Summer Update: Helpful Info for Buyers and Sellers

As I continue to put the finishing touches on a special summer edition of my quarterly newsletter Club Karma, I wanted to quickly share some updates with you.

"Home-Buyer 101" is back! This summer I will be teaming up with my preferred lender, Trevor Reese of Wells Fargo Home Mortgage, to host round table discussions for First-Time Home Buyers, (as well as repeat Purchasers), who are interested in learning more about the process of buying a home in today's market. FHA guidelines, declining values, record low rates, and the $8,000 tax credit have all changed the way the process works, so this will help empower potential buyers with useful information.

If you or anyone you know is interested in learning more about these topics, or would like to join us at a public, (or private), discussion, contact me anytime at (206) 799-2318 or tikirobs@yahoo.com. We will also discuss Seller strategies, so if you're planning on selling in the future, this discussion will benefit you as well. Now on to some stats:

For the third month in row, news continues to be positive from the Northwest Multiple Listing Service. Pending sales were up 21.5% in the Puget Sound from the same time 12 months ago, and up 3.5% from April's totals. This, combined with some long overdue summer-like weather has improved consumer confidence, continuing to fuel a positive shift in housing.

In addition, inventory is down about 20% from last year, which bodes well for eventual price stabilization in our area. As inventory continues to shrink and sales continue to increase, common sense tells us prices should soon begin to stabilize, (although short sales and foreclosures continue to effect property values...especially in South King County where they make up nearly 25% of the market).

On the national scene, most of the financial trends have been positive, (despite sobering unemployment numbers). I'll dive deeper into this in the newsletter, but the good news is that even though the unemployment rate continues to increase, (now above 9% nationally), the number of new jobless claims has declined for several weeks in a row. (Historically, this is a positive sign that the Recession is nearing an end). -Learn the historical significance of this in a previous Blog Post: May Market Update.

Finally, the $8,000 tax credit for 1st time homebuyers continues to spur sales in the $400,000 and under price range. Recently it was announced that FHA will soon make this credit available for buyers to use a down payment for their purchase. Details have yet to be released, but this announcement has excited many people who need down payment assistance, or who simply prefer to use the credit towards a purchase, rather than receive it after closing.

Let's hope the M's get back on track this week, and that the Huskies continue to sign more big name recruits.

More detailed information and summer fun are on the way in the newsletter...Aloha, Rob

May Market Update: Good News!

Below I've attached a quick Market Update courtesy of the Seattle Times. I welcome you to take a moment to read it as the April sales stats for our area have surged and this bodes well for all of us.

Pending sales were up 25% in King County, and 28% in Snohomish County. I mentioned in my last CK Light mailer that I was witnessing a market shift on a daily basis on our NWMLS site, and these stats clearly illustrate what I was seeing was real.

With affordability at an all-time high, interest rates at an all-time historical low, an $8,000 tax credit for First-Time Buyers, and an improving flow of credit for borrowers, these numbers are no fluke. Due to the normal ebb and flow of living, (marriages, divorces, health issues, empty nesters, job relocations, etc...), there has been a pent up demand for real estate for months, and at some point momentum was due to follow.

The Great Recission we've been experiencing led us to become the "Land of Do Nothing", and that wasn't going to last forever. As local sales numbers continue to improve, our area will have a better chance of seeing price stabilization soon after. We still have a large number of foreclosures and short sales that are dragging values down with them, but as we continue to clear those out of the system, things will continue to improve.

In other equally important news, this Friday the Labor Department will release its monthly job report. February and March unemployment numbers were both less than January's, and we hope April's stats continue that trend. In past recessions, a slow down in the rate of job losses has been a telling sign, as typically within a few months the economy began growing again.

*Important Stat: The Economic Cycle Research Institute data shows that in every previous downturn in the last 75 years, the economy has started to grow no more than 4 months after its pace of deterioration has slowed. Due to this information, they're forecasting this Great Recission will most likely be over by Labor Day.

We're not out of the woods yet, but it feels good to share some positive trends after a dark and challenging winter. Real estate is improving, the stock market is up 30% from its 2009 low earlier this year, summer's around the corner, the Mariners are in first place, and my girl Melissa returned from her rib injury to score a perfect 30 on Dancing With the Stars. Life is good. :)

To view the Seattle Times article I referenced above, Click Here

You're Invited: Child ID Safety Day Saturday April 25th 11-2pm

This Saturday from 11-2, my office is sponsoring "My ID Club" for children 16 and under. We'll provide Complimentary Laminated Photo / Fingerprint Safety ID Cards, snacks and activities for the kids, plus I've partnered with my friends at Gold's Gym and Desert Sun for some surprises for us adults, too.

Click on the poster above to learn more about this complimentary event. (It is printable).

Hope to see you there! Rob

Valuable Easter Update

Many of you will celebrate Easter tomorrow with loved ones, and I'm sure topics such as our economy, jobs, saving money, re-financing, real estate, etc... may come up.

There is a lot of confusion and misconceptions with how some of the recent Administration's Plans aimed at keeping people in their homes, and stabilizing national home values function. (And who qualifies for them).

To help eliminate the confusion, I've created a link on my website called "New In 2009". To learn the facts about the recently implemented plans, or to find out if you qualify for any of them, Click Here.

Quick Money Saving Examples:

Due to declining home values, many Americans have been unable to take advantage of today's lower mortgage rates, (recently 4.375%), to refinance their existing loan. Under the new Making Home Affordable Plan, 7-9 million homeowners will now be eligible to refinance.

In addition, the $8,000 First-Time Home Buyer Tax Credit, (an actual tax credit - not a deduction), is clearly defined on my site. This 2009 version does not require a buyer to pay the credit back, as the 2008 version did. Plus, if you buy in 2009 you have the option to file an amended 2008 1040-X tax return and collect the $8,000 credit this year.

My family and I wish you and your loved ones a Happy Easter. I encourage you to share the information on my website with family and friends, as saving money and keeping loved ones in their homes is something that we all care about.

Learn the facts! Visit: http://www.tikirobs.com/newin2009

Kids For Karma Holiday Update

Hola Amigos and Amigas,

I hope you all enjoyed the recent Thanksgiving Holiday with your famlies. My family and I were blessed to have been in Puerto Vallarta giving thanks to the simple things in life that we at times take for granted.

There's no CNN on the beach, so it was a welcome escape from the constant reminder of our nation's failing economy, and other pressing issues. No ESPN, so I also avoided a couple of horrible Husky and Seahawk games. No bickering Republicans and Democrats either, only serene "people" enjoying their families and the natural beauty of the sun, sand, and sea.

It's amazing how peaceful it can be to simply listen to the waves crash for a few days...it's good for the soul and has helped bring a calm to my body that has been lacking for months. It takes a toll on all of us to contstantly read and hear negativity in our lives.

As a result, I'm committed to bringing some positivity to people's lives, and need your help to do so. Next week, Nicole, Kelly and I will finally head out to get a start on our "Kids For Karma" food drive.

Due to cold's, flu's, sports, school, a vacation, etc...we postponed it until now, and as a result it's more important than ever. We'd love for you to help us collect as many food items, (canned, perishable, rice, pasta, etc...), and / or hygeine products as possible for struggling families in our area. As a father, I have tremendous empathy for families who need these items, and fully realize that life as we know it can change in an instant.

The girls and I will be deliverying 2009 Beach Calendars and Christmas cards while we're out, so even if you don't have anything to donate we look forward to seeing you.

Adios - Roberto

P.S. Next month, I will kick start 2009 with an information packed Club Karma Newsletter. It will feature valuable market updates and trends, but more importantly things we can all do to better deal with the constant rush of negativity and stresses in our lives. (As well as Halloween costume photos...photos are still welcome if you'd like be eligible to win a gift card!).

I've enjoyed helping people succeed while our local market was setting records the past several years, but I will take even more joy in helping others succeed in 2009 when we all need it the most.

Thank you for your support! :)

Good News Seattle...Finally!

It's no secret we've had a rough run up here in the N.W. the past several months. The national economic crisis affects all of us, our real estate market has struggled in several areas, the Mariners lost over 100 games, the Seahawks stink, the Huskies and Cougars should have redshirted their entire teams and taken the year off, and in 8 days our beloved Sonics open the NBA season in Oklahoma City, now known as the "Thunder".

Tired of the negativity...How about some good news for a change?

As your trusted real estate resource, it is my responsibilty to keep you informed on local market conditions. I'm glad to share the following article with you...it illustrates the top cities in the U.S. that are in the best shape for a real estate rebound, and guess who's at the top of the list?

To read the article, Click Here.

On a lighter note, this weekend will be an interesting and ironic one for fellow football fans. The Huskies take on Notre Dame, (Ty Willingham's former team), and the Hawks play the 49er's, (rumored to be Mike Holmgren's next stop after he takes a year off from coaching).

As a fan, it's odd in the middle of the season to watch both of your local teams play, with it public knowledge that both will have new coaches next year. Ty's a good man, and it's unfortunate things didn't progress and and work out as Husky fans had hoped. The buzz at Montlake is that Gary Pinkel would be the ideal choice to return the Dawgs to their glory days...stay tuned Husky fans.

Here's to better days for our local real estate market, and our sports teams!

Friday's "News You Can Use"

As a trusted real estate resource, and self-proclaimed "voice of reason" in a world that suddenly seems to be running out of money, I'll do my best to honor the pledge in my profile to keep these blogs as balanced as possible.

The Good News:

Home sales from around Western Washington during September rose 4.1 % from one year ago, marking the first increase our area has seen since February 2007. In King County, the news was even better, as pending sales were up 15% from one year ago.

The median price of a single family home in Seattle was $426,250, down 6.3% from the same time a year ago. Buyers began capitilizing on this "Once In A Decade Sale", as shown by the 30% increase in loan applications, and sales volumes in the area.

Recent price corrections here, (and along the west coast), have created affordable housing again, and tremendous opportunities for savvy buyers who thrive in such markets. Hard hit areas such as California, Nevada, and Arizona are now showing signs of life, as savvy buyers are regaining confidence in the opportunity to invest in their futures.

Despite all of the reports to the contrary, there are countless loans available available for buyers who can verfiy their income, have decent to good credit, and have at least 3% of the sales price available as a down payment. (That will jump to 3.5% on January 1, 2009).

History tells us the market won't stay down forever. Seattle home prices have grown 593% since 1979...they survived the isolated slumps of the 1980's and 1990's, and they'll survive this one, too.

For those of you who can afford it, this is a tremendous time to take advantage of historically low interest rates and strong inventory to buy your dream home, or invest in a rental property. Prices have declined, and rents have gone up...call me if you'd like to explore your options.

The Bad News:

We're all watching as the global financial markets continue to struggle. Here in America alone, it was reported yesterday that stocks were off an average of 40% from one year ago.

In light of the recent $700 Billion Dollar "Rescue Plan", many were hoping for some tangible signs that things would stabilize in a timely fashion. I have faith someone will get this mess turned around, but must admit the more I learn about Wall Street and how it functions, the more I want to puke.

I read yesterday that the execs at AIG just spent $440,000 on a lavish spa retreat right after they received their $85 billion dollar bailout from us: the taxpayers. To read the story, Click Here.

This easy-going Island Boy is sick of the greed, ego, and narcissism of these gutless individuals, and I'm not the only one. I read the CEO of Lehman Brothers, Dick Fuld, was recently punched in the face at his gym by a fed up employee. To read the story, Click Here.

Leave it to a fellow gym rat to do something the whole country wished they could do. These guys are not only messing with our money, they're messing with our kid's future. It's times like these that true leaders step up and make a difference, let's see who's up for the challenge.

Stay Tuned...Rob

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