"The Maple Valley Specialist!" Colleen Fischesser Broker/Owner 425-432-5400

I closed a sale yesterday.

There were no celebrations, no high fives. The sellers said good bye to a dream, which for them had started about three years past; before everything went crazy and when anything seemed possible.

I worked hard on this short sale, harder than I have since the early 90’s when appraisals were coming in low and you didn’t have to look far to find a difficult transaction.

Little did I know….

I think the buyer is happy with the purchase, although that process wasn’t an easy one either. It had all of us wondering “if?” and “when?” .

These owners didn’t have to do “the right thing”.

They were put in a very crappy loan under ridiculous terms. They were doomed the day they closed escrow. After months of trying to get a loan mod, they chose to navigate the hurdles of the short sale path in order to avoid the stigma and consequences of foreclosure.

After approximately 8 months (a year since first trying to get a loan mod) they have a clean slate and can now begin to rebuild. They are young and awesome people. I have no doubt they will be fine.

And hopefully, after they are able to recover and regroup, I’ll be able to help them with something we can celebrate.

I look forward to that day!

In the real estate industry, we refer to Bank Owned properties as "REOs". REO stands for Real Estate Owned. I don't understand why they're referred to as that because afterall, isn't all real estate owned....by someone?

REO property inventory has certainly had it's impact on both the Residential and Commercial market across the country, and the South King County market is not immune.

Here's what's going on with REO properties in South King County*

Active Listings: #134 Average List Price: $287,119 High Price: $999,900 Low Price: $269,450

Pending Listings: # 162 Average List Price: $234,883 High Price: $700,000 Low Price: $223,950

Sold Listings #346 Average Sales Price: $237,036 High Price : $690,000 Low Price: $224,500

*This Market report is for single family homes listed in Auburn, Federal Way, Enumclaw, Black Diamond, Covington, Maple Valley, Renton and Kent and represents only properties listed and sold through NWMLS. Sold listings are for last 6 months only.

For the last eighteen months or so we have seen new construction inventory slowly being absorbed. Builders (wisely) halted many of their planned new starts; offered enticing incentives and made aggressive price reductions in order to get many finished product off their books.

An encouraging sign for the Maple Valley housing market can be found in a few new recently listed projects. Although these are "presale only" inventory (which means the builder will not start the house until an offer is signed around) the fact that money is flowing again and builders have the ability to get these projects moving forward is step in the right direction.

Of course, builders have to adjust their product to what's in demand, and right now that's first time home buyer (aka affordable) price ranges.

If you're thinking about buying a home from a builder, it is wise to bring your own agent with you to the site and help you negotiate the contract. An experienced agent will be able to help you with lot selection....looking at the pros and cons for resale down the road as well has help you determine points of negotiation with the Builder. Many times the builder will ask that you use a proprietary contract, which is very much slanted in the seller's favor. It's a good idea to have someone looking out for your best instead of the the builder's bottom line.

Here's what's going on today with residential New Construction in Maple Valley:

Currently 52 Active Listings: Average List Price: $375,534

Currently 20 Pending Sales: Average List Price: $304,189

Last 6 Months: 13 Closed Sales: Average Sales Price: $333,931

Notice the higher number of pending sales. These reflect the Presale inventory which will stay pending for the roughly 6-7 months it will take for the builder to complete the home. These homes were listed within the last few months and are being well received by buyers who can wait on a finished product.

For every real estate professional, the new year starts out with uncertainty and no small amount of anxiety. We do not pull a bi-monthly paycheck, or have an annual salary upon which to base our budgets. I don't care how experienced or successful, no one in real estate sales knows exactly what the year ahead will bring. Which is why so many of us like to plan and analyze and look to industry experts for forecasts and predictions.

This year has been much stronger for real estate sales than many of us had anticipated (or hoped for). But if there's one thing the last few years have taught me it's that nothing in real estate is "ordinary" any more.

While NAR, tells us that pending homes sales have increased for the seventh straight month (longest streak since 2001), I know that in my market, a large portion of these sales are because of first time home buyers. Folks who have watched prices come down and who are anxiously moving now to take advantage of the expiring $8000 tax credit.

There have been several bills introduced in Washington to extend or change the Home Buyer Tax Credit but really no one knows what Congress will do. There is debate back and forth amongst Economists and "experts" but there's no doubt in my mind the credit has helped to stimulate home sales in South King County, and more specifically my community of Maple Valley. On a Nationwide scale, the numbers speak for themselves.

So what will happen if the credit isn't extended? No one knows for sure

In years past I would have told my clients that at the end of October we can expect to see a Seasonal/Holiday slowdown...but this, this year I'm going to admit that I have no idea what this year's end will bring. (Other than a slew of predictions and prognostications).

Interest rates, tax credits, unemployment numbers and consumer price indexes....they are all things beyond my control which may or may not dramatically affect sales in my area.

I have no idea what lies ahead, but I do know that I'm going to keep taking it one day at a time, keeping a keen eye on market trends and law revisions, embracing new technologies and marketing strategies and always remaining grateful for the clients and friends I've met along the way and for my fellow Associates who like me, are survivors.