I don't often endorse Zillow, but when I do, it's usually because I've just received another stellar cliet review.
Yes, you read that right… I know, it sounds crazy but the article below from The Tacoma News Tribune illustrates what's currently going on in this real estate market.
"Hold on, Steve… How are you able to work both sides like that, in what everyone says is such a super hot Seller's market?" I'm glad you asked because the answer is simple. Being a solid Real Estate Broker and pulling off ridiculous sh*t for my clients is what I do…It's a lifestyle, it's not a "gig" or even a "job"… I do this full time, and I've been doing it for almost 14 years through all time great markets & all time bad markets.
Lots of rookies, retirees, and job hoppers run to real estate when the newspaper says it's hot. With a few exceptions, those same people run out of the industry at the first sign of adversity. In fact, your 2nd Cousin, your favorite neighbor's friend, or a long lost buddy of yours from high school might have just got licensed. I'm sure you got the cheesy postcard. Just sayin'…
Seattle has been named by more than a few publications as one of America's hottest real estate markets. It's up there with San Francisco and New York when it comes to relocating home buyers. Because the Seattle market has become so tight, real estate in the South Puget Sound area has experienced a noticeable amount of "overflow".
By Rolf Boone
Tacoma News Tribune
The South Sound housing market roared all summer and now fall is shaping up to be pretty good, too, according to Northwest Multiple Listing Service data released Thursday.
That’s because the data showed a surprisingly strong October, particularly in Thurston County where sales of single-family residences shot up 36 percent from the same month a year ago.
Sales results weren’t that strong in Pierce County last month — sales rose nearly 6 percent in the past year — but the county still sold more than 1,100 single-family residences.
One-thousand or more single-family residences have sold every month in Pierce County since April, the data show.
Although Pierce County didn’t experience a double-digit increase in sales, the picture was brighter for median price, which rose 10.5 percent in the past year. In Thurston County, the median price rose 8.3 percent over the same period, the data show.
Bottom line: It remains a seller’s market.
“It’s a very good time to sell,” said Ken Anderson, managing broker and owner of Coldwell Banker Evergreen Olympic Realty, in a statement. “Owners who are eager to make the next move don’t have to wait six months or until spring to act.”
But prospective buyers, it appears, will still be forced to act quickly because inventory levels also remain low.
Pierce County months of inventory — the number of months it would take to exhaust the current supply of single-family residences for sale — was 2.44 months in October. In Thurston County, it was 2.55 months, the data show.
Six months of inventory is considered a balanced market for buyers and sellers.
In King County, meanwhile, months of inventory was 1.33 months and the median price, $480,000, up 7.3 percent in the past year, the data show.
A closer look at the South Sound single-family residence data:
▪ Pierce County: Sales rose 5.7 percent to 1,126 units from 1,065 units in October 2014. Median price rose 10.5 percent to $255,250 from $231,000 over the same period. Pending sales rose 15 percent to 1,465 units from 1,275 units.
▪ Thurston County: Sales rose 36 percent to 398 units from 292 units in October 2014. Median price rose 8.3 percent to $249,000 from $229,925. Pending sales rose 3.3 percent to 436 units from 422 units.
Read more here: LINK TO ARTICLE
Hi….Thanks for taking time to checkout this somewhat timely article I saw today on US News & World Report. I cut and pasted into my blog to save you from the super annoying video ads that kept running out of nowhere…Man, those vids bug me! Sorry, I digress….As I was saying,
this piece about why real estate is usually a safe "long term" bet spoke volumes. With the Stock Market craziness over the last few days, some
of my stockbroker friends have been sending out "Settle down…everything is OK" emails to clients. That seems like a good time to drop one of my own discussing the "safe" investment real estate can be. Feel free to call or email if you have questions or would like to discuss some long term investement strategy. There are quite a few solid investment properties available right now. You just have to get someone on your team that knows where to look….In case you're wondering…Yes, I know a guy.
Have a great week…Enjoy! SS
By Kristin McFarland – US News & World Report
Once you're on track with your financial goals – such as retirement contributions or repaying student loan debt – you may find yourself exploring real estate investments in lieu of the stock market. Buying real estate as an investment can be lucrative, but it's also cash-intensive and carries risks.
As you weigh your options, consider the following points in your analysis.
Risk versus expected returns. Whether putting cash into the market or purchasing real estate, you need to assess the risk versus expected returns. Traditional equity investments are much easier to analyze in this way. You have historical data, and although past performance is not indicative of future results, you have a bit more control over how much risk you're exposed to when deciding what amount to invest, the asset allocation and so on. Investing in single stocks versus an index fund is a calculated risk some are willing to take in search of higher expected returns.
The risks when buying real estate can be much harder to quantify. While there is data available, such as comparable home prices in the area and average rents, unpredictable changes in the market can be costly. When investing in the equity market, your risk of loss is limited to your initial investment. This isn't the case with real estate – you could wind up owing the bank more than the value of your property if the market experiences a downturn, or even due to changes that negatively impact a neighborhood.
For landlords, vacancy and repairs can eat into profits. Once you calculate your expected mortgage, operating costs, taxes and maintenance, how much can you expect to earn in net rental income? The answer for every investor will be different, but for some, the anticipated return will not be worth the risk and effort involved in owning real estate.
Required capital. Virtually anyone can invest in traditional equity assets. Some shares can be very inexpensive and you can often determine the volume as well. The same cannot be said for real estate. To purchase a property, you need to either come up with a down payment yourself, or enlist partners to invest with you. Typically, you need to put down 20 percent for a traditional mortgage, and although various programs can help you to put down a smaller percentage, there are fewer options for investment properties.
The initial cash outlay is what deters many would-be real estate investors, as you could easily spend upwards of $100,000 on a down payment and initial repairs. Furthermore, real estate requires additional capital to maintain the property, often not at the owner's behest. With stocks, you can make a one-time investment or purchase additional shares later, at your discretion.
Taxes. Another aspect to consider when deciding to invest in real estate or the stock market is taxes. If you own property, you will be required to pay property taxes every quarter, based on the assessed value as determined by the city or country. This is included in your mortgage payment. Whether you want to flip the property or hold onto it as a landlord, you will also have to pay tax on the sale or rental proceeds.
There are certain tax benefits unique to owning real estate as a landlord, however. The interest expense on your mortgage is tax deductible, along with operating expenses, property taxes, insurance and depreciation. Exactly how much you can deduct will likely depend on the rental income. In most situations, under the passive activity loss rules, you cannot write off deductions that are more than the rental income, which would generate a loss. Working with a CPA can be very helpful, particularly when investment properties or multiple residences are involved.
Stocks have tax consequences as well; first, you are required to pay a capital gains tax on any profits you made from selling stock. Furthermore, even without a sale, you are also required to pay a tax on any dividends you receive.
Inflation. Real estate can be a potential hedge against inflation as historically, rental rates and home prices rise with inflation. This provides a potential inflation hedge for both your rental income and sale of the property. Since your mortgage payments will not increase with inflation, it offers a benefit over time.
Traditional equity investments are not as directly linked to inflationary measures.
Although prices do tend to rise over time, the market cannot offer the same potential
inflation protection as real estate.
Time. Another factor to consider when choosing to invest in real estate or the stock market is to factor in your time as a cost during the analysis. While you do need to do some research when deciding which funds to buy, you can purchase traditional equity investments in a matter of moments. There is a lot more time required in buying and maintaining a property, as well as managing any improvements. As a Landlord, you
will be on call for the tenants as problems arise. Hiring a property manager is an option, but depending on the size of your property, could eliminate your profit margin.
With the right property, neighborhood location and cash reserves, investing in real estate can be a great option. Many investors are drawn to the ongoing "coupon" payment of rental income, and as a long-term strategy, the ultimate sale of the property can fund a large portion of their retirement. If you're considering whether you should invest in the equity market or buy an investment property, carefully weigh these factors and determine whether your expected income is worth the risk it carries, especially in light of other investment options.
Steve Sloboda – Managing Broker – Windermere Real Estate – Professional Partners
stevesloboda.com – 253-988-3120 – firstname.lastname@example.org
In the world of real estate marketing, new technology seems to come out every week and frankly, it can get a little overwhelming. I tend to let the fads show themselves before jumping 100% on board. However, in the case of this new 3D walkthrough technology, I'm all over it from the start.
You can tour a property like you're walking through it similar to Google Street View. Take a look at downstairs then upstairs, and then take a look upstairs again. Take a look at the floorplan….Then take a look like it's a dollhouse. All those options are there for the viewer.
It really is a remarkable tool that could change the way pictures are used for real estate listings. Take a look at my latest version here. Walk through the house and let me know what you think. I love to talk about the latest and greatest technology tools.
Pretty cool article in today's Tacoma News Tribune referencing our recently launched 2015 US Open Housing Website www.ChambersBayHousing.com. It was nice to see my comments were in context and there wasn't much in need of correction. That isn't always the case, so seeing it in place was refreshing. If you haven't seen the article it's linked HERE.
If you want to see the actual 2015 US Open at Chambers Bay House rental webpage we've setup click HERE. As always, feel free to call me direct if you have questions or just want to talk golf, sports, local news, etc. I'm not one to shy away from a phone call. 253-988-3120 is my number.
Thanks for taking time to read this.
If you're like me, making resolutions is something you try to do every year but they don't last. This year I decided to challenge myself on a few things rather than "make a resolution". The link below helped me come up with some fun challenges for myself and my family. Take a look and see if something catches your eye. Good luck and may 2014 be your best year ever!!!
Fall is upon us! Soon the leaves will be falling and the days will be shorter. The change of the seasons is always a good time to go over some home maintenance items that may need attention. Checklists are my favorite way to stay on top of these potential problems. Hopefully there are some things listed here that will be helpful to you.
– Inspect your furnace or heat pump to ensure that it can achieve maximum efficiency
– Check to make sure your thermostat works properly
– Schedule to have your chimney serviced and cleaned
– Clean your gutters and downspouts throughout the season
– Repair and window cracks or holes in weather stripping or caulking.
– Check your crawlspace for flooding after the first long rainfall
– Make sure you have new batteries in all flashlights and you have a specific place to keep them.
– Have your lawn irrigation system professionally drained and winterized
– Make sure your attic and crawlspaces have adequate insulation
– Clean out your bathroom fan
– Test all smoke and carbon monoxide detectors
– Make sure you have at least one fire extinguisher on each floor of the house and in the garage
– Make a fire escape plan for your house and take time to review it with all family members
– Disconnect garden hoses and drain water still in faucets
Paying attention to these items will help prevent costly and/or emergency repairs and will allow you piece of mind as the weather changes.
Steve Sloboda is a Managing Broker & Premier Associate with Windermere Real Estate in University Place, WA.
Want to Sell Your House This Fall?
If you're looking to sell your home this Fall you'll want to do everything you can to make your house look its best. Contrary to popular belief, Fall can actually be a great time to sell. Keep these tips in mind and you're likely to achieve positive results:
- Curb appeal. A home shopper's first impression is everything. The moment they pull up to the curb, they'll make an instant judgment. You'll want to be sure it's positive. You can begin by making sure leaves are raked, and your shrubs and bushes are pruned. Hang a festive fall wreath on your door.
- Make sure your walkway is free of leaves and debris.
- The Northwest is rainy…Be sure you have a good doormat so visitors can wipe their feet and not traipse mud and water through the house.
- Make sure gutters are free from debris and drain properly.
- Keep the house cozy. Entering a cold house could leave an unfavorable impression. Instead, set the thermostat at a comfortable temperature.
- Make sure the back yard and your roof aren't covered in leaves.
- Make sure your windows are sparkling clean.
- Keep wall colors neutral and light. A light yellow or beige will make the room feel cooler than a brick red or dark taupe.
- Let the light in. Open blinds and curtains so plenty of light can brighten up the home's interior.
- And, just like any other time of year, get rid of the clutter throughout your house. And get rid of any odors that might be a distraction.
University Place, WA, June 27, 2013:
Steve Sloboda of Windermere Real Estate – Professional Partners in University Place has closed University Place's first million dollar listing of 2013. Only the fifth residential property in University Place city limits to sell for more than a million dollars since 2008, this magnificent home located in the gated neighborhood of Augusta lasted only five days on the market.
"Homes like this with a rare combination of size, location, and elegance don't often become available" said Steve Sloboda. "In a real estate market like we're currently experiencing, even luxury homes can sell fast if they're priced right and marketed correctly."
The residence checks in at 5822 square feet with five bedrooms and five bathrooms. It's situated on a 1.5 acre lot above Chambers Creek. Features include a temperature controlled wine cellar, a master suite with separate sauna, a billiards room, and a commercial quality HVAC system. The new owners, also represented by Windermere, are already residents of University Place.
- Steve Sloboda is an award winning Residential Real Estate Broker with Windermere Real Estate – Professional Partners in University Place. He was voted "Best Real Estate Agent" by readers of South Sound Magazine and is one of only two Windermere Premier Associate Agents in Pierce County. The Windermere Premier Program is specialized to luxury homes priced $700,000 or higher.
- University Place is located in Pierce County, Washington. It's home to beautiful parks, highly rated schools, wonderful views, and Chambers Bay Golf Course – Host of the 2015 US Open Golf Tournament.
Steve Sloboda Windermere Real Estate – Professional Partners
2700 Bridgeport Way West, Suite F University Place, WA 98466
Kirkland, WA, January 17, 2013 – Members of Northwest Multiple Listing Service tallied 64,624 closed sales of single family homes and condominiums during 2012, improving on 2011’s volume by 8,332 transaction for a gain of nearly 15 percent.
Last year’s completed sales included 55,699 single family homes and 8,925 condominiums. Together, these sales were valued at more than $19.9 billion, which compares to the previous year’s total of around $16.7 billion (up nearly 19.6 percent).
Median prices area-wide increased by $10,000 (about 4.3 percent), rising from $235,000 to $245,000, although not all areas reported gains. Mason, Snohomish and King counties reported the healthiest jumps.
Prices on single family homes rose, while condo prices fell. The median price for single family homes that sold last year was $255,000 across the 21 counties, improving on the previous year by 8.5 percent. King County claimed the highest median prices for single family homes ($365,000), while the most affordably priced homes – based on 2012 median prices – were located in Pacific County ($111,000).
Condo prices declined about 2.7 percent, with the area-wide median price falling from $180,000 in 2011 to $175,200 for last year’s sales.
Inventory also shrunk from 2011 levels year as a result of stronger sales and fewer new listings. Over the course of the year, brokers added 10,071 fewer new listings to the Northwest MLS database when compared to 2011 for a drop of 9.9 percent.
In its annual statistical summary report for its 20,000-plus brokers, the multiple listing service examined various indicators of activity. Among the findings:
- Single family homes accounted for about 86 percent of the sales volume as measured by units, and nearly 90 percent of the dollar volume.
- About 40 percent of last year’s sales were for homes in King County.
- About half the homes that sold last year (48.8 percent) had 3 bedrooms, while more than three-fourths of condos (77 percent) had 2 or fewer bedrooms.
- Last year’s sales included 7,710 newly built single family homes and 930 newly built condominiums. Of this new construction component, new condos fetched a higher price ($331,888) than newly built single family homes, which had a median sales price of $299,950.
- Northwest MLS brokers reported 1,254 sales with prices of $1 million or more, including 1,116 single family homes and 138 condominiums. More than half the top-end homes were located in Eastside communities, including Bellevue, Kirkland, Mercer Island and Sammamish.
- The highest priced single family home in the MLS system that sold last year was on Mercer Island (with a selling price of $21.625 million), while the most expensive condo ($4.25 million) was a penthouse in a downtown Seattle high-rise.
- Northwest MLS members reported 93,778 pending sales (mutually accepted offers) during 2012. That marked an increase of about 15.6 percent from 2011 when members logged 81,109 pending sales. (Note: Not all pending sales become closed transactions. Failed home inspections, mortgage loan rejections, low appraisals and contract contingencies are among many factors that cause transactions to be cancelled.)
- The pace of sales as measured by “months supply” (an estimate of how long it would take for all inventory of active listings to sell at the current pace assuming no new inventory is added) showed a system-wide total of 3.15 months, which compares to a figure of 5.02 months for 2011. Based on this barometer, both King and Snohomish counties averaged less than two months of supply during 2012. (Analysts consider a supply of 3-to-6 months to be a balanced market, meaning the market favors neither buyers nor sellers.)
Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership includes more than 20,000 real estate brokers. The organization, based in Kirkland, Wash., currently serves 21 counties in Washington state.
Are you still with me? If so, Here's the complete report……All 37 pages of it. Read and enjoy! As always, I'm here if you'd like some of this information broken down into details. Don't hesitate to drop me a line….