David Edwards King County Real Estate

The week ahead will provide more details on the Homeowner Affordability and Stability Plan due to be released on Wednesday. Among the details to be released is information on whether loans that are in good standing, and which are already guaranteed by Fannie Mae and Freddie Mac, will be able to refinance, even if the loan balance is 5% greater than the home's current value. This will determine the ability of many homeowners to benefit from lower rates. Currently many homeowners would love to cut their monthly expenses with the lower home loan rates available today, but are unable to do so due to the drop in home values.

We received some good news from Reuters, as they released the results of a survey of 47 professional forecasters, predicting that the economy will begin to recover in the second half of this year. Additionally, the Chicago Purchasing Managers Index was better than expected, and being a forward-looking indicator, this gives another bright spot of hope down the road.

Have a great week!

David J Edwards
Real Estate Agent & REALTOR
The David J Edwards Team
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
Website: http://www.davidjedwards.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF
View This Week's Market Conditions Around Your Home: http://www.homeinsight.com/Widget/default.asp?BFBMVVHW4HZT

The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.

Here is some new information concerning the tax credit available to first time home buyers this year.

The tax credit has been scaled down to $8,000 from $15,000, or 10% of the value of the home for any first time homebuyers who purchase homes from the start of the year until the end of November. It starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

This is another good reason for buyers to take advantage of the low interest rates and good buys that are currently out there.

David J Edwards
REALTOR
The David J Edwards Team
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
Website: http://www.davidjedwards.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF

McLean, VA - Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.25 percent with an average 0.8 point for the week ending February 5, 2009, up from last week when it averaged 5.10 percent. Last year at this time, the 30-year FRM averaged 5.67 percent.

The 15-year FRM this week averaged 4.92 percent with an average 0.8 point, up from last week when it averaged 4.80 percent. A year ago at this time, the 15-year FRM averaged 5.15 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.26 percent this week, with an average 0.6 point, down slightly from last week when it averaged 5.27 percent. A year ago, the 5-year ARM averaged 5.21 percent.

One-year Treasury-indexed ARMs averaged 4.92 percent this week with an average 0.5 point, up from last week when it averaged 4.90 percent. At this time last year, the 1-year ARM averaged 5.03 percent.

David J Edwards
REALTOR
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
Website: http://www.davidjedwards.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF

David J Edwards is a full time real estate agent and REALTOR with Keller Williams Realty specializing in Residential Real Estate for buyers and sellers.

Due to the efforts of the National Association of REALTORS® and specific members of Congress, we are making significant progress in regards to housing provisions in the National Economic Stimulus Bill.

Last week, the US House of Representatives passed the American Recovery and Reinvestment Act (H.R.1). This bill has some key provisions that will stimulate the housing market:

It will restore FHA, Fannie Mae and Freddie Mac to 125 percent of median home prices - up to $729,750

It would eliminate the repayment provision for the $7,500 first time home buyer tax credit
It expands tax-exempt housing bonds

Two days ago, the Senate approved an amendment to their bill that offers up to a $15,000 tax credit to people that purchase a home in the next year. The credit would apply to anyone, not just first time homebuyers and you would not need to repay the credit. The credit is based on 10% of the purchase price of the home and the credit is spread over two years. So for example, if you buy a house with a purchase price of $300,000, you would qualify for the maximum credit of $15,000. The first year you claim the credit, you receive $7,500, and you would receive the remaining $7,500 the next year.

David J Edwards
REALTOR
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
Website: http://www.davidjedwards.com
Blogsite: http://www.davidjedwards.com/real-estate-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF

David J Edwards is a full time real estate agent and REALTOR with Keller Williams Realty specializing in Residential Real Estate for buyers and sellers.

KIRKLAND, Wash. (Jan. 22, 2009) - Members of Northwest Multiple Listing Service tallied nearly $20 billion in sales of single family homes and condominiums during 2008. The total reflects closed sales of 54,123 single family homes and condominiums across Northwest MLS Brokers Report $20 Billion in Home Sales During 2008
19 counties in the MLS service area.

Last year's numbers reflect the market slowdown that started in August 2007 when the "mortgage meltdown" became apparent. Both the dollar volume and number of units sold were down sharply from record-setting activity of 2005-2006. In 2005, NWMLS reported around 103,000 closed sales valued at around $33.7 billion, followed by 96,000 residential sales in 2006 worth around $35.4 billion.

Median prices (half sold for more, half for less) for homes and condos that sold during 2008 were down 6.15 percent area-wide compared with 2007. The area-wide median price for a single family home that sold and closed during 2008 was $316,000 (average was $381,665). Condominiums that sold last year had a median selling price of $253,500 (average sales price was $301,065).

Only two counties, Grant and Okanogan, reported slight gains in year-over-year median prices for sales of single family homes and condos combined, while all others experienced declines ranging from 2.2 percent (Cowlitz County) to nearly 11 percent (Jefferson County). Prices in King County, which accounted for 39 percent of the closed sales, fell about 2.3 percent.

MLS figures for single family homes show all counties have had median price gains of 50% or greater since 2002. Single family homes accounted for approximately 84% of the residential units that sold in 2008 and more than 87% of the dollar volume.

In its annual report, Northwest MLS summarized listing activity, pending sales and closed sales. Among some of the findings:

• Members added 137,278 new listings of single family homes and condos to the MLS database during 2008.

• Nearly eight of every 10 transactions (79 percent) were listed by one office and sold by a different office.

• 1,171 single-family homes and 106 condominiums sold for $1 million or more; 598 condos sold for $500,000 or more.

• A Seattle home on Lake Washington fetched the highest sales price at $15.8 million.

• Among condo sales, a penthouse in a downtown Seattle high-rise commanded $9 million, the highest in that category.

• 60% of condos sold during 2008 were in King County, and 76% of condos that sold during 2008 had 2 or fewer bedrooms.

• In the four-county Puget Sound region (King, Snohomish, Pierce and Kitsap), only about 7.3 percent of single family homes sold for under $200,000. Nearly one of every four homes (23.5 percent) in that area sold for $500,000 or more.

• The second quarter was the most active for pending sales; nearly 29 percent of the offers that were made and accepted last year occurred during the April-June timeframe.

• The price of a 3-bedroom home built before 2006 varies widely across the MLS market area. San Juan County topped the list at $575,000, followed by King County at $390,000. The most affordable 3-bedroom homes are in Grant County ($144,250) and Grays Harbor County ($148,000).

• A comparison of prices by school district has Mercer Island as the most expensive. The median price for homes that sold last year in that district was $1,025,000.

Commenting on the 2008 numbers, J. Lennox Scott, chairman and CEO of John L. Scott Real Estate cited five events that "rocked the Puget Sound residential real estate market."

"The year started with the carryover of the credit crisis from 2007, which continued to impact every aspect of the real estate market," Scott remarked. "In March, gas prices rose to more than $4.00 a gallon. Next was the demise of Washington Mutual followed closely by the shock of the stock market adjustment in late September that firmly placed the country in a recession. Lastly was the extreme weather in December that kept people in their homes for nearly two weeks. We knew the real estate market was due for slowing in 2008, but no one could have predicted all of these events or the profound effect they would collectively have on the housing economy," he stated.

Heading into 2009, Scott is upbeat. "We are entering the year of new beginnings: new year, new President, and new attitude. It will also be a year of transition for the housing market that will begin rebuilding itself starting with the more affordable price ranges. We're seeing some of the lowest interest rates in history which will spur both refinance and home purchase activity in 2009."

Scott expects the highly anticipated passage of a new housing stimulus package in January will provide critical support to buyers and homeowners. "The greatest opportunities exist for first time buyers, move up buyers and reposition buyers. As these buyer groups make their move in the coming year it will begin the much needed process of rebuilding the housing economy," according to Scott.

Northwest Multiple Listing Service, owned by its member brokers, is the largest full-service MLS in the Northwest. Its membership includes approximately 28,000 brokers and agents. The organization, based in Kirkland, currently serves 19 counties, mostly in western Washington, plus Grant, Kittitas and Okanogan counties in the central part of the state.