Voters Strongly Value Homeownership

By an overwhelming margin, American voters, including those in Seattle, strongly value homeownership and believe tax incentives are appropriate and reasonable.

Three-fourths of voters who took part in a new nationwide survey affirmed their belief in homeownership, saying owning a home is the best long-term investment they can make.

Survey respondents also said they object to efforts to weaken or eliminate the mortgage interest deduction or diminish a federal role to help qualified home buyers obtain affordable 30-year mortgages.

“The American electorate is sending a clear message that owning a home remains a cornerstone of the American Dream and preserving a federal commitment to homeownership is essential to maintain a thriving middle class and get housing and the economy back on track,” said Neil Newhouse, a partner and co-founder of Public Opinion Strategies. His company conducted the survey in early January to gauge likely voters’ attitudes toward homeownership and housing policy issues.

The comprehensive survey of 1500 voters, conducted on behalf of the National Association of Home Builders by the Republican and Democratic polling firms of Public Opinion Strategies in Alexandria, Va., and Lake Research Partners in Washington, D.C., includes data from key political “swing areas.”

The poll shows that three out of four voters (both owners and renters) believe it is appropriate and reasonable for the federal government to provide tax incentives to promote homeownership. That sentiment cuts across regional and party lines, with 84 percent of Democrats, 71 percent of Republicans and 71 percent of Independents saying they agreed with the statement.

Two-thirds of respondents said the federal government should help home buyers to afford a long-term or 30-year, fixed-rate mortgage.

Nearly three fourths (73 percent) of voters oppose eliminating the mortgage interest deduction. These figures held firm across the political spectrum, with 77 percent of Republicans, 71 percent of Democrats and 71 percent of Independents against eliminating the mortgage interest deduction.

More than two-thirds of those polled (68 percent) would be less likely to vote for a congressional candidate who proposed to abolish the deduction, a figure that was virtually identical across all party affiliations (69 percent of Independents and 68 percent of Democrats and Republicans).

A majority of voters are also against proposals to reduce the mortgage interest deduction, eliminate the deduction for interest paid for a second home, limit the deduction for those earning more than $250,000 per year, scale back the deduction for home owners with mortgages above $500,000 and do away with the deduction for interest paid on home equity loans.

“With the 2012 election season in full swing, candidates running for the White House and Congress would be wise to heed the will of the American voters, who have expressed broad support for government policies that encourage homeownership and oppose efforts to make it more difficult to get a home loan and to tamper with the mortgage interest deduction,” said Celinda Lake, president of Lake Research Partners.

Among the poll’s other key findings:

• An overwhelming number — 96 percent — of home owners are happy with their decision to own and 84 percent who are “underwater,” or owe more on their mortgages than their home is worth, expressed the same sentiment.
• 79 percent of home owners would advise a family member or close friend just starting out to buy a home, and 69 percent of those who are underwater on their mortgage would offer the same advice.
• 74 percent said that despite the ups and downs in the housing market, owning a home is the best long-term investment they can make.
• Homeownership and a retirement savings program are considered by voters to be their best long-term investments.
• 78 percent of respondents said that owning their own home is very important to them.
• Nearly seven out of 10 voters who are not currently home owners (68 percent) said it was a goal of theirs to buy a home.
• Job uncertainty and saving for a downpayment and closing costs are the biggest barriers to buying a home.

The survey findings are consistent with the results of other public opinion surveys. In a New York Times/CBS News poll conducted in June, 89 percent said that homeownership is an important part of the American Dream and more than 90 percent indicated that it is important for the federal government to continue the mortgage interest deduction.

According to a Pew Research Study conducted last March, 81 percent of respondents agree that buying a home is the best long-term investment a person can make and 81 percent of renters surveyed said they would like to buy a house.

“Even in a down housing market, homeownership remains a core American value, with the vast majority of citizens who do not currently own a home saying they want to buy a home,” said Bob Nielsen, president of the National Association of Home Builders and a home builder from Reno, Nevada. “Those running for office in November need to understand that voters will not look kindly on any candidates who seek to dismantle the nation’s long-term commitment to homeownership.”

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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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.

Beautiful Country Rambler on 2.29 Acres With Huge Shop!

Large beautiful one story home on 2.29 acres with private setting. This home has been meticulously maintained with all the extras you were hoping for. Large open kitchen with slab granite counter tops looks out to huge family room.  We’ve loaded lots of photos for you to enjoy here.

Sparkling hardwood floors throughout, skylights, master bath with slab granite, jetted tub & walk-in closet. Large outdoor patio dining area & a shop to die for! This spotless shop is heated with lots of benches, large doors & lots of extra parking. Don’t miss out on this rare opportunity!

You should go check it out.  Directions : From I-5 take exit 210 (236th St.) and head east, left on 27th Ave NE (Tronson Rd), left on 258th, house on left side corner lot and is set back from road.

 

Struggling with your mortgage? Help may be on the way.

Did you listen to the President’s State Of The Union Speech the other night?

In his speech he said he was proposing major changes to the Home Affordable Modification Program or (HAMP) which is a foreclosure prevention program.

Among the changes, borrowers who are struggling because of debt beyond their mortgage will be eligible for a secondary evaluation with more flexible debt-to-income criteria, and eligibility will be extended to investor-owned homes that are used as rental properties.

The administration is also giving principal reductions a bigger role within the program, tripling incentives for investors that agree to write down an underwater borrower’s principal and offering these same incentives to the nation’s two biggest mortgage investors – Fannie Mae and Freddie Mac.

The deadline for HAMP will be extended for an additional year through December 31, 2013.

More Time Than Money? Measuring Your Motivation To Sell

Welcome to the Price VS Time dilemma that faces all homeowners. Pick a price, any price for your home. Now wait. Eventually, someday, someone will probably be willing to pay you that price. The question is – Do you have the time or the desire to wait for that to happen or would you rather sell your home now for a reduced amount of money?

The Price VS Time dilemma is the challenge of determining which is more important to you as a homeowner – selling quickly or selling for top dollar. Of course, it’s easy to bang the kitchen table with both fists and say I want both, but that’s unrealistic. In the real world every homeowner falls into one of two categories: the necessary seller or the optional seller. Let’s define these two vastly different types of sellers:

The Necessary Seller: Necessary sellers are homeowners who must sell their home and it’s not something they can avoid or put off. Perhaps they have a job transfer or job loss, a pending divorce, health condition, or a financial crisis that is causing them to sell. Regardless of the reason, they need to sell, and the faster the better.

The Optional Seller: Optional sellers are homeowners who have made the choice to sell. They aren’t forced to move, they simply would like to make a housing change. Perhaps they want to upgrade to a newer home, a larger property, or just as likely, maybe they are selling to travel or move closer to friends and family. The bottom line is it will be inconvenient if they don’t sell, but the world won’t end.

So which kind of seller are you – a necessary seller or an optional seller? The answer to this question is key to determining how you resolve the Price VS Time dilemma, but be careful as it’s not as easy it might sound. For instance there are tens of thousands of necessary sellers across the nation who desperately need to sell their homes quickly, yet they act as if they are optional sellers.
These sellers list their homes for inflated prices and then are shocked, frustrated, or even angry that their homes fail to sell within their pre-set timeframe. Another wrinkle facing both optional and necessary sellers today is the issue of rapidly declining prices in many areas of the country. While in a typical real estate market an optional seller might hold out for top dollar, this strategy can easily backfire in today’s market as their home may be worth significantly less the longer they hold out for a higher price. In addition while many optional sellers may not be forced to sell, they may want to sell quickly because of other motivating factors. If this is the case they will need to adjust their pricing strategy accordingly.

If you are having a challenge determining just where you fall on the motivation scale ask yourself this follow up question. If I listed my home for 90 days and it did not sell, what would be my next step – adjust the price or give it a little more time? If your answer is to adjust the price, this would seem to indicate that selling quickly is more important for you. On the other hand if you feel more inclined to give it a little more time, top dollar is more than likely your primary motivator.

To unravel the Price VS Time mystery further sit down with me or Dave and give us an honest assessment of the reasons why you are selling. By reviewing what homes similar to yours have sold for in recent months and the time frame it took those sellers to sell, we can help you to set a pricing strategy that meets all of your needs.

The Murky Waters of Short Selling a Home

With residential real estate prices still depressed, sellers and buyers continue to find themselves navigating the murky waters of a short sale.

A short sale is a sale of property for less than the amount of the debt against it, and where the mortgage lender must agree to release its lien for less than what it is owed.

So why would a lender agree to such a sale? Because this is as good as it’s going to get. If the lender forecloses, it will incur additional costs and delays, and might have to evict its borrower.

In the end, the lender will receive less than what the short sale would produce. Thus, from the lender’s point of view, it’s better to have more money now than less money later.

For sellers, it’s important to understand that a lender’s agreement to release its lien for less than what it is owed does not mean the lender has agreed to forgive the remaining portion of the debt.

To the contrary, the lender may require that the seller sign a new note or an agreement modifying the repayment terms of the original note.

Or, the lender could file a lawsuit against the seller seeking a judgment for the unpaid balance of the original note. With a judgment in hand, the lender is then in a position to garnishee wages and bank accounts; have the sheriff sell the debtor’s possessions; and take other collection action.

If the lender does agree to forgive the balance of the debt — and this sometimes happens — the seller has another worry. Will the amount of debt being forgiven be treated as taxable income by the IRS?

In keeping with the tradition of the Internal Revenue Code, the rules here are technical and seem to change from time to time, so a property owner considering a short sale needs to check with a tax professional to determine the latest position the IRS has taken on this issue.

Because short sales are fraught with legal baggage of this nature, the Real Estate Division of the Washington State Department of Licensing and the Department of Financial Institutions have issued two bulletins about short sales. The DOL Short Sale Advisory is for home sellers but really should be for both sellers AND their Realtors/real estate brokers. DFI’s companion advisory is titled “Short Sale Guidance for Licensees” and contains many Q&As for both loan modification and short sale negotiation services.

Remember, Time is Not Your Friend when it comes to Short Selling your property. Call me today for solid answers to this very complex issue.

Should I stay or should I go?

I met with a couple the other night and they were facing some tough choices

Question: Should We Walk Away From Our Home?

They bought a home at the height of the market and now it is worth less than they paid for it. Not only has their value dropped, but they owe more to the mortgage company than the home is presently worth.

They both have good jobs and are not behind in our mortgage payments. But some family members are saying they should walk away. That it’s not a big deal, and they could start over. Is it really that easy? Should they walk away from their home?

Answer: You need a place to live. There are plenty of good reasons to own a home. For another, you made a promise to repay a loan, and most people feel an ethical, if not legal, obligation to follow through on their word. It’s a matter of personal integrity.

And yet another reason is markets move in cycles. You can’t time the real estate market. Eventually, what goes down comes back up. Historically, real estate values appreciate over time.

You have better alternatives to Buy and Bail.

Internet Sites for Walking Away From Your Home

For some people, walking away is the only solution because they can no longer afford to make an increased mortgage payment due to an adjustable-rate mortgage loan. So, they look online for a solution.

There are no honest solutions online from these walkaway profiteers. These are companies that prey on troubled borrowers’ misfortune and perpetrate the myth that walking away and going into foreclosure is a logical, foregone alternative.

You don’t need the help of an online company to help you do what you can do for yourself. Don’t line the pockets of opportunists. There are plenty of nonprofit organizations that can help you negotiate with your lender or offer up other viable options, and they don’t charge you:

You don’t need the help of an online company to help you do what you can do for yourself. Don’t line the pockets of opportunists. There are plenty of nonprofit organizations that can help you negotiate with your lender or offer up other viable options, and they don’t charge you:

• National Credit Foundation for Credit Counseling
• Hope Now
• HUD Approved Counseling Agencies

You can also find local nonprofit agencies that will give you free advice regarding foreclosure. Call your local council member’s office to get this information.

Foreclosure Scammers – If you fall behind on your payments, suddenly, plenty of foreclosure scams will find you. These companies will strip title from you faster than you can say, “What’s a quitclaim deed?” Don’t do business with them. Call a trusted friend or a real estate lawyer before agreeing to accept “help” from a company who wants to steal your home by making promises it can’t fulfill.

Stopping Foreclosure – If you’ve reached the point where a Notice of Default has been filed and you are headed into foreclosure, there are ways to stop foreclosure. Again, deal with reputable companies that don’t have a dog in race. Ask yourself, if the company stands to profit from helping me, how much help is it likely to offer?

Bottom Line on Foreclosures – Foreclosures will ruin your credit. That derogatory credit will stay on your credit report for 10 years. Short sales affect credit in an identical manner. Doing a short sale won’t save your credit report.

You may qualify to buy another home in two to three years, but the interest rate offered to you will be higher. If you are facing a situation like this and have questions, don’t hesitate to call me. We have been helping people in this area for many years and we can help you too.

Plan now for your housing concerns after retirement and beyond

Do you remember when 50 was waaaay old? I sure do. Now it seems rather youthful eh! Anyway, one of the major decisions facing us “older folks” is where to live in our later years.

Anyone over 60 (not me – yet) who has grown children should be developing a plan for where to live when they’re 75, 85 and even older. Like solid retirement-investment programs, your housing plan can be sidetracked by all sorts of things like recessions and personal issues. The downturn in the Seattle housing market and nationwide of the last few years doesn’t help, either.

When it comes to housing decisions, it’s been shown that people, who thought about the issue and planned accordingly, fared better when it came to housing decisions. In a 2009 study, Boston College’s Center for Retirement Research analyzed information about moves made between 1992 and 2004 by people who were 51 to 61.

The study looked at all moves made during the period and reviewed the reasons people gave for relocating. Those who tended to be in control of their own move were classified as planners. They tended to move to get a better location or home because of retirement or financial reasons.

People who said they had been forced to move because of family or health issues — the death of a spouse, a divorce, poor health — were classified as reactors.

Having a financial cushion is, of course, a big help in providing some control over the timing of their move and the ability to carry out their plan even when things go less than perfect. It should come as no surprise that setting aside money to complete a move should be part of your plan. But so should doing some homework:

• Where do you want to live?
• What’s the housing market like there?
• How will the cost of homeownership change in your new home?
• Can you afford these outlays in retirement?
• What’s the minimum amount you need to get from selling your current home?
• What’s the likelihood of receiving this amount, and are there home-improvement projects you need to undertake to increase the net proceeds from selling your home?

In the study, planners tended to have choices and fared better even if confronted with the kinds of problems that forced reactors to move. Reactors didn’t have the same range of choices.

“Those moving for retirement reasons are more educated, better off financially, more likely to be married and less likely to be in poor/fair health,” researchers said. “Those moving for health or family reasons have the lowest educational-attainment level, the highest incidence of poor/fair health and the lowest level of income and wealth, as measured by Social Security, housing and nonhousing wealth.”

Reactors lost an average of $26,000 in home equity when they moved. That’s explained, in part, by the fact that a third of them did not buy another home and either rented or moved in with relatives.

Planners, by contrast, gained an average of $33,000 in home equity when they moved, and only 18% of them did not buy another home. They had more choice and control and wound up improving their financial situation.

Older people who felt forced to move tended to include those who were recently widowed or divorced and those diagnosed with a new health condition, researchers said. “Surprisingly, the other shocks — being hospitalized or reporting worsened health, entering into a nursing home and losing a job — do not significantly impact the probability of moving in these households with at least one shock. Thus, again, it seems that family structure is a very important factor in these households’ decisions to move.”

During the period studied, about 30% of older people moved out of their homes, and major factors cited were family considerations, financial matters, wanting a better location or type of house and retirement.

Health was not cited as a major cause of moves, but researchers speculated that this might be because even the oldest people included in the study were only 73 when it ended.

Among people who moved, about 60% stayed within 20 miles of their former home, 20% moved up to 200 miles away and a comparable number moved farther away. A mass exodus to sunnier locales was not a major driver of relocation decisions. Aging in place continued to be the overwhelming first choice.

Many of our clients are facing some of the issues I mention here. Many have parents or others they really care about. If you or someone you think could use our assistance, please introduce them to us. We’d love to help.

The 10 Most-Searched Real Estate Markets Online Might Surprise You

Daily Real Estate News | Monday, December 19, 2011

Seattle didn’t make the Top-10 List! Chicago continued to hold onto the No. 1 spot for most searched for real estate market at Realtor.com in November. What other markets did potential home buyers have their eyes on last month? Realtor.com releases its top search ranking from November based on 146 metro areas.

The following are the 10 top-searched metro areas from November at Realtor.com.

1. Chicago

Median list price: $192,900

2. Detroit, Mich.

Median list price: $84,900

3. Los Angeles-Long Beach, Calif.

Median list price: $329,000

4. Phoenix-Mesa, Ariz.

Median list price: $164,700

5. Atlanta

Median list price: $156,900

6. Philadelphia, Pa.-N.J.

Median list price: $229,900

7. Tampa-St. Petersburg-Clearwater, Fla.

Median list price: $144,200

8. Las Vegas

Median list price: $122,000

9. Dallas

Median list price: $194,900

10. Riverside-San Bernardino, Calif.

Median list price: $199,000

Source: Realtor.com