The West is seeing some huge increases in home sales according to the Seattle Times.

Home sales are up, especially in the west where Boise is up 115% and Seattle up 83%. Click here to see the entire Seattle Times article on the increase of home sales.

Seattle sees gains in home prices, first increase in 2.5 years.

This isn't a trend yet but home prices ticked up .44% in Oct. That's now following the trend that more homes are closing year-over-year. Prices are still down 22.5% from the high in May 2007. At least the trends are moving the right way now. If this continues for 1 or 2 more months we may be past the "bottom" and on the way up. Buyers, better buy now. Click here to see the entire Seattle Times article on the Case-Shiller index increase.

Rents are falling. It's a tough market for landlords, the worst in 30 years, according to this Seattle Times article.

I've got a rental of my own and it has been tough to get it rented. I've had to reduce the rent 9.3% and that might still not be enough. OUCH! All sectors of the real estate market go in cycles and right now landlords are taking a tough hit, but they've also had it good in the past so I don't feel so bad. The positives of real estate right now are that buyers/current homeowners can take advantage of great interest rates and there are a lot of good properties with motivated sellers on the market right now. Call me if you want more specific details for your particular neighborhood. Click here to see the entire Seattle Times article on the touch rental market.

Sales around Seattle are way, way up. Prices are still down but that's got to change soon.

Ok, 6 months straight of more home sales than the previous period a year ago. At some point you HAVE to call this a trend. November sales in King County were up 81% over November 2008. I predict that very soon more people will realize that now is a great time to buy for some people. Buy now before the prices start to increase, and more importantly, while interest rates are so good. Click here for the entire Seattle Times article on the increase of home sales.

Remodeling trends for 2010. Not so big scale.

Here's an entertaining article about what remodeling trends are in for 2010. The additions are out, replacements are in. Click here to see the entire article about home remodeling trends.

Case-Shiller reports 4th straight month of overall gains, but Seattle still down.

Though the overall Case-Shiller index did see a 4th straight month gain Seattle still dipped by 0.3%. I view this as the "glass-half-full". The mess we've been in is turning around, a little at a time. At our Monday agent meeting, where there are usually about 50 agents in attendance, the news seems good. Buyers are going to open houses and offers are being written. Interest rates are still hovering around 5% and there is a lot of good product on the market. At such a small dip in the Seattle prices (which comprises King, Snohomish and Pierce counties) I think the prices have hit the bottom. Click here to see the entire Seattle Times story on the Case-Shiller index gains.

5% of Americans plan to buy a home in 2010, mostly spurred on by great pricing.

Not only great pricing but great interest rates are the main reason to buy. Most buyers will be 34 or younger and living in the South or West. Click here to see the entire Seattle Times article.

October home sales in King & Snohomish counties surge.

Partly to do with this is the federal tax credit, which not only just got extended but also expanded. Click here to see the details from the Seattle Times article on October home sales.

Auction results for Gallery and Brix. Prices @ 30% off the last asking prices.

The auctions were a big hit and all the condos for both projects sold the day of the auction. Click here to see the specific results of each property.

FHA approved condos, changes are a comin.

I wanted to give you a heads-up concerning something that is changing in the condo sales market that could affect many condo owners.

For those properties that are FHA approved (FHA loans only require 3.5% down so many first-time buyers or those will little cash to put down use this program a lot) they will have to get "re-approved" every year, which can take some time and could potentially block any FHA buyers from being able to buy at that property. (fewer potential buyers BAD, more potential buyers GOOD)

If a property had not been FHA approved a buyer used to be able to get a "spot-approval" to buy into that building. That ability is going away, thus potentially eliminating some potential buyers for the community.

As of Nov 1st FHA is also requiring that the reserve study be funded to at least 60% of else they will not give the buyer the loan. A reserve study is a 10-20 year plan (budget) of upcoming projects and how much they will cost in future dollars. Every month as the dues are paid part of those dues go into the reserve account to pay for those upcoming projects. If at any time the reserve account does not have at least 60% of the funds needed at that time then you cannot secure an FHA loan for the property. This could potentially, and severally, affect those lesser expensive units in the community that are on the market or will be on the market in the future. If your property doesn't have a reserve study completed then your property could have fewer potential buyers, and that's never good for a condo property.

As a condo owner you should approach your condo board and make sure they are aware of this pending change and ask the following;

• do they have a current reserve study? The new rule will also require that the reserve study be updated yearly and this should be budgeted accordingly.
• how funded is the reserve study?
• is the property currently FHA approved?
• are they planning to get "re-approved" in the near future.

Please let me know if you have any questions about these pending changes and the sooner you jump on these items, the better.

Smaller homes becoming more in demand.

For the first time in 14 years the median home is shrinking in size. This is largely due to buyers wanting to keep home costs as a minimum, from the purchase price to the utility bills and upkeep. Small is the new big. Click here to read the entire Seattle Times article on smaller homes.

Today's Real Estate realities; buy what you can afford, get a fixed-rate loan and your home is not a piggy bank. Sellers...be patient.

We are back to the way it was post WWII. Reality has set in and the pendulum is almost where it should be and we are back to requiring a down payment, verifying income and making sure the borrower is in good standing. Click here to read the good Seattle Times and Associated Press article on today's Real Estate realities.

Great renovation stories.

I love it when a good remodel is done a house with lots of potential. Click here to see some great examples. I hope you find inspiration in some of these stories.

Sales in pricier West Bellevue and Queen Anne up dramatically.

Sales are up in both those pricier areas due to confidence of higher-end buyers and the high number of first-time buyers, which allows the upper end buyers to move forward. Many of the purchases in West Bellevue/Medina were short sales, of which some may not close even though they have an offer on them. My listing in Enatai, just south of downtown Bellevue, is getting more internet hits and starting to see more activity. Click here to see the entire Seattle Times article on the increase of home sales in the higher-end areas.

State economist says signs of recession end still there.

Positive growth and slowing unemployment figures continue to be better this month signaling the end of the recession. Click here to see the entire Seattle Times article on the ending recession.

Housing in 2012? Seattle predicted to be up by 4.5%. See slide #8.

Housing will be much different by 2012. Major issues will be local governing concerns, not national credit issues. Click here to see the entire MSNBC story about where housing will be by 2012.

The recession is over...according to a Seattle Times article.

The Seattle Times and Marketwatch reports that the recession is over according to a continued rise in manufacturing demand. Though it is officially "over" it will still take time for jobs to return and once those jobs are filled then consumers will feel free to spend, really bringing us back to a balanced market. Click here to see the entire article on the recession ending from the Seattle Times and Marketwatch.

Typical King County family can now afford averaged priced home, according to the Seattle Times.

The Seattle Times has a great article that shows the typical family earns $81,965 and can afford the median house price of $387,500, the best figures for the typical family since 2004. This is in large part to the median price dipping due to less expensive properties being purchased at a higher rate than more expensive homes and the low interest rates, which could increase. Buy now while the buying is good. Click here to read the Seattle Times article on house affordability in Seattle.

7.2% increase in national home sales over last month, the biggest jump in over 10 years.

The Seattle Times reports that this increase is the biggest in over 10 years. 1 out of every 3 homes was purchased by first-time-buyers, which is the biggest driver to the entire housing market. Without first-time-buyers it would be hard for move-up-buyers to buy their next house. Click here to read the entire Seattle Times article on increase home sales.

Fed says the economy is leveling out. Rates still great.

The Federal Government appears to be pulling in some of the "life preservers" used to stabilize the economy while still keeping rates low. Click here to read the entire Seattle Times article on the Feds efforts.

Freddie Mac is showing a profit - a sign for better times to come?

The Washington Post reports that Freddie mack will not be asking for additional funds from the government, maybe that's a sign that recovery is on it's way. I also have a great Q & A with the interim CEO, John Koskinen, which I'll try to find and publish. Click here to see the entire Washington Post article on the status of Freddie Mac.

Unemployment rates dips a hair.

Though the number of layoffs increased the unemployment rate dipped as some people stopped looking for work. The number of people who lost their jobs, 247,000, was the smallest monthly loss since last August. Click here to read the entire New York Times article on the U.S. jobless rate.

July sales are up but median prices are down. Another article about July activity.

Here is another article about what I had posted yesterday; July sales are up but median prices down. This article has some great graphs to show the activity. Click here to see the entire Seattle Times article on the increase of sales.

Sales are up to the same level as August 2007, the month the real estate market melted.

Though median prices have come down, which isn't surprising since most of the purchasing activity is in the lower range of homes, the number of sales is up - 10.6% higher over July 2008. Click here to read the entire Seattle Times article on the increase of home sales.

California, Arizona and Florida show signs of economic stability.

Three of the 4 states that have been the hardest hit by the real estate meltdown show improvement. Michigan is the only other state that is not recovering. Sales in California and up 20%+ year-over-year and foreclosures down. Prices have increased 3 months in a row so it looks like a trend is starting. As I've said before, unemployment will continue to rise as that is one area that recovers last. Click here to see the Associated Press article as printed in the Seattle Times.

Realestalkers - watching your dream home for years until it finally comes up for sale.

It's true, some people see a home they love and wait for years to finally buy it. I have a friend who bought a Paul Hayden Kirk designed home about 7 years ago. When she bought it there were 2 other buyers who had also put in bids but she got the house. One of them wrote her a letter after she moved in, asking her to contact them if she ever decided to sell the home. Her life changed 5 years later and she contacting them, letting them know she wanted to sell the home. They bought the home after waiting 5 years for their dream home. Click here for the entire Seattle Times article on Realestalking.

Short-Sale mania in the heart of Bellevue.

I was doing a project for a client and discovered some interesting information. I was looking at real estate from $900k-$1.5m between 520 & I-90 and 405 to the lake. I pulled what had sold and which properties had received offers on them since May 1, 2009. 64% of the 22 homes that are in the Pending status were Short-Sales (SS) or Bank-Owned. Of those 26 that closed since May 1, 12 were SS or Bank-Owned. Since these properties were selling between 10-20% less than the asking price it is making it harder for those sellers whose homes are not financially distressed to compete in the market place. I pulled the same criteria for the Seattle/Capitol Hill area and found no SS. Probably because Bellevue has a lot more new construction and Capitol Hill is pretty built out. There are still more SS homes on the market and I'm hoping they all get sold quickly.

15 of the 20 cities in the Case-Shiller Index show improvement but Seattle slips 0.3%.

This isn't bad at all considering this index counts housing from Tacoma to Everett as part of the Seattle number and those areas further north and south are still dealing with a high number of Short-Sales and Foreclosures. Click here for the entire Seattle Times articles on the Case-Shiller Index report for Seattle housing.

Meth-Lab homes - how to discover them.

Though the number of meth-lab homes has decreased dramatically in Seattle since 2001 the after effects of a meth-lab can be enormous. The amount of clean-up is staggering and it is hard to know if methamphetamine was ever made in any home. This Seattle Times article has links on where to gather information about meth-lab homes and is worth the read. Click here for the entire article on methamphetamine homes from the Seattle Times.

Simple steps can prevent buying a home disaster, per the Seattle Times.

There are a few things a Buyer can do to ensure they know what they are buying. First, closely read the disclosure statement (also called the Form 17) the Seller will provide to see if there looks like there could be potential problems. Second, do a thorough inspection with a reputable inspector. Third, if it feels like something is wrong with the house, there probably is so follow your gut. There will never be a perfect house but take the time and diligent effort to know what you are buying. Click here to see the entire Seattle Times article on buying a home and simple steps to prevent big problems.

Case-Shiller index reflects house pricing increase - first in 3 years. Maybe a recovery?

The Case-Shiller Index is closely watched and has some good news to report; housing prices are up, the first increase since the summer of 2006. Though it's still down from a year ago at least it is headed in the right direction. It will take a couple more months of improvements to really show a trend. This good news should help bolster consumer confidence. Click here to see the entire Associated Press story on the Case-Shiller report on the home price increases.

New home construction picks up with Quadrant, the largest builder in WA.

This is great news in the Seattle Times since many builders watch what is happening with the biggest builders to predict where the market is going. They have increased the number of new homes they will be completing daily by 1, or 30 in a month. Click here to read the entire Seattle Times story on the uptick in new home construction.

Tax assessment rates drop along with the market.

I knew it would happen. I recently received my new 2009 tax assessment for my home and it's down 12.2% from 2 years ago. I knew it would be down, just not sure by how much. I had dinner with some friends last night and they saw drops between 15-20% so I should consider my lucky. (?) Thought my taxes should go down I've ready that levies are going up so I don't know if I will be paying less after all. On the bright side, at least the tax assessed value didn't drop as much as my retirement account (@38%). Click here to see an article concerning tax assessments.

Nationally, home sales continue to climb for the 3rd consecutive month, as reported in the Seattle Times.

3 months of increased national sales might just be the start of a trend. We are not out of the woods yet but might be getting closer. Sales of previously owned homes increased while sales of foreclosures and new homes declined, all good signs. Click here to see the full story of increased sales in the Seattle Times.

A old housing idea, a rooming house, is built again on Capitol Hill.

The Seattle Times reports of a new development on Capitol Hill, a rooming house. The rooms range from 90-168 Sq Ft, have no kitchen, a small bath and no closets. One of the partners in this project, Calhoun Properties, already owns several rooming houses in the U District and they fit a real estate need nicely. Though there are only 6 parking spaces for the 46 rooms the owners say that few of the renters of their other properties have cars so it will probably not be an issue. I think they are right. The location is good for bus access and those who want to live in this type of rental probably don't have the money for a car or don't want a car. With a shortage of low-cost housing I think this idea is brilliant. Click here to see the entire Seattle Times article on the rooming house.

Puget Sound Business Journal reports Seattle prices down only 6.6% from peak.

That's great for Seattle and very good news but I still have to question where the starting point was and what is include in this report. I KNOW that several areas around Seattle and still very hot and selling like hotcakes (just ask my clients who keep losing out on offers they are making) but other areas and price points are still challenged. This is still a great report and click here to see the entire report and article from the Puget Sound Business Journal.

High-end, high-rise condos are slow to sell, some offering 20% discounts.

Well duh. Real estate supply and demand is ALWAYS trying to find equilibrium and even supply and demand amongst different price points is always hard to have perfectly balanced so it's no surprise that there is an over supply of high-end condos right now. A lot of condos have been recently built and sales in the $1m plus are slow both in condos and single-family homes right now. Supply is high and though money is available for loans many buyers aren't willing to buy yet. They are either waiting for their current house to sell, are nervous about jobs or just paralyzed because their private portfolio is down 30%+. Lowered pricing will get some off the fence but not for everyone. Consumer confidence has to return. Warren Buffet always says you should be doing the exact opposite of what everyone else is doing and right now that would be buying real estate, especially in great neighborhoods or great condo towers. One note, since there are no new projects scheduled to be completed until at least 2012 I predict a shortage of condos in the next 2 years. Click here to see the full Seattle Times story on high-end condo price reductions.

King Country home sales up. Highest increase since Oct 2007!

I've been sharing with clients for the last 2 months that I'm busier than ever. That business has now translated into closed sales in June and I predict July and August to be even better. There are many areas that are a "Sellers-Market" and still some areas that are moving slower. Click here to see the entire Seattle Times article on increase of home sales in King County.

Belltown park to be built on Bell St, between 1st and 5th.

This will be a welcome change to this area though I'm not happy that it will eliminate some of the parking, which is always tight in that area. The vote was unanimously approved by the City Council on Monday for the park. I think that there should be more pockets of parks throughout downtown since we won't be able to create one large park. Click here to see the entire Seattle Times article on the new park.

Seattle home sales prices edge up in April .23% - first rise in a year per Seattle Times article.

What's most important is that this is from the Case/Shiller index, which tracks home prices in 20 metro areas and the Seattle area is comprised from Tacoma to Everett and Bellevue. This is good news as the north and south ends have been hard hit with Short-Sales and Foreclosures, pushing home prices lower for the indexed area. As I've said before, closer to downtown Seattle and downtown Bellevue the prices have held much firmer and even going up in the Beacon Hill/Rainier Valley area (see previous blog entry.) Everything is not rosy yet but at least it is headed the right way. Click here to see the entire Seattle Times article on home price increases in Seattle.

Q&A - How do you measure home prices? Great Seattle Times article.

Being an agent I see several conflicting reports monthly as to the current value of homes in the US. One report might reflect a 22% depreciation in home values while another might say 9% for the same period. It can be confusing. Here is a GREAT Q&A to help explain this. It covers the 2 most used methods and how they are impacted by Short-Sales and Foreclosures in determining house values. I believe there should be only one method used which would include all real estate transactions (including Short-Sales and Foreclosures) but they should also note what the appreciation/depreciation would be without factoring in the distressed properties. There are many areas whose numbers are dramatically different depending on how you slice and dice the information. One fact, that distressed properties are in all segments of housing in the Seattle area, though much more in the north and south areas, and that they need to be purchased in order to get the entire housing market back on track. Click here to see the entire Seattle Times Q&A on measuring home prices.

Appriasals may be a challenge in our market.

The rules for appraisals might kill some deals. Lenders can no longer choose their appraiser (good idea) but also cannot know who the appraiser is and the agent can have no contact with the appraiser (bad idea). The agent can help the appraiser understand the property better and inform them of the positives for that property, some of which are not necessarily evident. Appraisers, like agents, get to know specific areas and when they are called to do an appraisal in an unfamiliar area they sometimes produce a low appraisal. There should be some communication between the appraiser and the agent but the appraiser should NEVER be influenced about the price by anyone. Click here to read the entire Seattle Times story on appraisal concerns.

Seattle Mayor proposes cottages to be built behind your home.

Mayor Nickels is proposing legislation to allow 50 "cottages", which could also be described as Mother-In-Law apartments with a little more space, to be built every year. There will be required guidelines but could be great for those families that want/need to have this extra space. Click here to see the entire requirements for the "cottage" proposal.

Sales up but median prices still slip due to Short Sales and Foreclosures in the west according to the Seattle Times.

This is a trend that I believe will come to an end shortly, especially in Seattle. With sales up, which is being driven by First-Time Buyers, good interest rates and low prices, the less expensive properties will get purchased and allow those home owners to move up to the next price point of homes. The hardest hit areas in the west (Las Vegas, Phoenix, San Diego) are showing much higher sales than a year ago.

I'm working with a client looking for a good town home in Ballard and yesterday we saw 2 he really like, both of which had at least one offer on them the night before. Town homes under $450k northwest of Market are flying off the shelves. There is definitely something in the air. Click here to see the entire Seattle Times article on the increase of home sales in the west.

Changing rules could make it harder for transferees' to buy a home.

The new rule limits the amount of income that can be counted as "trailing income" to qualify for a home loan. Trailing income is the projected income that a spouse who is moving with the transferee will make once they secure a job. With a challenging job market lenders are assuming that the spouse (or 2nd income partner) might not find a job quickly or make as much as they previously did. This will cause some people to rethink a move and may cause some the inability to get a loan. Click here for the entire article on the new rule found in the Seattle Times.

Study says that certified "Green" homes appreciated more than uncertified homes in this Seattle Times article.

Homes that are certified "Built Green" have appreciated 1% percent in 2007 and 8% during the first 8 months of 2008. "Built Green" has caught on in our city and I do believe that most people will by something "green" if the price is relatively comparable. Click here to read the entire article on "green" appreciation from the Seattle Times.

WA unemployment doesn't rise in April, but still high at 9.1% according to Seattle Times.

The rate didn't increase but I project it will continue to rise at a slow pace as job growth is the last area to bounce back when a recession cycle ends. The rate is much better for King County than the state. Click here to see the Seattle Times article on the state unemployment figures for April 2009.

It's become a Seller's market in Ballard, North Seattle and Green Lake, according to the Puget Sound Business Journal.

I have clients that had been looking in Ballard (Crown Hill) and the surrounding area in the mid-high $400k range. We were beat out on one house (3 offers were presented, the other 2 at or above asking price) and one other sold before we could get the offer written. Since then we have purchased a wonderful house in Ravenna so they are no longer on the emotional roller coaster of losing a house that they like. All this happened within the last 3 weeks. Yes, homes in those areas are selling quickly if they show well and are properly priced.

On a similar note, my clients looking in the Madison Valley/Montlake area are also finding the houses they really like getting offers within days of hitting the market. They are looking in the $500-525k range.

Click here to see the entire Puget Sound Business Journal article on increasing home markets.

The next "hot button" with water intrusion issues for homes.

Exterior Insulating Finishing Systems (EFIS), commonly referred to as DriVit in the business, has been a topic of concern in Seattle for years. This type of building product looks like stucco but is actually a panel with stucco looking material applied to it. It is often confused with stucco since they look similar. Since it is a newer building product the issue with EFIS in our area is that it had been installed incorrectly in many circumstances, causing water to seep into houses/buildings and causing rot from the inside out. We now have an understanding of what to look for with this material and how it can be properly used. I believe the next big issue will be those homes with cultured stone applied to the exterior. Often times there is no backing and the stone is applied directly to the house without any type of vapor barrier being used. Builders call this "lick and stick". The issue will be that water will get behind the stone and rot the house but will not be visible because it is behind the stone. If you are buying or building a home with a stone facade make sure all the stone work is property installed with a vapor barrier behind it.

Home delinquencies on the rise, but at a much slower pace, according to the Seattle Times.

It's slowing down but if job losses continue to rise then they might start to increase at a higher rate again. Job loss is usually the last hit area in a downturn and the last to feel the recovery as employers usually don't rush back quickly to hire employees. Also, the largest wave of interest rates to reset is behind us and those adjustable rates that are coming due are not as high as those over the last couple of years. A relative in Spokane had his mortgage reset in January and went from a 7.5% rate to a 5.5% ($200 less per month), which was a wonderful surprise. Click here for the entire Seattle Times article on the slowing of delinquencies.

Short Sale, some questions answered in The Seattle Times.

They can be tricky, those Short Sales. They are hard on both Buyers and Sellers alike and are very hard to manage. There is the possibility of getting a good price but not necessarily. You need to have your agent still do a Market Analysis to confirm that the price is not more than what it should be. Click here for the entire Seattle Times article on Short Sales.

College towns where job growth is happening...Seattle is on the list.

According to the Forbes article Seattle is one of the metro areas where job growth will provide job opportunities for new grads. On the top of the list is Provo, Utah, where my parents live and where BYU is continuing to help the job growth in that area. Click here to read the entire Forbes article on college towns with job growth. This is particularly important to real estate because job growth translates into housing needs, which increases demand for housing and usually results in housing appreciation (as well as higher costing housing, the down-side of job growth.)

Job losses are at a slower pace according to the Seattle Times.

I hope this means that the higher numbers are behind us. I expect the "recovery" to take some time. I do think that this situation, however challenging it is, is making us a more fiscally responsible society. Click here to see the entire article on unemployment figures from the Seattle Times.

WA is one of the 5 states expected to lead the country out of the recession through job growth according to CNBC.

We are one of the 5 (WA, OR, CO, TX, ID) that are expected to see job growth by the end of this year, helping further to end the recession. The bridge does lead us somewhere...Click here to read the entire article on anticipated job growth from CNBC.

Affordibilty increases in Snohomish County according to the Seattle Times.

As prices have dropped more potential Buyers have been able to enter the home-buying arena both in King and Snohomish County. Click here to see the entire article on affordability with some great statistics provided by the Seattle Times.

Many neighborhoods are becoming within reach for the average family according to this Seattle Times article.

With the decrease of home values in many areas, especially those to the north and south of Seattle, there are many neighborhoods that were once too expensive for the median income-making family that are now affordable. This is particularly driven by the foreclosure market, lower interest rates and amount of homes on the market. As with all cycles there are silver linings and this one is that if you are looking to buy a home, now might just be the right time. Click here to see the entire Seattle Times article on housing affordability.

Beacon Hill - bright spot in Real Estate according to Seattle Times. Also, see which areas increased in value and which decreased.

The prices actually climbed in the Beacon Hill and Rainier Valley neighborhoods. This growth is attributed to a lower cost to buy in those areas and the demand for those areas has grown due to the pending light-rail train that will be running soon. Great interest rates are helping buyers enter into neighborhoods that were cost prohibitive in the past. Click here to read the entire article from the Seattle Times about Beacon Hill and Rainier Valley.

Interest rates increase in the Seattle Times article.

If you were planning to re-finance your current mortgage but were waiting for rates to go lower than the 4.75% they were hovering around then you might have missed the golden opportunity. They have gone up @ 1% in the last couple of days. Rates do fluctuate but they have not been this good for @40 years so only time will tell if they are going to come down again. I've strongly recommended to my clients that they watch the rates more than the price of a home because a small increase in the rates can strongly lower their buying potential. Click here to see the entire Seattle Times story on interest rates.

Clients lose bidding war for house in Ballard priced just under $500k.

My clients saw this house the first day it was on the market, not much to look at on the outside but with a cool Mid-Century feel on the inside. They wanted to think about it overnight and the next day we wrote up an offer. That night at 11:00 I presented the offer to the Sellers in person (I was the 3rd of 3 offers for the house). We lost the house as the other two offers were willing to go higher than my clients comfort level. Multiple offers are still going on out there. We lost a 2nd house as well, it sold just 2 days after coming on the market and before we even had the opportunity to write up an offer. Now we are working on our 3rd...hopefully 3rd times a charm.

US home sales in April up 2.9%, fueled mostly by First-time-Buyers and foreclosure sales according to Seattle Times.

Median prices continue to lower mostly due to the fact that homes in the lower price point are moving more than homes in higher price ranges. Since most activity is in the lower price range the median price will probably continue to sink a little longer before starting to climb. In Seattle there is a ton of activity for homes/condos under the $500k range. Click here for the entire Seattle Times/Associated Press article.

Analysists predict recession is coming to an end by end of this year.

The Associated Press article claims that most economists believe the recession is coming to an end by the end of this year. To see the entire article about the recovery click here. I believe it will continue to be a bumpy recovery but a recovery will come. There are signs around and personally I'm busier than ever with my Buyer and Seller clients.

Seattle ranked 50th best place to live...in the WORLD according to Mercer.

Mercer publishes an annual report of the best places to live in the world. This survey is conducted to help corporations and governments place employees on assignments all over the world. Of the 251 cities in the survey our very own Seattle ranked 50th. European cities dominate the top rankings. Click here to see the entire list from Mercer and a video on how they rank the best places to live.

Home Equity Line of Credit (HELOC's) are getting harder to secure and more costly according to the Seattle Times and New York Times.

Banks are charging higher rates and are not granting as many HELOC's as in the past. Concerns still linger over a house being upside down financially (owing more on the house than what it is worth). If you do have one already don't be surprised if the bank wants to reduce it or increase the rate on it. Currently rates are over 5%, higher than many long term loans. Banks are hoping the higher rates will curb the use of these loans. Click here to see the entire Seattle Times/New York Times article on HELOC's.

Home prices may be lost for a generation as Baby Busters and Gen Xers have less money to spend, according to the Seattle Times and Bloomberg News.

Demographics may keep housing prices from increasing significantly for at least a generation. Those born post Baby Boomer years have less buying power and will probably choose to purchase smaller homes. To read the entire Seattle Times, Bloomberg News article about slower equity growth click here.

State's unemployment holds steady for April 2009 according to the Seattle Times.

Unemployment is holding steady for the state and slightly dipping in the Seattle/Bellevue/Tacoma area. It's too soon to know if this is a tread so we have to continue watching next month.

To read the entire Seattle Times unemployment article click here.

My new Buyers, Kris and Shanon.

It's great working with first-time home buyers. It's even better when you get to work with your friends to help them buy their first home. That's what I got to do with Kris and Shanon over the last couple of months. We closed on their new home on Tuesday, May 12, 2009, after a couple of months working with the bank to purchase this home in Short-Sale. I feel great that I was able to provide the service I like to provide even under these circumstances. A Short-Sale seller has nothing more to lose so it was a challenge to ensure that Kris and Shanon got a home that was clean and ready to move into. I did have to negotiate with the listing agent to have additional cleaning and carpet cleaning done before closing. There was also a lot of junk around the house that I wanted removed for them, which for the most part was gone. It's a beautiful house that needs some TLC, which I know can be provided by them. I wish you many years of happiness. Congratulations!

I finally closed a Short-Sale.

It actually happened, I closed a Short-Sale in Lynnwood for my Buyer clients (albeit closed about a month later than originally planned.) I've read that only about 25% actually close and that doesn't surprise me. The Listing agent does a lot of work in the north end and does a lot of Short-Sales. His personal experience is that they can and do fall apart all the time, even up to the day before closing. Lessons learned; don't plan on hearing quickly from the lien holders on the house and once you do they usually want very quick action. Short-Sale Sellers have nothing to lose so it's have to hold them to the contract. You have to be VERY diligent to make sure the contract is followed and the home is clean and trash-free by closing. If they don't perform your only recourse is to walk from the deal, which would usually be within days of closing.

Vulcan's Rollin Street Lofts being converted to apartments.

Everything is a cycle in real estate and it follows supply and demand. Just a couple of years ago many apartment buildings were being converted to condos due to demand. Now, some of those with poor sales are converting back to apartments. I've talked to 2 different developers who bought buildings with the intention to fix up and convert to condos. They bought, they fixed up and now are selling as an apartment/investment building. Vulcan's Rollin Street Lofts on Westlake and Denny are converting to apartments since they had low sales and now there is a higher demand for rental housing. It's just a cycle... Click here to read the entire Seattle Times article on Rollin Street Lofts.

New homes that can't be sold are torn down in CA. Seattle Times article.

There are some areas that were heading for trouble because of how much new housing was being built, mostly in Florida, California, Nevada and Arizona. Because they have area to build...they did. Now with homes, some partially completed, sitting on the market some developers are deciding to raze the homes and recycle the materials. To see the entire Seattle Times article click here.

Is recession coming to an end? Some chief economists say yes in this Seattle Times article.

There are some positive signs in the economy. In general recovery will be slow but steady though unemployment will continue to climb before leveling off. It's normal for unemployment to lag behind any recovery and is usually the last component to "correct" itself in a recession. Click here to see the full Seattle Times article.

Sales surged April up 11.4% from a year ago and 21.3% from last month. Seattle Times article.

Purchases by First-Time Buyers are making April sales the best month since Sept. 2008. Here is the press release from the NWMLS. Seattle Times also had an article today, with pretty much the same information. Homes over $1m still sluggish. I've had several clients who have lost out on properties in the lower price range, the properties sold while my clients were trying to decide what to d

Wall Street Journal article about Short-Sales.

The truth about Short-Sales is that some lenders will still go after Sellers for the unpaid balance on the loan even after the Short-Sale or Foreclosure is completed.

Click here to see the full Wall Street Journal article about Short-Sales.

Built Green is the way to go.

I attend a training class almost every week with my company. Last week it was on construction that is Built Green, which is a trademark name. Incredible topic that takes the impact of development from the very beginning stages through entire life cycle of the property. Some properties say they are built green because they used bamboo flooring. That's one component of the philosophy but it's much more than that. No impact now and little in the future could get the Built Green stamp of approval. To learn more go to builtgreen.net.

According to Business Week, our own Mill Creek is rated as one of the best places to live in the US.

Go figure. I've always like Mill Creek but it was too family oriented for me personally. Business Week rated it 2nd in the nation. The new shopping area is great but getting into and out of can be a chore. Here is the full story from Yahoo Finance and Business Week.

Bloomberg story on reasons the Fed, Fannie and Freddie are motivated to start lending again.

The Fed, Fannie, and Freddie take more steps to help lower mortgage rates
-The last paragraph, The TED SPREAD, explains why banks could soon be highly motivated to loosen the purse strings, and start to lend again. Though I don't understand all of it I can feel that money is starting to flow again. Click here for the full Bloomberg story.

CNBC - Rates fall to record lows.

Rates fall to record lows according to CNBC. How long will it last? Not forever. Will it go lower? Not likely. I just don't see how the banks can get any lower. I've seen individual builders be able to buy the rates down to the high 3's but that is far and few between. Click here to see the entire story.

CNBC story - Bidding wars - have we hit bottom?

Some bidding wars are starting to break out. Are we close to stability? CNBC has a good story, some positive, some reserved. Click here to see the entire CNBC story.

From Bloomberg - Pending Home Sales Rise in February

Good supply and great rates are translating into an increase of home sales in February according to Bloomberg.

Click here to see the entire story on Bloomberg and the increase of pending homes.

MSN.com - 10 Mistakes for First-Time Buyers

Here are 10 things to watch out for as a First-Time Buyer from MSN.com.

Click here to see the entire article for First-Time Buyers on MSN.com.

Homes in the Bothell/Lynnwood area are selling!

I'm working with some clients that have made an offer on a Short-Sale home. We have been waiting 6 weeks already for the bank to let us know if they will accept our offer or not and just found out that we will have to wait at least another 2 weeks at least. In the meantime I had a search running for these clients and the number of homes that fell within their criteria continued to pile up. They want to continue looking at other homes so I opened the search to send them the 53 homes and at least 60% of the homes that were Short-Sales or Banked Owned already had offers on them. I don't know how many will actually close but they are being snapped up quickly.

Layoffs flattening out - slivers of hope - Seattle Times Article

The Seattle Times reports that though there were 663,000 jobs lost in March the good news is that the number did not have to be adjusted upwards. Often when the numbers are released they are "trued up" the next month and are sometimes worst than expected. Since the expectation was correct it might be that job losses are leveling off. Click here to see the full Seattle Times article about job losses.

Forbes Article - 10 Things to Buy Now - Real Estate

Forbes recommends buying some big-ticket items now while we are still in a recession. One of them is Real Estate, especially with prices down, interest rates good and plenty of inventory to choose from.

To see the entire Forbes article about real estate click here.

Seattle Times article - sales up 33%

The Seattle Times reports that median home prices slid 17.3% year over year but sales surged 33% from a year ago. First time buyers and those buying for investment are pushing this figure.

Though the median price has dipped 17% from last year now that money for jumbo loans is coming available I suspect that the higher priced homes will start to move, increasing the median sake price.

Click here to see the entire Seattle Times real estate article.

First time Buyer buys cool digs in Belltown

I just helped Dave buy his first place, a great studio condo in Belltown at the Trio. Located just north of the sculpture park it is easy walking distance downtown. The space is not a typical studio as there are large glass panels that slide open to the bedroom, making it possible to create some privacy with ease. Nice finishes and a view of the Space Needle make this a great first home. My buyer is going to have some additional storage built in in order to take maximum advantage of the space.

It was great working with him and the process was very smooth. I kept him informed of what to expect every step of the way and made sure there were no issues with his financing. He was gone for several weeks prior to closing so we had to coordinate a day to "blue-tape" the condo. I did another walk just prior to closing to make sure he moved into a place that was clean and ready. I love being able to help someone find their first home and I wish Dave years of happiness and thank him for the opportunity to work as his agent.

Home prices jump 1.7% in January.

It might be too soon to call it a trend but even this modest increase in home prices might signal that we are turning around.

Click here to see the full story on the MSN Real Estate site.

Jumbo loan money might be more available.

The jumbo loan market will be getting more money at interest rates in the higher 5%, which will open up markets for those looking for loans between $700,000-1.5m.

Click here to see the Seattle Times real estate article.

Queen Anne High School Condo auction results-great discounts!

QA High School auctioned off the last remaining 12 units at an average discount of 31% off the asking price, which translated into a price per square foot of $344. The discounts ranged from 21-40% depending on the unit. I was told not many were in attendance and therefore few bidders to drive the prices up.

Some sales are on the rise, is recovery happening?

The road to recovery will come a little at a time. The first area to show the problems was the housing sector and in many areas it seems like the bottom is close if not there (no more free-falling!)

Click here to see the full article about the increase in big-ticket orders and the rise of home sales from The Washington Post.

Developer pays mortgage if you lose your job - great idea.

Developers of Thornton Place, the new community on the south side of Northgate Mall, are offering this incentive to get potential buyers who are concerned about job security. Thought I've not seen the condos yet I cannot comment on the price, finishes, floor plans, etc., but the idea is great on the surface.

Click here to see the full story.

It's a good time to be a first-time homebuyer.

First time homebuyers get to choose from plenty of properties on the market, take advantage of low interest rate and get up to $8,000 back as a tax credit.

Click here to see the full story.

Home Sales Up - Largest Jump in the US in 5.5 Years

One month does not a trend make but this was still exciting news. The lowered prices, amount of Foreclosures and Short Sales, lowered interest rates and the $8,000 tax credit all make the perfect storm for new Buyers. Half of all purchases were made by First-Time Buyers

Click here for the full story.

Population increases in Seattle/Tacoma by 46,000

Having jobs in an area attracts people, which in turn creates a need for housing, and those people feed the local economy. Seattle/Tacoma/Bellevue area increased their population by 46,000 residents; that's a good sign.

Click here for the full story.

New listing in Bellevue. $1,150,000.

Here is my latest listing. A beautiful home in Bellevue (Enatai), just south of Downtown Bellevue.

More people can afford to buy houses than ever before

The ability for the average household to afford to purchase the average house in Seattle got out of whack over the last few years. It's now getting back in check. Affordability hits a 40-year high. In King County the median home sold in February for $375k, the lowest since May 2005, but the average household income is $82,564 which exceeds the national average by 60%. With more product on the market, historically low interest rates and the $8,000 Buyer tax credit it is the time to buy if you want to in Seattle.

Check here to see the entire article.

And one more article on the same topic.

Worst hit areas in price declines leveling out

The Case-Shiller report says that some of the worst declining areas are starting to hit bottom. Seattle has started to accelerate but is still doing much better than other parts of the country. This report includes Tacoma to Everett in the price calculations for Seattle. Closer to downtown Seattle and downtown Bellevue are holding up much better than the outlying areas.

Click here to see the full story.

Seattle Among the Least Risky Cities for Home Buyers

The title sums it all up. Area stability is almost always anchored by employment, above-average wealth and education. With a diverse business base and an educated city we are sitting in pretty good shape.

To see the full article click here.

Myths that are just not true

On the Today show yesterday I watched Barbara Cochoran discuss the top 5 myths of Real Estate today. They are;

1. All Sellers are desperate. Not true. Only 10% really need to sell. Best thing is to find out the motivation of the Seller.
2. It's stupid to buy before hitting the bottom of the market. Not true. Don't try and time the market, you will miss it and the market reacts very quickly, leaving you in the dust.
3. You can't buy with less than 20% down. Not true. FHA has programs with as little as 3.5% down.
4. This is the worst time to sell. Not true. Depends on your area. Many of the hardest hit are coming back already.
5. Shop around for a lender for the best price. Not true. Go to your current lender to get the best price. They want to keep you as a valued customer.

To see full clip click here.

In the Seattle times today it was noted that home sales in the West, particularly fueled by metro areas in California, Nevada and Arizona, were up 36.4% December 2007 to December 2008. Those were some of the hardest hit areas in the country and they might have already hit bottom.

To see the full article click here.

Population of Seattle expected to increase, rated #6 in country

According to a new survey by Relocation.com more people are expected to move to Seattle than from Seattle. Seattle ranks #6 and Portland fairs better at #5. More people will create more demand on housing, which will be good for those selling their homes and for landlords.

Click to see the full article.

Time to buy or continue to rent?

It is a great time to be a Buyer in Seattle, but are you ready to be a Homeowner? If you want a home you can alter for fit you personal taste and plan on staying in the same place for several years it might be the right time for you to buy.

The attached link will help you decide if it makes more financial sense to buy or continue renting.

Click here for the online calculator.

On the site click "Buy vs. Rent". This will help calculate the real costs of renting vs. buying. If I can help in any way, please feel free to contact me.

Time to Refinance? 4 Homework Steps.

Interest rates are at incredible rates. If you have been in your home for several years or recently purchased with a large down payment it might be worth looking into a refi loan. The process is much more detailed but could potentially save you thousands of dollars. Here is a great article giving great points to ponder.

Click here to see the full story.

I'm more than happy to help you with any real estate related needs. Please feel free to contact me.

Median Home Prices Increase in Seattle

Though December home sales were down a little from last year (the freezing temperatures and snow didn't help) the median price home in King County increased by a couple of thousand dollars. Condos were down less than 1% from December 2007 sales.

Click here for the full story.

Interest Rates Historically Low - Great Time To Buy

Interest rates have been bobbling around 5% for the last week, which is historically low. A lender I work with just did a refinance loan for a client that had a lot of equity in their home; he got a 30-year fixed rate at 4.75% with no points. Just today rates dipped as low as 4.6%.

It is a GREAT time to refinance if you have a a lot of equity in your home, plan on staying in your home for a few more years and want to lower your monthly payments, refinance for a shorter-term loan or consolidate your debt.

It is a GREAT time to buy real estate if you are trying to buy up in this market.

It is a GREAT time to be a first-time Buyer with incredible rates. It is possible to get an FHA loan and you only have to put down 3.5%. This is a good option for those who want to buy but don't have a lot of money as a down payment. Buyers can get more for their money than every before, with low interest rates and lots of good properties on the market that are competitively priced.

Just years ago homeowners felt pretty good about having an interest rate in the 6-8% range.