Sarah Jullion Real Estate

Is Now the Time to Buy Your First House?

By Sarah Jullion May 18th, 2012 · Comments (0)

Friday, May 18th, 2012

It’s been a scary few years for the housing market. But at some point, the nightmare has to end (please?). Is now the time? Should first-time home buyers consider jumping into the market?

After all, home prices have fallen 34% from their 2006 peak and mortgage rates are hovering at or near record lows.

On one side are those who argue that homes are more affordable than they have been in decades, based on how much monthly income a mortgage consumes and whether owning is less costly than renting.

On the other side, pessimists insist that the housing slump is far from over, and that prices will continue falling—perhaps as much as 20% or more. Click the link to read the Wall Street Journal debating both sides, and make up your own mind… is now a good time to buy or not?

Eric Lascelles, the chief economist at money-management firm RBC Global Asset Management Inc., says this is a remarkable time to be a first-time home buyer.

A. Gary Shilling, president of A. Gary Shilling & Co., an economic consulting firm in Springfield, N.J., says buying now is a terrible idea.

So what do you think?! I’d love to hear from you.

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Categories : Buyers, First Time Homebuyers, US Real Estate

Short Sale vs Foreclosure – Common Myths BUSTED!

By Sarah Jullion May 11th, 2012 · Comments (0)

Friday, May 11th, 2012

It’s likely you’ve heard the term “short sale” thrown around quite a bit. But what, exactly, is a short sale?

A short sale is when a bank agrees to accept less than the total amount owed on a mortgage to avoid having to foreclose on the property. This is not a new practice; banks have been doing short sales for years. Only recently, due to the current state of the housing market and economy, has this process become a part of the public consciousness.

To be eligible for a short sale you first have to qualify!

To qualify for a short sale:

Your house must be worth less than you owe on it.
You must be able to prove that you are the victim of a true financial hardship, such as a decrease in wages, job loss, or medical condition that has altered your ability to make the same income as when the loan was originated. Divorce, estate situations, etc… also qualify.

Now that you have a basic understanding of what a short sale is, there are some huge misconceptions when it comes to a short sale vs. a foreclosure. Now let’s take a look at the most common myths surrounding both short sales and foreclosures and LET’S BUST SOME MYTHS!!

Myth #1: There are no options to avoid foreclosure. Please know that now, more than ever, there are options to avoid foreclosure!

Besides a short sale, loan modifications along with deed in lieu are also examples of the many options. In most cases (but not all) a short sale is the best option. Either way, there are more options today than there have ever been to avoid foreclosure.

Myth #2: Banks do not want to participate in a short sale, or, it is too hard to qualify for a short sale.

Banks would rather perform a short sale than a foreclosure any day! A foreclosure takes a long time and creates a huge expense for the banks; a short sale saves both time and money. Banks have more foreclosure inventory than ever before, and certainly do not want any more.

Banks more than ever welcome short sales. Qualifying for a short sale is easier than you think, you need to have a true financial hardship, or a change in your finances and your house has to be worth less than what you owe on it. Not only do consumers, but banks now also have government incentives to participate in short sales.

… and there are more ‘myths’! Watch for my next post to see more Short Sale-Foreclosure Myth Busters!

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Categories : Foreclosures, Short Sales

Hit the bottom…?

By Sarah Jullion May 1st, 2012 · Comments (0)

Tuesday, May 1st, 2012

Every day there seems to be more positive news about the real estate recovery…Check out a quote by Ivy Zelman which appeared last week in a Wall Street Journal article Stunned Home Buyers Find The Bidding Wars Are Back.

“We very much believe we’ve hit bottom,” said Ivy Zelman, chief executive of a research firm, who was among the first to warn of a downturn seven years ago.

Earlier this week, she raised her home-price forecast for the year, calling for a 1% annual gain, up from a 1% decline.

Why is the quote from Zelman important?

She is an industry expert consistently recognized by Institutional Investor, Greenwich Associates, StarMine and The Wall Street Journal as an industry-leading analyst. She has been nicknamed ‘Poison Ivy’ for her harsh positions on housing over the last several years.

Now, Zelman is calling a bottom and projecting prices to moderately increase in the next twelve months.

Again, another expert on housing is calling a bottom; another bear turns bull.

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Categories : Buyers, Home Valuation, Market Updates, US Real Estate

Bidding wars erupt in Seattle

By Sarah Jullion April 21st, 2012 · Comments (0)

Saturday, April 21st, 2012

Keys hang on the wall of a five-bedroom row house for sale in the Logan Circle neighborhood of Washington, D.C., on March 25, 2012. About 2.43 million existing homes were listed for sale in February, the fewest for the month since 2005, the year U.S. home sales reached a record 7.08 million, the National Association of Realtors reported March 21. Photographer: Andrew Harrer/Bloomberg … yes! You read that correctly! With inventory low and jobs returning, well-priced homes are seeing multiple bids.

From Bloomberg Business Week:

Matthew and Carina Hensley offered $10,000 more than the asking price for a three-bedroom house in suburban Seattle, then lost out to one of seven other bidders.

Their $270,000 proposal last month came with a family portrait and a letter introducing the couple, their eight-month- old daughter, Harper, and their desire to build a family in the Renton, Washington, house with a yard backing onto a woody hillside.

Bidding wars, absent from most parts of the U.S. residential market since its peak in 2006, are erupting from Seattle and Silicon Valley to Miami and Washington, D.C. The inventory of homes hovers close to a six-year low, while an increase in jobs and record affordability are tempting more buyers.

The number of contracts to buy previously owned homes jumped 14 percent in February from a year earlier, the National Association of Realtors reported yesterday.

The key ingredients are in place for a housing recovery in the strongest U.S. job markets, where sales are outpacing new listings and banks have worked through the backlog of foreclosures.

The unemployment rates have fallen over the past year by more than one percentage point in the Miami, Phoenix, San Francisco, Seattle and Washington, D.C., areas, according to Bureau of Labor Statistics data.

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Categories : Buyers, Market Resales, Seattle

New Foreclosure Wave: What Will Be the Impact?

By Sarah Jullion April 18th, 2012 · Comments (0)

Wednesday, April 18th, 2012

KCM Blog reported two months ago that foreclosures will significantly increase this summer as a result of The National Mortgage Settlement. This month, both Reuters (Americans brace for next foreclosure wave) and CNNMoney (Flood of foreclosures to hit the housing market) concurred. However, we believe this increase in distressed properties will have a much different impact on the housing market than previous increases for three reasons.

1. Demand Will Absorb Much of the Increase in Supply

The last wave of foreclosures entered the market as both consumer confidence and demand for housing was on the decline. That created an overhang of discounted properties that pushed down the prices on non-distressed homes. This new increase in foreclosures is hitting a different type of real estate market. Consumer confidence is stabilizing and the demand for housing is increasing. The impact on prices will be much less dramatic in most markets than it has been in the past.

2. Many Banks Are Doing Necessary Repairs and Renovations

Historically, the typical foreclosure has sold at a discount of 25-30% compared to non-distressed properties. The banks are finally realizing that they may soon own one or more of homes in any neighborhood. For that reason, we are beginning to see banks do the necessary repairs and renovations in order to garner a price closer to the value of non-distressed properties in the marketplace thereby lessening the impact on the value of surrounding homes.

3. Different Regions Will Bear the Brunt Especially Judicial States

Originally, many thought that the foreclosure fiasco was confined to the four ‘sand’ states (CA, AZ, NV and FL). We now realize that cities like Chicago and Atlanta, along with many others, have also faced the burden of falling prices because of an increase in distressed properties.

This next ‘flood of foreclosures’ will have the largest impact in the judicial states that impeded the foreclosure process over the last few years such as New York, New Jersey and Connecticut. California, Nevada and Arizona will be impacted in a much less dramatic way than in the past. Washington State is a non-judicial state, which means that foreclosures can move through the system more quickly.

KCM Blog, April 18, 2012

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Categories : Buyers, Foreclosures, US Real Estate

U.S. Cities Where Homes Sell the Fastest

By Sarah Jullion April 17th, 2012 · Comments (0)

Tuesday, April 17th, 2012

Although the U.S. housing market continues to struggle, many local markets are doing significantly better than the country as a whole, with some places virtually missing the housing bust altogether.

While shifts in home values are important in any market, it’s important for sellers to determine the length of time a property can expect to be on the market before it will be sold. The faster that homes sell, the faster an inventory backlog can be cleared, suggesting heightened demand and an upward trajectory in prices.

So… yes, Seattle is tied in #2 position for homes that sell the fastest in the nation. And Seattle is tied with which other west coast city? Can you guess? (San Jose, CA)

And which city is #1… again, on the west coast! (This one’s easy!) Click the link to see more.

2. (Tied) Seattle, Washington

Median time to sell: 73
Zillow Home Value Index: $347,700

Listings with price cuts: 33.55%
Average price cut amount: 6.88%
Final discount from list price: 2%

US Cities Homes Selling Fastest

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Categories : Buyers, Market Resales, Seattle, Seattle Area Real Estate

Not enough homes for sale in Seattle!

By Sarah Jullion April 15th, 2012 · Comments (0)

Sunday, April 15th, 2012

Seattle ranks third among homes across the nation that have a very low inventory of homes for sale based on a Move Inc, Realtor.com comparison of the 50 most populated markets in the US.

Some US housing markets have homes being snatched up as soon as they hit the MLS with prices are starting to rise as inventory stays low. These areas are close in to major employment centers, have economies in decent shape, and/or are very attractive to investors.

Seattle inventory has recently dropped 36% due to a slow-down in foreclosures and the reluctance of many who have lost home equity to even try to sell their homes. Competition is raging, especially in the lower price ranges, between first time buyers, investors and foreign buyers… thus creating a low housing inventory in Seattle.

The 10 cities are considered to have the lowest inventory based on change in inventory from Feb 2011 to Feb 2012 are:

Denver CO. Inventory down 42%.
Portland OR: Inventory down 38%
Seattle WA: Inventory down 36%
San Jose CA: Inventory down 34%
Salt Lake City UT: Inventory down 31%
Sacramento CA: Inventory down 30%
San Francisco CA: Inventory down 29%
Birmingham AL: Inventory down 29%
Memphis TN: Inventory down 29%
Richmond VA: Inventory down 29%

You have to admit that not having enough homes for sale in Seattle is quite a switch in events!

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Categories : Buyers, Market Resales, Seattle Area Real Estate

Low inventory of homes for sale causes multiple offers in Seattle-Bellevue area

By Sarah Jullion April 11th, 2012 · Comments (0)

Wednesday, April 11th, 2012

10 major housing markets with the shortest supply of homes

The low inventory of homes for sale is causing multiple offer situations in Seattle and Bellevue – especially the ‘close-in’ neighborhoods. In the ten major housing markets in the country with the shortest supply of homes, demand is high and buyers are pouncing on listings as soon as they hit the market. Many homes are getting multiple offers and selling above list price… Seattle-Bellevue area is #3 in the nation with inventory down 36% and a short supply of homes for sale.

Demand outstripping supply

MSN reports that it’s slim pickings for buyers in 10 U.S. housing markets where resurgent demand is beginning to outstrip supply.

While the economy has started to pick up in these areas of the country, sellers haven’t gotten off the fence because prices are still lower than they want. This is causing some newly listed homes to get multiple offers with many selling above list price.

A Seller’s market

Of course, these tight markets could loosen up in coming months as banks dispose of more foreclosed properties and owners with equity see how quickly homes are selling.

But for now, it’s a sellers market in these cities.

April Buying Advice

With investors and first-time buyers vying for bargains, homes are being snatched up as soon as they hit the market… In markets such as Portland, Memphis, Seattle and Salt Lake City, listings are practically evaporating as they come on the market. That’s according to MSN’s stats.

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Categories : Bellevue, Buyers, Market Resales, Market Updates, Seattle, Seattle Area Real Estate

Housing: About to SPRING Back

By Sarah Jullion April 2nd, 2012 · Comments (0)

Monday, April 2nd, 2012

We believe that 2012 will be the year that home sales start to climb again. Over the past thirty days, more and more experts are saying the same thing.

Jamie Dimon, JPMorgan Chase CEO

“I believe we’re very close to the inflection point. People look at prices that are still coming down but all the other signs are flashing green… You could come up with a pretty bullish case (for housing).“

Frank Nothaft, Freddie Mac chief economist

“Even the housing market is showing some signs of shaking off the depression-like conditions that have plagued it for much of the past few years.”

Goldman Sachs Group

“Stabilization in U.S. housing fundamentals is creating an attractive investment opportunity. Many of the ingredients are in place for continued improvement in housing.”

Lawrence Yun, NAR chief economist

“If activity is sustained near present levels, existing-home sales will see their best performance in five years. Based on all of the factors in the current market, that’s what we’re expecting with sales rising 7 to 10 percent in 2012.”

KCM Blog, April 2, 2012

Click to see 300 Seattle homes $300,000 or less for sale today! And call if my team can help you buy your new home.

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Categories : Market Updates, Sellers, US Real Estate

FHA to reject borrowers in minor credit disputes

By Sarah Jullion April 1st, 2012 · Comments (0)

Sunday, April 1st, 2012

NEW YORK (CNNMoney) — The Federal Housing Administration is about to make it even tougher to borrow money from Uncle Sam to buy a home.

Starting April 1, borrowers in ongoing disputes with creditors over debts of $1,000 or more may no longer qualify for FHA-insured loans. Even borrowers with perfect credit scores can be denied over a single $1,000 problem charge.

The new rule requires borrowers with loans in collection that add up to at least $1,000 to either pay off the debt, prove they’re making payments on the disputed loans or explain why the disputed loan is somehow wrong — and document their case — before they can close on a FHA loan.

The change is part of the agency’s effort to reduce its risk as it grapples with a depleted reserve fund that has fallen below legally-mandated levels. The FHA insures mortgages which are originated by private lenders. To help bolster its capital reserves, FHA will also hike the insurance premiums it charges borrowers beginning in April.

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Categories : Buyers, Mortgages

Is Now the Time to Buy Your First House?

Short Sale vs Foreclosure – Common Myths BUSTED!