Nancy Hill
Solution Partners NW
NancyHill@Windermere.com www.BestKingCountyRealEstate.com 253-653-6323
Housing Market is ENERGIZED
Posted on May 4, 2012
Western Washington housing market “energized” and showing signs of “definite turnaround”
KIRKLAND, Wash. (May 3, 2012) – Northwest Multiple Listing Service brokers reported double-digit gains in both pending and closed sales during April compared to a year ago, but the most eye-catching number may pertain to prices. For the first time in more than four years (since January 2008) the year-over-year change in selling prices was positive.
The price gain was a modest 1.27 percent for last month’s sales of single family homes and condominiums that closed in the 21 counties served by Northwest MLS. For single family homes (excluding condominiums) the price gain compared to 12 months ago was 2.9 percent. Condo prices fell 7.9 percent.
The median price for last month’s closed sales area-wide was $240,000 for single family homes and condominiums combined. That compares to $237,000 for year-ago sales. The figure for April also outgained the median price for completed transactions during the months of March ($225,000) and February ($218,944).
Prices for single family homes continued climbing. The median price for last month’s closed sales was $250,000, up from both a year ago ($242,950) and from March ($234,487).
While cheered by the figure that snapped a 50-month string of negative numbers for year-over-year price comparisons, Northwest MLS brokers said consumers must be realistic in their expectations. They also noted the market recovery will be slow and incremental.
“We’ve seen appreciation three months in a row, signaling a definitive turnaround in the market,” remarked OB Jacobi, president of Windermere Real Estate. “Due to the shortcomings in the Case-Shiller index I think it will take them until November to report year-over-year appreciation,” he added. (The S&P/Case-Shiller Home Price Indices track changes in the value of residential real estate both nationally as well as in 20 metropolitan regions.)
“As is fairly typical of a recovering market, the activity first heats up in the urban centers, and then spreads to the surrounding suburbs and outlining areas. We are now seeing this trend,” noted Jacobi, who is also a member of the Northwest MLS board of directors.
Tight inventory is creating sellers’ markets in some areas, according to reports from MLS directors. Inventory is down more than 27 percent for the Northwest MLS market overall, and by even larger margins in three counties: Snohomish (down 46.2 percent), King (down 39.4 percent), and Pierce (down 28.6 percent). Brokers say as demand outstrips supply, competition may intensify, especially for homes that are well-priced and in good condition in desirable locations.
Brokers added 9,166 new listings to inventory last month, which was 917 fewer listings than the same month a year ago. At month end, the selection totaled 25,291 active listings, a drop of 27.5 percent from a year ago according to the latest figures from Northwest MLS.
MLS members reported 8,790 pending sales across all 21 counties during April for a 22.9 percent increase from a year ago when there were 7,154 mutually accepted offers.
Talk of a seller’s market has to be tempered, Wilson emphasized, because “when sellers hear these words in the news they instantly think their homes are worth a lot more money….and they are not. Even if our home prices appreciated 2-to-3 percent a year – which they aren’t currently -- it will take many years for homes to return to the values that we saw a few years ago,” he suggested.
Despite his cautionary words, Wilson was upbeat. “We continue to see an increase in activity across the board. More people at open houses, more listings coming on the market, more buyers making offers and more multiple offer situations on correctly priced and staged homes.”
Inventory is considered by many industry observers to be a key indicator affecting the housing market. In a recent Bankrate.com interview about the market’s recovery, Stuart Gabriel, director of UCLA's Ziman Center for Real Estate in Los Angeles, suggested zeroing in on inventory, which he called “the most important statistic.”
“Consumers are bothered by the lack of inventory and are ready to make sure that they do not miss out on what may be the leveling off of the declining market values,” Stenvers stated. Buyers who were expecting to have offers accepted that are well below market value “are beginning to express frustrations” that this is no longer occurring, he added. “As prices stabilize and inventories drop many buyers will feel the chance at home ownership at bargain prices slipping from their grip,” the MLS director observed.
Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership includes more than 22,000 real estate brokers. The organization, based in Kirkland, Wash., currently serves 21 counties in Washington state.
Post a Comment : Author: Nancy Hill
Get OFF the Fence!
Posted on March 1, 2012
HUD announced the official increases to FHA mortgage insurance scheduled for April 1st of this year:
The upfront premium is going to 1.75% from 1% (the fee rolled into the loan) and the annual cost is moving from 1.15% to 1.25% for loans with less than 3.5% down.
If you are on the fence to purchase a home and want to put minimum monies down you need to get moving in order to save yourself some cash.
Post a Comment : Author: Nancy Hill
Mortgage Loan - What Steps to Take.
Posted on September 18, 2011
Mortgage rates are at 50-year lows, making buying a home more affordable than ever for families with a stable income and good credit.
Many eligible borrowers are not taking advantage of the opportunities because of misinformation about getting a mortgage today. It's important that you get the facts about buying a home in today market.
What You Will Need
In order to qualify in today's market you will need:
- A stable income
- A good credit history
- A downpayment Generally, between 5-20 percent of the purchase price for a conventional, conforming mortgage.
- Documentation Responsible lenders today will want documentation verifying your income (W-2 forms, tax returns, employment), credit history and assets (such as bank statements to verify your savings).
- An impartial third-party appraisal Your lender needs this to verify the value of the house you want to purchase.
You will interact with various professionals during the home buying process, all of whom are valuable resources and perform necessary roles..
First Steps to Take
Before you start shopping for your new home, you will want to:
- Find out your current credit history and score. You don't want to start out with any surprises.
- Start gathering all of your documentation as outlined above.
- Consult with your lender to review your income, expenses and financial goals to determine the type and amount of mortgage you qualify for.
- Talk to your lender about applying for a mortgage and getting a pre-approval letter. This letter provides an estimate of what you might be able to borrow provided your financial status doesn't change and demonstrates to home sellers that you are a serious buyer.
There may be a few new rules in today's market, but all the old ones still apply too. Do your research, reach out to the professionals, stick to your budget and be sure you are ready to take on the financial responsibilities of being a homeowner.
Post a Comment : Author: Nancy Hill
Quadrant Homes in Kent, WA
Posted on September 10, 2011
Quadrant Homes has two new communities in Kent, WA. - Elliot Landing and Elliot Crossing.
A true variety of home plans with the ability to personalize and customize them to best fit how YOU live in the spaces within a home.
Post a Comment : Author: Nancy Hill
Should you Rent or Buy?
Posted on July 23, 2011
An interesting article about our current market. Should You Rent or Should You Buy? Click to Read further
Post a Comment : Author: Nancy Hill
Why It's Time To Buy
Posted on June 13, 2011
Why It's Time To Buy
A recent article provides more information for prospects on why now is a good time to buy a home. A few highlights:
- Mortgage rates fell to 4.55% at the beginning of June (near 50-year lows).
- The ratio of home prices to income is now 20.9% lower than the 15-year average through 2010, and 12.5% lower than the 1989-2004 average.
- It’s a buyer’s market.
- "Household formations" are on the rise and the excess in housing is “shrinking fast.”
Post a Comment : Author: Nancy Hill
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