I found this very interesting article on affordability of housing now compared to historical affordability of housing. Interest rates are really the key here. The Fed is charging 0% so we have to assume that there’s not a lot further they can go down.
Newsletter
Final Food for Thought
As troublesome as these times are, there is hope and reason to smile. We’ve seen unprecedented kindness pour out of the community—from neighbors helping neighbors to increased donations to local charities helping people through the crisis. Local restaurants, from those at the Bellevue Collection to the renowned Herb Garden and many others, are providing meals to first-line workers in healthcare, fire and safety and feeding children and families who no longer have the free lunches the schools provided. Every day the news outlets report on random acts of kindness happening all over our region. I am proud of the people in Puget Sound and the Eastside and how they have responded. This will help build resiliency in our midst so we can overcome whatever we will have to face. In the meantime, stay safe and stay healthy.
ARE YOU LOOKING TO REAL ESTATE FOR INVESTMENT?
Even in this hot market, I still work with many people looking to invest in real estate for long-term income. If you are among them, you might want to consider a visit to BloggerPockets.com. I’ve found this information to be very helpful and on target. Also, reach out to me, I provide many extra tools to those looking for investment opportunities—whether it’s commercial property, residential or a fixer/flipper.
UNDERSTANDING HOW OUR REAL ESTATE BECAME SO PRICEY
425 Business magazine has a great article out this month highlighting why we are in such a housing crunch. For one, in King County we’ve added 3.33 jobs for every unit of housing built. Also, we are building only .65 housing units for every new person coming into the rental and housing market. People are also having to go further out to afford purchasing a home, adding to our commutes. Read more about King and Snohomish housing shortage here.
EXPERT WEIGH IN ON PREDICTIONS FOR 2020 REAL ESTATE MARKET
At the risk of sounding like a broken record, the experts are in agreement on where the real estate market in heading this year. In short, more buyers means more competition, until we have enough sellers. No one can really predict the future, but it’s a good year to be a seller. Some worry about finding their next home, but as your equity grows and low interest rates continue, you will be in a stronger position to get the home of your dreams. Read the predictions from Redfin, Zillow and other experts in this Seattle PI story.
NORTHWEST MULTIPLE LISTING SERVICE
Home buyers in Western Washington “hit the ground running” in January
“All indicators point to a vigorous spring market,” suggested broker Dean Rebhuhn when reviewing just-released statistics from Northwest Multiple Listing Service. The report covering 23 counties shows pending sales outgained new listings, record-low inventory that’s down 33% from a year ago, and double-digit price increases.
Matthew Gardner, chief economist at Windermere Real Estate (the largest regional real estate company in the Western U.S.), noted home buyers did not take very much time off during the holidays. “They hit the ground running as soon as the new year kicked off.” (Windermere has 140 offices in the NWMLS market area.)
DON’T BE DISCOURAGED
I don’t want buyers to be discouraged, there are still homes you can find, just bring patience and compromise to the table. You may have to do a bit of updating, or add the spa bath you want, but you can still find a good home at a good price with a well-positioned offer. Reach out to me if you want to know how to do this. Make this the year to make it happen!
Amid falling inventory, brokers predict a return to 2017 ‘hotness’ in Puget Sound housing markets. See what’s happening near you.
By Katherine Khashimova Long Seattle Times business reporter
If current trends hold, spring may bring a return to the housing market frenzy of two years ago, brokers say, spelling bad news for affordability around Puget Sound.
In December, buyers had fewer homes to choose from in King County than any time since February 2018 — back in the days of bidding wars, weeklong listings and double-digit price growth.
To some extent, seasonal factors are at play: Housing markets generally contract in December.
What makes this more than a seasonal trend is how quickly buyers are snapping up those homes that are on the market, said J. Lennox Scott, CEO of John L. Scott Real Estate. Historically low mortgage rates and predictions of job growth in 2020 appear to be driving demand.
Especially among homes priced under $1 million, which make up 81% of sales, “we’re at what I call multiple-offer everything. We’ve entered an instant-response market,” Scott said. “We’re approaching the level of hotness we were at in late 2017.”
Price growth isn’t quite at the eye-boggling levels of 2017 and early 2018, but spurred by a crunch in inventory, it’s higher than winter buyers might expect.
Eastside Growth Forecast 2020
What does the next year hold for the Eastside? We spoke with local experts across several sectors to find out.
Another banner year for the region has brought tremendous prosperity across a breadth of industries, a wealth of new jobs, flourishing tourism, and the welcoming of several large businesses into our cities.
So, how is the Eastside poised to begin a new decade? Will this growth continue? To find out, we ditched the crystal ball and talked to Eastside movers and shakers across myriad industries to find out what they believe the year ahead holds.
Seattle-area home prices higher than last year for third month in a row
After a spring decline, home prices in the Puget Sound area appear to be once more on the upswing.
For the third month in a row, home prices in October were higher than they were 12 months ago, according to the latest numbers from the S&P CoreLogic Case-Shiller Home Price Index, which lags by two months. Compared to the previous month, prices rose by a seasonally adjusted 0.7%.
In a big change from a general trend of declining growth over the past 18 months, year-over-year price growth has accelerated since July. The 2.5% year-over-year increase in home prices in King, Pierce and Snohomish counties is the largest year-over-year jump in home prices since February.
Still, home prices around these parts are growing slower than the national average.