More numbers to know...

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...

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?

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!

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...

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?

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.