KOMO 4 News:
Story Published: Oct 28, 2010 at 7:07 AM PDT
Story Updated: Oct 28, 2010 at 7:16 AM PDT
In the greater Seattle area including King, Pierce, and Snohomish Counties, 1 out of every 129 homes has received a Foreclosure Notice. Nationally that number is 1 out of every 339 meaning that Seattle is facing more than double the average foreclosure rate as the rest of the nation.
The foreclosure crisis intensified across a majority of large U.S. metropolitan areas this summer, with Seattle and Chicago - cities outside of the states that have shouldered the worst of the housing downturn - seeing a sharp increase in foreclosure warnings.
California, Nevada, Florida and Arizona remain the nation's foreclosure hotbeds, accounting for 19 of the top 20 metropolitan areas with the highest foreclosure rates between July and September, foreclosure listing firm RealtyTrac Inc. said Thursday.
Those states saw housing values surge during the housing boom years. When the boom ended, values collapsed and foreclosures soared.
But the latest data show that many of the metro areas in those states saw a decline in the number of households receiving foreclosure-related filings, while many cities in other states saw a spike in foreclosure activity.
"The epidemic is spreading from the states at the ground zero of the foreclosure problems out into areas that hadn't been previously affected," said Rick Sharga, a senior vice president at RealtyTrac.
The trend is the latest sign that the nation's foreclosure crisis is worsening as homeowners facing high unemployment, slow job growth and uncertainty about home prices continue to fall behind on their mortgage payments.
In all, 133 out of 206 metropolitan areas with at least 200,000 residents posted an annual increase in foreclosure activity in the three months ended Sept. 30, RealtyTrac said.
The firm tracks notices for defaults, scheduled home auctions and home repossessions - warnings that can lead up to a home eventually being lost to foreclosure.
Eleven out of the nation's 20 largest metropolitan areas saw foreclosure activity increase in the third quarter compared to the same period last year.
The Seattle-Tacoma-Bellevue metro area registered the sharpest annual increase - 71 percent. One in every 129 households received a foreclosure filing.
The Chicago-Naperville-Joliet metropolitan area posted the second-highest annual jump, a 35 percent increase. One in every 84 households received a foreclosure notice.
Among the other metro areas where foreclosure activity jumped by a large margin this summer were Houston-Sugar Land-Baytown, up 26 percent; Detroit-Warren-Livonia, at nearly 23 percent; and, Atlanta-Sandy Springs-Marietta, up 20 percent.
Economic woes, such as unemployment or reduced income, continue to be the main catalysts for foreclosures this year. The U.S. unemployment rate hit 9.6 percent last month.
In the Seattle metro area, unemployment stood slightly lower at 8.5 percent in August and has been edging lower. It was 8.7 percent in August last year.
Still, many troubled homeowners have been unable to hang on. As a result, there's been no let up in the inventory of foreclosed homes on the market this year, says John Bauer, an agent with ZipRealty in Seattle who represents lenders selling foreclosed properties.
"It has been on an upward trend curve ever since 2008," Bauer said. "And not just the third quarter of this year, but the last 12 months, it's been on a steady ascension."
Chicago also had the third-highest number of homes repossessed by lenders during the quarter - 12,568 - behind the Phoenix metro area's 14,317 and the Miami metro area's 12,963, RealtyTrac said.
Banks have seized more than 816,000 homes through the first nine months of the year and are on pace to seize more than a million.
A controversy stemming from allegations that banks evicted people without reading foreclosure documents wasn't a factor in the July-September quarter, Sharga said.
Lenders such as Bank of America and Ally Financial's GMAC Mortgage initially halted foreclosure activity but have since resumed processing foreclosures.
Preliminary data from this month shows almost no change in foreclosure activity versus September, Sharga said.
"We're not seeing what we might have anticipated in terms of a falloff," he said.
The Las Vegas-Paradise, Nev., metropolitan area topped the list of metropolitan areas with the highest foreclosure rates in July-September with one in every 25 homes receiving a foreclosure warning - more than five times the national average. But foreclosure filings declined 20 percent from the same quarter last year.
"It's not out of the woods yet, it's just less bad than it was a year ago," Sharga said.
Rounding out the rest of the top 10 metros with the highest foreclosure rate were Cape Coral-Fort Myers, Fla.; Modesto, Calif.; Stockton, Calif.; Merced, Calif.; Riverside-San Bernardino-Ontario, Calif.; Miami-Fort Lauderdale-Pompano Beach, Fla.; Phoenix-Mesa-Scottsdale, Ariz.; Bakersfield, Calif.; and Vallejo-Fairfield, Calif.--
Posted By The Cascade Team Real Estate to The Cascade Team Real Estate at 10/28/2010 07:34:00 AM
Thursday, October 28, 2010
Sunday, August 8, 2010
NWMLS Housing Update for July 2010
KIRKLAND, Wash. (Aug. 5, 2010) – Housing activity during July held few surprises for members of
Northwest Multiple Listing Service, although some brokers wonder why more buyers aren’t taking advantage of historic low interest rates.
Both pending sales and median prices on closed sales showed slight improvement from the previous month, according to the latest report from NWMLS. “It’s a housing trifecta,” declared Meribeth Hutchings, a director for Northwest Multiple Listing Service when asked to comment on activity for the month of July. The combination of the lowest interest rates on record, plenty of inventory and low prices offer an unprecedented opportunity for buyers, Hutchings explained. The broker/owner of Windermere Real Estate/Lake Stevens Inc. said homes have never been this affordable in her 28 years in the business.
Brokers reported 5,571 pending sales across the 21 counties in the Northwest MLS service area. That’s up slightly from June when they reported 5,547 pending sales, but down about 23 percent from twelve months ago when there were 7,279 pending sales. The MLS report showed year-over-year increases in inventory, a double-digit decline in closed sales and a small drop in prices:
• At month end, there were 44,770 properties for sale system-wide, a gain of 5.8 percent from twelve months ago. The inventory includes 10,850 new listings added during July (9,308 single family homes and 1,542 condominiums).
• Brokers reported 4,491 closed sales of single family homes and condominiums (combined) during July. That’s down 18.7 percent from the same month a year ago when members tallied 5,527 closed sales.
• The median price for last month’s closed sales was $274,990, down 1.4 percent from the year-ago figure of $279,000. Prices rose in nine counties.
• Last month’s median price, compared to June, is up about 3.8 percent overall.
“The tax credit pulled some first-time buyers from the second half of the year into the first half,” surmised NWMLS director Pat Grimm, managing broker, Windermere RE/Capitol Hill, Inc. The National Association of REALTORS® echoed his comment. In a statement accompanying its report on nationwide pending sales for June, NAR said it expected near-term home sales to be noticeably lower in contrast to the spring surge when buyers rushed to take advantage of the home buyer tax credit.
Dick Beeson, NWMLS director and broker/owner at Windermere Commencement Associates in Tacoma, suggested the market has adjusted to a “non-stimulus environment.” The lack of a tax credit has caused some buyers to postpone their purchase, he said, but added, “Many others are continuing to take advantage of superlative interest rates and bargain prices.”
Hutchings said business was “typical” for July, “usually a slow month because of vacations.”
Nevertheless, she noted, despite the expiration of the tax credit, sales volumes for her office were comparable to a year ago.
Another MLS director, Frank Wilson, managing broker at John L. Scott, Inc. Poulsbo, said the current market is being driven by people who “have to.” These include buyers who “have to buy” and sellers who “have to sell,” with a good deal of buyers and sellers still sitting on the sidelines waiting.
He noted homes in Kitsap County priced in the $200,000 to $299,000 range are selling quite quickly, thanks in part to very favorable loan programs.
On another positive note, Grimm said the influx of first-time buyers taking advantage of the tax credit has pulled move-up buyers into the market. “We’re seeing increased sales in the higher-end market,” he remarked, adding there’s been a “reality check” on pricing at the higher end, marked by price drops and a corresponding uptick in activity. As an example, he said a home in Seattle’s Capitol Hill neighborhood sold for $1.045 million in just four days. “The seller had priced the home well and it sold within four percent of the asking price,” Grimm stated.
Commenting on the inventory and pace of sales, Bobbie Petrone Chipman, managing broker of Coldwell Banker Bain in Puyallup and a member of the NWMLS board of directors, emphasized that sellers “must focus on the condition, amenities and pricing of their properties in order to obtain a sale in this very strong buyer’s market.” She also suggested buyers who procrastinate while waiting for a better time to purchase may risk looking back in hindsight bemoaning the opportunity that passed them by.
Brokers also report some encouraging activity for newly built homes. “We see sales occurring in new construction where large builders have reset their prices to 2004 levels. Sales are brisk among first-time buyers in this market. These buyers know we are bouncing along the bottom in prices and have reach historic low interest rates,” Beeson reported.
The “Monthly Monitor” newsletter from Bothell-based New Home Trends, Inc. also said new home sales activity is trending up in the Puget Sound region. “The number of new construction home sales written in the last twelve months exceeds the previous year by 28.1 percent.
The Puget Sound area continues to show a demand for new housing,” the report concludes.
Industry officials believe interest rates, jobs and consumer confidence are critical to building momentum. “Consumer confidence is ebbing and that makes major purchases even more difficult to initiate or even contemplate,” observed Beeson. “If the job picture improves even slightly later this year, we will see an uncharacteristic uptick in sales in the final quarter,” he stated.
NAR, in its prepared statement, also addressed the employment picture. “There could be couple of additional months of slow home-sales activity before picking up later this year, providing the economy continues to add jobs.
We’ve turned the corner on home prices and they should remain fairly stable over the balance of the year, but we really need to see stronger job creation to have a meaningful recovery in
the housing markets,” according NAR.
MLS director Matt Deasy, managing broker of Windermere Real Estate/East, suggested some would-be buyers may not fully understand the advantages of today’s low interest rates.
Citing examples from Windermere’s affiliated mortgage company, Deasy said a buyer saves $374 a month on a $300,000 loan compared to three years ago. The principal and interest on a $300,000 mortgage at today’s rate of 4.375 percent would be $1,498. Three years ago, when the rate averaged 6.375 percent, the P&I payment would have been $1,872.
On a $400,000 loan, the savings would be almost $500 per month ($2,495 less $1,997 = $498). For the past 30 years, the average rate is approximately 9 percent, which puts the payment on a $300,000 loan at $2,414 – a difference of $916 per month.
“Buyers are motivated when they see these comparisons,” Deasy remarked. He also believes there’s a pent-up demand based on the number of pre-approvals for loans in the mortgage company’s pipeline. He expects many of these potential buyers “will pull the trigger” once rates or prices start edging up.
Bystanders are still waiting for a piece of the puzzle to fall in place, according to Wilson. For some, he said the missing piece might be jobs, the economy, confidence in the future or direction of the stock market.
J. Lennox Scott, chairman and CEO of John L. Scott Real Estate praised recent action to help households purchase homes in rural areas. “The Federal Government should be applauded for passing the legislation that will allow for recapitalization of the USDA's Single-Family Housing Guaranteed Loan Program,” he said. “Rural America has more than 50 million people nationwide, many of whom are in a strong position to buy a home, but lack the down payment funds required by conventional loan programs, he explained, adding, “The USDA loan program opens up opportunities to many of these buyers, bringing with it a proven track record of success and another step towards creating long-term housing sustainability."
Washington fared “4th best state” for building a nest egg and has the country’s most promising real estate market in the near term, according to an index created by U.S. News that considered each state’s housing market, unemployment rate, per capita income, and taxes. Citing data by Moody’s Analytics, the report indicated home prices in the state are expected to surge by “a whopping 6.6 percent per year” between 2010 and 2013.
Northwest Multiple Listing Service, owned by its member brokers, is the largest full-service MLS in the Northwest. Its membership includes more than 24,000 brokers and agents. The organization, based in Kirkland, currently serves 21 counties in Western and Central Washington.
Northwest Multiple Listing Service, although some brokers wonder why more buyers aren’t taking advantage of historic low interest rates.
Both pending sales and median prices on closed sales showed slight improvement from the previous month, according to the latest report from NWMLS. “It’s a housing trifecta,” declared Meribeth Hutchings, a director for Northwest Multiple Listing Service when asked to comment on activity for the month of July. The combination of the lowest interest rates on record, plenty of inventory and low prices offer an unprecedented opportunity for buyers, Hutchings explained. The broker/owner of Windermere Real Estate/Lake Stevens Inc. said homes have never been this affordable in her 28 years in the business.
Brokers reported 5,571 pending sales across the 21 counties in the Northwest MLS service area. That’s up slightly from June when they reported 5,547 pending sales, but down about 23 percent from twelve months ago when there were 7,279 pending sales. The MLS report showed year-over-year increases in inventory, a double-digit decline in closed sales and a small drop in prices:
• At month end, there were 44,770 properties for sale system-wide, a gain of 5.8 percent from twelve months ago. The inventory includes 10,850 new listings added during July (9,308 single family homes and 1,542 condominiums).
• Brokers reported 4,491 closed sales of single family homes and condominiums (combined) during July. That’s down 18.7 percent from the same month a year ago when members tallied 5,527 closed sales.
• The median price for last month’s closed sales was $274,990, down 1.4 percent from the year-ago figure of $279,000. Prices rose in nine counties.
• Last month’s median price, compared to June, is up about 3.8 percent overall.
“The tax credit pulled some first-time buyers from the second half of the year into the first half,” surmised NWMLS director Pat Grimm, managing broker, Windermere RE/Capitol Hill, Inc. The National Association of REALTORS® echoed his comment. In a statement accompanying its report on nationwide pending sales for June, NAR said it expected near-term home sales to be noticeably lower in contrast to the spring surge when buyers rushed to take advantage of the home buyer tax credit.
Dick Beeson, NWMLS director and broker/owner at Windermere Commencement Associates in Tacoma, suggested the market has adjusted to a “non-stimulus environment.” The lack of a tax credit has caused some buyers to postpone their purchase, he said, but added, “Many others are continuing to take advantage of superlative interest rates and bargain prices.”
Hutchings said business was “typical” for July, “usually a slow month because of vacations.”
Nevertheless, she noted, despite the expiration of the tax credit, sales volumes for her office were comparable to a year ago.
Another MLS director, Frank Wilson, managing broker at John L. Scott, Inc. Poulsbo, said the current market is being driven by people who “have to.” These include buyers who “have to buy” and sellers who “have to sell,” with a good deal of buyers and sellers still sitting on the sidelines waiting.
He noted homes in Kitsap County priced in the $200,000 to $299,000 range are selling quite quickly, thanks in part to very favorable loan programs.
On another positive note, Grimm said the influx of first-time buyers taking advantage of the tax credit has pulled move-up buyers into the market. “We’re seeing increased sales in the higher-end market,” he remarked, adding there’s been a “reality check” on pricing at the higher end, marked by price drops and a corresponding uptick in activity. As an example, he said a home in Seattle’s Capitol Hill neighborhood sold for $1.045 million in just four days. “The seller had priced the home well and it sold within four percent of the asking price,” Grimm stated.
Commenting on the inventory and pace of sales, Bobbie Petrone Chipman, managing broker of Coldwell Banker Bain in Puyallup and a member of the NWMLS board of directors, emphasized that sellers “must focus on the condition, amenities and pricing of their properties in order to obtain a sale in this very strong buyer’s market.” She also suggested buyers who procrastinate while waiting for a better time to purchase may risk looking back in hindsight bemoaning the opportunity that passed them by.
Brokers also report some encouraging activity for newly built homes. “We see sales occurring in new construction where large builders have reset their prices to 2004 levels. Sales are brisk among first-time buyers in this market. These buyers know we are bouncing along the bottom in prices and have reach historic low interest rates,” Beeson reported.
The “Monthly Monitor” newsletter from Bothell-based New Home Trends, Inc. also said new home sales activity is trending up in the Puget Sound region. “The number of new construction home sales written in the last twelve months exceeds the previous year by 28.1 percent.
The Puget Sound area continues to show a demand for new housing,” the report concludes.
Industry officials believe interest rates, jobs and consumer confidence are critical to building momentum. “Consumer confidence is ebbing and that makes major purchases even more difficult to initiate or even contemplate,” observed Beeson. “If the job picture improves even slightly later this year, we will see an uncharacteristic uptick in sales in the final quarter,” he stated.
NAR, in its prepared statement, also addressed the employment picture. “There could be couple of additional months of slow home-sales activity before picking up later this year, providing the economy continues to add jobs.
We’ve turned the corner on home prices and they should remain fairly stable over the balance of the year, but we really need to see stronger job creation to have a meaningful recovery in
the housing markets,” according NAR.
MLS director Matt Deasy, managing broker of Windermere Real Estate/East, suggested some would-be buyers may not fully understand the advantages of today’s low interest rates.
Citing examples from Windermere’s affiliated mortgage company, Deasy said a buyer saves $374 a month on a $300,000 loan compared to three years ago. The principal and interest on a $300,000 mortgage at today’s rate of 4.375 percent would be $1,498. Three years ago, when the rate averaged 6.375 percent, the P&I payment would have been $1,872.
On a $400,000 loan, the savings would be almost $500 per month ($2,495 less $1,997 = $498). For the past 30 years, the average rate is approximately 9 percent, which puts the payment on a $300,000 loan at $2,414 – a difference of $916 per month.
“Buyers are motivated when they see these comparisons,” Deasy remarked. He also believes there’s a pent-up demand based on the number of pre-approvals for loans in the mortgage company’s pipeline. He expects many of these potential buyers “will pull the trigger” once rates or prices start edging up.
Bystanders are still waiting for a piece of the puzzle to fall in place, according to Wilson. For some, he said the missing piece might be jobs, the economy, confidence in the future or direction of the stock market.
J. Lennox Scott, chairman and CEO of John L. Scott Real Estate praised recent action to help households purchase homes in rural areas. “The Federal Government should be applauded for passing the legislation that will allow for recapitalization of the USDA's Single-Family Housing Guaranteed Loan Program,” he said. “Rural America has more than 50 million people nationwide, many of whom are in a strong position to buy a home, but lack the down payment funds required by conventional loan programs, he explained, adding, “The USDA loan program opens up opportunities to many of these buyers, bringing with it a proven track record of success and another step towards creating long-term housing sustainability."
Washington fared “4th best state” for building a nest egg and has the country’s most promising real estate market in the near term, according to an index created by U.S. News that considered each state’s housing market, unemployment rate, per capita income, and taxes. Citing data by Moody’s Analytics, the report indicated home prices in the state are expected to surge by “a whopping 6.6 percent per year” between 2010 and 2013.
Northwest Multiple Listing Service, owned by its member brokers, is the largest full-service MLS in the Northwest. Its membership includes more than 24,000 brokers and agents. The organization, based in Kirkland, currently serves 21 counties in Western and Central Washington.
Thursday, February 25, 2010
Great Time to Buy....and Sell?
Everyone knows that right now is a great time to buy a home. All you have to do is pick up a newspaper, watch TV, or just listen to anyone speak about the real estate market, and you have heard this fact over and over!
Most experts say that there is really no immediate or sustainable recovery in the short term. Since there are still literally millions of distressed properties (short sales, pre-foreclosures and bank owned properties) in the U.S., common wisdom says that we will continue to see prices drop in the next 12 to 18 mos. The price drops should be much less severe than we have seen thus far, but competition with "underwater" homeowners and banks trying to clear inventory off of their books is putting the average home seller at a disadvantage.
So, that leads us all to the conclusion that it is a buyer's market, right? Of course! However, that is not the entire picture. Sellers who need to sell still need to strategize; they need to leverage the benefits of the current market. What benefits, you say?
Consider the following 3 BENEFITS OF SELLING RIGHT NOW:
1) RATES ARE STILL QUITE GOOD, FOR NOW: The Fed has communicated its intent to raise rates. Even without this directive from the Fed, most economists and armchair financial analysts knew the rate hikes would be coming sooner rather than later. What this means to a home seller is that qualified buyers are less inclined to sit on the fence any longer. We are now seeing increased activity in the market, and there will continue to be activity while rates are as good as they are currently!
2) GOVERNMENT INCENTIVES ARE STILL IN EFFECT: The current government backed incentive programs ($8,000 first time home buyers and $6,500 for the "move-up buyers", see www.federalhousingtaxcredit.com ) says, in essence: If you are under a binding contract by April 30th, 2010 and closing by June 30th 2010, this money is available to you (see your mortgage professional for all details and qualification requirements)! That will get buyers moving too!
3) THE TIME OF THE YEAR TO SELL: Historically, we are coming into the best time of year to sell, and I mean NOW. Putting your home on the market in early to mid-spring is ideal as this is typically when the buyer are out in full force.
So, if you are thinking of making a move-up purchase, or if you just have to sell because life happens, the important thing to do is: Understand your advantages and hire a great full-service agent who will help you develop a strategy to sell intelligently, even in a less than desirable market.
Most experts say that there is really no immediate or sustainable recovery in the short term. Since there are still literally millions of distressed properties (short sales, pre-foreclosures and bank owned properties) in the U.S., common wisdom says that we will continue to see prices drop in the next 12 to 18 mos. The price drops should be much less severe than we have seen thus far, but competition with "underwater" homeowners and banks trying to clear inventory off of their books is putting the average home seller at a disadvantage.
So, that leads us all to the conclusion that it is a buyer's market, right? Of course! However, that is not the entire picture. Sellers who need to sell still need to strategize; they need to leverage the benefits of the current market. What benefits, you say?
Consider the following 3 BENEFITS OF SELLING RIGHT NOW:
1) RATES ARE STILL QUITE GOOD, FOR NOW: The Fed has communicated its intent to raise rates. Even without this directive from the Fed, most economists and armchair financial analysts knew the rate hikes would be coming sooner rather than later. What this means to a home seller is that qualified buyers are less inclined to sit on the fence any longer. We are now seeing increased activity in the market, and there will continue to be activity while rates are as good as they are currently!
2) GOVERNMENT INCENTIVES ARE STILL IN EFFECT: The current government backed incentive programs ($8,000 first time home buyers and $6,500 for the "move-up buyers", see www.federalhousingtaxcredit.com ) says, in essence: If you are under a binding contract by April 30th, 2010 and closing by June 30th 2010, this money is available to you (see your mortgage professional for all details and qualification requirements)! That will get buyers moving too!
3) THE TIME OF THE YEAR TO SELL: Historically, we are coming into the best time of year to sell, and I mean NOW. Putting your home on the market in early to mid-spring is ideal as this is typically when the buyer are out in full force.
So, if you are thinking of making a move-up purchase, or if you just have to sell because life happens, the important thing to do is: Understand your advantages and hire a great full-service agent who will help you develop a strategy to sell intelligently, even in a less than desirable market.
Friday, February 19, 2010
Welcome To Shannon Woodcock's Woodinville Real Estate Blog!
Hello Folks,
Welcome to my first blog! I will be focusing my blog posts on Woodinville real estate and events & happenings in the area.
My goal, and my passion, is Woodinville real estate, so, to that end, I want to provide as much useful information to buyers, sellers, market watchers and any other curious folks who want to know what is going on in this great community.
Woodinville is known for its wineries, green spaces, equestrian amenities, multiple outdoor recreation spots and awesome, friendly citizens! It is home to some of the best schools in the Northshore district and some of the best restaurants on the west coast. It really doesn't get any better than Woodinville!
Feel free to contact me and keep watching for future posts: shannon@thecascadeteam.com . I also invite you to visit my real estate brokerage's website to find out why we are simply the best real estate company for both sellers and buyers: www.thecascadeteam.com . Thank you!
Welcome to my first blog! I will be focusing my blog posts on Woodinville real estate and events & happenings in the area.
My goal, and my passion, is Woodinville real estate, so, to that end, I want to provide as much useful information to buyers, sellers, market watchers and any other curious folks who want to know what is going on in this great community.
Woodinville is known for its wineries, green spaces, equestrian amenities, multiple outdoor recreation spots and awesome, friendly citizens! It is home to some of the best schools in the Northshore district and some of the best restaurants on the west coast. It really doesn't get any better than Woodinville!
Feel free to contact me and keep watching for future posts: shannon@thecascadeteam.com . I also invite you to visit my real estate brokerage's website to find out why we are simply the best real estate company for both sellers and buyers: www.thecascadeteam.com . Thank you!
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