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High Point real estate sobering – no rainbow yet

Where is the rainbow in High Point real estate?

I’ve just pulled a report for my neighborhood, which has been a perfect micro-climate to observe the dark side of the recession and collapse in real estate in the Seattle area. We personally closed July 27, 2007 on our townhome on Raymond – the month and year considered the peak of the bubble.

I’ve been on the ground here for five years (we wrote up the contract in April 2007), literally since I am walking my dog twice a day (or often three times). High Point’s Built Green Certification has cushioned home values somewhat, but at this point there are too many people who have been hanging on too long. There is a plethora of short sale listings now, many of them in my condo association of Redwood High Point.

Out of 16 active listings on the NWMLS in High Point proper (the redeveloped area), 7 are short sales, 2 are bank owned (both Fannie Mae, already foreclosed on), 5 are Polygon Phase 2 listings, (which have been selling like hot cakes in our new reality – almost 80 homes sold in less than a year, they are at really good prices and are attractive since so many people want “new”, they are rated 300 point Built Green Certified), and 2 are Seller occupied and considered Market Rate listings (at $460k and $530k, but both have been on the market for months). 7 of the 16 listings are in Redwood High Point and all of them are distressed pricing.

I look around me and just get depressed. I have not seen this many listings,all at once, ever. Owners are dropping like flies. We’ve been trying to negotiate with our own lender for over three years and only recently engaged an attorney who is looking into the robo-signing issue (among others) that was prevalent at the time everyone in Phase 1 purchased. I only hope we don’t end up moving like so many others have.

As someone who has been in this community for so long, and watched it change and grow from one day to the next, I don’t want to leave. But a lot of people have been in extended financial distress and just need it to be over. Way over. A couple of my neighbors moved on two years ago and my porch-mate tried to sell for a year before giving up. We’re just stubborn fools, I guess, committed to our community and lifestyle here (my husband and I). We watched our home be built, we customized every square inch of it, and I feel safe walking my dog here most of the time. I might gripe about being sick of walking in circles in the rain for 6 months, but when I think of where else I could be living, from a safety standard High Point beats anywhere I have lived in 20 years.

My heart aches for those who moved here with such great dreams and high expectations, only to be disappointed by job loss or transfers, a bad turn in finances, and the gradual slipping away of the American Dream. Many criticize, saying people who are in trouble with their home now didn’t deserve to own that home in the first place. I try to not take it personally. Our household just happened to be comprised of careers in two industries really hit hard by this recession – and I have fought hard to stay in this business since I am passionate about solving people’s real estate problems. It’s not like there were a lot of jobs out there for me to go to even though I have extensive professional experience outside of real estate.

But this plethora of short sales is just one problem I can’t solve. I just hope I don’t end up as one myself.

To those who have given up, moved on and started over somewhere else – my thoughts are with you and your family. I hope there will come a time that you can look at your place in High Point in a positive way and not just some big black period in your life. And your contribution to our neighborhood will be sorely missed.

Regardless of my personal situation, I continue to be an Ambassador for High Point and I bring all of my buyer clients through my neighborhood to educate them. I am a believer in the community, the natural surroundings, the storm water management and watershed interface, and the Built Green Certification process. And I am an optimist. Things will get better. It is always a good time to buy – or sell – a home, depending on your personal circumstances. And as long as I am a resident of High Point you can always call on me for information about this unique, green community and the larger West Seattle area. We have lived in West Seattle almost 15 years and it is in our blood. They will have to drag me kicking and screaming out the door to get rid of me.

Don’t forget to LIKE the High Point Real Estate page on Facebook.

“Buyer Ready” Home Shoppers Have Edge as Brokers Report Rise in Multiple Offers

The following includes information and statistics compiled and reported by the Northwest Multiple Listing Service.

KIRKLAND, Wash. (April 5, 2012) –The housing market in the Puget Sound region is pointing toward a sustainable recovery, according to several brokers who commented on the March activity report from Northwest Multiple Listing Service.

MLS Members reported 9,126 pending sales during March, a year-over-year increase of nearly 21 percent. That total surpassed the previous month by 1,503 transactions (up 19.7 percent). Coupled with shrinking inventory, attractive financing, and rising consumer confidence, the market is becoming more balanced, and even being described by some brokers as “frenzied.” Other brokers commented on the “remarkable opportunities for investing in the residential rental market.”

Brokers added 8,170 new listings last month — nearly 1,000 fewer than the number of pending sales, and about 1,100 fewer new listings than the same month a year ago. With those additions, the number of active listings at month end totaled 24,883 across the 21 counties in the Northwest MLS service area. Compared to a year ago, inventory is down 25.6 percent.

“Buyers are screaming for more inventory and they’re being more aggressive with presenting offers on homes,” reported MLS director George Moorhead, branch manager at Bentley Properties in Bothell. Home shoppers perceive the bottom is nearing, he noted, “and both buyers and sellers want to catch the historically low interest rates.” Area-wide, he said bank-owned home sales are increasing. “The lagging inventory is actually helping prices stabilize, which we hope will have a positive impact on the real estate market as the year progresses,” he added.

“Close to the job centers, 45 percent of new listings are selling within a single month. We are seeing a frenzied market in the Puget Sound region, especially in the more affordable and mid-price ranges, with an increase in sales activity in the high end,” remarked J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. “Because of the shortage of homes for sale, combined with the sales surge being driven by job growth and historically low interest rates, if you are not ‘buyer ready’ you may not get a house in today’s market,” he added.

Northwest MLS brokers reported 5,044 closed sales last month, improving on the year-ago total by nearly 10 percent. The overall median price on last month’s completed transactions was $225,000, which reflects a decrease of 7.4 percent from the year-ago median sales price of $242,925.

Noting stabilizing prices are “forcing buyers to make offers that reflect a more balanced market,” Northwest MLS director Darin Stenvers said house-hunters have taken note of rising rents, fewer choices and increasing fuel costs. The trends are not universal, he acknowledged, but certainly reflect a higher buying confidence level and even a small uptick in new construction. “I’m seeing new home starts in areas that had been at a standstill for years,” reported Stenvers, the office managing broker at John L. Scott in Bellingham.

Multiple offers are occurring with regularity in some neighborhoods according to Northwest MLS directors. “The housing market in Seattle’s close-in neighborhoods began to show signs of buyer panic in February but reached a breaking point in March,” reported Mike Skahen, owner and designated broker of Lake & Co. Real Estate in Seattle. “I haven’t seen buyers this motivated since 2006 and in my opinion, prices on good houses have recovered at least 10 percent of their value since the low point a year ago,” he added.

Skahen said a small Ballard home listed for around $370,000 recently drew five offers and sold for considerably more than the list price. “It’s becoming common for multiple offers on most houses, especially those priced under $400,000 where the selection is very limited,” he observed.

“Now that buyers can track new listings online they are aware of how quickly most listings are selling and fear they’ve missed catching the bottom of the market. They realize continuing to wait would be a mistake,” Skahen commented.

Diedre Haines, another Northwest MLS director, said pending sales in Snohomish County, which jumped 21 percent, would have been “considerably greater were it not for the buyer competition due to the magnitude of multiple offer situations.” She said they are seeing the return of price escalator forms, pre- inspections, set dates for sellers to review offers and properties selling above list price,” according to Haines, the regional managing broker at Coldwell Banker Bain in Lynnwood. “Prices are not increasing dramatically but those properties that are listed and priced correctly, especially in the $300,000 and below range, are selling within days of coming on market,” she noted.

Haines also said they are seeing multiple offer situations in the higher priced market “but not as many over list price sales.” She reported the demand ratio in Snohomish County, based on a recent analysis, “is at the highest levels we have experienced since 2006.” She also noted the report showed there are two buyers for every current home on market in Snohomish County.

A similar scenario exists in Kitsap County. “Inventory is down by 11 percent, buyers making offers are up almost 34 percent, multiple offer situations are on the rise, and more people are coming by our open houses,” reported Frank Wilson, branch managing director at John L. Scott’s office in Poulsbo. “While the median price in Kitsap is down by 5 percent it is only a matter of time before prices stabilize,” he believes.

The optimism comes with a cautionary note. “It is still extremely important for sellers to price their property correctly,” Haines emphasized. Even with high demand, homes that are priced above comparable properties are not receiving offers, she explained, adding, “We are seeing very positive signs of a continuing recovery but buyers are well educated regarding values and pricing. Sellers should not expect huge increases in values and need to price their properties accordingly and realistically.”

The uptick in activity is attracting not only first-time and move-up buyers, but also investors, according to industry experts.

“Rental demand is surging, interest rates are at historic lows, and recent economic activity has erased nearly a decade of appreciation,” reported MLS director OB Jacobi, president of Windermere Real Estate.. He believes the combination of these three factors has created “remarkable opportunities for investing in the residential rental market,” explain “The long-term financial benefits can be significant, but the first step is to closely analyze the details with your real estate agent.”

Another MLS director was equally upbeat. “The market in the Puget Sound region is showing optimistic signs of not only stabilization, but turning point towards a sustainable recovery,” said Joe Spencer, area director for Keller Williams Northwest Region. He suggested the cause is “simply the growing imbalance of supply and demand, which has resulted in the lowest inventory levels since 2006. This doesn’t mean that we’re out of the dark yet,” he acknowledged, adding, “However, I wouldn’t be surprised to see modest appreciation, especially close to job centers, in the latter half of 2012 or early 2013.”

Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership includes more than 22,000 real estate brokers. The organization, based in Kirkland, Wash., currently serves 21 counties in Washington state.

See Statistical Summary by Counties: Market Activity Summary – March 2012. Click through to NWMLS YTD March 2012 Stats. This report is comprised of information and statistics compiled and reported by the Northwest Multiple Listing Service.

“Go Small, Go Green, and Go Home” | The non-trend in new homes

Martha Rose (Martha Rose Construction) has a guest post on the Master Builders Association of King and Snohomish Counties Facebook page today, called “A New Normal in the Home Market”

Martha is a very creative home builder. I have toured several of her properties in the last 5 years. She loves educating people about what is going on “behind the walls” since that is where most of the energy efficient things happen. Home buyers often arrive on the scene too far along in the construction process to be able to see and fully appreciate all that went into making the home as efficient as possible.

If saving money is important to you, and you are in the market for a home, you will want to seek out “Environmentally Certified Homes” through the local Northwest Multiple listing Service. Large search sites often don’t allow you to use this as one of your search criteria but I made sure my brokerage’s search page does at Mountain To Sound Realty.

If you have any questions about green homes, let me know. It has been five years since my husband and I purchased a Built Green Certified home in a Built Green community and I have a lot to share.

Spring has sprung in housing – looking to feather a new nest?

Spring housing rush has buyers flocking to search out new home possibilities

April arrives any minute and the spring real estate market, despite all the news you hear, is alive and well in Seattle. I’ve been touring property for three months solid and the first time home buyers I am working with are surprised by the multiple offer situations on many properties – even unapproved short sales – that happens over and over again. The house just needs to be in a half-way decent neighborhood for it to be drawing a lot of buyers (and many investors at the below $150k range). We have a low inventory situation for homes falling below a certain price point and some buyers are getting frustrated.

It is anticipated that the Joint State-Federal National Mortgage Settlement (read the FAQ sheet) recently made with major lenders will now expedite hundreds of thousands of homes INTO the foreclosure process now that major issues have been ironed out. (Bank of America Corp. (including EDNY FHA origination settlement), Citigroup, Inc., J.P. Morgan Chase & Co., and Wells Fargo & Co.) Lenders put a lot of homeowners into a holding pattern over the last year while the lawsuit was examined. Lenders didn’t want to risk more illegal/improper foreclosures. If you read the FAQ, you will see that each lender not only pays into a restitution fund for homeowners that were improperly or illegally foreclosed on, but the bulk of the money will go towards programs to help borrowers keep their homes – those that are delinquent AND current (different programs).

Now that the logjam has been broken, it is expected a lot of homeowners will not be able to come to an agreement with their lenders and more foreclosure filings will happen in the next few weeks and months. Even though you will read sellers can’t sell and buyers can’t buy (see The ‘Shadow Inventory’ Darkening Housing), it is a fact that a lot of sellers are selling and a lot of buyers are buying. I was on a webinar just today called “RoboSigning Settlement-REO Agent Acceptance Workshop” that was an effort to get more real estate brokers signed up as REO listing agents (Real Estate Owned by a lender) in order to meet demand (full time agents only need apply).

Although March statistics are expected out late next week, just reviewing February 2012 NWMLS Statistics for King County is very enlightening. (This report is comprised of “Information and statistics compiled and reported by the Northwest Multiple Listing Service.”) In King County pending units went from 6,714 to 8,333 and closed sales 3,783 to 4,197 January to February respectively. I expect March’s numbers to be even higher. Of course, average price is down year over year as prices keep dropping, but this is really good news for a lot of buyers who have been saving their money the past few years and are venturing into the market for the first time.

I think the one piece of advice I have to give to any first time home buyer is, and you hear this all the time, get pre-qualified before you start shopping. This is not the same thing as pre-approved and it can be done in short order by a qualified lender. The house you fall in love with will also be desired by many others and if you aren’t ready to jump – and then potentially wait for a long time if you are going after an unapproved short sale listing – you are just wasting your time touring. There’s nothing wrong with touring to get a feel for what you want, but after a few hours of that you should have a good idea of what you like and don’t like. There is nothing worse than being at the wrong end of a frustrated buyer who isn’t ready to move quickly on the right house due to lack of pre-qualification or being unsure if “this is the one”. (In this example, a house that the seller had not even submitted documents to their lender for yet received 6 offers – and in this case the highest offer is going to win. And the house wasn’t even that special, in my opinion, or in a highly desired area, although the area is perfectly reputable.)

I also learned…again…to not show unapproved short sales to someone who isn’t willing to be tied into a deal for a couple of months waiting for lender approval, sitting out the rest of the spring buying season. (In this situation, the seller needed to find out if they can even do a short sale, which takes up to 30 days from a completed seller package; and then up to 30 more days for the actual purchase contract to be accepted or rejected by the lender. Suddenly your are in June and who knows what rates and sales will be doing by then. To give you an example of unapproved short sale listings versus more “available” listings (either seller owned, pre-approved short sale, lender owned outright, or bankruptcy sale) out of 46 listings I scanned today I culled the list down to just 16 that were something other than an unapproved short sale. There are a lot of people going after these “easier” listings. Be prepared!

HOW TO REACH WENDY

If you are a motivated buyer looking for housing in the following geographic areas, Wendy has either lived in or performed relocation research and comparison studies in all of the following areas. Call or text Wendy at 206.686.HOME (4663), or email wendyhj@greenspacesrealestate.com (see button in the right sidebar). Wendy also is an EcoBroker® and is Built Green® Certified, so if owning a healthy home is important to you she is the one to call. Wendy is also able to help people find a home or condo FOR RENT.
West Seattle
Seattle Metro
Mercer Island
Burien
Tukwila
SeaTac
Renton
Kent
Auburn
Newcastle
Bellevue
Kirkland
WoodinvilleBothell
Lake Forest Park
Shoreline
Issaquah
Snoqualmie Ridge
North Bend
Monroe, Snohomish, Lynnwood, Mill Creek, and Everett areas will also be considered. 

25E: The Cut Energy Bills at Home Act

This is very exciting news that I came across on the blog from San Francisco-based Efficiency First, “a national nonprofit trade association that unites the Home Performance workforce, building product manufacturers and related businesses and organizations in the escalating fight against global warming and rising energy costs.” Their page “Introducing 25e: The First Performance Based Tax Credit for Homes” includes links to the actual text of the Senate bill, a quick reference fact sheet, and a webinar from December that discusses it in detail, as well as software and contractor credentials.

The brief description is:

The Cut Energy Bills at Home Act has been introduced in the Senate with bipartisan support. If passed, the bill would create a new 25e tax credit — the first residential performance-based tax credit given to homeowners who make energy efficiency improvements. The proposed bill would provide performance-based tax credits of up to $5,000 per project for homeowners who install qualified energy efficiency measures

I signed the petition in support of this important new bill, saying:

As a Realtor and EcoBroker I support any smart legislation that will create a market-driven change to building quality and energy consumption. 25E could create a revolution in bottom-up energy conservation by individual power users, from east to west, north to south. As someone born in the same year as Earth Day and seeing improvements at a pace slower than the destruction occurring on our planet, I consider it a personal mission to educate my clients, friends, and family about indoor air quality and energy usage in their homes.

If you also feel this is important, please endorse this new legislation by signing their petition to add your support to this important effort! Stay tuned for more details as they become available.

Northwest MLS brokers report more than 56,000 sales during 2011, outgaining prior year by 7.4 percent, but total dollar volume shrinks

Here is a recap of 2011 real estate activity in the Pacific Northwest areas served by the Northwest Multiple listing Service. Please contact me if you have any questions, or need guidance in buying or selling a home. Thanks! Wendy

FOR IMMEDIATE RELEASE: January 23, 2011

NWMLS KIRKLAND, WA. (Jan. 23, 2012) – Members of Northwest Multiple Listing Service tallied 56,290 closed sales of single family homes and condominiums during 2011, improving on 2010’s volume by 4,290 transactions for a 7.4 percent increase.

Last year’s completed sales included 48,952 single family homes (up 7 percent from 2010) and 7,338 condominiums (an increase of more than 10 percent from 2009). Together, these sales were valued at more than $16.7 billion, about $900 million less than the previous year (a decline of 5.1 percent).

Both median prices and inventory dropped compared to 2010. Prices fell 10.3 percent system wide, while the number of new listings added to inventory was down more than 13 percent. Brokers added 101,430 listings to the database during 2011, which was 15,269 fewer than the total number for 2010.

Last year’s median price for closed sales of single family homes and condos was $235,000. In 2010 the median selling price was $262,000. For the 21 counties included in the MLS report, the median price ranged from $120,000 in Grays Harbor County to $387,500 in San Juan County.

In King County, which accounted for 40 percent of last year’s sales, the median selling price was $311,748, down about 10.7 percent from the previous year’s figure of $349,000.

In its annual statistical summary report for its 20,000-plus brokers, the multiple listing service examined various indicators of activity. Among the findings:

  • Single family homes accounted for about 87 percent of the sales volume as measured by units, and about 90 percent of the dollar volume.
  • About half the homes that sold last year had 3 bedrooms, while three-fourths of condos had 2 or fewer bedrooms.
  • Prices for 3-bedroom homes built before 2009 vary widely among the counties in the Northwest MLS market area, ranging from $112,375 in Grays Harbor County up to $408,500 in San Juan County.
  • On average, Northwest MLS brokers represented 34,000 active listings each month.
  • Of 860 million-dollar-plus sales of single family homes, more than half (54.8 percent) were in Seattle’s Eastside suburbs. Of these high-end homes, 145 of them were in the MLS map area encompassing the area west of I-405, including Bellevue and the waterfront communities of Beaux Arts Village, Clyde Hill, Hunts Point, Medina and Yarrow Point.
  • The highest priced single family home in the MLS system that sold last year was located in the Town of Hunts Point on the eastern shore of Lake Washington, which commanded $14,750,000. The highest priced condominium, located in downtown Kirkland, fetched $3,249,000.
  • A comparison of median prices of home sales within school districts in the Northwest MLS market areas shows the most expensive homes were situated in the Mercer Island School District ($824,000), followed by Bellevue ($550,000) and Issaquah ($530,000). The least expensive homes were in the Queets-Clearwater School District in Jefferson County ($30,000), the Vader School District in Lewis County ($47,900) and the Wilson Creek School District in Grant County ($52,500).
  • Northwest MLS members reported 81,019 pending sales (mutually accepted offers) during 2011. That marked an increase of about 10.5 percent from 2010 when members logged 73,349 pending sales.
  • The pace of sales as measured by “months supply” (an estimate of how long it would take for all inventory of active listings to sell at the current pace assuming no new inventory is added) showed a system-wide total of 5.02 months, improving on a figure of 6.42 months for 2010. Using this measurement, Snohomish County had the lowest supply, at 3.69 months, followed by King County at 3.75 months. (Economists consider a supply of 3-to-6 months to be a balanced market, meaning the market favors neither buyers nor sellers.)

Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership includes more than 20,000 real estate brokers. The organization, based in Kirkland, Wash., currently serves 21 counties in Washington state.

2011 Statistical Review & Highlights

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Copyright © Northwest Multiple Listing Service

5 Tips to Prepare Your Home for Sale

Working to get your home ship-shape for showings will increase its value and shorten your sales time.

Guest Post By: G. M. Filisko

1. Have a home inspection
Be proactive by arranging for a pre-sale home inspection. For $250 to $400, an inspector will warn you about troubles that could make potential buyers balk. Make repairs before putting your home on the market. In some states, you may have to disclose what the inspection turns up.

2. Get replacement estimates
If your home inspection uncovers necessary repairs you can’t fund, get estimates for the work. The figures will help buyers determine if they can afford the home and the repairs. Also hunt down warranties, guarantees, and user manuals for your furnace, washer and dryer, dishwasher, and any other items you expect to remain with the house.

3. Make minor repairs
Not every repair costs a bundle. Fix as many small problems—sticky doors, torn screens, cracked caulking, dripping faucets—as you can. These may seem trivial, but they’ll give buyers the impression your house isn’t well maintained.

4. Clear the clutter
Clear your kitchen counters of just about everything. Clean your closets by packing up little-used items like out-of-season clothes and old toys. Install closet organizers to maximize space. Put at least one-third of your furniture in storage, especially large pieces, such as entertainment centers and big televisions. Pack up family photos, knickknacks, and wall hangings to depersonalize your home. Store the items you’ve packed offsite or in boxes neatly arranged in your garage or basement.

5. Do a thorough cleaning
A clean house makes a strong first impression that your home has been well cared for. If you can afford it, consider hiring a cleaning service.

If not, wash windows and leave them open to air out your rooms. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Wash light fixtures and baseboards, mop and wax floors, and give your stove and refrigerator a thorough once-over.

Pay attention to details, too. Wash fingerprints from light switch plates, clean inside the cabinets, and polish doorknobs. Don’t forget to clean your garage, too.

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G.M. Filisko is an attorney and award-winning writer who has found happiness in a Chicago brownstone with the best curb appeal on the block. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

Sustainability in 2 Minutes

Because you read this blog you probably are well versed in the sustainability needs required in our world today. But a lot of people we know aren’t. Ask them to take two minutes, for the sake of your friendship, to watch this video. It is simplistic, but possibly a good conversation starter. It’s non-threatening, non-accusatory, and just a straight forward explanation of HOW THINGS WORK. They don’t have to like it, but we need to start multiplying our personal efforts by getting more of our friends on board with small changes that make a big difference.