iRealty

Forecast Predicts Lower Rates Next Year

2006-12-09T11:28:00.000-08:00

How this will affect the greater Seattle region is still hard to predict. We have not felt the housing downturn as much as some regions. I believe that values are still adjusting back to a norm following a very inflated marketplace.

A weakening U.S. economy is setting the stage for lower interest rates, according to a UCLA Anderson Forecast released today.

The forecast predicts real gross domestic product will rise no more than 2.7 percent next year, reflecting the weak housing market.

As a result, the Federal Reserve Board will cut interest rates to stimulate business, says Edward Leamer, director of the UCLA Anderson Forecast. Leamer says he sees the Federal Funds rate falling to 4.5 percent by the fourth quarter of next year.

Leamer also thinks housing starts will bottom out at an annual rate of 1.4 million in the second quarter of next year. As builders seek to sell inventory, new-home prices will fall to a low in the third quarter of 2007, down 10 percent from current levels, he says.

Prices for existing homes also will "nudge down a bit," he adds, noting the housing market downturn will hurt home builders, construction workers, real estate practitioners, and bankers, but will not be so severe as to force a recession.

Foreclosures Increase 17 Percent in Third Quarter, Up 43 Percent From 2005

2006-11-19T09:03:00.000-08:00

I found this information on the current foreclosure data and wanted to share it with all of you. It's no wonder that we are seeing this trend after our inflated market corrected itself. A misconception that I feel many have is that homes have lost value; in reality home prices have corrected back to a reality driven market. The frenzied multiple bidding wars where prices were paid far over fair market value over the past year to year and a half is what I think caused this correction.

The good news: it's a great time for buyers and sellers if prices are realistic for the marketplace of today.

RealtyTrac^TM released its Q3 2006 U.S. Foreclosure Market Report showing that 318,355 properties entered some stage of foreclosure nationwide during the third quarter of 2006, a 17 percent increase from the previous quarter and a 43 percent yearly increase from the third quarter of 2005. The nation had a foreclosure rate of one foreclosure filing for every 363 households during the quarter, slightly higher than last quarter's rate of one foreclosure filing for every 425 households, but lower than the first-quarter rate of one foreclosure filing for every 358 households.

"Higher interest rates and a general softening of the real estate market are the two key factors contributing to the 43 percent increase in foreclosure filings from the third quarter of 2005," said James J. Saccacio, chief executive officer of RealtyTrac. "What our third quarter research appears to be showing is that the first wave of adjustable rate mortgages is having a negative impact on the number of homes going into foreclosure. With the volume of these loans -- more than $1 trillion of them due to adjust over the next 15 months -- this is a trend that definitely bears watching."

Colorado, Nevada, Florida post highest quarterly foreclosure rates

Colorado posted the highest foreclosure rate in the nation for the second consecutive quarter, reporting one new foreclosure filing for every 127 households -- 2.9 times the national average. After declining almost 13 percent between the first and second quarter of the year, foreclosure activity in the state was back up 24 percent from the second to the third quarter, with 14,374 properties entering some stage of foreclosure -- the eighth highest foreclosure total in the nation.

Nevada moved up from having the sixth highest rate in the second quarter to the second highest rate in the third quarter, reporting one new foreclosure for every 156 households -- 2.3 times the national average. The state reported 5,561 properties in some stage of foreclosure during the quarter.

Florida, which had the ninth highest foreclosure rate in the country for the second quarter, took over the No. 3 spot from Texas during the third quarter, reporting one new foreclosure for every 182 households -- almost twice the national average. With 40,136 properties in some stage of foreclosures during the quarter, the state reported the highest number of foreclosure filings during the quarter, barely beating out Texas which held the No. 1 spot for the previous two quarters.

Other states with foreclosure rates ranking them in the nation's top 10 for the third quarter included Georgia, Michigan, Texas, Indiana, Utah, Ohio and Illinois.

Quarterly foreclosure numbers soar in Florida, California; Texas remains static

A 55 percent spike in activity catapulted Florida into leading the nation in total foreclosure filings during the third quarter. Texas, which led the nation in foreclosure activity for the first two quarters of the year, moved into second place, reporting 39,363 properties in some stage of foreclosure. With a 35 percent spike in activity, California rounded out the nation's top three, reporting 37,317 properties in some stage of foreclosure for the three-month period.

While both Florida and California experienced significant increases in activity for the quarter, foreclosure activity in Texas remained basically unchanged, down less than 1 percent from the 39,690 properties reported for the second quarter, but still 18 percent above the 33,289 foreclosures reported for third quarter 2005. Compared to the same quarter last year, foreclosure activity in Florida is 26 percent above the 31,829 properties reported, and activity in California has increased 171 percent since the same quarter last year.

The state with the fourth highest foreclosure total for the quarter was Michigan, reporting 20,777 properties entering some stage of foreclosure, a 37 percent increase from the second quarter and 109 percent above third quarter 2005 numbers. Ohio posted the fifth highest total, reporting 19,748 new foreclosure filings for the third quarter, a 23 percent quarter-to-quarter increase and 32 percent above the foreclosure numbers reported for the same quarter last year.

"While the overall number of foreclosures represents a return to more or less normal levels, there are pockets of the country that are being hit more severely," Saccacio noted. "States with underlying economic issues, such as high unemployment or depreciating home prices will continue to outpace the rest of the country in the total number and rate of foreclosures."

GET A REFUND FROM THE IRS??!!

2006-07-21T11:42:00.000-07:00

Ever reviewed your home telephone bill, cellular phone bill, or if you are a business owner, your company phone bill and wondered why each and every month you are being charged a "Federal Excise Tax"? More importantly, have you ever wondered if you could avoid the tax altogether or get a refund?

Wonder no more…the IRS recently announced that it will stop collecting the Federal Excise Tax on long distance phone service, and taxpayers will actually be eligible to file for refunds of all excise tax paid on long distance service billed to them from February 28, 2003 through July 31, 2006. And believe it or not, the IRS will even pay you interest on these refunds! (Yet of course will tax you on the interest you are paid.) But before we jump into how you get your refund back, let's take a step back in time and look at the history of the Federal Excise Tax.

The tax was imposed in 1898, and was originally a tax on the affluent because phone service was a luxury back in 1898. The purpose of the tax was to help pay for the Spanish-American War which lasted six months. But after the war ended, the tax continued and consumers have paid well over $300 billion to pay for a war that cost only a tiny fraction of that amount. And with the current excise tax rate being 3% of the charges billed, that amount can be significant! For example, if your telephone bill is $100 the federal excise tax is only $3 a month but, if you are a business owner and your phone bill runs $10,000 that number is $300 a month. And with many consumers having more than one telephone service, the excise tax can add up pretty quickly.

So, how do you collect your cash?

The only way to obtain your refund is with your tax return. Tax forms will include a line for requesting the overpayment amount, and the refund can be claimed on 2006 returns due in 2007. To determine the amount of the refund, the IRS is working on a simplified method - similar to the sales tax deduction - which will allow you to use an IRS table amount to claim your refund. Or…similar to itemizing deductions on your return, you can gather up those old phone records dated after February 28, 2003 and add up the actual amount. For some, this could result in a larger refund and may be worth the effort. And although interest will be paid on the refund amount…don't forget that we're dealing with the IRS…the interest is taxable and will need to be reported on your 2007 income tax returns.
An interesting thought ......we all know that the IRS moves really, really slowly when it comes to change. But who would have thought that it would take over a century to repeal the federal excise tax?

Home Prices Up Nearly 18%

2006-06-16T08:57:00.000-07:00

Home prices in Snohomish County tilted more toward a buyers' market in April, but that still did nothing to rein in prices, the Multiple Listing Service reported.

The combined median price for single-family homes and condominiums rose to $312,000, a 17.74% increase from April 2005, according to the service, which represents real estate agents in Western Washington.

For single-family homes, the median price was $329,000, a nearly 18% hike from a year ago. For condos, the median was $199,950, up 7.8% from April 2005.

Median means that half the homes sold for more and half sold for less.

While prices remain high, the increases are ebbing in comparison to previous months, which were typically 20+% higher than year-ago figures.

The number of available homes, which has been shrinking for some time, actually increased in April by 10%, but it wasn't enough to push prices down. While prices and listings are up, sales are down.

Pending sales, meaning sales in which the paperwork wasn't completed by the end of April, were down nearly 4%. Completed sales dropped 7.4%.

Still, sales remain at a high level. They're only slightly down from April 2005 sales, which set records in much of the Puget Sound area.

Home Listings Grow Slightly While Prices Soar

2006-05-08T10:49:00.000-07:00

Home sales in Snohomish County picked up a bit in March, while prices continued their upward climb, the Northwest Multiple Listing Service said.

The number of homes on the market grew slightly in March up 3.8 percent to 3,242, stopping what has been a steady decline in the number of homes for sale in comparison to this time a year ago. Closed sales also were slightly above 2005 figures, up 2.8 percent to 1,537.

The biggest change was in the median price.

Combined prices for both condos and single-family homes hit $309,950 in March, a 20.33 percent increase from March 2005. That was among the biggest increases in the Puget Sound area, although smaller than in Skagit County, where homes appreciated by 35.7 percent.

For just single-family homes, the Snohomish County median price was $330,000. For condos, it was $189,970. Median price means half the homes sold for more and half sold for less.

2006-02-16T17:19:00.000-08:00

brrreeeport - brrreeeport - brrreeeport - brrreeeport - brrreeeport - brrreeeport

This is a very important word. Read the following article I received from a service I am part of:

What started out as an apparent debunking of an A-list blogger conspiracy has evolved into a made-up word shedding light on the search world. Microsoft's controversial employee blogger, Robert Scoble, invited readers to use the word ‘brrreeeport" on their blogs as a way to get "Z-list" blogs noticed, while testing the reach of the various search engines.

Editor's Note: So many questions: What do you think of Scoble's experiment? Does it shed any insight on to how search engines work? What do you think is the best blog engine? Are search engines lying about their results like Scoble suggests? Is there an exclusive group of "A-list bloggers?" Join our discussion in WebProWorld.

Scoble's snarky experiment was in response to the notion of the supposed Blog Club, where A-list bloggers only link to each other and thereby keeping lesser-known bloggers out of the loop of recognition in typical Critical Theory style. The invention of the word "brrreeeport" and the invitation to put on a person's blog created a vacuum to Technorati's blog listings and popular tags. Very soon, the term was listed at the top of Technorati's most searched word. Two days later, "brrreeeport" is out ranking searches for information on the Dick Cheney hunting accident, and is third on the list of tags. The original purpose of the experiment worked. Technorati returns some 487 results for the word, leading searchers to blogs they may have never encountered. But the memetic results led to another exploration of the efficacy of various search engines.

At the time this article was written, a search on Technorati returns 487 results; Google's Blog Search: 452; Feedster: 569. On that information alone, it would appear that Google Blog search is missing an element the other blog engines aren't. But the more interesting question Scoble brings up on Wednesday, when he compares results of Google, MSN, and Yahoo! Google's main page (as of present) says it found 22,400 results for the word. Scrolling through, however, there are only 353 results after similar entries are omitted. Re-searching with omitted results included returns only 979 results, as the other 21,000 are apparently inaccessible. Scoble calls this an example of "lies that are going on on search engines." Scoble reports that MSN returns over 1, 369 entries (though my results continue to say 221), and Yahoo! returns over 1,010. The varying numbers does bring up an interesting question as to the veracity of any given search engine's reach. One thing's for certain, many are taking advantage of the memetic appeal of the word, "brrreeeport." Bloggers have committed to throwing the word onto their blog posts. Even the famous New York City gay and lesbian publication The Village Voice has thrown it into a headline for an unrelated music review. There are even sponsored links for the word on Google and Yahoo!'s SERPs. On Yahoo!'s system though, it's not the exact word, but ads served up based on similar keywords. Whatever the deeper implications, the immediate benefit was for Z-list bloggers who otherwise may have never been found. Someone's even reserved the brrreeeport domain.

About the Author:Jason is a staff writer for WebProNews covering technology and business.

Free 411 Calls From Cell and Home Phones

2006-02-07T07:34:00.000-08:00

Cell phone companies are charging us $1.00 or more for 411, information calls, when they don't have to. When you need to use the 411 / information option, simply dial 1 800 FREE 411 or 1 800 373 3411 without incurring a charge at all except for the minutes required to make the call.

This is information people don't mind receiving - Pass it on. Works on home phone also.

DO NOT CALL UPDATE - IMPORTANT INFO

2006-01-15T09:46:00.000-08:00

JUST A REMINDER....31 days from today, all cell phone numbers are being released to telemarketing companies and you will start to receive sale calls. ..YOU WILL BE CHARGED FOR THESE CALLS... To prevent this, call the following number from your cell phone: 888-382-1222. It is the National DO NOT CALL list. It will only take a minute of your time. It blocks your number for five (5) years.

HELP OTHERS BY PASSING THIS ON TO ALL YOUR FRIENDS OR GO TO: www.donotcall.gov

What's In, What's Out with Homebuyers in 2006

2006-01-04T09:45:00.000-08:00

What's In:

Smaller square footage homes. After years of sprawl, new construction buyers want less space with better finishes.
Quality kitchen cabinets. With the kitchen/great room the center of family living, buyers today are looking at furniture style cabinets.
Bamboo wood floors. It could over-take maple as the favorite light-colored wood flooring in 2006.
Wall space for flat screen TV's. The popular location for installation in new construction is over the fireplace.
Multiple and high-powered phone lines. With modern DSL, wi-fi moving into mainstream use, tech-savvy homebuyers want "wired" homes.
Separate shower stalls and bathtubs in master bedrooms. The growing divide among "soakers" and "showerers" is increasing.
Built-in home stereo systems are a must-have for many audiophiles. Wireless hasn't quite made the pre-wired audio system home obsolete, at least not in 2006.
Balconies and decks wider than 3 feet. Homebuyers want usable outdoor space. Big enough for a bistro table and chairs and a couple of pots for container gardening.
Guest parking. With the rise in condominiums, lofts and zero-lot line subdivisions, homebuyers want their gueststo have a hassle-free experience when they arrive at their new home. Buy or lease an extra space for family or friends.
Dog Parks. Dogs and homeownership go hand-in-hand. They new way to meet neighbors in the hood is to interact with them at the dog park. Before buying a home, check out the nearest one.
Ranch or one-level homes. The baby-boomers are discovering their utility in droves.
Second homes. The baby-boomers are also keeping this market segment strong. Demand for second homes was still on the upside in 2005, but if primary home demand weakens, the second home market will historically follow.
Seller give-backs. With a more balanced market in most metro markets, requests by buyers to pay closing costs have increased, and some sellers are paying them.
Carbon Monoxide detectors. Home inspectors red flag homes that have only smoke detectors. Inexpensive and life-saving, install one on every floor of a home.

What's Out:

The real estate bubble. It's a correction with a soft decline in prices.
Ebony-stained hardwood floors. You're better off tearing it out than trying to sand the ebony out to refinish.
Single-rod closets. Buyers want the most storage in the least amount of space. Organizers accomplish this.
Dark rooms with small windows. Natural light can over-rule a lot of other problems in a home.
Wallpaper. Buyers never have the same taste as decorators. Take it down (carefully) and paint.
Builder-grade light fixtures and interior fixtures used outside. The right fixtures say quality to buyers.
Mid-century awnings on exterior windows and doors. Buyers want to let the sun shine in.
Mirrored backsplash's in kitchens and everywhere else. Mirrored walls and ceilings say1980's hedonism.
Commitment (strong, bold, trendy) colors. They look great in magazines, but as one buyer said to me "I don't live in a magazine."
Gas grills that need their own tank. Buyers prefer the gas piped from the house so they don't have to replace tanks.
Dropped ceilings. It might have updated a bungalow in the 1950's, but buyers want as much vertical space as possible.

On The Way Out:

Stainless steel appliances. Word-of-mouth says the cleaning requirements aren't for everyone.
Laminate flooring that looks like hardwood. The noise it makes with high-heel shoes in unappealing.

Note: This information was taken from an article by Mark Nash

2006 EXPECTING HISTORICALLY STRONG HOME SALES

2005-12-17T08:10:00.000-08:00

Historically Strong Home Sales Expected in 2006(December 12, 2005) --

The housing market for 2005 is headed for a fifth consecutive annual record, and sales activity in 2006 is expected to be the second best year in history, according to the NATIONAL ASSOCIATION OF REALTORS®

David Lereah, NAR’s chief economist, said that market conditions are still favorable for housing. “The slowdown amounts to a tapping of the brakes on a hot market,” said Lereah. “Home sales are coming down from the mountain peak, but they will level-out at a high plateau – a plateau that is higher than previous peaks in the housing cycle. This transition to a more normal and balanced market is a good thing.”

The 30-year fixed-rate mortgage should trend up modestly and reach 6.6 percent during the second half of 2006.

Existing-home sales, expected to rise 4.7 percent to 7.10 million this year, are likely to decline 3.7 percent in 2006 to 6.84 million. New-home sales, projected to increase 7.0 percent to 1.29 million this year, are forecast to drop 4.8 percent to 1.23 million in 2006 – also the second best on record. Total housing starts for 2005 should grow 5.8 percent to 2.06 million units, the highest since 1972, and then decline 4.8 percent to 1.92 million next year.

NAR President Thomas M. Stevens from Vienna, Va., said that housing has always been the soundest investment for most families. “As the old saying goes, homeownership beats the heck out of a drawer full of rent receipts,” said Stevens, senior vice president of NRT Inc. According to the Federal Reserve Survey of Consumer Finances, the median net wealth of a homeowner household is 36 times higher than a renter household.

Stevens said that the national median home price has never declined since good recordkeeping began in 1968. “Although there can always be a temporary decline in a given area if jobs are weak and there is an oversupply of homes on the market, people who stay in their homes for a normal period of homeownership generally see healthy returns over time. There are no guarantees, but there are very good odds.”

The national median existing-home price for all housing types, which is experiencing a surge estimated at 12.7 percent to $208,800 for 2005, is expected to rise another 6.1 percent in 2006 to $221,400. The median new-home price is likely to rise 5.5 percent to $233,100 in 2005, and then grow by 7.3 percent next year to $250,100 as higher construction costs impact the market.

The U.S. gross domestic product should grow 3.7 percent for 2005 and 4.1 percent next year. The unemployment rate is expected to decline to 4.9 percent by second quarter of 2006, and then stabilize.

The Consumer Price Index is projected to rise 3.4 percent for 2005, and 2.9 percent next year. Inflation-adjusted disposable personal income is forecast to increase 1.4 percent in 2005 and 4.5 percent in 2006.

HOME PRICES IN WESTERN WASHINGTON STILL RISING

2005-12-11T11:39:00.001-08:00

Good news for real estate in Western Washington.

Pending sales drop slightly, but prices are continuing to rise.

View the complete report that just was released at:

Monthly Real Estate Statistics

STOP THE PROPOSED TAX INCREASE!!

2005-11-19T08:51:00.000-08:00

The proposed tax increase will take huge equity away from families on home sales and will reduce home ownership in Washington state.

The National Association of REALTORS and the Washington REALTORS have joined forces to fight to protect the investment our clients have made in their homes!

Please read and sign up for updates at Stop The Home Tax.

Together we can make a difference!

WASHINGTON STATE UNVEILS NEW LICENSE PLATE

2005-11-14T19:27:00.000-08:00

Ski Washington, the consortium of all Washington ski areas, is pleased to announce the launch of the official “Ski & Ride Washington” license plates. The “Ski & Ride Washington” license plate design will be unveiled at a press conference Tuesday, November 15, 2005 at 11:30 a.m. at Westlake Park in downtown Seattle at an event that is open to the public.
Famed ski film director Warren Miller and former Washington Gov. Gary Locke will be on hand for a short presentation as well as representatives from all 10 Washington ski areas. The license plates will be available to the public and issued by the Washington Department of Licensing beginning Tuesday, January 3, 2006.
“Skiing and snowboarding are integral components of the Washington lifestyle to so many people in our state,” said Duncan A. Howat, chairman of Ski Washington and general manager of Mt. Baker Ski Area. “The new Ski & Ride Washington license plate now offers Washingtonians the opportunity to support the Washington ski industry in our state year-round.”
The special plates will cost $40, with $28 of the fee considered a tax-deductible contribution to the Northwest Winter Sports Foundation (NW-WSF), a 501(c)(3) non-profit organization based in Chewelah, Wash. An educational and charitable organization, NW-WSF funds initiatives to promote youth winter outdoor activities and health; winter sports outreach programs providing opportunities for underprivileged and disabled children and their families; the development and training of Washington state competitive winter sports participants;! and loc al and state travel trade communities for the promotion of winter sports.
“The ‘Ski & Ride Washington’ license plates will not only benefit the entire Washington ski industry, but groups of people who might otherwise not be able to take advantage of Washington’s incredible ski areas,” said John P. Eminger, NW-WSF director and president and owner of 49° North Ski Area. “They are a beautiful design and will draw a lot of positive exposure to Washington skiing and riding.”
Approximately 1.8 million skiers and snowboarders visit Washington ski areas annually. The 10 Washington ski areas are conveniently located in all regions of the state and many provide easily accessible and affordable transportation options to and from the mountain.
Washington-based companies K2 and W. L. Gore & Associates, Inc., makers of GORE-TEX® fabric, are sponsors of Ski Washington and the event.
Ski Washington is a consortium of all Washington ski areas with the goal of attracting new entrants to the sports of skiing and snowboarding and increasing the overall visibility of alpine sports in the state of Washington. Members include 49˚ North Mountain Resort, Crystal Mountain, Hurricane Ridge Ski & Snowboard Area, Mission Ridge, Mt. Baker Ski Area, Mt. Spokane Ski & Snowboard Park, Ski Bluewood, Stevens Pass Winter Resort, The Summit at Snoqualmie, White Pass Ski Area, Cascade Powder Cats2 LLC, and North Cascade Heli-Skiing. For more information, please visit www.skiwashington.com.

Housing Market Continues Strong In Seattle/Snohomish Region

2005-11-04T09:24:00.000-08:00

Despite a shortage of listings, homes in Snohomish County continue to sell quickly at near-record prices, the Northwest Multiple Listing Service reported. See the complete report that just came out at the beginning of November.

NW MLS Report

In the commercial world, Colliers International and CB Richard Ellis reported separately in October that between 15% and 17.6% of Snohomish County's office space was empty during the third quarter.

The reports came out after Cushman & Wakefield reported the office vacancy rate at 17%. Colliers and CB Richard Ellis also reported that 18 - 19% of the county's industrial space was vacant.

iRealty: Winter Is Coming!!

2005-11-03T09:39:00.000-08:00

iRealty: Winter Is Coming!!

Hey, cool blog. I'm stoked about the snow too.
What is iRealty about?
I'm looking forward to someone who puts the consumer first!!

2005-11-03T09:32:00.000-08:00

Hiking the High Traverse

Winter Is Coming!!

2005-11-03T08:46:00.000-08:00

Wow! We are blessed this year! I know, I know - this has nothing to do with the real estate world as I see it, but I am excited. Our region really suffered last year and many went without jobs. A good snow year means more jobs, more snowpack for water next Spring and much more fun! Let's do a snow dance every day.