Mortgage rates inch upwards

Home mortgage rates crept a bit higher this week with an average rate of 5.42%. This is up from a week ago at 5.38%. It appears (at least for the immediate future) that our super low rates in the mid to upper fours are a thing of the past.

An interesting phenomenon seen in in some potential buyers is the idea of holding out for that ultra-low rate of 4.78% seen a few months ago. While 5.5% is extremely low when looked at from a historical perspective, some buyers are wishing for the rate that they missed. People who bought in the 1980s will be happy to inform anyone who will listen that 5.5% is amazing compared to the double digit rates they faced a few decades ago.

Fears of inflation could be another reason rates will only continue to creep higher.

Read the full article here.

Boeing's 787 delay bad for local real estate?

When looking ahead to the outlook for Seattle area real estate in 2009, 2010 and beyond...one must look at many different economic factors. I don't pretend to be an expert on other industries outside of real estate but the recent news regarding another delay on the 787 Dreamliner made me pause for a second.

Boeing certainly doesn't drive our local economy like it once did...however it is still a major player for employment around these parts. I would keep your eyes on this 787 project because any bad news for Boeing in this already difficult economic climate could have ripple effects on housing.

If Boeing loses too much money because of these delays or future orders for this plane are rescinded because of the long timeline then it's possible layoffs could follow. No jobs leads to selling houses or people not buying houses...not something our market needs.

Read full article here.

Affordable Seattle neighborhoods?

This article is a few weeks old but I'd still like to share it. In the article, The Seattle Times discusses serious price adjustments from the height of the bubble to now. Many average income earning families are now able to afford homes closer or in the city limits of Seattle.

Low interest rates, lower prices and tax credits are all allowing buyers to pursue their piece of the American Dream.

Read the full article here.

U.S. existing home sales up 2.4%

Apologies for the long blog layoff. An upswing in the Seattle real estate market means I have a bit less time for writing on the blog! But here we go...

The Seattle Times published an article this morning that existing home sales in the U.S. are up 2.4%. Because many of these sales are short sales or bank owned properties, the median sales price dropped to $173,000 for the national average. Read the full article here.

The western states saw an increase in home sales by 16%. In fact, this article from the Seattle Times mentions how hot the Seattle real estate market is for homes under $400,000. Seattle sales are down 33% from one year ago but up from March of 2009.

All this data is great but what does it mean? Well, it's still too soon to say we've reached bottom on either a national or local level. Three months of increasing sales is great, however it's only three months. I personally think we are starting to see signs of reaching the bottom in the lower priced tier (under $400k). Unfortunately, the pricier homes may still see a decline.

Price per square foot by neighborhood

Are you curious to know how your neighborhood's value has performed over the last 15 months? Below are charts depicting price per square foot up through March of 2009. The charts below represent large MLS areas that span a more than one neighborhood. If you would like a more accurate report on your specific house, give me a call.

Ballard/Green Lake/Wallingford/Greenwood

Central Seattle/Madison Park/Capitol Hill

West Seattle

North Seattle

Richmond Beach/Shoreline

Queen Anne/Magnolia

Downtown Condos

Residential Architecutre Snapshot: The Bungalow

These narrow, rectangular one and one-half story houses originated in California during the 1880s as a reaction to the elaborate decoration of Victorian homes. The style then moved eastward to the Midwest in the early 20th century, where it remained popular until the Great Depression. Bungalows have low-pitched gabled or hipped roofs and small covered porches at the entry. The style became so popular that you could order a bungalow kit from Sears and Roebuck catalog. The name "bungalow" had its origins in India, where it indicated a small, thatched home. This style of home is common throughout Seattle but are very prevalent in neighborhoods such as Queen Anne, Wallingford, Ballard and parts of Greenwood.

Interest rates under 4%?!

You better believe it! Sterling Savings Bank and Banner Bank are offering mortgages with interest rates under 4% in an effort to stimulate home sales and aid builders in moving inventory.

Read more about it here.