Housing Supply Not Keeping Up with Population Increase

Housing Supply Not Keeping Up with Population Increase | MyKCM

Many buyers are wondering where to find houses for sale in today’s market. It’s a true dilemma. We see an increase in buyer demand, but the supply available for purchase isn’t keeping up.

The number of new housing permits issued prior to the great recession increased for 15 years until 2005 (from 1.12 million in 1990 to a pre-recession peak of 2.16 million in 2005). According to Apartment List,

From 1990 to 2005, the number of single-family permits issued more than doubled, while the number of multi-family permits grew by 49 percent.

Housing Supply Not Keeping Up with Population Increase | MyKCM

When the housing market crashed, the number of new homes permitted decreased to its lowest level in 2009 (see below):Since then, supply and demand have been out of balance when it comes to new construction. According to the same report,

Construction of single-family homes has recovered much more slowly — the number of single-family housing units permitted in 2018 was barely half the number permitted in 2005.”

Why is new construction so important?

As the U.S. population increases, there is also an increase in the need for new homes. Today, new construction is not keeping up with the increase in the nation’s population. The report continues:

“The total number of residential housing units permitted in 2018 was roughly the same as the number permitted in 1994, when the country’s population was 20 percent less than it is today.”

Essentially, the dip in home building coupled with the steadily increasing U.S. population means there is now a selling opportunity for homeowners willing to list their current houses.

Bottom Line

If you’re considering selling your home to move up, now is a great time to get a positive return on your investment in a market with high demand. Let’s get together to determine the specific options available for you and your family. Give The Johnson Team a call at (888) 713-3056 or email us at Info@JohnsonTeamRealEstate.com.

Sunday Bellingham Open House Cordata Neighborhood


Join Rich Johnson this Sunday, August 25th from 1pm – 3pm for an open house at 4704 Cordata Pkwy in Bellingham.

This immaculate home will impress you in every way. Special touches throughout include maple flooring, cherry cabinets, tile & designer colors. The back yard is fully fenced, professionally landscaped & provides a peaceful spot to escape & watch the world go by . The location is ideal as it’s served by hiking trails, Julianna Park & Cordata Park which will be Bellingham’s newest park. Nearby are a variety of dining & shopping experiences to include the new expanded Costco Store.

For more information, take a look at the virtual tour.

A Great Way to Increase Your Family’s Net Worth

A Great Way to Increase Your Family’s Net Worth | MyKCM

Every three years, the Federal Reserve conducts its Survey of Consumer Finances. Data is collected across all economic and social groups. The latest survey data covers 2013-2016.

The study revealed that the median net worth of a homeowner is $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).

These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter.

Owning a home is a great way to build family wealth.

As we’ve said before, simply put, homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth by increasing the equity in your home.

That is why Gallup reported Americans picked real estate as the best long-term investment for the sixth year in a row. According to this year’s results, 35% of Americans chose real estate. Stocks followed at 27%, then savings accounts and gold.

Bottom Line

If you want to find out how you can use your monthly housing cost to increase your family’s wealth, let’s get together to help you through the process. Give The Johnson Team a call today at (888) 713-3056 or email us at Info@JohnsonTeamRealEstate.com.

The Whatcom County Market is Active!

Pending Ratios Template (3)If you have been following the local real estate market you know it’s active and inventory is low. If you are thinking of selling now is the time!

The number of real estate signs you see in yards can be deceiving as to the number of homes actually for sale WITHOUT offers on them. If you are seeing new signs around your neighborhood and curious if any of those homes already have offers on them, we have your answers!

Every week we keep track of how many homes are for sale around Bellingham and Whatcom County and how many of those homes have pending offers on them. Pending is the time frame between when an offer has been mutual accepted between the buyer’s and the seller’s of the home and when the title actually transfers hands. This give the buyer’s time to get the financing, do inspection, review the title reports and more.

As of Friday, August 16th, the pending ratio in Bellingham was 48%. Click the links to view a report of how many homes are for sale in each area by price range and how many of them are pending showing just how active certain sectors of the market are.

The Birch Bay Pending ratio was 30%

The Ferndale pending ratio was 41%

The Lynden pending ratio was 40%

The Sudden Valley pending ratio was 38%

If you are thinking of selling your home or property, Johnson Team Real Estate would love to help! We are here to help you will all your real estate needs! You can reach us toll free at 1-888-713-3056 or email us at Info@JohnsonTeamRealEstate.com

Buying a Home: Do You Know the Lingo?

Buying a Home? Do You Know the Lingo? [INFOGRAPHIC] | MyKCM
  • Buying a home can be intimidating if you’re not familiar with the terms used throughout the process.
  • To point you in the right direction, here’s a list of some of the most common language you’ll hear when buying a home.
  • The best way to ensure your home-buying process is a positive one is to find a real estate professional who will guide you through every aspect of the transaction with ‘the heart of a teacher.’ Give The Johnson Team a call today at (888) 713-3056 or email us at Info@JohnsonTeamRealEstate.com.
  • Sellers: Now Is the Time to Buy!

    Falling interest rates coupled with increasing inventory create the ideal market to find the home of your dreams. There’s no time like the present to move up! Let’s get together to discuss your options. Give The Johnson Team a call today at (888) 713-3056 or email us at Info@JohnsonTeamRealEstate.com.

    Busting the Myth About a Housing Affordability Crisis

    Busting the Myth About a Housing Affordability Crisis | MyKCM

    It seems you can’t find a headline with the term “housing affordability” without the word “crisis” attached to it. That’s because some only consider the fact that residential real estate prices have continued to appreciate. However, we must realize it’s not just the price of a home that matters, but the price relative to a purchaser’s buying power.

    Homes, in most cases, are purchased with a mortgage. The current mortgage rate is a major component of the affordability equation. Mortgage rates have fallen by over a full percentage point since December 2018. Another major piece of the affordability equation is a buyer’s income. The median family income has risen by 3.5% over the last year.

    Let’s look at three different reports issued recently that reveal how homes are very affordable in comparison to historic numbers, and how they have become even more affordable over the past several months.

    1. National Association of Realtors’ (NAR) Housing Affordability Index:

    Here is a graph showing the index going all the way back to 1990. The higher the column, the more affordable homes are:Busting the Myth About a Housing Affordability Crisis | MyKCMWe can see that homes are less affordable today (the green bar) than they were during the housing crash (the red bars). This was when distressed properties like foreclosures and short sales saturated the market and sold for massive discounts. However, homes are more affordable today than at any time from 1990 to 2008.

    NAR’s report on the index also shows that the percentage of a family’s income needed for a mortgage payment (16.5%) is dramatically lower than last year and is well below the historic norm of 21.2%.Busting the Myth About a Housing Affordability Crisis | MyKCM

    2. Black Knight’s Mortgage Monitor:

    This report reveals that as a result of falling interest rates and slowing home price appreciation, affordability is the best it has been in 18 months. Black Knight Data & Analytics President Ben Graboske explains:

    “For much of the past year and a half, affordability pressures have put a damper on home price appreciation. Indeed, the rate of annual home price growth has declined for 15 consecutive months. More recently, declining 30-year fixed interest rates have helped to ease some of those pressures, improving the affordability outlook considerably…And despite the average home price rising by more than $12K since November, today’s lower fixed interest rates have worked out to a $108 lower monthly payment…Lower rates have also increased the buying power for prospective homebuyers looking to purchase the average-priced home by the equivalent of 15%.”

    3. First American’s Real House Price Index:

    While affordability has increased recently, Mark Fleming, First American’s Chief Economist explains:

    “If the 30-year, fixed-rate mortgage declines just a fraction more, consumer house-buying power would reach its highest level in almost 20 years.”

    Fleming goes on to say that the gains in affordability are about mortgage rates and the increase in family incomes:

    “Average nominal household incomes are nearly 57 percent higher today than in January 2000. Record income levels combined with mortgage rates near historic lows mean consumer house-buying power is more than 150 percent greater today than it was in January 2000.”

    Bottom Line

    If you’ve put off the purchase of a first home or a move-up home because of affordability concerns, you should take another look at your ability to purchase in today’s market. You may be pleasantly surprised! Give The Johnson Team a call today at (888) 713-3056 or email us at Info@JohnsonTeamRealEstate.com.

    Saturday Expansive Lummi Island Property Open House

    OPEN HOUSE

    Join Rich Johnson for an open house this Saturday from 11am – 3pm at 1471 Seacrest Dr on Lummi Island.

    Cozy up to the beach fire on your own 420+ feet of private waterfront on over 4 acres.

    Peace, quiet, total seclusion & an expansive view of water & mountains could be yours in this unique home & property. This custom designed & built home overlooks a private cove, Haro Strait, Mt Baker & Twin Sisters. The floor plan is open, airy, well lit & inviting with expansive windows keeping you in touch with the beauty around you. A private path provides access to either the beach of Sun-Rise Cove with your boat anchored in front or up secret trails to explore.

    For more information, visit our website.

    American Confidence in Housing at an All-Time High

    American Confidence in Housing at an All Time High

    Fannie Mae just released the July edition of their Home Purchase Sentiment Index (HPSI). The HPSI takes information regarding consumers’ confidence in the real estate market from Fannie Mae’s National Housing Survey and condenses it into a single number. Therefore, the HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions.

    Great News! The index reached its highest level since Fannie Mae began their survey. Breaking it down, the report revealed:

    • The share of Americans who say it is a good time to buy a home increased from the same time last year.
    • The share of those who say it is a good time to sell a home increased from the same time last year.
    • The share of Americans who say they are not concerned about losing their job over the next 12 months increased dramatically (16 percentage points) from the same time last year.
    • The share of Americans who say mortgage rates will go down over the next 12 months increased dramatically (24 percentage points) from the same time last year.

    The day after the index was released, Freddie Mac also announced the 30-year fixed-rate mortgage rate fell to its lowest level in three years.

    Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae explained the uptick in the index:

    “Consumer job confidence and favorable mortgage rate expectations lifted the HPSI to a new survey high in July, despite ongoing housing supply and affordability challenges. Consumers appear to have shaken off a winter slump in sentiment amid strong income gains. Therefore, sentiment is positioned to take advantage of any supply that comes to market, particularly in the affordable category.”

    Bottom Line

    Consumers are feeling good about the real estate market. Since Americans are not worried about their jobs, see mortgage rates near an all-time low, and believe it is a good time to buy, the housing market will remain strong for the rest of the year. If you need anything, give The Johnson Team a call today at (888) 713-3056 or email us at Info@JohnsonTeamRealEstate.com.

    Bellingham Neighborhood Real Estate Search

    Searching for real estate in a specific Bellingham Neighborhood?

    Johnson Team Real Estate offers an interactive visual real estate search showing all homes currently for sale in each neighborhood. On our search maps  you can click on the real estate sign to view specific listing information, view a virtual tour or schedule a showing. Click our sample map below to visit a specific neighborhood real estate search map.

    The City of Bellingham is home to 23 different neighborhoods. All of Bellingham’s Neighborhoods are unique in character and design, click on the different Neighborhood links to learn more about what Bellingham’s Neighborhoods have to offer.

    Click a neighborhood name below to see an interactive map of real estate currently available in the neighborhood as well as neighborhood information and links.

    Alabama Hill Neighborhood
    Birchwood Neighborhood
    Bellingham’s Central Business District
    Columbia Neighborhood
    Cornwall Park Neighborhood
    Edgemoor Neighborhood
    Fairhaven Historic District
    Guide Meridian Neighborhood
    Happy Valley Neighborhood
    Lettered Streets Neighborhood
    Meridian Neighborhood
    Mt Baker Neighborhood
    Puget Neighborhood
    Roosevelt Neighborhood
    Samish Neighborhood
    Sehome Neighborhood
    Silver Beach Neighborhood
    South Neighborhood
    South Hill Neighborhood
    Sunny Land Neighborhood
    Whatcom Falls Neighborhood
    WWU Neighborhood
    York Neighborhood