September 2002

Moving to Portland Newsletter

by Susan Marthens

Portland Home Market

July 2002 Residential Highlights

Portland realtors keep getting new listings, but realtors keep changing them to pending or sold.  In fact, the number of pending sales for the Portland metro area is up 4.8% when comparing July 2002 to July 2001.  Comparing the other listings categories, closed sales did fall a slight 1.5%.  And, though we keep getting new listings, it is technically not as many as last July.  The difference made for a drop of 0.4%.

Year-to-Date Trends

All measures of market activity for the first seven months of 2002 are within 2.5% of 2001 figures.  Closed sales are up 0.7%.  New listings, meanwhile, have fallen by 2.2%.  Pending sales are down 1.9%.

Affordability

The Affordability Index at the end of the second quarter was 1.27 as calculated using an National Association of Realtors (NAR) formula.  The June median price ($183,000), HUD's median family income ($57,200) and Freddie Mac's 30-year fixed rate of 6.65% are the basis for the Index, which also assumes a 20% down payment.  Affordability showed a slight decline attributable to an increase in the median price.

Cost of Residential Homes in the Portland Metro Area

Area

Average
Sales
Price

Percent
Appreciated
 **See note

North

11.1%

Northeast

7.4%

Long-Term Mortgage Rates Reach Six Months Low

July 29, 2002 

In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.22 percent, with an average 0.7 point, for the week ending July 29, 2002, down from 6.27 percent last week. Last year at this time, the 30-year FRM averaged 6.92 percent.

The average for the 15-year FRM this week is 5.64 percent, with an average 0.7 point, edging down from last week's average of 5.71 percent. A year ago, the 15-year FRM averaged 6.47 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.34 percent this week, with an average 0.8 point, unchanged from last week's average of 4.34 percent. This time last year, the one-year ARM averaged 5.67 percent.

Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.

"New and existing home sales for July rebounded from the lower pace that we saw in June," said Frank Nothaft, Freddie Mac chief economist. "Continued low mortgage rates open the housing market to a broader segment of the population and contribute to the on-going vitality in home sales. And, since mortgage rates are expected to remain low until the economy picks up more steam, the housing sector should stay active and healthy for some time to come.

"Most forecasters now expect 2002 to be another record year for home purchases and possibly for loan originations as well if refinancing continue to hold up through the end of the year."

Portland Area Mortgage Rates

As of late August 2002, Portland area lenders and mortgage brokers were offering APR 5.72% to 6.69% on 30-year fixed mortgages. Washington Mutual Bank (one of the area's largest lenders) was offering 6.13 percent (30-year FRM) with zero points (APR of 6.18 percent). Another large lender, Wells Fargo Bank interest rate was 6.38 (one point) with an APR of 6.69.  Federated Home Mortgage has the lowest APR (5.72) with an interest rate of 5.50 and 2.25 points.

To check on local mortgage rates go to Bankrate.

Portland Area Mortgage Brokers

To talk with a mortgage broker, consider: 

• Associated Mortgage Group   They are licensed in both Oregon and Washington.    Telephone:  (503) 221-0064  Fax:  (503) 221-0396.  Mr. Dave Jolivette is the contact.
• Stevens Mortgage  Telephone: (503) 670-0535  Fax: (503) 670-0481.   Mr. David Dishman is the contact.

You may want to read our Privacy Policy with regard to recommendations.

New Home Sales Hit Record Pace in June

Motivated by low mortgage rates, house hunters turned into buyers, sending new-home sales in July 2002 to the highest monthly level on record and giving a solid boost to sales of previously owner homes

Sales of new homes in July climbed to a seasonally adjusted annual rate of 1.02 million, a record monthly sales pace and a 6.7 percent increase from June's level, the Commerce Department reported in late August. 

Another factor motivating home buyers: solid appreciation in housing values.  That offers people an attractive investment, especially given the volatility of the stock market, economists said.
 

Freightliner Trucks Celebrates 60th Anniversary
Company Celebrates 60th Anniversary

Should you see these two red historic "big rigs" on the road or at truck show soon, it's because Freightliner is celebrating its 60th year as a truck manufacturer.  

Portland is the USA headquarters for Freightliner Trucks.  Freightliner Trucks is North America's leading manufacturer of medium- and heavy-duty diesel trucks and specialized chassis.  They are a wholly owned subsidiary of DaimlerChrysler and employ 14,000 people in North America - about 3,000 of these work in Portland.

History

Freightliner got its start in business in the early 1940s when Consolidated Freightways founder Leland James and a group of Western motor carriers launched Freightways Manufacturing Company, Inc. The fledgling truck manufacturer built Freightways trucks for the carriers' group, who wanted lightweight power units for long distance, over-the-road freight hauling.  The first unit with a "Freight-liner" nameplate was produced in December 1940, with the hyphenated name referring to both the truck and its trailer combination, which the operation built as a lightweight package.  By the summer of 1941 the first trucks with the Freightliner name place were built.  Other notes of interest:

• First sleeper tractors built in 1950.
• Freightliner holds approximately 1/3 of the conventional school bus market.
• Leading U.S. exporter of heavy-duty trucks with sales to 30 countries.

Oregon and Timber

The figure continues the trend of shrinking harvests in the 12 years since the Northern Spotted Owl was listed under the Endangered Species Act. The total harvest includes timber cut on private lands and lands owned by federal, state and local governments.

Timber Ownership in Oregon

With 28.5 million acres of forest land in Oregon, ownership is divided:

• More than half, 16 million acres (56%), is owned by federal agencies.
• The state owns 906,000 acres (3.2%).
• Private landowners own much of the rest. About 11.5 million acres (40.7%).

Most of the private forest land is owned by the timber industry - their holdings have increased dramatically over the last 2-3 decades.  They saw the "writing on the wall" and quickly began buying their own land in order to ensure a continuous supply of wood products.

On federal forest lands, only 173 million board feet was cut in 2001.  Forests west of the Cascades accounted for most of the decline in the 2001 harvest. Its harvest was 356 million board feet less than in 2000. East of the Cascades, a record low of 598 million board feet of timber was harvested, although increases were recorded in a half-dozen counties.

Timber Harvest and Forest Fires

Rod Nichols, spokesman for the Oregon Forestry Department, said the rough wildfire season can be blamed on the reduced harvest. Many scientists and environmentalists dont see it that way. Experts at the Northwest Interagency Coordination Center in Portland say Oregon has had a rash of larger fires since the 1980s. But this year aside, the worst fire season in recent memory occurred in 1987, a year after a timber harvest of more than 8.7 billion board feet. 

The media too often labels one side the "environmentalists" and the other side the "timber" industry.  There are more than just two sets of players in this struggle. The conflict in the West about forests exists between recreational land users (hikers, skiers, backpackers, hunters, fishing people, etc.), some environmental organizations, rural communities that depend upon forest for jobs, and the timber industry.

Controlling forest fires in Western states is becoming more difficult every year as more people are in the path of the fires.  Many country homes have been built over the last few years, and this means fighting any fire that threatens homes.  In the past, the fire swept through the area and the only thing lost was the trees.  Now it is homes and other types of personal property in the path of the fire that must be saved. 

The summer of 2002 has been one of the worst fire seasons in the West.  Over 500,000 acres have burned in the Oregon/California Biscuit fire (largest fire in the West to date in 2002). But fewer than three in 10 acres burned in California and Oregon were charred severely enough to kill surface vegetation and extensively damage trees. Satellite images show a third or more of the acreage within the huge Biscuit fire President Bush toured last month remains untouched by fire.

"There is a lot of unburned area, and there's a lot that burned at a very low intensity," said Greg Clevenger, resource staff officer for the Rogue River and Siskiyou national forests, where the Biscuit fire is widely reported as having burned about 500,000 acres.

The lesson, say many researchers, is that while the media focus on roaring flames that remain a real but limited part of most fires, most flames are far less impressive and destructive. This summer's fires appear to have burned many acres mildly enough to sweep out overgrowth left by decades of fire suppression without turning forests into ruins. In that way, the fires resemble natural blazes that long ago cleared Western forests and may clear the same tinder now targeted by Bush for thinning.

We don't pretend to have the answers to forest fires, but we think Sustainable Northwest, a Portland-based non-profit organization whose goal is to "promote environmentally sound economic development in the communities of the Pacific Northwest" has an approach worth pursuing.

Martin Goebel, the head and founder of Sustainable Northwest, believes that the rural communities are the real losers.  Martin's group has developed the Healthy Forests, Healthy Communities (HFHC) partnerships. Visit the HFHC Web site to learn more.
 

Pearl Bank Truly a Full-Service Organization
Drop off you Laundry, Dry-cleaning, and Shoes for Repair

Besides offering the traditional services that a large bank provides such as checking and savings accounts, investment management, treasury management and a trust department the Pearl District branch of the West Coast Bank offers its concierge service. A customer can drop off laundry, dry-cleaning and shoes for repair. No, they dont have a laundry on the premises. No, they dont give pedicures.  But who knows what will come.

West Coast Bank wants to be known as having the clout of a big bank with the personality and service of a community bank. And, it just may pull that off. Currently in second place of Oregon-based banks with assets of $1.462 billion, Umpqua Holdings is first with $1.490 billion and slated to become larger if its merger with fourth largest Oregon-based Centennial Bancorp is in completed.  West Coast Bank has headquarters in Lake Oswego, Oregon.

West Coast Bank will open its second downtown Portland branch in the Pearl District in the third quarter of 2002.  "The Pearl District, rich with tradition and history, has experienced significant growth in recent months," noted Regional Vice President Dave Hansen. "In the past year alone, more than 900 condominiums and 500 apartments have been built in the Pearl District and more than 300 additional condominiums are still under construction.

Tango Every Night in Portland

"Portland where they take their tango seriously . . . but not themselves."

The phrase really describes Portlanders.  They do take many things seriously, but seldom themselves.  Portland resident Cindy Hansen, a mountain climber and Tango dancer, epitomizes the spirit of Portland and the tango.

So if you're heading to Portland and love to tango or want to learn to tango, you will find a welcoming community of tango dancers.

SW Beaverton-Hillsdale Highway
Suite 100
Portland, Oregon 97221
(503) 297-1033

Web Design by
Dasan
(503) 819-0011
Fax (503) 224-9083

Susan Marthens
(503) 497-2984
Evenings & Weekends
 (503) 242-4228
Fax (503) 220-1131