This Week: The median single family home price in Bellevue this week is $799,974  With inventory trending up but days.  With inventory trending up but days-on-market trending down and the Market Action Index essentially flat recently, conditions don't seem to have strong up or down pull. PRICE: The market has been on a downward trend recently and this week, while essentially flat, doesn't break us out of that cycle. The Market Action Index answers the question "How's the Market?" By measuring the current rate of sale versus the amount of the inventory. Supply & Demand: Local conditions are currently quite strongly in the Buyer's Market zone (below 30).  The 90-day Market Action Index stands at 9.  With several months of inventory available at the current sales rate, buyers should find a... 06/10/2009

The US Department of Housing and Urban Development announced today that the $8,000 tax credit is officially approved for use as down payment provided at closing! Woah, pump the brakes dude. Before you leave work early to write an offer, we're still one step away -- getting the lenders ready to implement this. BUT, today was a HUGE leap forward and many of the logistical details are now know. I would caution everyone to be patient, however, and if you're writing an offer and relying on this, a contingency for this being available may be a prudent step. So far this is specifically for FHA loans. It remains to be seen whether it makes sense on a conventional loan or whether they will allow this, but the majority of my buyers waiting for this are looking at FHA anyway. Here's the IRS site o... 05/29/2009

Mortgage Rates have gotten a little squirrelly of late, and are up about .25% from my last posting, here (yes, you must read my previous post -- it's the ol' bait-and-switch). Many Economists (whoever that guy is, he sure is mysterious) say that rates are likely going to climb to 6% by the end of the year. THIS COULD BE IT PEOPLE! Ok, that may be slightly dramatic, but rates always go up faster than they go down, so if you're getting close to buying or refinancing... "Hello, this is James Wirth with your red carpet room service. It's now time to WAKE UP... or I mean... LOCK YOUR RATE! As always, thanks for reading! --James Wirth 05/21/2009

Bellevue's waterfront homes have seen some significant sales so far in 2009.  According to the NWMLS, there have been 9 waterfront single family homes sold so far this year, ranging from $1.05 million to $3.68 million.  Who says there are no buyers for high end properties? These waterfront homes all seem to be selling within 5%-10% of their list price, which is fairly good considering the current declining values in the upper end of the market.  It seems that these sellers of waterfront real estate are willing to negotiate on their prices, but aren't necessarily taking big price cuts to make a transaction happen. Bellevue waterfront homes for sale Sam DeBord and Brian WiegandSeattleHome.com (206) 431-5900Seattle Waterfront Real Estate Brokers - RE/MAX ConnectedSeattle Waterfront Homes -... 05/15/2009

How's everybody doing? Everyone keeping up?!? Washington State legislature passed a law recently that allocated funds to be used as short-term loans that would provide the $8K tax credit up-front, at closing to be used as down payment or for closing costs! You can read a recent article on the subject here. We've bumped into a bit of an accidental IRS road block, that they are currently working through. And now, FHA SEcretary Shaun Donovan indicated to a NAR conference in Washington that 'that important changes, which the National Association of Realtors® has been calling for, will help consumers purchase a home. "We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment," Donovan said. ... 05/13/2009

Interest rates today remind me of my 1 1/2 year-old... I turn my back for ONE SECOND and he falls down! Based on a number of factors including unemployment numbers coming in worse than expected, mortgage rates went down today, closing at the recent low: 4.5% Rate / 4.673% APRP & I payment: $2,112.88Loan amount: $417,000Down payment/equity: 20%Loan Program: 30 Year Fixed Rates are as of 5/13/09. Subject to change without notice and most likely they will, but I will be ready in the morning in case they open where they closed! Anyone care to lock a rate? Anyone? Bueller? Bueller?   --James Wirth 05/13/2009

I have received a lot of feedback on my original posting entitled "The Home Affordability Refinance Program." You can read the original post and comments here. The goal of my original posting was to provide information regarding the newly announced "Making Home Affordable Program." Here' s a quick review: The program has two components: the modification program -- designed to reduce the monthly payment of struggling homeowners to a more affordable level to keep them in their homes; and The refinance program -- designed to allow homeowners to refinance into a lower rate who are not able to qualify otherwise because of a loss of equity due to lower values. There is still a lot of confusion about the details of the programs, so I've compiled a list of Frequently Asked Questions based on co... 05/12/2009

It isn't too far of a drive from up here in Lynnwood and Everett to get to this free financial literacy class in Bellevue this weekend.  I am really excited to go and learn some new skills to help keep our household budget in shape and keep us on the path to financial freedom.  While I really do love selling real estate, it will be exciting when the day comes that I can do it purely for the joy of it and not worry about paying the bills! Jim Piccolo, founder of Nouveau Riche (the best real estate education program in the country in my opinion) along with Craig Cottrell, the creator of the first college credited course on financial literacy will be doing the speaking, and it should be fantastic.  This is an all day seminar, so my brain may be a bit melted down with information and ideas ... 05/01/2009

For any fellow Princess Bride fans, that classic line can be used in myriad ways. In this case, I'm absolutely flabbergasted that we haven't seen an increase in mortgage rates. In fact, they might have smidged down. This is to me absolutely, positively, and unequivocally, inconceivable. Oh no wait, now they're up again. Oops -- they've inched down. Now back up. And so it has gone for the past couple of weeks -- down a smidge, up two smidges, down half of a smidge, and so on. Rates are basically unchanged and vary by down payment, loan program, discount points etc. anywhere from 4.5% rate/4.75% APR to 5% rate/5.25% APR for a 30-year Fixed, .25% more for cash-out, etc. etc. I will say this -- loans are taking longer. It's better to get all of your paperwork in, submit for approval, and th... 04/29/2009

HEADLINE: Baltimore Sun: Shortage Of New Homes Seen -- Credit Crunch Means Fewer Units Will Be Ready When Recession Eases Analysts have been predicting a shortage on new homes in the Puget Sound area will start in September due to the lack of new construction permits being issued.  Looking at this chart ... (Eastside - New Construction - Based on Pending sales) ...You can see that the months of inventory are shrinking.  And at this rate, we will get to a balanced market after September.  If it continues we will be in a Seller's market by early next year for new construction.  This, some believe, will put pressure on the overall market and push prices higher in 2010.  A year from now, concerns about buying a home only to see it loose value will be behind us. And the headline- That's from... 04/28/2009

I could hardly contain myself. FINALLY, after all the discussions on proper etiquette and respect and etc. etc., the days of torture were over. There they were, lined up along the wall in all their glory.  It was like I was at opening day at Kentucky Derby - anxious energy, nipping at the other horses, chomping at the bit ... The gates flung open and I dashed across the room. I had spent literally minutes mapping out my strategy to get to the right section. Past the flutes, dodge the baritones beyond the trumpets and just before the clarinets.   First to reach the line-up I went straight for the coolest instrument I had ever seen - the saxophone. With several to choose from and the rest of the pack closing in - I grabbed the biggest one I could find: A TENOR! That was 7th grade. I activ... 04/21/2009

Yes yes, another trek reference. Not that anyone's counting *sigh* The week started lower, held at the hump and lost momentum in the last couple of days. Here's where we wound up: 4.875% Rate / 5.026% APRLoan amount: $417,000Down payment/equity: 20%Loan program: 30 Year FixedMinimum credit score: 720 Everything points to this being the bottom for rates -- well, except that ONE Bank of America announcement that said they expected 4.125% rates. Hey BofA, here's an idea -- take that TARP money and MAKE NEW LOANS! Ok, I apologize. My usual diplomacy is nowhere to be found. Thanks for reading!   04/17/2009

In a blog on the subject of the Making Home Affordable program, I have received a number of questions from ActiveRain'ers looking for clarification, expressing their frustration or generally commenting on the program. I have also received a number of private messages from individuals who had specific questions they wanted to be kept out of the blog. You can view and comment on the blog post here. In both of these scenarios I have done my best to provide clarification as I understand it. Unfortunately the program is still very new and I don't believe it's really up and running yet; I'm not sure how helpful I've really been but I hope people continue to comment, and I'll continue to respond. One recurring question/frustration -- especially in the private messages, has been this: 'I bought... 04/16/2009

An article was released today quoting The Donald in a phone interview on CNBC's "Squawk Box." The article quotes Mr. Trump as saying: "The banks are not lending money, there's no money out there, no matter how strong you are, no matter how good your deal is, if you go to a bank today they virtually laugh at you if you're asking for money. They don't have money or they're hoarding money," OUCH. Here's the full article, and it had a pretty catchy title: Banks 'Virtually Laughing' at Loan Seekers: Trump But if you take the time to watch/listen to the interview -- which most of us don't have time to do -- he was very clearly talking about commercial loans, NOT residential financing. When you're in the market for a FIVE HUNDRED MILLION DOLLAR loan, I imagine it's a lot different than the fiv... 04/15/2009

Mortgage rates held on to improvements made over the previous sessions today. Little Mr. Doubting Thomas here was sure they were going to climb back up.   DARN YOU MAGIC 8-BALL!!!!!!   Lucky for you fence-sitters out there, you got to weigh the pros and... well, they're really all pros... for another day. I leave you with one of my favorite quotes: "Good things may come to those who wait, but only the things left behind by those who hustle." Abraham Lincoln.   Let's show some hustle people! Pick up those knees! MOVE! MOVE! MOVE!   :) Thanks for reading! --James Wirth 03/31/2009

The last couple of bond market cycles have produced a nice little drop in rates. Although it's impossible to predict any bottom (stock market, gold market, real estate market, rates), all factors point to rates being as near to the bottom as we can really hope to guess: 4.625% Rate / 4.773% APRP&I payment: $2,143.96Loan amount: $417,000Down payment/equity: 20%Loan Program: 30 Year FixedMinimum Credit Score: 720 The only sure way to see the bottom? In the rear-view mirror. For every 1 person who times the bottom just perfectly, there are 100 who missed it; maybe even more than that. Call or email me today. Let's talk about why right now really is the time to buy.   Thanks for reading! --James Wirth   03/30/2009

In my blog at the beginning of March I outlined my understanding of that portion of ARRA (the American Recovery and Reinvestment Act of 2009), designed to curtail foreclosures and assist homeowners in taking advantage of the historically low mortgage rates currently available. My original blog entry can be found here. A couple of asides: There's a site that has been published containing interactives, information releases et al regarding ARRA, which can be found at www.recovery.gov. The foreclosure mitigation plan, now somewhat officially coined the "Making Home Affordable" program, can be found at www.makinghomeaffordable.gov. Ok: Here's an UPDATE on the loan modification and refinance plans: We're still waiting.......... While more details have been released since my original posting (... 03/30/2009

Even as the Bellevue Washington real estate market remains in a relatively uncertain climate, buyers are finding lots of opportunities. Now, thanks to recent government efforts, those opportunities are boosted by tax incentives designed to give buyers more of a reassurance. Reassurance is great and so are reduced prices but none of them have made obtaining a Bellevue Washington real estate home loan any easier. In fact, getting approved for a home loan has actually become harder. It’s not necessarily the fault of borrowers as it is the dishonest acts by some individuals and institutions that were at least partially responsible for the surge in foreclosures. Unfortunately this means that even the most well qualified buyer with a spotless credit score is having trouble getting lenders to ... 03/18/2009

Even with the market hardships, there are still people out there looking to invest Bellevue Washington real estate. After all, now is supposedly the best time to take advantage of existing low prices and the various incentives the government has enacted to get more buyers off the fence. More affordable as Bellevue Washington real estate may be however, obtaining the home loan these days is a process that is easier said than done. Due in part to the various disreputable acts committed by many lenders during the Bellevue Washington real estate market heyday, even honest buyers with impeccable credit are finding that lenders are taking a very tough stance in granting home loans. To a certain degree, the increased difficulty in obtaining home loans for Bellevue Washington real estate can be... 03/17/2009

In this weeks Real-Time Market Profile, the median single family home price in Bellevue this week is $722,250.  The 730 homes have ben on the market for an average of 170 days. Inventory and days-on market are climbing, while the Market Action Index has been flat recently. The trends point to a weakening market. Frames not supported To get a tightly targeted understanding of homes in the market, I break each locale into quartiles.  Each quartile is 25% of the homes listed.  They are broke out as follows: Most Expensive 25% of homes Upper-middle 25% of homes Lower-middle 25% of homes least expensive 25% of homes I will refer to the quartiles in the trend graphs below. PRICE The market seems to have paused around this plateau.  The Market Action Index is a good leading indicator for the d... 03/06/2009