Home sales in Snohomish County rose in July for the second straight month

Home sales in Snohomish County rose in July for the second straight month, buoyed by a drop in prices and a federal tax break set to end in November.

Closed sales rose nearly 19 percent last month after rising about 1 percent in June. A total of 858 homes were sold in the county last month, compared to 719 in July 2008, according to the Northwest Multiple Listing Service.

A continuing fall in home prices has fed this activity. The combined median price of single-family homes and condominiums was $292,000 in July, a drop of more than 12 percent from a year ago.

Another big factor: The government tax credit for first-time buyers. People are more eager to take advantage of the program before it ends.

To qualify for the $8,000 credit, buyers need to close on their home sale by Nov. 30. The tax break applies to anyone who hasn’t owned a home for three years.

Also, more people are selling a home and stepping up to a larger, more expensive one. For much of this year, home owners have been selling but buyers were not buying. That’s changing. Now, they’re selling a home for $275,000 that two years ago was worth $325,000 and buying for $475,000 a home that used to sell for $575,000. The move-up buyer is really in a good position.
I think people are more positive about buying a home than they have been. The consensus seems to be that now is the time to buy a home.

According to the MLS, the median price for a single-family home was $299,990 last month, 14.3 percent less than it was a year ago. For condos, the median was $229,000, an 8 percent drop from July 2008.

Home Sales Are Up!

Home sales in Snohomish County rose in July for the second straight month, buoyed by a drop in prices and a federal tax break set to end in November.

Closed sales rose nearly 19 percent last month after rising about 1 percent in June.  A total of 858 homes were sold in the county last month, compared to 719 in July 2008, according to the Northwest Multiple Listing Service.

A continuing fall in home prices has fed this activity. The combined median price of single-family homes and condominiums was $292,000 in July, a drop of more than 12 percent from a year ago.

Another big factor: The government tax credit for first-time buyers.  People are more eager to take advantage of the program before it ends.

To qualify for the $8,000 credit, buyers need to close on their home sale by Nov. 30.  The tax break applies to anyone who hasn’t owned a home for three years.

Also, more people are selling a home and stepping up to a larger, more expensive one.  For much of this year, home owners have been selling but buyers were not buying.  That’s changing.  Now, they’re selling a home for $275,000 that two years ago was worth $325,000 and buying for $475,000 a home that used to sell for $575,000. The move-up buyer is really in a good position.

I think people are more positive about buying a home than they have been.  The consensus seems to be that now is the time to buy a home.

According to the MLS, the median price for a single-family home was $299,990 last month, 14.3 percent less than it was a year ago. For condos, the median was $229,000, an 8 percent drop from July 2008.

It’s Official-The $8000 First Time Home Buyer Tax Incentive Can Be Used for a Down Payment

The first time home buyer tax credit can be used for a down payment all over the country.

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a downpayment.
According to Donovan, the FHA’s approved lenders will be permitted to monetize the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
Call Dave today at 425-330-0663 to find out more about the program.

Overview of the 8k Tax Credit

The Obama administration, as part of the American Recovery and Reinvestment Act of 2009 has provided $288 billion in tax relief for individuals. As part of this relief, first time home buyers are able to claim an $8,000 credit on either their 2008 or 2009 tax return, depending on the closing date. This is a significant benefit for buyers, sellers and real estate investors alike. We wanted to provide you with a solid overview of the tax credit, and discuss what this means to anyone looking to buy or sell real estate soon. Here is an 8-point overview of the tax credit. 

1. Who qualifies? As mentioned, this tax credit is for first time home buyers… kinda. It’s important to note that the IRS defines words a little differently than the rest of us. In this case, the language rules of the IRS actually benefit the individual seeking the tax credit. 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. So, even if you’ve owned five houses in your life, as long as you haven’t owned one in three years, you qualify as a first time home buyer.

 2. How much is the credit? The actual amount of the tax credit is 10% of the home’s value, with a cap at $8,000. This is refundable, which means the IRS will actually send you a check for the entire amount of the credit with your tax return (granted you don’t owe the IRS taxes). CNN Money had a good 3-scenario rundown of filing results:

 “Scenario 1: Your final tax liability is normally $6,000. You’ve had taxes withheld from every paycheck and at the end of the year you’ve paid Uncle Sam $6,000. Since you’ve already paid him all you owe, you get the entire $8,000 tax credit as a refund check.

Scenario 2: Your final tax liability is $6,000, but you’ve overpaid by $1,000 through your payroll witholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.

 Scenario 3: Your final tax liability is $6,000, but you’ve underpaid through your payroll witholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.” (from CNN Money)
Regardless of what scenario you fall under, the bottom line is still… FREE MONEY from the United States Treasury! And, you can do whatever you want with it (invest, improve, save or spend).

 3. What are the conditions? Back to the wordplay of the IRS… the word refundable means two things. One, you get the refund in your return. But there is another provision that says you have to refund the government for the tax credit if you do not maintain ownership of the property for at least three years. This is also known as “recapture,” in that the Government can capture the money back from you.  It’s worth noting that the housing market is in a lull right now, and should rebound as the economy itself bounces back. There is a lot of room for optimism here – it is likely that the property that is available at such low prices today, will turn out to be a fruitful investment – hold on to it for three years and you will get to keep the $8K from the government, and profit thousands of dollars (probably tens of thousands) when you decide to resell.

4. When to file? In order to qualify for the tax credit, closing must happen between January 1, 2009 and December 1, 2009 (November 30 is the last day). The big date to note, though, was May 15 (2009). The importance of this date is that closings that were complete before May 15 can be filed on your 2008 tax return – even if you missed it when you filed, you can still file an amended return and get the credit now (most amended returns are mailed out within 3-5 weeks of filing).

 5. How to file? In order to receive the tax credit, you need to a) file your taxes and b) file the First-Time Homebuyer Credit form (aka Form 5405). This form can be downloaded from irs.gov right here. Aside from your name, the address of the property and the date of acquisition, there are only six fields to fill in. The entire form is just two and a half pages, two of which are instructions.

 6. Income Specifications. There are also income specifications that determine an individual or married couple’s eligibility for the tax credit. Individuals with a modified adjusted gross income of $75,000 or less qualify for the full credit, with the limit for married couples set at $150,000. Those with modified adjusted gross incomes above this amount, may still qualify for a percentage of the tax credit. According to the 5405 form, only those who make over $95,000 a year (or $170,000 for married couples) are ineligible for the tax credit altogether. Those within the $20,000 per year buffer can file for a reduced credit.

 7. What does this mean for the real estate industry? As mentioned earlier, there is a lot to be optimistic about with this credit. First, it adds incentive for people in the market – potential home buyers – to get out there and buy a home. The CNN Money article referenced above points to two potential effects of the credit:

 “…the $8,000 credit will bring an additional 300,000 new homebuyers into the market, according to estimates by Lawrence Yun, chief economist for the National Association of Realtors…The credit could also create a domino effect, he said, because each first-time homebuyer sale will lead to two more trade-up transactions down the line. ‘I think there are many homeowners who would be trading-up but they have had no buyers for their own homes,’ Yun said.”

8. What does this mean for real estate professionals? Real estate professionals should be very excited right now. Not only is there an influx of great valued properties on the market, but there is the impetus of this tax credit (specifically the time parameters of it). All the potential first time home buyers who were patiently waiting it out, now have an incentive to move swiftly, so that the closing is complete before the December 1 deadline. Professionals will be wise to learn and share all the information they can concerning this tax credit with potential clients – who will be all the more enthusiastic about buying a home, knowing they’ll have $8,000 to decorate with.

It’s not all that implausible to imagine that lenders will begin to accommodate short term loans for the amount of the tax credit. This will make home sales and closings more attainable, as it will free up guaranteed funds that can be used towards down payments.

Downsizing Your Home

The new trend in real estate is to live big by living small! Check out this video from the Today Show and see why.

Downsizing Your Home- Watch more Videos at Vodpod.

What is Your Neighborhood Doing?

Overall median home price and volume were down in King and Snohomish Counties for February 2009, comparing year over year sales. However, there were five neighborhoods in King County with positive gains in Median Home Price. The winners are:

Belltown/Seattle – 10.4%
Des Moines/Redondo – 8.9%
Newcastle – 7.2%
Vashon Island – 4.3%
Central Dist/Seattle – 1.5%

We have the numbers for your particular neighborhood. Don’t hesitate to contact us anytime we can be of assistance at 425-330-0663.

February existing home sales rise by 5.1 percent

Good news folks:  Sales of previously occupied homes jumped unexpectedly in February by the largest amount in nearly six years as first-time buyers took advantage of deep discounts on foreclosures and other distressed properties.

The National Association of Realtors said Monday that sales of existing homes grew 5.1 percent to an annual rate of 4.72 million last month, from 4.49 million units in January.

Economists said sales, while still at levels not seen since 1997, may finally be coming back to life after declining sharply following the stock market plunge last autumn.

Are We Up, Down or Sideways!

Everybody from Los Angeles to Boston — your mom, your doctor, your dry cleaner — is puzzling over which way the nation’s real estate market is headed. Up or down? Sideways or not?

It’s a debate that’s been raging for months, and recently there have been clear signs of a up tick. The Northwest MLS reported 4,559 pending sales during February for a 4.7 percent improvement over January.

That total, was the highest volume since September 2008. We have seen a noticeable increase in open house activity, with part of the surge coming from transferees moving into the area who are looking to buy rather than rent. Home values are finally at a point where affordability has returned and the market is slowly beginning to respond to the $8,000 tax credit for first-time buyers.

The $8,000 tax credit for first time buyers does not have to be repaid. . . and first time buyers who purchase before April 15 can apply the tax credit to their 2008 tax return.
The combination of historically low interest rates and increased affordability is an opportune time for buyers to take a look at purchasing their first home.

Local Housing Stimulus Package

As reported by NWREporter

More housing and, ultimately, more construction jobs are the goals of a new housing stimulus package approved by the King County Council at its Dec. 15, 2008 meeting. The measure, proposed by King County Council Chair Julia Patterson and King County Executive Ron Sims, passed with a 6-0 vote, with three members excused.

The package aims for a more streamlined and cost-effective development and permitting process for builders, which is expected to result in more revenue for the county and more environmentally-friendly development. The measure is expected to increase certainty, predictability and consistency for housing builders and lenders while providing critical infrastructure, jobs-based training and educational opportunities.

“This housing stimulus proposal is just one of our efforts to help stimulate our regional economy,” said Executive Ron Sims. “These changes will pay big dividends in the long run because they’ll not only help the struggling housing industry, but also continue to provide benefits to the housing development process long after this worldwide economic crisis passes. We have seen a significant decrease in housing permits. It is essential to look forward to ensure there is enough appropriate housing stock to meet the housing needs in the future.”

The Housing Stimulus Plan adopted by the council considered 10 elements:

1. Review and consider expanding current extensions for approved preliminary plats and short plats;
2. Review and consider expanding current extensions for approved building permits;
3. Permit processing improvements, including but not limited to: project management refinements; implement preferred applicant program for land use inspections, and consider other preferred application processes similar to city of Seattle; review impact of inspection costs on subsidized housing that is already subject to inspection and program requirements; and explore alternatives and process improvements to performance and maintenance bonds;
4. Implement the recommendations from the permit technical advisory committee;
5. Consider increased density bonuses for sustainable development projects;
6. Consider greater development flexibility including, but not limit to; reduced parking requirements, flexible road standards, reduced building setbacks, increased heights and floor area ratios and flexible standards for low impact development, and consider options related to moving the point of collection of all county administered impact fees to a date closer to the end of the development and building process;
7. Consider expanding the use of more efficient in lieu fee mitigation programs including implementing the county’s updated mitigation reserves program to provide greater applicant flexibility and improved environmental outcomes;
8. Identify county properties appropriate for housing development; use of surplus properties; consider co-location of services and housing development for mixed-use opportunities; request for qualifications and proposals for affordable and workforce housing; and leasing county land for affordable and workforce housing use;
9. Continue to only require the replacement or repair of cracked sidewalks when critical to address structural or safety defects; and
10. Work with federal and state government and other partners; advocate for a federal stimulus package which includes resources for local public works infrastructure projects that may allow for reductions in or reimbursements of transportation and school impact fee programs to local jurisdictions; partner with the King County Housing Authority on a homebuyer education program aimed at current renters; coordinate with water and sewer utilities regarding the timing of sewer charges to coincide with occupancy permit issuance; and work with school districts to consider collection of impact fees at a date closer to the end of the development and building process.

According to 2008 market research by the National Association of Home Builders, an average of 3.05 jobs and $89,216 in taxes are produced from building an average new single family home and the development of a typical one-hundred-unit multifamily apartment complex generates one hundred sixteen jobs, $8,670,900 in income from all affected industries and $3,349,400 in tax revenue. In addition, every job created on site by creating or renovating affordable housing an additional 1.5 jobs are created off site. For every dollar invested in affordable housing, an additional ten to fifteen dollars of economic benefit was generated for the surrounding community.

“Executive Sims’ effort to advance a housing stimulus plan represents an important first step toward enhancing the economic vitality of our region’s housing market and getting the economy back on track,” said Sam Anderson, executive officer of the Master Builders Association of King and Snohomish Counties. “The motion recognizes what a critical role housing plays in our local economy, contributing jobs and helping to fund valuable local services.”

Mill Creek Home and a Large Lot?

There is a Mill Creek home on a third of an acre lot that is up for sale. It’s hard to believe all the benefits you get with this house. There’s the standard 3 bedrooms with 3 baths and 2 car garage but a third of an acre lot? And it’s professionally landscaped. It is amazing and the icing on the cake is it backs to a private greenbelt for more privacy.

Inside the owners have upgraded a lot of the features. The master bathroom is a absolute retreat! Natural stone adds such warmth and beauty and the 2 person shower is wonderful! Who knew a bathroom could be your own little oasis!

The kitchen has the largest garden window I’ve ever seen! It looks out onto the beautiful backyard and lets in a lot of natural light.

The owners have done an amazing job with this home and you really should see it for yourself. All these features and in Mill Creek, almost unheard of! For a 24 hour recorded message call 800-436-3615 x1115 or click here for more photos and information.