Northwest Seattle - State of the Market

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.

Mortgages - Conforming Loan Limits and Jumbo Loans

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.

Home Mortgages and Refinancing

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.

Recently Sold!

6515 12th Avenue Northwest -view map

ORIGINAL PRICE: $479,950

SALES PRICE: $420,000

BEDROOMS: 3

BATHROOMS: 2

SQUARE FEET: 2,060

LOT SIZE: 3,578

Ballard classic 1929 Stucco Tudor. Light-filled living rm. w/gleaming hardwoods, gas fireplace, leaded glass, coved & coffered ceilings. Country kitchen w/new counter-tops, farm sink, & adjacent dining area. Full ceramic tile bath. Upper level master suite includes double closets, built-ins, alcove, private marble bath w/jetted tub, & double shower. High ceiling basement ready for your finishing touches. Secluded yard w/ alley access, flower beds, garden space & poured walkways. Excellent location.

More information

www.SeattleHomeKey.com

Cozy 1917 Sunset Hill Craftsman

7036 25th Avenue Northwest, Seattle, WA 98117

PRICE: $250,000

BEDROOMS: 1

BATHROOMS: 1

LOT SIZE: 5,100 SF

TAX: $2,488

Cozy 1917 craftsman in coveted Sunset Hill/Ballard neighborhood with plenty of old world charm. Great location on quiet street with 5,100 square foot lot. Attached greenhouse with glass ceiling and mature landscaping. Bring your contractor! Value is primarily in the land. Tons of potential by either tearing down or rehabbing.

More Information and Photos

1900 Craftsman by Salmon Bay Park

6727 20 Ave NW, Seattle, WA 98117

PRICE: $449,500
BEDROOMS: 4
BATHS: 2
SQUARE FEET: 2,280
LOT SIZE: 5,100 SF
YEAR BUILT: 1900
NWMLS #:270703

Large, updated Ballard house with plenty of room for everyone. One half-block from Salmon Bay Park on 20th Ave. NW & an easy walk to schools. Nine foot ceilings with crown molding throughout main level. Two full baths and four bedrooms. Improvements include double pane windows, new carpet, new vinyl flooring with new wood floors in the kitchen & formal dining room. Fresh paint inside and out. New front porch and back deck. New gas furnace & electric forced-air heat in the bedrooms. Big utility/laundry. Private back yard.

More information and photos...

May 2011 - Seattle Homes Selling Faster

When comparing May 2011 vs. May 2010, homes are selling faster in central and north Seattle, Washington.

Queen Anne and Magnolia: 58 vs. 116

Capital Hill and Madison Park: 57 vs. 132

Ballard and Green Lake: 42 vs. 91

U-District and Lake City: 41 vs. 101

The number of days a home is on the market is a good indicator of how active the real estate market is in an area. Typically, homes that sell in fewer days have a selling price that is closer to the listing price.