The Next Real Estate Cycle Has Begun!

As I predicted last month, we are now seeing the beginning of the next real estate cycle. On August 6th, the Northwest Multiple Listing Service reported that sales in July remained strong compared with June (which had the highest sales volume in the last 10 months) and prices edged up slightly.

The newly passed Housing Bill's first-time buyer incentives are taking effect and sales of entry & mid-level housing are on the rise again. I have seen a marked increase in showing activity at all of my more moderately priced listings and even sold one of those listings just this week, within 7 days of the home coming onto the market. This hasn't happened since last June, folks.

So what does this mean? Well, if you're thinking about buying a house, you need to do it NOW. There are tons of great choices out there, but the best houses are going to get snapped up fast so call your agent and go get one of them! Despite the constant media hype about the mortgage market being in such turmoil, the facts are that moderately to well-qualified buyers can still get great loans at great interest rates. And, thanks to the housing bill, first time buyers (or buyers who haven't owned real estate in the last 3 years) can get a tax credit of up to $7,500 this year if they buy. Could you use a new home and up to $7,500 more bucks in your wallet come next April?

If you need or want to sell your home, go ahead and do it. Just be sure that you make your home stand out from the competition. Be sure the curb appeal is great - fix up the landscaping, paint, etc. Be the shiny penny on your block! Make any necessary repairs, paint the inside if you need to, replace worn carpets and de-clutter the house. For more tips, read my blog post from a couple of months ago about selling your home in this market.

The bottom line for our area is that employment opportunities are great, people continue to move here, home prices are more competitive than ever (but starting to rise again!) and there are great housing choices available. Development is limited due to a lack of land, unless you want to commute for an hour+ a day and do that while buying $4.00 a gallon gas, so this will only increase pressure on housing near our employment centers as we move forward in time.

Get off the fence and buy your home now. Prices are only going up from here.

Happy Buying!
Tim

Short Sales Are Short on Results

Are you a homebuyer or investor that thinks buying a “short sale” listing will get you the best deal in today’s real estate market? Although the idea of a short sale – a sale where the bank/lender takes less than the outstanding loan balance on the loan when selling a property – may sound like a good way to find a bargain, you may want to think again.

A good friend and colleague of mine, Angel Whitney of Countrywide Home Loans, sent me this great article from the Washington Post on the subject a few days ago and I thought I would share it with you: Short Sale Article . In a nutshell, very few Short Sales actually result in a successful closing. And, often times, the property might not actually be subject to a bank-authorized short sale to begin with.

Besides the reasons the Washington Post cites, in Washington State, we have a new distressed homeowner law that took effect on June 12th. Buyers of Short Sale properties should be very familiar with this law because you could land yourself in some seriously hot water if you are not careful. This goes for buyers who prefer to work on their own and buyers who work with a Realtor to purchase properties. Many real estate brokerages won’t even allow their agents to participate in these types of transactions any longer, fearing the legal repercussions of a botched deal.

Take a read through the article and the new Washington State law and think long and hard before you decide to be a Short Sale buyer or investor. There are tons of great buys out there right now and many, many sellers who are not in immediate distress that are willing to make a deal to sell in this turbulent market. Just be sure you don’t wait too long to act, though – with the recent passage of the housing bill we are already seeing a large increase in buyer activity; showings at our listings are going way up and reasonable offers are starting to come in again. It’s only a matter of time before our “buyers market” goes neutral and then tips back to the sellers again.

Take action – but do it wisely!

Happy Buying & Investing,

Tim