Thursday, November 25, 2010

Happy Thanksgiving!

Thanksgiving is a time for togetherness, a time to be spent with loved ones. It is a time for remembering, cherishing and being thankful for all the good things in our lives.

Is there a special holiday traditions that you look forward to each year? Do you watch the Macy's Thanksgiving Day Parade? Do you enjoy watching football games while lounging after the huge feast? Is there a certain holiday dish made by someone special that you look forward to each year?

Whatever traditions you may share always remember to cherish the time spent, give thanks, eat lots of great food and enjoy the holiday weekend!

Happy Thanksgiving to you all!

Monday, November 22, 2010

Olympia Yacht Club's Lighted Ships Parade

The theme of this year’s Lighted Ships Parade is "Deck the Hulls".

The parade will begin at 6 p.m. Wednesday December 1st and Saturday December 4th at Percival Landing in downtown Olympia. Watch the parade while it follows along the eastern shore of Budd Inlet to Boston Harbor and will return along the western shore of Budd Inlet to Percival Landing.

Bundle up and head downtown to enjoy the beautiful Lighted Ships Parade!

Visit http://www.olympiayachtclub.org/ for details.

First Snow of the Season

Let it snow, let it snow, let it snow...

There is something so magical about the first snow of the year. Watching it fall from the sky and cover the landscape with a pretty white blanket, the quiet streets, listening to the delightful sounds of snowball fights in the distance and then coming inside to warm up with a cup of hot cocoa, a good book and cozy blanket.

What fun traditions do you have for the first snow of the year? Do you make snow angels or have a competition to see who can build the biggest snowball? Do you take a walk in the winter wonderland or stay inside and watch the snow next to your warm fireplace?

Whatever snow day traditions you may have, remember to drive safely and enjoy it while it lasts!

Friday, November 19, 2010

Providence St. Peter Foundation’s Christmas Forest

Come check out Coldwell Banker's tree this year at the annual Christmas Forest opening on Thanksgiving Day! This traditional fund raising event benefits the Providence mission to provide basic health services to those in need.

Below is our 2009 tree, "Sweet Dreams".

Click image to enlarge.

All events will be held at the Red Lion Olympia Hotel, 2300 Evergreen Park Drive.

For the schedule of events visit http://www.providence.org/resources/swsa/Forest-Entertainment-Schedule.pdf

Thursday, November 18, 2010

Homebuyer Tax Credit, Extended for Military Personnel

The $8,000 Homebuyer Tax Credit is Extended for Qualifying* Military Personnel.
The extended deadline is April 30, 2011.

If you were serving our country overseas, you may not have been able to put to use the Homebuyer tax credits that so many Americans used over the past two years. While the credit expired for most of the country back in April 2010, the popular program was extended for certain military personnel.

With home prices down and mortgage interest rates at all time lows, this is a great time to consider getting into a new home. To receive the tax credit, you must be under contract to buy a home by April 30, 2011.

To learn more about the tax credit, visit http://www.irs.gov/ and type in "Form 5405" in the search bar at the top of the homepage.

There are two tax credits; (1) First time buyer credit up to $8,000, and (2) Repeat homebuyer credit up to $6,500.
For details and qualifications, get advice from your accountant, or visit
www.irs.gov to learn more.
*To qualify, a member of the Uniformed Services (Army, Navy, Air Force, Marine Corps, and Coast Guard) must meet the following conditions:
· Be on quailied official extended duty outside the United States for at least 90 days beginning after December 31, 2008, and ending before May 1, 2010.
· *Qualified official extended duty is defined as: (1) Serving at a duty station that is at least 50 miles from your main home, or (2) Living in Government quarters under Government orders.

Wednesday, November 17, 2010

Federal Income Taxes

As you are no doubt aware, the tax cuts that were put in place early last decade are set to expire at the end of this year. Among other things, the tax cuts brought the tax on longterm capital gains down to 15%. Without an extension, rates would revert back to 20%. However, there had even been discussion about moving that rate even higher.

This was one of the big issues leading up to the election. Prior to the election Congress and the Administration looked poised to let the cuts expire or at least limit the extension of the cuts to certain income brackets.

With the election results in, it is anyone’s bet what will happen. Keep a close eye on this issue. If the lame duck Congress does not act before the next Congress is sworn in, it will take a bill with retroactive application to ensure the cuts remain without a break. With a divided Congress that will not be an easy task.

Tuesday, November 16, 2010

Commercial Condos

No where in the market are properties flying off the shelf, but one area that has expanded appeal is the commercial condo market. We continue to see interest from buyers in owning their own spaces. With many properties too large for most small businesses in town to buy, the idea of breaking space down through the condo process has opened more opportunity for buyers and sellers alike.

The sellers get an expanded market, with larger and smaller scale buyers looking at the properties. As a bonus, a condo project gives the owner an incremental exit strategy. Often times we find sellers are caught between wanting to hold and wanting to sell. Owning a large project makes it an all or none proposition when considering a sale. Having condo units means an owner can sell portions over time.

The buyers get the opportunity to own a space that is a comfortable size for their operations. And with the owner-occupied loan programs mentioned above, the chances for commercial loan approval are greatly enhanced.

Converting an existing property to condos is not always the right thing to do. Market and legal conditions may suggest a different approach, but an owner considering this strategy will find the process relatively easy. If you are interested in discussing this approach, we’d be happy to talk over the pros and cons.

Monday, November 15, 2010

Thurston County Food Bank

Join Coldwell Banker this holiday season in helping the Thurston County Food Bank serve our community! Many families in our area are struggling to provide basic needs for their households. In 2008, the TCFB served a record 37,000 clients, a 39% increase from 2007.

Remember every can counts and will give hope to all who will receive these generous donations from people like you.

The Thurston County Food Bank accepts donations of money or food items Monday – Friday, from 8:00am – 3:30pm.
220 Thurston St N.E.
Olympia, WA. 98501-1138
Office phone number: (360) 352-8597
http://www.thurstoncountyfoodbank.org/

Banks Are Getting Healthier

The credit markets are healing themselves too. The banks with troubled assets are starting to move them off there books. As earnings stabilize and replenish the losses from real estate losses, capital levels are returning to levels that will allow more lending on real estate projects.

The most troubled banks are still being closed - expect still more banks in Washington to be shut down. While this weighs on the market in the short term, ultimately it is necessary for a healthy return to more sustainable times in the long run.

This process will take many months, if not years, to completely run its course. However, the local community banks and many of the national banks tell us they have money to lend on the right projects backed by the right borrower. This means skin in the game and projects that are priced right. Gone are the days with no money down and betting on the come. Bankers want to see real security in real estate deals. For those projects that can demonstrate it, we are seeing money readily available to borrow.

The most attractive projects for lenders continue to be the owner-occupied deals. Not only are these consider lower risk of default, they also are eligible for government loan programs that further mitigate a bank’s risk.

Programs like the Small Business Administration loans and USDA loan guarantees have been used extensively in our marketplace over the last 12 months on commercial real estate projects. We have reported on these programs in the past, but suffice it to say if you are in the market it is worth speaking with your lender about how these programs might work for your project.

Friday, November 12, 2010

Movement Starting to Happen Again

This year may mark the first time that fourth quarter market activity is higher than spring and summer quarters. We are seeing market activity pick up ever so slightly. Many properties across most product lines, including office, industrial, retail, and multi-family, are starting to get some activity again. The common factor of success today is price.

Any experienced retailer will tell you that when supply is high and demand is soft it is time for a sale. Because retailers control so much inventory they can quickly adjust to current market conditions to move inventory off their shelves.

Real estate too must yield to supply demand shifts and the attendant impact on prices. The biggest difference is how quickly the market reacts.

For the most part, one piece of inventory is controlled by one owner. With so many people controlling price adjustments the real estate market is, not surprisingly, slower to adjust. It is not unusual to see a year or two gap between a drop in demand and then the corresponding drop in prices.

Consider the California real estate market, one of the hardest hit in the country over the last five years. (See Chart 1) The median sales price in the state did not drop until two years after the number of sales plummeted. Once prices dropped buyers started to come back to the market.

Click image to enlarge

Locally, we are seeing tenants and buyers start to take note of the price adjustments made on many properties. While demand slackened a great deal over the past two years, supply has ballooned. It is hard to remember a time with more product on the market.

Sellers and Landlords looking to move product today are now starting to adjust prices that reflect today’s economic realities. For the buyer’s and tenant’s part, good business people know that the down cycle is the time to invest. This is creating more activity than we’ve seen in the past 18 months.

When leasing, landlords are smartly looking at opportunities to help cash flow and bridge to better economic times. This means that lease terms might be shorter or other creative structures are negotiated to create win-win relationships over the longer term. For example, there may be lower rent offered in the near term with flexible rent steps in future years that can return rents to higher levels when market conditions shift.

This renewed activity is still not at a pace that suggests we are through the woods, but it is progress. The market may be further challenged as the state legislature grapples with the growing budget deficit. Until the private sector is in a more palpable expansion mode, prices must continue to be sharp to get the attention of today’s buyers and tenants.

Thursday, November 11, 2010

Veterans Day Discounts

Today we join the rest of our nation in remembering the sacrifices of our American Veterans and express our appreciation for their service! We can never adequately repay them for their service, but our nation will forever be grateful.

Please take a moment to thank them today for all that they have done. And if you are a Veteran, on behalf of Coldwell Banker, we honor you! We have been given the opportunity to live the American Dream because of the bravery and sacrifices of all Veterans.

From all of us here at Coldwell Banker, thank you!

Below is a link to a few Veterans Day Discounts
http://www.military.com/veterans-day/veterans-day-discounts.html

Tuesday, November 9, 2010

Home Energy Efficiency Audit

There are a great many programs available right now to help improve the energy efficiency of our homes. PSE and our local Economic Development Council have collaborated to offer what they call “HomePrint.” This is a comprehensive evaluation of a home’s everyday energy use.

Ramsey Zimmerman, the program’s director, tells us this is a great “pathway to savings. Thurston Energy guides you through the process of finding and stopping the ways that you’re now wasting energy and money. We help you evaluate your energy usage, find ways to save, prioritize, find contractors for improvements, get all the discounts, rebates and tax incentives, and even finance the project through local lenders.”

The evaluation itself has a nominal cost - $95 if PSE is the provider for your primary heat source (gas or electric). You can learn more about this program at www.ThurstonEnergy.org or by calling 360.528.2112.

Monday, November 8, 2010

Time to Refinace?

We mentioned last quater that now is a great time to consider refinancing. Rates have continued to fall since then. See the Chart below. While the benefits don't always outweigh the costs, refinancing could save you a lot of money each month. It is certainly worth a call to your lender to weigh the pros and cons.

Click on image to enlarge.

Hands on Children's Museum

The ground-breaking ceremony for the new Hands On Children’s Museum is being held on November 17, 2010, at 12:00 p.m. The site is located between Jefferson Street and Marine Drive just north of State Avenue. This new facility will be the centerpiece of a revitalization project all along East Bay. It will lead the biggest downtown transformation since the Farmer’s Market was built in the 1990s.

The new facility includes an expanded version of some of the Museum's favorite exhibits along with a new cooking studio, inventor's studio, and a new gallery focused on the Wild Woods. The northwest’s relationship to water will be a big theme at the new museum and will tie in with the LOTT reclaimed water interpretive center next door. Designs for the new Outdoor Learning Center are especially exciting. The 30,000 square foot outdoor space will include interactive water features, a wetland, driftwood forts, children's garden, forest look-out towers and many other exciting additions.

Friday, November 5, 2010

Rocket Races!

Olympic Flight Museum presents Rocket Races Saturday November 13 at 1pm!

Purchase your very own balsa rocket kit at the Olympic Flight Museum for $5. Take the kit home and make your own unique rocket, paint it, decorate it, be creative with it! Bring your creation with you to the Olympic Flight Museum on the 13th of November and race in the competition!

Entry fee for participating in the race - $10

For more information visit http://olympicflightmuseumevents.weebly.com/

Thursday, November 4, 2010

Local Housing Market Update

Parents of identical twins will tell you that the similarities mostly end with looks. Each child has his or her own distinct personality.

The performance of the local housing market through the first three quarters of 2009 and 2010 is much like identical twins. On the surface, they appear identical: this year there have been 2,110 sales, in 2009 there were 2,111.

But just like twins, the surface is where the similarities end. Chief among the differences are affordability conditions and pace of sales.

Buyers right now are seeing unprecedented affordability. Prices relative to income are quite low. In addition, while moderating their decline, prices are down 5.4% from a year ago and mortgage interest rates are substantially lower than 2009 levels. This combination has created great opportunity for today’s buyers. Someone purchasing today’s average priced home will pay almost $225 less per month than a year ago.

The next distinction is pace of sales. Even with the great affordability conditions, a much greater portion of the total sales in 2010 were packed into the first part of the year. In a typical year, sales in the spring and summer are much higher than during the winter months. In 2009, third quarter sales were 30% higher than the first quarter. In 2010, however, first quarter sales were 9% higher than the third quarter.

The reason for this unprecedented shift is the federal tax credits. Many people who entered 2010 planning to buy were working to beat the April 30th credit deadline. The money offered under that program ($8,000 for first-time buyers and $6,500 for repeat buyers) pulled a great many sales ahead of the deadline.

Since the expiration of the tax credit (it is still in effect for qualified military buyers), we have seen fewer sales than might otherwise be expected. The bubble from 2003-2006 was seen not just in price but number of sales as well. (See Chart 1) During that time, the number of buyers was 16% higher than historic levels of demand would project. Since 2007 there have been 29% fewer buyers.


Click image to enlarge.

The size of the downside bubble has been much greater than the upside. Even accounting for fewer buyers, due to temporary credit impairment from short sales and foreclosures, the gulf between the two bubbles suggests that there is pent up demand.

Our market continues to have steady population growth from in-bound migration. Thurston County is the third fastest growing county in the state (out of 39 counties) accordingto the Thurston Regional Planning Council’s latest study. In-bound migration accounts for nearly 25% of the homebuyers in our market.

The big issue going forward is the job market. Jobs are a lagging economic indicator. After the recession of 2001, 18 of 21 months following the recession saw jobs lost. When employment inevitably turns up, the market is poised to begin a more sustainable upward correction.

In the meantime, sellers should continue to carefully watch the three “Ps” of marketing - product, promotion and price. If a house is going to stand out it must be the mostcompetitive in all respects. Buyers today are still acting quickly when they see a well-priced home. (See Chart 2) However, they continue to ignore homes that are overpriced. Sellers thatrecognize these trends are finding willing buyers in today’s market.

Click image to enlarge.

Wednesday, November 3, 2010

Thanksgiving Day Run

Interested in running off those calories before they are consumed this Thanksgiving? Starting at 9am on Thursday November 25 at Heritage Park in downtown Olympia is The Oly Trot Thanksgiving Day Run!

Raffle and Prizes include running shoes, Nathan sports gear, guerilla running gear, gift certificates and much more!

For more information and to find out how to register visit South Sound Running in Olympia or go to http://www.guerillarunning.com/Oly_Trot.html

Hands On Childrens' Museum

Our own Hands On Childrens' Museum receives more national press. Check out the video about the Museum's programming on the link below. The Hands On Children's Museum is one of the gems that makes our community a great place to call home.

http://www.momshomeroom.msn.com/#/episode/T4//1219950//

Monday, November 1, 2010

What to Do With Your Carved Pumpkin After Halloween

Did you know...

Pumpkins are a squash-like fruit. They range in size from less than 1 pound to over 1,000 pounds. The word pumpkin originally came from the word pepon which is Greek for “large melon". The French changed this to pompon, which the British changed to pumpion and later American colonists changed that to the word we use today, "pumpkin".

What to do with your carved pumpkin after Halloween...

Do you have a compost heap? Put your carved pumpkin in there, it will make good fertilizer. You can also bury it in your garden. The pumpkin will decay quickly and enrich the soil. If you kept the seeds while carving your masterpiece you can wash, dry and save them to plant next year in your. Or if you prefer you can wash and roast the seeds. Roasted pumpkin seeds make great little treat.