November
16

Posted In: Bellingham, Homes Sales by GMiller

NEWS RELEASE

COLDWELL BANKER REAL ESTATE SURVEY FINDS NEW TREND IN COLLEGE TOWNS: “PARENT INVESTORS” BUYING HOMES VS. SPENDING ON RENT OR DORMS

Coldwell Banker Home Listing Report Released Ranking Affordability of College Towns; Muncie, Ind. Most Affordable College Town; Palo Alto, Calif. Most Expensive

PARSIPPANY, N.J. (Nov. 11, 2010) – Every fall, parents wave goodbye as their college-bound kids pack up their belongings, make the drive down university lane and prepare for football games, mid-terms and freedom.  While college living is often associated with dorms and campus housing, Coldwell Banker Real Estate LLC discovered that many parents are opting to purchase a home rather than spend money on rent or dorm fees. According to a recent survey among the Coldwell Banker® network of real estate professionals in college towns, 64 percent see a significant number of “parent investors” buying homes for their kids to live in while attending the university.

To see how college towns stack up in home price affordability, Coldwell Banker Real Estate released its new College Home Listing Report (College HLR) today, which provides the average home listing price of four-bedroom, two-bathroom properties listed for sale between April and September 2010 on coldwellbanker.com in markets home to the 120 schools in the Football Bowl Subdivision.  With almost two-thirds of the College HLR markets having subject homes priced less than $250,000 (78 in total), college towns prove to be a touchdown for homebuyers.

The top 10 most affordable markets in the Coldwell Banker Real Estate College Home Listing Report are:

Rank

College

Town, State

2010 Average Home Listing Price

1

Ball State University Muncie, Ind.

$105,115

2

University of Buffalo: The State University of New York Buffalo, N.Y.

$117,223

3

University of Memphis Memphis, Tenn.

$135,090

4

University of South Carolina Columbia, S.C.

$137,707

5

University of Akron Akron, Ohio

$139,711

6

Eastern Michigan University Ypsilanti, Mich.

$141,629

7

Ohio University Athens, Ohio

$141,964

8

Kent State University Kent, Ohio

$153,662

9

University of Toledo Toledo, Ohio

$155,286

10

Louisiana Tech University Ruston, La.

$157,110

“Towns that are home to major universities have a special vibe you just don’t find anywhere else,” said Jim Gillespie, chief executive officer, Coldwell Banker Real Estate and alumni of the Illinois Fighting Illini. “It’s about more than just great sports and local flavor. College towns offer rich culture and most have steady economic bases oftentimes highlighted by outstanding medical and research facilities.”

While not all college towns are affordable, even the more expensive markets make great places to live.

The top 10 most expensive markets in the Coldwell Banker Real Estate College Home Listing Report are:

Rank

College

Town, State

2010 Average Home Listing Price

1

Stanford University Palo Alto, Calif.

$1,385,652

2

University of Hawaii Honolulu, Hawaii

$833,439

3

University of California LA Los Angeles, Calif.

$833,087

University of Southern California Los Angeles, Calif.

$833,087

4

University of Colorado Boulder, Colo.

$791,877

5

Boston College Chestnut Hill, Mass

$791,408

6

United States Naval Academy Annapolis, Md.

$671,151

7

San Jose State University San Jose, Calif.

$650,111

8

University of California Berkeley Berkeley, Calif.

$636,958

9

University of Washington Seattle, Wash.

$624,338

10

Northwestern University Evanston, Ill.

$559,855

Additional Survey Findings:

Coldwell Banker Real Estate also found that college towns have continued to be a hot spot for real estate investing, regardless of the downturn in the economy. Seventy-three (73) percent of Coldwell Banker real estate professionals surveyed said they see a significant number of investors buying homes near campus and renting them to people in the community, with only 21 percent seeing a decrease in this trend over the past five years.

“Our survey suggests two types of investors see value in college towns,” Gillespie said.  “Long-term investors take advantage of the steady stream of renters, including students, professors and university officials. “‘Parent investors’ buy homes for their child to live in while attending college.  Roommates provide rental income for the mortgage, and the hope is that students care for the home and it appreciates over time.”

With so many benefits to living in a college town, they aren’t just for investors. Alumni and retirees are finding reasons to re-live their glory days, as well. Fifty one (51) percent of the survey respondent noted they see a lot of alumni homebuyers, and 49 percent see a significant number of retirees moving to their college town.

“It’s not just students who want to live near campus, attend games and take interesting classes,” Gillespie said. “For a few years now, college towns have been popular markets for alumni and retirees. I’m a great example,” he said. “I purchased a home in Champaign, Ill. to be near my alma mater, the University of Illinois, and it’s one of the best decisions I’ve ever made, from both a lifestyle and a financial perspective.”

Fun Fact:

The survey of Coldwell Banker real estate professionals uncovered that a college sports team’s performance affects more than just a football ranking; nearly one quarter (24 percent) of respondents indicated that the success of a college’s sports teams can have an impact on the local real estate market.

For a fun look at fans’ perspectives, Coldwell Banker Real Estate spoke with dozens of people on a fall football Saturday for insider thoughts on what makes their college town special.  To see these interviews, please visit Coldwell Banker On Location: http://www.youtubecom/watch?v=fmglCxq1sck.

Below is the full College HLR ranking. Additional information on the College HLR and the larger HLR of U.S. and international markets can be found at http://hlr.coldwellbanker.com/.

Rank

College

Town, State

2010 Average Home Listing Price

1

Ball State University Muncie, Ind.

$105,115

2

University of Buffalo: The State University of New York Buffalo, N.Y.

$117,223

3

University of Memphis Memphis, Tenn.

$135,090

4

University of South Carolina Columbia, S.C.

$137,707

5

University of Akron Akron, Ohio

$139,711

6

Eastern Michigan University Ypsilanti, Mich.

$141,629

7

Ohio University Athens, Ohio

$141,964

8

Kent State University Kent, Ohio

$153,662

9

University of Toledo Toledo, Ohio

$155,286

10

Louisiana Tech University Ruston, La.

$157,110

11

Western Michigan University Kalamazoo, Mich.

$159,214

12

Tulane University New Orleans, La.

$163,818

13

Utah State University Logan, Utah

$163,977

14

University of Nevada Las Vegas Las Vegas, Nev.

$165,096

15

University of Nebraska Lincoln, Neb.

$165,471

16

Kansas State University Manhattan, Kan.

$167,478

17

Texas Christian University Fort Worth, Texas

$170,505

18

University of Tulsa Tulsa, Okla.

$171,201

19

Oklahoma State University Stillwater, Okla.

$171,458

20

Baylor University Waco, Texas

$171,490

21

Brigham Young University Provo, Utah

$176,550

22

University of North Texas Denton, Texas

$176,704

23

Bowling Green State University Bowling Green, Ohio

$179,297

24

Central Michigan University Mt. Pleasant, Mich.

$180,033

25

Syracuse University Syracuse, N.Y.

$180,201

26

Texas Tech University Lubbock, Texas

$180,323

27

Southern Methodist University Dallas, Texas

$180,885

28

University of Notre Dame South Bend, Ind.

$183,120

29

Ohio State University Columbus, Ohio

$184,045

30

Arkansas State University Jonesboro, Ark.

$184,045

31

Wake Forest University Winston-Salem, N.C.

$185,020

32

Purdue University Lafayette, Ind.

$186,360

33

University of Southern Mississippi Hattiesburg, Miss.

$186,523

34

University of Louisiana Monroe Monroe, La.

$188,192

35

University of Houston

Rice University

Houston, Texas

$189,891

36

Iowa State University Ames, Iowa

$190,943

37

East Carolina University Greenville, N.C.

$191,307

38

University of Texas El Paso El Paso, Texas

$195,254

39

Western Kentucky University Bowling Green, Ky.

$196,058

40

University of Pittsburgh Pittsburgh, Pa.

$196,282

41

Boise State University Boise, Idaho

$197,685

42

Troy University Troy, Ala.

$199,962

43

Indiana University Bloomington, Ind.

$201,005

44

University of Central Florida Orlando, Fla.

$202,957

45

Vanderbilt University Nashville, Tenn.

$203,058

46

University of Georgia Athens, Ga.

$204,153

47

Miami University Oxford, Ohio

$205,275

48

University of Wyoming Laramie, Wyo.

$206,000

49

University of Nevada Reno, Nev.

$209,799

50

University of Louisville Louisville, Ky.

$210,168

51

University of Oklahoma Norman, Okla.

$211,352

52

University of Kentucky Lexington, Ky.

$211,485

53

University of Mississippi Oxford, Miss.

$211,883

54

University of Kansas Lawrence, Kan.

$213,008

55

Middle Tennessee State University Murfreesboro, Tenn.

$214,906

56

University of Missouri Columbia, Mo.

$215,593

57

Washington State University Pullman, Wash.

$217,954

58

University of Tennessee Knoxville, Tenn.

$218,895

59

Texas A&M University College Station, Texas

$219,445

60

Fresno State University Fresno, Calif.

$219,857

61

Northern Illinois University DeKalb, Ill.

$221,322

62

Mississippi State University Starkville, Miss.

$224,201

63

University of Louisiana Lafayette Lafayette, La.

$225,157

64

United States Air Force Academy Colorado Springs, Colo.

$228,245

65

University of Arkansas Fayetteville, Ark.

$229,010

66

Arizona State University Tempe, Ariz.

$229,223

67

New Mexico State University Las Cruces, N.M.

$235,149

68

University of Cincinnati Cincinnati, Ohio

$235,351

69

Marshall University Huntington, W. Va.

$235,666

70

University of Illinois Champaign, Ill.

$235,702

71

Michigan State University East Lansing, Mich.

$238,874

72

Louisiana State University Baton Rouge, La.

$239,941

73

University of Idaho Moscow, Idaho

$240,558

74

Duke University Durham, N.C.

$241,625

75

Auburn University Auburn, Ala.

$241,667

76

University of Florida Gainesville, Fla.

$247,974

77

University of South Florida Tampa, Fla.

$249,614

78

University of Alabama Tuscaloosa, Ala.

$250,261

79

University of Connecticut Storrs, Conn.

$250,272

80

Florida State University Tallahassee, Fla.

$259,080

81

University of Iowa Iowa City, Iowa

$259,952

82

University of Minnesota Minneapolis, Minn.

$261,401

83

University of Michigan Ann Arbor, Mich.

$269,283

84

Clemson University Clemson, S.C.

$272,155

85

Virginia Tech University Blacksburg/Roanoke, Va.

$272,492

86

Penn State University State College, Pa.

$276,900

87

West Virginia University Morgantown, W.Va.

$279,086

88

University of Miami

Florida International University

Miami, Fla.

$281,449

89

North Carolina State University Raleigh, N.C.

$282,326

90

University of Texas Austin, Texas

$292,326

91

University of Wisconsin Madison, Wis.

$295,174

92

University of Alabama Birmingham Birmingham, Ala.

$297,948

93

University of Arizona Tucson, Ariz.

$301,652

94

University of Virginia Charlottesville, Va.

$302,594

95

Georgia Tech University Atlanta, Ga.

$318,666

96

Temple University Philadelphia, Pa.

$325,162

97

University of Oregon Eugene, Ore.

$325,241

98

Oregon State University Corvallis, Ore.

$326,526

99

University of Maryland College Park, Md.

$338,215

100

University of New Mexico Albuquerque, N.M.

$347,347

101

Florida Atlantic University Boca Raton, Fla.

$378,692

102

Colorado State University Fort Collins, Colo.

$390,168

103

University of North Carolina Chapel Hill, N.C.

$393,220

104

United States Military Academy West Point, N.Y.

$412,804

105

University of Utah Salt Lake City, Utah

$428,193

106

Rutgers University New Brunswick, N.J.

$457,810

107

San Diego State University San Diego, Calif.

$540,709

108

Northwestern University Evanston, Ill.

$559,855

109

University of Washington Seattle, Wash.

$624,338

110

University of California Berkeley Berkeley, Calif.

$636,958

111

San Jose State University San Jose, Calif.

$650,111

112

United States Naval Academy Annapolis, Md.

$671,151

113

Boston College Chestnut Hill, Mass.

$791,408

114

University of Colorado Boulder, Colo.

$791,877

115

University of California LA

University of Southern California

Los Angeles, Calif.

$833,087

116

University of Hawaii Honolulu, Hawaii

$833,439

117

Stanford University Palo Alto, Calif.

$1,385,652

Methodology: College Home Listing Report

The Coldwell Banker College Home Listing Report includes residential real estate listings appearing on ColdwellBanker.com between April and September 2010 for all real estate markets home to the 120 Football Bowl Subdivision schools, which each had at least six home listings during the timeframe.  This market data includes property listings from Coldwell Banker affiliates as well as listings from other Realogy franchise brands that fit the same four-bedroom, two-bathroom criteria.

Methodology: Coldwell Banker Real Estate Professionals Survey

Coldwell Banker Real Estate conducted an online survey of 425 self-selected real estate professionals who represent markets home to major college or universities.

About Coldwell Banker®

Since 1906, the Coldwell Banker® organization has been a premier provider of full-service residential and commercial real estate.   Coldwell Banker is the oldest national real estate brand in the United States and today has a network of nearly 92,000 sales associates and brokers working in approximately 3,300 offices in 50 countries and territories. The Coldwell Banker brand is known for creating innovative consumer services as recently seen by being the first national real estate brand to augment its web site www.coldwellbanker.com for smart phones, the first to create a iPhone application and the first to fully harness the power of video in real estate listings, news and information through its Coldwell Banker On LocationSM YouTube channel.  The Coldwell Banker system is a leader in specialty markets such as resort, new homes and luxury properties through its Coldwell Banker Previews International® marketing program. Coldwell Banker Real Estate LLC fully supports the principles of the Fair Housing Act and the Equal Opportunity Act.  Each office is independently owned and operated.

Media Inquiries: David Siroty

Coldwell Banker Real Estate LLC

973.407.7199

david.siroty@coldwellbanker.com

Katy Layton

CooperKatz for Coldwell Banker Real Estate LLC

917.595.3057

klayton@cooperkatz.com

September
16

Value is what’s selling in the current housing market. August activity continues to favor buyers here in Whatcom County.

Pricing Correctly Pays

The market is good for sellers who price their homes correctly. Homes that are well priced from the start, in all price ranges, are selling. And when they do sell, they’re closer to the asking price. If sellers plan to start high and gradually go lower, they’ll price themselves out of the market.

Value Hunters

The current pool of buyers are “value-hunters” with stable income and good credit. They are taking the opportunity to purchase homes they couldn’t afford a few years ago. The affordability index is as good as it been in three years. Lower interest rates as well as lower prices contribute to the affordability index.

A Look at the Numbers

Prices on last month’s closed single family homes were down 8%. The median sales price was $256,000 for the month and $250,000 year-to-date from the same period last year. This was down from $265,000 last year.

Whatcom County added 350 single family homes to the inventory. With August additions, the total single family inventory stands at 1,813, which is up 11.5% for last year.

Pending sales of single family homes were down 23%, while the year to date totals were down 8.5%. Closed sales for the month of August were down 6%. However, year-to-date closings were up 4.5%.

Please read Coldwell Banker’s Monthly Market Snapshot for a further analysis of the current residential real estate market.

September
13

Last week, CNN Money posted its Top 25 Best Places to Retire list. Bellingham was named to the #5 spot.

CNN Money - Bellingham #5 Best City for Retirees

CNN Money cited the city’s easy access to both Seattle and Vancouver, BC, nationally recognized hospital, international airport and state college as making it worth the number five position in its list of best places for retirees to live. The city’s lack of income tax was also noted as a significant draw for retirees.

Rounding out the top five best places for retirees to live were Durham, NC; Hanover, NH; Lexington, KY; Prescott, AZ; and Bellingham. Click here to see the rest of the top 25 locations.

July
28

Not even the lowest interest rates in decades could entice wary house-hunters last month. Homes sales in Whatcom County remain sluggish with pending sales about even from the same time last year but not all numbers were down.

Year to date closed residential sales increased 13%. Including condominiums closed sales were up nearly 17% year to date. Brokers applauded congressional approval of legislation to extend the tax credit deadline on contracts signed by the April 30 deadline. The deadline has been pushed out to September 30, 2010.

In general consumers seem to be stuck in uncertainty surrounding the world’s economic concerns, our lack of jobs and the rollercoaster of the stock market. They seem to be hunkering down despite the lowest interest rates in years.

Buyers were quite shy, as pending sales posted a 20.5% decrease to 205 from June of 2009. Many would-be June buyers already bought during the credit period. Sellers seemed to be more confident, so new listings increased 14.6% to 360 over last June.

In response, inventory levels increased 7% to 2,177 over last year, which predictably exerted downward pressure on prices. The June median sales price of $246,500 was a 7.9% decrease from last year.

Negotiations inched slightly back toward the seller by 0.5% to arrive at 92.9% of their original list price. Market time decreased 11.5% to 109 days; whilc months of supply decreased 9.0% to 12.4 months.

July
9

Inman News recently ran this article from Mary Umberger on the five trends of Gen Y homebuyers. Pretty interesting look at how this generation (roughly those born between 1977 and 1989) approaches home buying.

Click here to go to the article, or you can read it here:

For so long, everything in housing has been Baby Boom, Baby Boom, Baby Boom. There are so many of them — about 76 million, born between 1946-64 — and their spending habits so influential that for years they’ve driven the decision-making process at all levels of the housing world.

The successor demographic, dubbed Generation X, has started to be heard. But a California real estate consulting firm is looking further down the road, and charting the housing preferences of Generation Y, sometimes called the Echo Boomers or Millennials.

They’re going to be influential — though maybe for what they’re not going to do rather than what they will do, according to Tim Cornwell, a researcher for the Concord Group, a housing consultancy in San Francisco that in the past year has been studying their housing attitudes.

“Our generation has been raised in a world where they’re told every single day they can have everything they want,” he said of Generation Y, of which he is a member, having been born in 1980. The reality of today’s economy may make that mindset a little tricky for them, he said.

Five things to know about Gen Y and housing:

1. Demographers differ on when members of Generation Y started to be born, though one often-cited bracket for the age group is 1977 through 1989, years that slightly overlap with Generation X, which analysts generally say were born 1965 through 1980. Generally speaking, the 60 million or so Americans in the Y group are now in their 20s, and Cornwell said they haven’t been studied much yet.

2. Where baby boomers and Gen X started to make themselves known in the real estate market in their 20s, Generation Y will be taking its time, for a couple of reasons, Cornwell said.

For one thing, they’re postponers. “They graduate from college and use graduate school to postpone adulthood or they travel” for an extended period after school, he said. These decisions limit their earnings and any savings that might otherwise go into homebuying, he said.

And then there’s the economy.

“The economic picture for Generation Y is depressingly ugly,” he said. In his company’s research, 40 percent said they’re still getting significant financial help from their families.

Thus, they’re not likely to begin buying real estate in significant numbers until they hit the age of 35, he said.

“For most people in their mid-to-late 20s, (homebuying) isn’t even in the conversation,” Cornwell said. “Most of us can’t afford to buy our parents’ houses. Either our preferences have to change or density issues will come up.”

3. Cornwell said Gen Y has a “mobile mindset,” where lifestyle is everything.

“Used to be, you picked a job and you moved to the city where that job was,” Cornwell said. But this group values locale and amenities first, and may be inclined to move to try out different places and will look to wedge in their jobs and careers accordingly.

That transience could affect neighborhood turnover rates and possibly mortgage terms, he said.

4. Their affinity for neighborhood amenities means that their real estate purchases, when they happen, probably will be in so-called “inner ring” suburbs, near-in to larger cities, Cornwell said, though there’s a difference of opinion within the research that’s been done so far.

“Everybody in the industry likes to say that Gen Y will look to homes that are more urban and attached,” such as townhouses and condominiums, he said. “That they’ll look for (places that offer some benefits of urban living, proximity to transit and culture).

“But I think we’re more traditional than people give us credit for, that we will look to single-family homes in the first-ring suburbs,” he said. Those Gen Yers, once they hit 35 or thereabouts, will be having babies and will want to reconcile “urban amenities” with schools and safety, and the first-ring towns often offer enough of the urban lifestyle to satisfy the need, he said.

This desire doesn’t bode particularly well for the distant suburbs that sprang up during the housing boom, he said. Gen Y doesn’t want to spend that much time commuting, he said.

5. What do they want in a house? There’s a stated preference for open floor plans, Cornwell said.

In Concord Group research, the younger Gen Y respondents (20-24) were less interested in a larger home size the next time they moved. They want a big kitchen (though they’re inclined to eat out), and a garage and some yard space.

They have little interest in a formal dining room or a media or game room.

About one-fourth of all the Gen Y people surveyed said they’d pay 5 percent to 10 percent extra to live a 10-minute walk or bike ride (or short car trip) to get to work or retail services.

# # #

Mary Umberger is a freelance writer in Chicago.

June
21

Julia Hansen, Professor of Economics at Western Washington University, gave a presentation to the Building Industry Association of Whatcom County (BIAWC) last month. She spoke to the group about the local housing and construction market, looking at key metrics such as recent permit activity, median home price and sales.

In her presentation, Julia identified the following current/near-term risks for Bellingham and Whatcom County:

  • Expiration of homebuyer tax credits
  • Mortgage rates rising by year-end
  • Increasing delinquencies and foreclosures in Whatcom County
  • Price pressure from “shadow inventory”
  • Continued slowdown of internal migration in the U.S. (due in part to “underwater” homeowners
  • Potential for weak macroeconomic recovery

But, not to leave things on a sour note, Julia wrapped up her talk with a look at some of the local positive factors for the short term:

  • Local employment growth is coming — the state gained jobs in Jan and March
  • WA State recovery is expected to outpace the national recovery
  • Canadian dollar is strong
  • Our border is with Canada, not Greece!

Julia’s presentation includes loads more useful data and information on the local housing market. Click here to download the PowerPoint version in its entirety.

May
20

Inman News is a real estate website geared toward realtors, which I turn to regularly for updates and articles. A recent story from Inman details the latest on the national foreclosure situation, identifying the top-10 hardest hit locations. Here’s the article:

Top 10 highest foreclosure rates: Las Vegas leads

By Inman News

Created 2010-05-13 01:00

Fewer people received motgage default notices in April, according to a report by foreclosure data company RealtyTrac. At the same time, bank repossessions shot up to a new monthly high.

“(Those) were two important milestones…that show foreclosure activity has begun to plateau — but at a very high level that will not drop off in the near future,” said James J. Saccacio, RealtyTrac’s CEO, in a statement.

“We expect a similar pattern to continue for most of this year, with the overall numbers staying at a high level and ripples of activity hitting the various stages of the foreclosure process as lenders systematically work through the backlog of distressed properties,” Saccacio added.

Total foreclosure activity — default notices, scheduled auctions and bank repossessions combined — fell two percent year-over-year, and nine percent month-to-month, to 333, 837 properties. That decrease comes after foreclosure activity ramped up in the first quarter, mostly in the place of properties repossessed by the lender.

Default notice filings fell 27 percent year-over-year and 12 percent from the previous month, to a total of 103,762 properties. Foreclosure auction filings rose one percent year-over-year, but fell 13 percent from March, to 137,643 properties.

Bank repossessions (REOs) were up one percent from the previous month, but rose a dramatic 45 percent from April 29 to a new monthly high: 92,432 properties. The previous peak was in December when REOs hit 92,182, the report said. Bank repossessions rose 35 percent year-over-year in the first quarter.

California, Florida, Michigan, Illinois and Nevada made up 52 percent of the total foreclosure filings in the U.S., the report said. California and Nevada also dominated the 10 metropolitan areas with the highest foreclosure rates. Only Reno-Sparks, Nev. recorded an increase in year-over-year foreclosure activity in April — the rest saw a decrease in activity, the report said.

The U.S. foreclosure filings rate: 1 in 387 housing units received a foreclosure filing in April.

Top 10 state with the highest foreclosure rates:

  1. Nevada: 1 in 69 units
  2. Arizona: 1 in 169 units
  3. Florida: 1 in 182 units
  4. California: 1 in 192 units
  5. Utah: 1 in 221 units
  6. Idaho: 1 in 226 units
  7. Michigan: 1 in 237 units
  8. Illinois: 1 in 280 units
  9. Georgia: 1 in 288 units
  10. Colorado: 1 in 337 units

Top 10 metro areas with the highest foreclosure rates:

  1. Las Vegas: 1 in 60 units
  2. Modesto, Calif.: 1 in 101 units
  3. Merced, Calif.: 1 in 104 units
  4. Cape Coral-Fort Myers, Fla.: 1 in 105 units
  5. Stockton, Calif.: 1 in 108 units
  6. Riverside-San Bernadino-Ontario, Calif.: 1 in 110 units
  7. Reno-Spark, Nev.: 1 in 112 units
  8. Vallejo-Fairfield, Calif.: 1 in 117 units
  9. Bakersfield, Calif.: 1 in 120 units
  10. Phoenix-Mesa-Scottsdale, Ariz.: 1 in 136 units

Source: RealtyTrac.

RealtyTrac bases its foreclosure reports on foreclosure filing data from 2,200 counties across the country, accounting for more than 90 percent of the American population.

May
17
Whatcom County brokers reported 309 pending sales( residential single family) during April, and increase of more than 29% from the same month a year ago. MLS figures show inventory has increased 7.5%, closed sales jumped almost 19% and sales prices dropped nearly 6.5%.
The home buyer tax credit did what it was designed to do; it helped with stabilizing the housing market which in turn helped stimulate the economy. However, the market remains biforcated with the lower end ( under $300,000) selling and the high end ( over $500,000 ) struggling. Price is so important and especially on the high end homes. There are two types of homes on today’s market. Well priced homes in good condition that are selling within 60 days, and over-priced home that will be sitting on the market a long time.
Moving forward, local home buyers will continue to experience a purchase power advantage thanks to historically low interest rates and lower adjusted home prices.

Whatcom County brokers reported 283 pending sales during the month of April, representing an increase of more than 70% from the same month a year ago. MLS figures show local home inventory has increased 14.3% during this same period, closed sales jumped by almost 15%, and median sales prices dropped nearly 4%.

1 Month

1 Year

15 Months

Mar 10

Apr 10

% Change

Apr 09

Apr 10

% Change

Feb 09

Apr 10

% Change

For Sale

1458

1522

4.4%

1332

1522

14.3%

1189

1522

28%

New Listing

458

404

-11.8%

410

404

-1.5%

290

404

39.3%

Sold

167

149

-10.8%

130

149

14.6%

78

149

91%

Pended

182

283

55.5%

166

283

70.5%

122

283

132%

Homes For Sale Vs. Sold Vs. Pending Vs. New Listing

The following graph compares the number of homes for sale vs. the number of homes sold vs. the number of pending sales vs. the number of new listings, between Feb of 2009 and April of 2010 (click to enlarge).

Number of Homes For Sale Vs. Sold Vs. Pending VS. New Listing (Feb 09 - April 10)

The Homebuyer Tax Credit Impact

The homebuyer tax credit did what it was designed to do: it helped with stabilizing the housing market, which in turn helped stimulate the economy. You can see how the number of pending home sales rose consistently leading up to the expiration of the homebuyer tax credit, in the graph above.

However, the market remains bifurcated, with the lower end (under $300,000) selling and the high end (over $500,000) struggling. Price is incredibly important, especially when it comes to high-end homes.

There are two types of homes on today’s market: 1) Well-priced homes in good condition that are selling within 60 days, and 2) Over-priced homes that will be sitting on the market a long time.

Moving Forward

Moving forward, local home buyers will continue to experience a purchase power advantage thanks to historically low interest rates and lower adjusted home prices.

2010 So Far

Lastly, here’s a table that summarizes a plethora of local housing statistics for the first four months of this year:

Date

1/10

2/10

3/10

4/10

For Sale

1186

1277

1458

1522

New Listing

356

356

458

404

Sold

91

108

167

149

Pended

119

163

182

283

Months of Inventory (Closed Sales)

13

11.8

8.7

10.2

Months of Inventory (Pended Sales)

10

7.8

8

5.4

Absorption Rate (Closed Sales) %

7.7

8.5

11.5

9.8

Absorption Rate (Pended Sales) %

10

12.8

12.5

18.6

Avg. Active Price

399

408

397

398

Avg. Sold Price

271

269

262

267

Avg. Sq. Ft. Price

145

150

148

152

Sold/List Diff. %

97

96

97

97

Sold/Orig LP Diff. %

91

91

91

92

Days on Market

96

100

91

91

Avg CDOM

124

133

124

110

Median

245

244

233

253

*All reports are published May 2010, based on data available at the end of April 2010. This representation is based in whole or in part on data supplied by the NWMLS. Neither the Board or its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Board or its MLS may not reflect all real estate activity in the market. Report reflects activity by all brokers participated in the MLS.
April
23

This recent article from the Bellingham Herald shares how the local market, particularly Bellingham, is edging toward a neutral market. You can click the image below to read the entire article.

Bellingham Herald - Bellingham Real Estate Edging Back Toward a Neutral Market

While Bellingham has been moving toward a neutral market, Gragg Miller points out in this article that some Whatcom County communities are doing the opposite. Some areas, including Lynden, the Mount Baker area, Ferndale and others are moving more toward a buyer’s market, thanks to a surge in housing inventory.

From this April 19 article:

“Some of these areas are having more difficulty absorbing this new inventory,” Miller said. “Places like Ferndale and Blaine are seeing greater increases in housing units sold, but it’s not enough to keep up with the number of homes coming on the market.”
Read more: http://www.bellinghamherald.com/2010/04/16/1393139/bellingham-real-estate-edging.html#ixzz0mEHtrcK2

“Some of these areas are having more difficulty absorbing this new inventory,” Miller said. “Places like Ferndale and Blaine are seeing greater increases in housing units sold, but it’s not enough to keep up with the number of homes coming on the market.”

Overall the demand ratio in Whatcom County was 6.9 to 1 for March. A ratio of 7 to 1 is considered a buyer’s market, while a ratio of 5 to 1 is considered a neutral market. Lynden and the Mount Baker areas had a demand ratio of 10 to 1 or higher, followed by Ferndale (9.1 to 1), Blaine/Birch Bay (8.1 to 1), Nooksack (7.5 to 1), Sudden Valley (6.2 to 1) and Bellingham (5.3 to 1).

Read more here.

April
20

Brokers reported activity at levels we haven’t seen in a while.  Notably, while entry-level home sales have been driving the market, brokers also reported strong activity at the upper end of the price spectrum.

For the first quarter of 2010 Whatcom County also experienced a rise in inventory levels as well as a positive increase in pending and closed sales. However, the median price continued to drop due to the shift of buyers to the more affordable priced homes.  For the quarter prices were down about 8% throughout Whatcom County.

Pending sales of used residential homes were the strongest in Lynden (up 50%) and Blaine/Birch Bay (up 39%). Overall the county was up 13% from the first quarter of 2009. Closed used single family sales were up 27% in the first quarter of 2010 over the the same period in 2009. Ferndale, Blaine/Birch Bay and Lynden respectively increased the most. 68%, 32% and 25% respectively.

Median prices were down 13% in Bellingham, down 3.5% in Ferndale, up 6.5% in Blaine/Birch Bay, down 4.5% in Lynden and down 10% in Sudden Valley.

The surge, in sales, in Whatcom County is thanks to the opportunities that have been afforded to homeowners through the federal tax credit, low interest rates and increased affordability. We have seen a dramatic shift of median prices since 2007. In the first quarter of 2007 58% of the sales were under $300,000 in Whatcom County. In the first quarter of 2010 the percentage was 75. Ferndale had the largest increase from 48% in 2007 to 78% in 2010.