Inventory continues to decline in Astoria, translating to increased demand (in theory). We’re beginning to see recovery from the flat month of January that followed the December hurricane. Inventory did increase slightly in the first quarter, but sold properties in March was double the number sold in January.
Another encouraging market statistic is the number of pending properties. As of today, there is 528 active residential properties in the Clatsop MLS. 66 are sale pending or under contract = Pending rate of 12.5%. Looking only in Astoria, Oregon (97103 zip) we have 133 active homes for sale, and 21 are sale pending. That’s a pending rate of 15.7%, much better than the overall county average.
The market appears to be improving slightly, but I suspect it will only remain stable over the next 2 quarters.
I saw this early Sunday morning while on the beach in Hammond near Peter Iredale at Fort Stevens State Park.
On the Paul Harvey radio program yesterday, I briefly caught a story about a new home invasion technique police are calling “doggy dooring”. The burglar would gain access to your home by either crawling through the pet door or reaching up and unlocking the knob (reminds me of the Home Alone). Thieves are getting more and more brazen, so I’d expect it won’t be to long before we start to see that kind of burglary here in Astoria. I’d suggest securing your pet door if you have one, both to prevent theft and to keep your home safe.
Mortgage rates are great, and even while we’re in the midst of the credit crunch there is no shortage of lenders willing to loan money to a responsible party. In my experience, most buyers in the Astoria market tend to use a mortgage broker- Who then shops for the best loan package for the buyer. Technology now allows transactions to be done almost completely electronically, which means your lender might be 3,000 miles away. That doesn’t concern most buyers, but for those who prefer to deal with a brick and mortar establishment I did a brief survey of what’s available at locally owned lenders.
- Bank of Astoria- Current rates not available on the website, does promote their performance guarantee.
- Wauna Federal Credit Union- As of today (3/28/08) 30 yr. fixed with 0 points 6.125%
- TLC Federal Credit Union- Also doesn’t have rates posted on-line, you can see some of their loans here.
- The Bank of the Pacific- rates not posted online, does offer several loan packages including construction loans.
This article about the shift in advertising revenues from print and other traditional outlets to on-line marketing doesn’t surprise me. I have been preaching to my fellow Realtors about staying ahead of the curve and effectively spending your advertising dollars to the point that many are probably tired of hearing me quote response and effectiveness stats.
With more than 8 in 10 consumers starting their search for a home on-line, how can you afford not to have your home in front of the majority of buyers? Many Realtors are beginning to learn that an on-line presence is not optional if you wish to grow your business in the future, but some of the old school folks in my market have me scratching my head. I see some Realtors actually ramping up their print advertising, in a time where some of the local media is out of favor with some of the residents here, and certainly nationwide the subscriber base for newspapers is down. I certainly have no problem with the pretty ads in the newspaper with your lap dog that proclaim how wonderful you are and maybe even that you’re a “million dollar producer”, but don’t let that be your entire marketing platform. Please.
When selecting a Realtor to market your home, make sure the marketing plan is heavily focused online and here’s why: The only people reading those fluffy ads in Friday’s paper are the owners of those homes for sale. We as Realtors are pressured by the Sellers to heavily advertise in the newspaper, the media that statistically is the least effective media for generating a buyer for the home. I’ve even heard “Astoria is the exception. I have to advertise in the paper to gain market share and awareness. That on-line stuff might work in a big city.”
I’ve got a real simple theory that debunks that thinking: The true top producers in our market don’t have a consistent presence in the paper and they don’t run the largest ads. Heck, if print advertising was so effective all you’d need to do is run the biggest ad and you’d dominate the market, right?
It’s the minority of agents in our market that have mastered email, let alone have a website (myspace doesn’t count).
So I say “carry-on ye dinosaurs of real estate, carry-on.” You make me look that much better.
Doesn’t appear our weather will improve much this spring break.
Our market is small enough that things like the December Storm have a large impact on home sales in the following month. If you ignore the month of Jan. ‘08, you’ll note that inventory is still increasing. I suspect in another 30 days we’ll have a true sense of where the market is heading.
It’s happens quite often, and Realtors and Buyers alike can relate to the uncomfortable situation: The Seller who must be present for all showings.
One perk to being a Real Estate Professional is you meet all sorts of interesting people you might not otherwise. I’ll even admit that by far the majority is even pleasant to talk to, but there is a time and place for that. When I’m trying to show a home to my clients, I’m focused on them and their needs- It’s my job. There is many reasons a Seller may choose to be present during a showing, but they’re handicapping the sale of the home. In my experience a Buyer spends much less time in a home when the Seller is there. The Buyers does a quick walk through, doesn’t care to discuss various features of the home while we’re there and walks out. It’s even worse if there’s more than one Buyer or decision maker involved in the process, as they typically need to discuss various features while in the home.
I can understand there will always be special circumstances that dictate a Seller be present for a showing, but please don’t make it a habit or think it’s a social event. My job is to help the Buyers evaluate the home and find answers to their questions. By being chatty, or worse by trying to explain features or obvious issues to the Buyers you’re also creating liability for anything you say or don’t say. Your job as a Seller (my client or not) is to prepare the home for the showing (clean & turn on the lights) and leave. Nothing more.
Once you’ve properly prepared your home for sale by addressing price and product, it becomes the task of your Realtor to promote your home and attract Buyers. (That’s price, product & promotion for those just joining us) Even though you’ve got a great home that’s priced to sell, you’ve got to get word out to the Buyers.
Marketing is more important than ever in a slow market for a couple of reasons:
- You need your home to grab the Buyers attention and compel to them take action
- Increased inventory levels = higher DOM (days on market)
- Consumers are constantly bombarded with advertising 24/7, not just real estate related
When it comes to marketing a property, bad marketing will net the same results as no marketing. You’ve got a house that’s ready to go, but if no buyers see the property the odds of a sale are pretty slim. There’s a million different theories on how to market real estate, each heavily dependent personal experience. For example, a baby-boomer will have a much different outlook on how to market your Astoria home than a gen-x’r would. Just as every home is different, so is every buyer. One size doesn’t fit all when it comes to promoting real estate, the plan has to suit the property.
Where are Buyers looking for Astoria homes for sale? Statistics point to the internet. More than 86% of home buyers started their search online, and those tech savvy buyers look at fewer homes before making a purchase. Whatever the marketing mix, internet marketing is not an option. Your online marketing can appeal to both local and out of town buyers, and many of those buyers will make the decision to view the property in person from what the see online… So make sure those pictures are good and have lots of ‘em.
With a market that is slower than most of us would like, it’s important to remember the basics: Price, product & promotion.
Yesterday I went over the first of three critical elements if you want to generate a quick sale in today’s Astoria housing market. You see, contrary to the belief of some Sellers today you want your house “sold” not “for sale”. The second ingredient is product. Our local market on the Oregon Coast is very competitive, especially in Clatsop County. We were cruising along at 8-10 months of inventory, but in the last three months residential inventory has nearly doubled. How does that effect somebody with an Astoria home for sale? It means instead of 20 homes directly completing with yours in terms of price and location, you would now have 35. That’s right, a Buyer for your home would have 35 other homes that also meet their search criteria. What now? If you priced your home correctly, you’ll have a slight upper hand on the competition.
The next element you can control as a Seller is product, or your home. The basics are very important: clean, clean, and clean more. After your house is sparkling, you might want to consider using a home stager to help you arrange your furniture in the most appealing manner and eliminate clutter. Your Realtor can help you determine if staging is needed. Next you need to walk through the home with a very critical eye, just as a Buyer will. Any unfinished projects need to be buttoned up, maybe some rooms need fresh paint or a more neutral color. Once the inside is under control, it’s time to move to the outside. The first thing a buyer sees first hand is the view from the curb. Walk across the street and look at your home. Does the yard need some help? Maybe some fresh mulch or plant some flowers for color. Please make sure you pressure wash any of that coastal green slime that grows on everything during the winter months. Even small things like a fresh coat of paint on the trim can help. The idea is to maximize the appearance in any way possible. Every little detail needs to be addressed.
A Buyer today looking in Astoria has lots of options, many more than even one year ago. Remember, your Buyer is looking at your home and 3, 5, or maybe 10 others. When you directly compete with that many homes, the Buyer will be more critical to trim the list. You need to be on the short list, and the key is price and product. Stay tuned for the final installment.
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