Tuesday, May 31, 2011

SUMMER!....Come out, Come Out Wherever You Are!

Ok, this is getting ridiculous....Rain, 50 degrees.....do we live in Seattle? Or maybe Tacoma....Geez. The weather has been ripe for one thing and one thing only....depression.

Well, I have just the cure: 4.25% interest rates on owner occupied homes! HOLY COW! I can remember back in 2002/3 when at 6% the historically low rates were making the headlines....Current rates though trump them all. Yes, they may be artificial. Regardless, there seems to be no better time to snake up that home you have been driving by daily, or put the hammer down on your timeline to purchase.

I do not claim to have a crystal ball regarding home values or even where the market going, but I do know that people will always need housing, Anacortes is and will continue to be a superb location, and with the reduction in pricing over the last few years.....the time seems pretty darn good. Interest rates are the icing on the cake.

With the potentially ominous 'sky is falling' news you hear regarding the international and national economic position of the US, I can totally see why some are skeptical and keeping their cash close by.......but there are good deals to be had and either you can make your play while we know pricing and rates are good, or you can wait and possibly miss the train.

So, my recommendation? Get outside, go on walks around the neighborhood, listen to your neighbors chat, keep your ears and eyes open for the house that truly suits your fashion. Then...run the numbers if there happens to be a price on it. Check the county assessor's site at www.skagitcounty.net for tax values.....My website, www.anacorteshomebuyer.com has a mortgage calculator attached to each listing so you can refine your down payment and rates. Or don't hesitate to call some local lenders to get some numbers for more insight.

There is no doubt the train is moving.....slowly right now and it may even be on a snails pace in the wrong direction. But at some point, and my guess is in the next 1-2 years....it will finally latch up with its other cars......then the market horsepower will slowly start to grind its way to a bigger and better position. Its currently the 'Big Engine that Could'.....and soon it will reach the top of this laborious hill......and then, standby to standby!

Cheers and Happy Belated Memorial Day.

Friday, February 18, 2011

Finally, back to blooging!

I apologize! No real excuse for not touching base seeing I am not lacking opinions on the current events. Sometimes we get caught up in other things.

Regardless, here is what is new, what is happening and what may be forthcoming:

First, real estate. Activity is there, pricing is somewhat stable currently, but due the the apparent negative economic national outlook, along with the issues in the filtering states such as California and Arizona, I feel that pricing will remain somewhat stagnate. Additionally, depending on just how many 'asset problems' the mortgage banks have and how many more foreclosures occur........it could continue to sag and decrease even another 5-10%. Bottomline, no one knows and it will only be in retrospect that we see who was right or wrong.

Either way, if you are wanting to make a purchase.....make it a long term purchase of 5 years or more and I feel it will be as good as, if not better than renting. If your timeline is less, you may want to hold off.

Second, new beginnings: Anthony's has arrived. A very good, seafood based restaurant that recently opened up at the Cap Sante Marina. The food is tasty, the atmosphere extremely desireable and it has created quite a few additional jobs here in town. I recommend it highly.

Lastly, 2011. I love Anacortes for its small seaside character which includes all its festivals and events. The Waterfront festival, Arts and Crafts festival, Oyster Run and now which will be the SECOND ANNUAL Oktoberfest.....! You gotta get downtown for these events .... Of course, the Fourth of July parade is always good along with its light show off the Cap Sante for fireworks and list goes on.

Things are tight with many this year as they have been for quite some time. If you can though, get downtown and spend some cash. Enjoy as many of the local events as you can to help out the smaller businesses and keep our town great.

Happy 2011!

Troy

Wednesday, January 20, 2010

Kicking off 2010!

"How is the real estate market?".......This is the standard question everyone wants to know and rarely, if at all, will it have one answer.

How is the market for me, personally, as an agent?; ....for those trying to sell?; or for those trying to buy?

Well, here are my answers. As an agent, 2009 was a tough year. Despite this, when compared to my fellow agents regarding overall production....I feel I did well. Most of my listings sold for the year, and the percentage ratio of original listing recommended price and actual sales price were within 10% or so. Those sellers and buyers with whom I worked generally left the transaction feeling good in their decisions. And the last quarter of '09 produced a nice spark in sales to round out a slow paced market. So again, for me, I was quite pleased given the market terrain. Many agents did considerably better and many did worse.

How about for Sellers? Well, most sellers who bought in the '04-07 range seemingly paid too much for their property. That is, those who are now wanting to sell the property and move on. For some, they wish the price they paid for their house or land had been less, but ultimately they still were able to purchase the home of their dreams, or one they truly enjoy and had the mortgage industry not been so receptive to all types of buyers.....many would not have been able to get into a house at all. So many are happy.

Of course, those previous buyers who are wanting to now sell their homes, have been the most hurt. Many remain on the market for several months and some even over a year due to sellers either not wanting to reduce the price into the current selling values or they are unable to do so due to the current debt on the home.

This can be and has been a problem for many in the Anacortes and outlying areas, as well as nationally, and my only suggestion is that if you don't have to attempt to sell, hang in there and expect longterm gains. If you have a steady job and can afford further investment it may be the time to counterbalance the original 'not so good' purchase with one in the near future that is better priced and with a better loan rate. This leads into the current market for buyers.

Most would agree that the time now is to buy and negotiate. It is the time to be patient with your purchase and truly take advantage of the slower pace and do your homework. By this I mean, tour as many homes as you can and if you determine a certain value for a property you like, stick to your guns, so to speak, on the offering price. More than likely, there are not that many others interested in the exact home and you can afford to allow the sellers to determine if it is worth letting you go. So, for buyers, the time is now.

Many still ask when I recommend further investment, "Will the prices continue to fall?" No one really knows. Speculation has it that there may very well be further drop but possibly just stagnation. It seems as though, statistically, that inventory is slowly dropping, but only time will tell if the trend continues. Regardless, loan rates may remain artificially low for some time, but will invariably have to rise....which means even if you wait for the market to truly bottom...which no one can guess....the rates will more than likely rise to where it counterbalances the potential gain in waiting for further price reductions.

So, the answer to 'How is the real estate market?' is not an easy or quick one. It varies depending on your perspective and what position you are currenlty in. As with many things, the market it undoubtedly cyclical in nature and will ebb and flow like any sine wave. We here at Windermere undoubtedly have an optimistic outlook on overall transactions for the year 2010. Whether this means that prices will increase, decrease or stagnate remains to be seen. Regardless, we hope that we can help you make good decisions regardless of what position you are in. Cheers and Happy 2010!

Troy

Tuesday, October 20, 2009

Dovetailing The Summer Spike

As the title suggests, this is merely a follow-on to the previous post describing the tweak in property interest during the third quarter of this year. Now into the fourth, there have been some truly sweet deals on which my savy Buyers have pounced. Here are some of the details:

1. 2.5 Acre estate-like property just south of Coupeville on Whidbey. Almost 3,000 sqft of finished living space, featuring radiant floor heat, stainless appliances, slab granite, master on the main, and 4 bedrooms. Detached 2-car garage with bonus room on top.....a superb piece for under 480k....a great purchase!

2. A current sale of a dilapidated fixer home...2 bed/ 1 bath in need of just about everything, yet the lot size is 12,000 sqft! A detached two car garage and well on the property inside the Anacortes town limits! $125,000....craziness! Instant equity with this one especially seeing that my buyer is a true fix-it samurai.

3. Lastly, a purchase I made myself.....1400 sqft 3 bedroom/ 1 bath bungalow in town on an 8400 sqft lot with potential view if future dormers are installed....owner financing with a 5% note amortized for 30 years, with note due in five years.....in other words, just pay down for five years, then get a mortgage to pay off the Seller in full. Price: $158,000!!! I truly stumbled upon it.

So what is the point? If you are thinking of purchasing even in the least, call up your agent and start the viewings.....Even if you are thinking of not making a move for a few months, this will hone your ability to identify true value versus price. Online photos are good, but can be deceiving and you gain so much from merely walking through a place. After viewing a handful, you will then know exactly what you are looking for so that when you happen to walk in that front door, the home speaks to you and you know within 30 seconds that it is the one for you. Then you can move quickly since you are already astute regarding market inventory and pricing.

Please don't hesitate to visit www.AnacortesHomeBuyer.com for all MLS listings with all brokerages. Call or write with questions and don't be shy.....allowing me to get you into homes for showings is the fun part of the biz.

Good luck.

Thursday, September 17, 2009

The Summer Spike - How Long Will It Last?

After a dismal real estate winter and very lukewarm summer start......August and September are proving to be quite worthwhile regarding home and land sales in Anacortes and surrounding communities.

Instead of 'working my sphere', which for me would be flying more at the base, I have set aside my instructor hat for some good 'ole new homebuyer education, home viewings and purchases.......With the depreciation tweaks in home values, new tax credits, and low rates.....home buyers have hit the streets and new first time buyers are leading the pack.

Prior to August, typical sales had centered in the below 300k range and vacant land sales were practically non-existent. But the flatline of summer was shocked back into a slow but steady pulse as my phone starting ringing for appointments and website contacts came in from the cyberspace abyss.

With three homes under contract for the month of September alone....I feel this trend will continue at least to Thanksgiving. Buyers have been watching, waiting and viewing the net for the homes of their liking to slowly churn downward in price....then, having been patient, they pounce on them with quickness and decisiveness.....leading to quick negotiations and fast closings. Lenders have been expeditious and accurate and so the real estate world on our quaint northwestern island has come to life.

My question though is for how long? I firmly believe that people will always buy and sell. If rates hike up, prices may come down.....the market always has an answer so that the cycle continues.

With this however, here is my concern....2005/2006 still had quite a few of the option arms being sold to buyers which allowed many to get into homes they otherwise would not have been able to afford. The downfall of this is that many were 5/1 adjustable rates and that five year mark starts coming due now!! Assuming rates remain low.....no big deal. Some of the loans had percent hikes regardless of the prime rates. Once it comes due, there is an automatic x percent increase per month in the loan amount....payable each month. This coupled with a future major spike in rates could leave us all holding the bag....or should I say....mailing in our keys.

Now most of us are upstanding individuals who pay our bills on time and do not wish to lose our homes. However, if your home value is now at, below or extremely below what you paid on the home....what is your incentive to continue to pay an interest- only monthly payment that doesn't pay down the home and, in turn, breaks your financial back. You rid your savings to hang on for a year or two only to then ..... mail in the keys.

All in all, we do not know what will happen. If rates stay low....the economy turns around....jobs become more available, future rate increases might be easily dealt with. If they do spike and banks, in turn, can balance out the increase with other terms.....things may be dealt with. Regardless, something will have to give, and as I stated previously.....the market tends to correct itself......a tit for tat so to speak. At least, that is both my belief and my hope.

So, for now, my recommendation is to try to refinance if able with as little money down as you can. Hound your mortgage lender or bank, religiously. If you can afford some money out of pocket, then keeping mortgage insurance out of the monthly payment will be worthwhile. If not, at least by consolidating two mortgages into one, or getting rid of the arms for a set payment even with PMI....you will be better able to mantain a solid consistent budget without the burden of worrying where we and this real estate market and economy are truly going.

That's a wrap. Good Luck.

Tuesday, June 2, 2009

Summer '09

Well, at least weather-wise, it appears summer is upon us. Only a few more weeks of school is left, Memorial Day has come and gone and now people are hopefully gearing up for whatever types of vacations they can afford.

Monetarily, this year's events have squeezed many families and those who live in wonderful Anacortes are no different. I know my business with Windermere has taken a serious hit, as well as many other businesses in town. Extra savings is now used to the pay the bills and most of the fiscal goals those of us set for ourselves will have to be met next year.

With that, I merely wanted write to say that ultimately, many of us are in it together. Car dealers, Real Estate brokers, Restauranteers, Small novelty shop owners, the list goes on.....
There are many out there that have continued to live within their means and good for them. They have managed to be tenacious in the savings and also thrifty in their spending, especially when times are good since that is where you can truly save.

For those who are merely hanging on to whatever assets they have month to month, please stay focused and motivated. For those who have or who are on the brink of job loss, try your best to get on the job search bandwagon. Try to broader your ideas of the types of jobs you truly would like to do and turn the negative into a positive in the job search of something enjoyable.

Regarding home sales, since that is my primary field, I am not really sure what is going to happen this year. All in all, we had very few home sales in the first quarter with a decent spike in sales in the second. Many of the contracts have been in the under 350k range, yet some homes in the above 500k range have sold also.

If you have a home you are wanting to sell or currently have it listed, price is everything. No ifs, ands or buts........people want security in the fact that whatever home they buy now, they can live in for a few years and at least not lose money. They want what they consider a decent deal and I do not blame them. So, remember this when pricing your home.

You want the most money for your house for sure, all of us do. But, price too high and ultimately the home becomes stale, and you end up selling alot later for a lot less. Or for those who plan to purchase elsewhere, if you delay selling until the market is back on the rise.......the rise is a benefit when selling, but a hinderance when you get back into the market by buying during the rise also.

Lastly, there are many decent opportunities out there with regards to real estate and other entities as well. Cars prices have come down dramatically. Boat prices also. My overall thoughts are the despite the economic squeeze, try to work hard, be as thrifty as possible, but do not close your eyes to good deals that may come your way.

Good luck.
Troy

Thursday, January 22, 2009

Its A Good Deal, 2009 #1

I am always looking for value in things; real estate, clothes, cars and especially food and beer. Although I do have a bias for the Brown Lantern, there are many establishments in town that want to show off their stuff by providing their customers with tasty meals at affordable prices. Here is my first Good Deal Tip of 2009: El Jinete's Taco's al a carte!

Now, there isn't anything special in itself about a hard or soft shell ground beef taco. But, add a Tuesday lunch or evening to it, throw on some cheese, lettuce and tomatoes (for those who like them) and now you have a meal that is tasty, filling and truly cost effective.

Tuesday's are Tecate Tuesdays at El Jinete and for $2.50 per beer and $1.95 per taco.....you can have some chips and salsa, two taco's, and a Tecate for little over $6 without tax. Monetarily, you can even beat the five dollar footlong if you forget the brew.


So brush off the hamburger desires one night, put away that P, B and J.....And get on down the El Jinete. Times are not easy and they may even get a little worse in the months to come, but let us all endeavor to capitalize on deals such as these by promoting them and taking advantage of them. We all want our restaurants to succeed and if this is what you can afford, get down there and give them your appetite and your money. You will not be sorry.

More deals to come so stay tuned.

Cheers
T