Shannon Wallace

FHA Policy Changes Highlights

FHA announced today some changes to address risk and strengthen finances. The mortgage insurance premium will be increase, seller concessions will be reduced, and FICO scores will determine what down payment percentage a buyer will qualify for.

1. The up front mortgage insurance premium (MIP) will now be 2.25%. This will take effect in the spring.
2. Seller concessions will be reduced from 6% to 3% and will go in effect in the early summer.
3. Borrowers must have a FICO score of 580 or above for FHA's 3.5% down payment program. A score lower than 580 would mean a down payment of at least 10%. This will also go into effect in early summer.

For any buyers qualified for FHA financing that are waiting for "the best time to buy". The time to get off the fence and buy is NOW NOW NOW!!!

What happened in the Bellingham Real Estate Market in April?

Residential:

Sold: 71 properties
Average Days on Market: 123
Median Price: $308,000

38 of the 71 properties were in the $200-349,999 price range

Condominiums:

Sold: 17 units
Average Days on Market: 135
Median Price: $235,000

9 of the 17 units were in the $200-299,999 price range

Vacant Land:

Sold: 4 properties
Average Days on Market: 207
Median Price: $115,000

Multi-Family:

Sold: 2 properties
Average Days on Market: 59
Median Price: $324,050

Manufactured Homes:

Sold: 1
Average Days on Market: 25
Price: $26,500

The Bellingham Real Estate Market is alive and well!

To stage or not to stage is the question for Bellingham sellers. The answer is overwhelmingly YES! Staging your home for sale brings you more money in less time. In a real estate market where competition is fierce and buyers have much to choose from, make your home stand out in the crowd. I did my own study on my Bellingham buyers and paid careful attention to what THEY looked at when they entered a seller's home. Hands down they looked at seller's personal items first, home second. If the sellers had their home full of family photos, collections or just stuff in general, the buyers were overwhelmed and didn't really see the home at all. Most of them did not have the ability to visualize what the home could look like with their own belongings. When buyers enter a home, they need to see the home with their furniture in it. If the home was staged, their attention was focused on the details of the home. The way we live in our homes is much different from the way we sell our homes. We detail our cars before we sell them, why not our homes? I believe in it so much I went to staging school for my Accredited Staging Professional designation. So remember Bellingham sellers-stage it!

One of the great things about living in Bellingham is the close proximity to the Skagit Valley Tulip Festival. Imagine hundreds of acres of tulips burst into magnificent colors. It is a month long celebration that lets us know Spring has finally sprung! Events are scheduled throughout the month of April while the flowers bloom according to Mother Nature's schedule. This year the Festival is extended to May 3^rd due to the late tulip bloom. 300,000 to 400,000 visitors make the trek to enjoy the sights and visit the surrounding towns of Mount Vernon, La Conner, Sedro-Woolley, Burlington and Anacortes. If you are lucky enough to live in Bellingham, it's a hop, skip & a jump away to the Skagit Valley Tulip Festival.

Six reasons to buy a Bellingham home this spring!

1. Inventory: We have the biggest selection of homes and condominiums that most buyers have ever seen. Buyers now have the opportunity to shop hundreds of properties to find the perfect home where as only 5 years ago they may of only had a few choices to choose from.

2. Prices: In January 2009, average home prices in the United States were similar levels to what they were in late 2003.

3. Interest Rates: Historically low interest rates are making mortgages more affordable than ever. If you could afford a $200,000 home loan with a 6.5% interest rate then today at our current interest rates you can now afford a $240,000 home for the same monthly payment. Buyers are getting 20% more purchasing power now than they had only 6 months ago.

4. $8000 Tax Credit: First time home buyers can purchase a home and receive up to $8000 back on their tax return just for buying a home. It's like getting paid to invest in real estate.

5. Loan Programs: Buyers can purchase a home with next to nothing out of their pocket because of government approved loan programs. Zero down loan programs are still available for buyers with credit scores starting in the low to mid 600's.

6. Foreclosures - Short Sales - Bank Owned Properties: Buyers are able to purchase homes 25% under last appraised values. If you are looking for a good deal there has never been a better opportunity.

These factors are creating the perfect storm for the first time home buyer. Affordability is at an all time high, interest rates are low, and buyers have many choices. Don't be one of those buyer who will be driving by properties in a few years saying "If I would of only bought that home in 2009!" For more information on reasons to buy now, contact your local Realtor!

For more information visit my Bellingham Real Estate website!!