May was not as hot as 2018 but with summer here we are starting to heat up a bit! I have started to see a bit more listings come on the market and price points under $450k were faster to move as buyers are starting to pick up the pace. Homes under $400,000 your chances of competing with multiple offers was much higher. It has certainly helped all price points that interest rates have leveled and even dropped a bit.
We are up 1% May 2019 vs. May 2018
There were 2,426 available homes to come on the market +362 vs. April.
Down 5% May 2019 vs. May 2018
1962 units -109 vs. April
+0%!!! May 2019 vs. 2018
1660 units +223 than April
Snohomish County Active to pending 27 days vs. 18 a year ago. Down 8 days from last month. Homes prices over 450k seem to be taking up most of that time.
Median home price in Snohomish County 494,000 +0% last year. Down $1,000 from last month!
Bothell-$670,500 down 8% from last month.
Edmonds/Lynnwood -4% to $525,000.
Everett/Mukilteo -3% to $452,000. Snohomish/Monroe +4% to $465,000
Lake Stevens/Granite Falls + 10% to $449,000
Marysville +6% to $410,000
King County Median home prices are $661,000 that is down 2% over last year and up $22k from last month. Woodinville area Median price is $764,000. Last year they were over 800k. Definitely a leveling in our east Snohomish/King County area. Days on market 36 compared to 11 a year ago.
Last week, the National Association for Business Economics released their February 2019 Economic Policy Survey. The survey revealed that a majority of the panel believe an economic slowdown is in the near future:
“While only 10% of panelists expect a recession in 2019, 42% say a recession will happen in 2020, and 25% expect one in 2021.”
Their findings coincide with three previous surveys calling for a slowdown sometime in the next two years:
That raises the question: Will the real estate market be impacted like it was during the last recession?
A recession does not equal a housing crisis. According to the dictionary definition, a recession is:
“A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.”
During the last recession, prices fell dramatically because the housing collapse caused the recession. However, if we look at the previous four recessions, we can see that home values weren’t negatively impacted:
Most experts agree with Ralph McLaughlin, CoreLogic’s Deputy Chief Economist, who recently explained:
“There’s no reason to panic right now, even if we may be headed for a recession. We’re seeing a cooling of the housing market, but nothing that indicates a crash.”
The housing market is just “normalizing”. Inventory is starting to increase and home prices are finally stabilizing. This is a good thing for both buyers and sellers as we move forward.
If there is an economic slowdown in our near future, there is no need for fear to set in. As renowned financial analyst, Morgan Housel, recently tweeted:
“An interesting thing is the widespread assumption that the next recession will be as bad as 2008. Natural to think that way, but, statistically, highly unlikely. Could be over before you realized it began.”
Happy New Year everyone! I hope 2019 is starting out, and will be, an amazing year for you and yours.
I am reaching out to you today to share some VERY exciting news. It has been wonderful to help so many families find homes, investment properties, save homes for those that needed it with my short sale and foreclosure knowledge and help others sell as they transition into something more comfortable for their changing lifestyle. I have been blessed by many of you referring me to your friends, family and colleagues. Thank you!
Life IS ever changing and because of the ever-changing nature of the real estate market, it’s imperative that my clients have the most up-to-date information available. My philosophy is that the market waits for nobody, and that’s why I pledge to go beyond the standard level of service even after your home has closed. I always want my clients to feel free, and comfortable, to contact me with questions, referrals for home repairs, or to just say hi!
With change in mind I am excited to announce that I have officially brought on an amazing, buyer’s specialist to assist me in providing the quality of service I want to give my clients and they deserve. Please help me in welcoming Britt Maltos to my team!
I am excited to partner with a Realtor who, like myself, is from Washington. I feel it gives us so much more knowledge of the neighborhoods we are helping families in. Britt grew up in Ballard and lives in Edmonds with her husband and kids. I grew up in Lynnwood and then the north Seattle area. My first apartment was in Ballard before moving to Redmond for many years and finally settling in the Everett/Snohomish area with my family.
I like to say we’re your local homegrown Real Estate team!
When you have Real Estate needs you want someone who knows the prospective area inside and out, someone who will not only find you the best property for your needs, but the best neighborhood as well. A team that can direct you to which loan product works best for you and knows of many that will save you money along the way. A team that now gives CASH back to our local community heroes (firefighters, EMS, law enforcement, teachers, healthcare, and military) when they buy or sell a home with us. A team that is qualified to help seniors with downsizing or lifestyle changes and providing a senior discount (new)!
That’s where we come in: We can provide you with information that will inform your real estate decisions. So, rest assured that as long as you’re in the market, we are committed to be your neighborhood specialists and more.
Even if you are not considering buying or selling a home now, if any of your friends, family or colleagues express an interest and would appreciate the level of service we provide please, feel free, to give out our contact information. We would be happy to chat with them and promise to take great care of them.
Thank you, It is so rewarding to help families make their real estate dreams come true.
So many great things going on in my business right now that I am excited for but first to close out 2018 and something very near and dear to my heart. Giving back on behalf of all my clients to Seattle Children’s Hospital.
If the real estate market is your barometer, there are several key indicators to investigate:
Supply and demand plays a role. When there are not many homes for sale (low inventory), this often means home prices are higher, and the market becomes more competitive for buyers. This is the case in 2018. However, inventory levels have been steadily increasing June-August this year, and actually surpassed August 2017 levels. If inventory levels continue to increase, that’s a good sign for buyers for the remainder of 2018.
Inventory of homes for sale will affect pricing. More homes for sale will typically drive down prices, where as low inventory of homes for sale typically means there is higher buyer demand, and it will usually push prices up. This is the case in 2018 where most markets are experiencing low inventory and higher prices. The existing home price increase in August 2018 marks the 78th consecutive month of year-over-year price gains according to the National Association of Realtors. Some early estimates for 2019 show that home prices will continue to increase around 3% in most markets. Great if you’re selling a house, but challenging if you’re buying. It makes buying in 2018 look even better.
House prices typically drop the longer a home stays on the market. When this happens, it’s a good sign the market is cooling off or correcting. This year, in most markets, homes have sold relatively fast. This means potential buyers need to have their ducks in a row so they can act fast on the home they want.
According to Realtor.com, it’s the perfect time to buy a house because fall and winter tend to be better for home buyers, and this year is no exception. Housing inventory is on the rise, and that may mean lower prices and more bargaining power for buyers. That, combined with sellers who are anxious to get the sale done before the holidays, makes fall and winter a great time to buy.
The interest rate is a big topic of conversation this year, and probably one you’ve kept top of mind when asking, “Should I buy a house in 2018?” The Federal Reserve has raised interest rates a couple of times this year. Two or three more rate hikes are being predicted, which may mean a more expensive mortgage for you. In September, the rate for a 30-year, fixed-rate mortgage jumped to 4.88 percent, which is the highest level for the 30-year mortgage since 2011, according to Bankrate. But, you need to understand this is still well below the average over the past 45 years outlined below with FreddieMac data since 1972.
Trying to time your home-buying decision to take advantage of low interest rates or a buyer’s real estate market are smart home-buying strategies, but the real question is: Is it the right time for you, personally, to buy a house or maybe it would be better to rent?
Some of you may not be a current home owner and are probably asking yourself, “Should I buy a house in 2018 or rent?” In order to figure out whether it would be better to rent or buy a house, consider these factors in addition to the current interest rate and real estate market:
The interest rate can be as low as it’s ever going to go, but if your credit score is shaky, you’re not going to be able to take advantage of that. People with lower credit scores pay higher interest rates, and the amount can add hundreds to your monthly mortgage payment. Improving your score, no matter what the market is doing currently, is the smarter way to go.
If you haven’t checked your credit lately, you might want to take a look at it. Last year, credit reporting companies announced they were changing the way they handle negative information, resulting in many people seeing a spike of up to 40 points on their credit score. This overhaul was caused by the Consumer Financial Protection Bureau, which found problems with the reporting of collections and tax liens and as a result, that data has been removed from millions of credit reports.
However, particularly for home buyers, a tax lien or civil judgement can still interfere with your ability to get a loan. LexisNexis Risk Solutions found that people who have a tax lien or judgement are five and a half times more likely to go into pre-foreclosure or foreclosure, so mortgage lenders may well pull a LexisNexis report to find out, even if it no longer appears on your credit report.
FICO scores (credit scores) range from 300 to 850. If yours is 700 or above, you’ll qualify for a better interest rate on a loan, so that’s the score you’re shooting for.
If your score is less than 650, here are some ways to improve it:
Most financial experts agree that your housing costs should be no more than 30 percent of your income. Can you find an affordable home based on what you’re earning now? Also look at your debt-to-income ratio. If you’ve got a high amount of debt and a relatively low income, it will be more difficult to get a home loan. Pay down your debt before applying.
However, there has never been a better time to increase your income by finding a new job. Unemployment is at an 18-year low, which means it’s a job seeker’s market out there. Take a look at the average salary range for your position in your area to gauge how your employer stacks up.
Experts recommend putting down 20 percent or more. Why? There are a few reasons. If you put less than 20 percent down, you’ll have to pay private mortgage insurance, which, on a $300,000 loan, will cost you an extra $250 each month. Another reason to make a larger down payment is to protect yourself in the event that you have to move shortly after you purchase the home, if you get a new job in another city or if your spouse is transferred, for example. With a small or nonexistent down payment, you might find yourself underwater, owing more than you can sell the home for, if real estate prices have fluctuated.
In addition to the down payment, you’ll need money for closing costs. According to Motley Fool, you can expect to pay around 2 to 5 percent of the value of the property. So on that same loan of $300,000, you’ll pay in the neighborhood of $6,000 for closing.
And, if you’re still asking yourself, “Should I buy a house in 2018,” don’t forget to consider having enough cash on hand to cover your mortgage if you or your spouse loses a job, and have enough in savings for repairs if something goes wrong or breaks.
Bottom line, do your homework. Review these items and get to know your personal situation so you are prepared to discuss everything with a real estate and mortgage professional when your ready, whether it’s in 2018 or not.
Interested in doing a deeper dive? Here are some additional resources:
8 Advantages to Buying a House
First Time Home Buyer Tips
Wondering How to Get a Mortgage and Stop Paying Rent?
Financial Considerations When Buying a Home
Rent or Buy: The Great Debate
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REAL ESTATE news
Sales of existing homes slipped 0.7 percent in July, fourth straight monthly decline
Lower priced homes are experiencing fewer price reductions than upper end properties
Home value growth slowing in several hot markets
MORTGAGE & FINANCE news
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Massive student debt makes homeownership almost impossible
Guide to understanding your home’s value
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Buyers see hope on the horizon in cooling Seattle market
Seattle-area drops to the #12 market for home price growth
Home price acceleration slows, but it’s still a challenge if you’re a buyer
Seattle #2 on list of best cities for ice cream lovers
Performing arts and affordable housing come together in planned Rainier Valley development
The SR-99 tunnel gets its stripes (and some running stick figures)
Port of Everett breaks ground on huge and historic modernization project
Where do Washington State’s billionaires live?
WEEKLY DOSE OF awesomeness
What do the smart home systems of the wealthy have that Alexa doesn’t?
(hint: Morgan Freeman)