Chuck Cady & Associates Blog by Chuck Cady & Associates

FEATURED LISTING - Lake Pointe Luxury Condominium

Lake Point Luxury Condominium offered at $899,950. View the full listing by clicking here.

Fannie Mae/Freddie Mac bailout

A note from our "Preferred Lender", Connie Zinter- On September 7, 2008, it was announced that Fannie Mae and Freddie Mac will come under control of the U.S. Government. This is good news for the Real Estate Industry. With the recent problems in the Mortgage industry, it has been risky for investors to purchase the bonds that Fannie and Freddie needed to sell to meet their capital requirements. With the government stepping in, they will back the payments on these bonds. This is boosting investor confidence to purchase the bonds again which when purchased generate lower interest rates for the borrower. With the news of lower interest rates, customer sentiment should improve and with improved sentiment, the housing inventory should improve through more purchases. The government focus is to improve the economy so their plan is to manage the companies in a way that will generate more home sales. We’re looking forward to this new ..(read more)

Seattle holds the #1 spot for largest annualized % change...

According to the RPX (Residential Property Index) Monthly Housing Market Report released August 1, 2008 for May, Seattle continues to hold the #1 spot for the largest 5-year Annualized % Change and #2 in the 2-year Annualized % change out of the 25 Major Metropolitan Cities (MSA's - Metropolitan Statistical Areas) used by Radar Logic to compile these Real Estate Data reports. View the complete report at http://www.radarlogic.com/research/RPXMonthlyHousingMarketReportforMay2008.pdf

1st Time Home Buyer Tax Credit - Expiration Date of June 30, 2009

It's all over the news and time for 1st Time Home Buyers to jump. There is tons of inventory out there and now thanks to the recently passed bill HR 3221, there is a 1st time home buyer tax credit incentive! Following is a list of FAQ's compiled on the http://www.federalhousingtaxcredit.com website, a site dedicated to educating people about the 1st Time Home Buyer Tax Credit. Who is eligible to claim the $7,500 tax credit?
First time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs.

What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the ..(read more)

Cash Investment Requirement - Prohibition of Seller-Funded Down Payment Assistance

One of the many FHA provisions to H.R. 3221, the Housing and Economic Recovery Act of 2008 bill is the prohibition of Seller Funded Down Payment Assistance. This means that FHA will not recognize and/or accept seller donations for the purpose of down payments. SEC. 2113. CASH INVESTMENT REQUIREMENT AND PROHIBITION OF SELLER-FUNDED DOWN PAYMENT ASSISTANCE. Paragraph (9) of section 203(b) of the National Housing Act (12 U.S.C. 1709(b)(9)) is amended to read as follows: (9) CASH INVESTMENT REQUIREMENT- `(A) IN GENERAL- A mortgage insured under this section shall be executed by a mortgagor who shall have paid, in cash or its equivalent, on account of the property an amount equal to not less than 3.5 percent of the appraised value of the property or such larger amount as the Secretary may determine. `(B) FAMILY MEMBERS- For purposes of this paragraph, the Secretary shall consider as cash or its equivalent any amounts borrowed from a family ..(read more)

FHA Modernization - Good news for Buyers!

This information was published by the National Association of Home Builders. You can view the full articles by visiting their official online weekly newsletter at http://www.nbnnews.com/. Well you've probably heard by now that last week legislation approved H.R. 3221, the Housing and Economic Recovery Act of 2008. It contains several provisions that will allow the FHA to deliver a range of mortgage products more effectively. However, the FHA's minimum downpayment has been increased from 3% to 3.5%. The bill: Increases the current limit for FHA-insured mortgages to enable deserving potential buyers to purchase homes in more markets across the country. “Permanently raising the FHA loan limit to 115% of an area’s median home price, up to $625,500, will enable more creditworthy borrowers to purchase an FHA-insured home in high-cost markets,” said Dunn.

Also increases the floor for area FHA limits from $200,160 ..(read more)

Home Prices Fall, Rates Rise, Making Homes Less Affordable...

June 27th, Bloomberg reports: Homes Less Affordable as Prices Fall, Rates Rise, Zillow Says
By Sharon L. Lynch June 27 (Bloomberg) -- Rising mortgage rates are driving up the cost of buying a house even as prices fall, making property more expensive across the U.S., according to a new study by Zillow.com, an online provider of home valuations. Monthly payments on 30-year fixed mortgages are 6 percent to 10 percent higher in 41 of the top U.S. housing markets than they were two months ago. First-quarter prices have declined from a year earlier in 88 percent of those areas, Zillow said. ``We're going to need about a 30 percent decline in house prices if you are going to keep payments stable,'' said Morris Davis, a former senior economist with the Federal Reserve and now a real estate professor at the University of Wisconsin-Madison's School of Business. Seven Federal Reserve benchmark cuts since September have failed to lower mortgage rates as banks have ..(read more)

ATTENTION North Seattle Community Neighbors:

ATTENTION North Seattle Community Neighbors: The Haller Lake Community Club will be hosting a community meeting, tomorrow June 12th at 7:00pm with regards to the proposed North Seattle Jail site. If you are interested in attending this action meeting and voicing your concerns, visit the Haller Lake Community website for further details at: http://www.hallerlake.info/hallerlakejail.html

UPDATE North Seattle Municipal Jail (Public Forum)

A News Advisory was released by Mayor, Gregory Nickels announcing the dates for a public forum on the proposed municipal jail sites. You can read the release below or view the release on the Official City Site at http://www.seattle.gov/news/detail.asp?ID=8516&Dept=36 Seattle seeks feedback on possible municipal jail sites
Four dates set for public forums SEATTLE - The city of Seattle announced today it will hold public forums around the city to provide information and hear feedback about possible sites for a new Seattle Municipal Jail. While residents are welcome to attend any of the forums, each will focus primarily on a specific potential jail site, as outlined below. The forum dates and locations are: Thursday, June 26, from 6 to 9 p.m. at the Aerospace Machinists Union Hall A, located at 9125 15th Place S. – focus: West Marginal Way and Myers Way sites; Saturday, July 12, from 9 a.m. to noon, in the Wellness Center at North Seattle Community ..(read more)

Soft Existing-Home Sales Expected Near-Term But to Rise Midsummer

As reported by NAR (National Association of Realtors) on May, 7th 2008... A flat pattern in home sales activity should continue for the next couple months before improving over the summer, according to the latest forecast by the National Association of Realtors®. Lawrence Yun, NAR chief economist, said the extent of an expected recovery hinges on better access to affordable loans. "Things are beginning to improve, but the availability of affordable mortgages is uneven around the country and sometimes within metropolitan areas," he said. "As anticipated, we continue to look for a soft first half of the year, for both housing and the economy, before notable improvements in the second half. Some time is needed for FHA and new conforming jumbo loans to become widely available." The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in March, edged down 1.0 percent to 83.0 from a downwardly revised level of 83.8 in ..(read more)

What are your thoughts on a jail in your neighborhood?

As reported by the Seattle Times and P-I; commencing December 31, 2012, King County Jail will no longer accept and house misdemeanor offenders leading City of Seattle Officials to settle on four possible locations for a new jail. One of which is right in our backyard and we want to hear your thoughts on this topic... Visit the official City of Seattle (Municipal Jail Planning Project) site for more information and to post a comment or pose a question: http://www.seattle.gov/municipaljail/background.htm Read the Seattle PI article published 5/7/2008 along with comments from Larry Smith, President of the Haller Lake Community Club; http://seattlepi.nwsource.com/local/361984_jail07.html?source=rss

We would like your help...

Chuck Cady & Associates is entertaining the idea of hosting a real estate seminar and we want your feedback! With over 25 years of Seattle real estate experience we have seen all types of markets and would like to offer up our knowledge and expertise. We are NOT looking to host the average seminar geared "solely" towards 1st Time Buyers or Investors but rather an informative Q & A geared towards answering ALL real estate questions and concerns. If you have questions or ideas on discussion topics email them to us by clicking here.

Seattle City Light & Snohomish PUD will pay YOU...

If you haven't already heard, Seattle City Light & Snohomish County PUD together with JACO Environmental are running similar programs where they are paying customers to get rid of their old refrigerators and freezers! Seattle City Light reports, old refrigerators or freezers can use three times as much energy as newer ones, significantly running up your electric bill and contributing to global warming. Visit your utility company by clicking on the applicable link below: City of Seattle: http://www.seattle.gov/light/conserve/resident/appliances/cv5_appA2.htm Snohomish County: http://www.snopud.com/energy/home/econpgms/recycle.ashx?p=2543

Current Real Estate Market “A Price War & Beauty Contest”

Message from Chuck Cady: I recently attended a Real Estate Seminar put on by Howard Brinton of Star Power where I met with Top Realtors from all over the Pacific Northwest. One of the presenters described our local Real Estate market as “a Price War & Beauty Contest”. I thought WOW, how true it is! To sell a home in today’s market your home needs to be the best-priced house out there, and it must be the best-looking one as well. I have been representing buyers and sellers in the Greater Seattle area since 1983 and have witnessed various types of Seattle housing markets over the past 25 years. Although the current market is trying at times, it in no way compares to past market slumps such as that of 1990. It is important for people to understand that the market we have become accustomed to over the past 5 years is in fact an “abnormal” market. We just need to ..(read more)

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