Latest from Zillow

Zillow has some great research tools and puts out regular research reports available for free to anyone interested in learning more about our housing market. They have reported that the three most perceived barriers to homebuying among renters are: inability to finance the down payment, qualifying for a mortgage, or dealing with existing debt. By far, the biggest concern in every major market was coming up with the down payment.

There are so many financing programs available for first-time homebuyers that it is truly remarkable that this fear exists. Many conventional financing programs allow for a down payment as low as 3-5.5%; allow for gifts from parents or loved ones; or even provide state-subsidized grants and tax credits that do not need repayment. Some programs such as VA loans for veterans and USDA for buying in rural areas provide 100% financing. The best way to find out if you can qualify for a mortgage is to speak with a mortgage lender.

In Seattle, home values are up 11 percent, while the selection of homes is down 10.5% from last year. "Low inventory, strong demand and tough competition will be the defining characteristics of this year's home shopping season," according to Zillow Chief Economist Dr. Svenja Gudell.

Zillow also reported that the median mortgage payment in the US takes 15.8 percent of the median monthly income, while the monthly median rent payments takes 29.2 percent of the median monthly income. These statistics come from the largest-ever survey of US home buyers, sellers, owners and renters.

Zillow also analyzed the mortgage costs of moving to a three-bedroom home from a two-bedroom home, an estimated 50% increase on average in their monthly mortgage payout. In many coastal cities or hotter markets like Seattle, a family might expect this move to nearly double the monthly mortgage payment.

Bathroom count can also impact a home's price. Nationally, upgrading to a house with one extra bathroom, but the same number of bedrooms, can increase the monthly mortgage anywhere from $386-$838, depending on the size of the house. Adding an extra bedroom or bathroom to an existing home may be a cost-effective option for some families.

According to Zillow, 90% of the sellers who sold quickly and for more than list price worked with an agent, and two out for three began working with an agent from the very beginning of their sales effort.

The full 200-page Zillow Group Report on Consumer Housing Trends is available free at www.zillowgroupreport.com.

Happy Investing!

Housing Trends

Welcome to my most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, dear blog reader, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general. 

Please click on this link to view the Housing Trends January 2016 Newsletter 
http://wendywonder.housingtrendsenewsletter.com 

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau, Realtor.org reports and other sources. 

Housing Trends eNewsletter is filled with local and national real estate sales and price activity provided by MLSs and the National Association of Realtors, U.S. Census Bureau key market indicators, consumer videos, blogs, real estate glossary, mortgage rates and calculators, consumer articles, and REALTOR.com local community reports. 

If you are interested in determining the value of your home, click the “Home Evaluator” link for a free evaluation report: 

http://wendywonder.housingtrendsenewsletter.com/dispContent.cfm?loadid=2&loadtype=0 

Sound decisions can only be made with accurate and reliable information, and I am happy to be a trusted resource for you.

Sincerely yours, 

Wendy Ceccherelli
Century 21 NW Realty

Local Real Estate News

No holiday for Seattle’s housing market

http://www.bizjournals.com/seattle/news/2016/12/05/inexhaustible-supply-of-homebuyers-means-no.html

Prospective home buyers rush to buy homes in response to rising interest rates

http://www.seattletimes.com/business/real-estate/panicking-seattle-home-buyers-spooked-by-rising-interest-rates-rush-to-buy/

Vancouver tax driving foreign buyers to Seattle and Eastside

http://seattle.curbed.com/2016/12/5/13844798/vancouver-tax-chinese-seattle-bellevue-eastside-market

Issaquah mayor convenes regional transportation summit

http://www.valleyrecord.com/news/issaquah-mayor-convenes-regional-transportation-summit/

New luxury condo tower to break ground in Bellevue in 2017

http://seattle.curbed.com/2016/12/1/13810306/bosa-bellevue-condo-tower-one88-insignia

Not even the colder months of the year can stop the South Sound housing market

http://www.theolympian.com/news/business/article119042158.html

The Foss is a hot spot for development in Tacoma

http://www.djc.com/news/co/12095558.html

Fircrest couple buys their own backyard from Pierce County

http://www.thenewstribune.com/news/local/article119275088.html

Tacoma may be looking for a new city manager

http://www.thenewstribune.com/news/politics-government/article119940133.html

Olympia and Tacoma among top October housing markets

http://www.businessexaminer.com/blog/November-2016/Olympia-Tacoma-among-top-October-housing-markets/

Seattle Housing News

Several news items in yesterday's Sunday Seattle Times about the housing market. The front page headline "Bidding Wars" describes the frenzied real estate market that I have blogged about here on several occasions. It turns out that the Seattle metro area is now the country's leader in the rate of bidding wars on home purchases, outside of the San Francisco bay area.

In fact, about 75% of all listed homes receive multiple bids here, and 56% sell for more than the asking price. This is double the national average, and up from 26% in Seattle from four years prior. Some desirable Seattle neighborhoods, such as Fremont, Phinney Ridge, Wedgwood, West Seattle and the University District have bidding wars on 90% of homes sold this year.

In the same front section of the paper, the Seattle Times reported on aggressive measures in Honolulu and other American cities to displace the homeless from their downtown tourist centers.

In the Business section of the paper, one popular column on real estate gave strategies that millennials have used to pay down student debt in order to purchase homes.

Another article reported on the Seattle City Council plan to scrutinize Airbnb, imposing limits on the number of nights that may be rented out and requiring more reporting to the City. The City's stated objective is to free up more long-term rentals at a time when demand for housing in Seattle is high. (See my previous blog last week on this topic).

Stay tuned to this blog for more updates on news affecting the local real estate market.

Happy Investing!

Getting Into the Real Estate Game!

I just signed papers today to close on a HUD home in Lakewood, that I am buying with a builder partner to fix and flip in the next six months. It is pictured here in its present condition. Because this is a major fixer, we will be putting $50-60,000 into renovations. Had I been using contractors other than my builder partner, I would be spending $100-125K for the same work. Not for the feint of heart....

I am financing the deal with 0% APR credit card financing at less than 4% for 12 months. My builder partner has a private loan with a private lender he has used previously for remodeling.

I also hired a VA in India this morning, who is researching FSBOs in Seattle for me. This is an assignment from real estate investment guru Ron LeGrand that is due tomorrow morning. We students are looking for homesellers willing to sell subject to existing mortgages, or on a long-term lease purchase.

And finally, I have joined Home Buyer Network as a Deluxe member to identify motivated buyers and sellers. Many sellers need to sell quickly in this down market, and I have a variety of creative acquisition techniques to enlarge their pool of prospective buyers. Check it out at www.fastsell.net if you know anyone who is having trouble selling their home and needs to sell quickly.

If you are not out there making offers, you are not in the game. This is as good a market as any in which to be an investor. No, actually, it may be the BEST market for investors with cash, knowledge and experience! If you don't have all three, partner with someone who has what you need - and GET IN THE GAME!

Be smart, but take action! Contact me if you think I can help!