The market is balancing out, but it isn’t a buyer’s market yet.

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We just got the latest statistics from the August market, and today, I want to update you on what you can expect this September. In August, we had some interesting changes in the market for the first time since the beginning of this year. For the first time since the market started to shift, we saw a decrease in inventory.

We are also seeing a continued increase in the days on the market. At the beginning of this year, we were around 10 days on market on average. Now we're seeing a jump up to 22 days on market in both Snohomish and King Counties.

As we head into September, interest rates have started to go up again. I mentioned in my last market update video that we had peaked in June and saw stabilization in the low 5% range. Well, just this last week the Federal Reserve announced that another rate hike is coming, and we've seen that interest rates have jumped yet again. It'll be interesting to follow that and see if they come down at all or if they stabilize at that level.

Demand might fall a little bit more. Luckily, with supply coming down, those will hopefully balance each other out. However, sellers will need to be aggressive in getting their homes sold and ensure they're not chasing the market down. They need to be priced ahead of the market and be aggressive.

With all that being said, we still haven’t reached a strong buyers market at this point. This sounds favorable for buyers because recently things have been so unfavorable for sellers, but we still have a good amount of scarcity and low inventory levels. We still haven't surpassed where we were in 2019, which was still a seller's market where prices were rising. Ultimately, it's going to come down to the specifics of your situation because it's a very localized market.

There are still areas that also are very competitive and there are areas that are starting to cool off more. So feel free to reach out to me via phone or email to discuss the specifics of your situation and the area and type of property that you're looking at. Have a great day.

How the recent changes have affected our real estate market.

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Where is our market heading? Let’s take a look at the recent data and find out. 

Our average sales prices have decreased every month since the peak in April, but they are still higher than last year. In King County, the average sales price is up 3% year over year at a little over $1 million, while in Snohomish County, it's up 12% at just above $750,000.

In both King and Snohomish Counties, we’ve seen a decrease in the number of new listings. The growth of inventory is starting to level off somewhat. There might not be as much competition for sellers soon, and buyers may see fewer options than in recent months.

Interest rates have also had a huge impact on our market. As they’ve climbed, we’ve seen a significant drop in demand. In June, interest rates peaked at 5.7%, but recently they’ve stabilized around the 5.2% range. Homes are more affordable than they were in June, and people are starting to get comfortable with our more stable rates. Hopefully we will see more buyers enter the market, but we are headed toward a slower part of the year.

Overall, it looks like the market is changing in a healthy way. If you have any questions about why our market is shifting and where things are going, feel free to call or email me. I’d love to help.

Here are three easy methods to deal with rising interest rates.

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“I want to purchase a home, but how can I deal with higher interest rates?” Many clients have reached out to ask me this question recently. In case you don’t know, the Federal Reserve recently raised rates by 75 basis points—the largest increase since 1994. Mortgage rates have already responded, and they’re likely to increase further throughout the year. Rates are still low historically, but there’s no denying that recent increases make it more difficult to purchase a home. If you’re looking to buy, what can you do? 

Fortunately, there are tons of creative ways to adjust your strategy and prepare for higher rates, and I want to share three of them with you today:

1. Improve your credit. You may think your credit score is already as good as it can be, but there is always room for improvement. Start by paying off your debt little by little. This will lower your debt-to-income ratio, which is what lenders use to determine your creditworthiness. You can also save up for a bigger down payment to improve your credit and lower your rate. Talk with your lender as soon as possible to get started.

2. Lock in your mortgage rate when it makes sense. If your lender is offering you a good rate, consider locking it in. Rates are expected to continue rising to combat inflation, but you won’t have to worry about that if your rate is locked in. Remember that you can only lock your rate for one to two months so you need to find a home in that period.

3. Pay mortgage points at closing. Also known as “discount points,” mortgage points are fees you can pay to lower your interest rate. One point typically costs 1% of your loan, so a point on a $700,000 mortgage would cost $7,000. This would save you hundreds of dollars per month in mortgage payments. Some people opt not to do this in the hope that rates will drop so they can refinance.

There are a lot of strategies to creatively deal with rising interest rates. If you have any questions about interest rates or purchasing a home, please call or email me. I am always willing to help!

Three tips to prep your home for the market and sell for top dollar.

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As we shift into a bit more of a buyers' market, it's more important than ever to prepare your home before you sell. Today I'll share my best three tips to transform your home into an attractive property that will make buyers want to pay top dollar:

1. Clean up your curb appeal. Landscaping your property's exterior can go a long way. Trim the bushes and shrubs and maybe add some fresh mulch to make it look clean and crisp. Check for peeling paint and rotting wood, and do repairs if needed. All this will improve your home's curb appeal drastically.

2. Present the interior in the best way possible. When I get ready to list a property, I bring out an interior designer to help showcase the beauty of the home's interior. Other factors such as improving the carpet or paint can help you achieve the best possible presentation.

3. Make sure everything is in good working condition. You have to service the furnace ahead of time, check for signs of water damage, make sure the crawl spaces are clean, and maybe even get a pre-inspection so that buyers won't have any reason to return to the negotiating table.

Show the buyer that you have a great home and follow through by delivering a fantastic product. Every house is unique and will face challenges depending on the situation. If you need more help preparing your home for the market or have any real estate questions, don't hesitate to call or email me. I'll be happy to help!

Three key factors can help you understand our uncertain market.

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These are uncertain times for the real estate market, and if you’re like most people, you’re wondering what you should do. Some sources say we’re in a housing bubble, while others say we’re not. Today I want to clear up some of that uncertainty and talk about three key factors that will help you understand what’s happening in our market:

1. Home prices don’t usually fall during recessions. Home prices fell across the nation in 2008 because the housing market was one of the causes behind the recession.

2. This market is different from the one in 2008. In 2008, we had 19,000 homes available in King County and 8,800 properties for sale in Snohomish County. Today, we only have 3,400 homes in King County and 1,400 homes in Snohomish County. We had five to six times more inventory in 2008 than we have today, and interest rates were about the same. 

3. The Seattle market is one of the strongest in the country. We have one of the strongest economies and the highest rates of job growth in the U.S., and home builders simply haven’t kept up with the demand in our market. 

No one can predict the future, but over the long term, real estate is still a great investment. If you want to sell your home, it is still a strong seller’s market, even if it is cooling off a bit. 

Call or email me if you want to talk more about your specific situation. I’d love to help.

Rising rates have started to balance out our real estate market again.

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I get a lot of questions from homeowners and prospective buyers about what's happening in our area, if sellers should wait to sell their homes until the market goes up, and if buyers should wait for a correction. The answer depends on your situation. Today I'll explain what's happening in the market and tell you where I think we're heading.

We’re still in a seller's market, but it’s getting better for buyers. We're finally getting some inventory relief since interest rates have risen. We have just over one month of inventory in both King and Snohomish Counties, compared to the 0.78 months of supply that we had earlier in the year.

Rising interest rates have slowed demand so there are fewer buyers than earlier this year. That means that there are more opportunities for buyers. Our current rates are still historically low, so it's a good time for buyers to secure financing on a property and be more aggressive in their negotiations. Sellers must present their houses in the best possible light to attract buyers.

If you have any questions, don’t hesitate to reach out to me by phone or email. I look forward to hearing from you.

Here’s what you need to know about seller’s disclosures in Washington.

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Most states require some kind of seller’s disclosure during a real estate transaction, but the requirements vary by state. Today I’m going to focus on what’s required here in Washington state.

The entire point of the disclosure is to provide transparency and allow the seller to disclose things that are going to affect the value of a property. Any material facts that a seller is aware of must be disclosed. 

There are certain cases where a seller is to be exempt from making disclosures. In the case of a foreclosure, an estate sale, or a transfer between family members, the seller is exempt from making most disclosures.

Even when the seller is exempt from making them, they’re still required to disclose any material facts about the home related to environmental impacts. This could include lead-based paint, asbestos, standing water, flood zones, underground oil tanks, and more. 

If the property doesn't qualify for an exemption and the buyer has not waived their right to receive the seller disclosure form, sellers are required to disclose any known material defect in the property. Whether it’s a leaky sink or a small hole, it’s best to disclose as much as possible and be transparent. The seller’s disclosure is the main catalyst of lawsuits in the real estate industry. 

When you’re in the process of selling, your agent should be there to guide you through exactly what to disclose so that you’re fully protected in the transaction. If you have any questions about disclosures or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Three reasons our real estate market is not in a bubble in 2022.

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Are we in a housing bubble? This question is causing plenty of conversation right now, and some people are worried we’re heading toward a housing crash like we had back in 2007. Many buyers and sellers think our current market is very similar to the one we had back then because of our high home prices. However, three main factors make our present market very different from that of 2007:

1. Real estate bubbles are rare. The 2007 housing bubble was brought about by a series of events and decisions that just wouldn’t happen these days. Lending standards were relaxed, and adjustable-rate mortgages became extremely popular. Homeowners ended up getting risky mortgages and had almost no equity in their homes. Once the market fell, their loans were worth far more than the houses themselves, so many people were forced to sell, which caused a massive amount of inventory to hit the market in a short period. Nowadays, most homeowners are in very good equity positions, and adjustable-rate mortgages are less common.

2. New construction lagged behind. They’ve been focusing on building mostly higher-priced houses and much fewer starter homes. So it’s likely to take years before supply and demand balance out again. 

3. Buyers are well qualified now. Today, buyers are either paying with cash or are well qualified for their financing, which means they’ll be capable of holding on to their homes until they’re in a great equity position to sell. 

Due to these factors, we’re not in a real estate bubble. If you have any questions, feel free to reach out to me via phone or my website. I’d love to chat about this market, how it differs from 2007, or anything else concerning real estate.

Three questions that can help you decide whether to buy or sell first

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In today’s real estate market, low inventory and high demand are dominating the conversation. It’s easy to sell, but it’s much harder to buy. Many homeowners are in a position where they need to complete both transactions in a short period. Deciding which one to do first comes down to several factors. Each route comes with pros and cons, but the right option for you depends on your particular situation.

If you need to sell your home and buy a new one, here are three key questions that you should consider before starting the process:

1. Can you afford two mortgages? If possible, most people choose the buy first, then sell option. However, qualifying for two mortgages at once is difficult and can add a lot of stress to your situation. If you can carry both payments for a few months, you’ll have plenty of time to find a new home while also preparing your current property to sell for top dollar.

2. What type of home are you buying? If you have a specific neighborhood or school district that you’re targeting, you can’t always afford to sell first from a timing perspective. You might need to make a contingent offer, use a bridge loan, or take out a home equity line of credit. It might be worth it to secure your dream home. If you don’t have a super-specific wish list for your next home, selling first might make more sense for a multitude of reasons.

3. Do you want to move twice? Most people don’t, but you might not have a choice. If you need the money from your home sale to fund your subsequent purchase, you may have to find temporary housing while you search for your next property. With rent on the rise due to inflation, that’s not always the wisest move. On the other hand, depending on how high demand is in your specific price range, you may be able to negotiate a rent-back agreement with the buyer who purchases your home and avoid the dreaded double move.

We’ve helped many clients in this situation, and we’d be happy to help you too. There is more than one way to sell before you buy and vice versa. 

If you have any questions about your specific situation or real estate in general, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.

Read this if you’re thinking about listing your home to buy a new one. |

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How can you continue to live in your house once you put it on the market? Your home has always been your sanctuary, your one true personal space, but now it’s listed for sale and will soon get a ton of foot traffic. This can get very stressful and make it difficult to continue living your normal life in your house, especially if you have young children. So here are five tips to help you continue living your life in your for-sale home and keep things a bit less hectic:

1. Start packing now. Packing and storing boxes in the basement or garage is completely acceptable. We want to open up as much space as possible; we’re emphasizing floor space and square footage, so the larger it feels, the more money you’ll get.

2. Sell, donate, or throw it away. While you’re packing, try to get rid of things you don’t need. My recommendation is if you haven’t touched an item in a year and it’s not an heirloom or memory, it’s time to part with it. Try to at least donate items that are still in decent condition.

3. Get squeaky clean. A clean, cared-for house can net you $5,000 to $10,000 more for your sale. Shoot for five-star hotel perfection when cleaning, and focus particularly on bathrooms, the kitchen, windows, and floors. Make it sparkle!

4. Maintain privacy and safety. Buyers are going to be looking through closets and other areas people wouldn’t typically see. Ensure there’s nothing valuable or personal anywhere that they could find. If you’re unsure about an item, be on the safe side and lock it away somewhere secure (this includes medications).

5. Involve your kids. Nothing is better than having your kids be part of the selling process. The easiest way to get them involved is through games or a reward system so they’ll help you clean the house and prepare it for showings. You won’t believe how motivated kids can get when there’s something fun tied to a chore!

If you’d like to dig deeper into the tips above or have any questions about real estate in general, please shoot us an email or give us a call. We would love to help in any way we can.