Market Update March 17th

This week began with our county date trends showing a major decrease in Pierce County inventory of the last 12 months, down 15%. King County stayed relatively even with a slight 1% increase in inventory since February 2008.

This tells us two things; the first obviously being the health of the King County real estate remains stronger than Pierce County, which has been a previous trend. Also it tells us that the decrease in inventory is due to the extensive competition from Bank Owned and Short Sale listings. These distressed homes are currently making up close to half of the YTD sales in the Auburn, Bonney Lake, Buckley and Sumner area.

From my experience appraisers have not used these distressed homes to formulate appraisals in the past but now they are. Sure the educated buyer is aware that short sales can be tricky and challenging to close but for 10% or more below competition they can be worth the wait, same with banked owned homes. This is why I let buyers know that bank owned homes, when in good condition, are always a good route to go. They offer the same instant equity and are available to close faster.

Today's sellers need to be aware that their homes can and will sell but they have to be in selling condition. In the past seller's have been able to put a sign up and their property has sold within a month or two. Unfortunately market times and competition have increased. Today these seller's need to be educated on the current prices in their neighborhood and surrounding comparables. Also they need to establish planned price drops for their home so they will stay with the market and get behind the trend.

Remember if your home is not getting any showings, your priced to high. If you are not getting any offers, your priced to high. Lower the price until you are getting showings and offers are coming in. It's that simple.

Rates are good today once again. It appears an FHA 30 year fixed rate loan is at 5% and 4.875% for conventional loans. Remember there still are areas in North Pierce and South King County offering zero down financing through the USDA Rural Loan Program.

Keep educating yourself on the mortgage market and the housing trends. I am sure you will see that within the next six months is a wonderful opportunity to buy.