Real Estate Local: Tanked

In many areas of the country, the real estate market has slowed to all but a crawl. And although it is certainly getting slower here in the Seattle area, I think we’re still in better shape than many cities. Although, I just heard today that the home prices in suburban areas just outside Seattle and Bellevue are falling by as much as $100,000. That’s huge for a lot of people.

This is good news for buyers, actually. Even though the mortgage industry is in crisis, people might still be able to purchase homes - and even homes they couldn’t touch a year ago - because prices are now becoming more affordable. Additionally, the Fed lowering interest rates again might be helpful. I’m not sure that’s they right way to “stimulate” the economy, though, but that’s a topic for another post.

Frankly, I’ve always thought the housing prices in North King and Snohomish Counties were grossly over-inflated in the last 10 years. I’m glad to see pricing that more accurately reflects where prices likely should have been all along.

Of course, the bad news is that folks who’ve bought more house than they could afford or who have to move for job reasons and what-not, likely won’t recoup what they paid. Will those people end up in foreclosure? I think a good number of them will and many already have. They won’t really have much other choice. And that’s incredibly sad.

These are the people the Fed should be helping. I mean, the government can back the purchase of Bear Stearns by JPMorgan Chase but it’s unwilling or unable for whatever reason to help the average homeowner? Isn’t the government supposed to help it’s citizens? (Don’t answer that - it’s rhetorical.)

This isn’t a political blog so I won’t get into that any further . . . So back to the topic at hand.

I don’t think the Seattle area will see the problems that have plagued Las Vegas, Phoenix and Florida over the past few years but the picture certainly isn’t as rosy as some would like to pretend. There are real problems and I don’t think we’ve seen the lowest end of it yet. I heard that foreclosure rates rose 60% in February - I think that’s low compared to what’s coming over the next 6 months.

Do you live in an area that has been hit hard by this? What are your thoughts?

If you live in the Greater Seattle area, what are your thoughts?

Feel free to post in the comments, but do please keep in civil and clean.
Thanks,

Annie

UPDATE 3.17.08 - 9pm PDT: Very interesting article on Huffington Post about the Bear Stearns bailout and foreclosure crisis. Rather eye-opening. Check it out.

The Future of Beyond Real Estate

This blog is about to get a whole lot better! Until now, I’ve not really had much of a posting schedule - I just posted whenever and whatever I felt like posting at the moment. Well, beginning Monday, that is changing.

I’ve decided to get more serious about this blog and have created a schedule to that end:

Monday - Local Market. I’ll be posting on things happening in the Greater Seattle area in the Real Estate market.

Tuesday - National Trends. Things that are happening on a national scale which affect real estate in general. This might be mortgage related, bank related or could even be government related. It could be news or opinion.

Wednesday - Investing. Things affecting the investors market including thoughts, opinions, ideas, networking, marketing and the like.

Thursday - Living in the Pacific Northwest. My favorite places, things to do, social events, sports, music, theater - whatever!

Friday - Recap of the week/Marketing. Recap of top stories I’ve read or covered and etc. I’ll also post marketing tips for real estate professionals on occasion.

Saturday/Sunday - Future Trends & Thoughts. What I think might be happening over the long-haul in the RE arena. I’ll also share my thoughts on other topics, post fun pictures or cartoons and whatever else I think you might enjoy.

I hope you will find these things useful. Feel free to comment, make suggestions, etc as well as subscribe to the RSS feed. That way you’ll know as soon as something is posted.

Hope you’re having a great Sunday! See you tomorrow when I’ll be posting on what is happening in the Seattle area market.

~ Annie

Thoughts: Sub-Prime Meltdown

Is the sub-prime meltdown the kiss of death in the REI world?

I don’t think so. In fact, in some ways I really think it’s going to be a bigger boost than a boon.

Why do I think so?

Because the fact remains that people still have to live somewhere. And real estate, over the long haul, still is a sound investment. Even with the sluggish economy, there are still folks out there with money. And historically, when people don’t know where else to stash their money, they head for real estate. One way or another, that infuses the market with the necessary cash and gives everyone good returns on their money.

Real estate is still a proven money-maker. And this market doesn’t change that.

Stay tuned for more thoughts.

~ Annie

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