If you’re looking for a shop in Eugene, this spot was perfect, and sold at a great price. It’s about 1,800 square feet, has lots of power, 2 overhead doors, is plumbed for air with a compressor, and has an office and locker room. It has a fenced yard, and is about 1/4 acre. It’s also convenient to major arterials. Asking price is 200K, and some debt may be assumable. If you’d like more information or would like to see it, give me a call at 517-6543.
Month: December 2009
Nice warehouse in Eugene: leased
If you were looking to lease light industrial space, this building was a good deal. Located in West Eugene, this 12,000 s.f. building is divided approximately in two. The front half is at 36 cents per square foot, and the back is at 34 cents. The space is clean, newer and nice. It’s also very close to major arterials. If you need more information, give me a call at 517-6543.
Foreclosures in Crescent Village
Crescent Village is a nice project in Eugene, to the north of Costco. Tens of millions have been spent on it, and it’s a visionary new urban development; a mini-village with about everything you’d want.
Some of the townhouses on Lord Byron are an especially good deal these days. Originally listed in the 500’s, 4 of them are now bank-owned, as a result of the housing crisis, and are now in the 300’s. That’s a savings of about 150K!
I’ve shown them before, and they’re not for everyone. The fit, finish and materials are superb, but it’s up-and-down living, which puts some people off. But, if you want something hip and cool, where the action is, I’d give them a look. Give me a call at 517-6543 if you’d like to see them.
Eugene: 2009 Summary, 2010 Forecast
Not much of a picture, but the best I could do under the circumstances (fog and on Christmas.) This is somewhat analogous to Eugene in 2009–not much of a year, but we did the best we could. We started the year with a terrible real estate market, with inventories close to 2 years. Fear and gloom were palpable with record unemployment and the greatest recession in many of our lifetimes.
While not spectacular, 2009 ended up better. Housing inventory shrank drastically, to around 6 months, and we even had a bit of a seller’s market in some areas. Distressed sales, namely foreclosures and short sales, were prevalent. Record low interest and the first time buyer’s tax credit helped pull us out of the slump.
My forecast for Eugene in 2010:
1) Housing prices will trend up slightly. Median price in Eugene will hover around 200K.
2) Interest will remain low for the first half of 2010, and be in the sixes by year’s end.
3) Unemployment will decrease to 8-9 %.
4) Distressed property sales will continue to play a major role in our housing market, with probably 1 in 10 sales in this category.
Tax Credit Extension
The WSJ recently ran an article that had more specifics about the home buyers tax credit, which can be used on homes up to $800,000 and has a maximum income limit of $245,000. The credit does have to be used for the purchase of your principal residence, but you no longer have to be a first time home buyer!
I recently sold this move-up house in South Eugene for 342K, on short-sale, down from the original listing price of 539K. There are plenty of good deals to use the tax credit on.
Learn about Eugene Real Estate
If you’re interested in learning more about real estate investing, you’re welcome to join Kim Crieger Goodwin and me for our monthly Eugene Real Estate Investor Forum. It’s held monthly on the second Mondays at the Countryside Restaurant in Eugene.
FHA reserves low
FHA capital reserves have fallen to ½ %, short of the 2 % minimum required by congress. In part this is due to FHA insured loans gaining in popularity, and in part it’s due to a higher default rate. FHA backed loans are one of the few ways of getting a home mortgage with less than 20% down payment.
So, what’ll happen? Most likely, at least in my opinion, will be an injection of capital from the Treasury. Alternatively, the minimum down payment may be raised from 3.5%, although this would chill the fragile housing recovery, and may be less politically tolerable.
I recently sold this house on short-sale, or pre-foreclosure, to buyers who used FHA for financing.
Oregon: Green Power Leader
Oregon is set to become a leader in renewable wind energy. The Shepard’s Flat wind turbine farm has been approved, and Caithness Energy is planning on spending 2 billion dollars for the project in Northeastern Oregon. The closest town is Arlington, along the Columbia River, which I had to look up. The power will be fed into the BPA grid, and exported to our neighbors to the south, in California. Eugene’s local utility, EWEB, has its own renewable energy program, called Greenpower, which receives power from wind turbine farms, among other sources.
Low mortgage rates
As predicted here, nearly a year ago, the recession ended 3rd quarter, 2009. The government is keeping home mortgage rates low at least through March, 2010. How? It has been buying a large proportion of the mortgages issued, and says it will complete its plan to buy some 1.25 trillion dollars worth, slated to be complete March, 2010. If you’re looking for property, it is a good time to buy.
Rising Home Prices in 2010
Home prices are projected to rise between 3 and 5% in 2010. Inventories of houses have fallen recently, nationwide, because new home buyers are snapping up houses. About ½ of all the sales have been by folks who haven’t owned a home in 3 years. The government’s tax credit is undoubtedly fueling this first-time buyer’s frenzy.
Around Eugene, we actually have a bit of a seller’s market in some areas, as measured by inventories of less than 6 months, which is in sharp contrast to the prolonged buyer’s market we’ve experienced. Prices tend to rise in a seller’s markets.