We've been talking a lot about the lack of inventory in the Greater Seattle real estate market.  The shrinking number of homes available for sale has not only affected the overall market, but it seems to be having a significant effect on the waterfront inventory as well.

"Months of Inventory" is a term we use that basically captures the absorption rate in the market:  based on how many homes are selling each month, how many months would it take for the current market of active listings to be sold?  While we had up to 19 months of inventory just a couple of years ago, we're now seeing just five months of waterfront inventory.  

This basically puts us back into a sellers' market, which is a nice change of pace for the waterfront/luxury market.  The upswing in sales at all price levels seems to be bolstering listing prices for this market segment.

King County Waterfront Homes - Real Estate Listings, Months of Inventory, Past 12 Months:

Source: NWMLS - The Northwest Multiple Listing Service did not compile or publish this information.

© SeattleHome.com: - Sam DeBord, Managing Broker, Realtor
Board of Directors, Washington Association of Realtors
Coldwell Banker Seattle: Coldwell Banker Danforth & Associates
Twitter | Facebook | LinkedIn | Google + | Sam (at) SeattleHome.com

It has become an accepted part of our daily lives. We sort, reuse and recycle. And that is a very good thing. 

Many folks like to use the blue glass bottles we can purchase waters in, as garden or yard art. Although it isn't for everyone, when I see the sun sparkling through these humble masterpieces, I am always satisfied with their effect.

There is one home on Alki that for me, is a must see when we venture out for a winter walk along the strand. Just one more reason to love living in Seattle!

Find your place in the sun

ACCURATE REALTY GROUP

YOUR SEATTLE REAL ESTATE EXPERTS

There's an interesting phenomenon happening in the real estate buying cycle.  Now that most of the country is five to seven years out from its real estate peak, and most major cities are actually into the upswing of home prices, distressed homeowners of yesteryear are becoming the home buyers of today.

Rules for qualifying for a mortgage vary widely between lenders and loan programs, but one of the most-often used loans today is the FHA mortgage.

Today's FHA mortgage requirements for foreclosures and bankruptcies (see your lender for exact details):

• A foreclosure that was discharged three years ago
• A bankruptcy discharged two years ago

The initial reaction by many to this situation is: Again?  We've certainly all seen enough shoddy lending and lax credit practices during the last boom-bust cycle and, on the face of it, this seems like an invitation to more.

However, the details of how these home buyers must qualify diverges widely from the way sub-prime home buyers were qualifying for loans in the past.  The new practices, while still generous to the buyer, create far greater protections for the lender and the American public who, in the long run, foot the bill for defaults.

Home buyers with foreclosures and bankruptcies on their records need to show a consistent history of pristine credit since the time of their foreclosure.

Additional FHA requirements (there are more, refer to a lender):

• On-time bill payment on all credit accounts since the foreclosure/bankruptcy
• A 640 credit score (responsible credit use is absolutely essential to gain this score 3 years out of foreclosure)
• A verified down payment (3.5% or higher, depending on the borrower)
• Upfront and ongoing mortgage insurance (which protects the lender from debts in case the buyer defaults)
• Significantly lower debt-to-income ratios (ensures the buyer has ample discretionary income to make payments long-term)

Underwriters scrutinize these borrowers' loan applications far more than an average home buyer.  In contrast, during the real estate boom, a buyer could be approved for a mortgage with very little credit history to support it.

Sub-prime mortgage approvals at the height of the real estate boom:

• 580 credit score
• 100% Financing or 80/20 1st/2nd mortgages (no money down)
• Foreclosure 2 years out
• Bankruptcy 2 years out
• No income verification
• Total debt ratios up to 60%

While the changes in lending to borrowers who have past foreclosures and bankruptcies may not satisfy all critics, there are also mitigating factors that underwriters take into consideration.  Remember that even though a home buyer's past foreclosure may have been closed as of three years ago, the banks sometimes take up to a couple of years to push a foreclosure through.  That person may have essentially handed the home back to the bank five years ago and been repairing their credit ever since.  Underwriters can take this into account.

Moreover, there are many different situations that lead to foreclosure.  Certainly some buyers overspent, got in over their heads, and walked away from a bad investment.  Those are going to be viewed less favorably by a lender.  Others have lost their homes due to job loss, divorce, deaths in the family, and a host of other reasons.

When an underwriter can see that home buyers have been responsible with credit in every instance of their lives except for under one unforeseen loss of income or spouse, there is great reason to believe that these people, under the newer, more restrictive lending guidelines, are a good credit risk.  The lender and the public are protected by these buyers paying for mortgage insurance, and their re-introduction to the housing market in a new economy will allow them to re-establish a long-term credit track record and keep the housing market moving.

© SeattleHome.com: - Sam DeBord, Managing Broker, Realtor
Coldwell Banker Seattle: Coldwell Banker Danforth & Associates
Twitter | Facebook | LinkedIn | Google + | Sam (at) SeattleHome.com

Alki is a beautiful Seattle waterfront neighborhood and the original as well....  

Are you interested in Alki waterfront property? You can find Alki waterfront homes on our Alki neighborhood page and these include Alki waterfront condos, Alki waterfront townhomes, and other types of Alki waterfront property. In addition if you are interested in the neighborhood of Alki, you might want to check out our Alki Blog for all things Alki and Alki real estate.

We have a lot of water in Seattle and there are some premium Seattle waterfront neighborhoods in many parts of the city and Seattle suburbs. You can find Seattle waterfront homes for sale on our Seattle real estate website.  In fact we have many talented and well qualified Seattle waterfront real estate brokers at Cooper Jacobs Real Estate!  Whether you are a buyer or seller we can help guide you through the intricacies that are involved in Seattle waterfront real estate.

Regardless of where you are looking for Seattle area waterfront homes, we can probably find something that might suit you and we have many brokers that specialize in the best Seattle waterfront neighborhoods and suburbs to get you the care and diligence you need.

West Seattle condos for sale around Alki Beach can be seen all thoughtout Harbor Avenue. There are dozens of condominium communities pepperd along Harbor Avenue, a major road that leads you from the West Seattle bridge to Alki Beach. Alki Beach is west of Seattle, and is seperated by Puget Sound. The city skyline, pier, and industrial area can be seen from Alki Beach.

Condos range in price from $200,000-$4million, studios to penthouse suits, most of the condos were built between 1977-2012.

West Seattle condominiums for sale under $500,000

West Seattle condominiums for sale over $500,000

A hot topic is coming to head in Florida, and California. Across the country lawsuits are being filed and some lawyers representing Florida condo associations

Condominium owners are debating the right to smoke vs. the neighbor’s right to breathe fresh air. Across the country lawsuits are being filed and some lawyers representing Florida condo associations say it could be argued in Florida court very soon.

San Rafael City Council recently voted unanimously to ban smoking in duplexes, condominiums and other mult-family homes. According to Pam Granger, an advocacy manager for the American Lung Association

The Washington Clean Indoor Air Act ensures that all indoor workplaces and public places are 100% smokefree in Washington State. Thanks to Initiative 901, which passed by 64% 2005. Washington workers and residents now breathe clean, healthy indoor air in all workplaces throughout the state, including restaurants, bars and (non-tribal) casinos

Washington State has No Law for Condo’s or Multi-Family Homes Law. San Rafael City Council recently voted "UNANIMOUSLY" Washington State has the Clean Air Act but nothing for owners of Condo's,townhouses,.This will be something to watch

Source: http://www.law.com/jsp/article.jsp?

Readers of real estate advertising have all heard a sales pitch in one form or another that states "Now is a great time to buy!"  While that line may seem to be tossed around at any given moment in a market upswing or downturn, USA Today had a straightforward piece this week that adds some concrete facts to that argument today.

In terms of the current market conditions, prices, inventory, interest rates, and rising rental rates, overall indices measuring housing affordability are all pointing to buying a home as a more economical decision today than it has been in over a decade.

Seattle real estate, in particular, seems to overemphasize the positive trends that Realtor Magazine lists below, as our inventory has fallen faster than the national average, our rent prices are soaring, and home prices are down a sizable 30% since the peak.  With our strong employment picture, buying homes or condos has become almost a no-brainer for Seattle-area residents and those relocating to the area.

From Realtor Magazine:

“It’s hard to argue against buying a house now, assuming you can get a loan,” writes John Waggoner, a columnist with USA Today. Sure, Waggoner says that getting a credit check for approval of a mortgage can be a “only slightly less intrusive than a CIA background check,” but for those who are able to qualify, a lot of analysts say that now can be a good time to purchase a home.

1. The price is right. The median single-family home price hit its lowest in more than a decade when it reached $154,600 in January, according to the National Association of REALTORS®. That was the lowest since October 2001. During the height of the housing market in July 2006, the median home price for a single-family home was $230,900.

2. It’s cheaper to buy than rent. In nearly every major metro market, it is cheaper to buy a home than rent. Rents have been on the rise the last few years and are predicted to continue to rise. Meanwhile, home affordability is at record highs, which means that buying a home is more within reach to the median income family.

3. Inventories of for-sale homes are shrinking. Ned Davis Research estimates that excess inventories of homes to be eliminated by the end of next year. “When excess supply dries up, people start building more new houses, which has the virtuous effect of reducing the unemployment rate and increasing the economy generally,” according to the USA Today article.

4. Mortgage rates are at record lows. Mortgage rates have hovered near record lows for weeks, which has helped pushing housing affordability higher. For example, the average 30-year fixed-rate mortgage, which is the most popular among home buyers, is 3.59 percent, according to Freddie Mac—just above its record low set on July 26 of 3.49 percent average. “It’s conceivable that at some point in the next 30 years, your interest rate would be less than the rate of inflation,” writes Waggoner for USA Today.

© Seattle Homes, LLC: - Sam DeBord, Managing Broker, Realtor
Coldwell Banker Seattle: Coldwell Banker Danforth & Associates
Twitter | Facebook | LinkedIn | Sam (at) SeattleHome.com

Data Source: NWMLS - The Northwest Multiple Listing Service did not compile or publish this information.