Mortgage Market Stabilizing?

According to CNNMoney, the mortgage market may have started to turn around finally due to some new statistics that showed fewer borrowers delayed their payments on mortgages in the last three months of 2009. In 2009, the percentage of mortgage loans that were late was at 9.64%, which have fallen to 9.47% in the fourth quarter (National Delinquency Survey). Economic and real estate analyst’s say this is only a slight change, but this change does show a reduction in mortgages heading towards the foreclosure process.

National Average Mortgage Rates: (Provided by Bloomberg.com)

30-year Fixed: 5.09
15-year Fixed: 4.51
30-year Fixed Jumbo: 5.93
15-year Fixed Jumbo: 5.44

*These rates should not be relied on. Talk to your mortgage broker, bank, etc. for more information on interest rates.

Extended Tax Credit Ends in April!

As I promised a while back, here is more information on the tax credits (and a reminder not to wait much longer):

For those of you that were excited that the $8,000 tax credit for first-time home buyers was extended, but haven’t done anything about it then you might want to get the ball rolling. According to the IRS, if first-time home buyers want to receive the $8,000 tax credit, they need to enter into a binding contract to buy a house before or on April 30, 2010. Also, they must close the deal before June 30, 2010 to receive the tax credit. There is also good news for current homeowners. Under the new law that was passed on Nov. 6, 2009 that extended the tax credit, homeowners that have lived in their homes and used the same home for primary residence for at least a consecutive five years can receive a $6,500 tax credit towards buying a new home. For additional information on these tax credits, please go to IRS.gov.

Children’s Hospital Expansion and Condos

Congratulations to the Laurelhurst neighborhood and Seattle Children’s Hospital. Although there are more hoops to go through, Seattle Children’s Hospital has reached an agreement with the Laurelhurst Community Club to build a scaled back expansion of the hospital. One of the hoops that Children’s Hospital still faces is the hospital had agreed with the homeowners to buy their 136-unit condo building for $93 million or an average of over $683,000 per unit. Per the Seattle Times (see last 3 paragraphs) a third party is questioning if Children have paid enough for the condos and refers to the law that requires that lost housing be replaced.

Why wait for an auction to buy a condo?

Auction of condominiums have been on the rise in this recent market and while I am sure there are good deals to be had you have to avoid getting ‘caught in the moment’ and bidding more than you planned. It also comes with complications such as having financing set up prior to the auction, etc. But you can avoid these extra complications and still get a good deal outside of an auction. I recently represented a buyer who purchased a brand new condominium unit in a building where several units were auctioned. In my opinion my buyer did better than anyone at the auction. While I cannot say this indisputably because not all units are the same, I say it with much confidence. The reason I was able to negotiate effectively for my client was not only because of my charm, negotiating ability and my nearly 15 years of experience, but because builders who are selling condominiums are very flexible and are willing to negotiate on the purchase price outside of an auction. In addition, unlike during an auction you can ask for (and it is not unheard of to receive) concessions for such things as a better parking spot, for some upgrades to the unit, for the builder to buy down the rate on the loan, etc.

So do not wait for an auction if you are interested in buying a condo; I can assist you. Learn more about me by clicking on my name: Nate Pearson.

First Time Home Buyer Credit Extended!

The first time home buyer credit of $8,000 which was due to lapse at the end of the month is in the process of being extended for seven months. Also there is a new credit of $6,500 for home buyers that have lived in the same place for 5 years. More details to come.

Seattle Times

How long does it take to fill a hole?

I guess it matters how big it is...but if it is as big as the hole on Second and Pine behind the Bon Marche parking lot (yeah, I know it is no longer the Bon Marche, although there is still a sign saying Bon Marche on the northwest corner) then it takes eight to ten weeks. The developers still plan to build a condo/hotel project there but in the mean time they are going to operate the filled in hole as a parking lot until the capital market stabilizes. It cannot be cheap to fill in a hole especially it takes 2 months to do so, so the project has to be years away.

Seattle Times

Woodway Mansion Voted Down

Woodway is voting down a $6.1 million bond measure that would have been used to purchase a 1930's mansion to convert into the city hall and community center. See Seattle Times for more details. The reason it caught my attention is this would have been the largest purchase in Woodway since Ewing & Clark sold a 9 acre estate in December 2006. See Woodway Estate.