April Stats, PMI Update, Appraisals, Media and Indexes (where the stats come from)

So much to talk about this time around.

Lets jump in and touch on the King County Stats for April

Slowing… The overall trend in King county is less than stellar performance when compared to last year this time.  However what we are seeing is fewer transactions however prices are holding relatively strong.  In most areas the median price compared to last April has moved between 15% to 3% down, and in some markets an 11% and 14% increase.  The hardest hit markets were Tukwila with fewer transactions and decline in price, also significantly fewer transactions happened in the Seattle market.  Mercer Island saw an increase in activity and median price which is a great trend to see in this market.

Typically when markets begin to change from a sellers market to a buyers market the higher priced homes are the first to see the change.  So to see this kind of activity is very promising.  The Kent market saw some declines in activity also which translated to a decrease in the median price.  Overall the market is definitely a buyers market.  With many homes on the market, with fewer transactions happening and some foreclosure opportunities buyers have more options then ever right now.  Also the favorable interest rates will most likely be heading up again, when that will happen is unknown.  But I would recommend locking in rates if you are getting ready to shop for homes!  (By the way the above information is compiled from NWMLS data and as reported in The Seattle Times.)

The PMI (Private Mortgage Insurance) Index is updated and the Puget Sound Region, Everett, Seattle and Bellevue has made the list with a value of 4.  This is based on a score of 100.  Any scores below 100 indicates that property in this area are less affordable.  So any scores above 100 , means homes in that area are more affordable.  So what does a 4 really mean?

Risk scores translate into a percentage of the likely hood of prices dropping in the next two years.  Places such as Riverside-San Bernardino-Ontario, CA scored a 93. Las Vegas and Paradise NV came in at 91.  Orlando and Kissimee FL hit 85, thinking of retiring in Fort Lauderdale?  84, maybe you should wait a bit…but if you are thinking of any real estate activity in this area, I think the regional score of 4 should calm your nerves.  This market remains healthy.

If you are interested in learning about other high risk areas or those markets that have the least risk email me and I will be glad to send that information to you.

Now sorry to have you question the above information however since the last post I have noticed some interesting reports surfacing.  These are regarding the indexes used to report real estate activity and to report the overall market conditions.  As with the PMI Index the other indexes are based on major metropolitan areas for reporting and determining market strength.  While these can be good overall indicators they can also cause questionable results to be reported.  So what we recommend is to stay tuned to your local market.  Use the services of local real estate agents to bring you the relevant information.  While understanding that southern California real estate is down, Nevada is out of luck, and Florida has seen better times, these are the things that cause national media, national statistics to report a grim outlook.

Appraised lately?  Was it for that refi, or that HELOC?  Did you take out a second on the house or was it just an independent appraisal to see what your market value may be?  Well if you had appraisals for all of these reasons and compared them, I would bet that they would all be a little different.

Perhaps they are very close however it will depend on the reason of the appraisal to determine the appraised value.  If you recently wanted to adjust your HELOC or obtain one then chances are the appraisal is not a fair representation of the homes actual market value.  Banks have become weary as you know about lending on property and your HELOC is no different.  They may be padding a buffer zone so that you do not borrow close to what your home is worth.  Because with all of the foreclosures (which are down locally 5%) banks do not want to lend out money today in fear of declining property values.  If you want to know your market value…contact us, we would be glad to help.

The yourplaceforhomes.com team is growing and will be adding more local specialists to bring you your relevant market info and to help you with your individual real estate needs.  So whether your watching the market, ready to buy or sell let us know so we can help you!

Whats your market?  let us know and we can send you market information via email.  info@yourplaceforhomes.com

agents claim your area!  where do you specialize in this market?

join@yourplaceforhomes.com

The Media, the Fed, the home builders and you

The link to the Seattle Times Real Estate Blog…

http://blog.seattletimes.nwsource.com/therealestatedeal/

This is written by Cindy Zetts, Editor on the Times staff, it is updated frequently and provides some good information.

The yourplaceforhomes.com blog generally focuses on the statistics and how to interpret them in our market.  Looking for trends and alerting you to opportunities.  Currently servicing the South King County Area we will be expanding to all of King County and surrounding areas.  Stay tuned for updates on our growth!

In the meantime be sure to visit the new updated website yourplaceforhomes.com

This weeks podcast: The Media, the Fed, the home builders and You!

The Media:

The media’s contribution to confusion…

We have discussed previously about understanding the way the media follows the real estate market.  Generally speaking they follow the real estate market through a home owners eyes, leaving out the portion of the community who tends to drive the real estate market…The Buyers.  When negative information floods the media regarding any type of economic information the public will react, understanding how people will react is important.  What is the responsibility of the media?  We know that this is not a new debate however with the current economic situation in the country it is once again an important topic.  By reporting negative information they grab your attention and your attention means advertising dollars.  Newspaper sales are dropping, rumors of broadcast news getting out of the news finding business and out sourcing the research of news is causing drastic measures to keep their audience. Using hot topics such as gas prices, housing markets and the economic situation to grab your attention create a buzz. No there is no denying that these are major issues, however the question becomes what is the contribution of the media to these situations.  It may not be the responsibility of the media to solve the problems, however their contributions can be viewed as more of a contribution to the issues then a solution.  This is done by reporting issues which cause people to react in a certain manner.  These issues are reported in such a manner that the negative information cause the public to pull away from the real estate market, fill up their tanks today and hide their government stimulus check under the mattress.

This is great for ad sales, however it is not necessarily great for the consumer.  Have you been to the pump after the evening news reports gas prices will rise again tomorrow?  It’s flooded with people trying to fill up today to avoid tomorrows prices.  What may be true is that the price of gas will go up tomorrow, but will it now jump a bit higher because of the sudden increase in demand?  Will home buyers sit and wait to see how far the cost of foreclosures will go?  Will we all hold on tightly to our stimulous checks not using them as the government intends…to actually stimulate the economy?  As a society we react to what the media reports and we react rather predictably.  Studying recent headlines there is a great trend of announcing a major issue or concern and then following it up with a solution.  This is why we create a resource such as this blog and podcast.  Our area of expertise is South King County Real Estate, this is your source for information sans the shock value and sky is falling reporting.

Forecasting real estate is big business, it is because there is money to made in real estate.  However, real estate forecasting is only based upon educated guesses.  At least you would hope that they are educated guesses.  YourPlaceForHomes.com is growing, however we will always remain a local source for real estate in every market that we expand in.

The Feds:

The Feds cut their rate again today…but don’t look for much movement in mortgage rates, but rates are very favorable right now and should stay that way for a while.  The changes may appear in your credit card rates and maybe in your HELOC but good luck running out and obtaining one of those right now.  Banks have really had their share of hard times with the real estate market as we all know, and HELOCS have been also made harder to obtain.

Home Builders:

They are talking to the government today looking for some assistance with the current situation.  Sounds like a pretty good time to buy new construction if you ask us.  The dramatic increase in new construction over the years has left many builders now offering big concessions to unload their inventories.

And You:

What does all of this mean for you…

The Home Owner:

Hold on tight, in our local market we fare better then the rest of the nation.  A time period of correcting over inflated property values is here.  Our market looks like it may be approaching stabilization.  Much of the over inflated appreciation is due to home appraisals for all the wrong reasons (check the next podcast for more information about appraisals and what they actually mean to you).  Sub prime loans also played a big part in this by financing people for loans they should not have qualified for (can you say ARM?).  Many factors drove up property values faster then what is an acceptable historic rate of appreciation.  In much of the country they have a much harder, much longer road of appreciation correction.  Thankfully we were not as over inflated as the rest of the nation.

The Home Seller:

Spring is here, there is a noticeable increase in activity.  However, if you have been facing selling in this market for a while it is a good time to reevaluate your current market situation…Talk to your agent and find out where you stand!  If you are getting ready to sell then check out YourPlaceForHomes.com

The Home Buyer:

Decisions, decisions, decisions…

Where to begin, well first of all it would be wise to research your financing options.  Avoid online financing tools, please.  Talk to a lender and compare notes with a real estate agent.  Not all lenders have the same loans, nor the same options for borrowers.  Real estate agents know of loan programs and options that a lender may not be a part of.  To learn more about your financing options contact us at @ info@yourplaceforhomes.com.  If you are a first time home buyer then visit the site and grab a copy of the first time home buyer guides, they are free, they will answer most of your questions or concerns and if they do not we will be happy to help!

Next Podcast:

Have you had your home appraised lately?  Or when you last did, why was it appraised?  This is important information to know… The appraised value may not be the market value of your home…We will discuss this if greater detail next podcast.

P.S.

Knowing your source…

We constantly and consistently stress for you to check your source.  We all know that stats and “news” often reflect a particular groups motive.  Angles of politics and whatever any particular group is selling.  We know that the media sells ad space, so in order to do so they often will create a panic one week and deliver the “solution” the next week.

This creates a false panic in the public, which alters how we shop, spend, save…or even fill up at the pump.  We consider these practices of irresponsible reporting which we constantly strive to avoid.  Each podcast is based on compiled statistics from reliable sources.  Often we will use other statistics published in other places, however we make every effort to not only alert you of this but to also “decode” and interpret the statistics.

The podcast and blog are used to “decode” our local real estate market, alert the consumer to opportunities, answer questions, promote our services and offer resources to you.  We welcome your feedback and encourage you to take advantage of the free offers and share this information with those that are interested in the local market, first time home buyers, those whom are thinking of selling or anyone who may benefit from the information provided.

The Updated Site…

Tomorrows Podcast.  Featuring the updated website and talking about the King County Real Estate Stimulus Plan…

Recent Report 60% of homeowners will not plan on buying a new home in the next two years because they need to sell their home first…

Stay tuned to tomorrows podcast so we can solve the logic problem behind this!

Check out the stats on the right!

Foreclosure filings are slowing!

Lenders are looking for people to loan money to, one problem…

Answer tomorrow!

February Stats

Have you listed to the podcast?

Get the stats, and forecast for the King County Real Estate Market.  I will post the stats here this week, check back soon, but for the full forecast listen to the podcast http://www.ziki.com/en/yourplaceforhomes listen to them directly from this site then find me on iTunes!

Next week addressing these market conditions…. Who is happy in this current market?  I will tell you!  Is it you?  Should it be?

First Time Home Buyer in WA State?

If you qualify for the WA state bond loan program, it is just about the best possible loan for a first time home buyer.  Email me for a free first time home buyer paket and the loan program details.  I will feature this in detail in the next podcast so stay tuned.

For the first time homebuyer guide, get your copy via email or usps , this was featured in a prior podcast.

Update:

Get a free copy of the WA State Loan Program and the First Time Home Buyer Guide together….Free, email me for your free copies!  dr@yourplaceforhomes.com

Market Tracker

A great tool.

Market Tracker compiles the information from particular zip codes.  This offers detailed insight in to where the market is hot and where it is not.  I am using this tool as a comparison to the information that I use to track the market in the areas that I serve and now this information is offered to you. 

If you would like a market tracker report for your neighborhood, or if you are thinking of buying in a particular area, wouldn’t it be great to see the market trends to be certain of a good investment. 

Not too sure where to buy?  Keep your eye on a few areas, what zip codes are you looking at buying in?  Do you own a few properties in different areas?  Want to sell them when that neighborhood is hot? 

Get market tracker reports!  They are Free!

www.yourplaceforhomes.com

sample reports are there!

email me directly

dr@yourplaceforhomes.com

First Time Home Buyer Guide

This week we walked through a “typical” transaction on the podcast.  The information is available in a full Home Buyer Guide that is available on the website…

www.yourplaceforhomes.com click the first time home buyer link

Sellers And Foreclosures

 Sellers and Foreclosures

I will start by addressing selling your home in this market then will decode the actual impact of the foreclosure market in WA.

            

There has been a change in the appreciation rate in our area and we know this.  We have seen all of the for sale signs in the area and we have seen many of them in front of some homes for several months now.  Why are those signs still there?  Supply and demand, competition and a failure to compete.  Loans have become harder to obtain, which means the number of able buyers has decreased.  Some of the loans that are necessary to certain individuals are now harder to obtain.  For example the no-doc loan.  This a typical loan for the self employed.  These loans are written on the basic belief that the borrower earns a certain amount of money without actually verifying it.  With many banks tightening their mortgage lending practices, this has taken some buyers out of the market. 

So if your goal is to sell your home in today’s market:

1)    Understand your competition.

Your neighbors are selling their home; the neighborhood next to yours has 8 homes for sale that are similar to yours.  Did you know this is not your only competition?  Buyers will compare not only price and features of a home but the neighborhood.  You may have direct competition across town.  There are other neighborhoods that are similar to yours that are in other areas that agents and buyers will be looking at.  Just because the buyer may like a particular area of town they may consider another are just like it in another town.

2)    Have your agent advertise financing options

With the current mortgage situation today, many buyers have found it to be much more difficult to obtain loans.  Does your agent work with a lender that advertises financing options for your home?  Is it possible that a buyer could take a look at the flyer in front of your home and actually see what the payments would be on a 30 year fixed rate mortgage for your particular property?  Is there maybe an option for a zero down home loan for first time buyers?  Some sellers are even offering carry backs, where the seller will finance a portion of the loan.  For example if the asking price is 400,000 and the seller is willing to carry back 50,000.  The buyers would obtain a loan for 350,000 to purchase the property and the seller would loan the buyer the other 50,000 under their terms.

3)    Advertise

If you’re not on the internet then you’re not being seen very much.  Buyers start their search on the internet, and with recent statistics about buyers searches, they want pictures.  They want as many pictures as possible.  This is actually viewed as being more important then any other details about the property.  Your agent better have an impressive marketing plan in today’s world.  Flyers and open houses are classic methods that still have success; direct mail may still get response and showings.  However, real estate marketing has come so much farther than that.  I still hold open houses and produce flyers, I still send out postcards letting people know that your home is now listed for sale to see if they may know anyone who may be interested.  However, I also email up to 8000 real estate agents in the area about your property and I include pictures!  I advertise your property on all of the major websites from Yahoo!, Realtor.com, over 25 of the go to real estate sites.  I also use the tools to report how many times the property was viewed online to determine the marketing power and to determine the reaction of potential buyers.  I upload virtual tours so that buyers can see all of the pictures they want.  The list goes on, but you can see that the marketing capabilities are endless and your agent better be with the times.

4)    Availability to show

If buyers agents do not have access to your home, they cannot show your home to the buyers that are interested enough to actually want to go inside!  If you do not have a key box installed you may as well put out that doormat that says “go away”!  Is that an exaggeration, perhaps it is, however those buyers just left without seeing your home to visit the neighbors home and the 8 others in the next neighborhood.  How did your home compare to the other 9 properties they saw that day?  It didn’t because on the way back to the agent’s office they are comparing the features of the homes they did see.  If they are not going back to the office to write an offer on one or more of those homes, the likelihood of them returning to view your home is very slim.

5)    Home builders are offering concessions!

With sales of new construction slowing, builders are offering inducements to buyers that many sellers are not.  What does it take to compete with builders offering plasma TV’s or granite upgrades?  Unless you want to offer these things the competition is in the asking price.  If new construction is listed for sale competitively with your property how will you induce buyers to buy your home?  How about a home warranty?  What about larger commissions to buyer’s agents?  Many new home developments and especially condos are offering very large commissions to the agent that brings in the buyer to close the deal.  This has also raised the bar. 

Before we jump in to the foreclosure market, let me know if you are thinking of selling your home.  I would be glad to talk to you about it. 

Now foreclosures is quite a topic in itself, today I want to just cover the impact of foreclosures in our market.  O by the way did I mention that you are also competition with foreclosures?  Let’s take a look at the impact of foreclosures

            

   

             Foreclosures have also been a hot topic in the media lately.  Let’s take a look, have you heard that foreclosures are up 150 or 200%.  The “dramatic” increase in foreclosures is scary.  Yes in some areas that is true!  Even here in the Puget Sound we are in that range.  Sounds like a huge number doesn’t it, there must be tons of foreclosures on the market.  Well in all actuality, that 150 to 200% increase brings foreclosures to roughly 2%.  Yes, about 2% of all mortgages are now in foreclosure.  That number doesn’t really have the same impact as foreclosures being up 200% does it?  However, as we know numbers always have different impacts on how they are presented, and in the real estate world numbers mean everything.  In negotiations the same numbers presented in different ways can get different results.  As I was doing some research I came across some amusing stats.  I included what I found in this report but I will read it to you so you can appreciate it also.  From a source that will remain unnamed, so that I remain un-sued, two links lay next to each other and they read. 

Recent News

FORECLOSURE ACTIVITY DECREASES 10 PERCENT IN NOVEMBER

WASHINGTON FORECLOSURE ACTIVITY UP 13 PERCENT IN NOVEMBER

Please always consider not only your source, but the market they are speaking to.

These are different numbers by far, one is up 13% and one is down 10%.  That is a 10% drop in the national market, from the previous month.  However, it was up 68% from the previous November.  These are national numbers. 

The 13% increase in Washington State is referring to a total of 2,473 filings.  This is all of Washington State.  This accounts for 1% of the over 201,000 filings in the nation for November.

When considering that in June 2007 Washington’s foreclosure rate was .49%, meaning that less than one half of one percent of mortgages were in foreclosure. So even if the 200% increase was from June, the foreclosure rate would be less than 2%.  That number just doesn’t have the same impact.  Every time I discuss statistics in my reports and podcasts you will always see any percentage with the actual numbers they represent.  The information I supply is meant to be a decoder to the market.  I take the time to keep everyone informed of the market conditions and trends, and to offer tips to buyers and sellers in the market.  I do this so that everyone can navigate the real estate market a little better and because nothing is better then an educated client.  When the time comes that you need to buy or sell a home in South King County I hope that you think of me to help you with that.

If you are in the position where you may be facing foreclosure on your home, call the bank immediately and let them know of your situation.  In today’s foreclosure market banks have become a bit more flexible.  They would rather not have your home go into foreclosure if possible.  They may surprise you with the option of keeping your home with reasonable terms. 

            

  

Next Report: 

 The home buyers guide: 

 We will walk through a “typical” transaction… The most comfortable buyer is an educated buyer.  As a first time home buyer, you especially need to first learn the process and what to expect along the way.  So let’s begin that process.  This will make you much more comfortable with the home buying process and put you in a much better position to be confident with your decisions.

http://homebuying.about.com/od/marketfactstrends/qt/110507_REpredic.htm

Would you like a copy of the homebuyers guide?  email me, and I will send one to you!

2008! Buying at the bottom of the market

Free Report Brought to you By David Ray

 

Website: www.YourPlaceForHomes.com

Email: dr@YourPlaceForHomes.com

Phone: 206-935-5296

 

 

 

2008 Kickoff!

Buying at the bottom of the market.

 

Buyers watch for the bottom of the market!

When is it?

It may very well be now, if you are looking for a home right now, and you find a property that interests you, it would be a good time to act. Here is why, our local real estate market has not seen the fallout that so many areas in the rest of the nation have. In this podcast I noted our statistics for December and how they compare to last year. Comparing these months December 2007 saw a small decline in the median price of homes. (This information can also be found in the articles linked at the bottom of the page, one of which is local and the other is speaking to the national market. Please consider some of the information included in the national real estate reports will not apply to our local market.)

While we are not seeing the “fallout,” we did see a small slide, and comparing the full year of 2006 to 2007 there is still an appreciation of 7% in our area. This means that the market is still relatively healthy and many of the comments in today’s market are that it is “normalizing.” This means that we have slowed in over-inflated appreciation and home sales have now reached more “typical” numbers. In fact it turned towards the buyers benefit. The competition between sellers has become greater and better yet the mortgage rates have fallen. Seven percent is a “typical” number for appreciation in our area, where we did see slightly higher appreciation rates over the last two years the market is now taking the time to catch up to itself. How much catching up needs to happen? In King County we should see this happen fairly quickly and defiantly not in the same manner as in the rest of the nation. While other parts of the country have seen appreciation spike drastically, they now will have a much harder time waiting for the market to catch up. Last year in the area there were 40,000 new jobs created and 20,000 new homes. The growth of the area is inevitable and undeniable. (Reference the past report noting the county’s population growth forecasts.)

So be prepared to act in the bottom of the market! When is it you ask? The only time that question can be answered is when the market begins to head back up. Meaning you missed the bottom. Today is a great time to jump on the conditions of the market and get in to a property at a reasonable price with a great interest rate. If you wait for the media to tell you when that is, the market here in King County will have been well ahead of the curve.

 

 

I also suggest you check the previous report for more information on today’s market and buying opportunities and tips.

 

Featured web tool: http://www.trulia.com

Featured Articles:

http://archives.seattletimes.nwsource.com/cgi-bin/texis.cgi/web/vortex/display?slug=homesales08&date=20080108&query=real+estate

Be sure to read to the end of this one!

http://finance.yahoo.com/real-estate/article/104115/8-Moves-for-Home-Buyers,-Sellers-in-08

Sellers in next podcast!

How to get your home sold in this market…

For a preview of some of those tips check the first featured article in this report.

Buy When Everyone Else Is Selling!

Free Report Brought to you By David Ray

Website: www.YourPlaceForHomes.com

Email: dr@YourPlaceForHomes.com

Phone: 206-935-5296

When is the market good for buyers?

Consider this,

The media plasters such phrases as the bubble, or the housing market is turning for the worst. But who is this really bad for? Typically this is a negative situation for those of us who are selling, especially the house flippers and short term investors. People who have not owned for more than a couple of years and find themselves in the position of selling may not be in the best shape for gaining a big return on their investment. They may not get a return at all after paying off their mortgage, closing costs and commissions on the sale of their property.

That being said we all know that the media loves to expose the negative in most anything. What the media is not saying is the following:

1) Washington’s real estate market consistently comes up in reports as being one of the unaffected and healthy markets in the nation

2) Buyers can thrive in today’s market conditions

3) With so many homes on the market buyers can be picky, which was not the case over the last few years, buyers were forced to act on properties quickly and aggressively in order to close the sale

4) With so many homes on the market buyers can negotiate prices to fit their needs and have a much higher chance of having it accepted

5) Buyers have opportunities that do not come around very often regarding interest rates. There are great rates right now and how long they will be around nobody knows

6) Many buyers wait until the news tells them that the market is great and then act. This creates the situation where many buyers jump at once, the housing inventory drops, meaning the number of homes to choose from decreases, the ability to negotiate price becomes more difficult due to lessened competition and creates a better overall market for sellers.

As a buyer this is not what you want, you want the large inventories to create choice, competition and the ability to control the outcome. Keep in mind what statistics they are quoting in the news, appreciation, number of homes sold, average price, these statistics are relative to sellers. Investors know that the best time to buy is when everyone is selling. Supply and demand becomes apparent, this was the case when the buyers had a healthy demand for homes over the last few years and the sellers took full advantage of the situation. The media was spreading the word about a hot real estate market, but keep in mind who that was good for, the sellers were selling their homes in record time and at record prices. Now the time has come for the buyers to take advantage of the current situation. The supply is high and this is when competition for sellers comes in to play, sellers competing for buyers.

With the potential for rents to rise once again you are in a good position to act. Many rental properties have converted into condominiums in the last few years and there has not been ample construction of new apartments to replace those new conversions, or to even meet the new growth in the area. Also property managers have been raising due to the fact that land has appreciated and want a better return on their property that is now valued more, and due to the need for rental properties. With the fallout of subprime mortgages many renters who would have used such loans to purchase rather then rent no longer have that option, unfortunately this means they still need to rent, and rental owners are taking advantage of these situations. However those of you that are in that category may be glad that you did not end up with a subprime loan that created a worse situation.

Now I cannot forecast the future of the real estate market, or the mortgage rates, these items are dependant on just too many factors. Forecasting these conditions is a big business in itself, and ultimately nobody can forecast with any guarantees, it is just not possible. What I can tell you is Real Estate is always regarded as good long term investment. If there is one thing that they just do not make any more of, it is land. It is not a replenishable resource, and in the Puget Sound area we know that land is an important resource. With water on one side and mountains on another our growth is limited. As a region we already know that traffic is an issue, think of our heavily debated roads and transit issue. We have I-5 and I-405 our two major highways that run north and south between the water and the mountains. We do also have 520 and I-90 that run across Lake Washington, in the Puget Sound area we are land locked with most of our land running north and south were these areas become Tacoma and Everett, which are growing cities themselves. So if you consider how land as resource is so vital and how those of us in the King County area have a situation that limits our growth owning real estate seems to be a very solid investment. Not only that, however our job rates maintain strong and with so much of our local economy being in business-to-business goods and services. For this reason we as a region tend to be affected later by economic down turns and also recover sooner from a recession then most of the nation.

You also have probably seen the reports regarding our population growth…

From the 2000 census King Counties population was 1,737,034 people; one projection for 2015 is 2,029,053. These numbers are from The State of Washington Office of Financial Management if you would like to see further information regarding projected growth it can be found here http://www.ofm.wa.gov/pop/gma/projections.asp . This growth is for King County and is roughly 300,000 people in 7 years. How will this growth affect property values in King County? How will the interest rates fluctuate over the course the next 7 years? Right now new home builders are still building, some have slowed, Quadrant homes which is the areas largest new single family home builder hasn’t missed a beat so far and are still building new developments and have not slowed production. What is it that that they know? The King Count Budget Office report which is available in this report states their facts and figures that there is ample land to meet the population growth for 2015. Pushing farther and farther out in King County there is buildable land and we can grow there however as commuters, these newly developed areas will most likely suffer from transportation issues creating an even greater desire to live closely to the areas where they commute to. Often the purchase of real estate becomes an equation for buyers of cost versus commute. I am sure that we have all been in a conversation when discussing an area of town someone states “I wish I had bought some property over there a few years ago.” It is a very common statement and a very common regret.

There are a few reports at the end of this that you may find interesting that offer some more insight into todays market in the Puget Sound Area. I also attached a report of three reasons to buy rather then rent. I would like to offer to help you determine if it would be better to rent or to buy, I have a financial tool that I use that calculates the cost of renting versus buying that I use to help my clients determine their best move. If you are interested in seeing how the numbers my work for you let me know you can email me or give me a call and I would be glad to work the numbers for you. I will leave you with my contact information at the end of this.

As a buyer or potential buyer I hope that you consider this information and act at the appropriate time. Like I said before forecasting with any kind of absolute is virtually impossible, but consider the current situation regarding rates and options in today’s market, and consider the situation regarding land, its value and the areas future.

There are a few good reports that I suggest you read. Two are published reports from the National Association of Realtors and one from the Washington State University, who track real estate statistics and release their findings and insight on the future of real estate market conditions for Washington State and the Puget Sound Area being King, Snohomish and Pierce counties. The report by David Jones, 3 reasons to buy rather then rent is also at the end of this report.

The Real Estate Market Conditions Change, stay informed!

Contact me and receive these reports when they are first published for Free!

David Ray

Dr@yourplaceforhomes.com

2069355296

NAR report on the FHA Modernization Act

http://www.realtor.org/press_room/news_releases/2007/fha_legislation_will_help_homeowners.html

NAR report on 2008 home prices trends

http://www.realtor.org/press_room/news_releases/2007/ehs_dec07_trend_up_2008.html

WSU real estate report for Puget Sound http://www.wcrer.wsu.edu/CPSRER/ExecSummary.html

King County Budget Office Buildable Land Report

http://www.metrokc.gov/budget/buildland/bldlnd07.htm

Three Reasons to Buy Rather than Rent: Taxes, Appreciation, Equity

http://www.nwmls.com/discover/nwreporter.cfm?SectionListsID=25&CFID=13614&CFTOKEN=19010035