Your NW Home reSource Real Estate Blog

The US Treasury is "Locking" In at Present Rates – Are You?

BREAKING NEWS: The Treasury Department has recently announced that they are going to begin selling some of their massive holdings of Mortgage Backed Securities, to the tune of $10 Billion per month. They are saying that the reason is due to the stabilizing economy and market conditions being ripe for selling, and is not related to the current US "debt limit" issues. Maybe.

The Treasury acquired $142B in debt during the financial crisis – helping lower mortgage rates at the time. The news of this unloading process has immediately pushed Bond prices significantly lower, as Traders try to get their own positions sold. It's like musical chairs... no one wants to be the last one standing with a portfolio full of Mortgage Backed Securities.

With the news out of Japan improving overall, and no new developments from the Middle East, Bonds have been drifting lower in response, as the "safe-haven" trade continues to unwind. Should Stocks regain their footing after a couple of weeks of losses due to the "safe haven" trade to remove risk, we could see a continued move lower in Bonds.

Both of these developments will pressure Bonds – which means pressure on Home Loan rates to continue higher. Remember that as Bond prices go lower, long term mortgage interest rates go higher.

For these reasons, it may be an ideal time for homebuyers to take advantage of the still low home loan rates, and for homeowners to check and see if their debt is structured in the best way possible. Start by contacting your Mortgage Professional today.

Bellevue Schools guide the way for the Eastside becoming a more culturally diverse

Bellevue schools help the Eastside become a cultural crossroad. As I live and work on the eastside I have enjoyed meeting and working with the many diverse ethnicitys that are moving to the area.  A recent article in the Seattle Times quotes Bellevue's demographer Gwen Rousseau.

"The quality of the schools is a draw for Eastside neighborhoods, Rousseau said. The June 2010, U.S. News & World Report ranked Bellevue School District's International School 10th in the nation and Newport and Bellevue high schools were within the top 100. And Newsweek ranked five schools in Bellevue within its top 100."

via seattletimes.nwsource.com

With Bellevue's diverse economy that has a focus on technology many Eastside cities like Kirkland, Redmond, Sammamish, Issaquah, Bothell and more are drawing imigration from around the world. It seems that Bellvue is now the more diverse city over Seattle

The 2010 census data show that 40.8 percent of Bellevue's population are minorities, up from 28.2 percent 10 years ago. And every neighborhood in Bellevue has at least 20 percent minority representation.

In contrast:

"Seattle's minority population rose only slightly, from 32 to almost 34 percent during the past 10 years, and some of its neighborhoods — Ballard, Magnolia and Alki among them — have fewer than 20 percent minority residents."

So it would seem that the rich get richer, however in Bellevue's case it is rich in diversity.  The point is if you are looking to ensure that your family has the best advantages in the public school system it would seem that Bellevue and other Eastside school districts are leading the way.

Housing Market Statistics for February 2011

Home Sales Report Summery Home Sales report for East King County Cities of Bellevue, Redmond, Kirkland, Issaquah & Sammamish. In February of 2011 closed sales were pretty flat in King County, Washington  down 0.9% from February of 2010(1,244 vs. 1,255).  The Eastside faired better in that closed sales were up 6.4%(435 v 409)  The seasonal slowdown is upon us as pending sales are down 6.91% in King County but were fairly even on the Eastside.  Inventories continue there downward trend, they were down 13.74% on the Eastside and down 9.78% in King County from Febuary of 2010. See the raw numbers from the Northwest Multiple Listing Service  All in all these are good trends for a balanced market.  Take a look at the in depth numbers for the Eastside Below:


View Eastside in a larger map

Here is a breakdown of real estate homes sales in Seattle Eastside Communities of Bellevue, Kirkland, Redmond, Issaquah and Sammamish, Washington for the week broken down by neighborhood. Just click on the link to your neighborhood for the complete breakdown of the homes that are on The chart below breaks down Seattle Washington's Greater Eastside Real Estate homes sales by City, for the week ending 03/16/2011. 

City	# of Active Listings
Homes For Sale in Bellevue, Washington	485
Homes For Sale in Issaquah, Washington	247
Homes For Sale in Kirkland, Washington	375
Homes For Sale in Redmond, Washington	414
Homes For Sale in Sammamish, Washington	331

 

To find out what your home is worth or If you are interested in selling your home for top dollar in the quickest amount of time, please contact me anytime at 206-818-8816 or Click here to send me an e-mail requesting further information.

Download The Big 5 Eastside Cities Market Statistics Now:

Homeowners can save by "Going GREEN"

“Going Green” isn’t just good for the planet’s ecosystem; it’s healthier for you and your family, and may even benefit your finances too.

What It Means to Go Green?

Many people are now pursuing livable communities and an environmentally responsible lifestyle that is mindful of the following goals:

• Maximizing energy efficiency and minimizing the use of polluting fossil fuels • Conserving the limited water supply
• Preserving the earth’s valuable natural resources and limiting waste production
• Improving air and water quality by avoiding harmful chemicals and pesticides.

Here are some easy and inexpensive ways you can make a positive impact:

If you are willing to give them a try, these thrifty habits will reduce day-to-day water and energy consumption and lower your utility bills:

• Turn off the water in the sink or shower while you brush your teeth, scrub or shave, then turn it on again to rinse.
• Lower the temperature setting on your water heater to 120º and wash only full loads of dishes or clothes.
• Make a sweep through each room before bed and turn off all electrical devices, including computers and printers. Unplugging appliances or using power strips will avoid “phantom” energy drain, as most electronics draw a small amount of power even when they are turned off.
• Set your thermostat at 70º or below in the winter months; your heating costs could rise 4 to 6% for every degree above 70.

Grow Savings in Your Own Organic Garden

If you have a little bit of land and a green thumb, you could slash your grocery bill by as much as $800 a year. Using natural fertilizers made from composted plant and animal materials avoids the  environmental and health concerns associated with synthetic products full of chemicals and pesticides.

Housing Market Statistics for January 2011

Home Sales Report Summery Home Sales report for East King County Cities of Bellevue, Redmond, Kirkland, Issaquah & Sammamish. In January of 2011 sales are up  in King County, Washington  up 3% from January of 2010(1,259 vs. 1,222).  The Eastside faired much better in that closed sales were up 14.8%(435 v 379)  There looks like there is some slack coming to the market as pending sales are down 3.18% on the Eastside; however all of King County showed a nominal drop in pendings down 4.98% mostly in part to Seattle and SE King County.  Inventories continue there downward trend, they were down 9.89% on the Eastside and down 3.61% in King County from January of 2010. See the raw numbers from the Northwest Multiple Listing Service  All in all these are good trends for a balanced market.  Take a look at the in depth numbers for the Eastside Below:


View Eastside in a larger map

Here is a breakdown of real estate homes sales in Seattle Eastside Communities of Bellevue, Kirkland, Redmond, Issaquah and Sammamish, Washington for the week broken down by neighborhood. Just click on the link to your neighborhood for the complete breakdown of the homes that are on The chart below breaks down Seattle Washington's Greater Eastside Real Estate homes sales by City, for the week ending 02/17/2011. 

City	# of Active Listings
Homes For Sale in Bellevue, Washington	500
Homes For Sale in Issaquah, Washington	247
Homes For Sale in Kirkland, Washington	371
Homes For Sale in Redmond, Washington	396
Homes For Sale in Sammamish, Washington	291

 

To find out what your home is worth or If you are interested in selling your home for top dollar in the quickest amount of time, please contact me anytime at 206-818-8816 or Click here to send me an e-mail requesting further information.

Download The Big 5 Eastside Cities Market Statistics Now:

What Do Employment & Global Unrest Have To Do With Rates?

There’s a lot going on in the news that is impacting consumers and mortgage interest rates each day. What do Employment and Global Unrest have to do with home loan rates and real estate?

To understand this, we need to understand the Federal Reserve’s stated goals for their current round of Quantitative Easing (“QE2”). The three goals are to (1) boost Stock prices, (2) create inflation, and (3) lower the unemployment rate. The Fed is doing this by injecting $600 Billion into the economy. In recent weeks, we’ve seen evidence of all three goals:

1. Stocks have been improving.

2. The unemployment rate has declined. Just recently, the Labor Department reported that the Unemployment Rate fell to 9%, and the U6 or "real" rate of unemployment, which includes discouraged workers and those who have accepted part-time employment for economic reasons, fell to its lowest level since April 2009.

3. We've seen an increase in global unrest of late (not just in Egypt), but in other parts of the world as well. This at least partially stems from increasing inflation in commodities and food.

The old saying of “Don't Fight the Fed" still rings true! While these goals are designed to stimulate our economy and keep our recovery moving forward (good) – they are unfriendly to Bonds, which means they are unfriendly to home loan rates too (bad).

So what does all this mean? It means if the Fed is successful in its goals boosting Stocks, lowering unemployment, and creating inflation, the negative trend in Bonds will likely continue and push home loan rates upward in the process.

For these reasons, it may be an ideal time for homebuyers to take advantage of the still low home loan rates, and for homeowners to check and see if their debt is structured in the best way possible. Start by contacting your Mortgage Professional today.

 

Do I owe income tax if I short sale my home?

Many home sellers facing the prospect of foreclosure, that need to perform a short sale, want to know if they will owe income tax on the discharge of debt on their principal residence. This answer can differ from case to case, however it would seem that according to The Mortgage Forgiveness Debt Relief Act and Debt Cancellation it would allow the exclusion of income realized as a result of modification or foreclosure.

The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

I always recommend that each homeowner contact a CPA, Tax or Real Estate Attorney to see how this applies to each unique tax payer.

Great CPA in the Bellevue Area

If you're looking for an exceptional CPA in the Bellevue area I strongly recommend Michael L. Markert, CPA

Michael L. Markert, CPA provides personalized services and guidance in a wide range of financial and business needs including tax management, CFO Services, accounting, computer consulting, and financial planning related areas. My client base consists of privately held businesses and their owners, independent professionals, trusts and individuals. Among the industries served are construction and contractors, manufacturing, not-for-profit, real estate, retail, software development and wholesale/distribution.

Mike Markert, CPA

Phone: 425-445-2546

mike@markertcpa.com

Home Sweet Tax Shelter

If you responded to generous home-related tax incentives offered in 2009 and 2010, make sure you file the necessary forms and supporting documentation to collect your credit.

Homebuyer Tax Credit: First-time buyers, or others who have not owned a home in the previous three years, may collect up to $8,000 if they signed a contract by April 30 and closed by September 30, 2010. Move-up buyers who have owned their existing home for at least 5 years and purchased another property after November 6, 2009 can receive up to $6,500. In both cases, eligible homes must be purchased for $800,000 or less and as principal residences (not rental properties).

Energy-Saving Home Improvements: You can receive a credit of 30% of th cost, up to $1,500 max, if you made certain energy-efficient upgrades to your existing primary residence. Eligible improvements may include appliances, water heaters, heating and cooling systems, windows and doors, insulation
and roofing projects, among others.

Tax credits reduce your tax liability dollar for dollar and can really add to
your bottom line.

Are You Ready For TAX SEASON?

Filling out tax forms can be time consuming, but it’s important to approach this critical task head-on. If you procrastinate and rush through the process at the last minute, you may miss potential tax benefits you deserve. And the sooner you file, the sooner you can score a refund!

Leaving Money on the Table?
Weigh the benefit of itemizing your deductions, such as those for interest payments on a home mortgage, property or sales taxes, and charitable donations, against the standard deduction.

Don’t overlook potentially valuable deductions for these common situations:

• If you are supplying housing or financial support for a struggling relative, you may be eligible to claim them as dependent or qualify for a more favorable head-of-household status.
• You can deduct medical bills that exceed 7.5% of your adjusted gross income (AGI); only self-employed individuals who do not qualify for a workplace health plan can claim their insurance premiums.
• Certain college expenses up to $4,000 may count as a deduction if your income excludes you from the more generous education tax credits offered for 2010.
• Money spent looking for a job in your current field may also qualify if miscellaneous deductions total more than 2% of your AGI. If the new position is more than 50 miles away, moving expenses can also be deducted—even if you don’t itemize.
• If you use a part of your home exclusively for business and can prove it is your principal office space, you may qualify to deduct a portion of your housing expenses.

Sources: 1) Internal Revenue Service 2) The Wall Street Journal, November 12, 2010, Internal Revenue Service