Housing: Best recovery bets,, Kennewick Washington

Median home price: $172,000
Value lost since 2006: Gained 5.7%
Forecast gain through 2011*: 3.9%

This small metro area — population of about 250,000 — may share the same state with Seattle and Tacoma, but it’s an entirely different world on the eastern side of the Cascades.

Kennewick is in the rain shadow of the mountains and geographically has more in common with dry, southwestern Idaho than the rainy Washington coast. It lies very near the Hanford nuclear site, where plutonium was once produced for the Manhattan Project.

Employment has remained strong here with many high-paying jobs for scientists and support personnel being created at the Pacific Northwest National Laboratory in Richland. The unemployment rate in December was, at 8.1%, well below the national average.

The median income for the metro area is more than $61,000 while home prices, at a median of $172,000, and other expenses remain low. The cost of living is about 27% lower than Seattle. That should keep housing markets on their steady uphill climb.

Source: CNN Money

Tri-Cities consistently ranked among the Best

Tri-City Herald                                                                                        BUSINESS Nov 29th 2009

In the past couple of years, the Tri-Cities has made several magazines’ “top list” Top 100 Best Places to Live. Top 10 Affordable Places to Retire on the Water and Best Cities for New Jobs. There are two common themes among the lists we made job growth opportunities and low cost of living. These themes seem ironic given the economic downturn the country is experiencing this year but they’re also an indicator that the Tri-Cities’ economy has weathered the storm better than most.

For example, our job market continues to grow. Just two months ago, the Tri-Cities ranked second on Forbes’ “Best Cities for New Jobs.” Our net employment outlook, which is calculated by subtracting anticipated job losses from job openings, is 11%. The No. 1 ranked City was Lincoln, Neb., with a 17 percent net employment out look.

The Tri-Cities also jumped to sixth place, from 29th, in the 2009 Milken Institute index for Best Performing Small Cities. The index ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. Components include job, wage and salary and technology growth. This year the Tri-Cities also made a list for Rising Residential markets in the nation — we were ranked number one in a list of the top Five. The ranking came at the same time that our real estate market was starting to make a comeback. In March we experienced a surge in homebuyers,” said Chris Wilson a local Windermere Real Estate agent. It was a welcome change from the all that we saw in the market from October 2008 until the end of February 2009.

The saying ‘what you focus on expands’ is exactly what happened in the Tri-Cities. All of the reporting about the economy was gloom and doom. And even though this area was not experiencing what the rest of the country was going through, we bought into it, so Our market was negatively impacted,” continued Wilson. Wilson says families are relocating here due to the strong job market and quality of life, which includes affordable housing.

CNNmoney.com ranks Richland No. 51 on its Top 100 Best Places to Live. According to the stat, the cities job growth among the best between 2000 and 2008 was 18.59 percent, just a 1 percent below average growth data for all cities in the top 100. In addition, the median home priced is listed as $182,000, which is $80000 below the average of the other cities. Compared to the averages of other cities on the list this area also has a better air quality index, shorter commute time, and warmer weather.

Kris Watkins President and CEO of the Tri-Cities Visitor & Convention Bureau agree that this area is a great place to live. We are delighted that the Tri-Cities continues to be recognized as a ‘best place’ in the U.S. time and time again.

We have beautiful waterfronts, award-winning wines, premier golfing and low-cost of living; all of these attributes make the Tri-Cities an attractive destination to live work, and play. More good news for those living or moving here – its a great place to retire — according to a list by USNEWS.com. I’m not surprised by the positive recognition. I for one, already plan to hang my dentures here.

Andrea Turner works with Pacific Northwest National Laboratory’s Economic Development Office

She can be reached at 375-3893

$6,500 Homebuyer Tax Credit for Homeowners

you may qualify for the $6,500 if…

1.0
You have owned a home for five consecutive years out of the past eight years.  This home must have been your primary residence.

2.0
You purchase a different home as your primary residence.  This home’s purchase price cannot exceed $800,000.  If it does , you are not eligible for any portion of the credit.

3.0
You do not need to sell your former primary residence.  You may lease it, sell it or give it away.

4.0
Your income does not exceed $125,000 filing individually or $225,000 if married filing jointly.  Even if you do make more you may be eligible for a smaller credit.

5.0
You must purchase the home sometime from November 7, 2009 to April 30, 2010.  You must have signed purchase/sales agreement during that time.  And have proof of purchase for your tax return.

6.0
You get an additional 60 days to close financing or on sale July 1, 2010

7.0
You must be 18 years of age or older.

First-time Home-buyer’s tax credit limit equals $8,000

Who qualifies:

You have not owned a home for the past three years.

Your income does not exceed $125,000 filing individually or $225,000 married filing jointly.
(If your income is more, you may still qualify , but a sliding scale.)

You get an additional 60 day grace period to close financing

The home you by must be your primary residence.

What you get:
A tax credit that equals 10% of the value of the home up to $8,000.
If you do not owe $8,000 in taxes you receive the balance in a stimulus check to you.
If you sell your house within three years  there are penalties.

Resources:

www.wahomeowners.com
A great site for homeowners.

www.homeloans.va.gov
VA home loans.

Washington State housing finance commission: www.wshfc..org
Low-interest loans, down payment assistance, and first-time home buyer classes.

Homeownership in Washington: www.homeownership-wa.org
Another great nonprofit resource web site.

Homesite Washington:  www.homesightwa.org
Help for low to moderate income families looking to buy a home.

Fannie Mae:www.fanniemae.com
Competitive loans and a great buyers resource.

HUD Help for homeowners:www.hud.gov
Free foreclosure avoidance counseling.

Making homes affordable: www.makinghomesaffordable.gov
government-sponsored programs to refinance your home or loan modification.

Washington Association of mortgage professionals: www.wamb.org
trade association for mortgage professionals as well is excellent information for consumers

Realtor.com:www.realtor.com
The world’s largest database of homes for sale.

Susan

www.susanknowshomes.com

Conforming Your Loan Limits

Conforming Loan Limits

A conforming loan is one that meets the standards of loan guidelines as established by government-sponsored enterprises (GSE’s) Freddie Mac and Fannie Mae, meaning Freddie and Fannie can buy loans up to predetermined amount, with that amount adjusted annually. Presently, the conforming loan limit for a single-family home is $417,000, although as part of the Economic Stimulus Act of 2008, the loan limit in certain high-cost areas of the U.S. have a new cap of up to $729,750, depending on location. These loans are referred to as “conforming jumbo” loans. The cap for these loans is calculated to be 125 percent of the area median home price and is not to exceed $729,750, except in Alaska, Hawaii, Guam and the U.S. Virgin Islands, where the cap is 50 percent higher than the limits for the rest of the country.

Confused yet?

Boiled down to real language, prior to the Stimulus Act, conforming loan limits were $417,000 and rates were attainable. However, if you needed a loan over $417,000 – called “non-conforming jumbo loans” – you probably paid a percentage point or two above what a conforming loan cost. For loans that big, it was difficult for borrowers to qualify. For example, suppose “John” needed a mortgage loan for $350,000 – he could get a rate around 6.5%. But if John wanted to buy a bigger house and needed a mortgage loan of $600,000, his rate could be as much as 7.5-8.0%, only because the loan amount exceeds $417,000. See the difference?

With inequity in rates, the mortgage crisis and a stalled real estate market, the government has stepped in to try to kick-start the high-end market by lifting the lid on the conforming cap. The hope is that for borrowers who live in these areas, the rates and availability on higher-end loans that were once hard to get are now more accessible. For example, borrowers who are in high-cost Jumbo ARMs can refinance into a lower-rate 30-year fixed with more affordable payments. Also, sellers who live in higher-priced areas will have a better chance of selling their home with more loan options available for potential buyers.

 

Where is the Money?

Freddie Mac and Fannie Mae have agreed to buy jumbo mortgages in 224 high-cost markets where median home prices exceed the original conforming loan limit of $417,000. The loans will be purchased from Wells Fargo Home Mortgage, Chase and from all lenders that sell to GSEs and the Federal Housing Administration (FHA). Freddie and Fannie will then bundle thousands of these loans together and resell the debt to investors. Investors are comfortable buying the debt packaged and sold by Fannie and Freddie because these two GSEs only buy loans that will meet their standards for creditworthiness.

 

Susan