Home Financing Rates Near All-Time LOW!!!

Delay Will Usually Cost More

Two things can happen when the mortgage rates go up before you've found a home or locked-in your mortgage.  You'll either pay the current mortgage rate which means a higher payment, or you'll have to increase your down payment to keep the monthly payment at the same level.

If the rate were to go up by ½%, the payment on a $275,000 mortgage would increase by $82.87 per month for the entire 30-year term.  That would increase the cost of the home by $29,835.
Some people are purchasing the maximum home that they can qualify for.  In that case, they cannot qualify for a higher payment and the only way to buy the same price home is to put more money down which may not be a possibility.  The other alternative is to buy a lower price home which may not be in the same area or size which will involve some compromises.

The rate is not the only dynamic that affects buyers waiting to purchase.  The home they want could sell to someone else.  Prices could increase as new homes come on the market.  The question that many buyers ask themselves when they become a victim of the consequences of delay is "What could we have spent the money on if we didn't have to make a higher payment?"

Mortgage rates are very attractive currently and within ½% of the all time low of 3.35% in December 2012.  The highest rate was 18.45% in October 1981.  Whether you're purchasing or refinancing, it may not be this low again.

To see how it will affect the payment, plug your numbers into this Cost of Waiting to Buy calculator or call me at (360) two-four-one-7232 and I'll help you with it.

Down Payment Assitnace for a Home Purchase Can Take Several Forms

 

 In the post-Crash real estate market the once employed practice of using a "Second Mortgage" is not seen too often to be used as a Down-Payment.

The FHA Home Loan does allow options other than the borrower's own cash to supply the Down Payment in the form of a "Gift" - something that does not require repayment while the FHA Loan is in place.  As you can see in the graphic above almost a quarter of all FHA borrowers are using funds other than their own cash to come up with the down payment.

The person or entity providing the Gift Funds will almost always be required to tender a Gift Letter that asserts that the funds are a gift and not a loan.

With respect to a Government Agency, in Vancouver Washington one of the most common forms is what we call the Washington Bond. When the borrower (home buyer using this program) receives these down payment funds, no interest is accrued, and no payment is required during the life of the FHA loan. However, once the home loan is paid-off or, re-financed - Then the WA Bond funds must be repaid.

The WA Bond program is a great, almost no-cost way to obtain down payment funds for moderate to low income home buyers in Vancouver and Clark County WA.

I look forward to any questions you may have or to help you purchase your home!

Why is a Home's Measurement of Square Footage Important to You?

The total Square footage is commonly used to determine if a home will fit a buyer's needs.  The price per square foot is often used to compare the costs of different homes and even, determine the value of a property.
The challenge is what is the source of the square footage measurement and how was it calculated.
County records use square footage to determine assessed value for property tax purposes.  They are assumed to be reliable but there can be inaccuracies in their tax rolls.  Another source of square footage could be from the house plans but the problem there is that the builder may have made modifications, or a subsequent owner may have made additions.
Appraisers are required to measure the home to determine square footage and they generally, adhere to a standard method which leads to uniformity in the industry.  The ANSI, American National Standards Institute, guidelines are considered the standard but there are no laws governing the process.
Because basements are below grade level, regardless of whether they are finished, they are typically not counted toward gross living area.  Attics because they are above grade level can be included in gross living area if they are finished to the same standard as the rest of the home and they meet the minimum height requirement of seven feet.
Unfinished areas are usually not considered in the square footage because it is not livable.
For detached properties, it is common to measure the perimeter of the house but to only include the living areas, not porches, patios or garages.  Gross living area includes stairways, hallways, closets with minimum height and bathrooms.  Covered, enclosed porches would only be considered if they use the same heating system as the house.
By contrast, condominiums, generally measure the inside area of the unit. Some appraisers may add six inches to account for the wall thickness.  If you were to compare the total of the interior room measurements of a detached home, it would be far less than the stated square footage using the normal method.
If the county records are significantly different from the appraisal or the plans, it will be necessary to determine which one is more accurate.  This may require getting the home measured by an appraiser which should be less than paying for a complete appraisal. This is an approach we've recommended to our customers on occasion to validate a home owner's measurement subsequent to an addition.
Finally, we real estate brokers do not provide, nor are we licensed to provide measurements of the homes total living area.
I look forward to your comments or questions.

Warning! There May Be A Hidden Camera...

With the rapid integration of video and Internet-connected devices, one Big Change in the Home Buying process is not necessarily getting the recognition it deserves - namely, the possibility that your visit to a home for sale may be recorded by the home owner! 

To be sure, the home owner may very well be concerned about theft if items in their home, and we don't ever want any of our customers to be involved with thievery.  However, it is potentially a bit of "thievery" on the part of the home-owner if they capture the feelings and intent of the home buyer with respect to this particular home - especially if the details of an offer are being discussed with your real estate broker.

I rarely see in a listing's remarks to brokers that video or audio recording devices are present in the home.  Thus, the best advice I can give at this time is: while you are inside that home that you absolutely love and want to submit an offer for, to be circumspect in your remarks about that home or your plans for an offer.

I welcome your thoughts, questions and comments!

Don't Leave Home on that Vacation Trip Without ...

 

You've been planning this trip for some time and almost every detail has been considered...or has it?  Have you thought about how to protect your home while you're out of town?  What's going to make sure that everything you left is still there in you return?

Nothing could ruin a trip more than coming back to find out your home has been burglarized or worse.  It makes sense to spend a little time before you leave on making sure your home is as safe and sound as it can be.

There are a host of devices to use across the Internet including camera door bells, video cameras, door locks, garage door openers, light and thermostat controls.  You can monitor your home whenever you have an Internet connection.  The question is whether you want the distraction from your trip.

Consider these low-tech suggestions along with your other normal efforts:

• Tell your neighbors you'll be out of town and to be aware of any unusual activity.
• Notify your alarm company
• Put on Vacation Hold your postal delivery
• Use timers on interior lights to make it appear you're home as usual.
• Don't make it easy for burglars by leaving messages on voice mail or posting on social networks.
• Post on social networks AFTER you've returned about your vacation.
• Remove the hidden spare keys and give it to a trusted neighbor or friend.
• Lock everything, double-check and set the alarm.
• Take pictures or video of your belongings in case you need them.
• Disconnect TVs and other equipment in case of unexpected power surges.
• Adjust your thermostat.
• Arrange for lawn care.
• Consider disconnecting the garage door opener.
• Put irreplaceable valuables in a safety deposit box.

It's nice to go out of town on a well-deserved trip and it's always nice to get back home...especially when it is just the way you left it.

Bon Voyage!

Homes For Sale in Clark County WA - June 2019

Home Sales Ramping Up for Clark County WA this June 2019.

The number of Units-Sold were 18 below last year for this month - and Down 104 units (-3.34%) year-to-date; while the short-term price-trend moved up to tie last year's high. These are this month's highlights: 

• Average-Sales Price trend is on its seasonal rise, with the 12-month/long-term trend line up 5.13% year-over-year;  with the 3-Month Moving Average up 2.21% from this time last year; 
   
• The Inventory for Resale Real Estate again rose 0.2 months, and is now at 2.2 Months of Supply;
   
• Approximately 630 Resale Properties closed in the month, which is about 18 fewer (-2.8%) homes than in 2018; and 26 more than last month;
   
• REO/Bank Owned property sales were 2 units (0.3% of total); down from 4 (0.6%) in 2018; 
   
• Short Sale /Pre-Foreclosure property sales were 0 units (0% of total); down from 2 (0.3%) in 2018.

For Home Mortgage interest rates the month-end, 30-year-fixed loan interest rate (nationwide average) is 3.80% (Down from 4.07% last month) according to Freddie Mac; compared to 4.57% for June 2018. The current rate level is the lowest we've seen since 2016!

Next up I have prepared custom Unit-Volume (number of properties sold) chart showing the short term (in Red) and long term (12-month moving average in Blue) trends: 

Clark County Home Sales - Units Sold Trend June 2019

This month the Short-term trend line has pierced and gone well above the Long Term line from below; and the Long-term line appeared to move up ever so slightly. 

Next I have my chart for the Average Home Sales Price trends, showing the results in both the short-term and long-term: 

Clark County Home Sales - Average Sales Price Trend June 2019

We see this month the short-term line bursting up, through the long-term line, and matching last year's high for this measure.  With the still very, very low Inventory level it is reasonable to expect strong upward pressure on home sales prices

The Average (using 3 months) sales price for Clark County is now $401,355; which is an increase of approximately $8,672 from this time last year.

My final charts come from RMLS and show:

Clark County Home Sales Inventory
& Days on Market - June 2019

This month we see New Listings falling significantly, with Pending Sales and Closed Sales stalling near last month's level; resulting in a gain of 0.2 month's increase in the Available Inventory of Homes for sale. 

The second graph with the Average List and Sales Prices shows the average price for new listings continue at a high level; with the closed sales also doing well. 

Lastly, Both Average Days and Median Days on the Market remained close to last month's brisk level.

We've also made available the recent RMLS published report on the Clark County real estate scene, and you can find it here: RMLS Market Action Report on our main website.

Thank you for visiting our report; and please let us know if you have any questions or need help with your home or condo!

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PS - The home sales market is in change-mode as prices are softer with loan costs now falling, keeping this an excellent time to List and Sell Your Home with Our Team; or, at least find out what your property is worth!  We offer a no-cost, no-obligation Clark County WA Home Valuation, and invite you to try it out!

PPS - Looking to buy a house reasonably soon?  Interest rates have been falling and are still at historically low rates.  You are invited to visit our web-page for Clark County WA  Houses For Sale where it is Quite Easy to search by City, Neighborhood or by Category, with homes and real estate listings from the entire RMLS.  Sign-up Not Required!  The property and home listings shown are provided via many updates each day, and you will be e-mailed hourly with any new matches once you've signed up for a home search.

We also have the MLS Listings for these great towns in Clark County:  Battle Ground WA Real Estate For Sale | Brush Prairie WA Homes For Sale | Camas WA Homes for Sale | Hockinson WA Homes For Sale | La Center WA Homes for sale | Ridgefield WA Homes for sale | Real Estate for sale in Vancouver Washington | Washougal WA Real Estate | Yacolt WA Homes For Sale | Amboy WA Homes For Sale

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The information and charts in this Clark County WA real estate update (prepared by Vancouver WA Home Sales Broker, John Slocum, CRS, SFR, our resident statistician) are based on home sales recorded in the Clark County WA MLS system (RMLS), excluding sales of mobile home; and shows the purchase activity since 2009; charting the 3 month Moving average number of sales, and the 12 month Moving average.  This "smoothing" of the trend-data helps illustrate the short-term and longer term trends in Clark County's real estate market.

Disclaimer: as with any real estate statistics, we do our best to provide the best representation at the time the data was acquired and compiled.  The data and reports are deemed reliable but not guaranteed.