Photos from Bill Sauneuf
The Skagit River, Looking Up-River from the bridge on Concrete Sauk Valley RoadLocated in: Concrete, WA
The problems of the California Real Estate market are affecting the real estate markets of the entire country. Something needs to be done about it! So I'm going to try to help start the recovery by pointing out the good news.
Attn. California agents; Are you seeing an increase in Buyer Activity since President Bush signed the Housing Bill at the end of July?? I'd love to hear about it!! Please comment about it, blog about it, and most importantly tell your customers about it! A grassroots marketing campaign to get the market rolling again can make a huge difference!
For this blog, I'm going to talk about the bad news, then I'll point out the GOOD news. - Yes, there is GOOD news in California Real Estate!
We can't ignore the bad news end expect to have credibility when talking about the good news. So, here's the bad news of California...
Wow, that part sucked! There are a lot of people that have been hurt by this year's market. My parents live in California, so do my Grandparents, so do my Cousins, so do many of my friends. I was born and raised there. I care a lot about California and the people there!
Enough of the doom and gloom. Here's the good news!
EVERY Market in California had prices rise in California over the last 5 years. Real Estate is not stock. You don't buy and sell it on a daily, weekly, monthly, or even yearly basis... It is a long term investment!
|
Metropolitan Statistical Areas and Divisions |
5-Year |
|
|
|
|
Bakersfield |
61.58 |
|
Chico |
41.66 |
|
Fresno |
47.50 |
|
Los Angeles-Long Beach-Glendale (MSAD) |
63.12 |
|
Madera |
54.99 |
|
Merced |
8.57 |
|
Modesto |
15.15 |
|
Napa |
30.79 |
|
Oakland-Fremont-Hayward (MSAD) |
28.79 |
|
Oxnard-Thousand Oaks-Ventura |
37.14 |
|
Redding, |
47.06 |
|
Riverside-San Bernardino-Ontario |
47.23 |
|
Sacramento-Arden-Arcade-Roseville |
22.07 |
|
Salinas |
24.21 |
|
San Diego-Carlsbad-San Marcos |
27.60 |
|
San Francisco-San Mateo-Redwood City (MSAD) |
36.73 |
|
San Jose-Sunnyvale-Santa Clara |
35.72 |
|
San Luis Obispo-Paso Robles |
34.88 |
|
Santa Ana-Anaheim-Irvine (MSAD) |
45.10 |
|
Santa Barbara-Santa Maria-Goleta |
21.92 |
|
Santa Cruz-Watsonville |
30.86 |
|
Santa Rosa-Petaluma |
20.75 |
|
Stockton |
9.54 |
|
Vallejo-Fairfield |
17.63 |
|
Visalia-Porterville |
60.45 |
|
Yuba City |
29.45 |
Do you think California is going to stay down forever? The draw of California, its people, its natural beauty, its educational system, its agricultural and manufacturing base, the Silicon Valley, the Napa Wine Country, Beverly Hills, Hollywood, etc... Ha, California's real estate market will come back strong, and soon! It wouldn't surprise me if California goes from worst to first in a year or two.
Yesterday, I wrote a blog about the fact that there is good news about Florida's Real Estate Market.
California Agents, please speak-up!!
The Florida Real Estate Market Is Having A Terrible Year.
(Please read-on, the story gets much more positive!!)
Everybody knows this. Its no surprise.
Florida has the third worst real estate market in the country. Only California and Nevada are worse off.
Overall, Florida Real Estate Prices have fallen 12.4% in the last 12 months.
The 'Sky is Falling' on Florida Real Estate and we're coming into hurricane season.
How can a real estate agent make it in Florida? By finding the GOOD and telling people about it. A lot!
"Prices have fallen in the Great State of Florida, what better opportunity to 'Buy Low and Sell High!' There are great bargains to be had."
Of the 20 worst performing markets in the country over the last year, Florida has 7 of them. However, real estate is a long term investment. ALL 7 of these markets have STILL experienced at least a 30% gain over the last 5 years, despite the troubles over the last year according to the Office of Federal Housing Enterprise Oversight 2nd Quarter 2008 House Price index (page 27) Real Estate is not stock. You're not supposed to sell it on a daily, weekly, monthly, or even yearly basis. Looking at Florida, you don't have to hold it for 5 years to be very profitable, despite the troubles of the last year.
|
Metropolitan Statistical Areas and Divisions |
5-Year |
|
|
|
|
Naples-Marco Island, |
45.2 |
|
Port St. Lucie, |
33.58 |
|
Cape Coral-Fort Myers, |
37.49 |
|
Fort Lauderdale-Pompano Beach-Deerfield Beach, (MSAD) |
49.87 |
|
Bradenton-Sarasota-Venice, |
37.80 |
|
Palm Bay-Melbourne-Titusville, |
45.07 |
|
Punta Gorda, |
33.42 |
The Nation's housing market is about to get a big shot in the arm from the recently signed Housing Bill. Florida Real Estate will not stay down forever. It is too good a place to live! Buyers will start coming out when they feel the bottom is near. They'll start buying the best deals and the market WILL RECOVER.
No, this is not a book review of David Lereah's Book. I've not even read it yet, but from what I've seen on-line it does look good. I'm ordering it from Amazon tomorrow.
I was inspired to write this post by a guy named Kevin. He wrote the only negative comments on my blog post from yesterday about the 30 States that had Positive Changes over the last year!
His comments got under my skin a little. I knew he was wrong about a great many things, but he made me think. Mainly I was thinking about how to prove him wrong or to argue my points well, but I actually had to think about it.
One of the things that he threw at me was: Just like when the pollyannas try to silence the realists with the message "all real estate is local". - I really didn't have to think about that one. It is so clearly a true statement that I only had to look up data to prove him wrong... The argument was easy. There are markets that are good and there are markets that are bad in every State. There always have been and there always will be. They will always be changing.
The media has been reporting the troubles of the real estate industry and they should.. It is newsworthy. However, the stories I've seen/heard/watched almost all seem to make it look like the housing market is bad everywhere. Its not, of course. But, that's the message that has been reported.
I've not seen a national story that says anything "More than half of the States had Real Estate Prices Go Up over the last year" (which is true).
When I was responding to Kevin, I looked up his State, Virginia, in the 2nd Quarter 2008 OFHEO House Price Index just released this week. Virginia is the perfect example of "all real estate is local." There are 8 Metropolitan Statistical Areas covering areas of Virginia in the report. 4 of them had price increases, 4 had price decreases over the last year. The worst market in the State of Virginia had a pretty bad year, ranking 250th of the 292 areas measured. However, in the same State of Virginia, the Kingsport-Bristol-Bristol market was the 14th Best of the same 292 areas measured. Virginia is a pretty small state geographicly, but to have such a huge range of market conditions within that same small State clearly demonstrates the message "All Real Estate Is Local."
On August 26th, the Conference Board Consumer Confidence Index had improved moderately in July. It made further gains in August.
This is one more sign that the housing market is rebounding. People spend more as confidence goes up. Consumer confidence is not as good as it was in December, but a rebound starts at the bottom...
2 months in a row the numbers have increased. We'll just have to wait until September 30th to see if this trend will continue. I believe it will. The optimism that comes with election time will spur on the market and a new President always gives the economy a boost (no matter which party they are from).
Look for the signs in your area. The housing market is rebounding on a national scale. Yesterday, I spoke about the 30 States had Positive Changes in House Prices over the last year! Look for the positive information and discuss it with the people in your office, your competitors, and especially your customers and the public! A few days ago, I posted a Reuters News video called "Housing shows signs of life" that talks about how the worst is over.
Are you feeling the confidence returning? Is your market improving?
More good news for the real estate industry!!
According to the Office of Federal Housing Oversight's Housing Price Index for the 2nd Quarter of 2008 released August 26th, 30 of the 50 States had positive changes in house prices from June 2007 through June 2008, including our very own Washington State!
Only 4 States (Arizona, Florida, Nevada, and California) experienced overall price declines of more than 5 percent.
The 20 ranked cities in the United States with the worst price declines over the last 4 quarters were ALL in Florida, California, and Nevada.
I really do sympathize with the people of these four fine States. Some of the price declines they have experienced are simply horrible! However, there are 50 States and only 4 with truly bad news for the last year. The rest of the country is simply experiencing a market correction from a rapid increase over the last 5 years combined with some sloppy loan practices that hurt the lending industry. The United States overall had a -1.71% change over the last year (skewed down heavily by the 4 troubled States). However, even with the challenges over the last year, the United States STILL has had a 34.84% increase in home prices over the last 5 years! - How is that supposed to be bad???
Over the last 5 years, Arizona STILL gained 62.68%, Florida STILL gained 54.03%, Nevada STILL Gained 50.81%, and California STILL gained 41.81% despite the losses of the last 4 quarters.
It is time for the news media to put away the "Chicken Little - The Sky is Falling" type stories. The truth is that the nation's real estate market is rebounding.
- I've posted the top 30 States in the comments section, CLICK HERE to see them.
I serve primarily Skagit County - Mount Vernon, Burlington, Sedro Woolley, Anacortes, La Conner, etc. I also serve Island County - Oak Harbor, Whatcom County - Glenhaven & Bellingham. Seattle too..
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My Certifications
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Real Estate Terminology
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Acre - A unit of measure used in real estate. One acre equals 43,560 square feet of land.
ARM - Adjustable Rate Mortgage - A loan that allows the interest rate to be changed periodically.
Agency - A legal relationship in which an owner-principal engages a broker-agent in the sale of property or buyer-principal engages a broker-agent in the purchase of a property. See The Law of Real Estate Agency Pamphlet
APR - Annual Percentage Rate - The total finance charge (interest, loan fees, points) expressed as a percentage of the loan amount.
Amortization - The gradual repayment of a mortgage by periodic installments.
Application Fee - The amount that a lender charges for processing a borrower's application for a loan.
Appraisal - An estimate of the value of a property.
Appreciation - an increase in property value.
Assessed Value - The valuation placed on a property by a public tax assessor as the basis of property taxes.
Assumption of Mortgage - Agreement by the buyer to assume responsibility for a mortgage owned by the seller; the seller remains liable to the lender unless the lender agrees to release him or her.
Balloon Loan - A mortgage that has a substantial amount of the principal due at the maturity of the note.
Broker - A person licensed by a state real estate commission to act independently in conducting a real estate brokerage business. Although the requirements for a broker's license vary from state to state, an individual usually must have one or more years of experience in the industry and pass an examination.
Building Codes - Local safety codes regulating the construction of buildings. They include design, materials, and many other related aspects of construction.
Buydown - A payment to the lender from the seller, buyer or third party, causing the lender to reduce the interest rate during the early years of the loan.
Cap - A maximum amount of interest that can be charged.
Capital Gains - The taxable "profit" made from the sale of real estate. This can be either recognized (and taxes paid), or deferred.
Capital Loss - The loss derived from the sale of a capital asset..
Certificate of Title - A document stating that a seller has an insurable title to a property. It must be signed by a title examiner to be valid.
Closing - The final step in transferring ownership of a property from seller to buyer.
Closing Costs - Fees and expenses, not including the price of the home, payable by the seller and the buyer at the time of closing (e.g. brokerage commissions, title insurance premiums, inspection and appraisal fees).
Comparables - Recently sold properties that are similar in size and location to the property being purchased.
Comparative Market Analysis (CMA) - A survey of attributes and the sales history of comparable homes as well as current homes on the market used to help determine the current market value of a property.
Commission - A fee paid to an agent or broker for services performed. This is usually based on a percentage of the total transaction.
Community Property - Property acquired and jointly owned by husband and wife in which each has equal interest.
Contingency - A condition that must be satisfied before a contract is binding.
Contract - A binding legal agreement between two or more parties the conditions for the exchange of value.
Conventional Loan - A fixed-rate, fixed-term loan that is made without government insurance.
Convertible ARM - Loans that give you the opportunity to convert to a fixed-rate mortgage, usually between the 13th to 60th month of the loan.
Convey - To transfer property or title from one person to another.
Cooperatives (co-ops) - A buyer purchases shares in a co-op corporation, made up of the residents in the co-op property. The buyer owns the shares rather than owning the real property. In exchange, the buyer has the right to occupy a co-op unit.
Co-Signer - A person who signs a note and thereby becomes liable for repayment of that note with the borrower.
Debt-To-Income Ratio - A lender's calculation of a borrower's income represented by a borrower's housing payments plus all other revolving debt payments.
Deed - A legal document conveying title to a property.
Deed Restrictions - Any provisions in a deed restricting ownership or use of the property. Limitations on rights-of-way, or easements granted to other parties are examples of deed restrictions.
Deposit - A percentage of the purchase price paid when the Purchase and Sale Agreement is signed. It is typically held in escrow until the transaction is completed.
Depreciation - Refers to when a property's value decreases.
Down Payment - A percentage of the purchase price that the buyer must pay in cash and may not borrow from the lender.
Earnest Money - A payment given to the seller by a potential buyer indicating the buyer's intent to complete the purchase of the property.
Equity - The owner's value or interest in a property.
Encumbrance - A legal right or interest in lang that affects a clear or marketable title and diminishes the land's value. This can be in the form of zoning ordinances, easement rights, claims, mortgages, liens, un-pait taxes, a pending legal action, or restrictive covenants.
Escrow - The placement of money or documents with a third party for safekeeping pending the fulfillment or performance of a specific act or condition.
FHA Mortgage - A mortgage loan insured by the Federal Housing Administration, permitting lenders to offer better terms.
Fixed Rate Mortgage - A loan that has only one stated interest rate.
Fixture - A recognizeable entity that is permanently attached to the property and belongs to the property when it is sold. (Such as a sink or light fixture)
Good Faith Estimate - The owner's value or interest in a property.
Hazard Insurance - An insurance policy that compensates for property damage from specific hazards such as fire and wind.
Home Inspection - A professional review of a home to assess its overall condition and identify existing or potential structural and/or mechanical problems.
Hybrid Loans - An approximation of closing costs that a lender is required to give to a prospective mortgage borrower within three days of applying for a loan.
HUD - Housing and Urban Development - A U.S. government agency established to implement certain federal housing and community development programs.
Interest - The cost of borrowing money. This is usually expressed as a percentage rate.
Lien - A legal claim against a property that must be paid when property is sold.
Listing Contract - An agreement whereby a property owner hires a real estate company for a specified period of time to sell a property. Upon the sale, the real estate company receives a commission usually in the form of a percentage of the sales price.
Loan Origination Fee - The charge you must pay to the lender for processing your mortgage.
Loan-To-Value Ratio (LTV) - The relationship between a mortgage on a property and its value. For example, if there is an $80,000 mortgage on a property worth $100,000, then the loan-to-value ratio is 80 percent..
Market Price - The actual price a property is sold for.
Market Value - The highest price a ready, willing and able buyer will pay and the lowest price a seller will accept.
Mortgage - A lien on real estate given by the buyer as security for money borrowed from a lender.
Mortgage Commitment - A written notice from the bank or other lending institution stating that it will advance mortgage funds in the specified amount to enable a buyer to purchase a property.
Mortgage Insurance - A policy that provides protection for the lender in case of default and guarantees repayment of the loan in the event of death or disability of the borrower. This is generally imposed with a loan-to-value ratio of more than 80% of the market price
MLS - Multiple Listing Service.
Origination Fee - An fee or fees for processing a proposed mortgage loan.
P & I - A periodic (usually monthly) payment that includes the interest charges for the period plus an amount applied to amortization of the principal balance.
PITI - Principal, Interest, Taxes and Insurance Payment - The periodic payment that includes the principal and interest payment plus a contribution to the escrow account set up by the lender to pay insurance premiums and property taxes on the mortgage property.
Plat - A map or diagram of a lot, sub-division or community drawn by a surveyor showing boundary lines, buildings, improvements to the land (buildings, etc), and easements.
Points - A dollar amount, expressed as a percentage of the mortgage amount, which is paid to a lender as a consideration for making a loan. A point is 1% of the amount of the mortgage loan; also called discount points.
Power Of Attorney - A written document giving authorization to one person to act on behalf of another person.
Pre-Approval - Preliminary approval for a mortgage loan before an application is complete. It may or may not be a formal commitment by a lender to make a loan. It will usually outline conditions to be met before final loan approval.
Prepayment - Payment of part or all of a mortgage loan before it is due.
Prepayment Penalty - A fee paid by a borrower who pays off the loan before it is due. (This does NOT apply to all loans.)
Pre-Qualification - An informal estimate of the maximum mortgage loan amount that a borrower could obtain. This is based on a calculation of available income and existing debt.
Principal - The amount borrowed upon which interest is paid. (distinguished from interest, taxes and mortgage insurance)
Private Mortgage Insurance (PMI) - See Mortgage Insurance.
Promissory Note - A written agreement primising to repay a loan.
Prorate - To divide or assess proportionally.
REALTOR® and REALTOR ASSOCIATE® - Registered collective membership marks that identify real estate professionals who are members of the National Association of REALTORS and subscribe to its Code of Ethics.
Settlement - All final transactions required to make a contract final.
Survey - A plat or map made by a licensed surveyor showing the results of measuring the land with its improvements, boundaries and its relationship to surrounding lands.
Title - A document that is evidence of ownership.
Title Insurance - Protection for lenders and homeowners against financial loss resulting from legal defects in the title.
Title Search - A check of title records to identify liens, encumbrances and ownership rights to the property.
VA Mortgage - A mortgage loan guaranteed by the Veterans Administration, an agency of the federal government that provides services for eligible veterans.
Variance - A limited exception from local zoning requirements.
Warranty - A written or implied guarantee that property is in the condition described and will perform as promised. This includes met mechanical systems, plumbing, and appliances. Century 21 has a Home Warranty Program available through AON that can be purchased by either the buyer or the seller.
Zoning Ordinances - The acts of an authorized local government establishing building codes, and setting forth regulations for land usage.
If you're considering selling your home, you'll want a Realtor who is there for you 24 hours a day... A Realtor who markets your home well on the Internet, in Print, with a Toll Free hotline, and a Talking House radio transmitter broadcasting information about your home all day long. You deserve nothing less!
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My Personalized
Marketing Services
- This Web Site: www.Sauneuf.com
- Realtor.com: www.Realtor.com
- The Real Estate Book: www.RealEstateBook.com
- Harmon Homes: www.HarmonHomes.com
- Pacific Northwest Homes: www.PNWWHomes.com
- Northwest MLS: www.NWrealestate.com
- Real Estate.com: www.RealEstate.com
- Lycos Search: www.Lycos.com
- Bob Vila's Site: www.BobVila.com
Inexpensive Improvements to Help the Property Show Better
and Closing Documents Prior to Signing
"Bill Listed and Sold my condo in less than one week! He advised me on the best Buyer to choose in a bidding war, and we made more profit than we had planned on receiving! Thanks Bill"
-- Jennifer P.
Shoreline, Washington
Happy Condo Seller
"Bill took the time to identify our complicated wants and requirements & worked to match these with a unique property. This required him to find a property that was not presently listed. He presented all the information and connections to complete a complicated transaction & was involved from selection to closing."
-- John & Georgia M.
Burlington, Washington
Happy Home Buyers
"Thanks for selling our house so quick and being so aggressive in your marketing. We feel the Large Sign, Flyer Box, Radio Transmitter and the Home Warranty all played a major part in our sale. We enjoyed working with you. Thanks again."
-- Brian & Debi
Mount Vernon, Washington
Happy Home Sellers
"Bill made me feel like I was a priority. He goes out of his way to make sure you know whats going on."
-- Steve S.
Sedro Woolley, Washington
Happy Navy First-Time Home Buyer
"Bill was right there for us at every stage - from the tedious search for our next home to finalizing the sale and purchase process. We felt confident enough that we could concentrate on the move itself."
-- Ray & Allie J.
Mount Vernon, Washington to Concrete, Washington
Happy Home Sellers & Buyers
"With the Housing Market so crazy and demanding, Bill still was willing and able to tend to our needs of finding our perfect home - And he accomplished that for us! Thank you Bill & Century 21"
-- Bryan & Cindy T.
Mount Vernon, Washington
Happy First-Time Home Buyers
"We appreciate Bill's patience throughout our experience. He was very clear in explaining each step throuhout the process."
-- John & Shari M.
Sedro Woolley, Washington
Happy First-Time Home Buyers
"Bill had great recommendations and suggestions for preparing my home for the real estate market. He uses successful marketing techniques and got immediate results!"
-- Adrienne S.
Mount Vernon, Washington to Burlington, Washington
Happy Home Seller & Buyer
"Bill will go the extra mile, through this whole process, even off hours. I was stressed, one phone call, he'd set our minds at ease. We love our home! Thanks Bill.."
-- Jan & Leslie J.
Burlington, Washington
Happy First-Time Home Buyers
"What I appreciated was the honest critical opinion of our home, changes we could make to make the home more salable. Tactics that I am sure that lead to the quick sale of our home. Very prompt, reliable service. Every detail was covered. We have bought and sold several homes and never had more professional treatment. Above and beyond the call of duty!!!"
-- Paul & Evelyn R.
Mount Vernon, Washington
Happy Home Sellers
"I thought buying a home would have been a huge pain, but Bill explained everything in detail. He even found us a lender that got us a Very low rate mortgage! I don't think it could have been easier for a first time home owner. Thanks."
-- Paula & Jason M.
Mount Vernon, Washington
Happy First-Time Home Buyers
"Bill helped us find a home and kept us well informed through-out the entire process. He stayed with us all the way including the signing. We couldn't have gotten here without him."
-- Joe & Judy S.
Mount Vernon, Washington
Happy Homeowners
"Bill was amazing. Not only did he find us the perfect house for our family, he went out of his way to make our first home buying experience a great one."
-- Jason, Paula, & Samantha D.
Happy First-Time Homeowners
Oak Harbor, Washington
Navy Family
"Bill went above and beyond his duties when it came time for closing."
-- Todd P.
Sedro Woolley, Washington
Happy First Time Homeowner
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