June 4, 2009

Statistics just released show that the Inventory of Available Homes for Sale is down about 20% percent over last year, with Pending Sales up 17.7% over last year and 3.5% over last month.  The NWMLS statistics cover 19 counties in Western and Central Washington.  The 5498 pending sales is the greatest volume since July of 2007.  The lowest number of sales was 2432 in December 2008, at least partially impacted by the severe weather.

For the 4 county Puget Sound area, Pending Sales jumped 21.5% from a year ago.

Courtesy of Donald Luskin, SmartMoney via MSN Money

The recession?  It's over, says economist. 

Jobless claims have peaked, says a member of the bureau charged with declaring when US recessions begin and end.  In every recession since 1974, the peak in jobless claims has come within weeks of the bottom.

details

http://articles.moneycentral.msn.com/Investing/Extra/the-recession-it-is-over-economist-says.aspx

May 25, 2009

It's great to be hearing more and more positive items about the overall economy and the Real Estate market.  I can report that my personal activity has really picked up over the last few weeks; both with buyers and sellers.  It feels that the bottom for overall consumer confidence has been reached or is certainly quite close.

In between an open house for a new listing and showing a new buyer on Saturday, May 16; I spoke with an agent in my Windermere-Yarrow Bay office that was working on his 4th offer of the weekend.  That evening, I spoke with an agent who received offers on 6 different listings all in one day!   Sunday was also busy for me, with an open house for a new Kirkland Highlands listing and previewing for a new buyer client. It would be naive to think this indicates an immense turn-around in the local real estate market, but it is certainly an indicator of a warming trend.

May 18, 2009

Friday's (May 15) Seattle Times reported that hometown retailer Nordstrom has raised their outlook for the year.  Even Nordstrom has realized that Value is a prime factor these days; this has led them to actually drop prices on some staple items to be in the below $100 range.  I learned about the price reductions in December, when I purchased a nice cashmere scarf for $89(non-sale)  that had previously been priced above $100.  Along with the Seattle Times article, my personal observations were validated by a Bellevue Point of View saleswoman who confirmed their activity and sales were up.

While getting my hair cut at Bellevue's Gene Juarez salon this week, I noticed an increase in customers over recent visits.  My stylist told me that activity was definitely picking up and that his schedule has been full recently, a nice change over a slow prior 12 months.

So there you have it; the non-scientific Nordstron Gene Juarez index.  NGJ for short.

May 16, 2009

Seattle ranks number six nationally as a destination for state-to-state moves, according to a recent analysis by Relocation.com, a consumer resource for moving services and reported by the National Association of Realtors.  The top five destinations are Las Vegas, Denver, Charlotte, Phoenix and Portland, Oregon.

The least likely state-to-state move destination was Michigan, with over twice as many inquiries about moving out of the state as into the state were recorded.

Pending home sales jumped 25% from March to April in King County.  These sales are fueled by low interest rates, first-time buyer incentives and more realistic pricing by home sellers. 

The NorthWest Multiple Listing Service (NWMLS) reports that Pending sales of single family homes reached their highest level since August 2007. 

The median price for closed sales was down by 15% year over year, but up from February and March of this year.  Seattle median prices are down only 9.3% over last year,  while the Eastside is down 18.1% for the same period.  Sales generally close in 4-6 weeks, so it will be interesting to see how prices fare with closing of these recent Pending sales.

Looks like things are starting to improve for our local market, especially in the lower price ranges.

May 6, 2009

• Housing Tax Credit Advance Loan Program: The Legislature passed the state budget with a provision authorizing the State Treasurer to invest $25 million in a Tax Credit Advance Loan Program. There are still details to be worked out, but the program would allow first-time home buyers to utilize the tax credit as down payment when closing the sale of their first home.

This is great news for first-time homebuyers!  Stay tuned to this blog for further details.

April 29, 2009

Happy Earth Day!   Yes, I remember the first Earth Day in 1970.  We walked to grade school and picked up garbage on the way.  You would not believe the mound of garbage we delivered to the school that day.  We also thoroughly cleaned our classroom, even dusting the ceiling rafters!  Woo-hoo.

Found this tip about fusing plastic bags on the Windermere site, kind of fun! The website is also pretty interesting ; I may be attached to it because of the name www.Etsy.com Here's the link http://etsylabs.blogspot.com/2007/05/long-overdue-fusing-plastic-bag.html

This was just released by the Washington Realtors association.  I will post more news as this is finalized.  What a great opportunity this may be for first-time homebuyers!

OLYMPIA, Wash. - The Senate Ways and Means Committee last night unanimously approved a measure designed to help first-time homebuyers come up with a down-payment.  The committee adopted the measure as an amendment to the proposed Senate biennial operating budget.

The proposal would make the $8000 federal tax credit for first-time home buyers available at the closing of a home sale instead of when a buyer files a tax return. Homebuyers would repay the $8000 after filing for and receiving a tax refund. The amendment creates a Tax Credit Advance Loan Program and authorizes the State Treasurer to deposit $25 million in a financial institution giving it the ability to open a line of credit to the State Housing Finance Commission to provide the down   payment loans. The deposit would not deplete state funds, but would provide liquidity for the financial Institution to lend its own funds.
 
The program is the first of its kind in the nation and would work as follows:

• The State Treasurer’s Office would make an off-setting deposit in an FDIC-insured short-term
  account with a selected financial institution. The investment would earn a low interest rate to
  stay fully insured under federal guidelines.
•  Realtors and other stakeholders back the loans with funds to provide security against losses.
• The financial institution provides the Washington State Housing Finance Commission a line of
  credit to advance up to $8000 to qualified first-time home buyers for a down-payment.
• Buyers repay the advance loan after filing for and receiving the tax credit.

            The amendment is the result of the efforts of the Washington REALTORS®, Washington State Treasurer’s office, and Washington State Housing Finance Commission. State Treasurer James McIntire wrote the budget proviso and is helping to advance the measure through the state legislature.   
             The goal of the program is to get the money to buyers efficiently and return the federal refund quickly so that the HFC can turn it around to provide more assistance.  The funds may revolve as many as three times before the tax credit expires, reaching up to 9000 first-time homebuyers.  These “bridge loans” would expire at the same time as the federal tax credit, on November 30, 2009.  All of the bridge loan funds return to the state system by early 2010 to use for capital projects in 2010-11. 
  

April 17, 2009
           

These Top Ten Homebuyer Mistakes are borrowed from MSN Real Estate/Smart Money, with my personal interpretations.

1) Not knowing how much you can afford. 

No need spending time looking at homes you can not afford or missing out on homes you can afford.  The first stop I recommend for all my buyers, is to speak with an experienced, professional Lender.  There are excellent Mortgage Lenders and Brokers, both.  Ask your friends for their recommendations or call me for mine.  You can also check out lenders at www.betsyweyer.com

2) Assuming foreclosures and/or Short Sales are great deals.

Using a prior loan amount as any indicator of current value is mis-guided. Very often, these homes are in extremely poor condition.  Short sales may be virtually impossible to negotiate on; because not only does the seller have to accept your terms, so does the dispassionate and overworked pre-foreclosure department employee, who may never even have seen the house.

3) Letting your true feelings show.

No matter how much you love the house, try to save your comments until you are outside the house and away from the listing agent or seller.

4) Failing to find a good Buyer's Agent.

Real Estate Agency laws vary greatly by state.  Washington State has changed the law many times, since I entered the business in 1992.  The current law makes the most sense to me and is the most beneficial to the majority of buyers.  Be sure you understand how the agent likes to work and be sure to have  a discussion about Dual Agency.  Dual Agency is legal, but I will not participate as a Dual Agent because I feel it robs my clients of the highest quality representation.  Remember that the listing agent has a contractual duty to their seller.

5) Underestimating the costs of homeownership.

Remember that homes can be expensive to operate and maintain.  Be sure you have an experienced inspector check the house out before you close on the purchase.  The purpose of the inspection is not to renegotiate the price or gouge the seller for repairs, but to be sure you are aware of the current condition of the home.  You can often negotiate repairs during the purchase process.  Maintenance items are generally not part of this negotiation process.

6) Failing to budget for taxes.

Unless you make a significant down payment, most lenders will collect monthly and pay the taxes for you.  This protects them from a tax foreclosure.

7) Assuming your first offer will be accepted.

Even in a Buyer's Market, rarely will a first offer be accepted.  Talk with your agent about negotiation tactics, which may vary depending on the seller.  If you are negotiating on a foreclosure, you may be able to craft your offer to be readily accepted.

8) Skipping the home inspection.

If you have a buyer's agent you can trust, you should be able to trust their inspector recommendations.  If a buyer has an inspector they want to use, that's great.  if they don't, they usually ask me to make an appointment with my first available inspector.  Knock on wood, but I don't think I have ever had a problem after closing that was caused by inspector error.  I recommend inspectors who have years of experience and disclose everything to the buyer, while explaining how serious a defect is likely to be.

9) Doing too much too fast.

Not every dollar spent on improvements will translate to increased value.  Be aware of what improvements you are making for your own enjoyment and which are for increased resale value.

10) Failing to include contingencies in the offer.

Home sale contingencies are obvious, but some others are easily missed.  Don't forget to disclose any contingent source of funds; even from a home sale that is nearly closed or stocks that have not yet been sold.  Undisclosed or hidden contingencies may create problems for you in your transaction.

Knowledge is key.  Be sure to hire an agent who is willing to eductae you on conditions and practices in the local Real Estate Market!

April 16, 2009

Windermere Real Estate, East  has just released their interpretation of March's Real Estate sales figures.  This evaluation shows that our local Real Estate market is becoming more balanced, balance being considered a market with home selling in an average of six months.  This is measured by the absorption rate, figured by calculating how many home sales close in the month, compared to homes available on the market.  4 closings per month, with 24 active listings = 6 months of inventory and what is considered a balanced market.

Half of the NWMLS areas in King and Snohomish County had less than six months' supply of homes.  While only 5 areas were Balanced in February, that number rose to 17 areas in March. 

NWMLS areas 705, 710 and 715 are even moving towards a Buyer's market, with homes spending an average of less than 3 months on the market before selling.  These areas cover Seattle neighborhoods North of the Ship Canal to NE 145th and from 145th to the King/Snohomish County line (only west of I-5).

Feel free to contact Betsy for specifics in your neighborhood.

April 14, 2009

Goldman Sachs rode out the last months of 2008 with the help of a Federal rescue.  GS has now reported a stronger than expected first quarter profit and Monday (4/13/2009) announced they would seek to raise money in the capital markets to repay the government.  If their bid for funds is successful, Goldman  would be the first major recipient to repay TARP funds.

Way to go, Goldman Sachs!

April 14, 2009

Reading the paper this morning (please don't let us lose The Seattle Times!) was an absolute pleasure!  So much good news, I can hardly stand it.

President Obama is promoting his administration's efforts to lower mortgage rates with stories from borrowers who have benefitted from the program.  The goal of this program is to help borrowers who are current with their home loans, but who want to be able to keep more money in their pocket and to keep them more secure in their homes.   For further information on this program check out www.MakingHomeAffordable.gov

Wells Fargo is anticipating first quarter earnings of $3 Billion, after a fourth quarter loss of $2.7 Billion.  The $3 Billion is a record quarter for Wells Fargo.  The fact that money is cheap and mortgage applications are surging is a big part of this turnaround.  Looks like the efforts in The Other Washington may be making a difference for at least one of the big lenders.

Finally, Retail sales numbers are looking up.  Wal-Mart reported a 1.4% increase in March sales over last year.  Many other retailers reported sales that were higher than expected, but still down over 2008.  Nordstrom stock jumped 17.4% yesterday on news of its earnings.

I'm sure we have not seen the end of this downturn, but it is great to see several positive items in one day!

April 10, 1009

For a good part of the last 18 months, it has been very difficult to obtain a Jumbo Loan.  Conforming loans cover amounts up to $417,000; with  mid -value loans up to the $500,000's being allowed under some short-term programs.  Loans over these amounts are categorized as Jumbo Loans and have recently been difficult to obtain.

Bank of America recently began offering 30 year fixed-rate jumbo loans under 6%.  (Fees and requirements may vary).  Inside Mortgage Finance publisher Guy Cecala expects other banks, such as Wells Fargo and JP Morgan Chase to follow suit.

Loosening of credit for these Jumbo loans will be a welcome change in our high-priced local market.

The Pending sales volume for March was up 35% in Seattle and 28% for King County as a whole; over February of 2009.  In comparison, the 2008 increase was just 9% in Seattle and 10% Countywide. 

Single family home sales are down just 1.6% countywide compared to March of 2008.  Median house prices are down 17% for all of the County over March 2008.  City prices are down 14% for the same timeframe.

Another positive statistic is the decrease in homes listed for sale; which is down 9.5% in the County and 7.5% in Seattle from March 2008; coming afer smaller drops in January and February of this year.  This continued decrease in availability should stabilize prices as demand rises to meet the supply.

For specifics about your community, contact betsy@betsyweyer.com

44%! That is how much the transactions increased in my Yarrow Bay Windermere office from February to March of this year.  Boy does that feel good!

Agents are in the office and getting back to basics; working hard to market themselves and their properties and to educate their buying and selling clients to the realities of the current market.  

Every day seems to bring some positive economic news; so much better than a few months back when we seemed to be surrounded by negative news.  There will probably be some ups and downs over the next year, but we seem to be heading in the right direction.

Seattle Metropolitan Magazine (April 2009) is focusing on Real Estate in this issue.  They present lots of information and I agree with MOST of their conclusions.  Feel free to contact me about particulars.

Their neighborhood vital statistics is in a pull-out report and very interesting to review.

Medina and Clyde Hill come in with the highest percentage of married individuals at 77%; while Capitol Hill and the University District (61% and 78% respectively) have the highest percentage of single occupants.

Seattle's Central Area and Mt Baker came in with a 94% backing of Governor Gregoire, while Maple Valley led the way for the challenger Rossi with an 80% rate.

South Beacon Hill registers with a diversity (non-white) rate of 87% while Madison Park barely registers with a rate of 5%.

Greenlake and Seward Park claim the highest rate of parkland with over 200 acres per square mile, while Skyway has none (sorry, Jim!)

You should still be able to find this issue on the newsstands; it's a great one to keep.

Monday March 23, the Seattle Times reported on the largest monthly jump in home sales in the last 5 years.  This news was a factor in the near 500 point jump in the Dow Jones Industrial Average; another bright spot in business news.

Just as I remind us all to take negative national real estate news with a grain of salt, I also must warn the same for positive news.  Real Estate is local.  The Seatte/Bellevue area has been behind the country in the downswing  of the real estate markets over the last few years.  We are also behind the upswing we are starting to see in various markets.

I do see the positive national news as an indicator that things are starting to look up.  Although we may be a bit behind in the recovery; I trust we will follow closely.

Just a few weeks back, I posted information about Low Rates, High Inventory and the new Tax Credit for First-Time Homebuyers making this a great homebuyer's market. Yesterday's Seattle Times (Sunday, March 22, 2009) confirms this with a huge story in their Real Estate section.Today it is possible to obtain a 30 year fixed FHA loan for well under 5% interest.  (Buyers must qualify and rates and fees change from day to day). 

Average area home prices are at the lowest level since May 2005, creating even more opportunity.  The Times article did a nice job of re-stating the 10% tax credit (not tax deduction) up to a maximum of $8000.  The credit also has some income limitations.

I would be happy to talk with you about any homebuyer questions.  First-time homebuyer or otherwise!

March 24, 2009

Times are challenging for Real Estate Agents and Real Estate companies.  Just this week, one large company merged two of their Downtown Bellevue offices and another company closed an office in Redmond.

The same day these changes were announced, I was participating in a MasterMind meeting at my Windermere Office, led by Joe Deasy; one of our Owner-Managers.  We were sharing ideas about what is working for agents and our clients in today's market.  With so many experienced and knowledgeable agents sharing, lots of great ideas came out.  Keeping educated and motivated is important for agents.  Attitude is such a big part of success.  I am extremely happy that I work with a company that realizes what its agents need to succeed; for themselves and their clients.