Northwest Living | Bellingham Real Estate Market

Bellingham, WA -  With a strong local economy and favorable home buying conditions this  will prove to be a good time to buy or sell a home. There’s just too many economic conditions in place for home buyers, that are positioned to purchase a home, to ignore any longer.

Now is a good time to buy and sell real estate in Whatcom County, no matter what people may be hearing about the national market. The national media has focused too much on negative things that they only contribute to housing and economic problems instead of help. Thats the news cycle in general though, they tend to focus on negatives and rarely talk about the positive things in life. It’s unfortunate but very much true.

The Puget Sound economy is strong, unemployment rates are low, interest rates are low, local housing inventory is good and the return to good safe mortgage loans are back. It’s not a bad time to sell, especially if sellers will be turning around and buying, but sellers need to be flexible at the negotiating table in this type of market. With rental prices climbing over the last two years with less buyers in the market, It makes more sense to buy then rent currently. Coupled with the fact that home prices have plateaued or declined bodes well for home buyers.

I would have to agree with so many that a lot of the housing problems could be pointed firmly at the media, who are confusing the public by publishing headlines designed to appeal to emotions and reports that use local and national information to distort the truth at times. For them to report about the high number of subprime loans in the south and some how use that for the Northwest is confusing. The Northwest never got into the subprime loans on the scale of a lot of southern states, so no wonder we are doing so much better. But unfortunately that news is not getting out as much as the bad news from other parts of the country.

Limits on Federal Housing Administration loans were recently raised, which should give buyers more homes to choose from at favorable mortgage rates. Hopefully a bill that would lower the down payment requirement for FHA loans from 3 percent to 1.5 percent, making the loans more accessible to first-time buyers gets passed.

This past week both Fannie Mae and Freddie Mac were allowed to lower the amount of funds they kept in security from 30% down to 20%, freeing up two hundred billion for mortgages as well.

The subprime mortgage mess has made lenders return to “old school” restrictions and requirements. Buyers may have to get help from family rather than use a riskier loan. I think in the end it will be much better for buyers who use discipline in budgeting and learn to save for a down payment instead of securing no down payment loans of the past which teaches buyers nothing.

This “normalizing” of the market gives people a chance to take a few months and get their finances in order before purchasing a home.  I think if buyers put more of their own hard earned money in to a home, they will become less likely to fall behind in payments and go into foreclosure.

Jerry Campbell - Muljat Group - Bellingham WA - Bellingham Homes For Sale

The US Government announced Wednesday that it is freeing up billions of dollars at Fannie Mae and Freddie Mac, so that the two companies can help homeowners refinance mortgages on the brink of default. This will have a huge impact over the next year to help homeowners get out from under these tough loans of the past.

The Office of Federal Housing Enterprise Oversight, which oversees the government-sponsored companies, unveiled a plan to ease mandatory capital requirements now in place. It said the plan is expected to result in an immediate infusion of up to $200 billion into the market for mortgage-backed securities.

Now nearly $20 billion for the two - will be reduced by a third under the new deal. The freed-up money will go toward buying mortgages of struggling homeowners to enable them to refinance into more affordable loans.

The announcement is part of a large number of government actions revealed lately aimed helping the financial markets and protecting the economy from recession. The capacity of Fannie and Freddie will permit them to do more in the jumbo temporary conforming market, subprime refinancing and loan modifications areas.

These type of announcements don’t get much headlines with the general public, but are usually the type of decisions that make the most impact. If your a homeowner in our Northwest corner and have been thinking of refinancing or buying a home…there is good news on the horizon. Now we just need a little bit of a trickle down effect from the three quarters percent drop in rates, to home loans.

Once the housing market can get some footing under neath it by stopping the deflation of housing values, is really when we will see a recovery. This news today with the freeing up of capital from Fannie Mae and Freddie Mac was the kind of stimulus that might get the housing market going again.

Jerry Campbell - Muljat Group - Bellingham, WA - Bellingham WA Real Estate

The Fed’s action lowers the funds rate to 2.25 percent, the lowest since February 2005, and comes two days after the central bank announced the latest in a series of emergency measures to stem a fast-spreading global financial crisis. The Fed has now cut rates by 3 percentage points since mid-September, including 2 points since the start of the year. 

In recent days, the central bank has also offered to help financial institutions as well by providing access to liquid funds. The central bank is pulling out all the stops to provide liquidity to financial markets and put a floor under an economy many analysts believe is in recession. 

The Fed, fearing financial markets would freeze up and send the economy into an sharp downward spiral, has offered cash auctions and direct loans to financial institutions, opening those liquidity avenues beyond the banks that normally deal with the Fed to include other Wall Street firms. 

The good thing is that the global economy is doing pretty good and especially in China where they are experiencing a boom. Our nations steel industry is actually on a rebound and looks to do pretty good. 

Jerry Campbell - Muljat Group - Bellingham WA - Bellingham Real Estate

Bellingham, WA - March is traditionally when homeowners thinking of selling their homes prepare their property for listing in the local Whatcom County real estate market. The winter holidays are usually the slowest time of the year because of the cold weather and holiday events. As soon as buds start to appear on trees it seems to be the real beginning of the listing season and for sale signs pop up in yards.

The last two years there have been a few more for sale signs than usual and they have stayed longer than the boom years from a few years ago. To stay competitive in this ever changing market most homeowners thinking of selling need an edge to get noticed. The best thing a homeowner can do is make sure their home is in show condition. I’ve posted about the importance of staging a home for sale before, so I won’t go into to much today. Our viewers might want to visit an article we posted called selling your home in a buyer’s market to get an edge in selling their home. There are also some good articles under our Seller Tips category that should help as well.

Bellingham and Whatcom County home owners have it a lot better than many real estate markets in southern states across the nation. According to the statistics, Whatcom County only had 19% of all loans in the sub-prime market, with 81% in prime lending. That number most definitely has dropped even more, now that the mortgage industry has returned to more normal loans. Just because Whatcom County has 19% of mortgages in the sub-prime market does not mean all of these will fail. It’s estimated that only about 5% of these will go into some form of foreclosure. By checking out the following national subprime mortgage map, county by county, home owners can get a better feel for where the real problems are across the nation.

If one were to look at the subprime map, you can see that the Northwest really doesn’t have the same problem that the many areas of the country are experiencing. I mention this because It’s really the negative chatter and consumer sentiment that is making our real estate markets tough in the Northwest. Because we are a national economy it does effect us locally, but certainly not like those in parts of California, Arizona, Texas, Mississippi, Florida, and many more states.

The thing most home owners should take to heart is that if your selling in a buyers market and planning to buy right away, then on the buying side you will gain that advantage. Actually no matter what market your in, as long as your selling and turning around and buying again…you’ll do fine. Happy Saint Patrick’s day everyone and may you find good luck in all your housing needs this year.

Jerry Campbell - Muljat Group - Bellingham WA - Bellingham WA Real Estate

 The real estate industry launched last week it’s version of an online encyclopedia called the Real Estate Wiki. A collection of real estate professionals got together and created the brand new wiki to provide a information on the real estate business in one place.

The new real estate wiki includes real estate definitions, frequently asked questions about home selling, home buying, finance process, home inspections and a whole lot more. The wiki will also provide interesting bio information on leaders in the real estate industry, real estate books, leading real estate brokerage companies, real estate associations, and real estate blogs. They go even further and tell the public about all the designations Realtors earn, courses they take, publications of the industry, our social networks and institutes as well.

With the reputation of the the larger Wikipedia as the world’s largest free encyclopedia on the Internet, this will allow a more targeted drill down to a specific profession like the real estate industry. Since Wikipedia has a reputation for being non-biased and independent the hope is that the consumers will be able to gather tons of useful information at one reliable source.

It’s estimated that at least ten million people work in the industry related to real estate including real estate agents, brokerages, mortgage, financial, construction, and appraisers. With so many consumers now searching the Internet for real estate related information this should be a big plus for buyers, sellers, and renters alike.

This will be very exciting to see how this all evolves and how the public in general takes to the new real estate wiki. This should be a great source for my local Bellingham WA and Whatcom County real estate markets.

Jerry Campbell - Muljat Group - Bellingham WA Real Estate -  360-739-7779

Ferndale WA - The brand new Ferndale branch for Whatcom Educational Credit Union had it’s grand opening today to celebrate the completion of It’s new building. The new Ferndale branch of WECU is located at 5659 Barrett Rd. where the Johnson’s Restaurant use to be years ago.

The ribbon cutting ceremony was held at 9:00 a.m. with over a hundred people in attendance for the grand opening.  Additionally Hundreds attended the Whatcom Educational Credit Union’s business after hours event this past Monday, which celebrated the establishment of this new branch

WECU will be seeking LEED silver certification on the new building for its environmentally friendly design standards. The construction of the building was by general contractor Pearson Construction.

The building is about 10,000 square feet and will be a full-service branch, including a real estate loan department and a four-lane drive-up area. The interior of the Ferndale, Wa branch is very inviting and has a huge lobby for it’s customers.

The building will have a community center for use by nonprofit organizations. The building has six teller windows and will have about 15 employees on staff. Customers have access to two computer terminals to do online banking, there is also a coin machine to count loose change making deposits of change easier.

The branch manager is Kimberly Cook, who also will be the on staff real estate loan officer. Stop by and see this wonderful new building today.

Jerry Campbell - The Muljat Group - Bellingham WA - Ferndale WA Real Estate

Ever since the Canadian Dollar started to reach parity with the American Dollar, our Canadian neighbors have been buying more and more across the border. Just in the last year retail sales have seen an up tick in the local Whatcom County market. Most retail items in Canada, on par, are more expensive than in the states, so Canadians are shopping in Whatcom County and the Puget Sound region more often.

In the real estate market I’ve also experienced at least a third of all my business calls coming from across the border. Most of the Canadians that I’ve spoke to, have said that they can get much better deals on real estate by buying in Whatcom County and else where.  As long as the two currencies are relatively close in price, I think we’ll see more and more of our Canadian friends purchasing homes in Bellingham over the next few years.

Jerry Campbell - Muljat Group - Bellingham WA - Bellingham Homes For Sale

Puget Sound - It’s the kind of house that a year or two ago would have been snapped up in days: a refurbished rambler in a woodsy residential neighborhood minutes from downtown.

The asking price: $559,000.

But after seven weeks, the sellers had not received a single offer on their Wedgwood home.

The sellers really believed there would be no problem selling, But the whole feel of the market has changed. They might have to drop the price.

These Puget Sound sellers, along with local real estate agents and economists, wonder whether sluggish sales are part of the usual winter slump or a sign that Seattle, a perennial most-livable-city contender, is joining the rest of the country in declining home sales. The question has put many locals on edge.

Right now there’s not that urgency among buyers to pull the trigger, is the feeling among many local real estate agents. We should start to see what will happen early this year.

If sales are sluggish during the traditionally hot-selling months of February through April, then people will have a better idea whether Seattle has joined the national trend.

Of 20 major U.S. metropolitan areas, all but three markets; Seattle; Portland, Ore.; and Charlotte, N.C., experienced a decline in real estate values this October compared with last October, according to the Standard & Poor’s/Case-Shiller composite price index.

Home prices have fallen most in the Midwest, Southwest, Florida and California. In Los Angeles, prices fell 8.8 percent; in New York, 4.1 percent.

Seattle prices increased 3.3 percent, but that was the smallest year-to-year rise for the city in more than a decade. The annual appreciation in Seattle has been slowing for more than a year and a half.

Some economists say it’s only a matter of time before Seattle joins the national slump. Although the city experienced a year-to-year increase, October prices fell 0.9 percent from September, the third consecutive monthly decline.

Gov. Chris Gregoire told residents not to be affected by the gloom. Bad news elsewhere, she said, doesn’t have to translate into bad news here.

“There’s no real reason for it to slow in our state, but for the fact that people are watching what’s going on around the national economy,” Gregoire said during the unveiling of a budget proposal in Olympia.

Seattle, Portland and Charlotte have bucked the trend partly because each has a relatively healthy local economy and all three continue to draw newcomers, which keeps demand steady.

Seattle has three ingredients that work together to keep home prices high, according to Seattle-area real estate blogger Larry Cragun: “lakes, mountains and liberals.”

The lakes and mountains don’t need explaining. The liberals, Cragun said, have created such an anti-development atmosphere that available land for building homes is extremely limited.

“When you only have a certain amount of land to build on, the value of that land tends to run up,” said Cragun, who has been in the local real estate and mortgage business for three decades and blogs at Real­ Esta­teUndressed.com. But Seattle has “experienced the worst of it” already, he said, and will rebound soon.

As for the Dittmaiers, they continue to hold their front door open to prospective buyers.

The holidays have been rough. In addition to the usual hustle and bustle, the Dittmaiers and their two young children have been busy packing their belongings. They have already purchased a new house nearby.

The family has been moving to the new place little by little. But the transfer won’t be complete, Kristen Dittmaier said, until their old house sells. Not to mention that the couple soon will be forced to make two mortgage payments if the Wedgwood house remains unsold.

Meanwhile, Dittmaier said, she has not seen the latest home-price report in the newspaper. And it’s just as well: “I don’t need to read a report to know houses are not selling as quickly as they used to.” via Herald net

Bellingham, WA - Even though the economy seems to have tanked It’s been reported that local Whatcom County household incomes keep rising. Whatcom County median income is currently at $53,573 as job growth continues locally. When it comes to household income growth, Whatcom County has been doing great compared to the rest of the state in the last two years, according to a new state report.

The median household income in Whatcom County is up 4.7 percent from the preliminary 2006 numbers and up 12.2 percent from 2005, according to the Washington state Office of Financial Management.

Household income is determined by a variety of revenue streams, including salaries, dividends, rental income, retirement and disability income. The median measures the point at which half the households have more income and half have less. Statewide, median household income is up 4.2 percent year over year, and up 8.9 percent from 2005.

Hart Hodges, director for Western Washington University’s Center for Economics and Business Research, believes there are a variety of factors at work for the increase in wages. One is that the same increase in income will look like a bigger percentage change because Whatcom County has a smaller base. In addition, the impact of higher-wage jobs being added to large employers such as BP, Alcoa Intalco Works and WWU is being felt.

“We seem to be seeing a slight improvement in the job mix as the local economy gets larger,” Hodges said. “For example, larger economies tend to have relatively larger finance and information sectors, and we’ve seen some growth there. The job mix is slowly changing.”

Whatcom County has seen a steady rise without any year-over-year decreases in household income since 1989, when the median number was $28,367, according to the report.

Hodges expects wages to continue to rise in 2008 because of a continued tight labor market and a relatively low existing wage base. The local unemployment rate has been under 5 percent since January. Many economists consider anything under 5 percent to be full employment.

Skagit County has also done better than the state average. Year-over-year household income there rose 5.8 percent to $56,163. “Both (Whatcom and Skagit) counties have seen a few good years of job growth in manufacturing and work at the refineries,” Hodges said. Partially via bham herald.

 the National newspaper USA Today posted this little stat the other day in their paper showing that Bellingham, Washington showed that area homes were holding there value. In fact it was the second best area in the country during 2007 with that distinction.

I Believe that since the Whatcom County housing market is so close to the Canadian market and the fact that our Canadian neighbors are buying purchasing property down here helps contribute to our real estate. Ever since the Canadian Looney and the American Dollar achieved parity with each other, more and more home buyers from British Columbia have been buying property in Bellingham and Whatcom County.

When you compare the geographical areas where most residents of lower mainland British Columbia and the areas of Whatcom County the population is nearing three million in BC and just 180,000 in Whatcom County. A home in Whatcom County would be 2-3 times it’s value if it was located in the more demand driven British Columbia markets.

But nevertheless its always nice to see yet another national magazine touting Whatcom County, this time on home prices.

Jerry Campbell - Muljat Group Realtors - Bellingham Real Estate