If you are refinancing, purchasing or selling this is a must read. I tell all my clients to call me first and double check if they get any suspicious email or phone call. Do not let this happen to you!
Category: Mukilteo Real Estate
The Home Connection July
Welcome to February’s Home Connection
Why, what’s the matter,
That you have such a February face,
So full of frost, of storm and cloudiness?
– – – William Shakespeare “Much Ado About Nothing”
Do not have a February face! Get out and enjoy all the great happenings and with this months newsletter on events, tips and eye on the market how could you not!
Homes For Heroes
I am privileged to announce that I have officially joined the Homes for Heroes organization in their mission to help heroes across the country save thousands of dollars in the process of buying or selling their home.
What is Home for Heroes?
Homes for Heroes is an organization that was formed after the tragic events of 9/11 as a way to say “Thank You” to the heroes of our nation. The Homes for Heroes organization is composed of a network of real estate professionals who are prepared to give real savings to those who serve their communities when they buy, sell, or refinance a home. This program is our way to say, “Thank you!”
Who qualifies as a hero?
Our core group of local heroes includes but is not limited to: Military personnel, Police Officers, Firefighters, First Responders, Educators, and Health Care Workers. If you think you might qualify, please contact me and tell me about what you do for your community. When you are buying, selling or refinancing a home, let us say thank you for all that you do!
How much will I save?
The total amount you save will depend on the final selling or buying price of your home. Homes for Heroes Affiliate Realtors agree to rebate equal to 25% of the gross commission they receive on your transaction. Discounted lender fees are also offered on purchases and refinances with a Homes for Heroes lender. The savings can be thousands of dollars!
Are there a lot of extra applications, forms, and paperwork?
No! Homes for Heroes promises no extra forms, no red tape, no fine print, no hidden fees, and no catch!
Homes for Heroes offers me the chance to help our local community heroes achieve their dreams of home ownership. If you are interested in taking advantage of this opportunity, please contact me for more info or you can register now at www.snohomishcountyheroes.com to get started.
November Real Estate Market.. HOT, HOT!
Snohomish County Statistics as of November 2016
November is known for being on the cold side and normally signs of a slowing Real Estate market as everyone starts to buckle in for the winter and holidays. Not this year however! November was smoking hot with only 1.4 month of inventory and buyers were snatching up everything they could. I saw multiple offers skyrocketing and bidding wars with some homes being bid up 100K. The picture to the left is a Bothell home that had 32 offers and was bid up 95k! Crazy!!
Here are your local inventory stats.
Active Inventory
+17% November 2016 vs. November 2015
1111 available homes currently on market -800 vs. last month.
Pending Transactions
Up 1% November 2016 vs. November 2015
1528 units -88 vs. last month
Sold Transactions
+27%!!! November 2016 vs. 2015
1452 units -182 than last month
Days on Market
Snohomish County Active to pending 33 days vs. 47 a year ago up 7 days from last month.
Median home price in Snohomish County 399,000 +14% last year. Up $7,000 from last month.
Area price % based on last Quarter
All percentages are up and also include new construction
Bothell + 16%, Edmonds/Lynnwood +17%. Everett/Mukilteo +12%
Snohomish/Monroe+ 11%. Lake Stevens/Granite Falls + 17%.
Marysville +14%
King County Median home prices are $523,000 + 16% over last year and up $6k from last month.
Woodinville area Median price is $550!!
Snohomish County Statistics July 2016
Active Inventory
Prices are up 5% over last year same time July 2016 vs. July 2015
2141 brand new listings in July that is up 53 from last month. 2141 total active at the end of the month.
Pending Transactions
Up +3% July 2016 vs. July 2015
2079 units went pending last month that is 62 less however than June.
Sold Transactions
+9% July 2016 vs. July 2015.
1673 units +11 more than last month
Days on Market
Snohomish County Active to pending 25 days vs. 36 a year ago. Incredible!
Median home price in Snohomish County $387,000!!
Median home price in King County $523,000. Snohomish county is gaining however the gap between King and Snohomish is growing.
Months of inventory
If no additional homes would be put on the market, there would be no inventory left after 1.25 months in Snohomish County. In King County that figure is 1.2 months. A balanced “normal” market is 3-6 months. Buyers’ market more than 6 and Sellers less than 3 months.
Area price % growth based on last Quarter
Bothell + 14%, Edmonds/Lynnwood +5%. Everett/Mukilteo +11%
Snohomish/Monroe + 11%. Lake Stevens/Granite Falls/Arlington/Darrington +7 %. Marysville +7%
New Construction is included in these percentages.
July 2016 Market Characteristics:
- Sellers: position your home to get premium pricing.
- Buyers: need to be Buyer-Ready, Day-One™ to get a home in today’s market.
- The market continues to be more intense than during the same time in year 2015.
- Sales activity in King and Snohomish County is lower than a year ago but July 2015 was the best July on record. If we had more homes for sale, we would have had more sales activity.
- There’s a severe shortage of homes for sale close to job centers. We are virtually sold out, and each new property on the market is getting instant action and most of the time multiple offers.
- More new listings will lead to a higher level of sales activity.
- Prices are increasing in the price ranges and the market areas where 90 percent of the sales activity is taking place, leading to premium pricing for sellers in those areas.
- Interest rates continue to be in the upper threes.
- Multiple offer everything
- More new listings come on market from March through October than November through February.
- More selection but also more intense.
Miracle Agent at your service!
Looking to buy? Looking to sell? Or know of anyone who might? I am here to personally assist you. Giving exceptional service and donating to Seattle Children’s on your behalf. Join my growing group of clients involved in helping families when they need it most. show less
Snohomish County Homes INC.com
Home Sellers where are you???
We need sellers!!! Now that spring is almost here and rates are very low buyers are out in force! I just put an offer for a home buyer that had 14 offers on it in one day! Ouch, talk about competition. So what can you do to get your home ready for the spring selling season? Gain some knowledge and gain an advantage with my ideas and the link (5 ways spring home sellers can gain an edge ) for a few more.
Here are some simple upgrades to increase your home’s value for my clients
You don’t have to spend $$$ thousands of dollars $$$ to add value to your home.
Change fixtures and hardware. This adds appeal and newness quite easily. If you’re selling your home a new mirror in the bathroom and new fixtures can make a huge difference. Upgrade sinks, showerheads and faucets to newer water conserving models in sleek finishes. Sorry folks but brass is dated and out! Make sure all light bulbs work! If wanting a remodel on a larger scale replace cabinets, windows and doors. New molding that’s been painted also really pops out.
Declutter. Clean and organize storage areas including the attic and garage. Look for Rubbermaid bins on sale, fill them up and stack neatly in the garage or a closet. You will be clean and ready to move. This is also an ideal tip before a showing your home to a prospective buyer. Each family should have their own bin and before a showing just quickly put everything that is out in. Believe it or not organization adds tremendous value. Keep kitchen and bathroom counters clear. Cleanliness gives your home more room and a newer feeling that a buyer will appreciate.
Replace appliances. From the stove, refrigerator, dishwasher to the washer and dryer (if leaving) upgrading appliances to newer energy efficient models adds instant value and convenience not to mention Earth friendly.
Spiff up landscaping. Ever hear of curb appeal? An ugly front yard can torpedo your home’s value. Add flowers to add color. A study was done on homes for sale in which red flowers were used on the front door step. These homes sold faster and were more appealing to the client. You can also add path lighting for style and safety. Dust off the exterior. Gutters, siding and windows are often forgotten. Clean them! Crud cutter is wonderful for cleaning off gutters and getting the grime off. Also, make sure everything is properly sealed and in good shape. It looks better and helps conserve energy.
The more you do prior to selling the less the buyers will ask for in an inspection. Preventative maintenance is one of your biggest selling advantages. If not it will become a costly nightmare. What you may have been able to do yourself now has to be done by contractors; as all receipts are needed with documentation in the middle of the selling process. Not to mention you are trying to meet deadlines and make the buyers happy so they don’t just completely walk away from the transaction.
Let me give you an example: I was helping a seller of mine prepare his rental house for putting on the market. I gave them a hand out sheet to go over and check all main components plus attics, crawl space, roof ect. Even with all my advice they did not feel it necessary to check the crawl space. Huge mistake on this one. There was standing water in the crawl space and even though he paid thousands of dollars to rectify the problem it didn’t matter the buyer’s walked. The repairs had to be done and documented then we had to disclose to a new buyer. He ended up coming down $5000 and paid at least $4000 in repairs. DON’T LET THIS HAPPEN TO YOU!
Finally let my team assist you in the process and we will get your home SOLD, SOLD, SOLD!
National Real Estate News
| Posted: 24 Jul 2014 09:31 AM PDT
The new home sales report for June – combined with the downward revisions for previous months – was very weak.
The Census Bureau reported that new home sales this year, through June, were 225,000, Not seasonally adjusted (NSA). That is down 4.3% from 235,000 during the first half of 2013 (NSA). Maybe sales will move sideways for a little longer, but remember early 2013 was a difficult comparison period. Annual sales in 2013 were up 16.3% from 2012, but sales in the first four months of 2013 were up 26% from the same period in 2012!
Click on graph for larger image.
This graph shows new home sales for 2013 and 2014 by month (Seasonally Adjusted Annual Rate). The comparisons to last year will be a little easier in Q3, and I still expect to see year-over-year growth later this year. And here is another update to the “distressing gap” graph that I first started posting several years ago to show the emerging gap caused by distressed sales. Now I’m looking for the gap to close over the next few years.
The “distressing gap” graph shows existing home sales (left axis) and new home sales (right axis) through June 2014. This graph starts in 1994, but the relationship has been fairly steady back to the ’60s.
Following the housing bubble and bust, the “distressing gap” appeared mostly because of distressed sales. I expect existing home sales to decline or move sideways (distressed sales will slowly decline and be partially offset by more conventional / equity sales). And I expect this gap to slowly close, mostly from an increase in new home sales. Note: Existing home sales are counted when transactions are closed, and new home sales are counted when contracts are signed. So the timing of sales is different. |
| New Home Sales decrease to 406,000 Annual Rate in June
Posted: 24 Jul 2014 07:13 AM PDT The Census Bureau reports New Home Sales in June were at a seasonally adjusted annual rate (SAAR) of 406 thousand.
May sales were revised down from 504 thousand to 442 thousand, and April sales were revised down from 425 thousand to 408 thousand.
Click on graph for larger image.
The first graph shows New Home Sales vs. recessions since 1963. The dashed line is the current sales rate. Even with the increase in sales over the previous two years, new home sales are still close to the bottom for previous recessions. The second graph shows New Home Months of Supply.
The months of supply increased in June to 5.8 months from 5.2 months in May.
The all time record was 12.1 months of supply in January 2009. This is now in the normal range (less than 6 months supply is normal).
On inventory, according to the Census Bureau:
Starting in 1973 the Census Bureau broke this down into three categories: Not Started, Under Construction, and Completed. The third graph shows the three categories of inventory starting in 1973. The inventory of completed homes for sale is still low, and the combined total of completed and under construction is also low.
The last graph shows sales NSA (monthly sales, not seasonally adjusted annual rate).
In June 2014 (red column), 38 thousand new homes were sold (NSA). Last year 43 thousand homes were also sold in June. The high for June was 115 thousand in 2005, and the low for June was 28 thousand in 2010 and 2011. This was well below expectations of 475,000 sales in June, and sales were down 11.5% year-over-year. #nationalrealestatenews #snohomishcountyhomesrealestate
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| Information obtained from http://www.calculatedriskblog.com
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Mortgages may be easier to get than potential home buyers believe
Many potential buyers think they need near-perfect credit scores to get a home loan. But lenders may be loosening their tight underwriting standards.
WASHINGTON — Are you on the home-buying sidelines this spring because you think you won’t be able to qualify for a mortgage? Do you know what sort of FICO credit scores are being accepted by lenders at the moment — they’re lower than they were a year ago — and whether yours could now be good enough?
You may be part of the surprisingly large crowd of folks who fear the home-loan unknown. A new national consumer survey found that 56% of potential purchasers of homes say they’re out of the market because they don’t want to face the possibility of rejection by lenders. Even 30% of current homeowners believe that they wouldn’t pass muster today.
Using a statistical sample of 1,055 Americans 18 and older, survey research firm OmniTel, polling on behalf of mortgage lender LoanDepot, documented widespread uncertainty and lack of specific knowledge about current market conditions when it comes to qualifying to buy a home. According to the survey, 74% of potential buyers who would need a mortgage concede that they have not scoped out the current market or taken the steps needed to qualify.
Many potential buyers believe that they need near-perfect credit scores to get a home loan. Half of those surveyed said they had no idea what minimum FICO score is needed for a mortgage, and nearly a fifth (18%) said the minimum score might be 770 or higher.
Debt-to-income ratios are another insurmountable obstacle in many potential buyers’ eyes — enough so that they don’t even try to obtain a mortgage.
Most lenders use two forms of debt ratios: a “front end” ratio that compares the monthly costs of the proposed new mortgage and other housing expenses with the applicant’s monthly income, and a “back end” ratio comparing all recurring monthly debt obligations — housing expenses, student loans, credit cards and the like — with the applicant’s monthly income. Roughly a third of potential buyers on the sidelines believe that their debt ratios are too high.
But what’s the statistical reality on debt ratios, FICO score minimums and down payments? What are lenders approving?
The best answers come from a company called Ellie Mae, whose loan origination and tracking software is widely used by lenders. Every month Ellie Mae analyzes a huge sample of new mortgage originations nationwide and issues an overview report rich with the sort of detail that buyers sitting on the sidelines could use.
Here’s what it found in its report on March:
•Thirty-three percent of new loans last month had borrower FICO scores below 700. A year ago it was just 27%. (FICO scores max out at 850, which is considered excellent credit; applicants with scores under 700 present higher credit risks to lenders.) Federal Housing Administration-insured home purchase loans had an average FICO in March of 684. Conventional mortgages, those designed for purchase by investors Fannie Mae and Freddie Mac, still have relatively high FICOs — they averaged 755 in March, but that was down slightly from 759 a year before. Lenders are doing far fewer refinancings this year, so they are loosening up on FICO minimums for purchasers.
•Debt ratios also are more generous than many sidelined potential borrowers probably imagine. The FHA’s average front-end (housing costs) ratio last month for purchase loans was 28%. In other words, if your projected housing and mortgage-related costs represent 28% of monthly income, you’re average. Fannie Mae and Freddie Mac loans averaged 22% ratios on the front end. Back-end (total recurring debt) ratios for FHA averaged 41%. For Fannie and Freddie it was lower — 34%.
•Down payments can be small if that’s what you need. FHA’s average down payment last month for home purchases was 5%, but many borrowers put down just 3.5%. Fannie and Freddie allow 5% down as well, provided that you can pay mortgage insurance premiums. VA loans can go to zero down if your veterans status allows you to qualify. Department of Agriculture home buyer loans, which are designed for people who live in small towns, also allow for no down payments.
The point here: If you’re on the sidelines, check out what’s really going on in the mortgage market. There may be more opportunities — even in an era of tighter underwriting — than you think.
Article by Ken Harvey
