Home Sales Asking prices up in 86 of 100 largest markets

Asking prices of homes listed for sale on real estate portal Trulia.com in January were up from a year ago in 86 of the 100 largest U.S. metros, including Seattle, according to a monthly report released today.

The report, which covers roughly 4.5 million for-sale and for-rent properties listed on Trulia through Jan. 31, showed asking prices up 5.9 percent from a year ago, and growing by a seasonally adjusted 0.9 percent from December to January — the biggest month-over-month gain since March 2012.

In some markets, the strong growth in asking prices doesn’t necessarily indicate that worries are over, said Jed Kolko, Trulia’s chief economist.

“In many local markets today, dramatic price gains can mask serious red flags,”Kolko said in a blog post. “Strong job growth, low vacancy rate, and low foreclosure inventory — not huge price gains — are signs of a healthy housing market.”

Signs of a healthy housing market

Trulia identified San Francisco, San Jose, Seattle, Denver and Salt Lake city as “booming” markets with strong fundamentals.

Find out just how much your house is worth in today’s market.  No pressure, obiligtion or fine print.  Just good solid information you can trust.

Seattle ninth-best U.S. market for home sellers: Report

Seattle is the ninth-best market in the country for homeowners selling their home, according to a new report.

This is great news if you are thinking if selling your home anytime soon, and another reason to jump in if you’re buying!

According to Zillow Inc. reports that only home sellers in eight other U.S. cities have more leverage than Seattle home sellers. Zillow describes a seller’s market as one where homes are on the market for a shorter time, price cuts occur less frequently and homes are sold at prices very close to (or greater than) their last listing price.

In markets like Seattle, “sellers … are squarely in the driver’s seat with their homes selling within days of listing, often after bidding wars that increase the sale price above the asking price,” said Stan Humphries, Zillow chief economist, in a statement.

If you’d like to know what’s going on in your neighborhood, on your block for similar homes just like yours, call me for a no-obligation consultation.

Report: Seattle Home buying Most affordable in decades

http://www.mynorthwesthomes.com

Home prices are at rock-bottom and so are mortgage rates.  According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index hit a record level of affordability.

Buying a home is now more affordable than it has been in the last twenty years.

The index shows that 75.9%  families earning the national median income of $64,200, could afford a new or existing homes.

That was the highest percentage recorded in the 20-year history of the index, and a sharp increase from just three months earlier when 72.9% of all homes sold were considered affordable.

Today’s report indicates that home ownership is within reach of more households than it has been for more than two decades.

Those who obtain a mortgage, will be able to take advantage of rates that seem to hit a new low every week. This week interest rates for 30-year loans averaged a record low of 3.87%, according to Freddie Mac.

Where the deals are

The Seattle area is more affordable as well with 67.5 percent of homes within reach of those earning the median income of $85,600. That’s the highest number recorded since the index started in the first quarter of 1999.

Youngstown, Ohio is the most affordable major metro area in the nation to buy a home, according to the NAHB. The faded steel town, located in eastern Ohio, could be on the verge of an economic renaissance with new gas drilling techniques that could help exploit nearby gas reserves, according to the report.

There, 95.1% of homes sold during the quarter were deemed affordable to typical local households earning the area’s median family income of $54,900.

The other metro areas near the top of the list included Lakeland, Fla., Modesto, Calif., Harrisburg, Pa., and Toledo, Ohio.

Among small housing markets, Kokomo, Ind. had the highest housing affordability index with more than 99% of all homes sold there affordable to typical families. Fairbanks, Alaska, Cumberland, Md., Lima, Ohio, and Rockford, Ill. were all very affordable as well.

In other cities in Washington state, Spokane was the most affordable with 82.2 percent of homes within reach of those earning the median income of $60,300. Olympia recorded 81.8 percent; Tacoma, 78.5 percent; Bremerton-Silverdale, 70.1 percent; Bellingham, 69.7 percent; and Mount Vernon-Anacortes, 60.5 percent.

New Yorkers could only shake their heads at the housing opportunities available outside their metro area. Just 29% of the homes sold in the New York metro area during the last three months of 2011 were affordable for the typical local family.

That’s the lowest level in the U.S. — even though locals typically earned $67,400, roughly $3,000 more than the national median. It was New York’s 15th consecutive quarter as the least affordable metro area.

Nearly as expensive are housing markets in Honolulu, San Francisco, Santa Ana, Calif., and Los Angeles.

We’d love to be your trusted source for news, information and all things real estate. Call Dave and his team today at 425-330-0663 and start planning your house warming party!

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Where have prices risen the most in the last month?

Median list prices nationwide have risen 4.05 percent on a year-over-year basis, according to November housing data of 146 metro areas. Fewer cities are reporting year-over-year list price declines, “suggesting a growing optimism on the part of sellers about 2012 market conditions.”

So where have prices risen the most in the last month? The following are the 10 cities that saw the largest median list price increases from October to November.

1. Central Fla.-Regional Statistical Area.  Month-to-month median increase: 5.63 percent. Year-over-year increase: 14.27 percent. Median list price: $169,000

2. Phoenix-Mesa, Ariz.  Month-to-month increase: 4.46 percent. Year-over-year increase: 10.54 percent.  Median list price: $164,700

3. Miami, Fla.  Month-to-month increase: 3.60 percent. Year-over-year increase: 29.50 percent. Median list price: $259,000

4. Tampa-St. Petersburg-Clearwater, Fla.  Month-to-month increase: 3 percent. Year-over-year decrease: -2.50 percent.  Median list price: $144,200

5. New York, N.Y.  Month-to-month increase: 2.71 percent.  Year-over-year decrease: -2.57 percent.  Median list price: $379,000

6. Fort Myers-Cape Coral, Fla.  Month-to-month increase: 2.69 percent.  Year-over-year increase: 21.63 percent. Median list price: $224,900

7. Iowa City, Iowa  Month-to-month increase: 2.50 percent.  Year-over-year increase: 3.02 percent.  Median list price: $204,900

8. Tucson, Ariz.  Month-to-month increase: 2.41 percent.  Year-over-year increase: 2.41 percent.  Median list price: $174,000

9. Sarasota-Bradenton, Fla.  Month-to-month increase: 2.13 percent.  Year-over-year increase: 16.56 percent.  Median list price: $240,000

10. West Palm Beach-Boca Raton, Fla.  Month-to-month increase: 1.86 percent. Year-over-year increase: 15.26 percent. Median list price: $219,000

We have the numbers on the Seattle area as well.  Click here to find out.

Housing market “healing itself,” numbers are “astoundingly good”

Pending sales may not appear to be much higher than 2011 (up 13.7 percent in January), but the numbers are very good, considering such factors as harsh weather and the tax credits that boosted sales at this time a year ago.

The latest figures from Northwest Multiple Listing Service show pending sales in January outgained the same month a year ago by 739 transactions. Brokers reported 6,132 mutually accepted offers in January to start the year with a 13.7 increase over the January 2011 figure of 5,393 pending sales.

Given that we lost a week with some of the worst weather in 16 years, the numbers are astoundingly good.  This is the first January in four that we can make a reasonable year-over-year comparison.  The numbers are no longer skewed by the artificial stimulus of various tax credits and incentives that date to 2009.  The improvement in the numbers show that the market is healing itself and standing on its own.

Declining inventory, extremely low interest rates, and positive job growth are contributing to rising optimism among industry professionals, but Northwest MLS directors say distressed properties continue to be a drag on the market’s recovery.

Inventory is down almost 20 percent from a year ago. Brokers added 6,666 new listings to inventory during January, with single family homes making up about 85 percent of those additions. At month end, MLS members reported 26,226 total active listings; a year ago, there were 32,647 active listings.

Despite the smaller selection, the price choices overall are wide ranging, from a low of $13,000 for a manufactured home in Sultan to an asking price of $26.8 million for a waterfront home on Mercer Island.

Snohomish County reported the sharpest drop in inventory, with the selection at about two-thirds of the year-ago levels (a decline of 32.6 percent). Several of the 29 MLS map areas within King County also reported declines of 30 percent or more in the total number of active listings.

The ongoing reduction of available inventory is still impacting the market.

The lower number of new listings coming on the market is due to a combination of factors, said J. Lennox Scott, CEO and chairman of John L. Scott Real Estate.  Among them are underwater sellers (who owe more on their homes than the current value), sellers with equity holding off for higher prices, and the lack of new construction/condominiums. The low number of new listings combined with the increase in sales activity is creating the shortage of homes for sale in specific areas and price ranges,” Scott reported.

Northwest MLS reported 3,469 closed sales last month, up nearly 8.2 percent from a year ago when members reported 3,207 completed transactions.

“A sellers’ market has returned in the areas close to the job centers of Seattle and Bellevue, up to the one million dollar price point,” Scott noted, adding, “We are also seeing the same situation in the more affordable price ranges in the surrounding market areas, caused by a shortage of inventory and healthy-to-strong sales activity.”

Echoing that sentiment was Northwest MLS director Frank Wilson, who said, “Inventory in many price points and locations is dropping and what buyers are finding are overpriced or under staged homes.” Wilson, the branch managing broker at John L. Scott Real Estate in Poulsbo, also foresees upward pressure on prices as choices become narrower.

For now, however, prices are showing mixed signs –stabilizing in some areas while declining or increasing in other areas.

The median price for last month’s closed sales of single family homes and condominiums (combined) was $214,990, down about 11.7 percent from a year ago when the median selling price was $243,500. The price changes ranged from year-over-year increases reported in five counties (Ferry, Grant, Kittitas, Mason, and Pacific) to declines of up to 40 percent (in Clallam and Grays Harbor counties).

“Price increases are muted by short sales and foreclosures that are causing low appraisal values,” observed Scott.

MLS directors Jacobi and Wilson agreed.

“We are simultaneously seeing the continued rise in pending and closed sales,” Jacobi stated. “Usually pent up demand and rising sales means that prices will be going up. But, unfortunately, that isn’t the case thanks to the high level of distressed properties that continue to drag down the entire market,” he explained.

“What is tempering our real estate recovery in Kitsap and much of Puget Sound are the short sales and REO properties that are on the market and the way the banks are dealing with their sales process,” said Wilson, while pointing to several encouraging signs.

All the pieces are in place for a more normal market in much of Kitsap, Wilson said. “With pending sales up 17 percent in Kitsap, buyers are taking advantage of the values this market is offering and the extremely low interest rates. If this trend continues we should begin seeing price appreciation as we progress into the year,” he remarked.

Improving numbers show the artificial stimulus of the tax credits was not the key to the recovering market, suggested Anderson. “Instead, today’s affordability has buyers in all price segments returning – and feeling more confident about the future.”

Northwest MLS director Darin Stenvers believes “the perfect storm is brewing.” He said the pent-up need for homes in good condition is creating shorter market times and sales close to the original asking price. “It is a great time for sellers who have been waiting,” said Stenvers, the office managing broker at John L. Scott Real Estate in Bellingham.

“The market is almost done with the needed correction,” Stenvers stated, adding, “Distressed homes and REOs are not going away fast but have slowed and should soon level off.” He also foresees a loosening of overly restrictive lending guidelines.

Reflecting on a real estate career that dates to 1990, Wilson said, “I remember at the height of the market people would say ‘I wish I would have bought some waterfront back in 2001…or I wish I would have picked up a couple of rentals a few years ago’.”  For these people, “the clock has been rolled back and you now have an opportunity to purchase real estate near the bottom of the market,” he suggested.

Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership includes more than 22,000 real estate brokers. The organization, based in Kirkland, Wash., currently serves 21 counties in Washington state.

Market Update 2-10-2011

The median sales price for homes in Queen Anne (ZIP code 98119) in Seattle from Nov 11 to Jan 12 was $352,500 based on 54 sales. Compared to the same period one year ago, the median sales price decreased 22.9%, or $104,500, and the number of sales decreased 8.5%. Average price per square foot for homes in 98119 was $346, a decrease of 12% compared to the same period last year. There are as of this post date, 73 resale and new homes in ZIP code 98119, as well as 29 homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The average listing price for homes for sale was $692,726 for the week ending Feb 01, which represents a decrease of 9.2%, or $70,487, compared to the prior week. Popular ZIP codes in Seattle include 98103 and 98115, with average listing prices of $419,755 and $400,276.

Got a Million?

In 2011 in King County, 735 houses sold for 1 million or more.  471 were on the Eastside.  The most expensive one sold for $14.75 million in Hunts point.  Snohomish County saw 18 homes sell for 1 million plus.

Is The Seattle Housing Market Improving?

OK everyone is asking “is the real estate market better yet?” I say what area, what street, heck what time is it.  The point is it’s changing folks.  Mostly improving.  There is still a room to grow but we are seeing more people jump into the market.

The National  Association of Home Builders has an “Improving Markets Index” in an effort to track cities with improving markets. The good news is that the index grew last  month, with 40 cities being added to the 41 already on the list.

To make the list, a city has to show recovery as measured by three criteria:  housing price appreciation, job growth, and single-family housing permits.

By those measures, large metro areas such as Dallas and Philadelphia are  recovering, as are smaller cities including Denver, Honolulu, Indianapolis, and  Nashville.

We are seeing some real improvements in the Seattle market as well.  In some areas, multiple offers are in play.  If you’d like more information about your neighborhood, call us today.

Pending Home Sales, after hitting a 19-month high in November, dipped a bit for December, yet came in 5.6% above where they were a year ago

QUOTE OF THE WEEK…“Before everything else, getting ready is the secret of success.” –Henry Ford

INFO THAT HITS US WHERE WE LIVE…Getting ready for a recovery could be the theme of last week’s housing reports.

Pending Home Sales, after hitting a 19-month high in November, dipped a bit for December, yet came in 5.6% above where they were a year ago. The National Association of Realtors chief economist observed, “Even with a modest decline, the preceding two months of contract activity are the highest in the past four years outside of the homebuyer tax credit period.”

Thursday saw December New Home Sales drop 2.2%, to a lower-than-expected 307,000 annual rate. Yet sales remain in the narrow range they’ve occupied since May 2010. And the best news was that new home inventories dropped to 157,000, the lowest level on record, since 1963. Unsold new homes under construction and unsold completed new homes are at or near record lows. Experts say this is what’s needed to get ready for a sustained housing recovery. Finally, the FHFA price index for homes bought with conforming mortgages was UP 1% in November.

BUSINESS TIP OF THE WEEK… Our motivation colors our work. People driven by money can appear self-serving. But people driven to do the best for their clients usually come off as effective and valuable.

>> Review of Last Week

UP AND DOWN… It was a week where investors couldn’t decide if they felt positive or negative about the economy and the major market indexes reflected this, with two of them heading up for the week but the third one ending down. The big news? The Fed extended its pledge to hold interest rates exceptionally low — from mid-2013 to late 2014. And for the first time, the FOMC set a specific inflation goal: 2%. Also for the first time, the Fed released the rate expectations of each member. The median showed no change this year or next and a hike to only 0.75% by the end of 2014.

Other good news came with Durable Goods Orders, up a better than expected 3% for December. Unfortunately, this was followed by initial jobless claims, up 21,000 for the week, to 377,000. Finally, the Advance GDP estimate for Q4 came in at a 2.8% annual rate. This was better than Q3, but less than expected. Economists were also disappointed that a large part of the increase was only due to an unexpected buildup in inventories.

For the week, the Dow ended down 0.5%, at 12661; the S&P 500 closed up 0.1%, at 1316; and the Nasdaq gained 1.1%, to 2817.

The Fed’s announcement it will hold rates low even longer, plus their inflation target, did wonders for bonds. The FNMA 3.5% bond we watch ended the week UP 1.01, to $103.22. National average mortgage rates edged up a bit in Freddie Mac’s weekly survey of conforming mortgages, though they’re still at historically low levels. Experts put this to the improving housing market data.

DID YOU KNOW?…Tuesday’s Employment Cost Index measures changes in wages, benefits and bonuses for a group of occupations. It’s an inflation indicator because prices can go up with increased labor costs, unless offset by productivity gains.

>> This Week’s Forecast

INFLATION, MANUFACTURING, JANUARY JOBS… Hot buttons this week touch all the hot topics. Monday we see the Fed’s favorite inflation measure, Core PCE Prices, expected to stay within the central bank’s guidelines. The manufacturing sector gets covered in Tuesday’s Chicago PMI, forecast down a trifle, but Wednesday’s ISM Index is predicted up for the month.

The hottest of the hot data comes Friday, with the January Employment Report. The forecast is for a smaller gain in payrolls than last month’s. Historically, as employment improves, it pulls housing along with it.

>> Federal Reserve Watch

Forecasting Federal Reserve policy changes in coming months… At last week’s FOMC meeting, the Fed extended its goal of keeping the Funds Rate super low through late 2014. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.

Current Fed Funds Rate: 0%–0.25%

After FOMC meeting on:	Consensus
Mar 13	0%–0.25%
Apr 25	0%–0.25%
Jun 20	0%–0.25%

Insure The Value Of Your Home? Is This a Sign Of Things To Come?

Insure The Value Of Your Home? Is This a Sign Of Things To Come?

Hmmm . . . Are we begining to wise up?  Are we starting to think outside the box?  Take a look at what this company is doing in Ohio.  Could we see this elsewhere?

Property values have been hit big time in virtually everywhere in the United States.  Seattle real estate has not been spared.  But this is true especially in northeast Ohio. Thousands have moved out of the region, Cuyahoga County foreclosures continue at more than 900 per month and a growing number of vacant homes degradate dozens of neighborhoods.

Consumer confidence is key in getting people to buy homes in large numbers, and some say new financing options are one way to do it.

Equity Lock Solutions , a company based both in Ohio and Denver, has announced a new product called “Home Price Protection.”

The product allows a homeowner to “lock-in” a home value, based on the home price index, established by the  Federal Housing Finance Agency.

A homeowner that signs up for the service can make monthly payments and protect their homes value for up to 15 years.

An example, a homeowner who’s house is worth $200,000, who signs up for Home Price Protection, who then wants to sell three years later. However, the house is now worth just $180,000, according to “home price index.” After the sale of the house, the owner with Home Price Protection would be issued a $20,000 check to make up for the loss in value.

Homeowners buying the protection must pay a one-time contract fee of about 2 percent of their homes value, this fee can be spread out over 60 months, making the average payment about $75 per month for coverage on a $200,000 home.

“You want to protect the family home, you want to make sure the value will be there when you need to move for that next job,” said Equity Lock Solutions President Ted Rusinoff.

Rusinoff pointed to Syracuse New York, a city that has offered a similar product for 10 years. Rusinoff reports home values in Syracuse have only dropped 2 to 3 percent, partly because of the consumer confidence fostered by home price protection products.

“That product lets all homeowners feel comfortable that the value of their home will be there,” Rusinoff said. “Homeowners then start upgrading their houses, and it allowed neighborhood values to maintain and grow.”

Ohio’s Department of Insurance is also examining other products that also essentially insure home values.

Insurance companies are looking to get state approval for products that will allow homeowners to buy insurance against drops in the real estate market.

We are going to watch this trend closely and keep you informed.  Just another way we are watching out for you!