Local Market AnalysisNewsletterQuarterly Reports May 3, 2021

Newsletter – Economy & Housing Market Update

Matthew Gardner is the Chief Economist at Windermere and a sought-after expert on real estate, both locally and across the country. Every quarter, Matthew breaks down the real estate market by region and provides the Gardner Report; you can read this quarter’s full report here.  Additionally, he also provides a monthly video report touching on the latest trends and hot topics concerning the real estate market. Click on the image below to view his latest Monday with Matthew video.

If you have any questions or curiosity about the current real estate market that you would like to discuss, please reach out. Are you curious about the value of your home, are you contemplating a move, or considering a new purchase? I can help! It is always my goal to help empower my clients to make strong financial decisions and to help them understand how real estate can positively affect their lifestyle.

 

Thank you to everyone who came through our shredding event this year!  The results from the food drive were overwhelming. Through all of your generous giving, we collected 2,290 pounds of food and $7,080 in cash!  Concern For Neighbors Food Bank was thrilled to pick up so much tangible love and help. They will use the funds to purchase food to provide to the community in need over the next several weeks.

If you’d like to donate, please visit their website (above) to see their COVID-19 schedule and how you can help.

Quarterly Reports April 19, 2021

South King County Quarterly Market Trends – Q1 2021

Q1 2021 signified a measurable shift in the real estate market. Demand since the first of the year has been brisk, proving Q1 2021 to be one of the most impactful times in market history! Interest rates remain historically low, helping to offset the cost of price appreciation. Rates and the lucrative tech-influenced job market have helped pending sales outpace new listings.

 

Additionally, the convergence of Millennials, Gen Xers, and Baby Boomers making big lifestyle moves due to the low cost of debt service, work-from-home options, and formidable equity has the market frothy. Nationally, 30% of all homeowners have over 50% equity in their home, leading people to make moves with large down payments.

 

Days on market were swift and price gains were well above average in Q1. As we head into Q2, we are confident the months ahead will provide traditional inventory gains providing buyers more selection. We would welcome a tempering in price growth as it has been abundant and is affecting affordability. If you or someone you know is curious about how today’s real estate market relates to your financial and lifestyle goals, please reach out. It is my mission to help keep my clients informed and empower strong decisions.

Quarterly Reports April 19, 2021

North Snohomish County Quarterly Market Trends – Q1 2021

Q1 2021 signified a measurable shift in the real estate market. Demand since the first of the year has been brisk, proving Q1 2021 to be one of the most impactful times in market history! Interest rates remain historically low, helping to offset the cost of price appreciation. Rates and the lucrative tech-influenced job market have helped pending sales outpace new listings.

 

Additionally, the convergence of Millennials, Gen Xers, and Baby Boomers making big lifestyle moves due to the low cost of debt service, work-from-home options, and formidable equity has the market frothy. Nationally, 30% of all homeowners have over 50% equity in their home, leading people to make moves with large down payments.

 

Days on market were swift and price gains were well above average in Q1. As we head into Q2, we are confident the months ahead will provide traditional inventory gains providing buyers more selection. We would welcome a tempering in price growth as it has been abundant and is affecting affordability. If you or someone you know is curious about how today’s real estate market relates to your financial and lifestyle goals, please reach out. It is my mission to help keep my clients informed and empower strong decisions.

Quarterly Reports April 19, 2021

Seattle Metro Quarterly Market Trends – Q1 2021

Q1 2021 signified a measurable shift in the real estate market. Demand since the first of the year has been brisk, proving Q1 2021 to be one of the most impactful times in market history! Interest rates remain historically low, helping to offset the cost of price appreciation. Rates and the lucrative tech-influenced job market have helped pending sales outpace new listings.

 

Additionally, the convergence of Millennials, Gen Xers, and Baby Boomers making big lifestyle moves due to the low cost of debt service, work-from-home options, and formidable equity has the market frothy. Nationally, 30% of all homeowners have over 50% equity in their home, leading people to make moves with large down payments.

 

Days on market were swift and price gains were well above average in Q1. As we head into Q2, we are confident the months ahead will provide traditional inventory gains providing buyers more selection. We would welcome a tempering in price growth as it has been abundant and is affecting affordability. If you or someone you know is curious about how today’s real estate market relates to your financial and lifestyle goals, please reach out. It is my mission to help keep my clients informed and empower strong decisions.

Quarterly Reports April 19, 2021

Eastside Quarterly Market Trends – Q1 2021

Q1 2021 signified a measurable shift in the real estate market. Demand since the first of the year has been brisk, proving Q1 2021 to be one of the most impactful times in market history! Interest rates remain historically low, helping to offset the cost of price appreciation. Rates and the lucrative tech-influenced job market have helped pending sales outpace new listings.

 

Additionally, the convergence of Millennials, Gen Xers, and Baby Boomers making big lifestyle moves due to the low cost of debt service, work-from-home options, and formidable equity has the market frothy. Nationally, 30% of all homeowners have over 50% equity in their home, leading people to make moves with large down payments.

 

Days on market were swift and price gains were well above average in Q1. As we head into Q2, we are confident the months ahead will provide traditional inventory gains providing buyers more selection. We would welcome a tempering in price growth as it has been abundant and is affecting affordability. If you or someone you know is curious about how today’s real estate market relates to your financial and lifestyle goals, please reach out. It is my mission to help keep my clients informed and empower strong decisions.

Quarterly Reports April 19, 2021

North King County Quarterly Market Trends – Q1 2021

Q1 2021 signified a measurable shift in the real estate market. Demand since the first of the year has been brisk, proving Q1 2021 to be one of the most impactful times in market history! Interest rates remain historically low, helping to offset the cost of price appreciation. Rates and the lucrative tech-influenced job market have helped pending sales outpace new listings.

 

Additionally, the convergence of Millennials, Gen Xers, and Baby Boomers making big lifestyle moves due to the low cost of debt service, work-from-home options, and formidable equity has the market frothy. Nationally, 30% of all homeowners have over 50% equity in their home, leading people to make moves with large down payments.

 

Days on market were swift and price gains were well above average in Q1. As we head into Q2, we are confident the months ahead will provide traditional inventory gains providing buyers more selection. We would welcome a tempering in price growth as it has been abundant and is affecting affordability. If you or someone you know is curious about how today’s real estate market relates to your financial and lifestyle goals, please reach out. It is my mission to help keep my clients informed and empower strong decisions.

Quarterly Reports April 19, 2021

South Snohomish County Quarterly Market Trends – Q1 2021

Q1 2021 signified a measurable shift in the real estate market. Demand since the first of the year has been brisk, proving Q1 2021 to be one of the most impactful times in market history! Interest rates remain historically low, helping to offset the cost of price appreciation. Rates and the lucrative tech-influenced job market have helped pending sales outpace new listings.

 

Additionally, the convergence of Millennials, Gen Xers, and Baby Boomers making big lifestyle moves due to the low cost of debt service, work-from-home options, and formidable equity has the market frothy. Nationally, 30% of all homeowners have over 50% equity in their home, leading people to make moves with large down payments.

 

Days on market were swift and price gains were well above average in Q1. As we head into Q2, we are confident the months ahead will provide traditional inventory gains providing buyers more selection. We would welcome a tempering in price growth as it has been abundant and is affecting affordability. If you or someone you know is curious about how today’s real estate market relates to your financial and lifestyle goals, please reach out. It is my mission to help keep my clients informed and empower strong decisions.

Living April 12, 2021

Local Farmer’s Markets 2021

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 over-development, and provides the community with fresh, healthy food. Find one near you on the list below!

 

 

 

SOUTH SNOHOMISH

Arlington Farmers Market
Legion Park: 114 N. Olympic Ave
Saturdays. 10am-2pm
May 8 — September 25

Bothell Park Ridge Community Market
Park Ridge Church: 3805 Maltby Road, Bothell
Wednesdays 4pm-8pm
June 2—September 29

Edmonds Garden Market
Historical Museum: 5th & Bell Street
Saturdays 9am-2pm
May 1—June 12

Edmonds Summer Market
Downtown: 5th St from the fountain
Saturdays 9am-2pm
June 19—October 9

Everett Farmers Market
2930 Wetmore Ave
Sundays 11am-3pm
May 9—October 31

Marysville Farmer’s Market
Grocery Outlet: 9620 State Ave
Sundays 12pm-6pm
April 18—September 26

Monroe Farmer’s Market
Galaxy Theater: 1 Galaxy Way
Wednesdays 2:30pm-7pm
May 26-September 1

Snohomish Farmers Market
Cedar Ave & Pearl St.
Thursdays 3pm-7pm
May 6—September 30

 

 

EASTSIDE

Bellevue Farmers Market
First Presbyterian: 1717 Bellevue Way NE
Thursdays 3pm-7pm
May 13—October 7

Bellevue Crossroads Farmers Market
East Parking Lot: 15600 NE 8th St
Tuesdays 12pm-6pm
June 1—September 28

Issaquah Farmers Market
Pickering Barn: 1730 10th Ave NW
Saturdays 9am-2pm
May 1—September 25

Juanita Friday Market
Juanita Beach: 9703 NE Juanita Dr
Fridays 3pm-7pm
June 4—September 24

Kirkland Wednesday Market
Marina Park: 25 Lakeshore Plaza
Wednesdays 3pm-6pm
June 2—September 29

Mercer Island Farmers Market
Mercerdale Park: 7700 SE 32nd St
Sundays 10am-3pm
June 7—September 27

Redmond Saturday Market
Redmond Town Center: 7730 Leary Way NE
Saturdays 9am-3pm
May 1—October 30

Sammamish Farmers Market
City Hall Plaza: 801 228th Ave SE
Wednesdays 4pm-8pm
May 5—September 29

Woodinville Farmers Market
DeYoung Park: 13680 NE 175th St
Saturdays 9am-3pm
May 1—September 25

 

SEATTLE

Ballard Farmers Market
Ballard Ave NW
Sundays. 9am-2pm
YEAR ROUND

Capitol Hill Broadway Farmers Market
E Denny Way (between Broadway & 10th Ave)
Sundays 11am-3pm
YEAR ROUND

Columbia City Farmers Market
37th Ave S & S Edmunds St
Wednesdays 3pm-7pm
May 12—October 13

Fremont Sunday Market
Corner of 3410 Evanston Ave N
Sundays 10am-4pm
YEAR ROUND

Lake City Farmers Market
125th St and 28th Ave NE
Thursdays 3pm-7pm
July 1—September 23

Lake Forest Park Farmers Market
Third Place Commons: 17171 Bothell Way NE
Sundays 10am-2pm
May 9—October 17

Madrona Farmers Market
1126 Martin Luther King Jr. Way
Fridays 3pm-7pm
May 14—October 15

Magnolia Farmers Market
Magnolia Village: 33rd Ave W & W McGraw
Saturdays. 10am-2pm
June 5—September 25

Phinney Farmers Market
Closed for 2021

Queen Anne Farmers Market
W Crockett Street & Queen Anne Ave N
Thursdays 3pm-7:30pm
June 3—October 7

Shoreline Farmers Market
15300 Westminster Ave N
Saturdays 10am-2pm
June 5—October 2

University District Farmers Market
University Way NE
Saturdays 9am-2pm
YEAR ROUND

Wallingford Farmers Market
Meridian Park: Meridian Ave N & N 50th St
Wednesdays 3pm-7pm
June 9—September 29

West Seattle Farmers Market
California Ave SW & SW Alaska St
Sundays 10am-2pm
YEAR ROUND

Local Market AnalysisNewsletter April 5, 2021

Newsletter – What is your home worth? Price Appreciation Case Studies in Snohomish & King Counties

 

 

Over the last 6 years, the median price for a single-family home in King County has grown by 65%, and in Snohomish County 69%. Above are examples of actual homes sold in late 2015 to early 2016 that also sold in early 2021. Note, they were not remodeled or significantly improved in between sales. These examples show the growth in home values that we have experienced over the last three years due to our thriving local economy. I pulled these examples to show you actual pound-for-pound market data versus the statistical percentages I often quote in these market updates. I thought these examples were pretty telling and quite exciting.

This phenomenon has been driven by interest rates being under 5% for the last five years and under 4% for the last 2 years. In addition to low debt service, the tech-influenced job market has kept the local economy humming. Couple all of this with the convergence of Millennials breaking into the market as first-timers or moving up, Gen-Xers moving up, and Baby Boomers cashing out to the right-size house in our area or relocating altogether, and demand is high. This high demand has put pressure on available inventory, driving up price appreciation.

The more recent influence on home values is the effect of the work-from-home lifestyle on housing. Many companies have announced that post-pandemic they plan to let their employees permanently work from home or do so in a hybrid model. This has changed the preference to be closer to the in-city job centers to avoid a long commute. Now, more and more people are attracted to the suburbs and in some cases more rural settings in order to enjoy larger interior and exterior spaces. According to Matthew Gardner, Windermere’s Chief Economist, over 30% of all homeowners in America have over 50% equity. These moves to the suburbs are also propped up on liquidating their equity elsewhere and utilizing it to make a large down payment on the next purchase. Check-out Matthew’s latest video update here.

I see this as a re-organization of lifestyle propped up by strong equity growth, low debt service, and the flexibility to live further from one’s job. Homes in-city are still experiencing favorable appreciation with the median price up 7% year-over-year in Seattle proper, but there is stronger year-over-year growth in suburban locations. For example, in Lynnwood the median price is up 11% year-over-year. Where this has been a challenge is the typical suburban buyer is now competing with far more buyers for these coveted locations. The former suburban buyer accepted a longer commute for a less expensive home. With commute times a lesser concern, now we have a larger audience vying for homes outside the in-city core, making the suburbs more expensive.

The large price gains might seem familiar to the gains of the previous up market of 2004-2007 that resulted in a bubble, but this environment is much different, which is why we are not headed toward a housing collapse. Previous lending practices allowed people to get into homes with risky debt-to-income ratios, minimal down payments, low credit scores, and undocumented incomes. A large part of why the housing bubble burst 14 years ago was due to people getting into mortgages that were not sustainable, which led to the eventual fall of sub-prime lending and the bubble bursting.

It is supply and demand that is creating these huge gains in prices, not predatory lending. We are starting to see an uptick in homes coming to market which is both seasonal and catch-up from the pause the pandemic created last spring. With the vaccine becoming more and more available, more home sellers will become more comfortable bringing their homes to market. The shake-out of the work-from-home shift will eventually temper as some will choose to stay closer in-city and some employers may revert back to in-person work forces. The suburbs are not for everyone, but for now the puzzle of how housing and lifestyle relate to one another is being re-built.

We are anticipating an increase in inventory as we head into spring and summer which will temper price growth and simmer the frenzy. Many folks who have been waiting out the pandemic to make a move based on retirement or upgrading homes are well-positioned to enter the market. If you are one of those people, I hope these examples provide insight on the increase in home values and how they might pertain to your goals.

Potential buyers might shy away from the market due to affordability. While it is expensive to buy a home in the Greater Seattle area, the people that have become homeowners over the last six years have built some amazing wealth. Interest rates remain low, helping to absorb the cost of a home in our area. Last month, I wrote an article about wanting to sell but needing to also buy, which helped layout some strategies to successfully participate in today’s market. If you or anyone you know is considering making a purchase, it is worth the read.

As we head into the active spring and summer months, if you’d like me to provide you a complimentary Comparable Market Analysis (CMA) on your home so you have a better understanding of your home’s value, I’d be happy to do that. This would be an important component in charting your 2021 financial goals. Please reach out, it is my goal to help keep my clients informed and empower strong decisions.

 

4211 Alderwood Mall Blvd, Lynnwood

We are partnering with Confidential Data Disposal for our 10th year; providing you with a safe, eco-friendly way to reduce your paper trail and help prevent identity theft.

Bring your sensitive documents to be professionally destroyed on-site. Limit 10 file boxes per visitor.

We will also be collecting donations to benefit Concern for Neighbors food bank. Donations are not required but are appreciated.
Hope to see you there!

**This is a Paper-Only event. No x-rays, electronics, recyclables, or any other materials.

Local Market AnalysisNewsletter March 15, 2021

You Want to Sell, but Need to Buy, too: What to do?

Homeowners across our region are enjoying incredibly healthy equity levels due to an upswing in the real estate market over the last five years. In fact, the median price in King County is up 50% over the last five years and up 55% in Snohomish County. Over the last 10 years, the median price is up 96% in King County and 106% in Snohomish. This growth in equity has given homeowners the exciting option to sell their home for a high price and move on to their next chapter, such as a move-up, down-size, or second home. This price growth is great news and provides many opportunities; however, we have also faced some challenges in how to make these transitions due to tight inventory.

The biggest challenge for buyers, which is conversely a benefit for sellers in the marketplace right now, is limited inventory levels. Buyers who need to sell their homes first in order to buy want to benefit from the upward pressure on prices for their home sale but are fearful of finding their next home in a timely manner. Currently, King County sits at 0.6 months of inventory and 0.4 in Snohomish based on pending sales data. These levels create a multiple-offer environment that is tough for buyers whose down payment is not readily available. Historically, buyers that are also sellers (those who have their down payment tied up in the equity of their home) would commonly secure a new home contingent on the sale of their current home. Meaning the seller of the new home they are buying would give them a month or so to get their current house sold in order to buy theirs. In this market, that is only rarely an option- like unicorn status.

So, the million-dollar question is this: how does one who has gained so much equity, now itching to get that bigger house, more functional floorplan, different location, or perfect rambler for settling into retirement, make this transition? We need to get creative, have a strategy and be ready to take on some possible short-term discomfort for long-term gain. Three options that are proven to be successful are: negotiating a rent-back for my sellers, using the Windermere Bridge Loan program, or having the bold courage to sell first and possibly move twice.

1. RENT-BACK
First, negotiating a rent-back has become a great option for someone who needs to first sell their current home in order to buy. The way it works is we put their home on the market, price it competitively to create demand, and ask for a rent-back as one of the preferred terms. If this rent-back is successfully negotiated, then the seller closes on their home and collects their funds but gets to stay in the house anywhere from 30-60 days post-closing. This enables the seller, who is now a buyer, to have their cash-in-hand, time to find a new house, get it under contract, and close the sale when their rent-back is ending. This eliminates the need to move twice. There is a bit of calculated risk in this plan, but I’ve seen it work several times, always with a plan B (interim place to move) ready just in case. Rarely has plan B needed to be executed, and often we’ve even been able to negotiate under market rent rates during the rental period.

2. WINDERMERE BRIDGE LOAN
The second option is the Windermere Bridge Loan program. This is an amazing tool for homeowners that own their homes free and clear, or who have sizable equity. This is an efficient, low-cost option where a buyer who needs to sell can pull the equity out of their house prior to selling it in order to make a non-contingent offer. The way it works is we establish the market value of the house the homeowner currently owns, via comparative market analysis (CMA) that I complete and is signed off by my managing broker. We then take 75% of the CMA value and subtract any debt owed, and that is the maximum amount the homeowner can borrow for their next down payment (max limit $1M).

They can then make a non-contingent offer on a new home as long as their lender approves that they can hold the current home and qualify for the new mortgage at the same time. What is really great about this program, is that it doesn’t require an appraisal (like a HELOC does), and these can easily be turned around in 5-7 business days. This tool provides the opportunity to quickly and inexpensively utilize your equity, be competitive to win the next house, and eliminates the double move.

The fees associated with this program are a 1% loan fee on the equity that is pulled, a title report, and interest that is incurred between the loan funding and being paid off once the subject home is sold. That interest is conveniently wrapped up in the closing costs when they close the sale of their home, eliminating the need to make monthly interest payments. In a strategy that is somewhat mind-blowing- we can sometimes use these bridge loans and never have to actually fund them. For example, if we secure a property non-contingent with the bridge loan and immediately get the bridge loan home on the market, we can often secure a sale with a simultaneous closing, and never have to fund the loan. This eliminates the loan fee, interest, and the need to carry two mortgages.

3. SELL FIRST, MOVE TWICE
The third option is to tie up your bootstraps and get your home sold before you start actively shopping for the next.  By all means, study the market, get pre-approved and have an idea of where and what you want, but remain committed to selling your home first. The benefits of selling your home first are being up against less competition and knowing exactly how much money you have to work with in the end.

Typically, we see more inventory come to market in Q2 and Q3, the earlier in the year a home comes to market the less competition they experience which is always favorable for the seller’s financial outcome. Knowing exactly how much you are going to net from your home sale is an empowered position to be in as is having the cash in the bank when vying for your next home. In this market, we are seeing shocking price escalations and this “extra” cash could be the difference-maker to obtain your dream home.

It does take bold courage to sell your home first as it often requires a double move. I know, that sounds miserable, moving is hard and disruptive. What is also costly and miserable is spinning your wheels as a buyer as prices appreciate and missing out on opportunities. The advent of VRBO and AirBnB has created a much more available short-term rental market and can provide an interim place to land while you shop for your next home. Some folks have friends and family that will take them in, it’s all in the name of getting creative. Having your cash in hand will make you more competitive and you will have a clear financial picture. Most things in life that are meaningful are hard. If it was easy, everyone would do it. Be bold, be courageous! Short-term discomfort for long-term gain is the focus with this strategy and after 2020 our resilience muscle seems to be a bit stronger, making this option more viable.

If you are excited about the equity you have grown and want to pair it with today’s low interest rates to obtain your next home, but have been fearful of how to do it all – I can help! These three options, along with great attention to detail, hand-holding, and careful planning have helped many people make these exciting transitions. It is my goal to help keep my clients informed and empower strong decisions. Please contact me if you would like further information on how this might work for you or someone you know.

 

4211 Alderwood Mall Blvd, Lynnwood

We are partnering with Confidential Data Disposal for our 10th year; providing you with a safe, eco-friendly way to reduce your paper trail and help prevent identity theft.

Bring your sensitive documents to be professionally destroyed on-site. Limit 10 file boxes per visitor.

We will also be collecting donations to benefit Concern for Neighbors food bank. Donations are not required, but are appreciated.
Hope to see you there!

**This is a Paper-Only event. No x-rays, electronics, recyclables, or any other materials.