Tips for buying a Seattle Foreclosure

1. Be careful with the legal documents when purchasing a foreclosed home and work with an experience real estate agent. One home in Seattle has been in lawsuit for over 22 years, when an owner refused to move out a house after it was sold.
2. Beware of many scams. In some states, there are no penalties and no criminal charges for fraud related to foreclosures.

3. Foreclosed property prices are not getting cheaper in this market and because of the foreclosure laws in Washington State.  

Foreclosure in Washington works by the lien holder notifying the home owner that they have not made their payments, which breaks their contractual obligation to that lien holder. Because of that action, they have the right to auction that property starting at the Default Judgment amount. Seattle auctions take place in the County Administration Building. At auction, the opening bid for that property is the Default Judgment amount plus back taxes or utility liens. Because of the way state laws are set up, foreclosure prices can not go down. Use a Washington State licensed real estate agent to help you navigate the foreclosure laws.

Foreclosed Homes in Seattle- Spring 2009 update

The Seattle real estate market has continued to be stronger than most of the nation, primarily due to the stability of its industries: aerospace and high tech. However, even Seattle has experienced a glut in the market of foreclosed homes, which has increased housing inventory and driven down prices.

The National Association of Realtors recently reported that more than one-third of all existing homes for sale in America are distressed, meaning they’re already in foreclosure or approaching. With three million homeowners expected to recede foreclosure notice this year, the Seattle market place continually ranks lower than many other cities.  

Washington ranked 25^th as most-active state for foreclosures in December 2008. The Seattle area 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.

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. 

 

Seattle home for sale

Seattle Real Estate News

The housing market in Seattle has depreciated only about 14%, compared to the national average of 21% but home sales were reduced in number by 40% from last year. The average time to sell a home is still over 100 days in Seattle. Home prices in Seattle are now close to theirs lows in 2004. The median price of a home in Seattle is $299,000. Though prices were down 11% in January 2009, this ranks Washington 45^th compared to the other 50 state’s home devaluations. Home sales in Seattle increased by 5% in February 2009, and this may be a good indicator of a return to a healthy real estate market.

 In stable neighborhoods like Queen Anne, homes turnover, on average, every 17 years. In other close-in neighborhoods, such as Ballard, Capital Hill, and Wallingford, the average turnover is less. However, recent zoning laws have raised height requirements in many neighborhoods, which have fueled condo development in past years.

Once zoned for three to four stories, the desire to increase density and reduce sprawl convinced city planners to raise height limitations in these neighborhoods, sometimes to 20 stories. In Seattle neighborhoods where zoning laws have recently been changed, such as Ballard and Capital Hill, construction has stalled. Cranes occupy construction ditches in South Lake Union and Belltown.

REAL ESTATE NEWS IN SEATTLE

The housing market in Seattle has depreciated only about 14%, compared to the national average of 21% but home sales were reduced in number by 40% from last year. The average time to sell a home is still over 100 days in Seattle. Home prices in Seattle are now close to theirs lows in 2004. The median price of a home in Seattle is $299,000. Though prices were down 11% in January 2009, this ranks Washington 45^th compared to the other 50 state’s home devaluations. Home sales in Seattle increased by 5% in February 2009, and this may be a good indicator of a return to a healthy real estate market.

Best Neighborhoods for First TIme Home Buyers in Seattle

What are the best neighborhoods in Seattle for a first home?

Because of their lower price to square foot values, the best neighborhood for first time buyers in Seattle are Ballard, Fremont and West Seattle, These neighborhoods have a good supply of homes for sale at starter home prices. That being said, townhouses and condo in all the close-in neighborhoods are also offering incentives, especially those under construction or recently completed. Newly built projects in the Westlake area, Belltown, and Capital Hill are all lowering their prices to attract buyers.

Ballard

The Ballard neighborhood is high on the walkability meter, with new restaurants and stores opening along Market Street. Condo conversions and town homes are being built along this commercial core. The small cottages that Ballard is known for also provide opportunity for new homebuyers, as many of these small cottages are just the right size for a small family or couple.

Fremont

Fremont has seen a boom in recent years in condominium conversions and construction. This hip area has some of the best bar scene and nightlife in Seattle and is mecca for young singles. This eclectic neighborhood is just a short bus or bike ride to downtown or the University District

West Seattle

West Seattle still has some of the lowest home prices in the Seattle metro area. Houses for sale in West Seattle are about 15% lower than north of the ship canal. This area is a bit more remote, but the commute to downtown is no longer than from neighborhoods in the north, like Green Lake or Ravenna. West Seattle is like a suburb because it has retained a small town charm. Surrounded by Elliott Bay, this quaint neighborhood is a great starting point for those looking for a small home for sale at a good price.

Starter Home for Sale Seattle

First Home Buyers in Seattle

Buying your first home is a challenge. Charles Grimes has been a real estate consultant for 30 years, and is a real estate agent with Coldwell Banker. He can help you decide if this is the right time for you to purchase a home and chose the right home for you.

Seattle posts 14% real estate market increase. LA Times Reports

Los Angeles Times reported that Seattle prices rose 14.9% in the first quarter, making it the fifth most expensive housing market in the USA. The average home price is now $476,8000, up from $415,1000 at the beginning of 2008.

Los Angeles Times report from May 25, 2008

Buying or Selling a Home in Seattle?

Seattle Garden on Queen Anne Hill