Solution Partners NW Blog

Home prices inch up on Eastside, in Seattle year-over-year

2010-03-05T13:00:00.000-08:00

February house prices nudged up in February in Seattle and on the Eastside while falling by double digits in South King County.

By Eric Pryne
Seattle Times business reporter
March 4, 2010

After a two-year slide, home prices may be starting to inch up in big chunks of King County, February home-sale statistics suggest.

The median price of a house that sold on the Eastside last month was $490,000, up 1 percent from February 2009, the Northwest Multiple Listing Service reported Thursday. While minuscule, it was that area's first year-over-year increase since December 2007.

Seattle's median price also rose slightly for the second month in a row after nearly two years of declines.

Countywide, however, the median single-family home price, $373,010, was down 0.5 percent from a year ago. The chief reasons: Southwest and Southeast King County, the county's most affordable areas, where median prices fell by double digits.

Sales volumes were up strongly throughout the county, 51 percent overall from February 2009. It was the ninth straight month of year-over-year gains, fueled by low interest rates, federal tax credits and mild winter weather.

But brokers say prices in South King County are continuing to fall because houses repossessed by banks and short sales — those for less than the seller owes on the home — make up a bigger share of that market.

Those sellers are more likely to settle for less. "It's putting a lot of downward [price] pressure on sellers who are not in trouble," said Tony Hettler, broker-owner of the John L. Scott office in Des Moines.

In Seattle and on the Eastside, in contrast, brokers say move-up buyers are returning to the market.

In Seattle's Capitol Hill and Madison Park areas, 39 houses sold in February with a median price of $596,000, according to the listing service. That's up from just 17 houses that sold in February 2009, with a median price of $409,000.

"We are starting to see high-end sales in bigger numbers," said Dave Hale, broker at Windermere Real Estate's Madison Park office.

Prices have dropped, he said. Jumbo loans — more than $567,500 — are easier to get. And the stock market has come back from the depths of a year ago.

"For a lot of these folks, their portfolios have probably come up 30 or 40 percent," Hale said. "They're feeling more confident."

He said he sees few short sales or sales of bank-owned homes in the central-city neighborhoods he serves.

In Southwest King County, in comparison, foreclosed homes and short sales make up 26 percent of active listings, Hettler said.

He said he recently completed an analysis for an owner who wondered why condos in his building weren't selling. The answer: Prospective buyers were gravitating toward single-family homes in the same relatively low price range.

"Two or three years ago [condos and houses] wouldn't have been competing for the same buyer," Hettler said.

Overall, King County condo sales rose 26 percent last month from February 2009, the listing service said. The median condo price was down 3 percent but, again, it varied significantly by area.

The median price rose 6 percent in Seattle and 19 percent in Southeast King County, but fell 13 percent in Southwest King County and 12 percent on the Eastside.

The median price of single-family homes sold in Snohomish County in February was $280,000, down 10 percent from the same month last year. Sales were up 53 percent.

For link to article, visit http://seattletimes.nwsource.com/html/businesstechnology/2011259254_homesales05.html

Announcing: The Esplanade!

2010-01-18T11:26:00.000-08:00

The Esplanade opened it's doors in early December with an overwhelming response! The town is buzzing with excitement over prices reduced up to $220,000 and great financing too! The Sales Gallery is open daily 11am to 6pm. Stop by any day to take a tour with one of our astounding community sales managers. Marisa Nichols, Colleen Koch and Jessica Volkman would love to introduce you to these fabulous waterfront condominiums. Keep an eye out for news of our Grand Opening set for early February. It's high-rise luxury for a down to earth price. The Esplanade was featured this past Saturday in the Tacoma News Tribune New Homes section. To view the article, please follow this link: http://guide.southsoundnewhomes.com/SS/Page.aspx?sstarg=&facing=false&secid=76534&pagenum=1&adid=1924615#1924615

1515 Dock Street, Tacoma
877.433.1154
esplanadetacoma.com

5 Markets Expected to Fare Best in 2010: Seattle & Tacoma!

2010-01-15T11:56:00.000-08:00

Lisa Scherze
SmartMoney.com
Jan 8th, 2010

After a dour year where housing prices fell more than 12% nationwide, will 2010 bring sunnier tidings?

The short answer: only a tad in a select few places but overall not really.

The five areas that Moody's foresees home prices performing best in 2010 are: Tacoma, Wash, (an increase of 2.44%); Memphis, Tenn., (up 0.99%); Pittsburgh (up 0.89%); Charleston, S.C. (up 0.18%); and Seattle (decline of 0.50%). (These five markets are culled from data on Moody's Economy.com and based on the largest 100 metro areas.)

Yes, there have been pieces of good news over the past few months that have indicated a quiet, slow bottoming of real estate prices. For instance, sales of existing homes rose 7.4% in November from the previous month, the highest rate since February 2007, according to data from the National Association of Realtors released last week. The tax incentives for home buyers passed earlier this year along with historically low interest rates have no doubt nudged many buyers into the market.

Yet a recovery depends on several factors. At the top of the list is a turnaround in the labor market. More people going back to work will have a beneficial effect on household income and consumer confidence and would stabilize the housing market, says Stuart Gabriel, director of UCLA's Ziman Center for Real Estate. As of November, one of out every 10 American workers is unemployed, according to the Bureau of Labor Statistics. And while that's down slightly from October, Moody's expects the jobless rate to peak in the third quarter next year at 10.6%.

Another factor is the backlog in foreclosures, which are dragging down values and adding to the housing supply. "By all accounts, that backlog is at a historic high," says Gabriel. "It suggests that many more homes will be sold on a distressed basis either via foreclosure or short sale."

RealtyTrac, an online marketplace of foreclosure listings, estimates 3.2 million households will have received a foreclosure notice in 2009, up from 2.3 million in 2008. The firm projects that number could approach four million in 2010. "We do think 2010 will probably represent the peak, and in 2011 [foreclosures] will start to go down at least marginally," says Rick Sharga, senior vice president at RealtyTrac. Why the acceleration next year? First, says Sharga, there have been enormous delays in processing this year. Many homes that would have gone into foreclosure in 2009 won't actually enter and complete the process until 2010.

Second, a big wave of option adjustable-rate mortgages (ARMs) will reset next year. (These are a somewhat obscure category of ARMs that were popular during the real estate boom, which allowed borrowers to make a range of monthly payments. The options include a partial-interest payment that adds the unpaid interest to the loan's balance. On many of the loans, balances have risen while values of the underlying properties have plummeted.) "The number of loans that will adjust starts to go up significantly in the middle of next year. A lot of those loans are underwater...and owners will be really hard-pressed to avoid going into foreclosure," Sharga says.

Home prices, of course, are variable and depend on many factors, each of which are difficult to predict. Still, average home prices will drop by 7.9% nationwide in 2010, according to Moody's Economy.com. In the few areas where there could be positive price growth, the projected increase is modest. "These areas will essentially be flat next year," says Steve Cochrane, managing director at Moody's Economy.com.

These pockets of the country share a few important characteristics. One is that they are starting with a limited supply of housing stock. Another is that throughout most of the decade, prices basically stayed in synch with household income, says Cochrane.

There are other factors, too. Pittsburgh, for example, along with western Pennsylvania, is late in the traditional business cycle, and "our variations tend to be smaller," says Robert Strauss, a professor of economics and public policy at Carnegie Mellon University in Pittsburgh. The economy has managed to stay fairly stable mostly because over the past several decades it transformed from a center of manufacturing to one of education and health care with a bit of financial services and technology.

Smaller areas across the Southeast are expected to fare well in 2010 primarily because they fared relatively decently during the housing crisis, says Jeannine Cataldi, a senior economist at IHS Global Insight. "They didn't have such a big run-up, and they have a diverse economic base that enabled them to stay stable," she says. Home prices in Charleston didn't get out of line with household incomes; also, Boeing (BA: 61.60, -0.60, -0.96%) is investing in a fairly large manufacturing plant there, which could create some potential for income and job growth, says Cochrane.

As for Memphis, the city's largest employer is FedEx (FDX: 84.99, +2.06, +2.48%). Transportation services is one of the early industries to turn around as the economy recovers, says Cochrane, and that should support the area's housing market.

The economies of Tacoma and Seattle - which are neighboring cities - were "much stronger for much longer than much of the rest of the country," says Cochrane. Software giant Microsoft, based in Redmon, Wash., a Seattle suburb suburb, was one reason the area remained stable. Another was Boeing, which builds its commercial airplanes in Seattle.

Going forward, Seattle's position as a key hub of trans-Pacific trade should be a plus for the economy. Orders are increasing for commercial aircraft and it should see some rising demand for tech products, Cochrane says. The outlook for 2010 for the two Washington cities "is for fairly stable, moderate economic growth," he says.

For link to article, visit http://realestate.yahoo.com/promo/5-markets-expected-to-fare-best-in-2010.html

Happy New Year!

2010-01-07T09:52:00.000-08:00

We know it's been awhile since you've heard from us... but we've been busy! Over the next couple of weeks, we'll share some exciting news with you on new projects we're working on. We are all looking forward this new great year. As Bill Donahoe simply put it, "It could not be a brighter outlook for 2010!"

Quote of the Day

2010-01-07T09:51:00.001-08:00

The starting point of all achievement is desire. Keep this constantly in mind. Weak desires bring weak results, just as a small amount of fire makes a small amount of heat. -Napoleon Hill

Home sales on King County's Eastside lead December activity

2010-01-06T09:08:00.000-08:00

The median price of a house sold in King County last month was $380,000, down 5.8 percent from December 2008 — the last month the median topped $400,000.

By Eric Pryne
Seattle Times business reporter
January 5, 2010

Houses are selling way ahead of 2008's dreary pace all over King County.

And nowhere have sales increased more lately than on the Eastside, the county's most expensive area.

Consider these December numbers, released Tuesday by the Northwest Multiple Listing Service:

• Countywide, closed sales of single-family homes rose a healthy 57 percent from December 2008. On the Eastside, the bump was even bigger: 78 percent.

• Pending sales — accepted offers that haven't yet closed — rose 55 percent countywide, 81 percent on the Eastside.

• Closed sales more than doubled year over year in five of the 29 areas into which the listing service divides King County. Three were on the Eastside: Kirkland, Redmond and West Bellevue/Medina.

The Eastside's surge actually began in the fall, after a summer in which sales there stayed relatively flat compared with 2008 while sales began climbing in more affordable South King County and Seattle.

So what's happening east of Lake Washington? Real-estate professionals offer an assortment of possible explanations: increasingly flexible — or desperate — sellers. The continuing impact of federal tax credits. The improving stock market. Not to mention favorable interest rates.

'Sky not falling'

"Our buyers are realizing the sky is not falling," said Peter Hickey, owner-broker of Windermere Real Estate's Kirkland office.

While King County house sales in December exceeded the previous year's number for the seventh straight month, prices continued to drift. The median price of a single-family home that sold in December was $380,000, down 5.8 percent from December 2008 when it last topped $400,000.

During 2009 the monthly median fluctuated between $363,850 and $395,000, with no clear trend up or down. Median means half the homes sold for more, half sold for less.

But prices did rise year-over-year in December in a few scattered neighborhoods: Woodinville, Shoreline, Southeast Seattle, parts of Renton.

Across the Sound, in Kitsap County, the median price increased 8 percent.

In Snohomish County, the median house price fell nearly 10 percent year over year in December, to $287,000. But buyers also closed on nearly twice as many houses.

Glenn Crellin, director of the Washington Center for Real Estate Research at Washington State University, said he was "pleasantly surprised" by the December sales volumes throughout Western Washington.

He had anticipated a bigger drop from November, when many first-time buyers rushed to close to meet a deadline — later extended — to qualify for an $8,000 federal tax credit. In King County, the month-to-month decline was just 7 percent.

As for the strong sales on the Eastside, Crellin speculated they may be fueled in part by sellers with mounting financial troubles who now are willing to accept lower prices than a few months ago.

"I suspect there is some bargain-hunting going on in those neighborhoods," Crellin said of Kirkland and Redmond.

Hickey, the Windermere broker, said some high-end new homes on the Eastside that have languished on the market for up to two years now are receiving multiple offers.

Price cuts helped, he acknowledged: "We have motivated sellers who have come to grips with the fact that their houses are not worth 2006 prices anymore."

Sales may be increasing faster on the Eastside now than in South King County, the county's most affordable area, because buyers are willing to pay more to be closer to work, Hickey said.

Gerhard Ade, an agent in Coldwell Banker Bain's Kirkland office, said the Eastside continues to attract newcomers to the region who come to work for Boeing, Microsoft and Amazon.com.

The Eastside also may be attracting "trickle-up" buyers who have sold their houses elsewhere in the region to first-time buyers and are looking to relocate, he said.

But Mona Spencer, broker at John L. Scott's Redmond office, said first-time buyers remained a big part of the Eastside market in December, despite the extension of the federal tax credit to June 30. Most of the sales that her office closed last month were for less than $500,000 — starter homes on the Eastside, she said.

"I had two mutually accepted deals on Christmas Day, both to first-time buyers," Spencer said. "I'm seeing more activity. Our sales are up."

Buyers of more expensive homes have the most to gain by taking advantage of the lowest mortgage rates in the last 50 years. In December, the national average mortgage rate on 30-year fixed loans for less than $417,000 was below 5 percent, according to bankrate.com. Rates for loans for larger amounts hovered between 6 and 8 percent.

Link to article: http://seattletimes.nwsource.com/html/businesstechnology/2010703876_homesales06.html

Home sales jump in October, beating expectations

2009-11-23T14:33:00.000-08:00

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

2009-11-16T08:26:00.000-08:00

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

2009-11-10T07:57:00.000-08:00

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

2009-10-23T10:11:00.000-07:00

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

2009-10-22T07:38:00.000-07:00

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

2009-10-15T09:06:00.000-07:00

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!

2009-10-15T08:52:00.000-07:00

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

2009-10-15T08:51:00.000-07:00

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

Celebrate at Cascara in Redmond!

2009-10-09T08:39:00.001-07:00

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

2009-10-09T08:38:00.001-07:00

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

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

2009-10-05T14:00:00.000-07:00

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

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!

2009-10-02T11:33:00.000-07:00

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

2009-10-02T11:30:00.000-07:00

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!

2009-10-01T09:56:00.000-07:00

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

2009-10-01T09:53:00.000-07:00

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

Did you know?

2009-09-16T09:42:00.000-07:00

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!

2009-09-16T09:34:00.000-07:00

(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

2009-09-16T09:33:00.000-07:00

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

July pending home sales rise to 2-year high

2009-09-01T10:43:00.000-07:00

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

2009-08-26T07:54:00.000-07:00

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

2009-08-25T07:39:00.000-07:00

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

2009-08-21T08:03:00.000-07:00

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

2009-08-20T08:28:00.000-07:00

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

2009-08-18T08:55:00.000-07:00

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

Bill Donahoe on KKOL 1300 AM Sound Business

2009-08-18T08:51:00.000-07:00

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

2009-08-17T15:19:00.000-07:00

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

The $16,000 Mega-Stimulus from Quadrant Homes.

2009-08-17T11:29:00.000-07:00

The $16,000 Mega-Stimulus from Quadrant Homes. At 2x the government's offer, this deal even makes George Washington Smile!

We Cannot Tell A Lie... This Deal Even Makes George Smile!

Quadrant Homes is giving homebuyers $16,000 towards the purchase of a new home. Why wait to see if you qualify for Uncle Sam's stimulus when we guarantee ours!

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Quadrant Homes 8/13/09. QUADRANT HOMES is a registered trademark of Quadrant Corporation. MORE HOUSE.LESS MONEY. is a registered trademark. *$16,000 Mega-Stimulus Match Promotion is only available on pre-sale homes sold after 8/10/09 and cannot be combined with any other offers. Conditions apply. $5,000.00 paid to agent upon release to construction. Any remaining balance paid upon closing of home. Offer not available at cottages at Northwest Landing or for homes under 1,800 sq ft at Skagit Highlands.

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

2009-08-13T13:49:00.000-07:00

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

2009-08-13T10:44:00.000-07:00

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

2009-08-11T15:30:00.000-07:00

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

2009-08-07T08:36:00.000-07:00

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

2009-08-05T14:53:00.000-07:00

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

2009-08-05T14:49:00.000-07:00

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!

2009-08-05T09:29:00.000-07:00

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

2009-07-30T07:44:00.000-07:00

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.

For link to article, visit http://www.nytimes.com/2009/07/29/business/economy/29housing.html?_r=1&th&emc=th

Quadrant Homes ramps up new-home production

2009-07-28T07:45:00.000-07:00

Quadrant Homes, Washington's largest homebuilder, is increasing production in response to increased sales

By Eric Pryne
Seattle Times business reporter
July 28, 2009

The state's largest homebuilder says it's stepping up construction for the first time since the real-estate market collapsed in response to an uptick in new-home sales.

Quadrant Homes last month increased total production at its 14 developments in the Puget Sound area from two completed houses per workday to three, President Peter Orser said Monday.

That's still way down from the seven homes a day Quadrant was building in late 2007.

"But at least it's moving in the right direction," said Glenn Crellin, director of the Washington Center for Real Estate Research at Washington State University.

Quadrant's move also is consistent with national trends, he added: The Bellevue company's disclosure came the same day the Commerce Department reported new-home sales nationally increased 11 percent in June, the biggest monthly increase in more than eight years.

Some economists called it a sign the housing market has bottomed out.

"There are a few faint stirrings of life out in the marketplace," said Bill Hurme, president of new-home marketing firm Team Builder JLS. "Quadrant is the 800-pound gorilla in this market. Maybe they'll be the leaders, and the rest of us will follow along."

Orser said Quadrant generally doesn't start building houses until they are presold. He wouldn't provide sales figures, but said presales improved enough starting this spring to justify the production boost.

He attributed the sales increase to reduced prices; low mortgage-interest rates; Quadrant homebuyer incentives; and the new $8,000 federal income-tax credit for first-time buyers.

More than 85 percent of Quadrant's buyers during the first six months of this year were first-timers, Orser said.

They paid an average $277,000, and 78 percent paid between $200,000 and $300,000.

Quadrant now will have 162 houses under construction at its developments in King, Snohomish, Pierce, Kitsap, Thurston and Skagit counties on any given day — up from 108.

The increase should be good news for construction workers, hit hard by the housing meltdown.

The state Department of Employment Security reported this month that the number of residential-construction jobs in Washington dropped 23 percent between June 2008 and June 2009.

Some of Quadrant's subcontractors are hiring in response to the production boost, Orser said.

For example, Quadrant now will require an additional seven or eight framing crews of two to four workers each.

While he wouldn't provide specifics, Orser said Quadrant's price reductions generally have tracked the broader market.

The median sale price of a single-family home in King County has declined 18 percent over the past two years, according to the Northwest Multiple Listing Service.

Hurme, the marketing-firm president, said a shortage of lower-priced new houses may be starting to develop, especially in Snohomish County. Two of his builder clients there recently presold homes for the first time in 18 months, he said.

More developers would like to build lower-priced houses, Hurme said, but can't because they paid high prices for land.

At least two larger Seattle-area homebuilders — Conner Homes and Sound Built Homes — have lost King County developments to foreclosure this year.

Orser said sales at Quadrant's six projects in Skagit, Kitsap and Thurston counties are doing well, despite their distance from the region's major job centers.

Many buyers still are choosing to commute longer distances in return for more-affordable houses, he said.

Orser said he supports greater urban density. "But suburban single-family is still not only viable, it's being demanded by the marketplace," he said.

Quadrant stopped building and selling homes late last year at a 120-lot subdivision in Gig Harbor, in part because of slow sales. That project remains on hold, Orser said.

For link to article, please visit http://seattletimes.nwsource.com/html/businesstechnology/2009548598_quadrant28.html

June new home sales rise 11 percent

2009-07-27T10:46:00.000-07:00

New home sales in June posted the fastest increase in more than eight years as buyers took advantage of bargain prices, low interest rates and a federal tax credit for first-time homeowners.

By Alan Zibel

AP Real Estate Writer

WASHINGTON — New home sales in June posted the fastest increase in more than eight years as buyers took advantage of bargain prices, low interest rates and a federal tax credit for first-time homeowners.

While home prices are still falling, the figures released Monday were another sign the housing market is finally bouncing back. Earlier this month, the government reported that new home construction rose to the highest level since last fall. And data out last week showed home resales rose almost 4 percent in June, the third straight monthly increase.

"The worst of the housing recession ... is now behind us," said David Resler, chief economist at Nomura Securities. "We're turning the corner toward increased activity in housing."

New home sales rose 11 percent in June to a seasonally adjusted annual rate of 384,000, from an upwardly revised May rate of 346,000, the Commerce Department reported Monday.

Shares of big homebuilders soared on the news, with Beazer Homes USA up by more than 13 percent and Hovnanian Enterprises rising 8 percent in afternoon trading. But with home prices still falling, these companies won't be making much money anytime soon.

The median sales price of $206,200 was down 12 percent from $234,300 a year earlier and off nearly 6 percent from $219,000 in May.

In addition to lower prices, buyers are rushing to tax advantage of a federal tax credit that covers 10 percent of the home price or up to $8,000 for first-time buyers. Home sales need to be completed by the end of November for buyers to take advantage.

"The window of opportunity is closing," said Bernard Markstein, senior economist for the National Association of Home Builders.

June's results were the strongest sales pace since November 2008 and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 360,000 units. The last time sales rose so dramatically was in December 2000.

There were 281,000 new homes for sale at the end of June, down more than 4 percent from May. At the current sales pace, that represents 8.8 months of supply - the lowest level since October 2007. If that number falls to just over 6 months, analysts say, builders will feel more comfortable ramping up construction.

Fallout from the housing crisis has played a central role in the U.S. recession, now the longest since World War II. Foreclosures have spiked, homebuilders have slashed construction, and financial companies have lost billions.

But it will still be a while before homebuilders turn into an engine for the economic recovery. Construction levels are still weak because builders still have too many unsold homes sitting vacant.

For link to article, visit

http://seattletimes.nwsource.com/html/businesstechnology/2009545846_apusnewhomesales.html

Data show housing market starting to recover

2009-07-24T10:20:00.000-07:00

By Alan Zibel
AP Real Estate Writer

WASHINGTON -- The U.S. housing market has started to recover from the most far-reaching crisis since the Great Depression, data released Thursday show.

Sales of previously occupied homes rose for the third month in a row in June, the National Association of Realtors reported. That hasn't happened since early 2004, during the boom.

"The turnaround in the housing market appears finally to be here and indeed may be gaining some speed," wrote Joel Naroff, president of Naroff Economic Advisors Inc.

Stocks jumped on the news, with the Dow Jones industrial average rising above 9,000 for the first time since early January.

Home sales rose 3.6 percent to a seasonally adjusted annual rate of 4.89 million last month, from a downwardly revised pace of 4.72 million in May. Sales were up in all four regions of the country.

It was the highest level of sales since last October and beat economists' expectations. Sales had been expected to rise to an annual pace of 4.84 million units, according to Thomson Reuters.

In another encouraging sign, the share of foreclosures on the market is shrinking. About one out of three homes sold in June was foreclosure-related, down from nearly half earlier this year.

And the glut of homes up for sale dwindled to 3.8 million. That's a 9.4-month supply at the current sales pace and another important sign of a recovery. When the market balances at a 7-month supply prices should begin to stabilize, the Realtors's group said.

That probably won't happen until next year because of a backlog of foreclosures that have yet to come on to the market. The median sales price was $181,800 in June, down 15 percent from year-ago levels but up slightly from $174,700 in May.

Nevertheless, prices have risen for three straight months in about half of the 55 major metropolitan areas tracked by the Associated Press-Re/Max Housing Report, also released Thursday.

For link to article, visit http://www.seattlepi.com/business/1310ap_us_home_sales.html

WestView Ridge Model Home Grand Opening This Weekend!

2009-07-23T15:22:00.000-07:00

Come to WestView Ridge this weekend for the GRAND OPENING of our fully-furnished model home! We're located at 20th St SE and 75th Ave SE just off the Highway 2 trestle in Everett. Open Saturday & Sunday from 11am to 6pm. 7427 19th Pl SE Everett, WA 98205 425.263.9602 www.WestViewRidge.com

June housing construction rises unexpectedly to 7 month high

2009-07-17T07:37:00.000-07:00

Construction of new U.S. homes rose in June to the highest level in seven months, a sign builders are starting to regain confidence as they emerge from the housing bust.

By Alan Zibel
AP Real Estate Writer

WASHINGTON — Construction of new U.S. homes rose in June to the highest level in seven months, a sign builders are starting to regain confidence as they emerge from the housing bust.

The Commerce Department said Friday that construction of new homes and apartments jumped 3.6 percent last month to a seasonally adjusted annual rate of 582,000 units, from an upwardly revised rate of 562,000 in May.

That was better than the 530,000-unit pace economists expected, and the second straight increase after April's record low of 479,000 units.

In another encouraging sign, applications for building permits, seen as a good indicator of future activity, rose 8.7 percent in June to an annual rate of 563,000 units. Economists polled by Thomson Reuters expected an annual rate of 520,000 units.

The jump in housing starts reflected a more than 14 percent rise in construction of single-family homes.

Over the past three years, the collapse in the housing market led to soaring loan losses, a severe banking system crisis and the longest recession since World War II. Even with the better-than-expected figures, analysts don't expect a quick rebound in housing. That's because the economy is still shedding jobs and home prices are falling, making people hesitant to commit to buying a new home.

The National Association of Home Builders said Thursday that its housing market index rose two points to 17 in July, the highest level in nearly a year. Readings below 50 indicate negative sentiment about the market. The last time it was above 50 was April 2006.

While housing normally leads the economy out of a recession, a glut of unsold homes and a record wave of mortgage foreclosures dumping more properties on the market is expected to temper demand. Despite the rise in housing construction for June, activity still was 46 percent below the year-ago level.

For link to article, visit http://seattletimes.nwsource.com/html/businesstechnology/2009489272_apuseconomy.html

Announcing: The Bridges at Moses Pointe Auction

2009-07-15T13:46:00.000-07:00

9 waterfront condos on Moses Lake, WA
2 bedroom, 2 bath with den floorplans
Private deck or patio
Community swimming pool
Open for preview now!
Open house every Saturday 1pm to 3pm or by appointment
Opening bid starts at $199,900

For more information, including a video of The Bridges at Moses Pointe, please visit http://www.assetzoom.com/mosespoint.htm or call Cathy Strickland at 509.750.6460

Quote of the Day

2009-07-15T13:43:00.000-07:00

Great things are not done by impulse, but by a series of small things brought together. - Vincent Van Gogh

Veridian Cove on Kiro 7!

2009-07-15T13:23:00.000-07:00

Be on the lookout for the new Veridian Cove commercial on channel 7.

Studio from $149,990 • 1 Bedroom from $179,990 • 2 Bedroom from $235,990

300 North 130th St, Seattle
206.367.2823
Open Sat to Wed, 11am to 6pm

www.veridiancove.com

Home sales climb in June in King County; median price drops from year ago to $395,000

2009-07-06T12:59:00.000-07:00

Home sales increase attributed in part to the new $8,000 tax credit for first-time homebuyers.

By Eric Pryne
Seattle Times Business Reporter
July 6, 2009

Single-family home sales in King County in June surged to their highest level in nearly two years, according to statistics released today by the Northwest Multiple Listing Service.

A total of 1,655 houses closed last month, up 4 percent from the same month in 2008. It was the first year-over-year increase in closed sales since the local housing market peaked in July 2007, and the largest number of closings in the county since October 2007.

"The positive movement in our real estate market year-over-year is really very encouraging," Ron Sparks, managing vice president of brokerage Coldwell Banker Bain, said in a prepared statement.

He and other real-estate agents attributed the increase in part to the new $8,000 tax credit for first-time homebuyers. One broker said they account for about 40 percent of the market now.

Condo sales in King County continued to lag, with closings last month 18 percent below the June 2008 number.

The median price of a single-family house sold in the county in June was $395,000, down 12 percent year-over-year. Real-estate professionals noted the median price is up slightly since January — but it increased between January and June of last year as well.

The median condo price was $249,000, down 16 percent from last June.

Pending sales of King County single-family homes — offers that have been accepted by sellers, but haven't yet closed — were up nearly 25 percent year-over-year, the third consecutive monthly increase.

But, until June, closed sales had continued to trail last year's numbers, prompting some to wonder if the pending-sales increase was illusory. Agents attributed much of the disparity between and closed sales to "short sales" — offers sellers accept for less than they owe on the property — that are notoriously slow to close, and often don't close at all.

In Snohomish County, pending sales of single-family homes in June were up 37 percent year-over-year, and closed sales were nearly even. The median selling price was $307,000, down nearly 12 percent from June 2008.

For link to article, visit http://seattletimes.nwsource.com/html/realestate/2009424140_webhomesales06.html

Rates coming down for pricier mortgages

2009-07-06T10:52:00.000-07:00

By Aubrey Cohen
SeattlePi.com Staff
July 2, 2009

Brian and Sue McGee started looking to refinance their Maple Valley home last year because they wanted to move from their adjustable-rate mortgage to one fixed at current low rates.

"We were waiting for something to get into the 5 percent range," Brian McGee said last week.

The only problem was, rates on mortgages of the size they needed weren't quite so low. That's because their loan was above the $417,000 cap on the conforming loans that federally owned mortgage giants Fannie Mae and Freddie Mac will buy or guarantee.

While, so-called "jumbo" loans above the limit traditionally carry higher rates, Congress tried last year to narrow the gap for certain mortgages in high-cost areas by raising the cap to 125 percent of an area's median home price, up to $729,750.

The rates for this new category -- known as "jumbo conforming," among other names -- have only recently come close to those for standard conforming loans.

Here's a quick version of the short-but-complicated history of jumbo conforming loans.

Congress initially raised the conforming loan limit to 125 percent of a median home price in high-cost areas -- making the cap $567,500 in King County -- in March 2008 as a temporary measure through the end of that year.

But security traders decided the larger mortgages could not go in loan pools that are key to the secondary mortgage market. This meant the loans ended up in a their own, new category, rather than being just like any other conforming loan, and drew higher interest rates and more stringent restrictions.

One explanation for security traders' reticence to treat these like other conforming loans was that the higher limit was temporary. That's one reason why Congress eventually declared the increase "permanent," but only to 115 percent of median home price in high cost areas, up to cap of $625,500, starting in January. This put the cap at $506,000 in King County.

But security traders still wouldn't allow mortgage pools to have more than 10 percent of their value in the jumbo conforming loans, so rates remained notably higher.

Adding to the confusion, February's federal stimulus package raised the cap back to last year's temporary limit for the rest of 2009, although Fannie and Freddie didn't start buying mortgages up to the higher limit until May 4.

Rich Bennion, executive vice president of HomeStreet Bank, said the gap between rates on jumbo conforming and standard conforming mortgages has dropped from as much as 1.5 percentage points to around 0ne-quarter of a point in the past few months. A big reason for this is that Fannie Mae, which HomeStreet sells loans to, has started buying these mortgages individually, he said.

As a result, he said, HomeStreet's activity in conforming jumbo loans has quadrupled since mid March.

Greg McBride, senior financial analyst at Bankrate.com, also has noted that the rate spread has narrowed as extra restrictions eased for jumbo conforming loans since last fall.

"Borrowers can get a more competitive rate. That's a help to housing markets where home prices are higher than the national average," McBride said. "The lingering question is whether this is going to continue past 2009 and in what form."

Dick Lepre, senior loan officer at Residential Pacific Mortgage, in San Francisco, said jumbo conforming rates started getting attractive a few months ago, but only occasionally.

"It would be good for about a half a day out of every two weeks," he said. "Now what we see is sort of a uniformity to the difference between jumbo conforming and conforming."

Lepre said he didn't really understand why there should be any difference.

"Are these big mortgages inherently any riskier than $417,000 mortgages? I don't think so," he said. "The same underwriting standards are in place."

That said, Lepre didn't think eliminating the gap would make much difference to housing markets.

"It will support slightly higher real estate prices in places like San Francisco, L.A.," he said, "but not massively."

The narrowing of the gap did make a difference for the McGees, allowing them to close on a 30-year mortgage fixed at 5 percent in May.

"I'm real happy," Brian McGee said. "It just gives us a lot more comfort knowing that, no matter what happens with our economy, our rate is going to be fixed, and we're not going to have to fight with escalating interest rates in the future."

For link to article, visit http://www.seattlepi.com/local/407821_mortgage03.html

Tribute! - Call for nominations

2009-07-06T09:48:00.000-07:00

On September 30th, 2009 the TRIBUTE Awards will recognize new home sales professionals and teams for their innovation, creativity and tenacity in selling new homes over the past year. For more information and on-line nominations or a downloadable nomination packet, and to register for the event click here: http://thenewhomecouncil.com/page/call-for-nominations

Pending home sales up 4th straight month in May

2009-07-02T09:10:00.000-07:00

Pending home sales rose in May for the fourth straight month, spurred by low prices and a first-time homebuyers tax credit, fresh evidence that the housing sector may be recovering.

Seattle Times
July 1, 2009

WASHINGTON — Pending home sales rose in May for the fourth straight month, spurred by low prices and a first-time homebuyers tax credit, fresh evidence that the housing sector may be recovering.

The National Association of Realtors said Wednesday that its seasonally adjusted index of pending sales increased by 0.1 percent in May to 90.7. Analysts expected no change, according to Thomson Reuters.

While the increase was small, it followed a 7.1 percent jump in the index in April.

"The pronounced increase in April and the fact that May sustained this rise does indicate that actual existing home sales are poised to rise in the coming month or two," said Joshua Shapiro, chief U.S. economist for economic forecasting firm MFR Inc., in a note to clients.

The index, which tracks signed contracts to purchase previously occupied homes, is considered a barometer for future home sales. Typically there is a one- to two- month lag between a sales contract and a completed deal.

The index is now 6.7 percent higher than in May 2008, when it was 85. The last time it increased for four straight months was in October 2004, the NAR said.

Other recent housing indicators have been mixed. The Realtors said last week that completed home sales rose 2.4 percent from April to May, the third month-to-month increase this year.

But new home sales dipped 0.6 percent in May.

Separately, the volume of mortgage applications to purchase a home is effectively flat over the past four weeks, the Mortgage Bankers Association said Tuesday.

Still, low home prices and an $8,000 first-time homebuyers' tax credit, included in the Obama administration's stimulus package, are spurring greater interest among home buyers, the Realtors said.

On a regional basis, the pending home sales index rose 3.1 percent to 80.9 in the Northeast while also increasing 2.2 percent to 96.9 in the West. The index dropped 1.3 percent to 89.2 in the Midwest and fell 1.7 percent to 92.6 in the South.

For link to article, visit http://seattletimes.nwsource.com/html/businesstechnology/2009406162_appendinghomesales.html

Quote of the Day

2009-06-30T10:17:00.000-07:00

Ability is what you're capable of doing. Motivation determines what you do. Attitude determines how well you do it. - Lou Holtz

Departures: The Shore Thing

2009-06-30T08:40:00.000-07:00

Seabrook offers serenity by the sea

By Rob Bhatt
AAA Journey Magazine
July/August 2009 Issue

Seabrook may only be five years old, but its growing collection of Craftsman-inspired houses and cottages allow Washington state’s youngest “little place by the sea” to capture the essence of the great American small towns of yesteryear.

The remote village overlooks the ocean from a bluff about a mile south of Pacific Beach and currently consists of 122 vacation homes and rentals (the community’s master plan calls for up to 400 units). Inviting porches, narrow streets and bicycles lent to visitors encourage residents and guests to get to know each other, while the beach calls out to surfers and walkers.

Summer activities include day trips to Olympic National Park, building sand castles and evenings by the fire pit. Modern kitchens and a small market provide the ingredients for feasting, while the town’s café dishes out tasty food and good cheer.

For link to article, visit http://www.aaajourney.com/magazine/2009_0708/departures.asp

For more info on Seabrook, visit www.seabrookwa.com

July 4th: Man Cave Rod & Custom Show!

2009-06-29T14:08:00.000-07:00

Have a BLAST at the Man Cave Rod & Custom Show!
Join us for free food, fun and music!
Laugh your tailpipes off with Wolfman Mike!

8am to 2pm on the 4th of July!

Held at Garage Plus Storage: 2102 E Main St, Suite 110 in Puyallup

Free dash plaque for the first 200 cars and awards to be given out!

Awards presentation is at 2pm

www.ownamancave.com 877.875.PLUS

Renter Revolution Video Contest from Quadrant Homes

2009-06-26T10:42:00.000-07:00

Get it off your chest
Get it on our site
Get $1,000

Renter Revoution is a video contest for any renter who has a story to share. We've all been there; paying too much money for too little space with too much noise and too little peace. Tell Quadrant Homes why renting is a waste of time and money and we'll reward you for your time.

Quadrant Homes is giving away $1,000 to the video with the best landlord anecdote, best story about why you hate renting or get sentimental and talk about what a place to call home would mean to you.

Get it off your chest, get it on our site, get $1,000!

For full details - visit http://www.quadranthomes.com/revolution.php

Apex matches $8,000 gov't tax credit

2009-06-26T08:20:00.000-07:00

Low interest rates, zero down loans and the $8,000 first time homebuyer tax credit make right now the best time to buy at Apex Penthouses!

And for a limited time, Apex is matching the $8K government tax credit with every two bedroom condo purchase!

Visit www.apexpenthouses.com for more info!

Or call Marisa Nichols, community sales manager at 253.471.5202

*$8,000 matched tax credit used to buy down interest rate. Buyer must be first time homebuyer and purchase a two bedroom condo by August 23, 2009.

Veridian Cove: SUMMER SPECIAL on just 10 homes!

2009-06-25T07:57:00.000-07:00

Studio from $149,990
One Bedroom from $179,990
Two Bedroom from $235,990

SUMMER SPECIAL on just 10 homes!

Private trail access to Bitter Lake
Five acres of landscaped beauty
Clubhouse with kitchen, pool and spa
Fitness center with a yoga/pilates studio
Designer cabinetry & granite countertops
Immediate occupancy
FHA & VA financing available
Zero down programs
$8,000 first time homebuyer tax credit

300 North 130th St, Seattle • 206.367.2823

Open Saturday to Wednesday • 11am to 6pm

http://www.veridiancove.com/

*Available on select homes. Prices, rates, payments, loan amounts and available programs may vary and are subject to change. Restrictions apply. See site agent for details.

Windermere to show all companies' open houses

2009-06-25T06:00:00.000-07:00

By Aubrey Cohen
SeattlePi.com Staff
June 24, 2009

Windermere Real Estate's Web site will no longer list only its agents' open houses as of July 1, the company said Wednesday.

Windermere's site puts an "open" sign above mapped listings with upcoming open houses and allows users to search specifically for listings that have open houses scheduled. But it only shows open house information for Windermere listings, despite the fact that it shows listings in general from all agents in the Northwest Multiple Listing Service and the listing service allows agents to enter upcoming open house information into its system.

As of July 1, users will be able to see open houses for all agents in the listing service and save fliers for any listing in a portfolio of homes they want to visit, Windermere said.

"This new service is part of Windermere's on-going philosophy of providing buyers and sellers with the best possible experience," Windermere Chief Marketing Officer Jan Edmondson said in a news release. "Being able to see every open house in an area, regardless of who the listing agent is, makes it easier for people to find the house of their choice."

www.windermere.com

For link to article, visit http://blog.seattlepi.com/realestatenews/archives/172190.asp

Entertaining: The New Old-Fashioned Fourth

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

By Kate Calamusa
Seattle Magazine
July 2009

Eating hot dogs on street curbs lined with families in anticipation of a parade. Shorts-clad legs churning as they circle the bases during a spirited game of stickball at the local park. Neighborhood kids running outside to catch the first explosion of fireworks in the sky. There’s something about moments like these during an old-fashioned, small-town Fourth of July celebration that makes me feel like a kid again, and few places capture this nostalgia the way the town of Seabrook does.

A quaint new seaside development near Pacific Beach (about a two-and-a-half-hour drive from Seattle), Seabrook oozes small-town charm. Here, a community of beach bungalows takes you back to the time of front-porch conversations with your neighbors; a weathered lemonade stand sits on the side of a picket-fence-lined street, children spy tadpoles in the creek and campfire s’mores are a dietary staple.

Families are at the heart of Seabrook’s annual Fourth of July celebration, from a community parade that marches down the picture-perfect streets to the town’s special twist on the fireworks show. Instead of setting off fireworks, which are a fire hazard and prohibited in this wooded area, neighbors compete for the best Fourth of July porch-lighting decorations. Porches are clad in patriotic red, white and blue, and at dusk, thousands of light strings are switched on during an illumination ceremony that lights up the night sky. My husband, Brent, and I spent the weekend entertaining with Seabrook developer Casey Roloff, his wife, Laura, and their extended family. To join in the fun, I hung red and white lanterns to festively light up the porch, an easy tradition to start at your own home this year (especially if you never took down those holiday lights). I added my own modern, chic touches to the town’s natural charms to produce a Fourth of July celebration that is both contemporary and nostalgic.

Seabrook: A Town In The Making

When 36-year-old Casey Roloff lived on the Oregon coast a few years ago, he was always amazed at the number of Washingtonians coming to Cannon Beach to vacation because, as they told it, there was no place similar on the Washington coast. The developer, who already had success planning the coastal neighborhood Bella Beach by Lincoln Park, Oregon, made the trip north to rectify this dilemma, scouting out a parcel for the Seabrook community near Pacific Beach in 2001. Nestled up the bluff from the sandy beach, Seabrook homes, which are available to buy or to rent (seabrookwa.com), are designed in the classic beach bungalow style, with large porches and shingled siding. But for Roloff, perhaps more important than the throwback architecture is the sense of community at the development, which is still a work in progress. He’s designing public spaces—such as the new Lil’s Pantry grocery and the proposed town center with retail shops, art galleries and eateries—within a five-minute walk of homes to promote interaction among residents as they make their way through town. Neighbors gather around communal fire pits, share bicycles, and play shuffleboard and horseshoes. And get ready, kiddies: More amenities are to come, including an indoor community pool to debut sometime in summer 2010.

For link to article, visit http://www.seattlemag.com/0p120a1537/entertaining-the-new-oldfashioned-fourth/

Report: State has small under-supply of available homes

2009-06-24T07:42:00.000-07:00

By Aubrey Cohen
SeattlePi.com Staff
June 23, 2009

While developers are unloading unsold homes at auction, slashing prices and offering incentives such as low interest rates and cash bonuses, Washington doesn't actually have an oversupply of vacant homes, according a new report.

Washington had approximately 31,900 vacant homes last year but would have been expected to have 1,100 more than that, based on vacancy rates from 1999 to 2001, according to the 2009 "State of the Nation's Housing" report by the Joint Center for Housing Studies of Harvard University.

This means the state had an under-supply of owner-occupied homes of 0.1 percent. Just five states had a larger under-supply -- North Dakota, Wyoming, Oregon, New Mexico and West Virginia.

"We haven't built as many units in the past 10 years as we probably needed," said Glenn Crellin, director of the Washington Center for Real Estate Research at Washington State University.

Thank the state Growth Management Act, he said. "In a sense it protected our builders from our own excesses and, as a result, we don't have as large a supply of unsold new homes in the state of Washington as other booming markets had."

Those other boom states include Nevada, which had the largest oversupply (3 percent of owner-occupied homes) and Florida (second, with a 2.5 percent oversupply). Other states, such as Michigan, which tied with Florida, can pin their oversupply on a tanking economy.

So if Washington has an under-supply, what's with all the desperate sellers? The state's problem appears to be a lack of willingness and ability among potential buyers, not a lack of potential buyers, according to WSU's Crellin.

"I think at current sales rates we probably do have an oversupply, but I don't think it's going to take very much to bring our market back into balance," he said. "We've got folks doubling up a little bit, waiting for the conditions to turn around."

The Harvard report also added new perspective to how Seattle's boom and, so far, its bust have differed from those in many other areas.

The report shows that the area's median home price, as a multiple of median household income, shot up during the boom and has fallen back somewhat since peaking in 2007.

But Seattle's affordability ranking among U.S. metro areas actually improved during the boom, because affordability in other areas worsened faster, and has fallen since, because prices in other areas started falling earlier and have dropped further.

Crellin does not expect our price drops to catch up to those in harder-hit places.

"My expectation is that we're not going to see as significant a decline as some of the places like Las Vegas, Phoenix, parts of Southern California have to deal with, in large part because we didn't run up as much," he said. "We were not as far out of balance."

Looking nationwide, the report said rising mortgage interest rates and continued contraction in the economy would continue to hinder a housing recovery.

"Although there are some signs of improvement or at least steadiness in new construction and sales, housing starts stand near 60-plus-year lows, and any life in home sales is coming from distressed foreclosure sales, temporary first-time buyer tax credits and low interest rates," center Director Nicolas Retsinas said in a news release.

Inventories of vacant and for-sale homes are at near record levels, despite sharp decreases in housing production, center Executive Director Eric Belsky noted.

"The best that can be said of the market is that house price corrections and steep cuts in housing production are creating the conditions that will lead to an eventual recovery," he said. "For now, markets remain under considerable stress."

The report also noted that minorities have sharply higher unemployment rates, are more likely than others to spend more than half of their incomes on housing and are more likely to live in neighborhoods with higher foreclosure rates and bigger house price drops.

The number of households spending more than half their incomes on housing rose from 14 million in 2001 to 18 million in 2007 -- before the economy began to shed jobs, the report said. Among those in the bottom 25 percent of income earners nationwide, 51 percent of renters and 43 percent of owners spent more than half their income on housing. "As the report clearly articulates, for those who are already weighed down by unsustainable housing cost burdens -- that is, the lowest-income people -- the recession exacerbates the fragility of their housing," said Sheila Crowley, president of the National Low Income Housing Coalition. "We will see more homelessness as unemployment drags on."

The good news for the real estate industry is that demographics point to strong future demand, with the largest generation in American history reaching young adulthood in record numbers over the next decade. So, even if immigration falls 40 percent below the average of the first half of this decade (to just half of U.S. Census Bureau projections), household growth in the next decade should rival the solid increases between 1995 and 2005, the report said.

For link to article, visit http://www.seattlepi.com/local/407474_housing23.html

King County home sales rose faster than the nation's in May

2009-06-24T07:34:00.000-07:00

By Aubrey Cohen
SeattlePi.com Staff
June 23, 2009

King County saw a larger spring surge in existing home sales than the West and the nation as a whole in May, but compares less favorably by year-to-year change, according to a new report.

Sales of existing houses and condos in May were up just over 30 percent from April in King County, compared with increases of 6.6 percent in the West and 9.2 percent nationwide, according to data from the Northwest Multiple Listing Service and the National Association of Realtors.

But county sales were down 20 percent from May 2008, compared with an increase of 8.7 percent in the West and a 6.6 percent drop nationwide.

Seasonally adjusted numbers (not available for counties) showed sales up 2.4 percent nationwide and down 0.9 percent in the West from April. The adjustment compensates for the fact that more homes generally sell in May than in April.

The Realtors noted that seasonally adjusted monthly increases in April and May were the first such back-to-back gains since September 2005.

Analysts greeted the Realtors report with a yawn.

"While activity has stabilized, a meaningful recovery has yet to begin," wrote Paul Dales, U.S. economist with Capital Economics.

Patrick Newport, U.S. economist at the economic analysis firm IHS Global Insight, wrote that foreclosures, people selling to avoid foreclosure and (to a lesser extent) increased affordability are driving up sales, while weak demand pulls sales down.

"Distressed sales and improved affordability won the tug of war in April and May," he said. "But over the past seven months, the war has been a stalemate, as sales have hardly changed."

About one in three homes sold last month was a foreclosure or distressed sale.

Realtors association Chief Economist Lawrence Yun acknowledged in a news release that sales totals did not meet predictions.

"The increase in sales is less than expected because poor appraisals are stalling transactions," he said. "Pending home sales indicated much stronger activity, but some contracts are falling through from faulty valuations that keep buyers from getting a loan."

The Home Valuation Code of Conduct, which took effect May 1, cuts people responsible for originating mortgages off from the appraisal process.

Realtors association President Charles McMillan said the recovery depends on "realistic appraisals that are based on proper comparisons and done by a local specialist." He also called for expanding the federal $8,000 first-time buyer tax credit to all buyers and continuing it into 2010.

"Freeing a pent-up demand in housing will absorb inventory at a faster pace, strengthen communities and stabilize home prices earlier," he said.

Washington Realtors is trying to goose demand this weekend with a Statewide Open House event featuring more than 3,000 open houses statewide, including more than 1,200 in King County.

"This opportunity won't last forever as the housing market rebounds. We are seeing multiple offers again, especially with the more affordable homes," Keith Nelson, president of Seattle KingCounty Realtors and owner of Better Homes and Gardens Real Estate Executives, in Bellevue, said in a news release. "With only five months until the tax credit expires, the Open House weekend is an ideal chance to shop before the sale ends."

May sales were financed with mortgages negotiated when rates on a 30-year, fixed-rate loan averaged 4.8 percent. Subsequent increases, up to 5.38 percent last week, will blunt the impact of the tax credit, Newport said.

"We expect sales to sag over the next 12 months," he said. "In 2010, an improved economy and improved affordability will bring buyers into the market, and sales will start to rebound."

A National Association of Realtors survey in May showed first-time buyers accounted for 29 percent of sales with the number of buyers looking at homes up nearly 10 percentage points from a year ago.

"Investors appear less active, but are more prevalent in areas with large price corrections," Yun said.

The nation had a 9.6-month supply of homes for sale at the end of May, down from 10.1 months in April but still above the six months generally considered balanced between buyers and sellers.

That drop was "the best news in the report," said Joseph LaVorgna, Deutsche Bank's chief economist.

Still, the inventory figures don't reflect the large number of houses being held off the market by owners reluctant to sell while prices are so weak, noted Richard Moody, chief economist with Forward Capital.

King County had an 8.4-month supply in May, down from 10.6 months in April.

Nationwide the median price of an existing house was $215,700, while the median condo price was $214,600. That's down 14.1 percent and 18.5 percent, respectively, from a year earlier and up 3.5 percent and 1.7 percent from April.

In King County, the medians were $361,250 for a house and $259,000 for a condo, down 16.4 percent and 8 percent, respectively, from a year earlier and down 3.2 percent for houses and up 5.7 percent for condos from April.

Newport predicted nationwide prices would fall another 5 percent to 10 percent before rebounding in 2011.

For link to article, visit http://www.seattlepi.com/local/407518_HOMESALES23.html

U.S. existing home sales up by 2.4%, prices down 16.8%

2009-06-23T07:33:00.000-07:00

A real estate group says sales of previously occupied homes rose modestly from April to May, the third monthly increase this year, but signs of any housing recovery are fragile at best.

By Alan Zibel
AP Real Estate Writer
June 23, 2009

WASHINGTON — A real estate group says sales of previously occupied homes rose modestly from April to May, the third monthly increase this year, but signs of any housing recovery are fragile at best.

The National Association of Realtors said Tuesday that home sales rose 2.4 percent to a seasonally adjusted annual rate of 4.77 million last month, from a downwardly revised pace of 4.66 million in April. Prices, meanwhile, dropped by 16.8 percent from a year ago.

The results missed economists' expectations. Sales had been expected to rise to an annual pace of 4.81 million units, according to Thomson Reuters.

The median sales price plunged to $173,000, down from $207,900 in the same month last year, but up from $166,600 in April.

For link to article, visit http://seattletimes.nwsource.com/html/realestate/2009267386_apushomesales.html

May housing construction jumps by 17.2 percent

2009-06-16T15:39:00.000-07:00

By Martin Crutsinger
AP Economics Writer
June 16, 2009

WASHINGTON -- Construction of new homes jumped in May by the largest amount in three months, an encouraging sign that the nation's deep housing recession was beginning to bottom out.

The Commerce Department said Tuesday that construction of new homes and apartments jumped 17.2 percent last month to a seasonally adjusted annual rate of 532,000 units. That was better than the 500,000-unit pace that economists had expected and came after construction fell in April to a record low of 454,000 units.

In another encouraging sign, applications for building permits, seen as a good indicator of future activity, rose 4 percent in May to an annual rate of 518,000 units.

The better-than-expected rebound in construction was the latest sign that the prolonged slump in housing is coming to an end, which would be good news for the broader economy.

The current recession - the longest since the Great Depression - was triggered by a collapse in the housing market that led to soaring loan losses and a banking system crisis. A healthy home market is needed to support an economic recovery.

President Barack Obama is scheduled to unveil on Wednesday the administration's plan to overhaul financial regulation in an effort to crack down on the lending abuses that triggered the most severe upheaval in the nation's financial system in seven decades.

Even with the encouraging news, analysts don't expect a quick rebound in housing, since the economy is still shedding jobs and home prices are falling in many places, making people hesitant to commit to buying a new home.

Many economists say home construction likely will stop falling in the current quarter but any sustained rebound isn't expected to take hold until next spring. That's partly due to the huge overhang of unsold homes and a record wave of mortgage foreclosures dumping more unsold homes on the market.

With foreclosures and other distressed properties for sale at deep discounts, builders often can't compete. Rather than launching new developments, they are waiting for signs of a broader recovery. Many economists believe that home prices will keep falling until next spring and that sales won't start to show significant gains until the summer of 2010.

The 17.2 percent rise in housing construction for May still left activity 45.2 percent below where it was a year ago.

The jump reflected a 7.5 percent rise in construction of single-family homes, the third consecutive increase in this critical segment of the market.

Construction of multifamily units rose 61.7 percent in May to an annual rate of 131,000 units. This volatile part of the market plunged 49.4 percent in April.

Construction rose nationwide led by a 28.6 percent surge in the West. Construction rose 6.8 percent in the South and 11.1 percent in the Midwest. The Northeast had the smallest gain of 2 percent in May.

The National Association of Home Builders said Monday its housing market index slipped by one point in June, reflecting many builders' uncertainty about when their business prospects might improve. The Washington-based trade association said the index fell to 15. It was the first decline since January, when the index dropped to a record low of 8.

That report was "proof that the rise in U.S. mortgage rates lately is dampening activity," Jennifer Lee, an economist with BMO Capital Markets, wrote in a research note.

Earlier this month, major builders Toll Brothers Inc. and Hovnanian Enterprises Inc. reported smaller quarterly losses, rosier sales trends and more prospective buyers visiting model homes. Industry executives, however, say the recession and fear of job losses are keeping many would-be homebuyers on the fence.

For link to article, visit http://www.seattlepi.com/business/1311ap_us_housing_starts.html

The best and worst cities for recession recovery: Seattle poised for a rebound

2009-06-16T08:52:00.000-07:00

Ten cities poised for rebound- and 10 cities with a long slog ahead

Joshua Zumbrun
Forbes.com
June 10, 2009

WASHINGTON -- The three most important things in real estate: location, location, location. It's true for recovery from a real estate bubble too. Overall, many economists expect the national economy to return to growth later in 2009, perhaps as soon as this summer. But that won't be the case everywhere. While some cities are poised for a quick rebound, others face a slog to recovery that could take years.

Poised for swift recovery are many Texas cities, such as Austin, San Antonio, Dallas and McAllen. These areas did not see the massive real estate bubble that formed in states like California, Nevada and Florida. The economy is diverse, with heavy growth coming from education and health care in recent years.

Many of the cities with the longest road to recovery are California cities, where home prices rocketed out of control, and entire economies were supported largely by a real estate bubble. Fresno, Modesto, Salinas, Bakersfield, Stockton and Los Angeles all saw home prices soar to unsustainable levels and then begin their inevitable plunge. The collapse of the housing markets pushed unemployment rates in these cities above 10%.

Even as a flood of foreclosures makes home prices look affordable again, a sign that some of the worst real estate markets may be finding their bottom, it will still take years for unemployment rates as high as 16.8% in Modesto or 15.5% in Fresno to return to healthy levels.

To find the 10 cities that look best poised for recovery (and the 10 cities likely looking at the longest climb back), we examined estimates from data provider Moody's Economy.com of the projected gross domestic product of metropolitan areas across the U.S., as well as unemployment figures from the Bureau of Labor Statistics and home prices, incomes and affordability data from the National Association of Home Builders. Because, in general, healthy cities were not victims of as severe a housing collapse, home prices were not used in ranking the cities poised for recovery.

The analysis also shows the importance of a city's economic make-up. Manufacturing has been battered by the recession, leaving cities like Detroit and Flint, Mich., or Youngstown, Ohio, with bad unemployment and a changing economy that's unlikely to replace the lost jobs. Moody's projects the economy in Flint, for example, will decrease by 16% from the start of recession to the end of 2010. (One commonly cited rule of thumb for depression is a decline of 10%.) Flint might never return to its original size.

New York City, too, once the capital of finance, is now saddled with Wall Street-induced unemployment and homes that are completely unaffordable for most of the region's residents. The NAHB's Housing Opportunity Index reports that only 14% of homes in the New York-White Plains-Wayne area are affordable on the area's median income--by far the least affordable region measured by NAHB.

Cities with robust technology sectors are poised for stronger recoveries than manufacturing or finance centers. Cities with high-tech capabilities like Seattle, Huntsville, Ala., or Boulder, Colo., could see quick recovery in coming months.

Seattle-Tacoma-Bellevue, Wash.
Current GDP: $168.3 billion
End of 2010: $179.8 billion (projected)
Unemployment: 8%
Although battered by recession, the Seattle area's high-tech economy is poised to start growing again. Moody's estimates the economy will reach a new peak in the third quarter of 2009 and keep growing from there. Possibly hindering recovery is a still troubled home market--prices have fallen 16% in the past year, but homes are still expensive, which could slow a housing recovery.

For link to article, visit http://www.forbes.com/2009/06/09/recession-economy-cities-business-beltway-recovery-cities.html

For link to Seattle info, visit http://www.forbes.com/2009/06/09/recession-economy-cities-business-beltway-recovery-cities_slide_11.html

Quote of the Day

2009-06-16T08:34:00.000-07:00

This time like all times is a very good one if we but know what to do with it. - Ralph Waldo Emerson

Tax credit for all homebuyers gains support

2009-06-15T09:13:00.000-07:00

Since first-time buyers are getting thousands of dollars in tax credits from the federal government to stimulate the economy, why shouldn't all homebuyers get equal treatment? Congress is being asked to do just that.

By Kenneth R. Harney
Syndicated Columnist
June 13, 2009

WASHINGTON — Since first-time buyers are getting thousands of dollars in tax credits from the federal government to stimulate the economy, why shouldn't all homebuyers get equal treatment?

And what about refinancers — couldn't they make good use of a tax credit to help defray closing costs and loan fees?

Whatever your thoughts on these questions, there is an effort under way in Congress to extend tax credits to anyone who buys a new or existing home in the coming year, with no income limitations.

In one case, legislation would even create a new "temporary" $3,000 tax credit to help defray the costs of refinancing mortgages on principal residences.

Two Dallas-area congressmen — one a Democrat, the other a Republican — have introduced bills that not only would broaden the reach of the current housing tax credits to almost everybody but also would keep the program going until either mid-2010 or the end of that year. The current credit expires Nov. 30.

U.S. Rep. Kenny Marchant, a Republican who represents the suburbs between Fort Worth and Dallas, is pushing a bill that would expand the current $8,000 federal credit to buyers of all houses — not just first-timers — through June 2010.

The bill (HR 2619) would also create an unprecedented $3,000 credit to help offset "qualified refinancing costs" — closing fees, lender charges and the like — through next June.

In a statement, Marchant said his goals are to "jump-start new sales," "reduce the housing inventory" and "stabilize housing prices."

As to the refinancing credit, he said the idea is to encourage owners "to take advantage of current low mortgage rates" — cutting their monthly payments to stay out of financial trouble.

$3,000 refi credit

The $3,000 refi credit could be used to pay for loan "points," other transaction fees or to "put equity in their home if they're a little underwater."

Marchant's House colleague, U.S. Rep. Eddie Bernice Johnson, a Democrat who represents downtown Dallas, has introduced the Home Buying Credit Expansion Act (HR 2606), which would extend the current credit through Dec. 31, 2010.

The bill would also open the credit to all buyers of principal residences, but would not provide any new tax incentives to stimulate refinancings.

The near-simultaneous introduction of tax-credit expansion bills on Capitol Hill appeared to put the two most potent housing lobbies — the National Association of Realtors and the National Association of Home Builders — into a political quandary.

On the one hand, any broadening of tax incentives for homebuying would be good news for their builder and real-estate broker members.

On the other hand, any public perception that the expiration date for the current credit might be extended could cause some potential buyers to delay purchases.

And if all would-be buyers might be eligible for some future federal tax credit — not just first-timers — large numbers of consumers might just stay on the sidelines waiting for that better deal to come out of Congress.

A spokesman for the National Association of Home Builders said the group "does not want anything that would stop the traction the current (tax) credit is now getting. We think it would be more appropriate to address (an extension or other changes) closer to the credit deadline" in the months ahead.

But Mary Trupo, public-policy director for the National Association of Realtors, said her 1.1 million-member group sees it differently.

Why not for all?

"We say — if (the credit) is working for first-time homebuyers, then why not for all buyers, with no income limitations? We would like to see the expiration date extended (beyond Nov. 30). Expanding the credit is really the way to stabilize the (housing) market — by making it available to everybody."

Trupo said first-time buyers accounted for one-half of all purchasers in March — up from one-third in January — and that increase is directly attributable to the tax credit.

The association has no hard estimate of what effect opening up the credit to all buyers would have on total sales.

But Jed Smith, managing director for quantitative research, said earlier projections about the first-time-buyer credit ranged into the hundreds of thousands of additional sales.

Broadening the credit to all buyers would push the total higher.

Don't look for any immediate action on Capitol Hill.

The legislative calendar is jammed already, the budget deficit is at all-time levels, the summer recess looms, and neither of the tax-credit bill sponsors sits on the House Ways and Means Committee, which must originate all tax legislation.

But later this year, you can bank on it: There will be a big push to extend the housing tax credit — and maybe open it up to everybody.

For link to article, visit http://seattletimes.nwsource.com/html/realestate/2009331864_harney14.html

Lose the Rent!

2009-06-12T11:17:00.000-07:00

WHY YOU SHOULD BUY A HOME TODAY.

Here are a few things to consider:

Interest rates are at their lowest in decades.
Houses are more affordable than ever.
Buying a house may be a great way to start building wealth. When you rent, that money is gone forever.
Your mortgage interest is tax deductible.
First-time homebuyers may be eligible for a tax credit up to $8,000

www.losetherent.com

Master Builder's Association celebrates Centennial

2009-06-11T09:10:00.000-07:00

In 2009, our association proudly celebrates it's 100th anniversary.

During those hundred years our industry and region have undergone dramatic changes. Through times of adversity and success the home building industry has worked through the Master Builders Association to improve the quality and reliability of our products. We've gone from an industry of hand tools to power tools and now to computers and beyond.

The history of home building is intertwined with the history of our region. As lumber mills became malls, as fields gave way to factories and steam ships have been replaced by Dreamliners, our members built and eventually remodeled the homes we live in.

To celebrate this milestone and to look forward to our second century, we will be performing 100 community service projects, writing a book about our first 100 years, creating a centennial video, holding special events for members and speaking to local community groups and organizations about our history and the importance of housing to the region.

http://www.mbaks.com/

Man Cave Rod & Custom Show - Saturday, June 13th!

2009-06-11T08:47:00.000-07:00

Join us this Saturday June 13th, 2009 at Garage Plus Storage for the

MAN CAVE ROD & CUSTOM SHOW!

Click to view larger image!

http://www.garageplusstorage.com/
877-875-PLUS

King County home sale prices inch upward in May

2009-06-08T09:59:00.000-07:00

Puget Sound Business Journal
June 4, 2009

The median sale price of a home in King County inched upward to $351,500 in May from $350,000 in April and the average home sale price rose to $423,875 from $417,500 a month earlier.

The number of real estate closings in King County rose to 1,618 from 1,242 in April, according to data collected by the Northwest Multiple Listing Service (NWMLS), which collects real estate data from 19 Western Washington counties.

The number of pending home sales in King County also rose to 2,801 from 2,646 a month earlier. Across all 19 counties surveyed by the NWMLS, the median price rose to $280,000 from $270,000 in April and the average home sale rose to $329,680 from $316,979 a month earlier.

“Buyers who are waiting for prices to come down more have missed the bottom,” said Kathy Estey, a NWMLS director, in a statement.

For link to article, visit http://seattle.bizjournals.com/seattle/stories/2009/06/01/daily50.html?ed=2009-06-04&ana=e_du_pub

Inventory shrinking, sales rising, prices stabilizing in some Northwest MLS areas

2009-06-04T13:00:00.000-07:00

Northwest Multiple Listing Service
Kirkland, Wa
June 4, 2009

Waiting longer to buy a home is not likely to pay off, according to Northwest Multiple Listing Service director Kathy Estey after reviewing reports summarizing May activity. Estey pointed to shrinking inventory (about 20 percent fewer listings than a year ago), double-digit increases in the number of pending sales (up 17.7 percent from a year ago), solid open house activity, and signs of stabilizing prices (eight of the 19 counties in the report show price gains since January) as indicators of an improving market.

Northwest MLS brokers notched 7,160 pending sales during May. That total out-gained the year-ago tally by 1,075 transactions (up 17.7 percent) and improved on April’s total by 242 sales for a 3.5 percent increase. For the four-county Puget Sound area, pending sales jumped 21.5 percent from a year ago, rising from 4,526 to 5,498 transactions.

Buyers had fewer choices during May than at this time a year ago. At month-end, member-brokers reported 41,318 active listings throughout the NWMLS service area. A year ago, there were 51,817 active listings. Current inventory includes 11,278 single family homes and condos that brokers added during May. For the same month a year ago, brokers added 14,176 new listings to inventory.

Estey, the managing broker at the Bellevue Downtown office of John L. Scott Real Estate, said affordable homes inventory is down to the levels of a normal market and reaching for a sellers’ market. “Multiple offers are common in the under $400,000 range when the home is priced well, shows nicely and is marketed professionally,” she remarked. “Buyers who are waiting for prices to come down more have missed the bottom,” Estey believes.

Close in markets are the most active, with rural areas still lagging, but Estey says there is now some activity where little to none had existed in the first quarter. She believes prices have adjusted and completed new construction is still a very attractive purchase. “Builder inventory is being absorbed and there are fewer incentives. In January builders were giving away the farm, by March it was only half the farm and now they may just give away a chicken or two in order to make the deal.”

Prices are showing signs of stabilizing, according to NWMLS data. Prices area-wide are down around 10 percent from twelve months ago, but a comparison to January shows price gains in eight of the 19 counties in the NWMLS report. System-wide, prices for single family homes and condominiums that closed last month are up about 2.6 percent since January. In King County, prices dipped about 12 percent from twelve months ago and have declined about 3.5 percent since January, but a closer look shows considerable variation within sub-areas. Prices in southeast King County fell 20 percent from a year ago, but since January are down only about 2.8 percent in north King County.

Condominium activity remains slow. Pending sales are down about 15 percent from a year ago. The median sales price of $240,000 is about 7.7 percent lower than a year ago. Condos in King County sold for a median price of $270,450 last month, which compares to the year-ago price of $287,925, a drop of about 6 percent).

Demand for high-priced homes is also tepid. According to Estey, there are “amazing opportunities for buyers with good credit scores and 25 percent down payment in the $900,000- plus marketplace.”

“What we’re currently seeing is real estate’s version of Back to the Future,” said J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. He believes the combination of historically low interest rates, adjusted lower prices, and the $8,000 tax credit has created advantageous conditions for buyers that haven’t been seen in decades. He noted sales in the four-county area continue to see double digit increases. “The more affordable markets are seeing a major boost which is leading to higher sales in the mid-priced markets and causing some increases in activity in the upper end,” Scott remarked.

While cheered by the more vigorous activity, brokers note short sales and foreclosures continue to be a drag on the market. Such properties, often sold at deep discounts, may take extraordinary time to close once there has been mutual acceptance of an offer.

NWMLS director Meribeth Hutchings, broker/owner of Windermere Real Estate/Lake Stevens Inc., said her office represents the buyer of a short sale that has been pending since October. The buyers who hope to purchase the home in Mukilteo have been very patient, but are becoming less so and are ready to move from the small apartment where they have been living with two large dogs. “Every time we think we are getting close, the lender changes what they want,” Hutchings stated.

Another NWMLS director, Pat Grimm, reported similar experiences with a short sale. “We just closed one in Montlake on May 28 -- after the parties to the transaction reached mutual acceptance on Feb. 10, said Grimm, the owner/broker at Windermere Real Estate/Capitol Hill. (NWMLS defines a short sale as a transaction that does not produce sufficient funds to cover the existing monetary encumbrances against the property, closing costs, real estate commissions, and other financial requirements of closing.)

Tacoma broker Dick Beeson of Windermere/Commencement Associates said he has several agents deeply involved in handling short sales since Pierce County is so hard hit. He estimates around 25 percent of all properties for sale are either bank owned or short sale, and one of every three pending sales is one or the other.

“Short sales play a big role in what many buyers are looking for,” according to Beeson, who also noted these buyers often fail to realize the extraordinary length of time it takes to close a sale – generally twice as long as a conventional sale. “Many get discouraged after 60 or 90 days and withdraw from a sale, never having received notice form the underlying lender what they are willing to take for the property. Many properties end up going to foreclosure because of the inefficiency of the banks in providing answers to offers,” Beeson commented.

The recent uptick in pending sales, both locally and nationally, is a hopeful sign that we’re putting the worst of the market behind us, suggests Ron Sparks, managing vice president at Coldwell Banker Bain.

“As you would expect in a recovering market, not all neighborhoods are uniformly performing, and for home sellers particularly, there are plenty of challenges that remain.” However, he observed, “In many neighborhoods where just a few years ago broad affordability had all but vanished, lower prices, flexible terms and very low interest rates are pushing inventory absorption for single family homes to levels not seen since 2007.”

Sparks said multiple offers for the best listed properties are occurring everywhere, including Pierce and Snohomish counties. “Improving sales in one neighborhood helps dwindle inventory, and can push motivated buyers to search for homes in other neighborhoods. This process typically occurs before prices start to stabilize,” he explained.

Has that stabilization begun? “As my old Magic 8-Ball used to tell me: signs point to yes,” according to Sparks, who noted eight counties served by the NWMLS have seen price increases since January. “The sales volume in my Bellevue office is now roughly 10 times what it was in February, with expanded sales in almost every price category. Overall inventory levels have dropped substantially as well. Does this mean the optimal time for home buyers to take full advantage of favorable market conditions has passed? I’d probably defer that to the Magic 8 ball also…“Ask again later.”

Recent fluctuations in mortgage rates have brokers and buyers alike wondering if rates will escalate as inflation worries return.

“While rates now are wonderfully low, waiting has cost buyers. Loans recently available for 4.75% are now 5.25%,” according to broker Kathy Estey. On a $400,000 loan, that means the monthly payment rises from around $2,128 to about $2,253 – and increase of nearly $125. She believes it would be wise to act now for the best selection in the affordable homes. “Who knows if we will see rates of 5% or below again anytime soon,” she wonders.

Commenting on a recent report from the National Association of Realtors showing a third consecutive month of improving pending sales, Lawrence Yun, NAR chief economist, said buyers are responding to very favorable market conditions. “Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he said. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”

Northwest Multiple Listing Service, owned by its member brokers, is the largest full-service MLS in the Northwest. Its membership includes approximately 28,000 brokers and agents. The organization, based in Kirkland, currently serves 19 counties in western and central Washington.

QUADRANT HOMES SALE-ABRATION!

2009-06-03T09:28:00.000-07:00

For more info on the SALE-ABRATION, click here: http://www.quadranthomes.com/findyourhome/quickmovein.php

To learn about Quadrant's monthly prize drawing, click here: http://www.quadranthomes.com/agents/

www.quadranthomes.com • 866-78-HOMES

Pending home sales rise 6.7 percent in April

2009-06-02T14:32:00.000-07:00

The number of U.S. homebuyers who agreed to buy a previously occupied home took the largest monthly jump in nearly eight years in April, but there are still plenty of danger signs for the U.S. housing market.

By Alan Zibel
AP Real Estate Writer
June 2, 2009

WASHINGTON — The number of U.S. homebuyers who agreed to buy a previously occupied home took the largest monthly jump in nearly eight years in April, but there are still plenty of danger signs for the U.S. housing market.

Home sales appear likely to head upward this summer, potentially to levels not seen since the stock market collapsed last autumn, but prices are expected to keep falling well into next year. Layoffs, which are causing foreclosures to soar, coupled with rising mortgage rates could dampen any real estate recovery.

The National Association of Realtors said Tuesday its seasonally adjusted index of sales contracts signed in April surged 6.7 percent to 90.3, far exceeding analysts' forecasts. It was the biggest monthly jump since October 2001, when pending sales rose 9.2 percent.

The big boost likely reflects the impact of a new $8,000 tax credit for first-time homebuyers that was included in the economic stimulus bill signed by Obama in February. Since buyers need to complete their purchases by Nov. 30 to claim the credit, "we expect greater activity in the months ahead," Lawrence Yun, the Realtors' chief economist, said in a statement.

Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer for future existing home sales.

While economists are encouraged by signs that demand for housing is returning, the outlook is far from sunny. Mortgage rates are rising, making homes less affordable for many borrowers. The average rate for a 30-year, fixed-rate mortgage is around 5.3percent this week compared with about 5 percent last week, according to Bankrate.com.

Stock indexes advanced modestly in morning trading, but then traded in a tight range around the break-even point. Financial stocks fell after several banks announced plans to raise capital to help repay federal bailout funds.

The health of the U.S. housing market, mired in a three-year slump, is one of the key issues facing the economy. Though sales may be recovering, analysts cautioned that prices will take longer to stabilize because of the glut of unsold properties for sale. Prices are unlikely to rise until foreclosures start declining, and that's unlikely to happen before the end next year.

The national median sales price in April plunged more than 15 percent from year-ago levels to $170,200, driven by sales of inexpensive foreclosures and other distressed low-end properties. That was the second-largest yearly price drop on record, according to the Realtors' group.

Still unknown is the effectiveness of President Barack Obama's $50 billion plan to prevent foreclosures by modifying loans in bulk. Analysts are growing worried that it will not have a substantial impact.

"I haven't seen evidence yet of any significant modifications," said Mark Zandi, chief economist at Moody's Economy.com. "I was hoping that we would see more of a pickup."

The Realtors' index of pending sales contracts was 3.2 percent above last year's levels and has risen for three straight months after hitting a record low in January. A nearly 33 percent sales increase in the Northeast and a 9.8 percent jump in the Midwest led the overall surge. Sales contracts were flat or up slightly in the South and West.

Still, Yun cautioned that the pending sales data is more volatile than in the past. Many homeowners need to sell their properties for less than the balance they owe on their mortgages - a so-called "short sale" - which requires the lenders' approval. That process is often difficult, time-consuming and can fall apart before the deal closes.

For link to article, visit http://seattletimes.nwsource.com/html/businesstechnology/2008920611_apuseconomy.html

Quote of the Day

2009-06-02T08:37:00.000-07:00

The rung of a ladder was never meant to rest upon, but only to hold a man's foot long enough to enable him to put the other somewhat higher. - Thomas Huxley

Point Ruston sales center at Bell Harbor Marina - Pier 66!

2009-05-29T09:51:00.001-07:00

Open daily 11am to 5pm until June 3rd!
www.pointruston.com

View a historic ferry, buy a new condo

2009-05-28T08:15:00.000-07:00

By AUBREY COHEN
SEATTLEPI.COM STAFF

Point Ruston developer Mike Cohen came to visit Seattle this week, riding his sales center up from Pierce County.

"We knew we didn't want to put it in a mobile home or a trailer," Cohen said. "If you build a really nice sales center, it tends to always be in the way."

The solution was the former Motor Vessel Steilacoom ferry, which R. T. Wallace of Hado Inc., of Las Vegas, bought on eBay from Pierce County for $49,500 in 2007 and sold to the developer, who reopened it as a sales center in March 2008.

Capt. Tom Palmer, who was Pierce County's original captain for the ferry and served in the role for 20 years, drove the boat up to Seattle's Bell Harbor Marina, where it is scheduled to stay until June 4.

The ferry ended its public life as the backup boat on the run between Steilacoom and Anderson and Ketron islands but started out, in 1936, in Bath, Maine, as the Aquidneck.

It served the Navy during World War II, ferrying vehicles to and from Ford Island at Pearl Harbor and also hauling other items, such as torpedoes.

Pierce County acquired the boat in 1976 and booted it to its backup role in 1994, when a larger ferry, the Christine Anderson, went into service. Pierce County put the Steilacoom II, a sister ship of the Christine Anderson, into service in 2007.

Cohen covered over the carports with surplus Boeing aluminum and installed the sorts of things buyers see in any sales center: a kitchen with granite counters and stainless-steel appliances, hemlock floors and moldings, tile bathrooms and a room filled with all the available fixture, cabinet and tile variations.

But the old ferry benches remain upstairs, along with signs spelling out the rules for passengers. The original captain's wheel was already replaced with a joystick-controlled hydraulic steering system, but Cohen has bought an old wheel to put in for show.

There still is an old-fashioned metal funnel sticking up -- the kind used to draw air into a ship -- but that turns out to be an accoutrement Cohen added for effect. He tried turning on the old floodlights once, but blew a breaker.

Cohen saw the ferry as the perfect way to promote his development because the project is all about the water. It sits on 97 acres along one mile of Tacoma's shoreline, between North Ruston Way and Point Defiance Park.

The site is the former home to an ASARCO smelter and has undergone more than $100 million worth of cleanup so far.

The development plan ultimately calls for around 1,000 residences -- including condos, apartments, townhouses and detached houses -- along with offices, retail space, a movie theater, parks and a 10-acre waterwalk along the shore.

The first phase -- 143 homes in two buildings -- is now under construction. The development has 35 homes reserved or with purchase and sales agreements.

"We think we're outperforming the market," Cohen said.

For link to article, please visit http://www.seattlepi.com/business/406620_ferry28.html

Seattle on the Today Show's list of five markets most poised for a housing market recovery

2009-05-26T12:58:00.000-07:00

Barbara Cocoran, the Today Show's real estate commentator ranks Seattle at fourth on the list of five markets most poised for a housing market recovery.

See the video at the following link http://today.msnbc.msn.com/id/26184891/vp/30825142#30825142

Point Ruston arrives in Seattle tomorrow! Come visit!

2009-05-26T12:46:00.000-07:00

Click image for full size.

www.pointruston.com
253.759.8400

Quote of the Day

2009-05-19T07:40:00.000-07:00

The optimist sees the roses and not its thorns; the pessimist stares at the thorns, oblivious of the rose. - Kahlil Gibran

Point Ruston Broker Open: Thursday, May 28th!

2009-05-19T07:00:00.000-07:00

Join us aboard our historic ferryboat sales center, moored on downtown Seattle's waterfront for ONE WEEK ONLY!

Thursday May 28th • 11am to 2pm

Refreshments will be served.

Bell Harbor Marina - Pier 66 - Next to Anthony's Restaurant in downtown Seattle

www.pointruston.com

253.759.8400

Seabrook offers special: Buy 1 night - Get 1 FREE!

2009-05-18T14:17:00.000-07:00

On Washington’s Pacific Coast, the only rubber you’ll burn is on your beach bicycle or your flip-flops. Seabrook, a simple, scenic 2.5-hour drive from Seattle, is a new beach town near Olympic National Park, with pristine beaches, charming cottages and a friendly, village appeal.

If you’ve yet to hear of Seabrook, here is your chance to soak in Seabrook’s idyllic settings including beach cruisers, easy beach access, parks, playgrounds, shuffleboard, horseshoes, fire pits and on-site Northwest dining at Front Street Café.

For stays through the end of June*, Seabrook is extending a special Solution Partners NW Buy 1 night, Get 1 night FREE offer for a relaxing stay in one of their cozy beach bungalows.

To take advantage of the offer, simply browse the available cottages at http://www.seabrookcottagerentals.com/ then call us at 1-877-779-9990 and use the promo code ‘SPNW’.

For more information on Seabrook, including the New Urbanist town plan and traditional Northwest architecture, visit http://www.seabrookwa.com/.

*offer excludes holidays.

Man caves let guys hide out with friends and toys

2009-05-15T14:06:00.000-07:00

Trend: Husbands fine refuge in room for them

C.R. Roberts
The News Tribune
May 13, 2009

In the man cave you will find no open fire pit strewn with the gnawed bones of mastodons – although there might be a Jenn-Air grill over by the mini-fridge.

On the walls you won’t see fuzzy stick-figure depictions of woolly bison, but there’s undoubtedly a big-screen TV.

In the man cave.

Outside Port Orchard, Michael Von Ditter stores the majority of his collection of rare automobiles in his newly built version, once merely a two-car garage.

“My cars were in storage,” Von Ditter said last week. He had considered securing a hangar at Tacoma Narrows Airport as a place to store his collection, but he decided instead “to get this place built to where it was usable.”

The place of which he speaks – his own man cave – comprises a $200,000 project built by Tacoma designer Charley Boss.

“I specialize in whatever people want,” Boss said. “I like to do the unique.”

Here, that means granite countertops, porcelain tile floor, a 300-bottle wine cabinet, commissioned artworks, large-screen TV and for the cars a compressed air system and an electric lift that stacks cars one above the other – the Mercedes S60, Porsche Carerra GT, McLaren SLR, Ferrari F430 and Scaglietti GT, and more.

“I spend a quarter of my time here,” Von Ditter said.

He often invites his friends into the cave. “We drink beer, watch Formula One.”

“It can be as simple as 25-grand up to however much you want to spend, if you have a certain lifestyle,” said Boss.

He has designed other such places in the South Sound.

“I think it’s a trend,” he said.

“I get a lot of traffic,” said Michael Yost, founder of mancavesite.org, an online meeting place for people interested in the phenomenon. “It’s basically the West Coast, Southwest and Northeast. My largest traffic states are California, Texas, Washington and Pennsylvania.”

When he created the site just over a year ago, Yost said he received no more than a dozen hits a day. “Now,” he said, “we’re over 300. That’s consistent. I’m getting a new ‘cave display’ more than once a week. I see this growing as the word gets out. There’s guys that have these, and they don’t know where to go.”

Yost said the term “man cave” was coined in 1992 by a reporter writing a story on a man’s remodeled basement. It has since come to mean a space or a place – a basement, attic, garage, tree house, shed – where a man can go to be a man and be with friends, or be alone, to be himself in a manly way, whatever that might mean.

“I think there’s a few factors here,” Yost said. “It’s become so dangerous to go out and enjoy yourself, drinking on the road. Guys find you can have a lot more fun staying home, invite the neighbors.”

Perhaps it’s simply a matter of marking some territory.

“The kids move out and guys finally have a place to showcase all their prized possessions,” Yost said. “It’s to give guys a place to go. A lot of the guys are married, and usually the wife has the whole house. It’s a way for a man to carve out his little piece of the pie. It’s a place where a guy can hang up his stuff. The wife and the kids can come in – and I think wives are in favor of it. It isolates the mess to one part of the house. It isolates a guy’s stuff. When she has friends over, she doesn’t have to be embarrassed. Some real estate agents are marketing extra rooms for man caves.”

One South Sound firm – Garage Plus Storage – is doing more than that.

“Own a Man Cave,” says the firm’s billboard alongside I-5 in East Tacoma.

“A lot of guys want a place where they can work on their cars, hot rods, boats,” said Karen Kostner, Garage Plus sales manager.

The concept she sells is a hybrid of storage unit, man cave and condo, a 650-unit city of heated-floor, fully secure, 100-amped, 220-volt, cable-ready units ranging in size from 320 to 990 square feet and ranging in price from just over $50,000 to just under $175,000.

It’s out on the Mountain Highway near the Roy Y and the four owners plan to break ground on June 1.

“We have about 1,700 reservations on our e-mail list,” said Michelle Simon, a partner in the $15 million venture. “We’ve been selling for a month now.”

There are plans for a billiards table and big-screen TV in the clubhouse, she said, plus showers and bathrooms, and there’s a three-acre park.

All within a community of caves.

“Men want some degree of seclusion, where they can do what they want to do, to have the freedom to do what they want to do,” said Dave Schmidt, a University Place therapist with 35 years experience counseling both women and men.

“Whether it’s a house, or a room, or the side of a mountain, they want to feel free of society’s constraints,” he said. “It’s not a home away from home, but a home within a home, where you can be who you want to be.

“It’s like a favorite hiding place.”

For link to article, please visit http://www.thenewstribune.com/business/story/739937.html

For more information, visit www.garageplusstorage.com or call 1-877-875-PLUS.

King County homes most affordable they've been in five years, study says

2009-05-14T10:16:00.000-07:00

Another report has the area surging up the list of most expensive U.S. markets

By Aubrey Cohen
Seattlepi.com Staff
May 9, 2009

King County homes are the most affordable they've been in nearly five years, according to a new report.

The typical family made 102.5 percent of the income needed to buy the median-price resale home in the first quarter of this year, according to the new report by the Washington Center for Real Estate Research at Washington State University. First-time buyers still only made 57 percent of the needed income, the report said.

"Its reasonably affordable for a repeat home buyer," Center Director Glenn Crellin said. "It's still a real stretch for the first-time buyer, but better than it was."

Both numbers are the highest since the second quarter of 2004, when the typical family made 105.1 percent of the needed income and first-time buyers made 58.4 percent. The rates bottomed out in the third quarter of 2007, at 64.7 percent and 36.1 percent, respectively.

The center reported that the median price of a resale home in King County was $375,000, down 13.8 percent from a year earlier and 5.5 percent from the fourth quarter of 2008.

Sales fell by a seasonally adjusted annual rate of 15 percent from the prior quarter and 37.7 percent from a year earlier. The number of homes permitted for construction dropped by 68.9 percent from a year earlier (the report did not provide a seasonally adjusted quarterly change).

On Thursday, the Center for Housing Policy released a study saying the typical home in King, Pierce and Snohomish counties was not affordable to people making typical incomes in 59 of 60 jobs it examined.

Despite falling home prices last year, the area surged from being the 24th most expensive place to buy a home among more than 200 U.S. markets in 2007 to 13th last year, thanks to the fact that local home prices had not fallen nearly as much as those in many other expensive markets, the report said.

The Center for Housing Policy study compares wages for a single-income earner to the typical house price, Crellin noted. "Let's face it, the vast majority of home purchases are made by two-income households."

While construction manager was the only one of the 60 occupations that paid enough to afford the median area home price, many were over the halfway mark, meaning couples in those jobs could afford to buy.

The study was not asserting that people in these jobs should be able to afford the median-price home on their own, said Maya Brennan, research associate for the Center for Housing Policy.

Listing affordability by job can help show if, say, a teacher and police officer couple could afford the typical home, she said. "You get a sense of who exactly might be priced out of the market."

Policy makers then can consider whether these are jobs communities expect to need, Brennan said. She also noted that many families do only have one wage earner, and that's increasing with recent layoffs.

The Center for Housing Policy study defined affordable as monthly payments -- including principal, interest, taxes and insurance -- taking up no more than 28 percent income on a mortgage with a 10-percent down payment.

The Washington Center for Real Estate Research all-buyer index compared median family income to the median price and assumed a 20-percent down payment on a 30-year mortgage, with affordability as a principal and interest payment of up to 25 percent of income. The first-time buyer index used homes at 85 percent of the median price, household incomes at 70 percent of the median and a 10-percent down payment.

The Center for Housing Policy study said Seattle was the 52nd most expensive market for renters, up from 60th in 2007. It showed the U.S. Department of Housing and Urban Development's fair market rent for a two-bedroom apartment in the Seattle area at $987 a month, up from $854 in 2007. The study defined rental affordability as gross rent of up to 30 percent of hourly wage.

The study also noted that many of the jobs the federal stimulus package is creating do not pay enough to afford a home.

Many of the stimulus jobs are in construction, but home prices nationwide remain out of reach for carpenters, equipment operators, long-haul truck drivers and construction laborers, the study said. It said construction laborers also struggled to pay rents in three quarters of the U.S. markets studied, while equipment operators and long-haul truck drivers were unable to afford rents in approximately one-quarter of markets.

"Contrary to popular belief, the recent decline in home prices has not resolved the nation's housing affordability problems," Jeffrey Lubell, executive director of the Center for Housing Policy, said in a news release. "Working families -- including most of the workers who will be hired as a result of federal spending in the stimulus package -- still cannot afford to buy a home in most markets, and many also struggle to afford their rents."

The study shows the need for long-term solutions, said John McIlwain, chairman of the Center for Housing Policy, senior resident fellow at the Urban Land Institute and the institute's housing chairman.

"By acquiring well-located properties made vacant through foreclosure and by instituting policies that can ensure that a modest share of future development is affordable, communities can bring housing within reach of working families," he said.

In Seattle, carpenters averaged 44 percent of the $108,843 in annual income needed to buy a median-price home, and equipment operators, long haul truck drivers and construction laborers made even less, the study said. It found all of these workers except laborers made enough to afford a two-bedroom apartment, while laborer income was below even the one-bedroom level.

San Francisco remained the most expensive place to buy or rent at the end of last year, despite the median home price falling from $770,000 in 2007 to $575,000 last year. That area's rent was $1,658 a month last year, up from $1,551 in 2007. A

reas that went from being more expensive than Seattle for buyers in 2007 to less expensive in 2008 were: Los Angeles, San Diego, Santa Barbara, Oakland, Santa Rosa, Salinas and Vallejo, Calif., Bethesda, Md., Naples, Fla., and Cambridge, Mass. Seattle moved into a tie with Oxnard, Calif.

Saginaw, Mich., and Youngstown, Ohio, tied for the least expensive purchase markets at the end of last year, with a median home price of $73,000. Wheeling, W.V., was the least expensive rental market, at $577 a month.

Crellin's Center for Real Estate Research study showed all-buyer affordability below 100 percent only in pricey San Juan County and Wahkiakum County, which had so few sales that a disproportionate number of high-end sales skewed the index.

First-time buyer affordability was over 100 percent in six counties and between 90 and 99.9 percent in nine others.

The increased affordability does not mean prices are set to rebound this year, Crellin said. "The prices are going to continue to exhibit some weakness."

That's especially true in middle and upper price ranges, where inventory remains high, he said. "I think that the stimulus and tax credit is going to help stabilize the bottom of the market, where we've seen the biggest problem so far."

Crellin reported that King County now has 18 months worth of supply -- the number of homes for sale divided by the current sales pace -- priced at $500,000 and up.

There's a 7.2-month supply of lower-priced homes, he said. "That's pretty much a balanced market."

For link to article, please visit http://www.seattlepi.com/local/405978_affordability07.html

Come visit the WestView Ridge Sales Center!

2009-05-08T10:30:00.000-07:00

We have a full sales center open for you to enjoy! Everything you need to know about WestView Ridge - it's all here for you to check out!

We're open weekends from 11am to 6pm and Monday to Wednesday from 12pm to 6pm.

Directions: From I-5, take Hwy 2 over the trestle and head up the hill on 20th Street SE. Take a left into the community at 75th Avenue SE.

We hope to see you soon!

425.263.9602 • www.westviewridge.com

Pending sales of single-family homes in King County surged in April

2009-05-06T09:49:00.000-07:00

Pending sales of single-family homes in King County surged in April, the Northwest Multiple Listing Service says.

By Eric Pyrne
Seattle Times business reporter
May 6, 2009

If the Seattle residential real-estate market is coming back to life — and that's still a big if, despite a relatively upbeat monthly report Tuesday — it's because of people like Lori Gifford.

She and her fiancé, Scott Brush Goodwin, bought their first house last month. It's a two-bedroom, one-bath former rental in the Arbor Heights neighborhood that the previous owner lost last year through foreclosure.

Goodwin and Gifford paid Washington Federal Savings $249,000 for it.

"I've been living in Seattle for 14 years, and I never really thought I could afford to buy a house," Gifford says. But when they started looking this spring, "it all kind of came together," she says.

The key elements: Lower prices. Lower mortgage-interest rates. And new incentives for first-time buyers.

The Northwest Multiple Listing Service reported Tuesday that pending single-family home sales in King County topped 2,000 in April, the first month that level has been reached since August 2007.

Pending sales — offers that have been accepted, but haven't yet closed — were up 25 percent from March, and up nearly 15 percent from April 2008.

Sales numbers were even stronger in Snohomish County, up 28 percent year over year.

Brokers said homes at the lower end of the price spectrum accounted for a disproportionate share of the surge, as did sales to first-time buyers. "Right now it's a lot busier than it was last spring," said Desiree Loughlin, associate broker at Windermere Real Estate's West Seattle office, who represented Gifford and Goodwin.

Mike Skahen, broker with Lake & Co. in Seattle, agreed. "This is the most positive market we've had in almost two years," he said. "It's been so bad."

The median price of a house sold in King County in April was $380,000, down 15 percent from April 2008. Still, that number was higher than the median price in February or March, and some brokers said it could be a sign that prices are stabilizing as demand picks up.

But sales of higher-priced homes remained sluggish, they agreed.

The median price of a condo that sold in King County in April was $250,000, down 11 percent year over year. Pending condo sales were up 42 percent from March, but down 8 percent from last April.

Pending sales usually close a month or so after offers are accepted. But the number of closed single-family home sales in King County in April — 1,004 — represented just 60 percent of the pending sales reported in March, an unusually low share.

Skahen and Matt Deasy, general manager of Windermere's Eastside operations, said that's probably because of the large number of "short sales" — sales for less than the amount the owner owes to lenders — now in the works. They can take three to four months to close, the brokers said.

Loughlin estimates short sales and bank-owned homes account for 20 percent of all sales in West Seattle.

She met Gifford and Goodwin at a seminar she hosted in January for prospective first-time buyers. The couple had looked at houses in the fall, but couldn't find anything they liked in their price range.

When they started looking again this spring, the difference in prices was "jaw-dropping," says Goodwin, who works for a travel company.

Their new house is small — 820 square feet atop an 820-square-foot unfinished basement. But it sits on a huge lot, nearly half an acre, with a peekaboo view of Puget Sound.

The land was a big part of the property's appeal, Gifford says. There's room for a workshop, maybe a greenhouse, maybe a deck someday.

The house itself has a new roof and recently remodeled kitchen, but "it looked as if people had trashed the place," Gifford says.

To qualify for the Federal Housing Administration financing they wanted, Gifford and Goodwin had to patch some walls, install gutters and make electrical repairs. But they recouped much of that expense from the bank at closing.

And, according to county records, the price they paid is just $14,000 more than what the owner who lost the house to foreclosure paid for it — in 2002.

Gifford and Goodwin closed and moved in several weeks ago — just in time to welcome their first child. Haven Goodwin was born last Tuesday.

For link to article, please visit http://seattletimes.nwsource.com/html/businesstechnology/2009180657_homesales06.html

The Continental Condos introduces a BLOG!

2009-05-05T13:44:00.000-07:00

Visit http://www.thecontinentalcondos.com/blog/ to view The Continental Condos blog!!

Learn about the history of the building.
Discover how the homes have been lovingly-restored.
Be the first to hear of upcoming events.
and much more!

SPNW is very excited to follow The Continental Condos blog and we hope you enjoy it as much as we do! The Continental - Boutique Living at Bellevue Square!

Pending home sales jump 3.2%

2009-05-04T14:56:00.000-07:00

Buyers defy expectations with an increase in sales contracts signed during March.

By Les Christie, CNNMoney.com staff writer
May 4, 2009:

NEW YORK (CNNMoney.com) -- Is the housing meltdown ending?

Pending home sales rose in March for the second consecutive month and are up year over year. The Pending Home Sales Index from the National Association of Realtors showed a 3.2% gain to 84.6 from February, when it was 82. The index stands 1.6% higher than a year ago.

The consensus forecast of industry experts polled by Briefing.com had predicted no increase in the index.

It may still take a while before the market gains enough momentum to firmly state that the downturn has been reversed, according to Lawrence Yun, NAR's chief economist. And, the upturn may have been boosted by the first-time homebuyers tax credit, a temporary measure that will lapse in December.

"We need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around," said Yun. "This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions and an $8,000 tax credit, which increases buying power even more in areas where special programs allow buyers to use it as a down payment."

The index is understood to be a forward indicator of home sales trends since it measures contracts signed, not completed sales. The up-tick may indicate that home prices have fallen low enough for buyers to get off the fence.

Feeling for the bottom

Yun is not calling a bottom yet, however, because the index is still at a relatively low level. Instead, he's looking toward the summer selling season to determine what direction the market will take. Plus, he would like the number of homes on the market to drop to a more normal level of six to seven months of supply.

"If inventory goes down - it's at just under 10 months now - to below eight months, that would mean we're on the way to a sustainable recovery," Yun said.

Anecdotal evidence indicates that trend may be happening. Realtors and other industry insiders are seeing rising open house attendance and multiple bids on some particularly desirable properties. Plus, pricing has become sharper, according to Sherry Chris, the CEO of Better Homes and Gardens Real Estate.

"Overpricing seems to be ending," she said. "Properties are coming onto the market and selling quickly."

And buyers are feeling a little more urgency, she added. In many markets, buyers have not felt any pressure to make an offer. "They said to themselves, 'I don't have to act immediately. It will still be on the market two weeks from now,'" she said. Today, buyers are more likely to bid because they perceive the market as at or near its bottom. An April Gallup Poll reported that 71% of Americans thought it was a good time to buy a house.

They don't, however, believe there will be price increases soon; three of four buyers think prices will stabilize or even decline in their areas over the next 12 months, according to Gallup.

Pat Newport, a real estate analyst for IHS Global Insight, is putting less emphasis on pending home sales than he once did for his housing market analyses. There has been a disconnect lately, he said, between the number of properties going into contract (pending home sales) and the number that actually close (existing home sales).

He speculates that this is because buyers are making offers and signing contracts but, because of financing problems, many deals are falling through.

Regional differences

The South saw the largest gain of any region, with pending home sales jumping 8.5%. Pending sales are 7.7% higher there compared with a year ago.

The Midwest gained 3.9% from February and 1.7% year-over-year. Northeast sales fell 5.7% and are off 24.1% compared with March 2008. The West dropped 1% for the month but are up 8.2% year-over-year.

Low home prices continued to help to drive sales, although NAR's affordability index actually fell 2.3% from February, when it hit a historic high. This index is based on family income, home prices and mortgage rates.

"Compared to a year ago, the typical family can pay much less in mortgage costs for the same home, or buy a better home without necessarily increasing their monthly payment," said NAR President Charles McMillan, in a prepared statement. "For buyers who've been on the sidelines and have good jobs, the market has never looked more favorable."

For link to article, please visit

http://money.cnn.com/2009/05/04/real_estate/March_pending_home_sales/index.htm

Solution Partners NW is on Facebook!

2009-05-01T09:38:00.000-07:00

Solution Partners NW is on Facebook!

Follow this link to see our page! Add us as your friend! http://www.facebook.com/people/SolutionPartners-Nw/1164296190

Many of our communities are also on Facebook. You can find them on our Solution Partners NW Facebook page under our info tab! Become a fan!

Quadrant Homes invites you to a FREE CENTER STAGE workshop!

2009-04-30T13:49:00.000-07:00

Wells Fargo is hosting an entirely free live event for realtors on May 9th at Qwest Field in the Wells Fargo Club Level Suite which includes a breakfast. Terry Watson is going to meet/greet and speak to realtors. Please indicate that Quadrant Homes referred you!!

The clickable button does not work in our blog so please follow this link to RSVP - https://www.wfhmconsumerevents.com/aspx/splash/FirstStop.aspx

Click the flyer image below to enlarge.

Quote of the Day

2009-04-30T13:41:00.001-07:00

When you know a thing, to hold that you know it; and when you do not know a thing, to allow that you do not know it - this is knowledge. -Confucius

WestView Ridge - First Broker Open!

2009-04-30T08:38:00.001-07:00

Join us this Friday May 1st for the first broker open at WestView Ridge! Stop by between 11am and 2pm, tour our fabulous new community and enjoy some drinks and snacks.

Our sales center is located on 75th Avenue SE off of 20th Street SE. From I-5, follow Hwy 2 over the trestle and up 20th Stree SE. Take a left on 75th Avenue SE into WestView Ridge.

We hope to see you there!

MLS #29058798
425.263.9602 • www.westviewridge.com

Apex Penthouses announces new DOG PARK!

2009-04-29T08:03:00.000-07:00

As an added NEW amenity exclusively at Apex Penthouses - a private, secure and clean Doggie Park! We will have a fully enclosed approximately 22'x22' area with a dog run, fake fire hydrant, water dish and some play toys. There will be a sitting area for residents or they can watch their pet from just inside the door if its raining!

2424B South 41st Street • Tacoma, WA 98409 • 253.471.5202 http://www.apexpenthouses.com/

Man Cave Open House - Saturday May 2nd!

2009-04-28T13:02:00.000-07:00

Home prices post 18.6 percent annual drop in Feb.

2009-04-28T10:50:00.000-07:00

In another sign the housing crisis could be reaching the bottom, home prices dropped sharply in February but for the first time in 25 months the decline was not a record.

By J.W. ELPHINSTONE
AP Real Estate Writer

NEW YORK - In another sign the housing crisis could be reaching the bottom, home prices dropped sharply in February but for the first time in 25 months the decline was not a record.

The Standard & Poor's/Case-Shiller index released Tuesday showed home prices in 20 major cities tumbled by 18.6 percent from February 2008. That was slightly better than January's 19 percent and the first time since January 2007 the index didn't set a record.

But the good news was mixed. All 20 cities in the report showed monthly and annual price declines, but half recorded annual records. Prices fell by more than 10 percent in 15 cities, including Las Vegas, San Francisco and Phoenix. In fact, Phoenix home prices have lost more than half their value since peaking in July 2006.

Yet, nine of the metros - including Dallas, Denver and Boston - showed improvement in their yearly losses compared to the month before.

"We will certainly need a few more months of data before we can determine if home prices are finally turning around," said David M. Blitzer, chairman of the S&P index committee. Rich Patterson, a Dallas RE/MAX agent, said in the last two months he's seen a lot of first-time homebuyers interested in homes up to $250,000. He attributes the increase to low interest rates and the $8,000 tax credit.

"The buyers are still getting good deals, but they're not stealing properties," said Patterson, noting that sellers are cutting their asking price about 4 percent to snag a deal.

Last week, home sales data for March also contained some glimmers of hope for a turnaround. Existing home sales fell just 3 percent from February to March, and new home sales seemed to have hit bottom.

Consumers overall are becoming more optimistic about the economy. The Conference Board said Tuesday that its Consumer Confidence Index jumped more than 12 points to 39.2, blowing past economists' expectations of 29.5.

For complete article, visit http://seattletimes.nwsource.com/html/nationworld/2009136476_apushomeprices.html

Introducing... Tenth & State!

2009-04-23T09:57:00.000-07:00

Lexington Fine Homes presents

Located within Kirkland’s Moss Bay neighborhood is a quiet, gated enclave of 7 individual new homes. Each new home is a unique reflection of all the best of Kirkland, without the hassle of landscape upkeep. Walkability is paramount with this central location. The extensive Kirkland waterfront, with ample outdoor activities and an artsy ambience for those that enjoy life in the northwest is just outside your front door at Tenth & State. Priced from $1 million.

For more information, please visit www.lexingtonfinehomes.com or call Mark Smith at 206.949.9106

Marisa Nichols gets rave reviews!

2009-04-22T11:00:00.000-07:00

The SPNW team knows what a great job Marisa does as community sales manager at Apex Penthouses. But, it's great to hear it from a buyer! "I felt compelled to write you an email regarding Marisa, and what a wonderful job that she has done with the sale of this condo.
Marisa always made a concerted effort to fix any problems and make sure that I was happy. She has definitely made this process a lot easier and has either answered or gotten an answer to any question I had and both worked late and come in on her days off to accommodate my schedule. There are several things that I would like to have done in the condo and she has more than made herself available to me to let me and the prospective people that I would have do the work into the condo so that I could get estimates on what I wanted to have done which definitely made life a lot easier.

At any rate, I just wanted to write this to you and let you know what a wonderful job that Marisa has done and continues to do and if it had not been for her, I don’t think probably that I would have purchased at Apex. I also feel really good about referring my friends to Apex because I know that Marisa will take really good care of them." - Future homeowner at Apex Penthouses

Thanks Marisa for all you do!

Apex Penthouses
2424B South 41st Street • Tacoma, WA 98409
253.471.5202
http://www.apexpenthouses.com/

Glen Williams Promoted!

2009-04-21T08:32:00.000-07:00

Congratulations Glen on your recent promotion to Selling Sale Manager at Veridian Cove! Glen has proven to be a very valuable team member and we look forward to his continued success. We all are very excited and look forward to his contributions. Nice job Glen!

Veridian Cove
300 N 130th St • Seattle, WA
206.367.2823
http://www.veridiancove.com/

SPNW welcomes new member to our family!

2009-04-17T10:54:00.000-07:00

We are excited to announce the arrival of Tyson Andrew Trang on April 14th, 2009 at 7:45am, weighing 6lbs 10 ounces.

Congratulations to Christian, Maryanne, and big sister Kayla!