Archive for the 'Real Estate News' Category
Financial Report ~ June 1st
This will be a new regular feature to give you an update on the markets and how they affect mortgage rates.
Weekly Preview
Last Week: The Treasury markets saw some slight increase in interest rates in another volatile trade. Mortgage rates were essentially unchanged. The week was marked with Treasury selling another $113B of notes and surprising jumps in existing and new home sales (+7.6% and +14.8% respectively). Two reports on consumer confidence and sentiment were a little better than a month ago, but these are less significant than hard market data as both the Conference Board’s consumer confidence report and the U. of Michigan’s consumer sentiment report are mostly emotional readings predicated on how the stock market and interest rate markets are performing. By the end of the week, after continued high market volatility, the stock market ended with not much change from the previous week. The sovereign debt problems in Europe continue to be the dominant concern in the equity markets. Fitch, the rating agency, down-graded Spain’s sovereign debt rating from AAA to AA+, adding to the angst that debt issues may become more strained.
This Week: Expect more market volatility in the equity and interest rate markets. The stock market, based on the key indexes, is still too high given the concerns emanating from Europe and what we see as a slowdown in China’s expansion. The outward driver for US markets is captured in the movement of the euro currency; as it declines against the dollar, US stock markets will be pressured. The euro may find support at $1.20 dollars per one euro (Friday the level was $1.23). No Treasury borrowing this week; the giant this week is the May employment data on Friday (early estimates are an increase of 500K jobs with unemployment at 9.8%). Tuesday a key data point on the manufacturing sector (ISM index). Thursday it’s the ISM services sector report. Expect increased concerns that the US economy will slow based on the previous excessive bullish outlook that had rallied equity markets. No inflation and increasing concerns that the economic outlook is weakening will support low interest rates for many more months.
Think Big Work Small
Think Big Work Small is a Video Blog (Vlog) which is produced by two mortgage brokers down in California. A lot of the information they give is great for everyone. Some is just for mortgage professionals and some is just for real estate professionals, but there is enough good information for the general public that I think it will be good to feature here. So I’ll start posting these as I watch them and if there is something in the video I think would be good information for you, I’ll post it here and on my FaceBook page.
Trends in Real Estate ~ Interest Rates at All Time Low!
Interest Rates at All Time Low
Recently my broker, Windermere Professional Partners, pointed to a CNBC report that said interest rates were low due to the economic crisis in Europe. I thought that was interesting given the current real estate market. Go here to get that article.
Bankrate.com, which has been keeping track of mortgage interest rates for over 25 years, notes that the current interest rate on a 30-year loan is now at 4.87%. This rate is the lowest rate ever since Bankrate.com started keeping track. Even jumbo loans which are of prime interest in Gig Harbor are at all time lows. A jumbo loan – currently defined as a loan for over $417,000 – is now listed at 4.5%, which is down from close to 6% at this time last year.
“It’s the best time in our generation to buy,” says Mark Zandi, chief economist at Moody’s. “It may be the best time in any generation. Mortgage rates are so low and with homes prices down and lots of inventory, you couldn’t pick a better time to buy ….
So a couple of questions come to mind. First, why are interest rates at an all time low, and why aren’t more people in the market to buy a house, since this is a historically great time to buy?
Trends in Real Estate ~ 11 Tips to Building Green
This is the second of the two part series on Selling and Building Green. The first article dealt with getting your listing ready to be sold as a Green Listing. This article will deal with building a Green home. Building a Green Home is the hottest trend in residential and commercial building. According to U.S. Green Building Council’s Green Home Guide.
Green home is defined as:
A green home uses less energy, water and natural resources, creates less waste and is healthier for the people living inside compared to a standard home
The LEED System
The benefits to living in a green home are that it is healthier, more durable and more cost-effective. There is a rating system for energy efficiency called LEED (Leadership in Energy & Environmental Design) which is a voluntary, consensus-based standard to support and certify successful green building design, construction and operations. Architects, real estate professionals, facility managers, engineers, interior designers, landscape architects, construction managers, lenders and government officials all use LEED to help transform the built environment to sustainability. State and local governments across the country are adopting LEED for public-owned and public-funded buildings; there are LEED initiatives in federal agencies, including the Departments of Defense, Agriculture, Energy, and State; and LEED projects are in countries worldwide, including Canada, Brazil, Mexico and India.
Buyers & Sellers ~ High-End Homeowners Falling Into Foreclosure Trap
It’s hard to say it is a trap when you could see this coming for some time. An article I read on CNBC today talks about the trend of high end homes going to foreclosure or short sale. I’ve seen this in Gig Harbor since late last year. They correctly attribute this trend to the fact that luxury home owners could try to wait out the rough economy and now some cannot wait any longer.
Author Joseph Pisani also notes that lenders are much more willing to work with a luxury home owner on a loan modification or on a short sale than to take a high priced home back. Yet still, since last year, luxury home foreclosures have risen 121% and are likely to rise even further into 2011 according to prominent housing economists.
This chart shows that recently we have seen the trend in Pierce County of high priced homes entering the foreclosure market. Another chart below shows the number of homes in the Gig Harbor/Key Peninsula and North Tacoma areas for sale vs. sold and pending sales. This explains why banks are very reluctant to take back a high end home. For this chart I started with homes $500,000 or more.
So what does this mean if you are sitting on a luxury home in Gig Harbor and need to get out? First, as I advise all my clients and potential clients, talk to your lender. They may be able to work out a lower interest rate or payment plan that would keep you in the home. If that is not possible then you need to enlist the help of a REALTOR with short sale experience and one with a trained team of negotiators to work for you. This approach is the most successful way to get out from under a mortgage on which you are upside down.
Secondly, to sell a high end home, you have to do more to market it widely. Sticking a sign in the yard and even putting the home in a slick magazine doesn’t get it done anymore. Your home has to be on the internet and being seen all over the world. The smaller the market for a house, the more territory the marketing has to cover. I know where most of the buyers for luxury homes in Gig Harbor and North Tacoma come from, so I focus my marketing on where the buyers are. Most real estate agents don’t do this. If you are working with someone who doesn’t understand the new media model of marketing, not only can you expect to be on the market longer, but you are exposing yourself to the danger of foreclosure.
Over the last couple of years, a majority of my business has been in short sales. I have at my disposal an excellent team of negotiators who have worked with all major lenders. If you have a question on selling your home at a short sale please give me a call at 253-225-2158 or contact me here.
Trends in Real Estate ~ Going Green
In response to growing consumer demand for green homes and building practices, the National Association of Realtors® has introduced a new Green designation for Realtors®. While I don’t have this designation yet, I have studied the subject for some time. To be green in real estate can be broken into two subjects: building green and going green in an existing building. 
This article will be about how to make your existing listing green. Melissa Tracey states in her article: Is Your Listing Green? that there are five components to a green home:
- Design and size: Good site design and just large enough, as opposed to larger is better.
- Community connectivity: Located close to work, school, recreation and other basics.
- Energy and water efficiency: At least 15 percent or more efficient than others.
- Material selections: Use of some recycled and/or reclaimed products.
- Indoor air quality: Limiting use of materials with potential toxic effects and increased ventilation.
Spring brings U.S. housing renewal as aid ends
(Reuters) – Spring could signal a rebirth for the long suffering U.S. housing market even as the economy’s weakest link is stripped of government life support.
House sales will be stoked by buyers sprinting to cash in on a federal tax credit program before it expires in April. Signs the U.S. economy has begun to create jobs could also lift business.
Make no mistake, the recovery will be arduous due to high unemployment and foreclosures. But the sector is unlikely to nosedive once the government removes safety nets designed to elevate housing from its worst crash since the Depression, industry experts say.
“The doctor is pulling off the life support system hoping that the patient’s heart beats on its own,” said James Angel, associate finance professor at Georgetown University’s McDonough School of Business in Washington.
Home sales surge 36% in Pierce County
A recent article in the Tacoma News Tribune trumpets a rise in home sales in March but is it really? First here is the article:
Tax credit: Federal program helps drive 36 percent jump in Pierce County
An $8,000 tax credit and bargain home prices persuaded Desiree Snowden and her husband, Stanley, to buy their first home in Spanaway earlier this year.
“After 18 years of living in rental and military housing,” said Desiree Snowden, “we were ready to have a home of our own.”
The federal tax credit allowed the couple to pay off their debts. And the three-bedroom, two-bath home’s $209,000 price meant a $300-per-month cut in the their housing costs compared with base housing. Neighbors told Snowden the house was listed at $358,000 at one point.
365 Things to do in Gig Harbor
You may have noticed a Facebook badge on the right saying I am a fan of 365 Things to do in Gig Harbor, WA. This is a Facebook fan page I created to show all the great things to do in our fair city.
365 Things to do in Gig Harbor
I am constantly searching for more places, events, activities and just about anything else you can think of to do in Gig Harbor. Please go to the page and leave a suggestion for me. Better yet, become a fan!
I will be going to your favorite restaurants, taverns and businesses. I’m especially looking for your favorite out-of-the-way places, off-the-beaten path places and of course all your favorite places in and around Gig Harbor, WA.
You can also keep up with what’s going on in Gig Harbor by following me on Twitter. My Twitter name is @mullinsworld.
Selling Your Home in Gig Harbor? Top 10 Places to Find a Buyer
Trying to sell your home and having trouble finding a buyer? Well, maybe you are looking in all the wrong places! According to the latest report from the National Association of REALTORS, they are likely not from Gig Harbor. The latest statistics tell us that they could be coming from Los Angeles, Honolulu or even South Fort Polk in Louisiana. They are also moving here from Seattle, Olympia and Spokane.
For example, most of the inflow of buyers are coming from King County. For 2006 (the latest data NAR had) there was a net inflow to Pierce County of 1,350 households. Also note the Income Index. The income is much higher for those moving to Pierce than those leaving Pierce for King County. The income of those coming here is indexed at 91 vs. 79.
All indications are that this trend has gotten stronger and will continue as Pierce County remains a more affordable place to live. There are many reasons for this immigration into our area:
- Higher property taxes in King vs. Pierce
- Lower per square foot prices on this side of the Sound
- Higher quality of life
- Retirement
Because Gig Harbor home prices are higher than most other areas of Pierce County, home sellers will benefit by targeting the marketing for their homes to those areas where there is a high Income Index inflowing to the area.
In reviewing the top 25 Inflow counties around the country the higher Income Index leaders are:
- Orange County, CA – 166
- King County, WA – 91
- Kitsap County, WA – 84
- Anchorage Borough, AK – 83
- Los Angeles County, CA – 81
- Maricopa County, AZ – 81
- Snohomish County, WA – 80
- San Diego County, CA – 78
- Bexar County, TX – 77
- Riverside County, CA – 76
- Sacramento County, CA – 76
What does this mean for you as you try to sell your home? It means you need to be working with a REALTOR® who gets it. Your REALTOR® needs to be internet savvy because the people that are coming to our area are not coming to open houses or driving by the nice sign in your front yard. They are searching for properties on the internet. Your home needs to be easy to find in a web search and that means on Google Maps – like this:
or Yahoo! Real Estate, Craigslist, Truilia, Zillow and Realtor.com .
Ask your real estate agent if they market to the counties on the list above. Can someone in Seattle get enough of a feel for your house in Gig Harbor to want to drive over and see it? Is your property being promoted in a way that someone in Orange County would say, “Let’s move to Gig Harbor”?
If the answer to any of these questions is no, perhaps you are not listing your house with the right real estate professional. Simply putting your house on the MLS and putting out a sign and flyers will not work any longer.
If you have a question about selling your home in Gig Harbor give me a call at 253-225-2158 or go here and I’ll be in contact with you!
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