I hope and trust this letter finds you well!

Amidst all the uncertainty and negative press surrounding the national economy, I’ve had a number of calls from my clients concerning the tumultuous real estate and mortgage markets. As such, I wanted to take a few moments to address some of these concerns and shed some light on the reality of the situation and the Tri-Cities local market.

The Real Estate and Lending industries are in fact going through a necessary correction. The industries became saturated with fly-by-night companies looking to make a quick buck without offering any real value.   I want to assure you that I am still practicing Real Estate and have no plans to veer from my path of providing ongoing, consultative service to you and your referrals.   Real Estate has always been and will continue to be not only my profession, but my passion. 

Contrary to numerous reports in the media, mortgage funds are still readily available.   The credit markets are tight, but it has yet to have any real significant impact on the availability of mortgage financing. Although 100% loans are all but gone, 3% down loans are still readily available, even for buyers with less than perfect credit. Most of the reports you are hearing about the rapidly disappearing mortgage products have to do with loan programs that were very common in the nation’s coastal areas.  

It’s a great time to purchase real estate. Motivated sellers and extremely low interest rates (slightly under 6.0% for a 30 year fixed rate mortgage as of the writing of this letter) this truly is a wonderful time to move-up or purchase a vacation home. For first –time home buyers there is a window of opportunity that has never before existed to take advantage of a $7500 tax credit! I like to call this the “perfect storm” of opportunity. If you know anyone who is even considering purchasing a home, especially first-time buyers, please let me know!

If you have an adjustable-rate mortgage now may be the WORST time to refinance to a fixed rate.   Adjustable rate mortgages are tied to a specific index that changes with the ebb & flow of economic conditions. If your ARM is tied to the 1-year treasury you may be in line for a rate reduction! On the other hand, if your ARM is tied to the LIBOR you may be in for a significant increase. Regardless, my suggestion is to consult you’re your mortgage professional for an audit.   As I mentioned earlier, many mortgage professionals have left the industry. Those who are “left standing” are likely the professionals. If you need a referral to a highly qualified professional mortgage planner please give me a call. 

Interest rates may be on the decline in the next few months. Economic conditions are ripe for improvement. Interest rates can and do move swiftly so it is imperative that your mortgage professional have an active management system in place to notify you of market conditions. Again, if you need a quality referral please give me a call. 

Real Estate Market is Strong . Due to all the negative press about Real Estate and the financial challenges the housing market has weakened from 2007 (the best year in ever in Tri-Cities), but not collapsed.

The latest figures suggest 2008 will be the 5^th best year ever. Median prices slipped, but only by 0.6 percent (to $163,600). Sales volumes fell 23 percent, but that's better than the state average (down 32 percent) and after a record breaking year. And while housing starts may be grinding to a halt on the Pasco side of the river (Franklin County building permits fell 39 percent), they're noticeably stronger on the Benton County side, down only 6.8 percent from 2007's very strong totals.

Local Economy one of the best in State. The Tri-Cities lead the state in job growth again in the most-recent report, adding 2,600 jobs for a growth rate of 2.8 percent. Benton County's 5.5 percent jobless rate was one of the lowest among Washington's population centers.

Remarkably, the Tri-Cities are one of the few places where construction employment continues to grow. Contractors added 400 people to their labor forces over the past year, for 5.7 percent growth.

Thanks again for allowing us to serve as your Real Estate professionals. We take this relationship seriously and appreciate your trust. If there’s anything I can do to serve you please let me know.

Referrals are the lifeblood of my business, so if you know anyone who would benefit from my input please let us know!