Snoqualmie Pass Blog: 2015

Wednesday, December 30, 2015

Snoqualmie Pass Real Estate - Top 4 Trends for 2016

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Carnation Real Estate, Suncadia Real Estate, Easton Real Estate, ThomasWolter.com, http://www.snoqualmiepassliving.com

Put a lid on the chalkboard paint and give burlap the boot, because “Farmhouse Chic” is officially on its way out. According to Zillow Digs’ 2016 Home Trends Forecast, the fad has finally been exhausted and will make its exit in the coming year. Instead, we can look forward to a blend of elegance and simplicity brought forth by Art Deco-inspired patterns and minimalistic decor.

"2016 will bring a fresh modern vibe that beautifully mixes simplicity with bold accents reminiscent of the roaring 20s,” saysKerrie Kelly, Zillow Digs home design expert. “Watch for an increase in natural colors and textures contrasted by retro art deco statement pieces."

Top four trends

Through combined data from a survey of interior design experts and an analysis of popular photos on the website, Zillow Digs has come up with some home design trends to watch for in the new year.

Here are the top four trends for 2016:

Art deco-inspired patterns and shapes. Art deco is expected to make a bold new comeback in 2016, but with a few modern improvements. We’ll see the style's trademark geometric patterns and honeycomb shapes woven into everything from wallpaper to artwork, adding elegance and dimension. Experts also predict gold statement lighting fixtures to rise in popularity, especially in kitchens and dining rooms.
Nubby wool rugs. Nubby wool or other natural fibers will be the go-to texture for 2016, especially for area rugs. Homeowners will turn away from indoor use of rough burlap and instead gravitate toward softer fibers that are more suitable for throw blankets, pillows, and rugs. Neutral hues will create the perfect indoor/outdoor vibe while softening bolder colors or dramatic statement pieces.
Encaustic tiles. These intricate patterned tiles get their coloring from different types of clay or minerals rather than glaze. They can be used to create a beautiful, natural-looking focal point in a variety of rooms. We can expect to see encaustic tiles pop up in kitchen backsplashes, bathroom shower tiles, accent walls, and even fireplace mantles.
Artisan accent pieces. Minimalism and thoughtful decor choices heed the “less is more” approach in 2016. Flea market finds, travel souvenirs, and unique artisan pieces will take center stage in home design. Look for a rise in partnerships between big box stores and global artisans to accommodate the increased demand for one-of-a-kind or handmade items.
Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Carnation Real Estate, Suncadia Real Estate, Easton Real Estate, ThomasWolter.com, http://www.snoqualmiepassliving.com

Tuesday, December 15, 2015

Snoqualmie Pass Real Estate - Rising Homeowner Equity!

The combined net worth of Americans fell in the latest data, but housing equity continued to trend higher. According to the Federal Reserve, the net worth of all households fell by $1.2 trillion in the third quarter, principally due to the wobbly stock market. Housing wealth, by contrast, rose by $360 billion from the prior quarter, thanks to the continued rise of home values in most parts of the country. With the latest gain, total housing equity now stands at $12.4 trillion. This is quite a change from the trough of 2009 to 2011, when housing equity stood essentially at half the current level at $6.5 trillion.

Hindsight is 20/20. The bubble prices of 2005 and 2006 could not be sustained and home price gains during recent years and their accompanying housing equity gains are still in recovery mode and have not yet matched the prior peak. Nonetheless, the momentum suggests a new peak in home prices and housing equity, at least at the national level, is likely to occur in 2016. With it, the unusual pattern of homeowners staying in their home for longer than the historical norm should vanish. For a long time a survey of recent home sellers indicated they had lived in their home for 6 years on average before listing and seeking a different home elsewhere. From the housing bust on, years of average tenure in the same home began to lengthen and then reached a cyclical peak of 10 years in 2014. There are always changes in family circumstances over the years – marriages, divorces, adding children to the family, empty nesting, etc. – and economic changes like the offer of a better job at a different location that necessitates a move into a new home. So the rise in tenure was unusual from a statistical point of view, and was bound to revert back to normal. The rise in housing equity, along with improving job market conditions, is helping to coax homeowners back into the market. In 2015, tenure fell to 9 years, though this is still high. That means there are still many homeowners in the wrong home (as life events have affected their living situation) and they will naturally be seeking to find the right home. The backdrop of rising housing equity and job creation will help.

Another unique aspect of current housing equity gains is that they are accompanied by a general decline in mortgage balance. The total mortgage debt outstanding was $10.6 trillion in 2008. Since then it has steadily fallen – either via cash-in refinance (not cash-out) or from homeowners paying down their mortgages at a faster than usual pace. There is now $9.5 trillion in mortgage debt. The housing market therefore is on much more solid ground, and we should anticipate a greater number of existing homeowners utilizing a good portion of this accumulated equity as a down payment for their next home purchase.

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One piece of bad news concerning the rising housing equity is that those who are not homeowners are feeling left out. With the homeownership rate at what is essentially a 50-year low, the middle class that is generally associated with property ownership is getting smaller. The share of first-time buyers could remain at near historic lows because the rise in home prices is outpacing income growth. From a policy perspective, therefore, there should not be any new hindrances added to the housing market recovery such as using the positive revenues of Fannie and Freddie for non-housing purposes or threatening constant lawsuits against lenders which will hurt mortgage originations.

Saturday, December 12, 2015

Snoqualmie Pass Real Estate - 4 Reasons to Buy a Home in 2016

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Carnation Real Estate, Suncadia Real Estate, Easton Real Estate, ThomasWolter.com, http://www.snoqualmiepassliving.com

If you've been on the fence about buying a home, 2016 is the year to take the plunge.

Mortgage rates have been bouncing around record lows for a while now. But even though they're likely to start going up, you haven't missed your chance to get a deal on a house.

A number of factors are coming together, making next year a good time to buy:

1. Home prices will finally calm down

Real estate values have been on the rise for a while, but are likely to slow their pace next year. Prices are expected to rise 3.5%,according to Zillow's Chief Economist Svenja Gudell.

Buyers who've been stuck behind the wave of rising prices may finally get the chance to jump in.

And that could lead to a flood of buyers, said Jonathan Smoke, chief economist at Realtor.com.

"We have the potential for about six million home sales just through the months of April through September; that is basically impossible to do," he said.

But not everyone will be in a position to take advantage.

Despite the slowdown, Zillow still expects home values to outpace wage growth, which can make it tough to afford a home, especially for lower-income buyers.

Plus, prices in the country's hottest markets -- like San Francisco, Boston and New York City -- aren't expected to pull back as much next year.

2. More homes will hit the market

The slowdown in home prices will prompt more owners to list their homes, Smoke said, giving buyers more choice.

"Because of the price appreciation they have experienced, you will have more sellers put homes on the market next year," he said.

The new home market is also expected to grow in the coming year with builders focusing more on starter and middle-range homes, which will also boost inventory and make it easier for buyers.

With more homes on the market, bidding wars will become less common and prices could ease even more.

3. Dirt cheap mortgages could disappear

The Federal Reserve is widely expected to begin increasing interest rates soon, which means the window for record low mortgage rates is closing.

While rates are expected to go up gradually, higher rates push up borrowing costs and monthly mortgage payments.

"You are likely to get the best rate you will possibly see, perhaps in your lifetimes through the majority of next year, but certainly, the earlier the better," said Smoke.

4. Rents will still hurt

Rent prices are expected to continue to climb in the new year, which means in most cities, buying will be cheaper than renting.

Even though mortgages could get more expensive, buying might still be the better deal.

Interest rates would need to rise to around 6.5% for the cost of buying to equal that of renting on a national level, according to Ralph McLaughlin, housing economist at Trulia.

Tuesday, December 8, 2015

Snoqualmie Pass Real Estate - Seattle Market continues to Boom!

The outlook for every real-estate sector in Seattle except hotels is strong, according to the Emerging Trends in Real Estate survey. (Ellen M. Banner / The Seattle Times) — Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Carnation Real Estate, Suncadia Real Estate, Easton Real Estate, ThomasWolter.com, **http://www.snoqualmiepassliving.com**

Seattle's supercharged market for everything from skyscrapers to single-family houses is expected to keep booming next year, even with higher interest rates.

Metro Seattle ranks fourth nationally as the hottest market to watch for 2016, according to the influential Emerging Trends in Real Estate survey by the Urban Land Institute.

This marks a rise from No. 8 in last year’s report. Emerging Trends has proved to be a good barometer of Seattle’s real-estate prospects.

“The Seattle market has become so popular with domestic and global investors that in interviews it is not unusual for it to be added to the list of top six markets,” the report states. Among our strengths is a diverse industry base and growth in so-called TAMI sectors (technology, advertising, media and information).

“One interviewee noted that Seattle is one of those markets where the growth has been strong enough, long enough, that the only potential risk is being able to sustain its current pace,” according to the report.

The outlook for every real-estate sector in Seattle except hotels is strong. Hotels come off “good,” but not as robust as other sectors. Population growth and constraints on supply make Seattle inviting for single-family house construction.

Seattle also benefits from its appeal to millennials, as well as being an “18-hour city,” vibrant live-work-play urban areas that are attracting more people and investment, doing better economically, than sprawly places lacking an energetic center.

Nationally, real estate is expected to continue growing, even with interest rates going up. Foreign investment remains strong. The report’s top three are Dallas-Fort Worth, Austin and Charlotte. Seattle is followed by Atlanta, Denver, Nashville, San Francisco, Portland and Los Angeles to round out the top 10 best markets.

Tuesday, December 1, 2015

Snoqualmie Pass Real Estate - How Home Owners Accumulate Wealth!

The differences between buying and renting are massive. According to the Federal Reserve, a typical homeowner’s net worth was $195,400, while that of renter’s was $5,400. The data reflects 2013 and the next survey of household finances, which is conducted every three years, will be out in 2016. Based on what has happened since 2013 and projecting a conservative assumption of what could happen next year to home prices if we see only 3% price growth, the wealth gap between homeowners and renters will widen even further. The Fed is likely to show a figure of $225,000 to $230,000 in median net worth for homeowners in 2016 and around $5,000 for renters. That is, a typical homeowner will be ahead of a typical renter by a multiple of 45 on a lifetime financial achievement scale.

Though there will always be discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth. The simplest math shouldn’t be overlooked. A vast majority of home buyers take out a 30-year fixed rate mortgage to make a home purchase. After 30 years, there is no mortgage payment (nor rent payment). So the home price growth over that time period would be the equity that the home buyer would have accumulated. For example, the median home price of a single-family dwelling in the U.S. thirty years ago in 1985 was $75,500. This year, it will be at least $220,000. That figure of $220,000 is the housing component of the person’s wealth. Even had home prices not risen, the person would still have $75,500 in wealth today – on top of not paying any further monthly mortgage after 30 years.

This simple example does not play out nearly as neatly in the real world, since people do not stay in one residence over the 30 year period. Almost all homeowners trade up, change neighborhoods, or move to a better school district at some point. However, they are able to make those residential relocations due to the housing equity accumulated, even over a shorter period, and can immediately apply that equity to the next home as a down payment. Therefore the conditions of steadily building housing wealth still hold.

We also know that not everyone can or should be homeowners. The memories of easily accessible subprime mortgages and subsequent harsh foreclosure pains are still fresh, and remind us of the devastating impact on the families involved, local communities, and to the broad economy. In addition most young adults have not developed the financial standing or have found a stable, desirable career and, therefore, choose not be homeowners until later. The home ownership rate among households under the age of 35 is 35% currently and rarely rises above 40% historically. For those under the age of 25, the current ownership rate is 23% and rarely rises above 25%. But the time will eventually come when people want to convert to ownership. By the time people are in their prime-earning years of 45-to-55, nearly three-fourths do eventually become homeowners. By retirement, nearly 80% are homeowners.

A recent survey of consumers commissioned by my organization revealed that 80% believe that purchasing a home is a good financial decision (2015 National Housing Pulse Survey). Most consumers appear to already understand the simple math and the benefits of home ownership. So don’t overthink the matter of whether now is a good time to buy, or whether stock market returns will be better. The exact timing of a home purchase will have little financial impact in the big scheme of things. Just know that homeowners generally do come out ahead of renters in the long run.

Monday, November 23, 2015

Snoqualmie Pass Real Estate - Seattle population could surpass San Francisco's

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Carnation Real Estate, Suncadia Real Estate, Easton Real Estate, ThomasWolter.com, http://www.snoqualmiepassliving.com

Seattle could top San Francisco's population by 2040

By NAT LEVY
Journal Staff Reporter

The population of Seattle could top San Francisco's by 2040.

The Puget Sound Regional Council predicts another 1 million people will live in the central Puget Sound region by 2040. PSRC Executive Director Josh Brown said at a NAIOP meeting yesterday that at least 160,000 of those new people will live in Seattle.

Data from the city of San Francisco and University of California San Francisco show San Francisco's population is slightly less than 850,000. Seattle estimates its population now is 662,400.

Brown

Central Puget Sound — loosely defined by PSRC as King, Pierce, Snohomish and Kitsap counties — has about 3.9 million people today, and will grow to more than 4 million next year. By 2040, PSRC predicts the area will be home to more than 5 million.

The Growth Management Act requires much of that growth be in the largest population centers — with every city in the region taking a share — to avoid sprawl and preserve agricultural areas and forests.

Brown said the San Francisco Bay Area, where he worked as a real estate broker after graduating from University of California Berkley, has an “aspirational” strategy for handling growth but it lacks the GMA's teeth. Brown, who also served two terms as a Kitsap County commissioner, said the Bay Area's population today is about the same as when he lived there. Growth spurred by the continued success of Silicon Valley has spread out, creating a sprawling region.

PSRC is a long-range planning agency that works with cities and counties on economic development and transit. PSRC created the Vision 2040 plan to deal with growth.

All this population growth means more demand for housing.

“We will never be able to sustain the economic growth with reasonable housing costs in our region if we're not building housing,” Brown said.

But developers respond to market forces, Brown said, so construction won't always match up with population or income distribution. Cities around the region are wrestling with these issues, and the results can be seen in local policies like Seattle Mayor Ed Murray's Housing Affordability and Livability Agenda, which seeks to create 50,000 new units — 20,000 of them affordable — over the next 10 years.

The booming economy and population growth also increase traffic congestion. Brown said a recent PSRC survey showed 47 percent of respondents said transportation and traffic were the biggest issues for them. No other issue got more than 10 percent.

Around the region, Brown said there are more than 500 transportation projects underway and expected to be completed in the next three years, representing a $6.4 billion investment.

Voters approved another $6.8 billion for transportation over the next 16 years. Several other votes — most notably the Sound Transit 3 package in 2016 — could mean another $20 billion for transportation.

The region would be better off if many of these projects had been built decades ago, Brown said, but better late than never.

“We know a million more folks are coming here,” Brown said. “We can kick the can down the road to future generations, or we can be bold, step up and move forward with the next stage of investments that we know we're going to need for the region.

Sunday, November 22, 2015

Snoqualmie Pass Real Estate - Real Estate Interest Rates Improving

Interest Rate Pricing improves Moderately: Mortgage Bonds and stocks both started out the week with a bump better as money flowed in to the US markets in response to the attacks in France. It was a modest move for the better but continued a bounce away from the recent move higher. Also supporting bonds was continued tepid readings on the economy. Inflation came in higher than recent readings due mostly to increased rents and medical costs. The markets continue to digest a belief that the FED will raise their Federal Funds rate in December. There is a question on how it will affect the stock markets. It economic readings are strong enough they will likely improve in spite of the normal circumstance that increased rates will hurt stocks. With all factors considered there does not appear to be any pressure on rates to move higher or lower. Stability is not a bad thing as it helps your clients make reliable predictions on their housing costs.

"Why do you build me up Buttercup … just to let me down." The Foundations. The build-up to December's Fed meeting is mounting as Federal Open Market Committee members weigh the decision to change the Federal Funds Rate.

http://www.mmgweekly.com/templates/mmgweekly/reg_chart/555/images/top-image_2015-11-23.jpg

Minutes released from the October FOMC meeting stated "most participants" agreed conditions would be right—or already were right—to consider an increase to the benchmark Fed Funds Rate at their meeting December 15 and 16. This rate, which is the rate banks use to lend money to other banks overnight, has been near zero for nearly a decade.

Real average hourly earnings (post-inflation) rose 2.4 percent in October from a year ago, while consumer inflation came in higher than expected due to rising rent and medical costs. Both of these economic readings followed a stellar October Jobs Report that showed job creation rebounded and unemployment dropped to 5 percent. Based on these signs, investors and economists are currently predicting a 74 percent chance of an increase to the Fed Funds Rate next month, though this figure could change based on upcoming economic reports. When the Fed Funds Rate does change, other consumer rates—like home loan rates—might follow, depending on other market and economic conditions.

In housing news, after a strong build up in September, October Housing Starts were a bit of a letdown, according to the Commerce Department. Housing Starts hit a seven-month low, falling 11 percent. Despite the drop, Housing Starts remained above the one million mark for seven straight months. This is the longest such streak since 2007. Building Permits, a sign of future construction, were another bright spot, rising 4.1 percent from September.

Also of note, the National Association of Home Builders (NAHB) Housing Market Index slipped in November to a reading of 62. However, readings above 50 are considered positive sentiment among home builders. NAHB Chief Economist David Crowe noted, "A firming economy, continued job creation and affordable mortgage rates should keep housing on an upward trajectory as we approach 2016."

Despite the recent volatility in the markets, home loan rates remain attractive and near historic lows. If I can answer any questions at all for you or your clients, please get in touch!

What Is Going On In The Economy: US asset classes are receiving support from a flight to safety in response to the terrorist attacks in France and Mali last week. Concern over growing strength of ISIS is seem as a possible damper on European economies. Money is moving to us markets from overseas. This is causing increases in stock prices and rate price improvements. Economic growth in Europe is very week and the ECB is proposing another round of stimulus. Economic growth here is still modest at best with some indications that it is slowing. Oil prices moved lower which is not a sign of growth but hard to decipher with so much supply coming from new sources. New York Manufacturing index came in lower than expected. The housing markets still show strength but housing starts were lower in October from the previous month. October job report numbers were good with August and September revised higher as well. Market watchers think there is a 70% chance of a FED rate hike in December. The hike will be modest and the FED will likely make statements that will keep the markets from being spooked about stocks.

Real Estate Miscellaneous Stats

Recovery in Real Estate Features Change in Buyers: A Money Magazine article highlights some details about the market. Here are some bullet points and a link to the article. The national numbers show new home sales at their highest level since 2008. Construction crews are working at their highest pace since the 08 recession and builder confidence is at its highest level in 10 years. But this market is driven by a different buyer profile. 1. Median age has gone from 35 to 43. This is due to the slow pace of Millennial purchase. 2. Houses are getting bigger. The older families want more bathrooms. This is good for builder’s profits? 3. Student debt is not a hindrance to a home purchase according to a Zillow study. http://money.cnn.com/2015/10/21/news/economy/real-estate-older-buyers-more-bathrooms/index.html?iid=SF_LN

Economist Predicts Wage Growth in Seattle Area: University of California, Berkley Econ professor Enrico Moretti gave a speech this week for the University of Washington Runstad Center. At it’s leadership dinner Moretti highlights information from his book, ‘The New Geography of Jobs’. In the book he identifies the cities with the ‘right jobs’ and those with the ‘wrong industries’. Those with the right jobs show wage growth in most income sectors with each tech job creating 4-5 jobs in other fields from waitress to surgeon. Cities with the wrong industries have stagnating job markets with dead end jobs and low average wages. In the Seattle area he predicts wages will rise even though technology jobs make up only 15-20% of all employment. Economists point to wage growth as a key to s.ustained strength in Real Estate Markets. Moretti identifies housing development and public investment in transportation as other factors needed for sustained growth. See article here: http://www.bizjournals.com/seattle/blog/2015/10/good-news-seattle-youll-be-getting-a-raise-even-if.html

Area October Real Estate Numbers Indicate Robust Market: The Real Estate markets in King, Snohomish and Pierce counties sales were among the best on record in October. These numbers occurred in spite of a reduction in inventory of over 30% from last years low inventory readings. New construction is not keeping up with the growing demand. The availability of buildable land is one of the biggest challenges especially close in to employment centers. We are seeing strong numbers in the north and south end of King County as many are priced out of more central markets. This caused the biggest price jump in the suburbs in October. North King county median value jumped 17% to $449,950 and Southwest King was up to $297,824 which is also a 17% jump. The gains are spilling over to Snohomish and Pierce counties. Snohomish county is up 11.3% to $365,000 and Pierce is up 10.5% to $255.250.

New Snohomish County Back Road Attractions Tour Now Available For Free: For those of you who live in my area I thought this was a great resource. http://www.bothell-reporter.com/lifestyle/337635451.html

CFPB Cracking Down On Referral Arrangements: Industry insiders who are in direct communication with officials from the Consumer Financial Protection Bureau have been warning us of coming greater scrutiny of the Real Estate Industry regarding ‘pay for referral’ arrangements between title companies, lenders and real estate brokers. These pay for referral arrangements are not usually obvious as participants have become more opaque in their efforts to avoid detection and punishment. Now the CFPB has issued direct warnings about their intentions to look deeply in to marketing arrangements including MSA’s. Though many MSA’s do not violate federal real-estate settlement rules, the Mortgage Broker’s Association says the warning is clear from the CFPB. They view MSA’s as highly risky ventures often designed to evade the intention of the RESPA laws. Experts site examples of real-estate brokers requiring large payments from lenders and title companies in order to display their promotional materials or have office space in their location in order to access realtors. One nationally known legal expert on RESPA rules has said most MSA’s he has reviewed do not look good and likely will not pass CFPB scrutiny. Typical tip offs that agreements are in violation are marketing that is directed solely to the customers of a real estate firm rather than to the general public, payments for marketing that is not consistent with the level of services provided and payment for office space in a real estate office that is not typical for local commercial rents in the area. Individual marketing arrangements are also targets for review by the CFPB. They stress that any cooperative marketing be paid for by each party that is commiserate with the space devoted to the parties on the marketing materials.

Loan Program Of The Month. Private Down Payment Assistance Program: New American Funding has access to the down payment assistance program through the Washington State Housing Finance Commission. We also have access to a private product offered by a major bank. The advantage to this program is it allows for higher household income. In our area this can make or break financing for some borrowers. Contact me for details.

Sunday, November 15, 2015

Snoqualmie Pass Real Estate - Snoqualmie Pass Living - Why is Paint such a Problem?

The Washington State Department of Transportation admits it's difficult to sometimes see the lane markings on I-90 over Snoqualmie Pass.

According to WSDOT, the pavement markings are made with glass beads, making them bright in headlights. But the rain reduces reflectivity so the lines are not as bright and visible.

Tell us about what's slowing you down

WSDOT also installed Raised Recessed Pavement Markers on I-90 from North Bend to Cle Elum. Unfortunately, those markers are less visible when the slots fill with rain or snow.

In 2014, WSDOT installed over 4,600 LED pavement markers along a 7-mile stretch near the summit in both directions. Since they are solar powered, the lights may not last throughout the night.

"We have tried many alternative striping products that are very expensive and or time consuming to apply. If we find something new, we are willing to test it, but we have not found a product durable enough to withstand the traffic and snow removal equipment."

Until the best, most cost-effective solution is found, WSDOT will reapply paint at least twice a year and when needed as conditions allow.

Wednesday, November 11, 2015

Snoqualmie Pass Real Estate - Snoqualmie Pass Living - Seattle is 4th Richest City

In this East Coast vs. West Coast battle, it looks like the West Coast is winning.

According to a review of data from the U.S. Bureau of Economic Analysis, Bloombergfound that the tech boom is shifting the richest cities in America to the West Coast. Three out of the top five land here with San Jose topping the charts.

Bridgeport, Conn., an ultra-wealthy suburb outside New York City where many in finance live, comes in No. 2, but San Francisco and Seattle follow, with Boston rounding out the top five.

Bloomberg looked at the nation’s 100 largest metro areas to crunch the numbers to see which city had the “highest output per resident” in 2014.

Apparently, tech is the new gold rush, with the gross metropolitan product, or GMP per capita in Silicon Valley at $105,482 — which Bloomberg cites is “more than double the national average.”

Seattle’s GMP came in at $75,874, but our neighbor to the south, Portland, is also seeing a large jump.

See the map of U.S. cities below:

Photo via Bloomberg/U.S. Bureau of Economic Analysis

“Tech cities outside the Bay Area have also benefited from the industry’s boom. Helped by not only Amazon Inc. but also newer Internet companies like Zulily Inc., Seattle’s GMP per capita grew by a cumulative 7.9 percent since 2009, when the economic recovery began,” Bloomberg noted.

“That helped the Washington city catapult to No. 4 from its No. 6 spot in 2008 through 2011,” the report continues. “Biotech hotbed Boston also jumped two places since 2008, while Portland, Oregon (sometimes called Silicon Forest) climbed six spots.”

The Bloomberg report also states that these areas have “some of the densest concentrations of educated workers,” which helps drive GMP.

Of course, like yin and yang, here’s the bad news that comes with the good — “These emerging tech hubs will probably expand even more in coming years…Sky-high rents in northern California force workers and businesses to look elsewhere.”

Look forward to more traffic, and rising housing and commercial real estate costs to go along with that boom.

Tuesday, November 10, 2015

Snoqualmie Pass Real Estate - Snoqualmie Pass Living - Speed Retirement by Kicking the Kids Out Sooner!

Young adults should be moving up, but in many cases they're only moving back in. And it's threatening the retirement of their parents — both financially and psychologically.

The job market for young adults has improved steadily since 2010, yet the number of millennials living with their parents has continued to climb. As of the beginning of 2015, 26% of millennials (defined as those currently age 18 to 34) lived with their parents, according to the Pew Research Center.

For 25-year-olds in particular, the trend is even more pronounced. A Federal Reserve Bank of New York report in September 2015 found 30% to 50% of 25-year-olds were living with their parents in 2013, depending on the state. All 48 contiguous states saw a rise in this "co-residence" between 2003 and 2013, with a median increase of 13.8 percentage points. The Northeast and West Coast had the biggest increases. (Alaska had a slight decline.)

For parents, the financial burden of letting an adult child move back can mean delaying retirement. Consider this: 52% of Boomer households that have children but don't support them are retired, according to a March 2015 study by Hearts & Wallets, an investment and retirement research firm. Among Boomers who do support adult children, only 21% are fully retire.

Boomers who support adult children are also 25% more likely (at 38%) than otherBboomers to say they have moderate to high financial anxiety, according to the Hearts & Wallets survey.

How can you avoid being one of these stressed-out parents who can't afford to retire? Two words, says certified financial planner Jeff Rose: "Tough love."