Aug. 6, 2008 - RMLS Data Shows Continued Gradual Slowdown of Market Activity in June

REAL ESTATE MARKET

Compared to June of 2007, the Regional Multiple Listing Service's (RMLS) market report for the month of June 2008 showed a 33.9% drop in closed sales, a decline  of 36.8% in pending sales, and 13.7% less new listings.  There was a total of 5276 active residential listings during June, which, at the current sales absorption rate, would take an estimated 12.6 months for all these listings to sell.  

There were only 418 closed sales during the month of June, once more a very small number given the large number of active listings available for sale.  A large percentage of the buyers actively in the market are definitely looking for bargains, and many sales have been foreclosures or short-sales.  We continue to see most activity in the lower price ranges, with the average sale price during the month of June was $278,300, and the median price was $249,900.  While most listings are staying on the market for many months, the average time to sell the 418 homes that did sell was just 88 days.

When looking at the twelve-month period ending June, 2008, market data showed that the average sale price was down 3.6% ($295,600 vs. $306,600) and the median sale price droped 3.7% ($255,000 vs. $264,900). 

Carol Sundstrom, M.A.,ABR,e-Pro and Your Guide To Good Living in Clark County WA!  Coldwell Banker Barbara Sue Seal Properties University Branch @ Salmon Creek, Vancouver, WA

Jul. 19, 2008 - Coming Soon: Latest RMLS Market News!

REAL ESTATE NEWS

Just a quick note to let you know I will be posting detailed news from the latest RMLS Market News report very soon!  Check back soon to learn more about how the local market is evolving as the summer goes on!

Carol Sundstrom, M.A.,ABR, e-Pro and Your Guide to Good Living in Clark County WA! Coldwell-Banker Barbara Sue Seal Properties,University Branch @ Salmon Creek, Vancouver, WA   

Jun. 29, 2008 - Local MLS Reports May 2008 Clark County Real Estate Data

REAL ESTATE NEWS

The Clark County Washington real estate market continues to slow incrementally month by month. Even though we are entering into the late spring and summer months when buying and selling activity usually picks up, we are seeing little evidence of any significant upswing in the market locally.  The Regional Multiple Listing Service (RMLS) recently reported that at the rate of sales that occurred in May it would take 12.6 months for all of the 5048 listings that were at the end of May.  Compared to May 2007, new listings were down 14.3% and closed sales were down 31.9%.  Looking at the sale prices for the twelve-month period ending in May 2008 compared to the twelve-month period that ended in May 2007, the average sale price dropped 2.1%, from $306,600 5/07 to $299,100 5/08, and the median sale price dropped 2.8%, or from $264,900 5/07 to $257,500 5/08.  For the total of 400 closed sales which occurred in May, average market time to a pending sale in May was 92 days. (Source:  RMLS Market Watch, June 2008) 

We continue to see very few buyers actively looking for homes, and, as the figures above indicate, most of the sales are occurring in the lower price ranges.   Many of those that are out looking at this time are people who, as a result of news reports hyping bad news scenarios -- "prices are  falling!' or "foreclosures are on the increase!" --  are looking for "hot deals" or making "low-ball" offers even on non-distressed and fairly-priced homes.   This kind of market activity, especially  combined with so few other active homebuyers -- has month-by-month had the effect of causing increasing numbers of price reductions and led to sellers needing to sell being forced to accept offers below their homes actual market value.  In turn, as time has gone on, Clark County home-owners have begun to see a worrisome erosion of their property values. 

It is important to note that these conditions have been largely media-generated.  Had it been better understood that all real estate markets reflect local, not national, conditions and had reporters in 2006 through 2007 and more recently focused constructively on presenting actual facts about both the Clark County real estate market dynamics and the local economy -- all factors which were quite positive relative to much of the country, especially California, Nevada, Arizona, Florida, and some rust-belt states, for example -- our market conditions in and around Vancouver WA would still be evidencing much more stability and at least some growth, although perhaps not quite as much so as in the Seattle area and other parts of Washington state, where most of the best-performing markets in the nation have been during the past few years.   

I am frankly dismayed at what the media-induced perceptions and buyer behaviors have led to in our area.  Yes, there are now plenty of more affordable homes available for those buyers who can qualify to purchase them, and that is a very good thing.  But the continued slow housing market is negatively impacting our otherwise positive local economy, and that could have harm our economy unnecessarily.  In fact, i wish more potential buyers would recognize the tremendous opportunity presented to them by today's buyer's market conditions and act to benefit from that opportunity before interest rates go up further and prices again begin to rise, something anyone who has been around a while knows is inevitable.   Those currently renting should definitely do so, since even with low appreciation rates, the tax benefits and other rewards of owning a home continue to be outstanding, especially in the face of rising rents.

If you have any further questions or want to express concerns about the Clark County WA real estate market , or if you would like assistance in buying or selling a home in Vancouver WA or a nearby community, feel free to contact me any time by email at carolsundstrom@cbseal.com or phone at (360) 449-4364 or 513-5067, or post your thoughts and questions below!

Carol Sundstrom, M.A.,ABR, e-Pro and Your Guide to Good Living in Clark County WA!  Coldwell Banker Barbara Sue Seal Properties, University Branch @ Salmon Creek, Vancouver, WA    

May. 22, 2008 - Update on Clark County WA Real Estate Foreclosures

REAL ESTATE NEWS

There was an interesting article in our local newspaper, The Columbian, last Sunday (5/19/2008) regarding foreclosures.  Information toward the end of the article had more useful implications for local homeowners and those thinking of selling, or perhaps buying, in the area at this time.  The first part of the article hyped the negative, and inferred the foreclosure problem is far worse than it really is in Clark County Washington. 

It comes as no surprise to real estate professionals that the bulk of the foreclosure problems have been in new construction.  It is in the new subdivisions being built in the 2003 to 2005 period that we saw rapid price hikes being driven both by speculators buying with the intention of "flipping" their investments and also the builders' in-house lenders offering adjustable-rate financing with low initial rates that encouraged many to buy beyond their means.  I thought some builders set their prices ridiculously high during this period, and avoided bringing my buyers to those properties because I thought the homes were artificially overvalued.  Especially in some locations, the market prices made no sense, even if the homes had a lot of cosmetic bells and whistles.  (I wish buyers stuck on the idea of a new house would realize they can often do much better if they buy a quality home in a good neighborhood and then make whatever cosmetic improvements they want to do!) 

A lot of lenders and mortgage brokers hopped on the bandwagon, too, and helped fuel the growth of subprime mortgages with low qualifying standards.  These approaches worked as long as prices kept rising quickly, but when the market started to slow down and appreciation began adjusting to more normal rates, those speculators who bought at the peak of the market couldn't find a buyer who would pay the price they needed to cover selling costs (including Washington's 1.78% excise tax, title and escrow costs, and real estate commissions) and make some profit, too.  Trying to sell For-Sale-By Owner hasn't worked well in a market requiring more intensive marketing either.  Fortunately, we had a lot less use of subprime mortgages and less speculative investing than some other areas of the country, but still there have been quite a few hurt by these poor investments, and there are likely to be more.  It is also good that builders have reduced the prices on their new construction considerably as they have sold off their inventories and been relieved of their high carrying costs.      

However, while the foreclosure rate for buyers of such new construction has been fairly high, there are many areas of Clark County where there have been few or no foreclosures at all.  This has helped to keep home values relatively steady, even show slight ongoing increases, in these areas.  Too many foreclosures will bring property values down in a neighborhood.  That is why the lack of buyers actively looking for a home to buy has been so bad for the Clark County real estate market, since more than anything, it is the lack of buyers relative to the number of homes for sale that has caused far too many homeowners to be unable to sell fast enough to avoid going into foreclosure.  Had all the negative and even erronious media reports about real estate "bubbles" bursting and house values falling not discouraged so many people from buying a home during the past couple of years -- a period of time when all economic indicators in our area actually pointed to what should have been a more normal and stable local real estate market -- many sellers may have been able to avoid a short sale or foreclosure.  After all, we had a much lower number of subprime mortgages and less speculation in this area than some others, such as California, Nevada, Florida, and Arizona.

That's why the first part the The Columbian article was again disappointing to me and not helpful for local home owners and prospective buyers.  The authors started the article with a sentence including the following:  "In an east Vancouver subdivision, one out of every nine houses has entered foreclosure since the start of the year."  (I suspect this is a newer subdivision.)  The next paragraph said, "The Clark County foreclosure rate has been rapidly climbing since mid-2007..."  A few paragraphs later I read, "Behind the numbers are tears and tough choices for hundreds of local homeowners who can no longer afford their loans..."  I guess "bad" and "scary" news sells newspapers. 

The relatively good statistics for our area on foreclosures -- that during the first quarter of this year, just 4.44 of every 1000 homes in Clark County were in foreclosure, and in the Portland - Vancouver area as a whole, the rate is 3 of every 1000 -- were reported as if these numbers are high.  They aren't.  Now, there is no question that ANY foreclosures taking place is not a good thing.  And it is true that the local rate of foreclosure has increased in the last year, "fourfold from 2007," according to The Columbian article.  And it is true that Clark County's rate appears close to the national rate of 5.09 of every 1000 homes being in foreclosure. 

What is not said, however, is that this nationwide rate is an average of all the foreclosure rates in the nation, including a large number of areas that have not had any any significant increase in foreclosures, as well as some areas that have experienced foreclosure rate increases of 100 to 500%, even in one case more than 1000%!  I recently heard a report on NBC that the Stockton, California, area has the highest foreclosure rate in the country -- 1 of every 33 homes!  Further, a recent survey showed that of the 100 larger metropolitan areas of the country, the entire Portland - Vancouver Metro Area was among those with the lowest increase in foreclosures!  Another third of the country even reported a decrease in the rate of foreclosures during the same period.  So much for the supposedly all-pervasive nationwide foreclosure disaster being reported by the news!  (Of course, if they keep reporting it, they will help to create more problems everywhere as they scare all the buyers out of the housing market!)

Again, there is certainly nothing good about the foreclosure problems we are seeing in Vancouver and elsewhere in Clark County.  But let's keep things in perspective.  And hopefully we read the news with a critical eye and "a grain of salt," since we are not being helped at all by getting only part of the story and having the negatives selectively hyped.  (I have wondered if these reporters are homeowners themselves, and if they realize their reporting is likely going to have a damaging effect on their own home values.) 

I must admit, I've also wondered if some of the "experts" being interviewed on TV and for other media might not have some ulterior motives behind their negative views of real estate investment; after all, while they are economists and financial experts, they are rarely experts in real estate, and encouraging other kinds of investment -- such as the stock market -- may be much more to their advantage.  And real estate should never be recommended as a short term investment, despite what all the books and programs on TV that hype "flipping" homes as a way to get rich say.  Home ownership and other real estate investment has and continues to be a major, perhaps the major way to build wealth in America, but that wealth is built over time, not overnight.     

It's important to remember that Clark County Washington homes are selling.  It's just taking longer, sometimes much longer, but more often the days on market until a pending sale is more in line with what is expected in a normal market, i.e., three to six months.  In fact, the RMLS just reported average market time in April was 91 days, and those homes which are priced properly for the market and show really well are selling even more quickly.  The message is, if you think you may need to sell because of having trouble paying your mortgage, spiff up your home and get it on the market.  Don't wait until it's too late!    

Do you have any thoughts you'd like to share about the Clark County real estate market?  Perhaps you have some questions to ask.  Feel free to post your comments below!  You are also welcome to contact me with questions or feedback, by email at carolsundstrom@cbseal.com or by phone at (360) 449-4364 or (360) 513-5067.   

Carol Sundstrom, M.A.,ABR, e-Pro and Your Guide to Good Living in Clark County WA!  Coldwell Banker Barbara Sue Seal Properties, University Branch @ Salmon Creek, Vancouver, WA  

May. 17, 2008 - MLS Reports Clark County Real Estate Market Data for April, 2008

REAL ESTATE NEWS

The Regional Multiple Listings Service (RMLS) has just issued its report on the Clark County Washington real estate market for the month of April, 2008.  The slow market experienced by all of us who work in real estate as well as those homeowners who have had their home on the market during the past year is again evident in the residential market activity for last month when compared to April, 2007, with new listings down 14.7%, pending sales down 28.1%, and closed sales down 29.7%.  The good news is that compared to the previous month this year (March, 2008), April 2008 pending sales rose 2.4% and closed sales went up 1.3%.  Average market time from listing date to pending sale was 91 days in April, indicating that some homes are still selling reasonably quickly.  (RMLS Market Action, May 2008)

The average price of a home sold during April, 2008, was $288,200, and the median price was $250,000.  Looking at the four months of January through April, 2008, the RMLS reports that there have been a total of 1338 listed residential sales closed, the average sale price was $292,500, and the median sale price was $248,700.  When you look at the entire 12-month period  ending April, 2008, as compared to the same 12 months of 2007, the percent of price change was a decline of just 0.7% in the average price of homes sold ($302,100 vs. $304,300) and only a 1.5% drop in the median price ($259,500 vs. $263,300).  (RMLS Market Action, May 2008) 

Homes under $250,000 are selling most rapidly, especially those around $200,000 or below, indicating many are wise enough to take advantage of the current Buyer's Market conditions to buy their first home or perhaps make an investment in rental property.  The main obstacle to sales in all price ranges is the competition among currently available homes for the limited number of suitable buyers actively out looking for homes.  And while less available than in many other regions of the country, there are also quite a few opportunities to get a great deal on a "short sale" (pre-foreclosure status) or foreclosure; be aware, however, that there is heightened competition among buyers for these homes, especially in the low price ranges.  While these market conditions continue to create downward pressure on home prices, and we continue to see a certain amount of price reductions occurring as those sellers who for some reason need to sell as quickly as possible become more motivated to get their homes sold, the actual decline in Clark County home prices remains very small compared to what some other regions of the country are experiencing (e.g., California, Nevada, Arizona, Florida, to name the most affected areas).  Though I know some of you find it hard to believe, Washington remains one of the healthiest real estate markets in the country!  It's true, and there is plenty of data to prove it.  And if anyone is wondering if real estate is a good investment during these uncertain times, I suggest you remember what Mark Twain once said:  "Buy land.  They're not making it any more." 

If you have questions or concerns about the Clark County real estate market or would like a free market analysis of your home, you are welcome to contact me any time at (360) 449-4364 or  (360) 513-5067 or  carolsundstrom@cbseal.com.

Carol Sundstrom, M.A.,ABR, e-Pro and Your Guide To Good Living in Clark County WA!  Coldwell Banker Barbara Sue Seal Properties, University Branch @ Salmon Creek, Vancouver, WA

Apr. 15, 2008 - March 2008 Market Activity Data Reported by Local MLS!

REAL ESTATE NEWS

The Regional Multiple Listing Service (RMLS) has just issued its report (Market Action, April 2008) for Clark County Washington Real Estate market activity during the month of March, 2008.  The market is still very slow relative to the same month a year ago, with 14.6% fewer listings and 29.2% fewer closed sales than in March, 2007.  Pending sales (accepted offers) were down 33.5%.  

However, the smaller number of new listings is helping to at least somewhat reduce the amount of time it is taking to sell the available home inventory.  While last month it was reported that it would take as much as 14.6 months to sell all residential listings, March data for rate of sales and the number of active residential listings (4,518) suggest this inventory would last about 11.9 months.  Average days on the market during the month of March was 94 days.   

Despite the fact that good "buyer's market" conditions continue and there are significant opportunities and very real benefits to buying a home now, we are still seeing very few buyers actively looking for homes.  As long as this has remained so, we have continued to see a degree of gradual reductions in asking prices and more willingness on the part of motivated sellers to negotiate their final sales price and terms in order to sell in today's market conditions.  

This gradual downward pull on prices -- while in no way a "bubble" deflating, since our overall average price increase of 26% during the peak "seller's market" period recently emerged from was far lower than the overheated appreciation rates experienced in much of California and some other areas -- is reflected in the ongoing month-by-month slowing of average sale price appreciation in Clark County.  The average sale price for the twelve-month period ending March, 2008, increased just 0.2%, or to $303,900 versus $303.300 during the twelve months ending March, 2007.  Further, there have been more homebuyers who have been actively looking for a "good deal" on homes in lower, more affordable price ranges than homes in higher price ranges, resulting in a slight one percent decrease in the median sale price during the same twelve-month period. 

The RMLS report does not reflect current data for new home construction, which has been hard hit by our slow market conditions.  A huge reduction in new construction starts over the past year as well as extensive efforts on the part of local subdivision and custom home builders to sell off their existing new home inventories has been helping to stabilize market conditions, something builders and owners of existing homes alike are looking forward to.  Many real estate experts have forecast a market turn-around, modest but meaningful, during the second half of this year or early in 2009.  I'll keep you posted on what the experts are saying over time! 

What are your thoughts on the current real estate market in Vancouver and Clark County Washington as a whole?  Feel free to ask questions, voice an opinon, share concerns, whatever!  Simply post a comment below! 

Carol Sundstrom, M.A.,ABR, e-Pro, and Your Guide To Good Living in Clark County WA! Coldwell Banker Barbara Sue Seal Properties, University Branch @ Salmon Creek, Vancouver WA        

Apr. 5, 2008 - Local Multiple Listing Service (RMLS) Data for February 2008

REAL ESTATE NEWS

The March issue of the RMLS Market Action reported that there were 294 home sales closed in Clark County during February, 2008.  This was an increase from January, when only 246 sales closed, a change which helped to slightly reduce the total inventory of homes on the market, now 4,300 homes estimated to take as much as 14.6 months to sell off versus the 17-month inventory (4,175 homes) in January.  Also, compared to the same month a year ago, while total new listings taken during the month of February, 2008, were down 1.7%, pending sales dropped 26.9% and closed sales were down 33.8%, reflecting the lack of home buyers in the market relative to the number of available homes for sale. 

The average sale price was $278,300, and the median price was $244,900.  Average market time for home sales closing in February was 110 days.  During February, 2007, a total of 444 sales closed and average market time was 87 days.  In 2007, the February average and median prices were $294,200 and $258,000 respectively.   You may then be surprised to know that, comparing the twelve-month period ending February, 2008, with the twelve months ending in February, 2007, the RMLS reported an increase, or slight appreciation, in the average sales price of 0.6%, The median sales price decreased 0.6%, indicating more lower-priced homes than higher-priced homes have been selling.    

These numbers reflect several local market dynamics.   First, while it is always true that there are fewer active buyers for higher priced homes than lower priced homes, this has been even more so in our current market, even though their numbers have been limited.   More strict qualification requirements for home loans and the demise of subprime loan products has meant that many can only purchase a lower priced home than they would have been able to do a few years ago.  Also, in addition to the usual first-time and other homebuyers in the market, the increase in foreclosures and distressed properties has attracted additional buyers looking for "a good deal." 

As the months without many active buyers have gone on and on, there have inevitably been continued gradual price adjustments.  This is partly because sellers who have sold during recent months have had to do one or more price reductions to try to catch the attention of the limited pool of buyers for their home and compete with the many other similar homes on the market. There has also been an increase in the number of "short sales" or pre-foreclosures and foreclosures, not just due to some sellers having subprime loan difficulties -- much less of a problem in our local area than in many other parts of the country, such as California, Arizona, and Nevada -- but also because some homeowners needing to sell due to other kinds of financial distress have simply been unable to find a buyer in time to ward off foreclosure.  

Still, our foreclosure rate ranks as among the lowest in the nation.  According to RealtyTrac, of the 100 largest metropolitan areas in the country ranked for foreclosures in 2007 versus 2006, the Portland OR/Vancouver WA/Beaverton OR metro area ranked number 73, with a 24% increase in foreclosures for 2007 versus 2006.  Six of the 20 metro areas having the most foreclosures were in California, three were in Florida, and two were in Michigan.  The areas with the most foreclosures are, not surprisingly, the areas with the largest drops in home prices.  (National Realty News, 2/23/2008).  

Clearly, we are still in a good "buyer's market" in Clark County!  Our slight increase in foreclosures certainly presents buyers with opportunities.  But it is the lack of active home buyers actively in our Clark County real estate market that is the primary factor driving our local market conditions, rather than other market factors, such as subprime loan problems or local economic conditions, which are, in fact, quite positive relative to many other areas.  And as I have said before, behind the reticence of potential buyers to enter the market is the media's failure to report accurately on our local real estate market (see my previous posts).  As the saying goes, don't believe everything you hear on TV!  Get the facts! 

It is, indeed, a GREAT time to buy in Clark County!  While home prices are continuing to adjust to our higher supply/lower demand conditions, there is much evidence that prices are leveling out and many believe we will see the market turn around more significantly by fall.  Now is thus the time to buy.  Interest rates remain extremely low, a wide variety of home loans and also first-time homebuyer assistance programs are available, both the federal and state government are taking steps to make buying a home easier in these times, and there are plenty of homes to choose from.  So, buyers, what are you waiting for?    

If you would like to know more about the local Clark County real estate market and how to buy or sell to your advantage in these times, feel free to contact me by email at carolsundstrom@cbseal.com or by phone at (360) 449-4364 or (360) 513-5067. 

Carol Sundstrom, M.A.,ABR, e-Pro and Your Guide to Good Living in Clark County WA!  Coldwell Banker Barbara Sue Seal Properties, University Branch @ Salmon Creek, Vancouver, WA      

Feb. 15, 2008 - New Data Just Reported by Regional Multiple Listing Service!

REAL ESTATE NEWS

The Regional Multiple Listing Service (RMLS) has just released the data for Clark County Washington real estate activity during the month of January, 2008.  The average price of a home sold this January was $308,800 and the median price for sales in January was $250,000.  Taking into account the entire 12-month period that ended in January 2008 and comparing it to the 12-month period ending January 2007, the average sale price in Clark County is reported to have appreciated 1%, while the median price dropped slightly, by 0.1%. 

The RMLS reported a continued market slowdown, with new listings of existing homes down 7.2% this January compared to January, 2007.  During this twelve-month period, pending sales dropped 24.8% and closed sales were down 30.5%, which is partly due to the record-high inventory of homes for sale in Vancouver and the rest of Clark County.  At the time of the RMLS reporting, there were 4175 active residential listings in the county.  At the current rate of sales it is estimated will take as much as 17 months for all these listed properties to be sold.  The average number of days on market for a home to sell during January 2008 was 95 days.  Once again we can clearly see the effects on our local market of there being too few home buyers actively out looking for and purchasing homes, despite the outstanding buyer's market conditions we now have!  No doubt things will start to improve as more buyers enter the market, a common occurence during the spring and summer, even in a slower market. 

Do you have any questions or thoughts you would like to share with me or with other bloggers about our local real estate market?  Feel free to post a comment below, or to contact me by phone at (360) 449-4364 or (360) 513-5067 or by emailing me at carolsundstrom@cbseal.com. 

-- Carol Sundstrom, M.A., ABR, e-Pro, and Your Guide to Good Living in Clark County WA!  Coldwell Banker Barbara Sue Seal Properties, University Branch @ Salmon Creek, Vancouver WA 

Feb. 11, 2008 - More misleading Clark County real estate headlines!

REAL ESTATE NEWS

Well, once again the newspaper has a headline blasting more negative news about our real estate market, and once again it's misleading.  Ugh!  As I explain later in this post, if such reporting continues, every homeowner in Clark County is at more and more at risk of being negatively impacted by it.  By becoming more educated and able to better recognize what information is applicable to our local market and what information is not, and, if you are thinking of buying, by getting out and actively participating in our currently very advantageous buyer's market, we can turn things around rather than let them get worse.  Increased demand will inevitably lead to a more balanced market, and that would be to everyone's benefit. 

Yesterday's article in The Columbian business section had a headline "County home sales, prices decline" and reported that "home sales remained soft in January and prices showed continued erosion."  Yes, homes sales have been very slow, more so than the normal slowdown in January and other winter months.  The article further says that there was a 7% decline in the median price this January relative to January, 2007, from $263,900 to $245,383, reflecting the lowest median price since the mid-1990s.  (That was a bit confusing, since a chart in the article indicated the median home price in January 2004 was $199,250.  A typo?)  (Source: The Columbian, 2/11/08)

To the author's credit, this article did for once clarify that the figures used, from appraisers Riley and Marks "benchmarks," include new construction as well as pre-owned homes.  But because the figures in the newspaper article are skewed by the inclusion of new home construction, they are misleading for the average Clark County homeowner or home buyer.  Also, something the article didn't say and should have is that the median price means nothing regarding prices declining.  All it means is that the houses that happened to be the ones that sold in January were priced so that the mid-price between all of them, or median price, was a certain amount.  Despite what the article infers, the median price is not an accurate indicator of home values. 

Further, not mentioned in the article are the very different and also very accurate figures reported by the local multiple listing service, the RMLS, which records all sold homes that are listed for sale.  Most new subdivision construction as well as many For-Sale-By-Owners are never listed in the RMLS, which has data more reflective of the sales of pre-owned existing homes.   The RMLS results for January will present a different, likely more positive picture than the Riley & Marks "benchmarks" figures because of this difference.  Unfortunately, they have not yet been released; as soon as they have been, I will post them both here and on my website, MoveToSWWA.com.

It is very important to note that comparing the sales of new construction to pre-owned homes is like comparing apples and oranges.  Market prices for pre-owned homes are determined, if done correctly, by very carefully comparing recent nearby homes sold in terms of age, location, lot, size, quality, features, upgrades, and key sales transaction factors (e.g., buyer's closing costs or repair costs added to the price for financing, seller's circumstances and motivation, whether or not a lender or estate was involved, etc., all of which can effect the final price significantly).  A market price should not be set, and then be followed by adding on selling costs (e.g., commission, excise tax, etc.) or any other seller's "needs," since doing so almost inevitably results in setting too high a price for the current market.  

Builders do not price their homes by using pre-owned home sales comparables.  They price new subdivisions like products, with costs determined and profit margins added on.  Their comparables are other similar new homes and lots, and the pricing is based on what buyers in the current market are seen as willing to pay for such new construction.  Further, builders pre-sell homes at their determined prices prior to even beginning constuction of the homes.  They also complete construction on a large inventory of unsold homes for buyers to choose from.  When the market was "hot" (e.g., 2003 - 2005) there was a building frenzy because buyer demand in Clark County was greater than supply -- pushing prices up -- as homebuilders worked to stay ahead of the game.  But when the market slowed and supply of buyers dwindled, they were left "holding the bag," or should I say "inventory," and all the costs of maintaining it.  As a result, subdivision builders have had to offer both enticements to buyers, such as plenty of free upgrades instead of charging for them, as well as slash their home prices and their profit margins in order to sell off their inventories.  Including these price reductions in figures for home sales has some value but distorts the picture considerably for the average Clark County homeowner. 

Finally, the Columbian article states that prices rose 32.4% in Clark County over the three-year period 2004 to the start of 2007.  I know locals think 32.4% reflects a wildly high increase, but this kind of rise actually indicates a healthy "seller's market," nothing like the overly inflated price hikes seen in much of California, Nevada, Florida, and some other areas now very hard hit by falling prices as their real bubbles deflate.  We need to remember that all real estate is local and stop uncritically listening to and parroting the reports and forecasts of all the so-called "experts" out there.  We have our own local experts!        

Feb. 7, 2008 - It's nice to read some GOOD economic news!

REAL ESTATE NEWS

I was pleased to read an article on Realty Times website today -- Real Estate Outlook:  Economy is Growing by Kenneth R. Harney -- that was not all doom and gloom about the national economy and housing market.   

Harney rejected the idea that we are now in a recession, as some have thought, and pointed out some key reasons for this view.   He sees the U.S. economy as growing, though slowly.  More than one million new jobs were added during the past 12 months, and while there have been some ups and downs, the net gain is significant.  Exports, too, have risen significantly, reported at 7.7% for the past 12 months.  Real after-tax household income, he states, increased 1.1 percent last year, not much, but better than the drop normally seen in a real recession.   

He also sees signs pointing to improvement in the housing market.  First, at the same time that, in many areas, home prices have rolled back to where they were in 2003 and 2004, interest rates have remained very low, a combination of factors which at last seems to be bringing out new buyers and stimulating the market.  Secondly, legislation is expected soon to make lower-cost financing available to homebuyers in higher-priced markets such as our's by raising the mortgage limits for Fannie Mae, Freddie Mac, and FHA financing programs.  This should offset some of the deal-killing effects that recent higher rates on jumbo loans (over $417,000 at present) have had on some in our local market.  Nationally, according to an independent economist with the National Association of Realtors, this should translate to nearly 348,000 added home sales during the next twelve months.  

That sounds good to me! 

How does it sound to you?  Do you have any thoughts you'd like to share?  Please post a comment below.  I also welcome any questions you have, or would be pleased to assist with your real estate needs at any time.  Just email me at carolsundstrom@cbseal.com or phone me at (360) 449-4364 or (360) 513-5067. 

-- Carol Sundstrom, M.A., ABR, e-Pro, and Your Guide to Good Living in Clark County!  Coldwell Banker Barbara Sue Seal Properties, University Branch @ Salmon Creek, Vancouver, WA

Feb. 6, 2008 - Improving Market Expected for New Construction in Clark County, WA!

REAL ESTATE NEWS

New home builders have been especially hard hit by the slowed Clark County real estate market over the last few years.  While pre-owned existing homes have continued to show at least a small amount of appreciation (averaging 1.7% in 2007), new construction has had a more difficult time of it.  After the building frenzy of our recent "hot" market years, Clark County home builders have experienced a housing slump not seen since the 1980s. 

Builders with large inventories of unsold homes have been trying everything to get their homes sold, from offering lots of free upgrades and other incentives to homebuyers to giving higher than normal commission splits to real estate agents as an enticement for them to bring buyers to see their homes.  Builders have also had to mark down their prices to unload their standing inventory, and have held off on starting any additional new development.  Home building in Clark County dropped 19.7% in 2007, with permits to build new single family homes down to 1245 permits in 2007 compared to 1551 in 2006 and 2142 in 2005, when the market was at its peak.  

The good news, according to local Building Industry Association executive director David Roewe, is that we've probably seen the worst of it and bottomed out so that a recovery is now on the way.  As local buyers realize there is no bubble deflating in Clark County and see the opportunity available to them now to purchase a home at a price, terms, and interest rate to their advantage, home sales should pick up.  Roewe, like other local real estate and local economy experts, expects the market to gradually improve as 2008 proceeds.  It may well be a long while before we see the kind of "hot" seller's market we saw in 2003 - 2005, but we can expect more normal, balanced market conditions that can be of benefit to everyone (Columbian e-news briefs, 1/11/08). 

Do you have any thoughts to share regarding the new home construction market in Clark County?  You are welcome to post your comments below.   Also, if you have any questions or real estate needs that I may help you with, you are always welcome to contact me by email at carolsundstrom@cbseal.com or by phone at (360) 449-4364 or (360) 513-5067.

-- Carol Sundstrom, M.A., ABR, e-Pro, and Your Guide to Good Living in Clark County!  Coldwell Banker Barbara Sue Seal Properties, University Branch @ Salmon Creek, Vancouver, WA.   

Jan. 29, 2008 - Hot Off the Press: Annual Local Real Estate Market Review!

REAL ESTATE NEWS

Hot off the press is my annual Clark County real estate market review, including an overview of the local real estate market over the past year, discussion of current market conditions, and initial projections for the year to come. 

If you'd like to receive a copy of this full-color newsletter by e-mail or by postal mail, telephone me at (360) 449-4364 or (360) 513-5067 or email me at carolsundstrom@cbseal.com. 

-- Carol Sundstrom, M.A., ABR, e-Pro, and Your Guide to Good Living in Clark County! Coldwell Banker Barbara Sue Seal Properties, University Branch @ Salmon Creek, Vancouver, WA.   

Nov. 18, 2007 - Media's Misleading Reporting Continues to Drive Market

REAL ESTATE NEWS

First, the facts: The most recent statistical report from the Regional Multiple Listing Service (RMLS) for Clark County, WA (including Vancouver and all surrounding communities), shows the median sale price in October, 2007, was $252,000, which reflects a 1% increase over the median sale price in October, 2006, of $259,900. The RMLS reports have shown a slight decrease each recent month in the appreciation percentage for the median home price, but, unlike some other reporting, it has still shown an increase in median price rather than a decrease. While new listings dropped 4% this October vs. October, 2006, closed sales decreased by 27%, reflecting the serious lack of buyers actively in the market this year. The local newspaper, The Columbian, reported on 11/17/07 slightly different numbers provided by appraisers Riley & Marks, who indicated a 7.5% decrease in the median home price this October over last, from $265,000 to $245,000. This difference is likely largely due to the Riley & Marks figures including all new home construction, most of which is never listed on the RMLS, and which involves a builder pricing process different from determining the market value of existing pre-owned homes.  Also, the Riley & Marks figures include all homes sold For-Sale-By-Owner, while the RMLS data includes only those FSBO sales in which an agent participated representing the buyer. I don't think these figures show that the sky is falling, so to speak, in Clark County. They may indicate that FSBO sellers did not fare as well in terms of selling price as did homeowners who worked with real estate professionals.

Like all others who are truly knowledgeable about our local Clark County real estate market dynamics, I am so tired of the media reports on the "subprime nightmare" or "foreclosure crisis" (or whatever words they use to sensationalize their reporting) that are supposedly wrecking havoc even in our own backyard. There it was again on the front page of yesterday's local newspaper, The Columbian (11/17/07): "Area home sellers ready to bargain" and "Real estate report shows sharp drop in selling prices." Well, how does that jive with reality? We've been in more of a buyers' market, with buyers able to negotiate to their benefit, for some months now, and with the lack of buyers on the market, it's true that sellers, if they had to sell, have been increasingly squeezed in the process. That's true. But have home values gone down? Not according to the recent tax assessments sent out to homeowners throughout the area! Nor according to the RMLS data!

Inside the article they quote an economics professor at the University of Oregon, Tim Duy, as saying, "It looks like sellers are finally yielding...If prices are dropping, that's got to be what's going on." Hmmm. The University of Oregon? An economics professor? Is he an expert on residential real estate? On the Washington market? I doubt it. I can't help but think of all the misleading or utterly wrong information that has been dished out on the national news by financial experts who apparently can't tell the difference between investing in the stock market and investing in real property. And further, all real estate is local. If The Columbian or other local media, including television, want to report on our local Clark County real estate market, they should seek out only local, or at least Washington, experts. To their credit, The Columbian does often report data obtained from the very good Vancouver appraisal firm, Riley & Marks. But it is the interpretation of the data and tendency to generalize reports of the problems in other parts of the country, thus providing misleading information, that has been problematic in terms of the effect on our local market conditions. Television reporters have been the worst offenders. Just last night, on PBS's NOW, there was another story which failed to make any distinction between one area of the country and another. Vancouver and Clark County are not Mineapolis!

However, there is a potentially good impact that could come from this reporting for once; this weekend's story in The Columbian might actually bring out buyers, and that's what we've needed for months now! Indeed, nearly every other story to date has only served to discourage buyers, to just plain scare them away from buying. Over and over again we real estate professionals have had potential buyers tell us that because of what they've been reading and hearing on the news, "We're just waiting until the prices fall further." They're sitting on the fence rather than taking advantage of the still very low interest rates and increased negotiating power they would have because we have been in a buyers' market. Or they've said, "We've heard we can't get a loan any more," or they worry that some catastrophe will befall them if they do take out a mortgage at this time. Not so!

Well, thanks to the media, we now do, at least to a degree, have a "self-fulfilling prophecy." Rather than maintaining a very slow but steady local real estate market, probably just slightly leaning towards a buyers' market (as our local economic factors and other fundamentals, distinguished from other parts of the country, have continued to show appropriate for us), our reticent buyers have now lived into their expectations as reality, no longer as if. Now, these are great conditions for buyers, and hopefully they start realizing that, because these conditions will not last forever. History shows that hot sellers' markets are usually followed by shorter (usually one- to two-year) buyers' markets, so now is the time to buy! And further, there are plenty of loans available! The sub-prime mortgage market is and has been only a small percentage of the total mortgage market, even less so here in Clark County, and only a limited portion of the sub-prime mortgagees are having trouble. So don't assume there won't be a home loan for you. Ask!

For those who have no choice but to sell during this time, however, these circumstances are unfortunate. Market prices have been falling not because of big drops in home values, but because those who have had to sell for one reason or another have been forced to drop their prices due to the lack of buyers in the market. It's been quite a while now since the normal price adjustments occurred on homes that were too aggressively priced for the changing market. Those price reductions were warranted, especially in some over-priced subdivisions where this area saw, I think, many of the worst abuses of the sub-prime mortgages. (See my last Real Estate News post regarding our low foreclosure rate). Now, with the "hot" market days long behind us, the price reductions we are seeing have everything to do with the simple law of supply and demand. There have been far more listings than buyers. Thank you, media folks. I really believe that more factual reporting of what has actually been going on in our local market, and how local economic factors supported a better market than in most other parts of the country, could have prevented these conditions. Hopefully, as more buyers come into the market and the available inventory of homes is sold off, things will level off more and we will see more positive conditions for everyone.

Do you have some comments you'd like to share about the local real estate market, Just post a comment!   Or would you like to ask a question?  Feel free to contact me at carolsundstrom@cbseal.com or phone me at (360) 513-5067.

--Carol Sundstrom, M.A., ABR, e-Pro, and Your Guide To Good Living in Clark County! Coldwell Banker Barbara Sue Seal Properties, University Branch @ Salmon Creek, Vancouver, WA.

Nov. 1, 2007 - Turnaround in Housing Market Projected for 2008

REAL ESTATE NEWS

At the National Association of Home Builders Fall Construction Forecast Conference at the end of October, participating economists indicated that they expect the housing market to begin to turn around in 2008. Based on his expectations of skillful monetary policy management by the Federal Reserve, solid growth in employment and personal income, and improved mortgage market functioning, David Seiders, Chief Economist for the NAHB, projected that if the housing inventory stabilizes and home sales bottom out by the end of the first quarter of 2008, new home starts will then be up in the third quarter of the year. Managing Director and Chief Economist for UBS Investment Bank, Maury Harris, similarly projected things will bottom out in the first half of 2008 and begin picking up as the second half of the year progresses.

The economists pointed out that, except in specific parts of the country which have been hit hardest by the housing downturn and subprime mortgage woes and where the economies have been and are expected to be weaker -- including Arizona, southern and central California, Florida, Nevada, the Boston and Washington, D.C. metro areas, coastal areas in New Jersey and the Carolinas, and the industrial Midwest -- the housing market has been undergoing a gradual correction and home prices have actually been holding up fairly well.

As I have mentioned in some of my earlier posts, in many areas like our Clark County, WA, region, much of the real estate market downturn has been media-driven and perceptually rather than factually based. Michael Moran, Chief Economist for Daiwa Securities America, Inc., agrees, speaking at the conference of the "negative spin" that has characterized the media's "exaggerated" and "sensationalized" reporting on the housing market. He pointed out that better quality prime lending makes up as much as three-quarters of the total national mortgage market, while sub-prime lending constitutes only 13.5%, and of that 13.5% only about 3% is problematic. (Source: NAHB Online Newsroom, October 26, 2007)

Obviously, contrary to what the media has so frequently been telling us, the sky is not falling and there is no reason to get alarmed. In fact, it is a great time to buy in Vancouver and other parts the nearby region, and nothing would stimulate the local market more for 2008 than increasing numbers of home buyers realizing there are very good reasons to buy a home in Clark County at this time.

Feel free to share your comments about the real estate market or to contact me to learn more by email at carolsundstrom@cbseal.com or by phone at (360) 513-5067.

-- Carol Sundstrom, M.A., ABR, e-Pro, and Your Guide To Good Living in Clark County! Coldwell Banker Barbara Sue Seal Properties, University Branch @ Salmon Creek, Vancouver, WA.

Oct. 27, 2007 - Washington's Foreclosure Rate Is Less Than 1%!

REAL ESTATE NEWS

With all the hyper talk going on these days about foreclosures it may come as a surprise to you that, in reality, less than one percent of mortgages in Washington state end in default. That's about the same rate of foreclosures in the state 10 years ago, and well under the national average. The Mortgage Bankers Association (MBA), which tracks data on the approximately 44 million mortgages in the U.S., has reported that as of June, 2007, Washington's foreclosure rate was at just .49%, which is 65% better than the national rate of 1.40% in June, 2007.

In fact, foreclosure rates in Washington have been steadily going down, even amidst all the recent upheaval in the subprime mortgage markets. According to the MBA's ranking of states, Washington is #47 in delinquencies and #49 in foreclosure inventory. Non-prime loans, which includes FHA loans as well as subprime mortgages, make up only 15% of all mortgage loans made in Washington.

The national scene, too, is not as bad as it may appear. Thirty-four states have actually had decreases in their rates of new foreclosures, and most others have had only small increases. The national numbers have been distorted by higher foreclosure rates in just four states: California, Florida, Nevada, and Arizona. The problems in these states have been worsened, too, by their much higher rates of non-owner occupied properties in default, since such investors are more willing than live-in homeowners to default on their loans. (Source: Washington Realtor News, Nov-Dec 2007)

Feel free to share your comments about the real estate market or to contact me with your questions at carolsundstrom@cbseal.com or by phone at (360) 513-5067.

-- Carol Sundstrom, M.A., ABR, e-Pro, and Your Guide to Good Living in Clark County! Coldwell Banker Barbara Sue Seal Properties, University Branch @ Salmon Creek, Vancouver, WA.

Sep. 16, 2007 - Five Washington metro areas among nation's top 20 in appreciation!

REAL ESTATE NEWS

More good news about real estate in the Pacific Northwest! In a report issued at the end of August by the Office of Federal Housing Enterprise Oversight, five Washington metro areas were among the top 20 in the nation for home value appreciation during the twelve months ending June 30, 2007. Many may be surprised to hear that Longview, just a half hour or so north of Vancouver, was #6 on the list of 287 metropolitan areas nationwide! The one-year appreciation rate reported for Longview was 13.6%. Wenatchee came in at #1 with a stunning 23.54% increase over the past year. Also among the top 20 were Seattle-Bellevue-Everett (#17, 9.89%), Tacoma (#19, 9.34%), and Spokane (#20, 9.30%). The only Oregon city on the list was Salem (#8, 11.98%). (Source: The Seattle Times, 8/31/07))

Any comments or questions?  Feel free to post a comment below or to contact me at carolsundstrom@cbseal.com or by phone at (360) 513-5067. 

-- Carol Sundstrom, M.A., ABR, e-Pro, and Your Guide to Good Living in Clark County! Coldwell Banker Barbara Sue Seal Properties, University Branch @ Salmon Creek, Vancouver, WA.

Sep. 16, 2007 - For at least some delinquent borrowers, FHA may come to the rescue.

REAL ESTATE NEWS

While most of those who may be threatened with foreclosure as a result of their rates going up on their adjustable-rate mortgages may not be able to qualify, a new Federal Housing Administration bailout plan called FHASecure is expected to be able to help around 60,000 borrowers who are delinquent in their payments but still seen as creditworthy. These homeowners will be able to refinance to FHA-insured fixed rate mortgages. Restrictions apply, however:

• The homeowner must have an ARM loan and been making payments on time until the rate was reset and the monthly payment went higher.
• There are limits on the size of loan allowable, so homeowners with higher cost homes will not be eligible.
• Borrowers must have a minimum of at least 3% equity in their homes.
• They must not owe more than their homes are worth.
• The deadline for application is at the end of 2008.

The FHA is not a lender. They insure loans, and have an approved list of lenders. In 1934, during the housing crisis following the Great Depression when there were more severe yet somewhat similar market dynamics and lending practices to today's, the Federal Housing Authority was created to reduce lenders' risk in making home loans and thus encourage more lending. They did so by insuring mortgages, which they continue to do today. FHA loans were more common up until the 1990s, when "piggyback" and uninsured subprime loans started becoming popular. Now it's likely that we will see many more new FHA loans as well as the FHASecure refinancing. If you are not buying in a jumbo loan range (over $417,000), I recommend you talk to your lender or mortgage broker about FHA financing. Note: Restrictions above are for the FHASecure refinancing program; ask your lender about requirements for new FHA financing. (Source: Bankrate.com, 9/13/07)

If you have questions to ask about financing the purchase of a home or refinancing your current home mortgage, I would be happy to connect you with several good, reputable lender representatives who can be of help to you.  Just email me at carolsundstrom@cbseal.com or phone me at (360) 449-4364 or 513-5067.

-- Carol Sundstrom, M.A., ABR, e-Pro, and Your Guide to Good Living in Clark County! Coldwell Banker Barbara Sue Seal Properties, University Branch @ Salmon Creek, Vancouver, WA.

Sep. 16, 2007 - Fewer and fewer lenders still at risk due to lending practices.

REAL ESTATE NEWS

Findings from a recently released study, "The Mortgage Credit Crisis," done by SMR Research Corp. show that while some of the nation's largest mortgage lenders might still be a little shaky as a result of having engaged in risky underwriting practices, most of those with high risk are now closed or partially closed, sold, or bankrupt. The study looked at 163 of the nation's largest mortgage lenders and assessed them against six measures of credit risk, scoring each lender's results against an average score of 1000. The highest risk group, scoring over 1750, are the ones mostly gone.

Results for lenders that scored between 1300 and 1750 have been mixed, and those between 1000 and 1300 were seen to be at some potential risk for problems due not to poor lending practices but rather to "financial panic." On the other hand, eight of the ten largest US mortgage lenders received low risk scores. These lenders appear to have held to fairly high credit standards during the period when the most risky underwriting occurred (2004-2006).

Among the ten biggest lenders, HSBC Bank had a score of 1444, which was the highest risk level in the group, and Bank of America scored 465, the lowest risk score. Countrywide Financial scored 1016, which was just above average risk and the second highest score among the big ten. "The companies whose underwriting errors caused their own demise are largely gone or are well-known to be among the 'walking wounded' ... But the industry crisis won't end until investors regain confidence and home prices stabilize," said Stuart A. Feldstein, SMR President. (National Realty News, August 29, 2007)

Needless to say, that will happen a lot faster if the media would stop issuing sensational headlines and generalized, often inaccurate information that scares people away even from what have been fairly normal and secure markets such as we have had in our region (see my earlier 2007 posts). News reporters need to realize that in real estate, everthing is local, even if some economists and other supposed real estate experts don't always remember that!

If you have any questions about home financing or refinancing in today's market conditions and would like to be directed to some knowledgeable, reputable lender representatives who can answer them and provide any information you need, just give me a call at (360) 513-5067 or email me at carolsundstrom@cbseal.com and I will be happy to provide you contact information for some good people. 

-- Carol Sundstrom, M.A., ABR, e-Pro, and Your Guide to Good Living in Clark County! Coldwell Banker Barbara Sue Seal Properties, University Branch @ Salmon Creek, Vancouver, WA.

Sep. 12, 2007 - Rising Housing Costs in Washington State

REAL ESTATE NEWS

Higher Prices, But Locally, It's A Great "Buyer's Market"!

Reports of Washington's rising housing costs have been all over the local news lately. An article in The Columbian (Nicholas K. Geranios, AP writer; 9/12/07) reported that the US Census Bureau released data on Wednesday showing that in the 16-year period from 1990 to 2006, the median price of a home in our beautiful state rose a whopping 187% in comparison to the national average 136% increase for the same period. In the past ten years alone, home prices rose 81%. According to the Washington Center for Real Estate Research, the median priced home statewide for the first quarter of this year, 2007, is priced at $300,800. That's far beyond the range of the buyers with median incomes at or near the $57,000 figure reported by the Office of Financial Management for the same period. (Washington REALTOR News, August 2007). We'd have to see a major decline in home prices for this affordability gap to close.

THE LOCAL VIEW: So far, however, our local market data, at least for the twelve-month period months ending with July, is still showing a modest increase in both the median price (up 3.9%, now $264,900 vs. $255,000, 7/31/06) and average sale price (up 4.7%, now $307,700 vs. $293,900, 7/31/06)(Source: Regional Multiple Listing Service [RMLS], Report for July, 2007). Only in the the past few months has the median price been slightly lower than for the same month a year ago, but this may be largely a reflection of the fact that the homes that are selling this year have tended to be in lower price ranges (under $350,000, for example) much more often than in higher price ranges for which there have always been fewer buyers for higher priced homes , and now there may be even less, since loans are now more difficult to come by for even these buyers due to changes in jumbo loan ($417,000 or more) underwriting, including higher interest rates.

Yes, we are seeing a lot of price reductions right now in Clark County, especially in higher priced homes, though this may change if we don't see more active buyers come out to take advantage of the still low interest rates. These price declines result, unfortunately, more from misperceptions about the real estate market that most area real estate professionals believe are largely media-driven. All the gloom and doom news over the past year about real estate, etc -- nearly always failing to differentiate between other negatively impacted parts of the country and our more positive local market conditions! -- has led many, if not most, potential local buyers and sellers to hold back from pursuing their real estate goals at this time. If this continues, the result may just be a self-fulfilling prophecy, as homeowners who must sell find themselves in stiff competition for the very few buyers out looking and thus end up offering bigger price reductions or concessions than would be required in what should be a more normal and balanced market. Buyers are reading the news, too, and what they are reading -- all that stuff about a bubble bursting, etc. -- is not always particularly, if at all, accurate for our area. But that is not usually at all clear in the reporting. As a result, they are expecting significant rewards for their hard-bargaining efforts, and as long as there are so few buyers in the marketplace they may well get the results they are hoping for.

The real news, then, is that it is a great time to buy a home in Clark County! Interest rates continue to remain low, hovering close to 6%, and sellers are often highly motivated. Of course, with our very modest appreciation rates -- so different from the "hot market" we recently emerged from -- this is not the time to buy speculatively or with a goal to "flip" a property for quick profit. But it is definitely a time to buy a home to settle down in, where you can grow your family or relax and enjoy your sunset years. And Clark County is an absolutely wonderful place to do so! And while it's true that the current subprime lending crisis has meant that credit-challenged and otherwise hard-to-qualify buyers are for the time unable to realize their real estate dreams, there are plenty of good loans available for average, well-qualified folks.

Feel free to post a comment below and share your thoughts about our local real estate market.  You can also contact me at any time if you would like to know more about local market conditions -- perhaps regarding your own specific neighborhood -- or want a referral to a few good, reputable lenders. You can always just use me as a resource for information, even if you aren't now thinking of buying or selling.  Email me at carolsundstrom@cbseal.com or call me at (360) 513-5067.

-- Carol Sundstrom, M.A., ABR, e-Pro, and Your Guide to Good Living in Clark County! Coldwell Banker Barbara Sue Seal Properties, University Branch @ Salmon Creek, Vancouver, WA.

Jun. 29, 2007 - National Real Estate Picture Not A Happy One!

REAL ESTATE NEWS

In a story this week by Rex Nutting (MarketWatch) real estate markets in much of the nation continue to post glum news. During the twelve months from May 1, 2006, to April 30, 2007, home prices reportedly dropped faster than at any other time in the past sixteen years (Stardard & Poor's Case-Shiller home price index, 6/25/07). The heated market of recent years is definitely gone. Nationally, while prices have doubled since the year 2000, appreciation has been slowing down for the last seventeen months. That's the general picture for the country as a whole.

But the good news is that in the Portland-Vancouver Metro Area and other major cities of the Pacific Northwest, prices continue to rise, albeit slowly. The list below is a sampling from the Case-Shiller report, and shows both Portland and Seattle.

1. Portland: up 1% in April, up 6.4% year-on-year.
2. Seattle: up 1.3% in April, up 9.6% year-on-year.
3. Minneapolis: down 0.5% in April, down 2.9% year-on-year.
4. Los Angeles: down 0.5% in April, down 2.6% year-on-year.
5. San Francisco: up 0.2% in April, down 2.8% year-on-year.
6. San Diego: down 0.3% in April, down 6.7% year-on-year.
7. Las Vegas: down 0.9% in April, down 3% year-on-year.
8. Phoenix: down 0.8% in April, down 4.5% year-on-year.
9. Charlotte: up 1.2% in April, up 7% year-on-year.
10. Dallas: up 0.5% in April, up 2% year-on-year.
11. Miami: down 1.2% in April, down 1% year-on-year.
12. New York: down 0.2% in April, down 1.5% year-on-year.

(RISMedia, June 28, 2007)

If you have thoughts to share about the real estate market, feel free to post a comment below!

-- Carol Sundstrom, M.A., ABR, e-Pro, and Your Guide to Good Living in Clark County! Coldwell Banker Barbara Sue Seal Properties, University Branch @ Salmon Creek, Vancouver, WA.