New Building Near Space Needle

A new hotel/apartment building is being proposed for a location across the street from the Space Needle, set to break ground in 2013.  Developers Kauri Investments bought the property in 2008 and play for a 7-story building with 118 hotel rooms and 56 apartments.  The project is to be reviewed by the Queen Anne/Magnolia Design Review Board in October.  Please visit this Seattle Times article for more information.

Mortgage Deduction in Trouble? Stupid Idea.

Mortgage Deduction

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There is was another article about getting rid of the mortgage deduction.  I am just going to say it, it is a stupid idea.  The government is spending billions to shore up the housing market that has caused ripples through the whole economy and now they want to take away major benefit from owning a home.  The tax debate generally pits the poor versus the rich, but this tax fight is going right after middle class.

The idea that rich people with million dollar mortgages get some great deduction for their mortgage is stupid.  Most people with million dollar mortgage get their Schedule A Deductions phased out because of their income levels.  Almost all deductions get phased out.  So while you should not feel sorry for someone with a million dollar mortgage, if they are really rich, rest assured they are not getting that much benefit from the mortgage deduction anyways.  But going after the deduction and lowering to $500,000 will go after Middle Americans especially those living in cities like Seattle.  Most likely creating a ceiling for sales of homes over $600,000 (assuming down payments of 15%+) especially when combined with jumbo rates going down (Seattle federal home loan limits to be set at $506,000 – down 11%).  Just what we need when the real estate market seems to be picking up.

Seattle Real Estate – August 4th

Downtown SeattleSeattle Residential Real Estate:  Existing homes sale were at a 4 year high this past June, but new home homes sales were the lowest in 17 years (I am guessing a factor is less are being built).  As a combination, home sales were up 16.5% from May, but down 2.4% from last June.  To get more of the real estate numbers.

National Real Estate News:   The founder and former CEO of listed his New York condominium on his own through online classified ads and for sale by owner websites, but after six months, he opted to hired a real estate agent.  The home received several offers and sold for $2.15 million: $150,000 above asking price.

Other National Real Estate News:  Pending home sales are up 2.4% in United States and 6.4% in the West.  Click link for more information.

Seattle Waterfront is Hot:  Seattle Waterfront home sales is up 12% for the first half of 2011 as compared to 2010.  Here is a blog about multiple Seattle waterfront home sales in Denny Blaine.

Seattle Office Space:  Word on the street is Facebook is looking for office space in Downtown Seattle.

Seattle Stadium News:  Will Seattle ever get a new stadium for a NHL team or an NBA team?

National Foreclosures:  Not a great news for foreclosures in the United States especially in Midwest were Bank of America is tearing down some foreclosures.