Local Housing Report: Positive Signs for 2011

This time of year many people ask us, “what’s going to happen in real estate this year?” While our "crystal ball" is not clear, we are seeing positive signs that our local housing market is improving.

At the start of the past few years, the market faced serious challenges: high unemployment, falling stock and housing prices, to name just a few. The housing market is not completely out of the woods, but there are a number of factors that point to a more positive 2011.

The net result is that we are seeing a palpable uptick in interest from buyers compared to a year ago. The fact that there is so much more buyer interest at the start of this year is really saying something about how buyers are viewing the market. In its recent nationwide survey of home buyers, the National Association of Realtors found that twice as many buyers in 2010 compared to just two years ago said the timing of their purchase was based on affordability. This is a big confidence signal – and it is coming without government stimulus. It takes more than affordability to create a sustainable recovery. Employment numbers and the broader economy must provide a healthy foundation. Both are trending in a positive direction for the first time in a long time.

Very few people would be satisfied with where the job market stands right now. Jobs might be the single biggest challenge on the demand side of the local housing market in 2011. With the legislature facing a budget deficit, hard choices will be made. However, our local job market is in much better shape than a year ago when the unemployment rate stood at 9%. Today it is 7.6%.

Look to the States’ larger markets to see how much the Legislature’s actions impact our local job market. Some encouraging news comes from healthy increases in retail and housing sales (and the taxes that go along with them). In Seattle, for instance, housing sales and prices were up in 2010. That is a very positive sign after several years of declines.

This is all good news, but there remains a note of caution on the supply side of the market. The number of foreclosures still on the horizon is unknown. Thurston County has seen a steady flow of about 30 foreclosures notices per week - about three times the "normal" number. While we expect that trend to continue through 2011, the steady volume over the last few years suggest that more is behind than in front of us.

Given the reality sellers have to keep a realistic eye on market value and price competitively. With a lot of homes for sale, buyers are taking time to be savvy shoppers. They are acting quickly on homes priced competitively and ignoring homes that are priced about above the competition.

Home Sellers - Are You Making Potential Buyers Sick?

The clients have seen the pictures of your home on-line. It looks right for them in so many ways. They’re very excited. The Realtor opens the door and….the smells of perfumed air fresheners hit them immediately. Quickly, the clients turn and head back to the car, deflated and no longer interested.

This reaction is becoming more prevalent, but the reasons for the reaction vary.

A growing number of people are finding that exposure to fragrances, including perfumes and scented products, adversely affects their health. Many of the fragrance chemicals consist of volatile organic compounds that are known to be respiratory irritants. For some people, the reaction is immediate and dramatic – bringing on migraines, nausea, fatigue, and/or allergy-like symptoms.

Results from a study by Drs. Stanley M. Caress and Anne Steinemann found that 30.5% of the general population reported they found scented products on others irritating, 19% reported adverse health effects from air fresheners, and 10.9% reported irritation by scented laundry products vented outside.

There are also those buyers who are not adversely affected by scents, but will be thinking, “what are they hiding?” Some buyers believe where there is smoke there is fire, and scents sometimes signal other problems.

In any market, but especially a buyer’s market, you don’t want to lose a potential buyer over something so easy to correct. So now you’re saying, “Wait a minute, I want my home to smell pleasant for showings; what can I do?”

First and foremost, clean your house – thoroughly. This is a good time to spend a little money on having a professional house cleaner come in and clean from top to bottom. Oftentimes, they will pick up on things that need attention, things you might not have noticed. (Think about the lengths you go to clean your car to sell it; you get out the toothbrush to scrub the wheels, vacuum in every crevice, wax the car, steam-clean the engine – why when selling your house would you assume a routine cleaning is all that’s necessary?)

Also, there are many options to freshen the air that are natural and non-toxic. Baking soda is known for its ability to absorb odor. Use it in your sink drains, in garbage cans, and sprinkle it on carpets before vacuuming. To rid closets or powder rooms of musty, stale odors, you can shake some baking soda into decorative containers and leave it out in the room to absorb odors.

Vinegar is another natural way to clear odors. Mix one part white vinegar with five parts water in a spray bottle, and spritz into a room to freshen the air. Another option is to pour full strength vinegar into one or two bowls in the room that has strong odors, and leave it there overnight. And for, no kidding, “all-out war”, simmer apple cider vinegar (full strength) on the stove for about a half-hour, making sure it doesn’t burn. You may want to clear out of the house for a time after that, but it will neutralize the heavy odors.

And after you have cleaned the air, you can add in pleasant or homey smells. When possible, open windows and let fresh air in; bake cookies (yes, it really works); heat some vanilla in the microwave or oven; simmer some apple cider with a couple of sticks of cinnamon; or simmer some citrus peels (lime/orange/lemon) in water.

Your home will be cleaner, fresher, and less toxic -- your family will be healthier, you will capture more prospective buyers, and the next owner of your home will thank you.

Guest Blog Post by Lou Ann Dunlap, a Real Estate Broker with Coldwell Banker Evergreen Olympic Realty. She can be reached at 360-701-2085, or e-mail at louann.dunlap@cbolympia.com. You can view her website at http://www.louanndunlap.com/.

Home Sales Climb for Third Consecutive Month

Today the National Association of Realtors (NRA) reported that existing home sales continued to climb in January for the third consecutive month. Lawrence Yun, NAR chief economist, said, “The uptrend in home sales is consistent with improvements in the economy and jobs, which are helping boost consumer confidence,” Yun said.

Credit remains tight and has lead to an abnormal increase in cash-only and investment purchases. Competitively priced homes are selling and homes in good condition are holding their value, said NAR President, Ron Phipps.

In Thurston County, January home sales were up 10 percent over last year. There were 153 closed home sales last month, compared to 139 in January 2010. The National Association of Realtors reported that the growth in sales of existing homes in the West rose 7.9 percent, a trend we hope continues.

To read entire story visit:
http://www.realtor.org/press_room/news_releases/2011/02/january_above

Paper Airplane Flight School

Did you enjoy making paper airplanes in school? Competing with your friends to see which plane would fly the furthest? Kids today still enjoy making and flying paper airplanes across classrooms, playgrounds and living rooms. To enhance interest in flight, our local Olympic Flight Museum is hosting a spectacular event called “Paper Airplane Flight School.”

The event will be held on Saturday, February 19th from 1-3:30 p.m. at the Olympic Flight Museum, Olympia Regional Airport, 7637-A Old Highway 99 SE, Tumwater. Participants will enjoy professional instruction, construction materials and a snack. The cost for Flight School Participants is $7.00; $5.00 for spectators and general admission.

This hands-on experience will introduce the excitement of paper airplane folding and include a friendly competition. “From the simplest folded paper airplanes to the ‘cutting edge’ in paper airplane technology, you'll learn the basics of aircraft pitch, roll, and yaw! Enter your creations in the Distance and Spot Landing Contests and compete for awesome prizes!” For more information visit http://www.Olympicflightmuseum.com for more information.

Home Foreclosures Up or Down?

Yesterday, a news story today reported “U.S. home foreclosures jumped 12 percent in January 2011 over the month of December 2010.” The implication one could take away is that foreclosures are sharply on the rise. However, December is historically a very slow time for foreclosures. So a 12 percent increase from a smaller number is not a big jump in terms of real numbers.

Perhaps a more important stat compares this January to last. That is a more "apples to apples" comparison and shows a significant drop. According to the real estate data firm RealtyTrac, foreclosures fell 11 percent in January 2011 from January 2010. While Washington’s housing market still faces challenges, it remains healthier than the hardest hit parts of the country. California, Florida, Michigan, Illinois and Arizona have more than half of all foreclosure filings.

To read a related story, please visit: http://cnbc.com/id/41505006.

Helping Hands

If you know a woman currently undergoing chemotherapy, please let her know there is an inspirational service that provides FREE housecleaning - once per month for 4 months while she is in treatment.

There may be a family member, friend or colleague who would find this service a true blessing. Please join us in spreading the word about this caring service: Cleaning for a Reason can be reached at http://www.cleaningforareason.org/

To receive assistance, the patient will need to sign up and have her doctor provide a note confirming treatment. "Cleaning for a Reason" will have a participating cleaning service in her zip code area arrange the cleaning. This organization serves the entire USA and currently has 547 partners to help these women.

What is a Tag?

You may have noticed something new on the front page of our Buyer’s Guide, on our property brochures, and in other print media. They are called Tags, and otherwise known as QR (Quick Response) codes.

If you are a smart phone user you may already be familiar and using these. A tag will connect you to information, videos, websites and more via your smart phone. For example, scanning a Tag like the one above may open a web site, download contact information, receive a message, or dial a phone number.

A tag reader may be downloaded to your phone for free. Using the Microsoft Tag Reader app on the smart phone you can immediately access information about any Tagged item.

To get the Tag Reader visit http://gettag.mobi/ on your mobile phone browser.

To scan a Tag, use your phone to center the tag in the viewfinder. For best results, make sure the Tag is clearly visible, without being shadowed or reflecting light. If you encounter lighting difficulties, reposition the phone. You can forget about typing long web addresses in your mobile browser and instead scan Tags to quickly access information. Microsoft Tag can be used virtually everywhere in the world.

Have fun. Enjoy seeing videos of listed homes indicated with Tags in our Buyer’s Guide and in our other print materials.