Monday, January 26, 2009

2009 New way to view the market, "Ready" or "Investor"

Rainier Beach 2009 January Market Update

Now that the New Year is here, I have decided that this year things will be better. How do I know this? I don’t but I will keep track of my little part of the Seattle Real Estate world, Rainier Beach.

The market has changed, so instead of keeping track of number of houses sold and at what price, I will keep track of the number of in two major categories, “Ready” and “Investor”. “Ready” are the houses which are ready to move into. “Investor”, are the homes which need an investment of time and money.

“Ready” homes are the ones where they buyer can move in with out any major issues. Lenders will be willing to lend on these houses because they are in good shape and less likely to be devalued by some major system going bad. The buyers will have good credit and good jobs, and if they are buying in this market, they are confident that their choice is correct, and they are not over paying for the house. The houses that qualify for this are the ones that are new and some completely remodeled homes.
“Investor” homes are the ones which need time and money after it is purchased. Banks are requiring larger down payments on homes needing work, and require evidence that the purchaser is capable in both skill and financial resources to bring the home up to a “Ready” state. These homes could be bank owned homes, failed remodel projects, tear down homes, or even vacant land.
So the break down for this week in Rainier Beach search area.

Of the 62 house on the market there are 28 "Investor", which need repair, bank owned, estate or otherwise not ready to move into based upon my evaluation of the property. The average listing price for these $285,00. The 34 "Ready" houses or townhouses which in my opinion could be ready to occupy without any major work or resolution of problems has an average listing price of $400,007.

If you are curious about any of the houses listed for sale in my Rainier Beach search market, either to purchase as an investor or as a new resident, please give me a call. We can discuss or view select properties for a comparison.