Monthly Newsletter – November 2018

 

I am pleased to present the third-quarter 2019 edition of the Gardner Report, which provides insights into select counties of the Western Washington housing market. This analysis is provided by Windermere Real Estate Chief Economist Matthew Gardner. I hope that this information will assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact me.

Read the full report here.

 

 

As winter approaches, it’s time to make sure your home is ready for the harsh weather ahead. To avoid costly repairs later, take some time now preparing your home to withstand another cold season. Here are 30 important tasks to protect and prepare your investment. View the full list here.

 

Tackle Homelessness
Have you been keeping track of the Seahawks home game defensive tackles? We have. Every one means another $100 donated to Mary’s Place. After the last home game win against Tampa Bay, our total raised to date is $118,100. Every play matters in the fight against homelessness! Follow along on social media with #tacklehomelessnessGO HAWKS!
Posted on November 26, 2019 at 7:10 pm
Jill Langer | Category: Buying Homes, Economic Forecasts & Trends, Gardner Reports, Matthew Gardner, Monthly Newsletters, Selling Homes

Don’t Miss the Boat on Current Interest Rates

 

 

Most recently, buyers have enjoyed more selection in the marketplace which has led to more open negotiations versus bidding wars. This is illustrated by an increase in average Days on Market and a decrease in the average Sold-to-List Price Ratios complete-year over year (the last 12 months over the previous 12 months). In King County, the average Days on Market increased from 22 days to 36 days complete-year over year, and the Sold-to-List Price Ratio decreased from 101% to 98%. In Snohomish County, the average Days on Market increased from 25 to 35 days complete-year over year, and the Sold-to-List Price Ratio decreased from 100% to 98%.

Buyers have had more selection to choose from which has tempered price growth complete-year over year. Median price remains even in King County and up 3% in Snohomish County. Multiple offers are not as commonplace as they were, but terms such as inspection contingencies and home sale contingencies are doable in some areas and price ranges. This balancing out has created some more normal terms for buyers, while sellers are getting close to full price on average and cashing out on the above-average appreciation we enjoyed from 2012 to 2018.

It is still a seller’s market, yet we are heading towards balance. The months of available inventory based on pending sales (the amount of time it would take to sell out of homes if no new homes came to market) currently sits at 1.7 months in King County and 1.5 months in Snohomish County. Zero to 3 months is a seller’s market, 3-6 months a balanced market, and 6+ months a buyer’s market. In 2017 to early 2018, inventory levels were commonly under one month, which was a very volatile and constricted environment within which to purchase a home. The direction towards balance is welcome and providing much more comfort when making a move.

The inventory levels are an amazingly beneficial phenomenon due to the fact that buyers are simultaneously enjoying the lowest interest rates we’ve had since 2016!Currently, the 30-year mortgage rate is hovering around 3.6% and the 15-year around 3.07% according to Freddie Mac. Not only are rates the lowest we’ve seen in 3 years, but they are an entire point lower than they were in Q4 of 2018. When rates crested 4.5% last year, we saw a marked reduction in pending sales. This highlights the recent opportunities that have come alive for buyers to secure such low debt service and for sellers to have a larger audience. When rates rise, folks reassess and sometimes step aside, which is why this current opportunity should be taken advantage of.

This is meaningful because the rule of thumb is that for every one-point decrease in interest rate, a buyer gains ten percent in purchase power. For example, if a buyer is shopping for a $500,000 home and the rate decreases by a point during their search, they can up their price ceiling to $550,000 and keep the same monthly payment. This is huge, especially in the wake of intense price growth over the last 6-7 years, which priced many buyers out of the market. Buyers that took a break and stepped to the sidelines in the past may want to consider their opportunities now. This is the most favorable buyer environment (inside of a seller’s market) we’ve seen in some time!

 

This recent decrease in rate is helping the move-up market come alive. What is great about this, is that it opens up inventory for the first-time buyer and helps complete the market cycle. First-time buyers are abundant right now as the Millennial generation is gaining in age and making big life transitions such as buying real estate. According to Nerd Wallet, 49% of all Millennials have a home purchase in their 5-year plan. The low rates are also providing great opportunities for investors, second-home buyers, and down-size buyers headed toward retirement.

Will these rates last forever? Simply put, no! According to Freddie Mac, rates should increase closer to the 4’s as we round out 2019 and head into 2020. While still staying well below the 30-year average of 6.85%, increases are increases, and securing today’s rate could be hugely beneficial from a cost-saving perspective. Just like the 1980’s when folks were securing mortgages at 18%, the people that lock down on a rate from today will be telling these stories to their grandchildren. Note the 30-year average – it is reasonable to think that higher rates must be in our future at some point.

So what does this mean for you? If you have considered making a move, or even your first purchase, today’s rates are a huge advantage in helping make a move more affordable. If you are a seller, bear in mind that today’s interest rate market is creating strong buyer demand, providing a healthy buyer pool for your home. As a homeowner who has no intention to make a move, now might be the time to consider a refinance. What is so exciting about these refinances, is that it is not only possible to reduce your monthly payment, but also your term, depending on which rate you would be coming down from.

If you would like additional information on how today’s interest rates pertain to your housing goals, please contact me. I would be happy to educate you on homes that are available, do a market analysis on your current home, and/or put you in touch with a reputable mortgage professional to help you crunch numbers. Real estate success is rooted in being accurately informed, and it is my goal to help empower you to make sound decisions for you and your family.

 

 

I am pleased to present the second-quarter 2019 edition of the Gardner Report, which provides insights into select counties of the Western Washington housing market. This analysis is provided by Windermere Real Estate Chief EconomistMatthew Gardner. I hope that this information will assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact me.

Click to view the full report

 

Summer is quickly coming to a close, and it’s time to think about prepping your yard for fall.  Here are a few quick tips to get you started, and a full article here.

Fertilizing

All summer long, plants and grass are using up nutrients in the soil. After months of growing, your soil’s reserves become depleted, which is why a fall fertilizer is great to restore nutrients and give your grass, shrubs, and perennials a boost to help them make it through winter. It is recommended to fertilize once every season.

Stop Pruning and Watering

Late summer and fall might seem like a good time to prune dead flowers and branches, but several experts recommend waiting until spring to prune anything. Pruning stimulates new growth, but with the frost coming, chances are this new growth won’t survive. Pruning also interferes with the plant when it is going dormant.

In late September, you should also stop watering your plants to help them go dormant as well.

>>Keep reading

Posted on August 24, 2019 at 9:23 pm
Jill Langer | Category: Buying Homes, Economic Forecasts & Trends, Gardening & Landscaping, Gardner Reports, Home Maintenance, Matthew Gardner, Monthly Newsletters, Mortgages, Selling Homes

June Monthly Newsletter

 

Changes are coming: The Washington State Legislature is changing the way in which real estate excise taxes (REET) are calculated. REET are different from your annual property taxes; they are the tax that a seller pays when they sell their home, based on the sale price.

Currently, the Washington State excise tax is 1.28 percent. Local municipalities add their excise tax on top of the state tax, with most cities in our area adding 0.50 percent, to total 1.78 percent. Effective January 1, 2020, Washington State will begin calculating real estate excise taxes based on a tier system. Below are examples of how this change will affect the difference price points.

 

 

The majority of sellers will enjoy a slight savings once the new tax structure starts in 2020, however, sellers whose homes are worth $1.5M or more should pay close attention as the tiered system will cost them more in 2020. If you own a high-end home and have been considering downsizing, doing so inside of 2019 may be a winning strategy.

If you or someone you know is curious about the value of your home or you have considered a move, please reach out. It is my goal to help keep my clients informed and empower strong decisions.

 

 

On June 7th, my office spent our annual Community Service Day with the Snohomish Garden Club constructing trellises, weeding and staking beds and planting and labeling a half-acre of produce!

The Snohomish Garden Club will harvest this half-acre, which will yield close to 10,000 pounds of fresh produce to be donated to various food banks and senior centers in Snohomish County. The land for the garden is generously donated by the Bailey Family Farm.

For more information on how you can lend a hand, please visit: SnohomishGardenClub.com

Windermere’s Community Service Day was established in 1984 to offer agents and staff a chance to volunteer an entire workday to give back to the neighborhoods in which they live and work.

 

 

The longer days and warmer weather means that your favorite movie is no longer relegated only to a dark stuffy room. Grab the folding chairs, blankets and popcorn, and check out a few of these fun outdoor movies. You’ll find classics like Ferris Bueller’s Day Off and The Princess Bride, as well as newer releases like Mary Poppins Returns andSpider Man: Into the Spider-Verse. Most of them are free, and many locations also offer fun, family-friendly activities before the movie starts.
Posted on June 27, 2019 at 9:27 pm
Jill Langer | Category: Buying Homes, Community, Events, Fun Things To Do, Gardner Reports, Matthew Gardner, Monthly Newsletters, Selling Homes

New Formula For Real Estate Excise Tax Calculations Beginning January 1, 2020

 

Changes are coming: The Washington State Legislature is changing the way in which real estate excise taxes (REET) are calculated. REET are different from your annual property taxes; they are the tax that a seller pays when they sell their home, based on the sale price.

Currently, the Washington State excise tax is 1.28 percent. Local municipalities add their excise tax on top of the state tax, with most cities in our area adding 0.50 percent, to total 1.78 percent. Effective January 1, 2020, Washington State will begin calculating real estate excise taxes based on a tier system. Below are examples of how this change will affect the difference price points.

 

 

The majority of sellers will enjoy a slight savings once the new tax structure starts in 2020, however, sellers whose homes are worth $1.5M or more should pay close attention as the tiered system will cost them more in 2020. If you own a high-end home and have been considering downsizing, doing so inside of 2019 may be a winning strategy.

If you or someone you know is curious about the value of your home or you have considered a move, please reach out. It is my goal to help keep my clients informed and empower strong decisions.

Posted on June 27, 2019 at 9:10 pm
Jill Langer | Category: Gardner Reports, Matthew Gardner, Selling Homes

April Newsletter

 

I am pleased to present the first-quarter 2019 edition of the Gardner Report, which provides insights into select counties of the Western Washington housing market. This analysis is provided by Windermere Real Estate Chief Economist Matthew Gardner. I hope that this information will assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact me.

Click to view the full report

 

 

When you shop at a local Farmers Market, you’re buying outstanding freshness, quality and flavor. Knowing exactly where your food comes from and how it was grown provides peace of mind for your family. Plus, you’re supporting a sustainable regional food system that helps small family farms stay in business; protects land from development, and provides the community with fresh, healthy food. Find one near you!

 

 

We are collecting vegetable seeds and starts for the Martha Perry Garden, where volunteers grow thousands of pounds of fresh produce every year for local food banks.

My office will be spending a volunteer day in the garden for our annual Community Service Day in June. In addition to our labor, we will gift them all of the vegetable seeds and starts collected between now and then.

All seeds should be no more than a year old, although fresh seeds are preferred.

Wish List:
Basil, Beets, Cabbage, Carrots*, Cauliflower, Chard, Cucumbers, Green Beans, Herbs, Marigolds, Peppers, Radishes, Summer Squash, Snow Peas, Tomatoes, Winter Squash, Zucchini
*High Demand!

Starts of cucumbers, winter & summer squash, cole crops (cabbage, cauliflower, broccoli, kale, etc) are especially welcome.

Thank you!!

 

Thank you for another successful Shred Day!

Two full truckloads of paper were safely shredded and recycled.

We love providing this service for our clients, friends and neighbors, but what we’re really excited about is how you all gave back to the community. Your donations provided 534 pounds of food and $1,129 to benefit Concern for Neighbors food bank. Thank you!

Posted on May 6, 2019 at 6:10 pm
Jill Langer | Category: Community, Economic Forecasts & Trends, Events, Fun Things To Do, Gardening & Landscaping, Gardner Reports, Matthew Gardner, Monthly Newsletters

Monthly Newsletter

Most recently, we have experienced an uptick in market activity. In fact, in King and Snohomish counties we saw a 53% increase in pending sales from December to January. While it is seasonally normal to see activity increase at the first of the year, it was 16% higher than the previous January. This increase is being driven by multiple factors, such as our thriving economy and job market, price acceleration softening, and the recent decrease in interest rates.

Currently, rates are as low as 4.5% for a 30-year fixed conventional mortgage – 0.75 points down from the fourth quarter of 2018. In fact, the interest rate in November was the highest we’ve seen in five years!  The current rate level is the lowest we have seen in a year. This is meaningful because the rule of thumb is that for every one-point increase in interest rate, a buyer loses ten percent in purchase power. For example, if a buyer is shopping for a $500,000 home and the rate increases by a point during their search, in order to keep the same monthly payment, the buyer would need to decrease their purchase price to $450,000. Conversely, for every decrease in interest rate, a buyer can increase their purchase price and keep the same monthly mortgage payment.

Why is this important to pay attention to? Affordability! If you take the scenario I just described and apply it to the link above, you can see that the folks who choose to jump into the market this year will enjoy an interest cost savings when securing their mortgage. This lasts the entire life of the loan and can have a huge impact on the monthly cash flow of a household. This cost savings is also coupled with a slow-down in home-price appreciation. Complete year-over-year, prices are up around 8% in both King and Snohomish counties, but note that from 2017 to 2018 we saw a 14% increase. Price appreciation is adjusting to more normal levels and is predicted to increase 4-6% in 2019 over 2018.

As we head into spring market, the time of year we see the most inventory become available, the interest rates will have a positive influence on both buyers and sellers. Naturally, buyers will enjoy the cost savings, but sellers will enjoy a larger buyer pool looking at their homes due to the demand the lower rates are creating. Further, would-be sellers who are also buyers that secured a rate as low as 3.75% via a purchase or re-finance in 2015-2017, will consider giving up that lower rate for the right move-up house now that rates are not as big of a jump up as they were during the second half of 2018.

This recent decrease in rate is making the move-up market come alive. What is great about this, is that it opens up inventory for the first-time buyer and helps complete the market cycle. First-time buyers are abundant right now as the Millennial generation is gaining in age and making big life transitions such as buying real estate. According to Nerd Wallet, 49% of all Millennials have a home purchase in their 5-year plan.

Will these rates last forever? Simply put, no! According to Matthew Gardner, Windermere’s Chief Economist, rates should increase into the 5’s in 2019. While still staying well below the 30-year average of 6.85%, increases are increases, and securing today’s rate could be hugely beneficial from a cost-saving perspective. Just like the 1980’s when folks were securing mortgages at 18%, the people that lock down on a rate from today will be telling these stories to their grandchildren. Note the 30-year average – it is reasonable to think that rates closer to that must be in our future at some point.

So what does this mean for you? If you have considered making a move, or even your first purchase, today’s rates are a huge plus in helping make that transition more affordable. If you are a seller, bear in mind that today’s interest rate market is creating strong buyer demand, providing a healthy buyer pool for your home. As a homeowner who has no intention to make a move, now might be the time to consider a refinance. What is so exciting about these refinances, is that it is not only possible to reduce your monthly payment, but also your term, depending on which rate you would be coming down from.

If you would like additional information on how today’s interest rates pertain to your housing goals, please contact me. I would be happy to educate you on homes that are available, do a market analysis on your current home, and/or put you in touch with a reputable mortgage professional to help you crunch numbers. Real estate success is rooted in being accurately informed, and it is my goal to help empower you to make sound decisions for you and your family.

Celebrate Earth Day with us! Bring all your sensitive documents to be professionally destroyed on-site by Confidential Data Disposal. Limit 20 file boxes per customer.

We will also be collecting non-perishable food and cash donations to benefit Concern for Neighbors Food Bank. Donations are not required, but are appreciated.

Saturday, April 20th, 10am – 2pm.
4211 Alderwood Mall Blvd, Lynnwood 98036

*This is a shredding-only event. Only paper will be accepted – no electronics or recyclables.

 

I am pleased to present the fourth-quarter 2018 edition of the Gardner Report, which provides insights into select counties of the Western Washington housing market. This analysis is provided by Windermere Real Estate Chief Economist Matthew Gardner. I hope that this information will assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact me.

Click to view the full report

Posted on March 10, 2019 at 12:48 am
Jill Langer | Category: Buying Homes, Community, Economic Forecasts & Trends, Events, Gardner Reports, Matthew Gardner, Monthly Newsletters

Get a Jump on Spring Cleaning

 

Whether you hire an outside professional for help, or tackle the project yourself, now is a great time to get a jump on spring cleaning. Many people wait for warmer temps to start cleaning, but I think most everyone can agree that those weekends would be better spent outdoors, soaking up that sun. So, take some inspiration from the list below to get you started now on freshening up your home for spring.

It will only take a few hours to check everything off this list, and you’ll feel so much better enjoying the last few weeks of winter, knowing that when the warmer weather finally comes, you can get outside and really enjoy it!

Rotate your mattress. Most mattresses need to be rotated regularly in order to even out the overall wear and prolong the lifespan of your bed. However, keep in mind that Sleep Number and Tempur-Pedic mattresses typically should not be rotated. Always check with your manufacturer for their recommendations on your specific mattress. If you own an older mattress with no pillowtop, it should probably be flipped as well as rotated.

Clean your mattress. Strip the mattress of all linens and covers. Start by vacuuming the mattress with the upholstery attachment, paying close attention to crevices and seams. Next, sprinkle baking soda (up to a one-pound box) all over the surface of your mattress. Let this sit for at least an hour, but 24 hours is best. Then go back over your mattress with your vacuum’s upholstery attachment again. If you have a steam cleaner, break it out and go over your whole mattress. The steam will reach further into the mattress than your vacuum is able to, and kills dust mites. *It is generally not recommended to clean memory foam with a steam cleaner.

Organize & clean the laundry room. Clean the outside of your washer and dryer; scrape any dried detergent from crevices. Next, clean the inside of the washing machine. Most newer models have a self-cleaning cycle. If you have an older machine that does not have a self-cleaning cycle, run a cycle with hot water and a quart of white vinegar. After it is finished, clean the detergent dispensers, using a vinegar and water solution and a scrubber. If you have a front-loader, be sure to clean the rubber seal on the door. This area is prone to mold growth, so use an all-purpose cleaner or maybe even bleach to get under and around the seal.

Next, organize a bit. Throw away products you never use, replace damaged sorting bins, and don’t forget to clean out the dryer vent to prevent a fire.

Deep clean the fridge. Twice a year (or more), you should give your fridge a front-to-back, top-down scrubbing. Start by taking everything out and throw away anything that has expired. Next, remove all the shelves and drawers. Put them to soak in a solution of two tablespoons baking soda and one-quart hot water. While they are soaking, wipe down the interior of the fridge with the same solution. Then scrub, rinse and dry the shelves and drawers.

Next, dry the drip pan. Remove the base grill, and pull out the drip pan. If it’s full of water, mop it with paper towels and wash the pan with soapy water. If your drop pan is fixed in place, wrap a cloth around the head of a long-handled brush and use to clean the pan.

Don’t forget the coils. In order to keep your refrigerator running efficiently, unplug it, pull it away from the wall, and use a coil brush or your vacuum’s crevice attachment to clean the condenser coils. This should be done at least twice a year, unless you have pets in the home, and then you should do this three to four times a year.

Clean out spice cabinet. Throw away all expired spices and seasonings. Not only do these lose taste, they actually harbor mold and bacteria.

Clean out expired medications & vitamins If you have unused medications, please take them to your local pharmacy for proper disposal.

Vacuum, wash, or steam window curtains

Wash window blinds

Add color to your table. Treat yourself to fresh flowers while waiting for the spring blooms outside.

And if you’re ready to get some deep cleaning done, check out this blog for the Ultimate Spring Cleaning Checklist.

Posted on February 3, 2019 at 7:02 pm
Jill Langer | Category: Fun Things To Do, Gardner Reports, Home Improvement, Home Maintenance

November Monthly Newsletter

 

Quarterly Economic Update for Western Washington
We are so fortunate here at Windermere to have Matthew Gardner, Windermere’s Chief Economist to help keep us informed on our economy and the real estate market. Each quarter Matthew compiles in-depth research on counties from across Western Washington. Click here to download Matthew’s full Q3 2018 report and check out the latest on the area you call home.

 

 

 

At the close of the third quarter, the Windermere Foundation had donated (year-to-date) over $1.2 million to non-profit organizations in communities throughout the Western U.S. that provide services to low-income and homeless families.

During the third quarter alone, the Windermere Foundation collected over $742,226 in donations; 70 percent of which came from individual contributions and fundraisers, while 30 percent came from donations through Windermere agent sales transactions. This brings the grand total to $37,151,731 raised since 1989!

If you would like to learn more about how the Windermere Foundation is supporting low-income and homeless families in our communities, check out this blog post. And for information on how we’re helping the California Wildfire Relief Fund, click here.

Thank you for your support! Together, we are able to make a real difference for those in need in our local communities.

Click here to learn more about the Windermere Foundation.

 

 

#TackleHomelessness Update
Consider this house protected. In our last home game win against the Packers, the Seattle Seahawks also brought home $2,800 to be donated to YouthCare to #TackleHomelessness. With that, we’re up to $15,000 raised this season and $81,800 in total! Great work and #GoHawks!
 

 

Do you want to be “In the Know” in your neighborhood? Sign up for a monthly overview of what’s happening in the zip code(s) of your choice. Neighborhood News is a great tool to stay informed about the home values and activity in your own backyard or to study a new market you may be interested in.Click here to sign up on my website.
Posted on November 28, 2018 at 11:26 pm
Jill Langer | Category: Buying Homes, Economic Forecasts & Trends, Gardner Reports, Matthew Gardner, Monthly Newsletters, Selling Homes, Windermere Foundation

Don’t Wait for a Disaster to Build Your Emergency Kit

 

 

Two Weeks Ready: Be Prepared. Build Kits. Help Each Other. 

The first few days after a disaster are often the most critical. Government and essential services may not be available right away, depending on the circumstances. It is imperative to have a plan in place for such a time, and be ready to act on your own. 

Washington’s biggest disaster threat is from earthquakes. Washington State’s Emergency Management Division advises that we take precautions to be on our own for at least 2 weeks. Take a look at their Two Week Ready Brochure (PDF) that outlines the basics necessary for your emergency kit. While it is important to get ready, don’t feel like you have to do it all at once. The list of necessities is long, so take a look at the agency’s year-long prep plan. You will also find information on pet preparedness, as well as the agency’s Drop, Cover, and Hold Earthquake Scenario map.

Posted on September 21, 2018 at 7:28 pm
Jill Langer | Category: Gardner Reports

Why We Are NOT Headed Toward Another Housing Bubble

 

Double-digit price appreciation has taken place for over 3 years now, so prices are up. Way up. In fact, in just the last year we have seen prices rise 14% year-over-year. When talking with people about our real estate market, the conversation often involves the question, “are we headed toward a bubble?” I get asked this question often, and I can understand why. With the Great Recession not too far back in our rear-view mirror, the fear that surrounds the bottom dropping out in our home values is real. The large price gains might seem familiar to the gains of the previous up market of 2004-2007, but the environment is much different, and that is why we are not headed toward a housing collapse.

Lending Requirements & Down Payments
Previous lending practices allowed people to get into homes with high debt-to-income ratios, low credit scores, risky loan programs, and undocumented incomes. They called this sub-prime lending. This lead to the housing bubble bursting 10 years ago – because people received mortgages they were not equipped to handle. Borrowers were not properly qualified for their monthly payments, and with minimal down payments they had no skin in the game. There were also a ton of adjustable rate mortgages and interest-only loans, which created negative equity positions. In July 2007, the sub-prime loan products disappeared and literally became history overnight. This eliminated a large part of the buyer pool creating over supply, not to mention the foreclosures that followed due to these ill-equipped homeowners walking away. The combination of these two factors caused prices to plummet.

Conversely, in March of this year, the average credit score for an approved conventional loan according to Ellie Mae was 752. Banks are scrutinizing their borrowers much more thoroughly than in the past. Credit scores are only the start; solid documentation of employment, assets, and debt are all passed through strict underwriting standards before closing. During the days of sub-prime lending, banks were funding loans with scores as low as 560! This, coupled with many zero-down loan programs and the risky terms mentioned above, left many new homeowners with little to no equity. When you have little or no equity it is very easy to bail.

In addition to heartier credit scores, down payments have increased significantly. According to Attom Data Solutions the average down payment is 18%. To put this in perspective, the median price in Seattle Metro in the first quarter of 2018 was $775,000. 18% of that is $139,500! There is a marked difference in the connection to one’s investment with such a large amount on the line versus the common 0% down loans of the sub-prime era. When people have high equity levels they are not likely to abandon their home or miss payments.

Our Thriving Local Economy, Job Creation & Californians
According to Matthew Gardner, Windermere’s Chief Economist, it is foretasted that there will be 46,000 more jobs in the Seattle Metro area in 2018. This has created high numbers of residual migration into our area from other states. In 2016 there were 50,000 people that moved here, and 47,000 in 2017. Many of these new Washingtonians are former Californians, specifically from the Bay Area. Unbelievably, our prices are attractive to this group, as they can take a similar tech job here and make the same income with a lower cost of living. If untethered and up for a move, it’s a no-brainer.

The most influential factor that has led the run on prices has been low inventory levels coupled with high housing demand. It’s simply the concept of supply and demand. The growth of companies like Amazon, Google, and Facebook in our area has created increased demand, especially for homes closer to job centers resulting in shorter commutes. When you have increased demand and not enough homes to absorb the buyers, prices go up. Over the last three years we have easily seen a 10%+ increase in prices year-over-year. That is above the norm, and will slow down once inventory increases. That slowdown will be welcomed and it will not be a collapse in values or a bubble bursting.

Interest Rates
Interest rates are increasing, and it is predicted they will reach close to 4.95% by the end of the year. This will naturally curtail price growth because it will not be as cheap to borrow money, which will cause buyers to temper their pricing ceilings. Bear in mind, that an interest rate of 4.95% is still historically low, we’ve just been incredibly fortunate to be able to secure long term loans with minimal debt service. The average interest rate over the last 30 years is 7%.

I understand that the recent increase in home prices has been big and that it might remind you of the previous up market before the crash. I hope that digging into the topics above has shed some light on how it is different. I always welcome the opportunity to have a conversation about these hot topics and discern how they relate to you. As always, it is my goal to help keep my clients informed and empower strong decisions. Please let me know if I can answer any questions or help you or anyone you know with their real estate needs.

 

Now that the 2017 tax deadline has come and gone it is time to think about how the new tax reform of 2018 might affect you next year.  A few notable items are the limited mortgage interest rate deduction capped at $750,000, limited property tax deduction capped at $10,000 and moving expenses can only be written off by members of the armed services.  Read the full article here and take notes, so you are prepared for next year’s tax season.

 

Thanks to your continued support, the Windermere Foundation collected over $330,000 in donations in the first quarter of 2018. Fifty-eight percent of the donations came from individual contributions and fundraisers, while 42 percent came from donations through Windermere agent sales transactions. This brings our grand total to $35,869,961 raised since 1989. We are very close to reaching the $36-million mark! These funds go towards supporting low-income and homeless families right here in our local community.

Thanks again for all you do to support the Windermere Foundation. Together, we are able to make a difference for those in need in our local communities.

For the full first quarter 2018 report, please visit the Windermere blog, and to learn more about the Windermere Foundation, visit www.windermere.com/foundation.

Posted on April 29, 2018 at 10:22 pm
Jill Langer | Category: Gardner Reports