As Seen on KIRO TV News

Comment

As Seen on KIRO TV News

REPORT SAYS SEATTLE AREA RESIDENTS ARE SPENDING MORE ON RENT THAN MORTGAGES; KIRO NEWS TAPS REALOGICS SOTHEBY’S INTERNATIONAL REALTY ON TRENDS

On August 18th KIRO TV News reported that it may be less expensive to own than rent and interviewed Dean Jones, CEO as well as broker Cassie Daughtrey of RSIR.  Reporter Natasha Chen cited analysis by Zillow, which suggests renters are typically spending nearly 10-percent more of their monthly income on rent than they are mortgages.  This revelation and other myths and facts about homeownership will be highlighted during a series of events hosted by RSIR and Caliber Home Loans on August 26th and 27th in downtown Seattle and Kirkland, respectively. The firms have aligned to help prospective homebuyers understand their opportunity.

From the KIRO TV website:

By Natasha Chen

SEATTLE —

Renters in King, Snohomish and Pierce counties are spending 31.6 percent of monthly gross income on rent, which is the highest it’s ever been, according to Zillow.com estimates.

At the same time, homeowners in the area are paying only 22.7 percent of monthly gross income on mortgage.

The numbers indicate it may be cheaper to own than to rent, if one can purchase a home in the competitive housing market.

The CEO of Realogics Sothebys International, Dean Jones, said many renters have no idea that they’re prime candidates for home ownership. Jones said the cost of renting is not just the money being turned in to a landlord every month, but the lost opportunity to buy a home before prices potentially soar higher.

In a market where demand far outpaces supply, Jones said it will take several years for there to be more units built or put on the market. Until then, prices will keep climbing.

The news crew explored not one but four of Cassie Daughtrey’s recent sales in the last month and all were purchased by renters that elected to buy.  One home that went pending in Seattle’s Maple Leaf neighborhood near Greenlake.  With a $525,000 purchase price and 3.5% down ($18,375 can be gifted by family members) the $506,625 base loan amount @ 3.99% requires just $3,245/month including (PITI and MI) to own.

Daughtrey said there are many renters in the area that are paying $4,000 or even more than $5,000 for a house and she wonders why.

“If you’re going to remain in one location for more than two or three years, it pays to own,” adds Daughtrey.  “My sellers are harvesting equity they’ve built up over the years and many times they are even adding value through thoughtful renovations, which can dramatically improve the market value. Besides there are meaningful tax advantages and while it takes some effort, it’s smart to build your own portfolio instead of your landlords.”

Jones outlined his views about the in-city housing market suggesting that demand will outstrip the supply because it takes so long to develop larger buildings and developers have preferred to build apartments.

“The reality is many apartment buildings are now worth as much as they are as condominiums,” said Jones. “While that’s all well and good for developers it leaves consumers with a lack of inventory to choose from.  There are only about 60 resale condos for sale in downtown Seattle right now and about half of the new condominiums being built are presold.  If just 5-percent of the new residents that moved into a new apartment building in the last few years decided to buy, we’d absorb all of the available inventory for sale and prices would escalate even further.  I think that time is coming.”

Part of the reason consumers are renting is convenience, mobility and lack of information about the market.  Nancy Glover, a Mortgage Banker with Caliber Home Loans lists a few common misconceptions potential home buyers have about buying in today’s market:

Fiction: You need at least 20% down to purchase a home!

Fact:  There are loan programs available with as little as 3%, 5% and 10% down.

Fiction:  I need to save up all of my own money!

Fact:  You can use gift funds or a loan from your own retirement account for the down payment.

Fiction: I won’t be able to qualify for a loan due to difficult lending requirements!

Fact:  Lenders are now offering more lending options than before to help you get a loan, it’s easier than you think!

Keith Lashley is another Mortgage Banker with Caliber Home Loans and agrees there are many great loan programs, tax credit programs and options for a first time home buyers.  He offers some advice for prospective buyers that are trying to save up for a larger down payment.

“Mortgages are intended to be a leverage tool allowing a borrower to secure a preferred home at a preferred price today vs. waiting to buy in a year or two,” said Lashley.  “I respect the intent to have less debt and pay down a mortgage as quickly as you can but the reality is most can’t save as fast as the market is appreciating.  So by waiting to buy, it’s actually resulting in less purchasing power and it would seem less selection to choose from.  It’s ironic but you may actually be able to save more money as a homeowner and pay down the mortgage quicker because you enjoy income tax credits.”

Consumers interested in learning more about the state of the housing market and mortgage industry are encouraged to attend a private event on either August 26th or August 27th. To sign up, click here. 

Comment

There's #NoPlaceLikeOwn

Comment

There's #NoPlaceLikeOwn

Last month, Realogics Sotheby's International Realty and Caliber Home Loans hosted a Cycle Saloon Tour of South Lake Union for  real estate brokers, mortgage representatives and past/present clients. Watch the video above to learn from area experts and recent homebuyers why NOW is the perfect time to buy in the Seattle metro area ! 

Comment

Featured in Luxury Home Magazine

Comment

Featured in Luxury Home Magazine

We are excited to announce the our #NoPlaceLikeOwn campaign is featured in the most recent Luxury Home Magazine as a full spread. Don't forget to check it out to learn more about renting vs. buying and explore unique homes in every price range. 

Comment

Cycle Saloon Tour Featured on PSBJ

Comment

Cycle Saloon Tour Featured on PSBJ

Representatives of Realogics Sotheby’s International Realty & Caliber Home Loans have implemented a series of dynamic events to stoke housing demand by creating programs with third party companies that bring targeted consumers together and integrate real estate opportunities through “lifestyle marketing.”

On July 28th, the thrilling 16-person “Cycle Saloon” tour of South Lake Union garnered local media coverage and market awareness by the Puget Sound Business Journal! By targeting an up-and-coming neighborhood filled with the Millennial population,  the team was hoping to draw attention to the #noplacelikeown campaign and interact with potential homebuyers. 

Read the coverage here >>

Comment

"The Manhattanization of Seattle", Featured in the PSBJ

Comment

"The Manhattanization of Seattle", Featured in the PSBJ

The June 19, 2015 edition of the Puget Sound Business Journal features a four-page special section based on a recent expert round table discussion on the state of the in-city housing market and the rent vs. buy debate. Dean Jones, President & CEO of Realogics Sotheby’s International Realty (RSIR) was joined by Trevor Bennett, mortgage banker and Kirkland Branch Manager with Caliber Home Loans, economist and appraiser Brian O’Connor, Principal of O’Connor Consulting Group and Nelson Yong, an executive with SILK I Digital Media and a representative of Millennial consumers. The resulting feature, entitled “The Manhattanization of Seattle?” by journalist Cynthia Flash highlights the trajectory for Seattle (and Bellevue) to follow a trend towards urban density much like New York City; Vancouver, BC; and San Francisco, which forecasts rising costs for consumers as developers struggle to deliver affordable housing solutions amidst inflation, entitlement fees and an ongoing preference to build apartments instead of condominiums.

With condo values increasing, the thousands of renters currently deferring a future home purchase need to take stock of these trends, especially given that interest rates are expected to rise, which collectively reduces purchasing power.

“Our goal is to start a conversation on a discussion we know will be omnipresent for years ahead,” said Andrea Savage, Marketing Manager for RSIR. “This is an organic collection of thoughts, research, testimonials and best practices as we strive to be a resource for consumers.”

One of the most significant discoveries was the rising cost of rent and the fact that until recently condo appreciation has lagged rent growth means there’s an inversion in the marketplace. That means in some cases it can be less expensive to own a condominium than it is to rent a similar property.

“Only owning allows you to lock in housing costs, enjoy income tax deductions, and positions you for appreciation in home equity as the market rises,” said Bennett. “While those are generally known facts there appears to be a lot of misinformation about the state of the market or the mortgage industry.  It’s important for consumers to be aware of changes, especially if owning a home is on the agenda in the next few years. Our contributions to the #NoPlaceLikeOwn campaign will provide a continuing resource to explore what’s right for consumers in this quickly evolving market.”

READ THE COMPLETE ARTICLE HERE >>

Comment