Defaults in subprime mortgage market. Increasingly restrict

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• Doug Simcock
• Windermere Real Estate/Walla Walla
• January 23, 2008

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National Housing Market Storiesof 2007

• Sharply slowing home sales
• Record levels of homes available for sale
• Falling home prices
• Defaults in subprime mortgage market
• Increasingly restrictive lending policies

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Real Estate DNAby David Lereah, Recent NAR Chief
Economist

• No National Market
• All Real Estate is Local
• Characteristics
• Mountains Water ocean/river/lake
• Climate Resources
• Diversified economy Job situation
• Exciting downtown Education/universities
• Hospital/medical services Recreation/parks
• Transportation systems Government
• Professional sports teams Culture/ethnicity
• Entertainment Affordability
• Safety X or undefined factors

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State of Washington

• Washington Center for Real Estate Research
• www.wcrer.wsu.edu
• Reduced levels of home sales (-11.4)
• Increases in homes available for sale (41.8)
• 7.3 month supply (4.3 year ago)
• Slower increases in median price - 314K (4.4)
• Fewer than 1 of mortgages end in default
• Subprime adjustable rate loans
• 20 nationally 6 in Washington State

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Washington Association of RealtorsGet The Facts
Straight

• Facts about Foreclosures
• The foreclosure rates today are the same as
• they were 10 years ago.
• The Market is Strong
• Home appreciation in Washington continues to
  out- perform the rest of the nation with
  year-to-year price increases every quarter since
  the spring of 1995.

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Washington Association of RealtorsGet The Facts
Straight

• Why Washington is Different
• The home market isnt keeping pace with the
  growth of the states population, which is
  continuing to increase at 1.8 percent per year.
  
• The states population will increase by nearly
  one million over the present decade and reach 6.8
  million by 2010. About two thirds of the growth
  is due to in-migration the rest is a result of
  growth by families now living in Washington.
• (Washington State Office of Financial Management)

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Walla Walla and College Place - Single Family
HomesDecember 2007
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Walla Walla Valley
Slower Home Sales -11.6 WW County -8.7 MLS
Increases in homes available for sale 53.9 WW
County (8.8 months supply 4.9 year ago)
60 MLS (7.7 months supply 5.1 year ago)
Increases in median price 206,500 (11.6) WW C
ounty 200,683 (15.8) MLS Current foreclosure
s in Walla Walla Walla Walla 4 pre-foreclosures
College Place 1 foreclosure 5 pre-foreclosure
s
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Walla Walla 2008

• Home Values modest gains
• For Buyers lots of choices in current market
  more negotiation power
  
• For Sellers Price properties realistically
• Interest Rates remain around 6
• Increase in 2nd Home Market/Vacation Rentals

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• Contact Information
• Doug Simcock
• dsimcock_at_windermere.com