Are We Feeling the Shockwaves of Seattle’s Market?

The headline on the front page of The Seattle Times this morning is “Home Prices Jump in South Seattle”.  The article goes on to say the City’s median house price is now nearly $820,000. We feel the shock waves of the Seattle market here in Whatcom County as more Seattleites search up & down the I-5 corridor to find an affordable home.

More often than not, one hears “how can local folks afford to buy a home here”? Many times the buyers are people displaced by the high prices of the Seattle market & searching out a place for their family. Terms we are hearing now include “Pressure Cooker Market”, “Surging Prices”, “Instant Response Market” rather than a “Quick Action Market”.  No matter what terms you prefer to use, know that our local real estate market will continue to rise, inventory will be in short supply & while interest rates will continue to rise, it’s doubtful to me that it will do much to slow things down.

Here’s a great visual on the number of homes available overtime:

April 2018 Snap Shot

If you or your friends or family have questions about the market, Mike & I would be more than  happy to help you make some sense out of it.  Give us a call at 360 303 2734.

 

Whether You Rent or Buy, Either Way You’re Paying a Mortgage!

Whether You Rent or Buy, Either Way You're Paying a Mortgage! | MyKCM

There are some people who have not purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize, however, that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As Entrepreneur Magazine, a premier source for small business, explained in their article, “12 Practical Steps to Getting Rich”:

“While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.”

Christina Boyle, Senior Vice President and head of the Single-Family Sales & Relationship Management organization at Freddie Mac, explains another benefit of securing a mortgage as opposed to paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person building that equity.

Interest rates are still at historic lows, making it one of the best times to secure a mortgage and make a move into your dream home. Freddie Mac’s latest report shows that rates across the country were at 4.22% last week.

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy. Give us a call at (888) 713-3056 or email us at Info@JohnsonTeamRealEstate.com.

New Pending Ratios!

Homes by EmailThe 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, February 2nd, the pending ratio in Bellingham was 50%. 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 42%

The Ferndale pending ratio was 32%

The Lynden pending ratio was 42%

The Sudden Valley pending ratio was 61%

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

If You’re Considering Selling, ACT NOW!!

If You’re Considering Selling, ACT NOW!! | MyKCM

Definitely an aggressive headline. However, as the final data on the 2017 housing market rolls in, we can definitely say one thing: If you are considering selling, IT IS TIME TO LIST YOUR HOME!

How did we finish 2017?

  1. New-home sales were at their highest level in a decade.
  2. Sales of previously owned homes were at their highest level in more than a decade.
  3. Starts of single-family homes were their strongest in a decade and applications to build such properties advanced to the fastest pace since August 2007.

And Bloomberg Business just reported:

“America’s housing market is gearing up for a robust year ahead. Builders are more optimistic, demand is strong and lean inventory is keeping prices elevated.”

And the National Association of Realtors revealed that buyer traffic is stronger this winter than it was during the spring buying season last year.

The only challenge to the market is a severe lack of inventory. A balanced market would have a full six-month supply of homes for sale. Currently, there is less than a four-month supply of inventory. This represents a decrease in supply of 9.7% from the same time last year.

Bottom Line

With demand increasing and supply dropping, this may be the perfect time to get the best price for your home. Let’s get together to see whether that is the case in your neighborhood. Call us at (888) 713-3056 or email us at Info@JohnsonTeamRealEstate.com.

Where Did Americans Move in 2017?

Where Did Americans Move in 2017? [INFOGRAPHIC] | MyKCM

Some Highlights:

  • Atlas Van Lines recently released the results of their annual Migration Patterns Survey in which they tracked their customer’s movement from state-to-state over the course of 2017.
  • Idaho held on to the top spot of ‘high inbound’ states for the 2nd year in a row followed by Washington.
  • The ‘outbound’ states seem to draw a line straight across the country from Connecticut to Wyoming.
  • If you have any questions on the market, give us a call at (888) 713-3056 or email us at Info@JohnsonTeamRealEstate.com.

How Many Homes Have Pending Offers?

Homes by EmailThe 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, January 19th, 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 38%

The Ferndale pending ratio was 28%

The Lynden pending ratio was 36%

The Sudden Valley pending ratio was 56%

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

Bellingham Real Estate Market Update & Happenings!

Market Snap Shot Jan 18

As we look into our real estate crystal ball, the question always is “so where have we been & where are we going?”

The “where have we been part” is pretty simple as it’s already logged into the history books. Closed Bellingham residential sales for 2017 were 1042 homes as opposed to 1145 homes in 2016. The median sales price for a home in Bellingham in 2016 was $363,465 as opposed to $393,249 in 2017. We are started the year off with approximately 111 active listings with an additional 79 homes pending as opposed to 193 active listings a year ago with, at that time, 86 pending listings.

So with that in the rear view mirror, what does the road ahead look like & what are some of the chuck holes in the way that could throw a monkey wrench in things?

First, we have a new Tax Code.  As it was initially stated, it had all of the real estate pundits up in arms, but as it went through the Congressional “Grinder” it was trimmed down to the point where it may not have the negative impact people initially felt.  Now in the interest of full disclosure, even though I graduated fairly high in my class at the U of W (sorry Cougar fans), accounting was not necessarily my bailiwick.  Even if it was, I’d ask you to consult with your personal accountant or financial planner to see how it impacts you personally.

So “Where are we headed in 2018”? 

A local lender posts a current 30 year fixed rate of 4.125%.  All indications are that rates will increase in 2018 with Freddie Mac projections to 4.6 in the 4th quarter of 2018.

Population data indicates that between 2010 and 2016, Whatcom County has seen a significant increase of people in their 60s and 70s. During the same time there’s been a decrease in the number of people in their 20s and 40s

A recent article in the Bellingham Herald quoted Zillow Economists as predicting a 3.1% increase in Bellingham home prices over the next 12 months, saying that the hottest neighborhoods ie: Lettered Streets, will have a 12 month increase of 4%, the York District an increase of 3.8% & the Columbia District of 3.7%.

As of today’s date, there are 87 residential homes pending in Bellingham.  Of this number, 34 pended within 5 days or less of the list date.  While we won’t know until the homes close, my guess is that with the quick pending dates, the probability is that the homes sold in excess of their list prices.  In the past 30 days, 69 residential homes sold.  Of that number, 27 sold either at or greater than their list price.

With that ground work, from what I hear on the streets, in my open houses & see statistically, I think, in Bellingham,

  • Inventory will remain at historically low levels.

 

  • While rising interest rates will make it more difficult for entry level buyers to find homes, it will have less or no effect on an older population that appears to be moving into the area & many times buying without the need of a home loan.

 

  • As climate change affects other parts of the US, our weather & lifestyle in the Pacific North West will be more appealing to others, causing them to move in increasing numbers.

 

  • Demand for Bellingham real estate will continue to outstrip supply resulting in increased prices. Quite frankly, I think the increases we experience will outstrip those projected by Zillow’s forecasters

In a nut shell, prepare for more of the same from our fast & furious real estate market.

If you have questions about the market in general or about your property specifically, Mike, Fawn & I would be happy to help you any way that we can.

 

Get the Facts on the Bellingham Real Estate Market!

As I talk to people about real estate, I am increasingly told they feel things are cooling off.  When I ask why, the common replies are the frequency of price reduction signs, flipped sales, increased market times & listings going beyond the “offer review date”.  To get a better perspective of the “State of the Market”, let’s take a look at the following statistics for our local market.

 

Whatcom County has a 2.83 month supply of inventory.  Remember that a healthy real estate market has 4 to 6 months.  There are currently a total of 910 active residential & condos listings.

The average sale price of single family and condo sales closed in Whatcom County has increased almost $16,000 with the median price increasing $44,900 over the past 12 months A local lender’s interest rate as of 10.19.2017 for a 30 year fixed rate loan with 5% down is 3.875%. That same loan with the same lender was 3.75% 8.03.2017.  Rates are expected to rise in the coming months to more than 4%.

So let’s drill down further to see some specifics:

-A 5 bedroom, 3 bath, 1576 sq ft fixer built in 1900  on Jaeger St just closed with a full price offer @ $375,000.  It was such a fixer the agent didn’t even include interior photos of the home in the listing.

-Today there are 18 homes / condos that have pended after 5 or less days on the market.  The average market time for all pendings is 35 days. In the last 30 days, there have been 28 homes / condos in Bellingham that have closed within 5 days or less of the home being listed.  Of the 106 homes / condos that sold in Bellingham over the past 30 days, 29 sold in excess of their list price & 16 sold at the list price

-I recently talked to an agent who told me she has written offers recently for 5 different buyers & lost out on all five because there were multiple offers.

So to bring this all together:

There are certainly homes that languish on the market – there always has been & always will be.

Inventory is short to the extreme with no end in sight

Prices will continue to rise.  There is no reason to believe, in my opinion, that demand will slack off.  In fact as the Seattle market continues to heat up, buyers will be forced to look up & down the I-5 corridor to find affordable housing.  I just sold a home to a 1st time buyer in Ferndale.  He commutes to Seattle every day to work.  We will see more of that.

Interest rates are still good  but are increasing.

Here’s a great visual to break down inventory numbers over the past several years:

Market Snap Shot Oct. 17

If you or your friends have questions about real estate, Mike & I would be happy to help.  As many of you know, we have been licensed for years, are committed to helping our clients make good decisions & are not afraid to put in our time – we usually are the 1st ones at the office & the last ones to leave. If that’s the kind of commitment you want for yourselves or want to refer to your friends, please pass our names on.  We are the guys that turn the lights on in the morning & off in the evening.

 

The Current Rates!

If you are buying, selling, or refinancing, the current mortgage rates are very important. You can see below what the current rates are as of Thursday, November 2nd.

 

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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

Buying, Selling, or Refinancing? Check The Rates Here!

If you are buying, selling, or refinancing, the current mortgage rates are very important. You can see below what the current rates are as of Thursday, October 12th.

rates12

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!