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• Sorry about that whole housing crunch 3/22/08

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Mike Benbow, Business Editor benbow@heraldnet.com

Area's housing isn't doom and gloom, experts say

A stronger local economy explains why it's a good time to buy or sell a house.

By Debra Smith
Herald Writer

Area real estate professionals and politicians want to clear something up.

Now is a good time to buy and sell real estate in Snohomish County, no matter what people may be hearing about the national market.

The panel of industry experts held a town hall meeting in Lynn­wood on Thursday for that purpose that drew about 200 people.

"There is no shortage of information or opinions, and so many reports seem to conflict with each other," said Ron Sparks, a moderator of the panel and a vice president at Coldwell Banker Bain. "It's no wonder people are confused."

The local economy is strong, unemployment is low, rental prices are increasing faster than the price of homes, interest rates are low, inventory is good and "safe, stable financing" is available, Sparks said. It's not a bad time to sell, but sellers need to be more flexible at the negotiating table, he said.

Many of the speakers, including Sparks, pointed the finger of blame firmly at the media, which he said are confusing the public by publishing headlines designed to appeal to emotions and reports that "mix and match" local and national information. Sparks compared the real estate market to the weather: What's happening in San Diego isn't helpful here.

The answer, he said, is to take media reports with a grain of salt, look for the source of the data cited and work with a local real estate expert.

The industry and area leaders also need to address other ways to get people into homes, said Nathan Gorton, executive vice president of the Snoho­mish County-Camano Association of Realtors. In 2003 the median house price in the county hovered around $220,000. Today, it's $368,000.

That's great for homeowners, he said, but not so great for first-time buyers.

Limits on Federal Housing Administration loans were recently raised, which should give buyers more homes to choose from, Gorton said. He expects President Bush to sign a bill that would lower the down payment requirement for FHA loans from 3 percent to 1.5 percent, making the loans more accessible to first-time buyers.

The subprime mortgage mess has made lenders return to "old school" restrictions and requirements. Buyers may have to get help from family rather than use a riskier loan, Sparks said.

That's a shift James Worth said is good for buyers. The senior loan officer with Landover Mortgage said the greatest frustration of his career has been dealing with buyers who don't want to talk about budgeting. This "normalizing" of the market gives people a chance to take a few months and get their finances in order before purchasing a home, he said.

Reporter Debra Smith: 425-339-3197 or dsmith@heraldnet.com.