Wednesday, September 24, 2008

What’s New in Green Homes

Did you know?
As the interest in all things “green” increases, homeowners are constantly on the lookout for the latest in high-efficiency, eco-friendly, and natural ways to improve their homes.

High Efficiency
You’ve probably heard that compact fluorescent light bulbs last longer and use less energy than traditional bulbs. Other innovations will save you money and help the environment as well.

Water-conserving toilets can save you up to 50 % of your annual water bill, but they only cost about $300, which is comparable to other quality commodes.

Induction cooktops direct heat precisely at pots and pans, eliminating the wasted energy diffused by heated ranges.

UV-blocking windows keep hot air out of the house, thus cutting back on the need for air conditioning.

Eco-Friendly Materials
Copper roofs not only last longer—100 years versus traditional 30-year roofs—but no materials are wasted because unused portions can be recycled.

Reclaimed wood can be used for countertops, flooring, and furniture. Fast-growing plants like bamboo replace old, difficult to recover trees.

Likewise, timber framing not only creates less waste at the site than traditional two-by-four building, but harvesting and prefabricating it is far less messy than old wood products.

Using Natural Resources
From solar panels that provide energy to keep the (compact fluorescent) lights on to rainwater buckets that capture downpours to water gardens to geothermal heating and cooling systems that work with the earth as a heat exchanger, homeowners are finding alternate resources to power and maintain their homes.

Pollution-free Supplies
Nontoxic paint and formaldehyde-free insulation can help keep the air in your home, as well as that outside it, clean and safe.

Chemical-free lighting from LEDs (light emitting diodes) contain no mercury or ozone-depleting gasses. They also use 80% less energy than traditional bulbs and last up to 20 years.

Friday, September 19, 2008

Lower interest rates = more buying power

Everyone knows that lower interest rates create better opportunities for home buyers. Here is one example: the savings realized by a 1/2% lower interest rate equates to approximately $20,000 more in buying power on a $400,000 loan. Today's lower rates coupled with our housing market where homes are currently “on sale” creates an amazing opportunity for home buyers. If you are in the market to buy or sell, please call or email me to answer your questions and get started!

Monday, September 15, 2008

Fannie Mae & Freddie Mac Update

The recent announcement by the U.S. Treasury Department that places Fannie Mae and Freddie Mac under conservatorship marks a significant turning point in the mortgage credit crisis and housing market recovery.

Fannie Mae and Freddie Mac, which are involved in more than half of all real estate financing in the U.S., have suffered irreparable damage from the fall out over subprime loans and high default rates on mortgages. The U.S. Government recognizes that Fannie Mae and Freddie Mac are crucial to making fair and affordable mortgage loans available to consumers and that their mission must not be interrupted.

By placing Fannie Mae and Freddie Mac under conservatorship, the government will take control by infusing much needed capital into the mortgage market. Following the Treasury’s actions, the market immediately responded positively with improved interest rates which are expected to stimulate home sales.

One of the biggest problems facing the housing market in recent times has been the availability of financing. The Treasury Department’s move makes financing more certain and adds significantly to the advantageous opportunities that currently exist for homebuyers.

If you would like more information on this subject, please contact me and I will put you in touch with a trusted loan specialist who will answer all of your questions.

Wednesday, September 10, 2008

Snohomish County Statistics - August

Current Residential & Condo listings - 7,360 (up 7.59% from last year)
New listings taken this month - 1,800
Pending sales this month - 929 (down 19.29% from last year)
Percent of listings that sold this month - 12.62%
Median closed sales price - August ‘07 $352,475
Median closed sales price - August ‘08 $320,000
Rate of appreciation = -9.21%

~ Courtesy of NWMLS

King County Statistics - August

Current Residential & Condo listings - 15,875 (up 18.34% from last year)
New listings taken this month - 4,182
Pending sales this month - 2,313 (down 22.56% from last year)
Percent of listings that sold this month - 14.57%
Median closed sales price - August ‘07 $415,000
Median closed sales price - August ‘08 $388,350
Rate of appreciation = -6.42%

~ Courtesy of NWMLS

Eastside Statistics - August

Current Residential & Condo listings - 5,696 (up 31.30% from last year)
New listings taken this month - 1,359
Pending sales this month - 698 (down 26.68% from last year)
Percent of listings that sold this month - 12.25%
Median closed sales price - August ‘07 $524,760
Median closed sales price - August ‘08 $518,000
Rate of appreciation = -1.29%

~ Courtesy of NWMLS

Housing Inventory Leveling Off in Western Washington Despite Slowdown in Sales

Inventory showed signs of leveling off around Western Washington, with pending sales comparable to totals during the past four months, according to the latest report from Northwest Multiple Listing Service (NWMLS).

Brokers and lenders also suggest the September 7 announcement by the Treasury Department to place Fannie Mae and Freddie Mac under federal control could ease the U.S. mortgage market crisis and help lower mortgage costs.

NWMLS members added 11,415 new listings of single family homes and condominiums to inventory last month – the fewest number since December 2007.

With the current inventory and pace of sales, there is an estimated 7.4-month supply in the four-county Puget Sound region. Nationally, there is an 11.2-month supply. 6 months is considered a balanced market between buyers and sellers.

In King County, the median price for single family homes and condos that sold and closed during August was $388,350, about 6.4% less than a year ago when the median price was $415,000.

For single family homes (excluding condos) the median price for last month’s completed sales was $314,000, about 10% less than a year ago when the median price was $349,900. Condo prices are down about 4.8% from a year ago, dipping from $260,000 to $247,500.

“I cannot stress enough what an amazing opportunity exists right now for move-up buyers,” said J. Lennox Scott, Chairman and CEO of John L. Scott Real Estate. “The price gap between the more affordable price ranges and higher price ranges has narrowed which means these buyers can afford to “price jump” into a new home at a premium value,” he added.

NWMLS director Dick Beeson agreed low interest rates and abundant selection makes now a very good time to buy, but acknowledged the new environment for borrowing is hindering some would-be borrowers. There is pent-up demand, he stated, but said, “Buyers are stymied by the lending world’s inability to get their collective heads around making loans instead of running scared to the nearest disapproval letter.”

Asked about the potential impact of the Boeing strike, Beeson said it could have a ripple effect long-term, but does not expect the market to change “too dramatically” for now.

One local lender expressed optimism about the federal takeover of Fannie Mae and Freddie Mac. “The announcement by the Treasury Department to take control of the GSEs marks a significant turning point in the credit crisis, said Erik Hand, president of Response Mortgage Services (John L. Scott’s in-house lender). “Although some are already pointing to this action having the potential to cost the U.S. taxpayer billions, I feel the opposite is true,” he commented, adding, “To sit back and watch the GSEs flounder would prolong the credit crisis, placing further pressure on housing, resulting in increased foreclosures, and ultimately damaging the economy much more than what a takeover of the GSEs will cost.”

National analysts anticipate improving markets around the country.

Richard F. Gaylord, president of the National Association of REALTORS® (NAR) said the up-and-down pattern may break soon. “We hope the new tools in the hands of home buyers from the recently enacted housing stimulus package will spark a sustained sales uptrend in the months ahead,” he said. “Buyers who’ve been on the sidelines should take a closer look at what’s available to them now in terms of financing and incentives.”

Lawrence Yun, NAR chief economist, said home prices in some regions could soon increase. “Sales have picked up significantly in several Florida and California markets. Home prices generally follow sales trends after a few months of lag time,” he said. “Still, inventory remains high in many parts of the country and will require time to fully absorb. We expect more balanced conditions in 2009 and will eventually return to normal long-term appreciation patterns.”

~ Courtesy of NWMLS

Tuesday, September 9, 2008

Many will profit from the Fannie Mae & Freddie Mac troubles - will you?

Mortgages are in the news again...but this time, the news is good! Especially for people looking to buy or refinance a home, as interest rates have dropped to the lowest levels seen since April.
You've probably heard that Fannie Mae and Freddie Mac were taken over or "bailed out" by the U.S. Government over the weekend. The announcement came as the government felt that both of these institutions were potentially unable to meet their obligations. These agencies must pay off maturing bonds every month, and they do so by selling new bonds. But during the last twelve months, investor appetite to purchase new mortgage-backed security bonds has deteriorated. As such, it has become more difficult for Fannie and Freddie to replenish capital to fund more loans. If both Fannie and Freddie became insolvent, the housing market as well as the mortgage market would come under further pressure.
With the Treasury stepping in to provide a "backstop" for the mortgage giants, investors now have confidence to purchase mortgage bonds. The greater interest has helped lower interest rates dramatically.

Call or email me today so we can discuss what the news means to you and how you can benefit.

Sunday, September 7, 2008

NEW m.JohnLScott.com Mobile Website!

John L. Scott takes pride in always pushing forward with new technology to benefit our clients and the general public. Now you can search for nearby properties and look up comprehensive listing information directly from your cell phone by going to http://m.johnlscott.com/.

Visit the John L. Scott mobile website at http://m.johnlscott.com from your web-enabled smart phone. Clients and prospective clients alike can type in a John L. Scott property's 5-digit code, MLS number, or address and get comprehensive information about a listing anywhere, anytime. In addition, John L. Scott listings feature the listing agent/broker's name, email address, and phone number. Requesting property information is as simple as clicking on the email link to open a message or the phone number to automatically dial the contact number.

Special Features:

* Search all listings in Washington, Oregon, and Idaho.
* Search by MLS number, John L. Scott property number (5-digit code), or address.
* View all results nearest to farthest within a 1-mile radius of the address search.
*John L. Scott listings prominently feature the listing agent/broker's contact information.

*** Check with your cell phone manufacturer to see if this feature is available.

I hope you find this new tool as exciting and useful as I do. John L. Scott is the only real estate company in Washington to offer this method of search. It’s the latest in many pioneering innovations we’ve introduced and there are more on the way.

Please let me know if you have any questions or comments. Remember, I’m ready to assist you with all of your real estate needs.

Is this A Good Time to Buy a Home in Washington State? For Many It Certainly Is!

NWREporter September 2008
by Scott Jarvis, Washington State Director of the Department of Financial Institutions

"The oldest and strongest emotion in mankind is fear." - H.P. Lovecraft

If you watch only national news of financial turmoil and declining housing prices you may fear now is not the time to buy a home. While that may be the case in other states, it’s not an accurate picture of the market in Washington. Washington State has a unique set of positive economic variables that sets us apart from much of the country.

As the financial regulator responsible for overseeing the financial safety and soundness of our state-chartered banks and credit unions, the Department of Financial Institutions stays in close touch with local real estate market conditions. This message is prompted by that "local knowledge" and a concern that the true nature of the Washington State real estate market has been lost among the national headlines.

Is it a great time for everyone in Washington to buy a home? No. However, we can truthfully say this may be a great time for you to buy. There may be at this time an historic opportunity to buy in Washington State. There are many reasons for optimism. Long-term mortgage rates are in historically low ranges and, contrary to what you may think, our state’s banks, credit unions, consumer loan companies and mortgage brokers have money available for buyers with reasonably good credit.

Also, Congress acted to expand a number of home loan programs. Washington’s financial institutions have a strong presence in your communities and have excellent financing options for home buyers, including great programs for first time homebuyers. With the addition of expanded FHA guidelines, they can meet a variety of different borrower needs.

Additionally, there is a good selection of new and existing homes available on the market right now. Reports of plummeting home values are almost always coming from markets far from Washington State. Here, home values are generally stable, experiencing only modest fluctuations up or down over the past year.

Perhaps the most important factor to consider is the reality that the Washington State economy continues to outperform the national economy.

If you want to buy a home, expect to live in the home for at least three years. If the only reason you are hesitating to buy the home you want in Washington State is an expectation that you are likely to get the same home for considerably less money if you wait a few months, you may want to reconsider. Very few of us are lucky enough to pick the bottom of a stock market downturn — and that also holds true for the housing market.

For many buyers looking for that perfect home NOW may be the time to buy and be comfortable in your new home. Depending on your personal financial situation, this could be an opportune time to contact a Washington State REALTOR®, or home builder to help you find that perfect home and a Washington State financial institution or mortgage broker to assist with your financing.

There are many resources available to assist you with your decision. The Washington State Department of Financial institutions, the Washington State Housing Finance Commission, our state’s financial institutions, mortgage brokers, REALTORS®, and your local home builders association are among the organizations providing valuable information to assist you with your home purchase decision.

It’s a great time to buy a home in Washington State!

###

Scott Jarvis was appointed the Director of the Department of Financial Institutions by Governor Chris Gregoire in March, 2005. He has over 30 years of experience as a financial regulator in Washington State.

About the AgencyThe Washington State Department of Financial Institutions (DFI) provides regulatory oversight for our state’s financial service providers.

DFI was created by combining pre-existing units from two state agencies in October, 1993. The agency's beginnings date back to the early 1900s, with the organization of the Division of Banking on June 12, 1907, and the Division of Securities in the 1930s. (DFI was created by Ch. 43.320 RCW)

DFI is self-supporting, in that none of its operating revenues come from the state's general tax funds. Its operating revenues are paid by the organizations and individuals it regulates.

Friday, September 5, 2008

What my clients have to say...

You can link to my website by clicking on ErikEide

“Your expert approach made a formerly difficult task manageable and painless. We ended up with a bigger house than we dreamed we could afford in the exact location that we wanted thanks to you. We were very impressed with the overall aggressive and competent team that you have assembled. You are one Realtor that we can recommend with complete confidence.”

~ Brian & Iza Terry

“Carolyn and I would like to thank you for a job well done in selling our Kirkland condominium. You did a great job overcoming the adversities and challenges the buyer presented during the sale. The service from John L. Scott was outstanding starting with your presentation and following through to the closing of the sale. I have had four experiences now selling real estate, and this was by far the best, and you get the credit for that.”

~ Jack Smith

“I was worried when looking that I would not be able to find something I liked at the price range I could afford to pay. I was amazed that once I explained to you what I wanted, where I wanted to live, and how much I could afford, the very next place you showed me was perfect. I felt you understood what I was looking for and acted quickly to find it for me. I think that because you were so detailed, the closing and the whole process of buying my first home went smoothly. I had heard many horror stories from people when they bought their homes and was nervous I was going to have one of those terrible experiences. I now tell everyone how wonderful my experience was and that next time they should call you. I have already recommended you and John L. Scott to a friend.”

~ Linda Grindle

“You provided excellent service and follow through. I appreciated the quick response to my questions. One thing I have always appreciated is how well you keep me informed. I know what to expect in terms of your follow through and haven’t been surprised yet during the process. The quality of service is always excellent and your service has been consistent through our 4 transactions in the past 5 years!”

~ John Stephenson

“Thank you very much for all your work with my transaction. You were a pleasure to work with and I will send all my friends to you!”

~ Theresa Thompson

“As this was our 3rd long distance move in 3 years, we knew what was ahead. You were able to keep us on track, and calm, during the process. Your excellent sales and negotiation skills resulted in us selling our home very quickly for full asking price. You gave us excellent advice. Out of the previous 7 Realtors (both buying and selling), you, by far, are the cream of the crop. Fabulous job!”

~ Doug & Ann Keevers

“Erik was great and helped us through some difficult areas of the sale. We would definitely use Erik in the future.”

~ Wayne & Socorro Stoppler

“David and I really appreciated you keeping us informed throughout the process. The other agent called to compliment us on choosing such an excellent real estate agent.”

~ Sandra Franich

“Thanks for everything, Erik. We appreciated your compassion, professionalism, and great communication. You made a tough time for me as pleasant as possible. Please use Peggy and I for a reference at any time.”

~ John Baschen

“We truly appreciate your hard work, attention to detail, and concern for our needs, feelings, etc. You always had time for us and no question was too big or small for you. You really made us feel more relaxed, confident, and comfortable. Thank you for caring so much about our decision regarding the house. You stuck to your commitment to us of honesty!”

~ Jill & Dan Hanken

“You always kept us apprised of any new developments. We really appreciate you getting the home ready to sell. Your approach prior to the listing ensured that our home was in the best possible condition for showing. While we could have done the work that was done, we wouldn’t have done it, and didn’t realize what a difference it would make! Thanks again for everything.”

~ Michael & Elaine Churchill

“You went above and beyond the call of duty. It was great working with you and you have great people skills. You’re great at what you do!”

~ Venus de la Cruz

“I want to take a moment and express our thanks to you in the sale of our home. You are extremely professional and we appreciate that. We both feel that without your expertise in our local market, we would still have our house for sale. Your weekly updates were helpful in determining the right price and where the market expectations should be. This is extremely helpful when you are selling your greatest asset.”

~ Darren & Ginger Spenst

“It was a pleasure working with you while buying our new home and selling our old home. My wife and I were kept informed of activity with our home and other homes in the neighborhood. You were extremely patient with us throughout the entire purchase and sale process. We would definitely recommend you to anyone interested in finding their perfect home or selling their current home.”

~ Ben Martin

“Thank you again for all of your help selling my house. I can't even tell you what a relief it is to have it sold. With all the changes for me in the last year, it's so nice to have one less thing to think about. You were readily available, and kept me in the loop at all times. I'm still a little in shock that it sold and feel very, very lucky.”

~ Carly Steele

“Erik is a genuinely nice guy that is very easy to work with. His follow-up and communication are outstanding. We felt comfortable and in good hands throughout our entire home buying process. Thanks!”

~ Scott Lefeber & Lisa Mandt