Spring clean your office! This is the perfect time to get rid of some of the old boxes of bills or other sensitive paperwork.  Documents will be professionally destroyed on site and a certificate of destruction can be provided upon request.

Saturdays from 10am to 2pm:
April 7      South Bellevue Office: 14405 SE 36th St, Bellevue, WA    
April 21    Issaquah Office: 1810 15th Pl NW, Issaquah, WA  
June 30   Downtown Bellevue: 11100 Main Street, Bellevue, WA

New tax legislation was signed into law at the end of 2017, and it included some significant changes for homeowners. These changes took effect in 2018 and do not influence your 2017 taxes.  Here’s a brief overview of this year’s tax changes and how they may affect you.

 The amount of mortgage interest you can deduct has decreased.

Under the old law, taxpayers could deduct the interest they paid on a mortgage of up to $1 million. The new law reduces the mortgage interest deduction from $1 million to $750,000.

These changes do not affect mortgages taken out before December 15, 2017.

The home equity loan deduction has been eliminated.

The prior law allowed homeowners to deduct the interest on a home equity loan if the value of the loan was $100,000 or less. The new law eliminates the deduction for interest on home equity loans.

The property tax deduction is capped at $10,000.  

Previously taxpayers could deduct all the state, local and foreign real estate taxes they paid with no cap on the amount. The new law limits the deduction for all state and local taxes – including income, sales, real estate, and personal property taxes – to $10,000.

The casualty loss deduction has been repealed.

Homeowners previously could deduct unreimbursed casualty, disaster and theft losses on their property. That deduction has been repealed, with an exception for losses on property located in a federally declared disaster area.

…AND AN IMPORTANT VICTORY

The capital gains exclusion remains unchanged.

Homeowners can continue to exclude up to $500,000 for joint filers or $250,000 for single filers for capital gains when selling their primary residence as long as they have lived in the home for two of the past five years. An earlier proposal would have increased that requirement to five out of the last eight years and phase out the exclusion for high-income households, but it was struck down.

Find out more about 2018 tax reform.

How does tax reform affect your plans for buying or selling a home?

The changes in real estate related taxes may change your strategy.  I’d be happy to go over your options and answer any questions you may have.

The local real estate market set new home price records in many parts of the region in February. Prices here have grown faster than anywhere else in the country for the last 16 months in a row. Demand remains high and inventory very low. Brokers are hoping the normal seasonal increase in listings this spring will help give buyers some relief.

Eastside

With home prices soaring on the Eastside, it’s not a matter of whether the median price will exceed a million dollar, but when. February brought the market very close to that milestone. The median price of a single-family home increased 14 percent to a record $950,000 on the Eastside, surpassing the previous peak recorded in December.

King County

The red-hot job market in King County continues to outpace nearly every area in the nation. Well-paid workers looking to buy close to city centers have fueled a growing competition for a shrinking number of homes. That demand boosted the median price of a single-family home up 16 percent over a year ago to $649,950.

Seattle

The median price of a single-family home in Seattle hit a new high of $777,000 in February, $20,000 more than the previous record set in January and up 14 percent from the same time last year. Despite the sharp increase in prices, multiple offers have become the norm for most properties. It remains to be seen if recent interest rate hikes will have a moderating effect on home values.

Snohomish County

After several months of moderating growth, Snohomish County set a new record for home prices in February. The median price of a single-family homes jumped 18 percent to an all-time high of $485,000. Inventory is down from a year ago, with less than a month’s supply of homes available for sale.

If you are considering buying a home in today’s market, here are three things to consider:

1. Make sure you can afford the payments.
2. Choose a location that will appeal to you long-term.
3. Be committed to living there for a minimum of five to seven years.

This Somerset home showcases expansive views of Lake Washington, the Olympic Mountains, and the downtown skylines of Seattle and Bellevue. A wall of windows maximizes the views from the living, dining and open kitchen. Large level patio in back perfect for entertaining or play. Master suite w/built-ins and luxurious 5-piece master bath. Lower level family room also highlights the views. Award winning schools, Somerset Elementary, Tyee Middle School and Newport High. Convenient location, minutes to downtown Bellevue and Seattle. This is the place to be! 4422 138th Ave SE, Bellevue ~ $1,568,680

Full listing information here.

Mid-century modern remodeled with today’s conveniences. Open concept kitchen with high-end appliances & island. Warm woods throughout; clerestory and full-length windows for an abundance of natural light. Living room has vaulted ceilings, gas fireplace and lovely lake & mountain views. Dining opens to large deck. Master w/dual walk-in closets, 3/4 bath and door to private hot tub. Lower level media room, and guest bedroom w/den. 2 blocks to Somerset Elementary.

This home is not to be missed! Open Saturday and Sunday 1-4 pm
More property information here.

Traditional Cape Cod in prime location of Somerset.  Two blocks from Elementary.  Ideal floor plan with four bedrooms, two baths up.

Open Saturday and Sunday 1-4. ~ 4453 144th Ave SE, Bellevue ~ $1,200,000

Check out the full listing here.

Spectacular views in sought after Somerset. All main living areas offer city, mountain, sound and lake views. Ideal floor plan with three bedrooms up and two down. Kitchen open to family room. Living room with vaulted ceilings and formal dining room with a wall of windows to soak in the views. Lower level features huge family room. Flat yard with plenty of room for play. Brand new architectural roof, furnace and hot water tank. Short walk to top Bellevue schools – Somerset, Tyee and Newport.

4475 141st Ave SE, Bellevue ~ $1,688,000

Check out all the details here.

With competition for homes growing and inventory shrinking, the real estate market in January was as hot as ever.  Home prices were up by double digits as buyers chased severely limited inventory. The number of homes for sale hit a record low for the month of January, which should strongly favor sellers as we move into the prime spring selling season.  The average home seller in our area now makes a 64 percent profit, the fourth-highest rate of any region in the country, according to ATTOM Data Solutions.

Eastside

Home prices on the Eastside continue to climb. The median price of a single-family home was up 18 percent over last January to $938,000 —­ virtually unchanged from the record high set a month ago. West Bellevue, King County’s most expensive area,  saw the median home price surge to a record high of $2.72 million. With less than a month of available inventory, prices aren’t expected to cool any time soon.

King County

Single-family home prices in King County soared 20 percent over a year ago to $628,388, with double-digit increases recorded in every area of the county.  Lack of inventory continues to fuel the market.  There were 21 percent fewer homes for sale here as compared to a year ago, with inventory hitting a record low for the month of January. The region has now been the hottest housing market in the country for 15 months in a row.

Seattle

An ongoing shortage of inventory combined with an economy that continues to add jobs has kept the Seattle housing market very competitive and increasingly expensive. Seattle’s median price hit a new record in January jumping 19 percent to $757,000.  Despite the increase in prices, brokers are reporting open house traffic that can number in the hundreds of interested buyers.

Snohomish County

Home price increases in Snohomish County were more moderate than those in King County. The median price of a single-family home grew 10 percent over a year ago to $450,000. That number is down from the high of last year, and reflects a more common seasonal slowdown.