Jan's Biz Talk posts

IS THE SKY FALLING?

The media is not a friend to the real estate industry and that negative talk sure has impacted King County in the last month. In August there was a 3-4 month supply of homes; that's considered a Sellers market. In the month of September it jumped to 8-9 months supply; that's a buyers market.

Get real. We have a terriffic employment base here, people are moving to here from all over the world. Mortgage rates are at an all time low, and have been for months. Home prices increased in 2007. There is a good selection of homes to choose from, we are in great shape!

So, none the less, here we are. Now sellers need to be smart about presentation and pricing, it is a very competative market out there, it's a good time to get experienced representation. Buyers get the opportunity to shop around instead of feeling bullied, they are actually writing "offers". That's what we call a "normal" market!

What happened needed to happen. We lost financing for people who don't have money for a downpayment. We lost some pretty frightening financing options- the ones that created the pickle a few home owners now face. Some loans have negative amortization- they get bigger each month. And, some had substantial rate increases each year- many of those mortgages will force sellers to put their homes on the market this year. (Fortunately, those homeowners made thousands in appreciation!) Homes were never considered short term investments -until recently!

What would happen here if the rampant appreciation we experienced went on for another 5 years? I can tell you it felt really bad to beg for the opportunity to buy a house, to use acceleration clauses increasing the purchase price dramatically beyond what the house was worth!

Don't be afraid. This is a great time for buyers! And, it can be for sellers too...just be smart about it.

Alive with possibility

Last night I attended my first indy evening event -and met two business owners during the day. What a great day that was!

There is so much negative speak in the media right now, it can impact our outlook and sense of well being. For me, it's important to align with people who are playing a positive game and are focused on the ball.

Yesterday I listened, learned and laughed with people who are working toward their goals. These are the kind of people I want in my life!