Category Archives: Seattle Real Estate Stats

Open Houses in Bryant Sunday 7/13

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Hi everyone,

I can’t give you the whole list here in a blog post, as it is against one of the many mls rules 🙂 But tomorrow there will be at least 15 Open Houses in Bryant.  Many agents from different offices have gotten together to have their properties open tomorrow.  Most from 1-4, but some for other times within that range.

Generally they are between 25th Ave and 40th Ave NE.  Mine is at 6806 27th Ave NE from 1-4 and I will have a list and map of the other Open Houses at that location.  A good opportunity to see a lot of properties within a short distance.  They range in price from $479,000 to $850,000 with most of them $600,000 or less.

Agents are still sending me info, so I don’t have a complete list yet.  But for those who like to view property, it’s a good opportunity to maximize the number of homes you can see in a short period of time, complete with a guide map.

Indymac Bank Taken Over by the FDIC

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The second largest bank failure in the history of the U.S. means about 1 billion in lost deposits held by 10,000 customers as reported by CNN Money. Accordingly, the Indymac website has a new look.  The LA Times has pictures of customers lining up outside the bank, looking inside and here’s a picture of employees loading up their car with brown cardboard boxes.

Just before their demise, Indymac was offering high rates for their Certificates of Deposit.  The LA Times asks an interesting question:  “Should a money-losing financial institution be permitted to pay well-above-market deposit rates under the protective umbrella of federal deposit insurance?  For a six-month CD with a $5,000 minimum deposit, IndyMac’s website [on Wednesday, July 9th] was offering an annualized yield of 4.1% as an online “special.”

I wonder what will happen to the severance packages offered to the 3800 workers who lost their job this past Monday?

I wonder which banks (federal or state chartered) are offering high, high rates on deposits today?

 

 

The Fate of Fannie and Freddie

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Fannie Mae and Freddie Mac opened trading at record lows due to rumors about a possible bail out.  I’m writing this waiting to hear an announcement from Treasury Secretary Paulsen….

If you are in a transaction at this time and your mortgage fits within the FHA loan limits ($567,500 for King, Pierce and Snohomish County), I recommend considering FHA as a back up plan.  In fact, I’ve realized yesterday that all of my loans in process are currently FHA.   ,

If you are considering buying or refinancing a home and are not yet in transaction, I highly recommend making sure that your Loan Originator is able to provide FHA financing.   I recommend asking your Loan Officer (in writing-using email):

  • Are they approved to provide FHA financing?
  • How long has their company provided FHA financing?
  • How long has the LO done FHA loans?
  • Verify on HUD’s website that the mortgage company is indeed approved with HUD.  This list will also show you how long a company has been approved by HUD.

What will the Fannie and Freddie look like after if the Gov steps in?

If you look at FHA, you know that HUD is very pro-homeownership.   We may see low down programs like Flex 97 stick around–it’s very similar to FHA with the minimum 3% down.

Mortgage rates will probably increase dramatically since we will no longer have a private sector.  It will all be government controlled.

I’m also wondering if the governement would utilize private mortgage insurance companies or if they will utilize something similar FHA’s mortgage insurance?

Stay tuned…this is not over.

Update 7:53 am:  Here is Treasury Secretary Paulsen’s statement (from Market Watch):

Here is Paulsen’s statement (from Market Watch):

“Today our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission.

“We appreciate Congress’ important efforts to complete legislation that will help promote confidence in these companies. We are maintaining a dialogue with regulators and with the companies. OFHEO will continue to work with the companies as they take the steps necessary to allow them to continue to perform their important public mission.”

Update 2:51 p.m.  I just received this Press Release from OFHEO (Office of Federal Housing Enterprise Oversight):

Statement of OFHEO Director James B. Lockhart

“I congratulate and thank Chairman Dodd, Ranking Member Shelby and the Senate for passing a sound and comprehensive GSE regulatory reform bill.  This bill should help restore confidence in the housing markets by creating, on passage, a new, stronger regulator with all the necessary tools to oversee Fannie Mae, Freddie Mac and the Federal Home Loan Banks.  I am hopeful the House will act quickly and the bill will soon be enacted into law.

With this very turbulent market it is important to strengthen the regulator of Fannie Mae and Freddie Mac and combine it with the regulator of the Federal Home Loan Banks as soon as possible as all of the GSEs are being asked to do more and more to support the mortgage market.”

Rain City Radio with Justin of the Capitol Hill Blog at 4pm!

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Capitol Hill Blog ScreenshotAs I mentioned last week, this next episode of Rain City Radio will feature Justin of the Capitol HIll Blog!  So, if you want to learn about the ins-and-outs of this great neighborhood in Seattle, then check in with us at 4pm today (July 8th).

And if you want to call in to ask your own questions of our guest, then you can follow the simple instuctions on this page… and if all you want to do is stream the conversation live, then a few minutes before the show, you should see that option on the talkshoe widget on our sidepanel!

One of the things I’m most excited to learn about is the new format that their using for this community site.   It’s got all kinds of ways for people to interact on a very local level and I’ll be curious to get Justin’s feedback on how this is working.

UPDATE!

The recorded conversation is now live and you can listen to it using the player on the sidepanel!    Justin was a most gracious guest and shared lots of great insights about Capitol Hill with us… including the best place to get waffles!  The new platform their running at Capitol Hill blog is extremely interesting and has spurred a lot of ideas for ways I might be able to add similar features to RCG…

Goodbye Sonics… We Will Miss YOU!

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Like Ardel said, bye bye Sonics. From the start of the trial, the City looked like a bunch of Rookies playing against The Celtics. It is unfortunate the poor political leadership of Washington (Gregoire, Sims, Nickels and the Seattle Council and then some) is not confident in their own decisions to call a spade a spade. The smug look on the mayor and the council members was telling they could care less about sports in Seattle (if not Washington).  Since the start of this all, they have said it was “never not about a cash settlement to Seattle.” In the end, it was made to be a cash settlement.

Lets hope they all know something we do not! If they don’t, once again, another political stumble… it will be interesting to see how this plays out in up and coming elections.

Rain City Radio: Join the Conversation with Tim Ellis today at 4pm!

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Please join us as we have a conversation about the Seattle bubble and the Naked Loon starting at 4pm PST!

All it takes to get involved is a telephone OR an internet connection:   You can call in to listen to the show via any phone… You can log into TalkShoe to stream the show to your computer and/or take part in the chat.  All the details (and there really aren’t many) can be found on Rain City Radio’s Talkshoe page.

UPDATE!

What a great conversation!   Thanks again Tim for taking part in Rain City Radio.   And if you missed the live call, then you can listen to Tim tell us all about how/why he started the Seattle Bubble, some of the things he has learned, what inspired him to start the Naked Loon and much more!   Just click on the play button on the widget to the right!

Also, I am excited to announce that next week, we’re going to have a conversation with Justin of the Capitol HIll Blog!  (same time/same place 4pm on Tuesday, July 8).   I really enjoyed our conversation last week with Tracy from the West Seattle blog and I’m hoping to learn a similar amount about Capitol Hill next week!  🙂

Hands-free law starts July 1st – That means Realtors too!

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Look Ma, No Hands!

Washington State will go ‘hands free’ for cell phone use in the car on July 1st, so agents (and everyone else) shouldn’t be driving around with one hand up to their ear anymore. Well…that’s the intent anyway. The Washington State Patrol says you could face up to a $125 fine, although it is suppose to be a secondary offense. Real Estate agents are notorious for this, myself included. Fortunately, for several years I have had an integrated hands-free system in my car (Acura RL) which has given me a head start on being compliant.

I thought I would mention some options for agents, or for that matter anyone who spends a lot of time on the phone in their car, who are just taking the plunge into the deep blue-tooth ocean of products to help them figure out which device might be better suited for them. But don’t just go out and buy one of these devices. Do your research and check with your provider about what they offer and recommend. These days many products and services are specific to wireless vendors, like Verizon, Sprint, and AT&T.

hands-free driverFirst of all, you’ll need a bluetooth capable cell phone. Many, if not most, of the newer cell phones have this capability. But if yours doesn’t, you’ll need to upgrade. These days people change out their cell phones pretty frequently anyway. But if you have been waiting, now is probably a good time. Just be sure you understand how your cell phone plan will be affected and hopefully your carrier won’t force you into signing a new extended service contract.

If you have a newer model car that has integrated bluetooth capabilities you’ll want to check which phones work with it (not all do) and use the products they recommend, if possible. This information should be in your manual. When my car was introduced integrated blue-tooth was still new and it did not specifically support my phone and service (a Palm Treo w/Verizon), but fortunately I was able to trick it (read “hack”). It would be a real drag to decide to buy a $50,000 car because of it’s bluetooth capability only to find out it won’t work with your phone or service.

If you don’t have integrated bluetooth in your car, then you should consider getting either a headset or component speaker system. Most headsets these days just fit in or around your ear and are pretty small. They often use a microphone technology that relies on the vibration of your jawbone, much like your inner ear, which keeps it very small and helps with noise cancellation – cool huh?

Here are some hands-free bluetooth earbud and speakerphone options from $65 to $125:

Bluetooth Jawbone HeadsetThe New Jawbone – Jawbone is the hot bling-bling of the bluetooth world right now. Their marketing is aimed at the fashion-conscious among us. This is perfect for the agent who is most worried how it will fit in with their wardrobe. The have good noise canceling technology too.

Bluetooth Jabra SP5050 SpeakerphoneJabra’s SP5050 – This unit is made to be clipped to your visor and has a speaker system built in. Jabra is well known and were the first to come out with hands-free bluetooth headsets and use digital signal processing (DSP) technology.

BlueAnt’s Supertooth 3 – Another visor clip-on speakerphone, the Supertooth 3 announces the name or ID of the caller when the phone rings – just say ‘OK’ to Bluetooth Blueant Speakerphoneaccept the call. This device is suppose to be very easy to install and it uses ‘Text-to Speech’ software. The voice prompts provide guidance and assistance install and to help pair the device and upload your cell phone’s address book. When a call is received, the Supertooth 3 announces the incoming caller’s name or number. Just say ‘OK’ to accept the call. You also have a choice of 6 languages.

Bluetooth Venturi MiniVenturi Mini – The Venturi Mini directs incoming calls to the cars speakers and includes a FM A2DP audio player and no headset or wires are needed. With phonebook download the incoming caller appears on the Venturi Mini and your car radio simultaneously. This unit plugs into your lighter plug in and offers USB support too, which means you can charge other devices.

You’re going to need to configure your bluetooth cell phone with your hands-free integrated car system or your bluetooth hands-free device. (wireless headset or speakerphone). Once you pair the device and phone you’ll need to do some set up and preferences. Carefully read the manuals regarding hands-free dialing with your Address book and configuring everything to match your network (Verizon, Sprint, AT&T). Most likely you’ll need to “train” the system to recognize your voice and / or connect phrases with numbers. You may need to tell it when you say “Call Jim” to dial the appropriate number.

Take the time to do this and it will be worth your while. This is what the “hands-free” is all about. Now you can impress youir clients with your tech-savvy skills and stay out of jail at the same time!

Any RCG Readers want to jump in and share their favorite hands-free bluetooth goodies?

Sunday Night Stats – King County

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Of course Monday is the last day of the 2nd Quarter and the 1st Half of 2008.  Exciting stuff!  But that will be next week’s news.

Tonight, since 6/29 will be kind of boring weekly stuff, I tracked of few of the top listing machines to see how their volume has changed.  Can’t tell you who they are, but remember, when volume is down some of these big teams have to split with several people.  So expect to see some cutting down on staff given the change in the market.

The worst was down to 9 sales in the 2nd quarter of 08, from a high of 25 quarterly sales.  Another down from 28 to 12.  Another down to 11 from a high of 27.  Average price down from $1.7M to $1.3M.  Another down from $2M to $1.5M.  One is carrying 60 listings…with only a 25% turn rate.  That’s a lot of marketing costs for homes not selling.  Another is carrying 55 listings with a 20% sold rate.  Another dependent primarily on builders for inventory is down to more than 50% fewer listings with volume sold off 50% below that.

Now for this weeks stats.  The chart from last week has been updated as to 2Q08, but all the data is not yet in. Remember, last day of month can be a heavy closing day, and many won’t post those for several days.  The holiday weekend could cause further posting delays next week.

Watch those condo stats…they will play a role in residential stats in coming quarters.  Residential will lag as to how the condo market ultimately impacts the single family home sales.  Look at the difference in volume on the condos 1Q08 vs 2Q08 compared to the spread on those two quarters in previous years.  And of course the price dip is fairly dramatic there. 

What will be interesting is when we get to monthly YOY volume stats come August and September, when we are comparing this year to the part of last year that was already reduced as to volume.

King Couny Condos

2004 – 1Q – 1,694 – $188, 2Q 2,636 – $199, 3Q 2,540 – $196, 4Q 2,176 – $195

2005 – 1Q – 2,066 – $198, 2Q 2,925 – $209, 3Q 2,769 – $226, 4Q 2,266 – $224

2006 – 1Q – 1,956 – $242, 2Q 2.748 – $252, 3Q 2,737 – $269, 4Q 2,217 – $278

2007 – 1Q – 2,042 – $295, 2Q 2,862 – $302, 3Q 2,676 – $311, 4Q 1,618 – $294

2008 – 1Q – 1,258 – $299, 2Q 1,384 – $288 (2Q incomplete data – postings as of 6/29/08)

Changes in condo stats for this week

Active Listings: 4,047 – DOWN 2- median price $320,000 – MPPSF  asking $316 – DOM 61

In Escrow:  913 –  DOWN 16 – median asking price $295,000  – MPPSF asking $294  – DOM – 51

Sold YTD :  2,645 – UP 141 – median list price $294,950 – median sold price  $289,000 – median PPSF – $294 DOM 48

Residential King county

2004 – 1Q 5,650 – $152, 2Q 9,237 – $160, 3Q 8.737 – $163, 4Q 7,467 – $165

2005 – 1Q 6,402 – $173, 2Q 9,093 – $185, 3Q 9,131 – $192, 4Q 7,301 – $195

2006 – 1Q 5,596 – $201, 2Q 8,248 – $214, 3Q 7,771 – $216, 4Q 6,204 – $217

2007 – 1Q 5,304 – $222, 2Q 7,393 – $230, 3Q 7,944 – $229, 4Q 4,301 – $221

2008 – 1Q 3,640 – $219, 2Q 4,266 – $220 (2Q incomplete data – postings as of 6/29/08)

Changes in residential stats for this week

In Escrow: 2,863 – DOWN 68 – median asking price $442,400 – DOM 47 – MPPSF $211

SOLD YTD: 7,908-  UP 419- median asking $449,950 – median sold price $440,000- DOM 49 – MPPSF $219

Actively for sale 12,187 – UP 192- MPPSF <$800,000 is $220- MPPSF >$800,000 is $337

Stats not compiled or published by NWMLS. (Required disclosure) 

Survived the one-year threshold and still lovin' Seattle

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Yes, I know, it’s been an eternity since I’ve tapped on the keyboard – at least for RCG. I’ve now muscled past the one-year hump of living in Seattle, and honestly can’t say I adore it any less than I did when I first moved here in June 2007 from Naperville, IL. If anything, I have become too immersed in work – between full-time and freelance – and have not savored as much of the Pacific Northwest as I should have this past year, but plan to change that. Sometimes I ruminate on how I could have taken such a mammoth risk – moving from my cushy life in the Midwest to Seattle where I knew not a soul and had no employment.

It was a jump akin to something a person stricken by a mid-life crisis might embrace, but I didn’t have a carefully constructed rational for driving across the country and moving in with what wound up being an ideal roommate I had barely spoken to a handful of times, and never met. But not without diligent work and worry did things come together here. And so far, I have no regrets.

There’s something about the allure and challenge of finding another way in life that I could not resist. And sometimes when things are in disarray or not working out, that’s all you can do; grasp for that light in the dark, however dim it might be.

And if you peruse other comments on RCG, most notably in Dustin’s 10 things you should know before moving to Seattle post, you will find a plethora of people are yearning for a fresh change and new horizons to explore.

And I found that in Seattle, but now that I’m completely adjusted I would like to get myself involved in more volunteer activities and good causes. One of those I have already been involved with is Q Cafe, a nonprofit coffee shop which also hosts live music on Friday nights. So, bring on the suggestions, if you would be so kind.

My advice to anyone pondering a risky move is to trust your gut, even if you cannot completely justify your intentions. But also be realistic and ensure you have good chunk of savings to bide your time while you tread your way through what could be cumbersome times of transition. If I had put my move to Seattle off but a year, it would have been inconceivable. With the sinking economy, exorbitant gas prices and the floods ravaging the Midwest, it would have been near impossible for me to execute such a free-spirited move in June 2008, considering my situation prior to jetsetting.

As I enjoy Seattle’s picture-perfect summer, the following list is a small treat for all of you (some of whom have contacted me directly) considering moving to Seattle based on my experiences this past year, which I hope will give you a more clear-cut idea of what Pacific Northwest living is like.

A Snippet of Things I’ve Learned Since Living in Seattle

  • Yes, it rains, but not as much as people will make you believe. Chicagoland got 50 inches of snow this past winter, which would have been rain if it wasn’t so cold there.

  • The traffic won’t faze you (er… if you’re from the Chicagoland area).

  • Many mornings are cloudy in the winter, but the sun has a tendency to pop out in the afternoons. The color of the sky varies throughout a single day during the aforementioned season, so I can see how it is difficult to gauge the exact number of cloudy days Seattle experiences. It can often be cloudy and rainy in the morning, but rain often makes way for afternoon sunshine.

  • Snow is practically nonexistent.

  • The bus system is extremely efficient, you won’t need a car if you live within the city limits especially. I still have mine, but primarily use it to make grocery runs or trips to the bank.

  • Yes, it was still a bit chilly in May and June. Needless to say it is temperate here, but there were more than moments in May when I was envious of the humidity aplenty throughout the Midwest.

  • Don’t believe every word of the Seattle Freeze speculation – sure it can be difficult to meet friends, but that’s not any different than how it is in most bigger cities. And it varies by age group. People stay to themselves, but once you get to know people they are as friendly as ever – and will want to hang out with you.

  • If you live here, you play for Seattle’s team now, not L.A.’s or Chicago’s – so don’t whine or banter about how things were when you lived in another city. No one wants to hear it.

  • People are more laid back here. Don’t confuse laid back with lazy though. People know had to get their work done and enjoy life without stressing the small stuff. My roommate often comments to me now how much more laid back I am than when I first moved here – a bundle of nerves and too susceptible to stress.

  • The number of panhandlers? Let’s just say I’ve seen much worse.

  • Take advantage of the summer farmers markets in Fremont and Ballard. Amazing.

  • The wine and seafood throughout Washington State is amazing and you will never taste finer.

  • Coffeehouses and espresso stands are ubiquitous, but choose wisely. The coffee roasts here are top notch. Well, it is Seattle.

  • The time zone difference between the West Coast and the Midwest and East Coast bites if you have relatives or friends there that you chat with quite a bit.

  • Yes, most people here are transplants, but your accent will get noticed. Take it from me, Chicago.

Head Scratcher: $100K loan orig. fee, poof! Maybe it's our hot weather.

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Life in the escrow business:

A borrower notices a $100,000 loan origination fee on a very large transaction, puts on the brakes and says, “not so fast.” The borrower stops the transaction after the loan officer and borrower can’t work it out.

I know Lynlee mentioned a nutty conversation in an earlier post, but this takes the cake for me, YTD. For a LOT of people, in this market, the fees charged on this singular transaction would have made for a “great year.” (or two)

Have a great weekend everyone. Enjoy the weather!