King County – Home Sales Climb, Prices Fall
July 6th, 2009 | 
Author: According to the Northwest Multiple Listing Service, the 1,655 homes closed last month, June 2009, represent a 4% increase over the same month last year. This increase represents a two year high with the most closings since October 2007. Couple this increase in single family home sales with a decrease in median home prices ($395,000 for King County) and the positive signs of stabilization for the King County markets appear to have arrived!
This lower median sales price represents a full 12% year over year decrease. Pending sales have seen a dramatic 25% year over year increase. There has been some criticism of these pending sales as being more myth than reality. This criticism can be partially explained by short sales which are often accepted but take longer than a traditional sale to close.
This news begs the question, what is causing this increase? One explanation is that the often repeated mantra, ‘its time to get off the fence’ is being heeded by buyers. Another possible explanation is the $8,000 first time homebuyer tax credit. With the ability to monetize this tax credit many first time homebuyers are now able to overcome one of the most common hurdles to home ownership, the downpayment. Condo sales remain 18% below June of 2008 despite a 16% decrease in median condo sales price to $249,000 for the same time period. Despite the weaker condo numbers, pending sales in King County are up 25% year over year.
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Retweet this post3-2-1- LIFTOFF! Prevent Failure to Launch: Help Your Kid Buy A House This Year
This article is filled with GREAT advice for those 20 something kids to seriously consider. I truly believe there will never be a better time than right now to buy and it really can be very easy and you’ll be glad you did a few years down the road when prices and interest rates have risen!
Thanks for the awesome post Janet!
It wasn’t THAT long ago that we Baby Boomers worried a lot about our kids.
You know, those irrepressible Generation Y kids who were on the Internet at age 4 and who grew up clicking (my son says I grew up turning dials and that is why his generation is superior different).
Sitting on our own fat bubble- enhanced, low taxed properties, we watched prices spiral out of control here in the San Francisco Bay Area. We believed our children would either:
- Never be able to afford a house
- Move away forever
- Move back in with us (eek!)
But post meltdown, all of that has changed. And in the wake of economic disaster lies a once in a lifetime opportunity to get junior into his very own house or condo.
This is the year to help your kid become a first time buyer. You snooze, you lose.
No, I cannot promise son will become a handyman or daughter will turn into Martha Stewart. But I can promise you that everyone in the family will look back someday (sooner than you think) and thank their lucky stars you took advantage of a 24 karat golden real estate opportunity to give your child financial stability.
Why this year? Here are 3 reasons that point directly to the stars being lined up perfectly:
- Cheap properties (prices being driven down by foreclosures)
- Low fixed rates on old fashioned 30 year mortgages
- FHA financing finally has limits high enough to buy in California
As if that isn’t ENOUGH, here is your amazing limited time BONUS OFFER: First Time Homebuyer Tax Credit of $8000 is good through the end of the year.
The strategy:
- GIFT your child the down minimum payment (3.5% of selling price)
- ASK the seller to pay the closing costs in your offer, so your kid needs NO cash at all
- SNAG a cheap property in the best location your kid can afford
Be prepared for this:
- MULTIPLE OFFERS on lender foreclosed properties for sale
- SELLERS insisting on an approval with a LENDER (not just a letter from the mortgage person)
- A LONGER time line than you are expecting
10 things not to worry about:
- Rates will go lower. FHA loans have the ability to be easily re-written if rates drop (streamline refinance)
- Real estate will be cheaper. So what? Think long term.
- Your kid isn’t “ready”. Most first time buyers do not have the perspective to understand the benefit of the tax credit, or the silver lining of economic downturns. Come to think of it, you probably weren’t “ready” when he was born.
- Going on the loan with your kid. If your kid has no job now, or just can’t afford to buy, you can co-sign.
- Finding the “perfect” house/condo. It is a starter house, for crying out loud. Do not expect lender foreclosures to be pretty
- FHA closing costs are “too high”. Yep, FHA will have slightly higher closing costs than conventional. Seller may not pay closing costs. You can gift your kid closing costs, too.
- What if my kid loses his job? “What if’s” are the biggest reason for missed opportunities!
- The real estate market is just too confusing! That is why you should find a great real estate agent
- Getting a loan is a big hassle! Get preapproved first with a great mortgage person
- Where will I get the cash to help my kid? How about an equity line or retirement account? Maybe Grandma has the money?
Get your kid set and maybe you could move in with him someday. (double eek!)
Maybe not.
Written by Janet Guilbault, Mortgage Banker/Broker Based Out of the San Francisco Bay Area
Sandy Noll
Realtor
Keller Williams Realty Kirkland
425-890-0878
sandy@sandynoll.com
www.letsachieveyourgoals.com
http://sandynolls.eastsidepowersearch.com/
www.sandynollskirklandupdates.com
Kirkland, Woodinville and the Greater Eastside
10 Reasons That You Should Wait to Buy in this Market
This is a GREAT post!
With all the posts out there about how now is the best time in history to run out and buy a home, I thought it only fair to show you the reasons that you should not do so. The last thing this economy needs is for consumers to start spending money, that would actually cause the great deals to go away. Mainly due to the fact that it would cause the economy and the real estate market to recover, and at this point that’s the last thing we need.
10- Rent is fun to pay. I mean it’s not at all like having to pay your own mortgage, why do that when you can pay a mortgage for someone else. If you went out and bought a home, there would be one less investor out there getting a free house with your money.
9- The amount of homes for sale on the market. There is no need to running out there when you have a ton of homes for sale at your disposal. You should certainly wait for the numbers to dwindle so you will have less of a choice you decide to buy. This will keep you from having to be so picky.
8- The great deals will be the first to go. This will be your indicator that you are getting close to time to start looking. All the good homes will be taken and then you can go sift through the left overs for what you can salvage.
7- Low Interest rates. Low interest rates will cause your mortgage payments to be lower, and this may make you feel like you are not doing your fair share. You should definitely wait around for those rates to rise so you can make a higher monthly payment. Then you won’t have to deal with the guilt of saving money.
6- The price of homes for sale. Currently many homes for sale are on the market at very competitive lower prices. If you can manage to hang in there a little longer without buying a home, then you can catch market during or after a recovery. This means that you will get to pay more for the home than you would today.
5- With today’s rates and prices, mortgages on many homes for sale are actually cheaper than rent on the same homes. Again this would possibly save you money, and that’s not what you want to do. You need to wait for the prices to rise so you’re not getting as good of a deal.
4- A 10% of the sales price tax credit up to $8,000. If you were to buy a home now,and you are a first time home buyer, then you would receive this tax credit. If you can hold out until next year, then you will be able to avoid this tax credit all together. This will save you the aggravation of trying to decide what to do with the extra money on next year’s tax return.
3-Builder incentives. At present, in addition to the competitive prices, many builders are offering other incentives on new homes. Incentives like a percentage of of the home for sale depending on your employment and reduced pricing on upgrades. Some are even offering free upgrades and tossing in little extras that they normally do not offer in order to sweeten the pot. This would mean that you could get a great deal on a brand new home in your area, and that’s the last thing you want. Wait for these deals to be snatched up other buyers before you even consider looking for your new home.
2- Lack of competition for you. Right now with many would be buyers sitting on the fence trying to make a decision, you would have your pick of the litter as far as the homes currently available are concerned. You need to wait until many more buyers are on the search, that way you can possibly end up in multiple offer situations and have to fight another buyer over the home you really want.
1- The pride of home ownership. There is no reason to come home to a home that actually belongs to you. Why not constantly come home to a house that you are buying for someone else.
I hope that in some way this has helped anyone reading to figure out why you should stay on that fence. There are really too many great deals and incentives out there to subject yourself to making a decision as to which one you want. So hang in there and stay on those sidelines. With a little discipline and a little luck you’ll be able to avoid all the great deals that this current market has to offer. Best of luck to you.
Sandy Noll
Realtor
Keller Williams Realty Kirkland
425-890-0878
sandy@sandynoll.com
www.letsachieveyourgoals.com
http://sandynolls.eastsidepowersearch.com/
www.sandynollskirklandupdates.com
Kirkland, Woodinville and the Greater Eastside
Do You Have The Right Smoke Detector In Your Home?
Last week on the news, I saw a story about a mother who’s three girls died in a house fire last fall with working smoke detectors. This prompted an investigation into which smoke detector was actually needed and why. Did you know there were different types? Ionization vs photoelectric…….I sure didn’t.
Most house fires fall into the “smoldering” category. The type that occurs when, for instance a cigarette is dropped on a furniture cushion or something is placed on a baseboard heater. These fires take a long time to fully ignite, but smolder for a long time and that smoldering can be deadly!
This week I received from my local fire department, Woodinvile Fire & Life Safety, an informational brochure titled “A Tale of Two Smoke Detectors” with great tips for keeping your family safe and the difference between the two types of smoke detectors and why you should have BOTH types in your home.
An Ionization alarm is most responsive to flaming fires, but research shows most house fires do not start out as flaming fires. This smoke detector does pick up the presence of smoke, but not nearly as quickly.
A Photoelectric alarm is most responsive to a smoldering fire. This detector uses light-sensing technology to identify the presence of smoke.
The third type is the combination alarm which is both ionization and photoelectric all in one. All three look very similar, so be sure to read the packaging or ask for assistance to determine which one you are purchasing. (For a more thorough explanation of the three types visit Cableorganizer.com).
* Smoke detectors should be in ALL bedrooms and sleeping areas and on all levels of your home.
* Test alarms monthly by pushing the test button.
*Replace batteries in all smoke detectors twice a year,. A good time to remember to do this is when you set your clocks back/forward.
*Smoke detectors should be replaced EVERY 10 years from the date of manufacture which is on the detector.
If you have additional safety questions or need help with a home escape fire plan contact your local fire department.
Realtor
Keller Williams Realty Kirkland
425-890-0878
sandy@sandynoll.com
www.letsachieveyourgoals.com
http://positiverealestateprofessionals.com/washington/
Your Residential Real Estate Specialist
No More Reduced Commissions on Fannie Mae Short Sales!!
Score one for
Realtors®! This is great news considering the number
of short sales in our market and never knowing if you’ll be compensated
for all your hard work and time spent!
 |
from Reducing Commissions Below 6% on Short Sales.
Every
agent who has participated in a short sale transaction knows there may
come a moment when the lender announces a reduction in the commission
it will approve as a condition of accepting an offer. A great deal of
angst circulates around this issue because, despite what the seller
agreed to pay in the listing agreement and notwithstanding the
advertised SOC, the transaction cannot close without the lender’s
approval which is often a “take it or leave it” position. The buyer and
seller want the transaction to close and agents do not want to be a
road block to that outcome. Balanced against this is an agent’s and
broker’s need to earn a reasonable income and justify their own
expenses and liability incurred in a transaction. If lenders condition
acceptance of short sale terms on agents’ willingness to accept a
reduced commission, agents really have no power – except to decline to
list or show short sale properties in the first place – a tragic result
for everyone, including lenders.
Fannie Mae was made aware of this pattern and the
adverse consequences
of agents and brokers avoiding short sales. As a result, Fannie Mae
announced a revised policy that took effect March 1. Now, “closing of
preforeclosure sales may not be conditioned upon a reduction of the
total commission to be paid to real estate agents to a level below what
was negotiated by the listing agent with the borrower, unless the fee
exceeds 6 percent of the sales price of the property in aggregate.”
This policy applies to Fannie Mae loans only and only to those loans
where the borrower is in default. Nevertheless, it should give agents
and brokers a degree of comfort in knowing that the agreed and earned
commission will be paid on many short sale transactions. For a property
secured by a Fannie Mae loan, where the seller is in default, the
lender may no longer condition acceptance of buyer’s short sale offer
on the agents’ and brokers’ agreement to reduce their commission below
a total transaction commission of 6%.
The new Fannie Mae policy says the following:
Servicing Guide, Part VII, Section 504.02:
Contacting Selected Borrowers
Effective
March 1, 2009, closing of preforeclosure sales may not be conditioned
upon a reduction of the total commission to be paid to real estate
agents to a level below what was negotiated by the listing agent with
the borrower, unless the fee exceeds 6 percent of the sales price of
the property in aggregate. Servicers are reminded that they must
continue to obtain any approvals that may be required by interested
third parties in connection with preforeclosure sales.
Sandy
Noll
Realtor
Keller
Williams Realty Kirkland
425-890-0878
sandy@sandynoll.com
www.letsachieveyourgoals.com
http://positiverealestateprofessionals.com/washington/
Your
Residential Real Estate Specialist
Are You Using Your Realtor® For Their Greatest Abilities?
In todays society where nearly everyone has access to the computer, I
know that 80% of home buyers begin their quest of home
ownership searching the web for homes in the area they desire to live
in. They search many sites, narrowing down their search to a
select few possibilities. Then they call their agent and go
have a look at what they’ve chosen.
While the Internet is an invaluable tool, it does not always provide
buyers or sellers with accurate or complete information. I
cannot tell you how many times I have heard “I was on XYZ site and it
showed this property available, but you’re telling me it’s not” or just
last week I got a call on my own listing and the caller said “Just
wondering why the sign is still up? I saw it on ABC’s site a
month ago and now it’s gone, I assumed it had sold?”
As a buyer you can do your own searches but you should also have your
Realtor® perform a search for you at least a couple times a
week. I set my clients up on a “hotsheet search” so it takes
me about two minutes per client to run a search and email the listings
to them. I don’t look through each listing, and my clients
don’t call me after receiving each email. Only if there is
something they want to see will they call me. It’s a win-win
for everyone! My clients get the latest in price changes and
listings and I take them out only when they are ready to see something!
The same can be done for clients considering listing their home for
sale. I would set them up on a “sold” property search in
their neighborhood.
As a buyer or seller it’s great to do your research
and be educated about what’s happening in the real estate
market, but don’t be afraid to employ the services of your
Realtor®. We are here to help you get the most up to
date and accurate information.
Sandy
Noll
Realtor
Keller
Williams Realty Kirkland
425-890-0878
sandy@sandynoll.com
www.letsachieveyourgoals.com
http://positiverealestateprofessionals.com/washington/
Your
Residential Real Estate Specialist
KELLER WILLIAMS REALTY IS THIRD LARGEST REAL ESTATE COMPANY IN THE NATION
HOT OFF THE PRESSES: KW IS THIRD LARGEST IN THE
NATION!!!!
The current economy is forcing many businesses to close their doors,
including many real estate brokerages. BUT with sound systems
in place, positive non gloom-n-doom attitudes and great
leaders to help us forge ahead, Keller Williams has continued to grow
and prosper!!
This week is the annual Keller Williams Family Reunion in Orlando, FL
and today during the State Of Our Company Address it was announced that
we are the third largest real estate company in the nation!!
WOO
HOO FOR KELLER WILLIAMS REALTY!!!
that is considering a career in real estate I encourage you to contact
me or someone you know who is an associate at Keller Williams Realty.
For
anyone who is contemplating hanging up their hat as a Realtor®
because their office has dwindled to a handful of negative people, call
me or an associate at Keller Williams Realty! Your office or
as we call it, your Market Center and the people who work there and
attend the meetings there can have a huge impact on your attitude and
willingness to continue during this moment of hard times. For
anyone that stays the course great rewards are ahead!
To learn more about Keller Williams Realty give me a call today at
425-890-0878 and I can put you in touch with a team leader in your area
who will help you get on the path to success!!
Sandy
Noll
Realtor
Keller
Williams Realty Kirkland
425-890-0878
sandy@sandynoll.com
www.letsachieveyourgoals.com
http://positiverealestateprofessionals.com/washington/
Your
Residential Real Estate Specialist
Home Value Down 12%……..Is It Really Bad News?
Last night on the 11 o’clock news they reported that home values had
dropped 12% in King County. To most people listening this
would sound like bad news, but is it really? The answer is,
it all depends when you bought your home.
Real Estate has never been a get rich quick investment. Sure
there were a couple years where appreciation rates reached
double digits, but not only is that unrealistic, it priced
many would be buyers out of the market. Prices needed to be
corrected and this means they needed to come down a bit. But
that doesn’t mean you are upside down in you home, if you bought a few
years ago. I don’t suggest you take my word for it, let the
numbers speak for themselves.
Let’s say you bought a home 10 years ago for $200,000. If the
appreciation rate was 5% each year for 10 years your home would be
worth $325,778.93 today. You’ve made $125k+ in ten years.
Now a scenario similar to the pricing we saw in King County.
If you take the same $200k home and have 6 years with 5%
appreciation, 1 year with 14% appreciation, 1 year with 10%
appreciation and 2 years with 2% your home would be worth $349,674.27
today. You’ve made $149k+ in ten years and with 2 years at 2%
appreciation you are still well ahead of the game!
Even if appreciation stayed at 2% for two more years you are at
$363,801 versus $359,171.27 which is where you’d have been had
appreciation stayed at 5% all along. Not bad!
Now of course for those people who bought in the height of the boom,
you may be facing little or no equity as of today. But like
those who bought ten years ago have done, you must wait and your equity
will too build! Real Estate ALWAYS goes up in value.
The most important thing to remember is DO
NOT REFINANCE AND TAKE OUT ALL YOUR EQUITY!!
Every time you take all your equity it’s as if you just
bought the home all over again!! Now is a great time to
refinance if you can get a lower rate, but leave your equity alone,
you’ll need it when you decide to move up to another home.
For those contemplating selling, you may be thinking “my
neighbor got $20,000 more than what my Realtor told
me my home is worth today and he sold a couple of years ago”.
This may be the case because he sold during the height of the
boom when prices were driven up because of multiple offer situations,
and sometimes more was paid than a home was really worth! The
other thing to keep in mind, is if your home has decreased in value
based on selling prices of two years ago, so has the home you are
wanting to buy!
The best part about buying and selling right now…..historically low
interest rates! You can actually afford more home today with
rates around 5% than you could have two years ago with rates
at 6-7%! Here’s a link
to a mortgage calculator you can play around with. Put in
your purchase price and play with the rates. You’d be
surprised what 1% can do to your payment!
Bad news sells stories! I wish the truth or good news did
too, but it isn’t as drama filled so the media will continue to only
report the bad news. The best way to get informed is to seek
the help of a Real Estate Professional or Mortgage Professional.
We are the ones with the factual data and we’ll help you to
make informed decisions when selling, buying or refinancing real estate. And there hasn’t been a better time than now to sell and buy if you’ve positioned yourself right!!
(This example is for homes in western Washington, contact your local
area expert for information about the values of homes in your city).
Sandy
Noll
Realtor
Keller
Williams Realty Kirkland
425-890-0878
sandy@sandynoll.com
www.letsachieveyourgoals.com
Your
Kirkland, Woodinville, and Bothell Home Expert
Attention First Time Home Buyers…….
If you are a first time home buyer and have 10-20% for a down payment/loan fees and want to purchase a home at the foreclosure auction (which requires all cash) and quite possibly get a screamin deal, CALL ME TODAY!!!
I have a resource to help you do just that and they are eager to lend to qualified buyers/investors. Not limited to first time home buyers either……systems for investors lacking all cash too!
Sandy Noll
Realtor®
Keller Williams Realty
425-890-0878
sandy@sandynoll.com
www.letsachieveyourgoals.com
Your Woodinville, Kirkland & Bothell
Real Estate Professional
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