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Monday, March 8. 2010
 Rare Find! You will not find many homes like this 2-story home that features 1409 SqFt with the master on the main floor. From your master bedroom are French doors leading to your private covered patio and fully fenced backyard. You will also find high vaulted ceilings in the living room, updated kitchen with center island and eating area, utility room, and dining room. The gas heat, water, and stove help with efficiency along with the gas fireplace. This home was recently painted inside and out.
Tuesday, March 2. 2010
 Quality home strategically positioned on a beautiful .83 acre lot in Woodinville. Your home boasts 4 large bedrooms upstairs with one downstairs, den/office with separate entrance, formal sunken living room with fireplace, family room with free standing stove, updated kitchen with eating area, dining room, and two car garage. Also included on this surreal lot is a shop, RV garage, two separate driveways, large garden space, large level front lawn, sprinkler system, covered back patio and more!
Monday, March 1. 2010
| Residential Status | February | January | December | November | | Sold | 396 | 319 | 522 | 573 | | Pending | 927* | 812 | 769 | 930 | | Active | 4,057 | 3,916 | 3,459 | 3,925 |
*402 went pending in February. This information is courtesy of the NWMLS. These stats do not include condos. We are now two months into 2010 and entering the spring season when typically the real estate market begins to pick up. And guess what? Even in today's real estate market, the trend continues and sales are picking up! As you can see from the numbers, available homes for sale are up, pending sales are up, and even the solds have increased. The percentage of "distressed homes" on the market as of today is 28%, with the pendings being 21% and the solds being 36%. So not much change when it comes to the percentage of distressed homes. There is one interesting thing I've noticed that is occuring ever month - when it comes to short sales, a very low percentage actually sell. Everyone has heard that it is hard to sell a short sale, and here are some figures to back that up. From November through February, the average percentage of available short sales that actually sold is only 7.3%. There are many factors that can play into why they don't sell, but personally, I have a great track record with short sales - 85% of my short sale listings have closed! Once again, let's keep an eye on the job market to help give us an indicator on when this season in real estate will make the turn. I currently read that the banks still have 1.8 million homes to put on the market, which indicates that the turn around is probably NOT in the near future. Current interest rates are hovering around 5.125% with all indications leading to a rate increase in the near future.
Monday, February 1. 2010
| Residential Status | January | December | November | October | | Sold | 319 | 522 | 573 | 551 | | Pending | 812* | 769 | 930 | 1,069 | | Active | 3,916 | 3,459 | 3,925 | 4,064 |
This information is courtesy of the NWMLS. This does not include condos.*348 went pending in the month of January. January is behind us - how's everyone doing on their new year's resolutions? In 2010 we will continue to watch market activity and track the percentage of distressed homes in our market. I firmly believe that these statistics will be the indicators of when the "bottom" of this finally hits. Currently 29% of all active listings are either short sales or bank owned properties, the same percentage we saw last month. In the "sold" category, 39% of the homes were either short sales or bank owned. What I have noticed is that since August of '09 when I started tracking these stats, the percentage of bank-owned properties sold has always been higher than the percentage of bank-owned active properties. This is a good statistic! Another interesting thing to note - the percentage of bank owned listings has increased from 6% in August to 9.7% in January. This is actually a good news/bad news statistic. The good news is that the banks are selling their REO homes, the bad news is the banks are getting more and more REO homes that need to be sold! We'll watch these stats along with three key factors in play right now that could make for a very active spring market: - First time home buyer $8,000 tax credit extension
- $6,500 tax credit for existing home owners till April 30th
- Continued low interest rates
And of course in my opinion, the most important factor to watch is the job market - without jobs or job security none of these tax credits or interest rates will amount to anything! Current interest rates are hovering around 5.125% with all indications leading to a rate increase in the near future.
Tuesday, January 26. 2010
 Here is the rambler on a large level lot off the beaten path in a great location waiting for you! This 1410 square feet home features 3 bedrooms, 2 full baths (one off master bedroom), living room, and a HUGE family room that opens up to your fully fenced backyard and a 2 car garage. New door/trim package, tile kitchen countertops, heat pump/AC, double pane windows and new lighting fixtures are just a few of the extras. You will find ample parking for the boat, RV, or extra vehicles too. This is not a short or bank owned property, so meeting the April 30th deadline for the first time homebuyer tax credit is possible! Call or email me with any questions or to set up a time for your private showing.
Sunday, January 3. 2010
| Residential Status | December | November | October | September | | Sold | 522 | 573 | 551 | 510 | | Pending | 769* | 930 | 1,069 | 1,052 | | Active | 3,459 | 3,925 | 4,064 | 4,287 |
This information is courtesy of the NWMLS. This does not include condos. *276 went pending in the month of December The month of December finished with the usual decline in active, pending, and solds. The percentage of distressed (bank-owned or short sale) properties active and pending - at 29 and 31% this month - did not change significantly from November. However, the percentage of distressed properties sold was up significantly from November's 27% to 40% for December! We'll watch this trend closely to see if it continues, as it could be indicative of a turnaround on the horizon. In Snohomish county, 25% of all residential real estate activity (not including condos) is either bank owned or in a short sale situation. Here's some interesting stats - check out the year-end comparison of sold residential properties (not including condos): 2009 - 6,430 homes sold
2008 - 5,946 homes sold
2007 - 10,099 homes sold
2006 - 13,395 homes sold Side note for 2009 - only 152 vacant land listings sold that were listed on the Northwest Multiple Lisings for ALL of 2009, compared to 514 in 2007. Current interest rates are hovering around 5.050% with all indications leading to a rate increase in the near future.
Tuesday, December 8. 2009
Homebuyer Tax Credit Update! On November 6, 2009, Predident Obama signed a bill to extend the tax credit for first-time homebuyers (FTHBs) through June 30, 2010. The bill aslo opens up opportunities for others who are not buying a home for the first time. To learn what the new tax credit means to you, take a look at the concise overview below. 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 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 come in the form of a tax credit 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 fo rthe 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 pertial 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 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 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 fo the purchase is $100,000, the amount of the credit may not exceed $8,000. Who is eligible for the First-time homebuyer tax credit? Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title. This applies to both 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, taht 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 the would be include a land contract or a contract for deed. According to the IRS, factors that would demonstrate the ownership of the property would include: - Right of possession
- Right to obtain legal title upon full payment of the purchase price
- Right to construct improvements
- Obligation to pay property taxes
- Risk of loss
- Responsibility to insure property
- Duty to maintain the property
Are there other Restrictions to taking the First-time homebuyer tax 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.
- They do not use the home as your principle residence
- They sell their home before the end of the year
- They are nonresident alien
- They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year
- Their home financing comes from tax-exempt mortgage revenue bonds
- The 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. 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 requirement for the tax credit.
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.
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