Anya Myer, REALTOR® and local aficionado on buying and selling real estate in the Olympia area
Tuesday, December 20, 2016
Wednesday, December 14, 2016
Mortgage Rates Increase Following Central Bank Meetings
Over the past week, two key central bank meetings were
the primary focus for investors. The outcomes of both the European Central Bank
(ECB) and the U.S. Fed meetings were viewed as unfavorable for bonds. As a
result, mortgage rates ended the week higher.
As it had telegraphed to investors for a long time, the Fed raised the federal funds rate by 25 basis points on Wednesday. Less widely anticipated, Fed officials also raised their projections for the pace of rate hikes in 2017 due to quicker expected progress in achieving the Fed's goals for the labor market and inflation. In addition to raising rates, the Fed has stated that it expects to eventually tighten monetary policy by shrinking its investments in Treasuries and mortgage-backed securities (MBS). The faster the Fed raises rates, the sooner it is expected that the Fed will reduce its holdings of MBS, which is negative for mortgage rates.
Ahead of the meeting on December 8, investors generally expected that the ECB would extend its bond purchase program for another six months at its current pace. The ECB exceeded this in one way by extending the program by nine months, meaning that it will now end in December 2017. In a more important area, however, the ECB disappointed investors. The ECB announced that the monthly purchases will decrease from 80 billion euros to 60 billion euros beginning in April. The reduction in the level of stimulus removed some expected future demand for bonds, causing mortgage rates to rise.
Wednesday's data on retail sales was one of the few recent reports on economic activity, which fell short of expectations. Excluding the volatile auto component, retail sales in November rose just 0.2% from October, well below the consensus for an increase of 0.4%, and the results for October were revised lower as well.
Looking ahead, The Consumer Price Index (CPI), a widely followed monthly inflation report, will come out on Thursday. CPI looks at the price change for goods and services that are sold to consumers. The Housing Starts report will be released on Friday, and Existing Home Sales will come out on December 21. In addition, a meeting of the Bank of Japan on December 20 could influence U.S. mortgage rates.
Information originally provided by:
HomeStreet Bank
The Sanders Young Team
NMLS ID #487525 and #438324
HomeStreet Bank
720 Lilly Road SE
Olympia, WA 98501
360-259-2266 Teri/360-250-3799
Thursday, December 8, 2016
Monday, December 5, 2016
Real estate brokers expect no holiday breather as sales stay strong and supplies remain low
KIRKLAND, Washington (Dec. 5, 2016) – Pending sales of homes hit an
all-time high for the month of November according to the latest statistics from
Northwest Multiple Listing Service. The report covering 23 counties around
Washington state also shows the number of new listings added during the month
plunged to the lowest level in 11 months, prompting MLS leaders to predict a
busy winter for residential real estate as buyers compete for the smallest
inventory since March.
“Last year’s holiday season
ended up being the best time to sell a home around King County as sellers took
the winter months off, but buyers remained persistent. The supply of homes for
sale hit a post-recession low, and so far, this year is mirroring last winter’s
trends,” remarked Northwest MLS director Robert Wasser in Seattle.
Figures for November show a
13.2 percent drop in inventory of single family homes and condominiums, a 9.4
percent gain in pending sales, a 31.3 percent spike in closed sales, and an 11
percent increase in prices compared to the same month a year ago.
At month-end, there was only 1.69
months of supply system-wide, believed to be a new low. For the 4-county Puget
Sound region there is only 1.22 months of supply, with King County having the
lowest level at under a month (0.96).
Pending sales (mutually
accepted offers) totaled 8,217, and eclipsed the number of new listings (5,779)
by 2,438 units. That imbalance depleted total inventory, dropping the number of
active listings to 13,303, down 13.2 percent from a year ago.
“November’s pending sales for the four-county area of King,
Snohomish, Pierce and Kitsap were the highest since 2005. There were 44 percent
more pendings than new listings,” noted J. Lennox, who described market
activity as a mini power surge. “Every time interest rates increase 0.5 percent
we see these surges because buyers become anxious about increasing rates – but
on a historical basis rates are still amazing,” he remarked.
John Deely, vice
chairman of the Northwest MLS board, said the Seattle residential real estate
market is not taking time off for an end-of-year breather. “The seemingly
inexhaustible supply of ready, willing and able buyers continues to purchase
available inventory. This imbalance in supply and demand continues to fuel
multiple offers and drive prices upward,” said Deely in Seattle. Well-paying
jobs in the tech sector are fueling demand, with “the increase in equity and
tick up in interest rates enticing more sellers to the market.”
George Moorhead, another member
of the MLS board, echoed those sentiments. “We have seen the market pick up
significant speed since the mild slowing during the summer months.” He cited
NAR reports that the Puget Sound area is 73,180 units short of demand, calling
it a staggering number.
“Like the last two years we
expect strong sales to continue through December, then taper off in January,
only to pick back up mid-February with another flurry of aggressive buyers,”
Moorhead continued. He also believes an uptick in interest rates will driver
buyers into the market even harder, with inventory likely to plunge even lower.
The median price on last
month’s closed sales of single family homes and condominiums area-wide was
$342,000, up 11 percent from the year-ago figure of $308,000. August was the
only other month this year with year-over-year double-digit appreciation for
prices area-wide.
Thirteen counties in the
Northwest MLS service area reported double-digit price increases last month
compared to 12 months ago. Prices in King, Pierce and Snohomish counties jumped
between 14.4 and 15.3 percent, but the largest spikes were in Okanogan (up 41.4
percent) and Jefferson (up 39.5 percent) counties. Last month’s overall median
price for single family homes and condos that sold was down about 2 percent
from this year’s high of $350,000 for sales that closed in June, July and
August.
Prices for single family homes (excluding condos) rose 10.9
percent from a year ago to $350,500. King County reported the highest median
price for single family homes at $550,000 (up 10 percent year-over-year).
Condo prices reflected more
modest price hikes, perhaps a reflection of depleted inventory (down 18
percent) that is dragging down sales. Pending sales fell nearly 1.9 percent
from a year ago. Last month’s median selling price area-wide was $280,000,
about 5.7 percent higher than a year ago. In King County, which accounted for
more than six of every 10 condo sales, year-over-year prices jumped more than
$30,000 -- from $298,500 to $328,844 (up about 10.2 percent).
“Seattle continues to defy all
forecasts and now has the distinction of being the hottest market with the
fastest-rising prices in the nation,” said Mike Grady, commenting the latest
home price index from S&P Case-Shiller. “We believe the market will
continue to be extremely active through the winter and beyond, although the
Fed’s expected interest rate hike may affect this somewhat and provide some
relief to buyers.”
Even with the much-anticipated
increase in interest rates, Grady said he does not expect much leveling off of
home prices or activity. Expectations of an easing of mortgage underwriting
stringencies by the new Administration will result in additional buyers
entering the market, which Grady believes “will add fuel to the fire. We
anticipate being very busy through 2017.”
Other brokers agreed.
“Overall, the market continues to be frenzy hot on a
seasonality basis, as we’re seeing the same positive momentum in the Puget
Sound real estate market as last year,” stated Scott, adding, “We’ll be
entering 2017 with an extremely severe inventory shortage that is going to lead
us into a huge price appreciation boost after the first of the year.”
“Looking ahead to 2017, the Seattle market will continue to
perform well, even with the expected interest rate increase,” stated OB Jacobi.
“The regional economy is in full stride and this will continue to create
increased demand for housing across the board,” he added. He also said he
expects price growth to cool somewhat as inventory levels rise modestly, but he
believes “2017 should be another banner year for the housing market.”
“This market engenders
confidence and high expectations by sellers as they continue to command center
stage,” remarked Dick Beeson in Tacoma. “Inventory levels were supposed to
increase by this time of year, yet stubbornly, would-be sellers remain on the
sidelines, so buyers will continue to struggle to find a home and compete with
other buyers through most, if not all of 2017,” added Beeson, a member of the
MLS board of directors.
Beeson also commented on the
“hottest market” label from Case-Shiller. “It sounds like an enviable position,
but it brings its own set of problems and issues,” he noted. Lengthy times to
obtain appraisals due to the limited number of appraisers, low appraisals,
buyers being forced to pay cash for the difference between appraised value and
the sales price, sellers refusing to make repairs on their property, lenders
requiring repairs to be done prior to closing, and multiple offers were among concerns
he listed.
Industry-watchers say
conditions are ripe for sustained activity through the holidays, citing
historically low interest rates, motivated sellers, fewer players (less
competition), faster closings (fewer transactions to process) and the appeal of
year-end tax deductions are motivators.
Gary O’Leyar described the current market as “one of the
most extreme I’ve seen in 42 years of working in the Greater Seattle area.” Although
there may be a public perception that brokers are “having a heyday” he said
it’s actually one of the hardest markets he and fellow brokers have
encountered. One listing may generate multiple offers, but at the end of the
day there is only one sale. “Along with buyers who are so tested by this market
are the brokers who partner with them to work through this rugged gauntlet to
secure a successful sale,” he noted.
Beeson also commented on the
current market challenges, saying “even in a hot market sellers and buyers need
the guidance of an experienced broker to navigate the waters.” For sellers, he
said, finding a buyer is like the tip of an iceberg – it’s easily seen.
“However,” he explained, “helping a buyer find the right home and winning in a multiple-offer
situation, helping sellers choose the right offer, helping both parties close
the sale are all under the surface and require a knowledgeable, experienced
broker to avoid crashing against a failed sale.”
Northwest Multiple Listing Service, owned by its member real
estate firms, is the largest full-service MLS in the Northwest. Its membership
of nearly 2,100 member offices includes more than 25,000 real estate
professionals. The organization, based in Kirkland, Wash., currently serves 23
counties in Washington state.
Monday, November 28, 2016
Fire Safety
Residential fires take their toll every day, every year, in lost
lives, injuries, and destroyed property. The fact is that many conditions that
cause house fires can be avoided or prevented by homeowners. Taking the time
for some simple precautions, preventive inspections, and concrete planning can
help prevent fire in the home - and can save property and lives should disaster
strike.
- Check holiday
lights for fraying or broken wires and plugs. Follow the manufacturer's
guidelines when joining multiple strands together, as a fire hazard could
result from overload. Enjoy indoor holiday lighting only while someone is
home, and turn them off before going to bed at night.
- Candles add a
welcome festive feeling, and should be placed in stable holders and located
away from curtains, drafts, pets, and children. Never leave burning
candles unattended, even for a short time.
- Live Christmas
trees should be kept in a water-filled stand and checked daily for
dehydration. Needles should not easily break off a freshly-cut tree. Brown
needles or lots of fallen needles indicate a dangerously dried-out tree
which should be discarded immediately. Always use nonflammable decorations
in the home, and never use lights on a dried-out tree.
- All electrical
devices including lamps, appliances, and electronics should be checked for
frayed cords, loose or broken plugs, and exposed wiring. Never run
electrical wires, including extension cords, under carpet or rugs as this
creates a fire hazard.
- Fireplaces should
be checked by a professional chimney sweep each year and cleaned if
necessary to prevent a dangerous buildup of creosote, which can cause a
flash fire in the chimney. Cracks in masonry chimneys should be repaired,
and spark arresters inspected to ensure they are in good condition and
free of debris.
- When using space
heaters, keep them away from beds and bedding, curtains, papers - anything
flammable. Always follow the manufacturer's instructions for use. Space
heaters should not be left unattended or where a child or pet could knock
them over.
- Use smoke
detectors with fresh batteries unless they are hard-wired to your home's
electrical system. Smoke detectors should be installed high on walls or on
ceilings on every level of the home, inside each bedroom, and outside every
sleeping area. Statistics show that nearly 60% of home fire fatalities
occur in homes without working smoke alarms. Most municipalities now
require the use of working smoke detectors in both single and multi-family
residences.
- Children should
not have access to or be allowed to play with matches, lighters, or
candles. Flammable materials such as gasoline, kerosene, or propane should
always be stored outside of and away from the house.
- Kitchen fires know
no season. According to the U.S. National Fire Protection Association, 46%
of reported home fires in 2015 were caused by cooking. Grease spills,
items left unattended on the stove or in the oven, and food left in
toasters or toaster ovens can catch fire quickly. Don't wear loose fitting
clothing, especially with long sleeves, around the stove. Handles of pots
and pans should be turned away from the front of the stove to prevent
accidental contact. Keep an all-purpose fire extinguisher within easy
reach. Extinguishers specifically formulated for grease and cooking fuel
fires are available and can supplement an all-purpose extinguisher.
- Have an escape
plan. This is one of the most important measures to prevent death in a
fire. Visit ready.gov for detailed information on how to make a plan.
Local fire departments can also provide recommendations on escape planning
and preparedness. In addition, all family members should know how to dial
911 in case of a fire or other emergency.
The Sound Team
(360) 753-5025
Friday, November 4, 2016
Home sales and prices still climbing around Puget Sound, but brokers expect slowdown
KIRKLAND, Washington (Nov. 4, 2016) – Home sales around Western
Washington outgained new listings again in October, fueling competition for
scarce inventory and pushing prices higher. Some seasonal slowdown is still
expected – and the Nov. 8 elections may be in play as well, according to
brokers at Northwest Multiple Listing Service who commented on last month’s
activity.
MLS members reported 9,950
pending sales during October, but they added only 7,591 new listings, the
lowest number since January. A year-over-year comparison of pending sales shows
there were 633 more mutually accepted offers last month than twelve months ago
for a gain of 6.8 percent.
Closed sales improved even
more, rising from the year-ago total of 7,769 completed transactions to last
month’s volume of 8,554 (up 10.1 percent).
“While the stock market remains
somewhat skittish regarding the upcoming presidential election, this feeling
clearly has not transferred to the housing market, unfortunately for buyers who
were hoping to have more homes to choose from this fall, listings in October
fell to levels we haven’t seen since the 1990s – and at this point, we probably
won’t see any sizable increase in inventory until the spring at the earliest,”
he added.
Active listings dropped more
than 13 percent compared to a year ago, with further shrinkage expected. At
month end there were 15,690 single family homes and condominiums offered for
sale in the MLS system, which encompasses 23 counties. That’s 2,378 fewer than
the year-ago total of 18,068, and 2,446 fewer than September. All but two
counties (Clallam and Ferry) reported year-over-year decreases in inventory.
Overall, there was only 1.8 months of supply. King County had slightly
more than one month (1.1), with several areas within that county reporting less
than a month’s supply. In Snohomish County, where inventory plunged more than
20 percent from a year ago, there was with 1.3 months.
“The further we move into
November, the more we’ll start feeling the typical seasonal drop when new
listings coming on the market decline by 50 percent on a monthly basis compared
to spring and summer months,” suggested J. Lennox. Buyers are still out there,
he emphasized. “We’re heading into winter with a repeat of last year’s
conditions: low inventory, a backlog of buyers, and historically low interest
rates.” On the heels of the “best October on record” Scott predicts “a strong
winter market where the inventory remains tight throughout the season.”
Not surprisingly given the
large MLS territory, which includes both rural and urban areas, activity is
stronger in some sub-markets than others. Prices also reflect a wide spectrum.
Of the four counties comprising the Puget Sound region (King, Kitsap, Pierce
and Snohomish), only Kitsap had an uptick in new listings compared to a year
ago, but that county’s robust pending sales (up 20.7 percent) helped deplete
its total inventory versus twelve months ago (down about 7 percent).
“The market in Kitsap is still
very active,” according to Frank Wilson in Poulsbo. He noted Kitsap typically
lags the Seattle market by 6-to-9 months.
Wilson expects a slowing in
Kitsap County, at which time the upward pressure on pricing will begin to ease.
“For now, the median price is up almost 13 percent from a year ago,” added
Wilson, a board member at Northwest MLS.
In South Sound, prices rose at
a more moderate rate, around 9.6 percent in Pierce County and just over 6.8
percent in Thurston County. “Homes priced under $400,000 are looked at hard by
buyers on ‘day one’ and often draw multiple offers,” said Northwest MLS
director Dick Beeson in Tacoma. Above that figure, things slow down markedly,
he noted, adding that’s true in other areas, but the starting numbers and wait
times might vary.
Beeson also cautioned sellers
to be realistic in pricing, even in the current imbalanced market when sellers
may have the upper hand. “Price cures all ills. No amount of marketing a
property will cure the ill caused by too high a price,” said the veteran
broker, citing data on expired listings that eventually came back on the market
but oftentimes sold at a reduced price.
System-wide, prices for single
family homes and condos (combined) rose nearly 8.2 percent from a year ago,
increasing from $318,000 to $344,000. In the four-county Puget Sound region,
King County claimed the largest increase and the highest prices. Year-over-year
prices jumped 14.5 percent, from $432,750 to $495,500.
Single family home prices
(excluding condos) increased 9.2 percent from a year ago; in King County the
gain was nearly 14.6 percent, climbing from $480,000 to $550,000. That
countywide median price is higher than September (which was $538,000) but lower
than the year-to-date peak of $573,522 in June.
Condo prices increased $20,000
from a year ago (more than 7.3 percent), climbing from $265,500 to $285,000.
The median price on closed sales of condos in King County was $320,000, about
10 percent higher than a year ago. Inventory area-wide fell more than 21
percent, leaving only 1.1 months of supply.
While prices continue to appreciate,
Wilson said the “appraisal situation” is tempering activity. “We’ve spent the
last 20 years improving the closing process, making it faster and more
efficient. With the reduced number of appraisers in the marketplace now, we are
seeing 2-to-4 weeks being adding to closing times, and costs doubling or
tripling.”
Along with appraisal delays and
seasonal adjustments, another industry leader mentioned reports indicating real
estate markets nationwide are experiencing an “election cycle slowdown” due to
the uncertainty surrounding next week’s elections. “People may be taking a
‘wait and see’ approach before buying or selling,” said Mike Grady. However, he added, “We believe that regardless
of who wins, there will be no major impact on the Puget Sound region’s
economy.”
Grady cited solid local
economic indicators and the Federal Reserve’s decision on Wednesday to hold off
on increasing interest rates as signals for a good time for home buyers and
sellers to make a move. “It actually could be a great window of opportunity,”
he stated.
MLS director George Moorhead
also commented on jitters associated with Election Day. “We are hearing
concerns from buyers relocating from other countries and how policies may
change job security,” he stated.
On an encouraging note for
buyers, Moorhead said there has been more flexibility involving new
construction incentives and upgrades, notably among larger national builders
wanting to close out inventory. He believes it’s been at least 18 months since
such offers were available to buyers.
“New construction projects are
still going forward and are only hampered by the lack of available land for
larger development sites,” reported Moorhead. Both national and mid-sized local builders are
completing smaller 4-to-6 lot plats, even though they prefer plats of at least
12 lots, according to Moorhead.
Asked about activity from
foreign investors who might be shifting attention from British Columbia to
markets in Washington because of tax hikes and other measures being imposed
there, and recent reports of plunging sales, brokers with Northwest MLS had
varied reactions:
Moorhead said they’re seeing an increase in foreign money, but it’s more in the
commercial arena. He also noted they are a hearing of foreign buyers looking
not just in Puget Sound, but also in California, Texas and other states.
Gary O’Leyar described it as “a great example of what happens when you impose a
restriction (excessive taxes or restraints) onto a free market. Although the
circumstances are not exactly the same, rent control in a free trade market
could have similar detrimental results.”
Grady’s response was: “It’s not at all surprising that pending sales in
Vancouver (B.C.) dropped comparing month-to-month, after the huge surge that
happened in the final month before the new fees commenced.”
Beeson was upbeat. “This move
[by the British Columbia government] to put an additional tax burden on foreign
investors should bring smiles to Washington brokers, particularly in the
Greater Seattle and Eastside markets. It's only a matter of time until these
investors find a welcome mat out just a few miles south of Vancouver and
property prices worth writing home about.”
Northwest Multiple Listing
Service, owned by its member real estate firms, is the largest full-service MLS
in the Northwest. Its membership of nearly 2,100 member offices includes more
than 25,000 real estate professionals. The organization, based in Kirkland,
Wash., currently serves 23 counties in Washington state.
Wednesday, November 2, 2016
No Change From Fed
Over the past week, shifting expectations for foreign
central banks and headlines about the U.S. election were the main influence on
mortgage rates. The U.S. economic data had little impact. Mortgage rates ended
the week a little higher.
As widely expected, the U.S. Fed made no policy changes
on Wednesday, and its statement was very similar to the prior one. Investors
still think there is roughly a 75% chance for a federal funds rate hike at the
next meeting on December 14, nearly unchanged from before the release of the
Fed statement. There was little market reaction to the Fed meeting.
By contrast, recent news from Europe and Japan was
negative for global bonds. Due to better than expected European economic data,
concerns grew that the European Central Bank (ECB) may see less need to
increase its monetary stimulus, particularly its bond purchases. In addition,
an official of the Bank of Japan (BOJ) said that the BOJ may not increase its
bond purchase program, disappointing some investors. Bond purchases from
central banks around the world have helped push global bond yields lower in
recent years, so indications that there may be less stimulus in the future
caused yields to rise, including U.S. mortgage rates.
One reason that the U.S. Fed is able to wait longer to
tighten monetary policy is that inflation has risen very slowly so far this
year and remains below the Fed's target. The recently released core Personal
Consumption Expenditures (PCE) price index, the inflation indicator favored by
the Fed, was 1.7% higher than a year ago, matching expectations. Core PCE has
remained close to current levels all year. According to the Fed statement, Fed
officials expect that inflation will rise to their target of 2.0% "over
the medium term."
The U.S. election also has influenced mortgage rates.
Generally, news that favors Trump has been positive for bonds and negative for
stocks. News that favors Clinton has caused the opposite reaction.
Looking ahead, the Institute of Supply Management (ISM)
Services index will be released on Thursday. The important monthly employment
report will be released on Friday. As usual, this data on the number of jobs,
the unemployment rate, and wage inflation will be the most highly anticipated
economic data of the month. The Job Openings and Labor Turnover Survey, or
JOLTS, which measures job openings and labor turnover rates, will come out on
November 8. The election also may continue to influence mortgage rates.
This information provided by: The Sanders Young Team,
NMLS ID #487525 and #438324
HomeStreet Bank
720 Lilly Road SE Olympia, WA 98501
HomeStreet Bank
720 Lilly Road SE Olympia, WA 98501
Tuesday, October 18, 2016
VA Appraisals
Effective 10-31 VA has
increased their appraisal fees to $800 SFR/ $900 Manufactured Home and increased their timeliness
to 14 business days, up from 10.
Other AMC’s are also
notifying me of an increase in appraisal fee, one of our best performing AMC’s
is increasing the fee for a
SFR in Thurston Co to $750, + $200 for 5 acres = $950 - effective Nov 1st.
I am seeing turn times from 5
days to 45 days being quoted with an average turn time of 2 weeks depending on
location and complexity of assignment.
Let me know if I can help you
today.
Andrea C McGhee
Residential Mortgage Loan
Originator
Goldwater Bank, N.A. -
Mortgage Division
NMLS# 103092,
Corporate NMLS# 452955
2620 RW Johnson
Blvd SW Ste 104 Tumwater, WA 98512
Direct:
360.915.9609 | Cell: 360.451.2358
Read My Reviews on Zillow
Friday, October 14, 2016
Flippers
The 2016 Legislative Session has changed what defines a "Flipper" in the Contractor Registration Act in Washington state. Previously, it was:
"Anybody who modifies their home within the 12 months prior to selling"
The Contractor Registration Act in Washington state has since been revised to change the "contractor" definition to exclude:
"Any person that makes repairs by HIRING a licensed & bonded contractor".
Do you have questions? Want to know if you're a flipper? Call me.
"Anybody who modifies their home within the 12 months prior to selling"
The Contractor Registration Act in Washington state has since been revised to change the "contractor" definition to exclude:
"Any person that makes repairs by HIRING a licensed & bonded contractor".
Do you have questions? Want to know if you're a flipper? Call me.
Wednesday, October 5, 2016
Western Washington housing market still strong, but some see signs of rebalancing
KIRKLAND, Washington (Oct. 5, 2016) – It’s still a seller’s market, but
some leaders from Northwest Multiple Listing Service think the imbalance may be
easing in some areas, pointing to a slower pace of sales and moderating prices.
Others aren’t convinced, citing mixed indicators.
Northwest MLS statistics
summarizing September activity show year-over-year gains in the volumes of new
listings (up 14.5%), pending sales (up 9.3%), closed sales (up 9.5%), and
prices (up nearly 9%). Inventory for single family homes and condominiums
across the 23 counties in the report dropped about 8 percent from a year ago.
Commenting on September’s
activity, Northwest MLS director George Moorhead reported “rumblings on both
sides of the fence” by buyers and sellers. “Buyers are getting antsy to make a
move before interest rates rise and they’re looking harder at homes that have
been on the market longer than 30 days.”
Sellers are considering
remodeling instead of buying as they cannot find a suitable new home, according
to Moorhead. He noted builders also face challenges in their searches for new
development sites near metro areas.
MLS members continue to
scramble to replenish inventory. Compared to a year ago, they added 1,275 more
new listings during September, ending the month with 10,047 total new listings.
Like most months this year, however, September’s pending sales of single family
homes and condos exceeded the number of new listings. Brokers reported 10,463 pending
sales (mutually accepted offers) last month for a 9.3 percent improvement over
a year ago.
September’s new listings marked the lowest monthly total
since February – but it may be an expected seasonal slowdown.
“We have one month until November when new listings coming on the
market drop by 50 percent on a monthly basis compared to spring and summer
months,” explained J. Lennox. With the decrease typically lasting until the end
of February, “the best opportunity for homebuyers to find a home will be in the
next 30 days.”
The current selection includes
18,136 active listings, down about 8 percent from the year-ago inventory. Only
two counties -- King and Clallam – reported year-over-year gains in inventory
during September.
Area-wide supply, as measured by months of inventory,
improved slightly from August, rising from about 1.9 months to 2 months. Supply
remained below two months in King, Snohomish and Pierce counties.
Demand for homes around Puget
Sound remains strong, with the market showing “no marked change throughout the
summer months,” remarked MLS director Dick Beeson. Well-priced, well-conditioned
homes continue to command attention and draw offers in record time, he noted.
September was “an interesting
month for a few different reasons”.. Among factors he cited were the modest
increase in the number of new listings in the tri-county region (King, Pierce,
and Snohomish) and the slowing pace of sales and prices. “The good news is that
all of this points towards a market that is slowly beginning to rebalance
itself.”
MLS director Frank Wilson
believes Kitsap County is moving into the fall cycle, evidenced in part by
slowdowns in listings and sales when compared to mid-year activity. He also
reported fewer people at open houses and fewer multiple offer situations. “We
are still heavily weighted to a seller’s market, but a small shift might be
telling – we’re seeing more price reductions than in the recent past,” said
Wilson.
Sparse inventory in many
close-in neighborhoods, a shortage of appraisers, and the likelihood of an
interest rate hike before year-end are sources of concern, according to some
MLS spokespersons.
“We continue to see a seller’s market expansion in
peripheral counties, with absorption remaining high and prices continuing their
relentless increases,” said Mike Grady. Additionally, he cited reports on
healthy job creation and single-family building permits, and increases in investments
in the local market by foreign buyers. “We don’t expect things to moderate
significantly any time soon,” he remarked.
A shortage of real estate
appraisers is concerning to Grady and other MLS officials. “We are hearing
concerns from brokers that closing times are increasing because appraisals are
more difficult to get completed in a timely manner given the frenzied pace of
activity,” Grady stated, adding, how rush fees can also slow down the process
for those not paying a premium for expedited service.
“With the current shortage of
appraisers and the lengthened time and increased costs it takes to get an
appraisal, this market is even more challenging,” said Wilson. “We’ve gone from
reductions in closing time over the past 20 years to now lengthening the
process because of changes to our industry and the requirements to be an
appraiser.”
Beeson agreed, saying
“Appraisals continue to plague brokers and sellers.” The number of certified
appraisers statewide has diminished by half from 5,000 to around 2,500 since
Dodd/Frank regulations took effect. Longer appraisal time isn’t the only
challenge, he noted. “Appraisers are struggling to establish values based on
the continued rise in sales prices. Many buyers are faced with the prospect of
paying above appraised values if they want to secure a home,” according to
Beeson, who noted this difference must be paid in cash so the mortgage amount
doesn’t exceed the valuation.
Median sales prices system-wide
jumped nearly 9 percent from a year ago, from $312,000 to $340,000. Compared to
August, prices dropped by $10,000.
“It is normal for median home prices to fluctuate the second
half of the year,” stated Lennox. He noted the median home price for single
family homes that sold in King County dropped from $550,000 in August to
$538,000 for September. Compared to 12 months ago, the countywide median rose
9.7 percent for single family homes and 16.4 percent for condos.
Condo prices area-wide rose
17.3 percent from a year ago, escalating from $260,000 to $305,000. Supplies
are tight, with only 1.3 months of inventory. In King County, where last
month’s median sales price was $355,000, there is only one month of supply.
Similarly, Snohomish County has only a month of inventory; year-over-year prices
there rose nearly 9.8 percent.
“We have had many conversations
with sellers who wonder if they have missed the market as inventory levels
slowly rise and the Feds signaling a desire to raise interest rates in
December,” remarked Moorhead.
“The looming prospect of higher
interest rates is fueling buyer interest and prompting many buyers to take the
plunge now rather than wait for a reset in prices,” reported Beeson.
“Knowledgeable brokers coach buyers that a 1% change in interest rates equates
to a $200-plus increase in monthly payments on a $400,000 home and more than
$160 a month on a $275,000 home. That means property values would have to
decrease by over 12% to balance the increase in payment due to higher interest
rates. That's not happening anytime soon,” he stated.
In a recent report on actions
consumers can take in anticipation of rising interest rates, Bankrate, an
aggregator of financial rate information, suggested “considering your home
first.” On a $200,000 mortgage, half of one percentage point of interest means
a difference of $20,000 or more over 30 years. “If you are on the fence about
buying or refinancing, now is the time to act,” the author of the Bankrate
report wrote.
Northwest Multiple Listing Service, owned by its member real
estate firms, is the largest full-service MLS in the Northwest. Its membership
of nearly 2,100 member offices includes more than 25,000 real estate
professionals.
Tuesday, October 4, 2016
Saturday, October 1, 2016
Utility Companies
PO Box 97034
Bellevue, WA 98009
(425) 424-6537
The Water Company
H&R
Waterworks, Inc.
(Water and
Sewer)
PO Box 3
East Olympia, WA
98540-0003
(360)
357-3758
City of
Lacey (Water/Sewer)
420 College St. SE
Lacey, WA 98503
(360) 491-5616
City of Olympia (Water/Sewer)
PO Box 7966
Olympia, WA 98507
(360) 753-8340
City of Tenino (Water/Sewer)
PO Box 4019
149 Hodgen St. S
Tenino, WA 98589
(360) 264-2368
City of
Tumwater (Water/Sewer)
555 Israel Rd. SW
Tumwater, WA 98501
(360) 754-4133
City of Yelm
(Water/Sewer)
901 Rhoton Rd. SE
Yelm, WA 98597
(360)
458-3244
WA Water Service Co.
PO Box 336
Gig Harbor,
WA 98335
(877)
408-4060
LeMay Inc. (Garbage)
2910 Hogum Bay Rd. NE
Lacey, WA 98516
(360) 923-0111
Lewis/Chehalis
1713 N. Pearl
Centralia, WA 98531
(360) 264-2368
Grays Harbor
4201 Olympic Hwy
Aberdeen, WA 98520
(360) 533-2507
Pierce County
4111 192nd St. E
Tacoma, WA 98446
(253) 875-5890
Mason County PUD 3
PO Box 2148
Shelton, WA 98584
(360) 426-8255
Belfair
PO Box 2148
Shelton, WA 98584
(360) 275-2833
Shelton
PO Box 2148
Shelton, WA 98584
(360) 426-8255
Thurston
PUD
912 Lakeridge Way, SW
Suite 301
Olympia, WA 98502
(360) 357-8703
Friday, September 23, 2016
Tuesday, September 20, 2016
Monday, September 19, 2016
Life After Bankruptcy: 7 Steps to Rebuilding Your Credit
McFerran Law,
P.S.
Practicing Real
Estate Law in Western Washington since 1986
September 19th, 2016
Life After
Bankruptcy:
7 Steps to Rebuilding
Your Credit
Declaring bankruptcy
affects not just your finances and personal life, but your credit score as
well. Your credit score often diminishes during the financially
trying times leading up to bankruptcy. Each missed credit card, auto loan,
or mortgage payment will take a hit on your credit score. If you
elect to declare bankruptcy, your credit score will further
decrease. A bankruptcy will remain on your credit report for up to
10 years, and there is a good chance your Fair Isaac Company score, more
commonly known as your FICO rating, will be low following a
bankruptcy. With this being said, you do not have to wait 10 years
to rebuild a positive credit score. In just a few years following
bankruptcy, your credit can improve drastically if these following steps are
adhered to:
1.
Review your credit report—It
is important to begin the process of rebuilding your credit by first gaining an
understanding of where you stand. You have the right to obtain one free
credit report a year from Experian, TransUnion, and Equifax on annualcreditreport.com.
Once you retain your copy, in addition to assessing your score, review the
credit report for any errors. Contact the credit reporting agencies to
correct any inaccuracies that will negatively impact your score.
2.
Always pay your bills on time—Your
payment history has a considerable impact on your credit score, making up 35%
of the overall rating. Accordingly, one of the easiest ways to bring up
your credit score is to pay your bills on time. It is helpful to put
reminders on your calendar every month by the due date. Additionally,
many services allow you to set up an automatic payment system, which will ensure
you do not forget.
3.
Cautiously apply for credit—Credit
cards can play a critical role in rebuilding credit. If you did not keep
a credit card open during bankruptcy, you should apply for one after your
bankruptcy has been discharged. You may need to open a secured card,
which requires you place a security deposit with the issuer. Make sure
you do not repeat past mistakes—pay off the full balance whenever possible and
be careful not to amass any significant debt.
4.
Know your limits—For rebuilding
credit, as well as ensuring a positive financial status, be aware of the limits
on your credit cards and keep balances well below it. Use all credit
cards sparingly and pay the bill on time, every time.
5.
Be wary of credit repair services—You
will likely receive mailings from companies promising to help repair your
credit. Investigate any such services before you use them, as they may
charge hefty fees and attain few results. You can rebuild your credit on
your own at no cost.
6.
Obtain a loan—A year or two
after your bankruptcy, you may want to consider applying for a car loan or line
of credit. Be sure the loan is affordable and that you can successfully
pay it off. You may receive higher interest rates. Shop around and
know that your rates will drop in the future with successful repayment of the
loan.
7.
Do not close accounts—After
declaring bankruptcy, you may be leery of credit cards and lines of
credit. Many individuals go so far as to close these lines of
credit. Taking this action can have a damaging effect on your
credit. Closing accounts reduces the amount of credit available to you,
thereby diminishing your credit score. Keep lines of credit open even if
you do not use them.
Call us for a free
bankruptcy consultation to see if you qualify for bankruptcy protection. Not
only will we review your current financial circumstance, we will explain your
options and the advantages/disadvantages of each. Bankruptcy is only one
option. The number to call is 253-284-3838 to schedule an appointment at any of
our offices in Tacoma, Kent, Seattle (Northgate), Everett and Silverdale.
Information received with permission by:
Richard J.
Welt
Attorney
at Law
McFerran
Law, P.S.
1833
No. 105th Street, Suite 101
Seattle,
WA 98133
3906
So. 74th St
1833 No. 105th St, Ste. 101 25028 104th Ave SE
Tacoma, WA 98409
Seattle,
WA 98133
Kent, WA 98031
2520 Colby Ave,
Ste. 101 9633 Levin Rd,
Suite 101
Everett, WA 98201
Silverdale, WA 98383
McFerran Law is a
debt relief agency as defined by federal bankruptcy law.
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