Community • May 31, 2022

Maintaining Your Independence As You Age

by Amie Armstrong

Maintaining independence is a key factor in being able to age in place well. What are the secrets to doing this? What are some things to consider in working towards this goal? If you or a loved one would like to find out, Northwest Neighbors Network, which works to help seniors age well in their own homes, is hosting an interactive discussion Wednesday, June 1 about ways that seniors can maintain their independence for as long as possible. The discussion will run from 3-5 p.m. at the Mountlake Terrace Community Senior Center, 23000 Lakeview Drive, Mountlake Terrace.

Some topics being discussed are:

When to hire help
Legal steps to preserve your independence
When to consider assisted living options, and ways to evaluate them

There will be several professionals on site to discuss these important issues and offer their perspective and help. For more information, please email Social@NorthwestNeighborsNetwork.org or text or call 253-237-2848.

Current Real Estate Market • April 5, 2022

Contract Signings Slide in February

by Amie Armstrong

Across the U.S., pending home sales slid 4.1% month over month in February 2022 and 5.4% annually from last year. Why? In a nutshell, lack of inventory. NAR Chief Economist Lawrence Yun states it eloquently: “One cannot buy what is not for sale.”

It is important to note that these numbers quoted by NAR are for the entire U.S. Specific regions around the PNW may be higher or lower than these national numbers. For example, in King and Snohomish Counties, from 2021-2022 in February the decrease year-over-year was just over 3.5% for single family homes and condos. For the year-over-year period from March 2021-March 2022 (numbers just out), the decrease was larger, just shy of 5%.

No matter where you look, it appears inventory is and continues to get tighter. Compounding things, interest rates have increased significantly in the past month or so, making purchasing a home even more difficult. As a result, many would-be buyers are getting priced out of the market. Some single family home buyers are shifting to condos since they are more affordable.

If you are curious about what is happening in your neighborhood, please reach out! I am here as your resource to keep you informed on what is likely your largest single investment: Your home!

Community • February 22, 2022

Black History Month: Ways to Increase Black Homeownership

by Amie Armstrong

Recently I participated in a Zoom discussion/presentation with Nicole Bascomb, the National Association of Real Estate Broker’s Local President. Nicole discussed Black Homeownership programs, partnerships, and ways REALTORS® can support breaking barriers to homeownership. Watch the recording by clicking on the “Play” arrow below. To watch other webinars on the Washington REALTORS® website, click this link: https://bit.ly/3skWLrz

Thanks for watching!

Current Real Estate Market • New Post • February 17, 2022

8 Seattle Suburbs With the Biggest Price Increases

by Amie Armstrong

This past year prices rose an average of 15.1% in Western Washington. However, price growth has not been evenly distributed either geographically or across price points. For example, consider these 8 Seattle Suburbs that had home price increases ranging from 30-100% year-over-year. Yes, you read that correctly: One of these areas actually DOUBLED in price over the past 12 months!

https://bit.ly/34QMPwG

Current Real Estate Market • February 17, 2022

Housing As an Employee “Perk”

by Amie Armstrong

Wow! That is my reaction to the article below. Shocking, but a smart way to attract talent. This Florida employer bought two lots with plans to build homes for employees. They are offering the homes as a reward to two of their employees who will randomly drawn to win.

This makes sense! Employees might be scared to move somewhere if they can’t find housing. Also, employees may not really enjoy their job but might be motivated to stay if the “perks” are good enough. It is smart for employers to purchase housing for their employees as a way to attract & retain good people, not just as a “prize” but as part of an overall benefits package. Unfortunately, having companies purchase housing could only widen the gap between the 1% and the rest, making it harder for middle class buyers to purchase.

https://nwreporter.nwmls.com/Issues/February-2022/page/Orlando-business-offering-2-free-homes

Current Real Estate Market • Gardner Report • New Post • February 15, 2022

Top 10 Predictions for 2022

by Amie Armstrong

Last year we saw huge increases in home price appreciation. In Snohomish County, prices went up 22% overall in Snohomish County. Some areas saw even larger increases, especially on the eastside.

To help you know what is coming this year, watch Matthew Gardner’s video here.

For the condensed version of Matthew’s Top 10, here you go:

1. Prices will continue to rise
2. Spring will be busier than expected
3. The rise of the Suburbs (think: work from home)
4. New construction jumps
5. Zoning issues will be addressed
6. Climate change will impact where buyers live
7. Urban markets will bounce back
8. A resurgence of foreign investors
9. First-time buyers will be an even bigger factor in 2022
10. Forbearance will come to an end

One of the things Matthew did not address is the rise in interest rates. As of today, interest rates are officially over 4%. When thinking about rates, remember this rule of thumb: For every 1% increase in interest rates, purchasing power decreases by 10%. If you want to talk to a good lender, let me know and I will refer you to several.

Current Real Estate Market • Gardner Report • February 1, 2022

Q4 Gardner Report for Western Washington

by Amie Armstrong

The final Q4 numbers are in! Matthew Gardner’s analysis of the Western Washington housing market is complete. Here are some key highlights:

The ratio of pending sales (demand) to active listings (supply) showed sales outpacing listings by a factor of 5.2. High buyer demand is putting upward pressure on prices.
Home prices rose 15.1% compared to a year ago, with an average sale price of $711,008. This was 2.1% lower than in the third quarter of 2021. Why? One factor could be…
Mortgage rates rose more than .2% between the third and fourth quarters, which may have impacted prices. Affordability constraints continue to grow, which is also likely to have played a part in slowing gains. Remember, for every 1% increase in mortgage rates, purchasing power decreases by 10%. The reverse is true.
All counties contained in this report saw the average time on market drop from the same period a year ago. Every county except Whatcom saw market time rise compared to the third quarter. This lengthening in Q4 is likely due to seasonality.

Overall, the market remains solidly a seller’s market, mainly due to good old Economics 101: Supply and Demand. With demand far outpacing available supply, prices have strong upward pressure. We are still seeing multiple offers, short market times, and waived terms.

If you are thinking of buying or selling, call me! If you are a seller, I will help you net the most money and best terms. If you need to buy, I will help you develop a strategy to get you under contract quickly. This can can save you thousands in the long-term.

For Matthew’s full report, click this link: https://bit.ly/3I3BNms

Current Real Estate Market • New Post • December 28, 2021

Reasons to Sell your Home During the Holidays

by Amie Armstrong

If you think selling your home during the holidays is a bad idea, think again! Here are 10 Reasons why it makes sense to sell now before inventory increases in the spring.

To demonstrate what this video says, I recently listed a home for sale (on 12/16) in Shoreline. There was little else for sale that was similar (low supply), but there was a high number of buyers who need a home (high demand). The property went “Pending” in six days, with 16 offers, a high sales price, and very favorable terms for the seller!

If you (or anyone you know) is interested in potentially selling property, I would welcome the opportunity to talk with you to help determine a timeframe that makes sense for you. If you want to buy, I am experience negotiating and getting clients under contract. It can be done; it just takes some up front work, a good team to help you, and the right agent.

Happy Holidays!

Current Real Estate Market • First Time Buyer • November 22, 2021

Investors, Inventory, and the Home Purchase Market

by Amie Armstrong

As you probably have probably heard, home inventory levels are at record low levels. There is a complex set of reasons why this has happened, some of them dating back to the housing crash of 2007+ when home builders went bankrupt and never came back. Recently, in Q3, more investors entered the housing purchase market, fueling already high buyer demand and making it even more difficult for everyone but particularly first-time buyers to purchase a home.

Consider the following statistics for October 2021*:

Investors made up 17% of October home buyers, up from 13% in September and 14% in October of 2020
All cash buyers represented 24% of buyers. Most investors use all cash
Nationally, there is a 2.4-month supply at the current sales pace. A 5 to 6-month supply is considered a balanced market between buyer and seller
Currently in the King-Snohomish County area, there is a 0.5 month supply of single family homes. This means if no new homes came to the market, at our current sales pace, existing inventory would be gone in two weeks
First-time buyers represented 29% of sales compared with 32% a year ago. Historically that share is around 40%

High demand is the biggest issue affecting price and inventory. Simply put, demand far exceeds supply which puts upward pressure on prices. To show you how extreme our inventory situation is, consider the yellow graph below. This graph represents the past 15 years of quarterly housing inventory levels in the King-Snohomish County area. Can you see how low inventory is now compared to years past? Having talked with seasoned agents who have been in business for 40+ years, what I have heard repeatedly is, “I have never seen inventory this low.” The situation we are in is (and I hate to use this word because it is so overused) unprecedented. In other words, this has never happened before. The numbers bear out their anecdotal experience.

If you have questions or want to discuss how this data might impact your housing or financial planning, I would be happy to help you. If you want to know my thoughts and expectations going forward, I am happy to discuss that as well.

*Source: https://www.cnbc.com/2021/11/22/home-sales-rose-in-october-as-investors-rushed-into-the-market.html

Gardner Report • October 29, 2021

Q3 Western Washington Real Estate Report

by Amie Armstrong

Matthew Gardner recently published his Q3 2021 Western Washington Real Estate Market Update.

Here are a few key highlights:

Despite more listings becoming available, the ratio of pending sales (demand) to active listings (supply) showed pending sales outpacing listings by a factor of 4.6
Thurston (+14.3%), Snohomish (+10.8%), and King Counties (+7.8%) saw the biggest annual changes in the number (volume) of homes sold
In the Western Washington region, home prices rose 18.9% overall compared to a year ago. The average sale price was $726,168—another all-time record
In Q3, the average market time (how long it took a home to sell) was 17 days. In some areas, homes sold faster: In South Snohomish County market time averaged 9 days, while in North King County, it was 12 days
Buyer demand is still quite robust. With inventory levels increasing, the market has softened slightly and is moving a little more towards balance. However, make no mistake: It is still very much a seller’s market

For the full Q3 details with charts & graphs, see Matthew’s report HERE on his blog.