Tag Archives: portland

Oregon House Bill 2737 – The “Tiny House Bill”

Micro-houses have difficulty meeting residential building codes but this bill aims to solve this problem

By Jeff Sorg, OnlineEd Blog

(January 19, 2018)

(PORTLAND, OR – OnlineEd) 

Video transcript:

Perhaps one of the more interesting bills submitted and passed by the Oregon Legislature in its 2017 session is House Bill 2737, known as the Tiny House Bill.

The demand for tiny houses or micro-houses is driven by a number of factors, including the cost of building materials, efforts to reduce the use of energy and natural resources, housing density goals and homelessness. The micro-houses have difficulty meeting residential building codes as these codes were developed for traditional housing forms. The International Code Council, or ICC, has approved new micro-housing standards for inclusion in the 2018 ICC code update. The Building Codes Division of the Department of Consumer and Business Services typically has a lag of one-to-three years before adjusting its codes to reflect ICC changes.

ICC code changes are not necessarily adopted automatically into the Oregon building codes, so what House Bill 2737 does is to require the Director of the Department of Consumer and Business Services to adopt the amendments to the specialty building codes to establish construction standards for homes that are 600 square feet or less. The code addresses such issues as ceiling height, lofts, ladders, and egress.

The codes relating to micro-houses are effective as of January 1, 2018. Click here to sign up for your free 3-hour required Law and Rule Required Course, LARRC.

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

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Portland, Dallas, and Seattle Report the Highest Year-Over-Year Home Value Appreciation

Rents in Seattle are up just over 9 percent and in Portland, rents are up 7 percent

By Jeff Sorg, OnlineEd Blog

rising housing prices 1(October 20, 2016) –  U.S. home values are up 5.5 percent over the past year according to the September Zillow® Real Estate Market Reports. This is the fastest pace of appreciation in more than two years. The median value of a U.S. home is now $189,400.

Portland, Dallas, and Seattle reported the highest year-over-year home value appreciation among the 35 largest metros across the country. In Portland, home values rose almost 15 percent to a median value of $342,100. Home values in Dallas and Seattle appreciated 12 and 11 percent, respectively. For the first time, the median home value in the Seattle surpassed $400,000 and is now at $401,100.

Inventory has been falling steadily, with about 4 to 6 percent fewer homes for sale over the past several months. However, the bigger driver of home prices is increased demand. Sales have increased substantially since 2011, despite fewer homes on the market.

Bidding wars are commonplace in many housing markets across the country, as multiple buyers compete for the same home. According to the Zillow Group Consumer Housing Trends Report, only 46 percent of buyers get the first home on which they make an offer, and the home search takes an average of 4.2 months.

“Increasingly strong demand has been contributing to dwindling inventory stocks across the nation,” said Zillow Chief Economist Dr. Svenja Gudell. “Healthy demand for for-sale homes amidst low inventory has been driving the market, which is another sign that the housing market is recovering nicely. Buyers in the nation’s fastest moving markets can expect the search process to last a few months, as market conditions are often extremely competitive with homes selling for above asking price and receiving multiple offers. It’s definitely a seller’s market right now, with some homes being more expensive than ever.”

Rents are rising across the nation, but have slowed considerably over the past year. In September 2015, median rents were up 5.3 percent year-over-year but have since slowed to 1.5 percent annual appreciation. The median rent in the U.S. is now $1,403.

Seattle, Portland, and Sacramento reported the highest year-over-year rent appreciation among the 35 largest U.S. housing markets. Rents in Seattle are up just over 9 percent and in Portland, rents are up 7 percent. For the fourth month in a row, Seattle has the fastest year-over-year rent appreciation among the 35 largest U.S. housing markets.

Nationally, there are 6 percent fewer homes for sale than a year ago, with Indianapolis and Boston reporting the greatest drop in inventory. In Indianapolis, there are 26 percent fewer homes to choose from than a year ago, and 25 percent fewer in Boston.

Souce: Zillow®

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Zillow and Zestimate are a registered trademark of Zillow, Inc.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Seattle and Portland Rents Expected to Rise 6% and 7%

Zillow forecasts rent growth of more than 7 percent in Seattle and 6 percent in Portland

By Jeff Sorg, OnlineEd Blog

canstockphoto33101878-no-vacancies (October 11, 2016) – According to the latest Zillow® Rent Forecast for August 2016 to August 2017, rents in the West’s tech job centers are predicted to be among some of the fastest growing in the nation over the next year. The Zillow® Rent Forecast predicts rent trends down to the zip-code across the U.S.

Rents in Seattle and Portland are expected to rise the most over the next 12 months — Zillow forecasts rent growth of more than 7 percent in Seattle and 6 percent in Portland. Denver, San Francisco, and San Jose are predicted to see rent appreciation of more than 4 percent. Only 11 of the 35 largest metros will see a slowdown in rents.

 

Highest Forecasted Rent Appreciation over the Next Year

  1. Seattle – 7.2 percent
  2. Portland – 6.0 percent
  3. Denver – 5.9 percent
  4. Cincinnati – 5.2 percent
  5. San Francisco – 4.9 percent
  6. Los Angeles – 4.8 percent
  7. Sacramento – 4.7 percent
  8. San Diego – 4.7 percent
  9. Phoenix – 4.6 percent
  10. San Jose – 4.5 percent

[Source: Zillow]

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Portland Home Values Rise 15 Percent

San Francisco and San Jose are no longer among the top appreciating U.S. housing markets

By Jeff Sorg, OnlineEd Blog

housing graph 3(September 22, 2016) – U.S. home values are up 5 percent over the past year, to a Zillow Home Value Index (ZHVI) of $188,100, according to the August Zillow® Real Estate Market Reports.

Home values have been growing at a 5 percent annual rate since the beginning of the year. The most recent income data released by the Censusiii shows incomes rising by 5.2 percent, which is good news for those looking to break into the housing market. For the first time since 2011, incomes have been appreciating faster than home values.

Inventory is beginning to pick back up from the lows experienced at the beginning of the year, but there are still 5 percent fewer homes for sale than a year ago. Going forward, as more homes start to become available, home value growth may ease. Zillow predicts home value growth to slow down to a 2.7 percent appreciation rate by this time next year.

For the sixth straight month, Portland, Dallas, Seattle and Denver reported the highest year-over-year home value appreciation among the 35 largest U.S. metros, with home value growth in the double-digits. In Portland, home values rose almost 15 percent, to a median home value of $338,900.

While home values continue to rise in tech-centers San Francisco and San Jose, they’ve slowed considerably since last year. Median home values in both markets are up about 6 percent over the past year, compared to over 12 percent in 2015. No longer are these two metros among the top appreciating U.S. housing markets.

“The housing market is starting to smooth out ever-so-slightly, as the peak home shopping season winds down,” said Zillow Chief Economist Dr. Svenja Gudell. “This is good news for frenzied buyers tired of tight inventory, rapidly rising home prices and intense competition. Inventory, while still down nationwide and in most areas, is actually starting to rise in a handful of markets, including the Bay Area, Texas and parts of the Southwest. Rent growth has slowed considerably from just a few years ago, giving renters a chance to save enough to buy a home. But make no mistake, it’s still tough out there for buyers, especially in Western markets like Seattle, Denver and Portland that have strong job growth. Things won’t switch from a sellers’ market to a buyers’ market overnight, but conditions are starting to improve.”

Rents continue to rise, though not as quickly as home values. Last year at this time, rents were up over 6 percent, but are now appreciating by just 1.7 percent, to a Zillow Rent Index (ZRI) of $1,405.

Of the 35 largest U.S. metros, Seattle, Portland, Sacramento and San Diego reported the highest year-over-year rent appreciation. Rents in Seattle have seen the fastest annual appreciation for the third month in a row, up almost 10 percent over the past year to a median of $2,067 per month.

In Portland, the median rent rose to $1,777 per month, up 7 percent over the past year. In Sacramento and San Diego, rents are up 5.5 and 5 percent, respectively.

 

Metropolitan Area Zillow Home

Value Index (ZHVI)

Year-Over-Year ZHVI Change Zillow Rent Index (ZRI) Year-Over-Year ZRI Change Year-Over-Year Inventory Change
United States $             188,100 5.1% $         1,405 1.7% -5.4%
New York/Northern New Jersey $             389,000 3.3% $         2,399 2.5% -11.7%
Los Angeles-Long Beach-Anaheim, CA $             574,600 5.2% $         2,593 4.7% 0.6%
Chicago, IL $             201,300 4.5% $         1,643 -0.2% -11.5%
Dallas-Fort Worth, TX $             193,900 12.0% $         1,543 3.6% -20.6%
Philadelphia, PA $             210,000 2.9% $         1,578 1.3% -13.3%
Houston, TX $             174,000 7.1% $         1,576 0.5% 7.4%
Washington, DC $             370,100 2.1% $         2,121 0.5% -15.0%
Miami-Fort

Lauderdale, FL

$             239,300 9.0% $         1,885 4.2% 14.1%
Atlanta, GA $             168,400 7.5% $         1,314 3.5% -8.6%
Boston, MA $             398,200 5.6% $         2,310 3.9% -26.4%
San Francisco, CA $             809,500 6.0% $         3,406 4.8% 1.8%
Detroit, MI $             129,600 6.8% $         1,171 2.5% -17.8%
Riverside, CA $             313,400 7.0% $         1,736 3.4% -0.7%
Phoenix, AZ $             223,100 7.5% $         1,297 4.2% 8.3%
Seattle, WA $             397,800 11.3% $         2,067 9.7% -6.0%
Minneapolis-St Paul,

MN

$             229,300 6.2% $         1,540 2.5% -2.7%
San Diego, CA $             516,200 5.2% $         2,427 4.9% 13.0%
St. Louis, MO $             144,000 5.3% $         1,128 0.5% -13.2%
Tampa, FL $             170,500 9.8% $         1,332 3.3% -10.1%
Baltimore, MD $             252,700 2.5% $         1,731 0.6% -10.4%
Denver, CO $             341,400 10.7% $         2,013 4.1% 7.4%
Pittsburgh, PA $             131,200 4.6% $         1,100 -0.5% 3.7%
Portland, OR $             338,900 14.8% $         1,777 7.4% -12.4%
Charlotte, NC $             164,400 7.1% $         1,237 1.7% -10.3%
Sacramento, CA $             345,100 7.1% $         1,681 5.5% -6.4%
San Antonio, TX $             153,600 6.4% $         1,317 0.9% 25.2%
Orlando, FL $             189,000 8.1% $         1,372 2.8% -10.8%
Cincinnati, OH $             145,100 4.6% $         1,239 0.2% -15.7%
Cleveland, OH $             129,000 3.4% $         1,146 1.3% -12.7%
Kansas City, MO $             150,700 5.2% $         1,235 2.3% -23.6%
Las Vegas, NV $             206,800 7.8% $         1,237 2.0% 32.7%
Columbus, OH $             157,000 3.0% $         1,293 2.0% -16.6%
Indianapolis, IN $             131,700 -1.6% $         1,196 0.4% -24.7%
San Jose, CA $             945,700 5.8% $         3,517 3.8% 12.9%
Austin, TX $             255,900 8.6% $         1,713 2.0% 11.1%

[Source: Zillow®]

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Zillow® is a registered trademark of Zillow, Inc.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Negative Equity Still a Drag on the U.S. Housing Market

Despite improvements in the negative equity rate, underwater mortgages are holding back the housing market from full recovery

By Jeff Sorg, OnlineEd Blog

SOURCE: Zillow

underwater(December 4, 2015) /PRNewswire/  – The U.S. negative equity rate continued to drop in the third quarter of 2015, according to the Zillow® Negative Equity Report.i Nationally, 13.4 percent of homeowners owe more on their mortgage than their home is worth, down from 14.4 percent last quarter, and 16.9 percent a year ago.

Negative equity is one of the most persistent reminders of the housing market crash. Homeowners who owe more on their mortgage than their homes are worth cannot sell, which holds back markets from recovering.

Typically, negative equity rates will be close to 2-5 percent. Today, eight years after the housing crash, it remains a major barrier to a full recovery in certain markets. In Las Vegas, 22 percent of homeowners remain underwater, and another 19 percent are effectively underwater, meaning they have less than 20 percent equity in their home and therefore can’t cover the cost of selling their home and buying another.

Las Vegas has had the highest negative equity rate in the country for the past four and a half years, and Kansas City and Cleveland, with 16.6 and 16.8 percent negative equity respectively, are not far behind. San Francisco and San Jose are the only large markets where less than five percent of homeowners are underwater.

Almost a million homeowners were freed from negative equity in the third quarter of 2015. The improving rate means those people may be able to sell or refinance their homes before mortgage interest rates rise, as they are expected to do in the coming weeks.

“Negative equity has become almost an afterthought in a handful of the nation’s hottest markets, but is holding back the recovery in dozens of large markets nationwide,” said Zillow Chief Economist Dr.Svenja Gudell. “Despite steady declines in negative equity, many cities are still facing tight inventory, especially among entry-level homes. Those homes that are available are often not in demand and stay on the market for a long time. This can be extremely frustrating for buyers and sellers alike, as they come face to face with the difficult side effects of negative equity.”

Negative equity affects individual homeowners, but markets with high negative equity rates tend to have fewer homes for sale, especially lower-priced homes favored by first-time homebuyers. In markets with a lot of negative equity, homes generally take longer to sell than in other places.

Below are the top five large metros with the highest and lowest percent of homeowners underwater.

Smallest Share of Underwater Homeowners

  1. San Jose, CA – 3.0 percent
  2. San Francisco, CA – 4.7 percent
  3. Denver, CO – 5.5 percent
  4. Dallas-Fort Worth, TX – 5.8 percent
  5. Portland, OR – 6.2 percent

Largest Share of Underwater Homeowners

  1. Las Vegas, NV – 22.1 percent
  2. Chicago, IL – 20.6 percent
  3. Atlanta, GA – 18.6 percent
  4. St. Louis, MO – 17.6 percent
  5. Baltimore, MD – 16.9 percent

 

Metro Name Q3 2015 Effective Negative Equity Rate Q3 2015 Negative Equity Rate Q3 2014 Negative Equity Rate
United States 30.2% 13.4% 16.9%
New York-Northern New Jersey 24.3% 11.5% 13.6%
Los Angeles-Long Beach-Anaheim, CA 16.6% 7.1% 7.8%
Chicago, IL 37.8% 20.6% 25.3%
Dallas-Fort Worth, TX 18.4% 5.8% 9.3%
Philadelphia, PA 33.8% 15.5% 18.1%
Houston, TX 18.4% 6.2% 7.4%
Washington, DC 34.2% 15.7% 18.4%
Miami-Fort Lauderdale, FL 26.1% 14.7% 20.1%
Atlanta, GA 37.9% 18.6% 27.1%
Boston, MA 18.3% 7.1% 9.6%
San Francisco, CA 11.0% 4.7% 7.3%
Detroit, MI 29.8% 16.6% 22.0%
Riverside, CA 30.7% 14.3% 18.2%
Phoenix, AZ 35.4% 16.4% 21.7%
Seattle, WA 25.7% 10.2% 16.2%
Minneapolis-St Paul, MN 30.8% 11.7% 15.6%
San Diego, CA 21.6% 8.1% 10.1%
St. Louis, MO 37.6% 17.6% 22.7%
Tampa, FL 31.5% 15.7% 22.0%
Baltimore, MD 36.9% 16.9% 20.1%
Denver, CO 15.2% 5.5% 8.2%
Pittsburgh, PA 23.3% 9.8% 10.7%
Portland, OR 20.8% 6.2% 11.2%
Charlotte, NC 32.1% 11.0% 16.5%
Sacramento, CA 27.3% 11.6% 15.7%
San Antonio, TX 31.2% 10.7% 12.2%
Orlando, FL 32.6% 16.1% 21.9%
Cincinnati, OH 35.6% 14.5% 18.7%
Cleveland, OH 34.5% 16.8% 20.7%
Kansas City, MO 38.1% 16.6% 20.7%
Las Vegas, NV 41.3% 22.1% 27.8%
Columbus, OH 31.8% 12.9% 17.6%
Indianapolis, IN 37.2% 15.5% 17.9%
San Jose, CA 7.7% 3.0% 4.5%
Austin, TX 20.3% 6.8% 8.0%

 

Zillow is a registered trademark of Zillow, Inc.

SOURCE: Zillow

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

 All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained by third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

What is a Buyer Broker Agreement?

(Jeff Sorg – OnlineEd)The buyer broker agreement, also known as buyer broker service agreement, exclusive buyer service agreement, etc.  is a contract for services between a buyer of real property and real estate broker. In the agreement, the buyer agrees to work with the broker for a specified period while locating and negotiating the purchase of a specified type of property. The agreement also provides that the buyer will pay a commission to the broker if the buyer purchases a property during the term of the agreement. The agreement can also require the buyer to reimburse the broker for expenses incurred during fulfillment of the contract. The commission the buyer agrees to pay in the buyer broker agreement is to be reduced by any fee paid to the buyer broker by the seller or other third party. The buyer broker contract can also, but seldom does, require the buyer to reimburse the broker for certain expenses incurred during the term of the contract.

The buyer broker agreement, also known as buyer broker service agreement, exclusive buyer service agreement, etc. is a contract for services between a buyer of real property and real estate broker.

In the usual case, under a typical Multiple Listing Service (“MLS”) cooperation arrangement, the listing  broker offers to pay the selling broker a specified percentage of sales price of the listed property when the sold property closes in escrow. This amount paid by the listing broker to the buyer broker is then subtracted from the amount the buyer agreed to pay, and the buyer pays only the difference. The amount offered through the MLS is a percentage of the total amount the listing broker was able to negotiate with the seller when entering into the listing contract.  There is no rule or law requiring the listing broker to disclose to the buyer broker the fee arrangement with the seller or that requires the listing broker to disclose to the seller the amount offered to the buyer broker. However, when the listing broker is a REALTOR®, the National Association of REALTORS® Code of Ethics requires the REALTOR® to discuss with and disclose to the seller the amount the listing broker is offering to the buyer broker. For example, if the listing REALTOR® accepts a listing at 7% and then only offers 2.5% to the selling broker, this needs to be disclosed to and agreed to with the seller. Under this type of MLS cooperation arrangement, although the money for the buyer broker’s fee is offered by the listing broker, it is really paid by the seller from the sale proceeds. It is important to note that the source of the fee does not determine the fiduciary responsibilities of the buyer broker. In other words, even when the seller pays the fee to the buyer broker, and absent an agreement allowing the broker to be a dual agent (one who represents both the buyer and seller), the buyer broker’s  fiduciary responsibility remains with the buyer.

A real estate broker can represent a buyer without a written agreement, but if the buyer is expected to pay the broker for services, then the broker must put the agreement in writing for if it is to be enforceable.

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