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November real estate forecast shows drop in new listings and stabilization of home pricing

The real estate market has slowed down slightly for the holiday season, from an eventful fall market. It continues to be a seller’s market in the Central Oregon Real Estate Market. Moving into the new year the market promises to be a great time to list a property.

Fewer listings and inventory

Typical for the holiday season, fewer new listings are coming onto the market in Central Oregon. With fewer listings on the market, November still saw more properties go into pending. With more pending listings than new listings coming on to the market, there were lower property inventory numbers.

Novembers inventory was lower than the previous three months. Even with a lower inventory, more homes sold in November than in October, representing great activity in the Central Oregon Real Estate Market.

Price reductions

The number of price reductions has dropped dramatically from previous months, with pricing stabilizing in November.

Seller’s Market

With a limited number of listings, it’s a perfect time to sell. Getting your property on the market at this time would be advantageous. Fewer listings could help to highlight your property. This trend is expected to continue through the new year.

Property owners that are thinking of selling should take advantage of the low inventory of property competing for available buyer’s.

Final Analysis

We can expect the trend of the seller’s market to continue. Fewer listings provides for a better market for the seller’s with fewer properties to choose from and consider.

The beginning of the new year is a great time to get a property listed. We can expect the trend of the seller’s market to continue, with continued high buyer demand for properties.  Listings that hit the market early in 2017 should have significant activity of serious buyers’ wanting to make a purchase.

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How long should you own a starter home?

How long should you own a starter home?

Starter homes are great for first time home buyers. While they can tend to come in lower socio-economic areas or require a bit of a fixer upper, they can be a great investment and a great way to enter the housing market.

The case against Starter Homes

A lot of people invest in smaller homes as their starter homes, like townhomes or condos. While this can seem like a great idea at the time, you should really only invest in property if you plan on staying there for at least 5 years.

Typically, when first time home owners buy their first home, they have a renting mindset. They are used to yearlong leases, and may have a harder time grasping the concept of longevity in a house. After about three years most people tend to start looking for larger properties.

Staying in a house for at least five years, can help you see more of a return on your investment. Moving after three years of owning a home can tend to lose you money, unless you’re planning to keep the property as a rental property.

Consider closing costs. Every time you buy and sell a home you have to pay closing costs. While these costs may be small compared to the overall price of a home, it’s still money that you lose every time a housing transaction is made.

They way most mortgages are structured, you pay more interest in the first five years. So spending only five years in a home can be a waste of your resources. After five years, you usually have made enough progress on the principal amount due, to justify paying a mortgage rather than just rent.

The case for Starter Homes

People tend to invest in as much house they can afford, which generally isn’t much. It’s usually in the upper end of what your finances allow, which stretches you thin. If you consider buying in the lower range, and not spending as much money a month on your mortgage, you have the chance to pay off a bigger chunk of your principal amount owed.

Purchasing a starter home is completely up to you and what your finances allow, but consider whether you truly consider your home a starter home or whether it’s an investment that you want to make and commit to for years to come. Consider what you can afford and what you’d like your monthly payments to be, what you want to be financially responsible for. If you want more flexibility and may not want to stay in the home for a long time, buy on the lower end of your budget. It gives you the chance to pay off the home faster, giving you more leverage when you hit the housing market the next time.