Snoqualmie Pass Real Estate, Mortgage, and the Economy – Real Estate Frenzy

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com
Homebuyers Face Bidding Wars on Scarcer-Than-Ever U.S. Listings
  • Real estate frenzy spreads to ‘unlikely’ cities in heartland
  • Rising mortgage rates and prices add sense of urgency
llustrat
The winning bidder of a Grand Rapids, Michigan, house has been offered almost $20,000 to hand his purchase contract to another buyer. An agent in Nashville, Tennessee, got a property for his client by cold-calling local homeowners. Near Columbus, Ohio, it took a teacher five tries to secure a deal.
It’s the 2017 U.S. spring home-selling season, and listings are scarcer than they’ve ever been. Bidding wars common in perennially hot markets like the San Francisco Bay area, Denver and Boston are now also prevalent in the once slow-and-steady heartland, sending prices higher and sparking desperation among buyers across the country.
“Homebuyers are going to find this spring that, in a lot of markets, the inventory of homes priced and sized at price levels they were hoping for will be very limited,” said Thomas Lawler, a former Fannie Mae economist who’s now a housing consultant in Leesburg, Virginia. “Unlikely places are getting significantly tighter.”
Buyers are clamoring as an improved job market and growing confidence in the economy collide with rising mortgage rates -- yet there’s little new inventory for them to purchase. Housing starts remain well below levels before the last recession, and builders have focused on higher-end properties out of reach for many people. Homeowners have become even more reluctant to sell because, after all, where are they going to move?
The three months through January had the fewest homes on the market on record, according to an analysis by Trulia. Prices jumped 6.9 percent in January from a year earlier, the biggest increase for any month since May 2014, data from CoreLogic Inc. show. And homes sold faster in the first two months of 2017 -- spending an average 58 days on the market -- than at the start of any year since at least 2010, according to brokerage Redfin.
Homes are moving fastest in DenverSeattle and Oakland, California -- areas where heated competition have become status quo in recent years because of soaring job growth, particularly in the technology industry. But fourth on Redfin’s list is Grand Rapids, Michigan’s second-largest city, in a reflection of strengthening employment across even the slower-growing center of the country. Buyers are also struggling in cities such as Boise, Idaho; Madison, Wisconsin; and Omaha, Nebraska.

Cash Offer

Grand Rapids -- a diverse economy underpinned by health-care, technology and manufacturing companies, with a 3 percent unemployment rate -- has seen a 27 percent drop in homes for sale in the past year. One listing recently attracted 40 bids.
Competition is so extreme that real estate agent Tanya Craig, working with an out-of-town couple six months into a search for a home near their grandchildren, had to get creative. She called an agent representing a buyer who just signed a contract for a $350,000 house and offered about $18,000 in cash if her clients could purchase it instead. Craig, an associate broker with the Katie K team at Keller Williams, is waiting to hear back.
“People need to get their houses on the market, but they’re gun-shy,” Craig said. “Unless they know where they want to go, everyone is hesitant.”
While sellers are losing their nerve, buyer confidence has climbed since the November election, hitting a new high in February, according to Fannie Mae, which began its sentiment index in 2011. The unemployment rate is at 4.7 percent and business confidence has soared amid President Donald Trump’s vows to lower taxes, increase infrastructure spending and trim regulations. Rents are also at a record, making ownership more attractive.

Rising Costs

Would-be purchasers have a reason to rush as rising borrowing costs -- and prices -- close off opportunities. The 30-year fixed mortgage rate has jumped by more than half a percentage point since the election. The Federal Reserve this week increased its benchmark interest rate by a quarter point and signaled it will do so two more times this year, boosting borrowing costs from low levels that have been in place for almost a decade.
The average 30-year rate probably will climb to 4.7 percent by the end of 2017, from 4.3 percent this week, and could reach 5.5 percent next year, said Lawrence Yun, chief economist of the National Association of Realtors.
Higher mortgage costs could eventually shrink the pool of buyers able to qualify, but it may also discourage homeowners from selling because they might have to take out a more expensive loan to purchase something else.
“In today’s market, many buyers think the trough in rates is over,” said Sam Khater, deputy chief economist at CoreLogic. “If you don’t get in now, it’s just going to be worse later. Rates will be higher, prices will be higher and maybe inventory selection will be lower.”
Older people who may typically move are choosing to stay where they are, Chris Herbert, managing director for Harvard University’s Joint Center for Housing Studies, said in an interview Friday.
“One factor is that you have the baby boom generation on its way to being 65-plus,” Herbert said. “They’re moving less so you have fewer homes on the market. That could be part of the glue keeping the market stuck.”

Price Gains

There are are pockets of the country, such as Miami and Manhattan, where inventory has climbed amid new construction and less interest from foreigners, and some regions have yet to experience the job gains that fuel housing demand. Yet other cities that haven’t had strong price gains in recent years are now seeing a big jump.
In Philadelphia, prices for single-family houses jumped 11 percent in the fourth quarter from a year earlier, compared with a gain of less than 5 percent at the end of 2015, according to Kevin Gillen, a senior research fellow at Drexel University.
Buyers are making full-price offers before properties have even been listed, said Mike McCann, associate broker with Berkshire Hathaway HomeServices Fox & Roach.
“We might end up with fewer transactions in 2017 because we don’t have inventory," McCann said. “Thirty-five percent of my properties are selling within the first week or two of hitting the market.”

Calling Owners

Rich Ramsey, an agent with the Helton Group at Keller Williams in Nashville, has been knocking on doors and working the phones. When he heard from a family frustrated after losing out on two homes they liked in a townhouse development in the city’s Midtown neighborhood, Ramsey started calling owners in the area.
“I found someone who had considered selling,” Ramsey said. “I asked if they had a price in mind and we started negotiating.”
The family purchased the three-bedroom property in January for a price in the low $400,000s, Ramsey said.  For some buyers, patience and persistence can pay off. Jessica Streit, a 42-year-old teacher and mother of two, has been searching for months for a home in Sunbury, Ohio, north of Columbus. She lost three bidding wars and even went into contract on a home, only to back out after an inspection revealed some expensive problems. Last week, her fortunes changed -- she signed a $136,000 deal for a two-bedroom condominium with a finished basement.
Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Snoqualmie Pass Real Estate, Mortgage, and the Economy – Real Estate Frenzy

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com
Homebuyers Face Bidding Wars on Scarcer-Than-Ever U.S. Listings
  • Real estate frenzy spreads to ‘unlikely’ cities in heartland
  • Rising mortgage rates and prices add sense of urgency
llustrat
The winning bidder of a Grand Rapids, Michigan, house has been offered almost $20,000 to hand his purchase contract to another buyer. An agent in Nashville, Tennessee, got a property for his client by cold-calling local homeowners. Near Columbus, Ohio, it took a teacher five tries to secure a deal.
It’s the 2017 U.S. spring home-selling season, and listings are scarcer than they’ve ever been. Bidding wars common in perennially hot markets like the San Francisco Bay area, Denver and Boston are now also prevalent in the once slow-and-steady heartland, sending prices higher and sparking desperation among buyers across the country.
“Homebuyers are going to find this spring that, in a lot of markets, the inventory of homes priced and sized at price levels they were hoping for will be very limited,” said Thomas Lawler, a former Fannie Mae economist who’s now a housing consultant in Leesburg, Virginia. “Unlikely places are getting significantly tighter.”
Buyers are clamoring as an improved job market and growing confidence in the economy collide with rising mortgage rates -- yet there’s little new inventory for them to purchase. Housing starts remain well below levels before the last recession, and builders have focused on higher-end properties out of reach for many people. Homeowners have become even more reluctant to sell because, after all, where are they going to move?
The three months through January had the fewest homes on the market on record, according to an analysis by Trulia. Prices jumped 6.9 percent in January from a year earlier, the biggest increase for any month since May 2014, data from CoreLogic Inc. show. And homes sold faster in the first two months of 2017 -- spending an average 58 days on the market -- than at the start of any year since at least 2010, according to brokerage Redfin.
Homes are moving fastest in DenverSeattle and Oakland, California -- areas where heated competition have become status quo in recent years because of soaring job growth, particularly in the technology industry. But fourth on Redfin’s list is Grand Rapids, Michigan’s second-largest city, in a reflection of strengthening employment across even the slower-growing center of the country. Buyers are also struggling in cities such as Boise, Idaho; Madison, Wisconsin; and Omaha, Nebraska.

Cash Offer

Grand Rapids -- a diverse economy underpinned by health-care, technology and manufacturing companies, with a 3 percent unemployment rate -- has seen a 27 percent drop in homes for sale in the past year. One listing recently attracted 40 bids.
Competition is so extreme that real estate agent Tanya Craig, working with an out-of-town couple six months into a search for a home near their grandchildren, had to get creative. She called an agent representing a buyer who just signed a contract for a $350,000 house and offered about $18,000 in cash if her clients could purchase it instead. Craig, an associate broker with the Katie K team at Keller Williams, is waiting to hear back.
“People need to get their houses on the market, but they’re gun-shy,” Craig said. “Unless they know where they want to go, everyone is hesitant.”
While sellers are losing their nerve, buyer confidence has climbed since the November election, hitting a new high in February, according to Fannie Mae, which began its sentiment index in 2011. The unemployment rate is at 4.7 percent and business confidence has soared amid President Donald Trump’s vows to lower taxes, increase infrastructure spending and trim regulations. Rents are also at a record, making ownership more attractive.

Rising Costs

Would-be purchasers have a reason to rush as rising borrowing costs -- and prices -- close off opportunities. The 30-year fixed mortgage rate has jumped by more than half a percentage point since the election. The Federal Reserve this week increased its benchmark interest rate by a quarter point and signaled it will do so two more times this year, boosting borrowing costs from low levels that have been in place for almost a decade.
The average 30-year rate probably will climb to 4.7 percent by the end of 2017, from 4.3 percent this week, and could reach 5.5 percent next year, said Lawrence Yun, chief economist of the National Association of Realtors.
Higher mortgage costs could eventually shrink the pool of buyers able to qualify, but it may also discourage homeowners from selling because they might have to take out a more expensive loan to purchase something else.
“In today’s market, many buyers think the trough in rates is over,” said Sam Khater, deputy chief economist at CoreLogic. “If you don’t get in now, it’s just going to be worse later. Rates will be higher, prices will be higher and maybe inventory selection will be lower.”
Older people who may typically move are choosing to stay where they are, Chris Herbert, managing director for Harvard University’s Joint Center for Housing Studies, said in an interview Friday.
“One factor is that you have the baby boom generation on its way to being 65-plus,” Herbert said. “They’re moving less so you have fewer homes on the market. That could be part of the glue keeping the market stuck.”

Price Gains

There are are pockets of the country, such as Miami and Manhattan, where inventory has climbed amid new construction and less interest from foreigners, and some regions have yet to experience the job gains that fuel housing demand. Yet other cities that haven’t had strong price gains in recent years are now seeing a big jump.
In Philadelphia, prices for single-family houses jumped 11 percent in the fourth quarter from a year earlier, compared with a gain of less than 5 percent at the end of 2015, according to Kevin Gillen, a senior research fellow at Drexel University.
Buyers are making full-price offers before properties have even been listed, said Mike McCann, associate broker with Berkshire Hathaway HomeServices Fox & Roach.
“We might end up with fewer transactions in 2017 because we don’t have inventory," McCann said. “Thirty-five percent of my properties are selling within the first week or two of hitting the market.”

Calling Owners

Rich Ramsey, an agent with the Helton Group at Keller Williams in Nashville, has been knocking on doors and working the phones. When he heard from a family frustrated after losing out on two homes they liked in a townhouse development in the city’s Midtown neighborhood, Ramsey started calling owners in the area.
“I found someone who had considered selling,” Ramsey said. “I asked if they had a price in mind and we started negotiating.”
The family purchased the three-bedroom property in January for a price in the low $400,000s, Ramsey said.  For some buyers, patience and persistence can pay off. Jessica Streit, a 42-year-old teacher and mother of two, has been searching for months for a home in Sunbury, Ohio, north of Columbus. She lost three bidding wars and even went into contract on a home, only to back out after an inspection revealed some expensive problems. Last week, her fortunes changed -- she signed a $136,000 deal for a two-bedroom condominium with a finished basement.
Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Snoqualmie Pass Real Estate, Mortgage, and the Economy – Rising Home Equity

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com



Rising home equity lifts many underwater homeowners


The numbers of homeowners that owe more on their homes than they are worth are falling as home equity continues to rise in many real estate markets.
Research firm CoreLogic estimates that, in 2016, 1 million fewer homes had what’s known as negative equity, also called being underwater and upside down. As of last year’s fourth quarter, there were 3.17 million residential properties where owners owed more than the homes were worth -- a 25 percent decrease from 4.23 million during the same period a year earlier. 
Negative equity peaked in 2009 at 26 percent of all properties. The figure now stands at 6.2 percent.  Homeowners in this predicament are often in low-income neighborhoods.

underwater-line.png
 CBS MONEYWATCH/IRINA IVANOVA

In the 10 most populous U.S. metropolitan areas, the San Francisco region had the highest percentage of properties where homeowners owe less than they are worth. (99.4 percent), followed by Houston (98.5 percent), Denver (98.5 percent), Los Angeles (97 percent) and Boston (95.3 percent). 
The Miami area, whose real estate market was hit hard during the recent recession, had the highest percentage of properties that were upside down, followed by Las Vegas (15.5 percent), Chicago (12.6 percent),  Washington, D.C. (8.4 percent) and New York City (5.1 percent).

Tighter credit standards will make it more difficult for borrowers to turn their home equity into quick cash as they did during the financial crisis.  According to the Federal Reserve Bank of New York, balances on home equity lines of credit were $1 billion as of the end of last year, little changed from 2015. Debt payments as a percentage of total disposable income are at a 35-year low, while consumer confidence is at a 15-year high.
Homeowners saw their net equity rise 11.7 percent,  or $78 billion, to $7.5 trillion, in 2016, CoreLogic indicated. On average, home equity rose on a year-over-year basis by $13,700,  fueled by home price increases. Helping this trend: One-fourth of all outstanding mortgages have terms of 20 years or less, which obviously amortize quicker than standard 30-year home loans.
Gains in home equity were strongest in high-end markets where prices posted double-digit increases, such as Washington and Oregon. These two states saw home equity gains of $31,000 and $27,000 respectively, double the overall U.S. rate, noted CoreLogic’s chief executive, Frank Martell.

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Snoqualmie Pass Real Estate, Mortgage, and the Economy – Rising Home Equity

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com



Rising home equity lifts many underwater homeowners


The numbers of homeowners that owe more on their homes than they are worth are falling as home equity continues to rise in many real estate markets.
Research firm CoreLogic estimates that, in 2016, 1 million fewer homes had what’s known as negative equity, also called being underwater and upside down. As of last year’s fourth quarter, there were 3.17 million residential properties where owners owed more than the homes were worth -- a 25 percent decrease from 4.23 million during the same period a year earlier. 
Negative equity peaked in 2009 at 26 percent of all properties. The figure now stands at 6.2 percent.  Homeowners in this predicament are often in low-income neighborhoods.

underwater-line.png
 CBS MONEYWATCH/IRINA IVANOVA

In the 10 most populous U.S. metropolitan areas, the San Francisco region had the highest percentage of properties where homeowners owe less than they are worth. (99.4 percent), followed by Houston (98.5 percent), Denver (98.5 percent), Los Angeles (97 percent) and Boston (95.3 percent). 
The Miami area, whose real estate market was hit hard during the recent recession, had the highest percentage of properties that were upside down, followed by Las Vegas (15.5 percent), Chicago (12.6 percent),  Washington, D.C. (8.4 percent) and New York City (5.1 percent).

Tighter credit standards will make it more difficult for borrowers to turn their home equity into quick cash as they did during the financial crisis.  According to the Federal Reserve Bank of New York, balances on home equity lines of credit were $1 billion as of the end of last year, little changed from 2015. Debt payments as a percentage of total disposable income are at a 35-year low, while consumer confidence is at a 15-year high.
Homeowners saw their net equity rise 11.7 percent,  or $78 billion, to $7.5 trillion, in 2016, CoreLogic indicated. On average, home equity rose on a year-over-year basis by $13,700,  fueled by home price increases. Helping this trend: One-fourth of all outstanding mortgages have terms of 20 years or less, which obviously amortize quicker than standard 30-year home loans.
Gains in home equity were strongest in high-end markets where prices posted double-digit increases, such as Washington and Oregon. These two states saw home equity gains of $31,000 and $27,000 respectively, double the overall U.S. rate, noted CoreLogic’s chief executive, Frank Martell.

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Snoqualmie Pass Real Estate, Mortgage, and the Economy – Rising Home Equity

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com



Rising home equity lifts many underwater homeowners


The numbers of homeowners that owe more on their homes than they are worth are falling as home equity continues to rise in many real estate markets.
Research firm CoreLogic estimates that, in 2016, 1 million fewer homes had what’s known as negative equity, also called being underwater and upside down. As of last year’s fourth quarter, there were 3.17 million residential properties where owners owed more than the homes were worth -- a 25 percent decrease from 4.23 million during the same period a year earlier. 
Negative equity peaked in 2009 at 26 percent of all properties. The figure now stands at 6.2 percent.  Homeowners in this predicament are often in low-income neighborhoods.

underwater-line.png
 CBS MONEYWATCH/IRINA IVANOVA

In the 10 most populous U.S. metropolitan areas, the San Francisco region had the highest percentage of properties where homeowners owe less than they are worth. (99.4 percent), followed by Houston (98.5 percent), Denver (98.5 percent), Los Angeles (97 percent) and Boston (95.3 percent). 
The Miami area, whose real estate market was hit hard during the recent recession, had the highest percentage of properties that were upside down, followed by Las Vegas (15.5 percent), Chicago (12.6 percent),  Washington, D.C. (8.4 percent) and New York City (5.1 percent).

Tighter credit standards will make it more difficult for borrowers to turn their home equity into quick cash as they did during the financial crisis.  According to the Federal Reserve Bank of New York, balances on home equity lines of credit were $1 billion as of the end of last year, little changed from 2015. Debt payments as a percentage of total disposable income are at a 35-year low, while consumer confidence is at a 15-year high.
Homeowners saw their net equity rise 11.7 percent,  or $78 billion, to $7.5 trillion, in 2016, CoreLogic indicated. On average, home equity rose on a year-over-year basis by $13,700,  fueled by home price increases. Helping this trend: One-fourth of all outstanding mortgages have terms of 20 years or less, which obviously amortize quicker than standard 30-year home loans.
Gains in home equity were strongest in high-end markets where prices posted double-digit increases, such as Washington and Oregon. These two states saw home equity gains of $31,000 and $27,000 respectively, double the overall U.S. rate, noted CoreLogic’s chief executive, Frank Martell.

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Snoqualmie Pass Real Estate, Mortgage, and the Economy – Rising Home Equity

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com



Rising home equity lifts many underwater homeowners


The numbers of homeowners that owe more on their homes than they are worth are falling as home equity continues to rise in many real estate markets.
Research firm CoreLogic estimates that, in 2016, 1 million fewer homes had what’s known as negative equity, also called being underwater and upside down. As of last year’s fourth quarter, there were 3.17 million residential properties where owners owed more than the homes were worth -- a 25 percent decrease from 4.23 million during the same period a year earlier. 
Negative equity peaked in 2009 at 26 percent of all properties. The figure now stands at 6.2 percent.  Homeowners in this predicament are often in low-income neighborhoods.

underwater-line.png
 CBS MONEYWATCH/IRINA IVANOVA

In the 10 most populous U.S. metropolitan areas, the San Francisco region had the highest percentage of properties where homeowners owe less than they are worth. (99.4 percent), followed by Houston (98.5 percent), Denver (98.5 percent), Los Angeles (97 percent) and Boston (95.3 percent). 
The Miami area, whose real estate market was hit hard during the recent recession, had the highest percentage of properties that were upside down, followed by Las Vegas (15.5 percent), Chicago (12.6 percent),  Washington, D.C. (8.4 percent) and New York City (5.1 percent).

Tighter credit standards will make it more difficult for borrowers to turn their home equity into quick cash as they did during the financial crisis.  According to the Federal Reserve Bank of New York, balances on home equity lines of credit were $1 billion as of the end of last year, little changed from 2015. Debt payments as a percentage of total disposable income are at a 35-year low, while consumer confidence is at a 15-year high.
Homeowners saw their net equity rise 11.7 percent,  or $78 billion, to $7.5 trillion, in 2016, CoreLogic indicated. On average, home equity rose on a year-over-year basis by $13,700,  fueled by home price increases. Helping this trend: One-fourth of all outstanding mortgages have terms of 20 years or less, which obviously amortize quicker than standard 30-year home loans.
Gains in home equity were strongest in high-end markets where prices posted double-digit increases, such as Washington and Oregon. These two states saw home equity gains of $31,000 and $27,000 respectively, double the overall U.S. rate, noted CoreLogic’s chief executive, Frank Martell.

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Snoqualmie Pass Real Estate, Mortgage, and the Economy – Seattle and Tacoma in U.S. top 5

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Seattle and Tacoma in U.S. top five for percentage of homes selling above list price

Bay Area tops nation in homebuying bidding battles
PUBLISHED:  | UPDATED: 

Amid rising interest rates and widespread concerns about the cost of housing, one might expect the Bay Area’s real estate market to run out of steam.
Apparently, that’s not happening.
In February, the fiercest bidding on homes took place in the Bay Area, according to a new national report from Redfin, the real estate brokerage. In San Jose, 63 percent of homes sold above list price, followed by 62 percent in San Francisco and 59.1 percent in Oakland. Among all U.S. markets, those were the three highest shares of “over asking” bidding. Next in line were two markets in the state of Washington: Seattle with 49.3 percent and Tacoma with 36.3 percent.
February’s fastest-moving markets were, in order, Seattle (with about half of all homes pending sale within 12 days of being listed); Oakland (where homes typically spent 15 days on market); Denver (18 days on market); San Jose (21 days); and San Francisco (28 days).
Still, industry observers point to an underlying problem: The housing supply is low in much of the country, and that doesn’t make for a healthy market in the long term.
Nationally, the number of homes for sale declined 12.9 percent in February on a year-over-year basis. It was the third consecutive month of double-digit drops in inventory, Redfin reported.
The number of homes for sale fell year-over-year by 12 percent in Oakland, by 5.3 percent in San Francisco, and by 2.0 percent in San Jose. (Sacramento inventory practically fell off a cliff — down 25.4 percent from a year earlier.)
With “low-tier” affordable homes in particularly short supply around the nation, first-time homebuyers are struggling to get a foot in the door. That’s because, with inventory at such low levels, competition persists: Those buyers who remain in the game keep putting upward pressure on prices.
Taking all of this under consideration, Nela Richardson, Redfin’s chief economist, painted a half-rosy picture of the current market.
“The total level of home equity reached a new peak at the close of 2016, according to recent Fed data,” Richardson said. “While great for homeowners, continuously strong price growth across the U.S. since 2012 has posed significant challenges for first-time buyers, especially given such low supply in affordable price-tiers.”
But she pointed to a silver lining: “Rising prices and increased equity may tip the scales for homeowners who have been delaying their decision to move up,” she said, “which could add much-needed starter-home inventory to the market.”
Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Snoqualmie Pass Real Estate, Mortgage, and the Economy – Seattle and Tacoma in U.S. top 5

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Seattle and Tacoma in U.S. top five for percentage of homes selling above list price

Bay Area tops nation in homebuying bidding battles
PUBLISHED:  | UPDATED: 

Amid rising interest rates and widespread concerns about the cost of housing, one might expect the Bay Area’s real estate market to run out of steam.
Apparently, that’s not happening.
In February, the fiercest bidding on homes took place in the Bay Area, according to a new national report from Redfin, the real estate brokerage. In San Jose, 63 percent of homes sold above list price, followed by 62 percent in San Francisco and 59.1 percent in Oakland. Among all U.S. markets, those were the three highest shares of “over asking” bidding. Next in line were two markets in the state of Washington: Seattle with 49.3 percent and Tacoma with 36.3 percent.
February’s fastest-moving markets were, in order, Seattle (with about half of all homes pending sale within 12 days of being listed); Oakland (where homes typically spent 15 days on market); Denver (18 days on market); San Jose (21 days); and San Francisco (28 days).
Still, industry observers point to an underlying problem: The housing supply is low in much of the country, and that doesn’t make for a healthy market in the long term.
Nationally, the number of homes for sale declined 12.9 percent in February on a year-over-year basis. It was the third consecutive month of double-digit drops in inventory, Redfin reported.
The number of homes for sale fell year-over-year by 12 percent in Oakland, by 5.3 percent in San Francisco, and by 2.0 percent in San Jose. (Sacramento inventory practically fell off a cliff — down 25.4 percent from a year earlier.)
With “low-tier” affordable homes in particularly short supply around the nation, first-time homebuyers are struggling to get a foot in the door. That’s because, with inventory at such low levels, competition persists: Those buyers who remain in the game keep putting upward pressure on prices.
Taking all of this under consideration, Nela Richardson, Redfin’s chief economist, painted a half-rosy picture of the current market.
“The total level of home equity reached a new peak at the close of 2016, according to recent Fed data,” Richardson said. “While great for homeowners, continuously strong price growth across the U.S. since 2012 has posed significant challenges for first-time buyers, especially given such low supply in affordable price-tiers.”
But she pointed to a silver lining: “Rising prices and increased equity may tip the scales for homeowners who have been delaying their decision to move up,” she said, “which could add much-needed starter-home inventory to the market.”
Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Snoqualmie Pass Real Estate, Mortgage, and the Economy – Seattle and Tacoma in U.S. top 5

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Seattle and Tacoma in U.S. top five for percentage of homes selling above list price

Bay Area tops nation in homebuying bidding battles
PUBLISHED:  | UPDATED: 

Amid rising interest rates and widespread concerns about the cost of housing, one might expect the Bay Area’s real estate market to run out of steam.
Apparently, that’s not happening.
In February, the fiercest bidding on homes took place in the Bay Area, according to a new national report from Redfin, the real estate brokerage. In San Jose, 63 percent of homes sold above list price, followed by 62 percent in San Francisco and 59.1 percent in Oakland. Among all U.S. markets, those were the three highest shares of “over asking” bidding. Next in line were two markets in the state of Washington: Seattle with 49.3 percent and Tacoma with 36.3 percent.
February’s fastest-moving markets were, in order, Seattle (with about half of all homes pending sale within 12 days of being listed); Oakland (where homes typically spent 15 days on market); Denver (18 days on market); San Jose (21 days); and San Francisco (28 days).
Still, industry observers point to an underlying problem: The housing supply is low in much of the country, and that doesn’t make for a healthy market in the long term.
Nationally, the number of homes for sale declined 12.9 percent in February on a year-over-year basis. It was the third consecutive month of double-digit drops in inventory, Redfin reported.
The number of homes for sale fell year-over-year by 12 percent in Oakland, by 5.3 percent in San Francisco, and by 2.0 percent in San Jose. (Sacramento inventory practically fell off a cliff — down 25.4 percent from a year earlier.)
With “low-tier” affordable homes in particularly short supply around the nation, first-time homebuyers are struggling to get a foot in the door. That’s because, with inventory at such low levels, competition persists: Those buyers who remain in the game keep putting upward pressure on prices.
Taking all of this under consideration, Nela Richardson, Redfin’s chief economist, painted a half-rosy picture of the current market.
“The total level of home equity reached a new peak at the close of 2016, according to recent Fed data,” Richardson said. “While great for homeowners, continuously strong price growth across the U.S. since 2012 has posed significant challenges for first-time buyers, especially given such low supply in affordable price-tiers.”
But she pointed to a silver lining: “Rising prices and increased equity may tip the scales for homeowners who have been delaying their decision to move up,” she said, “which could add much-needed starter-home inventory to the market.”
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Snoqualmie Pass Real Estate, Mortgage, and the Economy – Empty Nesters’ Market


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Why It's Now An Empty Nesters' Housing Market

Mar 10, 2017
There’s a mismatch in the housing market. Demand is rising, yet homebuilders don’t have the capacity to create the supply the way they did in the boom years. They haven’t banked as much land, they haven’t filed the permits and they’ve become increasingly short of labor—one possible byproduct of the Trump administration’s crackdown on illegal immigrants. In fact, the nation is probably short about 700,000 homes on an annual basis. That explains why new home sales have been somewhat disappointing.
It also explains why sellers in many markets are now in prime position. According to Realtor.com, in December and January the supply of existing homes was 3.6 months, something that hadn’t happened since January 2005. In Seattle, for instance, the average time a house stays on the market is 36 days, compared with the national average of 90 days. In Dallas-Ft. Worth, it’s 42 days, according to Realtor.com. Combine that with the prospect of higher-priced mortgages thanks to the Federal Reserve’s decision to begin lifting interest rates and it makes buyers a little more motivated. “We’ve seen home sales surge because buyers are beginning to realize there is this expectation that mortgage rates will rebound: you might as well get in now,” says Bernard Baumohl, chief global economist at The Economic Outlook Group. He says prices are rising at twice the rate of inflation and more than two times the rate of average hourly pay. That’s bad news on the affordability front for first-time buyers who are trying to get onto the first rung of the housing ladder.
Click here for more articles from Time Inc.’s Looking Forward series.
But it’s great news for empty nesters and other homeowners looking to downsize. Even better, there’s less of a supply constraint because developers have targeted the boomer market by building high service, luxury condominiums in major markets. And why not, says Peter Wells, a partner at Real Capital Solutions, which is developing a luxury condo tower in suburban Dallas: “When [boomers] sell their big place, they're cash rich and it becomes all lifestyle driven.” Spring is a traditional time for buying and selling homes, and this season stands to be a busy one.
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