the
Volume 9 | Issue 6
EYE ON THE
JUNE 2018
JUNE happenings
market the number of homes for sale nationwide fell 7.2 percent from March 2017 to March 2018. Hungry buyers and low inventory have resulted in fierce competition benefiting sellers.
Likewise, an article recently published in The Seattle Times indicates that rapid The lack of low- to mid-market inventory, increases in local job gains have yielded combined with a seemingly unlimited a massive influx of residents into the supply of voracious buyers are fueling Seattle metro area. The market has bethe brisk spring-to-summer Puget Sound come increasingly aggressive, with homes market. Sellers continue to be at an averaging only 30 days on the market, advantage, with many finally getting down from 34 days in March of 2017. off the fence, listing their homes, and contributing to a slight uptick in listings. The compounding of these contributing The latest statistics from the Northwest factors has resulted in an excellent MLS show a 6.3 percent increase in the seller’s market in the Seattle metro area. number of listings over the previous Sellers looking to list will find inventory month and an almost 6 percent yearis selling quickly, allowing them to move over-year increase. on and begin their next chapter. As for those homeowners choosing to sit tight, According to a recent report published many are considering renovations that by U.S. News, steady job gains and the will add value to their home should they rising number of millennial buyers choose to sell in the future. As you can resulted in U.S. home prices jumping see, demand is only expected to increase 6.3 percent between February 2017 in our region. and February 2018, while simultaneously
TITLE & ESCROW essentials : IMPOUND ACCOUNTS What’s an impound account and what is it for? Every year, property taxes for King, Pierce and Snohomish County homeowners will increase. If a homeowner’s mortgage lender has set up an impound account (also known as an escrow account or a reserve account), they will see an increase in their minimum monthly house payment each year. What is an impound account? Unless the homeowner pays property taxes owed for the year and deposit taxes directly to the county, these taxes these funds into an impound account are paid through an impound account used to pay the property taxes. In many attached to the mortgage. With an cases, the impound account includes impound account, each month, the the homeowner’s insurance premium, lender or loan servicing company will which will also usually increase each year. set aside approximately 1/12th of the (continued on next page)
1 Tacoma’s First Ever Night Market traveltacoma.com
1-3 Edmonds Waterfront Festival edmondswaterfrontfestival.org 1-10 Seattle International Film Festival siff.net/festival
2 Kent International Festival kentinternationalfestival.com 2-3 Anacortes Waterfront Festival anacortes.org 2-3 Duvall Days duvalldays.org 2-3 Maritime Gig Festival gigharborchamber.net 8-10 Maple Valley Days maplevalleydays.com
9 Georgetown Carnival georgetownmerchants.org 9 Shilshole Boatfest portseattle.org 15-17 Meeker Days Arts & Music Fest puyallupmainstreet.com 16 Solstice Night Market Facebook.com 16-17 Father’s Day Train Ride trainmuseum.org 22-24 Taste of Tacoma tasteoftacoma.com 23-24 Seattle PrideFest seattlepridefest.org
June
I M P O R TA N T D AT E S
essentials TITLE & ESCROW
Friday, June 1 Doughnut Day
Sunday, June 17 Father’s Day
Thursday, June 14 Flag Day
Thursday, June 21 First Day of Summer
IMPOUND ACCOUNTS
Thursday, June 14 World Blood Donor Day
Friday, June 22 Take Your Dog to Work Day
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Monday, June 18 Go Fishing Day
Saturday, June 23 United Nations Public Service Day
Celebrating FATHER’S DAY 2018
It’s a challenge every year to find that perfect gift for Dad, but all he really wants is quality time with his family. Here are some activities to do with Dad: Outdoor Dad: Is your dad a fishing fanatic? Does he love to hike? Prefer to live in a tent? Then plan a day outside in the beautiful summer weather at one of the many local state parks. parks.state.wa.us Finer-Things Dad: Does your dad enjoy the finer things? Then put on your best threads and treat him to a fancy meal. Great food and conversation are sure to knock his fancy socks right off! yelp.com Caddy Daddy: If your dad is golfobsessed, then plan a day on the course together. Taking up a common hobby is a great gift for Dad that lasts a lifetime. thewsga.org
SUMMER PATIO
Rocker Dad: Does Dad rock out in the car and sing as though no one is watching? Then treat him to one of the many local-area concerts and rock out together. seattle-theatre.com/ index_concert.php Brainiac Dad: If your dad is always hidden behind a book or schooling you on trivia, then plan a day out to one of the many local historical sites or museums to fire up his neurons. visitseattle.org Film-Buff Dad: If your dad loves cinema, plan a day out at the theater with him. Treat him to his favorite concessions and let him pick the movie. fandango.com Grill Master Dad: Is your dad often found in the backyard next to his grill? Then find a new recipe to learn and grill together. allrecipes.com
makeover
Implement these simple touches to spruce up your patio for the summer: • Tidy up. Before you start your patio adds a warm and inviting ambiance makeover, take a look around and for you and your guests. clean up anything that may have • Add entertainment. become dirty during the fall and Build a bar or bonfire pit for a fun winter seasons. Power-wash reason to get together. But don’t walkways, remove dead foliage, forget to include a few other wash windows, and clean outdoor activities such as cards, ping pong or lighting fixtures. croquet to keep your guests happy • Add decoration. and entertained all summer long. Decorate your patio with garden planters, new furniture and framed pictures to create a more inviting and homey feel. Fill the planters with flowers that will bloom during the spring and summer seasons. • Patio lighting. Adequate exterior
lighting is a key component of your home security. Adding string lights not only provides safety but also
Volume 9 | Issue 6
WHAT YOU NEED TO KNOW ABOUT
Property taxes are paid twice a year. Payment of taxes in April pays taxes through June 30 using funds collected since the previous November. The payment in October pays taxes through December using funds collected since May. Annual tax assessments are not finalized until the beginning of each year. Taxes collected for the impound account from November of the previous year through the April deadline are not equal to the amount actually owed because they are collected at the 2017 tax rates. For example, if the 2017 taxes on a property were $3,000, 1/12th of that amount, or $$$ $250, has been collected each month. If the property’s tax increase is 20 percent for 2018, and the lender has been collecting only the 2017 amount, the funds in the account are not equal to the actual amount owed at the 2018 tax rate at the first payment in April. This means there is already a shortage in the impound account as soon as the assessor’s new tax rates are released. When the lender or loan $ servicing company notifies the borrower of the new tax rate increase (notice should be expected anytime from May through July), information will be included for how the shortage can be resolved. In this example, a 20 percent tax increase is equal to $600 additional each year ($50 additional each month). To bridge the deficit, the lender or loan servicing company will increase the monthly house payment by 1/12th of the amount of the annual increase in the property taxes (in this example, $50), plus whatever is needed to make up the shortage accrued through the first half of the year. The lender may also provide the option for the property owner to pay the shortage amount in one lump sum. By doing this, the homeowner may minimize any increase in their monthly payment. We hope you find this information to be helpful when planning for any upcoming changes to your impound account.