December 2009 Archives

The just-released Case-Shiller Index for October shows Seattle values at 149.26, virtually unchanged for the seventh consecutive month, providing further evidence that home values have stabilized in the Seattle area.

After reaching a low of 149.03 in March, index values have hovered between 148.94 and 149.54, a fluctuation of less than one percent.

The index has a base value of 100 in January 2000; thus, the October index value of 149.26 translates into 49.26% appreciation rate since January 2000 for a typical home in the Seattle Metro Statistical Area, which includes King, Pierce, and Snohomish counties.

Remember last December? Want to?

* The economy was teetering on the brink of collapse.

* Real estate values splattered.

* The banking industry took a $700 billion bailout.

* General Motors and Chrysler thought they wouldn't make it through the end of 2008.

* Manufacturing was in the tank.

* The workforce was losing 500,000 jobs a month.

Everything isn't coming up roses, by any means. But the panic, at least, is over.

Consumer confidence is returning, Seattle real estate values have been level for six or seven months now, which is a relief. WaMu and Safeco may be memories, but the banks are starting to repay TARP. The auto industry is struggling, as is Boeing, but they can sing, "I'm Still Here."

We're not exactly partyin' like it's 1999. But there's plenty of good reasons to hope that 2010 will be better than 2009. Here's to the New Year!

Kirsten Grind has a fantastic new investigative report in the Puget Sound Business Journal.  In the article Kirsten questions the real reasons behind the closing of Washington Mutual.  It now appears that WAMU had enough liquid assets to survive.  So why did federal regulators close our locally grown institution so quickly?

Editors Note: In September, on the first anniversary of Washington Mutual's closure,the Puget Sound Business Journel reported that as executives fought to sell the bank during its final days, regulators undercut those efforts by signaling to bidders that the bank would soon be seized and sold at a much lower price. Now, further investigation reveals that, contrary to regulators' assertions at the time of the seizure, WaMu had sufficient liquidity and capital to meet regulatory standards and survive. Why, then, was it shuttered?

Read the article here...