Wenatchee Valley Real Estate Outlook 2011 (2 of 5)

As the manager of a Wenatchee home inspection company it’s very important learn about the latest real estate news and information.  On May 19, 2011, the Wenatchee Valley Chamber of Commerce led a discussion panel with local real estate experts to discuss the current state of the real estate market and to say their predictions for the rest of 2011.  This blog entry along with the next 3 entries will summarize the panel discussions of each speaker.

 Previous Entry: Speaker from Touchstone Appraisals, Cheri Farivar

Darel Ansley, Real Estate Loan Officer at Peoples Bank

Darel is a Real Estate Loan Officer at the Wenatchee Peoples Bank.  He specializes in construction loans and mortgages for Wenatchee, Chelan, Leavenworth, and Okanogan Counties.  He has lived in Wenatchee for 8 years after moving from Issaquah.

Darel concentrated on the topics of availability of funds and the access to low mortgage rates.  Mortgage fees increased a quarter point in March while rates are staying at an extremely low 4-4.5%.  Darel assured everyone that there are plenty of funds.  While more affordable options are available in the Wenatchee home market, buyers have to consider increased mortgage fees that are adding about $100 on average to the monthly payment.  With “cheap money” lended to home buyers they can currently buy more home for less money.  Darel agreed with Cheri Farivar (Touchstone Appraisals) that now is the time to buy!  He sees our current economic cycle in the bottom of a “U” shape.  While our market is going to improve slowly in the next couple of years the new regulations imposed on lenders and appraisers will only make the home buying process more time consuming and will double the amount of time to close a transaction.  He also predicts that rates will increase up 5.5% by the end of 2011.

Wenatchee Real Estate Outlook (1 of 5)

By:  Rebecca Darley, Guest Blog 

As an employee of a Wenatchee home inspection company it’s very important for me to stay updated with the latest real estate news and information. Today was a great opportunity for me to get the scoop. For about 6 years the Wenatchee Valley Chamber of Commerce has hosted an annual panel discussion called the Real Estate Outlook with discussions prepared by area experts including realtors, lenders, appraisers, builders and commercial real estate agents. On May 19, 2011, the panel met in Wenatchee to discuss the current state of the real estate market and to conclude with their predictions for the rest of 2011. This blog entry along with the next 4 entries will summarize the panel discussions of each speaker.

Cheri Farivar, Touchstone Appraisals

Cheri Farivar is a General Certified Appraiser with 25 years of appraisal experience in Chelan and Douglas Counties and the owner of Touchstone Appraisal, LLC, of Leavenworth. She was the first speaker on the discussion panel and started by looking back at the median home prices from 2008 to present:

• March 2008 $256,000
• March 2009 $223,900
• March 2010 $235,000
• March 2011 $201,000

She kicked the myth the home values have been decreasing by 20% annually, when really it’s been about 20-25% over 3 years. As of May 18, 2011, there were 11 new construction homes for sale under $200,000 and 30 new construction homes for sale under $250,000. Cheri pointed out that “for the first time in a long time” the median household ($58,000) in Chelan County can afford the median price home.

One of the challenges Cheri has observed is that realtors are finding it increasingly difficult to educate their sellers about the true value of their homes. Home values are lower than sellers want to realize and correctly pricing the home is the best way to sell a home fast and to prevent stale inventory.

On September 1, 2011 the UAD (Uniform Appraisal Dataset) will adopt one of the biggest changes to appraisal reporting since the revision of the Fannie Mae forms in 2005. Under the direction of the Federal Housing Finance Agency, Fannie Mae and Freddie Mac established the Uniform Mortgage Data Program (UMDP), to provide common requirements for appraisal and loan delivery data. Cheri said that this is the “biggest change in my 20 years” to appraisal procedures and predicts closing transactions will be take twice as long. Lenders, credit unions and appraisers are most directly affected but all real estate professionals and consumers will feel the effects. Be prepared to take two or three times as long to close on your home purchase or refinance.