Greenwood Phinney Undressed

Ahhhhh February Snow on the Ridge

February 09 2009

I woke up at 3 am to get a drink of water and there was a dusting of snow on the back deck but when I looked out the front window, wet snow was coming down fast and furious and not quit sideways.  These pictures were taken around 7 am.  And to think the nut hatches were checking out their new digs just last Thursday.  I guess it is still winter on the Ridge.

More snow

Tax Credit for Home Buyers

Good news you can share with your clients

Due to the efforts of the National Association of REALTORS® and specific members of Congress, we are making significant progress in regards to housing provisions in the National Economic Stimulus Bill.

Last week, the US House of Representatives passed the American Recovery and Reinvestment Act (H.R.1). This bill has some key provisions that will stimulate the housing market:

• It will restore FHA, Fannie Mae and Freddie Mac to 125 percent of median home prices – up to $729,750
• It would eliminate the repayment provision for the $7,500 first time home buyer tax credit
• It expands tax-exempt housing bonds

Two days ago, the Senate approved an amendment to their bill that offers up to a $15,000 tax credit to people that purchase a home in the next year.  The credit would apply to anyone, not just first time homebuyers and you would not need to repay the credit.  The credit is based on 10% of the purchase price of the home and the credit is spread over two years.  So for example, if you buy a house with a purchase price of $300,000, you would qualify for the maximum credit of $15,000.  The first year you claim the credit, you receive $7,500, and you would receive the remaining $7,500 the next year.

In addition to supporting the $15,000 credit, Senator Patty Murray (D) Washington, has introduced her own amendment to the Senate Stimulus Bill relating to the FHA and conforming loan limits. Specifically, Murray’s amendment:  

• Ensures that the 2008 FHA mortgage limits and conforming loan limits do not decline during calendar year 2009.
• Provides discretion to the Secretary of HUD and the Director of the Federal Housing Finance Agency (FHFA) to raise loan limits in sub-areas, up to the conforming ceiling for high cost areas.  
• Temporarily increases FHA’s Home Equity Conversion Mortgage (HECM) limit to $625,500 for 2009.  

“On behalf of all American families and over 20,000 Washington REALTORS® I’d like to thank Senator Patty Murray for introducing this amendment to the Senate Stimulus Bill to increase the loan limits” said Greg Wright, President of the Washington REALTORS®.

The Senate is considering its version of the bill.  We anticipate much more debate and some changes in the days ahead, so please check Realtor.org often for updates.   

Once the Senate passes a bill, we expect lawmakers to hold a conference to work out the differences, before sending it along to the President.  The President wants a finished product by February 16, 2009.

January Housing & Condo Stats

Statistical Summary by Counties: Market Activity Summary – January 2009

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

What is a Short Sale and How does that impact Sellers and Buyers?

I have to first thank Galvin Realty Law Group for this information.  It is a general overview for informational purposes only but should give you a good idea of what a short sale is.

Seattle has had a delayed housing crisis so to speak and short sales are now showing up and becoming part of an agents life.  Most Brokers have very specific rules as to how their agents and even which agents are allowed to handle a short sale due to the liabilities involved.  So whether you are selling or buying there are implications and things to consider on both sides it is NOT a normal transaction and there are some monetary risks including inspection fees paid out if the deal fails.

A short sale is essentially a sale that involves selling your home at a price that is lower than what you owe on the home AND you cannot afford to make up the difference.  If you can make up the difference than it is not technically a short sale.  A Short sale involves negotiations with the lenders to try and get them to agree to the selling price and forgive the difference without penalties. (Note:  lenders can file judgements for the balance owing too).  If there is more than one lender involved, it can get complicated.  The more information the Seller can gather for the listing agent the smoother the process will be, the agent will provide a list of information required.

Once the purchase and sale agreement is signed by all parties, a completed “short sale package” must be submitted to the sellers lender for their approval which includes a copy of the PSA, the buyers pre-approval letter from their lender, listing history of the property and other documents requested of the seller.  Note:  Any buyer wanting to buy a short sale – you do need the pre-approval letter to submit the PSA.  The seller has no control over the offer or its approval once the file is submitted and the seller cannot recieve any proceeds from the sale.  If there are any utilitie liens it typically falls on the Buyer to pay off those liens.

The lender may not even look at the short sale package for 15-30 days and once they get a BPO (broker price opinion) from an outside party they will assign a loss mitigator/negotiator to handle it who becomes the primary contact for the sellers negotiator.  The negotiator will be called weekly and the file will literally sit in the order it was received.  All updates will be relayed to the parties but there will be long periods of time where it seems nothing is happening even though everything possible is being done to move the file forward.

Eventually the file will be submitted to the investor and or mortgage insurance company for approval which usually does not take very long for a decision.  Once the approval letter is written, they allow 10-15 days to close. 

The buyer must do any inspections necessary to satisfy itself as to the condition of the property.  The buyer’s lender needs to be on notice that they will need to order the appraisal immediately upon the underlying lien holders approval so closing can occur in the time frame allotted.

Currently it is taking 60-90 days from the time the package is submitted to recieve an approval letter but, it can take longer and there is no guarantee a file will be approved.  Most lenders do not want to foreclose on the property but sometimes the circumstances do not work out especially if it is difficult finding the trail of lenders.  Respectfully submitted by:  Kerri Sheehan, Realtor – Keller Williams, GRSE, LLC/ Kerriproperties.com

My Blog

Yes, I took a hiatus from blogging while I contemplated the future of my blog site.  First of all, I think we have several fabulous and professional blogs in the area specifically myballard.com and phinneywood.com.  These sites and related neighborhood ones are run by professional journalists who do a really fabulous job.  I love these blogs.  So, I’ve never thought I was in competition with them but I had to ask myself what can I do that would add value as a neighborhood blogger?  I also had a few concerns with some really yucky sites that pop up if you type my blog address in wrong.  I belong to a group called Neighborhoods Undressed which is made up of mostly real estate professionals and other related parties who blog under the same umbrella.  It is a great group and we all support each other.  So… I also had to admit that I do enjoy blogging – especially without restrictions either by a blogging relationship or self imposed.  For all these reasons, I plan on continuing my blog as a creative or frustrating release of stuff I feel like writing about,mixed in with neighborhood stuff and mostly real estate facts and information.  For anyone who has cruised by my blog or happen upon it…. I hope you like that approach.   Kerri Sheehan, Realtor   Keller Williams, GRSE LLC

King County September Real Estate Stats

The NWMLSrecently posted real estate stats for September.  These stats apply to  King County residential units not condo’s.  If you would like detailed information regarding the condominium market in Seattle, please email me at kerriproperties@comcast.net and I will forward the requested information.

                                         08                 07                YTD 08          YTD 07

Closed Sales                 1,415            1,687              12,874            19,266

Avg Price                    $491,300     $563,645        $537,399      $569,580

Avg. time on market     73                  58                   74                    54

Pending Sales                1,767           1,541              15,494             21,068

New listings                  3,302             3,771            

Pending sales are up but we still have a lot of listings coming on the market so the time on market and the total months worth of inventory have not changed in a substantial way meaning that it is still a buyers market. 

Respectfully submitted by:  Kerri Sheehan, Realtor   Keller Williams Greater Seattle

Sycamore Construction, Inc.

www.sycamoreconstructioninc.com

 If you are thinking about a remodel, large or small – contact Sycamore Construction.  Working out of the Phinney Ridge area, Sycamore Construction can handle any remodel project you might have from a small bathroom or basement to large additions and garages.  They are especially adept at maintaining the integrity of old craftsman homes while updating them to fit their clients busy lifestyles.  Ron Donovan, the Principal and head contractor of Sycamore Construction has been in the remodel/building industry most of his life and has loads of happy clients.  Most of Sycamore Construction’s business stems from referrals.  Once you see their work, you will understand why.  They have a beautiful portfolio of past jobs and excellent referrals.  Not only have I worked with Ron on multiple remodel projects, I’ve been helping with the expansion of the business.  Maintaining the quality and integrity of the companies work is paramount.  If you are interested in learning more contact Ron at 206-619-6554.

Exceptional Value on Lower Phinney Ridge! $425,000.00

OCTOBER 16TH UPDATE:  This house went on the NWMLS on a Monday night, the sign went up 3ish on Tuesday, I held it open Tuesday from 3:30 – 6.  A couple came in that night who made an offer that was accepted Thursday morning!!!!  Opportunities abound for those ready to buy.  The upside future equity opportunity on this house is tremendous.  If you are ready to buy – there are loans available and even better, some great opportunities for first time buyers, those interested in new space and investors.  Call me at 206-660-7489 if you are interested in buying or selling. 

Welcome Home, This is the turn-key, old-world-charmer you’ve been looking for!  Enter to gleaming hardwoods and tons of natural light.  Updates include tuck-pointed chimney, remodeled bath, new electrical panel and service, and freshly refinished topnailed oak and fir floors.  Step out back to your beautiful back yard with a patio and fruit trees.  The 900 sq ft. unfinished basement and the 300 sq ft. attic both have high ceilings for future remodel to a finished 2100 sq ft house.  A master suit can easily be added upstairs and the basement has tons of potential.  Walk to Greenwood & Phinney!!  Beautiful street – close to everything.

CURRENT STATS FOR AREA 705

Area 705:  Ship Canal north to 145th.  I5 East to the sound.

Currently there are 685 Active Listings in this area with an average days on market time of 64 days.  The average size is 3 bedroom/ 2049 sq. ft and the average price is $574,152 with a median price of $495,000.

 As of today there are 158 pending sales.

In the past 6 months, 934 Sales have been recorded:  Avg size 3 bedroom/ 1,893 sq ft, 49 days on market with an average sales price of $505,877 which is roughly $10,000 less than the listing price.  The Median price for the past 6 months was $469,950.

The following is an interesting break down of the sales:

461 properties sold with in 30 days or less (equals 49.36% of all sales) at 99.29% of listing price. 

223 properties sold within 31- 60 days at 97.66% of list price.

Based on the sales in the past 6 months and the current inventory, we have a 4.41 month supply of homes on the market in area 705 which is not too extreme.   Surprisingly enough to a lot of people is the fact that there are some multiple offer situations still occurring.  One agent on our team reported that the last 6 transactions out of 15 where multiple price situations.  So, if you are in the buying wishy washy stage….it is a fabulous time to buy!  We still have decent inventories to choose from and the prices are at about 2006 level.

Written by:  Kerri Sheehan – Realtor, Keller Williams

It is a Great Time to Buy!

Remember back in 2006 when there was no real estate inventory and people were climbing all over each other to buy a house in Seattle?  Most houses had multiple offers, buyers had to pay money and pre-inspect not even knowing if their offer would be accepted and, everyone was run ragged.  My personal home purchase that year won out over at least 10 other offers – it was very stressful, even for an agent.  The interest rates at that time were around 6.25%.  Now, prices are back to the 2006 level, intereste rates have dipped below 6% AND the inventory levels are great.  Some houses are still moving the minute they come on the market and there are a few multiple offers here and there but, if you are a buyer, you have options and great intrest rates. 

Will the prices fall more?  Who knows but the stats so far look like things are leveling off  a bit in Seattle and with so many people relocating here for jobs it is just a matter of time before the inventories tighten up.  The experts still predict a housing shortage in 2010 but recovery could take until late 2009, or not. At this point it is anyones guess.  There are a lot of benefits to home ownership so if you are planning on being in your home for a number of years, now is a great time to buy – you have more options now than ever which means more opportunities to find that home of your dream.

Written by:  Kerri Sheehan, Realtor -Keller Williams, GRSE LLC