Hosted by Tony and Wendi Meier of Windermere Real Estate/NE
Here are the latest market charts from the MLS.
Click on each image below for a larger version.
Active Listings vs. Sold Listings
Number of Pending Listings
Median Sales Price
For more information our the Seattle and Eastside Real Estate Market contact Tony and Wendi Meier here:
[contact-form-7 id=”6″ title=”Contact form 1″]
The housing market has turned a corner. Two years of solid appreciation in the Seattle area shows that to be true. In addition, the Federal Government is easing their support for the bond market, so the ability to get a loan at a discounted rate is coming to an end.
Here is the change seen on the Eastside from 2012 to 2013:
What will waiting cost you in 2014?
If we take a conservative look at value and rate increases…
The costs above are for each year of ownership. If you plan to own a home for 5 years or more, the cost of waiting goes up dramatically!
If you want to find out if now is the right time for you to buy a home or move up in the market, feel free to contact us.
Yes, in fact it is one of the best investments you can make! The graphic above is based upon national numbers, here is what King County looks like:
Residential Median Price in 2000 = $250,000
Residential Median Price in 2013 = $415,000
Total Increase = 66%
As much as our investment adviser would hate for us to tell you this, the Seattle area’s real estate market remains one of the best places to invest your money!
Whether it be purchasing your first home, moving up or buying an investment property, we can help! With 25 years of experience, we will make sure you next real estate move is a profitable one.
Contact us here:
Tony and Wendi Meier
425-466-1000
Or fill out this form:
[contact-form-7 id=”6″ title=”Contact form 1″]
Now that the recession has ended, the divorce rate is back on the rise. The number of Americans getting divorces rose for the third year in a row to about 2.4 million in 2012, according to census data. The divorce rate had plunged to a 40-year low in 2009.
“Whatever the social and emotional impact, the broad economic effects of the increase are clear: It is contributing to the formation of new households; boosting demand for housing, appliances, and furnishings; and spurring the economy,” Bloomberg News reports.
“As the economy normalizes, so too do family dynamics,” says Mark Zandi, chief economist at Moody’s Analytics Inc. in West Chester, Pa. “Birth rates and divorce rates are rising. We may even see them rise strongly in the next couple of years, as households who put off these life-changing events decide to act.”
The rise in divorces has coincided with a rise in household formation. While divorces aren’t the sole contributor to the rise, nearly 5.3 million households have been formed in the past four years, after dropping to fewer than 400,000 in 2009, according to Census Bureau data.
“Separations and divorce often create additional housing demand by creating two households when there was one,” says David Crowe, chief economist at the National Association of Home Builders in Washington.
Rising home prices may give couples greater financial security to proceed with a divorce.
“Home prices are going up [and] many people who were postponing their divorce might start thinking about it,” says Abdur Chowdhury, a professor at Marquette University in Milwaukee and an adviser to the Federal Reserve Bank of Chicago, who published a paper in July 2011 that examined the impact of recessions on divorce. “In many cases after divorce, people sell their homes and divide up the proceeds.” That provides “each of them with a nest egg to begin their separate lives.”
Source: “With the Economy Improving, More Americans Are Getting Divorced,” Bloomberg News (Feb. 25, 2014)
We have helped a dozens of families settled their real estate affairs as part of a divorce. If you would like to inquire on how our services can help you too, do so here:
[contact-form-7 id=”6″ title=”Contact form 1″]
DAILY REAL ESTATE NEWS | TUESDAY, FEBRUARY 25, 2014
Now that the worst of the foreclosure crisis is in the rearview mirror, former home owners who lost their homes to a short sale or foreclosure are re-entering the housing market. They’ve spent the last few years rebuilding their credit — and they’re ready to buy again.
“We’re about three years past the peak of the foreclosures, and that’s about the time when most people would qualify for another loan,” says Daren Blomquist, spokesman for RealtyTrac. “The market really needs boomerang buyers to maintain the current recovery.”
Some boomerang buyers heading back to the housing market may find they have to make down payments of at least 20 percent to qualify for a loan, but others are finding opportunities to put down as little as 3.5 percent or 5 percent.
The wait times for qualifying for a loan can vary depending on the former home owners’ circumstances. Typically, the wait times following a short sale or foreclosure are as follows:
Source: “‘Boomerang’ Buyers Get Another Chance at Homeownership,” Sun Sentinel (Feb. 24, 2014)
We have helped a number of people re-enter the market. If we can help you too, please contact us here:
[contact-form-7 id=”6″ title=”Contact form 1″]
Investors Target ‘Hipster’ ZIPs for FlippingHipsters usually refers to a subculture of 20-something or 30-something men and women who follow the latest lifestyle trends and fashion. Many hipsters have delayed forming their own households and are living with their parents longer to get more control over their finances and find steadier employment, RealtyTrac reports. But some investors are banking on the hipsters’ flood into the housing market soon.
“The low hipster home ownership rate of the past five years translates into a market of potentially millions of first-time home buyers looking to find a home that matches their budget and fits into their hipster lifestyle,” RealtyTrac reports.
Some real estate investors are targeting affordable communities where this growing hipster demographic may decide to settle.
The average gross profit nationally of a single-family home flipped in 2013 was more than $58,000. But areas known for a high number of hipsters are offering much higher returns on flips, according to RealtyTrac’s analysis.
RealtyTrac recently released its latest analysis on the best ZIP codes for the most profitable flipping to hipsters. They factored in the percentage of the population in the 25-34 age group, walkability to public transportation, average flip purchase price and gross profit, among other factors. Read more about the survey methodology used at RealtyTrac.
Here are some of the ZIP codes that made it to the top of RealtyTrac’s list for home flipping for hipsters:
Source: RealtyTrac
DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 13, 2014Mortgage delinquencies nationwide have plummeted to their lowest level in more than five years, as more home owners are coming out of the red on their payments, according to credit reporting agency TransUnion.
The number of borrowers who are at least two months behind on their mortgage payments dropped to 3.85 percent in the fourth quarter of 2013. A year prior, the delinquency rate stood at 5.08 percent.
Nevertheless, the mortgage delinquency rate is still about twice as high as it was prior to 2007.
“We are on the downward slope of the mortgage delinquency curve, so we expect to continue seeing delinquency rates that have not been seen for several years,” says Steve Chaouki, head of financial services for TransUnion.
Struggling home owners are shoring up their finances as home values and equity rise, the job market improves, and refinancing helps to lower their monthly payments, the survey notes. Plus, “many of the risky home loans made before 2008 that went unpaid are no longer a factor, since the homes have been sold or foreclosed upon,” the Associated Press reports. “Loans issued since then, after banks tightened lending standards, are less likely to go unpaid.”
What’s more, with rising home values, borrowers increasingly are saying that keeping up with their mortgage payments is a priority over other financial obligations — a reversal from the days of the recession, says Chaouki.
The states that posted the largest annual declines in the mortgage delinquency rate were Arizona, California, and Nevada. New York and New Jersey were the only two states that did not post a double-digit percentage drop in their mortgage delinquency rates, according to TransUnion.
Source: “Fewer Americans Fall Behind on Mortgage Payments,” The Associated Press (Feb. 12, 2014)
DAILY REAL ESTATE NEWS | WEDNESDAY, FEBRUARY 12, 2014
Strong year-over-year price gains are starting to take a bite into housing affordability, particularly in the West, according to the National Association of REALTORS®’ latest quarterly report.
The median single-family home price rose in 73 percent of the markets, or 119 out of 164 metro areas, in the fourth quarter of 2013, with 26 percent, or 42 of those metros, posting double-digit gains.
“The vast majority of home owners have seen significant gains in equity over the past two years, which is helping the economy through increased consumer spending,” says Lawrence Yun, NAR’s chief economist. “At the same time, home prices have been rising faster than incomes, while mortgage interest rates are above the record lows of a year ago. This is beginning to hamper housing affordability.”
The national median existing single-family home price in the fourth quarter was $196,900, up 10.1 percent from $178,900 one year earlier.
NAR’s Housing Affordability Index, calculated on the relationship between median home prices, median family incomes, and the average effective mortgage interest rate, dropped to 175.8 in 2013 from a record high of 196.5 in 2012. The higher the index, the stronger household purchasing power is, according to NAR.
Yun says tight inventories have accounted for most of the double-digit price growth. The average supply of homes for sale in the fourth quarter was 4.9 months – an improvement over the 4.8 months a year ago, but still not what most economists consider healthy of a 6 to 6.5 month supply. Yun says that new home activity needs to increase in fast appreciating markets to help relieve the upward pressure on home prices.
“Added housing supply will help moderate price growth this year, and should help to stem erosion in affordability, but mortgage interest rates are projected to rise above 5 percent by the end of the year,” Yun says.
The five priciest housing markets in the fourth quarter were:
On the other hand, according to NAR’s report, the following metro areas had the best housing affordability conditions in 2013:
1. Toledo, Ohio
2. Rockford, Ill.
3. Decatur, Ill.
4. Lansing-East Lansing, Mich.
5. Springfield, Ill.
By REALTOR® Magazine Daily News
The spring selling rush may already be under way, as some home owners are already throwing their properties on the market to take advantage of rebounding home prices and improved equity.
Paul Reid, a real estate agent in Temecula, Calif., says some sellers are listing properties earlier than usual in anticipation of the spring season.
Sellers are “nervous about what the spring is going to bring,” says Reid. “They don’t know if everybody will list this spring — then you’ll have a big counterbalance toward too much inventory — or if there’ll be a crunch again. They figure they’ll get out ahead of the market, list, sell, and be done with it.”
Inventory shortages persisted last year, when supply was at a 12-year low leading into the spring. The shortages helped boost home prices, but gave home buyers limited choices and sparked bidding wars in many markets. New-home construction is now at a third of its 2006 peak, which likely will keep inventories tight this spring. But, economists say, improved home prices will likely convince more sellers to sell this year, and that should relieve the inventory crunch in many markets.
In the last four months of 2013, year-over-year inventory levels of homes for sale began to climb after 30 straight months of declines, according to the National Association of REALTORS®.
Inventories increased in some of the states with the tightest markets, such as Arizona, California, Georgia, and Florida. In Sacramento, Calif., asking prices rose 11 percent last year, and listings soared 58 percent in December, according to realtor.com®’s housing report. Inventories also rose by 20 percent or more in Minneapolis; Orlando, Fla.; Atlanta; Dayton, Ohio; Oakland, Calif.; and Phoenix.
“Rising inventory is the primary reason that we expect the pace of price gains to drop back,” says Paul Diggle, property economist for Capital Economics Ltd. Prices are expected to rise only 4 percent nationally this year, compared to an 11 percent gain in 2013.
Source: “U.S. Home Sellers Return for Spring as Buyers Get Relief,” Bloomberg (Feb. 7, 2014)
On a local note: Record low inventories persist on English Hill and the Seattle area. If you are considering selling, contact us to take advantage of our current market conditions.
[contact-form-7 id=”6″ title=”Contact form 1″]
I don’t know of anything that could have been done better, to assist in the closing on our home purchase. Tony worked numerous days in the research of, and touring 20-30 homes. He provided invaluable information about areas, neighborhoods, and local environments. The negotiating process went smoothly, and resulted in a very positive conclusion.
Tony took our input for house-interests, and organized the sequence of search to maximize use of our time. He counselled us on desirability of areas, and provided detailed information on specific homes, whether it be from other brokers, or city/county offices. His input was always specific to the issues at hand, and well-founded in common sense. He was also very available during ourcross-country search and move.
Gary and Riki Woodrell—Purchased in Renton—2013
