*296  went pending in the month of November

Thanksgiving was here and gone, and I have much to be thankful for! Wow, what a early blast of winter too.

The real estate market followed the historical trends with all the numbers decreasing as holiday season is in full swing.  Two numbers that did increase in November are the percentage of pendings and solds that are "distressed" properties. The percentage jumped from 36% last month up to 43% this month, which is a good sign!

Here is an interesting stastic I came across in my everyday market watch: year-to-date, we have higher unemployment rates than 2009; however, year-to-date Snohomish County has sold more residential homes than in 2009. So, we have lost more jobs than last year, but sold more homes. My conclusion? The $8,000 tax credit.

Merry Christmas and Happy New Years to all and I'll keep the updates coming as we enter into 2011.

Current interest rates are hovering  around 4.40%, make homes as affordable as the early 80's!

This is the feedback from a buyer I was helped by recreational property of the Mountain Loop Highway in Granite Falls.

How would you describe the service you received?

"Josh was excellent. He was very helpful and patient"

How did you learn about Josh?

Internet

Other comments-

"Josh was good about taking the time to help address the issues with the property which allowed me to make an informed decision with no pressure. Overall it was a good experience. Thank you!

Here is what the seller of a Marysville home said about my services-

How would you describe the services you received?

"Josh was very helpful from beginning to end. We would definately recommend his services. Thank you. He is an asset to your company, very professional and personable.

How did you learn about Josh?

Referred by friends

Other Comments-

"Josh helped us sell our home in a challenging economy"

*352  went pending in the month of October

It is already November! The holidays are just around the corner, and big elections tomorrow. Wow, how the year goes by!

The number of active listings continues to drop, while pendings are up and solds are down in a striking contrast to last year's 669 homes sold in October!

Distressed homes are still over 30% of our market, and I have been seeing this percentage stay strong at 33-36% for active, pending, and sold homes. This compared to October 2009 where we were only at 25%.

There are still great deals to be had and affordability (wages, interest rates, and cost of homes) has never been this low since the early 1980's. This is the perfect market to invest in real estate for the long term!!

Current interest rates are hovering  around 4.25% with all indications leading to a rate increase in the future, more than likely after the November elections!

*339  went pending in the month of September

Just as I predicted in last months update- we had a surge in homes sold in the month of September with a decrease in homes pending sale. Why? This happens every year in real estate due to summer vacations ending and school starting.

The percentage of real estate that is "distressed" (short sale/bank owned) had no significant change.

What about home values? My first hand experience with current listings and performing market analysis for potential listings still shows a steady decline in values. I've also had conservations with appraisers and other agents who are confirming my observations. Purchase and sales are coming in lower than asking price (tomorrow's comparables), current listings are continuing to drop their prices to be competitive, and we are still seeing many "distressed" homes coming on the market. The good news is that home affordability is at all time lows with 3 years of prices falling and historicaly low interest rates! This is a great time to buy!

Current interest rates are hovering  around 4.15% with all indications leading to a rate increase in the future, more than likely after the November elections!

*334 went pending in the month of July

For many of us school has started or will start very shortly and the summer is coming to an end. As for the real estate market, there was not much change in the month of August compared to July, but I have experienced an increase in buyer activity, so I expect the numbers to change for September. We are still running around 35% of all sold, active, and pending listings being either short sales or bank owned. What makes this market appealing is it's affordability; with prices down and interest rates at all-time lows, home ownership is very affordable. I just came across two different buyers that have chosen to buy in leau of renting because there mortgage payment was going to be lower tham their rent payment!!!

Here is a comparison of 2009 sold properties in August to 2010 sold properties in August-

2009-   635 sold properties with only 22% being short sales or bank owned.

2010-   431 sold properties with 34% being short sales or bank owned.

Current interest rates are hovering  around 4.35% with all indications leading to a rate increase in the future, more than likely after the November elections!

 Looking for a quality well maintained rambler on a large lot that is not a short sale or bank owned? Then this is the rambler for you! Your new home features 3 large bedrooms, master bath, full bath, open bright kitchen, sunken living room, and dining room. You will appreciate the new laminate flooring, tile flooring, skylight, pellet insert and new windows and roof in 2008. This quality home is located on a cul-de-sac that features RV/Boat parking, private fully fenced backyard and large deck. Call me with questions or to set up a time for your own private showing!

Last Tuesday, the government held a "Future of Housing Finance" conference to discuss changes needed in this area. Most participants agreed that government assistance for housing must be reduced but not eliminated. Bill Gross, from PIMCO and one of the panelists, called for a massive refinancing of certain mortgages backed by Fannie/Freddie/FHA, believing such a move would lift home prices 5% to 10% and provide a $50 Billion stimulus to the economy. I will be watching this situation closely for further developments.

Home sales and the job market - two key aspects to our continued recovery - are also areas we need to see change in an improving direction. Last week, the NAHB Housing Market Index came in a bit worse than expectations and showed housing to be at a 17-month low. It can be argued that the tax credits actually hurt the housing market by not adding any sales, just pushing them up. This has now resulted in a void or softer period in the market, potentially wasting billions of dollars. Housing Starts and Building Permits were also reported lower than expected last week. Clearly, demand for housing has slowed over the past few months, due to the expiration of the Home Buyer Tax Credit and persistently high unemployment.

Speaking of unemployment, awful is the only way to describe last week’s Initial Jobless Claims report. According to the report, 500,000 people filed to receive unemployment benefits for the first time, which was well higher than the lofty 475,000 expected and the highest reading since November 2009. In addition, between Continuing Claims and people receiving Emergency Unemployment Compensation or EUC, the combined total of people receiving unemployment benefits now equals 9.25 Million people.

The bottom line is this: The labor market is the foundation of our economy. Job growth and confidence is the best and most sustainable way for our economy to recover. The present anti-business regulatory environment is pushing Initial Claims, a leading indicator on the health of the labor market, in the wrong direction.

But home loan rates, meanwhile, continue to remain at historic low levels. Though keep in mind, inflation is the arch enemy of Bonds and home loan rates, which means it can cause both to worsen. Both the Producer Price Index (which measures inflation at the wholesale level) and the Consumer Price Index were recently reported hotter than expected. If rates do start to rise, they will likely do so quickly.

This information is courtesy of Ken Allen from MetLife. You can reach Ken at 425-670-2418 or at krallen@metlife.com or www.KenAllen.com.

If you have been wondering when or how the real estate market will change? Here is great article posted by the Seattle Times today that will give you good insight.

http://seattletimes.nwsource.com/html/businesstechnology/2012664543_apuseconomy.html

My opinion as I have stated in the past and will continue is to watch the job market!!!  Good news is that if you are in the market to refinance or buy a home interest rates are very low.