Excerptfrom NWMLS news:

Housing market rebound continues,
with “slow, unprepared buyers” settling for “2nd choice” homes

KIRKLAND, WA, October 4, 2012 – Home sales around western Washington continue to outpace activity of a year ago while inventory remains thin, according to new figures from Northwest Multiple Listing Service. Brokers say that combination is resulting in disappointment for buyers who are slow to accept the reality of a recovering housing market.

Commenting on September data from Northwest Multiple Listing Service that shows upticks in sales and prices, broker Frank Wilson said buyers who make unrealistic offers and requests are “back on the street looking at their second choice home.” Meanwhile, some sellers with well-priced, well-prepared homes are receiving multiple offers according to Wilson, a member of the Northwest MLS board of directors and the managing broker of John L. Scott Real Estate in Poulsbo.

Northwest MLS figures for September show the pace of sales slowed from the past six months, but still outgained activity of a year ago. Members reported 5,535 closed sales, which compares to the year ago total of 4,988 for an increase of nearly 11 percent. Thirteen of the 21 counties served by the MLS reported double-digit gains in the number of completed transactions.

This is a good time to BUY UP - If you wait, you may sell for a higher price but the target property will increase at generally the same rate.  But, since the target properties price is greater, the total dollar outlay will increase proportionately

sell 200K now
buy 300K now
%20 down will be 60K Mortgage will be 240K


WAIT a year
The 200K is now priced
Sell at 220k
Buy 330K property = make 10K more
%20 down will be 66K Mortgage will be 264K

You would need to finance 24k more.  Let's say 4% over 30 years - Your payments increase $114.58
/month.  Over thirty years that's $41,248 over the life of that mortgage. 

This is a simplistic model but I think you see the rationale ...

On the obverse:  No is NOT a good time to Buy Down.  Play with the figures for profit and loss and see if holding on works for you.

Regards,
Mike

Predictions from late September 2012

Home prices will rise by 5-10 % over the next two years.

Now is a good time to buy.  Proces are generally on the way up.

The backlog of forclosed, REO, Fannie Mae, shortsales etc will continue to be release to the market from the lenders ghost inventory.

Interest rates should rise little over the next 2 years.

Let's just see how accurate these predictions are.

Regards,
Mike

Welcome to my blog.  I am a Real Estate Sales Broker and I love my job.  It is FUN!  Never a dull day. 

I hope you find the information discussed here to be informative, valuable and enjoyable.  Above all else, I hope it makes you THINK and not believe everything you hear and read.

I was introduced to Real Estate brokerage in 2005 by my friend, Richard ...  Richard has since married and moved to Massachusetts with his partner.  Through our association I learned that real estate brokerage should based on Ethics, Kindness and Human Dignity for all. He did it the RIGHT WAY.

Richard is happy in a new career, teaching - Great to know; new adventures - onward!

My intent is to inform.  As a secondary goal I will post real estate trends, express my opinion and pass on information and predictions from what I feel to be reliable sources.  I will try to be concise and time/date stamp information so we can check down the road and see how accurate it was.  Feel free to chime in any way you see fit.  I reserve the right to edit, post or not post information.  Also, please feel free to contact me via email - mjthompsonRE@gmail.com with any questions or comments.

Above all else, do your due diligence!  Posts on this blog are for information purposes only and do not in any way mean you should rush out and do anything.  I hope to explore and discover along with you.   The object and goal is to track opinions, statements and predictions and then back check for accuracy.  I will pick and choose what I feel is interesting from a variety of sources.  It should be fun ...   please approach this blog as just that - informative - fun.  Please enjoy and don't forget - PLAY NICE in this sandbox.

Thank you,

Michael

Michael Thompson Real Estate

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