Foreclosures in Seattle Spring 2009- News and updates

Seattle was listed as 91^st in US regions for foreclosures, which was down from 81^st in January 2009. The Seattle real estate market is less flooded with this inventory than Pierce County or Snohomish Counties, but the February 2009 filings increased faster than the rest of the nation. This brought the total to nearly 1,000 foreclosure listings in King County.

The neighborhood with the most foreclosures in Madrona, with 32 listed in February 2009. This is a mixed neighborhood including some recently gentrified areas and some large mansions. Many new townhomes are under construction in this area as well, and defaults by builders may also have lead to the increase of foreclosures in this neighborhood.

Foreclosed homes reduced the median home price in Seattle by 19% to $269,000. This is still higher than the national average of $165,000. In 2008,the number of foreclosures in Seattle increased 108%. The average price of a foreclosed home was $248,000.

Fannie Mae announced a new policy on pre-foreclosure short sale transactions beginning effective March 1, 2009. The program requires as little as 3% down payment, with no appraisal required, for owner-occupied homes. Fannie Mae has another loan available for second home-buyers that requires 10% down payment. Consult with your real estate agent for up-to-date information on these programs.

Many feel that the Seattle area has reached its peak of foreclosure filings as the number of new foreclosed homes on the market is beginning to dwindle. From July 2008 to October 2008, the number of foreclosures listed in all of King Country dropped from 730 to 643. 

 

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