Seattle Housing Prices Reach Biggest Year Over Year Gain Since 2000!

Seattle housing prices continue to rise, and have jumped another 12.1 percent in April from a year ago, according to the Case Shiller price index, released today. Our housing market posted a slight gain of 2.7% from March, the biggest month over month increase we’ve seen since 2000! All other cities in the 20 city index also posted gains except for Detroit. 
There were 12 cities overall that posted double digit year over year gains including Seattle, while cities like Las Vegas, San Francisco, phoenix, and Atlanta posted gains of over 20%. In general, the housing recovery is getting stronger, and more sustainable, and ready to ease home buyers and sellers back to the marketplace. If you’re looking to buy or sell your home int he Seattle area, contact your local Real Estate agent today.

Seattle Homeowners Buy Air Rights

The newest trend in the Seattle Real Estate Market isn’t adding another story, or buying a summer home on the Eastside; its all up in the air. According to King 5, The growing hype over “air rights” has homeowners in neighborhoods like Magnolia, Blue Ridge and Somerset in Bellevue scrambling to own the air above their homes. It is becoming more popular as our population density increases, and homeowners can’t spread out and extend their homes, so as the population increases, we build up. To prevent a neighbor from building upwards and blocking the view, many homeowners are will to pay a hefty price to protect their views.
According to King 5, two homeowners in Magnolia purchased the home next to theirs for $600,000 because they were worried about the damage a new neighbor could do to their waterfront view. They rented out the home for 9 years, and then finally sold it, but still retain the air rights above the property. They ended up asking for $100,000 less than the average asking price, and as a result the new homeowners aren’t legally allowed to build up or add a second story to the home. Generally these are rights can be anywhere between $50,000 to $250,000, but every home is different. Bill Gate’s air rights are in the upward millions. But homeowners that do own their air rights agree it’s money well spent to protect their views.

5 Steps to Take Before Buying Your First Home

With the housing market heating up again it has become more competitive and lenders are demanding more documentation regarding the sale process which means that as a first time buyer you want to be prepared and not have anything that can snarl the process. The following 5 steps will help a first time home buyer prepare for their first home purchase.
1.  Be sure to check your credit report. Make sure that there isn’t anything that shouldn’t be on there such as paid off balances, fraudulent charges or even family members’ credit. Your credit should be as clean as possible. Pay off any and all debt possible. If you feel the need to cancel any credit cards, do so strategically. If you decide to cancel multiple credit cards in a short time period be aware that can send out red flags to lenders. The best thing to do is to close the newest cards. Lenders like to see that you have a long standing relationship with credit companies as well as have more credit available a month than what you spend. It is also a good idea to have a savings account.
2.  Create a monthly budget so that you know what to expect spending wise when you buy a home. Wright down all your finances and as you save money for your first home, live as if you are making a mortgage payment so that you will be prepared spend less money once the home is bought. Be sure to stick to your budget.
3.  Be sure to find a good agent to help you in the search and buying process of your first home. Your agent should be showing you homes with in your price range, listen to your wants and needs pertaining to the house, help you become a strategic bidder, guide you through the process and they should be concerned about making you happy and not solely about their commission.
4. Find a good lender. It is important to find a lender that explains all aspects of the loan to you and one that is willing to look over your credit report with you and give advice as to what you can do to improve it. Be sure to interview several lenders before choosing one and wait until you find one you are happy with before having your credit checked. It will be another red flag and bump on your credit report if it shows your credit has been checked several times within a short time period. Do not settle for what may seem like the best deal such as settling with a lending company which you found and signed up with online. You may get a good rate but when the time comes to speak with an agent you may have difficulty getting a hold of one.
5. Keep a look out for properties and be ready to make an offer. The market has become competitive and you want to be quick at making a wise and competitive offer. Don’t make large purchases such as a new car which may lower your housing budget. When you find the house you are interested in, call utility providers and ask for usage history or contact the HOA so that you are aware of the average costs of living at a certain property and you don’t end up going over budget. Remember to continue to live and spend as if you are already making house payments so that you don’t end up under budget.

May Stats Preview: Inventory and Sales Are Up

Based on King and Snohomish County public records, foreclosures are   slowly decreasing to normal levels while inventory rose for the second month in a row. Measured by the number of “Warranty Deeds” filed with King County, sales rose 15% from March to April and were up 28% year-over-year. In Snohomish County, sales rose 8% month-over-month and 26% from May of last year.
Foreclosures in King County fell again but were just above last year’s level. Although Snohomish County increased in foreclosures, they are still at their second-lowest level in the last 11 months.
Buyers will be happy to hear that inventory in King County rose 15.6% this year compared to 2.3% between April and May of last year. Listing fell 3.1% last year in Snohomish County. This year they were up 6.0%.