washington: Market Trends: New Construction Continues to Shrink - 08/07/09 06:56 AM

This graph shows the reduction of all new construction inventory on the Eastside.  As you can see the trend continues to level off.  The analysis predict this shortage will put a new type of pressure on the housing market:
A third or more of home buyers want new. With fewer new homes, slightly used homes or recently renovated homes will demand a higher asking price.

However, if you look at this chart (New Construction Eastside under $500K) you see the trend moving up slightly.  This reflects the fact that builders are creating a … (0 comments)

washington: Market Trends - 08/06/09 06:16 AM
This graph shows the reduction of new construction inventory on the Eastside.  As you can see the trend is leveling off at about eights months of inventory based on pending sales.  Just about every trend is showing a leveling off over the last three months.
Even the Case Shiller index has leveled off over the last three months.  This takes us back to prices around June of 2005: (Index over last 12 months)
There was a dramatic increase in the prices of homes sold vs the for sale price.  This probably reflects the increase sales in higher price ranges … (0 comments)

washington: First Google… Now Yahoo... Here come the Relos? - 08/06/09 04:30 AM
Rumors where flying and people where making plans for years anticipating the wave of new Google employees.  Hundreds would move into town and into the corporate center in Kirkland. (See my blog from earlier)  When the economic climate changed so did Goggle's plans.  The migration of high tech, high paid new home buyers fizzled.
Now Microsoft to the rescue.   Enter the partnership with Yahoo, 400 Yahoo employees will be hired by Microsoft.  No one is sure where these people will move to... but we d know that Microsoft has reworked its relocation department. 
The real estate company that had an exclusive relocation … (0 comments)

washington: Shrinking new construction inventory on the Eastside. - 07/05/09 06:45 AM
This graph illustrates the dramatic decline of new inventory on the eastside.  Because of the lack of new permits being issued and builders concentrating on selling current inventory, this lack of new construction will put pressure on the overall market.

Other Market indicators:
We will continue to see prices stabilizing erasing concerns about buying a home only to see the value drop the new month. 
About 20 -30% of buyers are looking for new or like new homes, this will create higher demand for homes built after 2005 or 2006 and/or homes that have be recently updated.
The … (0 comments)

washington: A Reason For Optimism - 04/28/09 07:31 AM
HEADLINE: Baltimore Sun: Shortage Of New Homes Seen -- Credit Crunch Means Fewer Units Will Be Ready When Recession Eases
Analysts have been predicting a shortage on new homes in the Puget Sound area will start in September due to the lack of new construction permits being issued.
 Looking at this chart ... (Eastside - New Construction - Based on Pending sales)

...You can see that the months of inventory are shrinking.  And at this rate, we will get to a balanced market after September.  If it continues we will be in a Seller's market by early next year for … (1 comments)

washington: Kirkland Data & West of Market - 04/02/09 08:08 AM
For all of you who love data, here is some information about Kirkland.
The Case- Sheller index for January (released 3/31) still has values dropping about 3% a month for the Puget Sound area but the annual trend is slowing.
West of Market in Kirkland, WA as of April 2nd has about 56 homes listed for sale.  Prices range from about $480,000 to $4.9 million.

With nine pendings and solds over the last six months.

Here are the overall trends for South Kirkland:

New data for March will be out soon.

washington: First Time Buyer Tax Credit at a Glance - 03/26/09 04:05 AM
As agents we are now being asked "What is this tax credit for first time home buyers?"  Especially now that there are great deals and low interest rates.    Here is some great in formation I got from my Title agent at Commonwealth Tile and Escrow.
Tax Credit at a Glance
• The tax credit is available for first time home buyers only(or for those who have not purchased in the last three years.)
• The tax credit does not have to be repaid.
• The tax credit is equal to 10% of the home's purchase price up to a maximum of $8,000.

washington: End to Slump - Can You Say "Peak-to-Trough" - 02/26/09 04:34 AM
You are going to hear this phrase more and more as the housing market stabilizes.  It means from the top of the market to the point at which we no longer see declining numbers.
Moody's says home prices in the United States will hit their low point in the fourth quarter of 2009, with the Case-Shiller Home Price Index expected to show a 36.2% peak-to-trough decline. The peak was reached nationally in the first quarter of 2006.

The Seattle Case-Shiller Home Price Index from January 1989 until January 2009.
The peak in Seattle was June 2006. If you follow the … (0 comments)

washington: Google Where are You? - 02/19/09 09:38 AM

The Kirkland, WA Google Lakeview Office Complex.
The plan to build the Google offices in Kirkland started years ago.  It sounded great for everyone, especially the Eastside Real Estate Market.
The rumor was that Google had grown and matured as a company and now had 100's of middle mangers and directors.  They could not all make millions a year but they made good six figure incomes.  However, around San Francisco and Mountain View California, six figures doesn't buy much.  So the plan was to move some of this group to Kirkland where their salaries could buy nicer homes and schools … (1 comments)

washington: Kirkland's Goat Hill Neighborhood - 01/29/09 03:41 AM
Goat Hill is a unique neighborhood in the Juanita area of Kirkland that overlooks Lake Washington.  Recently, I took some buyers to see the available homes on the hill. The road is narrow and winds up the hill and is not for everybody.  My buyers loved it. Price ranges for the eight homes on the hill are $440,000 to just over a million.  There are three new homes being built by Bennett that take full advantage of the view and my clients loved the detail. There are also two homes that where built in the 1930's.  Per square foot is around … (2 comments)

washington: Kirkland and Juanita Housing Markets - 01/29/09 02:47 AM
There's Kirkland, then Juanita and Finn Hill.  The lifestyle is different in each area and so is the housing market.
Here is the difference in inventory between Kirkland and Juanita.
Kirkland is 24 months:
 Juanita is 7.8 Months:
Kikrland For Sales, Solds, and Pends:
Kikrland For Sales, Solds, and Pends:
You can see the Juanita area is performing better than the General Kirkland area.

washington: Ten myths for buyers and sellers - 01/26/09 02:17 AM
Barbara Corcoran on the Today Show talked about ten myths for buyers and sellers.  This is great information everyone.
Myths like:
The longer the house is on the market, the more you can negotiate.The sellers today are desperate.You shouldn't buy before prices have bottomed.And one issue I talk about:
Now's the absolute worst time to sell.Barbara says "... if you're a homeowner who wants to trade up, the loss you'll take on your current home will be more than offset by the bargain you'll get on the next one."
Hopefully, further information like this will take away more of the uncertainty in the … (0 comments)

washington: Anxiety Jumps as Unemployment Hits 7.2%, 16-Year High - 01/09/09 01:46 AM
As agents, anxiety is the new reality in our lives.  With transactions half of what there where a year ago, our business has downsized but no one sent us an official notice.  We've all seen agents make adjustments such as moving back to their home towns, taking on service jobs or just leaving the business. Some need to turn their listings over to associates, their co-workers and friends, who are still working as full time agents.  A self induced layoff.
I heard a veteran agent say "I will ride this recession out until things get back to the way they were."  Are … (1 comments)

washington: Seattle Prices climb- The facts and the truth - 01/07/09 11:09 AM
Facts and truth really don't have much to do with each other.                             -William Faulkner
The truth today is that people who could buy or sell are scared because of the uncertainty in the housing market.
 ‘Will I pay too much; will I sell for too little?'  The voices in your head can rattle forever until you see the facts.
The facts are that in Seattle, housing prices in some areas actually climbed.
This points to prices stabilizing and new facts; we can see the bottom of the Seattle market. Most analysis see the bottom accruing second quarter of 2009. Then … (0 comments)

washington: Not Seattle-House Prices Plunge Again, Now Down 25 Percent- - 01/07/09 09:39 AM
What does this mean?  The Case Shiller 10-city index looks at home prices by tracking home values not home sales to come up with their index.  Some consider it a more accurate measurement of the housing market. The ten cities that make up the 25% loss are some of the most depressed in the country. That's why the bad headline.The Seattle market is down a modest 10.2 percent for the year.  Overall, this puts prices back to March of 2004.  
 I see this index bottoming out mid 2009 which would put prices down another 1-2% before prices level out and later … (0 comments)

washington: Neoreaders- The future - 11/20/08 09:57 AM
I've just seen the future and it is Neoreaders.  Basically it is a bar code Real Estate Agents can use in many ways. I call it The Bill-Board
When a smart phone is equipped with a Neoreader you take a picture of the reader (called a Q2 or Data Matrix code):

And you are directed to a web site.  This will take you to my site.
 Getting a reader is simple and it will direct the smart phones to any web site you choose.
As agents we place one of these readers by our listing.  Buyers shoot the reader and zap, … (6 comments)


Bill Blanchard

Kirkland, WA

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