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Tuesday, December 1. 2009
| Residential Status | November | October | September | August | | Sold | 573 | 551 | 510 | 519 | | Pending | 930* | 1069 | 1052 | 996 | | Active | 3,925 | 4,064 | 4,287 | 4,369 |
This information is courtesy of the NWMLS, and does not include condos. *307 went pending in the month of November We're on our fourth month of tracking the percentage of "distressed home" sales - short sales/bank owned properties - in Snohomish county according the NWMLS stats. Throughout November, we saw the number of current listings drop, while the percentage of "distressed listings" rose 4.5% from 22% last month. Pending sales decreased, but the percentage of pending "distressed homes" was up 5.5% from 26% last month. Homes sold increased, but the percentage of "distressed home" sold was down 2% to 27% this month. In summary, we are still seeing about 25% of the residental real estate transactions in Snohomish county involve distressed homes. Until this percentage changes we will not likely see any recovery in real estate or our local economy. With unemployment at 10.2% nation wide, foreclosure filings at record levels (7 million), it's hard to be optomistic about recovery. However, even in this market there are still great opportunities to buy real estate. With interest rates incredibly low, homes more affordable than ever (prices at June 2005 levels!), and a continuation of the home buyer tax credit, this market is ripe for great deals!
Current interest rates are hovering around 5.050% with all indications leading to a rate increase in the near future.
Friday, November 13. 2009
 Welcome home to your 2005 built home that boast 1960 square feet on a .42 acre lot! Your manufactured home includes- 4 large bedrooms, 2 full baths, 5 piece masterbath, dining room, living room, large bright kitchen with center island, utility room, family room with fireplace that has French doors leading to your covered porch, new laminate floors, and much more. Your .42 acre lot has a fully fenced backyard with a large play-yard, motorcycle track, fire pit, and storage shed.
1. New purchase deadline extends into 2010 The home buyer credit was previously scheduled to expire on Nov. 30, 2009. The new law extends the deal to cover purchases of U.S. principal residences that close by April 30, 2010. However, if a home is under contract on that date, the deadline for closing is extended to June 30, 2010. 2. Existing homeowners can now qualify The new law allows a reduced credit for existing homeowners who buy a replacement U.S. principal residence after Nov. 6, 2009. The credit equals the lesser of: (1) $6,500, or (2) 10% of the price of the replacement home, or (3) $3,250 for a buyer who uses married filing separate status. The new existing-homeowner credit is only available for purchases that close after Nov. 6, 2009. To qualify, the buyer must have owned and used the same home as a principal residence for at least five consecutive years during the eight-year period ending on the purchase date for the replacement principal residence. If you’re married, your spouse must pass this test too (whether or not you file jointly). 3. Larger credits still allowed for first-time buyers Before the new law, the home buyer credit was only available to so-called first-time buyers, which means someone who had not owned a U.S. principal residence during the three-year period ending on the purchase date for a home that will serve as the buyer’s new principal residence. If you’re married, both you and your spouse must pass the three-year test (whether or not you file jointly). These first-time home buyer rules still apply for purposes of claiming a larger credit of up to $8,000. Specifically, the credit for a first-time buyer still equals the lesser of: (1) $8,000, or (2) 10% of the home purchase price, or (3) $4,000 if you use married filing seperate status. 4. Higher-income folks can now qualify The home buyer credit is phased out (reduced or completely eliminated) as income goes up. However, the new law significantly raises the phase-out ranges so that many more higher-income buyers will now qualify. For purchases after Nov. 6, 2009, the phase-out range for unmarried individuals and married folks who file separately is between modified adjusted gross income (MAGI) of $125,000 and $145,000 (way up from the old-law range of $75,000-$95,000). The phase-out range for married joint filers is now between MAGI of $225,000 and $245,000 (way up from the previous range of $150,000-$170,000). 5. New $800,000 purchase price limit For purchases after Nov. 6, 2009, the credit can only be claimed for a principal residence that costs $800,000 or less. So if your new home costs $800,001, the credit is completely off limits (but I doubt too many people will feel sorry for you). 6. No more credits for kids or dependents For purchases after Nov. 6, 2009, the home buyer must be at least 18 years old on the purchase date to qualify for the credit. Also, no credit is allowed for a buyer who can be claimed as a dependent on someone else’s Form 1040 for the year of the purchase. These new rules are intended to shut down the practice of claiming the credit for youngish buyers who really don’t even have incomes of their own (like college students who use money from their parents to buy a pad near campus). A recent government report said the IRS has already identified over 100,000 returns with potentially fraudulent home buyer credits. This is hardly surprising when the government is willing to give away up to $8,000 in free money to anyone who files a return, even when that person reports no income. Believe it or not, absolutely no documentation was required to claim the credit, until now. For credits claimed on 2009 and 2010 returns, buyers must attach a properly executed real estate settlement sheet to the return. Also, the IRS can now simply disallow credits in fishy circumstances (like when it appears the $8,000 credit is being claimed by someone who already owns a home). 8. Credits can still be claimed on prior-year returns Under the revamped rules, you can still claim the credit for a 2009 purchase on your 2008 return (although you would now generally have to file an amended return to do so). You can also claim the credit for a 2010 purchase on your 2009 Form 1040. This allows you to cash in on the credit sooner rather than later, and it may also allow you to claim a larger credit if your income in the year of purchase is higher than in the preceding year. 9. Credits must still be repaid in some cases Under old-law rules for homes purchased between April 9, 2008 and Dec. 31, 2008, buyers are generally required to repay the credit over 15 years. However, this repayment rule is generally eliminated for purchases after 2008. That said, you might still have to repay the credit if you sell your home within three years of the purchase date or stop using it as your principal residence during that period. 10. Special rules for military service members For military service members on extended duty outside the U.S., the new law lengthens the deadline for closing on home purchases for an extra year, to April 30, 2011 (or June 30, 2011 for homes under contract on April 30, 2011). The new law also waives the credit repayment rules for service members who are forced to move due to receiving new orders. The same special rules apply to members of the foreign service and intelligence communities.
Friday, November 6. 2009
| Residential Status | October | September | August | July | | Sold | 551 | 510 | 519 | 580 | | Pending | 1,069* | 1052 | 996 | 939 | | Active | 4,064 | 4,287 | 4,369 | 4,481 |
This information is courtesy of the NWMLS. *460 went pending in the month of October If you recall the updates from the past couple of months, we've been tracking "distressed properties" because I believe it is one of the key factors (along with an increase in jobs) in predicting when the real estate market will turn around. According to the stats we have seen in the last three months, the percentage of "distressed properties" has increased from 20% to 25% of active, pending, and sold properties. Real estate activity as a whole has increased the last three months, but home values continue to drop as the percentage of "distressed properties" continues to rise. Once again, it goes back to jobs! In order to keep current home owners from falling into "distressed property" situations, we need jobs. In my experience, the vast majority of "distressed properties" are caused by a loss of income. We need to see people employed, not loan modifications for current home owners or tax incentives for home buyer's, but jobs!
Current interest rates are hovering around 5.125% with all indications leading to a rate increase in the near future.
Homebuyer Tax Credit Extended…
Plus, New Tax Credit for Existing Home Owners! Who Gets What? First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000 Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount. Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount. What are the New Deadlines? In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010. What are the Income Caps? The amount of income someone can earn and qualify for the full amount of the credit has been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible. What is the Maximum Purchase Price? Qualifying buyers may purchase a property with a maximum sale price of $800,000.
What is a Tax Credit? A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence. How Much are First-Time Homebuyers (FTHB) Eligible to Receive? An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000. Who is Eligible for the FTHB Tax Credit? Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible. As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500. How Much are Current Home Owners Eligible to Receive? The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property? No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place. Can a Taxpayer Claim a Credit if the Property is Purchased from a Seller with Seller Financing and the Seller Retains Title to the Property? Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. Right of possession,
2. Right to obtain legal title upon full payment of the purchase price,
3. Right to construct improvements,
4. Obligation to pay property taxes,
5. Risk of loss,
6. Responsibility to insure the property, and
7. Duty to maintain the property. Are There Other Restrictions to Taking the FTHB Credit? Yes. According to the IRS, if any of the following describe a homebuyer’s situation, a credit would not be due: - They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from “step-relatives.”)
- They do not use the home as your principal residence.
- They sell their home before the end of the year.
- They are a nonresident alien.
- They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
- Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
- They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.
Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit? Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed. If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit? Yes, provided that the child meets the other requirements for the tax credit.
Thursday, October 1. 2009
| Residential Status | September | August | July | June | | Sold | 510 | 519 | 580 | 522 | | Pending | 1052* | 996 | 936 | 933 | | Active | 4,287 | 4,369 | 4,481 | 4,425 |
This information is courtesy of the NWMLS. *475 went pending in the month of September If you recall last month's update, we are tracking "distressed" properties because I believe it is the key factor in predicting when the real estate market will turn around. In September we saw the number of active listings decrease while the percentage of distressed properties increased from 20% to 23% - this in combination with a huge jump in short sale listings. Pending property counts were up as a whole in September, but the percentage of distressed pending properties was down 3% from last month's 26%. Sold properties as a whole were about the same this month as last, but the percentage of distressed properties being sold was up from 25% to 34%. Great stats, but what do they mean? In a nutshell, more distressed properties are on the market with fewer under contract. Sales are up, but we are still experiencing a increase of "distressed" home owners. The real estate market has not turned the corner as of yet. When interest rates start to rise and the $8,000 tax credit goes away, we may see an even slower rate of recovery. Also, watch the unemployment numbers - without jobs or confidence in job security people won't be buying homes! Current interest rates are hovering around 5.125% with all indications leading to a rate increase in the near future.
Thursday, September 24. 2009
Here is the feedback from another seller that I professionaly helped sell their home- When asked- How would you describe the service you received? Professional, friendly and extremely helpful at all times. Josh was patient and willing to help us every step of the way. Is there something Josh could have done better? Not to my knowledge. Other comments? Thank you Josh for helping us to finally realize our goal of moving to the country. It was a long process and your help with the most critical part of it is most appreciated.
Friday, September 11. 2009
 Rare opportunity to own a 2007 quality built Pat Garrison Home re-sale at a price never offered before! This beautiful home features 3253 square feet that is replete with quality. Like your hardwood floors, granite slab countertops, custom millwork, high tech wiring, iron railings, 5 piece master bath with tile shower and tub, Jack and Jill bath, 4 bedroom with own full bath, and so much more. Your new home boasts 4 large bedrooms, den, bonus room, living room with gas fireplace, family with gas fireplace, large open bright kitchen, and a large 3 car garage. All of this on a .45 acre lot at the top of a cul-de-sac on a dead end street for extra privacy. Did I mention the 1 year builders warranty at no extra cost!!
Tuesday, September 8. 2009
 Location! This 3 bdrm, 2 bath, 1210 sqft condo is located close to freeways, stores, parks and amenities but is also located best in the complex. This corner, bottom unit looks out to a greenbelt for added privacy with a private patio that leads to a grass lawn and play area. Your condo includes a master bdrm with private bath and walk-in closet, open bright floor plan that features a living room with fireplace, dining room, and an open kitchen! Did I mention your 1 car garage and storage unit?
Tuesday, September 1. 2009
| Residential Status | August | July | June | May | Sold | 519 | 580 | 522 | 477 | Pending | 996* | 936 | 933 | 881 | Active | 4,369 | 4,481 | 4,425 | 4,458 |
*474 went pending in the month of August - This information is courtesy of the NWMLS. Is the housing market on the rebound? It's the big question these days, and since the networks are jumping on it, I figured I'd add my two cents as well! I believe that for the housing market to rebound, the "distressed" property (short sales and bank owned) inventory needs to be reduced or eliminated from the market. So for the next few months, I am going to track these percentages.This month what we're seeing is that short sales or bank-owned properties comprise 20% of the Snohomish county active listings, 26% of the pending sales, and 25% of August total sales. My initial evaluation is this - it's a good sign that there are more "distressed" properties under contract or sold than there are available. So let's keep an eye on this interesting statistic and see what happens over the next few months!
Current interest rates are hovering around 5.475%.
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