GET THE FACTS STRAIGHT
A Key Message
The Washington real estate market is a stable and an excellent investment for home buyers.
Facts About Foreclosures
The foreclosure rates today are the same as they were 10 years ago. Fewer than one percent of mortgages end in default in Washington state. As of mid-June, 2007, sub-prime, adjustable-rate loans represented 20 percent of loans nationally, but just 6 percent of home loans in Washington.
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.
The Market is Stable
Home prices in Washington have increased an average of 8.1 percent since the same time last year. The demand for median-priced homes has never been greater.
Why Washington is different
The home market isn't keeping pace with the growth of the state's population, which is continuing to increase at 1.8 percent per year.
The state's 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 the growth of families now living in Washington.
What About Inventory?
The key to stability in the residential real estate market is balance, where balance is about a six month supply (or inventory) of homes available on the market at any given time. As of November, 2007 the inventory is nearly 12 months worth, in Clark County.
Get the Facts
Information sources: WSU Center for Real Estate Research (CRER) & Washington State Office of Financial Management
IS YOUR HOME FULLY INSURED?
According to the Bureau of Labor Statistics, Associated General Contractors of America, nearly 60% of homes nationwide could not be fully rebuilt using insurance coverage. On average those homes are underinsured by 21%. Follow the steps below - before and after - disaster strikes.
Beef Up Your Policy - one thing to remember is that you are insuring for future rebuilding costs. Find an extended replacement-cost policy, which will pay you a set amount for the dwelling unit plus a 20 to 25% margin. Add a building-code endorsement to cover the cost of complying with future changes in the rules. Setting your dwelling limit high from the beginning and reviewing it every few years is critical.
Document What You Own - You will need records, pictures, videos, receipts, model numbers etc. A paper trail will ensure a more speedy and financially rewarding settlement. Go to insurance.ca.gov for a 36-page document that will take you through every room in your home. (under Consumers, click on Information Guides and then on Residentail Series). Of course, keep these records outside of the family home.
Manage Your Claim With Care - If you have experienced a disaster, call your agent immediately. Don't agree to a settlement too quickly; be prepared to negotiate for what you think is right and just. If you have any doubts about the settlement offer from an adjuster, do your own research too. Have a contractor you plan to work with create an estimate that outlines construction costs room by room, including the cost of all materials and labor. If you feel that the offer is a lowball one, appeal to a supervisor. If you have to you can always complain to the state insurance regulator. There are public adjusters who will follow your claim for a percentage of the ultimate claim offer. That would be a last case option as it will cost you money but would be worth it if your settlement is higher than what you could have received without it.
Do you have your home insured for what it would cost you to replace it? Now is a good time to begin. It will save you from a big headache/heartache later.