About Pierce County, WA

Beware of foreclosure predators. Those who are trying to take advantage of the fear that's still prevalent surrounding foreclosures. People who prey on others' fears and perhaps lack of information regarding their house payments.

I received a letter in the mail today that begins, "Records indicate that you are currently in default on your mortgage. Your lender may be in the process of foreclosure proceedings." It's a very official looking letter. They have my address, they refer to the government stimulus act, they make it look similar to an IRS form. They provide sample payments that their plan can get me and give me a 1-800 number to call or a website to visit.

It's easy for me to see how an elderly person or widow or anyone who may not be completely up to date with their finances could be fooled by this letter and sent into a panic. This kind of thing drives me nuts. Far too often in my business now I'm encountering folks who are fearful about the housing market, and folks like this choose to prey on that fear rather than do something worthwhile with their lives.

Please, if you get a notice like this, call a local Realtor or mortgage professional first. Don't become a victim of these jerks. Fear isn't a good decision maker.

Tax Credit Extension + Low Rates = Win-Win

Great news! The government has just extended and expanded tax credits for home buyers - and not just those buying for the first time.

• First time home buyers can now receive an $8,000 tax credit through April 30, 2010
• Home buyers who have lived in their residences for five years may now receive a credit of $6,500
• The tax credit is now available to individuals earning up to $125,000, or $250,000 for couples

Gig Harbor home sales up 5 of last 6 months

At least four major statistics show a turn-around in Gig Harbor home sales, including sales prices.

• October is the fifth month in the past six showing home sales better than 2008, equaling September and a 15% increase over last October.

• Year-to-date prices have slipped only 6% for Gig Harbor home sales but 11% for Key Peninsula. This is slowing the double digit downward spiral that has occurred over the last four quarters and is a positive sign of market stabilization.

• Absorption rate, or the number of months supply of homes, has changed dramatically in some price ranges. A neutral market-or one in equilibrium--is five to six months of listings, based on the number of sales the past month. Anything fewer and the market is considered a seller's market--above a buyer's market. In Key Peninsula the price ranges of $250-350,000 and $450-550,000 are now in the category of a seller's market. In Gig Harbor home sales nothing qualifies as a seller's market but $350-450,000 and $600-650,000 price ranges are in "neutral market" territory. These ranges will change from week to week but we have seen steadying in more price categories. Currently at $800,000 and above there are four homes under contract and one closed sale-but 148 on the market.

Here is a smattering of other market tidbits

• 31% of listed homes in Gig Harbor are vacant-40% in Key Peninsula.
• 22 homes flipped from pending status to active in October-half the number that flipped in third quarter. Many of these stem from financing issues or short sale procedures.
• Seattle has the highest rate of commercial real estate (new construction, subdivisions) in default in the nation-31% of all loans.

Gig Harbor home sales-and prices--should continue to firm up over fall and winter, with legislation just signed into law that extends the first-time homebuyer $8000 tax credit as well as expanding the program to give a $6500 credit to owners living in their home for the past five years. I can see price pockets during the next two to three quarters where demand equals the supply, which serves to increase the median price.

Carole Holmaas is an Associate Broker at Windermere Real Estate, licensed since 1967. She may be reached at Carole@ISellGigHarbor.com or 253.549.6611. Her real estate blog may be read at http://blog.ISellGigHarbor.com

From Anna Matsunaga, Team Momentum, Keller Williams Realty Tacoma

253 353 2662 www.teammomentumrealestate.com

Fall colors behind Bryant Montessori on Ainsworth.

Fall colors

Fall colors, Tacoma WA 98405

Enjoy I'll post more soon! It's so great when the trees show their true colors!

From Anna Matsunaga, Team Momentum, Keller Williams Tacoma, 253 353 2662

Today the Senate finally passed H.R. 3548, the bill extending unemployment benefits, and with it comes an Amendment extending the Tax Credit for First Time Home Buyers as well as an exception allowing for move up buyers to get their own credit.

In its current form the bill extends the $8,000 Tax Credit for First Time buyers as long as they are under contract before May 1, 2010, and close on the home before July 1, 2010.

The exception for move up buyers reads "In the case of an individual (and if married, such individual's spouse) who has owned and used the same residence as such individual's principal residence for any 5-consecutive-year period during the 8 year periodending on the date of the purchse of a subsequent principal residence, such individual shall be treated as a first-time homebuyer..."

The bill goes on to state that in that circumstance, that individual shall receive a $6,500 tax credit rather than the $8,000 for a true first time buyer.

The final vote by the Senate was 98 to 0 in favor, and the House is expected to make this bill a priority, possibly leading to a vote next week. Let's hope this gets done quickly so we can all stop playing the "rumor game" when it comes to the extension of this credit.