Foreclosures Increase 25 Percent

RealtyTrac reported last week that the number of homes entering the foreclosure process increased by 25% compared to January 2006. A total of 1.2 million homes entered the foreclosure process in 2006, 42% more than 2005.

These are staggering numbers and are due mostly to borrowers taking out adjustable rate mortgages with low teaser rates and then not being able to afford the payments when the rates increase.

Do you own a home in King or Snohomish County and are facing a possible foreclosure? Often, there are options that can avoid foreclosure or minimize the damage. Your home may have appreciated enough to be able to sell and get out from under the debt. Your mortgage company may be willing to participate in a short-sale, or there may be a refinancing option that will lower your payments.

Banks and mortgage companies don't want to foreclose. Foreclosure is an expensive process and lenders are not in the business of owning real estate. Often, you just need to know the right questions to ask and the right people to ask them to. So, give me a call, 425-308-3669. Myself and a reputable lender will be glad to talk with you and help in any way we can.

Washington Housing Market Expected to Rise in 2007

"After bottoming in the fourth quarter of 2006, existing-home sales are expected to rise through 2007 and into 2008, while new home sales should turnaround by summer, according to the latest forecast by the National Association of Realtors." Our local real estate markets in King and Snohomish counties fall in line with the latest NAR forecast.

Active listings in King County increased by 1,330 homes or 24 percent compared to the same time period in 2005. Year end figures show a 34 percent decrease in home sales compared to 2005 figures. Whereas, sales in December decreased by only 18 percent, indicating the worst is over and the market is improving.

The average market time in December increased by 31 percent from December 2005, while year-end market times increased only 5 percent.

Even though the number of sales were off in 2006 compared to 2005, King County experienced double digit apprecation. The average sales price was 13 percent higher in 2006 than 2005 with an averages sales price of $462,562.

Snohomish County statistics look very similar to King County. The number of active listings increased by 34 percent from December a year ago. December sales decreased by 206 homes or 15 percent, but year end sales decreased by only 5 percent.

December market times increasing 29 percent or 14 days, while year end statistics show an increase of only 2 days or 5 percent.

The average sales prices in 2006 increased by 15 percent compared 2005, increasing to $378,284.

Statistics compiled by the Northwest Multiple Listing Service and are deemed accurate but not warranted.

Realtors "Hill Day" Next Week

Washington REALTORS®' Legislative Day, when hundreds of REALTORS® will converge on the Capitol grounds in Olympia to discuss ways to improve housing opportunities with their legislators is scheduled for Wednesday, January 17. I will be attending as the President of our local Board of Realtors. If you have any housing concerns or issues you would like addressed, please contact me, karen@KarensVillas.com and I will share your concerns with our legislators.

December Market Report

David Lereah, National Association of Realtors chief economist, said a fairly steady pace of home sales can be expected for the next two months. "It's important to focus on where the housing market is now - it appears to be stabilizing, and comparisons with an unsustainable boom mask the fact that home sales remain historically high - they'll stay that way through 2007." he said. "In addition, a temporary correction in prices distracts from the fact that it is primarily the number of homes sales that affects the economy, and the number for this year will be the third highest on record." How do local home sales stack up to this prediction?

Active listings in King County increased by 2,185 homes or 32 percent compared to the same time period in 2005. Sales decreased in November by 12 percent or 3794 homes. The average market time increased by 32 percent during the same time period. The average sales price is 12 percent higher than November.


Snohomish County statistics look very similar. The number of active listings increased by 35 percent from November a year ago. And sales decreased by 220 homes or 16 percent with market times increasing 20 percent or 9 days.

The average sales prices in November increased by 15 percent compared to a year ago, while the year-to-date prices are up 10 percent or $366,019.



When thinking about selling your home, be sure to give me a call. I have the market knowledge and expertise needed to help you price your home correctly thus assuring a successful sale.

Statistics compiled by the Northwest Multiple Listing Service and are deemed accurate but not warranted.

Interest Rate Freefall

Mortgage interest rates continued to fall this past week according to Freddie Mac. The Primary Mortgage Market Survey for the week ending December 7, reveals rates on a 30-year fixed rate mortgage to average 6.08 percent, down from the previous week's 6.14 percent.

"Continued signs of slowing in the housing market and weakness in the manufacturing sector helped keep mortgage rates down this week," said Frank Nothaft, Freddie Mac vice president and chief economist.

These low interest rates can make your dream of a new home for the holidays a reality. You can view all King County and Snohomish County real estate listings at WashingtonMLSSearch.com. Help yourself and enjoy.

Renovation Wizard

Americans are home improvement happythese days. This may or may not be a good thing. CNNMoney.com can help you evaluate your home improvement project and determine if is will be worth the money you will be investing. Will the improvement add value to your home or are you just throwing money down the drain.

One thing to think about when considering an improvement project is whether or not the improvement will over improve the house for the neighborhood. Does the improvement make the value of the house out of line for the rest of the neighborhood making it impossible to see a return on the cost of the improvement? The renovation wizard cannot assess the improvement in relation to the neighborhood, but an experienced Realtor who knows the neighborhood can. That experienced Realtor is me. Simply, give me a call. I am glad to assist you with your evaluation.

Home Sales Coasting Into 2007

Existing home sales are expected to coast into 2007 at roughly the same level as 2006, according to the National Association of Realtors®. Even though exisitng home sales are expected to fall 8.6 percent this year, 2006 remains third-best year on record. Our local markets look like they will be "coasting" into 2007 with fewer sales than 2005, but prices remain strong.

Active listings in King County increased by 2,516 homes or 34 percent compared to the same time period in 2005. Sales decreased in October by 11 percent or 377 homes. The average market time increased by 20 percent during the same time period.

The average sales price is 11 percent higher than October 2005 and year-to-date prices are 14 percent higher or $460,327.

Snohomish County statistics look very similar. The number of active listings increased by 27 percent from October a year ago. And sales decreased by 203 homes or 14 percent with market times increasing 31 percent or 12 days.

The average sales prices in October increased by 14 percent compared to a year ago, while the year-to-date prices are up 9 percent or $351,842.


While prices continue to increase by double digits, competition for today's market savvy buyers is fierce. Homes must be priced right and in excellent condition. I have the knowledge, experience and expertise to help sellers maximize their profits in today's market. Give me a call if you are thinking of selling your home!

Statistics compiled by the Northwest Multiple Listing Service and are deemed accurate but not warranted.