New, Faster Mowers cut mowing time!

There are some new things happening with lawnmowers that speed up that weekly job.  John Deere and Husqvarna have new, high-speed riding mowers.  But my favorite is Toro’s new TimeMaster walk behind mower with a 30 inch cutting deck!

John Deere introduced their Z665 EZTrak zero-turning mower that can zoom along at a mowing speed of 9 miles per hour with a 60-inch mower deck. It retails for $5999.  Husqvarna has their new “Fast Tractor” that has a 48 inch cutting deck and is supposed to be able to mow at 7 to 8 miles per hour.  Jimmie Johnson of Nascar fame is promoting it for Husqvarna.

The Wall Street Journal calls this new breed “Super Mowers.”  I see mowers with some clever design. When I see really cool products for your home (like the Nest Thermostat), I like to mention them.

My favorite new mower is the Toro TimeMasterr.  It is a walk behind mower that uses two blades, allowing a 30  inch cutting width, rather than the 20 or 21 inch that is typical of walk behind mowers.  The ergonomics are sweet too, its handle folds easily for storage and it has what appears to be a great system so the mower can easily be controlled to go your walking speed.

Since our nearly 25 year old Honda walk-behind still starts on the first pull and I can hardly quit using something that still works, it may be another 25 years before I experience one of these fast mowers.  But, that Toro sure looks cool!

 

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Superior Court Orders Three Fingers at Lake Chelan REMOVED!

Courtesy of GoLakeChelan.com

GoLakeChelan.com broke the story that Superior Court Judge Leslie Allen ruled on May 30th that the Three Fingers Fills be removed!  The 6 page decision claims the fills violate the doctrine of public trust and the court is writing an order for their removal.

I expect the decision will be appealed, and this is not yet the end of this rather long and involved story of Goodfellow’s Three Fingers.  Apparently there was good reason why nothing has happened on those fills for all of these years!

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Check our our New Lake Chelan Property Search!

We have an exclusive new Lake Chelan Property Search that has better pictures for more efficient browsing.  You can quickly sort properties from photos and narrow your search.

Of course, you can continue to use our “Classic Lake Chelan MLS Search” as well.

Let us know what you think!

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Lake Chelan’s busy season in real estate kicked off with lots of good news

It is almost Memorial Day weekend where the Lake Chelan Valley sees its population skyrocket until Labor Day.  This is the busiest time of the year for area businesses, including real estate.

Inventories are down, as well as listings.  Even though interest is up from buyers, only 267 homes have been listed this year as compared to 292 in 2012.

Buyers haven’t been excited in purchasing a home the last few years when they were concerned that the price might continue to drop.  That concern has been replaced in many cases with worry that they might miss the low prices that have been available due to rising home prices.  The news media is spurring on the recent buyer confidence.

The Wall Street Journal reports rising prices and sales point to a market rebound:

Existing-home sales were up 3.4% from March to a seasonally adjusted annual rate of 4.62 million, the National Association of Realtors trade group said Tuesday. If the pace holds, 2012 could be the strongest year for home sales since 2007, just after the housing boom. The median home price, meanwhile, increased 10.1% from a year earlier to $177,400, the strongest year-to-year gain since January 2006. – WSJ

According to the Census Bureau, new home sales are up as well.

sales of new single-family houses in April 2012 were at a seasonally adjusted annual rate of 343,000, up 3.3 percent for the month and 9.9 percent for the year, further signaling improvements in one of the hardest hit housing sectors. Improvement in any portion of the housing market is welcome news as various indicators show signs of health after years of being battered.

The median sales price of new homes sold in April hit $235,700, marking a 4.9 increase over the past year, with an average sales price of $282,600 in April nationally. The month ended with 146,000 new homes for sale, representing a 5.1 month supply at the current sales rate, outperforming resale homes with a 6.6 month supply.  – Agbeat.com

Commercial real estate is improving as well.  While multifamily rental properties have done well for awhile, with many former homeowners entering the rental market, other sectors are improving as well according to Lawrence Yun, the chief economist for the National Association of Realtors:

The pattern shows gradually declining commercial vacancy rates, with consequential but generally modest rent growth.  Although we need even stronger job growth, by far the greatest impact of job creation is in multifamily housing, where newly formed households striking out on their own have increased demand for apartment rentals – this is the sector with the lowest vacancy rates and strongest rent growth, which is attracting many investors.

Interest rates have recently hit new record lows although qualifying for a mortgage requires better credit and stronger financials in the past.

May 2012 Commercial Real Estate Quarterly Market Survey

But, there are still concerns.  A recent report from Zillow shows that far more homeowners are underwater, with their home being worth less than their mortgage, than previously thought.  Zillow claims 16 million, or 31.4% of all, homeowners with a mortgage are likely underwater.  They owe $1.2 trillion more than the value of their homes!

It should be a busy summer!

 

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Sellers raised asking prices in April

According to Realtor.com, median list prices rose by 0.7% in April from March to the highest level in nearly one year, even as the number of homes listed for sale stood at levels down nearly 19% from a year ago.  Also reported is a rise in median asking prices  in 72 markets, no change in 14 markets, and 60 markets showed a decline in median prices.   Compared to the previous month, only 5 markets showed a decline.

Homes across the country are also staying on the market for less time.  The median age of inventory listed for sale in April stood at 84 days, down by 11.6% from one year ago.

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Carbon Monoxide detectors required of home and building sellers

Senate Bill 6472 takes effect on June 7, 2012 and requires  sellers in the State of Washington to install carbon monoxide detectors on any homes and buildings sold in Washington.

The legislature has amended the state’s real estate seller disclosure forms to ensure that the responsibility for carbon 10 monoxide alarms is that of the seller of a home or building.

Real estate brokers were given a pass on liability for carbon monoxide detectors:

Real estate brokers licensed under chapter 18.85 RCW shall not be liable in any civil, administrative, or other proceeding for the failure of any seller or other property owner to comply with the requirements of this section or rules adopted by the building code council.

The seller disclosure statements are being modified.  Here are the two new questions that are on Form 17 Commercial after June 7th in Section 5 (Systems and Fixtures):

E. Is the property equipped with carbon monoxide alarms? (Note: Pursuant to RCW 19.27.530, Seller must equip the residence with carbon monoxide alarms as required by the state building code.)
F. Is the property equipped with smoke alarms?

Sellers will be on notice that hey must equip a residence being sold with working carbon monoxide detectors and will have signed a statement to the effect.

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Time to buy a home now, or not. Both sides of the issue!

The Wall Street Journal has a great posting with eloquent experts stating the arguments for both sides of the time to buy a home, or not question.

Mr. Eric Lascelles believes it is “the mother of all buyer’s markets, and won’t last forever.”  He sees record low interest rates and the 34% drop in prices since the peak as reasons that now is the time to buy.  He notes investors have ramped their purchases 64% across 2011.  Further, home affordability as measured by the monthly income it takes to buy a home, is an astonishing 1/3 below historical norms.  Mr. Lascelles is the chief economist at money-management firm RBC Global Asset Management Inc.

Mr. A. Gary Shilling has a different view.  He believes you should not buy a house unless you are willing to lose 20% or its value or more over the next several years.  He believes the problem is excess inventory.  Mr. Shilling makes the case that it will take  22% drop to return median single-family house prices to the trend identified by Robert Shiller of Yale University that stretches back to the 1890s and prevailed until the housing bubble began.  That trend line adjusts for inflation and the tendency for houses to get bigger over time.  Inventories of homes are in excess of 2 million homes to high without including future foreclosures.  Mr. Shilling is President of an economic consulting firm.

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Fannie Mae won’t need an additional bailout this quarter for the first time since 2008!

Fanne Mae announced it won’t need a taxpayer bailout this quarter because it actually made a profit.  This is the first time that has occurred for the mortgage giant since the government took over Fannie Mae in 2008.

For the first quarter, Fannie Mae reported a net income of $2.7 billion compared to a $6.5 billion loss they reported in the first quarter of 2011.

If Fannie Mae made a profit, maybe things are really starting to stabilize in the housing industry.

 

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State Regulators to Monitor and Fine those using too much Energy in their new homes!

Washington State Senate Bill 5854, which was passed in 2009, required the State Building Code Council to adopt state energy codes that require homes and buildings constructed from 2013 through 2031 to incrementally move towards a 70 percent reduction in energy use by 2031.  To accomplish that goal, owners of homes built after 2012 might be required to disclose their utility bills to regulatory agencies who would issue fines, require the purchase of carbon credits and/or require building upgrades if they were using what was deemed as too much energy.

The proposed rules would require every new building to certify the amount of energy the building would use to receive a Certificate of Occupancy.  Then, for the next several years, the occupant has to turn over their utility records to local building officials who would have to certify whether the occupant is consuming energy within the certified levels.  If the occupant uses too much, the building official would be required to fine the building owner with a tax requirement.  That owner would have to purchase CO2 credits to offset the added amount of energy use.

But, it doesn’t stop there (as if that weren’t enough), wood burning equipment of all types would be banned in new construction, even high efficiency wood stoves.

If you want to know who to blame, SB 5854 was passed strictly along party lines, with two conservative democrats voting no along with all republicans.

As far as what is happening now, a citizen group is trying to write fule to comply with SB5854.  The job is not going to be easy and it will likely be corrupted by special interests:

Banning wood stoves means that all new construction would be obligated to use only electricity or natural gas.  Who as a monopoly provides both services?  By obtaining state standards for energy efficiency measures, it relieves utilities of the cost to pay for utility efficiency incentives.  Utility stockholders benefit as the utilities are able to avoid expensive investments in traditional generation sources which, historically have diluted stockholder equity.  Finally, these requirements will assure that utilities can eventually petition regulators for earnings on speculative energy resources such as wind, geothermal or solar installations.  Utilities win, stockholders win and new homeowners lose.

This is a pretty good gimmick if it is tolerated by the public.   The Building Code Council is now faced with a workload on the energy issue that is unprecedented.  The Energy TAG is scheduled to meet all day, every Thursday, from now through June.  They are even considering additional meetings in an attempt to get through the petition of 171 amendments.  If members of the TAG fail to show up and stay for the meetings, they will be removed from the ability to vote on issues.  This means that experts who are paid to attend such meetings, like utility representative, environmental representatives or people from the Department of Commerce, will always be in attendance to forward their agenda.  For Building Officials who must take a day from work, business owners or others who are donating their time, the chances are that they will ultimately be denied a voice in the Energy TAG process. – wabo.org

The public should not just take this from their state government.  If you plan on having any discussions with your legislators or legislative candidates this election year, this would be a good topic to discuss.

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Corelogic reports the bottom of housing appears to be here

The Corelogic Housing Price Index (HPI) shows a .6% decrease in year to year pricing in March and a .6% increase from February.  Excluding distressed sales, home prices increased .9% in March from one year ago.  With changes fluctuating at fractions of a percent, the indication is the U.S. housing market has found its bottom for the time being.

Dr. Mark Fleming, the chief economist for CoreLogic said it this way “This spring the housing market is responding to an improving balance between real estate supply and demand which is causing stabilization in house prices.  Although this has been the case in each of the last two years, the difference this year is that stabilization is occurring without the support of tax credits and in spite of a declining share of REO sales.”

 

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