Home Price Decline Slows Significantly

Mortgage rates eased slightly this week as the bond market was reassured by comments form Chinese officials who indicated they still had a taste for US Treasury debt and that the dollar would remain their primary foreign currency reserve. Thirty year mortgage rates settled to just below 5.50% to 5.375% as the yield on the ten year Treasury fell back to 3.5% after pushing 4% two weeks ago. Fifteen year mortgage rates were even more attractive with the no point coupon at 4.75%. With inflation in check and the stock market sputtering I don't see any significant upward pressure on rates in the short-run. There will be several economic reports over the next week that could create some daily volatilty as investors attempt to determine whether the economy is turning the corner or still stuck in a rut.

 

A report released on Tuesday showed that we may have finally reached the bottom of the housing market nationally. The S&P Case Shiller Index of home prices, though down 18.1% from the same month a year ago, showed only a .6% drop from March to April. This is nearly three quarters lower than the previous month's decline of 2.2%. The Case Shiller index has shown a monthly decline for every month since July of 2006. Yale Economist and co-creator of the index, Robert Shiller, called it, " a striking improvement in the rate of home price decline." The good news was tempered, however, by another report that showed more prime mortgage loans became delinquent in the latest quarter and a report on consumer confidence showed a surpirse dip. It will be interetsing to see in this week's report from the National Association of Realtors on pending home sales whether more evidence of a housing recovery can be seen.

10 Commandments for Home Buyers

1. Thou shalt not change jobs, become self-employed or quit your job. Longer employment time shows stability and a reduced likelyhood of default.

2. Thou shalt not buy a car, truck or van (or you may be

living in it)! This will increase your debt to income ratio.

3. Thou shalt not use charge cards excessively or let your

accounts fall behind. This shows poor money management and an increased risk of default.

4. Thou shalt not spend money you have set aside for closing. It costs money to borrow money - make sure you have enough.

5. Thou shalt not omit debts or liabilities from your loan

application. This is tantamount to fraud - never a good thing!

6. Thou shalt not buy furniture or other big ticket item on credit. Like buying a car, this increases your debt to income ratio.

7, Thou shalt not originate any inquiries into your credit. The algorhythm is a secret but you'll get dinged a few points for most inquiries.

8. Thou shalt not make large deposits without first checking

with your loan officer. Money needs to "season" in your bank account, typically for 60 or more days.

9. Thou shalt not change bank accounts. A strong banking history, like a strong employment history, shows stability.

10. Thou shalt not co-sign a loan for anyone. Like buying cars or furniture, this increases your debt to income ratio.

The S&B Real Estate Team assists people in buying and selling real estate throughout Southwest Washington. We are proud members of Keller Williams Realty - Premier Partners in downtown Vancouver. Our local expertise covers: Vancouver, Battle Ground, Camas, Washougal, Brush Prairie, Hockinson, Ridgefield, Woodland and La Center. If you or someone you know is considering living or investing in Clark County, please contact us. Jamie Carroll can be reached at 360-609-6775 or via the "Contact Us" page at www.MyRealtorIsJamie.com. Steve Borwieck can be reached at 360-241-7305 or via the "Contact Us" page at www.sbreteam.com.  We are here to help!

Buy Before Labor Day

I am advising all of my first time home buyer clients to be under contract by Labor Day to qualify for the federal tax credit being offered to most home buyers that have not owned a home in the past three years. I don't really think it is going to take 80 plus days for a transaction to close but I do anticipate gridlock at banks and attorney offices. I do know of several real estate attorneys that have plans to keep their office open until midnight if necessary to close every transaction that is clear to close before the December 1 deadline.


My biggest concern is housing inventory. Inventory is tight right now, especially homes priced less than $130,000. For example, I started working with new clients just over a week ago that want to buy in the city of Rochester near the U of R. To start their search, I called on 12 listings to schedule an appointment. I could only get appointments at 7 of them because the rest had accepted offers. Of the 7 properties, 2 had offers in that were being negotiated and one smelled so bad we never made it to the second floor. One home was really nice and when I called the next day to schedule a second look, four offers had arrived. This week, 4 new listing came up that met their criteria but 3 of them sold within 12 hours of being listed and the 4th was liked by her but not him. We've decided that we're going to step our search up a notch or two.

Other areas of the city are selling very rapidly as well. The Culver-Winton and Browncroft neighborhoods are definite hot spots. Outside the city, starter homes in the Brighton School District seem to be sold even before they hit the market. And as we count down to the deadline imposed by the Federal government, I anticipate inventory to get tighter and competition more fierce. And so, again, I urge buyers to try to be under contact before the Labor Day holiday.

STAGING your home for sale - it's Easy, Fun, and it SELLS!

Just like we detail a car when we're going to sell it, when selling our homes we benefit so much more by "detailing" them before putting it on the market!  Not only does the home stand to sell faster and/or for more money, we get  to experience the process of making our home even more beautiful and the joy of presenting a home that shines and that we are proud to show off.

STAGING STATISTICS (as of this date) show that 94.8% homes staged by ASPs (Accredited Staging Professionals) sell in  37 days or less . Click HERE for more statatistics.

Bekiw are some BEFORE & AFTER photos to show the difference a little staging makes. It is truly delightful to see and experience the transformation while giving a home a "Make Over"!  I feel that every home, deserves a little facelift when putting in on the market.

These photos are from a small 2-bedroom, 1-bath condo. This cozy place really has everything one would needs right within its walls. It really makes you want to live there! This listing received an offer, accepted by the seller, within 5 days.

 HIRE AN ASP REALTOR TO LIST YOUR HOME!

Understanding Your Monthly Payment

UNDERSTANDING YOUR MONTHLY PAYMENT

 

 

So are you ready to be a homeowner?

One thing to consider in preparing for this huge step is the added expense.  I am not trying to scare you but there is more than your mortgage payment to be prepared for. 

As a renter you pay your rent $1000 a month and probably utilities. 

 

 

As a homeowner you pay PITI. ( Principle, Interest, Taxes and Insurance)

Principle -the amount you owe to the lender - loan amount paid out over a period of time ( usually 30 yrs)

Interest -the cost of borrowing the money ( interest rate)

Taxes - Property Taxes

Insurance - Homeowners Insurance and sometimes flood insurance

At New American Mortgage we offer a FREE Mortgage Consultation for you!

 

 

 

But Prices are Still Going Down, Right? Maybe, Maybe Not!

Will prices go down further? That's a question I am asked nearly every day. The answer is, nobody knows. The only way to know when the market bottoms out is in hindsight, when prices have started to climb again. There are great deals to be had right now because some sellers are motivated and need to sell today. However, there are several factors that point to prices remaining fairly steady in this area:

1. Washington's economy is extremely strong with unemployment below 5%! The Washington State Office of Financial Management predicts the state will add another 2 million residents within the next 12 years. All those people will need a place to live and you remember the rule of supply and demand, don't you?
2. We have fewer "distress sales", foreclosures, and subprime loans in danger of foreclosure. The rampant foreclosure rates you hear about on the news are happening in relativlely few areas. But we all know bad news sells better, right?
3. Interest rates are still at historic lows and first-time buyers are eligible for an $8000 tax credit. This has been pulling some long-time renters into the world of homeownership. As these people enter the market demand goes up and supply goes down. We're back to that law of supply and demand - and back to the days of rising home prices!

Are you thinking of buying a home or just curious about the market today? Give us a call! The S&B Real Estate Team assists people in buying and selling real estate throughout Southwest Washington. We are proud members of Keller Williams Realty - Premier Partners in downtown Vancouver. Our local expertise covers: Vancouver, Battle Ground, Camas, Washougal, Brush Prairie, Hockinson, Ridgefield, Woodland and La Center. If you or someone you know is considering living or investing in Clark County, please contact us. Jamie Carroll can be reached at 360-609-6775 or via the "Contact Us" page at www.MyRealtorIsJamie.com. Steve Borwieck can be reached at 360-241-7305 or via the "Contact Us" page at www.sbreteam.com.  We are here to help!

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