First Quarter Numbers Are Published!

And I do believe we've bounced, finally! The NWMLS reported on April 5, 2010, that the Member Brokers have reported a 51% jump in pending home sales over the same month a year ago. While entry-level home sales have been driving the market, March showed that 91 residences in the NWMLS area sold for $1 million or more; compared to only 40 homes in this price range for the same period last year.

NWMLS Brokers also reported a year-over-year increase in the number of new listings added to the inventory, up 26.7% over a year ago. However, even though listings are up, so are sales, which takes DOWN the inventory approximately 2.8% from a year ago. That's good news for Sellers.

Closed sales also outpaced year-ago totals by a wide margin, a 47% increase over last year. And, even with sales being up, prices are still down somewhat, about 2% system side; however, prices have increased 1.8% since January of 2010.

Home Buyers are still experiencing some frustration, however, in actually getting offers accepted. Homes that are priced well (basically short sales and banked owned real estate) frequently have more than one Buyer interested and therefore the best offer wins. And, we are still experiencing long waiting periods for Bank Approvals on shorts sales, too. Buyers are still reluctant to offer over list price to make the deals work. And, with the Home Buyer incentive going away at the end of this month, sales may take a small dip.

If you'd still like to take advantage of the Home Buyer Tax Credit, you only have until April 30, 2010, to have a signed around accepted contract. You still have until June 30, 2010, to get it closed, but the window of opportunity is closing fast. Please call us if you'd like more information or assistance with a purchase or putting your home on the market.

Statistics for this article taken from NWMLS News Release of April 5, 2010.

All the Signs are Pointing up, Up, UP

If you're a Buyer / Investor waiting for the bottom to arrive, you may have missed it! If you're a Seller waiting for the market to improve, all the signs are pointing to a recovery in the Pacific Northwest. According to CNBC.com, a new report shows that five U.S. states are poised to lead the nation out of a recession ... and guess who's on that short list! Right! Washington along with Colorado, Idaho, Oregon and Texas. The reason that Moody's Economy.com expects us to lead the way is because of the "high concentration of high-tech companies" in our area.

And, nationwide we're continuing to have encouraging housing news showing that Existing Home Sales were up 2.4% for May to a 4.77 million annual rate. Yea! Three months in a row that we've seen an increase and the median price for an existing home also rose to $173,000. (Which, of course, is much lower than our area.) New home sales trends showed an increase and inventories are slowly coming down.

The Feds continue to hold interest rates down a while longer to hold inflation in check; so the good news is, it's really, really time to buy. And, in order to take advantage of the First Time Home Buyer credit, you must close on a home before November 1st. Our advice? Get off the fence now and get into the game!

Is There Any Good News in the Housing Market?

As a matter of fact, there is! The Economic Recovery has been painful, but there are signs that we may, actually, be recovering. It's still a long road to the top, but it's my opinion we've started to climb.

The stock market is looking better, even with the GM Bankruptcy problem. The April Pending Homes Sales showed a 3.2% improvement over a year ago, now up to 6.7%. Mortgage rates are starting to creep up to over 5% ... but give me a break! I remember when mortgage rates at 8% were considered a great deal, and that wasn't very long ago; and it was just a year ago when we were looking at 6.09%. Some other statistics show April Personal Income was up with wages and salaries inceasing for the first time in 8 months; however, consumers are still holding tight to their money, but that isn't necessarily a bad thing. Everyone needs to know they can hold enough in reserve to pay the bills for next month.

In my opinion, this is a great time to buy real estate. For investors, it's the first time in a long time where they can put minimum down and still make their investments cash flow. For first time homebuyers, they can be assured of an $8,000 tax credit provided they close before November 30th. (Note: "First time" means they haven't owned or bought a primary residence within the last 3 years.) And prices are really, really low. Find yourself some short sales and suffer the waiting period ... it's worth it in the long run because banks are now looking at taking offers on what the current market value is worth, not what is owed on the property. I even spoke to a lender yesterday that wasn't requiring a big "short sale packet" that includes mounds of paperwork showing why the Seller can't afford the house any more; but were willing to look at just an offer to purchase, a net proceeds statement and current market analysis. Yea! What a boon!

So, if you've been fence sitting waiting for the bottom to arrive, time to leap off that fence and into the market. There may never be another one like it for years to come!

ARE WE THERE YET?

This real estate market reminds me of those road trips we took as a family when the children were young ... always impatient and asking, "Are we there yet?" That's the question on all agents' and clients' minds ... have we hit the bottom of the market and when do we start up again?

And the best answer is ... maybe. After every downturn there is an upturn and we're more than ready for that. According to the most recent numbers, the median sales price increased nationwide in March for the second month in a row, the biggest monthly jump since June 2005. The months' supply edged up to 9.8 from 9.7 but the raw inventory actually declined for all types of homes. The Federal Housing Finance Agency also reported that home prices rose 0.7% in February, the second month in a row that prices rose putting them up 1.7% for the last two months. Again, the biggest gain since 2005. And, March New Home Sales came in at 356,000 annual rate, a small decline from February but better than expected. And, according to the same source, inventory levels continue falling, down to 46.0% from their mid-2006 peak and at the lowest level since 2002.

So, what do the numbers mean? It shows, in my opinion, that we're "bouncing along the bottom" of this housing market and I believe we're looking toward a slow recovery starting this summer. Short Sales and REO sales are now dominating the market but there are still real "Sellers" out there that need to move and have some equity positions so they can sell without having to negotiate with the bank.

As for Buyers who've been waiting for the best deals ... they are out there NOW. My serious suggestion is to get off the fence and get in the game. Interest rates may never be lower and housing prices are unbelievable. Gentlemen and Ladies ... start your engines!