Chris Cross Real Estate Group October Newsletter

 

1 minute housing market update.  Take one minute to update yourself on what's happening in your local housing world.

As a real estate professional, I inevitably get asked about current market conditions, whether now is a good time to buy or sell, or what are home prices like in my area.  These questions are best answered with statistics because the real estate market is constantly in a state of flux. With that said, I've prepared a monthly newsletter that provides data to answer these, and other similar questions.

September by the stats...

This September the 4-county Puget Sound Region had 7,179 pending sales. The last time we had over 7,000 pending sales in September was in 2005. In September 2010, the NWMLS reported only 4350 pending sales in the 4 county area.

Closed sales jumped 17.5 percent, with year-over-year sales rising from 7,020 finished transactions to 8,245. 

Single family homes in King County commanded the highest median price at $490,250, up 6.6 percent from the year-ago figure of $460,000.

Pending sales continue to outnumber new listings, resulting in inventory declines and rising prices in most areas....

House-hunters who procrastinate may have even less inventory to choose from in the upcoming winter months. It's predicted that the number of listings coming on the market  will drop approximately 50 percent every 30 days compared to spring and summer months.

Mortgage Rates:

ProductRateChange Last week

30 year fixed   3.84%     -0.03%     3.87%

15 year fixed     2.87%    -0.08%      2.95%

5/1 ARM            3.02%     0.00%      3.02%

15 fall home maintenance tasks to tackle now:

Clean gutters and downspouts. Leaves and debris gather in gutters, which can cause ice dams and other water damage when snow falls and then melts, or during rainstorms. This is an easy task to do yourself if you can climb a ladder safely.

Remove leaves. Not only do you want the leaves out of your gutters, you want them off your roof and off your lawn. Despite what some may believe, letting leaves decay on your lawn does not provide fertilizer. "It's actually helping fungus and mold build up, which can kill your lawn," Ingram says.

Repair any damage to your roof "Anywhere you had shingle damage, that needs to be fixed and replaced," says J.B. Sassano, president of Mr. Handyman, which franchises handyman services nationwide. If water can get under your shingles, it can get into your home and cause damage.

Clean your chimney. Have a chimney sweep come in every year to check your fireplace for safety and clean out the remains of last year's fires. "If you use your fireplace regularly with wood, you've got to get that soot out of there," Ingram says. You also want to make sure that the cover to your chimney is intact and that birds or other critters haven't chosen to move in, Sassano says.

Check smoke detectors and carbon monoxide detectors. It's smart to test the devices and replace the batteries every six months, making this a chore for fall and spring. Also, make sure you have enough fire extinguishers and that they are in the right place.

Change filters in heating and air conditioning units. Most forced-air systems work better when the filters are clean. While some filters are advertised to last several months, people with pets or old houses with a lot of dust should change filters monthly.

Caulk around the windows. Cold air can easily enter your house around windows. Caulking wears out after a few years. This is a chore many homeowners can do themselves for less than $20.

Listings of the Month: 

Phinney Ridge, Seattle Tri-Plex for Sale-$979,000

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For more info go to: Phinney Ridge Tri-Plex for Sale

Renton Highlands in Honey Brooke West-$425,000

• 4 bed plus huge bonus room
• 2 story home plus den
• 3 car garage
• 2599 SF
• HUD Home!
• For more info go to: Renton Highlands Home for sale

Referrals:

If you know of someone who is looking to buy or sell a home we would love the opportunity to help them. We are a team of 4 experienced and passionate real estate professionals who strive to provide the highest level of customer service, market information, negotiating, and communication.

Happy Fall !                                     

Chris, Kim, Shelia, and Lilia

The Chris Cross Real Estate Group

Facebook                    Website                     Email Us                    Blog                   m: 206.465.2813                   My Mobile Search App

Alki Beach - Seattle Spotlight

How do you get the best Seattle skyline views?  Hop on over to Alki.  The panoramic view extends from Centurylink Seahawks Stadium and Safeco Mariners Field north to the iconic Space Needle.  Drive over on the West Seattle Bridge or take the Water Taxi from downtown Seattle.  While on Alki, dine a Salty's or Cactus and definately walk the beach.  

Alki Real Estate:  http://www.urbanhomequest.com/listings/areas/54378/

Reduced! Issaquah - May Valley, 3 bed home - $256,500

3 bed, 2 bath, 1560 SF ranch home on 3 acres.  

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Chris Cross Real Estate Group, Keller Williams Realty.

Price Reduced! 3 bedroom Renton Townhome Condo only $185,250

A terrific towhome condo with 3 beds, 2 baths, 1298 SF in the heart of the Renton Highlands.

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Chris Cross, Keller Williams Realty - Chris Cross Real Estate Group

Keywords:  Renton Condo, Renton Highlands Townhome, HUD Renton Condo, HUD Renton Townhome

Open house, Renton Highlands 2 story home - $425,000 on 9/19 and 9/20/15

A terrific 2 story home in the Honey Brooke West neighborhood of the Renton Highlands.  New in 2008, this resale has 4 beds, a den, a bonus room, 2599 SF and a 3 car garage!

Open Sat and Sunday Sept 19th and 20th, 2015 from 12 to 3pm.

For full details, click below:  

http://www.chriscrossrealestate.com/renton-highlands/

Video - This Month in Real Estate August 2015

New Federal Way Madrona Meadows Listing - 3 bed, 2.5 bath, 1729 SF

A terrific 2 story home in the quiet neighborhood of Madrona Meadows. Featuring 3 bedrooms, 2.5 baths, 2 car garage and 2 living areas over 1729 SF of space. The large master suite has a double vanity, a separate bath and a walk-in-closet. The hardwood entry leads to a sunken living room with a gas fireplace and a slider to a patio and oversize yard on a 7083 SF lot. New roof in 2013, newer paint, mature landscaping and solid construction make this a great find! All appliances stay.

• $280,650
• Open Sunday 8/23/15 from 1 to 4

Seattleites have two new tools to monitor what's being built in their city

Seattleites have two new tools to monitor what's being built in their city

Real estate professionals and others interested in monitoring what's being built in Seattle neighborhoods can access two new tools: Shaping Seattle: Buildings and Seattle in Progress.

"Shaping Seattle," released by the City of Seattle's Department of Planning and Development, allows users to click on various points on a mobile-friendly map to see details and renderings of major projects under development around the city. Users can view/download each project's design specifics, illustrations, permit statuses and schedule of upcoming community meetings. The interactive site also invites comments. 

The city's site follows last fall's unveiling of a desktop and mobile web app called "Seattle in Progress." It's the creation of Ethan Phelps-Goodman, who describes himself as a software developer, data scientist and civic organizer. 

In announcing his creation, Phelps-Goodman said he is motivated by his belief that technologists need to play a more conscious role in shaping the cities in which they live. His tool is intended to "inform and engage residents in local land use and building design decisions." To accomplish that goal, he partners with businesses, non-profits and policy makers "to create technology that matters to Seattle."

In comparing the two tracking tools, GeekWire co-founder and editor Todd Bishop said an advantage of Seattle in Progress is that it is designed for mobile use, using location-based technologies and a lightweight image viewer. People can "easily see and view project documents on their phones when they're walking around a neighborhood and find themselves wondering what's going up on a specific block."

Bishop said the city's site shows many more projects than Seattle in Progress. "That's because the city includes many projects that have already been completed, which actually makes it more difficult to get a sense for current development projects in a given area," he noted.

In the first nine months since launching Seattle in Progress, the developer reports logging more than 60,000 unique visitors, which he says is "far more people than have ever been engaged in the design review process before."

Seattle in Progress offers a "Pro" subscription for professionals that need more powerful monitoring and analytics on the new construction pipeline. It offers both mobile and tablet interfaces. 

The developer told GeekWire he is also working on an update to the free version to help residents understand development at a neighborhood level "in a way that's never been possible before."

Asked about the new competition from the city, Phelps-Goodman told GeekWire that he's proud his work has led the City to update its tools, adding "and I'm flattered they've chosen to model their new site after Seattle in Progress." He said he hopes there can be a more direct collaboration between the two entities, but commented, "In the meantime, I'm happy to continue leading by example."

-NW Reporter

This Month In Real Estate Video - July 2015

http://www.kw.com Check out the national numbers for July!

New Crown Hill Listing! $868,500

A spacious & beautifully finished 2 story craftsman home rebuilt in 2005. The expansive 7650 SF lot has a mature backyard including a large lawn, fire pit & play structure. Inside is an ideal 3740 SF floor plan with a great room concept. The chef's kitchen and living area flow nicely to the country style back porch. On the top floor you'll find 3 beds, including a big master suite, 2 baths & laundry. The finished basement has a large family room, 2 beds & a full bath. Country living in the city!

Green Lake (Greenlake) - Seattle Home Search

Green Lake (Greenlake) Seattle is one of the most desirable areas to live within the city limits.  Based just 5 miles North of downtown Seattle, the location offers easy access downtown via 2 freeways, buses, and great bike routes.  

Search all Green Lake homes for sale:  http://www.urbanhomequest.com/listings/areas/29079/ 

Bordered by the Woodland Park Zoo, Green Lake has a fantastic crew house, boat rentals, community center, pool, kids playground and baseball fields.  Historically, Green Lake's Aqua Theater featured the Aqua Follies until 1965.  The Green Lake Bathhouse still has plays today.  

Looking for some excercise?  The path around Green Lake is 2.8 miles for walking and running and wheels.  Swimming is great with no power boats allowed on the lake.  

Still looking for a great bank owned deal in Seattle...?

The U.S. Department of Housing and Urban Development still owns great homes which are a great opportunity for home buyers.  Visit www.HudHomeStore.com for the direct listings of all the HUD homes for sale.  Here are some tips from me having sold over 125 HUD homes:

1. HUD gives "owner occupant" buyers the first opportunity to submit offers.  Therefore, you are not competing against investors with "all cash" and no contingencies.

2. HUD accepts the highest net offer regardless of the type of the buyer's financing.   For instance, a zero down buyer can outbid a cash buyer by $1 and win the bid. 

3. HUD does not evaluate bids based on typical terms such as close date, financing contingency, inspection contingency, and EARNEST MONEY amount.  The only criteria for bid acceptance is highest net offer to HUD.  The net offer is purchase price, less any seller paid closing costs requested.

4. HUD allows a 15 day inspection period but sells it's homes firmly "as-is".  Therefore, owner occupants may inspect the home to their satisfaction but no negotiating is allowed.  Owner occupants may cancel after their inspection or continue with the sale. 

5. The terms and conditions of a HUD home are not negotiated.  The closing date is typically 45 days, the earnest money is typically $1,000, and the inspection period is 15 days.  HUD evaluates bids only by the net price to the seller.  Otherwise, all bidders are on the same page.

6.  HUD lists their homes in terms of FHA financing.  When you see "Insurable" in the listing, it refers to FHA Insured Loan Status. Roughly 80% of HUD homes in WA are listed as FHA Insurable.  Hence, these homes qualify for FHA loans at 3.5% down.  Some homes are Uninsured for FHA loans and are eligible for investors to bid on the 6th day instead of the 15th day on homes that qualify for FHA loans.  If the home needs repairs under $5,000 to bring it up to FHA loan status, an FHA 203b loan with escrow repair may be used to repair the loan after closing.  These repair costs are added to the buyers FHA loan and distributed to the buyer after closing for the required repairs.  

7.  Many HUD home buyers may utilize a REHAB loan or FHA Rehabilitation Loan (FHA 203k) to repair and improve the home after closing.  FHA allows the buyer to add money to the loan form improvements up to the buyer's qualification limits and/or improved appraised value and the FHA loan limits.  In the Seattle area, buyers can improve most homes with an FHA 203k loan up to over a $400,000 loan.  Use the FHA 203k to redo the kitchen, roof, bathroom, flooring and septic.

8.  HUD homes may also qualify for VA or Conventional financing however viewing the DISCLOSURES document on HUDhomestore.com will help clarify what repairs, if any, are required for FHA loans and repairs should be evaluated for other financing eligibility since no repairs can be completed prior to close.  

Download our KW Mobile Search App!

Keller Williams Realty Mobile Search App

Download it here: http://app.kw.com/KW1F7E6J/

Or text "KW1F7E6J" to 87778 to download the Mobile app.

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REVIEWS:

"Best app in real estate. I can search for properties all over U.S. and Canada. Awesome! Love that it immediately shows the nearest property without having to click one button." -KW App Reviewer    

"I love how the app brings up properties closest immediately. When I'm using a mobile search it's because I'm looking for more information about a home I see as I drive by." -KW App Reviewer

Seattle Area Housing Statistics for April 2015

Spring market "not waiting for tulips"...But limited inventory frustrates homebuyers

By NWREporter, February 2015

Home sales this super bowl season outpaced a year ago as sidelined buyers emerged to compete for limited inventory, according to brokers who commented on January activity.

New figures from Northwest Multiple Listing Service show year-over-year increases in pending sales, closed sales, and prices, while inventory fell by double digits.

"The current inventory of homes available for sale has never been lower in my 22 years as a real estate broker," lamented MLS director George Moorhead, designated broker and owner at Bentley Properties.

The number of active listings of single family homes and condominiums fell from the year-ago figure of 19,195 to 17,082 at the end of January, a decline of 11 percent. Twelve of the 23 counties in the MLS system reported double-digit drops. For the four-county Puget Sound region, the selection was down 12 percent. 

When measured by months of supply (the ratio of sales to listings), Northwest MLS figures show it has dipped below four months. In King County, there is only about two months of supply. In general, brokers say four to six months is considered to be healthy balance between supply and demand. 

Blame brisk sales, as the number of pending sales, at 7,658, surpassed the number of new listings, which totaled 6,989. A comparison of figures for the four-county region for the past 15 years indicate January's pending sales exceeded any of the prior years (see chart). 

"We saw sales at a higher pace this super bowl season than last year," remarked J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. 

Closed sales increased more than 3.7 percent compared to a year ago, rising from 4,306 completed transactions area-wide to last month's total of 4,467. 

Scott said multiple offers of most new listings are common. "We are entering February with a severe shortage of homes for sale in the neighborhoods close to the job centers, and we expect that shortage to continue throughout the spring market," he stated. Buyers need to be "buyer ready" so they can react quickly. Brokers recommend getting preapproved for a mortgage, which can give potential buyers an edge in a fast-moving market.

Home prices for single family homes and condos are also tracking ahead of the year-ago pace. The median price on last month's closed sales was $279,000 system-wide, up about 9.4 percent from the year-ago price of $255,055. King County reported the highest median price at $390,000, up 6.9 percent from twelve months ago.

For the 3,880 single family home sales that closed last month, the median price was $288,000, about 8.7 percent higher than a year ago when the price was $264,995. Scott said a 4 percent increase is the historical norm.

Condo prices spiked more than 13 percent, rising from $194,000 area-wide to $219,900. In King County, which accounted for nearly six of every 10 condo sales, prices rose 6 percent, from $225,000 to $238,500.

Moorhead believes inventory shortages are due in part to hesitant sellers. "Sellers who would like to enter the market are holding off for two main reasons," he suggested, adding, "Either they cannot find the next home to move up/down to, or they purchased between 2005 and 2007 and may still be underwater." Sellers who were foreclosed or completed a short sale during the Great Recession are becoming eligible to purchase a home again, Moorhead noted. "This will bring an altogether new segment of buyers who are more savvy and cautious" so they won't repeat past mistakes.

Moorhead also credits new loan programs, revised loan programs, and a general easing of guidelines for buyers with making home buying more attainable. "The only holdback is inventory or credit scores," he suggested.

Northwest MLS director Frank Wilson echoed that notion. "It's almost the perfect storm: low interest rates, low inventory, pent up demand, and a pipeline of sidelines buyers who could not buy because of a past short sale or foreclosure." Their two year to three year waiting period is up and they are looking again, he reported. 

Wilson, branch managing broker at John L. Scott in Poulsbo, said the spring market is not waiting for the tulips this year - "spring has already sprung. We are seeing an increase in traffic at our open houses with more buyers out looking at our limited inventory."

Wilson also said brokers in Kitsap County are starting to hear murmurs of the second home market. "We have buyers looking for second homes along Hood Canal, and we fit the parameters of many Puget Sounders not wanting to drive more than three hours to reach their getaway house."

In Snohomish County, where closed sales jumped 11.5 percent from a year ago and prices surged more than 17 percent, broker Diedre Haines reported, "We have buyers in all price ranges out looking and anxious to buy."  She credits low interest rates, strong employment and economic conditions and "reasonable as opposed to exorbitant" appreciation with spurring activity. 

Despite all the favorable indicators, pending sales in Snohomish County rose only 3.5 percent compared to a year ago, noted Haines, principal managing broker in South Snohomish County at Coldwell Banker Bain. "Why?" she asked rhetorically. "Simple answer: We need more inventory."  

"The Seattle housing market is going gangbusters, but we're still starving for inventory," said OB Jacobi, president of Windermere Real Estate. "If open house traffic is any indication, there are LOTS of buyers out there looking for homes, so my message to would-be sellers is: If you're on the fence, it's time to jump off. The market conditions are so much in your favor right now."

Haines agreed. "Potential sellers should talk to their real estate broker and find out if now is the right time for them to sell," she suggested. 

Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership includes more than 21,000 real estate brokers. The organization, based in Kirkland, Wash., currently serves 23 counties in Washington state.

How to win in a competitive offer situation. Tips from the listing agent.

How do you beat out the other bidders?  Follow these tips to get your offer in the game.

1. Listen to your realtor.

2. If there are more than 3 offers, start higher than the list price so you come out of the gate swinging with a serious offer. Otherwise, a lower offers states "we are going to try and get away with a low offer but if someone else says they will pay more, then we will escalate.

3. Add an escalation clause. This clause says you will best any competing offer by the amount you choose up to a max amount. In other words, we agree to best any competing offer by $3,000 up to $489,000.

4. Write a letter to the seller, keep it basic about the house, you and the neighborhood. Be careful not to violate fair housing laws/language.

5. Do a pre-inspection so your offer is solid with one less contingency.

6. Offer to pay the seller's closing costs. In Washington State, this may include excise tax (1.78%), escrow, and title. If you are getting a loan, make sure this is OK with your lender.

7. Have your lender call the listing agent to reinforce your strong financing.

8. Show the seller you have the money set aside to bridge the gap between a low appraisal and the purchase price.

9. More tips from realtor.com:

10. Give the seller a non-refundbale earnest money and release it to the seller as soon as escrow clears the check. Having cash in hand after an expensive move may be of great benefit to the seller.

Phinney Ridge Home For Sale

Fantastic Phinney Ridge tudor for sale.  Timeless features, classic millwork, located near Green Lake and Greenwood.  

$785,900

This Month In Real Estate Video - May 2015

Market Insights: May 2015

HOME SALES

Home sales are up year-over-year.  5.2 million.  Seasonally adjusted annual rate
of home sales in the United States is 13.1% since one year ago and 6.1% since last month

HOME PRICE

Home prices have continued to increase year-over-year.  $212,100 is the Average home price in the United States and 7.8% since one year ago.  5.1% since last month

Mortgage Rates:

30-Year Fixed - 3.65%

15-Year Fixed - 2.92%

5/1-year ARM - 2.84%

Historical average - 8.90%