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.”

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.

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!

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

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

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

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

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.

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

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

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.

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

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

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.

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.

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.

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,

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.

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!

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.

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.

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.