I recently ran across an interesting tool put out by Forbes Magazine. It takes all of the national data concerning where from and where to people moved in 2008. Over 10 million people moved from one county to another. Here is the map looking at the Seattle in-bound and out-bound movers.

I found it interesting to look at different locations and see if there were more people moving in or moving out. Here is the link to the FORBES INTERACTIVE MIGRATION MAP.

UPDATED: June 30, 2010, Senate passes homebuyer tax credit. 

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UPDATED: As of June 29, 2010,  In a 409-5vote the House lawmakers have passed a standalone bill that would extend for three months Wednesday's deadline for closing on a home purchase in order to claim the federal homebuyer tax credit.

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UPDATED:  As of June 28, 2010 Congress has failed to pass the House bill that would have completed the extension.  Therefore, as of this time, the Home Buyer Tax Credit that looked automatic HAS NOT PASSED and the deadline has NOT been extended.

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Sorry, the three month extension for the Federal Home Buyer Tax Credit does not allow you to qualify if you have not already put a home under contract.  The extension only applies to the amount of time you have to close your transaction.

The previous deadlines required a Buyer to have mutual acceptance to purchase a home by April 30^th, 2010, that deadline stands.  After reaching mutual acceptance the home buyer had until June 30^th, 2010 to qualify, this deadline has been extended to September 30^th, 2010.

Many lenders were struggling to meet the June deadline and were asking for more time.  The extended timeline will also allow those Buyers that were working a purchasing a 'short sale'.  Often the wheels turn slowly when purchasing a 'short sale' property that must have approval from the Seller's bank.

Recently it was announced that the FHA loan program will be reducing allowable Seller contributions from 6% to 3%.   What is a Seller contribution?  A Seller contribution is when the seller of home agrees to contribute funds towards a Buyer's closing costs (or loan costs).  This can include discount points, appraisal fees, loan originations fees, etc.

There is also growing pressure to raise the minimum down payment from 3.5% to 5%.

Even with the coming changes, FHA will still be a fantastic loan option for first time buyers.   The program still allows gift funds from family, friend and/or employers.  The program also allows for state homebuyer assistance programs.

 If you are a first time homebuyer that was thinking of using the FHA program, now may be a good time to talk to a knowledgeable real estate professional or local lender.

The Seattle City Council is considering a bill that would make licensing of landlords mandatory in the city and sets standards for rental property inspections. Becasue of a certain state law regarding this type of law, Seattle must pass their version prior to June 10, 2010. If you want to infuence your city council representatives, you should contact them soon.

Bill 116857 begins with this statement:

WHEREAS, the City Council has determined substandard and unsanitary
residential buildings and dwelling units exist within the City of Seattle,
the physical condition of which violates State and local housing and
technical codes...

From Mayor Mike McGinn's office we have this statement:

Seattle's current system is complaint-based--we cannot do anything unless a tenant complains about bad conditions in rental housing. Some tenants won't complain if their landlord won't make repairs, others won't complain because they fear retaliation or a rent increase; others are unaware complaining to the City is even an option; and some won't call a government agency for help because of language or cultural barriers. Requiring inspections for all rental units levels the playing field and assures all tenants safe rental housing that, at a minimum, meets housing code standards.

We appreciate Councilmember Clark's work on this bill. Due to a law passed by the legislature this session, the law must be passed by June 10th or it cannot be passed at all. If you wish to weigh in on this legislation, contact information and a FAQ is below.

Here are the Frequntly Asked Questions:

FAQ

 

Why is rental inspection legislation being proposed?

 

The 2010 state legislature passed a bill limiting cities' ability to enact proactive rental housing inspection programs.  Such inspections are the method for cities to preemptively check that rental units are safe for all residents.  The bill said that cities that want to have such a rental inspection program can only require checking for a limited list of conditions that present a current danger to the health or safety of tenants.  Though this law sounds thorough, this precludes any inspections to show that rental housing complies with locally adopted housing codes that address the most basic of safety issues, including conditions not included on the list or those that may not yet endanger health or safety, but that will do so with further deterioration.

 

This same bill also imposes severe restrictions on any city in Washington that wants to proactively inspect rental housing, unless their program is adopted prior to June 10^th , 2010. This short timeline is why this law was introduced following the legislative session.

 

Is there a need for rental inspections?

 

Seattle has found units recently where:

 

·         A married couple was rented a crawl space with a dirt floor as their place to live

·         Six men were renting a unit where their toilet was located in the kitchen

·         A university student was rented a furnace room as a bedroom

 

All of these situations would NOT cause the unit to fail an inspection under the standards set by the new state law

 

Who is affected by unsafe rental units?

 

Everyone. 

 

People who cannot afford to pay much for rent deserve a safe unit.  Complaining to the city can lead to landlord retribution.  Additionally, communities who have affordable units should know the units are safe and maintained.

 

Do other cities in Washington have a proactive rental inspection program?

 

Yes, Pasco and Tukwila both have rental inspection programs.

 

Would someone lose their apartment if a violation is found?

 

Not in most cases.  The city's goal is to encourage landlords to fix a unit while still occupied.  Only when there is an immediate risk of potential harm to a tenant would anyone be required to move out.  For example, DPD is currently working with a large apartment complex in Ballard to allow the landlord to replace out of compliance baseboard heaters over time to minimize inconvenience to tenants and make the cost manageable for the landlord.

 

Would inspectors look for other violations or inquire about a renter's immigration status?

 

No, in most cases inspectors will be private contractors and are only looking for violations of the building or housing code. City inspectors do not inquire about immigration status and focus on the physical condition of the building and premises, not the lives of renters

 

Why does Seattle want landlords to be licensed?

 

Seattle wants rental housing to be safe and meet community standards.  Many residential tenants, as well as landlords, are unaware of the maintenance and safety standards required for rental housing in Seattle.  The licensing program gives the City a means to improve the quality of rental units because they will have to meet Seattle's maintenance and safety standards.  Under Seattle's rental standards, any conditions that endanger tenants are not allowed.   

 

Why are rental housing business licenses required for owners who may own only one rental unit?

 

Renting out housing units to tenants is a business. All other business activities in the City of Seattle are required to obtain business licenses, even if they have only one business location.  This would treat landlords the same as other business operators.

 

Why is an inspection needed for a license?

 

Seattle's current system is complaint-based - we cannot do anything unless a tenant complains about bad conditions in rental housing.  Some tenants won't complain if their landlord won't make repairs, others won't complain because they fear retaliation or a rent increase; others are unaware complaining to the City is even an option; and some won't call a government agency for help because of language or cultural barriers.  Requiring inspections for all rental units levels the playing field and assures tenants their rental units are safe and meet minimum housing code standards.

 

What does a Certificate of Compliance under this program mean?

 

The inspectors in this program will be inspecting for compliance with all of the items covered by Seattle's housing code, not just those conditions that might endanger life safety.  Therefore a certification of compliance assures the tenant that the unit being rented has been inspected and found to meet community housing standards.

 

How are Seattle's requirements different from those in the registration program provisions just authorized by the State Legislature?

 

The State legislation restricts local jurisdictions' ability to design their own inspection programs. Conditions in rental housing vary based on location, e.g., what you find in in rural eastern Washington can be very different from the rental housing found in a large city such as Seattle.  This proposal is tailored to the needs of the urban environment and the standards of the community in which these units are located. Under the state program, Seattle's options are severely limited:

·         Inspectors can inspect only for conditions that endanger health and safety, which mean many serious but non-life-threatening conditions will not be addressed.

·         Units in buildings opened within the last four years and where no violation has been reported will NEVER be required to undergo inspection.

·         Building owners dictate which units are inspected. This allows unscrupulous owners the opportunity to hide significant problems. By choosing to have only a small number of units in a multiunit building inspected, they can prevent inspectors from discovering significant problems in other units. 

 

How do I know the person inspecting my units is qualified?

This ordinance requires the inspectors under this program to be certified by one of several independent housing inspector organizations and to pass a test specific to Seattle's housing code.

 

What if a tenant doesn't want his or her unit inspected?

The landlord has a right to, and should, inspect his or her rental units at regular intervals.  With proper notice, the tenant is required to allow entry to the owner and an inspector for this purpose.

 

What happens if a landlord doesn't obtain a license?

A landlord who doesn't obtain a business license would be penalized with fines.  In rare cases, the City could also seek a court order requiring a landlord to obtain a license or get out of the business of rental housing. 

 

I think this bill would go a long way in helping to clean up some seriously degraded properties in the city. We have limited land space in Seattle. Nowhere to grow. Let's make every bit of our land area a plus when it comes to livability, whether its green space, housing, commercial or industrial. Whatever you think, you should let the city council know about it.

Time is running out for those of you looking to take advantage of the government's Homebuyer Tax Credit.  Of course a tax credit is not a reason to run out and buy a house.  However, if you have been planning on buying and now is the right time in your life to do so, you better hurry.   A binding sales contract must be signed by April 30, 2010, and the purchase completed by June 30, 2010 to qualify.

* A tax credit of up to $8,000 is available for First-Time Homebuyers.  

* A tax credit of up to $6,500 is available for Repeat Homebuyers who have owned a home for five consecutive years out of the prior eight years. 

* Homes priced above $800,000 are not eligible for either the first-time homebuyer tax credit or the repeat homebuyer tax credit. 

* Home purchases in 2010 may be claimed on an amended 2009 income tax return.  

Not sure about something?  Have further questions about the market, the tax credit or just home buying in general?  Reach out.  We are here to help.

According to an article in the February 5th Seattle Times, the average sales price of a Seattle home rose 3.8% in January compared to January of 2009. This is the first time the year over year figures have gone up in 2 years. Unfortunately, the suburbs and outlying areas' figures were down in the year to year comparison.

Brokers are hopeful that the upward trend will continue and spread to other areas as Spring arrives. Last month was the warmest January on record. The Tim was quoted in the article. He said, "Now that profit is no longer a given in people's minds when buying a home, buyers are realigning their priorities. They are less likely to 'drive till you qualify' when they realize that they probably won't be able to sell that far-flung home in a few years for tens or hundreds of thousands more than they paid and then move to the neighborhood they really wanted to live in, in the first place." Some people's glasses are always more than half empty.

The important thing to keep in mind is that the best time for you to buy or sell a home is when the events in your life start to tell you that you should. Trying to time what you do to some regional or national statistic does not necessarily make for a happy transaction. And you can't get better advice on this than calling a Lake and Company agent.

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.

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...

This just sent to me by:

Rick Hubbert
Senior Mortgage Consultant
On Q Financial
WA Lic. 510-LO-37044
425-643-7000 PhoneUS Senators Near Deal On Extending Home Buyer Tax Credit

By Jessica Holzer, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- U.S.Senators are nearing a deal on a measure to extend the first-time home buyer tax credit through next April and expand it to some buyers who already own a home.

Under the deal, certain "step up" buyers who have lived in their current home for at least five years would also qualify for the tax credit, according to lobbyists close to the negotiations.

The deal comes amid heavy housing industry pressure to extend the tax credit, which is set to expire Dec. 1 unless Congress acts. The measure, which proponents hope to offer as an amendment to legislation extending jobless benefits, could receive a Senate vote this week.

Under the measure, the credit would run through April 30 of next year, though sales contracts in force by that date would be eligible as long as the deal closes within 60 days. The credit would amount to 10% of the sales price, with a maximum of $7,290. The current credit has a cap of $8,000.

To qualify, first-time home buyers must make no more than $75,000 a year or $ 150,000 for couples. For step up borrowers, the income caps are $125,000 for individuals and $250,000 for couples.

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So, it looks to me like it might be a good time to start thinking about a move up if you've been in your home for 5 or more years, or selling that home in the $400,000-$700,000 range to a move up buyer.