Buying a Home this Year? Here Comes the Inventory!

The top reason homeowners cited for not listing their home for sale in 2018, was their belief that they would be unable to find a home to buy. After 3 years of declining inventory for sale, we’re finally starting to see more listings come to market! Let’s get together to chat about what this means for our market!

The Cost Across Time

The Cost Across Time [INFOGRAPHIC] | MyKCM

Some Highlights:

  • With interest rates still around 4.5%, now is a great time to look back at where rates have been over the last 40 years.
  • Rates are projected to climb to 5.0% by this time next year according to Freddie Mac.
  • The impact your interest rate makes on your monthly mortgage cost is significant!
  • Lock in a low rate now while you can!

How Much Has Your Home Increased in Value?

During 2018, home values increased nationally by over 5%! If you are planning on selling your home in 2019 you may be pleasantly surprised by home much your home has appreciated! Every market is different. Let’s get together if you are curious just how much your home has gone up in value!

The State of the Bellingham Real Estate Market

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The following details breakdown the figures from the chart above.  If you look at the 74 homes sold in the past 30 days, exactly half sold below the list price.  Of the remaining sales, 18 sold at the list price & 17 sold above the list price.   Of those selling for greater than the list price,

  • 5 sold at up to $2000 over the list price,
  • 4 sold between $2001 & $5000 over the list price
  • 2 sold between $5001 & $10,000 over the list price
  • 6 sold in excess of $10,000 over the list price

So the take away is this:

  • Inventory continues to remain low with no end in sight
  • Interest rates, while tipping the scales in Dec @ 5.249% for a 30 year fixed with 5% down are today 4.957% for the same loan
  • There is still competition among buyers as evidenced by the breakdown in the above sales, although it appears buyers are not willing to pay as much over list price as they have previously.
  • Moving into 2019, interest rates and inventory will determine where prices are headed.
  • Based on the number of people coming through my open houses & the number of buyers from out of area we will continue to see demand out stripping supply with prices continuing to increase, but at a slower rate

Certainly, if you or your friends have questions about the market in general or about a specific property, do not hesitate to give us a call.  We’d be happy to help any way that we can. We wish you the best in 2019!!

Your 365-Day Mortgage Rate Forecast

If you plan on buying a home this year, it doesn’t make sense to wait! Mortgage interest rates and home prices are both projected to increase significantly throughout 2019. Let’s get together to discuss your home buying plans today!

Call us at 1-888-713-3056 or email us at Info@JohnsonTeamRealEstate.com to learn more about mortgage rates in the Bellingham housing market!

End of The Year Pending Ratios

front house 1If 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, December 28th, the pending ratio in Bellingham was 36%. 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 18%

The Ferndale pending ratio was 35%

The Lynden pending ratio was 29%

The Sudden Valley pending ratio was 27%

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

How to Simply Increase Your Family Wealth by Paying for Housing

Everyone should realize that unless you are living somewhere rent-free, you are paying a mortgage – either yours or your landlord’s. Buying your own home provides you with a form of ‘forced savings’ that allows you to use your monthly housing costs to increase your family’s wealth.

Every month that you pay your mortgage, you are paying off a portion of the debt that you took on to purchase your home. Therefore, you own a little bit more of your home every month in the form of home equity. As your home’s value increases you also gain home equity.

Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts, and investment and market strategists and asks them to project how residential home prices will appreciate over the next five years for their Home Price Expectation Survey (HPES).

The latest data from their Q4 2018 Survey revealed that home prices are expected to round out the year 5.8% higher than they were in January. For the next 5 years, home values will appreciate by an average of nearly 3% a year.

This is still great news for homeowners!

For example, let’s assume a young couple purchases and closes on a $250,000 home in January. Simply through their home appreciating in value, those homeowners can build their home equity by nearly $40,000 over the next five years.

How to Simply Increase Your Family Wealth by Paying for Housing | MyKCM

Let’s look at the potential equity gained over the same period of time at some higher price points:

How to Simply Increase Your Family Wealth by Paying for Housing | MyKCM

In many cases, home equity is a large portion of a family’s overall net worth.

Bottom Line

If your plan for 2019 includes entering the housing market to purchase a home, whether it’s your first or your fifth, let’s get together to make your plan a reality!

Where Are Mortgage Rates Today?

Thinking of buying, selling, or refinancing?  The mortgage rates are a must know! Interest rates are the rates at which money can be borrowed for a set period of time. The higher the rate, the more money a borrower must pay in the form of interest on the loan. When mortgage rates are lower, this makes the purchasing of a home more affordable. Although the cost of mortgages is closely tied to the interest rate, the price at which homes are sold does not always appear in direct correlation.

Here are the mortgage rates as of today, December 6th!

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

How Many Homes Are For Sale In Whatcom County?

Keys HandIf 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, November 16th, the pending ratio in Bellingham was 36%. 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 22%

The Ferndale pending ratio was 27%

The Lynden pending ratio was 33%

The Sudden Valley pending ratio was 25%

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

Beginning of November Pending Ratios!

Bellingham Real Estate

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 Monday, November 5th, the pending ratio in Bellingham was 38%. 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 27%

The Ferndale pending ratio was 29%

The Lynden pending ratio was 29%

The Sudden Valley pending ratio was 36%

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