The market has been a challenge, for sure.  However, I have closed a few of my higher end homes recently.  Buyers still seem to have the edge, as motivated sellers have been taking low ofers due to the uncertainty of the market's future. Check out our AUGUST STATS.

By 2014 - 2015 there will be 59% home ownership - good news

Rents are currently UP 15% and rising. Good news for investors.

Get this one - by the end of this year 50% of Americans will own a smart phone. Up from 38% NOW!

By the end of 2013 - over 50% of all web searches will be from a MOBILE device. Go get your iPad NOW!

81% of folks under 40 years old ALREADY own a smart phone.

So - do you think technology is running at the speed of light, or what??

http://www.bellinghamwow.com/Your-Real-Estate-Minute

ENJOY!

Wall St Journal Online predictions for the top ten housing markets that will rise the most this year - and Bellingham is NUMBER 5!!

Check out the entire article:

http://247wallst.com/2011/05/11/housing-markets-that-will-rise-most-this-year/3/ 

And, although, housing prices are trending downward, and foreclosures are rising faster than a Tsunami...there's no such thing as a free home, either.  Buyers seem to be paused waiting for the "bottom" before they buy...sellers similarly appear to be waiting for housing prices to rise before selling. Meanwhile, foreclosures are flooding the market further pushing down the "tide" of home prices.

Of serious concern, however, are the sellers who just can't [shouldn't?] wait any longer to sell their home!  These are the potential home-sellers who NEED to get out from under the burden of their mortgage payment.

Often distressed homeowners struggle until they are many months past due in their payments.  Of course, they are just hard working Americans trying to keep up with the contract they have entered into - still fighting hard to hold onto the "American Dream!"  I admire these people. Many of them are my friends and neighbors; Yours too.

Now, you may say, "What?...no one in my neighborhood is struggling!" Well, the statistics say otherwise!  And, certainly, no one walks outside to their mailbox and announces to their neighbor "Hey Larry. I'm headed to talk to my banker about foreclosure today. ...how about you?"  No, they put on their suit and a brave face and struggle along in silence.

What I'd like my fellow neighbors to know is this: You don't have to struggle alone.  You are NOT alone.  Over 4 million people have been helped by a United States Federal Program called Making Home Affordable.  This program, implemented in 2009, is designed to help Americans stay in their home, or exit gracefully, if that is the right option for them.  The key word here is "option" - there are many of them.  Everything from reducing the interest rate and/or monthly payment, to assistance if you are unemployed, to reductions in principal if your home value is "upside-down".

The other key words here are - Don't Wait.  Act Now.

And while there's no such thing as a Free Home...there are ways to make your home more affordable.

Please...go to www.MakingHomeAffordable.gov and get started on learning how you can again Make Your Home Affordable.

- - - - - - - -

Please contact me if you believe I can be of assistance in any way.

3/2/2011

SUNDAY, MARCH 13TH 

11:00am AND 1:00pm

We will be having TWO 20 minute presentations showing distressed homeowners options provided by the Federal Government to:

This is FREE; . . . a community service provided by the WOW Team at Bellinghamwow.com. There is NO obligation.

We will cover Frequently Asked Questions and the necessary Next Steps to getting more help in these tough economic times. Come join the conversation!

Remember, this service is FREE. We'll be available after the presentation to answer your questions.

We look forward to seeing you!!

Motivated buyers returning to the housing market

KIRKLAND, WA, February 3, 2011. Dramatic increases in open house activity and shrinking inventory are fueling optimism among members of the Northwest Multiple Listing Service. Commenting on the just-released MLS report on January's housing activity, one director stated, "There is a strong belief in the industry that the worst is behind us and we can look forward with confidence."

Darin Stenvers, managing broker at John L. Scott in Bellingham, who made that comment, also noted consumers are gaining confidence and buyers may be seeing what they believe is the bottoming of the market. "I'm very optimistic about the housing market for 2011 and the buyers and sellers should be as well," he exclaimed.

Year-over-year pending sales were down somewhat, the volume of new listings declined more than 23 percent, sales prices continued to slip, but the number of closed sales increased slightly across the 21 counties in the Northwest MLS service area.

Last month's pending sales lagged totals for the same month a year ago, but only by 186 units system- wide, a decline of about 3.3 percent. Northwest MLS director Matt Deasy, the broker at Windermere Real Estate/East in Bellevue, said he considered anything within 5 percent of a year ago when tax incentives were boosting sales a "home run."

Members reported 5,393 pending sales (mutually accepted offers) of single family homes and condominiums during January. That compares to 5,579 pending sales for the same period a year ago, and marked a big gain from both January 2009 (4,353 pending sales) and January 2008 (4,499 pending sales).

"I expect sales to be soft through April when compared to last year since first quarter sales volume was artificially inflated by the rush to take advantage of the tax credit that expired on April 30," said OB Jacobi, president of Windermere Real Estate Company. "A more apples-to-apples assessment of sales will be to compare first quarter this year with first quarter 2009," he suggested.

Closed sales rose a modest 2.1 percent from a year ago, increasing from 3,142 transactions to 3,207 sales. Prices on those completed sales were down about 6.3 percent. The overall median price for last month's closed sales of single family homes and condominiums was $243,500, which compares to the year-ago selling price of $259,903.  For single family homes (excluding condominiums) the median selling price was $250,000, down about 5 percent from a year ago; for condos, last month's sales had a median price of $200,000, down 16.7 percent from twelve months ago.

Only four counties (Clallam, Cowlitz, Kitsap, and Okanogan) reported year-over-year price gains.

In King County, the median sales price on last month's sales was $333,500, a drop of 4.7 percent from twelve months ago when it was $350,000.

Brokers attribute part of the price drop to sales of distressed homes (in general, meaning homes under foreclosure or impending foreclosure).

"Distressed properties are making up an increasingly greater share of sales than a year ago, and that trend is expected to continue," observed Jacobi. Noting the sales price for distressed properties could be 20-to-30 percent less than for normal sales, he said "it's no surprise that a greater percentage of low-priced distressed properties is pulling down the median price."

Whether considering a property classified as distressed or a conventional listing, house-hunters can choose from 32,647 active listings in the Northwest MLS system at the end of January. That selection is 4.7 percent smaller than a year ago when there were 34,256 properties listed with member-brokers.

Not nearly as many newly listed homes were offered for sale last month compared to twelve months ago. MLS members recorded 8,556 new listings, which included 7,167 single family homes and 1,389 condominiums. The combined total is down nearly 24 percent from the same month a year ago when members added 11,206 new listings to inventory.

MLS director Bobbie Petrone Chipman said overall, January was a positive month around Pierce County, where her office is located. Noting that area experienced a 27 percent reduction of new listings, a 2.4 percent increase in pending sales and a 10.8 percent jump in closed sales, Petrone Chipman, co-managing principal broker at Coldwell Banker Bain Tacoma/Puyallup, said the month reflected "a bit more balance as we dip our toe into the new year."

Deasy also expects more balance, with sales more evenly distributed during the year, unlike 2010 when sixty percent of their sales occurred in the first half of the year. He also predicts closed sales will increase year over year, while at the same time pending sales might decrease year over year. This is the result of a higher percentage of pending sales actually closing, he explained, citing various factors. "Banks are better at short sales, brokers are better at short sales, appraisal issues are less frequent, and lending standards are becoming more stable."

Based on anecdotal reports of open house traffic, brokers are hopeful of upticks in sales.

"The buyer activity at open houses in the close in Seattle neighborhoods has increased dramatically in the past month, said Northwest MLS director Mike Skahen. "If there were more good new listings coming on the market there would be more sales," he suggested.

Skahen, the owner/broker at Lake & Co. Real Estate in Seattle, believes the shortage of new listings is causing an increase in multiple offers. As an example, he said a small Green Lake townhouse project that had been on the market for more than four months with no offers finally had one unit sell a few weeks ago. Last weekend four offers came in on another unit. "I have not seen buyers this motivated in three  years," he remarked, adding, "Sellers should not wait for spring flowers to bloom to put their homes on the market as they usually do because there is much less competition now than there will be soon."

Industry leaders have recommendations to benefit both sellers and buyers.

Accurate pricing is paramount. "Sellers are learning there is a small window of opportunity to have consumers sees their home before ruling it out and moving on," suggested Stenvers.

"My advice to buyers in today's market is to get pre-approved prior to starting their home search in order to avoid any delays that might result from the new lending standards process," said J. Lennox Scott, chairman and CEO of John L. Scott Real Estate." This way," he explained, "buyers are ready to act quickly when they do find a home on which to make an offer."

As for sellers, Scott said pricing and presentation have never been more important. "Pricing must be comparable with the other properties that have recently sold in their local area and the home must be in pristine show condition from day one."

MLS director Pat Grimm, owner/broker at Windermere Real Estate/Capitol Hill, detected some hesitancy to list properties now. Distressed properties sell for less, but buyers face uncertainty and a long timeframe, he explained, noting the large percentage of distressed properties on the market has resulted in an interesting side effect: sellers of non-distressed properties are having an advantage.

"On one hand, I'm seeing sellers that are hesitant to bring their listings onto the market and compete with the price of short sale properties," Grimm commented. On the other hand, he said buyers are looking at all the inventory and, because of the complications of purchasing distressed properties, are favoring properties that are not short sales or bank owned.

In Seattle, Grimm said the sweet spot is homes priced $400,000-500,000, in good shape that are not distressed. "They appeal to both first-time buyers and downsizers," he reported, citing two examples:
A Capitol Hill home went on the market at $450,000, received seven offers and sold in a week for significantly more than asking price. In the second example, a View Ridge listing priced at $499,000 had 25 groups through an open house in a two-hour span. It has a view and a great location above the Burke-Gilman trail. "Both homes were in the $400-$500,000 price range, well maintained, and not distressed."

Several other NWMLS directors commented on the impact of distressed properties:

• "We still have the better part of the next five years to work through short sales and bank owned property but this is a start," commented Frank Wilson, branch managing broker at John L. Scott Real Estate in Poulsbo. He described January 2010 as an anomaly due to the tax credit, and said even though last month was down in many respects compared to last year, it better reflects the true market. "It is good to start a new year off without any government incentives and is hopefully the start of returning to normal."
• Some owners are opting to rent their homes as the market recovers. As demand increases and rents rise, investors are returning, said Stenvers. Also emerging is a new group of renters – past owners who lost their home to foreclosure or short sale, he noted, adding, "These renters are willing to sign long-term contracts so they can get their credit rating repaired." For example, Stenvers said his office recently listed a rental. The renters were a professional couple in the midst of a short sale in Florida. "They are looking at a very long term commitment to renting to help them save money and recover from their loss."
• "Buyers are reluctant to look at distressed properties not because of the characteristics of the property, but because of the process," said Grimm. He called the long delays with lenders regarding the sale of distressed properties "a major choke point." Grimm acknowledged there has been significant progress with the banks trying to figure out the situation, but stated, "We're still a long way from making it buyer-friendly."

Figures from the National Association of Realtors® show distressed homes rose to 36 percent of sales of existing homes in December, up from 33 percent in November and 32 percent a year ago. Such homes are typically discounted by 10 to 15 percent, according to NAR research. 

Lynn Stone, founder of SmilingGreenMom.com, aspires to own an eco-friendly log cabin one day.  She credits the changes her family made towards being green as starting with their search for natural treatments for her son’s severe eczema. As she sought alternatives to chemicals and additives, she began sharing her tips.

The "Smiling Green Mom's" 11 Tips for Going Green in 2011

1. Composting: Building a compost pile is an easy way to add many beneficial ingredients to the soil while reducing garbage volume. It also benefits the community by reducing the nearly 25 percent of compostable landfill waste, according the Environmental Protection Agency (EPA).
2. Recycle paper and electronics: Anything from paper and plastics to metals and electronics can be recycled. Doing so can preserve resources, the amount of landfill space being used and energy use. The EPA estimates that only 15-20 percent of e-waste is recycled. The remainder goes directly into landfills and incinerators, causing dangerous heavy metals and toxins to accumulate, along with serious environmental risks. For more info on recycling in Bellingham visit: http://www.safeandeasyrecycling.com
3. Go Plastic Free: Eliminate plastics by switching to reusable whenever possible. Start by using reusable stainless steel water bottles and carrying cloth grocery bags anytime you are shopping.
4. Plant a garden: Even with limited outdoor space, a garden can produce a wide variety of nutritious foods. If space is very limited, consider a container garden or small herb garden to enhance your culinary experience.
5. Laundry: Whenever doing laundry, make sure it is a full load and wash clothes in cold water using safe non-toxic laundry soap. Hang clothes to dry.
6. Support local farmers and eat in season: Most food in grocery stores has been picked in the fields, sent to distribution centers, and then shipped thousands of miles before ever hitting store shelves. In contrast, when you purchase from local farmers, you can put a face with your food, and know your food has been picked within a day or two of purchasing. Buying fresh local food has many other advantages including reduced vehicle pollution, little or no and packaging. It may also be organic and pesticide-free. 
7. Unplug and upgrade appliances and electronics: Unplug electronics and appliances when not needed or in use. Replace broken products with new energy efficient models that have an Energy Star label. Sponsored by the Department of Energy and the EPA, the Energy Star label program denotes compliance with specified energy efficiency requirements.  Products with this label offer substantial savings and now include major appliances, office equipment, lighting, home electronics, and more.
8. Turn it off! Turn the water off while brushing teeth and turn off lights every time you leave the room. Consider purchasing low-flow showerheads, faucet aerators and energy efficient CFL or LED light bulbs.
9. Use eco-friendly cleaning products: With just a few common household items, you can make your own cleaning products as needed. (Search the web for recipes.) Homemade cleaning products using ingredients such as vinegar, baking soda, lemon and tea tree oil can save money, time and the packaging required for store-bought brands. Toxic-free homemade cleaners are also safer and healthier.
10. Never purchase paper towels or napkins again: Instead, use old washcloths cut into smaller squares, old socks for dusting, old t-shirts cut up for cleaning and reusable cloth napkins and hand-towels.
11. Borrow or Buy Used: Borrow your books, music and movies from your local library to save money while cutting down on resources needed to manufacture new. Set up online accounts with EBay, freecycle.org or shop thrift stores and garage sales when looking for anything from clothing to furniture.

I especially like tip #6 - Supporting the local Farmers.  I do this by going to the local Farmer's Market.  If you haven't already discovered this AMAZING local market, be sure to check it out Opening Day - April 2, 2011 - when they traditionally "roll out the cabbage"!  Here's their website for more info: http://www.bellinghamfarmers.org    Hope to see you there!!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.