Kenmore Undressed

Northshore Fire Department Newsletter: Fire Scene

Twice a year the Northshore Fire Department provides the residents of Lake Forest Park and Kenmore an informative newsletter: Fire Scene. For those of you who are interested, the newsletter is packed with current events that directly affect the neighborhoods in which we live. This issue includes a dedication to Chief  R.W. Bannister, winter safety tips, a discussion of the financing for new fire stations and much, much more. I’ve copied part of the first page. When the Fire Depatment uploads the actual on-line flyer, I’ll make this a link.

We often forget how important our local Fire Department is to the health and safety of the community. We also forget how many services it provides to each and every one of us. I for one am grateful for everything they do.

“Kenmore by the Lake” It really is!

A very nice lady called me from California last week. She wanted me to do a market analysis of a vacant lot she owns close to Inglemoor High School here in Kenmore. During the course of our conversation, I asked her why, of all the agents in the world, she called me. “Oh, your blog makes Kenmore look so beautiful!” I was surprised and flattered. I really do try to give my readers a sense of Kenmore, but I haven’t posted that many pictures of Kenmore “by the lake.” That’s about to change:

The pictures above were taken from Kenmore looking directly south at Lake Washington.

These lakeside pictures were taken on the shore of Lake Washington in Saint Edward Park.

Kenmore’s position at the north end of Lake Washington offers its residents close proximity to shopping, transportation and natural beauty. I enjoy Kenmore because it’s only a short commute to Seattle and yet lies at the crossroads of several main freeways. This allows us easy access to many other wonderful communities such as Woodinville, Lynnwood, Bothell, Kirkland and many others. Come visit us sometime!

Take the Test: Are You the Millionaire Next Door?

 We are truly living in interesting times. I can’t remember a time when Americans were having a serious public discussion about money. And I don’t mean how to invest. I’m talking about the basics: savings accounts, reducing the number of credit cards, taking out smart mortgages, creating personal wealth, living within one’s means, etc. Of course the bookshelves at the local bookstore are literally groaning under the weight of all the financial “advice” literature out there; nevertheless, we have a culture based on spending and easy credit. Well things have changed.

King 5 News is a large, local news dynasty in Seattle, WA. This week they published an interesting link to an on-line test for would-be millionaires. The test was developed by Jeff Lehman, author of the book: The Frugal Millionaires. For those of you who would like to know if you’re  ”millionaire” material just click the picture below and take the test:

This is a fun test. Nothing too heavy-duty, but after you’ve beaten yourself up, it would be great to administer it to your spouse or children. Use it as a “teaching moment.” For many years I gave money management & Credit seminars to high school students and adults (I worked for Consumer Credit Counseling Service). I always tried to focus my audiences on the fact that most wealthy people in America got that way by being FRUGAL. One of the best books on this subject is “The Millionaire Next Door.” Culturally, our spending habits are out-of-control (have been for years) and our economy is finally suffering the inevitable credit-hangover.

For those of you struggling through tight financial times, (especially real estate agents) I’d also like to recommend THE definitive bible of personal financial management: “Your Money or Your Life.” I’ve personally used the system in this book and it works if you follow the plan.

Clean and Sober: September Statistics and Some Personal Thoughts About the Market

You know the saying: “Admitting you have a problem is the first step in solving it.” Well, in the Pacific Northwest section of the Seattle Sunday Times (Oct. 12th) the CEO of Windermere Real Estate Services, in a moment of perfect clarity, called it like it is. Quoting a blog post of one of his agents he wrote: TAKE YOUR HOME OFF THE MARKET (click the text for a larger view).

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Mr. Woods has spoken words of wisdom in a market place drunk on greed and delusion. It’s time to sober up and come clean.  Right now, lots of sellers need to sit down and ponder their motivation for selling. If it isn’t absolutely necessary to move, then consider staying put. How simple can it be? Anyone following the news knows how crazy things are right now. It’s time to start thinking clearly about life’s fundamentals and make decisions based on a long time perspective. There’s nothing new in this.

Here are the numbers for September sales of single family homes in King Co. (click on the picture)

Overall, it’s not the end of the world. Sales in King Co. dropped 23% from last September but HOUSES ARE SELLING. Keep in mind that in order to sell a home, it must be “dressed for success,” marketed well and priced appropriately. In September, homes sold for 7% less than a year ago. If you’re not willing to pay the price to enter the market at this time, don’t. I believe that after the national election and after the banks and government have worked through the financial crisis (this may take several months), we may see the credit markets loosen up and start lending again. Until then, relax, enjoy your home and think about a better future.

Can I Be a Economist Groupie? I Love Paul Krugman - Nobel Prize Dude!

Paul Krugman has done more to help ordinary people understand the complexities of our modern financial systems than any current economist. He has been the spokesman for liberal ideas regarding economics and his unabashed dislike of the conservative, supply-side economic theory is legend. I’ve been following his writings for years and it came as a pleasant surprise that he was awarded the Noble Prize for Economics yesterday. I love his column in the NY Times and one of my favorite non-fiction books written in 2002 is entitled “The Great Unraveling” in which he reprises many of his earlier newspaper columns. It’s almost a prophetic work with regard to the fallacy of trickle-down economics, Wall Street ponzi schemes and our current financial crisis.

From a real estateperspective, Krugman was always skeptical about the mortgage backed securities and the incredibly complex “products” being created by Wall Street financial gurus. One of my real estate brethren in Denver, CO had this to say about Krugman’s predictions back in August when he wrote about liquidity problems in the banking system:

“ And then this morning, sure enough, Paul Krugman posted a piece in the NYT saying exactly what I had been thinking.  And the title of the article is “Very Scary Things” (unfortunately if you’re not a member of Times Select you won’t be able to read the article). Krugman says the really scary part is that there’s nothing policy-makers can do to rectify the situation.  He talks about a similar meltdown in 1998, when a senior Federal Reserve official advised Krugman that the best strategy would be prayer.  Prayer?? ” Judith Clausen, Buyer’s Advantage Realty of Metro Denver, CO

I think it’s very important for us, as investors, home owners, workers and citizensto better inform ourselves about our economic system. I spent many years talking with high school students about the problems inherent in trying to get rich too quickly; purchasing everything on credit and being financially illiterate. Mine was a message of financial frugality. I can even admit to a healthy mistrust of the Stock Market. We need smart people such as Paul Krugman to sound the alarm in a clean, rational so as to avoid the “irrational exuberance” that has led us down this difficult path. I hope the next administration, no matter what party, taps Paul Krugman on the shoulder for some advice and wisdom to help us out of our current situation.

King County Budget Cuts May Compromise Public Safety: Attend Town Hall Meetings

King County Sheriff, Sue Rahr, has sounded the alarm: Cuts in the County budget threaten Public Safety. An estimated $90 million shortfall requires an 11.4% budget cut for 2009. Sheriff Rahr has indicated that these cuts will be across-the-board and will reduce services such as police, victim services, drug and mental health court, inmate housing and many others. In order to understand the impact of these budget cuts, the public has been invited to a series of Town Hall Meetings in October and November. Kenmore residents can attend a meeting in Shoreline: 

October 20th from 7:00 - 8:30 PM

Shoreline Conference Center

18560 1st Avenue NE

Shoreline, WA  98155 

Here is a map of the Shoreline Conference Center. Click on the map for more detail:

I think it’s important to say that King County has experienced a drop in crime over the last several years. From a local perspective, crime in Kenmore has been better under control as well. We all need to become more involved in our neighborhood, so please attend this critical meeting.

City-data.com - Get to know your favorite city

There are a huge number of statistical resources on the internet. One can literally spend hours pouring over population trends, crime stats, housing prices, you name it. But, there are only so many hours in the day. So where does one find a site that encapsulates data in a coherent and concise way? I think www.city-data.com is an excellent resource. If you’re a resident in Iowa and want to find out about Kenmore, WA because your employer is relocating you, here are some of the interesting statistics you can review:Some of the other very interesting breakdowns include: number of government employees, building permits, crime statistics, educational attainment…..whew, it goes on and on. The only thing I’d like you to keep in mind is that some of the statistics aren’t current (this is not uncommon because it takes a long time to assemble some data). But, go ahead and look through this website. You may learn something for your next cocktail party

Explaining the Current Financial Crisis: This American Life’s “Giant Pool of Money”

I’m writing this post for those of you who are still confused and dumbfounded by all the explanations of the current financial crisis. “How did we get here?” is the question on everyone’s mind these days. Well, I finally had an opportunity to listen to This American Life’s program entitled: “Giant Pool of Money.” My friends, this should be required listening BY ALL AMERICANS. It offers the most articulate explanation of this complex situation I’ve found.  Just click on the picture below………..enjoy…..

Reality Check: A Short, Sharp Analysis of the Local Real Estate Market

I like this picture. A nice juicy brain, suspended in a clear liquid cocoon. Safe, locked in time; unchanging. It’s emblematic of the obsolete mentality of both the Public and the Real Estate Industry:  ”PUT YOUR BRAIN IN A JAR. THERE’S NO NEED TO THINK ABOUT THE PROCESS BECAUSE WE’VE ALWAYS DONE THINGS THE SAME WAY!” As a Realtor (c), I spend a lot of time pondering the market to discover the best way to solve my clients’ challenges. After taking a few moments to look at the current market in Kenmore (my home town) I’m convinced that the same old process of selling one’s home (e.g. hang a sign in the front yard, putting flyers out, doing open houses, running an ad in the local paper, etc.) with or without an agent is an inadequate strategy in the current market. Allow me to point out some facts about Kenmore today:

• There are currently 204 active, single-family-homes listed with the multiple service. This inventory number has not changed for months. By the way, this is a lot of houses for sale in a town the size of Kenmore.
• Only 18 homes sold in Kenmore in the month of September. 50% of these homes sold for 90% of their listed price. Most of these homes took upwards of 6 months to sell.
• BIG FACT: 53 of the active listings have entered the market in the last 30 days.
• LARGER FACT: Only 50% of these new homes are actually new listings. The other 50% have been listed more than once. In some instances they have been listed three or four times often with different real estate agents.
• UGLY FACT: Many of these homes have been on the market a long time (sometimes well over a year) and they’ve gone through numerous price reductions.
• SIMPLE FACT: THE OWNERS AND AGENTS NEED A NEW STRATEGY OR GET OUT OF THE MARKET. WE NEED TO MAKE REAL ESTATE A NO-DELUSION ZONE.

Dear reader, please pardon my candor but both the real estate agents and the sellers are at fault. Most of the homes now languishing on the market were overpriced when they first hit the market. The market has been in decline for a year now, so there was no excuse for the inflated prices. Sellers were living a delusion and the agents were still in a “listing-equals-an-easy-paycheck” mode. I think Ardell DellaLoggia, the gran dame of Rain City Guide hit the nail right on the head in her recent blogpost entitled “This is time for serious people“:

“It is not enough in this market to have “heart” or to “care about your clients”.  Serious times call for serious leaders, and we are the leaders on the ground in the everyday real estate transaction.”

In upcoming posts I am going to deconstruct this real estate process so you can better understand why many of the criticisms of the real estate industry are true and how to look at the sale of real property in a way that fits our current circumstances.

Brain by Gaetan Lee

Bastyr University - Natural Health Sciences and a Beautiful Location

Yesterday I wrote about my visit to Saint Edward State Park. What I forgot to mention was yet another Kenmore Treasure: Bastyr University which is right next to the State Park. Bastyr is world famous as a center for advancing knowledge in the natural health sciences such as naturopathic medicine, acupuncture, Oriental medicine, nutrition, health psychology, exercise science and herbal sciences. It’s quite an amazing place and it’s right in our backyard. Bastyr is also important to the Kenmore economy as it is the largest employer in the community. It offers conference services, meeting rooms, a vegetarian cafeteria (open to the public) and overnight guest rooms. 

The last time I visited the Bastyr campus was for a wedding. Yes, a wedding in the University Chapel which is a beautiful non-denominational, European-style church built in 1958. Bastyr truly is an important institution in our town. Check it out sometime soon.