We at Brazen Sotheby’s International Realty in Bellevue would like to congratulate our affiliate professionals recognized on The Wall Street Journal/REAL Trends fifth annual Top 400 Real Estate Professionals ranking.

The Sotheby’s Network had 10 out of the 100 top agents by sales volume list, including number one and two ranking agents in the United States! Affiliate agents were also recognized on the top teams by sales volume ranking.

We are pleased to be able to offer your real estate investment the strength of the Sotheby’s Real Estate Network, and will continue to strive to these high standards for all of our clients. Rest assured your Bellevue, Eastside, Seattle Area, Western Washington and Nationwide properties are in the best hands with Brazen Sotheby’s International Realty and the Sotheby’s Real Estate Network.

Housing activity during July was not a surprise to the Northwest Multiple Listing Service, although brokers are wondering why more buyers aren’t taking advantage of the phenomenal interest rates. This month showed a slight improvement for both pending sales and median prices over last month, according to the NWMLS.

Meribeth Hutchings, a director for the NWMLS declared “It’s a housing trifecta”, when asked about July’s activity.

Low prices, the lowest interest rates on record and lots of inventory offer unprecedented opportunity for buyers, Hutchings explained. The broker/owner of Windermere Real Estate/Lake Stevens Inc. said homes have never been this affordable in her 28 years in the business.

Brokers reported 5,571 pending sales across the 21 counties in the Northwest MLS service area. That’s up slightly from June when they reported 5,547 pending sales, but down about 23 percent from twelve months ago when there were 7,279 pending sales.

The latest MLS report showed year-over-year increases in inventory, a double-digit decline in closed sales and a minor drop in prices:

* At month end, there were 44,770 properties for sale system-wide, a gain of 5.8 percent from twelve months ago. The inventory includes 10,850 new listings added during July (9,308 single family homes and 1,542 condominiums).
* Brokers reported 4,491 closed sales of single family homes and condominiums (combined) during July. That’s down 18.7 percent from the same month a year ago when members tallied 5,527 closed sales.
* The median price for last month’s closed sales was $274,990, down 1.4 percent from the year-ago figure of $279,000. Prices rose in nine counties.
* Last month’s median price, compared to June, is up about 3.8 percent overall.

“The tax credit pulled some first-time buyers from the second half of the year into the first half,” stated NWMLS director Pat Grimm, managing broker, Windermere RE/Capitol Hill, Inc, echoed by the National Association of REALTORS®.  In a statement accompanying its report on nationwide pending sales for June, NAR said it expected near-term home sales to be noticeably lower in contrast to the spring surge when buyers rushed to take advantage of the home buyer tax credit.

Dick Beeson, NWMLS director, suggested the market has adjusted to a “non-stimulus environment.”  No tax credit has caused some buyers to put off their purchase, he said, but added, “Many others are continuing to take advantage of superlative interest rates and bargain prices.”

Hutchings said July business was “typical”, as it’s “usually a slow month because of vacations.” She did note that despite the end of the tax credit, volumes for her office were comparable to a year ago.

Another noteworthy point, Grimm said the influx of first-time buyers taking advantage of the tax credit has pulled move-up buyers into the market. “We’re seeing increased sales in the higher-end market,” he remarked. For instance, he said a home in Seattle’s Capitol Hill neighborhood sold for $1.045 million in just four days. “The seller had priced the home well and it sold within four percent of the asking price,” Grimm stated.

In looking to the future, according to industry officials, jobs and consumer confidence are critical to maintaining and building momentum.

Despite the fact that a lot of homes have lost more than a third of their value over the past three years, the majority of Americans want to be homeowners, according to the latest surveys. Especially in the markets that are historically stable. Bellevue, Kirkland, Redmond and other Eastside locales have not had the extreme downward trend the rest of the county, or even the state has had.

Bellevue real estate prices are down only 3.5% from median price in 2009, when compared to 2008. King county as a whole is down approximately 10%. Prices were down from 2007 to 2008 both in Bellevue and the rest of the county by a much higher rate. One factor is an increase in short-sales and foreclosures. This tends to skew Bellevue real estate sales and prices downward.

Another thing to mention is that in Bellevue there are fewer houses up for sale. This statistic can tell you that the foreclosure mess is getting cleaned up and those who wanted to sell their homes have done so.

Here are five reasons why buying real estate in King County is a good idea:

1. House values in Bellevue, Kirkland and Redmond are down less from 2008 to 2009 than from 2007 to 2008.
2. A good chunk of the foreclosures have been cleaned up.
3. Interest rates remain low, fluctuating around 5.25% to 5.75.
4. Federal Tax credits are available to ALL home buyers ($8,000 to first-time home buyers who haven’t owned a home in more than 3 years, $6,000 for home buyers looking for a new residence).
5. Great values abound. Sure, the median home prices in Bellevue and surrounding areas is down 3.5%. However, there still are a number of short-sales and distressed properties that you can pick up at a 10% to 20% discount or more.

So to sum it up, if you’ve been waiting for the market to bottom out, now is probably the time to take action. There are some great deals to be found, and the interest rates are the lowest they have been in forty years!  We will no doubt look back on these years as a golden real estate buying opportunity.

According to a story in the pnwlocalnews.com by Sandeep Krishnamurthy, the Eastside and Bellevue could explode with growth in the next 20 years. This article features 5 reasons why:

1. Microsoft
Microsoft is doing well, despite the pressures of renewed competition. Windows 7 is a hit, as is Sharepoint. With high hopes for Bing as well, Microsoft is still a thriving employer in the area.

2. Decoupling
Along with cultural presence and the desire for local consumption, the geography of Bellevue will be a significant factor in how the future economics plays out. With a possibility that both bridges may have tolls in the future, Sandeep believes these factors and others will eventually lead to a decoupling of the Eastside from the Seattle economy, where companies will have offices on both sides of the lake.

3. Diversity
Bellevue is much more diverse than Seattle with Chinese, Indian, Japanese, Russian, Romanian, Iranian and other ethnic communities represented. This brings an enriched and empowered global perspective to Bellevue, putting the Eastside in a favorable position for the future.

4. Ethos of Pragmatism
A pragmatic ethos is deeply embedded in Eastsiders… parents want educators to create opportunities that will get their kids jobs in the best companies in the area. This attitude will be guiding us into the future allowing us to make the right bets along the way.

5. Entrepreneurship
The Eastside displays the potential to become one of the leading entrepreneurial centers of the nation. Technological companies in areas such as biomedical devices, clean technology, gaming, online services and software lay the foundation for more world class companies to emerge in the future.

Read the full unabridged article at http://www.pnwlocalnews.com/business/99860919.html

We received a note from Amy Parker, Manager of Interactive Marketing Solutions for Sotheby’s International Realty, that one of our listings will be featured on the home page of Sothebys.com from July 15th through the 30th.  This incredible exposure is exciting – we’re proud to be part of Sotheby’s International Realty Network’s prestigious showcase.

The 30-year fixed-rate mortgage average fell to a record low of 4.58% for the week ending July 1, Freddie Mac reported Thursday. In the prior week, the average was 4.69%. The year-ago average was 5.32%. Rates on 15-year fixed-rate mortgages also reached a new record low, averaging 4.04%, down from 4.13% in the prior week, and 4.77% in the prior year.

Read full story: Freddie Mac: 30-year Fixed-Rate Mortgage Average 4.58%, by Ruth Mantell, MarketWatch, July 1, 2010.

Plenty of jobs, great schools, safe streets, low crime, lots to do, charm, and other features make Bellevue great for raising a family.

Bellevue top 100 rank: 4
Population: 124,000
Unemployment: 5.8%

As reported by Jessica Levine, Bellevue’s compact downtown is loaded with new skyscrapers that rise above Lake Washington — all surrounded by mountain views when the clouds part. Bellevue’s jobless rate is more than two points below that of Seattle, thanks to a recent addition of jobs from Microsoft (moved 6,500 positions here), T-Mobile, Verizon, and Expedia. Bellevue has more jobs than it does residents!

The population is diverse, nearly a quarter of Bellevue residents are Asian, and nearly a third are born outside the U.S.

The town’s high schools are consistently among the state’s top rated, and arts and entertainment abound, including a philharmonic orchestra, fine arts museum, botanical garden, youth theater, annual jazz festival, and 74 parks!

Click here for full story and some interesting Bellevue statistics.

Congress Approves Homebuyer Tax Credit Closing Deadline Extension

Congress approved an extension to the June 30 closing deadline for the home buyer tax credit, hours before it was set to expire. The move will give would-be buyers who signed a purchase agreement by April 30 more time to close on those deals and receive the credit that is worth up to $8,000. The new deadline is Sept. 30. The Senate approved the measure unanimously on Wednesday, one day after the provision sailed through the House of Representatives with little opposition. The President is expected to sign the measure soon.

• The extension is only good for those buyers who were under contract by April 30. Someone who signed a contract after April 30 and buys a home by Sept. 30 isn’t eligible for the tax credit.
• The Senate also passed an extension of the federal flood insurance program until Sept. 30. The change is retroactive to June 1, when the program had lapsed.

Full article: Congress Approves Tax Credit Closing Deadline Extension, by Nick Timiraos, Wall Street Journal

San Francisco

Rebounding technology stocks and limited housing supply are lifting San Francisco real estate as buyers compete for properties and drive up prices.

Sales of houses and condominiums in San Francisco jumped 50% in the first quarter from a year earlier and the median price rose 5.4%, according to a multiple listings analysis by
Terradatum Inc.

House values will gain 7% this year, the biggest annual increase since a 9% advance in 2005, Rosen Consulting Group forecast last month “San Francisco has conditions of very restricted supply and lots of things that can push demand: an attractive climate, innovative economy and high quality of life,” said Harvard University economist Edward Glaeser.

See full story here: Tech Lifts S.F. Prices as Ocean View Gets 26 Bids by Dan Levy, Bloomberg.

Boston

Boston-area real estate demand has seen a resurgence as buyers show increased confidence about
the economy and job security, real estate professionals and economists say. A first-time home
buyer’s tax credit injected life into the lower end of the market that brokers see as a potential setup
for strong sales during the summer, assuming that pent-up demand stretches higher up on the
housing “food chain.”

Many real estate professionals and economists say the end of the recession in late 2009, an uptick
in consumer confidence and a decline in the jobless rate add up to a brighter housing outlook.
“Absent any national situation that severely dampens consumer confidence, it looks like the greater
Boston market continues to be definitely on the upswing,” said analysts at HouseSaavy.com, an
online real estate research organization based in Norwell, Mass.

See full story here: Boston-area Housing Market Rises with Economic Tide by Ros Kransey, International Business Times.

Westchester County NY

Comparing this April with last, the New York State Association of Realtors reported a 60% jump in
the number of single-family home sales in Westchester County, N.Y., with 18% selling for
$1 million or more. Also in April, the median sales price of a single-family home in the county rose
to $590,000, according to the real estate group. That compares with $532,000 in the first quarter
of 2009. The increase in the median is a direct reflection of more sales at the high end, the
association said.

See full story here: (subscription required) In Westchester, the Sales Pace for High-End Houses Picks Up by Elsa Brenner, Wall Street Journal.

May Foreclosures Down 3% from April

U.S. foreclosure filings continued to level off in May, decreasing by 3%
compared to the previous month, according to industry tracker
RealtyTrac. The filings, which include default notices, scheduled auctions
and bank repossessions increased less than one percent compared to May
2009, after the first decrease in four years last month over the same
period a year before.

The tracker also found that 10 U.S. states accounted for over 70% of the
national total. California alone accounted for more than 22% of the total
nationwide.

“The numbers in May continued and confirmed the trends we noticed in
April: overall foreclosure activity leveling off while lenders work through
the backlog of distressed properties that have built up over the past 20
months,” said James Saccacio, RealtyTrac chief executive officer.

See full story here: U.S. Foreclosure Activity Decreases in May posted at AFP.

Freddie Mac: Mortgage Rates Drop Near Historic Lows

Bond yields fell and mortgage rates followed, allowing the 30-year fixed-rate mortgage to hover
near its record low set late last year, Freddie Mac’s chief economist said.
The 30-year fixed-rate mortgage averaged 4.72% for the week ending June 10, down from
4.79% last week and 5.59% a year ago, according to Freddie Mac’s weekly survey of
conforming mortgage rates.

The 15-year fixed-rate mortgage set a record low for the fourth week in a row, averaging
4.17% this week, down from 4.20% last week and 5.06% a year ago.

“The Federal Reserve reported in its June 9 regional economic review that the economy
strengthened in all 12 of its Districts over April and May,” said Frank Nothaft, Freddie Mac vice
president and chief economist.

See full story here: Mortgage Rates Drop by Amy Hoak, MarketWatch.

The latest Northwest Multiple Listing Service press release reported tapering home sales in May after the April surge brought on by the tax credit deadline.

“Leading up to its expiration, the tax credit caused a surge of home sales, but a surge can only be sustained for so long,” Lennox Scott reports. “What we’re seeing now is a natural adjustment. As consumer confidence continues to improve in the coming months, we expect to see the buyer pool replenish itself which should be followed by an increase in home sales.”

Listing activity also sagged after strong upticks in March and April during the buildup before the lapse of incentives. Brokers added 9.385 new listings to inventory last month, down nearly 17 percent from year-ago totals. The additions included 8,122 single family homes and 1,263 condominiums.

NWMLS director Dick Beeson notes the “extremely low interest rate phenomenon” is expected to last through the summer and into fall, which he believes will help give a nudge to buyers that “no longer can look to the tax credit for incentive.”

On a more optimistic note, Frank Wilson, another MLS director and the managing broker at John L. Scott, Inc. Poulsbo, agreed the slowdown during May was due in part to the end of the incentive program, but noted overall activity so far this year is stronger than a year ago.

Download the full news release for more in depth information and statistical summary charts for May 2010 market activity.

This is the second in a 2-part series sharing news of optimism for recovery in the real estate market.

New York Metropolitan Area
Last week the National Association of Realtors reported sales of existing homes up 7.6% in April over the same month last year driven by a few especially strong markets in the Northwest and Northeast, including New York. Existing home sales in New York City and surrounding suburbs showed a 39.6% gain, the fourth largest rise in the country after Portland 49.2%, Pittsburgh 42.2% and Boston 41.8% sales activity increases. See full story here: Strong Markets Pump Up Home Sales by Robbie Whelan, Wall Street Journal.

Pittsburgh
Boosted by the federal tax credit average home prices in the Pittsburgh region increased 7.7% over a year ago. The average sale price jumped to $146,049 from $134,756, according to RealStats. “The market here is still good. I have three offers coming in on one of my properties, and that may be because mortgage rates have dropped even lower,” George Hackett, president of a Pittsburgh real estate company. See full story here: Pittsburgh Home Prices Surge by Sam Spatter, Pittsburgh Tribune-Review.

Massachusetts
Massachusetts home sales surged in April as buyers rushed to take advantage of low
interest rates, affordable prices and the final days of the home-buyer tax credit.
Last month, 3,357 single-family homes were sold in Massachusetts, compared with 2,351 for the same month last year – a stunning 43% hike and the 10th consecutive month of increased sales, according to the MLS Property Information Network. The median price of a single-family dwelling increased by 7%, marking the fifth straight monthly increase over the previous year. Condominium sales were also up, according to MLS data. A total of 1,546 condos changed hands in April, a 62% hike for the same period last year. “Confidence is building,” said William Dermody, a regional vice president for the Massachusetts Association of Realtors. See full story here: Mass. Home Sales Soar in April by Thomas Grillo, Boston Herald.

Michigan
April home sales in Michigan rose by 9.46% in April from 10,042 in April 2009 to 10,992, according to the Michigan Association of Realtors. The average price in Michigan for existing home sales in April rose nearly 15% from $88,171 in April 2009 to $101,282. See full story here: Michigan Existing Home Sales Up by Greta Guest, Detroit Free Press.

California
An estimated 37,481 new and resale houses and condos were sold statewide in California last month. That was up 0.5% from 37,295 in March, and down 1.3% from 37,967 for April 2009. The median price paid for a home last month was $255,000, unchanged from March, and up 15.4% from April 2009. The year-over-year
increase was the sixth in a row, following 27 months of year-over-year decline.
Of the existing homes sold last month, 38.1% were properties that had been foreclosed on during the past year. That was down from a revised 40.3% in March and down from 54.6% in April 2009. See full story here: California Statewide April Home Sales by DQNews.com.

Las Vegas
The price of existing homes in April in Las Vegas rose to its highest level in more than a year, according to figures released Tuesday by SalesTraq. The median price of existing homes closed in April was $126,000, the highest median price since it was $134,000 in March 2009, the firm reported. The price is $6,000 higher than March 2010. Prices had been expected to increase since foreclosure sales have declined in recent months. See full story here: Report: Home Prices at Highest Level Since March 2009 by Buck Wargo, Las Vegas Sun.

There are many reasons it is a good time to buy real estate, and we’d like to share our optimism. This is the first in a 2-part series that includes links to news sources for more information.

1. Falling interest rates, an improving economy and the effects from the last bit of economic stimulus are driving the revival. In April existing home sales jumped 23% from the same time last year according to the National Association of Realtors. New home sales soared 48% over a year ago… and a growing number of economists believe the drop in housing prices is at an end.  See Is the Housing Market on the Rebound?” by Stephen Gandel, Time Magazine for further reading.
2. U.S. mortgage rates are at historic lows due to the European debt crisis. Average rate for 30-year fixed loan is 4.87%, according to Bankrate.com, the lowest rate in the last 30 years since they started keeping track. Chief economist at Moody’s says “It’s the best time in our generation to buy.”  See Mortgage Rates at New Lows, Thanks to Europe’s Debt Crisis by Mark Koba, CNBC for further reading.
3. For the second month in a row existing homes sales increased as buyers took advantage of the home-buyer tax credit. Year-over-year existing home sales were up 22.8% in April, with median price increasing 4% over a year ago. See Existing Home Sales Buoyed by Tax Credit by Jeff Bater and Darrell A. Hughes, Wall Street Journal, for further reading.
4. Largest year-to-year gain in Case-Shiller since 2006. Following 37 consecutive monthly declines in the home price index, February and March saw increases, the March gain of 2.42% was the largest monthly increase in the Composite-20 index since October 2006.  See Largest Year-to-Year Gain in Case-Shiller Since ‘06 by Mark J. Perry, CarpeDiem.com for further reading.

Sotheby’s International Realty Affiliates LLC is in the process of building a digital marketing solution called the Cascading Website Platform which will include a new sothebysrealty.com, Sotheby’s International Realty Broker and Sotheby’s International Realty Sales Associate website solutions. As part of the Cascading Website Platform, one of the many unique features may be a language translation service that will allow you to submit your listing descriptions and comments to be translated by a professional, human translation service that specializes in language translation for the Real Estate industry.

We’re excited to be able to have access to this new tool in order to expand accessibility to non-english speaking clients, furthering efforts to give our sellers the highest possible exposure and success.

We recently received notice that the Sotheby’s International Realty Network  has signed a 20-year franchise agreement with a company wholly owned by the Jon M. Huntsman family. As part of the transaction, the Huntsman family affiliate company acquired the existing Sotheby’s International Realty offices in the Jackson Hole, Wyo., and the Driggs and Sun Valley, Idaho, markets.

The offices in the Jackson Hole and Driggs region now will operate as Jackson Hole Sotheby’s International Realty and the offices in Sun Valley will do business as Sun Valley Sotheby’s International Realty. Clayton Andrews and Joanne Young will continue to manage these offices.

Jon M. Huntsman is the founder of Huntsman Corporation and a well-known and respected American businessman and philanthropist whose family has significant real estate investments as well as philanthropic and personal interests in Idaho and Wyoming. His son, David Huntsman, will direct the Sotheby’s International Realty operations in both regions.

Full Press Release Attached

“While the tax credit has gone away, the buyers haven’t,” observed Northwest Multiple Listing Service board member OB Jacobi.

Jacobi believes the recently expired tax incentives accelerated the recovery, but feels the rising consumer confidence is what’s driving the rise now.

9,438 pending sales were reported by Northwest MLS brokers during April, a more than 36% increase from the same month a year ago. 7,368 of these were in the four county Puget Sound region, the highest volume in this area since August 2006. Two counties, Grant and Pacific, reported a 200% increase in the number of units sold last month versus a year ago.

Read Full News Release

In the May/June issue of Ocean Homes Magazine our Port Ludlow Log Home was featured as one of the top 25 best oceanfront homes for sale!

Click here for more information about this property.

Original story by Eric Pryne Seattle Times business reporter

The developer of the luxury Bravern complex in downtown Bellevue, bowing to new market realities, is converting one of the project’s two nearly finished condo towers to apartments. (left in photo)

Bellevue’s supply of high-end high-rise condos still exceeds demand, said Dan Ivanoff, managing investment partner at Bravern’s developer, Schnitzer West. “So we’re shorting the supply,” he said.

The switch isn’t permanent, Ivanoff added: The 236 units now for lease in the southern tower will be put up for sale as condos again if the housing market recovers.

Considering all those factors, converting one of the Bravern’s two condo towers to apartments for now “was a prudent investment move for us,” Ivanoff said.

The units that now are rentals could be put up for sale as condos again in 18 to 24 months, he said: “I’m definitely seeing the residential market cutting loose.”

But for now, he added, “I think demand is scared. Demand is concerned about financing. And demand doesn’t want to be first.”

The Bravern isn’t the first new condo project to convert to apartments in the face of declining demand. Schnitzer made the same move last year at Equinox, a 204-unit building in Seattle’s Eastlake neighborhood.

Click here to read full article…

According to this Fannie Mae Survey, nearly two-thirds of Americans think the time is right to buy a house, with a majority believing prices will be the same or higher over the next year, according to a Fannie Mae survey released April 6. The 64% that said it is a good time to buy is just shy of the 66% that said the same thing in 2003 as the U.S. housing market was racing higher, according to the survey. Click here for full survey results.

In addition, according to a Fannie Mae survey released on Tuesday, nearly two-thirds of Americans think the time is right to buy a house, with a majority believing prices will be the same or higher over the next year. More positive data is realized in these poll results – by Al Yoon, Reuters. Click here for full article.

We are pleased to announce the opening of Japan Sotheby’s International Realty in Tokyo.

The firm, owned by Hisashi Kitami, will serve the Tokyo and Yokohama markets. Hisashi Kitami has an exclusive 25-year master franchise agreement for all of Japan and plans to open additional Japan Sotheby’s International Realty offices in key markets across the country over the next several years.

Please see the attached press release for more information.

Welcome to our network!

Mike Good, President and CEO of Sotheby’s International Realty Affiliates LLC, sent us this announcement Wednesday…

PARSIPPANY, N.J. and HONG KONG (April 7, 2010) – Sotheby’s International Realty Affiliates LLC today announced it has signed an exclusive 25-year master franchise agreement with Hong Kong Homes Holdings Limited to develop the Sotheby’s International Realty® brand throughout Hong Kong, with its first office set to open in July 2010. The firm will do business as Hong Kong Sotheby’s International Realty, with Samson Law serving as managing director. The new Hong Kong Sotheby’s International Realty offices will focus exclusively on serving luxury residential clientele.

Law previously established Hong Kong Homes in 1995 as Landscope Real Estate Services Ltd. Hong Kong Homes is a renowned real estate and property consulting business that specializes in the sales and leasing of luxury residential properties, prime offices, retail spaces and investment properties.

According to Michael R. Good, president and chief executive officer, Sotheby’s International Realty Affiliates LLC, Hong Kong is a strategically important market for the brand and this signing represents a key step forward in its overall growth plans across Asia. “Samson Law is uniquely qualified to combine the best of western business practices with local knowledge and experience,” said Good. “Hong Kong Sotheby’s International Realty will be led by a seasoned executive team that has been operating in Hong Kong for more than a decade, and has the talent and expertise we are looking for to build this brand locally.”

“We strive to provide the very best service to our clients, and this is underlined by the significant attention and involvement we give to all our clients and services, both locally and regionally,” said Law. “Over the years, we have acquired an excellent reputation and a credible track record as a leading specialist in our chosen fields, and the Sotheby’s International Realty brand’s reputation as the world’s premium luxury property marketer is a perfect fit for this region.”

The Sotheby’s International Realty network currently has more than 10,600 sales associates located in approximately 500 offices in 38 countries and territories worldwide. Hong Kong Sotheby’s International Realty listings will be marketed on the sothebysrealty.com global Web site. In addition to the referral opportunities and widened exposure generated from this source, the firm’s brokers and clients will benefit from an association with the Sotheby’s auction house and worldwide Sotheby’s International Realty marketing programs.