Home Safe Home: Preparing for Our Next Quake

Recent events in Japan are not just shocking for the destruction they caused there, but they are also a reminder that we in the Pacific Northwest are also on precarious ground. The Cascadia Seduction Zone (CSZ) is the 800 miles of intersecting tectonic plates on top of which our communities sit. While newer homes are built according to current codes, home retrofit programs and stricter seismic repair policies are ensuring that older homes more vulnerable to damage during an earthquake – particularly URMs or those with un-reinforced masonry – are updated.

For so many of us, our homes are our largest investment, and as such protecting them – and ourselves inside of them – during a geological event takes preparation and planning. Along with an understanding of the structural integrity of your home, here are some simple things that you can do to minimize damage during a quake:

∗ Repair defective electrical wiring and leaky gas lines now.
∗ Bolt down and secure to the wall studs your water heater, refrigerator, furnace, and gas appliances.
∗ Anchor overhead lighting fixtures.
∗ Install flexible pipe fittings to avoid gas or water leaks. Flexible fittings are more resistant to breakage.

And remember, always have a first aid kit and emergency plan at the ready. A little forethought now means greater peace of mind for you and your family when you’ll need it most.

Call me for a more comprehensive analysis of your home’s earthquake preparedness!

The Sweet Sound of the Jackhammer: Puget Sound Construction Returns

The Seattle Times notes that home construction rose at the fastest rate in 20 months, jumping 14.6% from December, while multifamily construction saw an 80% increase.

And greater plans are in the works – several new projects in the Puget Sound area that focus on sustainable, public-oriented waterfronts are in development. Just one of them, Point Wells in Richmond Beach, is a $1 billion project that could add up to 4,500 new residences. For its part, Michigan-based Pulte Group also announced the development of 70 townhomes at Issaquah Highlands after purchasing another 600 undeveloped lots in Snoqualmie Ridge II.

So while dismal housing news continues to permeate the news, the undeniable reality is this – the growing sound of cranes, hammers and bulldozers doesn’t lie.

Paradime Shift: Your Money in the New Post-Fannie & Freddie Mortgage Market

Rumors of the demise of the government-sponsored mortgage enterprises, Fannie Mae and Freddie Mac, have been floating around for some time. But these rumors are ever closer to reality; currently, the US government is mulling over options that include the scaling back of their role to varying degrees, from minimally doing so to completely backing out and privatizing the entirety of the industry so that they only cater to the underserved, low-income buyers and veterans.

Fannie Mae and Freddie Mac guarantee more than half of the $11 trillion in mortgages held by Americans and 80% of Fannie and Freddie ownership is held in their hands. Just recently, Freddie Mac requested another $3.1 billion dollar from their Treasury Department lifeline after reporting negative net worth, which is being considered yet another death rattle from these troubled institutions.

To offset these losses, the government’s newest plan calls for an increase in down payment for FHA loans, a reduction in the maximum size of loans offered and an increase in fees to encourage more private lending, including risk-based pricing in the form of an up-front fee for borrowers with less than a 740 credit score and who are putting less than 20% down.

As the government is increasingly wont to shy away from guaranteeing loans, the potential for risk increases for private lenders; they will in turn pass that risk along to borrowers in the form of stricter lending regulations, additional fees and climbing interest rates. After the reforms are enacted, whatever they may be, borrowers will most decidedly feel the pinch, but the rehabilitation potential for the mortgage market is hopeful. It will ensure more qualified borrowers and therefore a more robust and sustainable market. This may be cold comfort, however, for buyers who are currently on the fence and fail to take advantage of the current favorable lending climate while rates on their side. So if you’re currently thinking about buying – don’t snooze and lose!

What’s Up with Interest Rates? Interest Rates are Up, That’s What.

By now we all know that interest rates have remained at incredible lows for the past year, but the times may be changing. Christopher J. Mayer, a senior vice dean and a professor at the Columbia University Business School told the New York Times recently, “The window of low rates could have left us.” Fixed mortgage rates are already up a half-point higher than in November.

Of course, the perception of these rates is all relative. This same month in 2008 rates were hovering around 7% while at the moment they remain around 4.5%. Nonetheless, an upward trend is predicted as the economy gets back on track.

The Mortgage Bankers Association says its refinance index increased 7.7% from the previous week and that overall the mortgage applications index rose 5% this week as Buyers and those looking to refinance seek to take advantage of rates while they’re still low. While no one is sure when exactly rates will cap or at what rate they will stabilize, the consensus is that they will – and perhaps in the not-to-distant future.

Housing Authority Affordability: The Multifamily Property Tax Exemption (MFTE) Program

Even with the current downturn in the market, affordable housing in Seattle has long been a dream of median-income families and individuals. The Multifamily Property Tax Exemption, or MFTE, program has been helping do just that since 2004. This program waives property taxes for private developers for up to 12 years when at least 20% of the units are set-aside for those making 80% to 90% of median income. The goal is to encourage the creation of both rental and homeownership housing for moderate wage workers and mixed-income housing.

Paul Allen’s Vulcan is one of the companies that has taken advantage of this program, offering median-income units in their developments, Alley24 and Borealis. When Borealis was being developed in 2008, the Director of the City of Seattle Office of Housing noted that, “ “These types of workforce housing projects help provide homes for Seattle workers who may not qualify for the city’s subsidy programs but still have difficulty finding affordable, market-rate housing in the city.”

While detractors argue that the program offers special incentives to private developers, it still enjoys many proponents in local government. The MFTE program expired on December 31, 2010 and the Seattle City Council is currently reviewing the program for potential renewal. For more information or to voice your opinion on the MFTE program, contact your local Councilmember.

Westward Ho!: What the New Census Data Means for the Pacific Northwest

Along with the political implications of the 2010 US Census, recent census numbers will have a significant impact on Northwest Washington’s home values. With a 14.1% increase in population, according to the US Census Bureau, our area is witnessing an urban expansion that will affect new construction, residential resales and rentals alike.

Currently, the American Community Survey says that 43% of our community members live alone.
However, as more out-of-towners become locals, we may experience a shift in this trend, with the 43% of our households that are comprised of families moving closer to the
national average of 67%.

The combination of a growing population and shifting demographics will likely mean more home sales overall – and, who knows, perhaps even more children roaming our streets!

Safe & Sound & Worth More Money: Home Remodel Options Worth Considering

Nothing strikes fear into the hearts of homeowners like the word remodel. But remodeling doesn’t have to be painful and in the end it can actually mean
saving you some physical pain and earning you more money.

Deferred maintenance is not only detrimental to your home’s value, it’s also a threat to you and your family’s safety. The
National Fire Protection Association says that there are 49,200 heating equipment-related home fires and the US Consumer Product Safety Commission notes that there are 15,600 dryer fires each year that cause an excess of $75 million dollars in property damage – all from lack of maintenance.

Along with safety issues, targeted maintenance can greatly increase the curb appeal of your home. Here are some options that make the biggest impact, along with average Pacific Northwest prices and your recoupable costs:

• Entry Door Replacement [fiberglass] / cost $4,040 / 67.8% recoupable
• Garage Door Replacement / cost $3,670 / 77.7% recoupable
• Minor Kitchen Remodel / cost $23,603 / 84.1% recoupable
• Window Replacement [wood] / cost $21,407 / 75.5% recoupable

Call me for a more comprehensive list of options
that make your home the best it can be! (206) 353-8787

November home sales show rebound, says NWMLS

Pending home sales in Western Washington inched upward last month compared with a year ago, which is the first time that’s happened since April, according to the Northwest Multiple Listing Service, which tracks home sales in more than 20 Puget Sound counties.

Last month, there were 4,987 pending sales in Western Washington, up from 4,888 in November 2009. In King County, there were 2,014 pending sales, up from 1,984 in November 2009.

The number of closing sales last month, though, didn’t approach figures from 2009. In the 20-plus counties tracked by the NWMLS, there were 3,583 closings last month, which compares with 5,168 closings in November 2009. In King County last month, there were 1,331 closings, compared with 2,025 a year earlier.

The average price of a home sale in King County in November was $418,341; the median (half sold for more and half sold for less) sale price was $340,000. A year ago, the average November King County home sale price was $415,581 and the median sale price was $337,000.

Some real estate salespeople said there was an increased number of sales to relocating employees last month, which could be attributed to increased local hiring.

“We’re seeing an upswing in relocation sales after a long lull, which indicates a positive sign in terms of local hiring. Employers traditionally want new hires in place by the first of the year, so sales are happening now,” said OB Jacobi, NWMLS director, in a statement.

Read more: November home sales show rebound, says NWMLS | Puget Sound Business Journal

Dream Home Tour – February 2011

Hello friends, family and clients – past, present and future!

Are you or anyone you know dreaming of buying a fabulous new home in 2011? Do you have dreams of beautiful views, luxurious surroundings, or simply just a “better home”?

My business partner, Julie Jones, with Cobalt Mortgage, and I are happy to announce and launch our First Dream Home Tour early in 2011 .

When: February 11th, 2011. 4:30-7:00 pm
Price range of homes: $1.5 – $3 million. Other price ranges and area tours available upon request.
Where: Greater Seattle area (you choose which neighborhoods you’d like to see and we’ll create the tour)

We’ll have a limo arrive to pick you up and will have sparkling wine waiting for you. You’ll sit relax and indulge while we share with you about these spectacular homes and preview 3-5 of the TOP luxury listings matching your dream criteria!

RSVP by 1/31/2011 for us to customize the tour for you .

Please feel free to send this to anyone you know interested in purchasing their dream home in the New Year! Christine Andreasen & company
The voice of success in Real Estate
206-363-8787

www.christineandreasen.com

Fabulous Bellevue house for sale! 1003 176th Ave NE

As an agent, its a treat when I can say “I walked into this home and immediately adored it”. The home owner decided not to resist the era but to roll with it and has turned this house is to a gem!

You just must, must, must see the inside of 1003 176th Ave NE in Bellevue! Its a got a fabulouly great open kitchen with top of the line stainless steel appliances & a dinning room that then opens to a sunroom with HOT TUB and connected deck. This home has many charisma points! 2 big fireplaces, 3 living/family/den areas plus much more.

It also hasa newer water heater PLUS airconditioning! Beautiful landscaping, huge garage and lots of storage are a couple added benefits to this fun, light, fabulous home.

Call me about 1003 176th Ave NE, Bellevue, Wa 98008