Nicole Weidauer

It always makes me wonder why it's called a buyers market. That would imply that buyers were buying. Right now it seems very few buyers are actually buying. We can all agree that the financial outlook for a lot of Americans is not a pretty one right now but really, what is with the reluctance?

Now is a prime time to buy and still properties sit. Sales in the Shoreline area are down 47% from last month and down 45% from this time lasy year. And sales in the North Seattle/ Green Lake/Ballard areas are down 51% from last month and down 47% from this time last year (Northwest Multiple Listing Service Stats). Despite sales being down this month in the Greater Seattle areas- Seattle remains the #5 market in the nation (http://www.forbes.com/2008/07/10/american-cities-investments-forbeslife-cx_mw_0710realestate_slide_7.html?thisSpeed=30000). Considering how poorly much of the rest of the country is doing, we should thank our lucky stars that we are here!

" Though home prices continued to fall in July, there are growing signs that - in some regions at least - the market may be stabilizing as lower prices lure some buyers off the sidelines. The widely watched Standard & Poor's/Case-Shiller national home price index fell by a record 15.4 percent during the second quarter compared to the same period a year ago. 'The data today paint a mixed picture, but it's clear it will still take some time to work through the downturn in housing,' White House spokesman Tony Fratto said. 'Once housing prices stabilize that will signal a return to a housing industry that can contribute to economic growth.' 'If you look at the year-over-year numbers they are still going down but not accelerating to the downside quite as much as they had been in a number of cities,' said David Blitzer, chairman of the index committee at the S&P's. 'So we are seeing hints of bottoms.' 'We are not out of this,' said Ken Goldstein, an economist at the Conference Board. 'We still have months to go before the economy and the housing market will be improving. That's not going to happen until 2009, maybe not until the summer of 2009.' " (http://www.msnbc.msn.com/id/26408255)

Now I know why the reluctance- buyers are waiting for better deals. That makes perfectly logical sense. Only problem is that when are you going to know when prices are going to bottom out and start going up? The market WILL shift back up again, but that will happen 2 months before you decided to buy. Prices will rise and the good deals will be a thing of the past.

Real estate economist Mark Dotzour said he isn't surprised that more people aren't jumping in. Everyone is reluctant to buy in a declining market. "Once buyers start to feel confident that prices in a given community have stabilized, they'll start buying again." (http://money.cnn.com/2008/08/20/real_estate/subprime_homes_lead_downward_charge/index.htm?postversion=2008082609) The point to remember is that once those prices due stabilize and start to go up and more of the inventory is bought up then demand for housing will also go up, driving the prices up. The law of supply and demand is a very interesting thing and it is something to see it at work.

For those of you who are in a position to purchase real estate you are in the best position to build great wealth. What do they say about stocks? Buy low, sell high. The same goes for real estate and right now is the time to do just that! Stop with the reluctance and help jump-start this housing economy.

There are many contributing factors to the housing mess we are in today. One in particular is the homeowners who purchased homes, taking out loans that they honestly just couldn't afford. Fast forward to today and these same people are trying to stay afloat and avoid foreclosure.

During the recent housing boom, home prices were prime and home loans were given to anyone who could fog a mirror. Home-shoppers were lulled by good times, they borrowed - sometimes overextending themselves- against the roofs over their heads. We are in a pickle now, with the national foreclosure rate at 18.3%, up from 7% from this time last year(http://money.cnn.com/2008/08/20/real_estate/subprime_homes_lead_downward_charge/index.htm?postversion=2008082609)

The President has implemented some plans to bail out many of the homeowners that are in tough loans putting them at risk for foreclosure. Administration officials say they still oppose any taxpayer bailout for either people who borrowed more than they could afford or banks that made foolish loans during the height of the speculative bubble in housing.

As a real estate consultant, of course I want to help people achieve the American dream and help them buy a home. But... if it means getting them into a risky loan and putting their financial future at stake, I say it pays to wait.

"It's a buyers market and in the Seattle area, we now have about a six-month inventory of new homes available for sale. This means is if you buy a home now and plan to stay in it for several years, that new home will increase in value and be a good investment. Mortgage rates are still at historically low levels and the employment outlook and overall strength of the Seattle area is very strong." (http://righttimetobuy.org/current-market-trends.htm) Now most definitely is a great time to buy real estate- but only if one is ready for home-ownership. "Have realistic expectations- Be honest with yourself about what type of home you need. If it's going to financially stretch you to make the payments for a large house with a big yard you don't want to maintain, you should think twice before buying. Be realistic with your expectations. There aren't any waterfront mansions for under $200,000." (http://righttimetobuy.org/how-to-buy.htm)

As a true Dave Ramsey follower and just having a little common sense, I have adopted the idea of having a budget and living on less than you make. That is the only way to really have a grip on your finances and get out of debt.

Many have the dream of home-ownership and how wonderful it really is, but only when you are ready for it. "Renting should be a time of wisely having patience until you reach the point where you can buy property. It shouldn't be a way of life, but it's kind of like paying a patience tax until you can save up for a big down payment." (http://www.daveramsey.com/tdrs/index.cfm/Renting) It is always better to be realistic about your housing and financial situation or your great American dream will quickly become a nightmare!

Anyone thinking about the idea of homeownership should get hooked up with a trusted financial advisor and/or loan officer with the heart of a teacher, to discuss your financial future and how to best prepare you for the financial side of homeownership.

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Have any real estate questions?, call me at (206) 661-7256

Have any mortgage/ financial questions?, call Patrick Flynn at (206) 999-7284

If you've been sitting on the fence wondering if now is a great time to buy, make sure you read ALL of this! You'll thank us later.

On July 30th, President Bush signed the "Housing and Economic Recovery Act of 2008," an incredibly life-altering bill that ensures great benefits to anyone new to purchasing real estate. What should all potential buyers know about the legislation?

For starters:

1) If a buyer qualifies for a Federal Housing Authority (FHA) loan, they're going to have the ability to purchase a home without any "risk-based pricing," which means that even if your credit isn't in the best shape, you'll qualify for the same deal as anyone else until September 2009. Even though FHA loans now require a 3.5% downpayment, the money a buyer could potentially save with this plan is reason enough to save aggresively for a downpayment.

2) According to the new bill, all new home buyers will be given a $7,500 tax credit, which will be repaid over the course of the next 15 years. In effect, this is an interest-free loan! This will be available for less than a year, expiring on June 30th, 2009.

3) The amount of inventory on the market continues to remain high, which equals more negotiating power for buyers. The Egerer & Weidauer team is committed to getting you the deal you deserve, so ask us what kinds of ways we can save you money!

Don't take it from me, the Washington State Director of the Department of Institutions just put out a statement with many more reasons why now is prime time to buy real estate.

http://dfi.wa.gov/consumers/news/2008/jarvis_home_oped.htm

And if that doesn't convince you then surely the House Key State Bond loan program will.

The House Key State Bond program offers below-market interest rate loans to help low- to moderate income first-time home buyers purchase their first home. Borrowers must meet the program income and acquisition cost limits and must attend a free Commission sponsored homebuyer education seminar. The following loan types can be used for this loan program: Federal Housing Administration (FHA), Conventional (Fannie Mae or Freddie Mac), Rural Housing Services (RHS), and Veteran's Administartion (VA). http://www.wshfc.org/buyers/faq.htm

*A first-time home buyer is defined as someone who has not owned and occupied a primary residence at any time in the past three years.

The House Key State Bond loan program is very easy to get started. It's as easy as...

1. Attend a free Homebuyer Education seminar.

2. Contact a Commission-trained loan officer to see what you will qualify for.

3. Once you know how much you qualify for, it is time to look for a home.

There are many seminars scheduled at my office, the North Seattle Keller Williams office, in the coming weeks. See the schedule below or contact us and we can help schedule your reservation for the next seminar in your area.

With these three points in mind, now is an ideal time to buy. Contact us today to discuss financing options or to see what's in your area and how we can get you into the home of your dreams.

Homebuyer Seminar Schedule:

Keller Williams North Seattle, 12535 15th Avenue NE, Seattle, WA 98125

8/23/2008 Saturday 9am to 2:30pm 8/26/2008 Tuesday 6pm to 9pm 9/6/2008 Saturday 10am to 3:30pm 9/7/2008 Sunday 10am to 3:30pm

Due to actions taken by the Seattle City Council in March of 2006, more and more projects and buildings are being erected in the Emerald City. The cap on building heights was removed and Seattle's skyline will be dramatically reshaped under the new changes.

A few of the projects underway include Sixth & Wall, 1 Hotel and Residences, Olive 8, and the Four Seasons Hotel and Residences. The Four Seasons is completed and other projects listed are expected for completion in 2009 and 2010.

Sixth & Wall is a 32 floor, 320 unit building that "..is definitely geared for younger buyers." says architect Blaine Weber, referring to the prices starting in the high $200K's. The structure is being squeezed a 10,665sq ft lot in the Denny Triangle. It will be a thin building resulting in minimal ruined views of the city.

1 Hotel and Residencesoffers everything to its residence and guests. The building will include a luxury gym, grocery and restaurant services, 176 hotel rooms, and 21+ condos and penthouses. The 1 Hotel is essentially a 240 foot curtain- blocking much of the remaining view of the bay.

Olive 8 will have fourteen floors of hotel rooms and 25 condos & penthouses. Nearby workers will have to say goodbye to their views of the Space Needle as the 39 floor building could stand in the way a bit.

Four Seasons Hotel and Residences has one of the best views of the Olympics and Elliott Bay and offers 10 floors of hotel rooms and 11 floors of private residences. The residence and guests will love their views as well as the ballroom, restaurants, health club and pool BUT patrons of the Seattle Art Museum will be less than excited to see the Four Seasons where the once spectacular view of Elliott Bay used to be.

We are already seeing the cranes being erected and construction underway in many locales of our great city. Last month I attending a rooftop tour of Seattle and was informed of the more than 27 new condos, apartment, & office buildings in the works. The city hopes to concentrate new housing and jobs downtown.

Full Moon Thai Restaurant * 1441 NW Richmond Beach Road * (206) 542-5777

Local restaurant owner, Bounmmy Inthoulay, of Full Moon Thai Restaurant in Richmond Beach, will celebrate his 5 year anniversary of the family business this October.

Full Moon provides a selection of tempting, delicious and high quality products, served up with the best customer service. Waiter and Waitress, Seng and Pep, make you feel right at home when you walk through their doors. The welcoming atmosphere and truly tasty dishes are sure to bring you back for more.

Richmond Beach is the backdrop of 'Full Moon' and her residents have become well acquainted with the restaurant. "A lot of our customers are local and have become regulars." Pep Inthoulay explained.

The Inthoulay Family was hard at work last month renovating and repainting the building. The friendly, family owned restaurant is up and running again and awaiting your visit.