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Five things I’m looking forward to in 2010 | Changes that will Affect the Corvallis Real Estate Market

Five things I’m looking forward to in 2010 and Change in the Corvallis Real Estate Market

As 2009 comes to a close, it will be nice to put a cap on it and move onto a better 2010.  I, for one, am looking forward to some positives in the economy and the Corvallis real estate market.  Recent economic activity would lead one to believe that the country is coming out of an extremely difficult economic period — some say the longest recession in decades.

What I think we’ll see in the coming new year:

1. Slightly higher, but still very appealing interest rate environment, at least for the first half of the year.  Not the really extra-ordinary rates hovering at five or slightly under, but more like the low sixes, which historically (and if you can remember the early 1980s really very much better than seventeen percent or higher.)

2. Buyers, both first time and move (up,over,down) buyers taking advantage of tax incentives (written contract must be in place by 4/30/2010; closing by 6/30/2010)

3. Locally good levels of inventory without the impact of extreme high levels of foreclosed properties. Basically, a more balanced market.  Making it a better market for everyone.  As the markets that tend to feed Corvallis and the mid-Willamette Valley continue their recovery they will provide a little “stimulus” to our economy.

4. Better employment rates as the economy crawls out of the recession hole.  Employment is the one factor that will really change the course of the current economy.

5. Along with higher interest rates, may come a more relaxed, perhaps I should say, sound, approach to underwriting.  Not the take a pulse, give a loan attitude that helped create the mess, but realistic and reasonable, as banks re-enter the mortgage business and become less fearful of risk.

All in all, no matter what the economy does, how the real estate industry deals with ups and down, we are all just and we will continue to adjust and do what we need to do to live our lives the best way we can.

Wishing you all a happy, healthy and prosperous 2010.

Related posts:

Questions and Answers about the Expanded/Extended HomebuyerTax Credit

Homebuyer Tax Credit De-Mystified

Richard Smith CEO of Realogy on CNBC about the Tax Credit

Comments

  1. Austin Gordon says:

    Good insights! Since you mentioned first-time buyers in this post, I’ll go ahead and ask a question that’s been on my mind: How long should a person on a commission based income be on the job before they look into purchasing a home?

    • Great question! Most of the time a straight-commission employee is considered to be “self-employed”. That means two years of tax returns are going to be used to evaluate income. Lenders are concerned about “continuing” and “on-going” when they review income. The current underwriting guidelines are fairly conservative because of the back lash from very liberal underwriting during the housing boom. Some commissioned workers have a combination of base plus commission or other mitigating factors, so it’s worth it to check in with a couple of lenders to see how your individual situation fits into the guidelines.

      If it’s going to take some time to get a track record established, use that time to prepare. Save money for a down payment, make sure your credit is in tip-top condition and educate yourself about the market and the opportunities that might be available to you in regards to financing.

      In Linn and Benton County Willamette Neighborhood Housing Services is a great resource. One facet of what they do is to provide home buyer classes. They cover financing, credit, the cost of ownership and the steps in the home-buying process (choosing a house, lending criteria, home inspections, title and escrow services and the role of your real estate agent). Attending these classes may also satisfy education requirements for some home buyer assistance programs.

      Sometimes that comes in the form of grants for down payment, low interest rate loans and/or matching funds for down-payment assistance, often times these opportunities are income driven with limits based on the location of the property. Opportunities will vary from community to community, what’s available in Albany, may not be available in Corvallis, Eugene may have something not available anywhere else.

      Establish a relationship with a lender and a real estate agent. There are some lenders that specialize in first time home buyer programs, so check around. Getting to know a real estate agent will help you to establish some ground work for when you are ready. Often times an agent can help direct you to the lender resources that will best meet your needs.

      Buying a home is a very significant financial commitment. Start now, plan for the future. Even if the two year mark is a little ways off, there’s no time like the present to start working toward your goals. The time will go by very quickly and when the time is right, you’ll be ready.

  2. Austin Gordon says:

    Very cool! Thanks for the response, I really appreciate it. Take care!

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