Tacoma Undressed

--> Mar
09

Cause of Inflated House Prices

 

This began when the interest rates dropped several years ago creating a sellers market.  Houses were on the market less then a week and sometimes hours.  There were bidding wars going on between numerous buyers trying to purchase the same house.  Buyers were paying more for the house and paying out of cash more then what the house appraised for.   Buyers were essentially setting the prices creating an increase in property values. Also, at that time mortgage companies and banks were writing tons of mortgages and making windfalls of money.  Mortgage lenders were able to loan to pretty much anyone who could breath.  It didn’t matter how much a borrower made or what their credit looked like….there were loans for everyone.  If they couldn’t find the loan box the borrower fit in then they created a “liars loan”.    This is when predatory lending began with the lender telling the borrower what they should make to get the loan approved then the borrower giving their true salary.    ARM loans were the talk and everyone could afford the loan….have a low interest rate to start with and watch your payment grow in 2 – 5 years.  However, I don’t think some borrowers heard the part or understood how much your payment can increase over 2 – 5 years.  ARM loans originated in the early 1980’s when loan rates were in their all time highs at around 12% -14%.  It was a type of loan back then to attract more buyers and make homes more affordable.  I don’t think ARM loans were the best mortgage product when the rates were at the all time lows…down to 5% a couple of years ago.    Some borrowers were naïve to it all and trusted their lender and not realizing that over appraising their house, giving them an ARM loan for 2 to 5 years may force them to sell.   The lenders were also pitching the fact that the value had gone up in their home now was the time to get an equity loan to payoff debt, buy a car or go on a trip.  Even some appraisers were getting caught up in the scam by over appraising property so the borrower could get the equity they needed.  Money was being made like never before in the industry.

 

All good things must come to an end… or was it good?  Now we are at an economical crisis in mortgages and property values.  People are not able to afford their mortgage payments and having to walk away from their homes they once were excited and emotional about moving into.  I look forward to the day we can look in our rear view mirror and see this all behind us and business as usual.

 

 

 

 

--> Nov
06

Selected By KING TV

We are most honored that KING TV has selected our TacomaUndressed.com blog as one of the blogs that feed through KING TV’s Citizen Rain. Congratulations Carol, for the additional exposure you will receive.

Each item we post is available to the KING TV blog readers.

--> Nov
01

Tacoma Home Sales

Here is an overview of homes (excluding condo’s) that have sold in the Tacoma area in the past 5 months:

DOM = Days on Market

North Tacoma

Selling Price Range Quantity Average DOM   $140,000 thru $159,999 1 163   $160,000 thru $179,999 4 57   $180,000 thru $199,999 6 29   $200,000 thru $249,999 38 37   $250,000 thru $299,999 98 42   $300,000 thru $349,999 73 47   $350,000 thru $399,999 42 65   $400,000 thru $449,999 26 47   $450,000 thru $499,999 21 75   $500,000 thru $549,999 7 52   $550,000 thru $599,999 10 99   $600,000 thru $649,999 12 59   $650,000 thru $699,999 7 47   $700,000 thru $749,999 2 106   $750,000 thru $799,999 2 154   $800,000 thru $849,999 5 62   $850,000 thru $899,999 1 85   $900,000 thru $949,999 1 87   $950,000 thru $999,999 1 118   $1,250,000 thru $1,499,999 1 129   $1,500,000 thru $1,749,999 2 178     360 53

Summary Price Information Minimum $150,000 Maximum $1,730,000 Average $371,797 Median $320,000

South Tacoma

Selling Price Range Quantity Average DOM   $70,000 thru $79,999 2 38   $100,000 thru $119,999 6 60   $120,000 thru $139,999 19 62   $140,000 thru $159,999 32 38   $160,000 thru $179,999 81 61   $180,000 thru $199,999 123 68   $200,000 thru $249,999 254 59   $250,000 thru $299,999 90 83   $300,000 thru $349,999 32 78   $350,000 thru $399,999 2 63   $450,000 thru $499,999 1 29   $700,000 thru $749,999 1 112     643 64

Summary Price Information Minimum $73,000 Maximum $735,000 Average $215,026 Median $208,000

Central Tacoma

Selling Price Range Quantity Average DOM   $80,000 thru $89,999 1 56   $90,000 thru $99,999 1 86   $120,000 thru $139,999 4 42   $140,000 thru $159,999 3 40   $160,000 thru $179,999 16 51   $180,000 thru $199,999 18 51   $200,000 thru $249,999 75 61   $250,000 thru $299,999 17 37   $300,000 thru $349,999 22 59   $350,000 thru $399,999 11 82   $400,000 thru $449,999 2 15   $450,000 thru $499,999 1 520   Statistics came from the NWMLS 171 59

Summary Price Information Minimum $82,000 Maximum $499,000 Average $241,165 Median $229,000