Let The Light Shine In...The Truth About Washington Real Estate

Boy, the national media sure has a way of making a "doomsday" event of the current real estate market! As some of you may have seen, the National Association of Realtors is fed up with the negative, and usually false, reports of the current market. They are launching a marketing campaign entitled, "Get the Facts" and I thought I'd give a bit of insight on our local market...First, though, let it be known that in no way does this mitigate or lessen the pain felt by those in bad markets. In no way does it suggest that there aren't local residents who were negatively affected by the unscrupulous lending practices of the last few years, who haven't felt a loss, and been forced into very painful and unfortunate circumstances. I've worked with some of you who have personally walked through the sub-prime and fraudulent loan fire...But, the generalizations are what I am addressing today.

First, the hard facts: Less than 6% of all loans originated in the state of Washington are sub-prime (The national average is about 20%). According to the Mortgage Bankers Association, the current foreclosure rate for the state of WA is .49% while nationally, it is 1.4%. In fact, WA is currently in slightly better shape than it was 10 years ago! (Nationally, the foreclosure rate is up from 10 years ago). Nationally, Washington is currently ranked 47 of 50 in delinquent loans and 49 of 50 in foreclosure rates.

So, where is all of the bad news coming from? Certainly they aren't just making it up....

There are three problems, as I see it, with the way in which the media is reporting the news.

1. Many media groups are getting their data from Foreclosure Listing web sites. According to NAR, the data provided by these sites has drawn criticism because their process of tracking foreclosures takes into account several steps in the process and homes in foreclosure could end up being counted more than once. Further, not all of these homes actually end up in foreclosure.
2. The states most negatively impacted by the current "crisis" are Nevada, Florida, Arizona and California. The data from those states, when applied to a national average, obviously skew the national truth (if you will). According to Doug Duncan, MBA's Chief Economist, "The problems in these states will continue, and they will continue to drive the national numbers, but they do not represent a national problem." Enough Said!
3. The media has a way of mis-interpreting the statistics and numbers. When I was in college, I took a math class called "How To Lie Using Statistics" and I'll never forget it! It was as entertaining as the title makes it sound. So, when you read these articles, think about them. Perhaps marketing time is up, but home values are too. Perhaps there are more price reductions but the final sales price is up....You, see, there are so many ways to think about it!

Think about Washington - It is a lovely place to call home in so many ways! We have jobs, we have housing, we have beauty, we have good schools, we have a mild climate - there is so much here! I feel that my real estate investment is in a good, solid place. I LIKE owning property here and I hope you do, too. It's a great time to own; it's a great time to buy!

Water those real estate roots!

-Emily