Budding signs of recovery continued last month. The encouraging news arrived in a number of closely followed economic indicators. On Thursday, October 29, the U.S. Commerce Department stated the country's recession has officially ended, at least as leading data indicates.
U.S. GDP expanded 3.5 percent in the third quarter, the first period of quarterly growth in more than a year. A strong bounce in housing sales activity in September, mainly due to first-time buyers' efforts to claim the tax credit before it expires for November 30, pointed to stabilization in the housing sector. And more good news this week as an extension and expansion to the Home Buyer Tax Credit made its way through a congressional vote and has officially been signed into law by the President.
The recovery will continue to develop in small steps. The Recent Nobel Prize winner in economics, Paul Krugman, praised the progress, stating the most severe part of the crisis has now subsided and "the end of the world has been postponed." Moving forward, trade imbalances and mounting levels of government debt, as well as high levels of unemployment, will need to be addressed. For now, governments including the United States will continue to provide stimulus support until the major economies are firmly on solid ground.
The Housing Market
Existing Home Sales - Up over 9%
Existing home sales bounced back strongly in September with much of the increase being attributed to the rush of first-time buyers trying to claim the tax credit before the end of this month. Sales jumped 9.4 percent to 5.57 million units over August sales of 5.09 million, marking five gains in the past six months and is 9.2 percent above levels seen last year. Sales activity is at the highest level since July 2007 when sales hit 5.73 million.
Median Home Price
Existing-home price was $174,900 in September, 6 percent higher from its low in January but still 8.5 percent below September 2008. Distressed properties, which accounted for 29 percent of all transactions in September, continue to hold down the median price, as they typically sell for 15-20 percent less than traditional homes.
Inventory - Lowest in 2.5 years
The current housing supply is the lowest seen in two and a half years. Total housing inventory at the end of September fell 7.5 percent to 3.63 million existing homes available for sale, representing an 7.8-month supply at the current sales pace, down 16.1 percent from August's 9.3-month supply. Compared to a year ago, there are now 15 percent fewer homes on the market. According to Lawrence Yun, NAR chief economist, "If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year."
Mortgage Rates - Close to 5%
Rates for 30-year fixed loans continue to hover around 5 percent. While having risen above the ultra-low 4.78 percent reached in the spring, rates remain at attractive levels for people looking to buy a home or refinance. As an economic recovery is underway and concerns over inflation come back, experts expect mortgage rates will likely go up.
Affordability - Very favorable
Historically high affordability conditions coupled with the first-time buyer tax credit are boosting home sales. Home buyers continue to benefit from low home prices as well as unprecedented mortgage rates. "Potential first-time buyers can take heart in that affordability conditions this year are the highest on record dating back to 1970," according to NAR President Charles McMillan. So far this year, the home price-to-income ratio has fallen well below the historical average of 25 percent. The ratio now stands at 15 percent.
Sources: National Association of Realtors, Freddie Mac
For more information on any specific areas in Pierce county contact our team.
***Government Action***
First-Time Home Buyer Tax Extended and Expanded
As the deadline for the First-Time Homebuyer Tax Credit crept closer, it became a clear priority on the Hill. An extended and expanded home buyer tax credit is a part of a larger bill that also extends unemployment benefits. This bill was signed by President Obamaon Friday, November 6. All new provisions became effective on November 7.
The bill essentially remains intact but has a handful of important changes:
Existing homeowners who lived in their previous home for 5 out of the last 8 yearswill be eligible for up to a $6,500 credit.
The income limits have been bumped up $50,000 to $125,000 for individuals and up $75,000 to $225,000 for couples.
Those who qualify will have until the end of April, 2010 to find their new home and have a signed contract on it. They will have until the end of June to close.
Military, foreign services and intelligence employees with extended active service may qualify for a few special provisions, including an extra year to take advantage and they may not need to repay the credit if they move during the first three years.
The home purcahsed must be less than $800,000
Must be over the age of 18 and not classified as a dependant for tax purposes to qualify.
**To find out more about this program and or down payment assistance programs that may be able to be used right along with the tax credit, contact Team Momentum, 253 353 2662 or www.teammomentumrealestate.com
Sources: Bloomberg News, The Washington Post, U.S. Government Printing Office
Higher Loan Limits Extended
With the onset of the financial crisis, credit markets that were not backed or insured by the government froze. Mortgages that are backed by the government and purchased by Fannie Mae, Freddie Mac, and Ginnie Mae are called "conforming loans". One type of non-conforming loan is the "jumbo loan". Traditionally, jumbo loans are mortgages that are greater than $417,000.
Since the crisis began, tightened lending practices have made this type of loan harder to secure. Jumbo loans currently come with substantially higher costs from larger down payments and higher interest rates. This has led to a 70% decrease in jumbo loan origination since 2007 and a greater inventory of homes in jumbo territory.
As part of the stimulus bill earlier this year, the conforming loan limits were raised to 125% of median home prices to a limit of $729,750 for 2009 and were set to expire at the end of the year. On October 29, the increased loan limits were extended through 2010. This means it will be easier for sellers whose homes fall in this category and cheaper for buyers to secure financing next year, compared to if the government let the limits expire.
Sources: Inman News, National Association of Realtors
Topics For Buyers & Sellers
Peace of Mind Home Buyers Worried about High Unemployment
The average duration that unemployed workers are out of a job is currently more than six months, near the highest level since the bureau started tracking the figure in 1948. The total number of unemployed people stands at 15.1 million. 5.4 million of those have been looking for work for more than 27 weeks.
With incentives in the housing market, including very low interest rates, a large selection of homes for sale in many markets, and highly affordable home prices, concerns about the job market and possible unemployment have held back many potential buyers.
Here are a few suggestions for potential buyers and current homeowners:
Buy well within your means. Although home buyers often want to buy a home they can see themselves growing into, stay within a conservative percentage of what you currently make. If you had to take a part-time instead of a full-time job, if your salary or hours were cut, or if you become a one-income household instead of two, make sure your monthly payment would still be attainable.
Put down a large down payment. Not only will your monthly payments be less, but the equity from the down payment creates a buffer zone. If you put 20% down when you purchase your home and home prices in the area drop 5%, you still have at least 15% equity in your home. For sellers, this built-up equity provides flexibility-should you need to sell in a hurry.
Have an emergency fund. Experts advise everyone, not just homeowners, to have an emergency fund of at least six months' worth of expenses. This fund should be saved in a liquid account, like a money market or savings account, for easy access if needed quickly. With the average time to find a new job currently above six months, seven or more months of savings is a good goal.
Pay down other debts. Lowering or eliminating debt service is always a good move and is particularly wise in the current job climate. If you were without a job and income, lower fixed monthly expenses help ease your financial burden and stretch the money in your emergency fund.
Sources: Bureau of Labor Statistics, CNNMoney.com, etc.
I have been blessed to be at a company that has a true go give spirit. At Keller Williams I have help when I need it, information at my fingertips and am very proud of who I work with.
However....this goes a step further when I apply it to my team mates. I am blessed and privileged to be part of a team that includes Sue Redkey. I met Sue 5 years ago when she was hired part time to do admin work on the team I belonged to at the time. ( not a job I felt was her strength, but one she did a good job at) I loved working with her from the start.
When I went out on my own and began my own team I was blessed to have Sue join me, first as admin and later as a full fledged buyer's representative. This is Sue's real strength and I must say she is one of the best buyer's agents out there, especially when she is dealing in her specialities of first time home buyers and downsizers. I am so very proud to work with her.
Because I know how well she cares for her clients and her integrity and commitment to doing a good job I was not at all surprized to get a forwarded email from our broker that he received from one of Sue's clients today, I do not have the client's permission to print their name yet, so I am just going to share the body of the letter.
Dear Mr Bozich
I would just like to convey how pleased I am with the support and help I received from one of your finest real estate agents, Sue Redkey. She is so nice and helpful, while being highly competent and professional. She went above and beyond to help me as I've considered the different real estate markets of interest to me. I've since received a job offer elsewhere and will be moving there. Sue kindly took the extra initiative to help me find a qualified and nice agent in that area. Furthermore, the Home Buyers product, which Sue provided to me has been a tremendous asset in determining the value of different properties in the area. I just want to say thank you again.
Sincerely,
M
I am so grateful to be affiliated with some one who cares like she does. If you would like to have a free subscription to the home buyer's product she speaks about, would like a referal to an agent in your area if you are out of our team's area, or if you are in our area and would like to work with a superior buyer's agent who really cares, please contact me so I can put you in touch with Sue Redkey!
This is a restaurant review written by our team's intern/assistant Lani Panama, she was there last week and LOVED it. I am impressed with the restaurant as well, not just because of their food and service, but because they have supported our Keller Williams office with our fund raising efforts for Relay for Life!
It's got plenty of parking and is close to the Tacoma Mall so easy to get to from most everywhere. I love how close it is to our Keller Wiliams office!
Adriatic Grill Restaurant- By Lani Panama- Photos by Anna Matsunaga
I enjoy dining at the Adriatic Grill Restaurant near Tacoma Mall. The atmosphere is very warm and inviting. There is great customer service and the staff is very welcoming. The food is fabulous!
If you like Italian food like I do, then this is the place to go! I would highly recommend this restaurant. The prices are comparable to nearby restaurants, but the food is far more excellent! This restaurant is also kid friendly, with a goody bag to keep kids busy, as well as dough to play with while waiting for the food to arrive.
It doesn't take long to wait on the food, as the food always arrives quickly. The bread, balsamic, and olive oil they offer upon arrival is TO DIE FOR! And my personal favorite, their Chicken Fettuccine Alfredo is delicious, as well as there iced beverages. I can't wait to go back!!!
--Lani Panama
For more information, go to: www.adriaticgrill.com or call for reservations: 253)475-6000
Adriatic Grill is located at: 4201 South Steele Street, Tacoma, WA 98409
I love to make a hot breakfast for the family, but often don't have time for something elaborate. This recipe is fast and is always a hit, plus, I can make it ahead of time as well and serve another day.
4 egg
1.5 cups of milk ( I usually sour with a little lemon or apple cider vinegar)
4 pinches of sea salt
3/4 cup or so of whole grain flour of your choice
--butter or olive oil for the pan
--Optional-
If serving with something sweet add any of the following ( one or more your choice)
Several dashes of cinnamon
1 teaspoon of vanilla
1/2 teaspoon rum flavoring or almond flavoring.
A little bit of stevia
A little bit of real maple syrup
If serving with something savory-
Several dashes of coriander
Several dashes of chili powder
A couple of pinches of cumin and tumric
To Make-
Heat up a skillet over medium heat while you mix ingredients-
In a mixing bowl mix milk, eggs and any other liquid ingredients you are adding.
Once mixed well add in dry ingredients until everything is smooth ( be sure it is very thin batter) Check skillet to see if it is hot enough by dropping a little tiny bit of water from your fingers, the skillet is the proper heat when the droplets "dance".
Quickly add a little butter to the skillet and then use just under a 1/4 cup measure for a small skillet and a little over a 1/4 cup for a large one, quickly pour batter and immediately lift and rotate skillet so that the batter is very thin and covers the whole skillet. Wait a few moments while the crepe cooks through and then flip over for a moment and cook and then remove to a plate in your oven on warm while your cook the rest or to a waiting plate of a hungry friend, spouse or child. Continue until you have finished all the batter. ( Warning you may have to start over I usually do as everyone wants more)
They are great plain, but usually you will want to fill them with something and roll them up.
Things to serve them with....
yogurt of any sort
fruit of any sort ( soft, so either fresh fruit like strawberries or blueberries, or baked fruit like apples)
sour cream
steamed veggies
cheese sauce
cream sauce
syrup
apple sauce
use your imagination!
Also good rolled around sausages ( according to my son, I have not tried so cannot personally endorse)
I like to make these up ahead of time ( although this is hard to do since everyone wants them right off the stove) They make nice snacks and quick lunches and break fasts.
From Anna Matsunaga, Team Momentum, Keller Williams Realty Tacoma
253 353 2662
I wrote this in response to a question on Mamasource posed by a member, then I got to thinking it might be helpful to others so I am posting it as a blog as well. I feel so blessed to have a job where I do not have to be making these choices myself ( leaving baby) :) Any way hope some of you out there find it helpful....
I am prefacing this advice with you must figure out what works for you and make your final decisions. I do have a background in breastfeeding having lactated continually since 1997 and have helped 100's of moms with nursing when I was a childbirth educator and since as well....
I too have a 3.5 month old child too. I too work full time, in fact went back to work when he was less than 1 week old. I have been blessed however and was able to start back partly from home and partly part time. I also am blessed since I have a job where I do not have to separate from my small children and take them along. Is there any chance you could do that with your job? ( you did not say what you do)
I would suggest in order to maintain your milk supply that you never ever give baby a bottle when you are there yourself. If you are working and away it can really effect your milk supply. I would also suggest that if you don't that you sleep with your baby and nurse while you sleep so baby does not need as much milk during the day. ( I have to do this since we are on the go with my job so much during the day) The more my babies nurse at night the less they need during the day and the easier my life is.
Also consider feeding baby with a cup instead of a bottle. A tiny shot glass or tiny dixie cup carefully fed to baby often works better and the sipping motion the baby does more closely similates nursing so is often easier for baby, it also has the benefit of being easier for clean up, baby does not get air in their little tummies and also no nipple confusion. I would also suggest that if you are pumping or hand expressing at work. ( and you should be) that you do not do it on an exact schedule, having a more varied schedule make for more milk production.
You baby is smart and prefers you to a bottle. Make drinking milk from a cup something different he does when you are gone and he is more likley to take to it than if you try to give him a bottle when you have the breast right there. Many moms I helped who were going back to work have used this tactic I've described very sucessfully.
In summary,
*Nurse baby when ever you are with baby *Nurse baby just before leaving. *Nurse baby @ night and relatch him any time you wake at night ( of course sleeping with him) *If you are able to be with baby at work or at least on a break nurse then * Pump or express as often and frequently as you can when you are away and on the non nursing side some when together too so you have enough for him. *Cup feed baby instead of a bottle. * NO Pacifiers at all ever *Nurse baby the moment you get back home
Please let me know how it works!
Anna Matsunaga, Team Momentum Keller Williams Realty Tacoma
In Pierce county and around the nation town homes are fast becoming a popular urban way to live.
Among the many benefits of Townhome living (easy to care for home, not having yard work, safety from close proximity to neighbors and so on) is one that likely you have not thought of.
Weight loss, and better fitness may be a side effect of your new town home? How so?
Well, having 3 stories in your home means you do more stairs than if you lived in a Ranch style home. So not only do you get more squarefootage for your money, you also get more exercize for your time spent in your home. Walking around your ranch home doing your day to day chores and so on will burn about 6 calories a minute, however doing the same when taking the stairs in your 3 story townhome will burn more than double the calories, this of course adds up in the end cumulatively to weightloss.
Not only that but the muscle built from doing stairs will continue to burn more calories per hour even if you are doing nothing than if you had not built the muscle.
To get an idea of the impact take a look at the 2 links that follow regarding stairs and impact on calories burned.
This 3rd link also in addition to having information about stairs has some good basic information on how to cut calories in other painless ways as well.
So not only will you likely get more house for your money with your new town home, but you may also get less of you from the resulting weightloss you get using the stairs in your home!
Anna Matsunaga Team Momentum Keller Williams Realty Tacoma
I started blogging just a little over a year ago and I made personal rules for myself when I started. If I had something really really negative it would not go in a blog. I would only write good reviews for local businesses, if it was one I could not honestly do that for, then I would not write it. If I disagreed I would be very very civil or I would say nothing at all. If some one made a bad comment that was harmful I would delete, if some one criticized me I would take it to heart if it were made with the attempt to help and not to degrade. I would write my own content or I would include a link if I liked some of the content I found and wanted to share. I would reblog where allowed and be sure my comments on the reblog made it clear it was not mine. I think I have done well with following my own rules and they would go along way towards keeping any of us safe with social networking and business. However Keller Williams just posted more good advice, some of which went further than I had thought of.
Here is the link, please check it out, lots of good advice!
Since advertising and social networking are an important part of all of our businesses we really always want to know what is working. This is one of the things I love about Active Rain. I can see my statitics right away and know if things are being looked at and what of traffic I am generating.
With some of my advertising though, I am less sure. Sometimes people call on a house, but can't remember where they found it and of course so many see it that I never know about so....what if you could track each of your venues for free?
Well leave it to Craigslist to do something else wonderful for Realtors.
Go there and create a free account. You can use the tracker code with any set up that supports HTML. Then you can view reports and have them sent and so on and not just know where your hits are coming from, but also what areas and time and more.
I am excited about this and intend to use it. I think it will also make a nice tool to send my listing clients so that they can see how well the ads are working.
Let me know how it works for you and I will keep you posted!
Anna Matsunaga, Team Momentum, Keller Williams Realty Tacoma
Most of us like the word FREE. I always am on the look out for free things, but of course don't want junkie things in the house....so when one of my friends on Facebook posted this I got excited and ordered right away. We already have one that we paid just under $20 for. It's a blanket with sleeves....ok that sounds goofy, but if you have a person in the house who likes to be warm, but is always cold they will love it.
We bought ours for our oldest daughter, she seems to alway be cold and some mornings getting her out of bed is hard because of it. Other times I would get her out of bed only to find her sitting in her chair in front of the computer ( she home schools) doing NOTHING. Why? Well she was cold and did not want to uncover herself. This snuggy blanket has solved this problem.
Commentary on Real Estate, business, health and personal growth as well as raising a family while growing a business, centered on the Puget Sound area especially TACOMA
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Budding signs of recovery continued last month. The encouraging news arrived in a number of closely followed economic indicators. On Thursday, October 29, the U.S. Commerce Department stated the country's recession has officially ended, at least as leading data indicates.
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