I came across this article in the Real Estate Digest  (complements of Chicago Title) and found it to be very informative. Here what the article says...Why are certain metropolitan areas able to double and even triple the national population growth rate? After examining the Top 10 Growing Markets in the U.S., NuWire, a market research firm, discovered that each market owed its growth to  a different and unique combination of economic factors, but there were similarities common to all.

Job growth was a key factor underlying the population growth of the Top 10 Growing Markets. Retiree and pre-retiree populations made up a significant portion of the growth in most of the markets, while young adults and children were also a substantial part of the growth in some of the markets.

Real estate in the Southwest is booming, with growth in almost every age group. A temperate climate, recreational and entertainment opportunities and an affordable cost of living and housing were advantages common to many of the Top 10 Growing Markets. Some areas experienced more growth in suburbs than in urban centers.

The Top 10 Growing Markets were selected based on the U.S. Census Bureau's population growth statistics for Metropolitian Statistical Areas with populations of at least one million people. The market ranked in order of percentage growth during the period from 2000 to 2006.

The Top 10 Growing Markets were:

1. Las Vegas, Nevada
2. Phoenix, Arizona
3. Riverside, California
4. Alanta, Georgia
5. Orlando, Florida
6. Austin, Texas
7. Charlotte, North Carolina
8. Houston, Texas
9. Dallas, Texas
10. Sacramento, California

My take on this article was that the Seattle area might not have the climate but we do have the job growth. Our local population growth might not have been in the top 10 but our real estate market sure didn't get hit like of the above mentioned area's. Maybe population growth at that rate isn't really a good thing for real estate? What is your take?

I received an article from the Real Estate Digest courtesy of Chicago Title and I wanted to pass this information on to you.  Here is what the article said about subprime- quote " Although subprime has become a dirty word in the country's collective lexicon, mortgage bankers say you can count on this: subprime shall return.

But the next generation of subprime mortgages will look much different than the loans issued during the height of the housing boom in the first half of the decade, mortgage professionals say.  "So long as we have a policy position in this country of maintaining or further increasing homeownership rates there is going to be subprime lending," said Mark Fleming, chief economist with First American CoreLogic.

As such, subprime mortgage products are slowly being redefined, he said. "There has been a shift back to basics across the entire mortgage lending spectrum, using more reasonable assessments of what buyers can afford," Fleming said.  People now need better credit scores and a larger down payment to get a mortgage, in addition to documenting their incomes and providing where they work, he pointed out.

The more stringent guidelines are important for another reason; for subprime products to come back to the market with any significance, it's necessary to first build up the confidence of those who invest in them, Fleming said. How will the confidence be fully regained? For one: "We have to do a better job of making sure a high percentage of the loans aren't headed for default to begin with," Fleming said.

In the mortgage industry, expect to see a return in focus to the writing of quality loans- not just doing a large quantity of them, Fleming said. And perhaps part of the lender's mission should also be helping subprime borrowers graduate into prime loans, he added." end quote.

I believe as the mortgage industry changes we will start to see a increase in the real estate market and it is starting to happen already!

On July 22, 2007 there was a new law that went into place that required a contractors license to sell a home with in 12 monts of purchasing it. Fortunately, the Department of Labor and Industry has not completed the regulations to enforce it but these regulations should complete in 2008. As it stands right now you need to be a licensed contractor to sell your home with in 12 months of purchasing it. These means buying land and building on it and then selling with in 12 months. This means buying a home fixing it up and selling it with in 12 months.  I believe the new regulations will explain this law in greater detail but as for now we need to read it literally. The intent of this new law is to stop investors from buying a home doing repairs to the home that are sub-standard and then selling it without the buyer having any recourse on the one who performed the work. Now a buyer can use a failure to register as leverage in any claim or dispute. The consequences as it stands right now is a gross misdemeanor and punashable up to a year in county jail and a fine of $5,000. Each property is a seperate offense. So, if this describes you I suggest consulting a real estate attorney on what do as a "flipper" and as a buyer. This blog is not intended to be used as legal advice but make the public aware!

Snohomish County Stat Comparison	December	November	October	September
Residential Home Sales	441	445	544	586
Residential Home Pending Sales	743*	868	997	1,120
Active Residential Listings	4,239	5,021	5,404	5,489

*299 went pending in the month of December.

As expected, the real estate market slowed down over the holiday season. The question is what will happen in January? We are still experiencing a market characterized by low interest rates, a great economy, job growth, stabiling home prices. That said, we should start to experience an increase in activity both from the buyer and the seller side. I look for January to follow the latest trends but see the real estate market picking up in the spring. It is still a great time buy or move up to a larger home!

For a breakdown of December’s sales by price go to SalesBreakdownbyMonth.xls

Interest rates are still hovering around 6% with no points.

Are you looking for an affordable rambler? Then look no further! You have found your 4 bedroom rambler with 1224 square feet. This quality built rambler floor plan includes an open bright kitchen adjacent to the dining room with French doors that lead to the private backyard, 3 bedrooms with a full bath located on the East end of the house with your master bedroom with private bath and walk-in closet located on the West end. Your lot is partially fenced, fully landscaped and on a corner for added privacy and ample room for extra parking. This is a great value at a good price.

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How would you describe the services you received?

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Other comments.

"Josh is awesome!!"

Snohomish County Stat Comparison	November	October	September	August
Residential Home Sales	445	544	586	833
Residential Home Pending Sales	868*	997	1,120	1,131
Active Residential Listings	5,021	5,404	5,489	5,473

*402 went pending in the month of November.

As we enter into the holiday season, Snohomish County has 12 months of residential inventory available, which means that we are still experiencing a very strong buyers market. I’m starting to see an increase in showings of my listings, and more calls are coming in inquiring about purchasing a home. This is still a great time to buy a home, either owner occupied or as an investment!

Interest rates have risen to 6.125% for a 30-year fixed with no points.

DING-DING-DING!! When the bell sounded at the end of the trading day on Friday, traders trudged off the scenes like defeated boxers at the end of a grueling match. Stocks got pummeled last week with a 600-point decline on the Dow, during a week that was full of subprime home loan related headlines. Write-downs of the value of these holdings spooked the financial sector, which led the Stock market on its slide lower.

Normally, Mortgage Bonds and home loan rates find improvement when money is flowing out of Stocks - that money being pulled out needs somewhere to sit, and Bonds are generally the glad recipient. And while some Bonds did enjoy a great week - like Treasury Bonds - Mortgage Bonds actually worsened because of their relation to the issue at hand, fears of the credit quality of these Bonds, and home loan rates worsened slightly as well. And if the Stock market had not sold off so hard, sending money into all types of Bonds, Mortgage Bonds and home loan rates would certainly have been much worse off.

For this weeks forecast click here.

"Time is on my side...yes it is" - Rolling Stones. Mortgage prices were jostled and bounced around throughout a wild week of economic news and Fed moves. But in the end, time was on the side of those who were patient, as pricing finished the week right about where it began, leaving fixed home loan rates unchanged.

Last week's highlights included a quarter point Fed rate cut, which brings the Fed Funds Rate down to 4.5%. The Prime Rate now stands at 7.5%, which is good news for home equity lines, consumer and business loans. Additionally, those who have adjustable type loans should see some benefit. But because a Fed cut can stimulate the economy and bring some inflation, fixed home loans tend to worsen a bit after the Fed cuts rates.

The latest read on Inflation was right in-line with the Fed's target. A 1.8% annual Core Inflation rate was reported, which is within the 1%-2% Fed comfort zone - good news for bonds.

Help wanted! Well at least it was for 166,000 Americans during October. This was the best report since May and twice the forecasted amount. The Report showed the rate of unemployment at a very respectable 4.7%. This type of strong report often leads to trouble for bonds, but a look deeper into the numbers showed the Hourly Earnings figure to be less inflationary than expected. The markets are concerned about wage based inflation, but Average Hourly Earnings increased by just 3 cents to $17.58 per hour.

For this week forecast click here!

Snohomish County Stat Comparison	October	September	August	July
Residential Home Sales	544	586	833	794
Residential Homes Pending Sale	997*	1,120	1,131	1,593
Active Residential Listings	5,404	5,489	5,473	5,051

*415 went pending in the month of October.

Attention buyers…this is the market you have been waiting for! More homes to choose from, interest rates dropping, less competition and motivated sellers letting their homes go for less than asking price. We are in a market where the buyer is in the driver’s seat, so if you’re even thinking about investing in real estate, now is the time. Even if you need to sell your home in order to make that  “move-up”, now is the time!

PS...read my a blog on the subject of move-ups at http://www.joshuakoffler.com/archives/257-Buying-Up-in-Todays-Market.html

Interest rates have risen to 6.125% for a 30-year fixed with no points.