Team Reba Real Estate

More details to keep you on track for the 1st time homebuyer tax credit of 2009

Filed under: title/escrow, King County, South Park, Central District, Madison, Phinney Ridge, market activity, Beacon Hill, townhouse, Kirkland, Tukwila, Auburn, Kenmore, Kent, Issaquah, single family, FHA/VA, Conventional loans, Greenlake, Ballard, Bellevue, Puget Sound, mortgage/loan, Seattle, buyer, legal issues, economic issues, seller, Bryn Mawr, Lakeridge, real estate, Renton, tax issues, condo, West Seattle, disclosure, Redmond, Washington — Reba Haas @ 12:54 pm

A couple of days ago, I wrote an article that highlighted issues in King County, WA regarding closings in November 2009 that could impact a buyer’s ability to get the $8,000 tax credit for 1st time buyers. More news is coming out that impacts this as well and buyers should be prepared that lenders are wary of the volume that will hit at the end of this month as well and they’re putting up barriers for any legal action that may come from a rush of paperwork and deadlines culminating at the end of the month during one of our Nation’s biggest holidays.

See below for a warning sent out by one of my lending contacts with regard to news they’re being given of banks trying to reduce liability for missing the deadline. Be sure to be talking to your lender about their policies and volume that is expected for this month. The last day of the month is a Monday:

One major lender has reminded us that, for the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the homeowner. This must take place before December 1, 2009. This lender is also suggesting that a disclaimer be signed absolving them of any liability should the mortgage loan not get closed in time for the credit. There is a movement to extend the deadline at least 6 months, and even to drop the first time buyer requirement. Who knows what the future of that is. Good Luck Jerry Rutherford Professional Mortgage, Inc.
22659 Pacific Hwy So Suite 101
Des Moines, WA 98198
Phone: (206) 870-5050 Cell: (206) 356-1711
Toll Free: 1-800 764-5626 Fax: (206) 870-5051
Email: jrutherford@pmiloans.com
www.pmiloans.com
WA Lic. # 510-LO-35158

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Furlough days for King County Recorder’s Office to affect November sales and possibly your opportunity for $8,000 1st-time homebuyer credits. Be prepared in your offer!

Filed under: King County, South Park, townhouse, title/escrow, Central District, Beacon Hill, Madison, Kirkland, single family, Kent, Tukwila, Auburn, Woodinville, Issaquah, FHA/VA, Conventional loans, Phinney Ridge, Greenlake, Bellevue, Puget Sound, mortgage/loan, Seattle, buyer, economic issues, seller, Bryn Mawr, Lakeridge, Renton, tax issues, Ballard, real estate, condo, Redmond, West Seattle, Washington — Reba Haas @ 12:16 pm

Many people know that local governments and municipalities have been cash strapped and have implemented budget cuts in various departments as of late, but not everyone who is in the process of home shopping realizes that this could impact them directly. In King County, there were forced furlough days implemented throughout the 2009 calendar year so all cities lying within this county area will be affected. See the note below that I received from a local title & escrow firm to know which dates in November and December are affected. The 28th and 29th of November are on a weekend, when NO closings can occur anyway so don’t schedule yours for the 30th thinking that there will be plenty of time. As a first time home buyer you might find yourself out of luck with the $8,000 tax credit if you miss the timing and have your sale bumped past the November 30th cut-off date for that benefit.

Many people are expecting a last minute rush of activity this week for those that are hoping to utilize the tax credit as it usually takes 30-45 days to get through the underwriting process for lending so most contracts are written to close within that period of time. The next week or two will be interesting for everyone involved in the real estate and lending industry as we wait to see what buyers will do. If you’re in that camp of people trying to take advantage of the credit, then you better get crackin’ this weekend and narrow down your choices fast.

We also wanted to provide you a reminder that the King County Courthouse has scheduled the following furlough days and holidays between now and the end of the year. These courthouse closures will impact your closing date selection as well. King County Furlough Days and Holidays

November 11th, 25th, 26th and 27th.

December 24th and 25th

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June stats for the Puget Sound MLS show some encouraging news… and mixed results

Filed under: Renton, Ballard, real estate, condo, West Seattle, Greenlake, Phinney Ridge, Central District, NWMLS, Madison, Beacon Hill, market activity, Redmond, Lakeridge, Seattle, Bellevue, buyer, seller, economic issues, Puget Sound, interest rates, Bryn Mawr, mortgage/loan, foreclosure, short sale, Washington — Reba Haas @ 7:59 pm

4-County Puget Sound Region Pending Sales (SFH + Condo combined)
(Totals include King, Snohomish, Pierce & Kitsap counties)

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2000	3706	4778	5903	5116	5490	5079	4928	5432	4569	4675	4126	3166
2001	4334	5056	5722	5399	5631	5568	5434	5544	4040	4387	4155	3430
2002	4293	4735	5569	5436	6131	5212	5525	6215	5394	5777	4966	4153
2003	4746	5290	6889	6837	7148	7202	7673	7135	6698	6552	4904	4454
2004	4521	6284	8073	7910	7888	8186	7583	7464	6984	6761	6228	5195
2005	5426	6833	8801	8420	8610	8896	8207	8784	7561	7157	6188	4837
2006	5275	6032	8174	7651	8411	8094	7121	7692	6216	6403	5292	4346
2007	4869	6239	7192	6974	7311	6876	6371	5580	4153	4447	3896	2975
2008	3291	4167	4520	4624	4526	4765	4580	4584	4445	3346	2841	2432
2009	3250	3407	4262	5372	5498	5963

It would be easy to look at this and with a broad stroke look at it and think, “Whew, I’m glad we’re done with that real estate downturn!” but it’s not that simple. Other news that came out in June’s numbers shows that in real estate it still is the same story of “location, location, location” plus there is a bit of a chicken and egg issue. Is the lower inventory level because there are picked up sales, or because people who would have sold aren’t doing so now and are instead holding on till later? Either way, it’s probably just as well given that it will be a little while before appreciation picks up to make up for the loss of value of the past 2 years.

Statistical Summary by Counties: Market Activity Summary - June 2009

June 2009 Single Family Homes + Condos	LISTINGS		PENDING SALES	CLOSED SALES
June 2009 Single Family Homes + Condos	New Listings	Total Active	# Pending Sales	# Closings	Average Price	Median Price
King	4373	13351	3042	2083	$446,044	$363,116
Pierce	1668	5953	1341	798	$258,761	$230,000

Some of the news released talks about the decline in the number of condo units being sold in downtown Seattle but what has affected that sector has been the financing market as almost all lenders have required larger down payments (minimum 10%) which many buyers don’t have available. When 5% purchase options were available more people were able to save those kinds of funds, but when the median price $449,450 you can see why a change from 5% to 10% can put a dent in sales.

We’ll keep putting out information on the local market areas so that you can keep up to speed on market changes. If there is a specific market area you’d like to see highlighted or reviewed, feel free to comment or email us with your request.

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1st time home buyers in Seattle can look to Central/South areas for bargains

Filed under: Beacon Hill, market activity, Madison, Central District, NWMLS, real estate, foreclosure, buyer, economic issues, Seattle, Puget Sound, short sale, Washington — Reba Haas @ 11:53 am

Of all these neighborhoods, the furthest south locales are where the better (read lower) prices are at. The closer to downtown Seattle you get, you’ll tend to see prices going up, unless the street or individual house hasn’t had good upkeep. With the current expiration date for the $8,000 1st-time buyer tax credit coming up on the last day of November, if you’re going to buy now is a good time to get moving (pun intended)! I will note that there is talk of extending the tax credit, but it’s not a “for sure” thing so take advantage of the credit while you can.

Architects have been focusing on the renovated areas of Madison and the Central District because they still feel it’s “where the best sales prices are” for them, but that’s not always true for the buyers. We’ve been trying for years to get more architects to look at the light rail areas along MLK and Beacon Hill where prices fit more into the busier price ranges of $250-450k. One of our builder clients is about to release a listing on a new construction 2900-sqft home in the next week or so that will have easy access to light rail and I-5, along with having some nice views out to Mt. Rainier and the Cascades.

Back up in central district, not everyone is savvy to the cuteness that is the Madrona neighborhood just east of MLK, right before you hit the pricier areas of the Lake Washington view homes which are down below the steep hill dropoff. The Central District has a widely varying demographic giving it an eclectic vibe. Many neighborhood areas actually fit into the CD (area 390) - Jackson, First Hill, Judkins, Madison Valley.

This is reflected in the breakdown of the MLS market areas that encompass these areas. Examples:
Mt. Baker/Rainier (area 380) had an average sales price in May 2009 of $404,060 and average YTD of $409,048, down 10% from last year.

Beacon Hill (area 385) average sales price for May was $345,767 and YTD of 337,958 down only 4% from last year.

Central Seattle/Madison Park (area 390) had an average sales price of $714,221 and a YTD average of $723,942. That’s down 25% from last year’s average of $968,625 proving again that it’s the higher priced homes are getting hit hardest in our local economy and primarily by the reduced ability for buyers to get funding for loans in these higher price ranges.

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Team Reba Real Estate

October 20, 2009

More details to keep you on track for the 1st time homebuyer tax credit of 2009

October 16, 2009

Furlough days for King County Recorder’s Office to affect November sales and possibly your opportunity for $8,000 1st-time homebuyer credits. Be prepared in your offer!

July 28, 2009

June stats for the Puget Sound MLS show some encouraging news… and mixed results

July 23, 2009

1st time home buyers in Seattle can look to Central/South areas for bargains

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