Thinking About Buying Green?

Ever wonder if buying a green home is a sound financial investment?  A recent article in the Seattle Times discusses recent statistics and the benefits of buying a green home.  It cites a study by GreenWorks Realty which reviewed the NWMLS King County condominium sales from September 2007 - May 2008 and included only new construction built in 2007 and after.  The statistics reflect that 18.7% of condominiums bought during this period were environmentally certified.  When priced per square foot, these green condominium homes were 28% more valuable than non-classified homes.  A green home may be classified by LEED, Built Green, Energy Star or another 3rd Party classification.   Check out the article regarding green homes and condominums…Buying Green.

In addition to this article, I thought I would highlight a few environmentally certified new construction projects and those under construction seeking some form of green building classification:

Trace North/Trace Lofts - Capitol Hill

Brix - Capitol Hill

Rollin Street - South Lake Union

Enso - South Lake Union

Veer Lofts - South Lake Union

Parc - Belltown

Mosler Lofts - Belltown

Cosmopolitan - Downtown Seattle

Olive 8 - Downtown Seattle

1521 - Downtown Seattle

5th & Madison - Downtown Seattle

220 West Highland - Queen Anne

Hjarta - Ballard

NoMa - Ballard

Florera - Greenlake

Bellevue Towers - Downtown Bellevue

 

Zero Down Financing for Select Developments!

Several home and condominium developments are now offering some very competitive loan programs through Home Street Bank.  Both Woodsong at Coal Creek and Horizon Village at Somerset are offering a Zero Down, No Mortgage Insurance, 5.5%  5/1 Interest Only Arm for those who qualify.  This special finanicing is only available for a limited time, but a great advantage to buyers who were unable to qualify due to higher down payment requirements. 

Currently, these condominium projects are offering 2 bedroom homes ranging from $274,990 to $349,990.  In addition, Park Place condominiums in Edmonds is also offering this Zero Down program.  Park Place currently offers 2 bedroom homes begining at $220,999.

More Developers On Hold…a good thing?

As discussed in many of our previous blogs, the “wait & see” approach has continued through the middle of summer.  It is amazing to watch the natural progressions of the real estate market auto correcting.  Condo Conversions have come to a screeching halt, new construction has been put on hold, and many condo projects have converted to either Apartments or Office/Retail.  Projects like Expo 62 and most recently Moda have been turned Apartments after being fully under way with their sales processes.  Moda came as a suprise - especially due to the fact that they were sold out less than a year ago.

All of this negative news is actually positive for the local Seattle & Eastside markets.  The New Construction Inventory is shrinking, which will eventually start evaporating the oversaturation of resale inventory in the city.  Just under a year ago it was nearly impossible to keep up with all of the construction.  Suprisingly, rising gas prices and worsening traffic reports will continue to play a role in ”Urban Appreciation”.

Other Projects that are on hold or moving to apartments include:  Seneca, Icon Tower, AVA, Insignia, Candella, 1 Hotel & Residences, as well as Vida & Lincoln Tower 2 in Bellevue.   

$7,500 Tax Credit for First-Time Home Buyers

On July 30, 2008 the Housing Assistance Tax Act of 2008 was signed into law offering a $7,500 Refundable Tax Credit to first-time home buyers purchasing a single family residence, condominium or townhome.  This is a great advantage to those first-time buyers who have or who are looking to purchase a home in the near future.   According to the law a “first-time home buyer” is defined as an individual who has not owned a principal place of residence for the last three years.   To be eligible for this tax credit, a home must be purchased on or after April 9, 2008 and before July 1, 2009 and used as the buyer’s principal residence. 

A first-time home buyer may qualify for the tax credit if their modified adjusted gross income (MAGI) is less than $75,000.  For married couples filing a joint return, the income level doubles to $150,000.  A buyer may also qualify for a partial credit if their MAGI is between $75,000-$95,000 or $150,000-$170,000 for joint returns.   

This incentive is not a deduction but a one-time tax credit.  It is essentially an interest-free loan, repaid over a 15 year period.  So if a buyer receives the full $7,500 credit, they would technically owe $500 per year for 15 years.    However, a buyer would not have to begin repayment until two years after the tax credit is claimed.  So if a buyer claims the credit in 2008, they would not begin repayment until 2010 taxes are filed. 

How does the tax credit work?  Let’s say a first time home buyer owed $5,000 in taxes for 2008.  The buyer would not write a check to the IRS, but would receive a check back for the remaining $2,500. If a buyer instead owes $10,000 in taxes, after taking the credit they would owe $1,500. 

For additional information and frequently asked questions check out: www.federalhousingtaxcredit.com.

Pending Home Resales rise 5.3%

Does a number like this predict that the market has bottomed out?  Not necessarily, but it is a great sign that lower prices are driving sales.  Pending sales is the most important indicator to monitor; due to the fact that it tracks contracts that are being signed accepted and are moving towards closing.  July numbers are due on August 25th.   Only time will tell if sales continue to increase.  Stay tuned. 

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