Real Estate Information

I love Thai cuisine and was happy to stumble upon D'Jung Thai Cuisine a few years ago.  If you are a regular reader of my blog, you may have seen the review I wrote for D'Jung.  My husband and I enjoyed a meal from this restaurant a month ago and we were amazed when the owner gave us a coupon for a customer appreciation day on August 20th.  I don't believe they'd ever offered such a deal before, but everything was 50% off that day!

When August 20th came, we placed a HUGE order, ordering all of our favorites that were "in stock" and a few new dishes.  I figured eating leftovers for a few days would be great.  When we went to pick up our order, we were happy to see that the place was packed with customers.  We really liked the owner and wanted to see him succeed, so we cheered inwardly when we saw that the place was full.

We were sad and shocked to learn this was their last day in business and they would be closing their doors forever at the end of the day!  An African restaurant would soon be taking their place, and as we waited an hour for our food, we sampled some African comfort food from the new owners.

So, if you loved D-Jung Restaurant in Kent and are sad that they are gone, I suggest Bai Tong in Tukwila next to Half Price Books and Toys R Us (which is ALSO going out of business - yes, Toys R Us is closing in Tukwila).  Bai Tong is really, really good and it's worth the drive from Kent East Hill.

In other news, my family wanted to dine at Longhorn Barbecue in Kent yesterday.  I had heard it wasn't that good, so I had never eaten there.  Well, I suppose I'll never try it because we discovered they closed their doors for good (at this location, anyway) on Saturday, August 28th.

So, goodbye D-Jung Thai Cuisine and Longhorn Barbecue of Kent.  We will miss you.

It's mid-month and do you know what that means?  The Realty Trac foreclosure data is now available.  The July 2010 data shows that Washington State ranks #12 in the list of 50 states with foreclosures, #1 being the state with the most foreclosures.  The data shows there were 5,682 properties in foreclosure in Washington State last month.  This number translates to 1 out of every 491 housing units in foreclosure.  The definition of Housing Units is "stick-built single-family houses, condominiums and townhouses."

Month's End, July 2010:

• King County had 1,810 properties in foreclosure, which means 1 out of every 460 housing units is in foreclosure.
• Pierce County had 1,065 properties in foreclosure, which means 1 out of every 302 housing units is in foreclosure.
• Snohomish County had 901 properties in foreclosure, which means 1 out of every 311 housing units is in foreclosure.

Our neighbors in Oregon had 3,916 homes in foreclosure which is 1 out of every 416 housing units in foreclosure.  Oregon ranks 21st in the nation for homes in foreclosure.

Here are the top five states in the U.S. with properties in foreclosure, according to the data published this month by RealtyTrac.

1. California continues to have the largest number of properties in foreclosure in the U.S. with 66,910, which means 1 out of every 200 housing units is in foreclosure.
2. Florida had 51,557 properties in foreclosure, which means 1 out of every 171 housing units is in foreclosure. 
3. Illinois had 19,602 properties in foreclosure, which means 1 out of every 269 housing units is in foreclosure.
4. Michigan had 18,833 properties in foreclosure, which means 1 out of every 241 housing units is in foreclosure.
5. Arizona had 16,298 properties in foreclosure, which means 1 out of every 167 housing units is in foreclosure.

If you would like to have a list of all the homes that are ABOUT to be foreclosed upon in any given ZIP code or have questions about buying foreclosures or dealing with one of your own, pleas contact me. I'll be happy to assist you - I'm here to help!

The media will always find a way to bring us negative news, but the truth is we had a very healthy number of closed and pending sales in July and the average and median prices for homes increased over last month across the NWMLS.  Overall, I’d say it was a good month for real estate in the Greater Seattle Area.

A director from the NWMLS commented that “It’s a housing trifecta.”  The combination of the lowest mortgage interest rates we’ve ever seen; a vast inventory of homes; and very low asking prices have created an unprecedented opportunity for buyers.

We are also seeing an increased number of new home sales where large builders have adjusted their prices to 2004 levels.  The demographic snatching up more new home sales than others are first-time home buyers.  New construction home sales have increased by 28.1 percent in the Puget Sound region over the last twelve months.

If you’ve heard of the USDA rural home loan program, you may be aware that the annual allotted funds for it dried up last month.  Many would-be buyers had to rescind their offers as the funds for this went away.  The good news is that the funds were just replenished – this is a blessing more many buyers in our area. 

J. Lennox Scott, the chairman and CEO of John L. Scott Real Estate was pleased with the replenishing of funds which help households purchase homes in rural areas.  “The Federal Government should be applauded for passing the legislation that will allow for recapitalization of the USDA's Single-Family Housing Guaranteed Loan Program,” he said. “Rural America has more than 50 million people nationwide, many of whom are in a strong position to buy a home, but lack the down payment funds required by conventional loan programs, he explained, adding, “The USDA loan program opens up opportunities to many of these buyers, bringing with it a proven track record of success and another step towards creating long-term housing sustainability." 

According to a U.S. News index, Washington State was ranked “fourth best state” for building a nest egg and we won the title as the country’s most promising real estate market in the near term.  This study considered each state’s housing market, unemployment rate, per capita income and taxes.  Based on data from Moody’s Analytics, the reported forecasts home prices in our state will surge by “a whopping 6.6 percent per year” between 2010 and 2013.

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King County: 4,148 new listings; 14,490 active listings; 2,119 pending sales; 2,133 closed sales; average price of closed sales: $460,821; median price of closed sales: $375,000.

Pierce County: 1,614 new listings; 6,467 active listings; 1,019 pending sales; 686 closed sales; average price of closed sales: $240,245 median price of closed sales: $219,970.

Snohomish County: 1,545 new listings; 5,908 active listings 870 pending sales; 727 closed sales; average price of closed sales: $305,793; median price of closed sales: $270,000.

NWMLS: 10,850 new listings; 44,770 active listings; 5,571 pending sales; 4,491 closed sales; average price of closed sales: $342,422; median price of closed sales: $274,990.

Compare these numbers to last month's report.

Is It Time to Refinance?

   If you listen to the radio, read or listen to the news, you’ve probably heard it said weekly, “Buy or refinance now – interest rates are at the lowest they have been since the 1950s!” or you may have heard they were simply “still historically low!”  Well, in the last few weeks we HAVE had the lowest mortgage interest rates we have ever seen.  So, if you are wondering if you might be able to save a hundred or more dollars each month on your mortgage bill, this would be a very good time to do something about it.  If you have an ARM loan that will reset soon, or you have an interest rate over 5%, this is the time to inquire about getting a better fixed interest rate.

   I work with a handful of excellent licensed loan officers from different mortgage banks and brokerages.  If you would like to be connected with someone whom I trust, please contact me today while interest rates are still very low.  I’ll be happy to provide you with the names and contact information of some loan officers that will offer help.

  Here is a history of mortgage interest rates for August 2010 - this illustrates just how historically low today's rates are.  Click the image below for a full size graph.

As you take your last vacations before the school year begins, please remember my annual Seattle Ronald McDonald House Toiletries Drive.  If you have room in your luggage and do not use the hotel-provided shampoo, conditioner, soap, etc., please bring them home with you.  I will be collecting toiletry items starting in November and will deliver them in early January - weather permitting.

Click R.McD.H. to see the former blog posts related to this cause.  Thank you, and enjoy your summer vacations!

Looking back at home prices in the Seattle area from 1984 - May 2010, it's easy to see what has caused the ebb and flow in the real estate market.

In 1984, the median price for a single family home in King County was just $79,950.  In the late 1980's, Boeing added 50,000 jobs and thousands of new families moved into the area.  This caused a buying frenzy into 1990 as home prices doubled from 1984 - now the median prize was $145,000.  Remember those interest rates, though?  They were 10.13 - 14.45 percent and that was not stopping people from buying!

Then in the early 1990s's, Boeing stopped hiring and the nation entered into a recession in 1991.  The economy slowed down, less families moved to Washington State and housing demand dwindled.  Interest rates were 7.93 - 9.25 percent and the median price in 1994 was $160,000.

Fast forward to the late 1990's and the Dot-Com Boom.  High tech start-ups began to fuel the local economy and high-tech employment caused incredible population growth.  Microsoft stock options created home buying wealth and interest rates were 7.44 - 7.81 percent.

In the early 2000's we experienced the Dot-Com Bust and the stock market fell dramatically.  Seattle entered a recession as Boeing cut over 30,000 jobs and housing demand dropped.  During this time, interest rates dropped to the lowest we'd seen in 40 years: 5.83 - 8.05 percent.  The median home price was $246,560.

The mid-2000's was when the recession ended and we had the Sub-Prime lending boom.  Local job growth was twice the national average here in King County, which fueled housing demand.  Home prices rose dramatically and economists compared noted about when the housing bubble would burst.  The median home price in King County was $325,000 and interest rates stayed low at 5.84 - 6.44 percent.

By the late 2000's and early into 2010 we had the Sub-Prime bust with the sub-prime market collapsing in August 2007.  The number of foreclosures increased, interest rates fell to 4.75 - 6.625 percent, and FHA loans became popular again.

As of July 2010, the median home price in King County is $399,950 and interest rates are shockingly low - the lowest we have ever seen.  The selection of homes is incredible and if you have a lot of patience, you can get a very good deal on a short sale home.  Please contact me today if you are ready to discuss buying or selling with a professional.

I was showing properties last week to a buyer I am working with and the second home we visited was a beautiful vacant house in a neighborhood of other attractive homes.  It had been off and on the market for over one year and was now a bank-owned property.  Part of the marketing remarks for this house include: "Nice construction with minor repairs.  Ready to occupy."

When we opened the front door, we could smell moisture and mold.  I noticed hundreds of real estate broker's business cards on the ledge along the indoor stairs in the entry, and a cache of more business cards in the kitchen.  The NWMLS rule is that we must leave a business card in the property when we visit so that the owner will know we were there.  With so many hundreds of business cards everywhere, as well as old phone books and pizza coupons, I could tell the listing broker had not visited his listing in ages. 

We noticed a window open to vent the odor, and we observed that the carpeting had been stripped out of the living room.  My client and I headed downstairs to the finished basement and were horrified at what we saw.  I would have made a video if I hadn't been covering my nose and mouth.  The walls from floor to ceiling were covered in splotchy black mold and the carpeting had been ripped out.  It looked like a badly sponge-painted wall and almost resembled hair - it reminded me of the movie "The Ring."  Fortunately nobody whispered "Seven daaaaaays!" in my ear.

This photo from ateamresto.com is a very good example of what we saw.

This mold was in every room downstairs and as we went back up the stairs, I noticed more black mold behind the open door back to the living room.  My client wanted to see the top floor, so we made our way upstairs to the master bedroom on the third level.  As we walked up the stairs, I noticed mold on the decorative ledge above the entry, where one would display art or decorations.  The master bedroom had no carpeting and we saw more back mold on the walls.  We could barely breathe and opened the sliding glass door to walk out to the balcony.  The two of us gasped to catch our breath and we stood close to the house because the balcony did not appear to be steady.

As we looked down, we saw the backyard was full of 8 foot tall blooming weeds and it was incredibly clear this home was neglected.  The floor plan was gorgeous, though.  At one time, this was an amazing home!  We covered our faces as we left the balcony and went back into the master bedroom.  As we ran out of there I said, "Run, do not walk!" - it was getting really creepy at this house. 

I was very upset that there were NO warnings of black mold in the listing, nor were there notices on the property of this mold.  We definitely inhaled mold spores in those 5-8 very long minutes we spent inside and had I known this, I would have given my client the option to view it or not.  She would not have wanted to expose herself to that!  There is no way a bank would fund a loan on this property the way it is - my opinion is that it needs to be stripped down to the studs and rebuilt.

Within twenty minutes of being in this home, I observed my eyes were watery, throat was sore, stomach was upset and I started getting a headache.  The terrible headache lasted from last Friday evening until early Monday morning while I slept.  Other than those temporary symptoms, I am just fine now and my client has not complained of any problems.

I will now be keeping surgical face masks in my car in case this happens again - but it should NEVER have happened in the first place. *shudder*  If you have any signs of black mold in your house, I urge you to consult a mold specialist or call me - I have a contact.  Some properties with black mold should NOT be occupied and a specialist can determine if it's unsafe to stay in the home.

Images and examples of black mold (very similar to what we saw)

Information about the side effects of toxic mold exposure

A recent study from Clemson University found that landscaping improvements, if done wisely, can bring as much as 100 percent return on investment. 

There’s a good reason Americans are expected to spend as much as $40 billion improving their outdoor living spaces this year. In addition to increasing a home’s base value by as much as 11 percent, not to mention its aesthetic value, landscaping offers other benefits, including optimizing the use of outdoor space, lowering heating and cooling costs, reducing crime, and decreasing noise levels and unpleasant views.

Though the landscaping you choose to invest in is up to you and your family, being realistic about your ability and desire to maintain those improvements will determine how much bang you get for your buck. For instance, a water feature, while beautiful, can quickly turn messy and may not return as much as an investment as plants that are right for your micro-climate can.

Whatever improvements you intend to make to your yard, quality work will ensure that your family, as well as future homeowners, will have a lovely space to spend outdoors for years to come.  Contact me if you'd like the names and phone numbers of the landscapers I trust.

Yesterday after lunch, my husband and I noticed a warm buttery orange-yellow glow to everything outside.  It was as if we were wearing orange or yellow sunglasses!  This strange coloring lasted all day and as I asked friends about it, I learned this oddity was seen in Covington, Issaquah, Duvall, Bothell, Seattle and Silverdale.  Through Twitter, I asked KING 5 News about it and promptly received a reply.

Evonne, the person behind the tweets that day, messaged me to say: "It actually looks red to me - I think [it is caused by] smoke from E. Wash. fires. Have [a] message into weather team."  A half hour later she updated me: "From Jim Guy [weekend weather anchor]: an area of smoke from a fire in B.C. has drifted south. Our winds in low levels of atmosphere are from the north right now.  Smoke should be gone by tomorrow morning.  That's why the sun has a red glow to it.  I just posted pictures that someone uploaded to our website, you weren't the only one asking! :-) Evonne"

If I hadn't been suffering from such a dreadful tension headache and light-sensitivity, I surely would have taken the opportunity to photograph the sun itself and plants in that unusual lighting.  I'm disappointed I have no personal record of the red sun.  Fortunately, many locals took photos of the sun at various stages and submitted them to local news websites.  Some of the sunset photos I saw through Twitter were incredible!!  If you would like to read more about this unusual Mars-like day and see some amazing photos, I've provided some links below.  Now I feel like listening to a favorite song "Red Skies" by The Fixx (oddly, the video is black and white)!

Did you see the strange red-orange Seattle sun or notice the strange glow cast on everything?  I welcome your comments!

KING 5 news story about the haze, red sun and the cause for it

Several photos of the odd red glowing orb in the sky

KING 5's viewers share photos of the red Seattle sun

The pictures at this link will change over time but today it has several incredible red sun photos

Three red sun photos

    In sometimes-complicated relationships between residents and their condo or homeowner associations, neighborly love can go only so far.  When it comes to association decorum, the more you know about the CC&Rs (covenants, conditions and restrictions), the better. It’s the homeowner’s job to reinforce these governing rules and regulations, which can easily pit residents against association members. Here are a few hot-button issues that, according to Realty Times and CondoBenefits.com, are important to keep in mind:
    Pets. Many condominiums restrict the permitted size and number of pets, if they allow them at all. Check in with the head of the association before bringing any four-legged friends home, and take note of any restrictions — such as the proper way to clean up after your pets and whether they’re allowed to stay outside for any period of time.
    Parking. Take note that beyond your four walls, the land is not all yours — including your driveway. What are the parking restrictions for residents? For guests? Have the conversation before guests arrive to ensure that vehicles are out of fellow residents’ way. Keep in mind that many condos limit the number of cars to reflect the number of residents in the home.
    Maintenance. There are two areas to consider: What does the association take care of, and what are your responsibilities? Typically, condo owners can rely on workers hired through the condo association to help maintain the exterior of their home, including painting, roof repairs, lawn maintenance and trash collection. But depending on association rules, sweeping your porch by Tuesday afternoon each week or setting the trash on the curb (not the end of your driveway) before Monday morning might be mandatory. Find out the specifics to avoid future headaches.
    Fees. All associations have monthly or annual fees that residents must pay, but dig a little deeper and find out what happens if you accidentally break a rule. The last surprise you want is a letter stuck to your door telling you to pay up or risk eviction. Additionally, keep in mind if your building is due for a code upgrade — every five, 10 or 20 years, condo associations can charge residents large fees written into the minutiae of the CC&Rs.