Agent Kip's Blog

Seattle is a "wealth island" with encouraging future expectations.

2011-10-26T08:10:00.000-07:00

A "wealth island" is a 24-hour a day city with a diverse job base and good potential growth prospects. Seattle will have a high demand for more apartment housing and the commercial growth prospects look good. Personally I've seen rent rates increase with low vacancies so am not surprised that the forecast looks good. Click here to read the entire article.

A tale of two real estate markets; the luxury market and the rest of us.

2011-09-21T09:02:00.001-07:00

Though it says the luxury market is going up and the rest of the market is going down it's not a complete picture. In Seattle the most desirable areas have low inventory and some homes are getting multiple offers. Just ask my clients who have been outbid on 2 homes already. Still, it's an interesting story. Click here to see the entire article.

The mortgage interest tax break is under scrutiny.

2011-09-14T09:21:00.000-07:00

There is a lot of talk about eliminating the tax break for mortgage interest deductions. This will certainly impact those who get the most benefit, namely the younger, higher-wage-earner homeowners who buy a more expensive home with a higher mortgage. I think eliminating this for 2nd/3rd and investment properties wouldn't be such a bad idea. It's funny in the article that all those quoted are getting this break currently. Click here to read the entire article.

King county sales up more than 30% but median prices hardly move.

2011-09-07T09:07:00.000-07:00

Single family home sales are up more than 30% August-over-August but the median prices remain flat. Eventually the increased sales will translate into higher prices. The slower luxury market (over $1m) has also kept the median prices down. Condos continue to struggle and now is a great time to get a good deal on a condo. Click here to see the full article.

Home prices up in the Seattle area for June 2011!

2011-09-06T09:03:00.000-07:00

Case-Shiller reported home prices up in the King/Snohomish/Pierce counties combined, which is fantastic news, especially considering the challenges the outer areas are facing with Short-Sales and Foreclosures. All but one of the 20 metro areas that Case-Shiller watches had increases in June. Click here for the entire article.

Walkability score for Seattle, how we compare.

2011-08-01T11:19:00.000-07:00

Seattle ranks #6 in "walkability" of the biggest 50 cities in the US. Our score is 74 while the US average is 43. Not too shabby. Click here to see the entire article.

Why it is a good time to buy.

2011-06-10T17:02:00.000-07:00

Here are some compelling reasons as stated in the Wall Street Journal. I also think that for lifestyle reasons it's a great time for some people to buy and still not good for others, despite any facts about what is happening in the market. Click here for the full Wall Street Journal article.

New Listing in Madison Park.

2011-06-08T11:45:00.000-07:00

Here is my new listing in Madison Park. It is TERRIBLY charming. Click here to enjoy the tour.

Good homes in short supply.

2011-06-08T11:09:00.001-07:00

I've been in multiple offer situations on the last 3 transactions I've had, two of them with Buyer clients and one was my own listing. With my Buyers one property had 6 offers, the other had 3. It's been tough if you are a qualified Buyer. The inventory of good quality, well-priced homes is in short supply. In general, if a home is in really good shape and in a highly desirable area if it is priced right it will sell within the first week or so of being on the market. After 3-4 weeks the price will need to be reduced to attract the right buyer, the one who feels the price is worth what they are buying.

Seattle area home prices have a slight uptick.

2011-06-01T08:45:00.000-07:00

Case-Shiller reports that the Seattle area (Tacoma to Everett and beyond) had a slight rise in home prices. A small increase is better than nothing...I'll take it any day. Click here for the full article.

CaseShiller showing a small decline in home pricing in the Seattle market.

2011-04-27T08:48:00.000-07:00

Though the decline is less than 2% the bummer is that it is still a decline. Further out the prices are being forced down by Foreclosures and Short-Sales but closer in the prices are much more stable. Click here for the entire article.

Case-Shiller report reflects Y/Y decline of 6% in the Tacoma to Everett area.

2011-03-30T08:56:00.000-07:00

It also says we are back to 2004 pricing but closer to Seattle it's not so bleak. Inventory of good, properly priced, homes is slim. We are seeing multiple offers in our office weekly and the overall mood of where we are headed is positive. Personally I'm busy right now with a hand full of good listings and a couple of active buyers. Click here to see the Seattle Times article about Seattle home prices.

Australian builder comes to Seattle area, plans to built 500 homes.

2011-03-23T09:23:00.000-07:00

This is great news for Seattle for multiple reasons; there is international confidence that Seattle has a good future plus it will give much needed jobs to those in the building industry. Click here to read the entire article.

February median home prices slip, mostly due to Short-Sales and Bank-Owned homes.

2011-03-04T17:21:00.000-08:00

In Seattle proper about 24% of all homes sold were either Short-Sales or Bank-Owned homes in the month of February. In southeast and southwest King County it was more like 54%, which is bringing down the median home price. Click here to see the entire article.

Ways to make your home more energy efficient.

2011-02-15T16:16:00.000-08:00

Making your home more energy efficient doesn't always mean spending a lot of money. In our house we have changed a lot of our lamps to compact fluorescent bulbs, which have pretty good light quality these days. Next on the list, but more expensive, is to replace our water heater with an on-demand water heater. I've only heard good things about this type of system. After that it's a new front-load washer and dryer. Click here for a great website to give you some ideas on what you can do to make your home more energy efficient.

Home values drops don't always equal lower taxes.

2011-02-11T17:39:00.000-08:00

Though home values have been dropping in Seattle there are some areas where property taxes continue to rise. That's because there are levies and bonds that are adjusting every year. Click here to read the entire Seattle Times article.

Update on the last post.

2011-02-11T17:37:00.001-08:00

The Seattle Times should have said that in was about 1/3 of the homes that HAVE a mortgage on them, not 1/3 of all homeowners. That's a big difference.

One-third of homes owe more than the current value around the Seattle area.

2011-02-09T09:45:00.000-08:00

Zillow claims that 1/3 of all homes in King, Snohomish and Pierce counties owe more than their house is worth. They state prices are back to summer 2004 prices. I think owners who have taken equity loans could be in serious trouble. Lesson learned; never use your home as a bank to borrow against it. Those who are "under water" pose a serious risk on the entire economy. Click here to see the entire article.

Rents are going up. Sorry renters, it's all about supply and demand and it will take a while to get more apartments built to handle the demand.

2011-01-11T15:48:00.001-08:00

Rents are going up. Click here to read about some of the latest examples of these increases.

December house sales up in Seattle.

2011-01-10T10:50:00.000-08:00

Sales went up but prices went down slightly. That might be the trend for a couple of months. After that I predict sales and prices to both go up steadily hand-in-hand. Click here to see the entire article about increased home sales.

Bellevue Towers goes back to the bank.

2011-01-04T13:26:00.000-08:00

With only about 20% of the units sold in the last 2 years the Bellevue Towers goes back to the bank. Expect reductions of prices of around 20% to get sales moving. The condo market continues to take a beating in this market. Click here for the entire article in Seattle Times concerning Bellevue Towers.

Construction in Seattle for 2011, Apartments!

2011-01-03T10:12:00.000-08:00

Though residential and office builders are nervous about breaking ground on new projects one area that is forging ahead is construction of new apartments. A predicted influx of 20-somethings into Seattle over the next few years creates a market for more renters. That's good news for everyone. I predict that many of those who come to Seattle will decide to stay and eventually buy a home or condo. Click here for the entire article found in the Seattle Times.

Home prices stay flat after several months of increases according to Seattle Times & Case Shiller

2010-09-01T11:45:00.001-07:00

We saw some gains over the last few months but May to June was flat. Let's hope next month shows gains again. Click here to see the full article.

Sales down in July but median price is up.

2010-08-06T08:50:00.000-07:00

Seattle Times reports July activity in homes sales. Fewer first-time and lower-end buyers enter the market while some higher-end activity causes the median price to go up. I've felt a sharp drop in current activity myself. Interest rates are still great which I hope leads to renewed interest in buying. Click here to see the entire Seattle Times article.

Interest rates not this low since the mid-50's.

2010-06-30T08:57:00.000-07:00

I keep telling everyone I talk to that interest rates are crazy low. I think that some of my clients just don't understand how good those rates really are. I remember in the 70's that rates were well north of 10% so today's rates that are south of 5% are fantastic. Take advantage of it while you can!

Click here to see the Associated Press article on mortgage rates.

Home prices inch up in Seattle, still down year-over-year according to the Case-Shiller report.

2010-06-30T08:51:00.000-07:00

So the good news is that the Seattle area (Everett to Tacoma) home prices are up by 1% from last month. The bad news is that it is still down 2.9% from April 2009 to April 2010. The good news is that the area surveyed is pretty large and includes a lot of the Short-Sale and Foreclosure properties all around the Seattle area, so to include those and still have a gain is pretty good. The bad news is that there are still more Short-Sales and Foreclosed properties to hit the market. The good news is that if you are a buyer you can still take advantage of very good interest rates.

I think I'll end this on a good note.

Click here to see the entire article on Seattle area home price increases and the Case-Shiller report.

Case-Shiller for Seattle area down slightly 2nd month in a row.

2010-03-31T09:41:00.000-07:00

I recently wrote that a trend might have started after seeing the Case-Shiller results improve for Seattle for 2 months in a row. Well, now it is slightly down for the second month in a row. The good news is that the year-over-year decreases are less than 1% so we are just hovering around a "flat-line", and I don't mean that we are dead, just that it's not dropped in free fall. Nationally the reports says 12 of the 20 areas watched have continued to see improvements. Click here to read the entire Seattle Times article on the Case-Shiller results for Seattle.

Foreclosure filings drop 13% in WA and 33% in King County though nationally it is up 6%.

2010-03-11T10:37:00.000-08:00

WA ranks 33rd in the country for foreclosure activity and has posted some very impressive drops in foreclosure filings over the last couple of months. Our area might be stabilizing quickly. Click here to see the entire Seattle Times/ Associated Press article on the reduction of foreclosures.

WA top state to expect job growth in 2010 according to the Seattle Times.

2010-03-10T08:35:00.000-08:00

Seattle has seen temporary positions being filled, which usually leads to job growth as business leaders gain more confidence that we are in recovery mode. Job growth equals more housing needs and more housing needs leads to a strengthening of the real estate market. Click here to read the entire Seattle Times article on job growth in Seattle.

New federal program to help "short-sale" sellers-pay them to sell.

2010-03-08T12:12:00.000-08:00

It might sound crazy but the Federal Government is trying to help the country get through the housing mess. They plan to pay a sum of $1,500 to a seller to help them get their house sold while forgiving the dept (I'm very skeptical that banks will actually forgive the debt 100%) so the house will not sit vacant and potentially get ransacked, thus lowering the value of that home and those in the area as well. The government should push banks to quicken the short-sale process so buyers will be encouraged to buy these properties and get more inventory off the market. Click here to see the entire Seattle Times/The New York Times article on the federal plan.

Home prices are up both nationally and in Seattle according to the Case-Shiller report.

2010-02-24T08:53:00.001-08:00

OK, for 3 months in a row the prices in the Seattle market of the Case-Shiller report (King/Pierce/Snohomish Counties) have risen. It's starting to look like a trend. Conversely, sales of new homes are down in January so there is still some conflicting information. Click here to see the entire Seattle Times article on the price increases of the Case-Shiller report for Seattle.

Ruby Condos; nice finishes and views of Lake Union.

2010-02-16T09:15:00.000-08:00

I toured Ruby Condos yesterday (http://www.rubycondos.com/) and was impressed by their finished product. Nice use of interior materials and the floor plans were open and very bright. I was concerned that I-5 might be loud but was also surprised that you couldn't hear much of it. The location is good and even some of the 1st level condos have some water views.

Annual Seattle Real Estate wrap up; a few bright spots as viewed in the Seattle Times.

2010-02-08T17:05:00.001-08:00

The number of sales were up and the prices were down. Interest rates at record lows and a lot of great product on the market. Though prices were down 16.5% from the 2007 peak they are still up $100,000 from 2002. Click here to read the story and see the nice graphic of this information found in the Seattle Times.

Another positive sign, home prices in Seattle are up this January compared to January 2009.

2010-02-05T16:00:00.001-08:00

The number of pending sales are also up. Now this is the second article that reflects a rise in home prices in Seattle; one survey said they were up slightly for the last two months and this article says it is up Y/Y. Click here to see the Seattle Times article about Seattle home price increases.

List of cities where you should buy...now. Variance between rental rates and home prices are the lowest in 15 years.

2010-02-03T14:45:00.001-08:00

Markets are always changing and some markets are ripe right now to purchase a home. Click here to read the entire MSN.com article on where to buy.

Home prices up for 2nd month in Seattle, the bottom might be behind us according to the Case-Shiller report in this Seattle Times article.

2010-01-27T10:04:00.001-08:00

OK, there are 2 stories in this article, the last more interesting (and important) than the first in my opinion. The first article tells why more home offers fell through in 2009 than in the past (short-sales and impatient buyers, in a nut-shell). The second article says that area home prices (King/Pierce/Snohomish counties) are up for a second month in a row. This might be a trend and the bottom might have come and gone. Click here to read both articles in this Seattle Times article on home sales.

Home sales up in 2009 over 2008, but not by much according to this Seattle Times article.

2010-01-26T15:01:00.000-08:00

Anything is better than nothing, right? I do believe so. Since last June the number of year-0ver-year sales has increased leading to a year-end total of more sales than in 2008. Condos didn't fare as well. Click here to read the entire article from the Seattle Times on the increase of home sales in 2009.

Cash is king when buying Real Estate. Jump in home purchases with cash in Seattle Times article.

2010-01-25T10:15:00.000-08:00

I knew this was coming, that cash buyers would be able to get some great deals and wouldn't have to worry about any financing concerns. Cash sales for all of last year averaged @8%, up from 7% during 2008. December 2009 jumped to 22%. It will be interesting to see what January brings, more of the same? You would think that all cash deals would also reflect great discounts but not true in Seattle, discounts hovered @10%. Click here to read the entire Seattle Times article on cash only offers.

Interest rates will go up, but probably only to @ 6% according to this Seattle Times article.

2010-01-05T17:50:00.000-08:00

Rates have been historically but that was only because of government backed securities. With the Fed winding down that program rates will go up. Even 6% is still a great rate, just not as good as 5%. If you are thinking of buying, now is the time... Click here to see the entire Seattle Times article on interest rates.

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

2009-12-30T17:15:00.000-08:00

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.

2009-12-30T09:52:00.000-08:00

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.

2009-12-16T13:15:00.000-08:00

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.

2009-12-04T17:16:00.001-08:00

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.

2009-12-02T17:38:00.000-08:00

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.

2009-11-24T11:36:00.001-08:00

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.

2009-11-14T11:59:00.000-08:00

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.

2009-11-06T12:16:00.000-08:00

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.

2009-10-19T16:53:00.001-07:00

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.

2009-10-19T16:25:00.000-07:00

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.

2009-09-20T10:49:00.001-07:00

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.

2009-09-15T15:30:00.000-07:00

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.

2009-09-14T10:32:00.000-07:00

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.

2009-09-05T08:45:00.000-07:00

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.

2009-09-05T08:37:00.000-07:00

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.

2009-09-04T15:23:00.000-07:00

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.

2009-09-02T10:02:00.000-07:00

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.

2009-08-26T09:06:00.000-07:00

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.

2009-08-21T09:57:00.000-07:00

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.

2009-08-19T18:02:00.001-07:00

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?

2009-08-13T13:48:00.000-07:00

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.

2009-08-09T20:51:00.000-07:00

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.

2009-08-06T11:52:00.000-07:00

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.

2009-08-05T15:18:00.000-07:00

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.

2009-08-04T08:08:00.000-07:00

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.

2009-08-02T05:50:00.000-07:00

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.

2009-07-30T10:52:00.000-07:00

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%.

2009-07-29T08:32:00.000-07:00

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.

2009-07-28T10:05:00.000-07:00

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.

2009-07-28T09:53:00.000-07:00

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?

2009-07-28T09:43:00.000-07:00

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.

2009-07-28T09:36:00.000-07:00

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.

2009-07-25T06:25:00.000-07:00

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.

2009-07-24T08:58:00.000-07:00

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.

2009-07-24T08:43:00.000-07:00

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.

2009-07-21T16:53:00.000-07:00

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.

2009-07-14T08:06:00.000-07:00

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!

2009-07-07T09:46:00.000-07:00

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.

2009-07-01T13:57:00.000-07:00

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.

2009-06-30T15:18:00.000-07:00

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.

2009-06-29T08:43:00.000-07:00

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.

2009-06-27T17:16:00.000-07:00

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.

2009-06-24T16:47:00.000-07:00

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.

2009-06-24T09:54:00.000-07:00

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.

2009-06-21T10:07:00.000-07:00

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.

2009-06-20T16:30:00.000-07:00

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.

2009-06-19T07:53:00.000-07:00

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.

2009-06-13T12:49:00.000-07:00

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.

2009-06-11T12:17:00.000-07:00

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.

2009-06-11T12:05:00.000-07:00

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.

2009-06-09T17:13:00.000-07:00

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.

2009-06-09T16:57:00.001-07:00

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.

2009-06-06T14:05:00.000-07:00

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.

2009-06-05T08:27:00.000-07:00

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.

2009-06-02T16:49:00.000-07:00

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.

2009-05-31T11:46:00.000-07:00

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.

2009-05-31T11:37:00.000-07:00

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.

2009-05-29T12:36:00.001-07:00

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.

2009-05-28T09:13:00.000-07:00

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.

2009-05-28T09:03:00.000-07:00

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.

2009-05-27T18:08:00.000-07:00

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.