Not even the lowest interest rates in decades could entice wary house-hunters last month. Home sales around Western and Central Washington remained sluggish with pending sales lagging year-ago levels, but not all the numbers were down.
June’s pending sales (mutually accepted offers) outgained the total for May by 5.8 percent. Closed sales were up from both a year ago and the previous month. Brokers also applauded congressional approval of legislation to extend the tax credit deadline on contracts signed by the April 30 deadline. That measure, which President Obama signed on July 2, pushes the deadline to Sept. 30.
“In general consumers seem to be stuck in uncertainty surrounding the world’s economic concerns, our lack of jobs and the rollercoaster of the stock market. They seem to be hunkering down despite the lowest interest rates in years,” said NWMLS director Frank Wilson. On a more upbeat note, Wilson said the deadline extension for the tax credit is good news. “Congress has acknowledged the length of time it is taking banks to close a transaction by passing this extension,” he remarked. Without the extension, the National Association of Realtors estimates as many as 180,000 buyers wouldn’t have qualified for a tax credit of up to $8,000 because they couldn’t meet the June 30 deadline to close on their purchase.
The latest report from Northwest Multiple Listing Service shows mixed news across its 21-county market area, with arrows going in both directions.
“The current market is not as bad as some people think, and not as good as some people would like it to be,” observed NWMLS director Pat Grimm. He also said the combination of low interest rates and affordable prices are the best he’s seen in his 25 years of experience in real estate.
The MLS summary statistics for June show: Pending sales of single family homes and condominiums (combined) fell 28 percent from a year ago, but rose 5.8 percent from May. Year-to-date (through June), pending sales are up 12.4 percent compared to midyear 2009. Closed sales for June outgained the same month a year ago by 617 transactions (up 12 percent), and rose 8.9 percent from May’s total. The median price for last month’s completed transactions is down about 7 percent from twelve months ago. Four counties (Cowlitz, Grays Harbor, Lewis and Pacific) reported price increases from a year ago, while eight other counties had declines of less than 5 percent.
NWMLS director Wilson surmised the drop in pending sales could be just a dip as kids get out of school “and we rush to embrace summer” or a “hangover from the tax credit,” but cautioned, “It’s too early to tell.”
“The economy is still recovering and that makes some consumers hesitant to buy,” Grimm stated, adding, “On the other hand, with prices down and mortgage rates at their lowest in 50 years, homes are more affordable now than they were before the tax credit went into effect.”
Grimm said the market has created its own incentive for buyers who missed out on the most recent tax credit. “Lower prices and lower interest rates more than offset the benefit of the tax credit. Homes are actually more affordable than they were three months ago, and that factors in the tax credit,” he emphasized. To illustrate his point, he said the purchaser of a $500,000 property this month with a $400,000 mortgage would save more than $250 per month as a result of the interest rate drop. “Do the math and you can see you are way ahead if you stay in the property for more than three years.”
House-hunters have plenty of choices. Brokers added 10,354 new listings to inventory last month, bringing the selection to 42,940 residences being offered for sale system-wide. That’s up about 4 percent from a year ago. Included in the current listings are 36,027 single family homes priced from $8,500 to $25 million, and 6,913 condominiums priced from $20,000 to $15.6 million.
Asked if now is the right time to buy, Grimm replied, “You can’t time the real estate market any more than you can time the stock market,” but added, “If you want to buy a home, and can afford it, I haven’t seen a better convergence of affordable prices and low interest rates in the 25 years I’ve been working in real estate.”
Last week’s benchmark 30-year fixed-rate mortgage fell to 4.75 percent, according to the Bankrate.com national survey of large lenders. That’s the lowest rate for the 30-year fixed in the nearly 25-year history of Bankrate's weekly survey. Freddie Mac reported an average of 4.58 percent, the lowest level in more than five decades.
Mark Fleming, chief economist for CoreLogic, said economists at that California-based firm see a U-shaped recovery, similar to the 2000 recession, but with a longer, more pronounced bottom. Because of various factors at play, including the expiration of the tax incentives and various mortgage modification programs affecting distressed properties, he expects the real estate market to “sag through the summer and slower cooler months,” but believes it will eventually grow in line with economic and income growth “as we put the great recession further behind us.”
Northwest Multiple Listing Service, owned by its member brokers, is the largest full-service MLS in the Northwest. Its membership includes more than 24,000 brokers and agents. The organization, based in Kirkland, currently serves 21 counties in Western and Central Washington.
Statistical Summary of Market Activity - June 2010
Single Fam. Homes + Condos in Thurston County
NEW LISTINGS = 525
TOTAL ACTIVE = 1,973
# Pending Sales = 303
# Closings = 296
Avg. Price = $252,888
Median Price = $235,000
Tuesday, July 6, 2010
Thursday, April 29, 2010
Renew Tabs Online & Save!
If customers who regularly use the Internet to renew their tabs sign up for email renewal, DOL would avoid printing 1 million notices over the next year. This would save 2,000 reams of paper and 2 million envelopes, as well as approximately $500,000 in printing and mailing costs.
To sign up for email renewal notices through the Department of Licensing (DOL) website at www.dol.wa.gov, when renewing tabs online, or at a neighborhood vehicle licensing office. Email renewal notices provide all of the information on a traditional paper renewal notice. They also have a direct link to DOL’s online vehicle tab renewal system.
Using the link to the online renewal system, you can have new tabs ordered and on their way within minutes of receiving the notice. As more and more people become accustomed to receiving bills and bank statements over the Internet, the agency is hoping people embrace email renewal notices.
To sign up for email renewal notices through the Department of Licensing (DOL) website at www.dol.wa.gov, when renewing tabs online, or at a neighborhood vehicle licensing office. Email renewal notices provide all of the information on a traditional paper renewal notice. They also have a direct link to DOL’s online vehicle tab renewal system.
Using the link to the online renewal system, you can have new tabs ordered and on their way within minutes of receiving the notice. As more and more people become accustomed to receiving bills and bank statements over the Internet, the agency is hoping people embrace email renewal notices.
Saturday, April 24, 2010
Tax Credits Expire in 4 Days!
If you are looking to purchase a home and take advantage of the Federal Home Buyer Tax Credit you only have a few days left. You must have a binding sales contract on or before April 30, 2010 to qualify.
Here are the rules for a First Time Buyer or Move Up Buyer.
$8,000 First-time Home Buyer Tax Credit at a Glance
~The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
~The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer's principal residence within three years after the initial purchase.
~The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.
~The tax credit applies only to homes priced at $800,000 or less.
~The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
~For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
~For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance
~To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
~The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer's principal residence within three years after the initial purchase.
~The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $6,500.
~The tax credit applies only to homes priced at $800,000 or less.
~The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
~Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
Here are the rules for a First Time Buyer or Move Up Buyer.
$8,000 First-time Home Buyer Tax Credit at a Glance
~The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
~The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer's principal residence within three years after the initial purchase.
~The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.
~The tax credit applies only to homes priced at $800,000 or less.
~The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
~For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
~For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance
~To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
~The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer's principal residence within three years after the initial purchase.
~The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $6,500.
~The tax credit applies only to homes priced at $800,000 or less.
~The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
~Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
Thursday, April 22, 2010
Earth Day 2010: 10 Things You Can Do To Celebrate Mother Earth
Today, the Earth celebrates its big day. And on this, the 40th anniversary of Earth Day, we are reminded of how far we've come - and how far we have to go.
What can you do for Earth Day? Anything that is meaningful to you and planet Earth.
You can start with simple changes in the home, in the garden and on the road. Take a look at these money savers for greening your home.
1. Fix faucet leaks — A leaky faucet that drips at the rate of one drip per second can waste more than 3,000 gallons a year.
2. Seal drafty windows and doors — A home can lose about 50 percent of its heat or cool air through drafty windows and doors.
3. Avoid running water — Turn water off while you brush your teeth.
4. Say no to plastic — According to data released by the U.S. Environmental Protection Agency in 2001, about 1 trillion plastic bags are consumed worldwide annually, and it can take months to hundreds of years for these bags to break down. Bring your own reusable bags to the grocery store.
5. Use energy-efficient appliances — The average household can save up to $400 annually by using energy-efficient appliances.
6. Replace light bulbs — One fluorescent bulb can save approximately $30 over its lifetime and pay for itself in six months.
7. Start a compost pile — According to the EPA, 23 percent of U.S. waste materials sent to landfills, such as yard trimmings and leftover food, could be used as compost.
8. Slow it down — Sticking to the speed limit and keeping tires property inflated can help increase fuel efficiency and reduce emissions.
9. Raise the thermostat — Households will save up to 3 percent per month in energy costs by raising the air conditioner thermostat for every degree above 72 degrees.
10. Think before wrapping — Be creative and use newspaper, take-out menus, old calendars and wallpaper to wrap gifts.
11. Make energy-efficient home improvements — The American Recovery and Reinvestment Act of 2009 extends, expands and simplifies the federal income tax credits for homeowners who make energy efficiency home improvements. The law extends the consumer tax benefits through this year.
Happy Birthday Mother Earth!
Wednesday, April 21, 2010
Kick-Off Blood Drive A Huge Success
This year more than 200,000 people in western Washington will donate blood at Puget Sound Blood Centers. Because of their generosity, PSBC is able to serve 70 hospitals and 21 clinics in western Washington. Every day, PSBC delivers more than 1000 units of lifesaving blood.
Earlier this year, I proposed to my local Realtor office, Thurston County REALTORS Association (TCRA), that we re-establish our affiliation with the Puget Sound Blood Center. My proposal explained that each month, a Broker Member Office would hold a mobile blood drive at their location.
With 100% support by the Board of Directors, I scheduled the first mobile blood drive to be held at my office, RE/MAX Parkside Affiliates and over a month's time, I secured the 20+ donors needed.
Today was our first mobile blood drive and it was a bloody success! We had 25 blood donors and 15 of them were first time donors! I am extremely grateful to those who took the 45 minutes out of their day to participate in this event.
Every day something remarkable happens. And every day Puget Sound Blood Center makes it possible.
Monday, April 19, 2010
2010 Procession of the Species
People celebrating community through nature... Olympia's 16th Procession of the Species will be on April 24th 2010 at 4:30pm!
Their mission: To empower communities to engage in cultural relationships with the natural world as a means of sustaining efforts of environmental protection and restoration.
We enjoy this event with our entire family each year. Don't miss it!
Their mission: To empower communities to engage in cultural relationships with the natural world as a means of sustaining efforts of environmental protection and restoration.
We enjoy this event with our entire family each year. Don't miss it!
Friday, April 16, 2010
South Sound Green Tour
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