Well here it is- 2010 Forecast
Sunday, January 24, 2010
Tuesday, November 17, 2009
BUYER TAX CREDIT EXTENSION
Here are the provisions for the extended buyer tax credit.
click to enlarge
Thursday, October 29, 2009
LATEST NEWS ON TAX CREDIT
WASHINGTON (MarketWatch) -- Senators have struck a deal to extend a popular tax credit for home buyers beyond those buying their first house, Senate Majority Leader Harry Reid's office said Wednesday.
Legislators also have agreed to extend the tax credit through the end of April, according to a Reuters report.
An $8,000 credit for first-time home buyers is set to expire at the end of November. Under a compromise reached by senators, the credit would be expanded to those who have lived in their home for five consecutive years, a Reid spokeswoman said.
The credit for repeat buyers would be $6,500.
The credit reportedly would be available for individuals making up to $125,000 a year and couples earning up to $225,000 per year, up from the current income limits of $75,000 and $150,000, respectively.
Legislators also have agreed to extend the tax credit through the end of April, according to a Reuters report.
An $8,000 credit for first-time home buyers is set to expire at the end of November. Under a compromise reached by senators, the credit would be expanded to those who have lived in their home for five consecutive years, a Reid spokeswoman said.
The credit for repeat buyers would be $6,500.
The credit reportedly would be available for individuals making up to $125,000 a year and couples earning up to $225,000 per year, up from the current income limits of $75,000 and $150,000, respectively.
Saturday, September 19, 2009
$ 8,000 TAX CREDIT FOR BUYERS
Tax Credit Provides Outstanding Opportunity for Home Buyers A tax credit of up to $8,000 is available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.
Also a possible extension in the works........ click here to read.
Also a possible extension in the works........ click here to read.
Tuesday, August 25, 2009
SLOW PROGRESS BUT PROGRESS !
Latest Housing report.... Prices increased in 15 of the 20 Case-Shiller cities in June. If you wish to read the entire report please go here. It would appear we are reaching the bottom inch by inch.
Monday, August 24, 2009
GLEN ACRES CONDOMINIUM LAWSUIT
This is a continuation of the previous post of about a week ago. Click here to review that post. The importance of doing your homework prior to buying a condominium is imperative. Improperly run or underfunded homeowners associations can destroy resale value and give existing owners grief. You can obtain information from a variety of sources but the most vital is the resale certificate. I do not know the validity of the lawsuit that is pending against Glen Acres but prior to buying any condominium you must do your homework!
RCW regarding resale units and reserve studies:
RCW 64.34.425
Resale of unit.
(1) Except in the case of a sale where delivery of a public offering statement is required, or unless exempt under RCW 64.34.400(2), a unit owner shall furnish to a purchaser before execution of any contract for sale of a unit, or otherwise before conveyance, a resale certificate, signed by an officer or authorized agent of the association and based on the books and records of the association and the actual knowledge of the person signing the certificate, containing: (a) A statement disclosing any right of first refusal or other restraint on the free alienability of the unit contained in the declaration; (b) A statement setting forth the amount of the monthly common expense assessment and any unpaid common expense or special assessment currently due and payable from the selling unit owner and a statement of any special assessments that have been levied against the unit which have not been paid even though not yet due; (c) A statement, which shall be current to within forty-five days, of any common expenses or special assessments against any unit in the condominium that are past due over thirty days; (d) A statement, which shall be current to within forty-five days, of any obligation of the association which is past due over thirty days; (e) A statement of any other fees payable by unit owners; (f) A statement of any anticipated repair or replacement cost in excess of five percent of the annual budget of the association that has been approved by the board of directors; (g) A statement of the amount of any reserves for repair or replacement and of any portions of those reserves currently designated by the association for any specified projects; (h) The annual financial statement of the association, including the audit report if it has been prepared, for the year immediately preceding the current year; (i) A balance sheet and a revenue and expense statement of the association prepared on an accrual basis, which shall be current to within one hundred twenty days; (j) The current operating budget of the association; (k) A statement of any unsatisfied judgments against the association and the status of any pending suits or legal proceedings in which the association is a plaintiff or defendant; (l) A statement describing any insurance coverage provided for the benefit of unit owners; (m) A statement as to whether there are any alterations or improvements to the unit or to the limited common elements assigned thereto that violate any provision of the declaration; (n) A statement of the number of units, if any, still owned by the declarant, whether the declarant has transferred control of the association to the unit owners, and the date of such transfer; (o) A statement as to whether there are any violations of the health or building codes with respect to the unit, the limited common elements assigned thereto, or any other portion of the condominium; (p) A statement of the remaining term of any leasehold estate affecting the condominium and the provisions governing any extension or renewal thereof; (q) A copy of the declaration, the bylaws, the rules or regulations of the association, the association's current reserve study, if any, and any other information reasonably requested by mortgagees of prospective purchasers of units. Information requested generally by the federal national mortgage association, the federal home loan bank board, the government national mortgage association, the veterans administration and the department of housing and urban development shall be deemed reasonable, provided such information is reasonably available to the association; (r) A statement, as required by RCW 64.35.210, as to whether the units or common elements of the condominium are covered by a qualified warranty, and a history of claims under any such warranty; and (s) If the association does not have a reserve study that has been prepared in accordance with RCW 64.34.380 and 64.34.382 or its governing documents, the following disclosure:
"This association does not have a current reserve study. The lack of a current reserve study poses certain risks to you, the purchaser. Insufficient reserves may, under some circumstances, require you to pay on demand as a special assessment your share of common expenses for the cost of major maintenance, repair, or replacement of a common element." (2) The association, within ten days after a request by a unit owner, and subject to payment of any fee imposed pursuant to RCW 64.34.304(1)(l), shall furnish a resale certificate signed by an officer or authorized agent of the association and containing the information necessary to enable the unit owner to comply with this section. For the purposes of this chapter, a reasonable charge for the preparation of a resale certificate may not exceed one hundred fifty dollars. The association may charge a unit owner a nominal fee for updating a resale certificate within six months of the unit owner's request. The unit owner shall also sign the certificate but the unit owner is not liable to the purchaser for any erroneous information provided by the association and included in the certificate unless and to the extent the unit owner had actual knowledge thereof. (3) A purchaser is not liable for any unpaid assessment or fee against the unit as of the date of the certificate greater than the amount set forth in the certificate prepared by the association unless and to the extent such purchaser had actual knowledge thereof. A unit owner is not liable to a purchaser for the failure or delay of the association to provide the certificate in a timely manner, but the purchaser's contract is voidable by the purchaser until the certificate has been provided and for five days thereafter or until conveyance, whichever occurs first.
RCW regarding resale units and reserve studies:
RCW 64.34.425
Resale of unit.
(1) Except in the case of a sale where delivery of a public offering statement is required, or unless exempt under RCW 64.34.400(2), a unit owner shall furnish to a purchaser before execution of any contract for sale of a unit, or otherwise before conveyance, a resale certificate, signed by an officer or authorized agent of the association and based on the books and records of the association and the actual knowledge of the person signing the certificate, containing: (a) A statement disclosing any right of first refusal or other restraint on the free alienability of the unit contained in the declaration; (b) A statement setting forth the amount of the monthly common expense assessment and any unpaid common expense or special assessment currently due and payable from the selling unit owner and a statement of any special assessments that have been levied against the unit which have not been paid even though not yet due; (c) A statement, which shall be current to within forty-five days, of any common expenses or special assessments against any unit in the condominium that are past due over thirty days; (d) A statement, which shall be current to within forty-five days, of any obligation of the association which is past due over thirty days; (e) A statement of any other fees payable by unit owners; (f) A statement of any anticipated repair or replacement cost in excess of five percent of the annual budget of the association that has been approved by the board of directors; (g) A statement of the amount of any reserves for repair or replacement and of any portions of those reserves currently designated by the association for any specified projects; (h) The annual financial statement of the association, including the audit report if it has been prepared, for the year immediately preceding the current year; (i) A balance sheet and a revenue and expense statement of the association prepared on an accrual basis, which shall be current to within one hundred twenty days; (j) The current operating budget of the association; (k) A statement of any unsatisfied judgments against the association and the status of any pending suits or legal proceedings in which the association is a plaintiff or defendant; (l) A statement describing any insurance coverage provided for the benefit of unit owners; (m) A statement as to whether there are any alterations or improvements to the unit or to the limited common elements assigned thereto that violate any provision of the declaration; (n) A statement of the number of units, if any, still owned by the declarant, whether the declarant has transferred control of the association to the unit owners, and the date of such transfer; (o) A statement as to whether there are any violations of the health or building codes with respect to the unit, the limited common elements assigned thereto, or any other portion of the condominium; (p) A statement of the remaining term of any leasehold estate affecting the condominium and the provisions governing any extension or renewal thereof; (q) A copy of the declaration, the bylaws, the rules or regulations of the association, the association's current reserve study, if any, and any other information reasonably requested by mortgagees of prospective purchasers of units. Information requested generally by the federal national mortgage association, the federal home loan bank board, the government national mortgage association, the veterans administration and the department of housing and urban development shall be deemed reasonable, provided such information is reasonably available to the association; (r) A statement, as required by RCW 64.35.210, as to whether the units or common elements of the condominium are covered by a qualified warranty, and a history of claims under any such warranty; and (s) If the association does not have a reserve study that has been prepared in accordance with RCW 64.34.380 and 64.34.382 or its governing documents, the following disclosure:
"This association does not have a current reserve study. The lack of a current reserve study poses certain risks to you, the purchaser. Insufficient reserves may, under some circumstances, require you to pay on demand as a special assessment your share of common expenses for the cost of major maintenance, repair, or replacement of a common element." (2) The association, within ten days after a request by a unit owner, and subject to payment of any fee imposed pursuant to RCW 64.34.304(1)(l), shall furnish a resale certificate signed by an officer or authorized agent of the association and containing the information necessary to enable the unit owner to comply with this section. For the purposes of this chapter, a reasonable charge for the preparation of a resale certificate may not exceed one hundred fifty dollars. The association may charge a unit owner a nominal fee for updating a resale certificate within six months of the unit owner's request. The unit owner shall also sign the certificate but the unit owner is not liable to the purchaser for any erroneous information provided by the association and included in the certificate unless and to the extent the unit owner had actual knowledge thereof. (3) A purchaser is not liable for any unpaid assessment or fee against the unit as of the date of the certificate greater than the amount set forth in the certificate prepared by the association unless and to the extent such purchaser had actual knowledge thereof. A unit owner is not liable to a purchaser for the failure or delay of the association to provide the certificate in a timely manner, but the purchaser's contract is voidable by the purchaser until the certificate has been provided and for five days thereafter or until conveyance, whichever occurs first.
Saturday, August 15, 2009
What Real Estate Agents Are Saying About The Housing Market
Great article and the picture above should displace the REMAX LADIES! I have other agents but I can't post for fear I would scare my clients!
Click here for what those crazy muts are saying about the housing market.
Home Price Declines Continue to Abate
New York, July 28, 2009 – Data through May 2009, released today by Standard & Poor’s for its S&P/Case-Shiller1 Home Price Indices, the leading measure of U.S. home prices, show that, although still negative, the annual rate of decline of the 10-City and 20-City Composites improved for the fourth consecutive month in 2009.
The entire report can be read here.
The entire report can be read here.
Monday, July 20, 2009
GLEN ACRES CONDOMINIUMS SEATTLE
According to several clients I have in this particular complex, it is out of control. The reason being; the association is spending like drunken sailors. Not unusual for many homeowners associations but very detrimental to the value of their unit. Whats to keep things in check? Well possibly these
Revised Codes of Washington (RCW).
RCW 64.34.384
Reserve account — Withdrawals.
An association may withdraw funds from its reserve account to pay for unforeseen or unbudgeted costs. The board of directors shall record any such withdrawal in the minute books of the association, cause notice of any such withdrawal to be hand delivered or sent prepaid by first-class United States mail to the mailing address of each unit or to any other mailing address designated in writing by the unit owner, and adopt a repayment schedule not to exceed twenty-four months unless it determines that repayment within twenty-four months would impose an unreasonable burden on the unit owners.
Also, keep in mind the following section:
RCW 64.34.455
Effect of violations on rights of action — Attorney's fees.
If a declarant or any other person subject to this chapter fails to comply with any provision hereof or any provision of the declaration or bylaws, any person or class of persons adversely affected by the failure to comply has a claim for appropriate relief. The court, in an appropriate case, may award reasonable attorney's fees to the prevailing party.
UPDATE:
It would appear that there is now a pending lawsuit against Glen Acres. The recording number is 2009-0813001172
Revised Codes of Washington (RCW).
RCW 64.34.384
Reserve account — Withdrawals.
An association may withdraw funds from its reserve account to pay for unforeseen or unbudgeted costs. The board of directors shall record any such withdrawal in the minute books of the association, cause notice of any such withdrawal to be hand delivered or sent prepaid by first-class United States mail to the mailing address of each unit or to any other mailing address designated in writing by the unit owner, and adopt a repayment schedule not to exceed twenty-four months unless it determines that repayment within twenty-four months would impose an unreasonable burden on the unit owners.
Also, keep in mind the following section:
RCW 64.34.455
Effect of violations on rights of action — Attorney's fees.
If a declarant or any other person subject to this chapter fails to comply with any provision hereof or any provision of the declaration or bylaws, any person or class of persons adversely affected by the failure to comply has a claim for appropriate relief. The court, in an appropriate case, may award reasonable attorney's fees to the prevailing party.
UPDATE:
It would appear that there is now a pending lawsuit against Glen Acres. The recording number is 2009-0813001172
Monday, July 13, 2009
Tuesday, June 16, 2009
LOW END HOUSING IS CLOSE TO BOTTOM BUT....
High end is in a different situation.From Bloomberg: ‘Millionaire Homes’ May Lose Value Until 2012
... “Tighter lending standards and the lack of cheap financing for these borrowers continue to be key issues,” the New York- based [JPMorgan Chase & Co. analysts] wrote [in a June 12 report], referring to “jumbo” mortgages. That’s after so-called interest-only and option adjustable-rate loans were a “major driver” of soaring values, they said. ...“Currently, we have national home prices bottoming in 2011,” they said. “However, prices for more expensive homes may not bottom out until 2012, and ultimately result in peak-to- trough declines in excess of 60 percent (compared to 40 percent nationally).” “California is probably worse than other states, but higher-priced homes in general are going to be a problem,” Sim said in a telephone interview today.Most of the low end sales are "one and done" (the seller is a bank), and this will lead to a dearth of move up buyers. This lack of move up buyers, and tight financing will impact demand for the mid-to-high end. Although the percentage of foreclosures will be less in the high end areas than the low priced areas, the foreclosures are still coming (see Alt-A Foreclosures in Sonoma and Foreclosure Resales: Slow in High Priced Areas )However I disagree with the JPMorgan analysts on the relative price declines. Prices increased more in percentage terms in the low priced areas of California (like the Inland Empire and Sacramento) than in the high priced coastal areas. So prices will probably fall further in percentage terms from the peak in the low priced areas. Also, I think the price declines will occur over a longer period in the high priced areas (like the JPMorgan analysts), so the nominal price declines will be less (assuming a little inflation). But those are minor details - I agree there are further substantial price declines ahead.
... “Tighter lending standards and the lack of cheap financing for these borrowers continue to be key issues,” the New York- based [JPMorgan Chase & Co. analysts] wrote [in a June 12 report], referring to “jumbo” mortgages. That’s after so-called interest-only and option adjustable-rate loans were a “major driver” of soaring values, they said. ...“Currently, we have national home prices bottoming in 2011,” they said. “However, prices for more expensive homes may not bottom out until 2012, and ultimately result in peak-to- trough declines in excess of 60 percent (compared to 40 percent nationally).” “California is probably worse than other states, but higher-priced homes in general are going to be a problem,” Sim said in a telephone interview today.Most of the low end sales are "one and done" (the seller is a bank), and this will lead to a dearth of move up buyers. This lack of move up buyers, and tight financing will impact demand for the mid-to-high end. Although the percentage of foreclosures will be less in the high end areas than the low priced areas, the foreclosures are still coming (see Alt-A Foreclosures in Sonoma and Foreclosure Resales: Slow in High Priced Areas )However I disagree with the JPMorgan analysts on the relative price declines. Prices increased more in percentage terms in the low priced areas of California (like the Inland Empire and Sacramento) than in the high priced coastal areas. So prices will probably fall further in percentage terms from the peak in the low priced areas. Also, I think the price declines will occur over a longer period in the high priced areas (like the JPMorgan analysts), so the nominal price declines will be less (assuming a little inflation). But those are minor details - I agree there are further substantial price declines ahead.
Tuesday, April 28, 2009
APRIL HOUSING REPORT
S&P Case-Shiller Feb 10-City Home Price Index -18.8% YYPROVIDED BY Dow Jones & Company, Inc. - 09:00 AM 04/28/2009DOW JONES NEWSWIRESU.S. home prices continued their multiyear slide in February, according to the S&P/Case-Shiller home-price indexes, but they did stop their 16-month streak of record declines.Fifteen of 20 major metropolitan areas posted price declines of more than 10% from a year earlier with the Sun Belt continuing to be hit hardest. Nationally, home prices are at levels similar to the third quarter of 2003."While the declines in residential real estate continued into February, we witnessed some deceleration in the rate of decline in some of the markets," said David M. Blitzer, chairman of S&P's index committee. Still, 10 of the 20 metro areas reported record year-over-year declines.As of February, the 10-city index is down 32% from its mid-2006 peak and the 20-city is down 31%. The two indexes have fallen every month since August 2006, 31 straight.The indexes showed prices in 10 major metropolitan areas fell 19% in February from a year earlier and 2.1% from January. In 20 major metropolitan areas, home prices also dropped 19% from the prior year and 2.2% from January.Again, none of the regions could stave off a decline from January to February, although 16 of the 20 areas saw a smaller decline compared with January. Month- to-month decliners were led by Cleveland, which posted a 5% drop and displaced Phoenix, which saw prices fall 4.5%, from the top spot. Dallas fared best, edging down 0.3%.For the 11th straight month, no region was able to avoid a year-over-year decline, although nine cities posted better annual returns than they did in January. Phoenix and Las Vegas were again the worst performers, with drops of 35% and 32%, respectively. Phoenix is down 51% from its peak in June 2006. Dallas has been the least hurt, down 11% from its June 2007 peak.Compared with a year earlier, Dallas and Denver again had the best relative performance, with annual declines of 4.5% and 5.7%, respectively.The news comes after government data Friday showed new-home sales fell in March, but only mildly, after a surge the month before. More data last week showed that existing-home sales dropped in March and median prices fell 12%, according to the National Association of Realtors.
To read report click here.
To read report click here.
Saturday, April 18, 2009
Irrationality of real estate investors. I can boil it down in simple terms in the matrix below:
In an up market, Buyers are driven by emotion and continue to chase prices higher on the euphoric expectation of profits. In the down market, Buyers become hyper-rational. Perhaps a funnier way to think about it is that when the market is going up, Buyers are Believers. When the market is going down, Buyers are like atheists. Their stance is “Prove it to me.”
On the flip side, in an up market, Sellers are the more rational market participants. When we enter a down market, Sellers are the ones driven by emotion and have a difficult time making decisions that are rational.
In an up market, Buyers are driven by emotion and continue to chase prices higher on the euphoric expectation of profits. In the down market, Buyers become hyper-rational. Perhaps a funnier way to think about it is that when the market is going up, Buyers are Believers. When the market is going down, Buyers are like atheists. Their stance is “Prove it to me.”
On the flip side, in an up market, Sellers are the more rational market participants. When we enter a down market, Sellers are the ones driven by emotion and have a difficult time making decisions that are rational.
Friday, April 17, 2009
EMPLOYMENT PICTURE DARKENS
April 17 (Bloomberg) -- Indiana in March joined seven other U.S. states with a jobless rate of at least 10 percent, and unemployment surged in Oregon, Washington and West Virginia as the worst employment slump in the postwar era rippled through the economy.
Indiana’s jobless rate jumped to 10 percent last month from 9.4 percent in February, the Labor Department reported today in Washington. Michigan, with 12.6 percent, remained the state with the highest unemployment rate, followed by Oregon at 12.1 percent. The rate in California rose to 11.2 percent from 10.6 percent.
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