The weekend is here and there is nothing I like more then enjoying my breakfast with a good laugh while reading the Saturday morning comics. And by comics, I’m referring to the Seattle Times Real Estate section - “New Homes Saturday”. Seattle may have been late to the real estate depreciation game, but they are certainly not out. From May 2007 to May 2008, home values in the Seattle metro have depreciated approximately 6.3 percent according to the Case Shiller Indices. Foreclosures in Seattle were also up 52 percent from June 2007 to June 2008, according to the Seattlepi. And those are just the reported foreclosures; the percentage of delinquent mortgages are thought to be 2-3 times higher then the actual filed foreclosures. Lenders are walking a tight rope as they try to balance the need to start foreclosure proceedings with the need to hold back even more negative housing news.

But all those statistics don’t matter to the Seattle real estate agents, appraisers, builders and lenders, who are still ignoring reality. You can hear them raving about the Seattle appreciation at your local Starbucks, and you can see their idle attempts to keep the market rolling by reading the comical ads in the Seattle Times “New homes Saturday” section. Here are a few highlights:

  • The WestWater condo complex is providing a 5 percent per year appreciation guarantee to condo buyers for two years. Their “independent” appraisers will assess the value after two years, and if it has not appreciated five percent per year, they will pay you the difference of the appraised value and the declared appreciation guarantee value. I’d love to see the fine print on this one!
  • The WestWater is also waiving mortgage payments for the first 6 months. If your new dream home is so “affordable” then why would you need 6 months without a mortgage?!?!
  • The Element Redmond town house property is trying to lure buyers with an offer of a free Honda Element with the purchase of a new Element townhome. And today’s ad says there are “only 3 days left” on that deal, but somehow I expect them to extend the deal, or come up with an even stupider deal for next week.
  • The Boulders of Redmond are promising a $10,000 buyer bonus and 105% financing. 105% financing?!?! 105% financing?!?!? 105% financing?!?!?!?!?! Are they out of their minds???  Isn’t that what caused the housing mess to begin with?!?!?!?!
  • Lea Hill Condominiums in Auburn is still advertising FHA ZERO DOWN loans! Not as ridiculous as 105% financing from the Boulders, but a very close 2nd place award for stupidity.
  • Verdeaux condominiums near Kirkland and Woodinville, which have already seen $60,000+ price reductions, are also offering ZERO DOWN FHA financing?!?!?!

All of those crazy deals are just to much entertainment for me on a Saturday morning.