More • August 28, 2013

Providing basic necessities for back-to-school

by Marilou Ubungen

It’s that time of year, when summer vacations are wrapping up and families are preparing for their children to go back to school—which means purchasing new clothes and new school supplies. However, for many families, budgets are tight and it’s difficult to provide their kids with even the most basic of necessities.

Fortunately, there are Windermere offices throughout the Western U.S. working with local organizations to provide backpacks, school supplies, and food for low-income and homeless students in their communities. Below are just a few of the back-to-school efforts that have been taking place during the month of August.

* Agents in Windermere’s Bainbridge Island, WA office donated $2,000 to Helpline House’s Project Backpack, an annual back-to-school program that provides backpacks and supplies to Bainbridge Island school children.

* The Windermere Bellevue South office provided nearly $1,000 worth of school supplies to low-income children in the Bellevue, WA School District through Congregations for Kids.

* Throughout the month of August, the Windermere office in Kingston, WA is collecting backpacks, school supplies, and food for lunches and after school snacks. There are currently more than 100 homeless students in the Kingston School District, and this back-to-school drive will help over 250 students. Donations received will be distributed via the two food banks in Kingston.

* For the past eight years, the Windermere Green Lake, Lakeview, Northgate, Northlake, Sand Point, and Wedgwood offices have provided backpacks to low-income children at their local elementary schools in north/northeast Seattle. This year, they will fulfill the largest request they’ve received since the program’s inception by delivering 390 backpacks for kids in need.

* The Windermere Mount Baker, WA office donated $500 for school supplies and participated in a backpack stuffing event for Project Cool, for Seattle/King County Coalition on Homelessness. Around 18 Windermere agents and family members helped to stuff backpacks with school supplies for students in need in pre-school, middle and high school.

* The Windermere Relocation and Referral Services office in Seattle is participating in the August back-to-school drive for Ruth Dykeman Children's Center and Seattle Children’s Home. The office has participated in this drive for the past three years, purchasing backpacks with their Windermere Foundation funds, and staff donating various school supplies.

* The Windermere Alderwood office co-sponsored the Edmonds, WA School District Back-to-School Resource Fair, which supports students in need in the Edmonds area. At the fair, families received school supplies, haircuts, and information about support services and opportunities within the community. There were 750 backpacks—stuffed and tagged by grade level—available for students.

* Windermere South Group offices, which include Burien, Federal Way, Federal Way West Campus, Kent, Maple Valley, Property Management-South, Renton, and Renton-Tukwila South, have supported the annual back to school fair in SeaTac, WA with a $1,000 donation for the past six years. This year’s donation will help provide 1,500 local students with a backpack and school supplies.

* Each year in August, the Windermere offices in Spokane, WA combine their Windermere Foundation funds and host a Shoes and Socks event for the community. The goal of this year’s event was to help 100 children in need prepare for the upcoming school year by giving them a chance to shop for their own school shoes and socks. A partnership with the local Big 5 store allowed each child to browse for shoes in the store, try them on with the assistance of a Windermere broker, and get the perfect shoe.

* The Windermere Whidbey Island-Oak Harbor, WA office has supported the Opportunity Council’s annual backpack and school supply drive for the past five years—this year, donating $2,500 to the cause. The office has partnered with the Opportunity Council for many years, helping with homeless housing, coats for kids, and their annual backpack drive. The backpack project will help over 250 low-income children enrolled in the program.

* On September 5, brokers at the Windermere Eugene, OR office will kick off a Lemonade Stand fundraiser for the local SMART reading program. Windermere brokers and their kids will serve complimentary lemonade and accept donations for the Windermere Foundation. Proceeds will help buy books for in-school reading programs and children's take-home book packs. The Windermere Foundation will continue accepting donations for SMART until September 19. Community members who would like to make a contribution should call their local Windermere broker or the company’s Oak Street office at (541) 484‐2022 for more details.

* For two weeks in August, agents at the Windermere Raleigh Hills, OR office collected backpacks, snacks, shampoo and various school supplies for the Community Transitional School in Portland. The school helps children whose families are homeless, experiencing poverty-related crises and/or are in transitional situations.

Thank you to all of our offices and everyone who has donated time and resources to the various back-to-school drives. Your contributions help provide low-income children and their families with the support they need to succeed in school.

Please feel free to share your stories and photos with us in the comments or on the Windermere Foundation Facebook page at www.facebook.com/windermerefoundation.

More • August 22, 2013

What is Modern?

by Windermere Staff

Sleek design, open floor plans, and great natural lighting are all appealing characteristics of modern architecture. Over the years, modern design concepts in home building have become more popular, as is the resurgence of interest in modern real estate. More companies, like 360 modern, are specializing in modern properties. Modern homes vary greatly in style; however, they have some unifying qualities that distinguish them from other properties built over the last 60 years. Here are some characteristics often found in modern homes:

Clean geometric lines: The core of modernist values is the simplification of form. Modernist homes have a very ‘linear’ feel with straight lines and exposed building materials. Furnishings and adornment reflect this value, incorporating vibrant, geometric and abstract designs.

Modern materials: Large windows are abundant in modern architecture, allowing light to fill and expand the interior space, bringing the natural world indoors. Generally all exposed building materials are kept close to their natural state, including exposed wood beams, poured concrete floors or counter tops, stone walls and stainless steel.

Modern homes are well suited for technological and green upgrades, as well including eco-friendly building materials and energy efficient practices. Flat roofs accommodate solar power. Energy efficient appliances work with the aesthetics of modern homes. Modernist landscaping need not require water-thirsty lawns, but instead can reflect local flora.

Post-and-beam structure: One classic element in modern architecture is the exposed wood posts and ceiling beams. This style of building has been around for thousands of years; however, modern homes really emphasize the structure, rather than hiding the bones behind drywall. In new modern homes the post-and-beam structure can be made out of concrete, iron or other materials. The highly visible horizontal and vertical beams reinforce the clean geometric lines of the space.

Low-pitched gable or shed roof: One of the most differential characteristics of modern homes than more traditional home design is the shape of the roof. Classic modern homes on the west coast generally have a flat or low-pitched roof, highly influenced by architect Joseph Eichler. New urban homes also leverage roof tops for outdoor entertaining space.

Open floor plan: Modern design strives to “open” the space by eliminating enclosed rooms. For example opening the kitchen and dining room into an open living space, allowing the ‘rooms’ to flow into one another.

Large windows: Natural light and the incorporation of natural elements are important aspects of modern home design. Large, floor-to-ceiling windows illuminate the open space and highlight the natural landscape. Some new modern homes have adjusted the large windows to open, diminishing the barrier between the indoors and out.

Incorporation of outdoor elements: Frank Lloyd Wright, one of the pioneering modernist architects, incorporated the natural setting into his architecture, most famously with Falling Water. Outdoor elements are incorporated into modern architecture in many ways; through large windows, landscaped terraces, and patios, and through use of natural and organic materials in building including stone walls, and more.

Minimalism: With open and connected modernist spaces, careful curation of furniture, adornments, and household objects is important to preserving the modernist aesthetic. Generally, modernist homes have art and furniture that reflects the clean geometric lines and the natural materials of the architecture, leaving less space for clutter. Minimalist philosophies of few household items that serve both form and function work well within this design and architectural style.

Market News • August 14, 2013

Oregon and Southwest Washington | Second Quarter 2013, Volume XXII

by Windermere Economics

Windermere Real Estate is proud to partner with Gardner Economics on this analysis of the Oregon and Southwest Washington real estate market. This report is designed to offer insight into the realities of the housing market. Numbers alone do not always give an accurate picture of local economic conditions; therefore our goal is to provide an explanation of what the statistics mean and how they impact the Oregon and Southwest Washington housing economy. We hope that this information may assist you with making an informed real estate decision. For further information about the real estate market in your area, please contact your Windermere agent.

Regional Economics

On an annualized basis, the Oregon counties covered by this report increased employment by one percent, or approximately 17,182 jobs. As was discussed in last quarter’s report, job growth remains positive; however, it is limping forward at an anemic pace. Year-over-year, 15 counties saw their employment base expand (down from 19 counties in our last report) and nine saw employment contracting.

That said, it was pleasing to note that all but two counties expanded their job base in the current quarter relative to the previous quarter. In total, 32,000 jobs were added, with substantial rises in employment seen in Washington, Multnomah, Marion, Clark, and Clackamas Counties.

When compared to June of 2012, employment growth was most pronounced in Deschutes County (+3.1%). This was followed by Clark (+2.1%), Tillamook (+1.9%), and Multnomah (+1.7%) Counties. On an absolute basis, Multnomah County maintains its position as the driving force behind job growth, with the addition of 7,500 positions over the past 12 months. This was followed by Washington County (3,900) and Clark County, where employment grew by 2,700 positions.

On the negative side, job losses totaled 3,008 spread across nine counties. Losses were again most pronounced in Marion County, with employment contracting by 1,253 jobs, followed by Cowlitz County (-1,000). Losses in other counties were fairly modest.

We are increasingly seeing the divide between the urban and rural counties relative to improving employment. The larger, more metropolitan counties are recovering, but much of the state is not.

When compared to a year ago, the unemployment rate shrank in every county that was analyzed, other than in Benton County, where it remained at 6.5 percent. This is certainly positive; however, I remain concerned by the fact that there are still seven counties where the unemployment rate remains above 10 percent. As mentioned earlier, these are all more rural counties with employment averaging just over 30,000. It speaks to the dichotomy that exists within Oregon and is something that needs to be addressed.

Of the counties that saw shrinking unemployment rates, the greatest improvement was again seen in Clark County, where the unemployment rate dropped by 2.4 percent to 8.6 percent. This was followed by Klickitat (-1.6%) and Deschutes (-1.2%) Counties. The worst-performing county was Benton, where the rate remained static.

As the greater market is the focus of this report, I cannot raise the grade from the “C-” that I gave it in the last quarter. It is clear that all counties are not created equal.

Regional Real Estate

In the second quarter of 2013, the region closed 11,693 home sales—an impressive increase of 43 percent over the first quarter of the year—and when compared to the first half of 2012, sales volumes are up by 15 percent.

The greatest growth in transactions was again seen in Cowlitz County (+52%), and this was followed by Klamath (+51%), Polk and Benton (+40%), and Coos (+39%) Counties. There were just two counties that saw home sales drop when compared to the first half of 2012, with Jackson and Josephine Counties dropping by 12 and three percent, respectively.

Turning our attention to home prices, 19 of the markets analyzed registered year-over-year price increases (down from 21 in the last report), with five showing declines in values from a year ago. In aggregate, the markets surveyed saw home values grow by 12.7 percent over the same period in 2012. This is down from 17 percent in our last report, but not a cause for concern.

The greatest growth was seen in Coos County, where prices jumped by 49 percent over the same period in 2012. This market saw a dramatic drop in home prices at the end of 2012, but has recovered nicely and is now back to where it was in the fall of that year. There is no reasonable explanation for this, as list prices in that market have remained remarkably stable. Of the other counties that saw price growth, 15 saw double-digit increases.

Of the markets where prices went down, the declines were most pronounced in Clatsop County, but that is a market which is prone to substantial swings. Prices shrank modestly in Skamania (-5.7%), Benton and Polk (-3%), and Wasco (-2.8%) Counties.

Relative to the previous quarter, 18 counties saw prices rise and six experienced declines. Countering our last report, where there was a dramatic increase in sale prices in Clatsop County, this time prices dropped by an equally remarkable 26 percent. This is a very small county and therefore prone to wild fluctuations. On the positive side of the equation, substantial growth was seen in Coos (+43%), Columbia (+42.4%), Lane (+28.6%), and Hood River (+23%) Counties.

Belief in the market is clearly apparent. As compared to two years ago, prices are higher in all but three counties, and I am also very pleased to see that prices in three counties are now higher than those seen in the summer of 2008 when the market had already started to collapse.

I also watch the trend in listing prices very carefully, as this is certainly an indicator of the health of a market. Nationally, we are still suffering from a housing shortage—and this is certainly the case in Oregon, as well. As such, it is not surprising to see listing prices grow as demand exceeds supply. Even with this growth in prices, sales velocities continue to rise, which again suggests that the market is in recovery.

Even so, unfortunately I cannot increase the grade for the real estate markets from the “C+” that I gave it last quarter. Supply limitations, as well as increasing interest rates, are likely to keep the market in check for the time being.

Conclusions

Overall, the Oregon economy continues to expand, but at a somewhat lackluster pace. Increases in manufacturing hours and construction-related employment are helping, but as mentioned earlier, the state continues to become more and more bifurcated.

Statewide employment growth was measured at 1.29 percent in 2012, and through the first half of this year the economy has grown by 1.2 percent—essentially matching the total gains for the previous year.

I am anticipating continued growth for the rest of 2013, but it is unlikely to be substantial enough to have a dramatic effect on the unemployment rate. Expansion is headed by the private sector, and ongoing concerns over healthcare costs will likely lead many companies to not expand their employment bases dramatically until they become comfortable with the new laws.

As far as housing is concerned, I continue to be pleased with the area’s progress. That said, the recent rapid run-up in mortgage rates is likely to take some buyers out of the market as they fail to qualify for the loans that they were looking at.

As such, there is a very reasonable argument to be made that those who are thinking of selling may well be better off listing their homes for sale now, rather than waiting for anticipated price growth. It is worth remembering that for every one percentage point increase in interest rates, buyers’ purchasing power drops by ten percent.

I expect that the market will continue to recover, relative to price, but I also expect to see price growth start to moderate, especially if interest rates continue trending upward.

Matthew Gardner

Mr. Gardner is a land use economist and principal with Gardner Economics and is considered by many to be one of the foremost real estate analysts in the Pacific Northwest.

In addition to managing his consulting practice, Mr. Gardner chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; sits on the Urban Land Institutes Technical Assistance Panel; is an Advisory Board Member for the Runstad Center for Real Estate Studies at the University of Washington; and is the Editor of the Washington State University’s Central Puget Sound Real Estate Research Report.

He is also the retained economist for the Master Builders Association of King & Snohomish Counties. He has twenty-five years of professional experience in the U.K. and U.S.

He has appeared on CNN, NBC and NPR news services to discuss real estate issues, and is regularly cited in the Wall Street Journal and all local me

Buying • August 12, 2013

Commute getting you down? Try “Search by Drive Time” on Windermere.com

by Shelley Rossi

Traffic. It’s a constant in many of our daily lives. All it takes to trip up your regular commute is an accident, inclement weather, or road work. And the more inconvenient the commute, the bigger the hit to your quality of life. That would explain why nearly three-fourths of home buyers rate convenience to work as a critical factor in their home purchase decision.¹ But “convenience” means different things to different people. For some, walking to work is the definition of convenience. For others, it’s a maximum of a 15 minute drive time between work and home. And in some larger cities, anything under 45 minutes is considered convenient.

Starting today, buyers who put a lot of value on how much time they spend commuting in their car have a new, innovative way to search for homes on Windermere.com. Powered by INRIX, Windermere is the first real estate company in the nation to offer “Search by Drive Time”, giving buyers the ability to view all homes for sale within a specific drive time of a frequented destination, such as work or school.

Do you work in downtown Seattle and are willing to drive for up to 30 minutes, but need to arrive by 9:00 AM? Do you work in Portland, only want to spend a max of 20 minutes driving, and need to get there by 7:30 AM? Do you want to live within a 15 minute drive of your kids’ school which starts at 8:25 AM?

Done, done, and done.

Now, when searching for homes on Windermere.com, you can enter your work address (or school, etc.), the maximum amount of time you want to spend driving, and your preferred arrival time. Then, plug in your price parameters, numbers of bedrooms, bathrooms, etc., and Windermere.com will show you homes for sale that not only fit your price and physical specifications, but preferred drive time to work, as well.

OB Jacobi, the president of Windermere Real Estate, and someone with a serious passion for technology, feels strongly that “Search by Drive Time” is going to revolutionize how buyers search for homes – especially in high-traffic, metropolitan areas.

He was recently quoted as saying the following:

“We already know that commute times are a critical factor for 73 percent of home buyers, and now with Windermere’s Search by Drive Time, buyers can filter their search results based upon drive time criteria, just as you would for price, number of bedrooms, and other important attributes. It just makes perfect sense for a large population of home buyers.”

In March, Windermere launched phase one of INRIX Drive Time by attaching a drive time calculator to every home for sale on Windermere.com.²The addition of Search by Drive Time takes this capability even further by enabling buyers to use commute time to define their search criteria alongside price, square footage, bedrooms, bathrooms, etc.

What is INRIX?

INRIX provides Windermere with the in-depth traffic data needed to power our Search by Drive Time technology. It also happens to be one of the fastest growing big data technology companies in the world. INRIX leverages big data analytics to reduce the toll traffic takes on people, places, the environment, and the economy. INRIX Drive Time information is sourced from the INRIX Traffic Intelligence Platform, which analyzes (literally) billions of real-time data points from a unique combination of sources, including road sensors and real-time traffic speeds that have been crowd-sourced from millions of GPS-equipped vehicles and devices.

Unlike traffic sources that only provide travel times based on speed limits and distance, INRIX Drive Time accounts for common traffic-impacting factors, such as time of day, day of the week, season, local holidays, special events, current and forecasted weather, accidents, and road construction.³

Have you ever tried driving into the city when there are multiple sporting events, a concert, and an accident on the freeway, while it’s raining cats and dogs? Unfortunately, it happens, but thankfully INRIX is always one step ahead, taking all of those details (and more) into account and spitting out up to the minute information so you can avoid a serious headache of a commute. It’s this same depth of information that enables INRIX and Windermere to provide buyers with highly accurate search results based on Drive Time information.

So, what does this mean for you? It means that if you’re a home buyer and you care about the amount of time you spend in your car commuting every day, finding the home that best fits you and your life, just got a lot easier.

Check out our new Search by Drive Time feature for yourself by going to www.Windermere.com and selecting the "INRIX Drive Time Search" option from the main search panel in the center of the page.

¹National Association of REALTORS® Profile of Home Buyers and Sellers 2012

²Drive time information is not currently available in Mexico.

³INRIX real-time traffic information has been found accurate within 3 mph of actual traffic speeds under all driving conditions, 24 hours a day, 7 days a week. Source: I-95 Coalition Validation of INRIX Data: Two Year Summary Report, September 2010

Shelley Rossi is responsible for all internal and external communications for Windermere Real Estate. Shelley helps direct company messaging through public relations, social media, advertising, and marketing communications. She also oversees the flow of information to the company’s network of 300 offices. Shelley has a deep understanding of the residential real estate industry and how PR can be used to leverage company branding and messaging.

Selling • August 9, 2013

Windermere Launches Customized Program Focused On Supporting Growing Senior Population

by Shelley Rossi

Two years ago, the oldest members of the Baby Boomer generation turned 65, and over the next 18 years, 79 million more will do the same. These seniors are projected to move out of an estimated 11.3 million housing units through 2020 creating what is known in the real estate industry as the “silver tsunami”. These generational trends have inspired the creation of Windermere Senior Transitions; a new program made up of Windermere agents who are specially trained to understand the unique needs of clients aged 65 and older.

The Windermere Senior Transitions program focuses exclusively on helping seniors through the transition of downsizing from their existing residence into a smaller home, condominium, or an assisted living facility or retirement community. This process can be very complicated and emotional for many seniors and requires the support of someone who is trained to navigate this transition. These home owners often have needs that extend far beyond a traditional real estate transaction and may require assistance with finding resources for everything from healthcare and legal services to financial planning, estate sales, and downsizing services.

Mary Benz, Director of Sales and Marketing at Chateau Retirement Communities in Seattle believes that the agents who are a part of Windermere’s Senior Transitions program “Provide a critical need for seniors facing the overwhelming task of downsizing and making a move that marks a milestone for them. These dedicated agents have received additional certification to work with the senior population and have reached out to form relationships with various agencies involved in all aspects of downsizing and moving.”

There are several criteria agents must meet in order to become a certified Windermere Senior Transitions Specialist, including completion of an internal training course entitled “Intro to Senior Transitions”. They must also earn the national Senior Real Estate Specialist designation (SRES) which certifies that agents have demonstrated the necessary knowledge and expertise to counsel seniors through major financial and lifestyle transitions in relocating, refinancing, or selling the family home. In addition to this, agents must close a minimum of three “senior” transactions on an annual basis, as well as sign the Windermere Senior Transitions “Standards of Practice” contract which requires agents to abide by a strict code of ethics specific to senior-aged clientele.

For more information, please visit the Windermere Senior Transitions website: www.windermereseniortranstions.com.

Market News • August 7, 2013

Western Washington | second quarter 2013, Volume XXII

by Windermere Economics

Windermere Real Estate is proud to partner with Gardner Economics on this analysis of the Western Washington real estate market. This report is designed to offer insight into the realities of the housing market. Numbers alone do not always give an accurate picture of local economic conditions; therefore our goal is to provide an explanation of what the statistics mean and how they impact the Western Washington housing economy. We hope that this information may assist you with making an informed real estate decision. For further information about the real estate market in your area, please contact your Windermere agent.

Regional economics

It is becoming apparent that economic growth in Washington State, although certainly continuing to expand, is starting to exhibit growing pains.

As far as total employment is concerned, the numbers appear to be robust with the market area adding 50,670 new positions over the past 12 months. I should also note that the market added 46,250 in the past quarter, but this is not surprising as county level data is not adjusted for seasonality.

Total employment growth over the past year was seen in all but seven counties. I am not too concerned about the markets that shrank as they were, in general, very small declines in equally small counties.

Unsurprisingly, year-over-year, King County (+3.3%) grew at the fastest rate. This was followed by Skagit (+3.1%), due to a jump in hospitality employment that I attribute to the pending reopening of the Semiahmoo Resort. Whatcom (+2.4%), Pierce (+1.9%), and Thurston (+1.8%) Counties rounded out the other top performing counties.

As mentioned previously, job losses were generally modest, with San Juan (-5.8%), Cowlitz (-2.8%) Grays Harbor (-2.4%), and Clallam (-2.0%) Counties suffering the greatest percentage losses. In aggregate, the areas that saw a reduction in employment lost a total of 2,460 jobs. We would note, however, that no counties saw losses between the end of the first quarter and the end of the second quarter of this year.

In terms of absolute numbers, it was not surprising to see the primary central Puget Sound region leading the way in terms of total growth. The tri-county market added 47,500 jobs over the past 12 months, including 36,700 jobs in second quarter, suggesting growth rates of 2.75 percent and 2.11 percent respectively.

I did mention earlier that I saw some growing pains in our region, and this is clearly reflected in the unemployment rates. Five counties saw their unemployment rates rise between the end of the second quarter of 2012 and the end of the current quarter.

The reason for this is that, as the economy continues to grow, more people will start to look for work, and the unemployment rate is calculated based upon the number of people actively looking for work. With that in mind, do not be surprised to see improvement in the unemployment rate start to slow—specifically in the more urban counties. In June, 14,900 more people started to look for work, and over 23,000 are now seeking employment that were not a year ago. This is certain to have an effect on the unemployment rates this summer.

Our economy continues to expand at a reasonable pace, with the total market growing by 2.3 percent, matching that of the state and above the U.S. rate of 1.7 percent. As such, I am pushing the grade back up from a “B” to a “B+” for this quarter.

Regional Real Estate

We have been looking for balance within the real estate market for several years now. During the crash, there were clearly far more sellers than buyers, but when we found the bottom of the market and prices started to rise, the tables were turned with considerably more buyers than sellers. In as much as we are still far from truly finding the market equilibrium that we have all been waiting for, I am pleased to announce that we are getting closer.

The region contained within this report reported 19,158 sales in the first half of 2013—a 16 percent improvement over the same period in 2012, and a remarkable 51 percent improvement over the first quarter of 2013.

All but two counties saw sales improve in the first half of the year compared to the first half of 2012, with only modest declines in San Juan and Grays Harbor Counties. When comparing sales volumes between the first and second quarters of this year, not only did every county other than San Juan see the number of transactions improve, but there were also some remarkable spikes.

In Kittitas County, for example, sales grew by 82 percent between first and second quarters. All the counties analyzed experienced double-digit sales growth, apart from the volatile San Juan County where sales dropped by two percent.

This is very positive but does not address the issue of supply.

I was pleased to see a long-awaited improvement to inventory levels. Within the area encompassed in this analysis, current listings were measured at 19,185. This is still down by 11.6 percent from the same period in 2012, but it is up by over 29 percent from the end of the first quarter, and up by 8.4 percent over May’s total listings.

The number of homes for sale grew the most in Kittitas County, where listing inventory was 50 percent above that seen at the end of the first quarter. This was followed by Jefferson (+47%), Clallam (+42%), King, and Snohomish Counties, which each expanded their listing inventory by 41 percent. As compared to May of 2013, listings increased the most in Snohomish County (+15%), followed by Clallam (+14%), King (+11%) and Jefferson (+10%) Counties.

That said, I would note that total listing activity is still down by 49 percent over June 2008. In as much as I doubt that we will see that type of activity in the foreseeable future, we are getting back to levels of inventory that were seen in the earlier part of the last decade.

As shown in the chart to the right, 14 counties saw an increase in average sales prices as compared to a year ago, with just two exhibiting prices below that seen in June of 2012. In aggregate, home prices in the counties analyzed were 10.2 percent higher at the end of the second quarter of 2013 than seen a year previously.

Of the counties that saw appreciation, the most pronounced gains were in Cowlitz County, where prices rose by 24.4 percent. Significant additional gains were seen in Island (+17%), Pierce (+16.6%), San Juan (+16.1%), Kittitas (+15.2%), and Skagit (+15%) Counties. Declines were limited to Kitsap (-3.7%) and Thurston (-0.9%) Counties.

When we look at the entire second quarter, the average sales price for the region grew by 11.4 percent. The greatest quarterly improvement was seen in Mason County, where prices rose by 28 percent. In total, eleven counties saw sale price growth in the quarter with five seeing a decline.

As we look along a more extensive timeline, we note that all but three counties saw sale prices in June at levels higher than those seen two years ago. Clearly this is encouraging. We are still at prices that are below those from June of 2008, but I believe that we are likely to see some counties exceed values seen five years ago in the not-too-distant future.

Interest rates spiked in June, following comments made by the chairman of the Federal Reserve, who suggested that the economy is improving and that the committee is considering tapering the purchase of both treasuries and mortgage-backed securities. This took the market somewhat by surprise and led to a very rapid increase in rates.

The effect of this is still unclear and rates have pulled back modestly since

the peak seen in early July. What is clear, however, is that this move has motivated many would-be buyers that were thinking of getting into the market to get off the fence and into the hunt! This is putting increasing demand on the market and, I believe, should lead anyone thinking of listing their home for sale to seriously consider marketing earlier than later. Rates are highly unlikely to go down and, ultimately, purchasing power will decline if they rise more rapidly.

I am upping the housing market’s grade from a “C” to a “C+”. We still need substantially more listings in our market but, all in all, we are heading in the right direction.

Conclusions

Our economy continues to expand at a rate that exceeds the U.S. rate, as well as that of three-quarters of the country.

If there is some news that is not quite so positive, it is that we are seeing job gains in industry sectors that are not particularly high-paying. This can have a negative effect on consumer spending and slow our overall growth.

That said, gains are gains! The increase in the unemployment rate is not something to get worried over. In fact, to some degree, it should be lauded. More people deciding to look for work is certainly indicative of an improving business environment.

As far as the housing market is concerned, improvement is steady, but at the risk of sounding like a broken record, we need more inventory. I also stand by my earlier statement that those considering selling their home may be well advised to get going sooner than later. Waiting for prices to rise further may be a folly in an environment where interest rates are increasing. It is also interesting to note that every one percent increase in interest rates drops purchasing power by 10 percent. Food for thought!

In all, I remain pleased with our progress to date. As I think about the last five years that this report has been in existence, I am reminded of the times when it was very hard to find any positive news to report. Times have certainly changed and I remain optimistic that I will continue to be able to discuss positive news as we move forward.

Matthew Gardner

Mr. Gardner is a land use economist and principal with Gardner Economics and is considered by many to be one of the foremost real estate analysts in the Pacific Northwest.

He is also the retained economist for the Master Builders Association of King & Snohomish Counties. He has twenty-five years of professional experience in the U.K. and U.S.

He has appeared on CNN , NBC and NPR news services to discuss real estate issues, and is regularly cited in the Wall Street Journal and all local media.

More • August 1, 2013

Modern and Luxury Style “Look Books” on Pinterest

by Windermere Staff

Over the past year, we have really enjoyed using Pinterest to organize some of our favorite real estate and home design resources. Because of increased demand we are expanding some of our “boards” to include more modern and luxury home features. For more than a decade, Windermere’s Premier Properties™ program has addressed the unique needs of our luxury market clientele. Our extensive network of luxury home experts have earned a reputation for providing exceptional service to discerning clients interested in buying or selling homes in some of the Western United States’ finest neighborhoods.

We want to share with your some of our favorite home inspirations. Follow us at Pinterest.com/WindermereRE.

Introducing our new Modern and luxury style “look book” boards:

More • July 31, 2013

Windermere Foundation Quarterly Report

by Christine Wood

Greetings from the Windermere Foundation,

Because of you and the generous support the Windermere Foundation has received so far this year, we disbursed over $578,000 to qualifying social service organizations dedicated to serving low-income and homeless families throughout the Western U.S.

Many offices choose to donate funds to their local public schools, helping to ensure students have their most basic needs met so that they may succeed in school. The following is an inspiring testimonial from one of the school program administrators.

“…As I look back over the years of our partnership, I see the evidence that your support has produced. Children, who might never have had the opportunity otherwise, went to summer camps. Families on the verge of eviction have received the help they needed to stay in their homes or move into apartments. Homeless children have been able to spend secure nights, off the streets. And, in addition, you have helped families keep their lights on and water running. There are so many ways you have ministered to our children and families over the years, that my humble thank you seems inadequate.

Truly, on behalf of others, you have thrown your pebble into the pond; who knows where the ripples of your generosity will end in the lives of those you have helped.”

– Program Manager, FSWP

Seattle Public Schools

Many offices also donated funds to their local Boys and Girls Club. The mission of the Club programs and services is to promote and enhance the development of boys and girls by instilling a sense of competence, usefulness, belonging, and influence. More than $32,000 was donated to local Boys and Girls Clubs by offices in California, Hawaii, Montana, and Washington.

Thank you for your continued support of the Windermere Foundation. Your generosity is truly making a difference in the lives of many families in our local communities.

Best,

Christine Wood

Facebook: https://www.facebook.com/windermerefoundation

YouTube: http://www.youtube.com/WindermereRealEstate

Buying • July 25, 2013

Looking to Mexico for Retirement, Resort, and Second-Home Choices

by Guest Author

When discussing the idea of 10,000 Baby Boomers reaching retirement age every single day, I am often asked the question, “How many of these 76 million Americans will actually invest in a second-home or retirement home in Mexico?”

Fact: Mexico is currently the number one foreign retirement destination for North Americans.

During the next two decades, as many as four million people from outside of Mexico are expected to purchase and own real estate in Mexico. And the number of foreigners who currently own property in Mexico is expected to triple.

How is this possible? A better question is, “How is this not possible?”

The second-home and retirement destinations in Mexico are located on some the most livable real estate on earth. Retiring Boomers, as well as savvy investors looking for appreciation and perhaps income from a second-home, know that Mexico is a smart choice. With a thriving middle-class, Mexico’s economy has been enjoying the strongest GDP growth in all of the Americas, surpassing the U.S. and Brazil in recent years.

Fact: Mexico’s strong economy and stable government has changed the immigration equation such that more workers and their families are currently entering Mexico than are leaving.

Informed Boomers planning for an active and comfortable lifestyle know that Mexico offers security and safety, accessibility, a warm and nurturing climate, quality health-care services, and a family-oriented culture deeply rooted in a rich history. The menu of retirement and second-home choices include waterfront and marina properties with modern amenities, signature golf course developments with inspiring views, beach clubs and spas, green sustainability, restaurants, numerous outdoor activities, and historical sights. Mexico offers condominium developments from simple to spectacular (including a variety of fractional ownership options), and single-family homes in every price range, size, and location.

Tom Kelly, the long-time syndicated Seattle business writer, talk show host, and author of numerous books and articles on Mexico real estate, states the following in his recent book Bargains Beyond the Border, “In Mexico, you will discover not only high-quality health care but also an impressive standard of living. And, property taxes, which seem to rise annually in the States, are often less than 10 percent of a U.S. home.”

He goes on to write, “According to (a) recent study by the National Association of REALTORS®, consumers are making ‘a lifestyle choice’ and turning to second homes sooner in their lives. That finding affirms what we know about Baby Boomers: they are prime candidates for retirement and second-home purchases who define themselves by personal experiences and adventure. Interestingly, they are now joined by their children – the proud members of the Gen-X and Gen-Y generations – who view practical experiences as paramount in their lives.”

Kelly’s book then recommends its “Top 10 Places to Live and Invest in Mexico”, starting with La Paz, the 500 year old capital city of Baja California Sur, located on a picturesque bay on the Sea of Cortez, and named after its discoverer. He stresses the safety and investment opportunity in this thriving city of 225,000 residents, “which is the capital of Baja California Sur and the center of government, commerce, education, health care, and environmental research for the entire region.” Kelly adds that, “The streets of La Paz are clean, and unlike many popular Mexican resorts, there are no condo hustlers at the La Paz Airport, or high-rise developments along the malecon.”

Known as the “City of Peace”, La Paz has a rich history, a high standard of living, and an easygoing lifestyle. And as Kelly points out, La Paz is “one of the few places in the world where the desert literally collides with the sea.” He cites the 5-Star Costa Baja Resort (www.costabajaresort.com) as the perfect example of what La Paz has to offer retirees and second-home owners.

Located five minutes north of the town’s malecon, or seaside strand, the 500-acre Costa Baja Resort combines beachfront homes, condominiums, villas, and single family homes with a world-class marina, Beach Club and Spa, spectacular Gary Player Signature golf course, shops, and health clinic – and at relatively affordable prices. Kelly says that retirees and investors are attracted to the Costa Baja setting for golf and lifestyle amenities, as well as its protected marina and access to some of the best beaches, fishing, diving, and eco-tourism on the planet.

Fact: foreign owners in Baja California currently benefit from the Fideicomiso, a 50-year renewable and transferable Bank Trust which allows irrevocable and absolute ownership rights to property in Mexico.

The Fideicomiso also simplifies and protects the ownership rights of all of the beneficiaries and their heirs and designees. To understand and appreciate the safety and benefits of owning property in Mexico it’s important to work with a REALTOR® Member of AMPI (Mexican Association of Real Estate Professionals).

For more information about buying or selling real estate in Mexico, please contact Jay at 877-909-2226 or at JayWest@Windermere.com.

Jay West, CIPS e-PRO RSPS TRC, is the Owner/Broker of Windermere Los Cabos. With more than 40 years in business, Jay has extensive experience serving international clientele seeking residential and resort real estate opportunities in both the U.S. and Mexico. Jay has lived in Mexico since 1994 and is a Bi-National REALTOR®.

More • July 22, 2013

360modern™ and Windermere Join Forces

by Guest Author

It goes without saying that modern architecture is known for its simplicity of form and absence of excess. In other words, it is the antithesis of cookie-cutter design. When you combine this with the Pacific Northwest aesthetic, the result is something quite unique – and beautiful. The result of which defines the 360modern™ brand.

But, before I go into whom and what is 360modern™, I should start with my wife and business partner, Heidi. Heidi’s design aesthetic was heavily influenced by her grandparents who had a penchant for Danish furniture and artwork. Upon moving to Seattle after college, Heidi was immediately drawn to the city’s design influences which were largely shaped by the area’s Scandinavian founders. Her love of the real estate and design industries ultimately persuaded her to get into real estate sales in 2000.

Also a native of the Pacific Northwest, I have been building homes since I was 22 years old. I’ve always had an affinity for modern craftsmanship because I was taught that when it’s done right, it’s timeless. Perhaps that’s why I have always appreciated the architectural styles of local modernist legends, such as Paul Hayden Kirk, Fred Bassetti, and Paul Thiry.

Not long after Heidi and I married, we decided that we wanted to combine our passions for real estate, architecture, and modern home design. The result of that passion would eventually bring us to 360modern™.

360modern™ is an exclusive marketing program that focuses solely on the purchase and sale of Modern homes. It is our belief that the unique characteristics of Modern architecture requires specialized marketing to target buyers who are actively searching for Modern homes. Qualifying homes are also featured on the www.360modern.com website, providing enhanced online exposure that is unique to the 360modern™ program.

Founded in 2002, the 360modern™ brand has been a pioneer for modern marketing. We’re immensely proud of how far it has come over the past 11 years, but we always knew it could be more – and that’s why we decided to partner with Windermere Real Estate.

As the largest regional real estate company in the Western U.S., and the largest real estate company in the Puget Sound region, we felt strongly that Windermere would make a worthy partner for 360modern™. Windermere’s commitment to marketing and technology were obvious draws, but it was their entrepreneurial spirit that really got our attention. We were pleasantly surprised by their passion for supporting and growing new business and that’s what ultimately sealed the fate of our partnership.

Modern design means many different things to many different people. For some it’s all about open spaces, clean lines, and minimalist design. For me, Heidi, and our team, it’s about this and more. With the support of Windermere, our goal is to become the ultimate source for modern lifestyles by serving the unique needs of those who are passionate about all things modern.

We’re invested in building the modern community through our involvement with architects, non-profits, historical groups, modern furniture and art purveyors. We invite you to join us by visiting our newly redesigned 360modern™ website. There you can view modern homes for sale, meet our team, and connect with our partners in the modern community. Our goal is to grow beyond the Seattle area, so stay tuned for updates in the coming months. And if you have any feedback or suggestions, please don’t hesitate to contact us.

Rick Ward is CEO of 360modern. He lives in the Seattle neighborhood of Magnolia with his wife and business partner Heidi and their two sons. In addition to managing 360modern, Rick and his business partner Kelly Byrne build compelling architecturally modern homes with their company Next Century Modern. If Rick has any spare time, he enjoys golf, skiing and travel – sometimes all at the same time.