North Snohomish County Quarterly Market Trends – Q1 2019

by Heather Potts

Months of inventory was reduced as we finished out the first quarter of 2019. Months of inventory is the amount of months it would take to sell out of homes if no new listings came to market. This illustrates the balance between supply and demand. We peaked at 2.5 months in September of 2018 and found ourselves at 0.9 month this March.

The first quarter of 2019 saw 934 new listings and 921 pending sales – demand tracked quite well with supply! It remains a seller’s market (0-3 months of inventory), but not as constricted of a market as last year, which saw an average of 0.9 months in the first quarter compared to 1.4 months this year. As we head into spring, we should see continued growth in new listings and demand will be strong, fueled by low interest rates and positive jobs reports.

The second half of 2018 had a large influx of homes that came to market, and an interest rate jump which created a gap between supply and demand. Buyers enjoyed some negotiations and credits in the fall and winter due to more selection, but as interest rates reduced in the first quarter, we saw demand increase. This is helping to absorb inventory and reduce the average days on market it takes to sell a home. Median price is up 9% complete year-over-year, which is higher than the 4% norm, but much less than the unsustainable 12% gains from 2017 to 2018. This balancing out in the market has been a positive phenomenon as affordability has been a challenge for many. Both sellers and buyers are finding great opportunities in the current market.

This is only a snapshot of the trends in north Snohomish County; please contact me if you would like further explanation of how the latest trends relate to you.

South Snohomish County Quarterly Market Trends – Q1 2019

by Heather Potts

Months of inventory was reduced as we finished out the first quarter of 2019. Months of inventory is the amount of months it would take to sell out of homes if no new listings came to market. This illustrates the balance between supply and demand. We peaked at 2.8 months in September of 2018 and found ourselves at 1 month this March.

The first quarter of 2019 saw 1,708 new listings and 1,547 pending sales – demand tracked quite well with supply! It remains a seller’s market (0-3 months of inventory), but not as constricted of a market as last year, which saw an average of 0.6 months in the first quarter compared to 1.3 months this year. As we head into spring, we should see continued growth in new listings and demand will be strong, fueled by low interest rates and positive jobs reports.

The second half of 2018 had a large influx of homes that came to market, and an interest rate jump which created a gap between supply and demand. Buyers enjoyed some negotiations and credits in the fall and winter due to more selection, but as interest rates reduced in the first quarter, we saw demand increase. This is helping to absorb inventory and reduce the average days on market it takes to sell a home. Median price is up 6% complete year-over-year, which is still higher than the 4% norm, but much less than the unsustainable 15% gains from 2017 to 2018. This balancing out in the market has been a positive phenomenon as affordability has been a challenge for many. Both sellers and buyers are finding great opportunities in the current market.

This is only a snapshot of the trends in south Snohomish County; please contact me if you would like further explanation of how the latest trends relate to you.

Newsletter • April 15, 2019

Monthly Newsletter – March 2019: Consulting Your Trusted Advisor vs Following the Media

by Heather Potts

Spring is in the air! The bulbs are starting to poke out of the ground and we recently hit 70 degrees in the Greater Seattle area. This is the time of year, due to weather and the end of the school year approaching, that the local real estate market starts to take off with activity. Not only is the sun thawing out gardens and backyard patios, helping to ready homes for market, but interest rates are continuing to fall, providing a heyday for buyers and sellers.

Spring is the time of year we see more homes come to market providing more selection for buyers. This is what we call our peak season. This spring, however, is especially meaningful due to the recent decrease in interest rates. Seasonality naturally brings more activity, but 2019 has started out with a downward trajectory in regards to interest rates, which has been a welcome shift after watching rates increase by almost an entire point over the course of 2018.

According to Ycharts.com, as of March 14th the US 30-year mortgage rate is at 4.31%, compared to 4.41% the week prior and 4.46% last year. This is quite a bit lower than the long term average of 8.07%. Additionally, rates are now over half a point lower than they were just four months ago, which gives buyers 5% more buying power. Meaning they can increase their price range by 5% and keep the same mortgage payment.

We are beginning to see a ton of activity at open houses, market times are starting to shrink, and multiple offers are popping up again. Demand is on the rise, with first-time home buyers out in full-force along with move-up and down-size buyers all going after the same inventory. Price appreciation will start to happen again month-over-month as the tulips start to open and veggie gardens start sprouting.

This assessment is not only factual and researched, it is anecdotal. You see, statistics are only reported monthly from the NWMLS, so the stories from the streets tell the real story of where we have been, what’s happening now, and where we are headed in the real estate market. My daily engagement with the market, either helping buyers or sellers, researching values, showing properties, negotiating contracts, and working on inspections and appraisals helps me to be informed of the trends before they are even reported.

Around the third of each month, the NWMLS distributes a press release to the media reporting the previous month’s statistics. The media grabs the numbers that are most exciting to them to craft a story around. They create headlines to entice readership, which in turn sells advertising. The problem is that these news stories often only tell part of the story.

A classic example of cherry picked statistics used to create a headline came earlier this month. T he Seattle Times reported in a sub-headline that Snohomish County home prices were falling at their fastest rate in seven years. This is simply not the whole truth. This is a common tactic of the media often only using month-over-month numbers (comparing the current month to the same month a year ago) versus a complete year-over-year analysis. Real estate is a long-term investment, and month-over-month numbers tend to provide more of a snapshot rather than a longer-term analysis of data and what influenced it.

We need to look at the data from all angles. Where were we a year ago, what has happened over the course of the last year in comparison to the previous year, and what happened this month compared to last month? Real-time experiences matter too, as the market changes weekly and even daily. Interactions throughout the month help me understand what opportunities the current environment will provide before the ink even dries on the media release. All of this helps us understand where we have come from and where we are headed. Couple that with front-line, daily experiences, and your trusted advisor can help you determine how all of this relates to your bottom line much more effectively than an article in the newspaper.

Another important factor to consider is that the bulk of the statistics reported in that monthly NWMLS press release are based on closed sales. While closed sales are very important, we must also closely track pending sales activity (homes currently under contract). Closed sales show where we have been and pending sales indicate where we are headed. February was a misleading month because of Snowmageddon. It halted new inventory reaching the market and kept buyers at home. The second half of February once the roads were cleared, had buyers lined up. Many of those buyers are anxiously waiting for that seasonal surge in inventory as we head into spring. This is indicated by conversations being had at open houses and one-on-one encounters with clients. Buyers want to take advantage of these surprisingly low interest rates now and sellers are enjoying the audience they are providing.

Unfortunately, the media is the initial source of information, and sometimes the only source a consumer considers when making such big decisions. I can’t tell you how often I encounter people that are grossly misled by alarming headlines and bite-sized bits of media when it comes to their largest asset, or the consideration of entering into home ownership.

Supply and demand illustrates where we are at in the market, and factors such as interest rates, the local and global economy, and simple things like weather and consumer mindset drive the market. Consumer mindset is influenced by the media. Take it a step further and make sure you are aligned with a professional who is committed to tracking all of this and can help explain how it all relates to you. Everyone has their own goals and their own concerns; it is the analysis of a well-researched trusted advisor that can help you navigate these meaningful financial decisions. It is my goal to provide my clients with the most up-to-date information to help empower strong decisions. If you are curious how this all relates to you, please reach out. I’d be happy to discuss and help educate.

Growing your own vegetables is both fun and rewarding. It might seem intimidating if you’ve never done it before, but once you get started, you’ll find it isn’t very hard. Gardening is a learning experience, though. You’ll find that some things work better than others, and every planting season gives you another opportunity to make some tweaks and try again.

The first thing you need to decide is where to plant. For most veggies, this should be the sunniest spot you have. And of course, the second big question is what to plant. Go for the things you love to eat, as well as plants that will thrive in the amount of sun you have.

Our climate in the Pacific Northwest requires some crops to be started indoors in the winter and transplanted outside in the spring. But it’s not too late to get started. There are lots of plants that you can sow directly into the garden in early spring. Here are a few:

There are also many crops that can be planted in the summer for a fall harvest. Click here for a complete timeline of planting vegetables in the Seattle area.

Celebrate Earth Day with us! Bring all your sensitive documents to be professionally destroyed on-site by Confidential Data Disposal. Limit 20 file boxes per customer.

We will also be collecting non-perishable food and cash donations to benefit Concern for Neighbors Food Bank. Donations are not required, but are appreciated.

Saturday, April 20th, 10am – 2pm.
4211 Alderwood Mall Blvd, Lynnwood 98036

*This is a shredding-only event. Only paper will be accepted – no electronics or recyclables.

City Guides • February 28, 2019

Recent Decrease in Interest Rates Spurs Opportunity

by Heather Potts

Most recently, we have experienced an uptick in market activity. In fact, in King and Snohomish counties we saw a 53% increase in pending sales from December to January. While it is seasonally normal to see activity increase at the first of the year, it was 16% higher than the previous January. This increase is being driven by multiple factors, such as our thriving economy and job market, price acceleration softening, and the recent decrease in interest rates.

Currently, rates are as low as 4.5% for a 30-year fixed conventional mortgage – 0.75 points down from the fourth quarter of 2018. In fact, the interest rate in November was the highest we’ve seen in five years! The current rate level is the lowest we have seen in a year. This is meaningful because the rule of thumb is that for every one-point increase in interest rate, a buyer loses ten percent in purchase power. For example, if a buyer is shopping for a $500,000 home and the rate increases by a point during their search, in order to keep the same monthly payment, the buyer would need to decrease their purchase price to $450,000. Conversely, for every decrease in interest rate, a buyer can increase their purchase price and keep the same monthly mortgage payment.

Why is this important to pay attention to? Affordability! If you take the scenario I just described and apply it to the link above, you can see that the folks who choose to jump into the market this year will enjoy an interest cost savings when securing their mortgage. This lasts the entire life of the loan and can have a huge impact on the monthly cash flow of a household. This cost savings is also coupled with a slow-down in home-price appreciation. Complete year-over-year, prices are up around 8% in both King and Snohomish counties, but note that from 2017 to 2018 we saw a 14% increase. Price appreciation is adjusting to more normal levels and is predicted to increase 4-6% in 2019 over 2018.

As we head into spring market, the time of year we see the most inventory become available, the interest rates will have a positive influence on both buyers and sellers. Naturally, buyers will enjoy the cost savings, but sellers will enjoy a larger buyer pool looking at their homes due to the demand the lower rates are creating. Further, would-be sellers who are also buyers that secured a rate as low as 3.75% via a purchase or re-finance in 2015-2017, will consider giving up that lower rate for the right move-up house now that rates are not as big of a jump up as they were during the second half of 2018.

This recent decrease in rate is making the move-up market come alive. What is great about this, is that it opens up inventory for the first-time buyer and helps complete the market cycle. First-time buyers are abundant right now as the Millennial generation is gaining in age and making big life transitions such as buying real estate. According to Nerd Wallet, 49% of all Millennials have a home purchase in their 5-year plan.

Will these rates last forever? Simply put, no! According to Matthew Gardner, Windermere’s Chief Economist, rates should increase into the 5’s in 2019.While still staying well below the 30-year average of 6.85%, increases are increases, and securing today’s rate could be hugely beneficial from a cost-saving perspective. Just like the 1980’s when folks were securing mortgages at 18%, the people that lock down on a rate from today will be telling these stories to their grandchildren. Note the 30-year average – it is reasonable to think that rates closer to that must be in our future at some point.

So what does this mean for you? If you have considered making a move, or even your first purchase, today’s rates are a huge plus in helping make that transition more affordable. If you are a seller, bear in mind that today’s interest rate market is creating strong buyer demand, providing a healthy buyer pool for your home. As a homeowner who has no intention to make a move, now might be the time to consider a refinance. What is so exciting about these refinances, is that it is not only possible to reduce your monthly payment, but also your term, depending on which rate you would be coming down from.

If you would like additional information on how today’s interest rates pertain to your housing goals, please contact me. I would be happy to educate you on homes that are available, do a market analysis on your current home, and/or put you in touch with a reputable mortgage professional to help you crunch numbers. Real estate success is rooted in being accurately informed, and it is my goal to help empower you to make sound decisions for you and your family.

City Guides • February 10, 2019

Get a Jump on Spring Cleaning

by Heather Potts

Whether you hire an outside professional for help, or tackle the project yourself, now is a great time to get a jump on spring cleaning. Many people wait for warmer temps to start cleaning, but I think most everyone can agree that those weekends would be better spent outdoors, soaking up that sun. So, take some inspiration from the list below to get you started now on freshening up your home for spring.

It will only take a few hours to check everything off this list, and you’ll feel so much better enjoying the last few weeks of winter, knowing that when the warmer weather finally comes, you can get outside and really enjoy it!

Rotate your mattress. Most mattresses need to be rotated regularly in order to even out the overall wear and prolong the lifespan of your bed. However, keep in mind that Sleep Number and Tempur-Pedic mattresses typically should not be rotated. Always check with your manufacturer for their recommendations on your specific mattress. If you own an older mattress with no pillowtop, it should probably be flipped as well as rotated.

Clean your mattress. Strip the mattress of all linens and covers. Start by vacuuming the mattress with the upholstery attachment, paying close attention to crevices and seams. Next, sprinkle baking soda (up to a one-pound box) all over the surface of your mattress. Let this sit for at least an hour, but 24 hours is best. Then go back over your mattress with your vacuum’s upholstery attachment again. If you have a steam cleaner, break it out and go over your whole mattress. The steam will reach further into the mattress than your vacuum is able to, and kills dust mites. *It is generally not recommended to clean memory foam with a steam cleaner.

Organize & clean the laundry room. Clean the outside of your washer and dryer; scrape any dried detergent from crevices. Next, clean the inside of the washing machine. Most newer models have a self-cleaning cycle. If you have an older machine that does not have a self-cleaning cycle, run a cycle with hot water and a quart of white vinegar. After it is finished, clean the detergent dispensers, using a vinegar and water solution and a scrubber. If you have a front-loader, be sure to clean the rubber seal on the door. This area is prone to mold growth, so use an all-purpose cleaner or maybe even bleach to get under and around the seal.

Next, organize a bit. Throw away products you never use, replace damaged sorting bins, and don’t forget to clean out the dryer vent to prevent a fire.

Deep clean the fridge. Twice a year (or more), you should give your fridge a front-to-back, top-down scrubbing. Start by taking everything out and throw away anything that has expired. Next, remove all the shelves and drawers. Put them to soak in a solution of two tablespoons baking soda and one-quart hot water. While they are soaking, wipe down the interior of the fridge with the same solution. Then scrub, rinse and dry the shelves and drawers.

Next, dry the drip pan. Remove the base grill, and pull out the drip pan. If it’s full of water, mop it with paper towels and wash the pan with soapy water. If your drop pan is fixed in place, wrap a cloth around the head of a long-handled brush and use to clean the pan.

Don’t forget the coils. In order to keep your refrigerator running efficiently, unplug it, pull it away from the wall, and use a coil brush or your vacuum’s crevice attachment to clean the condenser coils. This should be done at least twice a year, unless you have pets in the home, and then you should do this three to four times a year.

Clean out spice cabinet. Throw away all expired spices and seasonings. Not only do these lose taste, they actually harbor mold and bacteria.

Clean out expired medications & vitamins If you have unused medications, please take them to your local pharmacy for proper disposal.

Vacuum, wash, or steam window curtains

Wash window blinds

Add color to your table. Treat yourself to fresh flowers while waiting for the spring blooms outside.

And if you’re ready to get some deep cleaning done, check out this blog for the Ultimate Spring Cleaning Checklist.

Community Events • Local News and Events • December 3, 2018

5 Alternatives to a New Year’s Resolution

by Heather Potts

The pressure to come up with resolutions and improvements always mounts near the end of the year, but everyone knows that statistically speaking, most of us won’t stick to our New Year’s resolutions much past February. So rather than give in to societal pressure, guilt, and feelings of hopelessness, I propose a shift in perspective this year.

Rather than viewing the New Year as catalyst for sweeping lifestyle and character changes, let’s instead take this opportunity to renew our sense of purpose and determination. Here are five ideas to make some positive changes in a different way this year.

Express Gratitude

“Gratitude can transform common days into thanksgivings, turn routine jobs into joy, and change ordinary opportunities into blessings.” -William Arthur Ward. You will be amazed at the ways your life will begin to change simply by expressing gratitude regularly. It will help you maintain a fresh perspective day in and day out, and will help to keep stress at bay. Make a list of all the things you are thankful for in your life, big and small. Take some time to really lean in to this list and reflect on each one. Especially focus on why you are thankful for each of those things.

Create a list of things to look forward to

This goes hand-in-hand with gratitude. What are you looking forward to this year? A vacation, a family member getting married, a new restaurant opening, a new novel or a new season of your favorite show. By focusing on the good things coming your way, it will be easier to keep a positive and hope-filled attitude.

Pick a word for the year

Before the year starts, take some time to look at the big picture of the coming year. Find the theme of what you would like to accomplish or focus on, and chose a theme word to guide you. This will give you clarity and focus. Maybe your word for the year is Intentional. Simplify. Peace. Discipline. Fun. When you have your theme word for the year, share it on oneword365.com

Schedule a quarterly retreat

Life happens, and trying to balance work, family, social life, friends, and other commitments often results in very little time for you. Take some time before the new year starts and schedule yourself a quarterly one-day (or weekend!) retreat to focus on YOU. Remember, if you don’t take care of yourself, you won’t be able to take care of anyone else.

Try a 30-day challenge

A 30-day challenge consists of setting a small goal that can be achieved in 30 days, as well as a small, specific action that you will take each day to achieve that goal. For example:

Declutter: every day for 30 days, choose 3 items to donate, sell, give away or throw away.

Random acts of kindness: every day for 30 days, perform a random act of kindness such as: leaving change in a vending machine; buying the coffee of the person behind you at Starbucks; send a thank you email to a coworker who deserves more recognition. Spreading kindness will always come back to you.

Happy New Year!

Community Events • Local News and Events • December 3, 2018

Where to Celebrate NYE

by Heather Potts

New Year’s Eve 2018 is almost upon us, and if you are still looking for something to do, read on! There are lots of options in the greater Seattle area, whether you are looking for the biggest blow-out bash or an earlier, family-friendly event.

New Year’s Eve Celebration at Seattle Center

There are actually two parties that will converge at midnight for the iconic Seattle fireworks show.

The Armory Stage will host rock band SWAY from 8pm until midnight. And at the International Fountain, you can dance the night away with live electronic music and video projection show (starts at 10pm). Tickets are required for both parties, however the big fireworks show is free to enjoy.

SPECTRA: New Year’s Eve Under the Arches

The Pacific Science Center transforms on NYE with fire sculptures, drinks and live music. There will be special entertainment throughout the night, as well as the standard Science Center exhibits. At midnight, head outside for the Space Needle fireworks. Purchase tickets in advance.

New Year’s Eve pARTy at Chihuly Gardens and Glass

Watch the Seattle Center fireworks from under the glass of Chihuly Gardens. The evening includes appetizers, desserts, live music and a midnight toast. Purchase tickets in advance.

INDULGENCE New Year’s Eve Bash at MoPOP

Another Seattle Center option, the Museum of Popular Culture offers four 21+ parties in one. With live music on three performance stages, comedians, party favors, special VIP areas, more than 20 bars, and a special singles-only cocktail hour, this is one of the largest parties of the year. Museum access is included in the price of the party, purchase tickets in advance.

Tacoma’s First Night

First Night is an all-ages, family-friendly celebration in Downtown Tacoma’s Theater District. The affordable admission price includes museums, music, art, drama, dance, and a whole day and night of activities. The cost of entry increases as the festival gets closer, so buy early to save!

Nighttime Party for Families at Imagine Children’s Museum

The perfect NYE celebration if you have older kids, this pajama party features comedians, balloon makers, pizza, snacks, and educational, hands-on activities throughout the night. The fun culminates at 9pm with a ball drop.

New Year’s Eve with Ivar’s Salmon House

Ivar’s on Northlake will host live music, tasty food and view of the fireworks without the crowds. Advanced reservations are required, and will range in price depending on your selections.

Slamming’ Jammin’ New Year’s Eve Party

Ring in the new year with the latest in R&B, Old School, Jazz and Hip Hop music. This is a 21+, semi-formal event, and hotel packages are available with your ticket purchase.

Resolution New Year’s Eve Party at WAMU Theater

A Seattle tradition for almost a decade, this 18+ party always brings a mixed crowd together for a night of dancing. This is one of the biggest EDM parties of the year.

New Year’s at KidsQuest Bellevue

Celebrate the coming new year all day at KidsQuest! There are activities every hour from 10am to 4pm, including Bubble Wrap Stomp, New Year’s Hats, Storytime, glittery tattoos, and more. Admission is free with membership or museum admission.

Community Events • Local News and Events • December 3, 2018

Christmas Tree Farms & Winter Activities

by Heather Potts

King County:

♦ Buttonwood Farm
14500 NE 116th St, Redmond
100% organic you-cut or white-glove delivery service, saws provided, hot chocolate and cookies

♦ Carnation Tree Farm
31523 NE 40th St, Carnation
You-cut trees, pre-cut trees, wreaths, garlands, mistletoe, Santa visits, Christmas decorations, trees baled, saws provided, hay rides

♦ Cedar Falls Tree Farm
15200 Cedar Falls Rd SE, North Bend
You-cut trees, wreaths, trees bagged & tied, saws provided, free hot cider, picnic area, porta-potties

♦ Christmas Creek Tree Farm
15515 468th Ave SE, North Bend
You-cut trees, pre-cut trees, trees baled, refreshments, hay rides, Santa on weekends, picnic areas

♦ Coates Christmas Trees
17225 SE Green Valley Road, Auburn
You-cut trees, pre-cut trees, wreaths, boughs, garlands, mistleto, Santa, trees bagged and tied

♦ Country Tree Farm
18225 116th Ave SE, Renton
You-cut trees, wreaths, holly, refreshments, Santa

♦ Crown Tree Farm
13005 424th Ave SE, North Bend
You-cut trees, pre-cut trees, wreaths and boughs, decorations, saws provided, trees bagged, free tree trimmings

♦ Crystal Creek Tree Farm
23604 SE 192nd St, Maple Valley
You-cut trees, saws provided, trees baled, cider, porta-potties

♦ Enchanted Winds Tree Farm
8021 Issaquah-Hobart Rd, Issaquah
You-cut trees, wreaths, swags, boughs, holly, gifts, decorations, crafts, trees baled, tree stands, hay wagon, trailer rides, fire pit, hot beverages

♦ Hunter Farms Fresh Cut Trees
7744 35th Ave NE, Seattle
Precut trees, mistletoe, holly, wreaths, flocking, restrooms, trees baled, fire retarding

♦ Keith and Scott Tree Farm
42999 SE 120th St, North Bend
You-cut trees, pre-cut trees, wreaths, boughs, trees tied, baled and trimmed, saws provided, bonfires, refreshments, restrooms

♦ McMurtrey’s Red-wood Christmas Tree Farm
13925 Redmond-Woodinville Rd, Redmond
You-cut trees, pre-cut trees, saws provided, wreaths, beverages, restrooms, wagon rides, tree stands

♦ Serres Farm
20306 NE 50th St, Redmond
You-cut trees, pre-cut trees, saws provided, wreaths, free hot chocolate, restrooms

♦ Snow Valley Christmas Tree Farm
17651 W Snoqualmie River Rd NE, Duvall
You-cut trees, pre-cut trees, wreaths, Santa appearances, decorations, free hot beverages, gift shop, porta-potties

Snohomish County:

♦ Bowen Tree Farm
19301 95th Ave NE, Arlington
You-cut trees, wreaths, decorations, free hot cider, gift shop, porta-potties

♦ Farmer Brown’s Tree Farm
12017 109th Ave NE, Arlington
You-cut trees, saws provided, hot beverages, flocking, gift shop, restrooms

♦ Hemstrom Valley Tree Farm
4329 Robe Menzel Road, Granite Falls
You-cut trees, saws provided, winter events, refreshments

♦ Holiday Forest
3125 280th St NW, Stanwood
You-cut trees, wreaths, boughs, saws provided, winter wagon rides, snacks and refreshment stand

♦ Lochsloy Acres
5511 State Route 92, Lake Stevens
You-cut trees, wreaths, boughs, saws provided, free coffee, cider & hot chocolate

♦ Paterson’s Lazy Acres Tree Farm
1315 188th St NE, Arlington
You-cut trees, saws provided, trees baled, wreaths, decorations, refreshments

♦ Pilchuck Secret Valley Christmas Trees
9533 Mose Rd, Arlington
You-cut trees, wreaths, swags, boughs, holly, picnic area, fire pit, hot beverages, restrooms

♦ Stocker Farms
8705 Marsh Rd, Snohomish
You-cut trees, saws provided, warming fire

♦ Wintergreen Tree Farm
13606 S Machias Rd, Snohomish
Precut trees, you choose and you cut trees, wreaths, boughs, garlands, decorations, Christmas festival, bonfires, free hot cider, gift shop, restrooms

Remember to always call the farm before you go to confirm their supply, hours, if they are allowing choose-and-cut or just pre-cut trees, and which attractions or winter activities are available. All of these things can change quickly during the short Christmas season due to weather, demand, and the farmers business conditions!

How & where to dispose of your Christmas tree

Newsletter • October 30, 2018

Monthly Newsletter

by Heather Potts

With a healthy increase in inventory since May, the need for buyers to have all their down payment funds immediately available, and a willingness to make offers with no contingencies has passed in most cases. It has been quite a relief, and is providing opportunities for many folks that have wanted to cash in on their well-developed equity levels, and either move up to a bigger home or down size (right size) to a home that better fits their current lifestyle.

For the first time in years we are starting to see an increase in contingent offers that are turning into pending transactions. A contingent sale is one where a buyer makes an offer to purchase their next home contingent on the sale of their current home. In some cases, the buyer’s current home may be already on the market, or in other cases they still need to launch their home to the market. Many buyers in this situation wait to find a home/seller that is willing to accept their contingent offer, and then they immediately launch their home onto the market.

The goal is a sale within 30-45 days, which will then provide the buyer with their down payment funds, and then close both properties within days of each other, making a smooth transition from one house to the next. We have not seen inventory levels the way they are now since late 2014, so the opportunity for successfully executing a contingent offer has not been an option for 4 years! It is a great time to seize this opportunity. With that said, let’s look at some statistics which highlight some of the gains there are to be had.

First and foremost, let’s look at year-over-year price appreciation. Over the last 12 months, we have seen an 11% increase in prices in both King and Snohomish Counties. Last year, the year-over-year price appreciation was 14% for both counties. This illustrates that price appreciation is slowing, or softening, if you will, due to the increase in inventory levels. This is a welcome trend as we move away from unsustainable appreciation levels, which is helping to stabilize affordability. Bear in mind that a historically-normal appreciation rate is 3-5%, so we are still a ways away from reaching that baseline.

The current market environment for both counties is still a seller’s market, sitting at 2.6 months of inventory based on pending sales for King, and 2.3 for Snohomish. A balanced market is representative of 3-6 months on inventory; we are currently just under that, but well above the extreme 0.5-0.8 months that we experienced over the last year or so. This has created more selection, which has minimized multiple offers and given buyers the opportunity to write offers with more comfortable terms, such as a home sale contingency.

Lastly, let’s talk interest rates! Currently, they are hovering around 5%. Yes, this is up from the 4.5% we saw earlier this year, but still well below the 30-year historical average of 6.7%. Money is still relatively cheap to borrow, and this should be taken advantage of as experts predict interest rates to rise as we head into 2019 and beyond. Your interest rate is typically fixed for the life of your loan, so rate plays into the long-term savings you can have on your asset if locked in at today’s levels.

If you have thought about making a move to a home that is a better fit for your current lifestyle, but have been stalled because you weren’t sure how to do it, now is the time to consider your options. Please reach out if you’d like a review of the current market conditions and how they relate to your goals. It is my goal to help keep my clients informed and empower strong decisions.

Quarterly Market Trends • South King County • October 16, 2018

South King County Market Trends

by Heather Potts

In September, the average days on market landed at 26 days and the original list-to-sale price ratio 98%. Since May, inventory growth has been noticeable, and has given buyers more options. This has led to more negotiations and fewer bidding wars, which is tempering month-over-month price growth to a more sustainable level. Back in April, the average days on market was 21 days and the original list-to-sale price ratio 103%; but months of inventory based on pending sales was 0.9 months, compared to 2.6 months currently. Year-over-year, prices are up 10%, still well above the historical norm of 3%-5% year-over-year gains—but note that the majority of this growth happened during the spring, due to constricted inventory levels.

Supply has increased, creating more options for buyers and helping to buffer affordability issues. Many sellers are deciding to make moves and cash in on the equity gained over the last six years. An average original list-to-sale price ratio of 98% is a positive return, yet illustrates a softening in the market after some very extreme times. With 10% price growth over the last 12-months in a seller’s favor, the increase in selection has led to more nimble moves from one house to another. Where sellers need to be careful is anticipating the month-over-month price growth we saw prior to the shift in inventory. Prospective buyers would be smart to take advantage of today’s historically low interest rates and the added inventory selection.

This is only a snapshot of the trends in south King County; please contact me if you would like further explanation of how the latest trends relate to you.