Buyers ... the time is NOW

We need to move some inventory! Out of an "average" search of homes for sale in Snohomish County, 80% or more of listed homes are either bank owned or short sales. Only 20% and less are "normal" homes for sale. It puts "Normal" Sellers in an awkward situation of having to price their homes in competition with houses listed at "sale" prices. You'll not find this "perfect storm" situation again for years ... and maybe never in my lifetime.

Yes, real estate is cyclical, but this is a really strange cycle. You have houses at unbelievably low prices PLUS interest rates for loans at an all time low. Yes, you have to have some money to put some "skin in the game". But you can still ask Sellers (banks and short sales included) for at least the closing costs in your offer. And, FHA and VA Financing (minimum down loans) are welcome ... especially on homes that have been on the market for a long time. There are even "0" down loans out there from various government entities when you buy in geographical areas and meet their qualification requirements.

We had some agents attend the auction at the Snohomish County Courthouse last Friday and they reported back that there were lots of people there and bidding was very active. A few years ago, I attended one just to check things out and there was hardly anyone there bidding on anything. So, yes, investors are in the game and are figuring out that NOW is the time to buy. You'll be noticing lots of houses that have been vacant or neglected for a long time now being remodeled and going back on the market. I've been out showing and we've seen some really cute homes that have been updated and remodeled, and their prices are still in the reasonable price range.

So the message to Buyers is Now is the Time to Buy. Dust off that 401k and take a little money out, see if Mom and Dad can't help with some gift funds, find a way to get your own piece of the real estate pie. Prices will go up, depend on it! It may take a little while, but you can bank on it. Call your Real Estate Agent today ... or give us a call and we'd love to help.

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 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.