Optimism is seeping its way back to the market. Today stocks soared after news of an improving housing market and the finalization of the Treasury plan to buy toxic assets. With housing it was really a sign that sales have picked up. In fact it was the biggest month to month gain since July of 2003. The percentage gain was much higher than expected. For a quick reference to these statistics I have included a few articles below:
The Fed announced today that they plan on buying $300 billion in Treasury Securities in an effort to bolster housing. The goal in doing so; as said after a unanimous vote in Washington today was;
“To provide greater support to mortgage lending and housing markets, the Committee decided today to increase the size of the Federal Reserves balance sheet further by purchasing up to an additional $750 billion of agency mortgage- backed securities,” the Federal Open Market Committee.
Jim Cramer the well know CNBC guru told his audience tonight “Ladies and Gentlemen, its time to buy a house”. Cramer known for speaking his mind and often voicing his opposition to the current administration commended the Fed today on their decision to put the country first. He said “Bernanke has single-handedly created the 4% mortgage rate”. A rate that is needed to boost a lackluster housing environment.
I spoke with a business partner of mine today and he had a very simple way describing the outcome of todays events “these rates are a Godsend”. I guess at this point, the question may be; what else are we waiting for?
Bellora located at Elliot and Clay is still recognized as one of Belltown’s best. Well managed, sound building, great location and wonderful amenities.
Built of concrete and steel in 2003, Bellora is comprised of 93 units on 13 floors. Amenities include, concierge service, disabled access, secured building, secured parking, elevator, fitness facility, high speed internet and a fabulous 5th floor community terrace.
Units at Bellora range from studio to penthouse and offer 500 to 1,800 square feet.
PROJECT INFO AND UCS GRADE
|BELLORA CONDOS||INFORMATION||UCS PROJECT GRADE||GRADE|
|ADDRESS||2716 Elliot Ave, Seattle||LOCATION||A-|
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Mark-to-Market accounting also know as “fair-value accounting” is hurting our economy. When asset prices start to fall, mark to market accounting means that banks feel pressure to loan less, to make sure their liabilities aren’t greater than their assets. Fortunately on Thursday this issue will be discussed in a House financial services subcommittee.
Some of you may be asking why this is relevant to real estate; feel free to e-mail or call me to discuss.
Visit any sales center in the city and you will probably know what I’m about to tell you. Developers are giving away concessions at will. Yep; you heard here. There is absolutley, positively no reason to sit on the fence any longer. Why would you? It is impossible to time the market anyway. A full 6% credit from a developer on a FHA approved product allows you to buy down your rate, pre-pay home owners dues for up to 2 years and will cover your closing costs. What that means to you is that you ONLY have to bring in your 3.5% down payment and you have just purchased a new home.
Just last week, my team successfully negotiated a one-bedroom Belltown unit down $50,000 dollars with a combination of purchase reduction and seller concessions. This particular unit was an 18% discount off the original asking price. The buyer locked in a 4.50% rate and he was also rewared with 18 months of pre-paid home owners dues. Bottom line is; the Sellers are recoginizing the impact of a “buyers” market. We have the choice to carve out the benefits of this remarkable opportunity. We can fight our fears with action, or miss this opportunity while waiting for everyone else to purchase so that it validates our decision. Here are a few reasons why I am supporting a purchase in todays market.
1. Interest rates are the lowest we’ve seen in 30 years and maybe the lowest we’ll see in our lifetime.
2. Fed chair Ben Bernake predicted this week that we’ll climb out of this recession by
the second half of this year (he’s wicked smart).
3. Prices are back to early 2006 numbers
4. Developers are offering incredible incentives to move their inventory.
5. For an FHA approved unit up to $506,000 you can put as little as 3.5% down.
For years, I had to represent clients paying full price for new construciton. Not anymore. Now its the buyers turn to reap the rewards…….The question is; for how long?
Please feel free to e-mail with any questions firstname.lastname@example.org