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Monday, August 16. 2010
| For the week of August 16, 2010 – Vol. 8, Issue 33 | >> Market Update INFO THAT HITS US WHERE WE LIVE Last Wednesday the National Association of Realtors reported the median price of existing single-family homes UP for Q2 in two thirds of U.S. metropolitan areas, or100 markets. This compares with only 26 markets with price gains in the same quarter a year ago. Experts say these figures show the federal tax credits helped stabilize home prices in the first half of the year. Nationally, the median price for single-family homes increased to $176,900 in Q2, UP 1.5% from a year ago.
The NAR also reported sales of existing single-family homes and condos for Q2 were UP 9.1% over Q1, hitting an annual rate of 5.61 million. That number is UP 17.3% from Q2 a year ago. With the tax credit gone, the NAR is forecasting a Q3 sales drop to a 4.55 million annual rate. But they do see sales coming back in the last three months of the year, to a 5.27 million unit annual rate. The NAR's chief economist added: "Prices in some areas remain below replacement construction costs, so even with an elevated supply of existing homes...we don't expect any consequential movement in home prices for the foreseeable future."
Freddie Mac's weekly survey showed mortgage rates staying at record low levels for conforming loans. But demand for purchase loans has dropped after the tax credit expiration, according to the Mortgage Bankers Association. >> Review of Last WeekDIPPY... It was a week of "double-dip recession" fears, but when all was said and done, the economic recovery continued, albeit at a slower pace. The only dipping that occurred happened on Wall Street, as investors' worries sent the Dow Industrials down 265 points on Wednesday. By the time the markets closed Friday, all three major indexes had truly dipped -- from 3% to 5% for the week.
That Wednesday dip in the Dow was the delayed reaction to the results of the Fed meeting on Tuesday. The central bank kept the rate down at 0%–0.25%, but their policy statement raised investors' "double-dip" worries. The Fed said the economy isn't as strong as they thought it would be two months ago and they would begin buying Treasury bonds "to support the economic recovery." But in spite of Wall Street's jitters, the real economic data wasn't so bad.
Preliminary Q2 Productivity slipped a tad, but it's UP 3.9% over last year. The trade deficit in June grew more than expected, but exports dropped only slightly and are UP 17.7% for the year, a healthy sign for American companies. July Retail Sales were up less than expected, but when May and June upward revisions were included, the numbers beat expectations, UP 0.7% overall and UP 0.2% excluding autos. And those talking up a global double-dip recession were quieted when Germany's Q2 GDP showed a 2.2% expansion from the previous quarter, that country's fastest growth in two decades.
For the week, the Dow ended down 3.3%, to 10303.15; the S&P 500 was down 3.8%, to 1079.25; and the Nasdaq was off 5.0%, to 2173.48.
With investors seeking safety, the bond market benefited, with a big focus on Treasuries after the Fed's comments on Tuesday. The FNMA 30-year 4.0% bond we watch ended essentially flat for the week, down a scant 6 basis points, closing at $102.69. As noted above, national average mortgage rates remained in historically low territory for the eighth week in a row. |
This market update is courtesy of Erica Major at Sterling Savings bank. Direct line is 206-355-8870.
Thursday, August 5. 2010
 Looking for a large level lot with privacy located close in? Then this is the home for you! Your 2880 square foot rambler with a daylight basement includes 3 large bedrooms, master suite, 1.75 baths, 2 fireplaces with pellet inserts, dining room, living room, huge rec room, utility room, open kitchen, 3 car garage with an open pit and 3rd bay suitable for an RV, large wrap around deck, fully fenced 1 acre lot with gated entry, extra parking for your boat/RV or extra vechicles, and so much more! Did I mention the possibility to subdivide?! Call me for further questions or to set up an appointment for you own private showing!!
Monday, August 2. 2010
| Residential Status | July | June | May | April | | Sold | 438 | 702 | 617 | 635 | | Pending | 820* | 818 | 1,096 | 1,201 | | Active | 4,678 | 4,616 | 4,254 | 4,158 |
This information courtesy of the NWMLS. Stats not including condos. *345 went pending in the month of July Are you noticing the yard signs in front of homes for sale lasting longer than usual? It's true, they are. Look at the large drop in sold properties for the month of July!! The $8,000 tax credit rush had something to do with that, but I noticed the pendings did not change much, which leads me to believe we'll have similar stats in August. Let's watch and see next month. When it comes to the distressed properties, there have been no significant changes in the stats. Active homes are still running around 28%, pendings 30%, and solds 30%. Once again, we need this to change in order to start seeing a more "normal" market.
But not to fret, the drop in numbers is one the real estate market has seen in the past and will likely continue to see every summer. Historically, July tends to be one of the three slowest months in real estate sales, with the market typically picking up in August and September. Expect to see the same this year!!
Current interest rates are hovering around 4.60% with all indications leading to a rate increase in the near future. Thank you for not keeping me a secret!!
Wednesday, July 28. 2010
 Attractive single story condominium located in the Sequoyah complex with views of the swimming pool in Edmonds. This 1 bedroom, 1 bath, 733 sqft. condo has been fully remodeled in 2007 with granite counter tops, tile backsplash, hardwood flooring, trim/door package, and much more. Washer and dryer are in the unit, private covered parking, and your own private storage space are all included. The Sequoyah offers an outdoor pool, club house, elevators, private lobby entrance, and exercise room. Call Joshua Koffler for more information or to schedule your own private showing!!
 Two homes with a cumulative square footage of 1736 that includes 3 bdrms, 2.5 baths located on private 8.4 acre lot with a large detached carport. First unit- 1 bdrm, 1 full bath rambler that boast 896 square feet built in 1995 with a dining room, living room, open kitchen, and utility room. Second is a 1972 single wide manufactured home with 840sqft, 2 bdrms, 1.5 baths. Your lot features mountain views, gated driveway, 3+ acres of lawn/open space, creek frontage, Whitehorse trail, and more. For more information or to schedule your own private showing call Joshua Koffler at 425-876-8112!
Friday, July 9. 2010
How will a short sale affect my credit? How will a short sale affect my ability to buy another home? These are common questions with seller's these days and here are some answers- Currently with conventional financing you will have a waiting periods- 2 years is allowed with 80% loan to value ratios. 4 years is allowed with 90% loan to value ratios. 7 years is allowed with Ratios per the Eligibility Matrix. For more information or questions on the affect of a short sale call- Earl Schmidt- 425-330-9021 or email Earl at earls@networkhomeloans.com
Monday, July 5. 2010
 Recreational property with over 90' feet of waterfront bordering Canyon Creek in Granite Falls. Your lot is level and lightly treed. Power in the street, paved access, buyer to verify all information and determine if buildable.
Friday, July 2. 2010
| Residential Status | June | May | April | March | | Sold | 702 | 617 | 635 | 572 | | Pending | 818* | 1,096 | 1,201 | 1,100 | | Active | 4,616 | 4,254 | 4,158 | 4,220 |
This information is courtesy of the NWMLS. This does not include condos.*300 went pending in the month of June As predicted from previous updates we did see a increase in solds for June due to the tax credit original deadline (which has now been extended to September 30th) and a large drop in pending's. Why a large drop in pending's? We used tomorrow's buyers yesterday! There were no significant changes in the percentage of "distressed" properties. Distressed properties still account for over 25% of the sold, pendings and active listings. Vacant land - currently in Snohomish County we have 947 active vacant land listings. From January 1-June 30, 2010, the NWMLS recorded only 84 vacant land listings sold. Current interest rates are hovering around 5.15% with all indications leading to a rate increase in the near future.
Thursday, July 1. 2010
From CMLA: After a close brush with the deadline, Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623). The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The legislation is designed to create a seamless extension the new closing deadline for eligible transactions is now September 30, 2010. There is will be no gap between June 30 and the date the President signs the bill into law. CML America worked closely with Congressional leaders on both sides of the aisle to enact this important legislation. Extending the Tax Credit Closing deadline will help provide additional stability to the housing market across the nation. Additionally, the United States Senate has passed the National Flood Insurance Program Extension Act of 2010 (H.R. 5569) an extension of the National Flood Insurance Program until September 30, 2010. This will allow transactions to move forward. The bill is retroactive and covers the lapse period from June 1, 2010 to the date of enactment of the extension.
Wednesday, June 30. 2010
Predatory lending is going to be a thing of the past if the proposed guideline changes are put into practice. Lenders warn these changes will bring costs to get a mortgage way up and will make it far more difficult to get borrowers approved.
The new rules, which Congress is expected to vote on this week, require that financial institutions ensure that borrowers can afford to repay the mortgages they are sold. Lenders would also have to tell borrowers the most they might pay on an adjustable rate mortgage and explain that payments will vary when the interest rate changes.
"These rules should help make sure people aren't put into mortgages they can't afford," said Julia Gordon, senior policy council for the Center for Responsible Lending.
Additionally, the comprehensive reform package would also ban banks from offering incentives to steer borrowers into costlier loans when they could qualify for cheaper ones, a controversial practice that fueled the subprime lending boom.
And it would prohibit prepayment penalties for adjustable rate, subprime and other risky loans and limits them to three years for traditional loans. This would help prevent borrowers from being locked into expensive loans.
More work to get a mortgage
While bankers and consumer advocates differ on the bill's impact on mortgage availability and cost, one thing is for certain: It would take more work to get a home loan.
While the bill doesn't specify downpayment size or creditworthiness, consumers would likely need some savings and a good credit score if they want to land a loan. This shouldn't be seen as a tightening of credit but as a return to prudent lending standards that existed before the recent housing bubble, experts said.
Gone would be the days of no-doc or stated income loans. Mimicking the current lending environment, borrowers would have to fully document their income with pay stubs, tax returns and the like.
This isn't to say that the self-employed or small business owners wouldn't be able to get home loans anymore. They'd just have to provide documentation that they can afford the mortgage.
"It's a little more work for the consumer but when they take out mortgage debt, there's a much higher degree of certainty that it's not disadvantageous to them," said Barry Zigas, director of housing policy for the Consumer Federation of America.
Other exotic loans, such as option adjustable rate mortgages, which allow borrowers to pay what they like but greatly inflates the principal balance, would be harder to come by. Lenders would be likely to stick with the more conservative fixed-rate or certain adjustable-rate loans.
Borrowers, however, would still have to be on their guard and thoroughly read through their paperwork and make sure they understand the terms of the loan, experts said.
Of course, many lenders are already putting these practices into place in the wake of the mortgage meltdown. But these rules are meant to codify them once the housing market picks up again.
"They are just basic, common sense rules of business and of fairness," Gordon said.
Standards: To be determined
If the bill passes, it may be another 18 to 24 months before lenders and consumers fully realize its impact. It will likely take the mortgage industry's proposed regulator, the Consumer Financial Protection Bureau, nine months to come up with the new rules and then more time for the industry to institute them, said John Courson, chief executive officer of the Mortgage Bankers Association.
The regulator also could decide to set standards on downpayment size, credit scores and total debt-to-income levels, Courson said. That would have a big impact on consumers.
Financial institutions warn that increased regulation -- and potentially greater legal liability -- could make it harder and more expensive to obtain a loan.
"The concern is there will be less choice for borrowers," Courson said. This article was from Earl Schmidt at Network Home Loans. Phone-425-252-5757 or earl@networkhomeloans.com. www.networkhomeloans.com Thanks Earl for the insight and keeping us informed!
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