Real Estate Information

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.

These changes were effective April 18, 2011

1. The Upfront Mortgage Insurance remains at 1.00%.
2. The Annual Insurance Premium will increase from .90% to 1.15% for Loan to Values (LTV's) greater than 95% on 30 yr loans.
3. The Annual Insurance Premium will increase from .85% to 1.10% for LTV's less than or equal to 95% on 30 yr loans.
4. The Annual Insurance Premium will increase from .25% to .50% for LTV's greater than 90% on 15 yr loans.
5. The Annual Insurance Premium will increase from 0% to .25% for LTV's less than or equal to 90% on 15 yr loans.

In other words: on a $100,000 FHA 30 year fixed loan this equals a $21 higher monthly payment for homebuyers.

Please call or email us for more information.

Did you know that there are state funded programs that will provide down payment assistance for first time home buyers? The Washington State Housing Finance Commission (WSHFC) has several programs that are geared towards helping make home ownership possible for you.

The WSHFC primary first mortgage is a below-market interest rate loan program for qualified *first-time homebuyers. Borrowers must meet the program income and acquisition cost limits and must attend a free Commission-sponsored homebuyer education seminar. The following loan types can be used for this loan program: Federal Housing Administration (FHA), Conventional (Fannie Mae or Freddie Mac), Rural Housing Services (RHS) and Veteran’s Administration (VA).

* A first-time homebuyer is defined as someone who has not owned
and occupied a primary residence at any time in the past three years.

The WSHFC requires that all first-time homebuyers using their loan programs
attend a free 5-hour seminar sponsored by the Commission. The seminars are free of charge, open to the public, and are not a sales presentation. The seminars take you through the home buying process including the role of the lender and real estate professional. Having been trained by the WSHFC, we are certified to teach these classes.

In addition to down payment assistance programs, there are still home buyer tax credits available to those that attend this class as well. For more information on the WSHFC programs, please visit their website at www.wshfc.org

Information on our next upcoming class is below:

May 3rd, Tuesday 3:30-8:30PM - WA House Key Class

Location:

Maple Valley Library

21844 SE 248th St

Maple Valley, WA 98038

Nevada posted the nation's highest state foreclosure rate: there was a foreclosure filing for one in every 35 housing units in that state. That compares to the U.S. average of one filing for every 191 housing units.

Arizona had the next highest state foreclosure rate (1 in 60 housing units), followed by California (1 in 80 units), Utah (1 in 98 units), Georgia (1 in 108), Michigan (1 in 121), Florida (1 in 152), Colorado (1 in 157) and Illinois (1 in 160).

Our changing marketplace has brought all sorts of new terms and abbreviations that may be unfamiliar to most. Things like short sale, REO, BPO, trustee sale etc. Once such term that has been a hot topic is "Shadow Inventory".

Shadow inventory refers to properties that will be for sale, but are not currently listed amongst other active properties. CoreLogic, a data and analytics company, recently released a report tracking the current levels of shadow inventory in our market.

The graph below illustrates the number of homes that are seriously delinquent but have not been foreclosed on yet, homes that have a foreclosure date scheduled but have not gone to auction yet, and homes that have been foreclosed on but the bank has not listed them yet.

When the distressed shadow inventory becomes listed in the active marketplace, it typically results in downward pressure on prices. CoreLogic estimates that there are approximately 1.8 million properties that are currently distressed shadow inventory. While this number is down from nearly 2 million this same time last year, having a backlog of distressed properties will likely prevent robust appreciation in the near future.

If you are curious if there is any shadow inventory in your neighborhood, please give us a call at 425-413-6428. We have access to this information and would be happy to share it with you.