is one of the most common places for bacteria buildup, so frequent cleaning is essential - at least twice a month. If you're using a desktop computer, unplug the keyboard before cleaning; for your laptop, make sure it's powered down first. Use a water-dampened cotton swab or toothbrush to remove dust and dirt from the keyboard, or you can also use compressed air to blow out debris. Do not use alcohol to clean keyboards.

3. Your Mouse. A water-dampened cloth is also the best approach for your mouse. However, a UV-light cleaner for larger objects is the most effective way to keep it clean.

4. Your Desktop and laptop. Since you may be using your computer more than ever right now, ensuring optimal functionality is essential. Performance issues have a lot to do with dust buildup, so regularly wipe down the components of your machine with a microfiber cloth and a small amount of rubbing alcohol to prevent dust from entering into the fan vents. When cleaning your screen, be sure to power down your computer before wiping it with a damp cloth.

5. Your Printer. Maintaining a smooth-running printer is critical now that you don't have your office tech team to rely on. If you've got an inkjet printer, remove buildup in its interior with a damp cotton swab. For laser printers, a can of compressed air can help clean out any toner that has accumulated on the surface.

Once you've got your workstation in sparkling shape, there's one more electronic device that needs regular cleaning these days: your TV remote. Remove the batteries and wipe it down with a cloth dipped in rubbing alcohol, then use a cotton swab - or toothpick for tough stains - to clean around the buttons.

                                                                                                                   Article from RISMedia April 2020

How Technology is Helping Buyers Navigate the Home Search Process

Some Highlights:

• A recent realtor.com survey revealed that buyers are still considering moving forward with the homebuying process, even if they can’t see the home in-person.
• While they still prefer to physically see a home, virtual home tours and accurate listing information top the list of tech specs buyers find most helpful in today’s process.
• Let’s connect today to determine how technology can help power your home search.

Selling A Home During Unusual Times in Portland, OR Metro Areas

The current spread of coronavirus (COVID-19) and the efforts to contain it have impacted almost all aspects of daily life – and real estate transactions are no different. Yet despite current circumstances, real estate agents are still seeing sellers and buyers move forward with their plans in what is historically an active spring market.

Precautions have changed, and people are doing life differently, but the demand and decision to buy a home is currently still very strong.  Since the end of February, I have 3 buyers under contract, 1 listing under contract and another home being prepare to list for sale soon. Agents in our Hillsboro RE/MAX Equity Group office are also busy supporting both buyers and sellers during this time.

Yet even with willing sellers and eager buyers, the current U.S. government guidelines recommend social gatherings be limited to fewer than 10 people – among other safety measures – which means selling a home this spring may look differently than in years past.

It’s requires being creative and innovative - there are still ways for real estate agents to interact with listing clients and potential buyers by leveraging technology.

Ready to sell? Keep calm and log on.

With COVID-19 at the forefront of many sellers’ minds, for the time being, many home tours will start online. That’s nothing new and can be a powerful tool in marketing a home to buyers. More Agents are increasing their use of virtual tactics, so we're seeing more virtual tours or 3D tours of homes for buyers to view prior to arranging in home visits.

The use of FaceTime or Zoom walk-through tours helps buyers view the home and ask questions about the property.  The use of these video tours helps reduce the number of buyers walking through a property.

As many buyers have commented over the years, things can look differently in photos than in person or even a FaceTime call. The video tours can help narrow down properties in a buyer’s price range so they know which ones they want to see in person.

If an interested buyer is ready to visit a property, specific protocols are put in place for the showing appointment.  The number of people that tour a listing is limited either to just the prinicpal buyers or only 2 people in the home at a time. Basic health checks, physical distancing, use of masks and gloves are some of the criteria that need to be adhered to while viewing the home.

Agents, buyers and sellers have to be aware and smart – wash hands more often, use hand sanitizer, avoid touching your face and do more calls on speaker phone to avoid phone-to-face contact.

Still weighing your options? Get to work while you think it through!

There are absolutely things sellers can do while we’re being asked to stay home. If you can get to a local home improvement store, get paint and start doing touch-ups around the house. Or begin packing and put your stuff in the garage or basement in a central location. That way as we start to return to a more normalized market, you are ready to show your home.

And of course, Vitamin D can help with stress relief. Take time to be outside, get your yard cleaned up and landscaping prepped.

Read my recent blog post, "Act Now to Prepare Your Home for Sale Later This Year" for more suggestions on what you can do now to get your home ready for the market.  I also have some great resources if you are in need of services to help make your life easier.

Be prepared for a market – and world – that is constantly changing

When it comes to COVID-19 and real estate, no one can accurately predict what the future holds. But in the current moment, we are seeing movement in the Portland metro market.

We are experiencing some challenges and hurdles behind the scenes – appraisers are sorting out their own safe-practices, home inspectors are limiting the presence of people at the inspections, title companies are considering creative and cautious options to facilitate closings, and some contractors are limiting their services.  All of these may cause some delays in being able to reach the closing date, but only by a few days.

We really won’t know the full effect for a couple of months, but for many Realtors it’s business as usual in a lot of ways as we work to anticipate and meet the new needs of buyers and sellers.

The COVID-19 emergency is constantly evolving. Realtors, buyers and sellers all need to stay informed and continue to closely watch the real estate market's reaction to all that is happening. 

Adapted from an Article by Stephanie Visscher, RE/MAX

Getting Clarity during COVID-19: This Too Shall Pass

Ways to Liven Up Your Time at Home

Need some new ideas for livening up your time at home while social distancing? Even though you can’t leave the house, you can still make positive memories and have some fun with your family and friends.  Try out one, or more, of these five ideas - from world-class cooking to DIY art projects, these creative ideas will help you have some fun at home.

Act Now to Prepare Your Home For Sale Later This Year

Thinking of selling your home sometime later this year?   Here are some actions you can take now to make sure your home is ready to hit the market!

Recession? Yes. Housing Crash? No.

With over 90% of Americans now under a shelter-in-place order, many experts are warning that the American economy is heading toward a recession, if it’s not in one already. What does that mean to the residential real estate market?

What is a recession?

According to the National Bureau of Economic Research:

“A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.”

COVID-19 hit the pause button on the American economy in the middle of March. Goldman Sachs, JP Morgan, and Morgan Stanley are all calling for a deep dive in the economy in the second quarter of this year. Though we may not yet be in a recession by the technical definition of the word today, most believe history will show we were in one from April to June.

Does that mean we’re headed for another housing crash?

Many fear a recession will mean a repeat of the housing crash that occurred during the Great Recession of 2006-2008. The past, however, shows us that most recessions do not adversely impact home values. Doug Brien, CEO of Mynd Property Management, explains:

“With the exception of two recessions, the Great Recession from 2007-2009, & the Gulf War recession from 1990-1991, no other recessions have impacted the U.S. housing market, according to Freddie Mac Home Price Index data collected from 1975 to 2018.”

CoreLogic, in a second study of the last five recessions, found the same. Here’s a graph of their findings:

What are the experts saying this time?

This is what three economic leaders are saying about the housing connection to this recession:

Robert Dietz, Chief Economist with NAHB

“The housing sector enters this recession underbuilt rather than overbuilt…That means as the economy rebounds - which it will at some stage - housing is set to help lead the way out.”

Ali Wolf, Chief Economist with Meyers Research

“Last time housing led the recession…This time it’s poised to bring us out. This is the Great Recession for leisure, hospitality, trade and transportation in that this recession will feel as bad as the Great Recession did to housing.”

John Burns, founder of John Burns Consulting, also revealed that his firm’s research concluded that recessions caused by a pandemic usually do not significantly impact home values:

“Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices).”

Bottom Line

If we’re not in a recession yet, we’re about to be in one. This time, however, housing will be the sector that leads the economic recovery.

Mortgage Relief & the CARES Act

I received this article from a mortgage lender and thought it was helpful information to pass along to my clients to ensure they are aware of the potential for mortgage forbearance and what that actually means for homeowners.

"Let's set the record straight - there is no such thing as "skipping" a mortgage payment.

The recently announced mortgage payment relief through the CARES Act provides mortgage forbearance for those who have lost their job or are suffering a financial hardship due to the COVID-19 pandemic and whose loan is federally owned or backed by a federal agency.

Reach out using the contact information on your loan statement to determine what options may be available to you through your servicer.  It's vital that you discuss options based on your situation.  If assistance is available, be sure to get your agreement in writing.

Please remember: A forbearance is not a holiday.  A forbearance allows you to pause or reduce your payments for a limited time. Deferred payments may be due in full at the end of the forbearance period. Sometimes, these payments may be stretched over a short time period or perhaps added to the end of your loan term.

If you have an escrow account, deferring payments will mean you will also have to make up the shortage as part of your repayment plan.

The CARES Act intends to prevent negative impacts to your credit if you undertake a forbearance for your government backed loan. However, changes to reporting between servicers and credit agencies may not occur seamlessly. If you do pursue a forbearance, you will need to monitor your credit report to catch and report any errors that may happen.

Think it through.  A forbearance is not forgiveness. It does not eliminate payments; it only delays them. If you have emergency savings, available lines of credit or other means to pay, these may be better options to get you through these difficult times."

Talk with your mortgage lender and/or servicer to discuss your options. It's possible refinancing or obtaining a HELOC might be the right solution for you in lieu of forbearance.

Team Irwin, Directors Mortgage

March 2020 Real Estate Market Statistics

The following is the latest Real Estate Market Statistics for March 2020.
Click here for the full report

• Sales:   2,356 in March 2020 vs 2,183 last March:  7.9%

• Pending Sales:   2,347 in March 2020 vs 2,738 last March:  -14.3%

• New Listings:   3,468 in March 2020 vs 3,504 last March:  -1.0%

• Average Sales Price:   $461,600 in March 2020 vs $443,500 last March:  4.1%

• Total Market Time: 61 days in March 2020 vs 68 days last March:  -9.7%

• Inventory in Months: 1.8 months in March 2020 vs 2.2 months last March

Inventory by Area:

• NW Washington County   1.48 months
• Beaverton/Aloha               1.19 months
• Hillsboro/Forest Grove     1.60 months

March is typically when we see an increase in the availability of homes for sale leading into the 'spring selling season'. Through the first quarter of 2020, it appears we are tracking similar to previous years with respect to the number of newly listed homes for sale in the Portland metro area.  It will be interesting to see in next month's report how the 'Stay at Home' order, due to Coronavirus, is impacting the availability of homes.

Looking to the Future: What the Experts Are Saying

As our lives, our businesses, and the world we live in change day by day, we’re all left wondering how long this will last. How long will we feel the effects of the coronavirus? How deep will the impact go? The human toll may forever change families, but the economic impact will rebound with a cycle of downturn followed by economic expansion like we’ve seen play out in the U.S. economy many times over.

Here’s a look at what leading experts and current research indicate about the economic impact we’ll likely see as a result of the coronavirus. It starts with a forecast of U.S. Gross Domestic Product (GDP).

According to Investopedia:

“Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country’s economic health.”

When looking at GDP (the measure of our country’s economic health), a survey of three leading financial institutions shows a projected sharp decline followed by a steep rebound in the second half of this year: A recent study from John Burns Consulting also notes that past pandemics have also created           V-Shaped Economic Recoveries like the ones noted above, and they had minimal impact on housing prices. This certainly gives hope and optimism for what is to come as the crisis passes.

With this historical analysis in mind, many business owners are also optimistic for a bright economic return. A recent PricewaterhouseCoopers survey shows this confidence, noting 66% of surveyed business owners feel their companies will return to normal business rhythms within a month of the pandemic passing, and 90% feel they should be back to normal operation 1 to 3 months after:From expert financial institutions to business leaders across the country, we can clearly see that the anticipation of a quick return to normal once the current crisis subsides is not too far away. In essence, this won’t last forever, and we will get back to growth-mode. We’ve got this.

Bottom Line

Lives and businesses are being impacted by the coronavirus, but experts do see a light at the end of the tunnel. As the economy slows down due to the health crisis, we can take guidance and advice from experts that this too will pass.

5 Ways to Be Productive While Social Distancing

Social distancing doesn’t have to mean productivity distancing! While COVID-19 has you self-quarantining at home, there are ways to use that time to get ahead of tasks and projects you’ve been putting off for a while. From getting a jump on spring cleaning to shaking things up in the kitchen, here are some ways to use your time at home wisely.

1. Deep Clean Your Home  

Running around from place-to-place makes it difficult to squeeze in time for a sanitize. While you’re home, get a jump on your spring cleaning and kill any germs or bacteria that may be hiding out in harder to reach spots. It’s a win-win for your health and your living space!

2. Sort Through Your Closet

Take this time to go through your and your family’s wardrobe. Try things on, see what fits and what doesn’t, and ditch anything that’s so 2019. Bag up the give-away clothes and keep them aside. Later, once the coronavirus dies down and it’s safe to head out, take them to a charity shop or donation center, or consider re-selling online.

3. Rearrange Your Furniture

Being cooped up for a while can help you start to see your space in a new light. If you feel like you need a little more room or just a change of scenery, feng shui your place! Look up ideas and tips on Pinterest, Houzz and other home decor blogs. Get the whole family in on it — your living room will seem brand new!

4. Try a New Recipe

If you have a folder of recipes you have yet to try out, now is your chance! Take stock of the ingredients you have and try out that one dish you just haven’t had time to get to. It’s a great way to feel like you’re eating at a restaurant without leaving your house. Make a menu and plan to make a different recipe every few days!

5. Read a Book You’ve Been Putting Off

How many times have you received a great book recommendation, but never had a second to get to it? This is your chance to dive into a personal growth book or even a buzzworthy new novel. Download it as an audiobook or eBook if you can’t get the physical copy. You’ll keep your mind sharp and stay entertained while at home.

As you continue to do your part to practice social distancing, you can still be productive! Give these ideas a try and shake things up while you’re at home.

Courtesy of Buffini and Company