MID-JANUARY 2018
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Real estate market will continue to stay hot in 2018 BY DAVID FLOAN According to the National Association of Realtors, the sale of homes across the United States is expected to increase 3.7 percent in 2018 compared to 2017. Driving the increase will be a continued lack of housing inventory to purchase. Low inventory is a huge problem around the Puget Sound region as listings sit at record low levels with not much change expected in 2018. The result: not many homes to purchase. When homes are available, they are often off the market in a few days. Popular neighborhoods also continue to see bidding wars, cash offers and sometimes foreign buyers. These conditions make it challenging for anyone looking to purchase a home at any price point. Expectations for Madison Park are no exception. Zillow estimates that the median home value in Madison Park is $1.285 million. This is an increase of 5.8 percent over the past year and that price is expected to rise another 3.4 percent in the next year. As the local market remains hot, potential buyers need to take steps to prepare to buy a home before they start trekking from open house to open house. Potential homeown-
ers looking to buy in the Madison Park market in 2018 should sit down with a trusted mortgage lender and ensure they are in the strongest position to purchase a home. At Evergreen Home Loans, we recommend our homebuyers get preapproved so potential sellers know you are in a strong position to close. Preapprovals involve completing an application and providing income information along with documenting the borrower’s assets. This process goes beyond a basic income verification, so the lender is able to issue a loan approval amount. It also provides homebuyers with their budget constraints as they search for the perfect place to call home. It’s also critical to enlist the services of a local real estate agent who is prepared to move quickly to put an offer on your dream home. As a buyer you need to be prepared to go in with the strongest offer possible. If you drag your feet on a home you love, you will most likely miss out on moving in
a few months down the line. The local real estate market is a challenge, but it’s still a great time to buy a home. Interest rates have only slightly increased from record lows and there are strong financing options for all buyers, even first-time homebuyers. Preparation and putting yourself in the strongest position to buy is the key. With a trusted mortgage lender and a real estate professional at your side, you will find yourself with a competitive advantage that hopefully sees you moving into your dream home in Madison Park in 2018. David Floan is executive vice president of loan production for Evergreen Home Loans.
5 Rules for a More New GOP tax plan Organized Home means fewer deductions for homeowners in the New Year (StatePoint) After the hectic holidays, it’s no surprise that many people commit to getting better organized in the new year. There are plenty of reasons why people obsess over organization and resolve to master it year after year. Household items become easier to find. Rooms all of a sudden seem bigger and more welcoming. Each walk past a tidy linen closet -- where there was once an avalanche waiting to spill forward -- comes with a small sense of accomplishment. Whether you’re after smarter storage or looking to cut clutter, successful resolutions begin with a thoughtful approach.
Say “No” to Clutter
Think Small
Store Decor Wisely
While it’s fun to dream about a largescale routine reset, smaller sustainable actions are key to lasting change. Take it one room or even one drawer at a time to keep momentum positive and to avoid feeling overwhelmed. Doing so also allows you to focus, leading to more creative solutions for taking advantage of under-utilized areas. For example, you may find using over-the door organizers a great way to free up space in home offices and craft rooms.
Everyone has items they keep around for no real reason that aren’t particularly meaningful and don’t serve a purpose. Being able to objectively identify these items makes everything easier. Paring down possessions doesn’t have to be painful. That cardinal shaped cookie jar that you’ve always been on the fence about? It would make an incredibly thoughtful “just because” gift for an ornithology-obsessed aunt. Often, less can literally be more: Consignment shops and eBay make it easy to turn four or five pieces of furniture you “kind of like” into one piece you absolutely love. Everyone loves holiday decorating. Taking down decorations afterward... not so much. It’s difficult to preserve items in a haphazard collection of cardboard boxes, plastic bags and mismatched bins, all crammed into the corner of a garage or basement. Stepping up storage containers can make a big difference. For a wide selection of storage solutions specifically designed for holiday décor, check out Improvements, which offers everything Organized Home, Page 6
Homeownership in doubling the standard the U.S. has been dededuction that all Americlining for most of the cans can claim, increasing last decade. According the standard deduction to to the October 31st re$24,000. That will mean port released by the U.S. fewer taxpayers will itemCensus Bureau, the rate ize their taxes, further of homeownership in the reducing the incentive to U.S. is currently 63.9 perown a home. cent, down from the allLastly, the GOP tax Ray Akers time high of 69.2 percent bill caps the property tax reached in 2004. The new deduction at $10,000. GOP tax bill is expected While this change mostly ASK RAY ABOUT to cause homeownership affects the wealthy, it will REAL ESTATE to decline further. be felt by plenty of midThe Republican tax redle-class homeowners in form plan delivers a large gift to corpora- Seattle. (The good news: the titans of Wall tions and the children of wealth, while at- Street won’t be able to deduct as much of tacking the sacred cow of the middle-class; their property taxes on their Manhattan the mortgage interest deduction. As many penthouses.) as two-thirds of current homeowners are That homeownership will be negatively likely to feel the impact. The new tax leg- affected by the GOP tax bill is not up for islation hurts homeownership three ways: debate. The question is, how much will Today, taxpayers can deduct interest on homeownership be impacted? According home mortgages up to $1 million dollars. to Moody’s Analytics, the Republican tax The Republican tax bill drops the cap to plan will “deflate” real estate prices nation$500,000, limiting the value for real estate wide. Moody’s Chief Economist Mark buyers in cities like Seattle and San Fran- Zandi suggests home prices will decline by cisco where average home prices are higher. about 3 percent. The GOP tax bill also undermines homeownership in another, more subtle way, by GOP, Page 8