Quick update on what is going on in our local real estate market:
- Local home sales are the highest they have been since August 2007 with over 7,100 pending home sales reported last month.
- Due to increased affordability of houses and low interest rates, a typical family today can purchase a home with $20,000 less in annual household income and save nearly $500 per month on their payment as compared to buying the same home in 2007.
- Mortgage rates are at 40+ year lows and currently hover around 5% for a 30 Year Fixed Rate Conventional Mortgage. Good economic news reports have made mortgage rates inch higher recently, and the current momentum that the economy is carrying may continue this trend. You may want to consider refinancing or buying NOW while rates are still at historically low levels. Click Here to see a graph showing how mortgage rates have averaged over the last 35 years.
- Home prices are the lowest they have been since May 2005. This makes it an ideal time to move-up or purchase a first home investment property or maybe even that 2nd home you have always wished you could afford.
Example: Say you own a home that was worth $300k at the peak of the market, and prices for your home have dropped 10% since then; your new adjusted value would be $270k, which represents a change of -$30k. The home you want to buy was worth $500k at the peak of the market and has also dropped 10%; its new adjusted value would be $450k, which represents a change of -$50k. Although it may be perceived that you have lost $30k on your home by selling for less than you would have hoped to achieve, you actually gain $20k in the move-up because the home you are buying has decreased even more in value.
- Median sale price for homes and condos in King County was $350,000 last month, down 14.63% from this same time a year ago.
- Foreclosure rate in Washington State is only 1 per 908 households as compared to 1 in 440 households nationally.
- Free $8,000 Tax Credit expires on December 1st 2009, so there is really only 4 months left to buy a home and have it close in time to receive the tax credit. If you or anyone you know is a first time buyer, make sure they don't miss this opportunity.
If you ever have any questions about what is happening with prices and values in your neighborhood, please feel free to give us a call at 206-300-1199 or shoot us an e-mail at info@happyhometeam.com This information is right at our fingertips and we are happy to help in any way we can. We have access to info in most market areas, so even if you are wondering about property values in say Mexico, we can help.