Mortgage Rates are a must know!

Thinking of buying, selling or refinancing? People’s Bank Home Loan Center passed along today’s rates to us. Below is a chart showing the rates as of today June 21st.

 

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Thank you Sidney Stonecypher at People’s Bank Home Loan Center for the rates. If you have mortgage questions you can reach her at 360-650-5365!

3 Issues Facing Today’s Real Estate Market

3 Issues Facing Today’s Real Estate Market | MyKCM

Last week, the National Association of Real Estate Editors (NAREE) held their 52nd Annual Journalism Conference in Las Vegas, NV. Among the many highly anticipated sessions was one called “Top Ten Issues Affecting Real Estate™,” given by Joseph Nahas, Jr., Chair of the Counselors of Real Estate & Senior Vice President of Equus Capital Partners. 

The Counselors of Real Estate (CRE) “is an international organization of high profile property professionals which include principals of prominent real estate, financial, legal, and accounting firms as well as recognized leaders of government and academia.” 

Their annual “top 10” list spans any and all issues that could have an impact on the real estate market. This year, the list was broken up into “Current” and “Long-Term Issues.”

Today we’re going to focus on three of the five “Current” issues with a brief explanation of their impacts on the housing market today!

E-Commerce & Logistics

With promises of 2-day shipping no matter where you live, we are benefiting more now than ever before from the speed and ease-of-use of online retailers like Amazon. These e-retailers haven’t changed whether or not we buy certain items, but rather HOW we buy them!

Many traditional malls or big-box stores are being repurposed as warehouses or distribution centers for online retailers so that they can get their products out faster.

A Look to the Future: “Developers who are including experiences into their locations are the ones who will succeed. It’s about the experience and gaining something over just going to buy a product.”

Generational Change & Demographics

By now we’ve all heard that the millennial generation is the largest yet, just by sheer volume. The largest group of millennials turns 30 years-old in 2020. The average first-time homebuying age is between 30 and 32, depending on marital status. Real estate professionals will be inundated with more and more buyers as the years roll on. Nahas commented on this in his presentation, saying that,

“Too many developers have become dependent on making decisions based on baby boomer’s preferences.

The 75 million millennials are coming, and they will influence real estate and commerce even faster than the baby boomers in the 50s and 60s.”

Interest Rates & the Economy

The interest rate that you secure for your mortgage is a big factor in your monthly housing cost and in how much you ultimately pay for your home. According to Freddie Mac’s Primary Mortgage Market Survey, rates rose to 4.62% on a 30-year fixed rate loan last week.

The Federal Reserve also raised the federal funds rate for the second time this year. If unemployment continues to be at or near record lows, two more hikes are likely to come later this year.

Nahas added,

“Rising rates can be good and bad for the economy. Bad for borrowing money with additional costs, but good to control inflation and help grow the economy at a moderate pace.”

Bottom Line

If you are planning on buying and/or selling a home this year, let’s get together to help you navigate the conditions in your market and set you up for success. If you have any questions, give us a call at (888) 713-3056 or email us and Info@JohnsonTeamRealEstate.com.

Words from a Client of Johnson Team Real Estate

Marco + KEVIN

 

If you are looking for a real estate agent who will have your best interests at heart, look no further than The Johnson Team! Give us a call today at (888) 713-3056 or email us at Info@JohnsonTeamRealEstate.com.

Top 5 Reasons You Shouldn’t FSBO

Where did buyers find the home they actually purchased_

In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers.

Here are the top five reasons:

1. Exposure to Prospective Buyers

According to the 2017 Profile of Home Buyers and Sellers from NAR, last year 95% of buyers search online for a home. That is in comparison to only 15% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

2. Results Come from the Internet

Where did buyers find the home they actually purchased?

  • 49% on the internet
  • 31% from a Real Estate Agent
  • 7% from a yard sign
  • 1% from newspapers

The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

3. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale by Owner:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always find some problems with the house
  • The appraiser if there is a question of value

4. FSBOing Has Become More And More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

5. You Net More Money When Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

study by Collateral Analytics revealed that FSBOs don’t actually save anything, and in some cases, may be costing themselves more, by not listing with an agent. One of the main reasons for the price difference at the time of sale is:

“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”

If more buyers see a home, the greater the chances are that there could be a bidding war for the property. The study showed that the difference in price between comparable homes of size and location is currently at an average of 6% this year.

Why would you choose to list on your own and manage the entire transaction when you can hire an agent and not have to pay anything more?

Bottom Line

Before you decide to take on the challenges of selling your house on your own, let’s get together to discuss your needs. Give us a call at (888) 713-3056 or email us at Info@JohnsonTeamRealEstate.com.

How Many Homes Are For Sale?

Front #4Happy June! The market continues to be active with inventory running 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, June 15th, the pending ratio in Bellingham was 49%. 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 31%

The Ferndale pending ratio was 41%

The Lynden pending ratio was 52%

The Sudden Valley pending ratio was 58%

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, Selling, or Refinancing?

Mortgage rates are an important factor in many aspects of buying, selling, or refinancing a home. In order to be an informed home buyer, the rates are a must know! And here are the most current rates as of June 14th.

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For more details, or a custom home loan quote, contact Sidney Stonecypher at People’s Bank at 360-676-4597.

3 tips to keep hackers out of your smart devices

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There are smart speakers, thermostats, appliances, security systems and virtual assistants (Amazon Alexa, Google Home). What makes them “smart” is the Internet—where hackers are.
Using basic Internet-scanning tools, hackers can grab device names, email addresses and other user data. Your musical tastes and home temperature preferences may not be important. But smart devices are usually on the same network as PCs and smartphones, giving hackers access to valuable data, such as social security numbers. Here’s how to stop them.
Update software. Patches often contain security updates. Software’s never perfect, so vulnerabilities need to be eliminated.
Monitor your network. Check security and access settings for every device on your home WiFi. Check that your router blocks inbound requests, and don’t let outside devices initiate connections. If you have to share files, use a free or low-cost cloud service, such as Dropbox or Google Drive.
Create a Guest network. This lets visitors access the Internet without compromising your networked devices.
Thanks Sidney Stonecypher at People’s Bank for these tips!

Western Washington University Move Out Madness

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Are you a Western Student getting read to move out of student housing or head “home” for the summer?

This year, just like the end of every other school year, The City of Bellingham and Western Washington University will partner together to sponsor the annual “WWU Move Out Madness.” This event supports several neighborhoods that have high amounts of student residents with a collection points for their landfill, recyclables, and donation items at no charge!

For more information, visit the WWU website to learn more!

 

 

When Is a Good Time to Rent? NOT NOW!

33134125 - mixed race excited military couple in front of new home showing off their house keys.

People often ask if now is a good time to buy a home, but nobody ever asks whether or not it’s a good time to rent. Regardless, we want to make certain that everyone understands that now is NOT a good time to rent.

The Census Bureau recently released their 2018 first quarter median rent numbers. According to their report, here is a graph showing rent increases from 1988 until today:

When Is a Good Time to Rent? Not Now! | MyKCM

As you can see, rents have steadily increased and are showing no signs of slowing down. If you are faced with making the decision of whether or not you should renew your lease, you might be pleasantly surprised at your ability to buy a home of your own instead.

Bottom Line

One way to protect yourself from rising rents is to lock in your housing expense by buying a home. If you are ready and willing to buy, let’s meet to determine if you are able to today! Don’t miss out, call The Johnson Team at (888) 713-3056 or email us at Info@JohnsonTeamRealEstate.com.

The Cost of Renting vs. Buying

The Cost of Renting vs. Buying [INFOGRAPHIC] | MyKCM

Some Highlights:

  • Historically, the choice between renting or buying a home has been a tough decision.
  • Looking at the percentage of income needed to rent a median-priced home today (28.8%) vs. the percentage needed to buy a median-priced home (17.1%), the choice becomes obvious.
  • Every market is different. Before you renew your lease again, find out if you can put your housing costs to work by buying this year! Give The Johnson Team a call at (888) 713 – 3056 or email us at Info@JohnsonTeamRealEstate.com.