Home sales jump in October, beating expectations

By Alan Zibel
AP Real Estate Writer
November 23, 2009

WASHINGTON — Home sales surged for the second month in a row in October, climbing to the highest level in 2½ years as first-time buyers rushed to take advantage of an expiring tax credit.

Home sales nationwide are now up nearly 37% from their bottom in January, data Monday showed, though they are still 16% below the peak in autumn 2005. At the current sales pace, there is only a 7-month supply of homes on the market and in some areas there are bidding wars.

Joey Wilson, 53, and her husband made unsuccessful offers on 20 Las Vegas homes since midsummer before closing on a four-bedroom, $136,000 home this month.

It's insane," said Wilson, who relocated from Kentucky. "I've never seen a market like this before."

The National Association of Realtors said home resales rose 10.1% to a seasonally adjusted annual rate of 6.1 million in October, from a downwardly revised pace of 5.54 million in September. It was the biggest monthly increase in a decade, and far above the 5.65 million pace expected by economists, according to Thomson Reuters.

The Northeast saw a large increase in home sales. The nine-state region registered 85,000 home resales last month, up 25% from a year ago when the financial crisis gripped the country. The median price, however, fell about 3% to $235,400.

The recovery is being driven by lower prices combined with federal programs to lower mortgage rates and bring more buyers into the market. The median sales price was $173,100, down 7% from a year earlier and off roughly 2% from September.

Many experts predict prices will hit a new low next spring, perhaps falling another 5% to 10%, as more foreclosures get pushed onto the market.

The government has tried to counter that trend by offering a tax incentive for first-time buyers and by keeping mortgage rates around 5% since the spring.

The tax credit of up to $8,000 for first-time owners was originally set to run out on Nov. 30, but Congress renewed it earlier this month and broadened its reach. People who have owned their current homes for at least five years can now claim a tax credit of up to $6,500 for a home purchase. To qualify, buyers must sign a purchase agreement by April 30.

The Realtors' report on October home sales reflects offers made before buyers knew the tax credit would be extended.

"The incentives really did get people to go out and buy," said Wells Fargo economist Adam York. "The question is: What does the trend look like when the credit is over with?"

Home sales are likely to drop over the winter as buyers hibernate for a few months without the looming tax credit deadline.

The new deadline means "we're going to see some good activity coming out of the spring," said Pat Lashinsky, chief executive of online real estate brokerage Zip Realty.

But the government support can't last forever. For example, the Federal Reserve is likely to curtail its effort to push down mortgage rates next year. If rates then rise too high, it would make home purchases less affordable and dampen housing demand.

"When we do kick those crutches out from under the housing market, will it be able to stand on its own?" said Mark Fleming, chief economist with real estate information company First American CoreLogic. "It's really hard to tell."

For link to article, visit http://www.usatoday.com/money/economy/2009-11-23-existing-home-sales-oct_N.htm

Tacoma's Esplanade condos back on market

Less than three months after foreclosure sale of building, condos generate some interest

By John Gillie
The News Tribune
November 14, 2009

The housing bust’s most visible Tacoma casualty, a nine-story, 162-unit waterfront condominium, has quietly been put back on the market.

The Esplanade, a building whose size and timing doomed it to financial peril, is being shown to buyers who previously had shown strong interest in purchasing a condo unit. The resumption of the sales market comes less than three months after the building was sold at a foreclosure auction on the Pierce County courthouse plaza.

The building’s financing bank bought the structure in foreclosure when the only other bidder stopped at $6.1 million, less than 15 percent of the $48 million the bank had lent on the structure.

The building’s original developer, Mark Ossola, who now works for the bank that financed the $80 million building at 1515 Dock St., said he’s optimistic the building will sell out within 12 to 18 months. The new building owner, IStar Financial, counts 10 prospects who have made commitments to buy in recent days.

The crucial difference between now and when he owned the building is the availability of ready financing for potential buyers, Ossola said.

Met Life has agreed to provide financing for qualified prospective buyers, and the Federal Housing Administration has agreed to begin offering financing guarantees once the building is 30 percent sold. That’s down from the traditional 50 percent requirement for FHA loans.

Judy Mayfield, a real estate agent who marketed the building from early 2007 through last June, said she had signed purchase and sale agreements with 119 buyers, but the collapse of the housing market made completing those deals almost impossible. Before the building went into foreclosure, only 10 units sold.

Once the housing market softened, she said, banks were unwilling to finance individual condo buyers because the building had made too few sales. But without banks’ willingness to take a risk that the building would sell up, the building didn’t.

An additional complicating factor was that potential buyers were unable to sell their existing homes without wholesale price discounts after the housing market went comatose.

The bank is reducing prices for the units, another factor that is bringing potential buyers back, Ossola said. He declined to say how much the prices are being cut. The units are not yet officially listed on multiple listing sites.

“We’re doing a kind of soft reopening now,” Ossola said. “Once we get past the holidays, we expect we’ll start a big sales campaign.”

Real estate sales people say they expect the price reductions will have to be substantial to spur new interest.

When she was selling the units, list prices ranged from $278,000 for a smaller unit to $989,000 for a penthouse, said Mayfield, though buyers did negotiate some lower.

Mayfield said she has no inside knowledge about the new pricing, though she wouldn’t be surprised if asking prices were 20 percent to 30 percent off previous list prices.

“That’s not a reflection on the building. It’s an excellent building. It’s just the market,” she said.

Seventeen unsold units at the Marcato, another downtown Tacoma condo, recently sold at auction for an average of 55 percent of their original asking prices. That building, though a quality structure, didn’t have the waterfront views that make the Esplanade especially attractive.

Ossola said he’ll likely seek a zoning change to allow the use of some of the building’s ground-floor commercial space for offices. Present zoning allows only retail and restaurant operations.

The four corner commercial spaces likely will still be reserved for restaurant use, Ossola said, but other spaces could become professional offices. The building had seen considerable interest from lawyers, doctors and accountants to rent some of the waterfront commercial spaces, but the zoning forbade it, he said.

Several restaurants had expressed interest in the waterfront commercial units, but they remained hesitant to commit until more people live in the building.

“It’s a numbers game. When we have more people living down here, I think we’ll see more restaurants,” he said.

Ossola said the building was a victim of bad timing.

“Had we got it on the market a year earlier, I think it would be sold out now,” he said.

For link to article, visit http://www.thenewstribune.com/business/story/954133.html?pageNum=1&&mi_pluck_action=page_nav#Comments_Container

Tax credit brings house buyers out in October in King, Snohomish counties

The federal tax credit for first-time homebuyers pushed sales in the Seattle area to new highs for the year in October.

By Eric Pryne
Seattle Times business reporter
November 6, 2009

Give credit to the credit.

Home sales in the Seattle area reached new highs for the year in October, a burst real-estate professionals attributed in large part to the $8,000 federal tax credit for first-time buyers.

p>In King County, closed sales of single-family homes were up 33 percent from last October, the Northwest Multiple Listing Service said in a report released Thursday.

In Snohomish County the bump was even more dramatic: 42 percent.

Even condos finally came to the party. Closed sales in King County last month were up 18 percent, the first year-over-year increase since July 2007.

But at least some buyers were rushing to meet a deadline: The credit was due to expire Nov. 30. Congress this week approved legislation that extends it by seven months.

Will that turn down the heat for the next few months?

"It could be the catalyst that kills the buzz, because people have more time," said Dean Jones, president of the condo-marketing firm Realogics in Seattle.

Or it could push sales to new heights, he added: The bill establishes a new, $6,500 credit for many buyers who aren't first-timers. "It's too early to tell."

While more houses were sold in King County in October than in any month since August 2007, prices continued to slip. The median price of a single-family home that closed last month was $377,500, down from $392,000 in October 2008.

But the year-over-year decline — 3.7 percent — was the smallest in a year.

The median price of King County condos was down 8.7 percent, to $251,000. The median house price in Snohomish County slid 12.2 percent, to $292,725.

October marked the fifth straight month of year-over-year increases in house sales in King County.

A breakdown of the numbers reveals some surprises.

• Sales were up a whopping 54 percent on the Eastside — the county's most expensive area — and nearly 40 percent in Seattle.

• Sales declined in Auburn, Federal Way, Des Moines, Burien and SeaTac — all among the county's most affordable cities, places to which you'd think many first-time buyers would gravitate.

"I wish I had an answer for that," said Barry Crittenden, broker in Windermere Real Estate's Burien office. "I've been puzzling over that myself."

Perhaps, he said, lower prices and the first-time buyers' tax credit are allowing budget-conscious buyers to consider neighborhoods that are "a little more upscale."

On the Eastside, the tax credit has helped spur sales in neighborhoods south of Interstate 90, said Thadine Bak, broker in Windermere's Bellevue South office.

It also has created what she called "trickle-up" buyers: Homeowners looking for new, often more expensive homes once they sell their houses to first-timers. There has been a burst of interest recently in houses in South Bellevue in the $600,000-$700,000 price range, Bak said.

Eastside sales increased partly because sellers are getting more realistic in pricing their homes, said Mona Spencer, broker in John L. Scott's Redmond office: "They're finally getting it."

But the impact of the federal tax credit can't be understated, she added: "It gives [buyers] an incentive to go out and look."

Same goes for condos, said Jones, of the condo-marketing firm: "It's what's getting them off the fence."

The median condo sale price in Seattle actually was up 4.4 percent in October from the same month last year, hitting an even $300,000. The biggest increases came on Queen Anne and Capitol Hill.

But Jones and Ben Kakimoto, a condo specialist for John L. Scott, said sales in some new condo buildings aren't included in the listing-service statistics because developers market units directly.

If sales in those buildings had been included, Kakimoto said, the median October condo sales price would have been even higher.

For link to article, visit http://seattletimes.nwsource.com/html/realestate/2010212918_homesales06.html

Home sales rise 9.4 pct in Sept., beats forecast

Home resales in September clocked the largest monthly increase in 26 years as buyers scrambled to complete their purchases before a tax credit for first-time owners expires.

By Alan Zibel
AP Real Estate Writer
October 23, 2009

WASHINGTON — Home resales in September clocked the largest monthly increase in 26 years as buyers scrambled to complete their purchases before a tax credit for first-time owners expires.

Sales jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million last month, from a downwardly revised pace of 5.1 million in August, the National Association of Realtors said Friday.

That pace was the strongest in two years and beat Wall Street forecasts. Sales had been expected to rise to an annual rate of 5.35 million, according to economists surveyed by Thomson Reuters.

"There's a mini-boom going on in the housing market," said Thomas Popik, who conducts a monthly survey of real estate agents for Campbell Communications, a research firm.

Nationwide sales are up nearly 24 percent from their bottom in January, but are still down 23 percent from four years ago.

Prices, however, continued to be dragged down by foreclosures and short sales, where the mortgage exceeds the sales price. The median price last month was $174,900, down almost 9 percent from $191,200 a year earlier, and slightly lower than August's median of $177,300.

The inventory of unsold homes on the market fell about 7 percent to 3.63 million. That's less than an eight-month supply at the current sales pace, and the lowest level since March 2007.

Sales rose around the country, especially in the West, where they grew 13 percent from a month earlier. Foreclosure sales are booming in cities like Los Angeles, San Diego and Las Vegas.

First-time homebuyers and investors are snapping up those homes and taking advantage of low mortgage rates. These buyers can also take advantage of a tax credit of 10 percent of the sales price, up to $8,000, if the sale is completed by the end of November.

The tax credit is so important to some buyers that they are adding a clause to their contracts, allowing them to back out if the sale doesn't close by Nov. 30. However, economists note that bargain-priced foreclosures and low mortgage rates are making a big contribution to the sales boom.

"We think the housing market has touched bottom and it is now only a matter of time until home prices stabilize - something that we anticipate to occur in late 2010," wrote Joseph LaVorgna, chief U.S. economist at Deutsche Bank.

Prices could fall further because rising unemployment leads to more foreclosures. The jobless rate, currently at 9.8 percent is expected to rise as high as 10.5 percent next year, causing more people to fall behind on their mortgages.

"There's more supply that's going to come into the marketplace," said Stan Humphries, chief economist at real estate Web site Zillow.com. "That additional supply will outpace demand."

With concerns about the housing market still prominent, Congress is considering several proposals to extend the tax credit for first-time buyers. Senators Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn., want to extend it through June 30, and expand it to include all home buyers, at an estimated cost of $16.7 billion.

Realtors and homebuilders are loudly in favor, arguing that the tax credit is crucial to get the housing market back on its feet.

"We are not there in terms of removing the consumer fear factor," said Lawrence Yun, the Realtors' chief economist.

However, some analysts say the tax credit may not be as critical to the housing market as real estate agents suggest. "The group has an incentive to talk up the effects of the credit as it is urging Congress to extend it, and it therefore may be exaggerating the credit's effects," wrote David Resler, chief economist with Nomura Securities.

One potential roadblock to an extension also emerged this week. There are concerns that some of the 1.5 million applications for the tax credit are fraudulent.

At a hearing on Thursday the Treasury Department's inspector general for taxes questioned the legitimacy of some 100,000 claims for the credit, potentially including some illegal immigrants and 580 people under 18. The youngest taxpayers to apply for the credit were 4 years old.

For link to article, visit http://seattletimes.nwsource.com/html/businesstechnology/2010121720_apushomesales.html

Is real estate rebounding? Agents see positive signs, developers holding on

By Joshua Adam Hicks
Bellevue Reporter Staff Writer
October 19, 2009

You know the housing market is in flux when September beats April in home sales.

Real estate appears to be rebounding after an abysmal dip – one that turned into a ride for the ages and ultimately punished undisciplined buyers and lenders.

"This has been the whackiest year ever in real estate," said Anna Riley, a Windermere agent who specializes in West Bellevue homes. "Housing was at ground zero of the whole national debacle with the financial crisis."

What Riley saw in the past was an overheated market in which demand was so high that buyers were ready to close on homes without having them inspected.

"Prices were just ridiculous," she said. "If you were a buyer, it was unpleasant."

Even novice agents were making money hand over fist in those days, but Riley says she could sense an untenable situation.

"Nobody wants to walk on slipping sand, and unbalanced markets are like that," she said.

And so the market had to correct itself. But first it went from one bad extreme to another, with home sales hitting rock bottom around February.

What Riley sees now, or at least in the past 90 days, is a return to normalcy as housing demand has started to bounce back.

The agent website TrendGraphix.com shows a six-month inventory for West Bellevue homes listed under $1.5 million. There was a 22-month supply in that range during the worst of the recession.

"It's a perfect balance," Riley said. "It's a very good, healthy, dynamic market."

Kathy Estey, a managing broker for John L. Scott Real Estate, agrees. She says the market is trending in an unmistakably positive direction.

"Everything seems to be improving from a numbers standpoint," she said.

But there's still some disparity in just how balanced the markets have become. Some are leveling off more than others.

"I would say confidence levels are up across all price ranges, but not all have seen the same level of activity," Riley said. For homes between $1.5-$2 million, there was a 16-month supply on the market in September, according to TrendGraphix.com. That's high, but it's still better than the 29-month inventory that was hanging around for that price range last November.

Riley credits the market resurgence to three things: prices, which have dipped more than 10 percent at times; interest rates, which are at 40-year lows; and the stock market, which is boosting consumer confidence as it reaches its highest points since the start of the recession over a year ago.

Riley says it also doesn't hurt that The Shops at the Bravern opened in September, adding a luxury shopping venue to Bellevue's already burgeoning downtown.

"It's just a more interesting place to be," Riley said. "People who wouldn't have been willing to move from Seattle are coming here now."

Jim Cronkhite hopes that growing downtown allure will pay off for his Continental Condominiums, a former apartment complex located just behind Bellevue Square on 100th Avenue Northeast.

Cronkhite purchased his building in September 2007, when the market was still burning hot. It was too late to turn back once the financial crisis hit.

"You can't afford to buy it and hold it," he said. "You have to develop it."

Cronkhite converted his building into 39 condo units, each of which ranges in price from $250,000 to $500,000. He said he's seeing around 30 registrations per week for viewings.

"It's a tough market out there, but it's starting to firm up," he said. "I think people have gotten past the panic stage."

For link to article including photos, visit http://www.pnwlocalnews.com/east_king/bel/business/64848972.html

Washington Report: $8,000 Home Buyer Tax Credit

By Kenneth R. Harney
Realty Times
October 12, 2009

Quick passage by the House last week of a bill extending the $8,000 home buyer tax credit next year for military, diplomatic and intelligence personnel serving overseas increases the odds that Congress will agree to an extension, maybe even an expansion, of the entire credit program well into 2010.

The White House is also signaling that it sees the overall tax credit program -- currently set to expire November 30 -- as an important element in cutting the unemployment rolls and stimulating new jobs next year.

After an economic policy strategy meeting last week in the Oval Office involving President Obama, House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, congressional aides said Democrats generally support an extension of the housing credit.

Reid already has made clear he wants an extension. He is co-sponsoring a Senate bill that would do so for six months.

Congressman Charles Rangel, chairman of the tax-writing House Ways and Means Committee, sponsored the one-year extension of the credit for military and other personnel serving overseas, and is reported by aides as favoring an extension for the entire program.

The White House has not publicly committed to an extension, but has confirmed that the President is seriously examining that option.

An unexpected development that emerged following last week's White House meeting was the possibility of opening up the credit to a broader group of buyers next year - people who sell their current homes and buy a replacement home.

Though details were scanty, Capitol Hill sources said one option on the table would be to provide a tax credit -- most likely at the $8,000 level -- to replacement home buyers whose incomes do not exceed some limit.

The current credit phases out for single taxpayers with incomes above $75,000, and married purchasers earning $150,000.

A politically sensitive issue hovering over the entire debate on extending the housing tax credit is its cost - what it would add to the federal budgetary deficit. Mark Zandi, chief economist of Moody's Economy.com, estimates that widening the credit to all buyers through next August could cost the government upwards of $30 billion.

Rangel's 12-month extension of the credit for service personnel is estimated to cost more than $300 million, but it's mainly being paid for through an increase in penalties levied by the IRS on taxpayers who fail to file corporate or partnership returns.

The New York Times reported that one possible solution to the cost problem would be to divert money not yet spent out of 2009's $800 billion stimulus legislation.

For link to article, please visit http://realtytimes.com/rtpages/20091012_washingtonreport.htm

Garage Plus Storage GROUNDBREAKING this Friday 10:30am!

Spanaway, WA - In what has been hailed as an innovative use of land and recognized as the first of its kind in Pierce County, Garage Plus Storage has broken ground on a $52.5 million active use storage development in Spanaway. In is estimated that the project will provide over 150 construction jobs involving 40 separate area sub-contractors under the direction of BNR Development. With the recently reported unemployment rate at 9.2 percent in August for Pierce County, this project couldn't come at a better time. Construction on this 21 acre site will span nearly four years and result in 650 individually owned garage/storage units and an owner club house. Land preparation began last week with full scale construction to be underway by late October.

This is the first Active Use Permit that Pierce County has ever issued. "It is critical to recognize the significance of this type of permit," said Bill Donahoe of Solution Partners NW. "This unique concept will allow owner's unlimited access to their garage unit allowing the hobbyist or collector to actively work on their projects at their leisure." Other facilities that either rent or sell their units limit access of the user because by law users cannot actively work on their projects. Garage Plus Storage offers the only opportunity to own a garage/storage unit where hobbyist, collectors and small business owners may fully utilize their space.

"With occupancy at storage facilities running over 95% capacity in the country, the need is here... what we're offering our clientele is the opportunity to own their own unit, come and go as they please and build their own equity, not someone else's," said Dan Simon owner of Garage Plus Storage. "We have car collectors, woodworkers, boat enthusiasts, photographers, RV owners, landscapers, motorcyclists... you name it."

With the ground breaking ceremony scheduled for 10:30am on October 16th and full construction underway by the end of the month, this winter and the coming years just got a little brighter for 40 area contractors and their subsequent 300 employees and families.

For more information on Garage Plus Storage, visit www.garageplusstorage.com or call 877-875-PLUS.

Quote of the Day

In the middle of every difficulty lies opportunity. -Albert Einstein

Celebrate at Cascara in Redmond!

October 10, 2009
Fall Open House 1 - 4pm

• Patio homes from the low $200*
• Available to active adult families and individuals
• Step out your front door to local shopping, parks and the Golf Club at Redmond Ridge

425.367.4763
23906 NE 113th Lane
Redmond Ridge

QuadrantHomes.com/Cascara

Meet the Team! Come say Hi to Garrett & Kathy!

© Quadrant Homes 9/18/09. QUADRANT HOMES is a registered trademark of Quadrant Corporation. MORE HOUSE. LESS MONEY. is a registered trademark. *Cascara at the Villages Homes available only to income-qualified, active adult individuals and families. Qualification depends on income, size of homes and ages of occupants. Consult a Community Sales Manager for details. Prices and availability subject to change without notice.

Quote of the Day

Finite to fail, but infinite to venture. -Emily Dickinson

Home sales in September surge in King County but prices still declining

Home sales in King County continued their summer-long surge in September, while prices showed possible signs of stabilizing, according to statistics released today by the Northwest Multiple Listing Service.

By Eric Pryne
Seattle Times business reporter
October 5, 2009

Home sales in King County continued their summer-long surge in September, while prices showed possible signs of stabilizing, according to statistics released today by the Northwest Multiple Listing Service.

Countywide, buyers closed on 1,618 houses last month, a 14.3 percent increase from September 2008. It was the fourth consecutive month of year-over-year increases, a trend brokers and agents attribute partly to the $8,000 federal tax credit for first-time buyers.

The median price of houses sold in September — $382,160 — was down 7.9 percent from the same month last year. But the year-over-year decline was the smallest since December — in every other month this year, it has hit double digits, topping out at 17.3 percent in March.

More than 1,600 single-family homes have sold in the county in every month since June, a benchmark last surpassed in October 2007, when the real-estate downturn was just beginning.

"Our market has certainly come a long way since this time last year," Ron Sparks, managing vice president of Coldwell Banker Bain's Bellevue office, said in a prepared statement.

Condo sales in King County were down 12.9 percent from September 2008, and the median price of $245,000 was 9.9 percent lower.

In Snohomish County, closed single-family home sales were up 12.8 percent year-over-year, while the median sale price was $295,000, down 11.1 percent from September 2008

For link to article, visit http://seattletimes.nwsource.com/html/businesstechnology/2010005079_webhomesales05.html#

10 Hard-Hit Housing Markets That Are Ready to Rebound - Tacoma!

After slumping, home prices in these 10 cities are expected to rise over the next three to five years

As the historic housing crash continues to hammer real estate prices from coast to coast, many homeowners probably can't remember the last time their property's value actually increased. But even with home prices still falling at the national level, a number of hard-hit housing markets are gearing up for a rebound.

To pinpoint the cities most likely to go from slump to bump, we turned to Moody's Economy.com. Using S&P/Case-Shiller home price data, Moody's identified a handful of cities that took it on the chin during the crash-with property values dropping by more than 25 percent from peak to projected trough--but are expected to see strong home price appreciation in the relatively near future.

Celia Chen, the senior director of housing economics at Moody's Economy.com, says home prices in many of these slump-to-bump cities became overvalued during the first half of the decade but have since fallen, or are in the process of falling, to extremely affordable levels. "That will encourage buyers back into the market and lift prices up," she says. Here is a look at 10 hard-hit housing markets that are ready for a rebound:

1. Tacoma, Wash.: With about 200,000 residents, Tacoma is the second-largest city in Washington's lovely Puget Sound region. The city's abundance of government jobs, bountiful outdoor activities, and proximity to Seattle--just 32 miles away--helped drive home prices higher during the first half of the decade. But as the national housing crash picked up steam, Tacoma saw its real estate market decline sharply. Home prices in Tacoma dropped 24 percent from their peaks through the first quarter of 2009. Still, Moody's Economy.com expects the market to bounce back strongly, with home prices increasing 22 percent by the first quarter of 2012 and 41 percent by the first quarter of 2014. David Graybill, president and chief executive of the Tacoma-Pierce County Chamber of Commerce, says the area's large military presence and diversified economy will help to support rising home prices going forward. "We also have one of the nation's busiest ports, the Port of Tacoma, which is an international deep-water port," Graybill says. "And although most international trade is down currently, the long-term outlook is good."

For complete article, visit http://realestate.yahoo.com/promo/10-hard-hit-housing-markets-that-are-readytorebound.html;_ylc=X3oDMTFvcmJ1a2xuBF9TAzI3MTYxNDkEX3MDOTc2MjA0NjUEc2VjA2ZwLXRvZGF5BHNsawNyZWFkeS10by1yZWJvdW5k

Zillow hooks up with Seattle-based Windermere

The Seattle Times
Posted by Brier Dudley
September 28, 2009

Zillow today announced that it's partnering with Windermere Real Estate, which becomes the latest firm to automatically feed its listings into Zillow's Web site.

Windermere has more than 30,000 listings and Zillow drew 8.8 million uniue visitors last month, up 64 percent year-over-year, the release said.

Zillow said 37 percent of its traffic comes from the 10 Western states where Windermere operates.

For link to article, visit http://seattletimes.nwsource.com/html/technologybrierdudleysblog/2009958804_zillow_hooks_up_with_seattle-b.html

The Industry pays tribute to new home SUPERSTARS!

The New Home Council is an independent team of industry professionals working to meet the challenging needs of the new home building industry. On September 30th, The New Home Council held it's first annual Tribute Awards to recognize the outstanding efforts of residential sales professionals who work the "front lines" in selling new homes. Solution Partners NW is pleased to congratulate all of the winners for a job well done! And we are ecstatic to have three winners on our own team!

• Ray York, Community Sales Manager for Quadrant Homes, received the award for Highest Conversion. Ray's success is unbelievable with 58 sales and a conversion rate exceeding 36% this year. Wow!

• Glen Williams, Community Sales Manager for Veridian Cove won the Rising Star award. Glen's sales at Veridian Cove have exceeded expectations and he is actively involved in the marketing and strategic planning for this community.

• Lorrie Hoover, Sales Manager, received the award for Sales Manager of the Year. With his voice filled with pride and emotion, SPNW Co-President Bill Donahoe spoke of how fortunate we are to have Lorrie leading our sales team. She not only works tirelessly and with unparalleled passion, she never asks her sales team to do anything that she wouldn't do herself. She leads by example each and every day. We are so blessed to have her on our team!

To all the other Sales Professionals who have made lemonade out of lemons this year, all of us at Solution Partners NW would like to say,

"Thanks for making it happen! We are incredibly proud of everyone in our industry who has the fortitude to still be here and the passion to move forward. Here's to a successful 2010!" From left to right: Glen Williams, Lorrie Hoover, Barbara Allen and Bill Donahoe. Ray York not pictured because he left quickly to sell more homes!

Quote of the Day

We are not creatures of circumstance; we are creators of circumstance. -Benjamin Disraeli

Did you know?

Solution Partners NW has a resort division representing some of the finest resort properties in Washington State. This week we would like to introduce you to how lovely the Washington coast is this time of year at Roosevelt Ridge Estates in Pacific Beach!

Can't you just feel the sand between your toes?

Lot prices (with this view) start at $269,900

For more information, call George Donahoe at 360.289.2000 or visit our website at www.rooseveltridgeestates.com

FIVE SALES already this month at WestView Ridge!

(and it's only half way through the month)

In NWMLS Area 760, there have been 13 new construction single-family home sales in September and 5 of those belong to WestView Ridge.

Give us a call, ask us how!

www.westviewridge.com · 425.263.9602

Quote of the Day

Our attitude toward life determines life's attitude towards us. -Earl Nightingale

July pending home sales rise to 2-year high

A gauge of future U.S. home sales rose more than expected in July to the highest level in over two years as first-time buyers rushed to take advantage of a tax credit that expires this fall.

By Alan Zibel
AP Real Estate Writer
September 1, 2009

WASHINGTON — A gauge of future U.S. home sales rose more than expected in July to the highest level in over two years as first-time buyers rushed to take advantage of a tax credit that expires this fall.

The report showed the housing market is rebounding faster than expected from its historic bust. Low prices and the looming expiration on Nov. 30 of a first-time homebuyers' tax credit of up to $8,000 have spurred sales. Prices in much of the country have begun to rise from the depths of the slump.

"The overall trend toward stabilization is undeniable at this point," wrote Mike Larson, real estate analyst at Weiss Research.

The National Association of Realtors said Tuesday its seasonally adjusted index of sales contracts signed in July for previously occupied homes rose 3.2 percent to 97.6. It was the sixth straight increase, and 12 percent higher the same month last year.

Economists surveyed by Thomson Reuters had expected the index to edge up to only 96.5.

The index of pending home sales indicates how sales completed this month and next will turn out. Typically, there is a one- to two-month lag between a contract and a final deal. But delays in getting mortgages approved and appraisals completed have recently lengthened the time it takes to close a deal in many cases.

Analysts predict sales will drop off when the tax credit expires, or if mortgage rates rise from near-record lows. Foreclosures also continue to rise, and banks are forced to sell those properties at deep discounts, pushing prices down.

A 12 percent jump in sales contracts in the West and a 3 percent increase in the South drove July's overall increase. Sales fell in the Northeast and Midwest.

The Realtors group projects that around 2 million first-time buyers will take advantage of the credit this year, and says it is spurring 350,000 additional sales that wouldn't have happened otherwise.

Nationally, home prices in the second quarter posted their first quarterly increase in three years, according to the Standard & Poor's/Case-Shiller national index released last week. Prices are growing in some parts of the country, but "beware a rise in supply as frustrated would-be sellers see their chance," wrote Ian Shepherdson, chief U.S. economist at High Frequency Economics.

While home prices are still 30 percent below the mid-2006 peak, their new direction should bring relief to lenders, homeowners and buyers alike.

Falling property values have wiped out $4 trillion in homeowners' equity, and thousands have walked away from homes that are worth far less than their mortgage balance. But now, with prices stabilizing, many buyers who had been staying out of the market are coming off the sidelines.

For link to article, visit http://seattletimes.nwsource.com/html/businesstechnology/2009785631_apuspendinghomesales.html

Typical King County family can again afford median-priced house

The typical King County family now can afford the typical King County house, according to the Washington Center for Real Estate Research's housing affordability index.

By Eric Pryne
Seattle Times business reporter
August 26, 2009

This year, for the first time since 2004, the typical King County family again can afford the typical King County house, according to one widely circulated measure.

The Washington Center for Real Estate Research's "housing affordability index" for the county for the second quarter was 102.4. That means a median-income family earned 2.4 percent more than needed to carry the mortgage payments with conventional financing on a median-priced house, put at $387,500.

King County home prices have experienced double-digit drops since hitting an all-time high two years ago. The improving affordability index indicates "the price declines have been enough to offset the stagnation in incomes" from the recession, said Glenn Crellin, director of the center at Washington State University.

Affordability-index scores in neighboring counties also have risen, a change the four-county Puget Sound Regional Council highlighted in a recent report.

"Equilibrium between home prices and income has been re-established for the typical middle-income family," principal planner Carol Naito wrote.

King County's affordability index also topped 100 in the first quarter. Before then, it hadn't hit that benchmark — the index's dividing line between affordable and unaffordable — in five years.

In the third quarter of 2007, the index dropped to a low of 64.7 — meaning a median-income family earned only about 65 percent of what the research center figures is needed to buy a median-priced house without taking on too much debt.

The improved scores suggest that "real people — people with jobs — can afford to buy houses here again," said Jill Wood, president of Windermere Real Estate.

Tim Ellis, editor of the Seattle Bubble real-estate blog, agreed that houses have become much more affordable recently. He produces his own similar index, which indicates King County houses were even more affordable during the second quarter than during the pre-housing bubble years of 2000-2003.

But the indexes don't factor in the availability of financing, Ellis added:

"It's not nearly as easy to get as it was before. ... The affordability rate is great — if you qualify for the best financing."

To come up with its index scores, Crellin's research center plugs in:

• Each county's median family income — which doesn't include single-person households or households of unrelated persons;

• The median price of single-family homes sold in that county during the quarter;

• The Federal Housing Finance Agency's figures on the effective interest rate for loans closed on existing homes that quarter.

Then the center calculates whether that typical family can afford that median-priced house, assuming a 30-year loan with a 20 percent down payment and an allocation of 25 percent of the family's income for principal and interest payments.

Will the index's trend toward greater affordability continue? That's unclear, Crellin said

Median home prices — a key component of the index — have dropped in part because a larger share of sales are lower-priced homes being purchased by first-time buyers using the $8,000 federal tax credit, he said. "What happens when that tax credit expires at the end of November?" Crellin said. Low interest rates also have been a "huge factor" in improving affordability, Ellis said. If they rise, affordability could suffer.

The Washington Center for Real Estate Research also produces a first-time buyer affordability index, using lower assumptions for income, house price and down payment.

In King County, that score for the second quarter was 57.0, an indication housing still isn't affordable for many prospective newcomers to homeownership.

But that's up from 36.1 in the third quarter of 2007.

For link to article, visit http://seattletimes.nwsource.com/html/businesstechnology/2009738318_affordability26.html

Index shows U.S. home prices increase from 1Q to 2Q

Home prices posted their first quarterly increase in three years, signaling the housing market has turned a corner.

By J.W. ELPHINSTONE
AP Real Estate Writer
August 25, 2009

NEW YORK —Home prices posted their first quarterly increase in three years, signaling the housing market has turned a corner.

The Standard & Poor's/Case-Shiller's U.S. National Home Price Index released Tuesday rose nearly 3 percent from the first quarter to 133, though that reading is still down almost 15 percent from the second quarter last year.

Home prices are at levels not seen since early 2003. Prices have fallen 30 percent from the peak in the second quarter of 2006.

The monthly index of 20 major cities increased 1.4 percent from May to June to 142, the second straight month the index registered a gain. All but two cities, Las Vegas and Detroit, saw home prices rise, and Dallas and Denver clocked their fourth-straight monthly increase.

Prices, however, have a long way to go to recover completely. Every metro showed annual declines, with fifteen reporting double-digit drops.

The Case-Shiller index is a composite of home price indexes for the nine U.S. census divisions. The 20-city index measures home price increases and decreases relative to prices in January 2000. The base reading is 100; so a reading of 150 would mean that home prices increased 50 percent since the beginning of the index.

For link to article, visit http://seattletimes.nwsource.com/html/nationworld/2009734744_aphomeprices.html

July home sales surge more than 7 percent

he U.S. housing market is rebounding quicker than expected, with home resales in July posting the largest monthly increase in at least 10 years as first-time buyers rushed to take advantage of a tax credit that expires this fall.

By Alan Zibel
AP Real Estate Writer
August 21, 2009

WASHINGTON —The U.S. housing market is rebounding quicker than expected, with home resales in July posting the largest monthly increase in at least 10 years as first-time buyers rushed to take advantage of a tax credit that expires this fall.

The National Association of Realtors said Friday that home sales rose 7.2 percent to a seasonally adjusted annual rate of 5.24 million in July, from a pace of 4.89 million in June. It was the fourth-straight monthly increase and the highest level of sales since August 2007.

Sales had been expected to rise to an annual pace of 5 million, according to economists surveyed by Thomson Reuters.

"The housing market, with today's strong rise in sales, has decisively turned for the better," said Lawrence Yun, the trade group's chief economist.

Sales of foreclosures and other distressed properties made up about a third of all transactions last month, down from nearly half earlier this year. In places like San Diego and Orlando, buyers are snapping up foreclosed properties at deep discounts, and real estate agents are pressing banks to release more foreclosures onto the market.

Those sales helped drag down the median sales price by 15 percent to $178,400.

First-time buyers must complete their sales transactions by the end of November to take advantage of a tax credit of 10 percent of the purchase price, up to $8,000. The real estate industry is lobbying Congress to get the credit extended.

"It would be unfortunate to see the momentum halted," Yun said.

The inventory of unsold homes on the market rose to 4.1 million, from 3.8 million a month earlier. That's a 9.4-month supply at the current sales pace, unchanged from June.

For link to article, visit http://seattletimes.nwsource.com/html/nationworld/2009707657_apushomesales.html

Median U.S. home price rise from 1st quarter to 2nd

A real estate group says U.S. home prices posted a gain in the second quarter, another sign that the ailing housing market is finally coming to life.

By Alan Zibel
AP Real Estate Writer
August 12, 2009

WASHINGTON — A real estate group says U.S. home prices posted a gain in the second quarter, another sign that the ailing housing market is finally coming to life.

The National Association of Realtors says the median sales price in the quarter was $174,100, up 4 percent from the first quarter, but still almost 16 percent below a year ago. Prices, however, were still down from a year ago in 129 out of 155 metropolitan areas the group tracks.

Total sales rose to a seasonally adjusted annual rate of 4.76 million, from 4.58 million in the first quarter, but were still about 3 percent below a year ago.

For link to article, visit http://seattletimes.nwsource.com/html/businesstechnology/2009647626_apusmetrohomeprices.html

Quote of the Day

We will either find a way or make one. - Hannibal

Bill Donahoe on KKOL 1300 AM Sound Business

Bill Donahoe, co-President of Solution Partners NW discussed the real estate market on Sound Business with Mike Siegel.

Click HERE to listen in!

KKOL 1300 AM-6am to 9am www.1300kol.com
© 2009 Salem Communications Friday, August 7, 2009

Homebuilder Confidence in U.S. Rises to One-Year High

By Bob Willis
Bloomberg.com
August 17, 2009

Confidence among U.S. homebuilders rose to a one-year high, another sign that the worst of the housing decline that began in 2006 has passed.

The National Association of Home Builders/Wells Fargo confidence index climbed to 18, matching forecasts by economists and reaching the highest level since June 2008, the Washington-based group said today. A reading below 50 means most respondents view conditions as poor.

Lower prices and government tax credits for first-time buyers have stabilized home sales, setting the stage for builders to gradually step up construction from record lows. Job losses, rising foreclosures and tight credit are a reminder that any recovery in housing will be slow to develop, limiting sales at builders such a D.R. Horton Inc. and Pulte Homes Inc.

“Inventory is being cleared and that is starting to benefit the new-home market,” said Julia Coronado, a senior U.S. economist at BNP Paribas in New York. “With a few months’ lag, that will lead to a turnaround in construction activity.”

Stocks dropped around the world as investors speculated the recent rally in riskier assets had outpaced prospects for economic growth. The Standard & Poor’s 500 index fell 2.3 percent to 981.05 at 1:41 p.m. in New York. The S&P builder supercomposite was down 3.3 percent.

Matches Forecast

The index was forecast to increase to 18 this month from 17 in July, according to the median estimate of 37 economists surveyed by Bloomberg News. Projections ranged from 17 to 21.

The gauge reached a record low of 8 in January and averaged 16 in 2008. It was first published in January 1985.

The confidence survey asks builders to characterize current sales as “good,” “fair” or “poor” and to gauge prospective buyers’ traffic. It also asks participants to assess the outlook for the next six months.

Last month’s gain was led by an increase in sales expectations over the next six months, which reached the highest level since April 2008. The measure of buyer traffic also improved, while a gauge that tracks current sales was little changed.

The increase in expectations “reflects anticipated sales stemming from the tax credit as well as recent signs that an economic recovery has begun,”David Crowe, chief economist of the builders’ group, said in a statement. “There is definitely a sense of hope among builders that the worst of the downturn is over and that a turning point is near at hand.”

Buyer Credit

In a bid to boost the housing market, the Obama administration’s stimulus measures included an $8,000 tax credit for first-time home buyers for purchases completed by Dec. 1.

Confidence increased in three of four regions, led by a jump in the Northeast. The South was the only area where confidence fell.

Builders probably broke ground on more houses in July for a third month, economists surveyed by Bloomberg forecast the Commerce Department will report tomorrow. Starts probably rose to a 598,000 annual pace from 582,000 in June, according to the survey median. Starts are down 74 percent from their January 2006 peak.

Other housing data in recent months have also signaled the market has bottomed. Combined sales of both new and existing homes have risen for four out of five months since January. That helped push the total number of houses on the market in June down to 4.1 million, a million less than the peak in July 2007.

Prices Stabilizing

Home price declines are also slowing. The S&P/Case-Shiller index of home prices in the 20 largest cities fell 17.1 percent in May from a year earlier, the smallest 12-month drop in nine months. The index rose 0.5 percent from the prior month, the first such gain since July 2006.

While the overall economy is showing signs of emerging from the worst recession since the 1930s, any recovery will be slow to develop. Economists surveyed earlier this month forecast unemployment will reach 10 percent by 2010 and gains in consumer spending will be smaller than the average over the last decade as Americans rebuild savings.

Homebuilders are still racking up losses. Forth Worth, Texas-based D.R. Horton and Pulte Homes, based in Bloomfield Hills, Michigan, on Aug. 4 reported quarterly losses and said the outlook for the housing market remains difficult. The companies are the first- and second-largest U.S. homebuilders.

“Market conditions in the homebuilding industry are still challenging, characterized by rising foreclosures, high inventory levels of available homes, increasing unemployment, tight credit for homebuyers and weak consumer confidence,” Chairman Donald Horton said in a statement.

For link to article, visit http://www.bloomberg.com/apps/news?pid=20601087&sid=aHEpm4Gsg0To

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Over 90 visitors in one weekend? You heard it right!

The grand opening of The Continental Condos was a smashing success!

Over the last weekend, we held the Grand Opening of The Continental Condominiums directly across the street from Bellevue Square. It was a hit! At nearly 100 guests, it was extremely well attended and we couldn’t be more thrilled at the excitement over this unique boutique community!

It was a wonderfully diverse crowd! A wide range of buyers - from first time homeowners to move down; people would had either lived here when they were apartments or knew someone who had; neighbors who had been following the construction and couldn’t wait to see how it turned out; real estate agents who had a client in mind to show; and of course, friends and family. We had rave reviews and very positive feedback.

If you haven’t taken the time to come out and see this “world class” community, don’t wait too long. With this overwhelming response, we will be sold out in no time!

Visit our sales center!
511 100th Ave NE
Bellevue, WA 98004
Open Saturday & Sunday 11am to 6pm
Monday to Friday 12pm to 6pm

www.thecontinentalcondos.com
425.455.0833

Fed says economy leveling out; rates stay at lows

The Federal Reserve delivered a vote of confidence in the economy Wednesday, saying it would slow the pace of an emergency rescue program and indicating the recession appears to be ending.

By Jeannine Aversa
AP Economics Writer
August 13, 2009

WASHINGTON — The Federal Reserve delivered a vote of confidence in the economy Wednesday, saying it would slow the pace of an emergency rescue program and indicating the recession appears to be ending.

The central bank also held interest rates steady at record lows, with a closely watched bank lending rate near zero, and again pledged to keep them there for "an extended period" to nurture an anticipated recovery.

Fed Chairman Ben Bernanke and his colleagues said the economy appeared to be "leveling out" - a considerable upgrade from their last meeting in June, when the Fed observed only that the economy's contraction was slowing.

"We're no longer at DEFCON 1," said Richard Yamarone, economist at Argus Research, referring to the defense term used to indicate being under siege. "The Fed is pulling in some of its life preservers now that the economy is no longer sinking."

The more optimistic tone lifted Wall Street. The Dow Jones industrials gained about 120 points, or 1.3 percent, to close above 9,360 - near their highest level since the market bottomed out in early March.

The Fed said it would gradually slow the pace of its program to buy $300 billion worth of Treasury securities and shut it down at the end of October, a month later than previously scheduled.

It has bought $253 billion of the securities so far. The program is designed to force interest rates down for mortgages and other consumer debt and spur Americans to spend more money.

"I think the Fed is feeling increasingly comfortable about where the economy is going," said Mark Zandi, chief economist at Moody's Economy.com. "For the first time in two years, the Fed is taking one step - a baby step - toward unwinding the massive stimulus."

The Treasury-buying program's effectiveness has been questioned on both Wall Street and Capitol Hill, with critics saying it looks like the Fed is printing money to pay for Uncle Sam's spending binge.

As the Fed winds down the program, rates on government debt might edge higher, economists said. But the Fed appeared to feel sufficiently secure that higher rates would not jeopardize a recovery, they said.

Chris Rupkey, an economist at Bank of Tokyo-Mitsubishi, viewed it as a "vote of confidence that credit markets and the economic outlook has improved and will show even further improvement down the road." The Fed left unchanged another program that aims to push down mortgage rates. In that venture, the Fed is on track to buy $1.25 trillion worth of securities issued by mortgage finance companies Fannie Mae and Freddie Mac by the end of the year.

The central bank's recent purchases have totaled about $543 billion, suggesting the Fed still has firepower in its arsenal.

The Fed left the target range for its bank lending rate at zero to 0.25 percent. And economists think it will stay there through the rest of this year. The rationale: Super-cheap lending will lead Americans to spend more, which will support the economy.

If the Fed holds rates steady, commercial banks' prime lending rate, used as a peg for rates on home equity loans, certain credit cards and other consumer loans, will stay at about 3.25 percent, the lowest in decades.

The Fed gave its assessment after its first meeting since the economy began flashing significant signs of turning a corner. They include fewer job losses in July, slower economic contraction and stabilizing consumer spending. But dangers still lurk.

Further job losses, sluggish income growth, hits to wealth from tanking home values and still-hard-to-get credit could make Americans cautious in the months ahead, the Fed said.

The Fed expressed confidence that low rates and other aggressive action will gradually bolster the economy. Even so, economic activity probably will "remain weak for a time," the Fed warned.

Against that backdrop, the Fed said inflation is likely to stay "subdued." Fed policymakers predicted that idle factories and the weak employment market will make it hard for companies to jack up prices.

While unemployment dipped to 9.4 percent in July, the Fed says it's likely to top 10 percent this year because companies are in no rush to hire.

The Fed offered no hints about the fate of another program intended to spark more lending to individuals and businesses at lower rates.

The Term Asset-Backed Securities Loan Facility, which had gotten off to a slow start in March, is slated to shut down at the end of December. And people are having trouble getting loans anyway, analysts say. More recently, the program was expanded to provide relief to the commercial real-estate market.

The Fed has been weighing whether it should end some of its economic revival programs now that signs are growing that the worst recession to hit the country since World War II is drawing to a close.

Many analysts believe the economy - which logged a mild contraction in the second quarter after a dizzying fall in the prior six months - is growing now.

"A paradigm shift is occurring at policy deliberations of the Federal Reserve," said Sung Won Sohn, an economist at California State University, Channel Islands. "The officials are no longer worried about a severe retrenchment as they were late last year. Now, they are trying to sustain the economic recovery in motion." For link to article, visit http://seattletimes.nwsource.com/html/businesstechnology/2009643648_apusfedinterestrates.html

Homebuilders Eliminate Frills as First-Time Buyers Drive Sales

By Kathleen M. Howley and Daniel Taub
Bloomberg
August 6, 2009

When Lucas Miller bought his first property in June, he decided it was no time to splurge. He opted for laminate rather than granite kitchen countertops in his $127,000 two-bedroom townhouse in Fishers, Indiana.

“Spending another $20,000 on upgrades just didn’t make sense to me,” said Miller, 30, a chef at Ball State University in Muncie, who bought from Pulte Homes Inc., the second-largest U.S. homebuilder.

Frugal first-time buyers are driving the new-home market with purchases of low-priced houses with no frills. Sales of new homes costing less than $200,000 jumped to 47 percent of all transactions in June, up from 39 percent in May, U.S. Commerce Department data show. Homes under $200,000 accounted for almost half of the sales in the first six months of this year, the biggest share for a first half in five years.

Housing starts rose to a seven-month high in June and sales of new houses gained in each of the last four months, including the 11 percent increase in June that was the biggest in eight years. Spending on residential construction fell to a 13-year low of $252.1 billion in May, the Commerce Department said this week.

The average size of new homes is down to 2,065 square feet, the smallest since 2000, and the median price this year has yet to rise above 2004 levels, according to the Census Bureau. June’s median of $206,200 was 12 percent below a year earlier.

New Frugality

Builders, who lured customers in the housing boom with everything from granite countertops to Sub-Zero refrigerators, are modifying floor plans and options in response to homebuyers’ emphasis on frugality, said Brian Bethune, an economist at IHS Global Insight in Lexington, Massachusetts.

“The high end isn’t moving, so builders have got to dumb- down their designs and put in Formica kitchens and the bare- bones carpeting,” Bethune said in an interview. “New-home buyers are being conservative -- they’re not willing to pay for the extras because they’re worried about the economy.”

Demand is being driven by the $8,000 first-time homebuyer credit, said David Crow, chief economist of the National Association of Home Builders in Washington.

Properties in KB Home’s Bonita Canyon development in Fontana, California, were scaled down for first-time buyers. About 90 houses using KB’s new Open Series design are planned and half are sold, said Steve Ruffner, president of the Los Angeles-based company’s Southern California division. The houses are listed at $235,000 to $278,000.

Smaller Homes

The homes are 1,400 to 2,200 square feet, 30 percent smaller than previous designs, to reduce building costs, Ruffner said. Bathrooms are built back-to-back so only one plumbing tree is needed and there are fewer internal walls. It takes less than 10 weeks to complete an Open Series home, compared with almost 20 weeks for a house with older specifications, Ruffner said.

“It is very open inside,” Ruffner said. “You can decide how big your living room should be or how big your dining room should be.”

KB Home officials wouldn’t discuss construction costs. At a company development in Texas, the average Open Series home is priced $60,000 lower than KB Home’s previous models, and the cost to build them is $80,000 less, Chief Executive Officer Jeffrey Mezger said on a conference call in June.

Flexible Floor Plan

First-time buyers Leona Fisher and husband Will Sankhla bought a four-bedroom house in Bonita Canyon, lured by the flexible interior design, said Fisher, 27, a doctoral candidate in English. She turned a second-story loft space into an office for her and an editing bay for Sankhla, 32, a documentary filmmaker.

This year’s best performers in the Standard and Poor's Supercomposite Homebuilders Index are companies that focus on first-time buyers. Irvine, California-based Standard Pacific Corp. has more than doubled and Meritage Homes Corp., based in Scottsdale, Arizona, is up 84 percent. KB Home shares are up more than 32 percent this year through yesterday.

Standard Pacific and Meritage sell houses that average $279,000 to $302,000. Toll Brothers Inc., the largest U.S. builder of luxury homes, sells for an average of $600,000 and has the worst performance in the index this year, with a loss of 3 percent.

Orders for Meritage homes rose to 1,147 in the second quarter from 987 in the first three months of the year. M.D.C. Holdings Inc., the Denver-based builder of starter homes, said orders increased on a quarterly basis for the first time in four years.

‘Scared Buyers’

The design changes are helping some builders improve gross profit. Standard Pacific said second-quarter gross margin excluding certain expenses rose to 18.5 percent from 12.9 percent a year-earlier in part due to lower construction costs.

“Three years ago, everyone wanted the big house with the media room and the three-car garage,” said Sean Donahue, a broker with Re/Max Traditions in Woodstock, Illinois. “Today, a lot of people are scared about their jobs, so they’re opting for smaller floor plans and basic designs.”

Miller, the Ball State chef, said he was so determined to buy an affordable home he considered purchasing a foreclosed property. He decided his townhouse was a better deal.

“Everything is brand new, and the laminate countertops work just fine,” he said.

For link to article, visit http://www.bloomberg.com/apps/news?pid=20601109&sid=akCaYx29BrI8

The Continental Condos Grand Opening

Solution Partners NW - Windermere is pleased to announce the Grand Opening of an extraordinary "world class community in the very heart of Bellevue...

THE CONTINENTAL CONDOMINIUMS

The Continental is a 39 (ooops 37... we have already sold 2!) unit condominium project that offers a boutique living experience and an alternative to downtown Bellevue high-rise living.

We are proud to have the opportunity to represent this high caliber project, as presented by one of the Northwest's premier builder/developers - Jim Cronkhite.

To see what all the buzz is about, we invite you to our Grand Opening on Saturday, August 8th from 11am to 6pm.

Feel free to contact us anytime for information about our new, innovative marketing strategies! We have proven success and expertise that we can bring to your next project! We bring a team solutions approach that just plain gets the job done!

To quote Jim: "From the beginning, Solution Partners NW was a key part of our team and is a major reason this project has turned into such a success story. Their impact on feasibility, project specifications and marketing are and continue to be exceptional."

For more info on The Continental Condos, please visit http://thecontinentalcondos.com/ or call 425.455.0833

Quote of the Day

Enthusiasm releases the drive to carry you over obstacles and adds significance to all you do. -Norman Vincent Peal

King County home sales climb to two-year high in July

Homebuyers in King County closed on 1,727 houses last month, the largest number of sales since August 2007, the month the real-estate downturn began.

By Eric Pryne
Seattle Times business reporter
August 5, 2009

Home sales in King County surged to their highest level in nearly two years in July, according to statistics released today by the Northwest Multiple Listing Service.

Buyers closed on 1,727 houses last month, the service said — the largest number of sales since August 2007, the month the real-estate downturn began.

The number of closed sales in July was 10.6 percent higher than the same month last year, the service said — the second monthly year-over-year increase in a row.

Pending single-family home sales — offers that were accepted by sellers in July, but haven't yet closed — also were up 19.5 percent from July 2008, continuing a trend that began in April.

Brokers hailed the sales statistics as evidence of recovery.

"The rise of pending sales over the past few months is the best indication we have of what's to come and I am encouraged by what we're seeing," Lennox Scott, chairman and CEO of John L. Scott Real Estate, said in a prepared statement.

Other brokers credited the $8,000 federal tax credit for first-time buyers for much of the increased activity.

There was no evidence of a turnaround in prices, however: The median price of a house that sold in July in King County was $384,000, down from $395,000 in June and $445,000 in July 2008 — a 13.7 percent decline year-over-year.

The median King County condo price was $250,000, down 9.8 percent year-over-year. Pending condo sales were up 9.8 percent, but closed sales declined 9.4 percent.

Single-family home sales in Snohomish County in July were up even more than in King County. Closed sales increased 18.4 percent from the same month last year, pending sales 32.9 percent, the listing service said.

The median price declined 14.3 percent, from $350,000 to $299,990.

For link to article, visit http://seattletimes.nwsource.com/html/businesstechnology/2009605109_webhomesales05.html

WestView Ridge Broker Tour - Friday August 7th!

Come see what the buzz is about at WestView Ridge!

BROKER TOUR - FRIDAY AUGUST 7th - 11am to 2pm

FREE COFFEE CARDS to all AGENTS WHO TOUR OUR COMMUNITY. Snacks & Drinks provided too!

3% SOC plus $1,000 BONUS on all accepted offers on completed homes received by August 31, 2009.

HOMES READY FOR MOVE-IN NOW!

Click image for full size.

www.WestViewRidge.com 425.263.9602

Recovery Signs in Housing Market Stir Some Hope

By David Streitfeld
The New York Times
July 28, 2009

After a plunge lasting three years, houses have finally become cheap enough to lure buyers. That, in turn, is stabilizing prices, generating hope that the real estate market is beginning to recover.

Eight cities, including Chicago, Cleveland, Denver and San Francisco, showed price increases in May, up from four in April and one in March, according to data released Tuesday. Two other cities, Charlotte, N.C., and New York, were flat.

For the first time since early 2007, a composite index of 20 major cities was virtually flat, instead of down.

“We’ve found the bottom,” said Mark Fleming, chief economist for First American CoreLogic, a data firm.

The release of the surprisingly strong Case-Shiller Price Index, compiled by Standard & Poor’s, followed earlier reports that sales of existing homes rose last month for the third consecutive time, while sales of new homes rose in June by the largest percentage in eight years.

All of these improvements are tentative, and come after a relentless decline that knocked more than half the value off houses in the worst-hit cities.

Some skeptics say they believe the market is merely pausing before it resumes falling and that much of the life in the market is coming from speculators. Even the most enthusiastic analysts acknowledge that rising unemployment, another leap in foreclosures or a significant jump in interest rates could snuff out progress.

Still, hope is growing in some quarters that the worst has passed.

“Recession is over, economy is recovering — let’s look forward and stop the backward-looking focus,” John E. Silvia, the Wells Fargo chief economist, wrote Tuesday in a research note.

Kirit Shah decided to look forward a few weeks ago. A retired forensic chemist for the New York Police Department, he closed on a house in Royal Palm Beach, Fla.

Mr. Shah was not dissuaded when the salesman at K. Hovnanian Homes told him the five-bedroom place had been empty since it was finished three years ago. “It was waiting for me,” said Mr. Shah, 64. “I’m on a lakefront. I never dreamed I would be on a lakefront. I’m within walking distance of a swimming pool.”

But the thing he likes best is this: he paid $260,000 for the five-bedroom house, half of what that model was fetching during the boom. “An excellent deal,” he said. “Plus I got a good rate on my mortgage, under 5 percent.”

Turning markets are full of uncertainty. If Mr. Shah was one reason new home sales were up 11 percent in June from May, it is unclear just how many others like him are out there.

Brad Hunter, chief economist for Metrostudy, a research firm, said the new home numbers appeared to illustrate less a return of buyers like Mr. Shah and more a resurgence of investors and speculators. Metrostudy’s own data showed that the number of buyers during the second quarter who actually moved into their new house declined 2.6 percent.

“Investors are turning right around and putting the houses on the market for sale or for rent,” Mr. Hunter said. “What appears to have been an absorption of excess inventory can be just a changing of ownership of that inventory.”

The good news in the Case-Shiller index, the most widely watched source of price information about the housing market, is equally provisionary. Tracking only large urban areas, the monthly index does not represent the country as a whole.

The Case-Shiller figures released Tuesday showed May prices were down 17.1 compared with May 2008. As bad as that may sound, it was the fourth consecutive month that price declines slowed — a step in the right direction, but perhaps not cause for widespread celebration.

More attention was focused on the news that, when May was compared with April, the price index for 20 major cities showed a half-percent gain. It was the first month-over-month increase in the index in 34 months.

“It is very possible that years from now we will say that April 2009 was the trough in home prices,” said Maureen Maitland, vice president for index services at Standard & Poor’s.

When the numbers were adjusted for seasonal factors, however — the usual way housing figures are presented — the slight gain disappeared and the index was essentially flat. Half of the cities showed continued declines.

One reason the market is perking up in some places, real estate agents say, is the encouragement offered by such measures as the first time buyer’s tax credit of $8,000.

All the more reason, said the National Association of Realtors, to not only extend the credit but expand it. The association is lobbying for the current credit, which expires in December, to be replaced with a $15,000 credit for all buyers.

“This is a relatively low-cost way to keep the housing market moving forward,” said Paul Bishop, the association’s managing director of research.

Another reason for the market’s resurgence is the prevalence of foreclosures, which make up about a third of all existing home sales. In some troubled regions, agents say they cannot remember the last transaction that did not involve a bank disposing of a property.

These communities are not yet showing any improvement in prices. Las Vegas was the worst-performing city in the May Case-Shiller index, falling 2.6 percent. Prices have fallen there by a third in the last year.

“The mom and pop that work at the Hilton can now afford a home here again,” said Justin Pechonis, a Las Vegas real estate agent. “Las Vegas is a great place to buy now.” But not from him. Sickened by seeing so many clients foreclosed on, he is getting out of the business. He now drives a taxi.

All this uncertainty breeds a hesitancy that seems to show up in nearly every sale, especially at the higher end of the market. When Margot and Pascal Lalonde decided in April to sell their two-bedroom condominium in the North End of Boston, they methodically quizzed six experienced agents about a good price.

List it for under $500,000 unless you want to be here for months, said one agent. Two others said they should demand $675,000. The other three were in between.

“In a market with so few sales, no one knows what to do,” said Ms. Lalonde, a consultant.

After 80 days on the market and two small price reductions, the condo is now under contract for $550,000. The buyers examined the apartment six times. The Lalondes, who are moving to Short Hills, N.J., expect to be no less careful when they buy.

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