While the long term impact of the U.S. credit downgrade from AAA to AA+ rating is unclear at best, the immediate outcome was quite favorable to mortgage lending. On Monday, interest rates fell to their lowest levels this year at 4.25% for a 30-year fixed rate mortgage.
Also on Monday, the credit rating agency Standard and Poor’s (S&P) downgraded mortgage finance giants Fannie Mae and Freddie Mac to AA+. "The downgrades of Fannie Mae and Freddie Mac reflect their direct reliance on the U.S. government," S&P said in a statement.
It remains to be seen what if any affect the downgrades will have on mortgage interest rates. Some speculate interest rates will spike, yet immediate market reactions are anywhere from muted to favorable. One thing is certain, mortgage interest rates are very unlikely to improve. Only time will tell what rates will do in the coming weeks and months ahead.
Tuesday, August 9, 2011
Energy Efficiency: Does your home make the grade?
Seattle City Council has been considering adding another step to the home selling process for the past couple years. Such a measure would require home sellers to pass an energy audit. If the home doesn’t pass, the necessary corrections would need to be made prior to closing such that the home meets a certain level of efficiency standard.
Austin, Texas put a similar law on its books only to remove it within the first year. For Seattle, with at least two thirds of its housing stock built prior to World War II, such a sudden paradigm shift would be devastating to sellers and our local housing market as a whole.
The move to greening our economy is just in its beginning stages, thus this topic is not going away anytime soon. In fact it’s safe to bet pre-closing energy audits will likely become the norm at some future date. It would be wise to prepare now. Habitat is currently offering a $305 discount for Seattle City Light customers on home energy audits. For information, visit: http://www.habitataudits.com/305-2/
Austin, Texas put a similar law on its books only to remove it within the first year. For Seattle, with at least two thirds of its housing stock built prior to World War II, such a sudden paradigm shift would be devastating to sellers and our local housing market as a whole.
The move to greening our economy is just in its beginning stages, thus this topic is not going away anytime soon. In fact it’s safe to bet pre-closing energy audits will likely become the norm at some future date. It would be wise to prepare now. Habitat is currently offering a $305 discount for Seattle City Light customers on home energy audits. For information, visit: http://www.habitataudits.com/305-2/
Seattle Condo Market Update
July was a challenging month for Seattle’s condo market with a downward pressure on prices despite improved sales.
The median citywide sales price of $255,000 reflected a 12.07% decline compared to last July, but increased 3.7% over June. While most neighborhoods saw double-digit decreases, the downtown / Belltown area fared the best with only a 0.7% dip, less than a percent. Median sale prices over the past few months have been in line with 2005 price levels.
The number of active listings continued to hover around the 1,100 mark. That’s approximately 30% fewer available listings for sale compared to the same period last year. At this rate and contemplating seasonal factors, we may hit pre-construction boom inventory levels by Fall.
The median citywide sales price of $255,000 reflected a 12.07% decline compared to last July, but increased 3.7% over June. While most neighborhoods saw double-digit decreases, the downtown / Belltown area fared the best with only a 0.7% dip, less than a percent. Median sale prices over the past few months have been in line with 2005 price levels.
The number of active listings continued to hover around the 1,100 mark. That’s approximately 30% fewer available listings for sale compared to the same period last year. At this rate and contemplating seasonal factors, we may hit pre-construction boom inventory levels by Fall.
Tuesday, July 5, 2011
Going off the grid
An innovative sustainable energy project is taking shape between Seattle's City Light, Parks Deptartment and Seattleites. Community Solar intends to green up the Emerald City and begin taking energy production off the grid.
The first of such projects is slated for Beacon Hill's Jefferson Park. There picnic shelters will be covered with solar panels, generating an estimated 24,000 kilowatt-hours (kWh) of clean, renewable electricity each year - enough to run three households or brew 146,000 pots of coffee.
Participants who invest in the program will receive annual credits for electricity generated by their portion of the project, annual production credits from the Washington State Renewable Energy Production Incentive Program and their name (or the name of a friend or family member) permanently displayed at the Community Solar project.
For more information, visit www.seattle.gov/light/Solar/community.asp
The first of such projects is slated for Beacon Hill's Jefferson Park. There picnic shelters will be covered with solar panels, generating an estimated 24,000 kilowatt-hours (kWh) of clean, renewable electricity each year - enough to run three households or brew 146,000 pots of coffee.
Participants who invest in the program will receive annual credits for electricity generated by their portion of the project, annual production credits from the Washington State Renewable Energy Production Incentive Program and their name (or the name of a friend or family member) permanently displayed at the Community Solar project.
For more information, visit www.seattle.gov/light/Solar/community.asp
Freedom to purchase - Buying a home with little capital or no capital gains
In the spirit of freedom this July, the following are a few financing options, requiring little (or no) money down as well as one that sidesteps captial gains:
House Key Plus - House Key is a program provided by the Washington State Housing Finance Commission. The commission's purpose is to help low-to-moderate income individuals and households achive homeownership. This is especially challenging in the expensive Greater Seattle market. However, House Key Plus provides between $10,000-$45,000 in downpayment assistance for qualified borrowers. Income limitations apply. For more information, visit www.wshfc.org
Key Community Program - This is another 100%/zero down 30-year-fixed mortgage loan offered by Key Bank with no private mortgage insurance (PMI). The property must be located in a low to moderate income census tract and the borrower's income must be lower than $68,480 in King & Snohomis Counties. For more information, visit www.keybank.com
BECU Home Loan Payment Relief (HLPR) - If you have 3.0% to put down and make no more than $81,000 annually (in King, Pierce or Snohomish Counties) this 30-year-fixed mortgage may be a good option for you. There's no PMI. For more information, visit www.becu.org
Self-Directed Retirement Plan Non-Recourse Loan - If you have 50% down payment tied up in a self-directed IRA, you can get a non-recourse mortgage for any type of property anywhere in the world. Down the road when you resell the property, you can avoid capital gains. For more information, visit www.paccrest.com
This information is true and accurate as of July 2011. Lending guidelines have a tendancy to change over time. For complete information, speak with a loan professional. If you would like recommendations for loan professionals, contact us.
House Key Plus - House Key is a program provided by the Washington State Housing Finance Commission. The commission's purpose is to help low-to-moderate income individuals and households achive homeownership. This is especially challenging in the expensive Greater Seattle market. However, House Key Plus provides between $10,000-$45,000 in downpayment assistance for qualified borrowers. Income limitations apply. For more information, visit www.wshfc.org
Key Community Program - This is another 100%/zero down 30-year-fixed mortgage loan offered by Key Bank with no private mortgage insurance (PMI). The property must be located in a low to moderate income census tract and the borrower's income must be lower than $68,480 in King & Snohomis Counties. For more information, visit www.keybank.com
BECU Home Loan Payment Relief (HLPR) - If you have 3.0% to put down and make no more than $81,000 annually (in King, Pierce or Snohomish Counties) this 30-year-fixed mortgage may be a good option for you. There's no PMI. For more information, visit www.becu.org
Self-Directed Retirement Plan Non-Recourse Loan - If you have 50% down payment tied up in a self-directed IRA, you can get a non-recourse mortgage for any type of property anywhere in the world. Down the road when you resell the property, you can avoid capital gains. For more information, visit www.paccrest.com
This information is true and accurate as of July 2011. Lending guidelines have a tendancy to change over time. For complete information, speak with a loan professional. If you would like recommendations for loan professionals, contact us.
Friday, July 1, 2011
Seattle housing market recovery in progress
Despite what the national media report about the U.S. housing market as a whole, our regional market seems to be performing well. In fact, some areas of our local real estate market appear to be trending toward favoring sellers.
Vital to measuring the pulse of any housing market is to gauge the months of inventory. This figure is determined by dividing the current number of active listings (by community, area or price range) by the number of pending sales within a specific timeframe. This figure is a guide to how many months it will take to sell off all current inventory.
The following graph shows the months of inventory for Seattle single family homes between 1,000-4,000 square feet in size on a monthly basis from March 2010 through May 2011:
The amount of inventory which indicates a balanced market between buyers and sellers is six months. Below six months of inventory, the market favors sellers. Above six months, the market favors buyers.
For more information about how your neighborhood housing market is performing, give us a call (866) 766-7325.
Vital to measuring the pulse of any housing market is to gauge the months of inventory. This figure is determined by dividing the current number of active listings (by community, area or price range) by the number of pending sales within a specific timeframe. This figure is a guide to how many months it will take to sell off all current inventory.
The following graph shows the months of inventory for Seattle single family homes between 1,000-4,000 square feet in size on a monthly basis from March 2010 through May 2011:
For more information about how your neighborhood housing market is performing, give us a call (866) 766-7325.
Sunday, July 25, 2010
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