4.62%
Average mortgage rate in 4th quarter 2010. Down from 6.21% in 4th quarter 2005.

$250,400
Median existing home sales price in Washington in 2010. Down 1.6% from 2009.

149.4
All-buyer Housing Affordability Index in 4th quarter 2010. Record high affordability. Median income family has 49.4% more income than minimum required to purchase median price home statewide.

46.8%
Decline in existing home sales (units) since 2005 peak.

20.4%
Decline in median home price since 2007 peak.

51.8%
First-time home buyers in Washington who cite tax advantages as a major reason for buying a home in 2009 (may reflect tax credit).

4.8%
Apartment vacancy rate to Washington in Fall 2010. Down 2.1% from year earlier.

87%
Washington home buyers in 2009 who purchased with assistance of real estate licensee.

64.7%
Washington homeownership rate in late 2010. Down from 69.2% peak in late 2005.

7.6
Months supply of homes on the market at year-end 2010. Generally considered a balanced inventory, but foreclosure and pre-foreclosure properties suggest oversupply.

35,300
Washington mortgages at some stage of foreclosure in late 2010. Up from 24,900 in late 2009.

1) Become familiar with the market. You probably have an idea of the general area that you would like to buy a home; there are a variety of ways for you to get familiar. One option is to simply pick up the phone and call a Realtor. That person should be happy to talk with you about what is available, what the current trends are in that area, what the prices may be, etc. 2) There are an abundance of websites that allow you to sign up for a FREE update program (we call ours a listing manager account). You can enter your specific criteria including price range, size of the land, number of bedrooms, etc. The more parameters you enter the more restricted the results will be, so if you are just starting out it may be best to keep it simply to price range, or simply to the size of the land that you desire. 3) Go online often and search local websites and watch the new listings and the listings that are selling. This will give you a good idea of the market values.

2) Understand the amount that is needed for the down payment. There is a huge range of amount due for down payment on a home/land. It is a percentage of the purchase price but varies based on the lender you use and the program that best fits your needs. At this point the down payment can be as low as 3% and as high as 20% (more if it is vacant land). The best resource is going to be a local lender. They will undoubtedly start the conversation off with “it depends” but you can usually get them to give a general idea of down payment amounts. If you are at a loss for a lender to contact, your Realtor can suggest a few alternatives.

3) Know how much you can afford. There is nothing worse than falling in love with a home only to find out that you cannot afford the payments. Again, a lender can help you with this magic number. Another tool that I find helpful is one of the online amortization calculators that you can play with the numbers and find out how rates and down payment amount affect the monthly payment. The one I have bookmarked is: http://www.bretwhissel.net/cgi-bin/amortize but there are plenty available.

4) Be sure to include other monthly expenses when you are figuring what the costs will be monthly. Include insurance, taxes, utilities, maintenance items, and any homeowner’s dues or road maintenance amounts.

5) Get your credit score all cleaned up. You are allowed one free credit report for each of the 3 major credit reporting companies annually. Go to https://www.annualcreditreport.com/cra/index.jsp to get started.

GOOD LUCK!

1) Price Adjustments are being made and prices are generally “soft”. On average, we are back to values similar to 2002 in and around the islands. Couple that with phenomenal interest rates and it simply makes sense.

2) Interest rates are still low, for now… If you are “waiting for the rates to go lower” you may miss the boat. We are seeing indications that rates may slowing begin to increase. It makes sense to step forward now and take advantage of these 30 year low rates.

3) Tax deductions in your mortgage payments. Owning a home is a great tax shelter and tax rates favor you if you are a homeowner. As long as your mortgage balance is lower than the price of your home, mortgage interest is fully deductible on your tax return. Deducting the interest on your income taxes helps make the real cost of owning more attractive. Talk to your financial advisor for specifics.

4) Sales prices are lower than replacement values. You have a lot of choices in homes and raw land. But the cost of building can look down right scary if you compare it to buying a pre-existing home. Rates are lower, down payments are lower, and you can move right in upon closing!

5) Pride in ownership. There’s no place like home! Think of all the things you get to do: decorate your house, landscape your yard, brag about how cozy and wonderful your home is, take your Holiday pictures in your home and send them to everyone! You have worked hard to have a home and the sense of accomplishment is invigorating. Enjoy!

For more information about the real estate market in this area go to www.SanJuanConnection.com or email me directly at Michele@sanjuanconnection.com (text to 360.317.5683).

First, know that most Buyers nowadays go to the internet to search out their properties, not the local classifieds. Start by typing in the name of your town, the state, and the words real estate or houses for sale. You can also go to a real estate site like Zillow.com or Trulia.com and check out the listings in your area. You will want to use a Realtor who shows up on these web pages with listings. Should you pick the Realtor with the most listings? That depends upon how much individual attention you want. Select a few names, at least three, then add any names that may have been recommendations from friends.

The next step is to meet with each of these three Realtors. Tell them each you are meeting with three Realtors; let’s be fair. Have you ever had an acquaintance that tells you something that you do not comprehend? People have different ways of communicating and the only way to find out if you “click” with a Realtor’s communication style is to sit down and talk to them face to face. Ask some questions and see if their answers seem clear to you rather than jibberish. See if they are actively listening to what you say. Look at their desk and their office and see if it presents the image you like.

When you visit a Realtor, the expectation will be that you are asking for a comparative market analysis (CMA) to set a price for your property. This is a service offered for free by most Realtors who want to get a listing. It is appropriate at the face to face meeting to share information about your property with the three Realtors you choose, but do not tell them the price you want for your property yet. You do not know which one you will pick and regardless of the choice, you will want independent input from all three. Ask them to email you their CMA’s and emphasize that you want to set a realistic price in today’s market. You will probably be asked to show them the house or lot first.

You will likely have a favorite Realtor in mind when you complete this process, even before you see the CMA’s. You have in the process had the opportunity to deal with the office receptionist, the phone messaging system, and the length of time and work involved on your behalf from each of the agents. You have been able to see if they are on time for an appointment. You know how long it takes them to return a phone call. Even if your favorite choice had a price you didn’t like, you can now discuss in detail why you think the price should be different with a person who will listen and respond to your needs. You will be signing a listing agreement with your favorite but the day that you do that, you should call the other two Realtors and thank them and tell them your price. They still have an opportunity to sell your property, and it is a nice thank-you for them to be the first to know it is listed so they can contact their buyers.