Jackie's Puget Sound Homes & Land Blog

Best Cities 2010: Seattle, Wash. – Kiplinger

racyeo — Wed, 26 May 2010 18:41:01 +0000

Best Cities 2010: Seattle, Wash. – Kiplinger

It’s just amazing…

racyeo — Mon, 18 Jan 2010 19:43:39 +0000

what has happened to real estate prices. The Greater Puget Sound early on in this real estate crisis seemed to be insulated a bit from the rest of the country. We read about what was happening in Florida, Nevada, and other places and just shook our heads and said thank goodness it’s not happening here. I don’t think that’s the case anymore. Probably a day doesn’t go by where I don’t see a home that is in short sale or foreclosure going for a fraction of what it would have cost even a few years ago. It’s happening all over the region too. From Port Orchard where you can buy a 2000 sq ft home on an acre or better for under 200k to Mercer Island where waterfront and view properties with 4000 sq ft newer homes are going for previously unheard of prices.

Here’s another…some condos at Westport by the Sea in Westport, Washington on the coast are selling for 1/3 of their assessed cost. These are beautiful 1 or 2 bedroom units, beachfront, granite countertops, newer construction falling into short sale or foreclosure and almost being given away.

My heart goes out to all those who are trying to sell, who bought at the peak and had the rug pulled out from under them.

Home Buyers Face Tax-Credit Delays

racyeo — Fri, 15 Jan 2010 18:44:02 +0000

Home buyers who purchased a property after Nov. 6, 2009, when the extension and expansion of the first-time and move-up home buyer tax credit took effect, have reportedly been unable to get their rebates—or even file for them—because paperwork isn’t available.

Robert Dietz, an economist with the National Association of Home Builders, says the delay is apparently caused by the Treasury Department’s inability to quickly create new documentation that filers could use to prove they actually bought a property.

Previously, all a home buyer had to do was file a form that said they’d purchased a property. No proof was required. As a result, there were thousands of reports of fraud. This time around, the IRS is seeking ways to force home buyers to prove their eligibility.

Mary Mellem of David & Mary Mellem, EAs & Ashwaubenon Tax Professionals, says it probably will be another three months before the problem is resolved.

Source: CNNMoney.com, Les Christie (10/14/2010)

Rates to go up quickly??

racyeo — Wed, 06 Jan 2010 20:27:20 +0000

In Wednesday’s Stop Trading!, Cramer gave calls on the auto industry, plays on changes in airport security, and perhaps most importantly, his perspective on when interest rates will be raised. Interest rates to go up this year, or will the second half of the year, are rates set to go up? Cramer’s predicting that once the Federal Reserve is finished buying mortgage backed securities, “interest rates will go up pretty rapidly.” He also thinks that for anyone who hasn’t locked in a mortgage rate, now is the time to refinance for a fixed rate, as a hike is clearly in the future. Cramer predicts that mortgage rates could climb to 6% in April, and suggests that home owners do not want to be subject to such large increases.

Time to buy in 2010?

racyeo — Sat, 02 Jan 2010 00:26:52 +0000

According to the National Association of Realtors, last month we experienced a 7.4% jump in home resales. This is in all categories of homes from single family homes to condos and townhomes and it is occurring at all price points too from low to high priced properties. Even more interesting, sales are up in every region of the country but highest out here in the west.

Unsold inventories are down more than 16% from where they were a year ago. With low mortgage rates, tax credits and well priced properties, it’s a great time to be a buyer.

Be forewarned though, mortgage rates will most likely rise in 2010. Note that the Wall Street Journal reports that Federal Reserve chairman Ben Bernanke has refinanced out of an adjustable-rate loan on his Washington D.C. home and into a more secure 30 year fixed rate around 5 percent.

Puget Sound market stabilizes

racyeo — Fri, 04 Dec 2009 16:44:46 +0000

KIRKLAND, WA, December 3, 2009 – Home sales continued to outperform year-ago totals and prices continued to show signs of stabilizing, according to the latest report from Northwest Multiple Listing Service. Brokers credit move-up buyers as one factor for the positive activity.

“This winter will not be ‘business as usual’ for the housing market,” proclaimed the CEO of one brokerage while expressing optimism for 2010.

Pat Grimm, a member of the NWMLS board of directors, said the strength of the first-time buyer market is no surprise. Grimm described the market within Seattle as “strong,” noting stable prices during much of the year and a brisk pace of activity. “The shift was made away from a buyer’s market early this year into a balanced market, and in some areas close to the city core, it’s a seller’s market,” he commented.

Wealthy investors returning to Real Estate

racyeo — Wed, 02 Dec 2009 19:37:50 +0000

Global Edge reported yesterday that surveys of wealthy investors show that they are returning to Real Estate as an investment vehicle. They believe there are better long term prospects and many bargains in residential properties due to the recent worldwide turmoil in the real estate markets.

Hmmm…could be time to get back into the market?

Bremerton/Silverdale Number 1 in The Top 10 Housing Markets for the Next 10 Years

racyeo — Fri, 07 Aug 2009 01:10:18 +0000

With home prices at the national level down a painful 32 percent from their 2006 peaks, it’s easy to overlook real estate’s benefits as a long-term investment. But the truth is, despite the ongoing housing bust, the overwhelming majority of America’s real estate markets will appreciate over the next 10 years—although some more handsomely than others. “In the long run—subtracting from the ups and downs of the business cycle—house prices should grow at the rate of household income,” says Mark Zandi, chief economist at Moody’s Economy.com. “If people’s incomes are rising, then they will buy more housing and house prices will rise.” Income growth, in turn, is linked to the strength of the area’s economy. Moody’s Economy.com sifted through employment and population data and analyzed geographic and industry trends to generate 10-year home price projections for each of the nation’s 384 distinct metropolitan statistical areas—everywhere from Abilene, Texas, to Yuma, Ariz. Using these data, U.S. News compiled a list of the top 10 housing markets for the next 10 years. The neighboring cities of Bremerton and Silverdale, Wash., are located on the Kitsap Peninsula, a slip of land surrounded by more than 300 miles of coastline in lovely Puget Sound. Although the Pacific Northwest greenery is enticing, it’s the cities’ stable economies that should drive home price gains in the coming years. A large military presence—of the U.S. Navy in particular—helps insulate the local economies from volatility. Meanwhile, the nearby cities of Tacoma, Wash., and Seattle provide additional employment to the area’s roughly 240,000 residents. “About a third of the community works [in either Tacoma or Seattle],” says Silvia Klatman, executive director of the Bremerton Area Chamber of Commerce. “And a little bit more than that actually work…for the military.” Silverdale’s 2008 median home sale price was $266,500. Moody’s Economy.com expects home prices in the Bremerton/Silverdale area to increase by an average of 5.2 percent annually from the fourth quarter of 2008 through the same period of 2018.

Courtesy US News & World Report Luke Mullins Posted June 4, 2009

Tips for Finding the Perfect Neighborhood

racyeo — Mon, 04 May 2009 19:59:07 +0000

Your neighborhood has a big impact on your lifestyle. Follow these steps to find the perfect community to call home.

Is it close to your favorite spots? Make a list of the activities — movies, health club, church, etc. — you engage in regularly and stores you visit frequently. See how far you would have to travel from each neighborhood you’re considering to engage in your most common activities.

Check out the school district. This is especially important if you have children, but it also can affect resale value. The Department of Education in your town can probably provide information on test scores, class size, percentage of students who attend college, and special enrichment programs. If you have school-age children, visit schools in the neighborhoods you’re considering. Also, check out www.schoolmatters.com.

Find out if the neighborhood is safe. Ask the police department for neighborhood crime statistics. Consider not only the number of crimes but also the type — such as burglaries or armed robberies — and the trend of increasing or decreasing crime. Also, is crime centered in only one part of the neighborhood, such as near a retail area?

Determine if the neighborhood is economically stable. Check with your local city economic development office to see if income and property values in the neighborhood are stable or rising. What is the percentage of homes to apartments? Apartments don’t necessarily diminish value, but do mean a more transient population. Do you see vacant businesses or homes that have been for sale for months? See if you’ll make money. Ask a local REALTOR® or call the local REALTOR® association to get information about price appreciation in the neighborhood. Although past performance is no guarantee of future results, this information may give you a sense of how good of an investment your home will be. A REALTOR® or the government planning agency also may be able to tell you about planned developments or other changes in the neighborhood — like a new school or highway — that might affect value.

Make personal observations. Once you’ve narrowed your focus to two or three neighborhoods, go there and walk around. Are homes tidy and well maintained? Are streets quiet? How does it feel? Pick a warm day if you can and chat with people working or playing outside.

One additional personal bit of advice…walk around during the day and then go back and walk around after dark.

Fed Keeps Interest Rate Near Zero

racyeo — Thu, 30 Apr 2009 17:43:40 +0000

The Federal Reserve announced at its regular meeting on Wednesday that it intends to keep its key short-term interest rate – the federal-funds rate – at or near zero for the foreseeable future.

“Although the economic outlook has improved modestly since the March meeting, partly reflecting some easing of financial market conditions, economic activity is likely to remain weak for a time,” the Fed said.

One of the Fed’s primary goals is to keep mortgage interest rates low, giving real estate time to recover.

“They’re in the implementation stage,” said Laurence Meyer, vice chairman of Macroeconomic Advisers LLC, a forecasting firm.

Source: The Wall Street Journal, Jon Hilsenrath (04/30/2009)