Mark Nash, author of four real estate books including “1001 Tips for Buying and Selling a Home”, has completed his annual survey of 886 real estate agents in all fifty states in the U.S. and the eight provinces of Canada. “What’s in, What’s out with Homebuyers” illuminates what’s popular with home buyers, and what can sour them. Compiled annually from-the-trenches, it offers a spectrum of tips that cover deal and design no-no’s for home sellers and buyer must-haves.
What’s In
- Home buyers. What goes around comes around. Relegated during the boom years to bidding wars, over-full-price offers and new construction lotteries, buyers rule in 2008, and know it. With swelling inventories, they are looking for newly updated kitchens and baths, pristine conditions, and a perception of value.
- Destination bathrooms. The master bath has evolved into the home getaway with multiple task areas. Freestanding or “throne” bathtubs (bath thrones) in the center of a soaking room, multiple flat screens TV’s, and wireless Internet so you don’t miss anything as you move from bathing to grooming to lounging. They are outfitted with serving bars featuring wine coolers, espresso machines, and grazing snacks. There is also a burgeoning need for in-home hair salons.
- Short Sales. Home owners who have over-extended themselves financially are increasingly looking to their mortgage holder to accept less than is owed on their property. Some mortgagee’s will accept less than is owed through a short sale, in place of taking ownership of a home back through foreclosure.
- Pet showers. The kitchen or work sink is out for the dog bath. Dedicated dog showers are an emerging trend. Be it in a mud or utility room, garage corner or basement, dog lovers want a place to clean their favored pooch after a visit to the neighborhood dog park. Common dog showers feature a 3′ x 3′ shower base, surrounded by ceramic tile 4′ up the wall. Pet showers are all about the convenience for Fido to step in, and eliminate the master’s need to lift.
- Home elevators. The boomers want their vertical palaces with elegant min-elevators. No more unsightly and very 1970s chair-on-the-rail-system for these financially flush, forward-thinking home buyers.
- Outdoor living spaces that look interior. Massive, soaring “statement” fireplaces of cut stone, heated (think bathroom floors) flooring and walkways, entertaining sized custom kitchens, and indoor-looking artwork, fabrics, and finishes, but ones that can stand up to the elements.
- Down payments. Sexy home mortgages are out. Those who underwrite home loans are looking for substance from potential home buyers. Substance equates into disciplined savings and credit scores.
- A home’s carbon footprint. Manufactured homes, reused construction materials, and energy-friendly mechanical systems and appliances all reduce the need for fossil fuels. Home buyers are asking about how their potential new home can save the planet. It’s more than a trend, it’s a convenient truth.
- Monitoring and controlling with hand-held devices. Forgot to turn off the coffee maker, close/open the blinds, and turn the heat down or the air conditioning up? The latest in technology that utilize hand-held devices to open or close the blinds, turn on or off lights, or let Fido out the electronic pet door, around the corner or across the country.
- Floating Homes. Not just in Sausalito. If your hood has calm protected waters, you’ll soon have floating homes, those that look like conventional, soil-situated structures. From Louisiana to Vancouver, floating homes are at the top of must-have lists for those looking for a primary home to be lifestyle oriented. Plus, watching sunsets are a more enjoyable and greener alternative to lawn mowing.
- Concealed appliances. Buyers bypass matching cabinet panels that are used to disguise the ubiquitous refrigerator and dishwasher. Hinged and pocket doors are the latest way to integrate visually those boxy necessities and make the kitchen more non-traditional and less functional looking.
- Non-smoking Homeowners Associations. Who knew that some Homeowner Associations are rewriting by-laws and declarations to include those unit owners are not allowed to smoke inside their homes? Smoke-free common areas in addition to building-code-required ventilation systems and fresh-smelling hallways have taken precedence over individual’s rights to light up in their recliner.
- Off-grid homes. Solar panels, windmills and inverters are here to stay, in a big way. With brown-outs and power line-damaging storms on the increase, buyers in 2008 will ask for hybrid home-energy options, even being partially off-grid beats getting expensive power from coal-fired utilities, to these eco-energy users.
What’s Out
- Unrealistic home sellers. These relics of another time and market missed the cocktail party chat and water cooler angst by the transitional sellers of 2007. Cautions included: pricing their home right, consider home-sale contingencies, and offer closing cost givebacks. Hear-no-evil-sellers were overlooked by buyers who pined for reality minded ones. Because if sellers were flexible with buyers needs, buyers bought.
- Living rooms. The great room has replaced the living room in American residential culture. Informal lifestyles with eating, cooking and living spaces combined so family members and visiting friends can congregate together through various activities has conquered the forced museum. In viewing homes with buyers, I see the ex-museum used as work-out spaces, home offices, craft or hobby places, and I’ve seen more than once, the coveted living room with nothing more than a pool table as its solitary focus.
- Empty for sale homes. Buyers thought people “lived” in houses, but after seeing one-quarter of the homes they viewed empty, they wondered. Even though staging was the buzzword, getting that right was prickly in 2007. Those leftover silk flowers, the left behind mis-matched furniture, and the one-off design-show decorating scheme were buyer no-no’s. Neutral palettes, personal objects, thoughtful furniture rental, and something in the refrigerator says to buyers, maybe a person lives here.
- Double-digit home value appreciation. For now, the home as “get-rich-quick” investment is over. We’re back to pre-boom norm of housing or shelter. Flat or low single-digit appreciation in most markets in 2008.
- “Order-taking” real estate agents. The hive during the boom years was real estate, and multitudes of the dot-com-busted became the worker-bees of real estate sales. Everyone and anyone got licensed and into the frenzy. Little did they know that seasoned (pre-boom), full-time, professional agents possessed ready, willing and able buyers, knew how to sooth seller’s anxieties, and produced the fifth highest year in real estate sales in 2007.
- McMansions. Size doesn’t matter if it’s not well finished. A large voluminous home whose best attribute is the square-footage is waning. Home buyers are looking for quality, not quantity in 2008. After all, who has the money to replace the faux-hardwood floors, builder grade carpet and fiberglass bathtubs?
- Obese ceiling heights. It’s cheaper to go up than out. That’s been the thinking anyway as of late in residential design. Buyers have finally said enough, they prefer ceilings between nine and eleven feet. Anything more, especially in a smallish (under 10′ x 12′) room is waste. If you can’t add a loft in a soaring room, “down size me” height-wise, buyers say.
- Pioneering locations. Buyers have moved away from take-a-chance-hoods. Pioneering or off the beaten path areas were once the hot bed of potential appreciation. However, buyers in 2008 have returned to the tried-and-true address, keeping resale desirability firmly in mind when making a purchase.
- Balconies as a marketing gimmick. Functional outdoor space, not the anorexic appendage hanging off the building, is what buyers crave in outdoor space for 2008. Real balconies have room for a grill and a comfortable table and chairs. People love the outdoors and want to use it, but not only as a solo experience.
- Option ARMS (Adjustable Rate Mortgage). Buyers have heard that these loans usually have only one option; foreclosure. Used by the rich for short-term financing, they were re-packaged to buyers who wanted to qualify for the highest loan amount. Negative amortization is the harsh reality of Option ARMS. Home buyers should run, not walk, if these words are proposed as a financing option.
- Pre-construction pricing on new construction. Builders who are plunging ahead with new projects in 2008 will be better off with one pricing model from beginning to end, and eliminating their “everything’s an upgrade” mentality.
What’s on the Way Out
- Mosaic tile. Once deemed the ultimate in tile, now considered a very personal design commitment to the previous owner. The cost and waste to remove intricate mosaic is over-whelming to buyers, especially if it is has been recently installed. Even the most expensive, but not agreeable, tile could kill an otherwise acceptable property.
- Retro-1970s chic. Trend-obsolescence by buyers in 2007 was rampant. Loving the retro-seventies was easy, but hearing horror stories from would-be sellers about the market’s hesitance to buy a design white-elephant, made more main stream kitchens and baths a sensible decision. As one Gen X buyer said to me; “I love the dark espresso colored shag carpeting, but, I know my decorating needs will change, I want an interior that will transcend trends.” I replied, “You’re looking for a ‘transcendent look” and her response: “exactly.”
Monday, December 10, 2007
Tuesday, December 4, 2007
Despite Builder Incentives-Sales Stay Flat
WASHINGTON, D.C. - Builder confidence in the market for new single-family homes remained unchanged in November due to continuing mortgage market problems, a substantial inventory overhang and ongoing concerns about the effects of negative media coverage, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The November HMI held even with October's upwardly revised 19 reading, its lowest point since the series began in January of 1985.
"Consistent with what builders said in last month's survey, many are reporting that their special sales incentives are having limited success in terms of getting buyers in the door," said NAHB President Brian Catalde, a home builder from El Segundo, Calif. Of particular concern, he noted, is that negative media reports are dissuading buyers and fueling unrealistic expectations regarding home price discounts.
"To be more specific," Catalde said, "builders are worried that the national media has tended to report negative housing stories as if there is one real estate market, when, in fact, there is no such thing - all housing markets are local. As a result, some healthy markets are being unfairly impacted by this negative media coverage."
"The message from today's report is that builders do not see any significant change in housing market conditions as compared to last month," said NAHB Chief Economist David Seiders. "While they continue to work down inventories of unsold homes and reposition themselves for the market's eventual recovery, they realize it will be some time before market conditions support an upswing in building activity - most likely by the second half of 2008."
Derived from a monthly survey that NAHB has been conducting for more than 20 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as either "good," "fair" or "poor." The survey also asks builders to rate traffic of prospective buyers as either "high to very high," "average" or "low to very low." Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view sales conditions as good than poor.
In November, the index gauging current sales conditions for single-family homes remained flat at 18, while the index gauging sales expectations for the next six months declined a single point to 25. The index gauging traffic of prospective buyers rose two points to 17.
Regionally, the HMI results were mixed, with two regions reporting modest HMI gains and two reporting slight declines. The HMI for the Northeast gained one point to 27 and the HMI for the West gained three points to 18. Meanwhile, the HMI for the Midwest declined one point to 13 and the HMI for the South declined two points to 19.
"Consistent with what builders said in last month's survey, many are reporting that their special sales incentives are having limited success in terms of getting buyers in the door," said NAHB President Brian Catalde, a home builder from El Segundo, Calif. Of particular concern, he noted, is that negative media reports are dissuading buyers and fueling unrealistic expectations regarding home price discounts.
"To be more specific," Catalde said, "builders are worried that the national media has tended to report negative housing stories as if there is one real estate market, when, in fact, there is no such thing - all housing markets are local. As a result, some healthy markets are being unfairly impacted by this negative media coverage."
"The message from today's report is that builders do not see any significant change in housing market conditions as compared to last month," said NAHB Chief Economist David Seiders. "While they continue to work down inventories of unsold homes and reposition themselves for the market's eventual recovery, they realize it will be some time before market conditions support an upswing in building activity - most likely by the second half of 2008."
Derived from a monthly survey that NAHB has been conducting for more than 20 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as either "good," "fair" or "poor." The survey also asks builders to rate traffic of prospective buyers as either "high to very high," "average" or "low to very low." Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view sales conditions as good than poor.
In November, the index gauging current sales conditions for single-family homes remained flat at 18, while the index gauging sales expectations for the next six months declined a single point to 25. The index gauging traffic of prospective buyers rose two points to 17.
Regionally, the HMI results were mixed, with two regions reporting modest HMI gains and two reporting slight declines. The HMI for the Northeast gained one point to 27 and the HMI for the West gained three points to 18. Meanwhile, the HMI for the Midwest declined one point to 13 and the HMI for the South declined two points to 19.
Thursday, November 29, 2007
Prepare Your Home To Sell
Every seller wants her home to sell fast and bring top dollar. Does that sound good to you? Well, it's not luck that makes that happen. It's careful planning and knowing how to professionally spruce up your home that will send home buyers scurrying for their checkbooks. Here is how to prep a house and turn it into an irresistible and marketable home.
1. Disassociate Yourself With Your Home.
Say to yourself, "This is not my home; it is a house -- a product to be sold much like a box of cereal on the grocery store shelf.
Make the mental decision to "let go" of your emotions and focus on the fact that soon this house will no longer be yours.
Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners!
Say goodbye to every room.
Don't look backwards -- look toward the future.
2. De-Personalize.
Pack up those personal photographs and family heirlooms. Buyers can't see past personal artifacts, and you don't want them to be distracted. You want buyers to imagine their own photos on the walls, and they can't do that if yours are there! You don't want to make any buyer ask, "I wonder what kind of people live in this home?" You want buyers to say, "I can see myself living here."
3. De-Clutter!
People collect an amazing quantity of junk. Consider this: if you haven't used it in over a year, you probably don't need it.
If you don't need it, why not donate it or throw it away?
Remove all books from bookcases.
Pack up those knickknacks.
Clean off everything on kitchen counters.
Put essential items used daily in a small box that can be stored in a closet when not in use.
Think of this process as a head-start on the packing you will eventually need to do anyway.
Rearrange Bedroom Closets and Kitchen Cabinets. Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:
Alphabetize spice jars.
Neatly stack dishes.
Turn coffee cup handles facing the same way.
Hang shirts together, buttoned and facing the same direction.
Line up shoes.
4. Rent a Storage Unit.
Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room's purpose and plenty of room to move around. You don't want buyers scratching their heads and saying, "What is this room used for?"
5. Remove/Replace Favorite Items.
If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won't want it. Once you tell a buyer she can't have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.
6. Make Minor Repairs.
Replace cracked floor or counter tiles.
Patch holes in walls.
Fix leaky faucets.
Fix doors that don't close properly and kitchen drawers that jam.
Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls. (Don't give buyers any reason to remember your home as "the house with the orange bathroom.")
Replace burned-out light bulbs.
If you've considered replacing a worn bedspread, do so now!
Make the House Sparkle!
Wash windows inside and out.
Rent a pressure washer and spray down sidewalks and exterior.
Clean out cobwebs.
Re-caulk tubs, showers and sinks.
Polish chrome faucets and mirrors.
Clean out the refrigerator.
Vacuum daily.
Wax floors.
Dust furniture, ceiling fan blades and light fixtures.
Bleach dingy grout.
Replace worn rugs.
Hang up fresh towels.
Bathroom towels look great fastened with ribbon and bows.
Clean and air out any musty smelling areas. Odors are a no-no.
Scrutinize.
Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?
Linger in the doorway of every single room and imagine how your house will look to a buyer.
Examine carefully how furniture is arranged and move pieces around until it makes sense.
Make sure window coverings hang level.
Tune in to the room's statement and its emotional pull. Does it have impact and pizzazz?
Does it look like nobody lives in this house? You're almost finished.
Check Curb Appeal.If a buyer won't get out of her agent's car because she doesn't like the exterior of your home, you'll never get her inside.
Keep the sidewalks cleared.
Mow the lawn.
Paint faded window trim.
Plant yellow flowers or group flower pots together. Yellow evokes a buying emotion. Marigolds are inexpensive.
Trim your bushes.
Make sure visitors can clearly read your house number.
1. Disassociate Yourself With Your Home.
Say to yourself, "This is not my home; it is a house -- a product to be sold much like a box of cereal on the grocery store shelf.
Make the mental decision to "let go" of your emotions and focus on the fact that soon this house will no longer be yours.
Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners!
Say goodbye to every room.
Don't look backwards -- look toward the future.
2. De-Personalize.
Pack up those personal photographs and family heirlooms. Buyers can't see past personal artifacts, and you don't want them to be distracted. You want buyers to imagine their own photos on the walls, and they can't do that if yours are there! You don't want to make any buyer ask, "I wonder what kind of people live in this home?" You want buyers to say, "I can see myself living here."
3. De-Clutter!
People collect an amazing quantity of junk. Consider this: if you haven't used it in over a year, you probably don't need it.
If you don't need it, why not donate it or throw it away?
Remove all books from bookcases.
Pack up those knickknacks.
Clean off everything on kitchen counters.
Put essential items used daily in a small box that can be stored in a closet when not in use.
Think of this process as a head-start on the packing you will eventually need to do anyway.
Rearrange Bedroom Closets and Kitchen Cabinets. Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:
Alphabetize spice jars.
Neatly stack dishes.
Turn coffee cup handles facing the same way.
Hang shirts together, buttoned and facing the same direction.
Line up shoes.
4. Rent a Storage Unit.
Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room's purpose and plenty of room to move around. You don't want buyers scratching their heads and saying, "What is this room used for?"
5. Remove/Replace Favorite Items.
If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won't want it. Once you tell a buyer she can't have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.
6. Make Minor Repairs.
Replace cracked floor or counter tiles.
Patch holes in walls.
Fix leaky faucets.
Fix doors that don't close properly and kitchen drawers that jam.
Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls. (Don't give buyers any reason to remember your home as "the house with the orange bathroom.")
Replace burned-out light bulbs.
If you've considered replacing a worn bedspread, do so now!
Make the House Sparkle!
Wash windows inside and out.
Rent a pressure washer and spray down sidewalks and exterior.
Clean out cobwebs.
Re-caulk tubs, showers and sinks.
Polish chrome faucets and mirrors.
Clean out the refrigerator.
Vacuum daily.
Wax floors.
Dust furniture, ceiling fan blades and light fixtures.
Bleach dingy grout.
Replace worn rugs.
Hang up fresh towels.
Bathroom towels look great fastened with ribbon and bows.
Clean and air out any musty smelling areas. Odors are a no-no.
Scrutinize.
Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?
Linger in the doorway of every single room and imagine how your house will look to a buyer.
Examine carefully how furniture is arranged and move pieces around until it makes sense.
Make sure window coverings hang level.
Tune in to the room's statement and its emotional pull. Does it have impact and pizzazz?
Does it look like nobody lives in this house? You're almost finished.
Check Curb Appeal.If a buyer won't get out of her agent's car because she doesn't like the exterior of your home, you'll never get her inside.
Keep the sidewalks cleared.
Mow the lawn.
Paint faded window trim.
Plant yellow flowers or group flower pots together. Yellow evokes a buying emotion. Marigolds are inexpensive.
Trim your bushes.
Make sure visitors can clearly read your house number.
Wednesday, November 28, 2007
Seattle August 2007 Home Sales
by Real Estate Analyst John Karevoll, October 1, 2007
The Seattle region's housing market continued to fare better than most last month but gravity has definitely returned: Sales fell to the lowest level for an August in five years, with the sharpest declines in the most affordable neighborhoods. Price appreciation continued to wane, a real estate information service reported.
A total of 6,497 new and resale houses and condos closed escrow in the Seattle-Tacoma-Bellevue metro area encompassing King, Snohomish and Pierce counties. That was up 0.5 percent from 6,464 in July but down 23.4 percent from 8,483 in August 2006, according to DataQuick Information Systems of La Jolla, Calif. The firm tracks real estate trends nationally via public property records.
Last month's sales total was the lowest for an August since 6,045 homes sold in August 2002, and it was 8.5 percent lower than the region's average 7,101 sales during the month of August over the past decade. Last month marked the 15th consecutive month in which regional sales have fallen on a year-over-year basis. The 23.4 percent annual sales decline was the largest for any month since sales fell 25.3 percent in March 2001.
The months-long trend of sales falling harder in lower-cost areas continued. Combined sales in zip codes with a median price below $300,000 dropped 35 percent in August compared with a year ago, while total sales in zips with a $500,000-plus median declined 18.6 percent. The percent of total resale activity occurring in zips with a $500,000-plus median rose to 24.9 percent, up from 22.7 percent a year ago. This analysis was based on resales of detached houses only in zips where at least 25 houses resold in August.
The median price paid for all metro area homes combined in August was $355,950, down 2.5 percent from the record $365,200 median in June. Last month?s median was also about 2.5 percent lower than the $365,000 median in July and was 3.9 percent higher than the $342,700 median in August 2006. Appreciation continues to ratchet down: A year ago the August median rose 13.9 percent on a year-over-year basis. And the last time the median saw a lower annual gain than last month's 3.9 percent increase was back in April 2003, when it rose 3.2 percent.
In August, each of the region's three counties saw its overall median sale price remain higher than a year ago but the annual gains were the lowest in several years, and all of the medians were below peak levels. King County's overall median was $399,950, up 4.7 percent from a year ago; Pierce County's $280,000, up 2.4 percent; and Snohomish's $345,000, up 3 percent.
The recent shift in Seattle and many other U.S. housing markets toward a greater portion of sales occurring outside the most affordable communities puts upward pressure on the median sale price, aside from any appreciation that might be occurring. Therefore, the year-over-year increases in the median are likely overstating the extent to which prices have risen in some areas.
Another gauge of home pricing, the median price paid per square foot for resale single-family (detached) houses, also suggests that appreciation has steadily declined this year. Last month Seattle's regional median per square foot fell to $237, down from a record of $240 reached in June and July. Each of the three county's median per square foot remained above year-ago levels last month but was 1 to 1.8 percent lower than the peak level reached earlier this year.
by Real Estate Analyst John Karevoll, October 1, 2007
The Seattle region's housing market continued to fare better than most last month but gravity has definitely returned: Sales fell to the lowest level for an August in five years, with the sharpest declines in the most affordable neighborhoods. Price appreciation continued to wane, a real estate information service reported.
A total of 6,497 new and resale houses and condos closed escrow in the Seattle-Tacoma-Bellevue metro area encompassing King, Snohomish and Pierce counties. That was up 0.5 percent from 6,464 in July but down 23.4 percent from 8,483 in August 2006, according to DataQuick Information Systems of La Jolla, Calif. The firm tracks real estate trends nationally via public property records.
Last month's sales total was the lowest for an August since 6,045 homes sold in August 2002, and it was 8.5 percent lower than the region's average 7,101 sales during the month of August over the past decade. Last month marked the 15th consecutive month in which regional sales have fallen on a year-over-year basis. The 23.4 percent annual sales decline was the largest for any month since sales fell 25.3 percent in March 2001.
The months-long trend of sales falling harder in lower-cost areas continued. Combined sales in zip codes with a median price below $300,000 dropped 35 percent in August compared with a year ago, while total sales in zips with a $500,000-plus median declined 18.6 percent. The percent of total resale activity occurring in zips with a $500,000-plus median rose to 24.9 percent, up from 22.7 percent a year ago. This analysis was based on resales of detached houses only in zips where at least 25 houses resold in August.
The median price paid for all metro area homes combined in August was $355,950, down 2.5 percent from the record $365,200 median in June. Last month?s median was also about 2.5 percent lower than the $365,000 median in July and was 3.9 percent higher than the $342,700 median in August 2006. Appreciation continues to ratchet down: A year ago the August median rose 13.9 percent on a year-over-year basis. And the last time the median saw a lower annual gain than last month's 3.9 percent increase was back in April 2003, when it rose 3.2 percent.
In August, each of the region's three counties saw its overall median sale price remain higher than a year ago but the annual gains were the lowest in several years, and all of the medians were below peak levels. King County's overall median was $399,950, up 4.7 percent from a year ago; Pierce County's $280,000, up 2.4 percent; and Snohomish's $345,000, up 3 percent.
The recent shift in Seattle and many other U.S. housing markets toward a greater portion of sales occurring outside the most affordable communities puts upward pressure on the median sale price, aside from any appreciation that might be occurring. Therefore, the year-over-year increases in the median are likely overstating the extent to which prices have risen in some areas.
Another gauge of home pricing, the median price paid per square foot for resale single-family (detached) houses, also suggests that appreciation has steadily declined this year. Last month Seattle's regional median per square foot fell to $237, down from a record of $240 reached in June and July. Each of the three county's median per square foot remained above year-ago levels last month but was 1 to 1.8 percent lower than the peak level reached earlier this year.
Tuesday, November 27, 2007
Prepare Your Home to Welcome Old Man Winter
Ice, snow and wind can have devastating consequences on the coziest of homes. Last winter alone there was over $1.5 billion dollars in insured losses due to burst pipes, frozen gutters and other weather-related disasters, according to the Insurance Information Institute (I.I.I.).
"It is when the leaves start to turn and not when the snow is beginning to fall that homeowners need to get ready for severe winter weather," says Jayna Neagle, spokeswoman for the I.I.I. "A little time and effort in October or November can prevent the heartache of burst pipes and other disasters when Old Man Winter brings snow, freezing temperatures and arctic winds.
The I.I.I. suggests that homeowners take the following precautions:
Maintain gutters. Remove leaves, acorns, sticks and other debris from gutters, so melting snow and ice can flow freely. This can prevent ice damming - a condition where water is unable to properly drain through the gutters and instead seeps into the house causing water to drip from the ceiling and walls. You may also consider installing "gutter guards." Available in most hardware and home stores, gutter guards are screens that prevent debris from entering the gutter and direct the flow of water away from the house and into the ground.
Trim trees and remove dead branches. Ice, snow and wind could cause weak trees or branches to break - damaging your home, car or injuring someone walking on your property.
Check insulation. Add extra insulation to attics, basements and crawl spaces. If too much heat escapes through the attic it can cause snow or ice to melt on the roof. The water re-freezes causing more snow and ice to build up. This can result in a collapsed roof, and can contribute to ice damming. Ideally, the attic should be five to ten degrees warmer than the outside air. Well-insulated basements and crawl spaces will also help protect pipes from freezing.
Maintain pipes. Wrap pipes with heating tape and insulate unfinished rooms such as garages that frequently have exposed pipes. Also, check for cracks and leaks. Have them repaired immediately to prevent much costlier repairs.
Keep the House Warm. The temperature in the home should be at least 65 degrees. The temperature inside the walls where the pipes are located is substantially colder than the walls themselves. A temperature lower than 65 degrees will not keep the pipes from freezing.
Check heating systems. The proper use and maintenance of furnaces, fireplaces and wood-burning stoves can prevent fire and smoke damage. Have furnaces, boilers and chimneys serviced at least once a year. Make sure that smoke and fire alarms are working properly and consider installing a carbon dioxide detector.
Make sure steps and handrails are in good shape. Broken stairs and banisters can become lethal when covered with snow and ice. Make repairs now to prevent someone from falling and seriously being injured.
Get to know your plumbing. Learn how to shut the water off and know where your pipes are located. If your pipes do freeze, time is of the essence. The quicker you can shut off the water or direct your plumber to the problem, the better chance you have to prevent the pipes from bursting.
Hire a licensed contractor. Have a professional survey your home for any structural damage. If damage is discovered, have it repaired now so further damage will not occur during the winter. Also, find out about ways to prevent water damage due to snow-related flooding. Plastic coatings for internal basement walls, sump pumps and other methods can prevent damage to your home and belongings.
Take special care if you plan to be away from home. If you are not going to be in your home this winter for an extended period of time, have the water system drained by a professional to keep pipes from freezing or bursting. Also, hire someone to check on your home on a regular basis. If there is a problem, it can be fixed quickly - lessening any damage. Activity at your home will also reduce the likelihood that it will be burglarized.
Standard homeowners policies cover winter-related disasters such as burst pipes, ice dams, wind damage caused by weight of ice or snow.
Damage to homes caused by flooding is usually excluded from most standard homeowner policies. Flood insurance is available from the National Flood Insurance Program. Ask your insurance professional about flood insurance, as well as specific advice about winter-proofing your home. Written by Realty Times Staff
Monday, November 26, 2007
MORTGAGE REFORM
Is Washington Ready For Mortgage Reform?
by Peter G. Miller as published on REALTYTIMES.com
Lenders and lawmakers have been clashing on Capitol Hill during the past few months, and now for the first time a serious attempt at mortgage reform has a chance of passage.
So far, the House of Representatives has approved the so-called "Mortgage Reform and Anti-Predatory Lending Act of 2007 by a veto-proof margin, 291-127.
In passing the reform bill, the House approved a series of benchmarks that would revolutionize the lending industry if the bill becomes law. For instance:
The bill says loan originators would have to be licensed. Licensing means that there would be educational standards and clear ethical requirements.
The legislation requires lenders to show that a borrower has a reasonable ability to repay a loan at the fully-indexed rate, not just a teaser rate. This means lenders will have to fully document virtually all loans to reduce their liability.
So why do some lenders like the House bill while other lenders and consumer groups are opposed?
Few lenders actually like the House bill, what some like is that it did not go as far as it might have gone. In other words, the reform bill is the best they could get.
Other lenders oppose the bill because they believe that for the first time lenders will have an obligation to get the best possible price and terms for borrowers, a standard that does not now exist for federally-regulated lenders or those in most states.
Meanwhile, while consumer and civil rights groups are generally happy with the reform bill, they want it to go further. For instance, AARP, the AFL-CIO and the Consumer Federation of America say the bill does not provide sufficient grounds to sue unscrupulous lenders.
Stay tuned. The great mortgage debate of 2007 has just begun.
by Peter G. Miller as published on REALTYTIMES.com
Lenders and lawmakers have been clashing on Capitol Hill during the past few months, and now for the first time a serious attempt at mortgage reform has a chance of passage.
So far, the House of Representatives has approved the so-called "Mortgage Reform and Anti-Predatory Lending Act of 2007 by a veto-proof margin, 291-127.
In passing the reform bill, the House approved a series of benchmarks that would revolutionize the lending industry if the bill becomes law. For instance:
The bill says loan originators would have to be licensed. Licensing means that there would be educational standards and clear ethical requirements.
The legislation requires lenders to show that a borrower has a reasonable ability to repay a loan at the fully-indexed rate, not just a teaser rate. This means lenders will have to fully document virtually all loans to reduce their liability.
So why do some lenders like the House bill while other lenders and consumer groups are opposed?
Few lenders actually like the House bill, what some like is that it did not go as far as it might have gone. In other words, the reform bill is the best they could get.
Other lenders oppose the bill because they believe that for the first time lenders will have an obligation to get the best possible price and terms for borrowers, a standard that does not now exist for federally-regulated lenders or those in most states.
Meanwhile, while consumer and civil rights groups are generally happy with the reform bill, they want it to go further. For instance, AARP, the AFL-CIO and the Consumer Federation of America say the bill does not provide sufficient grounds to sue unscrupulous lenders.
Stay tuned. The great mortgage debate of 2007 has just begun.
Monday, November 19, 2007
Thanksgiving Facts
A DAY OF THANKS
Thanksgiving is upon us! This popular autumn holiday traces its roots back to a three-day feast held in 1621 to celebrate the blessing of a bountiful harvest. It took more than 240 years, however, for Thanksgiving to become a national holiday. In 1863, President Abraham Lincoln finally proclaimed the last Thursday of November as a national day of thanksgiving. Years later, President Franklin Roosevelt stated that Thanksgiving should always be celebrated on the fourth Thursday of the month--as opposed to the occasional fifth Thursday.
Mmmm... Eel and Seal. My favorite!
What exactly did the pilgrims eat at the first Thanksgiving? According to food historian Kathleen Curtin, the answer may surprise you. In addition to wild turkey, other popular sources of meat that were likely served include eel, clams, lobster, wild goose, eagles, venison, and seal...yes, seal. Peas, beans, and carrots were probably on the table, but sweet potatoes and corn on the cob weren't. And although pumpkins were likely consumed, pumpkin pie wasn't...because no such thing existed at that time.
Talking Turkey...272 Million Turkeys!
The popularity of turkeys during the holidays and throughout the year has turned turkey farming into a big business. In fact, the USDA National Agricultural Statistics Service estimates that 272 million turkeys will be raised in the US this year alone. That's an increase of 4% over 2006!
Weighing In on What We Eat
Ever wonder how many cranberries, pumpkins, and other Thanksgiving Day foods we go through each year? The US Census Bureau has the skinny! According to their research, the US produces some serious poundage when it comes to these holiday favorites, including:
690 million pounds of cranberries
1.6 billion pounds of sweet potatoes
1 billion pounds of pumpkins
841,280 tons of snap green beans
No wonder we feel so full after those holiday meals!
Can Turkey Really Make You Tired?
Here's how the story goes. Turkey contains tryptophan...which helps the body produce niacin...which then helps produce serotonin. And serotonin is the key to this theory because it calms the brain and induces sleep.
The problem with that theory is that tryptophan actually works best on an empty stomach-which most of us don't have after our Thanksgiving feast! So, it's more likely that the heaviness and the high carbohydrate content of the entire Thanksgiving meal are responsible for that sense of lethargy you feel, as your body works to digest it all. Add a glass of wine or a cocktail to your meal, and you'll increase that sense of sleepiness even more.
Here's to another happy Thanksgiving Day for you and yours! As always, if you have any questions or need any assistance, please don't hesitate to call.
Thanksgiving is upon us! This popular autumn holiday traces its roots back to a three-day feast held in 1621 to celebrate the blessing of a bountiful harvest. It took more than 240 years, however, for Thanksgiving to become a national holiday. In 1863, President Abraham Lincoln finally proclaimed the last Thursday of November as a national day of thanksgiving. Years later, President Franklin Roosevelt stated that Thanksgiving should always be celebrated on the fourth Thursday of the month--as opposed to the occasional fifth Thursday.
Mmmm... Eel and Seal. My favorite!
What exactly did the pilgrims eat at the first Thanksgiving? According to food historian Kathleen Curtin, the answer may surprise you. In addition to wild turkey, other popular sources of meat that were likely served include eel, clams, lobster, wild goose, eagles, venison, and seal...yes, seal. Peas, beans, and carrots were probably on the table, but sweet potatoes and corn on the cob weren't. And although pumpkins were likely consumed, pumpkin pie wasn't...because no such thing existed at that time.
Talking Turkey...272 Million Turkeys!
The popularity of turkeys during the holidays and throughout the year has turned turkey farming into a big business. In fact, the USDA National Agricultural Statistics Service estimates that 272 million turkeys will be raised in the US this year alone. That's an increase of 4% over 2006!
Weighing In on What We Eat
Ever wonder how many cranberries, pumpkins, and other Thanksgiving Day foods we go through each year? The US Census Bureau has the skinny! According to their research, the US produces some serious poundage when it comes to these holiday favorites, including:
690 million pounds of cranberries
1.6 billion pounds of sweet potatoes
1 billion pounds of pumpkins
841,280 tons of snap green beans
No wonder we feel so full after those holiday meals!
Can Turkey Really Make You Tired?
Here's how the story goes. Turkey contains tryptophan...which helps the body produce niacin...which then helps produce serotonin. And serotonin is the key to this theory because it calms the brain and induces sleep.
The problem with that theory is that tryptophan actually works best on an empty stomach-which most of us don't have after our Thanksgiving feast! So, it's more likely that the heaviness and the high carbohydrate content of the entire Thanksgiving meal are responsible for that sense of lethargy you feel, as your body works to digest it all. Add a glass of wine or a cocktail to your meal, and you'll increase that sense of sleepiness even more.
Here's to another happy Thanksgiving Day for you and yours! As always, if you have any questions or need any assistance, please don't hesitate to call.
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