Leavenworth Real Estate

First Time Homebuyers – New Online Guide

As many folks know, one of the important parts of the Federal government’s stimulus package is an $8000 tax credit for first time home buyers.

Washington REALTORS (formerly the Washington Association of Realtors) has put together a new website just for first time homebuyers to help answer most of the common questions that homebuyers might have.

WA Homeowners.com

This is one of the included videos from the site which I think explains the tax credit and who’s elgible in an easy and entertaining way.

Sometimes I think the REALTOR association pushes too hard from the sales angle – buy, buy, buy!!!  This time I think they did a good job.

What do you think? Is this new site helpful?

Do you think the first time homebuyer tax credit will make a difference in Leavenworth and Cashmere? Did you buy a house and get the credit?

End of Summer Subscription Drive

It’s like the NPR pledge drive, except not really.

I don’t want you to make a pledge, but you also don’t get a handy canvas shopping bag or a nice coffee mug.

The goal of our subscription drive is to make sure you don’t miss a single article that we post here on IcicleCreekRealEstate.com – whether it’s monthly sales news, quarterly market updates, or news about specific neighborhoods like Kahler Glen and Chiwawa River Pines.

It’s simple to sign up and it’s FREE

(And we won’t send you spam or sign you up for any kind of drip e-mail campaign or the like – you just get new articles, fresh off the “printing press” as it were.)

Two choices:

You can sign up to get articles in your email

or in a Feed Reader (like Google Reader or whatever your favorite is)

Not here for the articles, just want to see new Leavenworth listings as they hit the market?

There’s a place to sign up for that too. (Same price – FREE! )

To those of you who ALREADY subscribe – thank you. Your support means the world to me.

Leavenworth Real Estate Deals

Let’s face it, everybody loves a great deal.

Whether you are buying a new car, getting plane tickets to Europe, or buying a vacation home in Leavenworth, you want to get the most value for your money.

In the past I have pointed out some parts of the Leavenworth real estate market that I think have some good deals.

I also have written about the condo market in Leavenworth and Kahler Glen having some great opportunities.  A condo in Kahler Glen used to sell for as much as $325,000 but listing prices now start as low as $269,000. Building lots at Kahler Glen can be a steal right now too.

Some projects, like the Cascade Crest Condominiums in downtown Leavenworth also have incentives from lenders who are interested in getting the units sold.  Peoples Bank in Wenatchee is offering special financing with only 5% down for qualified buyers who plan on being full time residents or 10% down for those purchasing a vacation home. Both programs come with 5% interest and no loan fees.  Click here for additional details about special financing on these Leavenworth condos. These condos were orginally priced at $519,000 but are now priced at $299,000. Sounds like a deal to me.

Want to save boatloads of money? In the last 6 months, home buyers who bought houses for more than $800,000 saved an average of  nearly $225,000 off the orginal list price. How’s that for a bargain?!

FHA loans v. USDA loans

The following is a GUEST post by submitted by Brandon Laughlin of  www.mortgageloanplace.com. (We here at Icicle Creek Real Estate will add our thoughts separately in the comments section.)

The federal government offers Americans an array of programs to help achieve the dream of homeownership.

Federal Housing Administration loans remain among the most popular and widely accessible options. The FHA has helped insure more than 34 million properties since its inception in 1934. But the low-cost loan program that benefits thousands of low- and middle-income Americans isn’t the government’s only significant home loan program. It’s also not the only low- to no-cost option.

The U.S. Department of Agriculture also provides home loans for the millions of Americans who qualify.

Each loan program has unique benefits and opportunities for eligible home buyers. Here’s a snapshot of both FHA and USDA loans. Prospective home buyers may want to check with a loan expert to help determine if one of these programs best suits their unique needs.

USDA loans

USDA loans are primarily for people living in rural parts of the country. But those in smaller communities and villages may also qualify, depending on how an area is designated “rural.”

Borrowers are not required to provide a down payment or pay for closing costs on a home with USDA loans. They also don’t have to pay for mortgage insurance. Borrowers can buy existing homes or new structures of any size or shape, as long as it’s considered “modest” for the community and has a market value within the local loan limit.

The program has strict eligibility requirements, including credit history and residence. Borrowers have to buy a home in a qualified rural area, although there are some circumstances where people can obtain USDA loans for homes in cities of up to 25,000 people.

USDA loans can provide borrowers with competitive fixed-rate loans. There is no ceiling on purchase price, and borrowers can also use the money to cover repairs.

Local USDA offices can help prospective buyers find a home in their area. They also have lists of approved lenders. In Chelan County, the current loan limit is $255,100.

FHA loans

Like the USDA, the FHA does not actually issue loans. It insures them, which provides lenders with a greater degree of protection. In turn, that protection helps many borrowers secure better rates.

FHA mortgages are favored by many first-time buyers. They come with little or sometimes no initial costs and are typically easier to obtain than many conventional loans. FHA loans require only a 3.5 percent down payment, although in some cases that can be reduced to zero. That down payment can come from a host of sources, from charitable groups to employers.

Borrower don’t pay mortgage insurance on FHA loans. Instead, they pay mortgage insurance premiums, which are typically split between an upfront payment and one that can be rolled into the monthly mortgage payment.

Buyers can utilize FHA programs that provide funding for home purchase and rehabilitation costs for single-family homes. Fixed rate and adjustable rate mortgages are available to qualified borrowers. Prospective homeowners can also use FHA loans to buy up to four unit buildings (as long as one is owner-occupied) and condominiums.

Geography dictates most FHA loan limits, which range from $271,050 to a maximum of $729,750 in high-cost areas. In Chelan County, the FHA loan limit for a single-family home is $342,700. For a three-family unit, the loan limit rises to $659,050.

Record Number of Leavenworth Homes for Sale

Leavenworth has too many homes for sale. End of Story.

Each year the number of homes on the market waxes and wanes throughout the seasons.

In Leavenworth, like most areas in the United States, home sellers put their homes on the market throughout the spring and summer months. Because of the snow and wintry conditions, it’s common for some sellers to pull their homes off the market for a few months in the winter.

At the same time, some homes are coming off the market because they have sold, or because they have given up trying to sell.

The number of homes being sold is never at the same rate as the number of homes being put on the market, so by the end of the summer we have a large number of homes for sale. September and October always seem to have the most homes for sale.

During the fall, fewer new homes come on the market, and some get taking off the market. January and February always seem to have the least number of homes for sale.

In 2007, we reached a peak of 137 homes for sale in October. (Single Family Homes, not condos in the 98826 and 98847 zipcodes)

In 2008, the peak occurred in September with a new record of 158.

This year I knew we were going to really be smashing those numbers. My first clue came in May 2009 when we hit 154 homes for sale at the end of the month.

Now in August, we have surpassed the 200 homes mark and we still have a month or two to go.

From 2007 to 2008 we saw an increase in peak supply of 15%. A year over year increase of 30% would only take us to 205 homes for sale. I predict the peak supply will probably hit 225 homes for sale.

So what, peak supply is up?

If you are a seller, this is bad news. You have more competition than the market has ever seen.  Buyers have too many homes to choose from and the best way to get your home sold is to lower the price.

If you are a buyer – you have more choices than ever. Granted, there aren’t going to be 200 homes to choose from in your price range and neighborhood, but there are more choices now than ever before.

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Required Disclaimer

NOTE: This representation is based in whole or in part on data supplied by the North Central Washington Association of Realtors or its Multiple Listing Service. Neither the Association nor its MLS guarantees or are in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the Market.