Top Changes

Due to the economic situation of the past few years, we are seeing a big shake up in the market. Many of the longtime friends and builders are no longer operating. They have gone bankrupt or simply just shut down operations. Yet, as bad as it may look, many companies have stayed in business, maybe on a smaller scale, but there none the less. New companies have even begun to arise, showing that there is promise for the future. Luckily, we are seeing improvement in the market, along with some of the other bigger builders, with our four generations of experience helping us survive through the down times. In Seattle alone there are over 15,000 permits sold, showing that there is still a big market. Although housing companies are still in business, it is important that the one you choose to work with is financially viable and sustainable. Many of the top ten builders are betting on “Seattle’s continued growth,” as Murray Franklyn stated, and so are we. We see Seattle as a strong market. We plan on being around as long as any publicly traded company and the benefit is we are locally owned and operated, not a huge corporation. To read more, click here.

First-Time Buyers

Great news! Home sales in King County have improved recently. In fact, in June 2009 they were at their highest since October 2007. This increase can mainly be attributed to the fact that people are finally taking advantage of the homebuyer $8,000 federal tax credit. To be eligible you simply need to be a first time homebuyer, which is defined as someone who has not owned a principal residence for the past 3 years. You can be purchasing a new home or even a resale, so why not take advantage or this great steal? Well, apparently, more and more people are. This is great for the economy and is exactly what the American Recovery and Reinvestment Act of 2009 aimed to do. It is vital to remember that when these first time buyers enter the market, people must sell to them, and move on to something else, creating a never ending cycle of home buying and selling. I am extremely excited about this new life in the housing market, but even more excited that people are finally doing what they should be, they are taking advantage of the tax credit. All types of homes qualify, so I believe everyone can find something that fits them, something that they love. Start your search now! To read more about the raise in home sales, specifically in King County, click on the link below.

http://seattletimes.nwsource.com/html/realestate/2009426109_homesales07.html

Homes on wheels.

What would you think if you saw a 100-year old house rolling down a city street? You can experience this first hand on E. Howell Street on Saturday August 25^th. Two homes are currently located on the Epiphany school’s property in the Madrona neighborhood are being moved to make room for an addition to the school. As you can imagine carting full size craftsman homes down a narrow city street is no small task, especially when beloved neighborhood trees are involved. Trees overhanging the street must be trimmed back a significant amount and some trees must be dug up and replanted after the move. This created a strange controversy over cutting back the much loved trees or demolishing the homes. Neighbors on E. Howell Street were reluctant to destroy the ambiance the trees created, but eventually worked out an agreement with the moving company to ensure the health of the trees. I am very glad that these homes were saved from demolition, not only were two beautiful old homes saved, but all the lumber in the homes was saved from the landfill. Old homes like these have always interested me because my great grandfather was building homes much like the two homes being moved back when he founded Powell Homes in 1909. Some lucky homebuyers got an amazing deal on some great old homes I feel they will really enjoy. It is excellent the school and neighborhood went to the extra effort to save the history that is built in these homes.  To read and learn more about this story visit a link below:

Seattle times July 9^th

Central District News: original, update

Great opportunity for consumers.

I have been happy to see the housing market begin to show signs of life again, as for me it signals an end to this recession in the coming year. But an improving economy also means more expensive consumer goods. An article from Forbes.com titled “10 things to buy before the economy improves” brought to my attention that the low prices and screaming deals we consumers are seeing now are not going to last long. The lack of demand has lowered prices across all markets. Now you’re probably wondering what the ten things are you should buy before the economy comes to life again and prices rise. On the top of the list is a home! Imagine that. Lower home prices coupled with even lower interest rates make for some excellent deals. The article goes on to say that “This may be the best time in a generation to buy a home.” which is definitely something I cannot argue with. Other items on the list included a new car, a vacation, a television, and diamonds. So don’t wait until the economy improves to take that trip to Hawaii or buy that flat screen TV. There is no time like the present, take advantage of the great deals while they last.

 To see the full list click here

 To read the full article click here

More Improvement in Housing Market

Last month I posted about Beacon Hill and Rainier Valley and their improving housing markets(click here to read previous post). This month happily I am posting about several other improving markets. According to the Puget Sound Business Journal Green Lake, Ballard, and North Seattle are all reverting to seller’s markets. Only three months ago everywhere was a buyer’s market, with most everywhere having at least a 6 month supply of homes. This means it would take 6 months to sell all the homes in the area. Now Green Lake has only a 2.5 month supply and North Seattle only a 1.9 month supply. (As of May 2009). The shorter the supply of homes the more demand they have, which in turn makes them worth more. The first time homebuyer tax credit I mentioned in an earlier post has something to do with the upturn in sales. (Remember that this Tax Credit ends in November so don’t miss this amazing opportunity). Once homes start to sell, it triggers market buoyancy and before you know it we will be out of this slump. I believe the market will continue to strengthen in the coming months and throughout the year. As homes sales increase it gives an indication of a wider market recovery across all business areas.

Read the Puget Sound Business Journal article mentioned above. Click Here.

Silver Lining in Housing Bust

The chart above, from a Seattle Times article last month, shows the increase in  neighborhoods affordable to median income homebuyers in King County in the last year. In 2004 almost every area in King County was affordable to the median income homebuyers. As housing prices increased it made many areas unaffordable to the average homebuyer; in 2007 only one area was affordable to the median household income buyer. Although the decline in the housing market has hurt businesses and homeowners everywhere it has also made many areas in King County affordable to the median income homebuyer once again. In 2008 six areas were affordable, a five area increase since 2007. As more areas become affordable again home sales will increase. With the influx of homebuyers the housing market will start to rebound, and homes that dropped in value will start to appreciate once more. Finding the silver lining in any situation is a good skill to have, the housing bust isn’t all bad, it provides excellent opportunities to low income homebuyers. In addition the market is already starting to pick up in some areas, read about it here.

 To read the Seattle Times article this chart was used from click here

Bright Spot in Housing Market

About a month ago an article in the Seattle Times titled “Housing Market Has Surprise Bright Spot” caught my eye. The article talked about the unexpected appreciation of home values in Rainier Valley and North Beacon Hill, two areas Powell Homes has built in since the 1940s. While the rest of the county’s home prices have been declining, these two areas show a bright future ahead. The new Light Rail system near these neighborhoods makes the city, airport, and many other attractions extremely accessible. Rainier Valley and North Beacon Hill are a great example of how a transit system can influence an area in a positive way. Residents hope that the Light Rail stations in their neighborhoods will attract businesses they can walk to, much like living in an urban city, but with the suburban feel. When buying a home, you are not only buying a place to live but you are buying an asset. It is important that this asset will appreciate in value becoming a profitable investment. These two regions are just two examples of markets in the Seattle area where buying a home is a good investment. The recent light rail developments and future developments are promising for the housing market. Anyone looking for a well priced home that will increase in value over the years should look in Rainier Valley and Beacon Hill. Buying a home there is not only a good investment but also a great place to live. The neighborhoods are very diverse and residents say it’s “a great location . . . they like how the community is getting involved in a neighborhood plan to update to address light rail’s arrival”. People looking to buy rentals or even to develop might look to this area because of its surprisingly better market. These two examples of how a transit system or any big change to a community can completely flip the housing market around causes me to look to other areas where similar changes are occurring. What other regions in Seattle are going to see in increase in home prices? Perhaps White Center will see a boost in the coming months. Wherever it is I am sure that Rainier Valley and Beacon Hill will not be the only places we see an upturn in the market. To me this article was a friendly reminder that the home prices are starting to rebound and the housing market is picking back up.

 Click Here to read the Seattle Times article mentioned above.

Use Your Tax Credit Immediately

This last May Shaun Donovan of the Federal Housing Administration (FHA) announced that first time homebuyers applying for the new $8,000 tax credit can use the credit towards the purchase costs of an FHA-insured home. Borrowers applying for an FHA-insured mortgage are required to make a 3.5% down payment. Lenders were not allowed to monetize the tax credit to meet this down payment. Department of Housing and Urban Development (HUD) authored a news release regarding this new rule. According to the HUD, and to me, this is a win win situation for everyone. Families who otherwise could not afford a house are being provided a new opportunity and at the same time they are helping the recovery of the housing market. As I said in an earlier post about this tax credit it’s basically free money waiting for the taking, all you have to do is be a first time homebuyer and you get the credit. With the new FHA rule you can use this tax credit immediately. For more information on this visit the HUD’s website and more importantly their news release on this new tax credit policy.

Master Builder’s Rampathon

Recently Powell Homes participated in the Master Builder Care Foundation’s Rampathon. This was the first year Powell Homes partook in the event and we felt it was very successful. Below is a link to a short video and article encapsulating the free construction of a ramp for Federal Way homeowner Saan Ching Saeteurn.

 Rampathon Video(for best viewing click on the full screen icon)

Rampathon helps disabled Federal Way man access his own front door

By ANDY HOBBS
Federal Way Mirror Editor
May 18 2009, 11:05 PM · UPDATED

 Every year, the Master Builders Care Foundation presents its Rampathon, in which free access ramps are designed and built in a single day for disabled residents throughout King and Snohomish counties.

Saan Ching Saeteurn, who lives on South 304th Place, was this year’s Federal Way recipient. Powell Homes and Best Way Concrete teamed up May 15 to build a concrete ramp at the front of Saeteurn’s house. The ramp will allow Saeteurn to access his own front door.

“Ever since my spinal cord injury from the car accident, I haven’t had much good news,” he said.

In September 2003, Saeteurn was driving to work. He was at a complete stop on the freeway when another driver rear-ended him, leaving him temporarily comatose and without memory of the accident. The resulting spinal cord injury has since confined him to a wheelchair.

Before the ramp was built, Saeteurn would enter his house through the back yard, where his wheelchair often gets stuck in mud or gravel.

The new ramp allows for greater mobility on Saeteurn’sproperty, where he lives with his wife and children.

“This will help out so much,” he said. “I don’t know what to say. I’m so happy that they’re doing this for me.”

Federal Housing Tax Credit

If you’re a 1st time homebuyer and you haven’t heard of the new $8,000 dollar first-time buyer tax credit you are missing out! The recent NAHB article outlines a few important facts about this new tax credit. It is important to realize that it is a real credit and doesn’t have to be repaid unlike the tax credit of 2008. This tax credit is basically like free money just waiting for you! A typical new home in Seattle is somewhere around 280,000 dollars with 3% down. 8,0000 dollars is about 2.8% of $280,000 meaning with this new tax credit and our New Home Incentives you can get into a brand new home for zero money down. This tax credit not only applies to existing homes but also to custom homes built on lots already owned by the buyer. Homebuyers will be getting a great deal, plus revitalizing their local and national economy. A great resource for prospective buyers is http://wwww.federalhousingtaxcredit.com. Be sure to visit this site and make sure you do all the right things to get the best tax credit you can this year.