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.