Seattle Real Estate- Standing on solid ground

As of today the Seattle housing market is appreciating at around 13% (Seattle Times- May 20th, 2007) and the average 30-year fixed-rate mortgage (FRM) has landed at about 6.51%.

...I almost want to type this a second time just because it feels good.

But after watching the fate of property values in states such as Florida and California, and hearing the constant warnings of an increasing number of foreclosures nationally- doing a happy dance may seem as inappropriate as doing 'the sprinkler' at your great aunts' funeral.

But truly- Seattle's average appreciation for the past 5 years has been around 9%. Last year's 16% appreciation would naturally have to slow- but the question has been, will the bubble burst?

In an earlier posting I took comfort in a quote published by the Seattle Times by Lawrence Yun, senior economist at the National Association of Realtors. The projections are that Seattle-area prices will continue to climb this year. Keeping in the double digits will be a difficult feat if attainable.

No matter where you are located; when you are in the financial position to purchase the house that meets your standards of investment and living- it is the right time to buy.

What about rates? Another headline favorite these days entails increased mortgage rates.

The stock market has been hot these past few weeks, enticing investors from bonds to stocks. This inevitably is what results in increased rates on mortgage loans.

As of June 1st- the average 30-year fixed rate mortgage moved to it's highest rate in 6 months.

Alright- that sounds bad.

Until you realize that this rate is still a quarter-percentage point below last year at this time.

The rates fluctuate by an eighth of a point one way or another nearly daily. Depending on what types of loans different lending institutions are trying to attract- we've been looking at an average rate of 6 to 6.35% on 30-year fixed rate mortgages for credit scores >700 for a very long time (at least the past two years if not more). Slight adjustments in rates are making headline news, I think, because there is not much more to write about.

Rates are consistent, and local property values are projected to continue to appreciate.

If you are dreaming of a new home, we encourage you to make that dream a reality because as far as we can see- you will be standing on solid ground.

Sunday's artice in the Seattle Times about local home prices.

This Sunday the Seattle Times printed an article called "Home prices: from sizzle to simmer".

http://archives.seattletimes.nwsource.com/cgi-bin/texis.cgi/web/vortex/display?slug=homevalues20&date=20070520

As we have seen; national house prices have been falling in cities such as Honolulu; Fort Lauderdale, Fla; and Merced, Calif. The National Association of Realtors forecasts prices will decline 1 percent this year.

What does this mean for Seattlites who are have been searching for their dreamhome?

The Northwest has yet to feel the effects of this nationwide condition, but you can't help but to ask if local property values will escape entirely unscathed.

The answer this article stated is that King County has felt the heat- but the result was a 13 percent appreciation rate so far this year.

13 percent appreciation? That hardly seems like a hit- But it is a decrease from the 16 percent appreciation seen in this area in 2006.

Lawrence Yun, the senior economist at the National Association of Realtors, states that Seattle-area prices will continue to climb this year and appreciation will "be above 5 percent. But hitting double-digits in 2007 may be somewhat difficult,".

Above 5 percent.

I hope they keep that information under wraps- otherwise I'm afraid we may find too many people moving to Seattle.