According to Ron Sparks, Managing Broker of Coldwell Banker Bain, Bellevue, we have the following informative report:
PMI, one of the nation’s largest insurers of home mortgages, recently released a report that contained both hopeful and cautionary projections for the national real estate market. Among the highlights:
Forecasts a 19% increase in 3rd quarter 2011 sales over 2010's 3rd quarter.
Forecasts a 14% increase in 2011 sales over 2010.
Prices increasing marginally by years end, then up 3% in 2012, and another 3% increase in 2013.
On the cautionary side is the anticipated rise of mortgage interest rates. PMI noted that current rates are near 2011 lows (4.66%), but predicted and increase to 5.65% in 2012, and 6.60% in 2013. This means that if homes with identical $400,000 mortgages are purchased, but one is bought at today’s rate (4.66%) and the other at the 2013 projected rate, (6.60%), then the home with the higher rate will cost nearly $30,000 more in payments over the first five years of ownership. A remarkable difference that should be considered when thinking about buying…
On a more local note, PMI reported that in Washington State “seriously delinquent mortgages”, the pre-cursor to the foreclosure process, have increased just 0.02% year over year. This would be highly contrary to the perception that Washington has a burgeoning foreclosure issue on the horizon.
As always, I appreciate Ron Sparks and his market perspective.
Monday, July 25, 2011
Tuesday, July 12, 2011
Record sales!
This just in....our Bellevue office just closed $50M in sales last week! It's been 17+ years since our office has sold this kind of volume. Slow market? Really!
Monday, May 23, 2011
What a Buyer needs to know about their Signing Appointment
It is a happy day when a buyer gets the call that all their closing documents are in order and they are asked to make an appointment to sign the documents. Signing occurs one or two days before the scheduled closing and is determined by when the loan documents are received from the lender Plan to be at the signing for about 45 minutes to an hour for a first mortgage and if there is a second involved, it may take up to an hour and a half. What should you bring? Buyers each need to bring two forms of identification and one must be a photo id such as a driver's license or passport. Also, buyers need to remember to bring a cashier's check written from a Washington state financial institution or have their funds wired, confirming the bank's wiring requirements well in advance of the actual closing date. Who will be at the signing? The escrow closing officer will explain all the documents to you and show you where to sign. Your Realtor may or may not attend your signing.
Wednesday, May 4, 2011
Property Taxes
April 30th has come and gone. Did you pay your property taxes? In King county, bills are mailed to homeowners only once a year on February 14 and that bill has both first and second half of year payment stubs included. The f First half of the year payment is due April 30 and the second half of the year is due October 31. Payments may be made by personal or business check, cash or credit card. Online payment service is available. If you pay by credit card, you will be charged a 2.35% processing fee. If you are late on your payment, interest will accrue at 1% per month on the unpaid balance. Extensions are not granted for hardship or any other reason, due to state law. It is always the taxpayer's responsibility to pay their taxes, so even if you have a mortgage company paying your taxes, you should visit the property tax website to ensure your taxes have been paid. You may not pay next year's taxes in advance, due to state law. http://payments.kingcounty.gov/metrokc.ecommerce.propertytaxweb/
There are senior and disabled property owners property-tax deductions available if your annual income does not exceed $35,000 and you own and reside in your home, including mobile homes. You must be at least 61 years old or if under 61, retired due to disability and unable to work.
You may get an exemption from taxes on the value of improvements if you add new rooms, decks, patios or other improvements if you apply for the exemption before construction is complete. For details, call the Department of Assessments at 206.296.7300.
If you disagree with your assessed value and feel a mistake has been made in valuing your property, you may contact the Department of Assessments and file a valuation appeal by contacting the King County Board of Equalization at 206.296.3496.
For more helpful information on paying property taxes in King County, check out: http://payments.kingcounty.gov/metrokc.ecommerce.propertytaxweb/
There are senior and disabled property owners property-tax deductions available if your annual income does not exceed $35,000 and you own and reside in your home, including mobile homes. You must be at least 61 years old or if under 61, retired due to disability and unable to work.
You may get an exemption from taxes on the value of improvements if you add new rooms, decks, patios or other improvements if you apply for the exemption before construction is complete. For details, call the Department of Assessments at 206.296.7300.
If you disagree with your assessed value and feel a mistake has been made in valuing your property, you may contact the Department of Assessments and file a valuation appeal by contacting the King County Board of Equalization at 206.296.3496.
For more helpful information on paying property taxes in King County, check out: http://payments.kingcounty.gov/metrokc.ecommerce.propertytaxweb/
Friday, April 8, 2011
Spring Construction Meeting a Real Need
Have you noticed? Everywhere you turn, there is a construction worker in a hardhat holding a sign to either slow you down or make you wait while workers repair roads, or build houses. Yes houses! Evidently builders have seen the light at the end of the tunnel and are breaking ground and building homes.
If you are keeping up with the Seattle Times, you know the rental market is red hot. Dupre + Scott Apartment Advisors showed us that the Puget Sound's vacancy rate has fallen from 7.2% in the fall of 2009 to 4.6% in our current market. When the apartments fill up, consumers start thinking now may be the time to buy, and they are right.
As mentioned in a previous blog, area employers are hiring in record numbers. I just learned that Microsoft Redmond needs to hire 3,000 more employees in the next 4 or 5 months. That's just for the Redmond complex! Of course, for every worker, we need a place to house them.
In our Bellevue Way office alone, one year ago in January/February, our office closed $67M in sales. This year in the same January/February period, we closed $94M. That's a 40% increase. 1 year ago January/February our average sale was $693K. This year? $782K. We have more evidence of a changing market and sellers may begin to call the shots.
Buyers take note: our market is becoming more competitive. Mortgage rates are still hovering around 5% for 30 year conventional fixed rate loan. If you are looking for a home, better look quick. Pendings on the Eastside continue to climb and outpace new listings as demand increases. You are likely going to see a lot more competition for the newly listed home your agent just emailed you. And if that home looks sharp and is priced right, it likely won't be on the market for long.
Incidentally, 4 years ago this month, April 2007 was the peak of our market. Prices have fallen to about 1/3 of that value, but with market demand increasing, buyers need to be aware we are in a transitional market. Home prices are likely to rise if the rules of supply and demand hold true.
Read more: http://www.seattlepi.com/local/article/Skittish-Seattle-area-residents-heat-up-apartment-1307247.php#ixzz1IzjqieNd
If you are keeping up with the Seattle Times, you know the rental market is red hot. Dupre + Scott Apartment Advisors showed us that the Puget Sound's vacancy rate has fallen from 7.2% in the fall of 2009 to 4.6% in our current market. When the apartments fill up, consumers start thinking now may be the time to buy, and they are right.
As mentioned in a previous blog, area employers are hiring in record numbers. I just learned that Microsoft Redmond needs to hire 3,000 more employees in the next 4 or 5 months. That's just for the Redmond complex! Of course, for every worker, we need a place to house them.
In our Bellevue Way office alone, one year ago in January/February, our office closed $67M in sales. This year in the same January/February period, we closed $94M. That's a 40% increase. 1 year ago January/February our average sale was $693K. This year? $782K. We have more evidence of a changing market and sellers may begin to call the shots.
Buyers take note: our market is becoming more competitive. Mortgage rates are still hovering around 5% for 30 year conventional fixed rate loan. If you are looking for a home, better look quick. Pendings on the Eastside continue to climb and outpace new listings as demand increases. You are likely going to see a lot more competition for the newly listed home your agent just emailed you. And if that home looks sharp and is priced right, it likely won't be on the market for long.
Incidentally, 4 years ago this month, April 2007 was the peak of our market. Prices have fallen to about 1/3 of that value, but with market demand increasing, buyers need to be aware we are in a transitional market. Home prices are likely to rise if the rules of supply and demand hold true.
Read more: http://www.seattlepi.com/local/article/Skittish-Seattle-area-residents-heat-up-apartment-1307247.php#ixzz1IzjqieNd
Monday, March 14, 2011
Inventory Needed on Seattle's Eastside!
I am amazed at the perceptions that buyers in the greater Seattle market have. While at an open house last weekend, I had over 100 buyers stream through the property. I engaged in conversation with as many visitors as I could, but it was quite a challenge. As soon as I said hello to one family, the door would open and another couple would come in. There were so many buyers looking for a new home and when I spoke with other agents in my office, they remarked that they had the same experience: the buyers have come out in force.
Interest rates have begun to creep up. That can stir buyers to act. In the past year, we have seen nearly a 1% rise in interest rates. This can translate into hundreds of dollars more per month on your mortgage payment. I've noticed that many buyers will focus on the list price of the home while ignoring the interest rates, but both need to be watched closely. Check out this link for more specifics on what rising interest rates can cost you: http://www.cbbain.com/Pages/SiteContent.aspx?PID=285
Besides rising interest rates, we have seen an influx of new buyers from other regions. Microsoft, Boeing, Amazon, Google, Starbucks, Nordstroms and more are rolling out the red carpet for talented new hires from all over the world....and they are showing up at open houses, pulling flyers from boxes and searching the internet looking for a home. As a result, we are seeing our inventory shrink. While the perception of buyers is that foreclosures are flooding the market and it's a buyers' market, the numbers I'm crunching tell me otherwise. We need more inventory!
Let me give you some statistics from Seattle's Eastside, which is my primary market. For this report, I am looking exclusively at single family residences. Did you know that in the last 7 days in Kirkland, where I live, there are 31 new listings and 46 homes went pending? In Bellevue, where I have my office, we had 31 new listings and 50 homes went pending. In the same 7 day period in Woodinville there were 10 new listings and 14 homes went pending. In Redmond, there are 26 new listings and 57 homes went pending. In Issaquah, 14 new listings and 15 new pendings. In Bothell, 12 new listings and 14 new pendings. Do you think our market may be changing? Do you see we have a need for more homes? This is a trend I see all over the Eastside.
According to Conway Pederson, publisher of The Puget Sound Economic Forecaster, the forecast is for about 30,000 net new jobs in 2011, meaning even without births, marriages and divorces, we will need another 15,000 housing units in 2011 (each net new job equals 1/2 a housing unit) That is on top of the 23,600 jobs our area added in 2010, and the 65,100 population growth in Washington.
How about new construction? That could help take care of some of this increase, but in 2010, only 14,000 new housing units were constructed. That means we were short about 12,000 housing units in 2010. Is it any surprise builders are moving in, buying up lots and beginning to build again? Would they be doing this if there wasn't a real need?
Next week I'll be back at my post, greeting all those who follow a sign to my open house. I'll smile, welcome them, hand them a flyer and discuss our changing market. I'll listen politely while some are sure to want to inform me that we have a glut of homes and it's a buyer's market.....but you and I both know better.
In conclusion: If you know of anyone who is thinking of selling their home on Seattle's Eastside, they couldn't pick a better time. Have them contact me at LaurenHunnicutt@cbbain.com and I will get their home sold!
Interest rates have begun to creep up. That can stir buyers to act. In the past year, we have seen nearly a 1% rise in interest rates. This can translate into hundreds of dollars more per month on your mortgage payment. I've noticed that many buyers will focus on the list price of the home while ignoring the interest rates, but both need to be watched closely. Check out this link for more specifics on what rising interest rates can cost you: http://www.cbbain.com/Pages/SiteContent.aspx?PID=285
Besides rising interest rates, we have seen an influx of new buyers from other regions. Microsoft, Boeing, Amazon, Google, Starbucks, Nordstroms and more are rolling out the red carpet for talented new hires from all over the world....and they are showing up at open houses, pulling flyers from boxes and searching the internet looking for a home. As a result, we are seeing our inventory shrink. While the perception of buyers is that foreclosures are flooding the market and it's a buyers' market, the numbers I'm crunching tell me otherwise. We need more inventory!
Let me give you some statistics from Seattle's Eastside, which is my primary market. For this report, I am looking exclusively at single family residences. Did you know that in the last 7 days in Kirkland, where I live, there are 31 new listings and 46 homes went pending? In Bellevue, where I have my office, we had 31 new listings and 50 homes went pending. In the same 7 day period in Woodinville there were 10 new listings and 14 homes went pending. In Redmond, there are 26 new listings and 57 homes went pending. In Issaquah, 14 new listings and 15 new pendings. In Bothell, 12 new listings and 14 new pendings. Do you think our market may be changing? Do you see we have a need for more homes? This is a trend I see all over the Eastside.
According to Conway Pederson, publisher of The Puget Sound Economic Forecaster, the forecast is for about 30,000 net new jobs in 2011, meaning even without births, marriages and divorces, we will need another 15,000 housing units in 2011 (each net new job equals 1/2 a housing unit) That is on top of the 23,600 jobs our area added in 2010, and the 65,100 population growth in Washington.
How about new construction? That could help take care of some of this increase, but in 2010, only 14,000 new housing units were constructed. That means we were short about 12,000 housing units in 2010. Is it any surprise builders are moving in, buying up lots and beginning to build again? Would they be doing this if there wasn't a real need?
Next week I'll be back at my post, greeting all those who follow a sign to my open house. I'll smile, welcome them, hand them a flyer and discuss our changing market. I'll listen politely while some are sure to want to inform me that we have a glut of homes and it's a buyer's market.....but you and I both know better.
In conclusion: If you know of anyone who is thinking of selling their home on Seattle's Eastside, they couldn't pick a better time. Have them contact me at LaurenHunnicutt@cbbain.com and I will get their home sold!
Monday, March 7, 2011
Confidentiality
When a buyer or seller works with an agent, they share personal information. As a licensed Realtor, I am bound to a code of ethics that requires me to hold my client's information in confidence. Confidential information includes personal financial information, your motivation for buying or selling, your personal circumstances such as a divorce or relocation and anything else that would compromise your negotiating position.
As a listing agent, when I list your home for sale, my fiduciary duties include the following: loyalty, obedience, disclosure, confidentiality, reasonable care and diligence, accounting and loyalty. All are important, but the need for confidentiality is paramount.
I often remind my clients that I am working for them to get them the most favorable terms and that I hold their information in confidence. I do not share this information with other agents as it not only can backfire, but breaching confidentiality leads to lawsuits. I have a legal responsibility and duty to my clients to keep their information private and confidential. How long must I keep the confidence? Confidentiality never ends. Even after a sale closes or the listing expires, only a court order can override confidentiality.
As a listing agent, when I list your home for sale, my fiduciary duties include the following: loyalty, obedience, disclosure, confidentiality, reasonable care and diligence, accounting and loyalty. All are important, but the need for confidentiality is paramount.
I often remind my clients that I am working for them to get them the most favorable terms and that I hold their information in confidence. I do not share this information with other agents as it not only can backfire, but breaching confidentiality leads to lawsuits. I have a legal responsibility and duty to my clients to keep their information private and confidential. How long must I keep the confidence? Confidentiality never ends. Even after a sale closes or the listing expires, only a court order can override confidentiality.
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