Seattle Real Estate

Foreign investors taking advantage of U.S. market

2010-10-06T09:09:00.000-07:00

Below is a Associated Press article on the current trend of foreign investors snapping up U.S. real estate at bargain basement prices. The Seattle area is experiencing a huge influx of buyers from Japan and China buying property, often times without even seeing it beforehand. The article points out that historically, buying property in the United States was only for the uber-elite of other countries. But our current down swing in the market has opened up ample opportunities for investors from all over the world to capitalize on real estate that is significantly cheaper than in their own cities.

Read the full article here: Seattle real estate deals for foreign investors...

Real Estate Red Flags

2010-04-12T15:04:00.000-07:00

The Seattle Times published a great article this weekend on common items that can delay or jeopardize the closing of a real estate transaction. Many items can pop up without warning but as they point out, most of them can be avoided with forethought by the Realtor and lender.

Also interesting to note that several of their points occur on even the smoothest of transactions. For instance, the buyer's home inspection will most certainly open the door to further negotiations. Unless a home is highly coveted by more than one buyer and is so unique that buyers are willing to pay full price or more for an flawed home...then some form of negotiation will take place during the inspection phase. Another common issue are out of town appraisers. Lenders can no longer dictate specific appraisers to be hired so as a consequence, someone from Pierce County may end up appraising a home in Seattle. Such a drastic circumstance is somewhat avoidable by a quality loan officer but a Realtors should always be double checking the appraisers knowledge of the area and providing justification for the listing price.

Here's the link the full article.

King County home prices rise first time in 2 years...

2010-04-05T16:12:00.000-07:00

King County home prices have posted a year over year increase for the first time in two years.

The Northwest Multiple Listing Service says the median price of a single-family home sold last month was $367,250. That price is a 0.9% increase from March 2009.

0.9% isn't anything to get too excited about...but at least it's something! Keep your eyes open for what the Seattle real estate market does after the spring buying season and tax credit deadlines pass.

Read the full article here.

Will historically low interest rates continue?

2010-02-24T12:10:00.000-08:00

If you follow any media source that discusses the financial world, you are likely aware that interest rates are at historic lows. Much of this is driven by how the Federal Reserve acts. Since December of 2008, Ben Bernanke and the Federal Reserve have kept the key federal funds rate at 0-.25%. The federal funds rate has a major impact throughout the financial world...but also affects mortgage rates.

The common theory in the real estate industry is that the Federal Reserve can't keep their rate at or near 0% for much longer. Otherwise, things like inflation or speculative investing start to creep in because obtaining a loan is so affordable. Many experts have thought the Fed would increase their rate in June or July, thus causing an upward effect on mortgage rates. When a mortgage rate increases even 1/2 a percent, this significantly affects a home buyers purchase power.

This morning, Ben Bernanke said that the Federal Reserve must commit to keeping key interest rate at or near zero in order to continue the nation's economic recovery. He said they must do this for an "extended period." No mention of specific time frames. So for those potential home buyers still awake and reading this post...pay attention to the news coming from our fearless Fed chief (Bernanke) because his decisions will likely have an impact on your ability to buy what you want!

Home buying tax credits aren't just for 1st timers...

2010-02-24T11:48:00.000-08:00

Seattle home prices post small increase for October

2009-12-30T08:49:00.000-08:00

According to the Standard and Poor's Case/Schiller index, Seattle home prices rose 0.44% in October. This is the first monthly gain for our area in 2 1/2 years.

The Case/Schiller index tracks 20 major metropolitan areas and Seattle was one of eleven cities to post a monthly gain in October.

Read article here.

U.S. home prices appreciate?

2009-11-24T10:02:00.000-08:00

A major index that tracks home prices in 20 major metropolitan areas, called the Standard & Poor's/Case-Shiller home price index, is reporting a modest increase in September. Their index shows prices rose 0.3% in September.

Obviously this is not a major increase and does not represent home prices in every market. But it is more positive news after yesterday's favorable report on increasing existing home sales.

Read the full article here.

Home sales rise to highest level since February '07

2009-11-23T09:01:00.000-08:00

Due in large part to the old deadline for the first-time home buyer credit. Before the credit was extended to April 30th, 2010, buyers were rushing to close on their first home by November 30th, 2009. Naturally, this caused October home sales to rise drastically.

A few weeks ago, President Obama signed an extension to the $8k credit into law. In addition, there is a new credit for current homeowners so they can get $6500 if they buy a new home. For both credits, you must have a new home under contract by April 30th. The rules of the credits allow until June 30th for those contracts to finalize financing and close the transaction.

I am not alone in thinking that the extension and expansion of the home buyer tax credits will bring the typical spring buying season a little bit earlier than usual.

Read the full article here.

4% appreciation in 2010?

2009-11-15T09:39:00.001-08:00

The National Association of Realtors recently predicted that real estate nationwide will see a 4% gain in appreciating values in 2010. This might seem far-fetched but if the extended and expanded tax credits have their desired effect...such gain in value isn't too outrageous.

The extension of the $8k tax credit and the new $6500 credit for repeat buyers aims to entice more people to buy a home between now and June. A large influx of buyers in the next 6 months would deplete the inventory of homes for sale, thus causing prices to stabalize and theoretically rise in some markets.

The big question in my mind however will be what the market activity looks like after the credits finally expire for good. If everyone thinking of buying in the next 2 years decides to buy early to get their government money, then what happens after the credit runs out? Who will be in the market to buy a home? Granted, people always need to move...but we'll really see the health of the real estate market when people aren't getting fat $8,000 or $6,500 checks in the mail.

This past spring and summer, Seattle certainly saw bidding wars for nice homes under $400k. So perhaps any appreciation will be dependent on the price point, city, neighborhood and type of home. But in the end, that's how it always works...

Read full article here.

$6500 tax credit for repeat buyers

2009-11-15T09:32:00.000-08:00

Lost amid the excitement of the recent extension of the first-time buyer credit is the NEW $6500 tax credit for current homeowners who buy another house. This particular credit could be more important than anything else for the real estate market.

Homeowners who have wanted to move for the last 2 years but remained in their home due to the soft market will hopefully be motivated to make the move when the government is giving away $6500. The middle range of the market nationwide has been slow for some time. Homes above $400k tend to languish on the market because the pool of buyers has been low.

Hopefully now that will change.

Here's a great article from the Seattle Times that explains the credit in more detail.

Tax credit extended and expanded...here are the details

2009-11-10T12:03:00.000-08:00

Last Friday, President Obama signed the Tax Credit Expansion into law. This extends the first-time buyer tax credit and creates a new tax credit for current homeowners who buy a new house.

This is a really big deal - Just ask any first-time buyer who has been trying to make the old deadline!

The tax credit extension coupled with low interest rates, creates a prime opportunity to buy your first home, move up to fit your growing family or downsize while the government helps you!

Below is a summary of the new modifications in the extension and expansion of the tax credit:

The $8,000 tax credit will be extended and available for first-time buyers through April 30th, 2010.
Prospective purchasers with written contracts in place as of April 30th, 2010 will have until July 1st, 2010 to close the transaction.
A NEW $6,500 tax credit will be available for current homeowners. To qualify for this provision, you must have used the home being sold as a principal residence consecutively for 5 of the previous 8 years.
Income limits are expanded to $125,000 on a single return and $225,000 on a joint return.
The limitation on the cost of the purchased home is $800,000.

Here are some really great websites that provide more information and answer situational questions:

Seattle sales trend upwards

2009-11-06T11:33:00.000-08:00

It's nice to see the red 'pending sales' line continue it's upward trajectory. The continued increase is due in large part to the home buyer tax credit which was just extended. Let's see if the extension causes sales to continue during the typically slower winter months.

Extending home buyer credit gaining major steam

2009-10-29T11:43:00.000-07:00

Reports this morning are suggesting the Senate has agreed to pass some form of an extension on the $8k home buyer tax credit. In fact, they are also talking about expanding the benefit to select move-up buyers that have owned their current home for at least 5 years. To clarify, nothing is official yet...but it is exciting news nonetheless.

Here are a couple links to the story:

Article on msnbc.com

Article on cnn.com

King County sales update

2009-10-05T15:28:00.000-07:00

Sales in King County are up significantly from a year ago and prices show signs of stabilizing. Prices are down 7.9% from one year ago but this is the smallest decline since December.

I anticipate sales to surge again in October as we race towards the 1st-time home buyer credit deadline.

Here's the full article from the Seattle Times.

Should $8k tax credit be extended?

2009-09-24T10:25:00.000-07:00

Update: Here's a new article from the Seattle Times that discusses the same $8k credit topic written about in the below blog post. Check it out.

This is the question of the moment. At least in real estate circles it is. The theory behind extending it and possibly expanding it is that the credit will continue to stimulate the housing recovery. On the other hand, it will obviously cost a lot of tax payer's money.

As a Realtor, I am definitely in favor of extending AND expanding the tax credit. On the ground, I see signs of market improvement and increased sales activity. However, we are not out of the proverbial woods quite yet. Perhaps allowing our politicians to spend at this rate will bite us later...and that's where I think I'm a bit shortsighted.

But in just speaking about what will help our housing market...I say give $15k to ANY home buyer for the next year. Now that's true stimulus.

Here's an interesting take on the impacts of extending or discontinuing the tax credit.

Buyers' market or sellers' market?

2009-09-16T15:34:00.001-07:00

When people talk to me about the real estate market, they are often under the assumption that we're in a complete buyers' market. A buyers' market means that less than 45% of available homes are selling every month. This in turn shifts power to the buyer and gives them the ability to ask the seller for more concessions.

Articles in the media (such as this one) make the public think that they can submit low ball offers that ask for all closing costs to be paid and the seller's first born child.

In Seattle, certain neighborhoods and certain price ranges actually reveal a different story. Tons of 1st time buyers are in the market and snapping up single-family homes under $400k. In most of the in-city neighborhoods of Seattle, sellers actually hold much of the bargaining power.

Crunch time for 1st-time buyers...

2009-09-14T10:13:00.000-07:00

We've reached the midway point in September and any potential 1st-time home buyer must get a home under contract soon or risk the possibility of not qualifying for the $8k tax credit. Average time to close a home from accepted offer to closing the transaction is about 45 days. Making an offer today and not experiencing any bumps in the road would mean closing at the end of October. Since today's lending market is the equivalent of a gravel forest service road, buyers are almost certainly going to experience at least a few minor bumps or delays. It's imperative to give yourself a cushion to close before 11/30/09.

Here's a Seattle Times article that discusses the countdown toward the deadline.

1st Time Buyer Alert!

2009-09-11T10:59:00.000-07:00

Less than $200k for a cute townhome!

Extend and expand the 1st time buyer credit?

2009-08-31T10:44:00.000-07:00

Rumblings about a possible extension on the 1st-time buyer tax credit have been growing lately. Let's hope the government abides by the old philosophy of, "If it ain't broke, don't fix it."

Unless of course they want to give all buyers even more money!

Here's a recent article from the Seattle Times about efforts to extend the credit and even raise the dollar amount.

Oh, Market...Where art thou?

2009-08-06T12:07:00.000-07:00

So is the market really improving here in Seattle? Take a look for yourself. Decreasing active listings and rising pendings and solds suggest we're at a better place than last fall and winter.

Is your neighbor ugly?

2009-08-04T10:23:00.000-07:00

Perhaps more importantly...is your neighbor's house ugly? If you're contemplating selling your own home, the appearance of the surrounding homes in your neighborhood can make a huge difference. A street lined with cute homes and manicured lawns is obviously more appealing than an adorable house in the midst of weeds and peeling paint on other properties.

This article from the Seattle Times looks at what you can do to encourage your neighbors to keep things looking presentable. In some cases, you may have to do the work!

Read the full article here.

A new twist on an old idea?

2009-07-23T12:09:00.000-07:00

A local developer is building a brand new rooming house in Capitol Hill. The Seattle times writes, "The rooms are small — about the size of a parking space — but the project's developers say they fit the budget and lifestyle of young adults who might be working as baristas or $12-an-hour clerks in big-box stores."

Personally, I lived in some form of a rooming house for 6 years of college and graduate school...but I knew all of my roommates! Not sure if I could handle close quarters with strangers. Let's hope they all do their dishes...

While not my cup of tea, it is an interesting idea to provide affordable housing here in the city. Check out the Seattle Times article below to read more.

Read the full article here.

King County property taxes

2009-07-16T12:11:00.000-07:00

Appealing King County property taxes has become a popular topic of discussion. In fact, the number of homeowners appealing property taxes in King as well as other counties have increased dramatically.

The reason for this is the sharp decline in market value for homes and the delay in how properties are assessed for taxable value. In short, comparable homes sold in 2008 are used to determine property values on January 1st, 2009 for taxes payable in 2010. So those who bought at the height in 2007 or early 2008 caused assessed values for many people to increase. Despite the actual market value decreasing 15% or more.

Below is a great article on the issue and some helpful hints on how to appeal your King or Snohomish County property taxes. If you would like up to date comparables for your house in order to appeal your assessed value...just shoot me an email and I can send them over.

Read the full article here.

Local condo projects slashing prices to attract buyers

2009-07-14T10:56:00.000-07:00

Several large, luxury condominium projects in Seattle and Bellevue are finishing construction or are recently completed. The problem is, the down turn in the real estate market has caused sales to be non-existent or extremely slow. Of the 539 units in the Bellevue Towers, only 43 have closed. To stimulate sales, they have slashed prices by an average of 20% at the eastside project.

Vulcan's newest building, Enso, is nearing completion and they are finalizing their pre-sale commitments as well as doing their best to attract new buyers. While Enso won't release their price adjustments to the press, agents were invited to an open house where we were informed some units are now reduced as much as 25%. It's nice to see they are being realistic about the market and their pricing should help move much of their inventory.

On the other end of the spectrum, Olive 8 is refusing to reduce prices and claims they will wait out the market. The developer seems to think the Hyatt hotel that makes up the first 17 floors will carry the building through this down market. Perhaps they should rethink this as only 28 of 229 units are closed.

Read the full article here.

King County home sales in June highest since October 2007

2009-07-07T11:20:00.000-07:00

Homes sales in June were up 4 percent from a year ago in June 2008. This is the first increase since the height of the market two years ago. The county hasn't recorded this many sales since October of 2007. Total sales in the southern portions of the county were actually down, while Seattle sales were up 11 percent!

First-time buyers were leading the charge on much of this market activity. But the article from the Seattle Times points out what I've said will happen all along. The people selling to the first-time buyers will eventually buy their next home and create a trickle-up effect.

Prices are still down, however. Median single-family home prices in King County were down 12% in June from a year ago.

Read the full article here.

Backyard Cottages in Seattle?

2009-07-06T09:03:00.000-07:00

Here's an interesting article from the Seattle Times regarding a current proposal from the Seattle City Council. If the council approves the proposal, homeowners throughout Seattle will be allowed to build backyard cottages up to 800 square feet. While attached mother-in-law style units have been allowed since 1994, the city more recently explored the idea of allowing property owners to develop what they're calling 'backyard cottages'. The technical term for such a structure is called a 'detached accessory dwelling unit'.

In 2006, the city decided to experiment with the idea by allowing only residents in Southeast Seattle to build these cottages. To this point, only 17 have been built. While the idea is meeting significant Resistance, a city survey reveals that neighbors either like the units or don't notice them.

In general, the city views this as an affordable and creative means for residents to downsize or allow family to live nearby. It also adds density without major development. Opponents of the plan suggest that the proposal in-effect rezones the entire city to multi-family zoning.

Read the full article here.

Seattle sees growth in city

2009-07-02T09:25:00.000-07:00

Census data recently released reveals that large cities are now growing faster than other parts of the nation. This reverses a decade-long trend of urban sprawl. The Associated Press article suggests the growth in large cities is due to the economic crisis and housing downturn. With people making less money and not being able to sell real estate as easily, they are starting to remain in big cities.

The article claims that Seattle is one of the large cities seeing faster growth in large part to foreign-born immigrants who moved and stayed here.

It goes without saying that growth in the city of Seattle will eventually help our real estate market. More people equals more demand for housing. More demand leads to appreciating values.

Read the full article here.

Mortgage rates inch upwards

2009-06-26T11:20:00.000-07:00

Home mortgage rates crept a bit higher this week with an average rate of 5.42%. This is up from a week ago at 5.38%. It appears (at least for the immediate future) that our super low rates in the mid to upper fours are a thing of the past.

An interesting phenomenon seen in in some potential buyers is the idea of holding out for that ultra-low rate of 4.78% seen a few months ago. While 5.5% is extremely low when looked at from a historical perspective, some buyers are wishing for the rate that they missed. People who bought in the 1980s will be happy to inform anyone who will listen that 5.5% is amazing compared to the double digit rates they faced a few decades ago.

Fears of inflation could be another reason rates will only continue to creep higher.

Read the full article here.

Boeing's 787 delay bad for local real estate?

2009-06-25T10:37:00.001-07:00

When looking ahead to the outlook for Seattle area real estate in 2009, 2010 and beyond...one must look at many different economic factors. I don't pretend to be an expert on other industries outside of real estate but the recent news regarding another delay on the 787 Dreamliner made me pause for a second.

Boeing certainly doesn't drive our local economy like it once did...however it is still a major player for employment around these parts. I would keep your eyes on this 787 project because any bad news for Boeing in this already difficult economic climate could have ripple effects on housing.

If Boeing loses too much money because of these delays or future orders for this plane are rescinded because of the long timeline then it's possible layoffs could follow. No jobs leads to selling houses or people not buying houses...not something our market needs.

Read full article here.

Affordable Seattle neighborhoods?

2009-06-25T10:30:00.000-07:00

This article is a few weeks old but I'd still like to share it. In the article, The Seattle Times discusses serious price adjustments from the height of the bubble to now. Many average income earning families are now able to afford homes closer or in the city limits of Seattle.

Low interest rates, lower prices and tax credits are all allowing buyers to pursue their piece of the American Dream.

Read the full article here.

U.S. existing home sales up 2.4%

2009-06-23T08:58:00.000-07:00

Apologies for the long blog layoff. An upswing in the Seattle real estate market means I have a bit less time for writing on the blog! But here we go...

The Seattle Times published an article this morning that existing home sales in the U.S. are up 2.4%. Because many of these sales are short sales or bank owned properties, the median sales price dropped to $173,000 for the national average. Read the full article here.

The western states saw an increase in home sales by 16%. In fact, this article from the Seattle Times mentions how hot the Seattle real estate market is for homes under $400,000. Seattle sales are down 33% from one year ago but up from March of 2009.

All this data is great but what does it mean? Well, it's still too soon to say we've reached bottom on either a national or local level. Three months of increasing sales is great, however it's only three months. I personally think we are starting to see signs of reaching the bottom in the lower priced tier (under $400k). Unfortunately, the pricier homes may still see a decline.

Price per square foot by neighborhood

2009-04-07T15:36:00.000-07:00

Are you curious to know how your neighborhood's value has performed over the last 15 months? Below are charts depicting price per square foot up through March of 2009. The charts below represent large MLS areas that span a more than one neighborhood. If you would like a more accurate report on your specific house, give me a call.

Ballard/Green Lake/Wallingford/Greenwood

Central Seattle/Madison Park/Capitol Hill

West Seattle

North Seattle

Richmond Beach/Shoreline

Queen Anne/Magnolia

Downtown Condos

Residential Architecutre Snapshot: The Bungalow

2009-04-07T15:33:00.000-07:00

These narrow, rectangular one and one-half story houses originated in California during the 1880s as a reaction to the elaborate decoration of Victorian homes. The style then moved eastward to the Midwest in the early 20th century, where it remained popular until the Great Depression. Bungalows have low-pitched gabled or hipped roofs and small covered porches at the entry. The style became so popular that you could order a bungalow kit from Sears and Roebuck catalog. The name "bungalow" had its origins in India, where it indicated a small, thatched home. This style of home is common throughout Seattle but are very prevalent in neighborhoods such as Queen Anne, Wallingford, Ballard and parts of Greenwood.

Interest rates under 4%?!

2009-04-04T17:39:00.000-07:00

You better believe it! Sterling Savings Bank and Banner Bank are offering mortgages with interest rates under 4% in an effort to stimulate home sales and aid builders in moving inventory.

Read more about it here.

First-time home buyers success stories

2009-03-23T15:59:00.000-07:00

This is another article from the Seattle Times (the city's last print newspaper) on a couple success stories involving first-time home buyers in Seattle. Every situation is different but there are certainly many deals to be had here in Seattle. Since when can a person buy a home for $350k in a great Seattle neighborhood?!

Read the full article here.

Homebuyers emerge for spring season

2009-03-23T15:48:00.000-07:00

I hope that this blog can offer fair and objective takes on various aspects of the real estate market here in Seattle. The last thing I want this to be is a sounding board for every positive piece of news regarding real estate and nothing realistic or sobering. I especially have a distaste for "glass half full" people that like to skew statistics and information to make everything sound peachy! That being said, I have a direct investment in seeing this market turn around for the better...so I get excited when I see articles published such as the one below. This article does a good job of stressing caution when looking at the recent gains in home sales. Furthermore, since Seattle eased into the housing slump versus crashing into it, our area may also see a more gradual rebound.

Read the full article here.

Light at the end of the tunnel?

2009-03-17T10:14:00.000-07:00

Let's hope it's not a train! The Commerce Department reported Tuesday that construction of new homes and apartments jumped 22.2 percent in February compared with January. This pushes total activity to a seasonally adjusted annual rate of 583,000 units. This surge is good news to analysts who where expecting continued declines. However, construction activity remains 47.3% lower than a year ago...so February's gains must be viewed with some expectation of more housing troubles to come. All area's of the country posted increases in construction activity except the west, which has been hit hard by the slump in housing.

Read the full article here.

House prices making mortgages more attainable...

2009-02-28T12:44:00.000-08:00

Price declines for real estate nationwide are starting to make mortgage payments line up again with incomes. Especially in the Seattle market where sky high prices simply priced many would-be buyers out of the game. Now, low prices coupled with a few new incentives to entice buyers and stimulate the housing market are causing Seattle home buyers to get more serious. Home buying incentives:

$8,000 first-time homebuyer tax credit of 2009
Fannie Mae and Freddie Mac increasing the loan limits for larger loans. The limit increase -- from $506,000 to $567,500 in the Seattle area -- means people can get larger loans without entering the private jumbo mortgage market, where rates are much higher and standards much tougher than for conforming loans.
Home prices in many parts of Seattle are back to 2006 prices.
The Federal Reserve acting to keep rates low

Many mortgage professionals are hearing (yes, this is speculation) that rates will rise in the second half of 2009. Rising interest rates all but zero out any potential drop in home prices...possibly making the next 6 months one of the best times to buy a house in the greater Seattle area in quite some time.

Importance of Staging

2009-02-28T12:11:00.000-08:00

Prepping a house for sale is of vital importance in any market but especially in a slower moving one like we're in right now. With so many houses for buyers to pick from, sellers must have every aspect of their home polished and perfect to grab buyers' attention. Staging the home prior to selling is one super common way to prep a house. If a home will be occupied during its time on the market, then a home stager can come in and consult on how to arrange furniture. One major component is removing unnecessary items to declutter the home. If a home is vacant, then stagers can bring in their own furniture and arrange it in a way that highlights the positive aspects of the home.

A Seattle real estate agent actually is credited for establishing the home staging industry in the 1970s. Homes for sale in Seattle are often staged in some way. If you're considering selling your home, it's a good idea to tour Seattle open houses of comparable homes to see the difference between staged and non-staged homes. Knowing your competition gives you perspective on where your house stands prior to putting it up for sale.

The Seattle Times has a great article on staging and its impact on selling quickly in this market.

Read the full article here.

Another one bites the dust...

2009-02-26T12:18:00.000-08:00

The Marlborough is scheduled for foreclosure auction in May. This building is a 13 story Gothic-revival building built in 1927. Formerly apartments, The Marlborough is one of several projects for Live Historic. They were in the process of converting the building on First Hill into condos. You can see Live Historic's projects: here.

While they make a nice product, it looks like we can chalk this up as yet another casualty for developers. I'm not quite sure the building will fetch the $19.9 million in debt the company has towards this project since it will more than likely turn back to apartments for the time being.

The 4th quarter was a tough one for Seattle real estate but it's likely this project has been in trouble for some time.

Queen Anne High School Condos up for auction

2009-02-25T12:55:00.000-08:00

The Seattle PI reports:

The 12 remaining unsold units at Queen Anne High School Condominiums will go up for close out auction on March 22. Nine two-bedroom units previously priced from $474,950 to $599,950 will have minimum bids of $245,000 to $325,000; a studio condo previously listed at $254,950 is down to a minimum of $145,000; and a 1,432-square-foot penthouse is down from $999,950 to a $650,000 minimum. Buyers who arrange financing from Wells Fargo Home Mortgage and close within 30 days of the auction will get $2,500 toward closing costs.

The auction is scheduled to start at 1 p.m. at the Grand Hyatt Seattle, 721 Pine St. Beverly Hills-based Kennedy Wilson's Auction Group, which is hosting, has scheduled a "how-to-buy" seminar starting at 1 p.m. March 15 at the Queen Anne High School Condominiums Auction Information Office, which is open from 10 a.m to 5 p.m. daily at 201 Galer St.

The former high school has a total of 137 condos.

This project is interesting and I think a majority of the units in the building are pretty cool. Some of the smaller ones don't have some of the common ammenities such as a washer and dryer but it is a good use of an old building. Much preferable, in my opinion, than tearing it to the ground. Shoot me an email if you would like more info on the auction.

More on the tax credit for home buyers 2009

2009-02-23T15:38:00.000-08:00

First-time home buyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction--a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income. The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Tax Credit vs. Tax Deduction

It's important to remember that the $8,000 tax credit is just that...a tax credit. The benefit of a tax credit is that it's a dollar-for-dollar tax reduction, rather than a reduciton in a tax liability that would only save your $1,000 to $1,500 when all was said and done. So, if a homebuyer were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, they would owe nothing.

Phaseout Examples

According to the plan, the tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.

To break down what this phaseout means to home buyers who are over those amounts, the National Association of Homebuilders (NAHB) offers the following examples:

Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000 and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.

Example 2: Assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer's income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

Remember, these are general examples. You should always consult your tax advisor for information relating to your specific circumstances.

Homes that Qualify

The tax credit is applicable to any home that will be used as a principal residence. Based on that guideline, qualifying homes include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured or homes and houseboats used for principal residence also qualify.

$8,000 First-time Home Buyer Tax Credit

2009-02-23T15:02:00.000-08:00

Last year the government passed a first-time home buyer tax credit that allowed eligible participants to receive $7,500. The big catch was that this had to be paid back at 0% interest over 15 years. The 2009 version of this tax credit is much improved and should cause many buyers to jump off the fence prior to November. Who wouldn't want $8,000 to pay down their loan or furnish their new place with furniture? This should be a big incentive to Seattle home buyers who are already enjoying lower prices and interest rates! Below are the basics of how the tax credit works.

Effective dates: applies to purchases from January 2009-November 2009

Tax Credit available up to $8,000 for first-time home buyers only.

A first-time home buyer is a buyer who has not owned a home during the last 3 years. (Joint purchase applies to both parties)

Eligible Property: Any residence that will be used as a principal residence. (Including single family, attached townhouses, condos, manufactured homes and houseboats) No second homes or investment properties.

Income Limits: Adjusted gross income for single filers with incomes below $75,000 and couples with incomes below $150,000.

Estimated partial credit for single filers with income up to $90,000 and couples up to $170,000. This is a general example. Please consult a tax advisor for stipulations on the partial credit.

Tax Credit vs. Tax Deduction: the true benefit is a dollar for dollar tax reduction, rather than a reduction in liability. If you owe $8,000 in income taxes and you qualify for the tax credit, you owe nothing.

Tax credit only needs to be repaid if home sold within the first 3 years.

Purchases closed in 2008 will not be eligible for the 2009 revision of this tax credit.

Take advantage of the $8,000 tax credit today!

January Numbers to Know

2009-02-23T14:59:00.000-08:00

The following graph depicts single-family home sales in the city of Seattle. Overall inventory continues to drop which is a good thing to see for the health of the market. Pending sales are down from a year ago but up from the past few months. This potentially points to more activity from buyers in the new year. As we begin the spring buying months, I expect these numbers to creep up a bit more. Ideally, the $8,000 tax credit acts as a catalyst to move sales up even more.

Obama to unveil mortgage relief plan

2009-02-16T15:53:00.000-08:00

Even in a stronger real estate market like Seattle, many homeowners still need help to stay in their homes. Obama will outline the details for his upcoming plan to stabilize the mortgage industry in order to help struggling homeowners. In anticipation of the plan, government-controlled mortgage finance companies have halted all foreclosures until March 6th. Obama seems to recognize the importance of housing in relation to the nation's economy and is expected to allocate roughly $50 billion to keep homeowners in their houses.

While foreclosures are higher in the Seattle area than in years past, other areas have been hit much harder by the downturn in real estate. One of those, Arizona, is where Obama has chosen to deliver his address for the mortgage plan.

Read full article here.

More on the home buyer tax credit...

2009-02-12T09:23:00.000-08:00

Well, it appears that in the negotiations to find middle ground between the bill that the House passed and the one the Senate passed...the $15k deal proposed by the Senate was wiped out. Of course, nothing is official until President Obama signs the package into law. But this isn't the best news for home buyers or for people like me in the real estate world. It appears the credit was eliminated to lower the overall cost of the stimulus package and perhaps put more focus on creating jobs. $15k or no $15k, people can't buy houses if they don't have a job!

There is a slight silver lining however. It seems as though the Senate and House agreed to make the current $7500 first-time home buyer tax credit permanent...meaning, a person can keep the money vs. pay it back as current law now requires. It also looks as if it might be bumped up to $8000. This could have a direct effect on Seattle real estate as it seems a lot of younger buyers are waiting out the "unknown."

In the end, I just hope the stimulus works for our country even if it doesn't have an immediate impact on the housing market. Roughly $8k will still be great for any Seattle home buyer making their first purchase...or their first purchase in 3yrs. Free money is free money!

Again, nothing is official yet. So I will have a full explanation of the bill as it relates to real estate as soon as I can.

$15,000 home buyer credit?

2009-02-05T10:52:00.000-08:00

It's not official law quite yet but the Senate took a bold step yesterday to truly stimulate the real estate market. They approved an amendment to the upcoming stimulus package that would essentially give $15,000 to anyone who buys a home in 2009. This money would come in the form of a tax credit and will not have to be paid back! The provision states that a home buyer can receive 10% of the price of their purchase up to $15k. Home prices in Seattle essentially dictate that most buyers will qualify for the full amount. If you owe money on your 2009 taxes, the amount you owe would be taken out of the $15k. This is great news for our markets, economy and any buyers sitting on the fence.

If you've been waiting for prices to drop or interest rates to drop, $15,000 should be enough reason to make you buy now while both rates and prices are low! The longer a person waits, the more buyers will enter the market to cash in on their tax credit. This will have a stimulating effect on the market and cause prices to level out or rise in some micro-markets.

Read the NY Times article explaining the tax credit.

"Will the last person leaving Seattle..."

2009-02-02T09:50:00.000-08:00

...Please turn out the lights.

Nearly everyone is familiar with the famous saying from the 1970s. If that that specific phrase, then perhaps one of the many altered forms that pop up in any depressed city or institution. According to the Seattle Times:

The message has been copied all over the world, with the word "Seattle" replaced by Detroit, St. Louis, New Jersey, Australia and even "the planet." And it has been used for other occasions in which a catchy, sardonic slogan is desired — "Will the last person with ethics on Wall Street... "

The two minds behind this iconic message are Bob McDonald and Jim Youngren. The pair were selling commercial real estate during one of the darker periods in Seattle's economy. Boeing had recently laid off 60,000 workers and the state's unemployment rate was more than double the national number at 13%. The two posted the sign as part satire and part business opportunity.

Now, with recent layoffs from Seattle's major companies: Boeing, Microsoft and Starbucks...stories and blogs have started to recycle the famous line.

Read the full article here.

King County property tax set to rise...

2009-01-30T10:45:00.001-08:00

During the last election, voters in King County approved a variety of measures to increase property taxes. The increased revenue will go towards everything from improvements to Pike Place Market to school bonds in Bellevue and Renton and parks maintenance throughout the area. Property taxes will increase overall by 6.16% in 2009.

Read the full article here.

Incentives to buy at Veer Lofts...

2009-01-27T12:18:00.000-08:00

One of the hardest hit groups of the current downturn in housing are developers. New construction pricing is at rock bottom and builders are doing anything they can to get property off their hands to stay afloat. This is especially true with new condos in downtown Seattle.

While Paul Allen's development company, Vulcan, is not in any immediate danger of going under...they too are doing their best to stimulate interest in some of their condo projects. Veer Lofts is offering the following for buyers who close on certain units by the end of February:

Pay no homeowner's dues until September 1st 2010

All closing costs paid up to $7450

$1,000 IKEA gift card

A 1 year membership to Rain Fitness, just 2 short blocks from Veer

Two $500 gift certificates for Alaska Airlines

All the units offering this great deal are under $300k. If you're on the verge of buying, this is a stellar opportunity. It takes roughly 2 years from breaking ground to completion for a new condo project to be finished and despite all of the cranes you see downtown...no new buildings have started within the last year. Over the next couple years, the current inventory will dry up and banks will again offer lending for developers to start new projects. Considering the new construction condos in downtown Seattle will be at a premium in a few years when the inventory runs out...buyers at Veer and other buildings will likely see substantial appreciation in 3-4 years.

$7,500 tax credit may be yours forever!

2009-01-26T10:00:00.000-08:00

Who couldn't use an extra $7,500? In an effort to spur potential home buyers into the market, Congress passed a bill for a first-time home buyer tax credit. In short, here's how it currently works: If you haven't owned a home in the last three years, meet certain income restrictions and buy a house between April 8th, 2008 and July 1st, 2009...you can apply for the tax credit of up to $7,500. This amount minus any taxes you owe Uncle Sam is yours on either your 2008 or 2009 refund (depending on when you buy). The catch is that you must pay it back with 0% interest over 15 years. Not bad...but nothing to get excited about.

The latest stimulus package that President Obama is attempting to push through Congress has a few minor tweaks to the tax credit that result in some major changes. Nothing is official but here is a simplified version of the changes: you don't have to pay the $7,500 back! Ever! Now that's a reason to jump of the fence if I've ever heard one. The National Association of Realtors is lobbying to push the July 1st deadline back to December 31st of 2009 which would give buyers more than a couple months to close after the bill passes next month (assuming it does!).

So with houses on sale in nearly every market; interest rates at historic lows and Uncle Sam giving you $7,500...what reason would you have not to buy your first house?

Seattle Times article discussing proposed changes to tax credit.

Numbers to Know...

2009-01-26T09:10:00.000-08:00

Here are the Seattle real estate sales numbers for the month of December 2008. As you can see, the overall trend for closed sales continued down from the summer. However, sales increased from the previous month. It's always difficult to judge sales numbers for December as the holidays and short daylight hours can skew the stats. We also had the snow days this year as well. One great downward trend to notice is the number of active listings. The more that drops, the closer Seattle will come to a balanced market. Seattle Real Estate continues to be a quality, low-risk investment. Local and national media continue to report on the stability of Seattle compared to the rest of the country.

Read about Seattle being a low risk real estate investment here.

New neighborhood map search...

2009-01-18T13:33:00.000-08:00

The city of Seattle has a new map search function on their city website that is pretty cool. It allows you to filter for certain features and attractions of your favorite in-city neighborhoods. Want to know where the nearest farmers' market is located? How about public fire pits, p-patches, libraries or locations to buy a pet license?

Check it out here and start searching a neighborhood near you!

Home buyers getting off the fence...

2009-01-12T08:51:00.000-08:00

This is an article from the Seattle PI that talks about some recent activity for Seattle home buyers in January. The new year often brings out a few more home shoppers but add on lower prices and rock bottom interest rates and the circumstances can't be better. One person quoted in the article thinks Seattle home prices still will drop 15% before the bottom hits. While this is possible, it would be surprising. Since Seattle did not suffer from over-development like Las Vegas and Arizona, the amount of inventory is high but not staggering. The recovery for real estate in Seattle depends largely on when a majority of buyers decide to hop off the fence.

Read the full article here.

Seattle Home Prices Rise in December

2009-01-11T14:53:00.000-08:00

Home prices in Seattle rose in the month of December by just over 2% from the previous month. Year over year the area is down 7%. While home values rising is welcome news, using statistics from December can be a bit misleading. The holidays and inclement weather usually mean sales are down, so a few homes in the higher price range can skew the numbers.

Read the full article here.

Will the recession redesign the American home?

2009-01-11T14:02:00.000-08:00

With the Seattle PI up for sale and Boeing announcing substantial layoffs, the Pacific Northwest can no longer claim it's in a protected bubble from the national downturn. In fact, Seattle real estate has been pretty quiet since September.

Our nation's history might suggest that our current economic downturn will our tastes for certain homes. In the years following WWII, soldiers arrived home ready to settle down as home owners but still remembered lessons learned from the Great Depression. Americans as a whole did not want to over-extend themselves but large numbers of people wanted to buy real estate. Therefore, small and inexpensive tract housing of the 1940s and 50s was born.

Flash forward to the late 1990s and early 2000s when "McMansions" were all the rage. However, our current recession combined with many Americans environmental sensitivity and their appetite for sustainability...the future homes in America might see yet another transformation.

Already, homes in Seattle are trending towards smaller, environmentally friendly and attached. Seattle townhomes are woven into the old in-city neighborhoods as city leadership looks to add urban density to account for future growth. Green building in Seattle is already prevalent and our region will continue to support this type of construction. The city of Seattle has very little land available for development, so the city might not always mirror the rest of the country in regards to housing styles. But be certain that home buyers in Seattle will begin to gravitate towards small and sustainable.

Read the full article here.

To Rent or Buy in Seattle?

2009-01-10T08:43:00.000-08:00

Real estate agents are known for always saying, "Now is a great time to buy!" Well, that's not always the case for every potential home buyer. A lot of factors go into whether it makes sense to buy a home or to continue renting. For instance, the 2009 outlook for Seattle real estate appears to show that prices will level out or perhaps dip just a bit more. That combined with historically low interest rates might point to 2009 being a great time to buy a house. However, if the current economy makes your employment situation look troublesome...or you don't want the potential headache of home maintenance, then perhaps renting for now is best.

While systematically paying down a mortgage is a proven wealth building technique...and homeownership has many emotional benefits...the decision to buy a home must be taken on a case by case basis. The Seattle Times has a great article highlighting two different families who took different paths.

Read the full article here.

Residential Architecture Snapshot: Federal

2009-01-09T09:36:00.000-08:00

Federal-style architecture dates from the late 1700s and coincided with a reawakening of interest in classical Greek and Roman culture. Builders began to add swags, garlands, elliptical windows, and other decorative details to rectangular Georgian houses. The style that emerged resembles Georgian, but is more delicate and more formal. Many Federal-style homes have an arched Palladian window on the second story above the front door. The front door usually has sidelights and a semicircular fanlight. Federal-style homes are often called "Adam" after the English brothers who popularized the style.

The main floor windows are usually up off of the street level so the well-to-do homeowners weren't forced to look at and be on the same level as the common street-dwellers. This style of home can be found in parts of Capitol Hill and Queen Anne but also scattered through the city of Seattle.

Architecture $.05

2009-01-07T14:42:00.000-08:00

Need some cost-effective advice on an upcoming home remodel? Visit the Ballard Sunday market to see John Morefield. This is a sober, yet slightly humorous, article from the Seattle PI about a young architect who finds himself as another victim of this struggling economy. Morefield has been laid off twice in the last year but chooses to have a more optimistic view of his situation. The last few weeks he could be found at the Ballard market offering advice and attempting to secure longer consultations for eventual design work. At the very least, we can all agree this is a creative idea. Just the sort of thing we want from an architect...

Visit John's website: Architecture5cents.com

Read the full article here.

First-time home buyer tax credit

2009-01-05T10:47:00.000-08:00

Okay all you first-time Seattle home buyers! The federal government released this tax credit last summer, however it's an important one to remember now that the new year has arrived. While the tax credit is a huge bonus for would-be first-time home buyers, it's not going to last forever. As it stands now, a buyer must close on their new house by July in order to qualify for the $7500 tax credit.

The Seattle Times published a recent article outlining some of the highlights of the credit. Remember: If you haven't owned a house in the last 3 years, you are considered a first-time home buyer and can qualify for the money! This makes buying your first house in Seattle even more enticing when you can receive money from Uncle Sam instead of owing him. Currently, this credit acts as a no interest loan. However I've heard some rumblings that part of the rumored stimulus package from the incoming administration will specify all or a portion of the credit will not need to paid back. Even better!

Read the full article here.

Latest on Seattle and national home prices...

2008-12-30T09:01:00.000-08:00

One of the more prominent indexes that track home prices across the U.S. released their latest report this morning. Standard and Poor's/Case Schiller 20 city index fell by a record 18% from October of 2007 to October of 2008. Their 10 city index fell 19.1%. While it might not make us feel better, Seattle real estate continues to weather the storm well.

On a semi-bright note, Seattle only fell 10.2% year over year in October. This was the first double digit loss for our city since the inception of the index in 2000. Of course, October was one of the worst months in history for U.S. stock markets and President Bush was forced to sign a $700 billion bailout plan to help ease the global financial panic. Since then, the Federal Reserve has slashed interest rates and helped drive down mortgage rates to historic lows.

Many people lost significant sums of money in their investment portfolios during the huge market declines in October. In some cases, it only took a week to lose 40-50% of a persons nest egg. That makes 10% loss in home value look benign. As a Seattle real estate agent, I admit I am biased. But using real estate as an investment vehicle is a wise and proven method. Not to mention, it's not as volatile as the stock market can be.

Read the full article here.

FHA rehab loans

2008-12-28T22:24:00.000-08:00

For those of you who are unfamiliar with Federal Housing Administration (FHA) financing...I highly suggest you peruse this Seattle PI article. Especially if you or someone you know is considering buying a home in the Seattle area. Once upon a time FHA loans were reserved for low income home buyers or those with poor credit. The last several years, the program fell out of favor more trendier loan programs (the infamous subprime loans). This past year, Washington has seen a major increase in loans through the traditional FHA program as well as their rehab loan program.

In a very basic sense, the FHA rehab loan provides up to $35k in additional funds to fix or rehab the purchased home. As we've seen a slight increase in foreclosed homes and homes remaining vacant for a year or more...these rehab funds are great! FHA loans are very good option for first-time home buyers in Seattle and King County.

Read the full article here.

Seattle Real Estate 2009 Outlook

2008-12-28T22:05:00.000-08:00

I saw this article over my time off over Christmas. It's an article from the Seattle Times regarding the upcoming year in regards to the Seattle real estate market. Everywhere you turn, another source's cyrstal ball seems to say something different about where Seattle's housing market is headed. Bottom line is nobody knows with any certainty.

The only thing we know for certain is that Seattle home prices are down to where they were 2-3 years ago. While this isn't great for more recent buyers, it's not the end of the world. Not to mention people who have owned for 1o years or more are still sitting on a fat pile of equity. In addition to more affordable prices, interest rates are at historical lows.

While this article is an interesting read...please take from it that the future looks rosier than last year but we're not out of the woods quite yet. The old saying, "Buy low, sell high." is repeated more often than it is followed. Now is a low point for Seattle housing and low interest rates make it that much more prime to buy now.

Read the full article here.

Forbes calls Seattle best housing bet!

2008-12-17T10:35:00.000-08:00

I mentioned this in a previous post but feel it is worth highlighting again. Forbes.com has pegged Seattle as the #1 city to target for long-term real estate purchases going forward. Seattle is at the top of their list of cities that are least likely to overheat and bust in addition to having the most prospering economies going forward.

Here's what they had to say in regards to Seattle:

What lands it in the first position on this list is the combination of strong job growth with a building cycle that hasn't run in high excess of demand and, in part, its constrained geography. Especially compared to cities on the West Coast, Seattle has historically not overheated in boom times.

There's just less room to grow and few laws that make it easy to do so. In these markets, building activity doesn't rise as hastily during national booms, and, as a result, doesn't crash as dramatically during slowdowns (based on historical volatility and current market conditions).

While this doesn't necessarily ease the pain of current declines in home values, it should be one more piece of evidence that buying real estate in Seattle has been and will continue to be an extremely solid long-term investment. Now, more than ever, prices in Seattle have become extremely affordable compared to recent years. This is a correction from the minor inflation of value over the last ten years. First-time home buyers who now see their first in-city home as attainable will be the heroes of this current market. As they start to snap up their first home, this will release current sellers and allow them to move up as they have been wanting...thus creating a chain reaction. Hopefully positive media attention to Seattle, such as this Forbes article, will encourage home buyers to get into the game!

Read the full article here.

1st time home buyer heaven...

2008-12-15T15:41:00.000-08:00

As a real estate agent, I get extremely frustrated with our local and national media when they refuse to cover the positives of our current real estate market. Seattle is weathering this unpleasant storm extremely well and has all the fundamentals for an eventual rebound. Seattle recently made Forbes magazine as one of the most likely cities to rebound first.

That being said, my friends at the Seattle Times recently published a great article on the possibilities for first-time home buyers. People who qualify to buy a house for the first time are in a position they might not see for another 10 years. Furthermore, once they start buying, this will allow current sellers to move on and move up. This in effect will help lead our area out of a slow housing market. So let's all cheer on those first-time home buyers!

Read the full article here.

Numbers to Know...

2008-12-11T12:03:00.000-08:00

Here's a brief look at important statistics and numbers surrounding Seattle real estate.

This graph shows how many months of inventory exist on the market in Seattle. In other words, if no new listings were to come on the market then it would currently take 10.8 months to deplete what is now for sale. Eleven months is a long time and demonstrates how slow the market is moving right now in Seattle. However, as you'll see in the next graph...it's due more to the rate people are buying and much less with an inflated number of active listings.

Sales really dropped off in November while pending sales (signed contracts set to close in the future) had a slight increase. This trend seems to follow the general pattern of all consumers right now. People seem to be holding off on purchasing items (and houses!) that aren't necessary. Again, active listings dropped significantly last month. You can see from recent history that inventory tends to drop in the dark winter months but the reduction of homes for sale will be one step on the path to a rebounding market.
We always hear in the news about prices dropping and home values on the decline. This give a visual to the factual reality of how prices are performing on a $/square foot basis. While certain outlying areas have seen significant declines, the city of Seattle really hasn't posted major declines in the prices of real estate. There is no question values have softened but many think the drop should be viewed as a slight correction to formerly inflated prices.

What your money can buy in Seattle

2008-12-11T11:39:00.000-08:00

This was a revealing article printed last weekend in the Seattle Times. It breaks down what kind of home different amounts of money will buy in the Seattle area. A person looking to spend $250k can easily find a 1 bedroom condo in the popular neighborhoods north of Lake Union. And then a substantial, yet reasonable increase to mid-$300k can buy a single family home or townhome in the same area.

Prices have really softened this fall and early winter. That combined with incredible interest rates on a home mortgage make buying in Seattle extremely compelling.

Read the full article here.

Residential Architecture Snapshot: Cape Cod

2008-12-01T08:50:00.000-08:00

Cape Cod style homes were one of the first styles built in the United States. Original Cape Cods built by the colonialists were one-story, sided with shingles and did not have dormers. As the style became more popular in urban developments during the mid-20th century, the houses retained their original style with only a few embellishments. A more contemporary Cape Cod is square or rectangle with one or one-and-a-half stories. The roof is gabled, steeply pitched and may have dormers. I realize I've used some obscure architectural terms in this post...so here are a couple definitions important to residential architecture:

Gable: A gabled roof line describes the upside down "V" shape to the ends of some houses. A basic house might be a square shape with two gabled roof lines. Where as more complex designs can have several roof lines. Here is a picture of a cross-gabled roof:

Dormer: Dormers are windows that jut out from the roof of a home, and have a roof of their own. The word comes from the Latin dormitorium meaning "sleeping room," because dormers often bring space and light to bedrooms. For decorating purposes, a dormer creates a cozy spot for a reading chair or a desk.

Lending, lending, lending...

2008-11-24T13:09:00.000-08:00

Here's an interesting piece from the Seattle PI on how lenders are working hard to get financing approved for potential borrowers.

Enjoy.

Read the full article here.

Numbers you should know...

2008-11-10T10:41:00.000-08:00

Here are the recent sales numbers for single-family homes in the city of Seattle. Only 26% of the available homes sold or went under contract in the month of October. A more balanced market would see that number grow to 50%. One encouraging number to notice is the decrease in available listings. This amount will hopefully continue to drop as buyers eat up the current inventory and sellers hold off on listing their homes during the holidays.

Click on the chart to see a larger view!

Residential Architecture Snapshot: The Tudor

2008-11-06T14:58:00.000-08:00

With so many differing styles of residential architecture out there, I will periodically feature styles commonly seen in Seattle. Most styles are not native to this area. As people moved west, they brought their building knowledge and appetite for home styles from their hometowns.

The Tudor:

This architecture style was popular in the 1920s and 1930s and continues to be a mainstay in suburbs across the United States. The defining characteristics are half-timbering on bay windows and upper floors, and facades that are dominated by one or more steeply pitched cross gables. Patterned brick or stone walls are common, as are rounded doorways, multi-paned casement windows, small porches. Tudors are highly desired in the Seattle area, however their floor plans often prove to be impractical. The steep pitched rooves and relatively small footprint (in Seattle neighborhoods) don't allow for much room inside. But people fall in love with their curb appeal and usually fork out the money to live in them. Seattle tudors are often all brick and have a little bend near the bottom of the roofline.

Google releases Street View for Seattle!

2008-11-06T14:27:00.000-08:00

This is a super cool feature new to Google Maps in the Seattle area. Google offered Street View for other cities and just added Seattle, D.C. and Baltimore to the list. As you look at a map, viewers have always been able to select from a street map, terrain map, satellite image or some combination of those. Now, when a map viewer clicks on "street view," an image box pops up that shows what it looks like to stand on the street in that particular location.

This is a very useful feature for home shoppers as they can see how certain properties look in a more realistic fashion than before. From what I've heard, Google sent vehicles around town with cameras attached and filming all the way. I haven't yet found a location that they didn't capture, which continues to amaze me. Have fun playing around with it.

Check it out!

Downtown Condo Q&A

2008-10-31T11:01:00.000-07:00

While this feature in the Seattle Times may be old news for some of you, I finally got around to reading through it this morning. I feel the questions asked and answers provided cover what the average person might be wondering as it relates to Seattle condos. Dean Jones, CEO of condo-research and -marketing firm Realogics, fielded questions online on October 8th. Seattle-based Realogics is a real estate consulting firm specializing in market research, product development, marketing and sales solutions for in-city condominiums and mixed-use properties.

Happy reading and Happy Halloween!

Read the Condo Q&A here.

Seattle real estate pegged as a hot market

2008-10-24T10:40:00.000-07:00

There have been recent articles anointing Seattle as a hot market for both commercial and residential real estate. The Seattle PI ran a story that sited outside research and named Seattle as the #1 market for commercial real estate in 2009. Another article in Smart Money magazine listed Seattle in the top 25 markets poised for a quick rebound in 2009.

The reasoning behind these reports are things many of us have been saying for a long time now. Seattle's physical boundaries are limited on most sides by water and this has prevented extreme over development seen in other areas like Arizona. Our job picture remains very positive as mega-employers like Microsoft, Boeing and Amazon.com remain relatively strong. Job growth dropped again recently and more people continue to move to the area in greater numbers than they leave. Watch for the massive development in South Lake Union to add to the desire for housing in both downtown as well as the neighborhoods north of the lake: Queen Anne, Wallingford, Ballard, Green Lake and Fremont. 2009 looks great for Seattle, so take advantage of the soft prices while they last!

Here are the articles I mentioned:

Seattle in top 25 for residential real estate! (This is an abbreviated version published by Yahoo!)

Seattle is #1 commercial real estate market for 2009!

September pending sales increase!

2008-10-13T09:56:00.000-07:00

Pending sales in September have increased 8.8% from a year ago and 1.8% from August. Below is an article that discusses this increase and what it might forecast for the market's future. Some feel it is due to approval for financing taking longer for buyers. Others feel it is a small sign of market stabilization. Since the market really slowed down in September of 2007, the 8.8% increase of pending sales one year later may indicate more sales to come.

Read the article discussing these numbers here.

Great Condo in Sand Point!

2008-10-11T14:31:00.000-07:00

Very stylish condo in Sand Point neighborhood. Close to Magnuson Park, Children's Hospital and the University of Washington! Crown molding, granite and stainless steel make this unique home glisten. For more information, click here.

Finally...some good news!

2008-10-11T14:25:00.000-07:00

This is a recent article from the Seattle PI written by Aubrey Cohen. He discusses recently released statistics from September that show a stabilization in the Seattle housing market. The article states,

Pending sales of houses and condominiums in Seattle increased 8.8 percent from a year earlier and 1.8 percent from August, while sales countywide went up 4.2% from September 2007 and declined 0.8 percent from August, according to
the Northwest Multiple Listing Service.

This is welcome news for us here in Seattle and perhaps the first signs that the bottom everyone is waiting for is arriving shortly. Granted, this is only a small improvement for one month but when the Seattle market turns the corner...I promise you it will happen quickly!

Read the full article here.

More numbers to know...

2008-09-29T13:47:00.001-07:00

This graph shows the current inventory of single family homes on the market in Seattle. According to the August numbers, it would take 6.4 months to deplete the current number of homes for sale.

Numbers you should know...

2008-09-25T15:40:00.001-07:00

The above graph shows the number of homes that sold or went pending for the last year in the city of Seattle. This gives you an idea of how much inventory moves in a given month. For numbers more specific to your area, contact me here.

What's the big deal with Fannie and Freddie?

2008-09-16T11:39:00.000-07:00

By now you've likely heard that the government is assuming control over Fannie Mae and Freddie Mac. Most people are not aware what those two companies are and why this headline is important.

Fannie Mae and Freddie Mac are the two largest companies that buy mortgages on what's called the secondary mortgage market. So when you buy a home, the company that initially lends you money will eventually package your mortgage along with several others and sell it off. Fannie and Freddie gobble those up like no other. Problem is...they acquired several bad loans over the years in addition to making some other questionable investments.

Instead of letting the companies fend for themselves and potentially go under, the U.S. government is essentially bailing them out.

Here's a quick Q & A from the Seattle Times that answers some common questions.

Read the full article here.

Price cuts are better when they're big!

2008-09-16T11:34:00.000-07:00

You often hear that the current real estate market is a "buyers' market." This essentially means that a high number of homes for sale creates a competition that gives buyers an advantage. Sellers have to have a home that attracts the largest pool of buyers from the very first day on the market. If a home sits for a while with no offers made on it, then sellers and their agents often reduce the price.

This is a good article that discusses strategy when reducing a listing price. The point of reducing price is to make a splash. So the article correctly suggests that reducing in large amounts is far better than taking baby steps down.

Read the full article here.

Tax credit for new homebuyers...

2008-09-04T10:08:00.000-07:00

The Housing and Economic Recovery Act of 2008 was a part of recent legislation passed with the intention of easing the economic woes of Americans. Part of that legislation is a tax credit for first-time homebuyers. Please consult with a tax professional prior to applying for this credit.

Highlights of the tax credit:

Amount of Credit: 10% of home, not to exceed $7500

First-time homebuyer only: Purchaser and purchaser's spouse may not have owned a principal residence within the past 3 years.

Effective date: purchases on or after April 9th, 2008

When to apply?: Available when filing 2008 or 2009 taxes

Income Limit: Full amount available for individuals with AGI of no more than $75k or $150k for a joint return.

Refundable: Yes. This credit reduces income tax liability for the year of purchase. Claimed on tax return for that tax year.

THE CATCH!: The credit must be paid back at the rate of $500 per year. If the house sells at a loss before the balance is paid off, then the balance is forgiven. If the house sells for a profit, the balance is paid off through those proceeds. In short, this acts as a 0% interest loan from the government.

Thinking of a remodel?

2008-09-04T10:03:00.000-07:00

A recent Seattle Times article discusses different remodeling projects for a variety of budgets. There are several ways to add value to your home even if you don't have much money to allocate to the project.

If you would like more statistics on how certain remodeling projects tend to return value here in the pacific northwest, I can send you a pdf that breaks those numbers down. Feel free to email me for that information!

Read the full article here.

New measure aims to aid housing slump...

2008-07-28T10:25:00.000-07:00

This article appeared in the Sunday edition of The Seattle Times. It does a fairly good job of outlining the implications of this new bill. I'm still trying to get my head around what the results will actually be...but here are some of the things the bill attempts to accomplish:

Allows certain homeowners to refinance their bad adjustable rate loans.
Offers a lifeline to Fannie Mae and Freddie Mac who appear to be struggling and also exerts more control over those two "pseudo-government" agencies.
Provides $3.9 billion to neighborhoods where foreclosures are prominent. The money is to buy and fix up properties in those neighborhoods as a means to increase surrounding property values.

It's that last point that I have not figured out yet. I have not read how that plan will be executed and by whom.

Read the full article here.

New Luxury Apartments in Wallingford

2008-07-23T11:31:00.001-07:00

Anyone looking for an apartment in Seattle that is frustrated by the lack of quality accommodations should check out the brand new building in Wallingford. It's called Howard Park and can be found at 4218 Stone Way N. Seattle, WA 98103.

The building is currently accepting leases online to begin September 1st.

The interiors are finished with hardwood floors, granite counter tops, stainless steel appliances and cherry cabinets. The roof provides a controlled access deck for tenants complete with gas bbq and hosting kitchen.

The water in the building operates on a "tankless" system that is heated through solar assistance. A solar collector on the roof aids in the heating of the tenants water--providing an environmentally friendly and cost effective system.

For more information, visit their website at: http://www.seattleapartments.biz/howardpark/

Trying to differentiate a listing...

2008-07-16T10:36:00.000-07:00

The Seattle PI has a fun article on agents and sellers trying to appeal to all aspects of potential buyers. One popular tactic is to provide a tasty treat for buyers that are coming through to view the house. Not only does it create a more welcoming atmosphere but it also causes buyers and agents to linger a bit longer than usual in the house.

I'm curious to know if this makes a difference to any prospective buyers out there. Vote in the poll in the right-hand column to share your opinion!

New town home guidelines

2008-07-09T09:58:00.000-07:00

Seattle mayor Greg Nickles called for mandatory design review for all new townhomes built in the city. This new process would provide more checks and balances in regards to the design of townhomes and other small multi-family developments. According to the Seattle Times,

The changes also would offer builders more flexibility in building
configuration, parking and open space. In some areas, structures could be
closer to the street. But some neighborhood groups believe the proposed changes could yield disastrous results: bigger, bulkier buildings, smaller yards and less open
space on the ground level.

It sounds like the proposal has good intentions as many townhomes built in Seattle are unattractive and do not fit in with their surrounding neighborhoods. Seattle is continuing to change their laws and zoning regulations as it attempts to accommodate the foreseen lack of housing in the city's future.

Read the full article here.

How will gas prices affect homebuying?

2008-07-07T09:49:00.000-07:00

With the nearly unbearable increases of gas prices, many people are rethinking their driving habits. And with no long-term relief in sight, drivers are even reconsidering how they can limit their commutes to work. This article from the Seattle Times discusses how some people are now choosing where they live to limit the amount of gas they use to get to work.

I'm interested to know how many of you would choose your next residence based on how much gas commuting from that location. Reply to this post and let me know!

Read the full article here.

Affordable Housing Tax Break

2008-07-01T11:44:00.000-07:00

Mayor Greg Nickles and the city council approved the expansion of a tax break for builders and developers that build affordable apartment or condo buildings in the city of Seattle. One potential issue is how the city defines "affordable."

Under the approved proposal, an affordable studio apartment in the city has a price cap of $1,115. They say this is affordable to a single person making $46,705, or 80% of the area's median income. Nick Licata, the lone dissenting vote, argues that many workers that live in the city make even less than the people the new tax break aims to help.

Read the full article here.

End of a Legacy?

2008-06-24T08:51:00.001-07:00

Demolition began on the old Denny's building in Ballard. I blogged about this a while back and just wanted to give an update. This building was an example of the rare yet odd architectural style called "Googie." A preservation group made attempts to save the building, but keeping it around was not practical.

Read the full article here.

Seattle housing growth is through the roof!

2008-06-18T09:26:00.000-07:00

A recent report reveals that 3 years into Seattle's 20 year plan to increase housing, the city is already halfway to their target! The city has a plan to help stop urban sprawl and accommodate more people within the city limits. The Seattle Times reports,

Between January 2005 and March 2008, Seattle experienced a net gain of more
than 10,600 housing units, with an additional 13,000 or so in progress. That's
50 percent of the city's 2024 target of 47,000 additional units.

Many opponents of rapid growth will point to these numbers and say it will lead to a decreased quality of life in Seattle. They will also use this report as evidence that a recently proposed tax incentive to build multi-unit properties should not be passed.

Read the full article here.

More on FHA...

2008-06-18T09:22:00.001-07:00

The new loan limits for FHA (Federal Housing Administration) are starting to help some buyers. In addition, the FHA backed loans are gaining more and more market acceptance.

Read the full article here.

Tax Assessments

2008-06-18T09:20:00.001-07:00

This is an interesting piece from the Seattle PI explaining why the tax assessed value of your home might go up even as your property value may have declined.

Read the full article here.

New Listing!

2008-06-16T18:14:00.001-07:00

This is a very charming house in Queen Anne with a very large back yard. It's rare to find a house with this type of yard in Queen Anne. The house also has been recently updated and includes a covered side patio; separate shop area and a downstairs apartment.

Check out more information here.

May Sales Stats...

2008-06-11T21:24:00.000-07:00

Click here to view numbers for home sales in the month of May. Then click on the link to view the PDF. As anticipated, sales are down overall from a year ago.

Great time to buy as prices slide...

2008-06-07T09:46:00.000-07:00

This article from the Seattle PI outlines the general feelings from both buyers and sellers in this market. A lot of buyers are waiting for the "perfect" house or for an incredible deal. Many real estate professionals have their views on what will change in the near future to turn all of those fence-sitters into actual buyers...thus causing the market to move faster than it is now.

Read the full article here.

Foreclosures continue to rise

2008-06-05T08:49:00.000-07:00

While the story of rising foreclosures is not new, the growing number of homeowners falling behind in their payments is not going away. As we here in the northwest seem to trend 12-18 months behind the rest of the country in most everything, the increasing foreclosure rate in Washington is becoming more prevalent by the month. In fact state legislature has approved new laws to protect "Distressed Homeowners" that are to go into effect June 12th. I will blog more on this and it's impact on the real estate market soon.

Read the full article here.

Tough time to refinance...

2008-05-31T10:49:00.000-07:00

This is a great article from The Seattle Times on some homeowners that are having difficulty refinancing under new restrictions from the mortgage industry. Many people bought homes in the last few years under one type of lending rules and now have to deal with a new set of rules. Since lenders are more strict about who they lend money to right now, some looking to refinance are suffering the consequences.

Read the full article here.

Cheap option for renters...

2008-05-29T08:47:00.001-07:00

A new and generally untested product will be coming to Seattle neighborhoods soon. A company called Unico Properties is marketing a pre-fabricated structure that investors can buy to create a cheap apartment complex. The main portions of the building are built in a warehouse and then erected at the site where the apartments are to stand.

By untested, I mean that whether or not renters will want to live in them is still unknown. But they look modern and the price per square foot will be enticing for lower income earners. A project is slated for Dexter Avenue North.

Read the full article here.

Seattle Housing Inventory

2008-05-22T09:09:00.001-07:00

Here is a simple chart provided by Trendgraphix, Inc. that shows the current inventory for homes in the Seattle metro area. In other words, if no other home came onto the market starting now...it would take 6.2 months to sell all of the homes currently for sale. Compare that to the frenzy of a year ago! This means more competition for sellers and more choices for buyers.