Emily Morrison Griffin

 Source: The Seattle Times By Eric Pryne

Prices in the Seattle metro area were up 3.1 percent in July compared with a year ago, according to the Standard & Poor’s/Case-Shiller Home Price Index. It was the third straight monthly year-over-year gain, and the biggest increase since the housing market collapsed five years ago.

 How’s the Seattle market doing? Is inventory still just as low? Are prices increasing? What does this mean for buyers or sellers?

A couple months ago, I wrote a post about Seattle’s low, low inventory levels.  This has been a frustrating season for buyers, especially in the more affordable price ranges. While I’ve still had clients successfully closing on the purchases, inventory has remained crazy low all summer. We had a tiny bump in June (historically, our peak month of inventory) but we’re talking tiny. Here is a graph  illustrating the total listings, new listings, sold and pending homes in ALL of King County, in ALL price ranges over the past year:

Now, compare this to the usual ebb and flow of inventory over the past five years:

Typically, we expect to see a swell of inventory that peaks around June, and then a decrease until January when the cycle repeats itself. Unfortunately, we never saw that “peak” this year.

Why is inventory so low?

There are couple issues that I believe are keeping homeowners from listing their home. The first is market price – we are still experiencing some of the lowest home prices since 2005 (in some cases, 2004) and sellers who don’t have to move or sell, don’t sell. They can afford to wait until prices increase again. The second issue is tied to the typical buying/selling cycle of a homeowner: a typical homeowner will live in their home 5-7 years. However, the homeowners that purchased 5-7 years ago aren’t in a position to sell. They may be able to make their mortgage payments, but they owe more on their home than its worth. Instead, these “move-up” homeowners are so “price-in” to their homes, that they represent a big chunk of inventory that isn’t/can’t come on market.

What has that meant for sellers?

This summer was (and continues to be!) a fantastic time for sellers to list their properties. With so many buyers and so little inventory, ALL listings are getting extensive market exposure. Homes that represent the four “P’s” of listings (placed right, priced right, prepared right, promoted right) have been generating multiple offer bidding wars.  The nice thing about receiving multiple offers (besides the increased sales price, of course) is how the process really demonstrates, without a doubt, the current “market value” of a home.

With so few listings, and so many frustrated buyers, does this mean that prices have been increasing? Yes! Trends for King & Snohomish Counties indicate that the median sale price has increased 9.1% over August of 2011, the average sales price has increased by 8.3% over August of last year, and the average price per square foot has increased 5.1% over the same time last year. Of course, real estate is extremely local and some markets have increased more than others – while some haven’t increased much at all. But in general, home prices have started to go up in our area.

What does that mean for buyers?

Of course, buying a home has to coincide with YOUR ideal timeline, but even with low inventory and competing bids, this fall remains an excellent time to buy. Even though home prices are starting to increase, they still remain extraordinarily low. More importantly, interest rates remain historically low (every interest increase of 1% decreases your purchasing power by 10%!!). It’s certainly not an easy market for buyers – but it’s a financially fantastic time to buy. 

Source: The Huffington Post

Just when we are beginning to see the signs of a housing recovery and the housing market, critical to our economy, seems ready to return to normal, major markets across the U.S. are about to be impacted by a new housing crisis.

The National Housing Shortage

While this may seem counterintuitive at first glance, our organization has a long history of seemingly counterintuitive projections in housing which have later proven true. We were one of the first organizations to assert that short sales would not only become the preferred foreclosure alternative for homeowners, but that banks would prefer them as well. We were among the first to predict that investors would flock to the housing market beginning in 2010. We feel confident the same will hold true with the housing shortage that we believe will begin affecting some markets in the next 12 months and the majority of major markets within the next three years.

Consider these year over year numbers from the National Association of Realtors comparing the second quarter of 2011 to the second quarter of 2012:

• Existing home sales are up 8.6 percent.
• Existing inventory for sale is down 24.4 percent.
• Median home prices are up 7.3 percent.

Individually, each of these statistics indicates major a market transition. Collectively, they show unprecedented one-year movement in the housing market.

Consider History

According to the U.S. Census, the recent history of housing construction has been relatively consistent: between one and two million homes produced since 1968.

• Between 1968 and 2008 at least one million homes were constructed each year.
• The year with the greatest output was 1973 at 2,100,500 homes.
• The year with the lowest output was 1982 at 1,005,500 homes.
• The average output between 1968 and 2008 has been 1,531,900 homes.

In 2008, there were 1,119,700 homes constructed. Of course, we now know that 2008 was a pivotal year in the housing market. In 2009 these numbers began to change dramatically.

Between 2009 and 2011 there have only been an average of 647,600 houses built, and every year since the number of homes built has declined. Each year, the Joint Center for Housing Studies at Harvard University issues a report on the state of he nation’s housing. This year’s report estimates we need between 1.18 million and 1.38 million housing units per year to meet the demand for new household development that will occur between now and 2020.

Using these numbers one can draw the conclusion: We will see a constrained inventory market in the immediate future. Couple this with the fact that housing is more affordable than it has ever been, and interest rates are at record lows, and the picture of an oncoming national shortage becomes much clearer.

Real estate professionals have been shocked by how quickly markets across the country have transitioned from excess inventory to having constrained inventory. The first markets to experience the housing crisis in 2007 and 2008 have been the first to experience the housing shortage in 2012. Markets in Florida, Arizona, Nevada and California are now experiencing constrained inventories. Year-over-year sales in the sub $100,000 price category has plummeted in these areas by as much as 40 percent.

No Fast Acting Solution

The severity of the housing crash is affecting the speed with which the home construction markets are responding to a housing shortage. Companies in the construction supply chain have downsized or disappeared in record numbers. Given the lead times in housing construction due to permitting, manufacture of supplies (drywall, lumber, etc.) and the availability of skilled labor, the speed with which the market can react to demand has slowed considerably.

Conclusion

If you are one of the millions of Americans that have been sitting on the fence waiting for the ideal time to purchase a property, this may be the time to seriously consider making your move. This is true of individual homebuyers, but it is also true of real estate investors as well. In 2010 investors represented 17 percent of the housing market; in 2011 they represented 27 percent, and all indications are that we are in the midst of another major investor purchase increase in 2012. 34 percent of all homes purchase today are purchased all-cash.

For investors, housing today represents an investment class that outperforms every other class of investment in both cash returns and, for the past year, in appreciation of equity.

It may seem bold to be presenting a housing shortage in the middle of what many consider a housing crash; however, the numbers, market conditions and major market inventories are starting to make this startling prediction real.

__________________________________________________________

Alex Charfen is the CEO of the Charfen Institute and the author of the CDPE and CIAS Designations and the AgentGPS Productivity System and the LEAD Experience for business owners and leaders. With over 41,000 members The Charfen Institute is the largest independent membership organization in the history of the real estate industry.

The Charfen Institute has been ranked one of the 500 Fastest Growing Companies in the US in both 2010 and 2011 by Inc Magazine and has been voted by its employees as one of the Best Places to work in Central Texas every year it has been eligible.

Alex is a regular contributor to CNBC and Fox News and is considered one of the foremost experts on the US Housing Market and Foreclosure Crisis. He lives in Austin Texas with his wife Cadey and daughters Reagan and Kennedy.

Source: CNNMoney.com

NEW YORK (CNNMoney) — Could the real estate freeze finally be thawing?

After years of depressed activity, home prices and new construction have started to pick up in recent months as foreclosures have slowed, suggesting the housing market may have finally bounced off the bottom.

“It feels very much like we’ve hit a bottom and we’re starting to come off of that bottom,” Stuart Miller, CEO of homebuilder Lennar told analysts in June. (more…)

Source: Rismedia.com

Everyone loves a bargain, the bigger the better. And arguably the biggest bargains of all can be found with distressed real estate.

“There’s evidence that home values have begun to solidify in many local markets,” says Wendy Forsythe, executive vice president and head of global operations at Atlantic & Pacific Real Estate, a full-service real estate brokerage with offices in 22 states. “However, the marketplace remains saturated with distressed properties and such homes are routinely available at significant discounts.”

The National Association of REALTORS® reported that in May distressed properties represented a quarter of all existing homes sold. Fifteen percent were foreclosures and the typical discount was 19 percent. Short sales represented 10 percent of May existing sales and the usual discount was 14 percent.

Forsythe also points out that discounts are not the only factor to consider when looking at real estate.

“There’s no doubt that discounts are a big attraction,” she said. “But distressed properties are different when compared with homes which are not distressed. Condition can be an issue and distressed transactions are often complex. Atlantic & Pacific Real Estate sales professionals specialize in these properties and can help buyers understand the issues.”

Distressed Properties

Properties become “distressed” when owners fail to make their mortgage payments. Once payments are missed there are typically four stages of distress.

Delinquency: Here the owner has missed one or more payments but the lender has not foreclosed. Delinquencies can be “cured” by bringing mortgages current or modifying loan terms to make the property more affordable.

Short Sales: In a short sale the owner makes a deal to sell the property to a purchaser for less than the amount due on the home loan. Because of this, these sales require lender approval.

Foreclosures: Unless the loan is made current, or the property sold via short sale the home will be auctioned off. The lender will bid on the property to recover as much of the outstanding loan amount as possible. If no one outbids the lender then the lender will take title to the property.

REOs: Properties taken over by lenders after an auction are called REOs — “real estate owned” by the lender. Like short sales and traditional properties, these homes can be purchased through real estate brokers.

“In the past lenders were opposed to short sales because such transactions represented an automatic loss on the mortgage,” said Atlantic & Pacific Real Estate’s Forsythe. “Now lenders are more willing to go along with a short sale because it may be quicker and less costly than foreclosure, a process which can take a year or more in many states.”

How to Start

Over the past 20 years real estate transactions have become more complex. Sale agreements which used to run just a few pages are now lengthy documents in most jurisdictions. In a similar way, transactions involving distressed sales have also become more complex. It’s this complexity which explains the need for an experienced broker to navigate the process.

Investors and home buyers with an interest in distressed properties should begin by looking at the local inventory to see what purchase options are available. Atlantic and Pacific Real Estate sales professionals specialize in the distressed market and are familiar with local short sale, foreclosure, and REO opportunities.

Questions

Once you identify distressed properties which may be of interest to you, it’s time to examine some specifics. Major questions include:

How is the property being sold? Via short sale, foreclosure or REO? Each requires a different strategy — and each may be available at a different discount.

What’s the condition of the property? Some distressed properties are in good condition while others will need extensive — and sometimes expensive — repair work to bring them up to par.

Is the property occupied? Will an eviction be required? If so, how does one start an eviction in your jurisdiction and how long can such a process take?

What’s the market value of like properties which are not distressed? What about local vacancy levels and rental rates?

How many lenders have claims against the property? Is there a mortgage insurance program in the picture such as the VA, FHA or a private mortgage insurance company? If a distressed home has been financed with two or more loans then the sales process can be far more complex.

How will the purchase be financed? Many buyers pay cash but there’s also financing for qualified borrowers. Buyers who use financing must prepare in advance so they can act quickly when a distressed property becomes available as there are often multiple bids on an individual home.

“Distressed properties can have great appeal,” said Forsythe. “Discounted prices and historically low interest rates make these homes affordable to many families who might otherwise not be able to buy a property. But buyers also need to be selective because not every distressed property is a bargain. Real estate professionals like Atlantic and Pacific Real Estate agents can review local markets, discuss the available opportunities and explain why some properties may be more attractive than others for specific buyers.”

Originally posted July 15th, 2012 at http://rismedia.com/2012-07-15/buying-a-distressed-home-what-you-need-to-know/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Rismedia+%28RISMedia+Real+Estate+News%29

According to the 2011 National Association of Realtors® Profile of Home Buyers and Sellers, the second most popular reason buyers use a real estate agent is to help with the negotiation process. However, buyers can negatively impact the process making mistakes which lead to them losing their dream house. Don’t make these negotiation blunders:

1)  Not entering with a negotiating strategy: Before submitting an offer, try to remember that the seller has already decided how much money they want from the sale of their property. Knowing how to negotiate effectively is the key to getting the best deal. Without a plan, you might risk losing the house you want.

2)  Giving up too soon: Buyers might get discouraged when they are competing against multiple offers on a house. However, the biggest mistake a buyer can do is panic and withdraw their offer. You should stay involved for at least one round of negotiations, but also establish your maximum price.

3)  Not providing earnest money: Earnest money is a cash deposit you make when submitting your written offer on a property to show your “good faith.” Sellers are understandably suspicious of offers that are not accompanied by such a deposit.

4)  Having too many contingencies: A contingency is a term or condition that must be met for an offer to become a binding contract. Home buyers with too many contingencies tend to weaken an offer. Some examples of contingencies are securing a job transfer, selling your current home or obtaining specific financing terms.

5)  Weak negotiating position:Sellers usually like to go with a strong bargaining position. Some examples of strong positioning is being pre-approved for a mortgage or having little to no contingencies. With these factors in your favor, you may be able to negotiate a lower price. On the other hand, in a ‘hot’ seller’s market, if your perfect home comes on the market, you may want to offer the list price (or more) to beat out other offers.

Keep in mind, it’s best to have someone trained in negotiation who can counsel you on making an effective offer. As an Accredited Buyer’s Representative (ABR®) as well as a Master Certified Negotiation Expert (MCNE®), I am uniquely prepared to specifically help buyer-clients find the home of their dreams, and then guide them through structuring an offer and effective negotiation strategies.

Who do you know that could benefit from exceptional guidance in real estate?

Source: The Wall Street Journal, by Nick Timiraos

Another housing report shows that market activity is up considerably from one year ago but easing off of the levels set by a surge of transactions earlier this year.

A report Thursday by the National Association of Realtors showed the index of pending home sales, reflecting deals that have gone into contract but haven’t yet closed, fell in June by 1.4% from May, though activity was still above the level of one year ago by 9.5%.

The report is the latest indication of an uneven housing bottom — things aren’t getting better rapidly, but we’re also not in the “hold-your-hat” declines of 2010 or the “spring that never materialized” of 2011. The report is also a reminder that a recovery will have trouble taking hold without meaningful job and wage growth, which has slowed in recent months. (more…)

Source: Rismedia

Today is a tempting time to buy a home with interest rates and prices at their lowest levels in years. Deciding whether to buy or rent can be complicated, and potential homebuyers have a lot to consider this summer. As part of National Homeownership Month, the American Bankers Association came up with these key questions to help shoppers make wise financial choices when considering buying a home.

1. How much can you afford to put down? Can you afford the monthly payment?
A mortgage down payment of 5 to 20 percent of the selling price is typical, but can vary depending on the situation. The size of the down payment will impact the monthly cost. Assess your financial health, determine how large of a down payment you (more…)

Source: The Seattle Times

It might be a tipoff to a sobering reality: This house is an energy guzzler. Either the asking price comes down, the seller fixes the problems, or you walk.

WASHINGTON — It may be the best-kept secret in residential real estate: For a couple of hundred dollars, a potential buyer thinking about writing a contract on an existing house can ask for a formal energy audit along with the standard inspection clause.

That audit, in turn, can save the buyer thousands of dollars in future operating costs, and pinpoint the specific features of the house that need correction to improve efficiency.

It might also be a tipoff to a sobering reality: This house is an energy guzzler. Either the asking price comes down, the seller fixes the problems, or I walk.

Though energy audits have been available to consumers for years — the best known is the so-called “HERS” (Home Energy Rating System) — virtually nobody in the real-estate field promotes them to buyers.

Of the 120,000 HERS audits completed last year in the country, according to experts, just 12,000 were done on existing houses — a trivial number in a market with 4.5 million resales. The rest were performed on newly built homes

Since energy costs rank high on the list of ongoing expenses for many homeowners, and studies have demonstrated that energy-efficiency renovations more than pay for themselves in utilities savings, why aren’t more audits performed? (more…)

By: Dona DeZube

Source: Realtor.com

What can home buyers expect to face this selling season? An improving housing market has made it a different picture in many areas compared to recent years, housing experts say. A recent article at Bankrate.com notes some of the following trends taking shape in the housing market this spring:

1. Fierce competition.

Housing affordability is at record highs, due to falling home values and mortgage rates hovering near record lows. More buyers are taking notice and jumping off the sidelines. And mixed with sinking inventories of homes listed for sale, the competition is getting more fierce.

Investors are snapping up bargain prices, often in all-cash deals, which means greater competition for traditional home buyers too.

“Rents are going up, and as long as there are properties at the level where investors can get the positive cash flow, they will continue to invest,” says Jed Smith, managing director of quantitative research for the National Association of REALTORS^®. Smith adds that first-time home buyers, in particular, may find increased competition from investors in trying to snag some of the best deals on the market.

2. More renters show desire to become home owners.

Recent surveys have shown that buying a home nowadays is more affordable than renting. As such, more renters are finding home ownership more enticing.

The signs are already starting to show: About 59.5 percent of tenants recently surveyed say they intend to renew their leases this year, which is the lowest rate since early 2009, according to a study by Kingsley Associates.

3. Mortgages may be a little pricier.

Fannie Mae, Freddie Mac, and the Federal Housing Administration recently have raised their loan fees, which means home buyers can expect to pay a little more for their mortgage this spring.

“Those who don’t have credit scores in the high 600s to low 700s may be forced to go the FHA route,” says Ed Conarchy, a mortgage planner at Cherry Creek Mortgage in Gurnee, Ill. “And they will be stuck with the higher fees.”

Buyers with smaller down payments can expect to pay more for FHA mortgage insurance premiums, which have risen to 1.75 percent of the loan total. Bankrate.com cites an example illustrating the higher fees: A borrower who takes out a $200,000 FHA loan will likely have to pay about $3,500 for mortgage insurance upfront. Prior to the increase taking effect, borrowers would pay about $2,000 for that same loan amount.

Borrowers with higher mortgages can expect higher fees too. The FHA announced that in June it’ll increase its annual insurance for mortgages more than $625,500. “A borrower who lives in a high-cost area and takes out the maximum $729,750 (which is the FHA limit for high-cost areas) will pay $912 each month in mortgage insurance alone,” Bankrate.com reports.

“Is this spring a good time to buy?”

What does the market look like? What do we mean when we say “inventory is low?” Have we hit that magical price “bottom?”

I’ve been working with many buyers this past month, and before beginning their search I always like to talk about the market. In my post today, I’d like to show you what I’ve been showing them.

(more…)

Did you know, that EPA has found that the air inside your house can be two to five times more polluted -and maybe up to 100 times!- than the air outside your home?!

Did you also know that poor indoor air quality is associated with a host of health problems, including eye irritation, allergies, headaches, and respiratory problems such as asthma? (source: www.epa.gov/indoorairplus).

I heard it once said that health is one of those things you just don’t think about – until you no longer have it. With Americans spending nearly 90% of their time indoors, don’t wait until you or your family gets sick before making sure your indoor air quality is safe. (more…)

A national quarterly poll of 3,000 Americans conducted by Fannie Mae found has found that two-thirds of renters – across all educational and demographic levels – say they would like to purchase a home in future. However, the poll also found that the renters expressed caution and concern over the homebuying process as well as the process of qualifying for a mortgage. (Survey source: www.realtor.com)

While purchasing a new home is a complex process, it is certainly not as scary as some renters may think. With a dedicated Realtor at your side as well as a trusted lender (I can refer several!) you can easily make the journey from renting to home ownership.

Here is a brief summary of the homebuying process: (more…)

Which remodel projects will give you the most “bang” for your buck?

Many U.S. home-owners will take on home remodeling projects this year. From spicing up the kitchen to creating a bathroom that feels more like a spa, upgrades to your most valuable asset can pay off handsomely. With remodels, there is more at stake than improved livability; you could be adding thousands of dollars of value to your home. When done right, much of the money you put into a remodel may return to you when you sell your home.

Some remodels will reap greater benefit than others. According to Remodel Magazine’s 2011-2012 report, adding a bathroom will net you 51% of your original investment at the time of sale while adding a wood deck will recoup 70%.

Other popular remodels include: (more…)

Each spring, Washington homeowners receive tax statements based on the assessed value of their homes. A large portion of revenues from property taxes go toward educating our community’s young people. In addition, our police, fire, libraries, and parks and recreation are funded with this money. During difficult economic times, these revenues are especially important.

As many in Washington have seen their property values decrease, it’s not unreasonable to expect that property assessments would go down as well. However, that’s not always the
case. In the state of Washington, approximately half of your property tax is determined by levies for schools and community services. (more…)

What you should keep in mind

With interest rates at an all-time low, home prices down about 30% from the 2006/2007 peak and rental rates holding steady or rising, many are thinking about purchasing investment properties for the first time.

So, let’s say you have found a home that might be a good rental property. But are you ready? How much down payment do you need? Twenty percent is the minimum for conventional loans, which is the most standard investment property loan, says Justin Arnold of Sterling Savings Bank. However, he also adds that the Fannie Mae HomePath program allows investors to get in at 10% down with no PMI. To qualify, the property must be a Fannie Mae HomePath property, which can be identified by a real estate agent or at www.Homepath.com. (more…)

Seattle, like much of the nation, has recently seen a dramatic increase of rents. Economic conditions have led to more people needing to rent, and we have seen relatively little new development over the last several years. This has  increased demand – and rents.

According to HotPads.com, an on-line rental service and stats website, Seattle has a hot market for rental properties, ranking 5th of the 20 major metro areas in the nation.  Rental properties average only 36 days on their website (in 1st place, San Francisco rentals average 28 days).  HotPads reports that over the last year, rents in the Seattle area have increased 8.14%. Keep in mind, this number includes the greater Seattle-Tacoma-Bellevue areas – this number would probably be even higher if we were to strictly look at Seattle. (more…)

This weekend, my husband and I attended the 9th annual Northwest EcoBuilding Guild’s Green Building Slam - the 10x10x10.  Ten architects, builders, developers, and/or owners had ten minutes to present ten powerpoint slides on their latest and greatest Green home developments. Projects ranged from creative home remodels to large community center developments – green projects that reduced carbon emissions, were self-sustaining, contributed to local communities and helped improved overall quality of life.

Mark & I have been attending for three years, and this was our favorite event yet. Not only because we had the opportunity to be part of the Planning Committee (I helped with marketing & brochure design, he helped with sponsorship), or because the Bastyr University venue was so beautiful - but because of the fantastic range of projects presented. Some projects aggressively pushed the envelope on sustainable, energy-efficient and eco-friendly innovation. While other architects and home-owners demonstrated that you don’t have to be a crazy millionnaire eco-freak to improve your quality of life and the health of your community and planet. (more…)

This week I’m attaching a helpful article from our John L. Scott resources:

According to the National Association of REALTORS® Housing Affordability Index, homes are now more affordable than they have been since the NAR began reporting these numbers in 1971.

The Housing Affordability Index (HAI) measures whether a family making the median income can afford a median priced house at current mortgage interest rates. An index of 100 means that the typical American family has 100% of the income it needs to purchase a median-priced home with a 20% down payment. With median home prices down 6.8% in King County in June and mortgage interest rates at historically low levels, more people are within reach of the American dream of homeownership than have been in the past 40 years.

As the graph shows, homes were least affordable in the early 1980s, when mortgage interest rates averaged 16% and other factors made buying more difficult. Since real estate markets started seeing corrections in 2005, home affordability has been on a significant upswing. But what does this mean for those in the market to buy or sell a home?

High affordability means it’s a great time to be a buyer!

•As home prices have come down, buyers are realizing they can get more home for their money than they could in the previous four decades.
•Interest rates are low, which increases buyers’ purchasing power.
•Buyers can now qualify to purchase homes in neighborhoods they may have been priced-out of in the past.

High affordability means sellers will see increased activity and, possibly, slight price appreciation.

•Since homes are now more affordable, the pool of potential buyers has increased. In other words, more people can afford homes.
•Many buyers who have been sitting on the fence now see the importance of locking in low interest rates and are more committed to purchasing a home.
•A recent NAR survey showed that almost two-thirds of Americans believe that now is a good time to purchase a home. More activity can prompt bidding wars, which in turn sparks appreciation.

It’s important to note that NAR®’s index reflects national numbers. Of course, every market is local and every family’s situation is different. The best way to find out if it’s the right time for you to buy or sell is to talk to a trusted real estate professional.

Yesterday, a buyer client of mine made an offer on her dream condominium – and her offer was accepted!  Our very next step was to schedule her home inspection. The home inspection is vital component of any home buying process, whether a single family home or condominium. When making an offer on a home, you will want to include a provision in your Purchase & Sale Agreement that gives you the right to inspect the property – this will help you determine the condition of the home. Here is a brief discussion of inspection process, what it covers, and how you might proceed once you have the inspection report:

(more…)

A recent SeattlePI article entitled, “Home Buyers Finding Competition for Nice Homes in Seattle“  has done an excellent job of discussing a current market trend in Seattle home sales. The author and interviewed brokers argue that homes that are “turn-key” ( meaning that no repairs or upgrades are needed) are selling extremely quickly. In fact, many of these desirable homes are receiving multiple offers. The managing broker of my John L. Scott branch,Judi Hinson, has also remarked on this fact.  Out of 17 transactions that our branch handled in one week, 14 of those transactions were in multiple offer situations. Inventory is low and buyers looking for turn-key homes are faced with increasing competition!

So why are home values still dropping? Why are the average days on market still so high? And why does the general media keep reporting on a suffering housing market?

(more…)

By Ylan Q. Mui, Published: August 6
The Washington Post

The impact on your wallet of the Standard & Poor’s downgrade of the nation’s credit rating is similar to what would happen if your own credit score declined: The cost of borrowing money is likely to go up. Here are five things to keep in mind as financial markets respond to this historic event.

1) Uncle Sam’s interest rate may rise.
S&P is one of three major rating agencies that assess the riskiness of large institutions such as corporations and governments. The downgrade reflects a lack of confidence in the U.S. government to pay its debts over time. Riskier countries have to pay higher interest rates, just as riskier consumers do. S&P’s decision rocked the United States — and the world — because the nation has generally been considered one of the safest investments around.

2) If the government pays more, you pay more.
The interest rate the United States pays on its short-term loans is determined by the market for Treasury bills. The downgrade could increase the yields on those bonds, forcing the government to spend more to borrow the same amount of money. Many consumer loans, such as credit cards and mortgages, are linked to the yield on Treasuries and therefore would also rise.

(more…)

By Gilbert Mohtes-Chan, Inman News

Floor-to-ceiling, wall-to-wall shelving defines a compact, 557-square-foot home in Osaka prefecture, Japan, designed by Japanese Architect Kazuya Morita.

Designed for a young historian with an extensive book collection in Islamic history, Morita designed the house with interlocking laminated pine boards that slot together to form a lattice of towering shelving units.

Every element — from the stairs to the windows — were scaled to the individual shelf unit, “with the aim of achieving geometrical harmony which is comparable to Islamic architecture,” Morita’s website notes.

The shelving had to be strong enough to support the entire house. “This is an unusual structure. I never experienced this kind of architecture,” said Morita, who declined to disclose the cost to build the house. Numerous tests and experiments were run on models to ensure the structural integrity and convince city planning officials to issue a building permit. The home’s exterior features a painted clay and bamboo wall, with cedar exterior wall plate. The interior is finished with plaster.

“It can support 10 tons of books,” said Morita, who opened his architecture studio in 2000. And, he added, “it can survive earthquakes.”

The shelving even extends into the home’s bathroom, covering a wall above the toilet and bathtub…

Read the entire article at Yahoo Real Estate>

Your credit score is intended to predict how creditworthy you are and how likely you are to repay a loan and make the payments on time. Lenders, landlords and employers all use this score to access your “credit risk.” A good credit score can save you thousands over your financial lifetime. Here are some general tips for getting a great credit score: (more…)

Wondering about the direction of Seattle home prices in the next year? the next five years? Here’s a prediction from smartmoney.com. They present a fairly popular opinion, that Seattle home prices may decline in the next year, but (happily!) recover in the next five years. Check out the rest of the country while you’re there – some states are in for a bumpy ride!

Read Article at www.SmartMoney.com