Monday, March 26, 2012
When comparing February of 2012 to prior years more buyers have entered the market with 172 homes pending, and 82 homes closed. At the same time the number of active listings has steadily decreased from 467 in 2009 to 170 in 2012, and the average days on market for a home to sell was down to 57 days.
We are in a market where the number of listings available is way down while the interest to buy is way up. When comparing the number of active listings to the number of pending listings a ratio can be created. The ratio in February was at 101% and the ratio in the second week of March was 170%. 55% and up is considered a Seller’s Market. So as you see it is a hot Seller’s Market. For homes that are priced right it is not uncommon to see multiple offers and listing price to sales price ratios of over 100%.
Keep in mind, these statistics are averages. Some price ranges are more active than others. Currently the hottest price range is $350K to $400K, while is is slow over 1.25 million.
Now for some bad news…The median home price was down 9% to $415,500 when comparing February of 2007 to February of 2012. However, it is up from the low 2010 and 2011.
With home values lower and mortgage interest rates hovering around 4% the monthly mortgage payment for a home has become much more affordable. In King County it is cheaper to purchase and pay the monthly mortgage of the average home than it is to rent it.
Northwest Seattle includes the neighborhoods of Ballard, Fremont, Wallingford, Green Lake, Phinney Ridge, Loyal Heights, Sunset Hill, Crown Hill, Greenwood, Blue Ridge, Broadview, Bitterlake and more.
Thursday, March 22, 2012
When comparing February of 2012 to past years, more home buyers entered the market with 54 pending listings. This is up from 38 in January.
Month to month closed sales remained flat with 25 home closed. While the number of active listings moved up slightly from January but remains low when compared to prior years. The average days-on-market for a home to sell was 116 days. Up significantly from January. The absorption rate was at 4.92% making a 5 month supply of homes. Normal is 6 months.
When comparing the number of active listings to the number of pending a ratio can be created. This is a good indicator of what home buyers are doing and how active the market is. The ratio of active and pending listings in February moved up to 46%. The ratio for the 2nd week of March was 67%. This is a sign that the market is shifting from a Buyer’s Market to a Seller’s Market. The supply of homes on the market is low and the demand is on the rise.
Keep in mind, these statistics are averages. Some price ranges are more active than others. The hottest price range is $450,000 to $500,000. While the market is slow above $1.25 million.
In the last 6 years the median home price has moved down 15% to $475,000.
As I mentioned last month, home values and mortgage interest rates are low. The monthly mortgage payment for a home has become much more affordable.
Tuesday, March 20, 2012
In this video Andrew L. Parker with RE/MAX Metro Realty and Craig Walker with Cascade Mortgage discuss loan limits, jumbo loans and renting versus owning.
The type of loan one gets depends on the amount of the loan. In Seattle, Washington, a loan would be considered “Conforming” if the value is less than $417,000. It would be considered a “Conforming Jumbo” if it is valued between $417,000 and $506,000. While it would be considered a “Jumbo” if it is valued above $506,000.
With home interest rates and home values down, more buyers are entering the market. In King County is has become more affordable to pay the monthly mortgage payment for the average home than it is to rent the average home.
Monday, March 12, 2012
In this video Andrew L. Parker with RE/MAX Metro Realty and Craig Walker with Cascade Mortgage discuss home mortgage interest rates, refinancing a home, Fannie Mae, Freddie Mac, and refinancing a with second mortgage.
Home mortgage interest rates are currently hovering around 4% to 4.25% for most borrowers. Current and future rates are based on the value of mortgage backed securities. When economic data is weaker than expected bond prices typically move up and interest rates go down. When economic data is stronger than expected bond prices typically move down and interest rates go up. Rates will very week by week and day by day.
Refinancing a Fannie Mae or Freddie Mac loan tends to be straight forward, even if the loan to value (LTV) is at or is slightly above 100%. New mortgages with a LTV of over 80% will not need mortgage insurance with these programs.
On March 12th and 19th, 2012, the loan to value limit of Fannie Mae and Freddie Mac loans will be expanded to unlimited. Which means a home owner with a loan to value of over 100% will be able to refinance.
If a home has a second mortgage when a borrower wants to refinance the first, the second would need to become subordinate to the new first. Meaning it would need to remain in second position. If the lender holding the second will subordinate, it will need to be paid off.
Currently there are no programs to help home owners who want to refinance a home loan that is not backed by Fannie Mae or Freddie Mac. President Obama proposed giving relief to these homeowners in his State of the Union Address, but there is no help until it is put into law. To refinance there would need to be a LTV of 80% based on an appraisal of the home. There are programs available to refinance with a LTV of up to 95% but mortgage insurance is required.
Tuesday, March 06, 2012
Andrew L. Parker joined the Seattle office of RE/MAX in 2003 and offers both an outstanding level of real estate knowledge and an exceptional level of professionalism. Andrew is a licensed real estate broker and a regular top producer with over 12 years experience in the real estate business. He has participated in a range of real estate transactions, including residential properties, condos, rental properties, etc in King and Snohomish Counties. His relationships and local experience, combined with RE/MAX national resources, present an exclusive benefit to HIS clients.
Originally from Boise, Idaho, Andrew has lived in Seattle since 1986 and has a home in Queen Anne where he and his family relax and enjoy walking in the neighborhood and bike riding on the Burk-Gillman trail. He studied music at Cornish College of the Arts and received a degree in jazz performance in 1996. Although his career as a Realtor is his primary focus, Andrew continues to write and perform music. Boating is another way Andrew enjoys spending his time. Whether he is reefing the sails in some heavy weather or relaxing, being out on the water is Andrew's favorite place to be.
Navigating the multifaceted decisions needed in today’s real estate market requires an agent with dedication, experience, and professionalism. Andrew is devoted to service with an emphasis on accountability, reliability, and enthusiasm. Especially during shifting market cycles, Andrew provides his clients all the information they will need to help them make informed real estate investment decisions.
The power of relationships and the experience to know how to get things done is the foundation of a successful real estate transaction. Andrew is well regarded by his peers and has created valuable working relationships with other professionals in the business, including title companies, attorneys, lenders and appraisers.