Real Estate Information

ATTENTION: Short Sale Seminar in Maple Valley

Concerned about falling home values in Maple Valley?

You are invited to join experts in the field of Foreclosure Prevention and Homeownership Opportunity. Free community meeting sponsored by the Foreclosure Prevention Administration

Date: March 7th, 1-3PM

Location: Maple Valley Library
21844 SE 248th St
Maple Valley, WA 98038

For more info, please call 206.991.5662

Per the American Recovery and Reinvestment Act, a first time home buyer is now eligible to receive a free $8,000 tax credit when buying a home!

Here is an outline of the details:

· Amount of Credit—$8,000

· Eligible Property— Any single family residence (including condos and townhouses) that will be used as a principal residence

· Income Limit—Some restrictions apply. Call us for details

· First Time Home Buyers Only—A first time homebuyer is defined as someone who has not owned a home in 3 years previous to purchase

· Repayment—The tax credit does not need to be repaid, provided the home is not sold within 3 years of purchase

· Effective Date—The credit applies to any home bought after January 1st 2009 and before December 1st 2009

Pending sales during January jumped up to the highest they have been since October with a total of 4,353 pending sales of homes and condos for the month. We have been noticing a tremendous up tick in the market as well, with 3 separate multiple offer transactions in just the last 2 weeks.

The market has been gaining steam due to favorable interest rates and affordable prices. A lot of the red hot deals offered by Real Estate Owned (REO) properties, foreclosures, and short sales are being snatched up which is making both buyers and sellers happy…Buyers are happy for the opportunities the current market presents, and sellers are happy because much of their stiffest competition is getting bought up.

Currently we have the fewest amount of homes for sale in nearly 2 years with 38,171 active listings.

Here is a quick snapshot of the market in King County:

Active Listings – 12,035

Pending Sales – 1,500

Closed Sales – 906

Median Sales Price - $364,137

Avg. Days on Market – 87

Percentage of Asking Price a Home is Selling For – 95%

SEARCH THE MLS: Click Here Now

Currently the foreclosure rate in King county is 1 out of every 938 housing units is in some state of foreclosure (as reported by realtytrac).

If that sounds high consider this for some perspective...In San Joaquin County California, the foreclosure rate is 1 out of every 64 housing units.

State                   Filings        Per Household*

California              260,709         2.27%
Florida                 107,833         1.71%
Texas                  70,037          1.17%
Arizona                65,898          3.47%
Michigan              62,419          2.09%
Georgia                53,423          2.55%
Ohio                    47,544          1.22%
Nevada                37,043          4.99%
Colorado              30,132          1.96%
Illinois                  27,957          0.74%

* Percentage of every 1,000 households in state

This is a great question that is on a lot of people's minds, especially since most everyone hopes to time the market just perfectly. The simple answer to this question is: No one knows for sure.

Lets take a look at some of the things that are creating our 60+ year low interest rates...

In November 2008, the Federal Reserve announced that it would be purchasing $500 billion in Mortgage Backed Securities (MBS) to "reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets..." You can read the press release on the Federal Reserve's website here.

This flooding of capital to the markets has brought interest rates into the 4% range on a 30 year conventional mortgage, however these rates are artificially low. The Federal Reserve has already purchased over $52.6 billion worth of MBS, with the remainder of their funds to likely run out by June. 

Once the Fed stops buying mortgages, there will be much less capital in the market which in turn would cause rates to rise. Add to this growing inflation fears, the likelihood of oil prices rising for the summer driving season, and corporate cost-cutting measures taking effect, we could see this low rate honeymoon coming to an end by this summer.

So what does this all mean? Well, with interest rates low, loans available, and prices more affordable than anytime in the last 5-6 years, now is the time to seriously consider buying a home in King County.

To find out how to take advantage of these low rates, and receive a list of the 10 Best Buys in Bellevue, Seattle, Sammamish, Issaquah, Renton or any other areas of your choosing in the Puget Sound region, go to www.speedyhomefinder.com today.

Just a quick update on the market…

Prices in the Seattle Real Estate Market remain very favorable.

Banks are lending. Rates are low. Currently rates are in the 4% range on a conforming loan ($417,000 or less). Just a few months ago the same loans would have been 6% or more! Even higher end loans known as Jumbos (Over $417,000) can be found in the low 5%. 

Did you know that a 1% reduction in interest rate has the same impact on your monthly payment as a 10% reduction in purchase price?! See below for how today's reduced rates translate into lower payments and more buying power.

The Power of 1

Loan Amount                            $250,000     $325,000     $417,000

Monthly Investment at 6%*        $1,498         $1,949        $2,500

Monthly Investment at 5%*        $1,342         $1,745        $2,239  

Monthly Investment Difference:   $156            $204           $261

How much more home         

you can buy for the            

same monthly investment           $29,050        $38,063       $48,704

The 1% difference lowers your payment significantly if you refinance; or buys you more home for the same monthly investment. More bedrooms, larger house, better neighborhood, more ammenities, maybe a shorter commute. You can save over $250 a month on your Bellevue home or Issaquah condo. Contact me at 206-300-1199 for purchase or refinance advice.

* Principle and Interest. These numbers are approximate and for owner occupied properties. Investment property interest rates may differ.  

If you’re like me, you’ve been hearing the word “recession” tossed around left and right. I realize times are tough for many people, and while I am not blind to all that is going on, I just choose to focus on the good stuff that happened in 2008:

 - Did you know that last year 4.9 million homes sold in the US?

 - Right here in the Puget Sound region there were nearly 70,000 home sales in 2008

 - Our team sold a home every 8 days on average last year in the Seattle Real Estate Market

 - Mortgage rates are hovering at or below 4.75% which are 40+ year lows!

 - 100% financing is still available

 - Over 93.3% of the population is employed

 - Locally, we have the fewest amount of homes for sale in nearly two years!

 All of the negative press flying around is almost unavoidable, and it’s funny to think how all of this will just be a blip on the radar once it has all passed.

 Take a look at the following TIME magazine covers over the last 30 years, each highlighting a “recession” claiming to be worse than the great depression, yet hardly anyone seems to remember them:

Does this sound familiar? It seems that we have been in and out of recessions for many decades and in the end of it all, when the smoke clears, Real Estate has remained a sound investment.

 If you are wondering if 2009 might be the time for you to invest in Real Estate, give us a call, we would be happy to help you weigh your options to determine what would be the best course of action for you.

We hope you have an amazing holiday season!

Check out our dancing elves video and make your own here.

Given the current state of what you hear in the news about the market and the economy, it seemed like something light-hearted was in order.

Take a crack at this fun little flash game called Mansion Impossible in which you buy and sell houses in the volatile real estate market until you can make enough profit to buy the $10 million mansion.

It's quite fun and very addicting. Enjoy!

Here is a look at the rise and fall of prices in Seattle and Nationwide since 2000. The following image is provided by this article from the Seattle Times.

You can see the Seattle real estate market has fared quite well, with only an 8.9% price drop since our peak in July 2007.