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%.

Home Prices Up 10.6% This Year

Compared to cities tracked in a national index, Seattle home prices rose  faster between February and March than 18 of the 19 other cities that were tracked. The 12 month rise was still within the national average. According the Standard & Poor’s/Case Shiller home price index, Seattle prices rose 3.0 percent for the month and 10.6 percent for the year.
Compared to a year ago, U.S. home prices jumped 10.9 percent in March which was the most since April 2006. More buyers are bidding on a small supply which is driving prices higher, making the market more competitive as well as improving the housing market. Phoenix had the highest annual gain with 22.5 percent followed by San Francisco with 22.2 percent and Las Vegas with 20.6 percent. New York had the smallest annual increase with only 2.6 percent.
Although the market is seeing higher gains, many home owners are not putting their homes on the market which is contributing to home prices rising and encouraging builders to heighten construction. Applications for building permits rose in April making it the highest level in close to 5 years. If you're looking to buy or sell your home, contact your local real estate agent today.

Annual U.S. Home Value Appreciation Up for 6th Straight Month

According to the April Zillow Real Estate Market Reports, U.S. home value continues to climb. April was the sixth consecutive month that home values exceeded a 5 percent climb. This is the largest streak since 2006. The streak should not be expected to last. As more inventory is offered in the market some home prices will have to fall to level out with the rest. The Zillow Home Value Forecast predicts a 4 percent climb in the next year although most markets have already hit bottom.

National rents declined 2 percent in April compared to March. Demand for rental properties is still strong. Many investors are buying homes, fixing them up and turning them into rental units. Because of this, many markets are seeing less inventory and sharp home value appreciation brought on by the investors. Over the past month there has been a slight increase in inventory in some markets as more housing is constructed as well as more sellers enter the market. If you're interested in selling or buying a home, please contact your local real estate expert today.

The Housing Market is Heating Up and Many Homebuyers are Clueless

According to a study conducted by Zillow, when it comes to understanding mortgages, buyers answered basic questions about terms, lenders and financing wrong one third of the time. The study of over 1,000 prospective and current buyers, which was conducted in April found that 34% didn’t know the meaning of the term “annual percentage rate,” 31% of buyers didn’t think that they could get a mortgage for less than 5% down, and 1 in 4 were under the impression you should close with the lender who per-approves your mortgage. It’s important for buyers to shop around and compare rates  and reviews before finding the best loan for them. The results also showed that 34% of surveyors thought that lenders were required by law to charge the same fees to all clients for credit checks appraisals, etc, which is a false assumption. Fees will vary between bank to bank, and sometimes can be negotiated.

It can be difficult to choose which is the best deal for you, if you don’t understand what the various mortgage terms mean. The APR, or Annual Percentage Rate factors include fees, origination and underwriting fees, and other costs borrowers use to calculate the actual cost of loans. This lack of knowledge can really hurt your overall savings. Many buyers believe they need a down payment of 5% bare minimum, but loans given by the Federal Housing Administration can actually only require 3.5%. Many buyers also begin shopping around with financing in place so they’re able to move quickly on a home they really want, and according to the study, 26% of buyers believe once they’re pre-approved, they must honor that loan in closing, but that is far from the truth; there is really no obligation. If buyers see better loan terms available, they should take them! For more information for buyers and sellers, visit CNN Money.