Hello all bloggers... I'm posting a letter I recently wrote to some potential buyers I am working with and I tought the real estate knowledge may help explain the current real estate market conditions here in Seattle.
How's it going? You asked me about the zero down option with the listing we viewed the other day. This is with their preferred lender and may cost you more in points to obtain(Higher interest rate,rate buy down, etc.). The seller paid closing cost are with a full price offer but we could certainly write that in any offer at any price on any house. I would recommend giving several brokers a call and discussing the options that are available to you and maybe one brick and mortar bank.
From what I've been hearing money is available through FHA with 3% down (changes to 3.5% Jan. 1st) as long as you have a FICO Credit 700+ and 2 year work history. Now is one of the best times to buy because the Fed has reduced Prime to another historic low. I believe there are still 0% down options as well, it just depends on the borrower. Alec can fill in more about this as the mortgage market is in a constant state of flux.
As far as your question will prices drop more...this is any ones guess but what you can count on is some sellers want so they have already been listing for sale, reducing prices and accepting low offers. So it really depends on the seller and the house they are selling as to whether you are getting a great deal. But make no mistake there have been some recent transactions where people have gotten great bargains. It is a buyers market at the moment which really puts you in the drivers seat, sellers are very willing to make concessions that benefit the buyer.
The slowdown hit Seattle later than the rest of the country so we will come out a little later but it has not been nearly as severe and should recover more quickly. In general real estate is safe in the Puget Sound area, we have limited land, good jobs, a great economy, transit and great recreation etc. I believe our market is near the bottom and will pick up a bit in early spring and be rebounding in 2010 (probably not as fast as the past boom). The long term outlook is good here.
I will be sending you lots of listing up to 600k just so you all can see whats available and selling. I will also send you articles that are helpful in understanding the market.
One last note...would you like me to send you listings for West Seattle? Brian had mentioned you found out how nice it was over there, maybe you would like to see whats happening in city as well as Snoqualmie and Issaquah. Just a thought.
You all are in a good spot as buyers right now and I'm really excited to help you. Feel free to ask me anything at any time. Clarifications, Recommendations, Mortgage Brokers, etc.
Thanks,
Chrisitiaan