June 9, 2009 the House of Representatives passed Resolution 502 that recognized June as NATIONAL HOMEOWNERSHIP MONTH. One paragraph states:: WHEREAS OWNING A HOME IS A FUNDAMENTAL PART OF THE AMERICAN DREAM AND IS THE LARGEST PERSONAL INVESTMENT MANY FAMILIES MAKE; ……Resolved,  That the House of Representatives — (1) fully supports the goals and ideals of National Homeownership Month; (2) recognizes the importance of homeownership in building strong communities and families….  –  It further states the people of the United States are one of the best housed populations in the world. To read the entire resolution go to www.budurl.com/8kmw.

How fortunate we are to live in this great nation and have the right to private ownership of real property..our homes…our land… our investments.

THE STATE’S JOBLESS RATE FALLS FOR THE FIRST TIME IN THREE YEARS was reported by the Seattle Times last week. April’s increase of 5,800 jobs brought the rate down from 9.5 to 9.2 perenct, the first decline since March 2007.  We still have a concern about unemployment however it is now moving in the right direction.

Wednesday the Seattle Times reported that home prices in Seattle inched up for March and that we are one of only six major metro areas to post a gain. The article went on to say that half of the (major) cities in the Case Shiller index posted year over year price increases and half, including Seattle showed declines with Seattle down 3.6% from March 2009. Up from last month, down from last year, I wonder where “stable” is. It looks to me like we are basically flat with the unique situation, according to various reports, that prices have not gone up even though sales have. We’ll see where it goes from here. There is no doubt that prices will go up (and so will interest rates),  it’s just a matter of when?

The weekly Survey by Freddie Mac this week reported the 3o year fixed rate at 4.84% ; the lowest this year thanks to worries over European debt. Holden Lewis (bankrate.com) reports in the Real Estate Section of this Sundays’ Seattle Time that rates are likely to increase this summer. Those experts quoted agree that interest rates will go up this year. A 1% interest rate increase on a  $300,000 mortgage raises the payment $250 a month. Multipy that time 30 years!  That’s why we say again that THIS IS A GREAT TIME TO BE BUYING A HOME!

Did anyone get to see this film at Northwest Film Forum the 13th -15th?  “Vannishing local landmarks. Empty and unselleable condos. Fall-out from foreclosures. Worries about pending foreclosures. ….Collectively they’re the focus of “Condo Millennium”  per Michael Upchurch on page B5 of YOUR SATURDAY in the Seattle Times. Lots of  humor and fun dealing with with Seattle’s fiscal and real-estate upheavels the last few years. Google Condo Millennium  to learn more. I wish I had seen it. I would love to hear about it from anyone that did.

For many years the Seattle King County Association of Realtors (SKCR) challenged the way that King County and the cities forecast growth and how they commit to accommodating growth.  This is being corrected by the Growth Management Planning Council.  SKCR has changed the discussion to one about how to accommodate growth, not deflect and avoid it.  Supply is a critical component of housing affordability. SKCR undertook a series of actions to establish clear, firm housing targets and establish local accountability for meeting those targets with the need to balance jobs and housing; arguing that a house is where the job goes at night.

Countywide. 233,000 new households and 428,000 new jobs are projected through 2025. In the four County region of King, Snohomish, Pierce, and Kitsap, the population growth will be 567,000 people. King County will absorb 42% of the four-county growth.

Bentley Properties’ primary service are is all nineteen of the Eastside communities including Bothell, Redmond, Kirkland, Woodinville,  Bellevue. Issaquah, Sammamish, and Renton. If you or a friend want or need any information about housing in these markets just e-mail me at bgraves@bentleypropeerties.com.

Washington has 1,403,098 mortgages on this year-end 2009 report from First American Core Logic.  233,795 of these, or 15.9%, have negative equity (owe more than market value) at the end of 2009, and another 223,795 of these are near negative equity. Many of these are keeping their payments up; however 2.1% (29,465) are in foreclosure and 7.65% are past due. Many of these owners will manage to cure their loan and stop foreclosure. If 2.1% seems high consider areas like Las Vegas or Denver with over one out of every three homes is being foreclosed on. In Washington 439, 728 of the homes are owned free and clear with no mortgages. The prediction by the American Society of REO specialists (of which I am a member) is that foreclosures nationally will continue to increase for the next eighteen months and then level off and start declining. It will take until 2115 to get back to the normal number of foreclosures.

If you know someone that is a distressed homeowner have them call me. There are a number of ways that they can be helped with the Make Home Affordable programs – HAMP, HARP, HAFA -  & Short Sale Alterntives.  Brian Graves 206-669-2119, e-mail bgraves@bentleyproperties.com

The Cascade Water Alliance Conversation Program includes rebates of  $100 for selected High Effeciency Toilets (HET), Clothes Washers (WashWise machines), and Irrigation System upgrades.  They also have tips on improving iriigation effieciency. The Cascade Water Alliance members include the Cities of Bellevue, Redmond, Kirkland, Issaquah, Skyway, and Tukwilla. They also include the Sammamish Plateau Water and Sewer District, and the Covington Water District.  You can participate in theri programs if you live in any of these service areas. 

The Cascade Water Alliance will become the prime providor of water for all of these communities and rely less on the Seattle Metro suuply system. Go to www.cascadewater.org to find out about these rebates and to learn more about this organization.

Housing Analyst says ‘Worst Is Over’

Housing has slowed to the point where demand is again outstripping supply, says Metrostudy founder Mike Castleman.

Metrostudy, which researches the housing industry, says demand is forcing up prices in some markets, including Washington, D.C. and Indianapolis, but it remains stagnant in Houston, Naples, Fla., Charlotte, and Denver.

Overall, Metrostudy and Castleman believe the worst is over. “The good news is that builders will need to build a lot more houses than last year to keep up with demand. That will help the economy by creating jobs,” Castleman says.

Source: Fortune, Shawn Tully (04/26/2010)

Economist Says It’s Time to Raise Rates
Some economists are saying that it’s time for the Federal Reserve to raise interest rates.

Ken Rosen, chair of the University of California Fisher Center for Real Estate, says the financial crisis is over and short-term rates today should be 2 to 3 percent. By keeping rates so low, “We are encouraging asset bubbles in the stock market, bond markets, and global real estate,” Rosen says.

Demand for housing will increase as employers hire more workers, Rosen adds.

Rosen predicts construction of new homes will remain well below the historical norm of 1.1 million homes a year for at least two or three years and foreclosures will set records in 2010. “The shadow inventory is real,” he says.

Source: Inman News, Matt Carter (04/26/2010)

Buyers and Sellers, don’t wait! Rates will go up. The only question is when and how much. Take advantage of the low interest rates now. Send me an e-mail for more informtion on why now is a good time both to buy and to sell. bgraves@bentleyproperties.com