New single-family home sales increased 11% in June.  In addition, June was the 1st month of the year the units sold actually surpassed June of 2008 in many areas.

Active listings in the Northwest Multiple(NWMLS) are actually down 19.5% Y-T-D in 2009 compared to 2008 which is surprising.  I assume a lot of people are simply holding until the market stabilizes and even starts edging upward.

On Closed Sales in the NWMLS, the Average and Medium prices are down 13% - 15% in 2009 over 2008 at the end of June.  In varies by area, of course.  It seems King County took its biggest hit the 1st quarter of this year, BUT the average DOM (days on market) is only 83 in 2009 for King County which is excellent.  It is 228 days in San Juan County.  Number of units sold to date compared to 2008 are down 23% overall.

There is no doubt 2nd quarter was much better than 1st quarter of 2009, but it typically is due to seasonal activity.  However, it seems the Realtors as well as Buyers are feeling the market is leveling out and may stay steady here for awhile.  No one is expecting an upward swing in prices anytime soon and when it does come, it’s expected to be extremely slow.

There is a lot of concern (as well there should be) about the next round of interest rate change in ARMs (Adjustable Rate Mortgages).  I have had a lot of clients coming in to try to refinance early since they have been made aware of the current financing situation and they simple are not qualified for a current 30 year fixed mortgage.  They are looking at mortgages resetting at 12%-13% next year and they do not have enough current Adjusted Gross Income to support a regular mortgage.  Naturally, this is also not the time to try and sell their home.  I have no idea if part of the Stimulus will deal with these loans coming due next year, but we can expect to see another wave of short sales and foreclosures if these loans are not re-negotiated.

Basically a Short Sale is where the Home Owner owes more than their property is worth, but they are not late on payments or in foreclosure.  They negotiate with their Lender to market their property.  If an offer comes in for less than the mortgage, some Banks are willing to release the Home Owner from the difference.  THIS HAS TO BE IN WRITING!  Recently, Lenders are not releasing this portion of the debt and coming after Home Owners later – they have a six year statute of limitation on the contract to file legal action to collect.  They can lien property in any State property is owned by the Home Owners and would be valid for up to 20 years.

AS A RESULT, Home Owners in this situation are being forced to let their homes go into to foreclosure.  All of these choices are complicated depending upon the overall Home Owners financial situation, the State the property is in, if there is a HELOC (Line of Credit) or second mortgage, and whether the property is the Primary Residence or not.  Everyone in this situation needs to get expert advice before they make this decision.

There are lots of resources online to get detail information.  I think www.mortgagerelieformula.com/recourse/ has a good webinar on these issues.