Monday, January 31, 2011

Realtors Represent Private Property Interests

February 20, 2011 was Hill Day in Olympia and Realtors from across Washington State descended on the Capitol to talk with every Legislator and Senator in every district. Obviously, our mission was to discuss relevant issues pertaining to the interests of our organization. But, just as importantly, private property rights impacting every home or commercial property owner throughout the state was a major concern. In our general meeting Dr. Raha, the state’s economist and chief forecaster, spoke about what he saw in terms of the overall state economy. Although Microsoft, Boeing and new car sales had improved significantly, home sales were still lagging and he expected that would be the case throughout much of 2011. He also said that he didn’t expect interest rates to remain as low as they currently are beyond the end of this year. However, they could realistically change at almost any time. Obviously I was honored to be included in the group that attended from my office.

Market Update

The information here is simply intended to provide a weekly activity report from the Canterwood community in Gig Harbor, Washington. Closed sales though offer the only true barometer of value.

While an overview of the entire market indicates an increase in activity, home prices have not stabilized and price remains the primary focus of most buyers. Interest rates are still low, yet jumbo loans remain difficult and tax the determination of most high end home buyers. Despite gas and commodity price increases, indicating a loss of the dollar’s value, the cost of gas and commodities are still excluded in the calculation of inflation. Consequently, inflation is still reported at low levels. On the street, it’s a mixed bag.

I’m even seeing sellers, some who have either had their homes on the market or would eventually like to move, switch gears and, instead of talking about what they want or think their property is worth, talk about what it actually costs to continue owning an asset which is certainly worth less today than it was 18 months or a year ago. Some of those holding costs include, mortgage payments, utilities, yard and home maintenance costs, homeowner dues and travel expenses. For some, the cost of unexpected maintenance projects is especially frightening.

On a positive note, in the past week, three pending Canterwood sales have been reported. These include:

5622 Old Stump is reported as pending. It is a bank owned property and has only been on the market since January 6th, 2011. A previous mortgage in the amount of $1M was recorded in 2007. The 2010 assessed value of the property is $689,100.

The home at 12207 49th is also reported as pending. It is currently listed at $639,000 and has been on the market 545 days. It is not reported as a short sale or being bank owned. It was last purchased in 2000 for $560,000 and has a 2010 assessed value of $638,500. It was initially put on the market in April, 2007, at $888,000. It is not a short sale or bank owned.

4611 Saddleback, listed at $1.125M, also has a pending sale. It has been on the market 451 days and was originally listed at $1.3M. The 2010 assessed value is $884,300. It was last purchased in 2007 for $1.325M. While it doesn’t appear to be bank owned, whether it’s a short sale is unknown.

Other activities reported include:

The home at 5307 Old Stump has been relisted with a different agent at $439,900. The new listing reflects a $10,000 reduction from the previous listing. Initially it was listed in February of 2010 at $599,000. It was last purchased in 2006 for $500,000 and is not a short sale or bank owned. The 2010 assessed value is reported at $365,100.

The listing at 13716 49th is now priced at $554,000, a reduction of $10,000. It was initially listed last August for $569,000. It currently is neither a short sale nor bank owned. It was last purchased in 2007 for $599,950 and has a 2010 assessed value $467,400.