NW Real Estate Community News January 2010
Western WA Pending Home Sales Best Since December 2006
The volume of pending sales was up more than 35 percent from a year ago & marked the best December activity since 2006.
Closed sales for December were up over 54 percent from year ago totals. The median price for last month's completed transactions (just single family homes) was $273,000 compared to last year's median price of $290,000 (down about 6 percent). Condo prices have dropped about 14.6 percent, from $263,475 to last month's figure of $225,000.
Inventory is down almost 16 percent from a year ago; with the four county Puget Sound Region active listings down 18 percent (Kitsap county is down over 25 percent.
What does this mean for Sellers:
For those of you thinking of selling in 2010, the low inventory levels now will give you a better opportunity to find a buyer..... rather than later in the year.
(Usually most sellers wait till Spring/ Summer to sell their homes; which is when inventory levels are at their highest. Because owners are competing with so many other sellers at that time, their chance of selling decreases....as they will all be competing for the same buyers.)
The homebuyer tax credit gives buyers an incentive to generate an offer on a property before May 1, 2010....so serious buyers who want to take advantage of this credit will be looking to secure a property in the early months of the year,
Interest rates are still very favorable right now (although they fluctuate slightly on a day to day basis), and the serious buyers will be wanting to lock into a lowest interest rate possible to complete their purchase.
What does this mean for Buyers:
The homebuyer tax credit allows 1st time buyers and returning buyers to take advantage of the direct reduction of their tax liability, or give them a refund if their tax liability is less than the credit)....but only if they have mutual acceptance on a property before May 1, 2010.
Interest rates are still very favorable, however they normally fluctuate daily, so buyers will be looking for the best interest rate window to lock their loans.
Prices have decreased over the past year, so prices are now at 2004-2005 levels.
Tax Credits for Home Improvements
Federal Tax Credits
If you're looking for a tax break this year...you may be able to use the tax credit available for completed home improvements that make your home more energy efficient.
The following can provide federal tax credits- an amount taken directly off your tax owed (as opposed to simply reducing taxable income):
** 30 percent off the purchase price up to a $1,500 maximum, on insulation windows, doors, skylights, storm windows, storm doors, & roofing (metal or asphalt).
** HVAC (heating, ventilation & air conditioning) systems
** Air source heat pumps
** Natural gas or propane furnaces
** Oil furnaces
** Hot water boilers
** Whole house fans- an advanced main air circulating fan
** Water heaters
** Biomass stoves- stoves that burn any plant derived fuel available on a renewable basis
** Geothermal heat pumps
** Solar energy systems for heating water or providing electricity for a residence
** Small wind energy systems
** Fuel cells (Remember to check for efficiency requirements that meet the federal standards eligible for the tax credit.
Go to energystar.gov/taxcredits for specific information because requirements vary from purchases made after June 1 2009.
Local Rebates
Seattle City Light customers can receive a rebate now on qualified clothes washers by contacting SCI, and consumers can potentially save money through rebates from Washington state on appliance purchases in 2010.
The Department of Energy recently accepted applications from states for federal funds to be used in specific rebate programs (WA state has applied for, but not been approved for these rebates yet. They are proposing rebates for high efficiency refrigerators and clothes dryers. If approved the program will begin sometime in February 2010.
Check www.commerge.wa.gov/recovery for the most recent information on these rebates.
Tax Deduction Reminder
Remember to take a deduction for mortgage interest you pay for your personal residence as well as any second home you may own (as long as you are the primary borrower, legally obligated to repay the loan, and make the payments throughout the year. That includes standard mortgages, lines of credit and homes equity loans (HELOC's).
The exact amount you can deduct depends on your mortgage (up to $1Million). For adjustable rate mortgages with "deferred" components (like deferred interest) the amounts you can deduct will depend on the amount you actually paid during the year.
(It's always a good idea to check with your CPA or tax preparer to check for other tax loopholes).
Remodeling Magazine 2009-2010 Cost vs Value Report Results
The latest numbers are out comparing construction costs for 33 popular remodeling projects against the share of costs recovered at resale.
The greater Seattle is one of the regions with the highest returns:
Mid-range replacements deliver:
(1) steel entry doors- 108 percent,
(2) attic bedroom remodel- 102 percent,
(3) wood and vinyl windows- 98 to 93 percent, basement remodel, wood deck addition, minor kitchen remodel and major kitchen remodel- 96 to 90 percent.
Upscale replacements deliver:
(1) cement siding replacement- 103 percent,
(2) wood and vinyl window replacements- 96 to 90 percent.
There were many other projects mentioned, all returning less than 90 percent this year.
A few returns on investment were up from 2008-2009 levels: the attic bedroom remodel and entry door replacements.
Given the current economy, most remodels that you may be thinking about should be done for your enjoyment (and not for a specific return on your investment).
The 5 Most Common Defects in Real Proeperty
Whether you are buying or selling; it pays to pay special attention on the following potential problem areas of a property;
1. A bad Foundation
2. An Old or Worn Roof
3. Poor Water Drainage
4. Termite or Pest Infestations
5. Inadequate Systems, such as Wiring, Plumbing and Heating.
A good home inspector will be able to identify these issues. You can probably pick these
out yourself, or with the help of your Realtor before you get to the official buyer's inspection.
Decorator Color Trends for 2010
"Color Pulse 2010" recently predicted the upcoming color trends to watch for in the new year. Expect a resurgence in purple (considered THE color for 2010) and blue tones. Yellows will be influenced by green with caramel hues re-emerging. Golds and other metallics will have a strong presence. Reds will be blackened with purple and blue undertones. Red and white combinations will be popular. Greens will be fresher fusing with yellows and away from the sages. Tonalities of beige and gray will be the go-to neutrals.
Spicy Pork Chops
Here's a tasty quick 15 min entre for a busy family.
Ingredients
1 teaspoon paprika
1/2 teaspoon ground cumin
1/2 teaspoon ground black pepper
1/2 teaspoon cayenne pepper
1/2 teaspoon rubbed dried sage leaves
1/2 teaspoon garlic salt
1 1/2 teaspoons extra-virgin olive oil
4 center cut pork chops
Directions
1.Mix paprika, cumin, black pepper, cayenne pepper, sage, and garlic salt on a plate. Liberally coat each pork chop with the spice mixture.
2.Heat olive oil in a large skillet over high heat. Place pork chops in the skillet, reducing heat to medium. Cook until the pork is no longer pink in the center, 8 to 10 minutes (160 degrees F).
January Jokes
Chatty Parrot
There was a family that had a parrot that was always embarrassing them by cussing and using other inappropriate language. So one day the boy took the parrot and stuck him in the freezer. Two hours later the squawking stopped.
The kid checked the freezer and the parrot said, "Okay I'll stop cussing, but I have one question".
The boy said, "What"?
The Parrot asks, "What did the turkey do?"
You know you are from the Pacific Northwest if:
You feel guilty throwing out paper or aluminum cans.
You know more people who own a boat than own an air conditioner.
You can order coffee 10 different ways.
You know the difference between Coho, Chinook, and Sockeye salmon.
You have no concept of humidity without precipitation.
You know that a forecast of "rain, changing to showers" means "constant drizzle changing to intermittent drizzle."
You rejoice at a forecast of "rain with sun breaks."
When the temperature gets above 50, you put on your shorts (If you're warm blooded, that is. If you're cold blooded, you wear a sweatshirt all summer.)
You can point out at least two volcanoes, even if you can't see through the cloud cover.
You think people who use umbrellas are either tourists or wimps (or both).
You use a down comforter and wear flannel pajamas in the summer.
Every year you have to buy new sunglasses because you can't find the old ones you used last year.
Hope you enjoyed this newsletter!
Please let me know if you have any topics or questions that you would like discussed in the next newsletter.
You can contact me at 206-226-6925 or 425-772-888
(text too)...or at christin.leupold@att.net
It's always my pleasure to assist you and any family/friends you refer to me!
(my business is built on referrals)
Thanks and Have a Wonderful Day!
January 2010
Western WA Pending Home Sales Best Since December 2006
The volume of pending sales was up more than 35 percent from a year ago & marked the best December activity since 2006.
Closed sales for December were up over 54 percent from year ago totals. The median price for last month's completed transactions (just single family homes) was $273,000 compared to last year's median price of $290,000 (down about 6 percent). Condo prices have dropped about 14.6 percent, from $263,475 to last month's figure of $225,000.
Inventory is down almost 16 percent from a year ago; with the four county Puget Sound Region active listings down 18 percent (Kitsap county is down over 25 percent.
What does this mean for Sellers:
For those of you thinking of selling in 2010, the low inventory levels now will give you a better opportunity to find a buyer..... rather than later in the year.
(Usually most sellers wait till Spring/ Summer to sell their homes; which is when inventory levels are at their highest. Because owners are competing with so many other sellers at that time, their chance of selling decreases....as they will all be competing for the same buyers.)
The homebuyer tax credit gives buyers an incentive to generate an offer on a property before May 1, 2010....so serious buyers who want to take advantage of this credit will be looking to secure a property in the early months of the year,
Interest rates are still very favorable right now (although they fluctuate slightly on a day to day basis), and the serious buyers will be wanting to lock into a lowest interest rate possible to complete their purchase.
What does this mean for Buyers:
The homebuyer tax credit allows 1st time buyers and returning buyers to take advantage of the direct reduction of their tax liability, or give them a refund if their tax liability is less than the credit)....but only if they have mutual acceptance on a property before May 1, 2010.
Interest rates are still very favorable, however they normally fluctuate daily, so buyers will be looking for the best interest rate window to lock their loans.
Prices have decreased over the past year, so prices are now at 2004-2005 levels.
Tax Credits for Home Improvements
Federal Tax Credits
If you're looking for a tax break this year...you may be able to use the tax credit available for completed home improvements that make your home more energy efficient.
The following can provide federal tax credits- an amount taken directly off your tax owed (as opposed to simply reducing taxable income):
** 30 percent off the purchase price up to a $1,500 maximum, on insulation windows, doors, skylights, storm windows, storm doors, & roofing (metal or asphalt).
** HVAC (heating, ventilation & air conditioning) systems
** Air source heat pumps
** Natural gas or propane furnaces
** Oil furnaces
** Hot water boilers
** Whole house fans- an advanced main air circulating fan
** Water heaters
** Biomass stoves- stoves that burn any plant derived fuel available on a renewable basis
** Geothermal heat pumps
** Solar energy systems for heating water or providing electricity for a residence
** Small wind energy systems
** Fuel cells (Remember to check for efficiency requirements that meet the federal standards eligible for the tax credit.
Go to energystar.gov/taxcredits for specific information because requirements vary from purchases made after June 1 2009.
Local Rebates
Seattle City Light customers can receive a rebate now on qualified clothes washers by contacting SCI, and consumers can potentially save money through rebates from Washington state on appliance purchases in 2010.
The Department of Energy recently accepted applications from states for federal funds to be used in specific rebate programs (WA state has applied for, but not been approved for these rebates yet. They are proposing rebates for high efficiency refrigerators and clothes dryers. If approved the program will begin sometime in February 2010.
Check www.commerge.wa.gov/recovery for the most recent information on these rebates.
Tax Deduction Reminder
Remember to take a deduction for mortgage interest you pay for your personal residence as well as any second home you may own (as long as you are the primary borrower, legally obligated to repay the loan, and make the payments throughout the year. That includes standard mortgages, lines of credit and homes equity loans (HELOC's).
The exact amount you can deduct depends on your mortgage (up to $1Million). For adjustable rate mortgages with "deferred" components (like deferred interest) the amounts you can deduct will depend on the amount you actually paid during the year.
(It's always a good idea to check with your CPA or tax preparer to check for other tax loopholes).
Remodeling Magazine 2009-2010 Cost vs Value Report Results
The latest numbers are out comparing construction costs for 33 popular remodeling projects against the share of costs recovered at resale.
The greater Seattle is one of the regions with the highest returns:
Mid-range replacements deliver:
(1) steel entry doors- 108 percent,
(2) attic bedroom remodel- 102 percent,
(3) wood and vinyl windows- 98 to 93 percent, basement remodel, wood deck addition, minor kitchen remodel and major kitchen remodel- 96 to 90 percent.
Upscale replacements deliver:
(1) cement siding replacement- 103 percent,
(2) wood and vinyl window replacements- 96 to 90 percent.
There were many other projects mentioned, all returning less than 90 percent this year.
A few returns on investment were up from 2008-2009 levels: the attic bedroom remodel and entry door replacements.
Given the current economy, most remodels that you may be thinking about should be done for your enjoyment (and not for a specific return on your investment).
The 5 Most Common Defects in Real Proeperty
Whether you are buying or selling; it pays to pay special attention on the following potential problem areas of a property;
1. A bad Foundation
2. An Old or Worn Roof
3. Poor Water Drainage
4. Termite or Pest Infestations
5. Inadequate Systems, such as Wiring, Plumbing and Heating.
A good home inspector will be able to identify these issues. You can probably pick these
out yourself, or with the help of your Realtor before you get to the official buyer's inspection.
Decorator Color Trends for 2010
"Color Pulse 2010" recently predicted the upcoming color trends to watch for in the new year. Expect a resurgence in purple (considered THE color for 2010) and blue tones. Yellows will be influenced by green with caramel hues re-emerging. Golds and other metallics will have a strong presence. Reds will be blackened with purple and blue undertones. Red and white combinations will be popular. Greens will be fresher fusing with yellows and away from the sages. Tonalities of beige and gray will be the go-to neutrals.
Spicy Pork Chops
Here's a tasty quick 15 min entre for a busy family.
Ingredients
1 teaspoon paprika
1/2 teaspoon ground cumin
1/2 teaspoon ground black pepper
1/2 teaspoon cayenne pepper
1/2 teaspoon rubbed dried sage leaves
1/2 teaspoon garlic salt
1 1/2 teaspoons extra-virgin olive oil
4 center cut pork chops
Directions
1.Mix paprika, cumin, black pepper, cayenne pepper, sage, and garlic salt on a plate. Liberally coat each pork chop with the spice mixture.
2.Heat olive oil in a large skillet over high heat. Place pork chops in the skillet, reducing heat to medium. Cook until the pork is no longer pink in the center, 8 to 10 minutes (160 degrees F).
January Jokes
Chatty Parrot
There was a family that had a parrot that was always embarrassing them by cussing and using other inappropriate language. So one day the boy took the parrot and stuck him in the freezer. Two hours later the squawking stopped.
The kid checked the freezer and the parrot said, "Okay I'll stop cussing, but I have one question".
The boy said, "What"?
The Parrot asks, "What did the turkey do?"
You know you are from the Pacific Northwest if:
You feel guilty throwing out paper or aluminum cans.
You know more people who own a boat than own an air conditioner.
You can order coffee 10 different ways.
You know the difference between Coho, Chinook, and Sockeye salmon.
You have no concept of humidity without precipitation.
You know that a forecast of "rain, changing to showers" means "constant drizzle changing to intermittent drizzle."
You rejoice at a forecast of "rain with sun breaks."
When the temperature gets above 50, you put on your shorts (If you're warm blooded, that is. If you're cold blooded, you wear a sweatshirt all summer.)
You can point out at least two volcanoes, even if you can't see through the cloud cover.
You think people who use umbrellas are either tourists or wimps (or both).
You use a down comforter and wear flannel pajamas in the summer.
Every year you have to buy new sunglasses because you can't find the old ones you used last year.
Hope you enjoyed this newsletter!
Please let me know if you have any topics or questions that you would like discussed in the next newsletter.
You can contact me at 206-226-6925 or 425-772-888
(text too)...or at christin.leupold@att.net
It's always my pleasure to assist you and any family/friends you refer to me!
(my business is built on referrals)
Thanks and Have a Wonderful Day!
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