Thursday, October 28, 2010

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:

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.

Tuesday, October 26, 2010

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.

Friday, October 22, 2010

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

Wednesday, October 20, 2010

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.

Monday, October 18, 2010

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.

Saturday, October 16, 2010

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.