Di Kawell Real Estate Blog

Federal Way Home & Condo Sales Stats - July 2009

Average days on the market for the homes and condos that have actually sold is almost the same .. 95 days.

Single Family Homes Stats - *337 homes for sale from $87,900 to $2,900,000. Median price is $314,950.

*60 sales closed in July, from $75,000 to $835,000. Median sold price is $264,488. On average, we have about a 5.6 month supply of homes for sale. But, time increases as prices go up. For example in the price range of $350,000 to $450,000, it's a 10 month supply.

And, for sales that are pending (under contract but not closed) we have 81 homes ranging in price from $100,000 to $998,000. Median pending price is $229,400. 

*For the month of July, we have just 18% of the available homes actually selling.

Condo Stats - *120 condos currently on the market with prices from $82,000 to $329,999.

*11 condos sold in the month of July, prices range from $85,000 to $212,000.

17 condos are pending (under contract) in July, prices range from $72,500 to $250,000.

*For the month of July, we have just 9% of available condos actually selling.

 

 

 

 

                    

Federal Way Home Sales Are Up! Stats Comparisons May '09 to May '08

Recently released title info shows that Federal Way, WA single family housing inventory is down by 30% this year over last; however closed home sales are up by 33% !  3 guesses why? Answer: Affordability!  The average (median) sale price is $241,000 which fairly well reflects the average buying power of a typical Federal Way resident. Our sale prices have dropped 22.20% from a year ago, when the median was $310,125. 

Actual inventory numbers stood at 353 homes on the market as of may 31st, and 56 sales closed for the month of May.

Condo listings in Federal Way are down 9.4% and the sales are down a whopping 46% this May over last! Actual numbers are 7 units sold, at a median price of $129,900. This price is down from a median of $165,000 a year ago.

If You Remember Abbott & Costello ...

For those of us (like me) who sometimes get flustered by our computers, please read on... If Bud Abbott and Lou Costello were alive today, their infamous sketch, "Who's on First?" might have turned out something like this: COSTELLO CALLS TO BUY A COMPUTER FROM ABBOTT ABBOTT: Super Duper Computer Store. Can I help you? COSTELLO: Thanks I'm setting up an office in my den and I'm thinking about buying a computer. ABBOTT: Mac? COSTELLO: No, the name's Lou. ABBOTT: Your computer? COSTELLO: I don't own a computer. I want to buy one. ABBOTT: Mac? COSTELLO: I told you, my name's Lou. ABBOTT: What about Windows? COSTELLO: Why? Will it get stuffy in here? ABBOTT: Do you want a computer with Windows? COSTELLO: I don't know.  What will I see when I look at the Windows? ABBOTT: Wallpaper. COSTELLO: Never mind the windows.  I need a computer and software. ABBOTT: Software for Windows? COSTELLO: No.  On the computer!  I need something I can use to write proposals, track expenses and run my business.  What do you have? ABBOTT: Office. COSTELLO: Yeah, for my office. Can you recommend anything? ABBOTT: I just did. COSTELLO: You just did what? ABBOTT: Recommend something. COSTELLO: You recommended something? ABBOTT: Yes. COSTELLO: For my office? ABBOTT: Yes. COSTELLO: OK, what did you recommend for my office? ABBOTT: Office. COSTELLO: Yes, for my office! ABBOTT: I recommend Office with Windows. COSTELLO: I already have an office with windows! OK, let's just say I'm sitting at my computer and I want to type a proposal.  What do I need? ABBOTT: Word. COSTELLO: What word? ABBOTT: Word in Office. COSTELLO: The only word in office is office. ABBOTT: The Word in Office for Windows. COSTELLO: Which word in office for windows? ABBOTT: The Word you get when you click the blue "W". COSTELLO: I'm going to click your blue "w" if you don't start with some straight answers. What about financial bookkeeping? You have anything I can track my money with? ABBOT T: Money. COSTELLO: That's right. What do you have? ABBOTT: Money. COSTELLO: I need money to track my money? ABBOTT: It comes bundled with your computer. COSTELLO: What's bundled with my computer? ABBOTT: Money. COSTELLO: Money comes with my computer? ABBOTT: Yes. No extra charge. COSTELLO: I get a bundle of money with my computer? How much? ABBOTT: One copy. COSTELLO: Isn't it illegal to copy money? ABBOTT: Microsoft gave us a license to copy Money. COSTELLO: They can give you a license to copy money? ABBOTT: Why not? THEY OWN IT! A few days later. ABBOTT: Super Duper computer store. Can I help you? COSTELLO: How do I turn my computer off? ABBOTT: Click on "START".............

 

 

 

Federal Way - The Region's Hottest Spanish Music & Flamenco Dance!

Carmona Flamenco and Correo Aereo - Hosted at the Knutzen Family Theatre this weekend, Saturday April 18th at 8PM - tickets are selling fast - just $12 - $16  Box Office 253-835-2020 or go online to http://www.kftevents.com to order and read more about the performers.

You may have heard & seen these artists perform in Seattle at the Folklife Festival or Bumbershoot - and there is more to learn at www.fanw.org/carmonaflamenco.html

Check out current mortgage rates!

Here's a reminder of some of the factors that impact the rates quoted below.

Loan to value.  Rates are also impacted by how much equity you have in your property.  The value of your property is determined by an independent appraisal requested by the lender.  The appraiser includes 3-4 homes similar to yours, located near your home that has recently sold.  For conventional loans, rates below will be based on an 80% loan to value; FHA is based on a minimum of 3.5% down payment (96.% loan to value).

Type of home/occupancy.  Rates quoted are based on a single family dwelling (1-unit) and, unless otherwise noted, owner occupied.

Documentation.  These days, you can count on a full-documented loan when applying for a mortgage.  Full-doc loans provide the best pricing.  This typically includes documenting 2 years of employment, 30 days of income and 30-60 days of assets.

Lock period.  The number of days that your loan is locked impacts the price of the rate.   The shorter the lock, the less expensive the rate.  Since most purchase transactions take 30-45 days, I'm using 45 days for the lock period.  If your transaction is closing in less than 30 days, the pricing for your rate may be improved.

Points, no points and reduced closing costs.  How your mortgage is priced is completely up to you.  Points may be shown on the current Good Faith Estimate on lines 801, 802 or 808 depending on if you're working with a mortgage banker, lender or broker.  A point equals 1% of the loan amount and typically reduces the rate by 0.25-0.375%.  Closing costs can be reduced in the same manner.  If your rate is increased by 0.25%, your closing costs shold decrease by 1% of your loan amount (there are no free loans--you're paying for it in rate).

Type of transaction.  Rates vary depending on if the mortgage is for a purchase, rate/term refinance (no cash back) or cash out refinance.  Unless otherwise noted, rates I quote on Di's blog will be for purchasing a home.

Quick note (before I get to rates): during this volatile market, lenders are averaging around 3 rate sheets per day.  This means that once I publish rates here, they may have all ready changed for better or worse.  If you're selecting your mortgage professional by rate alone (which I do not recommend), you must do your rate shopping on the same day at the same time or you're not comparing apples to apples.  Rates are a moving target.  To see what rates I'm quoting live to my clients, click here.

Rates below are as of 11:30 a.m. on April 8, 2009.   Note:  Markets will be closing early tomorrow and remain closed on Friday (you may not be able to lock in rates) reopening on Monday, April 13, 2009.   Also important to note; King County's Recording Office will be closed on Friday, April 10, 2009.

Conforming Conventional ~ loan amounts up to $417,000 for single family dwellings.  Rates below based on a sales price of $500,000 and a $400,000 loan amount:

• 30 year fixed:  4.500% at 1 point (apr 4.641).
• 15 year fixed:  4.375% at 1 point (apr 4.620).

High Balance Conventional ~ loan amounts up to $506,000 for King, Pierce and Snohomish Counties.  Note: any moment, lenders will start pricing the revised 2009 loan limit of up to $567,500.

• 30 year fixed: 4.750% at 1 point (apr 4.986).

FHA ~ base loan amounts up to $417,000 for King, Pierce and Snohomish Counties.

• 30 year fixed:  4.875% priced with 1 point (apr 5.698).

FHA High Balance ~ base loan amounts from $417,001 to $567,500 for King, Pierce and Snohomish Counties.

• 30 Year fixed:  5.000% priced with 1 point (apr 5.823)

VA ~ loan amonts up to $417,000.

• 30 year fixed:  5.000% priced with 1 point (apr 5.107)

Prime rate (what most HELOCs are based on) ~ 3.250%.

Rhonda Porter is a Certified Mortgage Planning Specialist, Licensed Loan Originator 510-LO-32047 at Mortgage Master Service Corporation.

Rhonda started in the real estate in 1986 in the title and escrow industry and began her mortgage career on April 1, 2000.  Mortgage Master has been serving Pacific Northwest homeowners since 1976.   As a Correspondent Lender, Mortgage Master features in-house processing, underwriting, prepares loan documents and funds transactions from their own credit lines.  They are a direct endorsed FHA approved HUD lender and also offer VA and conventional programs at their office located in South King County.

March Home Sales In Federal Way Much Improved!

Even with rain, snow, sleet and hail Federal Way home sales are gaining momentum! Closed sales for the month are up 60% over February. And that means with inventory holding steady at 350 properties for sale, closed sales at 37 units, we have a 9.5 month supply of homes. That is down from a 15 month supply in February - much improved!

 The median price of the homes on the market for sale is $300,000, and the median price for the homes that have closed is $249,000. We are still seeing first time homebuyers as the main group taking action - not surprising since they have such great incentive with the Federal First-Time Homebuyer Tax Credit now solidly in place, plus excellent FHA financing available.

For up to the minute reports of home values in your neighborhood of Federal Way, please comment here or send an email to me at dkawell@windermere.com  I'll need your address and a list of the improvements you have made to the property. You can also phone me at 206-794-0844.

Quick Video about the First Time Home Buyers Tax Credit

Here's a short video (just 4 minutes) which addresses the first time home buyer tax credit (available until December 1, 2009) and our historically low interest rates...could now be the time to buy your first home?

Federal Way Mayor Hosts First of Four Town Hall Meetings

Mayor Jack Dovey is hosting an informal town hall meeting on March 25th, 6:30 PM at the Federal Way Community Center, 876 S 333rd St, near the Celebration Park campus. This is a great opportunity for area residents and business people to learn and ask questions about life in Federal Way, as it is and what's new and coming soon. The mayor will give a brief update, and area service clubs will make a short presentation on volunteer opportunities in the community. 

For more information, contact Brook at 253-835-2401.

What's Up with Loan Limits?

Towards the end of 2008, it was announced that the loan limits above conforming $417,000 and below jumbo (aka Jumbo Conforming or High Balance or FHA Jumbo) would be adjusted based on home values by region.  In our local area of King, Pierce and Snohmish counties, this meant that the loan limit went from $567,500 to $506,000.  We lost $61,500 of financing power on upper end homes. 

On Friday, February 13, 2009, Congress approved the "American Recovery and Reinvestment Act of 2009" came along which reinstated the higher 2008 loan limits to "high cost areas".   OFHEO, who oversees Fannie Mae and Freddie Mac (conventional lenders) announced they were endorsing the loan limits and provided a list the "high cost" areas that would benefit on February 23, 2009.  FHA soon followed with their acknowledgement of the higher limits as well.  And then...we waited for everything to trickle into place.   I began quoting the higher loan limits for FHA insured loans around March 6, 2009.  Just this week, I've noticed Fannie Mae loans reaching $567,500...we're still waiting on Freddie Mac...which should be available soon.  I happen do more Fannie Mae and FHA than Freddie Mac loans.

What's in it for you?

With an FHA insured loan at $567,500, you only need 3.5% down payment to purchase a home.   For conventional, you now have $61,500 more of buying power!  Rates for high balance loans are much more attractive than a true jumbo (non-conforming) mortgage.  Here are examples of what's available right now:

Sales price $585,000.  Home buyer minimum required down payment of $20,475 (3.5% of the sales price) -- which can be in the form of a gift or loan from family members.  The seller can pay all of the closing costs (up to 6%) as long as the buyer meets the 3.5% requirement.  Based on this afternoon's rate of 5.00% (apr 5.665%) for a FHA High Balance, the total estimated mortgage payment (including taxes and insurance) would be around $4,000. Credit scores for this progam need to be 620 or higher.  This is a great option for home buyers with decent income and shy on down payment.  

Sales price of $700,000 with 20% down payment of $140,000 would create a loan amount of $560,000.  Based on credit scores of 740 or higher, this afternoons rate would be 5.00% priced with 1 point (apr 5.132%).  Total estimated payment would be around $3,800.

These new loan limits are available now through the end of this year.  Here are FHA loan limits for Washington State and other High Balance Conforming loan limits (not all counties qualified).

Rhonda Porter CMPS is a Licensed Loan Originator 510-LO-32047 for residential mortgages in Washington State.  She has worked at Mortgage Master Service Corporation, a Correspondent Lender, in South King County since April 2000.  Prior to mortgage, Rhonda managed an escrow branch of a title insurance company located in Federal Way--this is how she first met Di Kawell.  Rhonda has been helping Pacific Northwest families with their real estate needs since 1986.

You can contact Rhonda at 206-718-9488 or visit her nationally recognized, award winning blog The Mortgage Porter.

What's "High End" for Home Pricing in the Federal Way area?

According to Windermere's Premier Properties qualifying guidelines effective January 1, 2009, in the Federal Way and Jovita/West Hill Auburn areas, minimum pricing is at $700,000. But, more importantly is the quality of the home and neighborhood. Upscale quality and excellent interior/exterior maintenance plus architectural interest or historical significance are all criteria upon which Windermere agents and brokers must evaluate a property to qualify for this special category marketing. 

In general, based only on mls pricing & stats for this area, there are currently 26 homes listed for sale from $720,000 to $1,340,000. Avg square footage is 4,084, and avg lot size is approx half acre up to 4.9 acre currently.  In the past 6 months, there have been 8 closed sales in this range, from a low of $700,000 to a high of 1,593,000, and avg days on the market were 162. Impressive Puget Sound, Lake waterfront and Mountain views are often features included in this price point. Southwest King County Washington is well known for value pricing; and the drive time to Seattle is approx 45 minutes - to Tacoma, under a half hr. Come check us out - you'll be glad you did!