New Market Data

Nationwide home sale reports for November came out yesterday and today, and both brought good news! Sale of new homes increase 5.5% over October and existing-home sales increased 5.6%. Although unemployment remains high, this report perhaps reflects increased consumer confidence. Average sale price also increased 1.2% over last year, a further indication that the market may have hit the bottom. Of the four regions in the national report, the Western Region reported the biggest gain, increasing 11.7% of the previous months sales.

Clark County Foreclosures Down in November

Last month the number of foreclosures dropped 39.8% from October, however year to date the number of foreclosures is still up 27% over 2009. The drop in November is likely the result of the temporary halting of foreclosure proceedings. Once banks resumed the foreclosure process, they often did so with more caution. Washington has the 17th highest foreclosure rating in the country, just two spots behind Oregon.

Price Reduction - 15802 NE 43rd St - $180,000

PRICE REDUCED!!! This amazing deal is not a short sale or bank owned. This home features lots of living space with a formal dining and living room, plus a large kitchen with eating area and family room. Upstairs has three bedrooms and two full bath, plus a bonus room over the spacious three car garage. Set in a quiet, East Vancouver neighborhood just blocks from 5 acre Fir Garden Park. Click here for the full listing. Call, text, or e-mail me to schedule a showing.

HomeSteps Smart Buy Program

Purchasing a bank-owned home is an excellent way to get a great deal without having to go through the lengthy short-sale process. However, these purchases are not without some risk. There is often a large amount of deferred maintenance and/or repairs that need to be done, which the bank will not do. The banks also do not provide a property disclosure for the home. Freddie Mac is now taking a little of the risk out of buying certain bank-owned homes by offering the HomeSteps Smart Buy Program. The two main components of the program are:

1. A two-year home warranty that covers repair or replacement of covered systems due to regular wear and tear.
2. An appliance purchase discount that saves you 30% on new appliances.

This program only applies to certain properties and the home being purchased must be for use as a primary residence. For more information on the program, go the Smart Buy Website.

For a list of homes that qualify for this program, send me an e-mail at johnblom@hasson.com or call me at (360) 977-8329.

Best Christmas Light Displays in Vancouver

What better way to get into the holiday spirit than driving through Starbucks, getting a peppermint mocha, then looking at some amazing Christmas light displays? The Columbian made it easier for you do find the best light shows, organized by area, with credit to the homeowners. Here are highlights. For hours and a full description, check out the full article here.

Central Vancouver

• 4009 NE 65th St (Freimuth)
• 1601 X St (Russell)
• 11212 NW 9th Ave (Blanca and Moore)

East Vancouver

• 16304 NE 63rd St (Whitehead)
• 2517 NE 176th Ave (Holloway, 2 more great displays just down the street)
• 11806 SE Riverridge Drive (Peppers)
• 7207 NE 92nd Ave (Kirschenmann)
• 4506 NE 106th Ave (Porter and Hubbard)

Orchards/Brush Prairie

• 13210 NE 93rd (Gertz)
• 20306 NE 68th St (Livingston)
• 9109 NE 109th Ave (Burnett)

West Vancouver

• 11111 NW 19th Ave (Kay)

East County

• 2707 NW LEadbetter Parkway, Camas (Giel)
• 4430 NW Crystal Ct, Camas (Pfeiffer)
• Sunset Ridge Subdivision, Washougal, along 51st St (community)

Sends pics/videos of your favorites and I will be sure to post them!

Happy holidays!

East Vancouver New Construction - Parkside Court

8 lots available - 6 back to Fir Garden Park. Plans available from Garrett Custom Homes, ranging from 1700 SF ranch to 2880 SF 2-story plan. Priced below $300k!!! Call to schedule a new home consulation.

• Hardwood Floors
• Granite Counters
• Stainless Appliance Package
• Customizable Plans
• One-stop Home Design Center

15802 NE 43rd St - 2417 SF - $199,900

Great fixer opportunity!!! Not a short sale or bank-owned. This home sits on an amazing 16,000 square foot lot in quiet, established community. Don't miss this opportunity -- call today!

• 2417 square feet
• 3 bedroom/2.5 bathroom
• 3 car garage
• Bonus room over garage
• 16,000 square foot lot
• Formal living/dining room
• Kitchen opens to eating nook and family room
• Nice sized laundry room
• RV Parking
• Very Private

Employment Trends Improving

Throughout 2010, economic analysts and commentators have stated that for the housing market to begin to recover, unemployment would have to decline. Two news reports released today provide some hope that next year might bring improvement in the job market. In an annual survey of CFOs 47 percent responded they expected to hire new employees next year. In last year's survey, forecasting for 2010, only 28 percent expected to grow their work force this year. Only 6 percent expected to layoff employees in 2011, compared with 9 percent who expected layoffs in 2010. The group of 801 CFOs that were surveyed also responded more positively in regard to future revenues and the condition of the economy as a whole. Read the full news report here.

Initial jobless claims also dropped last week, from a seasonally adjusted 438,000 the previous week to 421,000. This decline exceeded analysts expectations. The drop also brought the 4 week moving average to its lowest point since August 2008.

Employment data is not only important for those looking for a job, it also provides a sense of security to those currently employed. Although interest rates have increased over the past four weeks, they are still considerably lower than the historical norm. However, people concerned about their job security are wisely hesitant to take advantage of these low rates and low housing prices to move into a new home.

8 Ideas for Winter Curb Appeal

The latest issue of Realtor magazine had some great tips for improving your home's curb appeal during the winter. The first impression a prospective buyer has of your home is the view from the street...make it a great impression with some (or all) of these ideas:

1. Add splashes of green or purple - Place a small evergreen shrub in a planter or hang a wreath on the door to introduce some color. Plants in the cabbage family can add bright purple tones, a nice contrast to the gray skies of winters in the Northwest.
2. Give it seasonal sparkle - Use twigs with red berries or glass balls covered with sparkles to give off a "happy holidays" feeling.
3. Make the garden statuesque - Frost-resistant outdoor sculptures are a great way to bring an otherwise dormant garden to life during the winter.
4. Light it bright - Get the maximum wattage bulbs for your exterior light fixtures and make sure to keep them clean. If you have showing scheduled in the evening, leave the interior lights on as well. Not only will this keep buyers from stumbling around in the dark, it makes the home seem warm and welcoming from the curb.
5. Show off the lifesteyle - Take the cover off your barbecue or the hot tub right before a showing to help buyers picture themselves enjoying these amenities during the summer.
6. Make the deck and extension of the house - If you have a covered patio, leave your outdoor furniture out during the winter. Even though you probably won't use it, presenting a nice outdoor living space is a great way to entice buyers.
7. Create a photo display of summer days - Using a photo album or digital picture frame, leave some pictures of what your home looks like the rest of the year. Find pictures that show flowers in bloom to let buyers know what they have to look forward to come spring.
8. Don't forget to clear a path - On the occasion that we get snow or ice, make sure to shovel a path so that buyers and their agent can get in and out of your house safely.

For more information go to www.realtor.org/realtormag.

Pending Sales Increase 10%

The National Association of Realtors released new housing data this morning that showed pending sales increased 10% nationwide in October over the previous month, although they remained lower than October 2009. Unemployment claims also reached a two-year low at the end of November.

Dean Maki, Chief Economist at Barclays Capital Inc., said of the new data, "The fundamentals that are driving home sales are low mortgage rates combined with job and income growth and that's why housing should be expected to grow in coming months...housing activity will still look low relative to the boom years, but we expect a solid growth rate to occur."

In Clark County, pending and closed sales dropped in October, so local activitiy does not necessarily reflect national trends. As consumer confidence increases, however, we should see sales data improve in our local area.

Vancouver Parks (Part Four) - Lacamas Heritage Trail

The Lacamas Heritage Trail is a combination of the Lacamas Lake Trail and Lacamas Park Trail. It follows the south shore of Lacamas Lake for 7.6 miles. In addition to being a great place to walk or run, along the trail are a variety of other activities, including basketball courts, a play structure, boat launch, picnic areas, as well as public restrooms.

There are parking lots at either end of the trail and at several location in the middle. Check out this interactive map from Google that shows parking and the location of the various amenities the trail has to offer.

Showing Activity Up in November

In the first week of November, showing activity in SW Washinton jumped up 9.8%, after declining every week in October.

October Market Report

Real Estate market activity in SW Washington dropped significantly last month in every category. Compared with 2009, closed sales dropped 40.2% and pending sales were down 32.3%, while new listings only decreased by 11.1%.

Compared with September 2010, closed sales declined 10.9% and pending sales fell 2.3%. New listings increased by 2.6%, which caused inventory to rise to 11.1 months of supply. Inventory had decreased each of the previous two months, after jumping to 12 months following the initial closing deadline for the Home Buyers Tax Credit.

Source: RMLS, Market Action Report, 2010

Are You Ready for Winter?

The Vancouver area had strong wind Tuesday night and throughout the day Wednesday (15 MPH with gusts up to 26 MPH). Although winter technically does not begin for another six weeks, it's not too early to start preparing for winter storms. Both the Farmer's Almanac and meteorologists and predicting above-average snowfalls in the Pacific NW this year. Here are a few suggestions for preparing an emergency kit, in case snow/ice/power outages make it difficult to get out of the house:

• Have enough supplies for 3 days. This includes non-perishable food (don't forget the can opener!) and at least one gallon of water, per-person/per-day.
• Keep a radio in the house, with extra batteries, to get the latest news/weather reports.
• If the power is out, ATM's may not work, so keep some cash on hand as well.
• Remember the pets! Keep a supply of food and water for them, too.
• Put some personal hygiene items in your emergency kit. You don't want to be stuck in the house for three days with no soap and no toothpaste.

Get a complete checklist for your emergency kit from http://www.govlink.org/storm/prepare.asp.

Homeownership Rates Decrease from 2009

Today, the US Census Bureau released the US homeownership data for the 3rd quarter of 2010. According to the report, 66.9% of Americans own their own home. This number remained the same as the previous quarter, and down 0.7% from 3rd quarter of 2009. From 1989 through 1994, the percentage of American who owned their own home stayed fairly consistent, ranging from 63.8% to 64.2% (with a brief spike in late 1993). After that, the homeownership rate grew consistently until the first quarter of 2005, when it reached a peak of 69.1%. It remained level in 2005 and 2006, before beginning to drop in 2007.

The report also contained data about the number of vacant houses in the United States. Last quarter, 2.5% of all residential homes were unoccupied. This figure did not change from the second quarter and was down from last year. The vacancy rate has declined consistently since hitting 2.9% in 2008. Despite the year-to-year decline, the number of vacant houses remains far higher than historical averages. Between 1996 and 2004, the percentage of of vacant houses never surpassed 2%.

The decline in homeownership over the last several years reflects the uncertainty over the future of the economy. When faced with a difficult job market, young people are more likely to rent or live with family than take on the risks of a mortgage. While the First Time Homebuyers Tax Credit may have encouraged some people to buy a home, many would have likely purchased a home even without the tax credit. For those who were either unemployed or underemployed, even with the tax credit, purchasing a home was, and remains, simply not an option.

The vacancy rate could have an impact on the prices of existing homes, especially since it does not include foreclosures not yet listed for sale. According to the National Association of Homebuilders, the building cost per square foot has dropped from its peak of $111.86/ft in 2006, to $92.46/ft in 2009. When coupled with lower land prices, this decrease in the cost to build makes new construction a very appealing option for those who are able to take advantage of historically low interest rates. If this trend continues, it could have deflationary effect on the prices of the growing inventory of homes built more than 10 years ago, that simply can't compete it terms of condition and quality with new construction. Builders also have the chance to tailor their product to match the current trends (master-on-the-main floor, great room concepts, etc.), an opportunity unavailable to existing home owners.

All of this could change rapidly...if the economic recovery picks up steam and creates opportunities for more first-time homebuyers, an increase in demand will reduce inventory and have a postive effect on the prices of existing homes. As stated above, the vacancy rate has dropped from its high point in 2008. If this continued to drop, it will ease the deflationary pressure on existing home prices. In the short term, however, buyers will likely continue to look for bargains on existing homes (short-sales/bank-owned) or new construction.

Vancouver Parks - Part 3 (Esther Short Park)

This series on the parks of Vancouver continues with Esther Short Park, set in the heart of downtown Vancouver. The park's namesake and her husband, Amos, first landed on the northern shore of the Columbia on Christmas day in 1845 and later claimed a portion of land in want eventually became the city of Vancouver (the eastern border of their potato farm is modern day Main Street). When Esther died in 1853, she left a portion of the land to the city. A statue of Esther was unveiled in 1929, and remains at the North entrance of the park.

Today, Esther Short Park hosts the Vancouver Farmer's Market from March through October (last weekend was the last market for this year). During the summer, the park also hosts a summer concert series. Although the "big events" are over, the park is always a great place to get outside and enjoy lunch on one of the occasional dry days during the winter. The park can also be reserved for special occasions.

Esther Short Park is between 6th and 8th Street, just west of Main Street. The park is open from 7 AM to dusk, and there is metered parking on the bordering streets.

What do the Numbers Mean?

The last seven days have seen a series of postive reports regarding housing/economic data. Here's a recap of most recent news:

• The National Association of Realtors reported on Monday that existing home sales increased in September compared with August, although they still trailed September 2009.
• According to report released yesterday, new homes sales increased nationally by 6.6%
• This morning, the US Labor Department announced that initial jobless claims dropped to a three-month low.
• Freddie Mac's most recent mortgage rate report put the national average for a 30-yr fixed mortgage at 4.23%, up just slightly from last week's record-low average of 4.21%.

It is important to remember that all of this data is from national reports, which often don't reflect what's going on here in Portland and SW Washington. Even the regional data included in these report don't necessarily describe local conditions, as our region includes both California and Nevada, two states that have been hit particularly hard by the decline in the housing market. Regardless, if this trend of positive data continues, it will likely boost consumer confidence going into 2011.

The two biggest obstacles to recovery in the real estate market are bank-owned/short sale properties, which deflate prices, and concerns over unemployment. If unemployment continues to drop in the two months of 2010, that will be a positive indicator for next year's real estate market. The other challenge, however, does not appear to be going away anytime soon. In Clark County, foreclosed homes accounted for nearly 27% of all home sales between July 1 and September 30.

Historically low-rates and the number of bank owned properties on the market provide great opportunities for first-time homebuyers, or buyers who do not need to sell their current home to purchase. Of course, people need to feel secure in their jobs or they won't be making a purchase as significant as a new home.

Dress for Success

Next week, my office will start collecting professional attire to assist low-income women entering the workforce. This is the tenth year that the Hasson Company has participated in the "Send in one Suit" Week. Clothes that are donated go to Dress for Success, a non-profit organization that helps low-income women prepare to enter the workforce. The program is about more than just providing professional looking attire for women who otherwise might not have appropriate clothes for an interview, it also provides training on how to be successful in an interview and ongoing support once a client enters the workforce.

This is a great opportunity for you to go through your closet, find those gently-used business appropriate clothes you no longer wear, and donate them to a good cause. For more information, go to www.hasson.com/dressforsucces.

Vancouver Parks – Part 2 (Lewisville Regional Park)

This is the second part of series featuring one of the more than 130 parks in the Vancouver area. Today's featured is Lewisville Park in Battle Ground.

With over 154 acres of space, Lewisville is the perfect place for the outdoorsy types in Clark County. Cast a line in the East Fork of the Lewis River, or head over to the swimming hold for a quick dip. The covered picnic shelters are large enough to accommodate a large gathering like your next family reunion. There are several miles of trails that run alongside the river and into the surrounding woods and hills. In addition to tennis courts and horseshoe pits, there are several open sports fields for throwing a football or tossing around a Frisbee.

Between March 1 and November 30, the park is open from 7 AM to dusk. Entrance and parking is $3. The rest of the year the park is open only to bicycles and pedestrians, but there is parking just outside the gate. To get to Lewisville Regional Park, go north on SR-503 (about 3 miles north of Battle Ground), then turn right into the park.

Map of Park Trails

Impact of I-1098 on Property Taxes

In the upcoming election, ballot measure 1098 would possibly institute sweeping reform in Washington’s tax code by establishing a state income tax. Put simply, the measure would reduce property taxes across the state and institute an income tax on joint-filing earners with taxable income over $400,000 and individuals or couples filing separately with a taxable income over $200,000. It also increases the Business and Occupation Tax Credit, reducing the tax burden on some small businesses.

Without taking a side on the issue, I wanted to look at how the measure would impact only of the reform to property taxes. First, a simple explanation of how property taxes are calculated is required: Each year, the State Legislature imposes a Property Tax Levy. The total levy is divided by the total value of the property in the state to determine the tax rate. Both the levy and the tax rate calculation are controlled by various constitutional and statutory requirements and limitations.

State Tax Levy / Total Property Value = Tax Rate

Tax Rate * Your Property Value = State Property Tax Owed

This measure affects only the state property tax, a single component of a homeowner’s total property tax bill. The total property tax owed by an individual also includes county, city, and local school levies. In my most recent tax assessment, my home had an appraised value of $258,600. My total tax due for 2010 was $2,997.05. Of that amount, $523.53 went to the state levy.

Measure 1098 would reduce the state portion of my property tax by roughly 20%, or $105 (the reduction may not be exactly 20%, as various other mechanisms may affect the calculation). I double-checked my numbers with an online calculator provided by the Economic Opportunity Institute, an independent, non-partisan, not-for-profit organization based in Washington State, and they estimated a tax savings of $113 (http://www.eoionline.org/tax_reform/calculator.html).

Bottom Line: For a homeowner with property valued around $250,000, measure I-1098 would reduce their property tax bill by a little over $100.

The property tax component is only one aspect of this measure, and I strongly encourage all voters to carefully read and consider the arguments made by both sides of the issue (http://www.yeson1098.com/ in favor, http://www.defeat1098.com/ in opposition) before casting their ballots.

***This article is not intended to endorse or oppose I-1098, but rather to discuss a singular aspect of the measure: the impact on homeowner’s property taxes. I am not an attorney, tax or otherwise, so this explanation is my best effort to explain the rules governing and the and impact of this measure. If I have mistakenly misrepresented any details, I welcome feedback on the comments section and will promptly make any corrections needed.

Vancouver Parks -- Part 1 (Pacific Community Park)

One of the great things about living in Clark County is the number of parks, trails, and green spaces available. With 130+ parks and more than a dozen trails there are plenty of places to get outside and enjoy these beautiful, crisp fall days. Over the next few weeks, I am going to feature just a few of these parks...if you have a favorite park or feel like I've missed one of Vancouver's hidden gems, let me know! Leading off the series is Pacific Community Park at the corner of 172nd Ave and 18th St in East Vancouver.

With over 56 acres, Pacific Community Park has a little something for everyone. Dog lovers can enjoy an 8 acre fenced in dog park. Sports fans can shoot hoops at the basketball courts, kick a soccer ball around the open lawn areas, or drop-in on their skateboard to the 10,000 square foot extreme park. With so much to do, you'll definitely work up an appetite. So, why not take bring a cooler and have lunch at one of the picnic areas? There are both covered and uncovered spaces, available on a first-come, first-serve basis. After lunch take a stroll through the naturally beatiful backyards demonstration garden and pick up some eco-friendly gardening tips.

Parking is available off of NE 172nd Ave, just south of NE 18th St. The park is open from 7 AM to dusk. For more information, go to http://www.clarkparks.org/projects/pacific.htm.

September Market Report

The September Market Action Report came out yesterday with a mix of good and bad news. Here's the good news:

• Compared with September 2009, average sale price increased 3.6%


• Closed sales increased 11.5% over August 2010


• Month-to-month inventory dropped from 11.9 months to 10.4


• Year-to-date closed sales are up 7.1% over 2009

And the bad...

• Compared with September 2009, closed sales dropped by 23.6% and pending sales decreased 31.6%


• Pending sales dropped 8.3% from August 2010


• In the third quarter of 2010, closed sales fell by 29.9% compared with third quarter 2009

So what does it all mean? While 2010 may end up being a better year than 2009, it likely won't be by much. While closed sales are up year-to-date, the expiration of the homebuyers tax credit led to a very slow third quarter. The next two-and-a-half months will determine whether 2010 improved at all over 2009. Locally, prices appear to have stabilized, which is an important step toward recovery. It remains to be seen what the impact of the foreclosure moratorium by Bank of America will be. The concern is that halting foreclosures will allow "shadow inventory" to build up that will have a negative impact on prices whenever it enters the market.

Bottom line: interest rates are very low and inventory indicates this to be a buyers market, but everyone's situation is different. Until there is recovery in the job market, there won't be consistent growth in real estate.

Changes to FHA Loan Program

The FHA is making some changes to the UMIP, or Up Front Mortgage Insurance Premium, effect October 4, 2010.  The premium, which is charged at closing and added into the principal value of the loan, is being reduced from 2.25% to 1%.  The monthly Mortgage Insurance Premium, which is added into the monthly payment, is going to increase.  The amount of the increase depends on the loan-to-value of the loan. 

What does this mean to you?

The lower premium up-front will reduce the overall amount you owe when purchasing or refinancing a home with an FHA loan.  For example, on a $200,000 loan, the up-front premium would drop from $4,500 to $1,000.  Assuming someone put 5% down ($10,000), the principal due would drop from $194,500 to $191,000.  Their montly payments would, on average, increase by about $60.

Fannie Mae Pushing Lenders to Foreclose

Fannie Mae is going to beging giving fines to lenders who do not comply with their established timelines for completing a foreclosure.  In a report to investors, Fannie Mae stated that vacant properties not currently listed "represent a shadow inventory putting downward pressure on both home prices and rents." 

If you are behind in your mortgage payments, you have options...but you need to act quickly.  Over 2 million homeowners were in foreclosure in July.  Give me a call (360-977-8329) and we can talk about your options.

Read the full article here.

Pending Home Sales Rise

The National Association of Realtors released pending home sales data from July this morning.  Pending sales increased 5.2 percent over the previous month.  Most analysts had predicted that pending sales would drop by just over 1 percent.  Lawrence Yun, the Chief Economic for NAR, cautioned that despite the good news, recovery will take time. "Home sales will remain soft in the months ahead, but improved affordability should help with a recovery...For those who bought at or near the peak several years ago, particularly in markets experiencing big bupbbles, it may take over a decade to fully recover lost equity."

Affordabilty is the combined impact of home priced and interest rates (currently below 4.5% on a 30-yr fixed).

Read the full NAR release here.

Here's an article from Forbes, discussing the news.

American Dream Report

Trulia.com and Harris Interactive recently released a report titled "The American Dream," that discussed consumer sentiment regarding homeownership.  Some highlights from the report:

• 19% of those surveyed have a more negative view of homeownership than they did 6 months ago, compared with 23% who have a more positive view


• In 1950, the average home was 983 square feet; in 2004, this increased to 2,349 square feet.  In the future, most builders say they plan on building smaller, less expensive homes.


• 72% of those surveyed stated that owning a home was part of their American dream

If you would like a copy of the full report, send me an e-mail at johnblom@hasson.com.

Is NAR Counter-productive?

A friend of mine (hat tip to Luke) e-mailed me this blog post and asked my opinion.  Basically, the blogger argued that the National Association of Realtors (NAR) consistenly optimistic take on the housing market is counter-productive, in that it makes it more difficult for realtors to get sellers to set a reasonable listing price for their home.  It's an interesting idea, so I thought I would put in my two-cents :

1. I don't think that NAR's statements have created an overly optimistic market.  Many of the sellers I have talked to recognize that we are still in a difficult market, and that it is going to take awhile to recover.  Sure, there are a few that believe their home is worth more than it probably is, but I think this has as much to do with the rapid increase in prices during the housing boom that conditioned people to think a certain way about home values.


2. As the other blogger states, NAR is an advocacy group for realtors, so it should not come as a surprise that they tend to emphasize positive news in the real estate market.  Consumers should consider where information is coming from when making such an important decision as buying/selling a home.

If you are considering buying or selling a home, I recommend looking at what NAR is saying about the market, but also looking at the Wall Street Journal or the NY Times, as well as the Columbian or Oregonian to get a couple different perspectives.  If you have specific questions, call me.  For some people, now is not the right time to make a move.  If I think you should wait a year or two (or five), I will tell you.  I would rather be honest with you and earn your trust (and hopefully your business whenever the time is right), then try and talk you into a bad decision.

National Existing Home Sales Reports - July

The national sales report came out this week...not great news, but pretty close to what was expected:

Bad News: Sales of existing homes dropped 27.2 percent to the lowest level in over a decade.  Inventory also increased.  Anyone who has money in the stock market saw the effects of this when the report was released.

Good News: Home prices continued to increase

The sharp decline of home sales in July was in large part to the expiring tax credit.  Many people who planned to buy a home this year purchased in the spring to tax advantage of the First Time Homebuyer/Move-up Buyer Tax Credit.  In the Vancouver area, annual sales for 2010 are still higher than 2009.  Overall, this year should still be a much better year than last.  However, the housing market will not truly begin to recover until unemployment numbers drop.

Open House -- Sat and Sun 1 to 4 PM

Classic home in the desirable Lakeview Estates Neighborhood. New island kitchen features beautiful craftsmanship and unparalleled style. Marble floors in the living and dining areas give a feeling of luxury. Master bedroom and a den on the main floor lets you do most of your living on the main. The loft upstairs would make a great library, work-out space, or second office. Two more bedrooms and a full bath upstairs are perfect for children or guests.

1919 NW 87th Circle

3 bedroom/2.5 bathrooms
2,716 square feet
$384,000

Call or text 360-977-8329 for more details

Home Sales Increased in April...

...but will likely decrease in May and June. From Bloomberg Business Week:

Link to full article

June 2 (Bloomberg) -- The number of contracts to buy previously owned homes climbed in April as Americans took advantage of the last month of a tax credit.

A plunge in mortgage applications signals sales will soften in subsequent months following the April 30 deadline to sign contracts and obtain as much as $8,000 in government assistance. Any sustained recovery in housing hinges on maintaining stability in financial markets and gains in employment in the wake of the European debt crisis.

Where Buyers Found Their Home

If you are thinking about selling your home, you want to advertise it where buyers are looking, right? According to the National Association of Realtors, 40% of buyers found the home they eventually purchased on the internet. The next most common source was the real estate agent. When you list your home with me, I put your home on two hundred different websites nationwide, including Realtor.com and Zillow.com, the two most popular real estate sites in the US.

Give me a call to find out more about the tools I use to market and sell your home as quickly as possible and for the best possible price.

John Blom
johnblom@johnlscott.com
(360) 977-8329

5 Spring Projects

The National Association of Realtors has 5 great ideas for spring projects.

Here's the list, and a quick description. Check out the full article here.

1. Gutter Repairs - no one likes to do it, but it has to be done. They suggest using barbecue tongs to try and clean out clogged downspouts.
2. Concrete Cracks - a little concrete caulk can take care of little cracks (less than 1/4 inch across). Maintaining your concrete patio or driveway is critical for keeping moisture from getting beneath and causing even more damage.
3. Sticking windows and doors - find where the trouble spot is, then carefully remove the window or door and use a hand plane to remove excess material. You can use a power plane, but be careful not to remove too much.
4. Paint over water damage - this only works if you use a good primer before applying paint. For best results, use a primer-sealer like Kilz or Zinsser.
5. Painting and repairing rusty fixtures - new types of additives for paint allow you to paint directly over rust without getting rid of the rust first. These products prevent further corrosion as well.

Move-up/Luxury Market Shows Signs of Life

Over the past several years, first-time buyers made up about 42 percent of the market. As a result of home buyer tax credits, those first timers represent close to 50 percent of buyers. However, increasing activity in the upper price ranges shows that buyers in the move-up/luxury market are sparking the housing recovery as well.

In the Clark County, pending sales* of entry/first-time/move-up homes (those priced $299,999 or less) were up 60 percent over last March. In the move-up/luxury market ($300,000+), pending sales were up 32 percent over last year. This is clear evidence that the move-up/luxury market is doing comparably well to the broader first-time segment, especially when you consider that this market has not directly benefited from home buyer tax credits like the lower price ranges have.

Why is the move-up/luxury market improving?

• Buyers who are hoping to "time" the bottom of the market
• Low interest rates
• The increased affordability of jumbo loans

At this time last year, interest rates on a jumbo loan were in excess of 8 percent due to a large number of lenders exiting the jumbo market. Today, many of those lenders are returning, which has helped bring interest rates on jumbo loans more in line with conforming loan rates: near 5.5 percent. In addition, Clark County FHA loan limits are up to $418,750, which means that a buyer can purchase a home with as little as 3.5 percent down payment as long as the loan does not exceed $418,750.

With increasing optimism in employment numbers and consumer confidence, as well as the increasing availability of financing products, the housing market recovery should continue at a steady pace. And as we are already seeing, the recovery appears to be taking place throughout the price points, not just in the markets that have been bolstered by tax credits.

*Condos/Single Family. Resale Only. Numbers provided by Trendgraphix.

Website Online

Its been awhile since I posted anything new, and here's why: I am happy to announce that http://www.vancouverrealestatepro.com is now online! The site is still under construction, but the bare bones are up and going. Check it out today!

Open Today -- 2 PM to 5 PM

Vintage tri-level backs to peaceful park.

• Gorgeous oak flooring
• Maple cabinets
• Fresh decor
• Brick fireplace in living room
• Updated vinyl windows
• Eating space with slider to patio
• Back door in laundry room and garage
• Large family room
• 4 bedroom, 2.5 bath
• $195,000

Open Saturday, 2 to 5 PM

Call or text John at (360) 977-8329 for more details

Open House 11 AM to 1 PM

$25,000 price drop this week!!! Not a short sale. Well built, 3 bedroom/1.5 bath home on over 10,000 square foot lot. Motivated sellers...bring an offer.

Open Saturday, 11 AM to 1 PM.

Price Reduction

$25,000 Price Reduction on 3900 NE 60th Ave

This well-built home sits an an enormous lot (over 10,000 square feet) in a quiet neighborhood, convenient located near I-205, SR-500 and the Vancouver Mall. The three bedrooms all have hardwood floors. The kitchen and one-and-a-half bathrooms need some updating, but this house has great bones.


Call John Blom to schedule your showing (360) 977-8329

Open House -- Saturday 4/3 -- 1 to 4 PM

This home has the character of rich hardwood floors & the warmth of a wood-burning fireplace. The kitchen has been updated with new counter tops, and the huge family room can be multi-purpose: the perfect place to kick off your shoes, read a book, or watch TV. Large home office in addition to the two bedrooms! Beautifully landscaped yard with east facing deck for morning sun and afternoon shade. Close to SW Washington Medical Center.

Hosted by John Blom

(360) 977-8329

johnblom@johnlscott.com

Internet Showings

According to a survey done by the National Association of Realtors, 40 percent of all buyers found their future home on the internet. The second largest source was through an agent, at 38 percent. Getting your home maximum exposure on the internet is critical to finding a qualified buyer and an important part of my marketing plan.

JohnLScott.com gets over 350,000 unique visitors per month. Our online property search is the best in the market. I have even heard of buyers who, for one reason or another are working with another broker, but using our site to look for property! We also have thousands of buyers who have signed up for our property tracker program. They get automatic e-mail updates everytime a property comes on the market that fits their criteria.

This all sounds great--but how can you know how much online attention your home is getting? That's where the online showings report comes in. Every week, I e-mail my clients their weekly update, which tells them exactly how many online showings their property received during the week.

If you want to work with an agent who understands today's market and maximizes new technology, give me a call or send me an e-mail to schedule your seller consultation.

New Government Housing Initiative

The White House announced this morning a new program to help homeowners who are struggling. The two main points of the initiative are:

• Refinancing through FHA with principal reduction for owners who owe more than their house is worth. This part of the program depends on investors who purchased mortgage backed securities accepting a loss. However, the loss might be less than if they had to go to foreclosure.
• Encouraging banks to reduce principal amounts for loans that are underwater. This coincides with an announcement by Bank of America earlier in the week that it would begin forgiving prinicpal on over 45,000 loans.

Read the complete NY Times article here.

Regardless of the politics, what impact might this have on the real estate market? Many people have chosen to walk away from their homes because they believed it would take years for them to get back to a place where they owed less than their house was worth. The option of principal reduction might keep some of these people in their houses. Homeowners who received prinicpal reduction might also be less likely to sell their home as a short sale. If this new program succeeds in shrinking the number of short sales and foreclosures on the market, it would have a positive impact on home values. However, this will only work if banks and investors choose to cooperate on a large enough scale to have a meaningful impact.

Renovation Costs

If you are thinking about doing some renovations or remodelling, but want a rough estimate of how much your project will cost, Pillar to Post Home Inspections has put together an estimated cost sheet for all kinds of projects. Every project, like every home, is different, but these at least give you a ballpark figure to help you start to formulate your budget.

Here are their estimates for some common projects and a link to the full list:

• New kitchen cabinets - $50 to $100 per linear foot
• Hardwood floors (prefinished) -$10 to $15 per square foot
• Add a patio door - $2000 to $3000
• Reshingle the roof (over existing shingles) - $1 to $2 per square foot

February Market Action Report

The RMLS released the latest Market Action Report for SW Washington yesterday. Here are some highlights:

• Compared with February 2009, closed sales increased 35.1%, while pending sales went up 37%
• Both pending and closed for February increased from January, with pending up 27.3% and closed up 10.6%
• Based on current active listings and sales trends, inventory is currently at 11.6 months, down from 18.6 months in February 2009

If you would like a copy of the complete Market Action Report, e-mail me at johnblom@johnlscott.com.

Battle Grounds Coffee

The Columbian reviewed Battle Grounds Coffee, my favorite coffee shop in Clark County. They recently moved into a new location: an old Catholic church. It has great atmosphere, drinks, and food. It is definitely worth checking out! Some highlights from the review, as well as the link, are below.

Move to Former Church Proves Heavenly

By Karen Persson for the Columbian

Why: If you’ve never had a reason to check this place out, the new location will likely pique your interest. A mere half a block from its former location, Battle Grounds Coffee House has taken up residence in a building that was established as a Catholic church in 1928. The coffee house still serves Stumptown brews, but it has added Premium Boar’s Head deli meats to expand the lunchtime options.

Atmosphere: With the additional space that came with the new address, the coffee house has more family appeal than it used to. Seating extends onto an outdoor porch for enjoying those warm weather days that are just around the corner. The building still has a churchy feel, with cathedral-style windows trimmed in green glass and a wood floor, but the altar has been replaced with a cozy electric fireplace, leather sofas and club chairs. The coffee house also has meeting rooms downstairs for large groups.

2010 Property Tax Statements

wnersEach spring, Washington homeowners receive tax statements based on the assessed value of their homes. A large portion of revenues from property taxes go toward educating our community’s young people. In addition, our police, fire, libraries, and parks and recreation are funded with this money. During difficult economic times, these revenues are especially important.

As many in Washington have seen their property values decrease, it’s not unreasonable to expect that property assessments would go down as well. However, that’s not always the case. In the state of Washington, approximately half of your property tax is determined by levies for schools and community services.

While you can’t do much to avoid paying property taxes, if you disagree with the value your local assessor has placed on your house, you are entitled to an appeal. For more information about appealing your home’s assessment, as well as the petition form you will need to fill out go to http://dor.wa.gov/content/findtaxesandrates/propertytax/

If your property assessment has piqued your curiosity about the value of your home, please feel free to contact me. I’d be happy to discuss a comparative market analysis of your home, and, if appropriate, a property marketing and price strategy plan.

Open House -- Saturday 11 AM to 2 PM -- Washougal

Beautiful 3 bedroom, 2.5 bathroom house with amazing views in Washougal. Wrap around deck that is covered in the back, with a water feature in the backyard. Great room floorplan with office on the main. Bamboo floors in living and dining room. Stop by and check out this amazing home.

1698 N 9th St
Washougal, WA

Call or text (360) 977-8329 for more details

Tax Tips from Houselogic.com

With taxes due in about six weeks, now is a good time to do some tax planning for the future. Houselogic.com gives some great tips on how to maximize your deductions for mortgage interest and home equity loans. Here's a "preview" of the article:

"In general, individuals and couples filing jointly can deduct the interest on up to $1 million ($500,000 if you’re married and filing separately) in combined home loans, as long as the money was used for acquisition costs, that is the cost to buy, build, or substantially improve a home."

Read the full article here. And of course, be sure to consult with a tax professional if you have questions.

Two Months Left on the Tax Credit

Though the first-time home buyer tax credit has received the lion’s share of attention in the media, there is another tax credit that applies to millions of current home owners.

Qualified homeowners who have lived in their current home for at least five of the past eight years are eligible for a $6,500 tax credit to buy a home.

· Tax credit does not require repayment.
· Credit is available to couples with gross income of less than $225,000 and individuals making less than $125,000.
· Credit is limited to homes priced $800,000 or less.
· The home must be purchased as the primary residence.
· Buyers must secure a binding contract by April 30, allowing 60 days to close.

It is estimated that approximately 70 percent of home buyers qualify for some kind of tax credit when they purchase a home. If you’d like to find out whether you are one of them, please contact me.

New Listing -- 52 Acres -- Great Development Opportunity

Almost 52 Acres in Yelm...recently logged and ready for development. Buyer to do all due diligence. Creek runs through the property. Owner willing to carry contract for 5 years with 20% down. Call or text (360) 977-8329 for more details...or e-mail johnblom@johnlscott.com. Look it up online at here.

Open House -- Sunday 2/28 -- 1-4 PM

3 bedroom, 2 bath home just blocks from the neighborhood park. Meticulously landscaped back yard and a 3 year old roof gives this house great curb appeal. You won't be disappointed inside, either, with an open floor plan and vaulted ceilings. Don't miss the chance to own a great house in the convenient Fisher's Landing Area.

2012 SE 178th Ave

Hosted by John Blom, John L Scott Real Estate
johnblom@johnlscott.com
Call or text (360) 977-8329 for more information

Open House -- Saturday 2/27 -- 1-4 PM

4 Bedroom, 2.5 bathroom home for $234,900. Over 2600 square feet...lots of space for your dollar. Formal living/dining room and a separate family room with fireplace and built-in cabinets.

6606 NE 51st Circle
MLS #10011881

Directions: From Andresen, go west on 58th St. Turn left on 66th Ave, then left on 52nd St. Make a right at the T and follow around to the cul-de-sac.

Hosted by John Blom, John L Scott Real Estate
johnblom@johnlscott.com
Call or text (360) 977-8329 for more information