SEATTLE REAL ESTATE - GLOOM, DOOM OR BOOM ?

BUYER TAX CREDIT EXTENSION

2009-11-17T17:55:00.000-08:00

Here are the provisions for the extended buyer tax credit.

LATEST NEWS ON TAX CREDIT

2009-10-29T03:14:00.001-07:00

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.

$ 8,000 TAX CREDIT FOR BUYERS

2009-09-19T15:00:00.000-07:00

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.

GLEN ACRES CONDOMINIUM LAWSUIT

2009-08-24T08:51:00.000-07:00

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.

SLOW PROGRESS BUT PROGRESS !

2009-08-25T09:59:00.000-07:00

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.

GLEN ACRES CONDOMINIUMS SEATTLE

2009-07-20T12:57:00.000-07:00

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

What Real Estate Agents Are Saying About The Housing Market

2009-08-15T15:32:00.000-07:00

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

2009-08-15T11:08:00.000-07:00

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.

COSTS OF BAILOUT! 25 TRILLION

2009-07-20T13:49:00.000-07:00

GOOD ARTICLE CLICK HERE.

FASCINATING GRAPHIC

2009-07-13T12:32:00.000-07:00

GREEN BAR IS HOUSEHOLD INCOME - CLICK ARROW TO WATCH!

LOW END HOUSING IS CLOSE TO BOTTOM BUT....

2009-06-16T11:20:00.000-07:00

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.

APRIL HOUSING REPORT

2009-04-28T08:18:00.000-07:00

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.

2009-04-18T13:35:00.000-07:00

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.

EMPLOYMENT PICTURE DARKENS

2009-04-17T11:00:00.000-07:00

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.

QUICK UPDATE ON MARKET

2009-04-16T07:12:00.000-07:00

Now is a good time to buy a home for those with long-term plans to live there and a solid job, thanks to a combination of low prices, favorable interest rates and various government incentives.

Anyone thinking of refinancing should do so immediately because the amount of government borrowing will raise rates sooner or later.

It still is a buyers market and the amount of foreclosure's on the market continue to suppress house prices.

THOUGHT THIS WAS INTERESTING

2009-04-09T14:42:00.001-07:00

click the PICTURE for larger image. History is an amazing thing when you look back on it. Similarities between past and present can be fascinating.

BAILOUT COSTS - WOW!

2009-02-25T16:36:00.001-08:00

Not much to say except we have sold our kids down the river......

The above graphic was from the evil speculator - hat tip

To see that site click here.

THE DOOM BUNKER

2009-03-06T15:28:00.000-08:00

The Colbert ReportMon - Thurs 11:30pm / 10:30c

Doom Bunker - Jack Jacobs and Stephen Moore

Colbert Report Full Episodes
Political Humor

Rap Battle
Joke of the Day

REAL ESTATE WARNINGS FROM 2003

2009-02-26T02:45:00.000-08:00

The problems were known but ignored. We certainly have the best government money can buy.

Back to GREENUP AND ASSOCIATES home page.

INTEREST RATES AND BAILOUTS

2009-02-10T14:02:00.000-08:00

Over the last few years I have made reference to the fact that runaway government spending eventually causes interest rates to rise. We are fast approaching that time when the bond market says enough! This article from Bloomberg spells out this exact scenario. Read.

So, by trying to save housing they may end up exacerbating the problem through higher interest rates. Time will tell but I have the belief that throwing money at the housing problem is foolish and will result in epic failure.

THE SPEECH I WOULD LOVE TO HEAR

2009-02-09T17:07:00.000-08:00

My Fellow Americans,

Although during my inaugural address, I affirmed we were a nation of many faiths - - including "non-belivers", allow me to read from Ecclesiastes 3:1-8:

To everything there is a season,
a time for every purpose under the sun.
A time to be born and a time to die;
a time to plant and a time to pluck up that which is planted;
a time to kill and a time to heal ...
a time to weep and a time to laugh;
a time to mourn and a time to dance ...
a time to embrace and a time to refrain from embracing;
a time to lose and a time to seek;
a time to rend and a time to sew;
a time to keep silent and a time to speak;
a time to love and a time to hate;
a time for war and a time for peace.

The past three decades have been witness to an American which has seduced itself into utter fantasy - - - into a world where people believe they should be multi-millionaires in their twenties, everyone should own a large house, and no one should have any meaningful restrictions on how much they eat, spend, or consume.

The party is over. And as much as we'd all like it to come back, it's going to be over for a very long time. This is a time where we, as a nation, must act like adults and face what is before us. Our banking system is bankrupt. Our nation has financial obligations it can never fully honor. And our economy is in shambles.

What made America great is not gone, however. We have abundant natural resources; a world-class system of higher-education; a diverse, vibrant population eager to build a better life for themselves and their families; and a government and legal system which is, on the whole, free, strong, and worthy of the nation's trust.

We, as a nation, must understand there are tough times ahead, and there is no easy fix. Over the coming months, I will be working with Congress to implement The Reality and Reconstruction Act, which will, among other things:

Phase out our unteneable obligations to Medicare and Social Security, effectively eliminating these agencies within ten years;

Seek civil and criminal prosecution, including confiscatory asset seizure, against any senior personnel in the financial, lending, or investment banking industry which has profited unfairly from the financial bubble over the past decade;
Shutter any financial institution unable to support itself as an independent enterprise;
Implement a flat tax of 25% on all income, with a contemporaneous dilution of the Internal Revenue Service;
Position our entire recovery strategy to be global-based, as opposed to US-based, striving to keep trade barriers as low or non-existent as possible
The road to recovery will be a long and hard one, but with these bold steps, we will ultimately prevail. These are hard choices, but the consequences of not making these choices now will be far more severe in just a few years. I thank you for your support, and I wish you, your family, and our nation strength, wisdom, and courage. Good night.

SLOPE OF HOPE

Won't happen but one can dream.

STIMULUS BILL: AKA PORKULUS

2009-02-08T16:54:00.000-08:00

CLICK TO ENLARGE

The net result will be higher interest rates. The U.S. is maxing out it's line of credit.

HOUSING TAX CREDIT

2009-02-07T15:35:00.000-08:00

The Senate has apparently kept the $15,000 homebuyer tax credit in the stimulus package. The tax credit sponsors, Senators Johnny Isakson and Joe Lieberman, estimated the cost would be $18.5 billion. Several analysts (like Dean Baker) made fun of this estimate, and the new is estimate is a cost of $35.5 billion. But this post isn't about the poor math skills of Senators ...First the details (as far as I can tell):

The tax credit is 10% of the purchase price up to $15,000.
The tax credit is for one year (from date of enactment).
The credit is available for both new and existing home purchases.
This is for primary residences only, and the home must be owner occupied for two years after purchase.
There is no income cap (the $7,500 tax credit had an income cap of $150,000 per year).
Unlike the $7,500 tax credit, the new credit does not have to be repaid over time.
The credit is limited each year to the amount of taxes paid in any one year (with the $7,500 tax credit, buyers received the entire credit and a refund if the $7,500 was greater than taxes for the year)
Buyers can split the $15,000 into two separate tax credits to be taken in successive years.

The rest of this comprehensive article is at Calculated Risk Blog. One of the finest sites on real estate I know of!

OUR GOVERNMENT IS INSANE!

2009-01-30T11:14:00.000-08:00

Politicians Want to Use Tax Dollars to Crush Newer-Model Trucks and SUVs SEMA Warns Lawmakers This Boondoggle Will Cost American Jobs

SEMA is opposing an effort by some Washington lawmakers to include a national car crushing program in the upcoming economic stimulus package. Vehicles targeted for the scrap pile will likely include Chevy Blazers, Silverados, S-10s and Tahoes; Dodge Dakotas and Rams; Ford Explorers and F-Series; Jeep Cherokees and Wranglers; and any other SUV or truck that obtains less than 18 mpg.For the rest of the article click here.

Guess our Government is too stupid to realize we are broke.I guess when no one is employed the people will wake up. On the current course this will be soon....

SEATTLE REAL ESTATE FORECAST

2009-01-19T19:14:00.000-08:00

Some of our finest minds were at work crafting our 2009 real estate forecast . To read our report click here.