Broker/Agent Social Network - David Edwards's blog

Home Projects - The Dining Room - Replace the OVerhead Fixture

Posted: Tuesday, March 9, 2010 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Buyers who entertain often will pay closer attention to the dining room, but in general, it's an area of the home you don't want to skimp on. The cost to replace an overhead fixture will vary from $39.00 to $300.00 depending on the cost and quality of the fixture itself. A professional would charge about $700.00. It should take about four hours to complete. Replace your fixture if you haven't replaced the lighting in years, and it's not meant to look antique. Any lighting in the room that's brass should definitely go. Lighting is critical, especially in the dining area. The right chandelier sets the overall tone and can dramatically impact the buyer's decision.

Best Regards,

David J Edwards
Real Estate Agent & REALTOR
Edwards Real Estate Group
Keller Williams Realty Southeast Sound
Phone: 425-636-0296
Fax: 425-902-1899
E-Mail: David@EdwardsRealEstateGroup.com
Website: http://www.EdwardsRealEstateGroup.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF
View This Week’s Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The Edwards Real Estate Group specializes in Residential Real Estate for buyers and sellers.

Northwest MLS members report 28 percent increase in pending sales from year ago

Posted: Monday, February 15, 2010 - 1 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

KIRKLAND, WA, February 4, 2010 – “More certainty” and “more stability” in the market contributed to a boost in activity during January, according to officials from Northwest Multiple Listing Service. Brokers reported an increase of nearly 27 percent in pending sales (purchase offers made and accepted, but not yet closed) from December and a 28 percent jump from twelve months ago.

Two other indicators of activity fell -- inventory and sales prices. There were 3,915 fewer active listings of single family homes and condominiums in the MLS system compared to a year ago, a drop of about 10.3 percent. Sales prices area-wide for January’s closed sales declined about 4.8 percent from year-ago figures. (The NWMLS service area covers 21 counties.)

“We anticipated there would be improved sales in the first-time buyer market and are encouraged to see activity gaining ground in the higher price ranges as well,” observed NWMLS director Joe Spencer, the president and COO of John L. Scott Real Estate. He cites historically low interest rates, great affordability, and the home buyer tax credits as factors for “helping push us into a more stable market,” and noted he expects to see this momentum continue in the coming months.

NWMLS members added 11,206 new listings to inventory during January, including 9,269 single family homes and 1,937 condominiums. With those additions, the selection at month end totaled 34,256 listings, down more than 10 percent from a year ago. The inventory of single family homes shrunk 11.5 percent, while the condo selection declined by 3.7 percent.

Members tallied 5,579 pending sales during January, improving on the year-ago total by 1,226 transactions (up 28.2 percent). For the four-county Puget Sound region (King, Kitsap, Pierce and Snohomish), the number of pending sales jumped nearly 35 percent, led by King County’s increase of 47.4 percent. Currently, there is about a 6.1 months supply (ratio of houses for sale to houses sold). Economists consider a supply of 3-to-6 months to be a balanced market.

“The market has definitely picked up, with more interest and action by buyers,” reports Dick Beeson, broker/owner of Windermere Commencement Associates in Tacoma and a member of the NWMLS board of directors. “Sellers are expecting better results this year than last year, but not necessarily higher prices,” he remarked.
The median sales price for last month’s closed sales of single family homes and condominiums combined was $259,903, down 4.8 percent from the year-ago price of $273,000. Compared to December, prices fell about 1.9 percent area-wide, with eight counties showing increases in sales prices. In King County, last month’s median price of $350,000 for single family home sales was unchanged from December.

Single family homes (excluding condos) sold for a median price of $262,500, which compares to the year-ago selling price of $276,000, a drop of 4.9 percent. Short sales and tax credits may be skewing some of the data, according to industry insiders.

“The short sale inventory continues to climb yet many banks are starting to get their act together and actually making it easier for agents and buyers to get faster answers to their proposed contracts,” Beeson said. “Shorter closing times are good for everyone,” he stated, while expressing ongoing concern with the role of Appraisal Management Companies. (Beeson and the National Association of Realtors® suggest Appraisal Management Companies pose potential conflicts of interest if they’re lender-owned, and say assigning appraisers to prepare reports in areas where they lack geographic know-how can yield unreliable results.) “Sales are sometimes lost because of appraisals that don’t reflect the market,” Beeson explained.

Lawrence Yun, chief economist for the National Association of Realtors, believes the tax credit is skewing market data. Commenting on NAR’s report of December activity, which showed a 10.9 percent jump in pending sales from December 2008 and 1.0 percent increase from November, Yun said “There are easily understood swings in contract activity as buyers respond to a tax credit that was expiring and was then extended and expanded.” Noting December was the fifth highest monthly tally in two years, Yun stated “These swings are masking the underlying trend, which is a broad improvement over year-ago levels.”

Beeson said the fast-approaching tax credit deadline is expected to boost activity in the next few months. “This year will be better than last because of more certainty in the market,” he remarked. Buyers who have a contract in place to purchase a primary residence by April 30, 2010, have until June 30 to finalize the transaction to qualify for a tax credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.
Northwest Multiple Listing Service, owned by its member brokers, is the largest full-service MLS in the Northwest.
Its membership includes more than 24,000 brokers and agents. The organization, based in Kirkland, currently serves 21 counties in western and central Washington. Ferry and Clallam counties are now included in the monthly statistical reports.

Best Regards

Diane Edwards
Marketing Director
Edwards Real Estate Group
Keller Williams Realty Southeast Sound
Phone: 425-636-0296
Fax: 425-902-1899
E-Mail: Diane@EdwardsRealEstateGroup.com
Website: http://www.EdwardsRealEstateGroup.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF
View This Week's Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The Edwards Real Estate Group specializes in Residential Real Estate for buyers and sellers.

The Government Calls for Increased Lending from Banks

Posted: Thursday, February 4, 2010 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

According to the FDIC, lending has fallen for five consecutive quarters – even though banks have become profitable again and have started to repay government loans. Banks lent $600 billion less from September 2008 to September 2009, representing a 7 percent decline. Banks site a lack of qualified borrowers as the primary reason and point to the trend of decreased borrowing during recessions.

The goals of banks and the government appear to be in line now with each bank representative talking about getting aggressive with small business lending over the next year. Goals for 2010 small business lending include $5 billion for Bank of America and $4 billion for Chase.

As banks continue to be profitable, they can be expected to use the proceeds to repay the government as well as increase their efforts to make good loans. Small business owners should expect an increase in the amount of loans available during 2010 compared to 2009. Holding true to the trend in 2009, a good credit score and steady employment will likely continue to be important conditions of obtaining a mortgage.

Sources - The Washington Post & FDIC

Best Regards,

The Edwards Real Estate Group specializes in Residential Real Estate for buyers and sellers.

Making Home Maintenance Routine

Posted: Monday, February 1, 2010 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Home ownership has its wonderful benefits, and as one of the single biggest financial assets many people own, preparing, planning, and making home maintenance a routine are important.

Personal finance experts recommend setting aside at least 1 percent of your home price each year in a separate account for maintenance and repair costs.

Automatically deducting the funds from your paycheck or automatically transferring it between accounts each month can make this easy. Some years homeowners will have less than 1 percent in maintenance costs or repairs and some years they will have more. When something big and unexpected happens; for example it’s finally time to replace the roof; this will provide the financial cushion to take care of it and the peace of mind knowing one of their biggest assets is well taken care of.

Source - MSN Money

Best Regards,

The Edwards Real Estate Group specializes in Residential Real Estate for buyers and sellers.

Fannie & Freddie Get Unconditional Federal Support

Posted: Tuesday, January 26, 2010 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

On December 24, the government announced it will provide unconditional financial support to Fannie Mae and Freddie Mac. This will expire in 2012, after which the firms will have approximately $290 billion allocated to them.
-September 2008: Bush administration took over Fannie Mae and Freddie Mac at the height of the financial crisis and promised $200 billion to keep them afloat.
- Earlier in 2009: Obama doubled the $200 billion to $400 billion.
- December 24, 2009: The president announces the government will provide unconditional financial support to Fannie Mae and Freddie Mac for 2010-2012.
- December 29, 2009: Analysts predict that Fannie and Freddie will begin purchasing delinquent loans.

These two institutions play an integral role in both the housing and lending industries. When a bank makes a conventional mortgage loan, it will then sell that loan to Fannie Mae or Freddie Mac. This frees up the bank to then make more loans and repeat the process.

When Fannie and Freddie stop buying mortgages from the banks, mortgage credit freezes, banks stop lending, and houses can’t sell. Such was the case last year at the height of the credit crisis. Confidence in these firms is a key component to the flow of credit and this unconditional financial support intends to bolster that confidence.

Despite the short-term unconditional federal support, experts say it is critical for the real estate industry, the lending industry, and the economy that these companies keep their long-term vitality in mind over the next three years.

Source - The Washington Post

Best Regards,

FHA Makes Changes

Posted: Monday, January 25, 2010 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

FHA loans are very popular right now so it is important that we keep an eye on what they are up to. Here is an update on some of the changes we can expect from the FHA this year.

The FHA is going to increase the up-front mortgage insurance premium from 1.75% to 2.25%. This will apply to all purchases and refinances, including streamlines. The annual premiums will not change at this time.

The 90 day rule preventing property flipping will be waived for sales meeting certain conditions in February. It will be limited to sales meeting certain conditions. The transactions must take place between a buyer and seller who have no prior relationship. If the sales price exceeds the seller's acquisition cost by 20% the waiver will only apply if the increase in value is justified (i.e. a second appraisal is obtained, documented renovation of the property, etc.). A property inspection must be obtained and given to the purchaser in these cases.

The FHA will also be reducing the amount of allowable seller concessions from 6% to 3% sometime this summer.

If you are planning to purchase a home with an FHA loan in the future, please feel free to contact me to discuss how these changes might have an impact on you.

Best Regards,

The Edwards Real Estate Group specializes in Residential Real Estate for buyers and sellers.

Cash for Clunky Appliances

Posted: Thursday, January 21, 2010 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

In efforts to vamp up energy efficiency, the federal government is implementing a rebate program for appliances. People can swap in their old “clunky” appliances for new energy-efficient ones, saving electricity and saving on monthly bills.

A 20-year-old fridge can use three times as much energy as a new Energy Star-approved fridge. The age of your appliances impact your actual savings, so check into it before purchasing.

Important things to know:
Plans vary by state. Check out energysavers.gov for details.
Buy before it ends. Like the car rebate program Cash for Clunkers, this program has a set amount of federal money allocated to it. Once the $300 million is gone, the program will likely end. It is expected to run out quickly.

Source - The Associated Press

Best Regards,

The Edwards Real Estate Group specializes in Residential Real Estate for buyers and sellers.

Residential Retrofit Program

Posted: Wednesday, January 20, 2010 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Vice President Biden recently announced a program called “Recovery Through Retrofit.” In addition to creating energy performance labels, it will create national energy performance measures for existing homes.

It will provide the following:

Access to home energy retrofit information
Access to financing for retrofits
Access to trained professionals to perform the retrofit

The goal of the initative is to create more energy efficiency in homes to benefit the country’s energy consumption. Retrofits include but are not limited to energy efficient heating, cooling, and water systems, insulation, roofing, flooring, windows, and solar panels.

More information will follow as the program is rolled out.

Source - National Association of Realtors

Best Regards,

The Edwards Real Estate Group specializes in Residential Real Estate for buyers and sellers.

Low Home Prices Boost Sales

Posted: Friday, January 15, 2010 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Low home prices continue to add the extra boost to home sales. The national median existing-home sale price was $172,600 in November, 5 percent higher from its low in January. While still 4.3 percent down from a year ago, it is the smallest decline in two years. Distressed properties, which accounted for 33 percent of all transactions in November, continue to hold down the median home price, as they typically sell for 15 to 20 percent less than traditional homes.

Latest Data Release: December 22, 2009 - National Association of Realtors

Best Regards,

The Edwards Real Estate Group specializes in Residential Real Estate for buyers and sellers.

Existing Home Sales Surge Thanks to First-Time Homebuyers

Posted: Thursday, January 14, 2010 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Existing home sales surged a record-breaking 44 percent from a year ago, the highest annual gain since NAR started tracking the data in 1999. The strong gain can be attributed to first-time buyers who accounted for 51 percent of all home sales, the highest on record dating back to 1981, as they rushed to beat the deadline for the first-time buyer tax credit that was due to expire November 30. The previous high was 44 percent in 1991. Sales activity is at the highest level since February 2007 when it reached 6.55 million.

Latest Data Release: December 22, 2009 - National Association of Realtors

Best Regards,

The Edwards Real Estate Group specializes in Residential Real Estate for buyers and sellers.

Predictions for 2010

Posted: Tuesday, January 12, 2010 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

December closed out the year with further indications of a budding recovery, illustrating we’ve come far from the pessimistic outlook this time last year. Soft home prices, affordable financing conditions as well as the government’s tax break targeted at the housing market have contributed to providing the much needed boost to the housing market. Solid gains in home sale activity helps to pare down inventory to a healthier level, which in turn will likely bring more stability to home prices.

The most recent Federal Reserve meeting indicated a more positive outlook about our economic condition as they pointed to plans to reel in emergency programs. Mortgage rates, which have hovered around 5 percent for most of 2009, are starting to climb again. Economists expect these unprecedented rates to go back up as Fed’s program to purchase mortgage-backed securities expires in March and private investors are demanding higher returns.

According to Nar 2009 President Charles McMillan, “Even with price declines in recent years, the typical home seller saw their equity increase 27 percent.” NAR’s most recent Home Buyers and Sellers survey reported that 87 percent of survey respondents consider their home a good investment, and more than half see it as a better investment than stocks. This indicates that Americans still see homeownership as a source of steady long-term wealth accumulation.

Employment will continue to be closely watched and steps on the road to recovery will likely continue to come one-by-one. Although concerns remain, many experts are hopeful of a brighter year in 2010.

The Edwards Real Estate Group specializes in Residential Real Estate for buyers and sellers.

Data continues to show slow steps toward a housing recovery.

Posted: Monday, January 11, 2010 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Did you know?

There is a federal program that could provide a rebate for purchasing energy-saving appliances?

Existing home sales surged a whopping 44 percent from a year ago, the highest annual gain since NAR started tracking the data in 1999.

The number of first-time home buyers is now at its highest level on record dating back to 1981? In November, they accounted for 51 percent of all home sales.

The supply of home sales and continuing shrinkage in inventory has helped stabalize home prices. November recorded the smallest year-over-year decline in home prices.

The governmnet has called on banks to increase lending, particularly for small business.

Feel free to contact me if you would like to discuss the impacts these economic factors will have on the real estate market over the course of the next year.

David J Edwards

Real Estate Agent & REALTOR
Edwards Real Estate Group
Keller Williams Realty Southeast Sound
Phone: 425-636-0296
Fax: 425-902-1899
E-Mail: David@EdwardsRealEstateGroup.com
Website: http://www.EdwardsRealEstateGroup.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF
View This Week’s Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The Edwards Real Estate Group specializes in Residential Real Estate for buyers and sellers.

Just Reduced: Cozy Bungalow with three bedrooms in Burien

Posted: Friday, January 8, 2010 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

620 134th Street SW, Burien, WA, 98146

Just Reduced

Price: $215,000
Bedrooms: 3
Bathrooms: 1
Year Built: 1955
Square Feet: 1230
Lot Size: 8276
MLS: 29167972

This Cozy Bungalow Is Move-In Ready With Limitless Potential. The Traditional Floor Plan Is Very Spacious And Features Hardwood Flooring Throughout. The Garage Is Extra Wide And Ready To Serve As A Shop Or Provide Space For Extra Storage. It's Located In A Desirable Neighborhood, On A Large Lot With Mature Landscaping And A Huge Backyard.

For more information visit:www.davidjedwards.com/38377.asp or call 425/890/8045
Virtual Tour: http://www.flyinside.com/tour.php?id=38377

Driving Directions: From Ambaum go East on 134th. Home is on the Left

If you would like to preview this home, please contact us to arrange for a private showing.

Best Regards

The Edwards Real Estate Group specializes in Residential Real Estate for buyers and sellers.

Western Washington pending home sales mark best December since 2006

Posted: Wednesday, January 6, 2010 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

KIRKLAND, WA, January 5, 2010 – "Home for the holidays" took on special meaning for 4,399 buyers whose purchase offers were accepted during December, according to the latest report from Northwest Multiple Listing Service. That volume of pending sales was up more than 35 percent from a year ago and marked the best December since 2006.

Brokers say it's a tough market, but point to several indicators for good activity during this year's first quarter. "The distance seems great, but the direction is a good one," observed NWMLS director Dick Beeson.

"With what our agents already have in the pipeline, I'm optimistic about a positive first quarter," said NWMLS director Meribeth Hutchings, the broker at Windermere RE/Lake Stevens. "We had a very strong December and the momentum seems to be there to keep things moving," she remarked, noting three agents were in the office on New Year's Eve writing offers.

Shrinking inventory, the extension of the first-time home buyer tax credit, and favorable interest rates are among factors brokers believe will sustain activity.

"Affordability has never been better," said Dick Fulton, a past chairman of the NWMLS board of directors whose career spans more than two decades. Fulton, the executive vice president at Coldwell Banker Bain, suggests would-be sellers list their property soon, rather than wait until spring, to take advantage of favorable conditions. With inventory much smaller than a year ago, sellers should benefit from more exposure to a good pool of buyers, he suggests.

Inventory area-wide is down about 15.6 percent from a year ago. At the end of December, brokers reported 32,152 active listings of single family homes and condominiums. For the four-county Puget Sound region, the number of active listings is down more than 18 percent, with Kitsap County reporting the biggest drop at 25.4 percent.

NWMLS members reported 4,711 closed sales during December, up 54.7 percent from the year-ago total of 3,045 when the holiday slowdown was compounded by record low temperatures and snow.

The median price for last month's completed transactions, including single family homes and condominiums, was $265,000. That compares to a year-ago sales price of $285,000 (down about 7 percent). Compared to January, prices are down about 2.9 percent.

For single family homes (excluding condominiums), last month's median sales price was $273,000. Twelve months ago it was $290,000, a difference of about 5.9 percent. Condo prices have dropped about 14.6 percent, from $263,475 to last month's figure of $225,000.

Dick Beeson, owner/broker of Windermere Commencement Assoc. in Tacoma, said the market is "chugging along," despite hurdles associated with the lending market, appraisals and foreclosures. "The hardest part of the process still remains the uncertainty of the lending market as banks continue to ratchet up the qualifications and criteria for borrowers. Appraisals are difficult because even if the value comes in at the purchase price many lenders do a second review of the appraisal and find fault with the outcome, therefore creating a problem for buyers and sellers." He also noted the large volume of foreclosures has driven down prices – something he believes will persist throughout much of this year.

Beeson also said he does not expect much sales action as a result of expanding the tax credit to qualifying repeat buyers because many owners have little or no equity in the homes to use to move up. "First time buyers will still lead the charge in sales," he suggests.

Northwest Multiple Listing Service, owned by its member brokers, is the largest full-service MLS in the Northwest. Its membership includes more than 24,000 brokers and agents. The organization, based in Kirkland, currently serves 21 counties in western and central Washington. Ferry and Clallam counties are now included in the monthly statistical reports.

Diane Edwards

Marketing Director
Edwards Real Estate Group
Keller Williams Realty Southeast Sound
Phone: 425-636-0296
Fax: 425-902-1899
E-Mail: Diane@EdwardsRealEstateGroup.com
Website: http://www.EdwardsRealEstateGroup.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF
View This Week's Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The Edwards Real Estate Group specializes in Residential Real Estate for buyers and sellers.

Keller Williams Realty Ranked as Top Real Estate Franchise

Posted: Tuesday, January 5, 2010 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

AUSTIN, TEXAS (December 21, 2009) — Keller Williams Realty joined the ranks of the top franchises in the world last week, when the company was ranked as the No. 1 real estate franchise on the 31st Annual Franchise 500 list by Entrepreneur magazine. During the same week, the company was also voted the Most Recognizable Brand of Real Estate Franchises for 2009 in an industry-wide survey for the Swanepoel TRENDS Report.

“The Swanepoel TRENDS Report is a respected source for the real estate industry and beyond, as is Entrepreneur magazine, and we are excited to see our agents honored in this way for all of their hard work,” said Mark Willis, CEO, Keller Williams Realty. “We certainly wouldn’t have been included on either list without the dedication and resolve of our agents.”

According to the ranking in Entrepreneur magazine, the most important criteria to determine the top franchises included financial strength and stability, as well as growth rate and size of the franchise system. The magazine also looked at the number of years the company has been in business and the length of time it’s been franchising, in addition to start-up costs and financial data. Additionally, Keller Williams Realty made an impressive showing on the overall list, placing higher than any other real estate franchise.

The Swanepoel TRENDS Report is published by Stefan Swanepoel, a real estate industry speaker and insider. The survey was crafted to determine the Most Recognizable Brand for Real Estate Franchises for his report out in February 2010. The survey included votes cast by 11,000 plus real estate agents, who cast 390,000 votes to select the top 10.

Earlier in the year, Keller Williams Realty also received the highest overall satisfaction ratings from home buyers among the largest full-service real estate firms from J.D. Power and Associates for the second year in a row.

“We are extremely proud that our associates and company are being recognized for our strength and stability during this time in our industry,” said Mary Tennant, president and COO, Keller Williams Realty. “We attribute our success to being in business with phenomenal people and to our core business models, which have allowed our franchises to thrive during any market.”

###

About Keller Williams Realty Inc.:
Founded in 1983, Keller Williams Realty Inc. is the third-largest real estate franchise operation in the United States, with 679 offices and 73,000 associates in the United States and Canada. The company, which began franchising in 1990, has an agent-centric culture that emphasizes access to leading-edge education and promotes an economic model that rewards associates as stakeholders and partners. For more information, visit Keller Williams Realty online at (www.kw.com).

Diane Edwards

Marketing Director
Edwards Real Estate Group
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: diane@davidjedwards.com
Website: http://www.EdwardsRealEstateGroup.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF
View This Week's Market Conditions Around Your Home: http://www.homeinsight.com/Wi

Homebuyer Tax Credit Extended and Expanded

Posted: Wednesday, November 11, 2009 - 1 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

The Senate unanimously voted 98-0 on Wednesday to extend the first time home buyer tax credit. It passed overwhelmingly in the House on Thursday with a vote of 403-12 and President Obama signed the bill today.

Not only was the first time home buyer tax credit extended, a new $6,500 tax credit for existing homeowners who have lived in their homes for at least five of the last eight years was added to the bill. The purchase must be made after November 30, 2009.

These tax credits will be available through June 30th of 2010; however, buyers who qualify for either of these credits MUST enter into a binding contract before April 30, 2010.

The bill also increases the income cap to $125,000 for a single person and $250,000 for a couple. And the credit is available for all homes purchased for $800,000 or less. This is ideal, as it will break up the middle part of the market that is currently stalled.

I've been predicting that home values will likely bottom in the fourth quarter of 2010. But the tax credit could change that. This is because of the extension to existing homeowners and the doubling of the salary limits for applicants. The new tax credits represent a substantial increase in the pool of eligible buyers, thus translating into more demand for housing.

This increased demand due to the tax credits will soak up some of the foreclosures expected to flood the market in 2010. I still expect foreclosures to increase over the coming months before peaking next year, bringing more cheap inventory into the market.

The spur in demand comes during the real estate market’s slow winter season, so it may help overcome the seasonal declines in home sales, which were expected to translate into downward price pressure. The presence of the tax credits, however, which would expire at the end of June (for contracts completed by April) could bring increased demand to the market during this normally slow season.

Best Regards!

David J Edwards
Real Estate Agent & REALTOR
The David J Edwards Team
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
Website: http://www.davidjedwards.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF
View This Week’s Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

Northwest MLS brokers agree "there's a lot to be optimistic about"

Posted: Wednesday, October 14, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

KIRKLAND, WA, October 5, 2009. "There's a lot to be optimistic about," according to one director of the Northwest Multiple Listing Service upon reviewing summary statistics for September's housing activity. The report shows a big jump in pending sales compared to a year ago (up almost 27%), continued drops in inventory (down 17.7% versus a year ago) and brisk demand for homes at the lower end of the price spectrum.

Distressed properties in the system continue to be a drag on prices – median prices for last month's sales were down about 7.5% from a year ago – and brokers continue to voice frustration with slow response time by lenders. (Banks are taking 9.5 weeks to respond to short-sale requests, versus 4.5 weeks a year ago, according to research by Campbell Communications of Washington, D.C.) Joe Spencer, president and COO of John L. Scott Real Estate, estimates up to 10% of pending sales do not close because they're caught in the short sale cycle. Still, he comments, "There is a lot to be optimistic about." He cites interest rates that are now in the high four percents as bordering "on being epic" and the federal tax credit as stimulants to the market.

Northwest MLS brokers reported 7,581 pending sales (offers made and accepted but not yet closed) during September, outgaining the same period a year ago by 1,599 transactions for a 26.7% increase. Last month's condominium sales surged, with pending sales up nearly 25% from a year ago after languishing in negative year-over-year figures for the first five months of 2009 and only modest gains over the past three months.

During September, members added 10,054 new listings of single family homes and condominiums to inventory, about 7.6% fewer than a year ago. With the combination of fewer new listings and more sales, inventory at month end dipped to its lowest level since March. At month end, the selection included 40,041 properties for sale (33,332 single family homes and 6,709 condominiums). That's down 17.7% from twelve months ago.

"Our market has certainly come a long way since this time last year," said Ron Sparks, managing vice president of Coldwell Banker Bain, who said demand is at its highest level in two years. "For all the challenges that remain, it would be difficult to not appreciate the reemerging market vitality that continues to build even as the summer buying season closes," he added. Activity at open houses is reported to be brisk in many areas, which MLS directors attribute to a combination of factors, including expanded use of a "Public Open House" program. This program allows buyers to search schedules of all open houses in the NWMLS system from the website of any member broker that uses the feature.

Brokers also credit improved affordability, incentives and the looming deadline for the $8,000 tax credit for first-time home buyers as boosting activity. As the Nov. 30 deadline for the federal $8,000 tax credit program approaches, Spencer advises buyers to "be under contract by the third week of October, to close by Thanksgiving, and to stay away from short sales." "Because there are so many short sales and bank owned property sales, it was inevitable that prices would fall slightly," explained NWMLS director Dick Beeson, the broker/owner of Windermere Commencement Associates in Tacoma.

Year-over-year prices are down nearly 7.5 percent across the 19 counties served by NWMLS, but the median sales price of $273,000 for last month's sales of single family homes and condominiums (combined) equaled the figure for January. Beeson described the price drops as "a necessary adjustment given the number of short sales and bank owned property sales in the mix. (A survey by the National Association of REALTORS indicates distressed homes accounted for 31 percent of transactions in August and July.)

A comparison of year-over-year prices of closed sales by county shows wide variation for September, from a decline of almost 17 percent in Cowlitz County to an increase of nine percent in San Juan County. For the four-county Puget Sound region (King, Snohomish, Pierce and Kitsap counties), prices were down about 7.6 percent from twelve months ago. On a brighter note, Beeson said activity is brisk for lower priced homes in many areas. "Multiple offers are occurring on a regular basis and many buyers have to make two or three offers on different properties just to secure one," he reports.

Sparks echoed that report, saying, "Describing much of the current market as 'lively' is probably a bit of an understatement," adding, "I've heard agents describe open houses as 'mayhem' and 'chaos." Modestly priced homes in good condition and in popular neighborhoods can certainly draw more than one offer, according to Sparks, who also noted, "This is not to say that all neighborhoods and price points are rebounding at the same pace, but there is an awful lot of economic momentum in our region, including our housing market, that can't be ignored."

Emphasizing recovery comes in stages, Beeson acknowledged some "hard adjustments" are being made in higher priced homes where inventories remain high, but expects that segment to recover. He said the main focus of many agents is meeting the needs of the first-time buyers and those who have needs because of lifestyle changes due to advancing age, change in marital status, the birth of children or death of a family member. "These people always need help solving their real estate problems," he observed.

Northwest Multiple Listing Service, owned by its member brokers, is the largest full-service MLS in the Northwest. Its membership includes more than 24,000 brokers and agents. The organization, based in Kirkland, currently serves 19 counties in western and central Washington.

Best Regards!

Selling Homes & Post Traumatic Stress Disorder

Posted: Monday, September 21, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

A client just forwarded a note about post traumatic stress disorder and selling real estate. She said it made her laugh. I'm glad she was able to find some humor in the article because we have her house on the market right now.

"Today's market has created unprecedented levels of seller stress that mirror symptoms of post-traumatic stress disorder," says Dr. Peter Lambrou, chair of psychology at Scripps Memorial Hospital in La Jolla, Calif.

It's definitely more challenging to sell homes in today's market then it has been in prior years but listing with the correct list price, professional photography and an effective marketing campaign can overcome most of the obstacles presented by today's market conditions.

Realtors should keep an open line of communication with their clients. If sellers are feeling a bit overwhelmed by the stress factors associated with selling their home, they should try to focus on feedback from buyers and agents who previewed their home but didn't make an offer. They should address the issues with their home that they can control as the feedback comes in so that they are in a position to put their best foot forward for the next showing. If a seller is not getting any showings at all, it's probably an issue with the price, the quality of the photography or the effectiveness of the marketing campaign.

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

Northwest MLS brokers say housing market is recovering, but still "spongy"

Posted: Friday, August 21, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

KIRKLAND, WA, August 6, 2009 – Most numbers are "moving in the right direction," close-in Seattle neighborhoods are definitely coming to life and move-up buyers are re-entering the market were among observations by brokers when asked to comment on the latest activity report from Northwest Multiple Listing Service.

The report shows July's pending sales increased from a year ago, as did closed sales, and inventory continues to shrink. Prices on sales that closed during July still lagged figures of a year-ago (down about 10 percent area-wide) and NWMLS members said last month's record-setting temperatures "absolutely impacted showings and sales."

July's unseasonably hot weather curtailed activity for several showings and open houses, as brokers and agents said buyers and sellers postponed tours, saying it was just too hot.

"The hot July weather aside, the variable results we saw in July reflect what we'd typically expect from a recovering housing market – a few steps forward for some areas, a step back in others," said Ron G. Sparks, managing vice president of Coldwell Banker Bain. Whereas comparisons to a year ago reflect some substantial gains, on a month to month basis we're probably going to experience some "spongy" results for a while, he explained.

For example, brokers reported 7,279 pending sales (mutual acceptance of a purchase and sale agreement) last month, up from the year-ago total of 6,350 sales for a 14.6 percent gain. Compared with June, the volume slipped about 5.9 percent, dropping from 7,733 to 7,279 transactions.

In the four-county Puget Sound region (King, Kitsap, Pierce, and Snohomish), July's pending sales of single family homes and condominiums jumped 21.2 percent from twelve months ago, but dipped 6.9 percent from the previous month. Nonetheless, last month's 5,551 pending sales for the region marked the second-highest monthly total since August 2007.

Pending sales of condos (excluding single family homes) rose nearly 12.5 percent last month from a year ago. That continued June's modest gain of 1.3 percent, when 22 months of negative year-over-year comparisons ended. Last month's increase was the first double-digit gain since February 2007.

"I'm excited to see the continued increase of pending sales because these figures are the lead predictor of buyer behavior," said J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. "The rise of pending sales over the past few months is the best indication we have of what's to come and I am encouraged by what we're seeing," he added.

Brokers say first-time buyers who are motivated by a looming deadline for the tax credit are propelling activity. "There seems to finally be a feeling of urgency to take advantage of this program before it goes away," remarked NWMLS director Meribeth Hutchings, broker/owner of Windermere Real Estate/ Lake Stevens.

In an effort to keep agents and their clients focused on the time remaining for the $8,000 tax credit opportunity, Sparks said his company has a clock prominently displayed on its internal website that ticks down the days, minutes and seconds until the midnight deadline on Nov. 30. He also commented on the secondary benefits of the credit. "My daughter just closed on her first home, and she intends on using the tax credit for household items she'll need as a new homeowner. She's excited to buy her first lawn mower…good for her, good for housing, and good for the economy," he stated.

Commenting on the tax credit, NWMLS director Dick Beeson said first time homebuyers are "getting it. All they talk about is the $8,000 tax credit and how good interest rates are."

Beeson, the broker/owner of Windermere Commencement Associates in Tacoma, said with the exception of prices, the numbers are all moving in the right direction. "Inventory is adjusting down, even though it is summer, pending sales are moving up, and even more importantly, closed sales are above last year." Those numbers are a sign of a "modest, modest recovery," according to the 30-year veteran of the real estate profession.

NWMLS members added 11,481 new listings to inventory during July, 1,612 fewer than during the same month a year ago. At month end, there were 42,310 active listings of single family homes and condominiums in the MLS database, down 18 percent from a year ago. Twelve of the 19 counties in the MLS reported double-digit shrinkage in inventory.

MLS brokers reported a system-wide total of 5,527 closed sales for the month of July, an increase of 256 transactions from a year ago for a 4.9 percent gain. The median selling price for those closings was $279,000, down 10 percent from the year-ago price of $310,000. Among the 19 counties served by NWMLS, the price changes from a year ago ranged from a 25.1 percent increase in Okanogan County to a 17.8 percent decline in Cowlitz County.

For the four-county Puget Sound region, the median selling price for last month's completed sales of single family homes (excluding condos) was $314,000, about 13.5 percent less than the year-ago price of $363,000.

"After almost two years of relative calm, the close-in Seattle neighborhoods have definitely come to life in a major way," remarked Mike Skahen, owner/broker at Lake & Co. Real Estate, Inc., in Seattle and a member of the NWMLS board of directors. He described open house traffic as "very strong" with a typical home drawing 20 to 50 buyers.

Multiple offers are once again becoming common on well-priced quality listings, according to Skahen. Although noticeable during the past few months for homes priced under $450,000, he said there are now instances of competition at higher price ranges. A recent listing of a Wallingford bungalow priced at $550,000 drew eight offers, which Skahen said is a "good indication the trade up buyers have finally decided that prices have bottomed out, so after waiting too long they are now competing for fewer listings."

Skahen also said the tax credit has created such strong demand for starter homes that those sellers now realize they actually gain more by trading up in this market because they save more on their trade-up home and there is good demand for the home they're selling.

On a cautionary note, Skahen said there is very likely to be a shortage of homes and townhouses in some Seattle neighborhoods by next year. "New construction has almost ground to a halt because builders can't get prices that even cover construction costs," he reported.

Hutchings, whose office is in Snohomish County, said they're also seeing move up buyers re-entering the market. "They understand even if their current home has lost value, their new home will also offer them a greater savings. That, along with low interest rates, make it a great time to buy up," she emphasized.

Beeson said the transition from a buyers' market to a sellers' market is occurring in, "of all places," the foreclosure market. "Banks are pricing many homes slightly under market value and watching multiple offers come in, bidding up the price. What a change that is," he exclaimed, while noting he hopes the next wave of foreclosure homes coming on the market later this year will finally flush out the remaining inventory and "we'll get back to a more normal market."

Northwest Multiple Listing Service, owned by its member brokers, is the largest full-service MLS in the Northwest. Its membership includes approximately 27,000 brokers and agents. The organization, based in Kirkland, currently serves 19 counties in western and central Washington.

Best Regards!

Maple Hills in Renton is a Great Place to Live

Posted: Thursday, August 20, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

The Maple Hills neighborhood in Renton lives up to the grandeur its name implies, with sweeping views of Mount Rainier, close proximity to Lakes McDonald and Kathleen, numerous hiking and biking trails around the edge of the neighborhood and membership access to the Maple Hills Community Park and Pool.
Maple Hills is located between Renton, Maple Valley and Issaquah. I-405, I-90 and HWY 169 are all easy to get to, so it is a nice central location from which to get around.
The neighborhood consists of about 400 homes. Many residents choose Maple Hills because they have discovered that by moving a little farther south on the Eastside they could get a bigger and newer house for their money.

According to Estately.com, the 133 homes for sale in East Renton Highlands which is home to Maple Hills Estates have an average price of $551,467. The average home is 2,897 square feet, has 3.8 bedrooms, and 2.6 bathrooms. The typical home for sale in East Renton Highlands was built in 1992, which is a little newer than the typical home for sale in Washington.

Located in the center of the vibrant neighborhood, Maple Hills Elementary School’s volunteers include parents, community members, retirees, middle and high school students some of whom are "alumni". Each year, in classrooms, the library, and throughout the school, 10,000 to 12,000 hours are donated to benefit the students.

The PTA supports the school in a wide variety of ways and with unending dedication and enthusiasm. The PTA has earned the 100% Membership award, the State PTA Standards of Excellence Award and the National Honor Unit Award.

The Maple Hills Park just north of Maple Hills Elementary School is a major asset to the neighborhood and a gathering place for many Maple Hills residents.
With a large play area, two tennis courts, basketball courts, horseshoe pits, barbeque pits, ample parking and a swimming pool, it is a popular destination. Summer at Maple Hills Park is full of activities such as movie nights, social feeds and the 4th of July Neighborhood Parade, 5K Run and Fireworks. The park also hosts sporting events for soccer, football and baseball leagues. The community pool offers swimming lessons and sponsors the Maple Hills Marlins, a competitive swim team.

The homeowners association, which meets monthly, can be found online at http://sites.google.com/site/maplehillsorgsite/. Association Dues are less than $300 per year.
To learn more about home homes for sale in Maple Hills, visit http://www.davidjedwards.com/34057.asp.

Best Regards,

David J Edwards
Real Estate Agent & REALTOR
The David J Edwards Team
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
Website: http://www.davidjedwards.com
Blogsite: http://www.davidjedwards..com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF
View This Week’s Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

Pending Home Sales Rose in June for the Fifth Straight Month

Posted: Thursday, August 13, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Some surprisingly good news on the housing market hit the wires this week. Pending Home Sales rose in June for the fifth straight month, fueled by low home loan rates and bargain home prices.

Bonds and home loan rates definitely showed some serious energy and persistence this week, despite some serious headwinds, including additional supply flooding the market from this week's big Treasury auctions.

The Treasury unloaded an enormous supply of paper onto the markets last week and anytime there is more supply than demand, it means prices will naturally decline. And when prices decline, home loan rates go up. The heavy supply hitting the market caused some wild volatility for rates midweek, but overall home loan rates managed to find some improvement by the end of the week.

It won't be long before another enormous supply of Treasuries comes on the market. In just two weeks, we'll be looking at a fresh round of auctions. It used to be that the dates of economic news would be circled on the calendar as the ones to watch for greater movement in Bond prices but right now, the supply issue has become so important that it now may be the most dominant current factor in Bond pricing and home loan rates.

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

A Long Term Housing Recovery is Inhibited by Unemployment Numbers

Posted: Thursday, July 30, 2009 - 1 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

The housing industry received some good news last week, as Existing Home Sales came in better than anticipated, and marking the third straight month that Existing Home Sales have increased. And perhaps even better, the supply of unsold homes on the market dropped from the prior reading of 9.8 months down to 9.4 months - which is the best level seen in over a year. With home loan rates still at low levels and homes priced to sell - this is a great time for potential homebuyers to stop thinking, and go ahead and take some action.

Despite that bright spot of news, last week's Consumer Sentiment report - which measures consumers' attitudes and expectations concerning both present and future economic conditions - showed that consumers still think the economy has a ways to go, as the report did come in a bit weaker than anticipated. According to the report last week, Consumer Sentiment came in at 66 for the month of July, down from June's reading of 70.8.

And one of the major reasons for the decline in Consumer Sentiment was ongoing concern over unemployment - and last week, Initial Jobless Claims reportedly rose by 554,000. While this number was high, it was essentially in-line with expectations of 557,000.

The big news that many headlines featured was the number of Continuing Claims, which fell from 6.31 million the prior week to 6.22 million. And although this drop was reported as positive news, we need to remember that a large number of people are still unable to find jobs, but are no longer being counted in Continuing Claims because their unemployment benefits have expired. The bottom line is that it will be hard for the economy to really turn higher with momentum until the labor market starts to turn around.

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

Mortgage Market Update

Posted: Monday, July 27, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Second quarter earning season continued last week, including some highlights from the financial sector. Several companies reported strong earnings, including Tech Bellwether Intel; JP Morgan Chase, who reported a 36% jump in profits for the second quarter; and Goldman Sachs, reporting blowout earnings. Although, some of the positive headlines helped Stocks, at the expense of Bonds and therefore home loan rates, overall the week's earnings reports indicated the economic climate is still difficult.

Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

David J Edwards

Real Estate Agent & REALTOR
The David J Edwards Team
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
Website: http://www.davidjedwards.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF
View This Week’s Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

"Aware and prepared buyers" help boost Western Washington home sales during June

Posted: Monday, July 13, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

KIRKLAND, WA, July 6, 2009 –"Encouraging" seemed to be a common response from brokers upon reviewing the June activity summaries from Northwest Multiple Listing Service. The report shows inventory continues to shrink, pending sales increased more than 19.5 percent from a year ago, and median prices system-wide are up 4.4 percent since January.

"The positive movement in our real estate market year over year is really very encouraging," remarked Ron G. Sparks, managing vice president of Coldwell Banker Bain. Compared to 12 months ago, the Puget Sound region has nearly 7,000 fewer homes listed for sale, and nearly 1,200 more homes under contract, he noted, adding, "In anyone's book, that's substantial improvement."

J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, echoed those comments. "It's encouraging to see that pending sales are at their highest since the credit bubble burst nearly two years ago," he stated. While the median home price is down approximately 10 percent from a year ago, median prices have flattened over the past seven to nine months, he noted. "This is an indication that the $8,000 tax credit is working and the market has reactivated itself in the more affordable and mid price ranges," Scott believes.

Northwest MLS brokers notched 7,733 pending sales of single family homes and condominiums (combined) in their 19-county market area last month. That's a gain of 1,263 transactions from the same month a year ago, for a 19.5 percent increase. Seven counties reported jumps in pending sales of 30 percent or more: Cowlitz, Island, Kitsap, Mason, Pacific, Skagit, and Snohomish, with Kitsap County topping the list with its 55.6 percent increase.

Pending sales (offers made and accepted) in the four-county Puget Sound region (King, Kitsap, Pierce and Snohomish) rose more than 25 percent in June compared to the same month a year ago, increasing from 4,765 transactions to 5,693.

Closed sales and prices still lag a year ago, but prices are edging up since the beginning of the year. Brokers reported 5,146 closed sales of single family homes and condos during June, a dip of 4.3 percent from twelve months ago when they reported 5,379 completed transactions.

Viewed separately, the volume of closed sales of single family homes nearly equaled year-ago totals (4,463 closings last month, down from 4,516 for June 2008). Condo sales were off nearly 21 percent, dropping from 863 closings to 683.

The area-wide median price for last month's closed sales of single family homes and condos combined was $285,000, a drop of 9.5 percent from the year ago figure of $314,900. In the Puget Sound region, the volume of closings nearly matched year-ago totals (3,885 versus 3,908), but prices are down about 10 percent. The median price for last month's completed sales in the four-county area was $305,950; a year ago it was $340,000.

"There is a definite upsurge in sales activity, from a pending sales perspective and a "lookers becoming buyers" perspective," observed NWMLS director Dick Beeson. Agents are reinvigorated that buyers can and will make decisions more today than any other time over the past 12 months, according to Beeson, the broker at Windermere Real Estate/Commencement Associates in Tacoma.

Beeson believes mortgage rates remaining low, declining inventories, and the recent stretch of warm, dry weather helped spur some buyers to act. He said the "word' on the $8,000 tax credit has finally reached the streets, as more buyers come in aware, prepared and excited about taking advantage while the advantage is available. (The federal tax credit of up to $8,000 is available for qualified first-time home buyers purchasing a principal residence before December 1, 2009.)

House-hunters will find fewer choices than a year ago. MLS members added 11,410 listings of single family homes and condos to inventory during June, down 13.5 percent from the year-ago total of 13,187.

At month-end there were 34,278 single family homes and 7,039 condominiums offered for sale, for a total of 41,317 listings. That's down 17.6 percent from a year ago when MLS members represented sellers of 50,143 properties.

Buyers continue to look for modestly priced homes, with first-time buyers accounting for about 40 percent of today's market, according to estimates by Beeson.

Although the supply is plentiful with asking prices of current inventory ranging from $24,000 to $32 million, homes at the lower end of the price spectrum tend to be in short supply in some areas. In King County, for example, MLS data indicate less than 9 percent of the inventory of single family homes has an asking price under $250,000.

For condominiums in some submarkets, brokers report projects that "demonstrate their market value" are finding success. Sam Cunningham, managing broker and partner in Realogics Brokerage, which specializes in center city condominiums, believes prices are stabilizing and consumer confidence is improving.

Cunningham reports inventory levels in the downtown Seattle market have been declining for a year and there's no new construction planned. He suggests "timing the market" for buyers may finally have more to do with preferred selection and interest rates than waiting for dramatic price drops.

MLS figures indicate the median sales price for condos that sold in Seattle's downtown core last month was $449,450. That's down about 8 percent from a year ago, but reflects four months of steady increases.

Commenting on the MLS report, Sparks, of Coldwell Banker Bain, remarked, "If there is a downside, it might be that this improvement isn't uniform across the region." As an example, he said his company's Lynnwood office saw year-over-year closed sales increase 144 percent, while the Gig Harbor office reported a meager 4 percent gain.

Data show some neighborhoods are rebounding faster than others, Sparks observed. "In what appears to be a transitional market, accurate neighborhood information is more critical than ever, so buyers, sellers and their agents really need to do their homework" he emphasized.

Short sales continue to be a drag on prices and source of frustration for brokers and agents, according to Beeson. A National Association of REALTORS® analysis revealed that distressed homes typically sell for 20 percent less than the normal market price, thereby drawing down the overall median price.

Many pending sales are yet to close because of short sales, which Beeson estimates take twice as long to close as a more conventional transaction. "Many pendings have to be resold because the first buyer tires of waiting for the lender's response."

Beeson also notes the next challenge will be reactions to the next round of foreclosed properties that are expected to come on the market in the next six months. He said there could be another dip in prices, but adds, "I think we've been through the worst."

Best Regards!

HUD moves forward with plan to “monetize” tax credit in FHA loans

Posted: Thursday, July 9, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Secretary Donovan reinstates commitment to REALTORS

The Department of Housing and Urban Development soon will issue guidance enabling FHA-approved lenders to provide short-term “bridge loans” to borrowers who are eligible for a one-time $8,000 first-time homebuyer tax credit. HUD issued an initial mortgagee letter on May 12 outlining a program that enabled borrowers to use tax credit funds toward down-payment and closing costs. This advisory is being revised.

HUD has drafted new language that is expected to be posted any day now, according to sources. HUD secretary Shaun Donovan told the National Association of Realtors on May 12 that FHA approved lenders, nonprofit housing groups, as well as state and local government entities would be permitted to “monetize the tax credit through short-term bridge loans.” HUD expects these bridge loans will help more borrowers to become homeowners. The department also wants to prevent lenders from abusing the program by charging FHA first-time homebuyers excessive fees and rates.

Source: Seattle King County Association of REALTORS Broker Update, June 2009

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

State Treasurer urges IRS to make bridge loans easier

Posted: Wednesday, July 8, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Efforts to get the $8,000 first time home buyer credit available to the buyer at closing have stalled at the IRS office. The Governor has signed the legislation that allows the Washington State Housing Finance Commission to make the funds available. Washington REALTORS® have provided the money to guarantee the program and the State Treasurer has asked the IRS to allow tax credit eligible buyers to assign their refunds to the Housing Finance Commission.

To make the program work, there must be a mechanism to ensure that when the borrower receives the $8,000 from the IRS, those funds are dedicated to pay off the bridge loan. Should the IRS refuse to allow “assignment” of the tax credit, we are working on alternatives to make this program available by the end of June. REALTORS® are actively monitoring this issue and will update you as soon as more details are available.

Source: Seattle King County Association of REALTORS Broker Update, June 2009

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

Senator Murray sponsors Expansion of Homebuyer Tax Credit

Posted: Tuesday, July 7, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

After meeting with REALTORS last week, key Senator introduces legislation to extend tax credit until June 2010 AND make it available to ALL buyers.

Senator Patty Murray has authored language to extend the $8000 First-Time Buyer Federal Tax Credit until June of 2010 and to make the extended tax credit available to all homebuyers until that date. This language also removes the income “cap” for receiving the credit. The current credit is only available to those who have not owned a home within the past three years and is available to purchases that close no later than November 30.

In a meeting with Seattle King County REALTORS® on May 13, 2009, Senator Murray said she favored an extended tax credit for homebuyers. Her attempt to attach this amendment to a supplemental appropriations bill last week failed on a procedural motion. However, sources say her language could remain eligible for consideration by the Senate later this year.

Source: Seattle King County Association of REALTORS Broker Update, June 2009

David J Edwards

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

Renton School Board votes to delay opening Honey Dew Elementary School for one year

Posted: Wednesday, June 17, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

The ability to teach students at current schools and the nearly $2 million in annual operating costs, were cited as reasons for postponement.

June 10, 2009 — Renton School Board members voted at tonight’s meeting to delay the opening of Honey Dew Elementary School for another school year. Board members were presented a plan by the district to continue to house students at existing schools. The presentation also emphasized that the cost to open and manage a new elementary school could be as much as $2 million per year; money the district would have to find in its current operating budget, even as the budget was reduced for next school year by $5.3 million. Board members will again review the use of the school sometime in the coming school year for the 2010-2011 school year.

Honey Dew, located at 800 Union Ave NE, Renton, has not been used as a neighborhood school for the past 10 years as it housed students from other district elementary schools as those schools were rebuilt. Thanks to voter support, all of the district’s 13 elementary schools have been completely rebuilt.

Student enrollment throughout the district remains stable at about 13,700 students. The district welcomes about 100 new students each school year.
Although some neighboring schools are nearing capacity, district numbers show that students who would attend Honey Dew can continue to receive quality instruction at other local elementary schools, located within about a one-and-a-half mile radius of Honey Dew.

Honey Dew Elementary is currently undergoing modernization to meet the needs of a 21st century school. The work is part of a bond measure approved by voters in 2003. The construction project is on time and on budget. Many elements of the existing building will be reused to be environmentally friendly.

Improvements to the fields at Honey Dew also continue. The new fields, which are widely used by neighborhood and community sports teams, will be ready by the summer of 2010, and will include: a new baseball field with dugout and bleachers, 2 softball fields with backstops and 2 soccer fields. The field will also benefit from replacement of the sod and infield dirt mix; raising of the field and improved drainage to keep water from standing on the surface; and, installation of an irrigation system.

The district held true to its promise not to increase tax rates with the approval of the bond and levy measures to renovate Honey Dew, add a classroom wing at Hazen High School, and many other classroom and field improvements throughout the district. The district’s tax rate remains among the lowest in the region.

David J Edwards
Real Estate Agent & REALTOR
The David J Edwards Team
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
Website: http://www.davidjedwards.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
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The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

Will Rising Interest Rates Kill a Recovery in Housing?

Posted: Monday, June 15, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Paul R. La Monica, CNNMoney.com's editor at large wrote an interesting article about the rise in long term treasury bond yields and their impact on interest rates. To read the full article visit http://money.cnn.com/2009/06/08/markets/thebuzz/index.htm.

Here is an excerpt from the article:

"The Fed lowered its key federal funds rate, an overnight bank lending rate, to near zero in December and has kept it there ever since. And the central bank announced in March it would start buying $300 billion in long-term Treasuries to keep long-term rates low, a phenomenon known as "quantitative easing."

The justification is that many believe the only way for the economy to truly get healthier again is for the housing market to get out of its funk. The direction of long-term yields tends to have an effect on mortgage rates.

Some fear that a nascent pickup in housing sales -- despite a continued slide in prices -- could come crashing to a halt if it suddenly become smore costly for people to finance a home purchase.

And according to Bankrate.com, a Web site that tracks lending rates across the country, the average 30 year fixed rate mortgage is now 5.45% up from 5.23% a week ago and a record low of 4.85% in April."

Nonetheless, it's important to note that even if rates go up a full point, they will still be within the average 5% to 6% we were used to during the runup between 2003 and 2006.

It's my belief that rates won't skyrocket much higher. Rates seem to have rebounded because people believe the economy is getting better. If they keep surging, it could slow down our recovery.

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

Purchase Activity Increasing

Posted: Thursday, June 4, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Although it's sometimes hard to feel, home purchase activity in the Northwest is trending upward. In the first quarter of 2009 the percentage of home purchases vs. refinances increased from 11% in January to 23% in March. Although still a long way from the 7 to 3 purchase to refinance ratio of a few years ago, it's heading in the right direction.

We don't really want to be where we were a few years ago anyway. The more steady the recovery, the more likely we are to avoid another runup that will borrow buyers from the future. We want the recovery to take the shape of a "V" rather than the shape of a "W" which would result in another drop before we stabalize.

A slowdown could easily be caused by the Federal Government's failure to renew the first time homebuyer tax credit and/or a rise in interest rates for home loans.

Best Regards

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

Keller Williams Realty Brokerages Dominate Annual Industry Survey

Posted: Saturday, May 23, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

3rd largest company in U.S. the only major franchise to show growth

AUSTIN, TEXAS (May 19, 2009) —According to two of the industry’s most comprehensive annual surveys, Keller Williams Realty brokerages continue to defy the pervasive downturn in the industry by growing and expanding.

RISMedia’s Power Broker Report and REAL Trends’ REAL Trends 500 rank the largest residential real estate brokerages in the U.S. based on transaction sides and sales volume. This year, Keller Williams Realty had more brokerages on both lists than any other real estate brand.

In the REAL Trends 500 report, Keller Williams Realty dominated, with its offices comprising more than a quarter of the entire list. Of all the major brands represented in the report, Keller Williams was the only company to boast growth in both number of agents added to its ranks and in total transactions closed.

Within RISMedia’s Power Broker Report, Keller Williams Realty again had the largest majority on the list – accounting for 35 percent of all the brokerages listed. The report also ranked Keller Williams Realty #1 in number of agents and total closed transactions.

“These results prove what we already knew – Keller Williams Realty is experiencing the next phase of our growth during this shift,” said Mark Willis, CEO of Keller Williams Realty, Inc. “Our agents and offices are capitalizing on the opportunities presented in today’s market and powering forward.”

“Two years ago, when the market began to shift, we mobilized to make sure our people would have the training, support and technology to tackle the market and they have truly blown us away with their accomplishments,” he added.

Within the past 18 months, Gary Keller, co-founder and chairman of the company, released his latest book, SHIFT: How Top Real Estate Agents Tackle Tough Times which became the No. 1 selling real estate book for agents in 2008. The launch also included a nationwide seminar tour which is slated to visit more than 50 cities throughout North America by the end of the summer. Other initiatives included the delivery of affordable health care options for KW associates through the new Keller Williams Health Providers Program and the launch of the company’s commercial arm, KW Commercial.

“When we do what we do best – coach and train our associates to higher levels of personal productivity and profitability – growth takes care of itself,” said Mary Tennant, president and COO of Keller Williams Realty, Inc. “Keller Williams Realty, the franchise company, didn’t rank on these lists – our people did.”

“We’re confident we’re in businesses with some of the most talented and focused individuals in the industry and we are so proud of all they’ve achieved,” added Willis.

About Keller Williams Realty Inc.:

Founded in 1983, Keller Williams Realty Inc. is the third-largest real estate franchise operation in the United States, with 679 offices and 73,000 associates in the United States and Canada. The company, which began franchising in 1990, has an agent-centric culture that emphasizes access to leading-edge education and promotes an economic model that rewards associates as stakeholders and partners. The company also provides specialized agents in luxury homes and commercial real estate properties. For more information, or to search for homes for sale visit Keller Williams Realty online at (www.kw.com).

All analysis conducted based on rank by transaction sides

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

Pending sales in Western Washington rise with improved affordability, buyer incentives

Posted: Thursday, May 7, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

KIRKLAND, WA, May 5, 2009 –Northwest Multiple Listing Service members reported pending sales for April surged 11.4 percent compared to twelve months ago – and rose 21.3 percent from March. Brokers reported 6,918 pending sales during April across the 19 counties that make up the Northwest MLS market area. That's up from the year-ago total of 6,208, and the March figure of 5,701 pending sales (offers made and accepted, but not yet closed).

For the four-county Puget Sound area (King, Kitsap, Pierce and Snohomish), brokers notched 5,372 pending sales, the highest total since August 2007 and a jump of 26 percent from March.
Inventory is shrinking and prices are showing some signs of stabilizing, according to data in the latest report from Northwest MLS. The median price for last month's closed sales of single family homes and condominiums area-wide was $270,000. That matched the figure for March, but still lagged prices of a year ago (down 12.9 percent).

Inventory is down 18.3 percent from year-ago levels, with Clark, Kitsap and Pierce reporting the largest drops. Members added 10,824 new listings of single family homes and condos to inventory last month, down almost 20.5 percent from the year-ago total of 13,607 new listings.
Lower prices, record low mortgage interest rates, improving consumer confidence, the $8,000 first-time buyer tax credit and other incentives for buyers are credited with spurring activity. Industry officials, noting activity is quite strong in the lower, more affordable price ranges, hesitate to declare a housing recovery is under way:

• Dropping inventories and rising affordability are positive signs, according to Frank Nothaft, Freddie Mac's chief economist. "The housing market may be edging toward a bottom," he stated.
• "April was a good market for new pending sales; we seem to be moving to a more balanced market," said NWMLS director Meribeth Hutchings, broker/owner of Windermere Real Estate/Lake Stevens, Inc.
• "We need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around," said Lawrence Yun, chief economist for the National Association of Realtors®.
J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, described the market as "bifurcated." "Sales are up and prices have stabilized in the more affordable market," he explained, while noting the mid- to upper-end markets are experiencing entirely different conditions.

NWMLS director Kathy Estey agreed. "We had our best month since September," she commented, but said sales of homes priced at $1 million or more are still slow compared to the pace of a few years ago. Estey, the managing broker at John L. Scott's downtown Bellevue office, said sales of high-end homes lag in part due to limited availability of mortgages for homes priced above conforming loan limits. (The median asking price for homes currently offered for sale in West Bellevue, a market served by Estey's office, is more than $1.5 million.)

Another MLS director reported a "terrific increase" in first-time buyer activity in Seattle's close-in neighborhoods, calling it the best it's been in almost two years. "We just had five offers on a Ravenna house priced around $400,000 and it sold for considerably more than the list price," said Mike Skahen, the broker at Lake & Company. He also said another one of his agents represented a client whose offer beat out 10 competitors. "I hope we're seeing the start of the spring selling season," something he said was lacking last year for the first time since starting his real estate career 33 years ago.

In King County, pending sales of single family homes (excluding condos) rose more than 25 percent from March. Of six "sub-areas" the MLS tracks within the county, North King County (encompassing Shoreline, Lake Forest Park and Kenmore) and the Eastside areas had the strongest month-to-month gains. Compared to March, pending sales of single family homes for April shot up nearly 52 percent in the North King County map areas, and rose more than 35 percent on the Eastside.
Prices for sales of single family homes and condos that closed last month in King County continued to lag year-ago totals (down 15.3 percent), but edged up from March (up 4.5 percent). For single family homes (excluding condos), the median selling price for April's sales was $350,000, up 4.4 percent from March.

Condominium sales area-wide were down about 7.5 percent from a year ago, but up significantly (40.8 percent) from the previous month. In King County, which accounts for about six of every 10 condo sales, pending sales were down 8.1 percent from a year ago, but jumped nearly 42 percent from March.

Tacoma broker Dick Beeson of Windermere/Commencement Associates also reports the market there is warming up, evidenced in part by increased traffic at open houses and phone calls. Many first-time buyers are still unaware of the $8,000 tax credit, according to Beeson, who says it is stimulating marginal interest. "It is almost a serendipity to first-time buyers when they discover they qualify."

"Most everyone recognizes that real estate in our region is 'on sale,' and that's certainly validated in the latest report," stated Ron Sparks, managing vice president at Coldwell Banker Bain. Buyer demand has increased to 2006 levels in some notable area neighborhoods, according to an analysis by Sparks, who tempered his optimism by saying, "For the scale between buyers and sellers to balance, it's important that buyer demand begin to increase so prices can stabilize. The MLS report and comments from agents in the field tell us we're seeing some progress in that direction."
Sparks also said in his experience, "highly advantageous buyer markets are pretty rare," so when they appear, he's inclined to advise people confident in their financial position to take advantage of it. He extends such advice to his own children, he admitted, noting one of them just closed escrow and another just made her first offer.

Lawrence Yun, NAR chief economist, said it should take a few months for the market to gain momentum. "This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions and an $8,000 tax credit, which increases buying power even more in areas where special programs allow buyers to use it as a downpayment," he said in commenting on a new report from NAR that showed a nationwide rise in pending sales for March.

Best Regards!

David J Edwards
Real Estate Agent & REALTOR
The David J Edwards Team
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
Website: http://www.davidjedwards.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF
View This Week's Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

Economic Update

Posted: Wednesday, May 6, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

On Tuesday, April 28, the Conference Board reported that its consumer confidence index rose 12.3 points to 39.2 in April. Economists had expected the index to increase to 29.5. It is the highest level since a November reading of 44.7 and is the largest jump since a gain of 13 points in November 2005. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence.

The Commerce Department announced Wednesday that gross domestic product — the total output of goods and services produced in the U.S. — decreased at an annual rate of 6.1% in the first quarter of 2009. This follows a 6.3% decline in the fourth quarter of 2008. It marked the worst two-quarter performance since 1957-58. One positive aspect to the GDP numbers was a 2.2% increase in consumer spending.

The Labor Department said initial claims for unemployment benefits fell in the week ending April 25 to 631,000 from the previous week's upwardly revised figure of 645,000. For the week ending April 18, the number of people continuing to claim jobless benefits increased 133,000 to 6.271 million.

The Reuters/University of Michigan consumer sentiment index rose in April to 65.1 from 57.3 in March. Economists had forecasted a reading of 61.9. It was the highest reading since September 2008 and the biggest one-month gain since October 2006. The index has rebounded significantly from a 28-year low of 55.3 in November 2008.

The Institute for Supply Management reported the monthly index of manufacturing activity rose in April to 40.1 from 36.3 in March. Though any reading below 50 signals contraction, it was the fourth consecutive monthly increase from a record low of 32.9 in December.

Upcoming on the economic calendar are reports on construction spending and pending home sales on May 4, consumer credit on May 7 and wholesale trade on May 8.

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

Economic Issues of the Moment

Posted: Monday, May 4, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Unfortunately, we are not yet at bottom of the economic slowdown, although we may have gone through the most significant period of our credit crisis. While housing credit losses have slowed down and will soon be behind us, credit card losses and commercial lending losses are still posting increases. Remember not just home loans, but other loans, commercial, auto, student, lines of credit, etc. are securitized as well.

The good news over the last 2 weeks, though, is that a strong number of economists do believe that the worse of our credit woes are behind us, and that it looks like our economy will begin to rebound in the next 6 months.

The Home Valuation Code of Conduct officially went into affect today. This new ruling is aimed at appraisals, and the integrity of home valuation. It affects all of us, all lenders, all mortgage brokers, all realtors. The 2 most important things to understand follow.

First, lenders must document that appraisals were delivered to borrowers within 3 days after underwriter/loan approval. Problems will arise if loan approval is not completed at least 3 days before the signing date, to meet a close date the next day. There is a waiver that the buyer can sign to avoid this 3 day delivery requirement. Can you be confident that the buyer's lender is on top of these things? Second, lenders cannot accept any appraisal from other lenders.

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

Brokers Report Signs of Improvement in “Real-time” Housing Market

Posted: Saturday, April 25, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

KIRKLAND, WA April 6, 2009 – Pending sales around Western Washington for the month of March reached the highest level in six months, according to the latest figures from Northwest Multiple Listing Service.

Compared to February, last month’s pending sales (offers made and accepted, but not yet closed) surged 25 percent, rising from 4,559 transactions to 5,701. Last month’s volume was down 5.6 percent when compared to twelve months ago, but it was the highest monthly total since September when brokers reported 5,982 pending sales.

Inventory fell sharply from a year ago (down more than 14 percent), in part due to fewer new listings being added to the supply. Member brokers added 10,252 new listings during March, compared with 13,274 for the same month a year ago, for a drop of nearly 23 percent.

At month-end, there were 39,825 active listings of single family homes and condominiums in the MLS database, a decline of 14.1 percent from the year-ago total of 46,358 listings. The total includes 33,083 single family homes and 6,742 condominiums in 19 counties.

NWMLS director Dick Beeson believes continued reduction in inventory will spur buyer activity. “Well priced and well conditioned properties will generally be the first ones purchased,” Beeson, the broker/owner of Windermere Commencement Associates in Tacoma, predicts.

Beeson said open house traffic and calls from “for sale” signs have increased twofold in recent weeks. Buyers are scouring the Internet before calling or visiting open houses so they tend to be knowledgeable about options in their price range, he remarked, while noting they’re still seeking assistance from Realtors® in navigating the negotiation and closing process.

Prices for last month’s completed sales fell about 14 percent area-wide from a year ago, reflecting a combination of factors, including a lingering imbalance between supply (inventory) and demand (buyers), creating a favorable market for buyers. Also, although not quantified in the NWMLS report, a sizable number of foreclosed homes and short sales are included in the monthly tallies so those deeply-discounted properties tend to drag down prices overall.

“As expected, the numbers reflected in the March report continue to show year over year declines. However, these historical comparisons fail to tell the story of the real-time market, which is beginning to show true signs of improvement in many areas,” said Ron Sparks, managing vice president of Coldwell Banker Bain.

Sparks said his company’s Tacoma regional offices reported tripling sales in March, driven in part by lower prices, exceptionally low interest rates and incentives such as the $8,000 first-time homebuyer tax credit. The incentives are also credited with spurring increased buyer activity and competition for “starter” homes in many Seattle neighborhoods.

Pending sales in the MLS map areas that make up most of Seattle surged 35.4 percent in March compared to February. The southwest part of King County also registered robust month-to-month gains – 39.3 percent -- while sales on the Eastside rose more than 32 percent last month compared to February.

Seven of the 19 counties in the MLS system reported gains of 30 percent or more when comparing last month’s pending sales to February totals. Those counties were Grant, Island, Lewis, San Juan, Skagit, Snohomish and Whatcom.
A comparison of price changes for last month’s closed sales shows a 15.4 percent drop in the median price of a single family home compared to twelve months ago and a 2.8 percent decline from February. Of the 19 counties in the MLS report, eleven reported price increases from February.

Condominium prices are down about 8 percent from a year ago and 2.5 percent from a month ago. About half the counties that reported closed sales of condominiums during March showed price increases when compared to February.
Brokers report growing awareness and use of the $8,000 tax credit for first-time buyers, but are less certain of the impact of federal programs for helping distressed homeowners. “The congressional stimulus package for housing refinances to help distressed homeowners by reducing their mortgage interest rates has not really benefited as many as was hoped,” according to Beeson. “Few, if any, banks seem willing to participate,” he commented.

J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, believes more can be done at the national level to stimulate the housing market. In testimony before a U.S. Senate committee last week, he urged support for a number of measures proposed by the National Association of Realtors®. The proposals include allowing a home buyer to use tax credit funds toward a down payment and encouraging FHA to use its authority to increase loan limits in communities that have exceptionally high home prices.

Encouraged by some of the positive indicators in the latest MLS report, Sparks acknowledged “we’re not out of the woods quite yet, but market improvement must begin somewhere.” NWMLS director Dick Beeson agreed. “All in all, we are seeing generally increased interest at all levels of the market, high and low end. We may not soon see 2005 or 2006 levels of sales numbers, but we're holding our own and progressing steadily in the right direction.”

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

How does the Stimulus benefit Washington State?

Posted: Wednesday, April 22, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Have you ever wondered who's actually getting the stimulus money and what types of projects are being funded? This impacts our state and local community so visit www.StimulusWatch.org to learn more!

StimulusWatch.org was built to help the government keep its pledge to invest stimulus money smartly and to add transparency and accountability to the process.

At StimulusWatch.org you can find and review projects that are candidates for funding by federal grant programs. You can even sort the projects by activity, expense, and need.

Better still, you can access a list of projects by state, so you can see how the Stimulus Plan will impact our state and local community - including costs, number of jobs, and exact locations! Simply select our state and review the projects under consideration. You can even add comments about the value of the projects listed!

It's convenient, interactive, and easy to understand - check it out today!

View This Week’s Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

Foreclosure Moratorium Lifted

Posted: Thursday, April 16, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

After over four months of speculation and uncertainty, the foreclosure moratorium has been lifted by Fannie Mae and Freddie Mac, according to Mary Kane of the Washington Independent (4/2/09). Enacted initially to keep families in their homes through the holidays, the moratorium was extended for almost three months as a long term solution was sought for the influx in foreclosure filings. This announcement follows the stock market’s recent surge and positive housing sale news for the month of February.

Homeowners facing foreclosure can now explore alternatives during the process; a process which differs for each state. The new regulations allow lenders to offer a loan modification to the homeowner, an effort to correct financing missteps and keep homes occupied. If unsuccessful, the homeowner and lender are able to quickly pursue a short sale on the property. While this serves as a viable solution, the short sale process traditionally has been a complicated transaction. Both of these options may provide solutions for lenders and homeowners, but the volume of REO properties is still expected to steadily increase and impact the market in Q2 and Q3 of 2009.

Expertise in the REO space will continue to benefit agents and brokers, especially in the hard hit areas. Lenders and Asset Managers are looking for agents with specific skills and experience in marketing and selling REO properties. As the property volume grows, there will be an increasing necessity for expert REO agents to find buyers and liquidate the large number of bank owned properties which have been held back by the moratorium.

David J Edwards
Real Estate Agent & REALTOR
The David J Edwards Team
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
Website: http://www.davidjedwards.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF
View This Week's Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

The Seattle Times: First-Time Buyers Benefit from Prices, Choices, Tax Credits

Posted: Wednesday, April 15, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

The Seattle Times published an interesting article concerning all of the factors that have come into alignment to make it a great time to be a first-time home buyer.

The article was originally published on March 21st, 2009. Here is a link to the article.
http://seattletimes.nwsource.com/html/realestate/2008894939_firsttimebuyers22.html

If you have questions about the benefits to first-time home buyers that were mentioned in the article, feel free to contact me. I'd be happy to answer any questions you might have.

David J Edwards
Real Estate Agent & REALTOR
The David J Edwards Team
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
Website: http://www.davidjedwards.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF
View This Week's Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

"Renton's Most Wanted" Online

Posted: Friday, April 10, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

The Renton Police Department has launched a new crime-fighting tool on the city's website called Renton's Most Wanted. Check it out at http://www.rentonwa.gov/living/default.aspx?id=21588.

View This Week’s Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

Renton: The city's Priorities

Posted: Thursday, April 9, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Below is a list of the priorities for the City of Renton. They were presented by Mayor Denis Law during his 2009 State of the City address.

Evaluate Annexations Without Impacting City Services
Welcome annexation areas that desire to be a part of Renton while ensuring adequate funding for Renton.

Ascertain Community's Future Needs for Library Service
As significant investments are needed to meet future library needs, the city is working on a plan to give our community the option to determine whether or not to annex to the King County Library System.

Reduce Crime and Enhance Safety in our Neighborhoods
Increase video surveillance at transit center and other identified areas
Expand anti-graffiti iniatives, including placing several surveillance cameras at key locations, prosecuting offenders and seeking restitution
Expand "Renton's Most Wanted," an effort to provide the community with information on wanted criminals
Cooperate with 18 other agencies in King and Pierce County to reduce auto theft

Continue to Prepare City and Community for Emergencies
Prepare Emergency Preparedness Plan for potential impact from the Howard Hanson Dam
Develop automatic notification system and establish Community Emergency Response Teams for businesses
Increase public access to AEDs (Automated External Defribrillators)

Empower Citizens to Envision the Future of Renton
Launch Community Planning Initiative to empower citizens to create a visionary, yet strategic and sustainable future for Renton
Implement the Highlands Task Force recommendations for the revitalization of the Highlands neighborhood

Emphasize Strong Economic Development to Create Jobs
Begin construction of Hawk's Landing, a new hotel at the Pan Adobe site
Celebrate the Seahawks' first full year at their new training camp
Work closely with Boeing to ensure continued prosperity and partnership

Invest in Significant Road Project Infrastructure and Improvements
Improvements to Rainier Avenue
Install school zone flashers at all schools
Improve sidewalk safety
Work with King County Ferry District to provide passenger ferry service on Lake Washington that will serve Renton
Work with Sound Transit, WSDOT and our regional partners to ensure high capacity transit investments in our community

To learn more about priorities impacting home values in the City of Renton, please feel free to contact me.

Renton: State of the City

Posted: Wednesday, April 8, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Here is an excerpt from Mayor Dennis Law’s State of the City address:

“Our region and city are experiencing one of the most difficult periods of our lifetimes, but even in these trying times, the state of our city is strong. With the exceptional vision and leadership of the City Council and the efforts of each and every city employee, we have accomplished a great deal in the face adversity.

We continue to look at every possible way to maintain high quality service to our citizens while making decisions that will ensure our ability to provide critical services.

And though these times will test us, it gives us the opportunity to transform ourselves – an opportunity to keep our city on a path that will lead to enhanced fiscal accountability, greater efficiencies, and a culture of innovation.

The downturn in the U.S. and Puget Sound economies will be felt in Renton. Renton employment is expected to decline about 3 percent this year. Housing permits dropped from more than 1,300 units in 2007 to 448 in 2008, and further declines are anticipated.

However, this past year Renton was one of only three cities in the Puget Sound region to see a positive growth in retail sales.

In October we passed the city’s 2009 budget of $252 million. Of this, the city’s general government operations expenses equal $101 million, which pays for things such as police, fire and other key services. Due to the decline in the economy we are projecting future deficits of possibly as much as 8 percent.

We are working hard to explore options to determine how best to bridge the gap with the least impact to the community we serve. As the city moves forward we will maintain a long-term view toward prosperity, while strengthening confidence in city government and making a difference in people’s lives.

Despite the economic challenges, Renton has been experiencing some positive gains lately. Businesses continue to open at The Landing and throughout the city, and most stores are exceeding their performance expectations.

Tough times reveal true character, and following these challenging times we will come through this a stronger city. We will make difficult choices today, but attain greater prosperity tomorrow.”

For a complete copy of the Mayor’s state of the city speech, go to www.rentonwa.gov.

To learn more about economic factors impacting home values in the City of Renton, please feel free to contact me.

View This Week’s Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

First Time Home Buyer Tax Credit for 2009

Posted: Tuesday, April 7, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Tax Credit at a Glance
The tax credit is available to first-time home buyers only.
The tax credit does not have to be repaid.
The tax credit is equal to 10% of the home's purchase price up to a maximum of $8,000.

The credit is available for homes purchased on or after January 1st, 2009 and before December 1st, 2009.

Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

Frequently Asked Questions

Who is eligible to claim the tax credit?

First-time home buyers purchasing any kind of home-new or resale-are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1st, 2009 and before December 1st, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.

What is the definition of a first-time home buyer?

The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

Are there any income limits for claiming the tax credit?

The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?

The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.

How do I claim the tax credit? Do I need to complete a form or application?

Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.

What types of homes will qualify for the tax credit?

Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

I read that the tax credit is "refundable." What does that mean?

The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit. For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).

I bought a home in 2008. Do I qualify for this credit?

No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit.

The Law's Other Provisions

In addition to the tax credit, the American Recovery and Reinvestment Act of 2009 has several other profisions that will benefit home buyers and the housing market. The legislation:

Will help home buyers in high-cost markets by extending the FHA, Fannie Mae and Freddie Mac loan limit of $729,750 through the end of 2009.

Allows state housing finance agencies to help buyers at closing by advancing the credit as a loan using proceeds from tax-exempt bonds.

Extends the tax code section 25c credit for energy-efficient home improvements through the end of 2010; increases the credit rate from 10 percent to 30 percent; raises the lifetime cap from $500 to $1,500; expands the list of eligible improvements.

For 2008 operations, expands the net operating loss carryback period from two years to five years for small businesses (businesses with average gross receipts f no more than $15 million over the previous three years).

Temporarily allows exchange of Low-Income Housing Tax Credit allocating authority for tax-exempt grants and appropriates $2 billion in HOME funding for affordable housing projects.

Provides a "patch" for the Alternative Minimum Tax for tax year 2009.

Increases bonus depreciation and section 179 small business expensing for business investment in 2009.

Increases New Markets Tax Credit allocating authority for 2008 and 2009.

Delays for one year - from 2011 to 2012 - the start of the three percent government contractor withholding requirement.

This information has been provided courtesy of the National Association of Home Builders. Please contact me to learn more about how you can take advantage of the benefits of the tax credit.

David J Edwards
Real Estate Agent & REALTOR
The David J Edwards Team
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
Website: http://www.davidjedwards.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF
View This Week's Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

Down Payment Assistance

Posted: Monday, April 6, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Downpayment assistance programs make home buying easier for low to middle income, first-time home buyers. The following program summary applies to buyers in the city of Tacoma. If you would like more information about downpayment assistance programs in your city, please contact me and I will send you the information.

PROGRAM SUMMARY
The maximum loan amount is 6% of the selling price and the required borrower participation can't be less than $500. The Down Payment Assistance loan can be used to pay for down payment, closing costs, and buying down the interest rate.

Borrower qualifying ratios:

Homebuyer's gross annual household income cannot exceed 80% of the median income for Tacoma

The mortgage payment ratio cannot exceed 40% of the household's gross monthly income

Total monthly payments (including credit accounts) to income ratio shall not exceed 50%.

The Affordability Index shall not exceed "one" ~ as determined by the mortgage payment (Principle, Interest, Taxes, Insurance)/40% of the household's gross monthly income

The TCRA must be in a second position on title, an exception is made for Section 8 home purchase assistance or Housing Finance Commission "Home Choice" funding

Primary loan must be a fixed rate for the first two years of the loan; no adjustable rates for the first two years.

The homebuyer must be a "first-time homebuyer", not have owned a home for three or more years. -Exceptions to this policy include displaced homemakers and single parents who resided in a home owned by their spouse. Household cannot own any other home and borrowers must attend a homebuyer's class (certificate of completion required).

This is an excellent opportunity for homebuyers who don't have the down payment necessary to purchase a home, but can afford to make monthly mortgage payments.

Call Reggie Brown at Pierce Commercial Bank for additonal details. His number is (253) 202-5025.

http://www.topproducerwebsite.com///users/15587/images/DPA_Tacoma_Income_Limits.jpg

http://www.topproducerwebsite.com///users/15587/images/DPA_Tacoma_Map.jpg

Down Payment Assistance Program Details and Guidelines

Property Qualification:

The property being purchased must be a single-family residential dwelling or Condominium.

During the period the property is offered for sale and at the time of sale, the dwelling must be vacant, occupied by the applicant or occupied by the seller. In no case shall the dwelling be occupied by a tenant who would be displaced by the sale. This requirement must be confirmed in writing by the seller of the property prior to receipt of the down payment assistance.

The property must be located within the boundaries as indicated on the map, within the city limits of Tacoma.

An inspection will be made by City staff to ensure the property meets minimum Housing Quality Standards (only necessary if HOME funds are the funding source). If the home was constructed prior to 1978, a visual paint assessment will be included. The presence of peeling, chipped, chalking or cracked paint must be corrected or a report from an EPA-certified inspector be provided showing no lead-based paint hazards exist on the property.

Borrower Qualification:

The applicant must be a first-time homebuyer, which is defined as not having owned a home during the three-year period prior to the purchase under this program. A displaced homemaker or a single parent may not be excluded from consideration as a first-time homebuyer on the basis that the individual, while married, owned a home with their spouse or resided in a home owned by the spouse. The household cannot own nor have an interest in any other real estate at the time of purchase. Co-signers who will not live in the home are not allowed.

Borrower must provide minimum down payment contribution of $500.00.

The applicant must have signed and entered into an “Earnest Money Agreement” or a “Purchase and Sale Agreement” with the seller of the property.

The income level of the applicant (all household members over 18 years of age) must be no greater than 80% of the median income established by HUD for the Tacoma area.

The applicant agrees to occupy the home as his/her primary residence for the life of the loan. Failure to do so will result in the acceleration of the note and the outstanding loan balance will be called due.

The borrowers must have completed a homebuyer’s class and have received a certificate of completion from such.

The front end Debt-to-Income ratio cannot be greater than 40% (PITI divided by monthly gross income). Considerations may be made for higher ratios and approved on a case by case basis.

The Loan-to-Value is not to exceed 110%. An exception will allow 120% Loan-to Value for the Hilltop (Census Tracts, 612, 613, 614, and 617) and the Eastside (Census Tracts 620, 621, 622, 623, and 633) areas.

Procedure:

The borrower is pre-qualified by a Bank/lender of their choice.

The borrower selects a home consistent with the pre-qualified loan amount and enters into an “Earnest Money Agreement” or “Purchase and Sales Agreement, subject to accepted financing, with the seller.

The lender processes the loan and prepares a “Good Faith Estimate”, showing the amount the borrowers are required to bring to closing.

The lender or realtor then provides the City of Tacoma, Housing Loan Specialist with copies of the following information:

Original cover letter (on Lender’s letterhead) requesting funds. See attached sample.
Underwriter’s preliminary approval.
Good Faith Estimate.
Earnest Money Agreement or Purchase and Sales Agreement
Loan Application with borrower(s) current information.
Credit Report and letter of explanation on any derogatory ratings.
Title report.
Verification of Employment and/or income. Alternate documents are acceptable; tax returns are not required.
Appraisal (include at least first two pages, comment pages and photos.
Certificate of completion of homebuyer’s class.

City staff will inspect the property to ensure it complies with Housing Quality Standards (only necessary if HOME funds are the funding source). If the home was build prior to 1978, a visual inspection will be made for lead paint hazards. Peeling, chipped, chalking or cracked paint will require repair and re-inspection of the property.

The complete package will be reviewed and a recommendation will be submitted to the Housing Supervisor and then to the TCRA (Tacoma Community Redevelopment Authority) Administrator for approval. Upon final approval, a letter of commitment is forwarded to the lender and borrower. Commitment can be given subject to receipt of the appraisal, title report and the certification of completion of the homebuyer’s class, if these items are pending.

Prior to a check being issued, a copy of the insurance binder listing the ‘Tacoma Community Redevelopment Authority” as a loss payee must be presented. This can be faxed or brought to our office at 747 Market Street Tacoma, WA 98402 Suite 1036.

After all the conditions are met and the closing date is confirmed, TCRA will prepare the loan documents for the Down Payment Assistance (DPA) Loan and forward those, with the closing funds, to the escrow office for a simultaneous closing. Please note that five (5) business days are necessary between the time the completed package is approved and the date of closing, in order to assure funds are available. Checks are written on Tuesday and Thursday only.

Loan Terms:

Depending on the source of funds, the assistance may be in the form of a 20 year deferred, 0% interest loan; or may be a five-year deferred loan with no payments, then have small monthly payments of approximately $50 per month beginning in the sixth year of the loan with a balloon payment for any remaining balance in the 20th year.

If deferred, the deferment will be in effect until the sale, refinance, transfer, failure of borrower to occupy as principal place of residence, or non-compliance with the loan agreement. Sale or transfer includes actual or attempted sale by contract, assignment, lease, rental or other conveyance of the property to a person other than the borrower, whether by gift or value. This also includes any further voluntary or involuntary encumbrance of the property by the borrower, except an encumbrance by a government agency in the form of an assessment for streets, sidewalks, lighting or sewer, so long as the borrower pays such assessments when due. A surviving borrower, upon the death of another co-borrower, can assume the loan.

Misc. costs and restrictions:

Depending on the source of funds, the borrower’s minimum down payment contribution may be $500.00.
Interest rate cap of no more than 3% over current FHA rates (at par).
Fees from the Good Faith Estimate payable in connection with loan; i.e. lender/broker fees, processing fees, administrative fees and underwriting fees, combined cannot exceed 3% of purchase price. Normal Loan costs are not included in this 3% max.
The interest rate must be fixed for the 2 years of the loan. This excludes ‘Interest Only’, ‘6 Month Libor’ and 1 Year ARMs for DPA consideration.

City staff will conduct random inspections of the property. Should the property fail to meet minimum standards, a notice of failure to comply will be issued providing 30 days for correction. A second failure to comply will result in the outstanding balance of the loan being declared in default and immediately due and payable.

The loan is secured with a Promissory Note and Deed of Trust placed in second position that will be signed with the primary lender’s loan closing. A third lien position is allowed for the Housing Authority Section 8 homebuyer plans only. This includes purchase plans for persons with disabilities.

For more information, Contact Me.

Best Regards,

NAR Chief Economist Expects Stimulus Package Will Spur Up to 900,000 Home Sales in 2009

Posted: Friday, April 3, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

NWREporter April 2009

Prefacing his comments with the caveat that forecasting in the current economic environment is extremely difficult, Lawrence Yun, chief economist of the National Association of REALTORS®, told King County brokers he believes components of President Barack Obama's stimulus package will prompt hundreds of thousands of home sales.

Home prices have fallen to levels that are "fundamentally justifiable," Yun stated. In fact, he remarked, any further drops could be an overcorrection. He forecasts price stabilization by the end of the year and a 10 percent to 20 percent increase in sales of existing homes nationwide as the impact of the housing stimulus package kicks in.

The shaky job market and buyer hesitancy are restraining activity, Yun suggested. "Incentives are out there," he emphasized, adding, "Momentum is rising. What's missing is consumer confidence." He characterized the economy as being in a "great recession" or possibly a "mild depression" because "consumers have completely given up."

Yun predicts the $8,000 first-time home buyer tax credit for homes purchased before Dec. 1 will generate up to 300,000 additional buyers. Higher jumbo loan limits could prompt an additional 600,000 sales.

Yun, who also serves as NAR's senior vice president of research, was the featured speaker at a Feb. 27 Broker Summit presented by the Seattle-King County Association of REALTORS®. Noting he is grateful for some housing market component in the stimulus plan but "wished it had more," the economist acknowledged not every element of NAR's housing agenda was included at desired levels. The American Recovery and Reinvestment Act of 2009, signed by President Obama on Feb. 17, includes ten housing-related provisions in the $780 billion package.

In response to a question, Yun denounced a proposal in the Obama budget that would reduce the mortgage interest deduction (MID) for thousands of families, resulting in unintended fallout. Yun said NAR's analysis shows a change could depress home prices and values for the nation's 75 million homeowners, not just the 2 percent with incomes of $250,000-plus who are targeted. Among the negative consequences, cutting the MID will hamper the economic recovery, raise foreclosures and hurt the ability banks to lend, according to NAR.

Yun told Seattle-King County brokers he expects to see some recovery in the housing sector the latter part of the year, but whether it will be sustainable going into 2010 is uncertain due to the huge deficit and expectation of another 1.5 million job cuts over the next six months. The unprecedented nationwide housing downfall and the economy's multiple moving parts make short-term forecasting even more challenging, Yun noted.

On a positive note, Yun said the Housing Affordability Index is at its highest-ever level, thanks in part to declining home values and historic low interest rates. Stricter underwriting standards, "frozen" jumbo loans (a big factor in the high-cost markets such as the Puget Sound area), and shaky consumer confidence are impeding sales activity, Yun believes.

To illustrate that "things were out of whack," and needing correction Yun showed charts that depicted wide gaps between home prices from 1998-2006 at the height of the boom, when compared to income, the cost of construction and rent.

Yun also spoke of the correlation (or lack or correlation) between jobs, the recession, interest rates and home sales. In the 2000 recession, "we lost jobs yet had rising home sales because of falling interest rates." Interest rates make the difference, he said.

In another example, Yun compared the monthly payment for a median income household buying a median priced home in 2008 with a decade earlier. In 1998, 30-year fixed mortgage rates were around 7 percent with a 1 percent fee. In 2008, rates had dropped to around 6 percent with a 0.5 percent fee. Considering only rates (and not fees), the monthly mortgage payment as a percentage of income was about the same (19 percent) in both 2008 and 1998.

Using California as a barometer, Yun said momentum is rising "much faster than I ever anticipated." In Orange County, where prices are considerably higher than Seattle, activity had been stalled, but began turning around over the past six months. He attributes the shift to a combination of pent-up demand and psychological factors. Some who have been sitting on the fence don't want to be the last ones left sitting," he observed.

Yun also cited a return of multiple offers in some California markets. That suggests prices may be bottoming or have bottomed out," he stated. Whether what's happening in California will be replicated here is uncertain, Yun said, but noted when California recovers it typically benefits neighboring states. California is experiencing out-migration whereas Washington has a positive inflow of relocating families, many from California. Homeowners who move here from California tend to find Puget Sound area prices attractive and much more affordable.

In other comments during his presentation to more than 150 brokers, Yun asked rhetorically if there would be a refueling of the bubble. He was emphatic in saying no because of recently imposed checks and balances. One area of concern, according to Yun, is the sharp drop in single family housing starts in the Seattle area. Noting they're even lower than 1984 (the previous low mark), he said it could lead to shortages in the future, depending on the pace of the turnaround and builders' ability to ramp up production.

Among other remarks, Yun encouraged brokers to contact past clients, including those who are under water, to make sure they are aware of new and emerging foreclosure mitigation plans. He also hopes the Feds won't hint at future rate cuts since that causes activity to stall among "wait and see" consumers.

Yun suggested reporters need to correct how they report new home sales. Reports of declining sales should be accompanied by an explanation that it's because builders are scaling back production, a needed correction in the current high inventory situation.
Even though unemployment rates are approaching 10 percent in some markets, Yun reminded his audience that means more than 90 percent of the work force has jobs. Even if 20 percent have job anxiety, that still leaves 70 percent with stable jobs – "and they respond to incentives." He favors higher limits on jumbo loans. "Why punish successful people," he wondered.

In a final forecast, he was upbeat about Seattle. "Ten years from now it will be one of the best performing areas nationally because there are so many smart people in the area."Best Regards!

Nationwide home prices rose for the first time in a year according to the FHFA.

Posted: Thursday, April 2, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

U.S. home prices rose 1.7% in January compared with December, the Federal Housing Finance Agency reported Tuesday. It was the first monhtly increase in a year. The unexpected rise in January was partially due to stronger sales in isolated markets. The agency warned that its estimate was uncertain and subject to large revisions. Several consecutive months of improved prices will be necessary before we can call this a true turnaround.

David J Edwards
Real Estate Agent & REALTOR
The David J Edwards Team
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
Website: http://www.davidjedwards.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF
View This Week's Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

Getting back to the historical rate of home ownershp is the key to a housing rebound.

Posted: Wednesday, April 1, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

The historical rate of households owning homes is 68%. During the housing boom of 2003 through 2006, that number increased to 75%. The increase in home ownership had a lot to do with the expansion of credit available; specifically, bad credit risks that are now in the throes of foreclosures and short sales. According to the Mortgage Bankers Association, the delinquency rate (beginning with payments at least 30 days late) for all loans is 7.88%, the foreclosure rate is 3.30%. It would not be surprising if that figure returns to the historical average of 68%.

Therefore, we need to absorb the homes owned by the folks who should not have qualified for a loan in the first place and are now exiting the ownership market and seeing their homes being conveyed as short sales, foreclosures or REO/bank owned listings. This is a tragic situation for each owner facing foreclosure of course.

We're two years into this difficult process and the good news is our housing market is going to recover and it will do so sooner as opposed to later.

If you would like a list of short sale listings or bank owned properties, please feel free to give me a call or send me an e-mail.

David J Edwards
Real Estate Agent & REALTOR
The David J Edwards Team
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
Website: http://www.davidjedwards.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF
View This Week's Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

There's room for cautious optimism on the economy.

Posted: Tuesday, March 31, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Last Friday's news showed that consumers are being understandably cautious with their finances, as the Personal Savings rate remained above 4% once again in February and among the highest savings levels seen in a decade. The last five years can be seen in the chart. And notice it wasn't that long ago that the US had a negative savings rate - that's right, as a nation, we regularly spent more than we made.

There's room for cautious optimism on the economy, as good news was noted on several fronts last week. The housing market received good news when both Existing Home Sales and New Home Sales came in stronger than expected. Additionally, Durable Goods Orders for February came in better than expected, showing the first increase in six months, and the Core Personal Consumption Expenditure Index (Core PCE) showed inflation is presently at tolerable levels. Plus, the US Dollar received a boost when China said it will continue to purchase US Treasuries.

David J Edwards
Real Estate Agent & REALTOR
The David J Edwards Team
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
Website: http://www.davidjedwards.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF
View This Week's Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

What Happened this Week in Stocks & Housing

Posted: Friday, March 27, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Stocks have been trading higher after Treasury Secretary Geithner unveiled a plan to remove toxic assets from financial institutions using money from the $700 Billion TARP fund. The government will mitigate the risk by offering private investors billions of dollars in low-interest loans to finance the purchases.

On Monday, the housing market received good news when the Existing Home Sales came in stronger than expected. And, the US Dollar received a boost when China said it will continue to purchase US Treasuries, despite saying last week they were concerned about the value of those Treasuries.

Rates
Conventional 30 year fixed @ 4.875%
Conventional 15 year fixed @ 4.50@
FHA/VA 30 year fixed @ 5.00%
FHA/VA 15 year fixed @ 5.375%
Dow Jones - DJIA @ 7600 up 322points

David J Edwards
Real Estate Agent & REALTOR
The David J Edwards Team
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
Website: http://www.davidjedwards.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF
View This Week's Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

What the surge in housing starts means to the real estate market.

Posted: Wednesday, March 25, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Housing starts unexpectedly surged in February. Work began on an annual rate of 583,000 homes, a 22% increase from January, posting the biggest jump since 1990. The rebound suggests builders cut production too deeply as the credit crunch intensified at the end of 2008, and they may have to make up for some lost time.

Of course, any sustained recovery in the homebuilding market will be contingent on a recovery in the financial markets. The good news here is that a recovery in the financial markets appears to be under way. Stocks continued to rally last week, though not as much as credit markets. Indeed, 30-year fixed-rate home loans slid by as much as 3/8 of a percentage point to around 5%, nearing record lows. Until recently, 30-year fixed-rate mortgages hadn't been below 5% since the 1950s.

The latest rally in mortgage rates was spurred by the Federal Reserve's ongoing efforts to stimulate borrowing. In its latest go-around, the Fed said it would add $750 billion to the till to raise its total purchases of Fannie Mae, Freddie Mac, and Ginnie Mae mortgage bonds to $1.25 trillion by year's end. The Fed also said it will double its potential note purchases from Fannie, Freddie, and the Federal Home Loan Bank System to $200 billion and absorb as much as $300 billion in Treasury securities, which will add at least as much liquidity to the economy.

View This Week's Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

Refinancing Your Home Even if the Value is Less Than the Current Mortgage

Posted: Tuesday, March 24, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Reasons to Do So:
-Interest rates on mortgage loans have recently declined to levels not seen since the "refi-boom" of 2002-03.
-All the really bad loan programs are gone.
-What remains are loans that use common-sense guidelines and require that the borrower can afford to make the payments.

Key Points for the Fannie Mae Refinance Plus Streamline Loan:
-Owner occupied, second homes and investor properties are eligible
-Liquid assets must cover the funds needed to close
-No limit on multiple mortgage to one borrower for all occupancy types
-Existing mortgage must be current
-LTV 80%+580 minimum credit score - New credit report required
-Income documentation is required
-Salary/Bonus/Overtime: one current paystub and a verbal Verification of Employment
-If Commissioned or Self Employed: one year tax returns
-Maximum LTV is 105%. Subordinate financing may not be paid off but must be resubordinated. No new subordinate financing is allowed.
-If the underlying loan does not have mortgage insurance, no mortgage insurance is required on the new loan, regardless of the LTV!
-If the underlying loan has mortgage insurance, the existing MI Company must modify the MI certificate transferring the coverage from the existing loan to the new loan. The coverage on the new loan must be at the same level as the existing loan, regardless of the new LTV.

Below are two links you can use to see if your mortgage is owned by Fannie Mae or Freddie Mac. Remember, you maybe eligible for a Home Affordable Refinance that will go up to 105% Loan to value. Only loans owned or guaranteed by Fannie Mae or Freddie Mac are eligible. Your mortgage company can tell you who owns your loan also.

Fannie Mae
1-800-7FANNIE (8am to 8pm EST)
http://loanlookup.fanniemae.com/loanlookup

Freddie Mac
1-800-FREDDIE (8am - 8PM EST)
https://www.freddiemac.com/corporate

David J Edwards
Real Estate Agent & REALTOR
The David J Edwards Team
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
Website: http://www.davidjedwards.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF
View This Week's Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

David Edwards

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