economy • real estate • March 19, 2018

How Tax Reform Affects Homeownership

by Stephanie Kristen

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The casualty loss deduction has been repealed.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 That deduction has been repealed, with an exception for losses on property located in a federally declared disaster area.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.

bellevue • economy • market trends • seattle • statistics • March 15, 2018

Seattle / Eastside Market Report – March 2018

by Stephanie Kristen

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:

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

bellevue • listings • somerset • March 14, 2018

Sweeping View in Somerset

by Stephanie Kristen

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.

bellevue • listings • somerset • March 10, 2018

Modern Somerset

by Stephanie Kristen

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.

bellevue • listings • somerset • March 3, 2018

Cape Cod in Somerset

by Stephanie Kristen

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.

community • giving back • seahawks • February 23, 2018

Windermere Foundation Surpasses $35 Million In Giving

by Stephanie Kristen

The Windermere Foundation had another banner year in 2017, thanks to the continued support of Windermere franchise owners, agents, staff, and the community. Over $2.4 million was raised in 2017, which is an increase of eight percent over the previous year. This brings our total to over $35.5 million raised since the start of the Windermere Foundation in 1989.

A portion of the money raised last year is thanks to agents who make a donation to the Windermere Foundation from every commission they earn. Additional donations from Windermere agents, the community, and fundraisers made up 66% of the money collected in 2017. These funds enable offices to support local non-profits that provide much-needed services to low-income and homeless families in their communities.

SUMMARY OF FUNDS, GRANTS & DONATIONS IN 2017

Organizations served: 472
Number of individual grants fulfilled: 644
Average grant amount: $2,964.04
Average donation to the Windermere Foundation: $116.08

FUNDING BREAKDOWN

Total amount disbursed in 2017: $2,249,357.14
Total disbursed through grants: $1,908,843.54

Scholarships: 5%
Youth/Child Programs: 33%
Emergency Assistance: 24%
Shelter: 11%
School Assistance: 5%
Education/Counseling: 12%
Administrative Expenses: 2%
Fundraising Expenses: 8%

So how are Windermere Foundation funds used? Windermere offices decide for themselves how to distribute the money in their local community. Our offices have helped support school lunch and afterschool programs, housing assistance for homeless families, food banks, homeless shelters, and non-profits that provide basic necessities, such as shoes, clothing, toiletries, and blankets to families in need.

A very notable day in 2017 for the Windermere Foundation was November 15, when a record-breaking $253,782 was given in a single day. A total of 35 non-profit organizations benefitted from that day’s donations, including Attain Housing in Kirkland, WA, which received $56,000 from the Windermere Real Estate East, Inc. group of offices. Other organizations that received donations were Boys and Girls Club of Contra Costa in Walnut Creek, CA, and the Shady Cove School in Shady Cove, Oregon.

2017 also marked the second year of our #tacklehomelessness campaign with the Seattle Seahawks, in which Windermere committed to donating $100 for every Seahawks home game defensive tackle to YouthCare, a non-profit organization that provides critical services to homeless youth. While the Seahawks didn’t make it to the playoffs this year, they did help us raise $31,800. When added to last year’s $35,000, that’s a total donation of $66,800. We are grateful for the opportunity to provide additional support to homeless youth thanks to the Seahawks, YouthCare, and the #tacklehomelessness campaign.

Thanks to our agents, offices, and everyone who supports the Windermere Foundation, we are able to continue to make a difference in the lives of many families in our local communities.

This post originally appeared on the Windermere Foundation Blog.

bellevue • listings • somerset • February 12, 2018

Somerset City View

by Stephanie Kristen

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.

economy • interest rates • market trends • statistics • February 8, 2018

Seattle / Eastside Market Report – February 2018

by Stephanie Kristen

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.

economy • interest rates • market trends • statistics • January 22, 2018

Matthew Gardner’s 2018 Housing Forecast

by Stephanie Kristen

Windermere is fortunate to have Chief Economist Matthew Gardner on staff to provide valuable analysis of the economy and housing market. Matthew recently completed his national forecast which details his predictions for the 2018 housing market.

real estate • January 18, 2018

New Year’s Tips for Buying and Selling

by Stephanie Kristen

If your 2018 resolution is to buy or sell a home, here are some suggestions to help you along the way. For everyone else, we’ve added some tips about building equity and investing in updates to your home.

Buying:

If you’re in the market to buy your first home or if you’re upsizing/downsizing, here are some ideas that can help you make this dream a reality:

Create a buying timeline and work towards your goal
Check your credit scores and work to improve your rating
Start or increase your savings for a down payment
Start the loan pre-approval process
Meet with your real estate agent
Start looking for homes

Selling:

If you are planning to put your home on the market in 2018, here are some good places to start:

Create a selling timeline to work towards having your home ready for market
Make a list of home improvements and a plan on how to manage them
Get rid of the clutter
Contact a real estate agent (If you don’t have an agent, click here to be introduced to a Windermere Real Estate agent.)

Building Equity:

You may not be moving this year, but you can create a plan to increase your equity in the home you have now. Here are some tips:

Take advantage of low interest rates by refinancing to a lower rate
Consider refinancing to a shorter term loan
Make extra lump-sum payments. Consider using your tax refund, cash gifts, work bonuses, garage sale money, or any other unexpected income toward paying down your principal.
Pay every two weeks instead of once a month. A biweekly payment plan can substantially reduce the amount of interest you pay because you are breaking the interest accrual down from 30 days to every 15.
Pay a little extra each month. Even if you’re only rounding up to the next $100 increment, putting a little extra money towards your principal every month can add up.

Investing In Your Home

You can add a lot of value and additional enjoyment to your home by investing in improvements and upgrades.

Choose a home improvement project that will yield a good return on investment when you do choose to sell
Create a home checklist to track maintenance projects over the year
Make eco-improvements to increase your home’s sustainability and reduce your utility payments over the long-term. These improvements are generally a good return on your investment when reselling.
- Upgrade furnace to an efficient model
- Upgrade windows for better insulation
- Add alternative energy resources, such as solar power
- Update toilets and showers to low-flow
- Install a programmable thermostat
- Update to energy-efficient appliances

How Tax Reform Affects Homeownership

Seattle / Eastside Market Report – March 2018

Eastside

King County

Seattle

Snohomish County

Sweeping View in Somerset

Modern Somerset

Cape Cod in Somerset

Windermere Foundation Surpasses $35 Million In Giving

Somerset City View

Seattle / Eastside Market Report – February 2018

Eastside

King County

Seattle

Snohomish County

Matthew Gardner’s 2018 Housing Forecast

New Year’s Tips for Buying and Selling

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