Lake Chelan Real Estate Blog. Waterfront Manson Office! Lake Chelan Real Estate, Waterfront Homes and Vacation Home Specialists!

Life Isn’t Fair!! Especially in Real Estate…

It’s a fact.  Life isn’t fair.  And, it is a good thing it isn’t fair.  We have

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 i

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 i

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 sid

 

Home Sales are up, and Pricing is Stabilizing, What could go Wrong?

April 10, 2012 in Finance & Mortgage, Lake Chelan Real Estate, Lake Chelan Real Estate Market, The Real Estate Market

Home sales are picking up.  Prices are stabilizing and even rising in some cases.  The housing recovery is here?  There are some who are sounding an alarm.  They claim that the $26 billion dollar settlement with 5 major banks and 49 states attorney generals just popped the cork that is going to let the foreclosure genie back out to wreak havoc on the housing market.

If you consider the alarms being called at places like Reuters and ZeroHedge.com, there is a certain logic to their concerns.  Stan Humprhies, the chief economist at Zillow expects a resurgence in foreclosures this year, along with the current inventory of unsold, bank-owned homes to contribute to a 3.7 percent national decline in home prices before the market hits bottom in 2013.  He then expects the market to stay at the bottom until 2016.

We are well past the issues with the sub-prime market.  The current issues with mortgages are from people who have lost jobs or income in the economic downturn and can’t catch up with their house payments.  According to Amherst Securities, there are about 9.5 million homes at risk of default.   In February Amherst said it expected to see the uptick in foreclosures start to hit in March and April.

What really happens could depend on what the government does.  To many, the increased intensity in calls for the Federal Housing Finance Agency to allow write downs, or principal reductions on mortgages seems out of place with the market improving.  However, non-profits and the Housing and Urban Development (HUD) supported housing relief industry, are clamoring for an even further socialistic solution that would put the burden on taxpayers for the ultimate solution.

While options like short-sales have somewhat reduced the percentage of homes that go to foreclosure, the market discounts for those solutions still drive down home prices.  The current optimism is the housing market may be a seller’s best option to get their home sold for the next few years if the market nay sayers are correct.

Stay tuned, the end of the housing crisis is far from sure.

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Reasonably Priced Waterfront home sells quickly at Lake Chelan

April 9, 2012 in Buying your Lake Chelan home, Lake Chelan Real Estate, Lake Chelan Real Estate Market, Lake Chelan vacation homes, Lake Chelan Waterfront Homes for Sale

Just last week I emailed out a new listing for 11398 S Lakeshore Road to my clients looking for waterfront homes in its price range.   The two bedroom, two bathroom home on the south shore of Lake Chelan was listed at $499,900.  It has a deal with just 8 days time on market.

With Easter weekend and all, none of my clients were able to come and see it.  Today it is showing as contingent, with a deal in the hopper!

Well priced homes on Lake Chelan can sell quickly.  This particular home makes a great vacation cabin or vacation rental.

Another sign that interest is picking up is the sale of a home on the north shore of Lake Chelan for $2.2 million.  That is the highest price sale since 2009.  If you are looking for a waterfront property, be prepared to move quickly if you want one that is priced to move.

 

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Lake Chelan Home Sales are Up and Prices are Down in the First Quarter of 2012

April 6, 2012 in Lake Chelan Real Estate, Sold Lake Chelan Homes, The Real Estate Market

According to the Lake Chelan Residential Sales Summary, the number of homes sold in the first quarter is up 14% while prices are continuing to decline.

In March, there were 17 sales of homes closed, up by 30% from the 13 sales in March of 2011.  Prices dropped almost 22% from March of 2011, going from an average sale price of $300,561 to $234,494 this year.

In the first quarter of 2012, home sales have increased 14% over 2011 by the number of transactions.  Average sale price has dropped by nearly 19% over 2011 in the first quarter.

Community waterfront homes average sale price has declined by 42% and waterfront homes saw their average sale price decline by 32% over 2011 in the first quarter.  The Average Sale Price has declined 54% to $241,476 since the peak 1st quarter price of $528,729 in 2009.  The 1st quarter transactions have increased 113% to 32 sales since their lowest level of 15 sales in the 1st quarter of 2009.

Foreclosures are running 34% of all home sales transactions so far in 2012, continuing the downward pressure on average pricing.

 

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“Investing” in a Lake Chelan Home or Vacation Home

April 6, 2012 in Lake Chelan Investment/Development Property, Lake Chelan Real Estate

I am seeing it come out everywhere again!  Real estate folks just can’t seem to help themselves when they encourage folks to “invest” in a home.  I’ve seen “invest in Lake Chelan” being thrown about again recently.  I love Lake Chelan and encourage responsible home ownership here.  But, let’s get real about seeing your home as an investment.

Rental  and income properties can be an investment.  There are ways to invest in real estate.  Homes and properties can appreciate, or depreciate.  Do I want to discourage folks from buying homes?  Absolutely not!

But, many of the same folks who are still haven’t cleaned up their credit reports from their own real estate “investments” are out hocking homes as investment experts on others once again.   So, please understand, buying a vacation home as an investment is the wrong reason to buy.  Thinking of a home as an investment is part of what encouraged people to buy more home than they could afford, and to take more equity out of their home than was prudent.

There are other investments that historically have performed much better than homes, even if you don’t count the years of the housing bust!

But, that doesn’t mean there aren’t reasons to buy a home.  Owning a home can provide stability that can be valuable for a family.  A home can be far less expensive to own than to rent over time and make financial sense over renting.  A home you own you can make yours, and add to or change as you and your family’s lifestyle demands.  A vacation home is a great way to facilitate family gatherings and shared good times even when families move away from each other.

There are many reasons to buy and enjoy a home, but I still cringe when real estate agents are trying to push homes on people as “investments.”

 

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Puget Sound Home Sales Jump in March

April 6, 2012 in The Real Estate Market

If you are wondering what the sense is in the housing market this spring, here is what is happening in the NWMLS according to their latest press release:

Northwest MLS brokers reported 5,044 closed sales last month, improving on the year-ago total by nearly 10 percent. The overall median price on last month’s completed transactions was $225,000, which reflects a decrease of 7.4 percent from the year-ago median sales price of $242,925.

MLS Members reported 9,126 pending sales during March, a year-over-year increase of nearly 21 percent. That total surpassed the previous month by 1,503 transactions (up 19.7 percent). Coupled with shrinking inventory, attractive financing, and rising consumer confidence, the market is becoming more balanced, and even being described by some brokers as “frenzied.” Other brokers commented on the “remarkable opportunities for investing in the residential rental market.”

Brokers added 8,170 new listings last month — nearly 1,000 fewer than the number of pending sales, and about 1,100 fewer new listings than the same month a year ago. With those additions, the number of active listings at month end totaled 24,883 across the 21 counties in the Northwest MLS service area. Compared to a year ago, inventory is down 25.6 percent.

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Over $2 million waterfront home sale on Lake Chelan is highest price sale since 2009

April 6, 2012 in Criterion Properties Lake Chelan Real Estate, Lake Chelan Real Estate, Lake Chelan Real Estate Market, Lake Chelan Waterfront Homes for Sale

282 Hyacinth Road, a shy 2000 s.f., 3 bedroom, 2 bathroom Lake Chelan Waterfront home just sold for $2.2 million.  The home is 1979 vintage.  It had been on the market for at least 875 days, in a couple different listing configurations.  Since it was listed for $3.9 million at the beginning of the last listing, it sold for approximately 56% of list price.  Could it have sold for this or more a couple of years ago?  It is likely, if it had been priced correctly.

However, this sale is still over double the highest home sale price of any waterfront home last year and the highest price home sale since September of 2009.  I’ve been trying to tell anyone who would listen that this season could be the best season for sellers in years.  That doesn’t necessarily mean sellers will get sale prices from 2006, but that they could be better than they have been in years.  Here is one sale that demonstrates the point.  We’ll see how many other homes sell in this price range this year.

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Home Prices Up and Down in February

April 4, 2012 in Lake Chelan Real Estate, Lake Chelan Real Estate Market, The Real Estate Market

If you don’t include distressed home sales, month over month prices increased by 0.7% from January to February according to CoreLogic’s February Home Price Index.  The index also showed year over year prices show a decline of 0.8% compared to February of 2011.

National home prices, including distressed sales, declined on a year-over-year basis by 2.0 percent in February 2012 and by 0.8 percent compared to January 2012, the seventh consecutive monthly decline.  But, on the bright side the rate of price declines is slowing.

According to CoreLogic, non-distressed home prices have increased by 1% in the first two months of 2012.

With numbers going both directions, depending on how you slice them, there is result everyone can cheer.

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The Real Story on Proposition 1 and the Town Toyota Center

March 30, 2012 in Chelan What's Happening, General Interest, Government, Taxes

The push is on!  You can’t go anywhere without hearing mindless propaganda being spewed about Propositon 1, the sales tax increase for the Town Toyota Center.

You’re hearing from the groups, users and businesses that profit from the Town Toyota Center, who want you to vote for Proposition 1.  They want your money badly and are spending big money to get it.  But, they aren’t telling you the whole story.

There are concerned citizens who have put the other side of the story out there.  It is not a big money campaign.  At www.NoOnProp1.info you can find information that you won’t hear from the user groups and businesses who profit from the arena that are pushing Proposition 1.

Let’s think through, and do the math on Proposition 1.  Look here www.NoOnProp1.info:

  • Why the Town Toyota Center won’t close if Proposition 1 fails.
  • How the City of Wenatchee can pay for the Town Toyota Center all by themselves.
  • The Chicken Little scare tactics in the arguments of the supporters in their Why You Must Vote Yes page of their web site.
  • Wenatchee soundly rejected providing the type of support they are asking for from the region to other communities.  So much for “Regional” cooperation.
  • Why passage of Proposition 1 won’t stop the legal bills that supporters threaten
  • The likely reason local leaders have not shared their backup plan for the failure of Proposition 1

Join the conversation at www.NoOnProp1.info   Please vote, and take a few minutes to learn why to
VOTE NO on Proposition 1

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Urban Land Institute is predicting a housing recovery

March 30, 2012 in Lake Chelan Real Estate Market, The Real Estate Market

The Urban Land Institute released a forecast for housing based on the compilation of opinions of a panel of 38 housing economists and analysts.

The panel predicted an increase in single-family starts, from 428,600 in 2011 to a projected 800,000 in 2014.  Home prices are predicted to rise as soon as 2013 and prices would tick up 3.5% in 2014.

Of course, they note that many things could happen as they hedge their bets, from the election to changes in capital gains rates that could continue to hobble the housing market to perform below their prediction.

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Investment and Vacation Home Sales Soar!

March 29, 2012 in Buying your Lake Chelan home, Lake Chelan Real Estate, Lake Chelan Real Estate Market, Lake Chelan vacation homes, The Real Estate Market, Your Lake Chelan Home

The National Association of Realtors 2012 Investment and Vacation Home Buyers Survey shows investment-home sales surged an astounding 64.5 percent to 1.23 million last year from 749,000 in 2010. The survey covers both existing and new home sales.  Vacation-home sales rose 7.0 percent to 502,000 in 2011 from 469,000 in 2010.  Vacation home sales accounted for 11 percent of all home sales, up from 10 percent in 2010.

The chief economist for the NAR, Lawrency Yun put it this way: “During the past year investors have been swooping into the market to take advantage of bargain home prices,” he said. “Rising rental income easily beat cash sitting in banks as an added inducement. In addition, 41 percent of investment buyers purchased more than one property.”

All cash purchases ruled the day.  49 percent of investment buyers paid cash in 2011.  42 percent of vacation-home buyers bought with cash in 2011. Half of all investment home purchases in 2011 were distressed homes, as were 39 percent of vacation homes.

The median price for investment-homes  was $100,000 in 2011, up 6.4 percent from $94,000 in 2010.  For vacation homes,  the median price was $121,300, down 19.1 percent from $150,000 in 2010.

The median age of investment-home buyers in 2011 was 50, they earned $86,100 and bought a home that was  a median distance of 25 miles to their primary residence.  30 percent bought investment homes that were more than 100 miles away.

For vacation homes, the median vacation home buyer was also 50 years old, had a median income of $88,600 and purchased a property that was a median distance of 305 miles from their primary residence.  35 percent of vaction homes were purchased within 100 miles while 37 percent were more than 500 miles from the buyer’s residence.  Vacation home buyers plan to own their property for a median of 10 years.

Of vacation home buyers, eighty-two percent primarily bought to use the property themselves for vacations, or as a family retreat. Thirty percent plan to use the property as a primary residence in the future.  Only 22 percent plan to rent their vacation home to others.  42 percent of vacation homes were purchased in the south and 30 percent were in the western part of the U.S.

This is a very positive report for the Lake Chelan market if you have a vacation or investment type of home to sell.

 

 

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