Americans Find Comfort In Owning A Home

Despite negative numbers in real estate values, new research from Pew Research Center shows Americans still find comfort in their home.  Reinforcing my belief that most people relize owning your own home has a deeper meaning and adds a value to your life greater than simply being a financial investment.

No Place Like Home — Even if the Value Is in the Tank
by D’Vera Cohn, Senior Writer, Pew Research Center
February 19, 2009

Not even a housing-led recession can shake Americans’ faith in the blessings of homeownership.

House prices may be falling, foreclosures rising and residential sales weak — yet the vast majority of homeowners say their home is a source of comfort (90%) in their life, while just 6% say it is a burden, according to a Pew Research Center Social & Demographic Trends survey conducted Oct. 3-19, 2008 among a nationally representative sample of 2,260 adults, including 1,625 homeowners. Another 4% say their home is both a comfort and a burden.

This warm feeling of owners for their homes contrasts sharply with the nation’s chilly residential real estate market. By the end of last year, Zillow.com, an online real estate information source, calculated that U.S. home values had fallen 17.5% since the market peak in 2006 — or by a total of $6.1 trillion.

Homeowners aren’t unmindful of this tanking market. Eight-in-ten (82%) in the Pew Research Center survey say that now is a bad time to sell a home in their area. More than seven-in-ten (73%) say that this is a good time to buy a home.

Despite the current national housing funk — or maybe as a refuge from it — owners in all the major demographic groups overwhelmingly say they view their home as a comfort. There are no differences by gender, race, age, income or education. Nor do people’s responses vary depending on whether or not they are married, have children or are employed. Owners who have never left their hometowns and those who have moved repeatedly are just as likely to say their homes are a comfort.

More…

Fannie Mae Changes Investor Loan Limits

In a fabulous move, Fannie Mae has made a change in investor guidelines.  Fannie Mae will now allow an investor to have 10 loans (the previous limit was 4).  That will help for those folks that can afford to buy some of the properties they recognize as a good investments and understand the long term value of real estate ownership. 

These are the type of common sense changes that need to be made.  Restrictions on qualified & competant Buyers is not a solution to clearing up our housing inventory.  The new policy goes into effect March 1, 2009.  Good news!

Sunday Open House Traffic Picks Up

This past Sunday I held an Open House at my new listing in Phinney Ridge.  I am happy the weather was good and Open House traffic was fantastic.  Over the last few weeks I have felt the increased Buyer traffic at my Open Houses.  This last Sunday my listing at 120 N 77th Street saw well over 70 people visit.  Everyone was extremely positive and it was good to feel a bit of new energy.

I think we will feel more excitement and more activity in our market as we see new and fresh listings hit the market.  As our Spring market begins, new listings will begin hitting the market and fresh inventory may generate new interest from Buyers.  For those Buyers ready to buy, right now really could be a fantastic opportunity.  With prices down and interest rates WAY down, it makes for a nice combination.

Meet the listing:  This 1914 Craftsman is stunning.  A complete remodel was completed in 2008 by Greenleaf Construction.  With care and craftsmanship Greenleaf Construction was able to rejuvenate this home for the current owners.  With energy efficiency, healthy living and sustainable building practices in mind this home was completed with a certified Four Star Built Green Rating and an Energy Star rating.  Attention to detail and true craftsmanship was used to maintain the original character of a 1914 Craftsman.   Located in the Phinney Ridge neighborhood of Seattle, at 120 North 77th Street.

Fixed Rate Mortgage Report for January

Looks like a good time to capitalize on interest rates and buy a home. ..

Freddie Mac Monthly Average Rate & Points for 30 Year Fixed Rate Mortgages

 

	2009		2008		2007		2006		2005
	Rate	Pts	Rate	Pts	Rate	Pts	Rate	Pts	Rate	Pts
January	5.05	0.7	5.76	0.4	6.22	0.4	6.15	0.5	5.71	0.7
February			5.92	0.5	6.29	0.4	6.25	0.6	5.63	0.7
March			5.97	0.5	6.16	0.4	6.32	0.6	5.93	0.7
April			5.92	0.4	6.18	0.5	6.51	0.6	5.86	0.6
May			6.04	0.5	6.26	0.4	6.60	0.5	5.72	0.6
June			6.32	0.7	6.66	0.4	6.68	0.5	5.58	0.6
July			6.43	0.6	6.70	0.4	6.76	0.5	5.70	0.5
August			6.48	0.7	6.57	0.4	6.52	0.4	5.82	0.5
September			6.04	0.7	6.38	0.5	6.40	0.5	5.77	0.6
October			6.20	0.6	6.38	0.5	6.36	0.4	6.07	0.5
November			6.09	0.7	6.21	0.4	6.24	0.5	6.33	0.6
December			5.29	0.7	6.10	0.5	6.14	0.4	6.27	0.5
Annual Average	5.05	0.7	6.03	0.6	6.34	0.4	6.41	0.5	5.87	0.6

~Freddie Mac

2008 Northwest MLS Wrap-up

Northwest Multiple Listing Service KIRKLAND, Wash. (Jan. 22, 2009) – Members of Northwest Multiple Listing Service tallied nearly $20 billion in sales of single family homes and condominiums during 2008. The total reflects closed sales of 54,123 single family homes and condominiums across 19 counties in the MLS service area.

Last year’s numbers reflect the market slowdown that started in August 2007 when the “mortgage meltdown” became apparent. Both the dollar volume and number of units sold were down sharply from record-setting activity of 2005-2006. In 2005, NWMLS reported around 103,000 closed sales valued at around $33.7 billion, followed by 96,000 residential sales in 2006 worth around $35.4 billion.

Median prices (half sold for more, half for less) for homes and condos that sold during 2008 were down 6.15 percent area-wide compared with 2007. The area-wide median price for a single family home that sold and closed during 2008 was $316,000 (average was $381,665). Condominiums that sold last year had a median selling price of $253,500 (average sales price was $301,065).

Only two counties, Grant and Okanogan, reported slight gains in year-over-year median prices for sales of single family homes and condos combined, while all others experienced declines ranging from 2.2 percent (Cowlitz County) to nearly 11 percent (Jefferson County). Prices in King County, which accounted for 39 percent of the closed sales, fell about 2.3 percent.

MLS figures for single family homes show all counties in its market area since 2002 have had median price gains of 50 percent or greater.

Single family homes accounted for approximately 84 percent of the residential units that sold in 2008 and more than 87 percent of the dollar volume.

In its annual report, Northwest MLS summarized listing activity, pending sales and closed sales. Among some of the findings in the comprehensive report:

• Members added 137,278 new listings of single family homes and condos to the MLS database during 2008.
• Members represented, on average, nearly 47,000 home sellers each month.
• Nearly eight of every 10 transactions (79 percent) were listed by one office and sold by a different office.
• 1,171 single-family homes and 106 condominiums sold for $1 million or more; 598 condos sold for $500,000 or more.
• A Seattle home on Lake Washington fetched the highest sales price at $15.8 million.
• Among condo sales, a penthouse in a downtown Seattle high-rise commanded $9 million, the highest in that category.
• Sixty percent of condos that sold during 2008 were in King County, and 76 percent of all condos that sold during 2008 had two or fewer bedrooms.
• A comparison of single family home prices by counties shows San Juan County maintained its position as most expensive. Homes that sold there last year had a median price of $510,000.
• In the four-county Puget Sound region (King, Snohomish, Pierce and Kitsap), only about 7.3 percent of single family homes sold for under $200,000. Nearly one of every four homes (23.5 percent) in that area sold for $500,000 or more.
• The second quarter was the most active for pending sales; nearly 29 percent of the offers that were made and accepted last year occurred during the April-June timeframe.
• The price of a 3-bedroom home built before 2006 varies widely across the MLS market area. San Juan County topped the list at $575,000, followed by King County at $390,000. The most affordable 3-bedroom homes are in Grant County ($144,250) and Grays Harbor County ($148,000).
• A comparison of prices by school district has Mercer Island as the most expensive. The median price for homes that sold last year in that district was $1,025,000. At the other end of the spectrum was the Wilson Creek School District in Grant County where the median selling price was $84,900.

Top 10 Dreamy Neighborhoods

Once again in a survey of where people want to live.  Another one of our greater Seattle area neighborhoods pops up.

Jan. 22, 2009 from Frontdoor.com:  KNOXVILLE, TN – In honor of HGTV’s 13th Dream Home Giveaway, FrontDoor explores 10 of the dreamiest places to live in the United States. Whether it’s lush acreage, majestic views or exclusivity that you crave, each of these neighborhoods offers all that and more. Perhaps that’s why they’re in high demand, with buyers willing to pay millions to call them home. Find out what makes them so irresistible.

1. Sonoma, California. What’s not to love about Sonoma? The wine country’s rolling hills and sandy beaches make it an all-inclusive place to live. While the median home price is more than $500,000, acreage is in high demand here and buyers pay millions for it. Architecture ranges from Mediterranean to Victorian to Craftsman, and houses come in all sizes, from stunning estates to modest bungalows. No wonder HGTV chose this quaint northern California town to be the site of this year’s Dream Home. Don’t forget to sign up for a chance to win it.

6. Mercer Island, Washington. Location plays a key part in the high-end real estate market on Mercer Island. Connected to Seattle by two bridges, the island offers incredible views of the city’s skyline without the hustle and bustle of urban life. Tranquility and convenience come at a price: a luxury home on Mercer Island can cost up to $40 million.

 

10. Back Bay, Boston, Massachusetts. One of Boston’s priciest neighborhoods, Back Bay is both a residential and commercial area, featuring Victorian brownstones on its northern end and some of Boston’s tallest skyscrapers on its southern end. The neighborhood’s historic Newbury and Boylston streets offer trendy cafes and upscale shopping, and Copley Square boasts several 19th century landmarks.

You Are Living on the Green Grass!

For Half of America, Grass is Greener Somewhere Else

29 Jan 09  Pew Research Center  Where would Americans most like to live–and how do they feel about the place they currently call home?

A new national survey by the Pew Research Center’s Social & Demographic Trends Project finds that nearly half (46%) of the public would rather live in a different type of community from the one they’re living in now–a sentiment most prevalent among city dwellers. When asked about specific metropolitan areas where they would like to live, respondents rank Denver, San Diego and Seattle at the top of a list of 30 large cities, and Detroit, Cleveland and Cincinnati at the bottom. 

2009 The Year of the Ox

Last night we began the celebration of the Chinese New Year in our home.  In sharing the description of the Ox (it is the year of the Ox) I thought maybe we should all take note and live with the year of the Ox in mind.  The Ox seems like a shining example of how we should all approach 2009 (and beyond).  Happy New Year, may we all have a happy, healthy & prosperous year.

The Ox is the sign of prosperity through fortitude and hard work. As one might guess, such people are dependable, calm and modest. Like his animal namesake, the Ox is unswervingly patient, tireless in his work, and capable of enduring any amount of hardship without complaint.

The ox person is not extravagant, and the thought of living off credit cards or being in debt makes him/her nervous. The possibility of taking a serious risk could cause the ox person many sleepless nights. These people are truthful and sincere, and the idea of wheeling and dealing in a competitive world is distasteful to them. It would be right to mention that people born in the ox years are rarely driven by the prospect of financial gain. These people are always welcome because of their honesty and patience. They have many friends, who appreciate the fact that the ox people are rather introverted and wary of new trends, although every now and then they can be encouraged to try something new. It is important to remember that the ox people are sociable and relaxed when they feel secure, but occasionally a dark cloud looms over such person and he/she takes on the worries of the world and tries to find solutions.

Meadowbrook Home Stands Out

This home in Meadowbrook is one to see.  Listed at $425,000 it is hands down one of the best values in the area.  This home is a good example of what is available to Seattle Buyers right now.  A great value, this updated home is in move-in condition on a large in-city lot.  With mature trees and garden areas.  A short trip to many amenities including shopping, restaraunts, coffee houses & the local pub, Fiddlers Inn.  Or, just blocks away, sit by the calm of  Thorton Creek and collect your thoughts.

If you have been watching the local housing market and find yourself poised to make a move, check out this house.  Combined with today’s low interest rates, now may be the time.

White Christmas

It’s beginning to look like a white Christmas.  Everything looks beautiful & the kids could not be happier. 

Merry Christmas!