Some of the headlines I’ve seen this week talk about an astronomical increase in foreclosure rates for 2009. One headline, “Massive Foreclosures in 2009” on Trulia.com, featured a story stating that foreclosure filings for the month of November were up 28% from one year ago. On Bainbridge Island, the number of foreclosure filings doubled from November 2007 to November 2008; from one filing in November 2007 to two filings in November 2008. Be wary of statistics…they can be misleading.
All this is not to make light of the stresses and strains on our current housing market and lackluster economy. While the Feds are trying to stem foreclosures, lower interest rates, stimulate the economy and shore up the housing market, we have yet to see the situation stabilize.
Yet, our housing market plugs on…people still want to move to Bainbridge Island for a number of different reasons: to be with family; to send their children excellent public schools; to enjoy the strong community atmosphere, to take advantage of an easy commute to Seattle, Bellevue or Redmond.
With Seattle Public Schools in the midst of closing a number of public schools, Bainbridge Island may see an influx of school-age families looking for great public schools with affordable housing and an easy commute to Seattle. Our entry-level home prices have moved into a price range that will allow young families to purchase their first homes on Bainbridge, and send their children to our great public schools.
See…there may be a silver lining after all…
Wednesday, December 31, 2008
Sunday, December 14, 2008
Weathering the storms...
Will it be a White Christmas?
With temps predicted to hover in the mid-twenties through the week, and more precipitation due mid-week…we could be setting up for a White Christmas!
Yes, snow days mean traffic snarls, school delays and schedule changes, but snow also gives countless young children their first look at a winter wonderland. There will be snowmen, snow-angels, snowball fights and (with enough snow) toboggans and sleds. For snowboarders and skiers, the snow is a gift in itself for now ski resorts will open their doors.
Although I no longer ski (I’m more of an annoyance on the slopes than a skier), snow on Bainbridge is always an exciting prospect. Let’s all enjoy this time with friends and family, and be thankful to live in such a wonderful and vibrant community.
First time buyer?
Ah yes, exciting times in real estate these days…every bit as exciting as the prospect of snow.
We’re told the government is hoping to bring interest rates down from their current rate of (about) 5.5%...perhaps as low as 4.5%. Many first-time home buyer’s are entitled to a $7,500.00 Federal Tax Credit if they purchase before June 30, 2009. At this time, that credit is an interest-free loan, but there is talk of making it a credit that does not need to be paid-back.
Buyers are able to negotiate in this market, often getting loan points paid or other concessions helping to make their new home even more affordable. For some, buying now ends up being less expensive than waiting to see if the market will drop another 10%: the money saved on the lower interest loan and seller-paid closing costs save more over the course of the loan than buying the house at a lower price.
Even with historically low interest rates and the Federal Tax Credit, buyers are hesitant…stuck between low house prices and the possibility of lower home prices. Too bad none of us know where the bottom is for the market, or when it will turn around. With new housing starts on Bainbridge at a virtual stand-still, some predict that we will see a housing shortage when the economy recovers.
The future remains to be seen but remember, the basics are back (hopefully to stay). Consider paying no more than 28% of your pretax income on mortgage payments, taxes and insurance. Also, remember to keep track of your credit score and take steps to improve it if necessary…a good credit score can save you a lot of money when it comes to your new home loan.
All for now…
With temps predicted to hover in the mid-twenties through the week, and more precipitation due mid-week…we could be setting up for a White Christmas!
Yes, snow days mean traffic snarls, school delays and schedule changes, but snow also gives countless young children their first look at a winter wonderland. There will be snowmen, snow-angels, snowball fights and (with enough snow) toboggans and sleds. For snowboarders and skiers, the snow is a gift in itself for now ski resorts will open their doors.
Although I no longer ski (I’m more of an annoyance on the slopes than a skier), snow on Bainbridge is always an exciting prospect. Let’s all enjoy this time with friends and family, and be thankful to live in such a wonderful and vibrant community.
First time buyer?
Ah yes, exciting times in real estate these days…every bit as exciting as the prospect of snow.
We’re told the government is hoping to bring interest rates down from their current rate of (about) 5.5%...perhaps as low as 4.5%. Many first-time home buyer’s are entitled to a $7,500.00 Federal Tax Credit if they purchase before June 30, 2009. At this time, that credit is an interest-free loan, but there is talk of making it a credit that does not need to be paid-back.
Buyers are able to negotiate in this market, often getting loan points paid or other concessions helping to make their new home even more affordable. For some, buying now ends up being less expensive than waiting to see if the market will drop another 10%: the money saved on the lower interest loan and seller-paid closing costs save more over the course of the loan than buying the house at a lower price.
Even with historically low interest rates and the Federal Tax Credit, buyers are hesitant…stuck between low house prices and the possibility of lower home prices. Too bad none of us know where the bottom is for the market, or when it will turn around. With new housing starts on Bainbridge at a virtual stand-still, some predict that we will see a housing shortage when the economy recovers.
The future remains to be seen but remember, the basics are back (hopefully to stay). Consider paying no more than 28% of your pretax income on mortgage payments, taxes and insurance. Also, remember to keep track of your credit score and take steps to improve it if necessary…a good credit score can save you a lot of money when it comes to your new home loan.
All for now…
Sunday, December 7, 2008
Santa Photos for Helpline…
Windermere is sponsoring photos with Santa with all proceeds donated to Helpline House. Santa will be at the corner of Winslow Way and 305 (Winslow’s Corner) on Sunday, December 7 from 10am-3pm; Monday, December 8 from 4pm-8pm and Sunday, December 14 from 10am-3pm. Please bring a non-perishable food item or $5.00 donation.
Helpline House is able to leverage their buying power so a $5.00 donation can buy food for many…please come and enjoy the season.
This is an all-volunteer effort so all monies and food collected go straight to Helpline.
Happy Holidays!
Help on the way?
The National Association of Realtors (NAR) has presented a formal NAR Housing Stimulus Plan to Congress, hoping that the government will take action during this lame-duck session. The stimulus plan is NAR’s attempt to arrest the decline in home values which is a critical step in turning around the economy.
The Stimulus Plan has for major items:
Make the 2008 Fannie Mae, Freddie Mac and FHA (conforming) loan limits permanent. Currently those loan limits are up to $729,750, dependent upon location. The current Conforming Loan Limit in Kitsap County is $475,000. If this legislation does not pass, the Conforming Loan Limit in Kitsap County will reset to $417,000.
Open the first-time homebuyer tax credit ($7500) to all homebuyers and eliminate the need to repay the credit.
Use a portion of the $700 billion ‘bailout’ money to create a temporary federal mortgage interest rate buy-down program. They intent is to lower the interest rate to 4.5% or lower for a 30-year fixed-rate mortgage for buyers purchase either new or existing homes up to $1M.
Ban Banks from engaging in real estate brokerage or real estate management, permanently.
Perhaps the most controversial part of this plan is the third point; the interest rate buy down. Since this buy-down only applies to purchases (not refinances) many argue that this may stimulate the housing market, but will not help those needing mortgage relief.
These are expensive plans to instigate. It is estimated that the interest rate buy-down, as currently structured, will cost up to $100 billion per year. If the plan were to include homeowner’s needing to lower their interest rate the cost could exceed trillions of dollars.
Clearly, we need drastic measures for what are proving to be drastic times. On the other hand, we must be mindful of the debt we (and our children) are incurring for this bailout. Somehow, we need to negotiate a balance designed to restore confidence in our system and not over-burden our future with debt (which could re-create this nightmare again).
Windermere is sponsoring photos with Santa with all proceeds donated to Helpline House. Santa will be at the corner of Winslow Way and 305 (Winslow’s Corner) on Sunday, December 7 from 10am-3pm; Monday, December 8 from 4pm-8pm and Sunday, December 14 from 10am-3pm. Please bring a non-perishable food item or $5.00 donation.
Helpline House is able to leverage their buying power so a $5.00 donation can buy food for many…please come and enjoy the season.
This is an all-volunteer effort so all monies and food collected go straight to Helpline.
Happy Holidays!
Help on the way?
The National Association of Realtors (NAR) has presented a formal NAR Housing Stimulus Plan to Congress, hoping that the government will take action during this lame-duck session. The stimulus plan is NAR’s attempt to arrest the decline in home values which is a critical step in turning around the economy.
The Stimulus Plan has for major items:
Make the 2008 Fannie Mae, Freddie Mac and FHA (conforming) loan limits permanent. Currently those loan limits are up to $729,750, dependent upon location. The current Conforming Loan Limit in Kitsap County is $475,000. If this legislation does not pass, the Conforming Loan Limit in Kitsap County will reset to $417,000.
Open the first-time homebuyer tax credit ($7500) to all homebuyers and eliminate the need to repay the credit.
Use a portion of the $700 billion ‘bailout’ money to create a temporary federal mortgage interest rate buy-down program. They intent is to lower the interest rate to 4.5% or lower for a 30-year fixed-rate mortgage for buyers purchase either new or existing homes up to $1M.
Ban Banks from engaging in real estate brokerage or real estate management, permanently.
Perhaps the most controversial part of this plan is the third point; the interest rate buy down. Since this buy-down only applies to purchases (not refinances) many argue that this may stimulate the housing market, but will not help those needing mortgage relief.
These are expensive plans to instigate. It is estimated that the interest rate buy-down, as currently structured, will cost up to $100 billion per year. If the plan were to include homeowner’s needing to lower their interest rate the cost could exceed trillions of dollars.
Clearly, we need drastic measures for what are proving to be drastic times. On the other hand, we must be mindful of the debt we (and our children) are incurring for this bailout. Somehow, we need to negotiate a balance designed to restore confidence in our system and not over-burden our future with debt (which could re-create this nightmare again).
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