Seattle residents will be participating in the 7th Annual Lake Union and Portage Bay Sweep on Saturday, May 9. Local Seattle volunteers, homeowners, businesses, and government agencies will gather to clean up the waterfront shorlines of our in-city waterways.
Last year, the Sweep netted over 3 tons of garbage, beautifying the landscape and cleaning up the waterfront habitat. The waterfront is covered by boaters in kayaks and small craft, and walking volunteers along the shoreline. Trash is then transferred to larger craft and delivered to Seattle Public Utilities for Disposal.
The event is organized by the Puget Soundkeeper Alliance, and is sponsored in part by the Floating Homes Association. For more information, contact Chris Wilke of the Puget Soundkeeper Alliance at 206-297-7002.
Monday, March 30, 2009
Saturday, March 28, 2009
Seattle's Lake Union Loop
The Cheshiahud Lake Union Loop was ceremonially dedicated by Seattle Mayor Greg Nickels and residents of the Lake Union waterfront. There is a lot of work to be done, but the plans for improved access and recreation around the lake will benefit Seattle as a whole.
The trail, named for a Native American chief who led a tribe in the area, should create access to Lake Union for local residents.
The master plan is to connect Gasworks Park along with dozens of other pocket parks and street ends that surround the lake. This should create better walking, biking, and jogging trails for the residents of Wallingford, Eastlake, South Lake Union, Montlake, and Westlake. It will probably also attract more visitors from the rest of the city for recreation, similar to Green Lake's draw.
The trail, named for a Native American chief who led a tribe in the area, should create access to Lake Union for local residents.
The master plan is to connect Gasworks Park along with dozens of other pocket parks and street ends that surround the lake. This should create better walking, biking, and jogging trails for the residents of Wallingford, Eastlake, South Lake Union, Montlake, and Westlake. It will probably also attract more visitors from the rest of the city for recreation, similar to Green Lake's draw.
Friday, March 27, 2009
Rates Drop Again - 4.85% Interest
Interest rates on 30 year mortgages dropped to 4.85% this week, a 38 year low according to Freddie Mac.
After the Fed's announcement of plans to buy $750B in MBSs and $300MM in Treasuries, the mortgage markets responded with the big drop. On top of the $8000 tax credit for first time buyers and lowered prices over the last few years, incentives for buyers are everywhere right now.
After the Fed's announcement of plans to buy $750B in MBSs and $300MM in Treasuries, the mortgage markets responded with the big drop. On top of the $8000 tax credit for first time buyers and lowered prices over the last few years, incentives for buyers are everywhere right now.
Thursday, March 26, 2009
Toxic Chinese Drywall
Another Chinese product being imported here with dangerous levels of chemicals. This time it affects our industry.
Toxic Chinese drywall is creating disastrous conditions for home builders and buyers in the Southeast. Some developments in Florida have seen sales drop off a cliff after begin tagged as "Chinese drywall hot spots". While it's a relatively new topic, more of the country needs to be aware of it.
Some Chinese drywall imported since 2001 has high levels of sulfuric compounds. These compounds release sulfur gases when they come in contact with moisture or moist air. This is obviously a big issue for homes in the Southeast with humid, hot weather.
The sulfur gives off the smell of rotten eggs, which is annoying if not nauseating to the buyers. Even worse, it corrodes air conditiong coils and electrical wiring. Homeowners with fairly new homes have had breakdowns in the mechanical systems of their homes far more quickly than should be expected. More recently, inspectors have seen even galvanized nails and building materials quickly showing early signs of corrosion that will lead to further damage down the road.
While most of the damage thusfar has been restricted to the Southeast, according to the Homeowners Consumer Center, "we always expected to find very heavy concentrations of the Chinese drywall in California, Arizona, Las Vegas, the Pacific Northwest and the Mountain West, because most of the product was shipped through the ports of Long Beach, Oakland, and/or Seattle/Tacoma."
Just because it isn't humid in your city, doesn't mean that there won't be long-term problems with this drywall in your local community. There are specialty inspectors now that look for the signs of Chinese drywall. By going in attics or unfinished spaces, they can sometimes find markings on the back of the drywall signifying its origin. If that's not possible, they can take samples and test.
Don't be alarmed, just be aware. This is an issue that's not going to go away quickly.
Toxic Chinese drywall is creating disastrous conditions for home builders and buyers in the Southeast. Some developments in Florida have seen sales drop off a cliff after begin tagged as "Chinese drywall hot spots". While it's a relatively new topic, more of the country needs to be aware of it.
Some Chinese drywall imported since 2001 has high levels of sulfuric compounds. These compounds release sulfur gases when they come in contact with moisture or moist air. This is obviously a big issue for homes in the Southeast with humid, hot weather.
The sulfur gives off the smell of rotten eggs, which is annoying if not nauseating to the buyers. Even worse, it corrodes air conditiong coils and electrical wiring. Homeowners with fairly new homes have had breakdowns in the mechanical systems of their homes far more quickly than should be expected. More recently, inspectors have seen even galvanized nails and building materials quickly showing early signs of corrosion that will lead to further damage down the road.
While most of the damage thusfar has been restricted to the Southeast, according to the Homeowners Consumer Center, "we always expected to find very heavy concentrations of the Chinese drywall in California, Arizona, Las Vegas, the Pacific Northwest and the Mountain West, because most of the product was shipped through the ports of Long Beach, Oakland, and/or Seattle/Tacoma."
Just because it isn't humid in your city, doesn't mean that there won't be long-term problems with this drywall in your local community. There are specialty inspectors now that look for the signs of Chinese drywall. By going in attics or unfinished spaces, they can sometimes find markings on the back of the drywall signifying its origin. If that's not possible, they can take samples and test.
Don't be alarmed, just be aware. This is an issue that's not going to go away quickly.
Tuesday, March 24, 2009
First time buyer - time to move
The Seattle Times had a great report this weekend on the advantages of buying for first time home buyers. The market conditions are perfect in Seattle for a first time buyer to get a great deal on a home.
- Interest Rates are Historically low
- Mortgage payments will therefore be more affordable
- Lower payments make it easier for a buyer to qualify for a mortgage
- Income Tax Credit of $8,000 is available to first time buyers
- Prices in Seattle and King County are down a bit, and it's still a buyer's market to negotiate
- The job market and real estate market in Seattle are still among the strongest in the country
If a buyer is waiting for the right time, it may make sense to jump off the fence now. No one can predict where prices will be next year, but historically, we know these rates probably won't be lower any time soon. An increase of 1% in interest rates can erase a 15% savings on price in today's market. The $8,000 tax credit is only good through November 30 of this year. If it's a good investment, an affordable payment, and fits your desired lifestyle, now is the time to buy.
King County Sales up 8%
Some good news for the local housing market. With Washington State residential sales up 5% from January to February, we had an even bigger bump in King County at 8%. There is almost always a bump in sales as we head towards spring, but these numbers look significantly better than a normal cyclical trend.
The fastest-moving homes are, not surprisingly, $300k-$350k, closely followed by $350k to $400k homes. In Seattle and much of King County, these are starter homes mainly purchased by first time home buyers. Many of these sales can be attributed to the low interest rates available, as well as the tax credit for these first time buyers.
The fastest-moving homes are, not surprisingly, $300k-$350k, closely followed by $350k to $400k homes. In Seattle and much of King County, these are starter homes mainly purchased by first time home buyers. Many of these sales can be attributed to the low interest rates available, as well as the tax credit for these first time buyers.
Wednesday, March 18, 2009
Nutria and the Seattle Waterfront
Nutria are non-native animals to the Seattle area, and they have quickly gotten a bad reputation as having a negative impact on the waterfront real estate and natural environmental habitats of our lake and river communities. They were imported from other countries decades ago, and have recently resurfaced in our area without any natural predators.
You can recognize Nutria a few ways - if they're swimming, their long round tail will be up out of the water (muskrats and beavers swim with their flattened tails). The muzzles of the nutria have white hair and white whiskers, unlike the other water animals. The nutria are about 2 feet in length, and sightings should be reported to the US Department of Agriculture's state office at 360-753-9884
You can recognize Nutria a few ways - if they're swimming, their long round tail will be up out of the water (muskrats and beavers swim with their flattened tails). The muzzles of the nutria have white hair and white whiskers, unlike the other water animals. The nutria are about 2 feet in length, and sightings should be reported to the US Department of Agriculture's state office at 360-753-9884
Real Estate owners and environmentalists agree - we need to corral these critters quickly.
More info on Nutria:
Destruction of marshland habitat for fish, birds, and other wildlife can be extreme where large populations of nutria thrive, for they are voracious consumers of marsh vegetation. Eating 25% of their weight daily in the form of roots, rhizomes, and plant stems, nutria carve up floating vegetation in their quest for food and burrow into shorelines to build their dens. Their appetite for wetland vegetation destroys fish habitat, pushes out muskrats, and ravages the nesting areas of ducks, grebes, and other water birds. Their burrowing undercuts sidewalks and roadways along Lake Washington Boulevard and is currently carving up the marshland near the Montlake Playfield in the south end of Portage Bay. Individuals who have encountered nutria feeding on their shoreside gardens report that they are not afraid of humans, and a recent article by Lisa Stiffler of the Seattle P-I states that they are also unafraid of pets and may carry disease affecting both humans and domestic animals.
Tuesday, March 17, 2009
New Construction for First Time Buyers?
One bright spot in real estate news: Apparently, new construction of homes has taken a big jump in February. Although the market is still tough for builders, it looks like the numbers are starting to turn around a bit.
New home construction rose 22% from January to February, and applications for building permits increased by 3%. Many builders still see a tough road ahead, but housing inventories have started to fall in many major metropolitan areas recently, making it a better time to bring new construction homes to market.
For buyers, new construction homes are a great way to take advantage of the real estate market right now. Builders need to move inventory and get onto their next projects. Many new construction homes are listed a large discounts right now, and may offer more value relative to resale homes.
With the $8,000 tax credit available to first time buyers and historically-low interest rates, it's really a "perfect storm" for first time buyers to buy a new construction home that they could not have afforded one or two years ago.
New home construction rose 22% from January to February, and applications for building permits increased by 3%. Many builders still see a tough road ahead, but housing inventories have started to fall in many major metropolitan areas recently, making it a better time to bring new construction homes to market.
For buyers, new construction homes are a great way to take advantage of the real estate market right now. Builders need to move inventory and get onto their next projects. Many new construction homes are listed a large discounts right now, and may offer more value relative to resale homes.
With the $8,000 tax credit available to first time buyers and historically-low interest rates, it's really a "perfect storm" for first time buyers to buy a new construction home that they could not have afforded one or two years ago.
Saturday, March 14, 2009
Separation of Brokers and Banks
A new law passed by the Federal Government has created a permanent ban on banks getting into the real estate brokerage and management business. At stake was banks' desire to house mortgage lending and a real estate brokerage under the same umbrella, creating a one-stop-shop for real estate transactions.
The new law probably makes sense in the long-term, although there are some efficiencies that may have been created by a few of these companies. Think about ending the countless phone calls and faxes between lenders, agents, and buyers/sellers to transfer documentation. These large companies could surely have saved us some time, some paperwork, and just plain old paper.
Despite those possibilities, the consumer safeguards in this law win out, and there is a better competitive marketplace when more companies are competing for your dollar. With the scrutiny placed on banking in our current financial state, it doesn't make sense to allow greater control of these transactions by one entity.
The new law probably makes sense in the long-term, although there are some efficiencies that may have been created by a few of these companies. Think about ending the countless phone calls and faxes between lenders, agents, and buyers/sellers to transfer documentation. These large companies could surely have saved us some time, some paperwork, and just plain old paper.
Despite those possibilities, the consumer safeguards in this law win out, and there is a better competitive marketplace when more companies are competing for your dollar. With the scrutiny placed on banking in our current financial state, it doesn't make sense to allow greater control of these transactions by one entity.
Thursday, March 12, 2009
Cramdowns on the way, Investments on the way down
Mortgage "cramdowns" are being pushed in government legislation as we speak. For borrowers who are in Chapter 13 bankrupcty, a cramdown is when a bankruptcy judge is allowed to lower the actual balance of the insolvent borrower's mortgage.
This is the peak of a number of homeowner-rescue tactics. While there have been plenty of options for borrowers to have their interest rates lowered or late penalties removed from their loans, never before has the government allowed a judge to choose the balance of a loan and force a bank to accept it.
Have a 401k? IRA? Pension? Plan on retiring any time soon? You should be worried. Much of the current turmoil in the markets is based on financial institutions' instability. Cramdowns will amplify those problems, and the markets will suffer increasingly. When banks' assets are on the line, so are yours.
There isn't a lot of sympathy for banks right now, but the banks are losing their shirts, too. Have you seen the stock prices, layoffs, and government takeovers? This has all happened before the actual instrument of these banks' assets becomes dependent on bankruptcy judges' opinions of "appropriateness".
We all want to be sympathetic to those who are having trouble paying their mortgages, and our government is putting out a lot of options for those folks. Cramdowns are only going to bring down a lot more people at a faster pace.
Tuesday, March 10, 2009
Seattle Waterfront - Highway 99 Options
Seattle residents have been waiting a long time for a decision on their waterfront transportation. Options have ranged from surface streets to a new viaduct, a tunnel, or even monorail service. The fact is, the current Highway 99 is a relic waiting to crumble, and something has to happen.
Apparently, we've finally gotten the political guts to make a decision and move forward. Although most residents of Seattle know that a new vote is always imminent, it looks like plans will move forward for the tunnel option. This wasn't my top preference, but I feel that many of us are happy to have an answer. No sixth vote, no more committee bickering. Let's build this new Seattle waterfront and keep our city moving.
Above is a sketch of a possible layout for new parks where the current Highway 99 viaduct runs. It's expensive, and the costs can definitely be debated. The end product definitely looks appealing.
Floating Homes - Non-conforming use in Seattle
The Seattle Floating Home Association had an interesting meeting with the DPD (Department of Planning and Development) in Seattle recently. The city has taken the thoughtful step of meeting houseboat/floating home owners at their location to discuss the real estate needs of owners and planners.
Although it's hard to find a consensus between regulators and "the regulated", this kind of waterfront on-site meeting seemed to really enhance both groups' ability to explain their goals and challenges in a specific, clear setting. You can read the details at the link below, but the specifics of the real estate construction and waterfront lifestyle make for very unique conversations with a planning commission. It's very helpful for the owners to be involved, input their knowledge, and see the city's concerns at the same time.
Seattle Floating Homes Meeting with Seattle Department of Planning and Development
Although it's hard to find a consensus between regulators and "the regulated", this kind of waterfront on-site meeting seemed to really enhance both groups' ability to explain their goals and challenges in a specific, clear setting. You can read the details at the link below, but the specifics of the real estate construction and waterfront lifestyle make for very unique conversations with a planning commission. It's very helpful for the owners to be involved, input their knowledge, and see the city's concerns at the same time.
Seattle Floating Homes Meeting with Seattle Department of Planning and Development
Sunday, March 8, 2009
Best Management Practices for Houseboats and Floating Homes in Seattle
Living in a houseboat or floating home has its own unique set of rules. Jumping into the lifestyle by buying real estate on the water can be daunting on your own, but there resources to give you a head start.
Bob and Molly Cadranell created this set of Best Management practices that are a great primer for those new to the community. They've been reviewed by the City of Seattle, Department of Ecology, and many other agencies.
From the simplest tasks to intricacies that would only be apparent to a seasoned owner, here are a few interesting bits:
Bob and Molly Cadranell created this set of Best Management practices that are a great primer for those new to the community. They've been reviewed by the City of Seattle, Department of Ecology, and many other agencies.
From the simplest tasks to intricacies that would only be apparent to a seasoned owner, here are a few interesting bits:
- When prepping the house or deck for paint, stain or varnish, tarp your work area to trap any paint chips or dust, thus preventing anything from falling into the lake.
- Consider vacuuming decks instead of sweeping to minimize dirt from entering the lake.
- If using fertilizers on your plants, do not overwater so that the toxins spill over into the lake.
- Use absorbent pads under engine or in bilge when changing oil
See the full document at the Seattle Floating Homes Association web site
Thursday, March 5, 2009
Mortgage Delinquencies 12%? Take a deep breath...
Foreclosures and a slow economy are taking their toll on the real estate market, there's no denying it. Let's all take a deep breath when we read the headline statistics about mortgage delinquencies, though.
The latest screamers are these:12% of mortgages are behind at least 30 days. 48% of subprime loans are behind on payments.
Those numbers are bad, but don't fall into the trap of thinking that everyone is falling behind on their payments. Statistics have a funny way of being manipulated to their user's benefit (including mine).
40% of homes in America have no mortgage. They are owned free and clear. This would mean that only 7% of homeowners are behind on their mortgages.
Subprime loans only account for about 15-20% of all mortgages (depending on who you believe). If half of them are behind on payments (7%-10% of all mortgages), these late subprime borrowers would only account for 4-6% of all homeowners (removing free and clear homes again).
So 7% of homeowners are behind, and most of those are the 4-6% that are subprime. That doesn't sound as bad, does it? Unemployment numbers are higher than that.
These numbers are not perfect, and neither is the road ahead for our market. Just take statistics with a grain of salt.
The latest screamers are these:12% of mortgages are behind at least 30 days. 48% of subprime loans are behind on payments.
Those numbers are bad, but don't fall into the trap of thinking that everyone is falling behind on their payments. Statistics have a funny way of being manipulated to their user's benefit (including mine).
40% of homes in America have no mortgage. They are owned free and clear. This would mean that only 7% of homeowners are behind on their mortgages.
Subprime loans only account for about 15-20% of all mortgages (depending on who you believe). If half of them are behind on payments (7%-10% of all mortgages), these late subprime borrowers would only account for 4-6% of all homeowners (removing free and clear homes again).
So 7% of homeowners are behind, and most of those are the 4-6% that are subprime. That doesn't sound as bad, does it? Unemployment numbers are higher than that.
These numbers are not perfect, and neither is the road ahead for our market. Just take statistics with a grain of salt.
A Mortgage Bailout for Responsible Homeowners? Maybe...
The mortgage bailout and foreclosure rescue from the federal government has elicited a lot of emotion. Many homeowners have complained that they have been struggling to pay their mortgage on time and that they shouldn't have to bail out those that have stopped paying.
Help *may* be on the way. As new details of the Housing Affordability and Stabiliy Plan emerge, it seems that homeowners who are current on their mortgage will be eligible for the plan. If their mortgage is with FNMA or FHMC, and they are less than 5% "under water", they can qualify. They do, however, have to show an imminent hardship that will make it hard for them to continue paying on time.
The big questions: What will constitute a "hardship", and what percentage of this money will actually be available to homeowners who are current? Would it make more sense to reward those who are still current, as they are the least likely to walk away from their homes in one year from now? Would it create too much of a subjective process and a mountain of paperwork to determine who is truly challenged financially? Surely it's easier to say "This person isn't paying on time, they qualify." That doesn't mean it makes the most sense.
No question, there will be a landslide of people applying. Details of the plan are ever-changing, so you can keep your fingers crossed, but don't get too excited yet.
Help *may* be on the way. As new details of the Housing Affordability and Stabiliy Plan emerge, it seems that homeowners who are current on their mortgage will be eligible for the plan. If their mortgage is with FNMA or FHMC, and they are less than 5% "under water", they can qualify. They do, however, have to show an imminent hardship that will make it hard for them to continue paying on time.
The big questions: What will constitute a "hardship", and what percentage of this money will actually be available to homeowners who are current? Would it make more sense to reward those who are still current, as they are the least likely to walk away from their homes in one year from now? Would it create too much of a subjective process and a mountain of paperwork to determine who is truly challenged financially? Surely it's easier to say "This person isn't paying on time, they qualify." That doesn't mean it makes the most sense.
No question, there will be a landslide of people applying. Details of the plan are ever-changing, so you can keep your fingers crossed, but don't get too excited yet.
Wednesday, March 4, 2009
South Lake Union Development
There are big plans for the waterfront in South Lake Union. Development and planning meetings have shown plans for 400 foot towers right on the water line. The city's hopes for new job creation in the area are pitted against floating home owners on Lake Union.
The owners of houseboats and floating homes are concerned that the views from the lake will be blocked by towering buildings and take away from the value of their homes. Views of the city and Space Needle could be obscured. This may seem like a small concern to some, but these views are some of these residents' primary reason for buying waterfront real estate. There are also concerns about open space and parking issues created by the new development.
The city of Seattle does try to incorporate the local neighborhood's requests when possible in zoning and planning meetings. If the neighbors don't speak up, though, the construction equipment starts rolling in. If you're not actively participating in your neighborhood's planning, your "view" might not be your own for long.
Seattle Floating Homes Association's response to the issue:
http://seattlefloatinghomes.org/node/849
The owners of houseboats and floating homes are concerned that the views from the lake will be blocked by towering buildings and take away from the value of their homes. Views of the city and Space Needle could be obscured. This may seem like a small concern to some, but these views are some of these residents' primary reason for buying waterfront real estate. There are also concerns about open space and parking issues created by the new development.
The city of Seattle does try to incorporate the local neighborhood's requests when possible in zoning and planning meetings. If the neighbors don't speak up, though, the construction equipment starts rolling in. If you're not actively participating in your neighborhood's planning, your "view" might not be your own for long.
Seattle Floating Homes Association's response to the issue:
http://seattlefloatinghomes.org/node/849
Monday, March 2, 2009
Sunset Hill - Seattle's Ballard waterfront
Sunset Hill is the Western-most section of the Ballard neighborhood of Seattle. The neighborhood has expansive views of the Puget Sound, the ship canal, and Ballard locks. Bordered by North Beach in the North, this small section of land includes the Shilshole Marina and Golden Gardens Park on the water. Boat moorage is expansive on the waterfront, and access to all major waterways and downtown Seattle is a short trip.
Magnolia - waterfront on the Puget Sound
The Magnolia neighborhood of Seattle is a peninsula on the Puget Sound, just Northwest of downtown Seattle. with Queen Anne just to the west, separated by the valley of Interbay, Magnolia is a quick drive to downtown Seattle. The feel of the neighborhood is secluded and quiet. There is a small "downtown" core of shops and restaurants, but most streets in Magnolia are placid, residential byways with stately older homes with water views and ample lots. The Elliot Bay Marina is just one of the many boat moorage spots on the Puget Sound.
Madison Park - Seattle's Lake Washington Homes
Madison Park is located on the Northeast end of Capitol Hill, on the Lake Washington shoreline. The upscale homes and condos in the neighborhood are centered around a quaint, clean downtown with shops, restaurants, and a waterfront park. Some of the best water view condos in Seattle are on the lake in Madison Park. While the commute to downtown Seattle is fairly short, there are no major traffic arterials through the neighborhood, so the neighborhood is quiet and great for walking. Access to the Eastside is quickly accessible through the Arboretum and Montlake.
Madison Park Waterfront Real Estate - Homes For Sale
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