Larry Miller’s Blog

Market update 5.13.10

Larry Miller — Thu, 13 May 2010 15:33:00 GMT

Market Update

The tax credits are gone but the buyers aren't! The tax credits had an impact, there is no question about that. April pending numbers are up 36% from April 2009 which is the highest volume in this area since August 2006, but fresh on the heels of the tax credits is rising consumer confidence in the market.

Interest rates are still low and everybody agrees they are going to go up, but nobody knows when.

We do know when some other things are going up though:

Capital Gains Tax...On January 11, 2011 the 15% current rate will revert back to 20%.

Medicare Tax….Beginning in 2013 the national health care reform legislation that became law in March will impose a 3.8 percent tax on certain investment income.

If you or someone you know is thinking of buying, now is the time. Interest rates and home prices are still down and selection is still up.

If you or someone you know is thinking of selling, the buyers are back in the market!

Contact me with their names and numbers and keep them out of the hands of agents who will not be looking out for their best interest and let me guide them through the process so that they can take full advantage of the opportunities that exist!

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March 2010 Vs March 2009 It's a KNOCKOUT!

Larry Miller — Thu, 29 Apr 2010 16:56:00 GMT

The Charts are in comparing this March against last March and lets just say a picture says a 1,000 words. The market has definitely changed and there is a lot more activity than there was a year ago.

Interest rates are still low but we don't know how long they we remain there and there still are some good deals to be found so if you know of anybody looking to buy or sell, please get their permission for me to contact them so they can take advantage of these new market conditions.

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Foreclosure Properties

Larry Miller — Fri, 16 Apr 2010 17:03:00 GMT

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Free Estate Planning Workshop

Larry Miller — Fri, 29 Jan 2010 17:13:00 GMT

I just wanted to let you know that Estate Attorney David Sitlani, a Preferred Partner of mine, will be holding two Free workshops covering estate planning in Washington State.

Estate planning is a critical step for all of us no matter what age. David will discuss the basics of estate planning including the importance of having a Power-of-Attorney, the difference between a Will and a Trust and what can happen if you haven’t planned for you estate.

He will then address the Federal and Washington State death tax and planning beyond the basics for business owners. The workshops are intended to be free flowing and interactive, so please bring plenty of questions.

They will be held on:

February 3rd from 5-7 pm at the Mosaic Coffeehouse, 4401 2nd Ave NE Seattle, WA 98105

and,

February 10th from 5-7 pm at Thinkspace in Redmond, 8201 164th Ave NE Redmond, Washington 98052.

If you are planning on attending one of these workshops, David would like you to RSVP directly to him at:

drs@sitlanilaw.com

Thank you and have a great weekend!

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Award and Certificate

Larry Miller — Fri, 15 Jan 2010 14:51:00 GMT

I just wanted to let you know a couple things that happened in the last month.

First, I was named a Five Star: Best in Client Satisfaction Real Estate Agent for 2009. Seattle Magazine contracted an independent market research company to administer a survey of over 22,500 recent home buyers and after the survey fewer than 7 percent of all the licensed real estate agents in the Seattle area were selected. This places me as one of the top 100 agents in Seattle (The list was published in the December issue of Seattle Magazine).

Second, I became a Certified Residential Specialist (CRS). The requirements are strenuous and involve years in the business, volume of sales and volume of transaction thresholds. Fewer than 4% of the Realtors in the nation have qualified for the CRS and yet we account for over 24% of all the transactions.

It is not my intention to toot my own horn, rather I believe that both the award and the designation point to my passion to serve my clients to the best of my ability and to strive for excellence at all times.

If you know of anybody who would appreciate this level of service, I would be happy to serve them as well.

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Time to Act

Larry Miller — Tue, 12 Jan 2010 15:53:00 GMT

I just wanted to remind you that if you know of anyone looking to buy or sell or even if they have been thinking about doing something for a while, you need to let them know that there are certain market factors that are creating urgency to act sooner rather than later.

· The US government through Fannie Mae and Freddie Mac has been buying most of the mortgage back securities on the secondary market for some time and that combined with the Federal Reserves policy of keeping the discount rate at 0% has artificially kept interest rates low. At the end of the first quarter of this year the government will no longer be buying these mortgage backed securities and private investor will demand higher rates of return will means the interest rates WILL GO UP.

· The tax credit for the first time homebuyers (up to $8,000) have been extended to the end of April to be under contract, closing by the end of June. They then added a new credit for move up buyers (up to $6,500) that has the same deadlines.

· Our housing inventory of available homes for sale has dropped dramatically over the last year which means buyers will have fewer choices.

All of these factors combine to provide opportunities for both buyers and sellers. For buyers, now is the time to take advantage of these low rates and affordable home prices before they both go up. For sellers, now is the time to put your home on the market while the inventory is low and the buyers will be coming out.

Sales activity has been increasing every month since August and many signs in the economy point towards a recovery so it appears we have passed the bottom and it is time to move.

Please let me know if you know of anybody looking to buy or sell. Time is of the essence.

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Move-up buyers, extended/expanded tax credits boost home sales;

Larry Miller — Thu, 10 Dec 2009 09:02:00 GMT

News from NW Multiple Listing Service

FOR IMMEDIATE RELEASE: December 3, 2009

Move-up buyers, extended/expanded tax credits boost home sales;
Northwest MLS brokers expect momentum to continue in 2010

KIRKLAND, WA, December 3, 2009 ï¿½ Home sales continued to outperform year-ago totals and prices continued to show signs of stabilizing, according to the latest report from Northwest Multiple Listing Service. Brokers credit move-up buyers as one factor for the positive activity.

"This winter will not be 'business as usual' for the housing market," proclaimed the CEO of one brokerage while expressing optimism for 2010.

Pending sales for November tapered off from October's surge during the rush to beat a looming tax credit deadline, but compared to November 2008, home sales jumped more than 31 percent. Members notched 4,888 pending sales (mutual acceptance of an offer) last month, which compares to 3,727 pendings for the same period a year ago.

Pat Grimm, a member of the NWMLS board of directors, said the strength of the first-time buyer market is no surprise. "What has been surprising is the strength in the move-up market," he remarked. First-time buyers led the market recovery, according to Grimm, the designated broker at Windermere RE/Capitol Hill, Inc. "Move-up buyers have definitely picked up the baton," he exclaimed.

Closed sales of single family homes and condominiums (combined) for November outgained year-ago totals by an impressive 76 percent, rising from 2,937 completed transactions to 5,168 closings across the NWMLS service area. Last month's total number of closings (5,168) exceeded the number of pending sales (4,888), a ratio that had not occurred since October 2008.

The median sales price area-wide was down about 7 percent from a year ago, the lowest percentage decline all year. Prices had been off every month this year by double digits until June (down 9.5 percent) and August (down about 8.8 percent), but for past three months the decline has been under 7.5 percent.

Grimm described the market within Seattle as "strong," noting stable prices during much of the year and a brisk pace of activity. "The shift was made away from a buyer's market early this year into a balanced market, and in some areas close to the city core, it's a seller's market," he commented.

Inventory for the MLS map areas encompassing Seattle is down more than 16 percent from a year ago, while pending sales jumped about 33 percent. For single family homes (excluding condos) within the Seattle map areas, inventory declined 20.6 percent from a year ago. The median selling price of $399,995 is 3.6 percent less than twelve months ago.

Inventory area-wide is at its lowest level in nearly two years. At the end of November, brokers reported 36,266 active listings (30,084 single family homes and 6,182 condominiums) across the NWMLS market area. That's down from 43,584 active listings in the system twelve months ago, a drop of nearly 17 percent. Not since January 2008, when brokers represented 34,950 home sellers, has inventory been that low.

"This winter will not be 'business as usual' for the housing market," said Lennox Scott, chairman and CEO of John L. Scott Real Estate. "Thanks to historically low interest rates, adjusted home prices, and the passage of the extended/expanded tax credit, we are getting a running start on the New Year," he added.

(Last month, Congress passed new legislation that extends the first-time home buyer tax credit of up to $8,000 to buyers who purchase by April 30, 2010. The legislation also authorized a tax credit of up to $6,500 for qualified repeat home buyers.)

Holidays can be favorable time to buy, sell
Although seasonal slowdowns are typical for housing activity, industry experts say now can be a good time for both sellers and buyers. Buyers tend to encounter less competition for the most desirable homes. Also, qualified buyers can expect above-normal attention from service providers who are experiencing a slowdown in their business, including lenders, home inspectors, appraisers and title companies. Lenders may even be willing to extend very favorable mortgage terms or forgo some fees as they vie for business.

Agents are able to devote more time to clients and the smaller selection of homes on the market. Sellers can also benefit from showcasing their homes with tasteful holiday decorations, although home stagers caution them to show restraint and not overdo the décor.

Other advantages may be faster closings by lenders who are motivated to add transactions to their 2009 books, and tax deductions.

Northwest Multiple Listing Service, owned by its member brokers, is the largest full-service MLS in the Northwest. Its membership includes more than 24,000 brokers and agents. The organization, based in Kirkland, currently serves 20 counties in western and central Washington. Ferry County is now part of Northwest MLS, becoming the 20th county included in the monthly statistical reports.

Statistical Summary by Counties: Market Activity Summary - November 2009

November 2009 Single Family Homes + Condos	LISTINGS		PENDING SALES	CLOSED SALES
November 2009 Single Family Homes + Condos	New Listings	Total Active	#Pending Sales	# Closings	Average Price	Median Price
King	2571	11474	1984	2025	$415,581	$337,000
Snohomish	1128	5063	787	803	$294,649	$274,950
Pierce	1120	5471	840	802	$247,899	$222,000
Kitsap	328	1719	218	267	$273,771	$239,995
Mason	72	678	61	55	$187,179	$175,000
Skagit	146	1228	88	121	$236,525	$207,500
Grays Harbor	149	758	75	73	$159,859	$139,000
Lewis	84	742	43	36	$176,312	$162,400
Cowlitz	101	663	50	84	$173,687	$161,000
Grant	70	664	39	63	$174,257	$152,000
Thurston	328	1668	222	277	$251,349	$225,000
San Juan	24	441	10	15	$470,660	$377,000
Island	143	1036	83	89	$285,988	$240,000
Kittitas	65	511	32	37	$256,025	$230,000
Jefferson	33	532	13	27	$333,793	$271,000
Okanogan	21	352	23	15	$181,827	$150,000
Whatcom	228	1687	195	235	$290,344	$240,250
Clark	48	285	42	59	$259,011	$225,000
Pacific	34	362	19	19	$141,688	$139,000
Ferry	1	49	1	2	$185,825	$185,825
Others	107	883	63	64	$206,682	$187,450
MLS TOTAL	6,801	36,266	4,888	5,168	$320,379	$265,000

4-County Puget Sound Region Pending Sales (SFH + Condo combined)
(Totals include King, Snohomish, Pierce & Kitsap counties)

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2000	3706	4778	5903	5116	5490	5079	4928	5432	4569	4675	4126	3166
2001	4334	5056	5722	5399	5631	5568	5434	5544	4040	4387	4155	3430
2002	4293	4735	5569	5436	6131	5212	5525	6215	5394	5777	4966	4153
2003	4746	5290	6889	6837	7148	7202	7673	7135	6698	6552	4904	4454
2004	4521	6284	8073	7910	7888	8186	7583	7464	6984	6761	6228	5195
2005	5426	6833	8801	8420	8610	8896	8207	8784	7561	7157	6188	4837
2006	5275	6032	8174	7651	8411	8094	7121	7692	6216	6403	5292	4346
2007	4869	6239	7192	6974	7311	6876	6371	5580	4153	4447	3896	2975
2008	3291	4167	4520	4624	4526	4765	4580	4584	4445	3346	2841	2432
2009	3250	3407	4262	5372	5498	5963	5551	5764	5825	5702	3829

__________
Copyright © 2009
ALL RIGHTS RESERVED
This material may not be published, broadcast, rewritten or redistributed without prior permission.

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New and Expanded Homebuyers Tax Credit

Larry Miller — Sat, 07 Nov 2009 11:29:00 GMT

Source:

Great News For Washington Homebuyers!

Update as of 11/06/09

President Obama signed the Worker, Homeownership, and Business Assistance Act of 2009 into law today. The legislation greatly expands the First Time Homebuyer Tax Credit by making more first time homebuyers eligible for the credit and now includes homebuyers that are not first time homebuyers.

First Time Homebuyers

The current law is extended until April 30, 2010. Buyers have until that date to have a signed purchase agreement. There is an additional 60 day grace period to complete the financing. More first time homebuyers are eligible because the new law raises the annual income limits from $75,000 to $125,000 for singles and from $150,000 to $225,000 for married couples.

Current Home Owners

Over 60 percent of current home owners will be eligible for a tax credit of up to $6,500 if they purchase a home by April 30, 2010. These homebuyers must have lived in their home for five consecutive years over the previous eight years to qualify. Qualified homebuyers can get the credit if they purchase a home for $800,000 or less as their primary residence between November 7, 2009 and April 30, 2010. The income limits are the same as the First Time Homebuyer listed above.

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Senate Passes Homebuyer Tax Credit

Larry Miller — Thu, 05 Nov 2009 09:01:00 GMT

Source:

Senate passes Homebuyer Tax Credit

November 4, 2009

Today the US Senate voted 98-0 to pass the Homebuyer Tax Credit [within the Unemployment Bill]. It now goes to the House. We expect the House to pass the bill as well and it could go to the President for signature within the week.

Passage of this bill would be wonderful news for the real estate industry in Washington. In essence, the bill extends the $8,000 first-time homebuyer credit through April 30, 2010 and provides a $6,500 credit to new purchasers who have lived in their current residence for five or more years.

According to Senator Patty Murray, "Extending and expanding the successful homebuyer's tax credit will help families purchase homes and will provide a much needed boost to the local housing market".

Download Bill Details

Thank you REALTORS for contacting your Senator and urging them to support this bill. Over 25 percent of our members responded to the call to action and helped push this bill through the Senate. Washington REALTORS are preparing a public relations plan to promote the extension if/when the bill becomes law.

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Historic Bailout - What does it mean for you?

Larry Miller — Fri, 03 Oct 2008 14:24:00 GMT

Well, it has certainly been volatile in the financial, mortgage and real estate markets, especially in the last few weeks.

Today Congress finally passed an unprecedented $700 billion government bailout of the financial and credit industries and it should be signed into law soon by the President if has not happened already.

Whether you were for it or against it, it was going to affect you whether it passed or not. Even though the focus was on Wall Street, the real problem was in our credit markets. It was getting to the point that banks were not loaning to one another, let alone to businesses and private sectors. Small businesses were finding it hard to meet payroll without the common short term lines of credit that they used to have to function as working capital. Credit cared companies were cut cardholder credit limits (which may not have been a bad thing) and car loans were harder and harder to come by. In the end the consumer was going to pay for it with a potential crash in the economy not seen in our lifetime.

Now the consumer will still get to pay for it, but hopefully without the drama of a failed economy.

It is now back to the basics for everyone. The government will buy off these bad loans that are choking our lending institutions at a discount and hold them until such time the real estate markets come back (and they will come back, they always do.) At that point in time when there is more equity in the homes the loans can be sold back to the private sector most likely at a profit and the hope is the profit will be used to pay down the $700 billion dollar debt before anything else is done.

Once these bad loans are off the books of the banks, then they can start to lend money again to other banks, to businesses and to regular consumers in the form credit cards, car loans, and home loans. Dont worry that the banks will just start lending crazy again which got them all in trouble. The lending criteria have all been tightened so the lending will go back to the basics. But at least now there will still be some lending going on which will ultimately begin to drive the economy back in all week sectors, real estate, mortgage and eventually Wall Street.

This bill will pump credit liquidity and eventually confidence back into the market which was desperately needed.

What does this mean to you? If you were sitting on the fence thinking about buying a home, now is the time to do so while interest rates are still excellent and before you start competing with everyone else who has been sitting on the fence thinking about buying. If you are thinking of selling, now is a good time to get your home on the market because lately, our housing inventory had actually gone done a little bit and the buyers will be coming.

Nobody is expecting a speedy recovery, and there may be some more bumps in the road along the way, but the recovery is coming nonetheless.

If you know of anyone looking to buy or sell, please provide me with their contact information so I could at least talk to them. Your referrals are the life blood of my business and I hope you know by now that I will take very good care of them.

Take care and have a great Friday!

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Fall Maintenance Guide

Larry Miller — Fri, 26 Sep 2008 09:54:00 GMT

Here are some Fall Maintence Tips

Around the House:

Drain hot water heater and remove any sediment from bottom.

Replace the furnace filter (should be done every 3 months).

Have your heating system serviced.

Replace all summer screens with storm windows and doors.

Have your chimney serviced and cleaned. Check for any missing mortar or for debris that

could be an obstruction, including bird nests.

Clean your gutters and downspouts throughout the fall to prevent blockage.

Check and repair any window cracks or holes in weather stripping or caulking.

Have your ducts cleaned and serviced.

Check to make sure your thermostat works properly before the cold weather hits.

Make sure all storm doors latch properly to protect against high winds.

Check crawlspace for flooding after the first long rainfall.

Check the locks on windows and doors to make sure they are working properly.

As the days get shorter, make sure your nightlights are working properly.

Make sure you have new batteries in all your flashlights and that they are easily found around the house.

Stock up on bottled water and snacks in case of a power outage.

Turn ON gas furnace pilot light.

Make sure you have adequate insulation to help save on your energy bills.

If you need to buy a new furnace, buy one that is energy efficient.

Fall is a great time to paint the inside of your home. Cool, breezy days help ventilate the home and clear the fumes

quickly.

If you have small children or allergies, look for paints that are odorless.

Continually check your air vents to make sure they arent blocked by fall debris.

Clean out the bathroom fan/filter.

Test all smoke detectors and carbon monoxide detectors to make sure they are working properly.

Make sure you have an adequate amount of fire extinguishers for your home. At least one on each floor and in the

garage.

If you havent already, make a fire escape plan for your house and make sure you review it with all family members.

Keep rope ladders in each of the second story rooms.

Around the Yard:

Fertilize and seed your lawn.

Cut back any tree branches that are growing towards your house or a power line.

This is the best time of year to plant bulbs.

Start a compost with the rakes leaves, gutter clutter and yard debris. Compost makes

great fertilizer and fall is the perfect time to start one.

Your To-Do Checklist:

Using the tips in this brochure, create your own to-do checklist to ensure that you and

your home are prepared for the weather change.

Larry Miller

425.681.7535

lmiller@windermere.com

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Light at the End of the Tunnel

Larry Miller — Thu, 25 Sep 2008 14:22:00 GMT

September 12, 2009

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 Federal 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. And the greater interest has helped to stabilize the mortgage bond markets and lower interest rates.

We were already starting to see tightening of housing inventory and there are a lot of buyers out there who have been sitting on the fence just waiting for someone to tell them we have hit bottom. If people wait until the hoards of buyers who are sitting on the fence decide that it is time to get back in the market, then they will be competing with them, their choices of homes will go down and most likely they will pay more.

If you know of anyone who has been thinking about buying tell them that now is the time to do it. Because of the bail out noted above, interest rates have dropped this week to below 6% and you still have a lot of motivated sellers out there who will give you a good price.

In addition, if your friends are first time homebuyers, please forward them a copy of the new $7,500 tax credit this in now available to them. This is a credit so it is taken directly off of the taxes owed. In fact, if the taxes owed are less than $7,500 then the US Treasury will cut a check for the difference. The credit does have to be paid back over the next 15 years, but it is a substantial amount of money that could make the difference between first time home buyers buying a home or not. If you know of any first time homebuyers that have already bought since April 9^th of this year, this credit can help them as well so please let them know. This credit will be available until July 1^st of 2009 and was part of the recent housing bill that was passed into law.

Have your friends call me so we can discuss what this news means to them and how they can benefit.

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