2009 Lynnwood Lock Up: Carole Swan
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Monday, October 5, 2009
Thursday, August 20, 2009
THE SHORT SALE SAGA(S) … it’s a whole new world out there!
I’ve been handling short sales for years in this business, but never have they been more prevalent than in this market. Every listing I have now is currently scheduled for a short sale; and, with all my years in the business, I’m learning something new every day.
One short sale required a book of paperwork, both from the Seller and from me, was delivered to the Lender a couple months ago and requires “60 days for review”; and you can bet they’re not going to make a decision until the 60th day … one day away from the auction, I might add. So, Buyer is in limbo until a decision is made.
Another short sale required a purchase and sale agreement, an authorization letter and a HUD 1 Statement. That’s it! They ordered an interior Broker’s Price Opinion the next day and we received approval within 5 days! And, they’ve even offered to RAISE the commission and PAY the Seller $2,500.00 if we can meet a closing deadline. Needless to say, both agents and Seller are very cooperative to get this one done.
Third property listed just the other day and authorization letter sent off to two Lenders the next day. Two days later, received a phone call from first Lender representative wanting to “chat” with me about how it’s going and to “keep active in the process”. (NOTE: Most lenders don’t want to talk to you until you have a valid purchase and sale agreement.) This Lender even suggested a $5,000 price drop and “has worked with second Lender frequently and will work out the arrangements with second when offer received”. (NOTE: Usually it’s the agents working their little hearts out to get first and second Lender to cooperate.)
Long story short … everything in the Mortgage Market is in flux. Some have realized they are going to take a hit and just want to make it less painful. Others seem to want to drag out the misery as long as possible. As an agent working short sales … flexibility is the key.
One short sale required a book of paperwork, both from the Seller and from me, was delivered to the Lender a couple months ago and requires “60 days for review”; and you can bet they’re not going to make a decision until the 60th day … one day away from the auction, I might add. So, Buyer is in limbo until a decision is made.
Another short sale required a purchase and sale agreement, an authorization letter and a HUD 1 Statement. That’s it! They ordered an interior Broker’s Price Opinion the next day and we received approval within 5 days! And, they’ve even offered to RAISE the commission and PAY the Seller $2,500.00 if we can meet a closing deadline. Needless to say, both agents and Seller are very cooperative to get this one done.
Third property listed just the other day and authorization letter sent off to two Lenders the next day. Two days later, received a phone call from first Lender representative wanting to “chat” with me about how it’s going and to “keep active in the process”. (NOTE: Most lenders don’t want to talk to you until you have a valid purchase and sale agreement.) This Lender even suggested a $5,000 price drop and “has worked with second Lender frequently and will work out the arrangements with second when offer received”. (NOTE: Usually it’s the agents working their little hearts out to get first and second Lender to cooperate.)
Long story short … everything in the Mortgage Market is in flux. Some have realized they are going to take a hit and just want to make it less painful. Others seem to want to drag out the misery as long as possible. As an agent working short sales … flexibility is the key.
Monday, June 29, 2009
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!
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!
Wednesday, June 10, 2009
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!
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!
Tuesday, May 12, 2009
The latest numbers from the NWMLS are showing signs the market is turning. Check out my latest blog at http://ping.fm/ndKbY
Friday, May 8, 2009
The Numbers are Showing Good News for the Market
The Northwest Multiple Listing Service released their latest numbers and it looks like great news for the area. The reported pending sales for April was up 11.4% compared to 12 months ago and rose 21.3% over March. Brokers reported 5,372 pending sales for King, Snohomish, Pierce and Kitsap Counties which is the first time the number cracked the 5,000 level since August of 2007.
So, what do the numbers mean? Basically it looks like the inventory is shrinking ... good news ... and Buyers are finally getting off the fence because of the $8,000 First Time Buyer incentive from the Government, extremely low interest rates and bottom line prices on homes. So, if you are a Buyer waiting for the "bottom" ... the time is now to dive into the pool before the water in the pool gets shallower.
And, do you qualify for the first time Home Buyer Credit? IF you have not owned a primary residence or purchased a primary residence within the last 3 years and IF your net adjusted income is $75,000 or less ($150,000 for a couple), you may be eligible. Check with your Lenders now and it's always a good idea to check with your tax expert, too.
Average prices for a single family residence in King County is now $417,500 and in Snohomish County at $316,271 according to the NWMLS. And, the FHA insured loan limits are now at $719,000 so there's plenty of inventory for a 3.5% down payment through an FHA loan. The Feds may be taking a look at this number shortly, so get your oar in the water now.
As always, if you need a referral to a good Lender or want more information, please give us a call.
So, what do the numbers mean? Basically it looks like the inventory is shrinking ... good news ... and Buyers are finally getting off the fence because of the $8,000 First Time Buyer incentive from the Government, extremely low interest rates and bottom line prices on homes. So, if you are a Buyer waiting for the "bottom" ... the time is now to dive into the pool before the water in the pool gets shallower.
And, do you qualify for the first time Home Buyer Credit? IF you have not owned a primary residence or purchased a primary residence within the last 3 years and IF your net adjusted income is $75,000 or less ($150,000 for a couple), you may be eligible. Check with your Lenders now and it's always a good idea to check with your tax expert, too.
Average prices for a single family residence in King County is now $417,500 and in Snohomish County at $316,271 according to the NWMLS. And, the FHA insured loan limits are now at $719,000 so there's plenty of inventory for a 3.5% down payment through an FHA loan. The Feds may be taking a look at this number shortly, so get your oar in the water now.
As always, if you need a referral to a good Lender or want more information, please give us a call.
Thursday, April 30, 2009
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!
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!
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