Real Estate Information

According to loan data company Lender Processing Services, there are an estimated 2.18 million mortgages in foreclosure nationwide, which is down nearly 2 percent from a record 2.22 million in March but up 9.5 percent from a year ago.

The number of new foreclosure starts fell nearly 31 percent from March to April, totaling 187,423 -- a 14.7 percent decline from a year ago. The shrinking number of new foreclosure starts is hopefully a good indicator that foreclosure alternatives, such as loan modifications and short sales, are increasing in their success rate. We have personally witnessed some banks beginning to offer principal reductions on loan balances which could be key to stemming the rising tide of foreclosures.

Auction notices fell 12.1 percent in Washington state from March to April and 25.4 percent from a year ago, to 2,882.

The states with the highest percentage of non-current loans are Florida, Nevada, Mississippi, New Jersey and Georgia. The states with the lowest percentage of non-current loans are Montana, Wyoming, Alaska, South Dakota and North Dakota. The current foreclosure rate in Washington State is 1 in every 715 housing units, or 0.13%

The graph below illustrates the current number of loans in various stages of delinquency:

Click image to view larger

Right now there are over 3,000 properties in our market that you can own for less than $1,000 a month! At our upcoming home buyer classes we will go through all the ins and outs of how to buy home and how to go about getting pre-approved for a mortgage.

Please see below for the times and locations of our upcoming classes. If the dates/locations of these classes don't work for you, please let us know and we can set something up that would be more convenient for you.

June 4th, Saturday 10AM - 3PM - WA House Key Class

This class is for those interested in receiving Washington State funded down payment assistance or the Washington State Home Buyer Tax Credit. For more information, please visit the Washington State Housing Finance Commission (WSHFC) here.

Location:

Maple Valley Library

21844 SE 248th St

Maple Valley, WA 98038

June 18th, Saturday, 10:00AM - 11:30AM

Location:

Covington Library

27100 164th Ave SE

Covington WA 98042

Foreclosure, Short Sale or Bankruptcy hit you recently? Here’s how long you’ll have to wait before you can get another loan with today’s rules:

Information courtesy of Viking Mortgage. Click each image to enlarge

For the month of April 2011 vs. April 2010, the average price in the Greater Seattle/King County area is up 0.4% according to the NWMLS. The average price increased from $408,715 to $410,289 and the median price fell from $340,000 to $324,500 for a decrease of 4.6% for the same 12 month period. At the end of April there were 11,121 active listings, 2,704 pendings, 1,781 sold in King County listed in the NWMLS. This rate of sales represents an 6.2 month supply of homes. Remember, 5.5 months is considered a "balanced" market by most.

Mortgage rates fell for the fifth week in a row as economic uncertainty continues to make bonds that fund most mortgage loans attractive to investors.

Rates on 30-year fixed-rate mortgages hit a new low for the year, averaging 4.61 percent with an average 0.7 point for the week ending May 19, Freddie Mac said in releasing the results of its latest Primary Mortgage Market Survey.

That's down from 4.68 percent last week and 4.84 percent a year ago. Rates on 30-year fixed-rate mortgages hit an all-time low in Freddie Mac records dating to 1971 of 4.17 percent during the week ending Nov. 11, 2010, before climbing to a 2011 high of 5.05 percent in February.

Rates on 15-year fixed-rate mortgages averaged 3.8 percent with an average 0.7 point, down from 3.82 percent last week and 4.24 percent a year ago. Rates on 15-year mortgages hit an all-time low in records dating back to 1991 of 3.57 percent in November.

SALES VS. LISTING ACTIVITY - KING COUNTY FEBRUARY 2010 TO PRESENT

A common question we are asked is "What is the foreclosure timeline in Washington?" I posted a blog about this a while back, but thought I would repost it for everyone's convenience.

Current laws state that a foreclosure sale cannot occur less 190 days from the date of default. The actual time to foreclosure has been significanlty longer than 190 days on average. In the first quarter of 2011, completed foreclosures took an average of 400 days from the initial default notice to bank repossession, compared to 340 days in first-quarter 2010 and 151 days in first-quarter 2007, according to a report by RealtyTrac, a foreclosure data site.

You can view the pdf document that outlines the foreclosure process in Washington state from start to finish here.

In our current market, many home owners find themselves in a situation where they owe more than their property is worth and would like to avoid a foreclosure. Rest assured that we can help. We work with a team of Short Sale negotiators that have experience in over 3,000 short sales with a 90% success rate on approvals. Their qualified staff of attorneys and advisors can outline your options so you can determine what is best for you.

For a short sale consultation, please contact us today at

425-413-6428 or info@HappyHomeTeam.com

Even though home affordability is the best it has been in years, and it is cheaper to buy than rent in 72% of the largest U.S. cities, there is currently an increasing demand for home and apartment rentals. A significant contributing factor to this is the large number of people that have lost their homes to foreclosure or short sales and now need a place to go. Typically, a buyer must wait 3+ years after foreclosing or short selling their property to qualify for a mortgage again. In the meantime, they still need a roof over their head.

The graph below illustrates that the apartment vacancy rate has dropped 2% since 2010:

Nationwide rents have increased an average of 2% in the last 3 months for single family residences. With vacancies declining, these rental rate trends should continue. Also, with 30 year fixed rates historic lows, now is a good time to build your long-term portfolio. We have investor financing available below 5%.

Contact us today at 425-413-6428 or info@HappyHomeTeam.com to receive a list of cash flow rental properties.

For the month of March 2011 vs. March 2010, the average price in the Greater Seattle/King County area is down 6.2% according to the NWMLS.  The average price declined from $425,545 to $394,918 and the median price fell from $343,950 to $319,950 for a decrease of 7% for the same 12 month period.  At the end of March there were 10,818 active listings, 2,751 pendings, 1,783 sold in King County listed in the NWMLS. This rate of sales represents an 3.9 month supply of homes.  Remember, 5.5 months is considered a "balanced" market by most.

The number of pending sales last month was the third highest on record since July 2007. The only other time sales were higher was in March and April of last year when the first time home buyer tax credit was expiring, thus creating an artificial demand in the market. The recent boon in sales is largely due to fear of rising interest rates and limited inventory. Traditionally you see a steep climb in inventory during the months of February, March and April, and the inventory typically peaks in August or September. The graph below illustrates, however, that inventory is still relatively flat and the home selection has not increased much from the holiday season.

SALES VS. LISTING ACTIVITY - KING COUNTY JANUARY 2010 TO PRESENT

Jumbo loans (loans for purchases over $567k) typically require 20-30% down, however we have a portfolio loan product available that requires only 5% down on purchases up to $850k.

If you are a licensed, practicing doctor or resident, dentist or other eligible medical professional, our lender could help you make the move to your next home. With this new "Doctor Loan", you can count on clear information and guidance from an expert mortgage loan officer, plus significant home financing advantages, such as:

• As little as 5% down on mortgages up to $850,000 (some limitations apply)
• Employment start date up to 60 days after closing allowed
• Student loan debt not included in total debt calculation
• A range of fixed and adjustable-rate loans

If you or anyone you know would be interested in finding out more about this program, please contact us today at 425-413-6428.