What Housing Bubble?

Despite higher mortgage rates, home prices really haven't come down in most markets and some people are still talking about a housing bubble. 🤷‍♀️

The reality though is that WE ARE NOT IN A HOUSING BUBBLE.❌

Here are 3 reasons that this market is totally different than the housing bubble we experienced a little over a decade ago...

🏡Housing supply is extremely limited. Despite higher mortgage rates, home buying demand remains strong. According to the National Association of Realtors, multiple offers are still occurring on about a third of all listings, and 28% of homes are selling above list price. Home owners with historic low rates simply are not moving.

🏡Homebuyers are more credit worthy. In 2008, when the housing market crashed, mortgage standards were at an all time low for credit scores and down payment requirements, as well as proving income and assets to purchase. Current guidelines are much stricter, making the borrowers more financially secure.

🏡Homes have equity. Homeowners were pulling out equity back in 2008, causing many to be upside down. This time around equity levels are extremely high, meaning that homeowners could see values decline slightly without concern.

Reach out anytime so I can show you why now is a GREAT time to buy a home, and why waiting could cost you so much more! 💰

(Special thanks to Julie Swenson at Empire Home Loans for her mortgage market insight.)

Market Report: October

Happy Fall! September's real estate stats are in and frankly they aren't as alarming as the media would make them seem.

Yes, interest rates are up higher than we've seen in a while, but you'll see here that the median sales price is also up from last year as is the supply of inventory - up 200% in Snohomish County. While that may seem like a crazy number, it is still not in a territory where we would consider it a balanced market or even a buyer's market. That said, a jump in inventory like this does give buyers more options and creates a less competitive environment. Contingencies are becoming the norm once again - hooray!

Now, here's the deal, if you've been thinking of buying, but are scared by interest rates, consider this: When you pay rent, all of your money is going to someone else's asset and someone else's equity. Wouldn't it be better to put only a small percentage of your money toward interest each month and own your home so YOU can start building equity and YOU can be the moneymaker and not your landlord?

Think of it this way too...you don't have to be married to your interest rate. You're just dating your rate until you can refinance when rates go down. There is opportunity as a buyer in this market for closing cost credits, interest rate buy downs and even inspection negotiations. Don't let this kind of market slip away from you if you've been hesitating to jump in. Let’s get you on the road to homeownership NOW!

What a wild ride the start of 2022 has been for real estate!

In 17.5 years of being an agent, I've never seen a market this frenzied, nor bidding wars this intense. I'm routinely seeing homes in Seattle sell contingency free and for $300-500K over the list price!

Curious what is fueling this fire? Well, we are sitting on unprecedented demand as our population increases, and as luck would have it, the low inventory followed us into the new year. We did see a tiny increase in both King and Snohomish counties in January as opposed to December, but it is not nearly enough to support the current demand. Buyers are poised to take advantage of current interest rates before they rise.

January's stats also pointed out some pretty amazing price gains year over year too - 10% for King County and an astronomical 23% for Snohomish County!

Will inventory increase this spring? I sure hope so! Typical seasonal cycles would say yes, but while that may be unpredictable for now, it is a phenomenal time to be a seller! The ball is fully in your court to cash in on some tremendous equity. Interested in what your home may be worth? Let's chat to see how you can put the insane market to work for you and drop some cash in your pocket!

End of Year Market Stats

End of year market stats are in!

December was predictably dry with new inventory, down 59% in King County and down 39% in Snohomish. This forced median sales prices to rise by large margins. (A whopping 26% increase in Snohomish County and 11% in King County since December of 2020!)

As you can imagine, the new year is off to a frenzied start with some pretty intense offers happening all over the place. I just witnessed a home in Redmond receive 33 offers and sell for $800K over asking! To date, that's the largest jump I've seen and it's completely mind blowing. We are hopeful that more inventory will come as we get closer to spring to help spread buyers out a bit and release some of the tension.

If you have a home to sell, there's truly no time like the present to make a move before inventory rises. Let's chat to see how we can help you capitalize on this unprecedented inventory shortage and cash in on your equity. I think you'll be pleased with the results!