This infographic shows how home prices have appreciated over the last thirty years. How many investments provide a great return on investment and provide you a place to live?
If you are considering purchasing a home for the first time of the tenth time, give us a call, we would love to speak with you about your investment goals.
Steve Hill and Sandra Brenner
Winderemere Real Estate
Best In Client Satisfaction
Call/Text 206-769-9577
Nine must-dos after loan preapprovalWhile it may seem obvious that you need to keep paying your bills during the period between a loan preapproval and your settlement date, some would-be borrowers neglect their finances in the excitement of shopping for a home.
"A preapproval letter is typically valid for 90 days but with the disclaimer that if anything changes with your finances it can impact your preapproval," says Patricia Napgezek, a senior loan officer with Inlanta Mortgage in Brookfield, Wis. "After 90 days, we can do a renewal letter with a recheck of your pay stubs and credit."
Read the entire article HERE.
If you are considering buying a home or refinancing, give us a call, we'd be ahppy to put you in touch with a reputable lender. It's not always the best rate that gets you the best deal!
Steve Hill and Sandra Brenner
Windermere Real Estate/FN
Client Satisfaction All-Stars
206-769-9577
by
I spend a lot of time defending the work habits and dedication of my generation. Yet, I still wonder at times why we aren’t all as cynical and jaded as the media would like to portray us.
Everything from the PRISM scandal to the everyday politically motivated Washington gridlock on items such as student loan rates have left many of us feeling weary of our place in the political and economic infrastructure.
In Walter Hickey’s article on Business Insider, he quoted President Obama in his recent interview with Zillow CEO Spencer Rascoff as saying:
“Jacob looked like a pretty young guy, renting is probably the best option.”
While I don’t think this quote was meant to minimize the economic struggle of Millennials, it just seems to add to the stream of media attention that fails to see the impact we will have on the overall recovery.
We are at a turning point in our society. Prices have bottomed, affordability indexes are low, and jobs are coming back on line.
No matter your age, if you have the financial ability to buy a house, do so right now. Not a year from now…right now. By the time the media finally says Millennials are buying houses, they will be a year behind in their reporting.
Whoever thinks they have a crystal ball is lying to you. No one knows exactly what will happen with the government’s bond buying programs or new housing starts and inventory. However, we do know this:
To my Co-Gen-Yers who may come across this blog:
Lifelong wealth is created with a certain amount of risk; however, if you fail to take that risk you will always be stuck in your present situation.
Years from now, there will be people who look back and think to themselves, “I should have bought when I could…That was the perfect time to buy.”
Every type of Real Property is going to appreciate over a 10-20 year period, from commercial buildings, to multi-units, to single family homes.
Our generation is set to play an important role in our economy as there is an ever-growing necessity for technologically advanced degrees and laborers. It is up to you as to whether or not you want this economic growth to shape the rest of your own personal life as well.
Much like the greatest generation at the close of WWII, we have a duty to re-establish a vibrant economy. No one else will do it for us. I realize the economy has not yet fully recovered. But, if everything the media and the politicians say is true, none of us will own houses or have babies until our 50s.
No matter what any pundit says, it is going to take young business people, humanitarians, laborers, and entrepreneurs to take the lead and recreate an America that the Greatest Generation would be proud of.
Leave the cynicism to someone else. It fails in action as much as it does in belief.
Now, it’s our turn.
Considering buying a home? Give us a call, let us share how we can help you find your new home and save you time and money.
Steve Hill and Sandra Brenner
Five Star Professionals
Windermere Real Estate/FN
Call/Text: 206-769-9577
Just a quick video you might watch in case you're wondering
what an "REO" is…
VIDEO LINK: WHAT IS AN REO?
(had someone ask me the other day, so figured I'd
share this…)
If you'd like a weekly updated list of new "REO/Bank Owned" properties
that hit the market in the Seattle area, just send me an email and I will send them to you the moment they hit the Northwest MLS..
Steve Hill
Five Star Real Estate Professional
Windermere Real Estate
Call/Text: 206-769-9577
WASHINGTON (July 25, 2013) – Americans overwhelmingly believe owning a home is a good financial decision and a majority of renters say homeownership is one of their highest priorities for the future, according to a survey by the National Association of Realtors®. The 2013 National Housing Pulse Survey also found that renters are thinking more about purchasing a home now than in past years, while the number of people who say they prefer to rent has declined.
“Homeownership matters to Americans who consistently realize the many benefits it provides to communities, families and the nation’s economy,” said NAR President Gary Thomas, broker-owner of Evergreen Realty, in Villa Park, Calif. “Due to high housing affordability and today’s interest rates it makes sense for people to consider homeownership over renting. In fact, in many parts of the country it’s cheaper to own a home than to rent one. Therefore, it’s no surprise that renters recognize that owning a home offers tremendous long-term benefits and is an investment in their future.”
The survey, which measures consumers’ attitudes and concerns about housing opportunities, found eight in 10 Americans believe buying a home is a good financial decision and more than two-thirds (68 percent) said now is a good time to buy a home. Since the last survey in 2011, more renters are now thinking about purchasing a home, up from 25 percent to 36 percent, while those who say they prefer to rent dropped from 31 percent to 25 percent. Half of renters say that eventually owning a home is one of their highest personal priorities, up from 42 percent to 51 percent.
Attitudes toward the housing market have also improved over the years. Nearly four in 10 Americans (38 percent) identified an increase in activity within their local housing market in the past year, compared to just 22 percent who reported a slowdown in activity. By contrast, in 2011 some 51 percent reported a slowdown in activity. There was also less concern than in the past about the drop in home values; a majority said housing prices in their area are more expensive than a year ago.
In addition to these improved attitudes about the housing market, respondents also showed an improved outlook about the national economy. Just under half (48 percent) said job layoffs and unemployment are a big problem, down from 61 percent in 2011. The concern over foreclosures showed a steep decline from 2011 when 47 percent characterized distressed properties as “very” or a “fairly big problem”; today only 29 percent say it’s a problem.
For many Americans, the perceived obstacles to homeownership have remained unchanged over the years; low wages, student loan debt, and little savings for a down payment and closing costs continue to make it difficult for many to become homeowners. Respondents across the board – young and old, college graduates and non-graduates – consider student loan debt to be a large obstacle.
“Student loan debt is a concern for many consumers in today’s market, especially first-time buyers,” said Thomas. “Buyers with student loan debt may find it difficult to access mortgage credit, as well as save for a down payment. Pending mortgage finance regulations requiring higher down payments could also contribute to the already tight lending environment. Realtors® are working with regulators to address this issue and are committed to making sure those who are willing and able to own a home have the opportunity to pursue that dream.”
When asked for reasons why homeownership is important, respondents’ top reasons underscored basic American values and freedoms; they were building equity, wanting a stable and safe environment, and the freedom to choose where to live. While these reasons have remained virtually unchanged since 2011, they do vary slightly according to demographics. The top scoring reason for African-Americans and Hispanics was that homeownership provides stability and a safe environment; women also placed more emphasis on environmental factors than men. Non-college graduates placed stronger emphasis on public schools, owning a home before retirement, and living in a safe and stable environment.
The 2013 National Housing Pulse Survey is conducted by American Strategies and Myers Research & Strategic Services for NAR’s Housing Opportunity Program, which aims to position, educate and help Realtors® promote housing opportunities in their community, in both the rental and homeownership sectors of the market. The telephone survey polled 2,000 adults nationwide and has a margin of error of plus or minus 2.2 percentage points.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
Considering buyuing a home? Give us a shout, we'd love to help you, Check out our client reviews HERE.
Steve Hill and Sandra Brenner
Windermere Real Estate/FN
206-769-9577
Remember the 10 percent down payment on a house? After virtually disappearing for years, it’s back.
Around the country, some lenders are offering 90 percent financing again on all loan types. For example, San Francisco-based RPM Mortgage resumed offering “piggyback” loans in the first quarter of 2013 after discontinuing them during the height of the credit crisis in late 2007, according to Vice President Julian Hebron. (A piggyback loan enables a home buyer to put only 10 percent down without having to buy mortgage insurance. This is done by getting two loans totaling 90 percent.)
In Monroe, NY, Rosalie Cook of Weichert Realtors says she is seeing buyer down payments range from all cash to as little as 5 percent. Mortgage lender Tom Gildea of Prospect Lending in Rockland County, NY agrees, saying that he’s doing loans with as little as 5 percent down “all day long.” Those 5 percent down deals are with private mortgage insurance, are only for conforming loans (less than $417,000) and are reserved for borrowers with excellent credit, verifiable income and little debt.
Before the credit crisis of the mid-2000s, getting a home loan was simple. Your down payment was small — if you even had to make one. To qualify, all you had to do was “state” your income and sign on the dotted line.
Of course, that was the kind of lending that got us into the credit crisis. After the bust, many lenders started requiring a minimum of 20 percent down. Coming up with that much money was a stumbling block for many would-be home buyers. In addition, buyers were already worried about the economy or were uncertain about their jobs, making buying a home not only difficult but also downright scary.
The result: Even though home prices had plummeted and mortgage rates were at historic lows, many potential buyers were forced to sit on the sidelines for years.
Today, many real estate markets around the country are heating up again. While the economic recovery still has its fits and starts, people are feeling confident about their jobs. They’re watching their 401(k) and stock portfolios climb back to pre-2008 levels. And so, they’re out looking for homes to buy again.
Mortgage lenders are seeing these trends, too, which is why they’re starting to ease down payment restrictions. This time around, though, lenders are much more discerning about who gets to put 10 percent down. As RPM Mortgage’s Hebron puts it: To qualify, your monthly housing, car, student loan, and credit card debt can’t be higher than 45 percent of your monthly income. And you must have a credit score above 700.
The good news is that more potential buyers who otherwise would have been shut out of the market, due to the lack of a 20 percent down payment, can now jump in.
Even if you have the 20 percent to put down, you might consider opting for a 10 percent down payment instead. For instance, if you’re buying a home that needs a lot of work, you could put 10 percent down and use the other 10 percent to finance improvements. You might even consider investing that 10 percent in stocks or mutual funds, though that comes with obvious risks.
A 10 percent down payment has its disadvantages, too. If you put just 10 percent down and home prices decline later, you could end up underwater — owing more on the mortgage than your home is worth. When that happens, you could be stuck in your home, unable to sell — just as so many homeowners were after the housing crisis kicked in around 2006-2007.
Also, if you have little equity and you go to sell, you could face another problem. The size of your loan, along with the costs of selling your property, could total more than the sale price, a financial hit that can be tough to absorb.
If you qualify for a 10 percent down payment, and it’s the only way you can get into a home, it may be worth the potential risks. Bottom line: Talk to your mortgage professional and real estate agent about your options. Think strategically and long-term about what you’re doing. Don’t just make a 10 percent down payment because you can.
Considering refinancing? Give us a call, we can help you.
Steve Hill and Sandra Brenner
Windermere Real Estate/FN
206-769-9577
Mill Creek, WA
Top 50 rank: 36
Population: 18,834
Originally a planned community built around a golf course, Mill Creek has been steadily growing in size for the past two decades. The area's strong schools (recently testing well above the state average) and affordable homes have been a big draw for families.
While most residents work outside of town, the commute to good technology and aerospace jobs in Seattle is just 30 minutes long. –S.M.
Mill Creek Real Estate Statistics HERE.
Curious about real estates in Mill Creek WA? Just ask me I live there!
Steve Hill
Best In Client Satisfaction
Windermere Real Estate/FN
425-737-9675
206-769-9577
Here's a quick link to some recently "price reduced"
properties in Seattle and Shoreline.
A recent price reduction might indicate that a seller
is becoming more motivated to accept an offer.
So keeping your eye on these properties might be
a great way for you (or someone you know) to find a great deal.
Here if you need me,
Steve
Windermere Real Estate/FN
206-769-9577
P.S. –> If you're an active investor or are considering a move sometime soon, just email me… and I can deliver you a daily update of this recent price reductions list…
If you tried to buy a home in Phoenix a year ago, you probably would have been able to land it for well under the asking price.
Those days are gone. In a city that was hit hard after the housing bubble burst in 2007, you’re more likely to encounter a bidding war for that split-level ranch on the cul-de-sac you had your eye on.
Prices have leapt 20 percent in the last year in Phoenix. Real estate agent Tucker Blaylock says they will keep rising as long as interest rates remain near historic lows, thanks to the Federal Reserve.
“You can borrow money so cheap it’s really pushing prices up,” he said. “A year or two ago, a buyer could bid 20- or 30-thousand under the list price and have a shot at getting it. Now sellers want list, or in some cases they get multiple offers and it’ll go above list price.”
It's not just Phoenix. The list of the hottest markets reads like the housing boom of the mid-2000s. In the past 12 months home prices are up 19 percent in Las Vegas. California hot spots include San Francisco (up 25 percent), San Diego (up 17 percent) and Los Angeles (up 19 percent.)
Nationwide, that momentum is dragging potential buyers off the fence, which is in turn feeding the higher prices, the experts say. Despite rising mortgage rates, demand for homes is surging with little sign of the bubble bursting anytime soon.
The latest monthly data from the widely followed Case-Shiller index showed home prices in May jumped 12.2 percent in the past year — the biggest yearly jump since March 2006 — supporting economists' views that the housing sector is one of the brightest spots for the economy.
In a handful of metro areas, housing is looking downright “bubbly,” according to Robert Shiller, co-founder of the index. “The cities that bubbled in the past are bubbling again,” he told CNBC. “To me, it’s seems partly psychological. They’ve seen it before and they’re ready for it again.”
But unlike the historic mid-2000s bubble, there are signs the latest price surge is more sustainable. One is that the mix of buyers is shifting from bottom-feeding investors to homeowners who plan to stay awhile. In Phoenix, “hot money” investors are cooling to new purchases even as prices keep rising, said Blaylock.
“It scares the guys who have been flipping stuff in the 100-to 200-thousand-dollar range that now they’ll have to pay 350,” he said.
(Read more: Home prices make biggest yearly jump since 2006)
And unlike the last bubble, mortgage lenders are much choosier when reviewing loan applications than the days when just about anyone with a pulse was approved.
Prices are also rising because the supply of homes for sale is getting tighter. Banks have shed much of their backlog of foreclosed properties. A four-year drought in home building, which is now beginning to ease, cut deeply into the supply of new homes.
One negative is that increasing mortgage rates could throw cold water on some of the hot markets. The average fixed rate on a 30-year mortgage hit 4.31 percent last week, up nearly a full percentage point since January, according to Freddie Mac.
“Once you put a five in front of it, it’s a different ballgame,” said Blaylock. “People have been so trained to this 3-5 (percent) range that five seems high.”
But so far, the home sales data indicate that home buyers are taking the relatively higher rates in stride, especially investors with a short-term horizon. New home sales rose 8.3 percent in July, as builders reported continued strong increases in foot traffic. That put the pace of June sales nearly 40 percent above the same month last year.
“Higher mortgage rates don’t appear to be denting new home sales,” said Paul Diggle, a housing economist with Capital Economics.
Video: Robert Shiller, co-founder of the Case-Shiller Index, breaks down the latest numbers on housing and which cities are "bubbling up."
That may be in part because, despite the recent jump in prices and mortgage rates, homes are still more affordable than they’ve been in decades, based on an index calculated by the National Association of Realtors. The index, which combines the impact of changes in home prices, mortgage rates and household incomes, has fallen sharply this year but still stands well above levels that typically have dampened home sales in the past.
While housing remain affordable by historical standards, the current recovery has left a large segment of U.S. households behind, including the more than 7 million whose homes were seized in the wave of foreclosures that followed the frenzy of reckless mortgage lending in the middle of the last decade.
The home ownership rate, which surged to 69.2 percent in 2004, has fallen back to 65 percent as of the second quarter, according to the latest Census data released Tuesday. The rate, now back to levels last seen in 1995, is expected to continue falling as more families move through a large backlog of pending foreclosures.
Many of those families are expected to remain renters, which has driven strong demand for new multi-family housing and strong rent increases in many markets.
To be sure, a continued rise in mortgage rates will eventually slow the climb in home sales and prices. But in the short term, the strong home price momentum is feeding on itself as buyers sitting on the sidelines fear paying higher prices by waiting.
“At least for the short term (prices) will probably continue to go up,” said Shiller. “For a flipper now who can get out in a year, it seems to me like a fairly safe bet.”
© 2013 CNBC LLC. All Rights Reserved
Seattle Real Estate Statistics
Curious about your home's value? Give us a call, we are happy to provide information.
Steve Hill and Sandra Brenner
Windermere Real Estate/FN
206-769-9577
Curious about housing prices in your neighborhood? Check them out HERE!
Have other real estate related questions? Give us a call, we are happy to help!
Steve Hill and Sandra Brenner
Windermere Real Estate/FN
206-769-9577
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