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The blog will focus on the South Sound, state and national housing and rental markets, as well as cool Web sites, weird real estate trends and warnings about scams.
Please send along your questions and suggestions.
No-pitching policy
Open House is a forum to read about and discuss real estate issues. It is not a place to pitch your services. That means no direct solicitation, no phone numbers and no pushing readers to your Web site or place of business.
More real estate blogs:
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Tacoma and South Puget Sound Real Estate Blog
Monday, September 8th, 2008
Posted by Brian Everstine @ 04:45:58 pm
Here is some more bad news for the housing industry.
More people in Washington are behind on their mortgage payments this quarter, according to data from the Mortgage Bankers Association.
The delinquency rate for residential mortgage loans in Washington rose to 3.38 percent at the end of the second quarter, up from 2.98 percent at the end of the first quarter. The amount of loans being foreclosed in the state also rose to 1.04 percent from 0.89 percent.
Washington is still doing much better than most of the country, ranked for the quarter at No. 45 in delinquencies and No. 44 in foreclosures started. The state also has 14 percent nonprime borrowers, compared to 19 percent nationwide, according to the D.C.-based group.
California and Florida continue to be the hardest hit. The two states accounted for 39 percent of all foreclosures in the second quarter.
The national delinquency rate for the second quarter was 6.41 percent, a jump last year's 5.12 percent. This quarter's rate is the highest since the agency began recording statistics in 1979.
"The national foreclosure numbers continue to be driven by the hardest hit states continuing to get much worse," said Jay Brinkman, MBA's chief economist and senior vice president for research and economics, in a news release.
Categories: Foreclosure/bankruptcy, Mortgages, good and bad
• 6 comments
COMMENTS:
By this time next year we could only wish that the foreclosure rate was 1%. This is nothing yet. The Fed's moves are too little too late. With Washington being a non-recourse state we will have a staggering numbers of foreclosures in the coming decade. There will be no specific bottom to our housing decline instead it will be extended over a few year years.
Commercial is next and it will be ugly. Friends save like you have never before. Those with the cash will fare greatly in the years ahead. If you have a home to sell get it on the mkt. There will be a temporary blip up due to low rates in the coming months. I assure everyone your home will be worth less then it is today in the coming years.
No scare tactics here. Just one mans opinion. I invite anyone to disagree and support it with facts as to why my home will appreciate in the coming years. My opinion may change but based on my research....this is nothing yet.
Ray Pepper
Broker
www.500Realty.net
Commercial is next and it will be ugly. Friends save like you have never before. Those with the cash will fare greatly in the years ahead. If you have a home to sell get it on the mkt. There will be a temporary blip up due to low rates in the coming months. I assure everyone your home will be worth less then it is today in the coming years.
No scare tactics here. Just one mans opinion. I invite anyone to disagree and support it with facts as to why my home will appreciate in the coming years. My opinion may change but based on my research....this is nothing yet.
Ray Pepper
Broker
www.500Realty.net
I've recently become more bullish on the housing front here in the pacific northwest. Foreclosures will continue at nominal levels in comparison to the hardest hit markets of CA. and FL. and if the lenders don't dump repo's in mass, We could see an orderly transition back to a more balanced market. Builders have cut housing starts to a trickle and the feds have put confidence back into the market by taking over Freddy & Fannie. If buying and selling continue at current levels, excess inventory could balance by mid 09.
Ray, you're watching too much of MSNBC. Negativity only begets negativity. Obviously, it seems as though the only reports you read are those from the main stream media. I assure you, the real estate picture is not as bleak as you would want people to believe. Activity IS picking up, and it is not just a short blip in the market. You know you've hit bottom when activity starts to increase. That is what is happening now, whether you want to believe it or not. Why would I list with someone with your negative attitude? The public depends on the professionals in the real estate industry for guidance, not negativity or belittling fellow professionals.
Broker you maybe right. I hope you are. Its actually CNBC. CNBC has run in my office and home M-F 4am -3pm religiously for 20 years. The news reporters are like celebrities to me. My wife cannot stand it. Rremember I'm just one person with 1 opinion. I'm very happy rates have come down but also at the same time consumer credit deterioration is at an ALL TIME HIGH.
The public needs professionalism, guidance, and strong advice on how to market and properly price their home. I'm not here to make people feel better about their situation. I do not believe I ever belittle but it seems you have been offended. I apologize.
Continued success (if you are indeed in the field) and assist us in giving back wealth to the consumer not extracting.
Ray Pepper
Broker
www.500Realty.net
The public needs professionalism, guidance, and strong advice on how to market and properly price their home. I'm not here to make people feel better about their situation. I do not believe I ever belittle but it seems you have been offended. I apologize.
Continued success (if you are indeed in the field) and assist us in giving back wealth to the consumer not extracting.
Ray Pepper
Broker
www.500Realty.net
I'm not sure how the increase in foreclosures is bad for the real estate industry, as you state. Increase in foreclosures IS bad for those folks being foreclosed on. I don't want to make light of that.
However, the foreclosures are opening up some incredible opportunities for folks to either buy rental properties (rental prices have increased as home sales have struggled), move up to a larger/newer/nicer home, or buy a second home.
That's good for the real estate industry. It brings out more buyers. Often buyers have something to sell. If I've got a home that WAS supposedly worth $415k, and now is only worth $395k, that's okay if I can buy a home that is worth $550k but is being sold for $475k as a bank-owned.
Just today a great 5000sf (who needs that?) view home in Gig Harbor, previously listed at $1.3M (WAY too high)taxed assessed at $676k came on the market for $670k.
Foreclosures aren't fun, they're not good, but they can help spur a housing market by providing great deals.
However, the foreclosures are opening up some incredible opportunities for folks to either buy rental properties (rental prices have increased as home sales have struggled), move up to a larger/newer/nicer home, or buy a second home.
That's good for the real estate industry. It brings out more buyers. Often buyers have something to sell. If I've got a home that WAS supposedly worth $415k, and now is only worth $395k, that's okay if I can buy a home that is worth $550k but is being sold for $475k as a bank-owned.
Just today a great 5000sf (who needs that?) view home in Gig Harbor, previously listed at $1.3M (WAY too high)taxed assessed at $676k came on the market for $670k.
Foreclosures aren't fun, they're not good, but they can help spur a housing market by providing great deals.
Gig you are right on...The doom and gloom is how you perceive it. Tim Ellis described it perfectly........
"How do lower prices equate to "doom and gloom?" isn't it a good thing that people will actually be able to afford to buy a house without entering into a self- destructive financial death trap? Are falling gas prices doom and gloom? What about falling flat screen prices?
"When the cost of something falls, it is a good thing that leads to greater affordability and frees up money for people to spend on other things. "
"To me a rapid escalation in prices leading people to make extremely risky financial decisions and putting them in a situation when all they can afford to do is pay the Mtg is "doom and gloom".
A great quote by a great blogger at Seattle Bubble.
Ray Pepper
Broker
www.500Realty.net
"How do lower prices equate to "doom and gloom?" isn't it a good thing that people will actually be able to afford to buy a house without entering into a self- destructive financial death trap? Are falling gas prices doom and gloom? What about falling flat screen prices?
"When the cost of something falls, it is a good thing that leads to greater affordability and frees up money for people to spend on other things. "
"To me a rapid escalation in prices leading people to make extremely risky financial decisions and putting them in a situation when all they can afford to do is pay the Mtg is "doom and gloom".
A great quote by a great blogger at Seattle Bubble.
Ray Pepper
Broker
www.500Realty.net
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