The Senate and House have approved a bill extending the $8,000 tax credit and offering move-up buyers a similar $6,500 benefit. President Obama is expected to sign this quickly, since the bill contains unemployment benefit provisions as well.

Here’s the latest:

• The tax credit would be $8,000 for first-time home buyers and $6,500 for move-up buyers (from December 1, 2009 to April 30, 2010).
• Move-up buyers will be eligible, as long as they have lived in their principal residence at least 5 years.
• Contracts through April 30, 2010 will qualify, but closing must occur within 60 days.
• The income limits have been raised–$125,000 for single return and $225,000 joint return for both first-time and move-up buyers.
• Cost of the home may not exceed $800,000 to be eligible.
• Taxpayers will be able to claim the credit on their 2009 income tax return for purchases made in 2010.
• Home buyers would not have to repay the credit, as long as the home remains their principal residence for 36 months after the purchase date.

More people will qualify for the plan (high income earners and current homeowners). And the tax credit will sunset just as the peak real estate season is ramping up.

So the question remains, does this expansion move your housing timetable up? Sound off in the comments, please.

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I am also aware of the strong support in Congress for doing more to support the housing market, including extending the First Time Home Buyer Tax Credit beyond 2009. At the same time, I am mindful that these proposals can be very expensive, especially at a time of significant budget deficits. I can assure you the Administration will work with Congress to fashion appropriate and effective home buyer incentives, mindful of both their benefits to stimulating new demand and their costs to the American taxpayer.

Politicians on both sides are taking a hard look at the expense of the stimulus vs. the potential effects of stalling the momentum the market has made through the year. Sounds like a decision is still weeks away.

Full commentary at http://www.cnbc.com//id/33398833.

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First, the median home price dipped 3.4% to $241,400, perhaps showing the emphasis of first-time home buyer activity at the entry-level prices. The median sale price had been pegged at ~$250,000 for most of the year. At the current level, Portland metro home prices are off 20% from the peak of the market in 2007.

Also, September 2009 saw the highest number of homes to go sales pending status since August 2007. The result was 34% over September 2008’s level and will elevate actual closed sale numbers over the next couple months over the norm. Actual closed sales had been tailing off slowly since July, which is a normal seasonal trend.

Market Summary

Data courtesy of RMLS Market Action Report, September 2009.

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Priced between $22 to $27, available in 4 colors. They’ve mapped several other cities, like Seattle, San Francisco, Boston, NYC, LA, and Chicago.

Image courtesy of Ork Posters.

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His conclusion:

Given the abnormality of the economic environment, the sudden turn in the housing market probably reflects a new home-buyer emphasis on market timing. For years, people have been bulls for the long term. The change has been in their short-term thinking. The latest answers suggest that people think the price slide is over, so there is no longer such a good reason to wait to buy. And so they cause an upward blip in prices.

At the moment, it appears that the extreme ups and downs of the housing market have turned many Americans into housing speculators. Many people are still playing a leverage game, watching various economic indicators as well as the state of federal bailout programs — including the $8,000 first-time home-buyer tax credit that is currently scheduled to expire before Dec. 1 — in an effort to time their home-buying decisions. The sudden turn could signal a new housing boom, but is more likely just a sign of a period of higher short-run price volatility.

Full article here.

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September will register a ~$242,500 median price result–about 3% lower than the ~$250,000 level that’s been the norm throughout most of 2009. The average home price was ~$291,800–off 1.5% from August.

The sale price decline may be attributed to the emphasis on purchases of entry-level homes fueled by the $8,000 tax credit.

The pace of sales is slowing. About 1,755 homes closed escrow in the month, down nearly 5% from August.

* Official RMLS-compiled results will appear around the 15th of the month.

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Click to play

Full season schedule here.

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In Portland’s case, the home price index improved 1.1% over June’s number, which was up 1.0% over May’s result. This is consistent with the multiple listing service reports that show prices basically flat through most of 2009. The index pegs Portland’s July 2008 to July 2009 comparison at -13.9%.

Below is a chart of Portland, Seattle and the overall index. The green trace is San Diego, which some readers use as Portland’s bellwether city for forecasting purposes.

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For the ninth straight month, the median sale price of homes throughout the metro area was around $250,000. This has effectively held the market depreciation to -17% from the peak market of August 2007. Whether prices will begin to slide due to the upcoming seasonal slowdown and the expiration of the first-time homebuyer tax credit remains to be seen.

One possible contributing factor to stable pricing may be the comparatively low new listing volume in the available properties throughout 2009. It has contributed to a flat inventory average (~14,300 homes) from month-to-month–only a 420-listing difference between the low and high marks. Perhaps if inventories were in the 16,000 - 18,000 average active listings per month range like much of 2008, downward pricing pressure might have resulted.

With sales slowing slightly in August, the available inventory ratio increased slightly, and there is nearly 8 months’ supply on the market. It is taking over 19 weeks on average to put a home under contract (135 days).

Market Summary

Data courtesy of RMLS Market Action Report, August 2009.

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My small post about the auction scheduled for September 21 for the South Waterfront’s Atwater condo project attracted a fair amount of traffic, so I thought I would update it. I visited the property a few weeks ago for some first-hand assessment. Buyer traffic through the units was brisk. I don’t know if that translates to big participation at the auction or not.

Forty units of various size are slated for the auction. If all 40 were to sell, then the building would basically only be 1/2 sold out. Perhaps the marketing company will put together another auction if this auction is successful.

So, a little Q and A:

How does someone participate in the auction?
You must register and get pre-qualified to participate in Sunday’s auction by 7 pm on Friday, September 18. You can visit the condos between 11 am and 7 pm each day through Friday. If you want your own agent representative to guide you through the process, they must accompany you at the first visit to the property and register themselves.

What are the general contract terms?

The sales contract does not offer much in the way of protections for buyers. You cannot use a property inspection as a contingency for purchase. You cannot use a typical financing contingency. In other words, you will likely lose your earnest money deposit if you fail to close the transaction.

All the purchase paperwork and disclosures are available in advance from the marketing company (registration required), so you won’t be surprised at the signing table. You must close your purchase on or before October 19, 2009. They are offering a $2,500 incentive to close the transaction before October 5.

What is the auction format?
It is a live auction. Open bid amounts start at about 1/2 of the original list price, with increments controlled by the auctioneer. There is no published, pre-determined order to how the units that will be auctioned. You should likely have a back-up unit in mind in case your first choice is gone. If you like to see how the auction will be operated, you can go to a ‘mock auction’ at 6 pm on Saturday at the Marriott.

You must bring a cash equivalent (check or money order) for $2,500 to the auction. If you have a winning bid, you will immediately go to a separate room to sign an official contract and deposit 3% of the sale price with Ticor Title as earnest money.

How much are the HOA fees?
The homeowner association fees are equivalent to $0.303 per square foot, or $484.49 per month on a 1,594 sq. ft. 2 bedroom, 2 bathroom unit for example. The HOA fees cover water, sewer, and garbage for utilities, plus management, maintenance of all common areas, insurance, etc.

Is financing available?
If you need a mortgage, you must be pre-qualified through the Atwater’s two preferred lenders, Bank of America or MetLife. These lenders are offering $1,500 credit toward your closing costs. You’ll have 5 days to complete the loan application process after your winning bid. You can arrange your own financing, but I doubt outside conventional lenders will loan on this project. If you’re paying cash you must show proof of funds.

What about the property?
The units are very nice, comparable to the Meriwether and much of what is in the Pearl District–appointed with granite counters, nice appliances, etc. The high-end units (what I saw anyway) were fine, but I felt the Meriwether had better views (at least in the East building). There’s very little in the way common area space (i.e. no workout room), but there is a mid-sized community room in the foyer. Some extra storage in the basement may also be available for an extra fee.

What is the parking situation?
Each unit has a deeded, secure parking spot. Two bedroom units get 2 spots.

KOIN recently did a piece on the auction:
Click here to view the embedded video.

Photo courtesy of Excell Marketing Group.

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