Essential Facts for Today’s Market

 

 

One of the greatest benefits I have found for having a coach is perspective. As we move through life, it easy to focus on the negative news and lose sight of the big picture. Perspective can help bring things back to reality.

My coach at www.BuffiniandCompany.com assembled this information that I would like to share with you. Hopefully it will give you perspective too!

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Essential Facts for Today’s Market

More than 1000 banks closed in 1930 – three years before the FDIC was created

- Only 14 U.S. banks have been taken over in 2008

There are 76 million households in the U.S. that own their home

- 24 million of these homes are free and clear

There are 52 million homes with mortgages

- 97.2% of these are not in foreclosure

- 93.8% of these homes are current on their payments

On a sobering note:

Over 20% of homeowners with a mortgage owe more than their home is worth

40% of all foreclosures are non-owner occupied

How did we get here?

Decade	Homes Sold High	Homes Sold Average
1970’s	3.9 million	3 million
1980’s	4 million	3.3 million
1990’s	4.9 million	3.9 million
2000’s	7.1 million	5.6 million

Resale numbers – the above does not include new home sales.

Sources: Wall Street Journal, Moody’s Economy.com, RealtyTrac, NAR, Forbes

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Watching the news or reading the papers you may be led to believe that the whole nation is in foreclosure, but it is actually a single digit percentage of the homes. Unfortunately bad news is what grabs the nation’s attention even when it does not represent the whole story!

Posted By:
Tony Meier
Eastside & Seattle Realtor
425-466-1000
EastsideHomesBlog.com
EastsideHomes.com
Seattle’s Eastside Real Estate Resource
tony@eastsidehomes.com

 

Monday’s Market – Eastside Condos

Eastside & Seattle Market Absorption Rates
By: Tony Meier
Eastside & Seattle Realtor

This week we will be looking at the Condo market absorption rates for the Eastside over the last 7 weeks. When looking at these numbers, keep this in mind:

1.    These are an average of the all price ranges in the area. Some price ranges are definitely moving faster than others! If you would like to know how things break down in a specific price range for an area, send me an email at tony@eastsidehomes.com

2.    These numbers are a result of the sales activity over the last 7 weeks when comparing the number of active listing vs. the number of pending sales to determine what the market absorption rate is for a particular area.

3.    When measuring the heat of the market, the following rules apply:

a.    12 weeks or less = Seller’s Market

b.    12-24 weeks = Balanced Market

c.    24 or more weeks = Buyer’s Market

Condo Only, NWMLS Area 500 (Bellevue, South of I-90) = 47.8 weeks of inventory

Condo Only, NWMLS Area 510 (Mercer Island) = 50.8 weeks of inventory

Condo Only, NWMLS Area 520 (Bellevue, West of 405) = 45.2 weeks of inventory

Condo Only, NWMLS Area 530 (Bellevue, East of 405) = 25.1 weeks of inventory

Condo Only, NWMLS Area 540 (East of Lake Sammamish) = 27.1 weeks of inventory

Condo Only, NWMLS Area 550 (Redmond/Carnation) = 32.2 weeks of inventory

Condo Only, NWMLS Area 560 (Kirkland/Bridle Trails) = 46.2 weeks of inventory

Condo Only, NWMLS Area 600 (Juanita/Woodinville) = 45.7 weeks of inventory

If you have any questions on this information, I welcome you to email me at tony@eastsidehomes.com

Posted By:
Tony Meier
Eastside & Seattle Realtor
425-466-1000
EastsideHomesBlog.com
EastsideHomes.com
Seattle’s Eastside Real Estate Resource
tony@eastsidehomes.com

8 Tips for Your Home Search

1. Research before you look. Decide what features you most want to have in a home, what neighborhoods you prefer, and how much you’d be willing to spend each month for housing.

2. Be realistic. It’s OK to be picky, but don’t be unrealistic with your expectations. There’s no such thing as a perfect home. Use your list of priorities as a guide to evaluate each property.

3. Get your finances in order. Review your credit report and be sure you have enough money to cover your down payment and closing costs. Then, talk to a lender and get prequalified for a mortgage. This will save you the heartache later of falling in love with a house you can’t afford.

4. Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion, but be ready to make the final decision on your own.

5. Decide your moving timeline. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area? All of these factors will help you determine when you should move.

6. Think long term. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in this home for a longer period? This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that will best suit you.

7. Insist on a home inspection. If possible, get a warranty from the seller to cover defects for one year.

8. Get help from a Pro! Now is not the time to enter the market with a part-time agent or your cousin Sally who just got into the business! Seek out the advice and counsel of an agent with many years experience. One who has the knowledge and skill to make sure your purchase goes smoothly and profitably!

 

 

Posted By:
Tony Meier
Eastside & Seattle Realtor
EastsideHomesBlog.com
EastsideHomes.com
Seattle’s Eastside Real Estate Resource
tony@eastsidehomes.com

Seattle Real Estate Market – Most Likely To Rebound

Forbes names Seattle as the market most likely to rebound. Here is the article:

Real Estate Markets Most Likely To Rebound
Dorothy Pomerantz 10.29.08, 4:00 PM ET

If you’re a homeowner seeing property values plummet, look to the commercial real estate market for solace. It might tell you which areas will recover fastest–and which will likely remain weak.

The Urban Land Institute recently asked 700 real estate professionals to name the best (and worst) places to invest in commercial real estate in the coming year. Those surveyed included private developers, Realtors and Real Estate Investment Trust executives. Their answers also apply to the residential market, since the single-family-home sector typically follows the economy. As wages go up and there are more jobs, more people can buy homes, pushing prices up.

The best cities in which to invest are those that are considered gateways to international investment, have vital downtowns where people can forgo cars, and don’t have a glut of condos or office space.

These traits landed Seattle the No. 1 spot on the list. No city scored above a 6.15 on a scale of one to nine (one being an abysmal place to invest and nine being excellent).

Seattle is “a diversified market, has a good base of business and is becoming a 24-hour city,” says Stephen Blank, senior resident fellow, finance, of the Urban Land Institute. “It’s going to be in a good position to come back.”

Although the city is suffering from the loss of Washington Mutual and the downsizing of Starbucks, Boeing and Microsoft are still relatively strong. Apartment vacancies are low and there aren’t too many new buildings going up, meaning the market won’t be oversupplied. The same is true in the retail space.

San Francisco comes in second with a 6.12. The City by the Bay learned from the tech crash of 2001 not to overbuild. There is a reasonable supply of office and apartment space, which should limit vacancies. San Francisco’s port is also expected to help the city during the downturn as Americans continue to rely on Asian imports.

Washington, D.C., New York and Los Angeles round out the top five.

Of course, there’s no guarantee that an improved commercial market will lead to an improved home market. However, investors have a better chance of seeing home prices rise in fundamentally strong markets like Seattle than in struggling cities like Detroit.

It landed at the bottom of the list, scoring a 2.24. Detroit has been reliant on the car industry, which is rapidly shrinking. Other businesses are unlikely to fill the void in the next few years, which means the city will be hit hard by further economic struggles.

New Orleans also lands near the bottom with a score of 3.33. The city has been losing businesses to Houston, Dallas and Atlanta since Hurricane Katrina hit in 2005.

The other cities at the bottom of the list–Columbus, Ohio, Milwaukee, Wis., and Cleveland–suffer from dying industries and lack of tourist appeal.

Recent attempts to turn downtown Milwaukee into a thriving 24-hour city haven’t been enough to protect it from the coming downturn. Increasingly picky investors are expected to favor higher-quality port cities over Midwest towns.

And while Columbus has the potential to become a major shipping hub for goods traveling cross-country, that revitalization may have to wait for a stronger economy and a government focused on improving the nation’s roads.

For now, prospects are dim.

Monday’s Market Update – Seattle Area Residential

Eastside & Seattle Market Absorption Rates
By: Tony Meier
Eastside & Seattle Realtor

 

This week we will be looking at the Residential market absorption rates for the Seattle Area over the last 7 weeks. When looking at these numbers, keep in this in mind:

1.    These are an average of the all price ranges in the area. Some price ranges are definitely moving faster than others! If you would like to know how things break down in a specific price range for an area, send me an email at tony@eastsidehomes.com

2.    These numbers are a result of the sales activity over the last 7 weeks when comparing the number of active listing vs. the number of pending sales to determine what the market absorption rate is for a particular area.

3.    When measuring the heat of the market, the following rules apply:

a.    12 weeks or less = Seller’s Market

b.    12-24 weeks = Balanced Market

c.    24 or more weeks = Buyer’s Market

Residential Only, NWMLS Area 140 (West Seattle) = 25.8 weeks of inventory

Residential Only, NWMLS Area 380 (Central Seattle) = 33.2 weeks of inventory

Residential Only, NWMLS Area 385 (SODO/Beacon Hill) = 26.7 weeks of inventory

Residential Only, NWMLS Area 390 (Central Seattle) = 33.5 weeks of inventory

Residential Only, NWMLS Area 700 (Queen Anne/Magnolia) = 34.9 weeks of inventory

Residential Only, NWMLS Area 705 (Ballard/Greenlake) = 19.9 weeks of inventory

Residential Only, NWMLS Area 710 (North Seattle) = 20.9 weeks of inventory

Residential Only, NWMLS Area 715 (Richmond Beach) = 36.8 weeks of inventory  

Residential Only, NWMLS Area 720 (Lake Forest Park) = 25.7 weeks of inventory

If you have any questions on this information or would like to know the strength in your area and price range, I welcome you to email me at tony@eastsidehomes.com

Posted By:
Tony Meier
Eastside & Seattle Realtor
EastsideHomesBlog.com
EastsideHomes.com
Seattle’s Eastside Real Estate Resource
tony@eastsidehomes.com