Homeowner Tips • September 12, 2023

5 Home Staging Tips for Creating a Cozy, Autumn Oasis

by Drew Jones

Fall is a fantastic time to showcase your home because it offers unique opportunities to create warmth, coziness, and charm. If you are planning to sell this fall, I would highly recommend using a professional stager. Staging is very often a key ingredient to a successful selling strategy.

However, it’s still fun to use some expert tips and ideas to boost your home’s cozy vibes and fall feels. Here are five expert staging tips for making your home extra homey this fall:

🛋️ Enhance Lighting

As daylight hours dwindle, make sure to maximize your home’s natural light. Clean windows and replace outdated curtains with sheer or light-colored options. Consider adding strategically placed mirrors to reflect light and brighten spaces.

If your home is lacking in natural light, look for places where an added light or lamp might brighten the room. White, light, and neutral paints are a key part of staging your home and they can help lift the brightness of your home.

Finally, don’t forget the outside! Make sure your exterior lights are on and paths are lighted if needed. Exterior lights are a great way to enhance curb appeal, welcome guests, and provide extra safety for walking. You can literally make your home glow with autumnal charm!

🍂 Cozy up with Textiles

Nothing says “welcome home” like soft, cozy textiles. Plush throw blankets, seasonal accent pillows, and area rugs in warm, autumnal colors can create a sense of comfort in your living spaces.

Tasteful, fall touches can help accentuate a home’s ambience. A well-placed autumn wreath on the front door, a decorative bowl of apples or gourds on the dining table, and a few pumpkins on the porch are nice seasonal accents.

🔥 Fireside Comforts

If your home has a fireplace, arrange cozy seating around it. And, of course, lighting it or turning it on is the perfect way to create instant warmth.

🍁 Curb Appeal Matters:

Along with exterior lights, it’s also important to keep the outside of your home fresh and clean to emphasize your yard’s natural autumn beauty. Rake leaves, clean out gutters, and add some seasonal potted plants, like mums, to boost curb appeal.

PNW residents love their outdoor spaces, even in the fall. Ensure that decks and patios are clean and inviting. Stage them with cozy seating, blankets, and perhaps some café lights and/or a fire pit to showcase the potential for year-round enjoyment.

🕯️ It Makes Scents

Finally, appeal to the senses with the comforting scents of autumn. Consider using subtle, pleasant, scented candles, essential oil diffusers, or potpourri with fall scents like apple cinnamon, pumpkin spice, or warm vanilla.

With these fall staging tips, you can already envision yourself snuggled up with a book by the fire or sipping hot cider on the patio. 🏡🍂

If you’re thinking of selling this fall and need advice or assistance, please reach out to me. I’m here to help you make your property stand out in the Seattle area real estate market during this cozy season!

drew@windermere.com

Real Estate News • September 12, 2023

What Experts Project for Home Prices Over the Next 5 Years

by Drew Jones

If you’re planning to buy a home, one thing to consider is what experts project home prices will do in the future and how that might affect your investment. While you may have seen negative news over the past year about home prices, they’re doing far better than expected and are rising across the country. And data shows, experts forecast home prices will keep appreciating.

Experts Project Ongoing Appreciation

Pulsenomics polled over 100 economists, investment strategists, and housing market analysts in the latest quarterly Home Price Expectation Survey (HPES). The results show what the panelists project will happen with home prices over the next five years. Here are those expert forecasts saying home prices will go up every year through 2027 (see graph below):If you’re someone who was worried home prices would fall because of stories you’ve read online, here’s the big takeaway. Even though home prices vary by local market, experts project prices will continue to rise across the country for years to come. And these numbers indicate the return to more normal home price appreciation.

And while the projected increase in 2024 isn’t as large as 2023, it’s important to recognize home price appreciation is cumulative. In other words, if these experts are correct, after your home’s value rises by 3.32% this year, it’ll appreciate by another 2.17% next year. This is a good example of why owning a home is a choice that wins big over time.

What Does This Mean for You?

Once you buy a home, price appreciation raises your home’s value, and that grows your household wealth. To see how a typical home’s value could change in the next few years using the expert projections from the HPES, check out the graph below:In this example, let’s say you bought a $400,000 home at the beginning of this year. If you factor in the forecast from the HPES, you could potentially accumulate more than $71,000 in household wealth over the next five years.

So, if you’re thinking about whether buying a home is a good choice, remember how it can be a powerful way to grow your wealth in the long run.

Bottom Line

According to the experts, home prices are expected to grow over the next five years at a more normal pace. If you’re ready to become a homeowner, know that buying today can set you up for long-term success as home values (and your own net worth) grow. Let’s connect to start the home-buying process today.

Homeowner Tips • September 11, 2023

6 Simple Ways to Protect Your Home from Rain Damage

by Drew Jones

I love rainy days. The sound of rain on the roof and windows usually provides me with a peaceful, relaxed feeling. I remember one time, though, when the sound of raindrops sounded more like alarm bells going off than a soft, cozy pitter-patter.

Years ago, when my wife and I were new homeowners (and before I was a realtor), I was at the office on a rainy day in January. My phone rang and I picked it up to hear my wife’s stressed voice telling me I needed to come home asap. The basement carpet was soaking wet.

I rushed home. My wife and I lifted the carpet, put sandbags down, and did everything we could to stop our things and our home from complete catastrophe.

That week felt like a crash course in homeownership. We replaced the carpet, installed a sump pump, and gained a wealth of knowledge about safeguarding our home from the devastating effects of water damage.

As homeowners in the Pacific Northwest, it’s essential to protect your valuable home from water damage. Over many years of working in real estate, I’ve seen water damage affect all parts of people’s homes, ranging from minor to catastrophic. I don’t want that to happen to you.

If I’m your realtor, you can be sure I’ll help you spot potential issues – raindrops on your roof should lull you to sleep, not send you into a middle-of-the-night scramble to stop a disaster.

Here are 6 key things you can do to prevent water damage:

Keep your gutters and downspouts clear.

Make sure they’re free of debris so water flows freely and away from your home. You’ll prevent water from accumulating on your roof and causing leaks and damage.

Inspect your roof regularly

You can look for missing or damaging shingles, cracking, and other signs of wear and tear. If you notice anything, have it repaired as soon as possible so water won’t find its way into your house.

Seal your windows and doors.

I’ve learned this one the hard way too. Take the time to seal around windows and doors, so you can prevent water from leaking in and damaging your interior walls and rooms.

Check your grading and drainage.

Where is the water running once it hits the ground? If your yard doesn’t slope away from your home, you can create ways for the water to drain away from the house so it doesn’t pool, causing flooding and/or foundation damage.

Check your sump pump.

If you have a sump pump, make sure it’s in working order and not blocked by debris.

Create a disaster plan.

It’s always a good idea to be prepped for emergencies. Having sandbags and tarps on hand can help in the case of flooding. Make sure you and your family know what to do in case of flooding and severe weather, and know how to shut off your utilities in case of an emergency.

That’s it for this rainy-day post, written on a rainy day in Seattle. Please call or email me anytime for real estate advice or questions.

Email me at drew@windermere.com or call me at 206-619-2739.

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Real Estate News • September 11, 2023

Home Price Forecasts Revised for 2023

by Drew Jones

Some Highlights

Last year, some housing experts projected a decline in home prices by the end of 2023. But that didn’t happen – inventory was just too low.
While it’s normal for experts to re-forecast throughout the year, the good news for 2023 is that prices are no longer projected to decrease.
Let’s connect so you know what’s happening with home values in our local area.

Sources

Mortgage Rates • September 11, 2023

Mortgage Rates: Past, Present, and Possible Future

by Drew Jones

If you’re hoping to buy a home this year, you’re probably paying close attention to mortgage rates. Since mortgage rates impact what you can afford when you take out a home loan – and affordability is a challenge today – it’s a good time to look at the big picture of where mortgage rates have been historically compared to where they are now. Beyond that, it’s important to understand their relationship with inflation for insights into where mortgage rates might go in the near future.

Giving Context to the Sticker Shock

Freddie Mac has been tracking the 30-year fixed mortgage rate since April of 1971. Every week, they release the results of their Primary Mortgage Market Survey, which averages mortgage application data from lenders across the country (see graph below):

Looking at the right side of the graph, mortgage rates have increased significantly since the start of last year. But even with that rise, today’s rates are still below the 52-year average. While that historical perspective is good context, buyers have gotten used to mortgage rates between 3% and 5%, which is where they’ve been over the past 15 years.

That’s important because it explains why the recent jump in rates might have you feeling sticker shock even though they’re close to their long-term average. While many buyers have adjusted to the elevated rates over the past year, a slightly lower rate would be a welcome sight. To determine if that’s a realistic possibility, it’s important to look at inflation.

Where Could Mortgage Rates Go in the Future?

The Federal Reserve has been working hard to lower inflation since early 2022. That’s significant because, historically, there’s been a connection between inflation and mortgage rates (see graph below):

This graph shows a pretty reliable relationship between inflation and mortgage rates. Looking at the left side of the graph, each time inflation moves significantly (shown in blue), mortgage rates follow suit shortly after (shown in green).

The circled portion of the graph points out the most recent spike in inflation, with mortgage rates following closely behind. As inflation has moderated a bit this year, mortgage rates haven’t yet made a similar move.

That means, if history is any guide, the market is waiting for mortgage rates to follow inflation and head back down. It’s impossible to accurately predict where mortgage rates will go for sure, but moderating inflation means mortgage rates going down in the near future would fit a well-established trend.

Bottom Line

To understand where mortgage rates may be going, it’s helpful to look at where they’ve been in the past. There’s a clear connection between inflation and mortgage rates, and if that historical relationship holds true, the recent decline in inflation may mean good news for the future of mortgage rates and your homeownership goals.

Market Update • Real Estate News • September 11, 2023

Expert Home Price Forecasts Revised Up for 2023

by Drew Jones

Toward the end of last year, there were a number of headlines saying home prices were going to fall substantially in 2023. That led to a lot of fear and questions about whether there was going to be a repeat of the housing crash that happened back in 2008. But the headlines got it wrong.

While there was a slight home price correction after the sky-high price appreciation during the ‘unicorn’ years, nationally, home prices didn’t come crashing down. If anything, prices were a lot more resilient than many people expected.

Let’s take a look at some of the expert forecasts from late last year stacked against their most recent forecasts to show that even the experts recognize they were overly pessimistic.

Expert Home Price Forecasts: Then and Now

This visual shows the 2023 home price forecasts from seven organizations. It provides the original 2023 forecasts (released in late 2022) for what would happen to home prices by the end of this year and their most recently revised 2023 forecasts (see chart below):

As the red in the middle column shows, in all instances, their original forecast called for home prices to fall. But, if you look at the right column, you’ll see all experts have updated their projections for the year-end to show they expect prices to either be flat or have positive growth. That’s a significant change from the original negative numbers.

There are a number of reasons why home prices are so resilient to falling. As Odeta Kushi, Deputy Chief Economist at First American, says:

“One thing is for sure, having long-term, fixed-rate debt in the U.S. protects homeowners from payment shock, acts as an inflation hedge – your primary household expense doesn’t change when inflation rises – and is a reason why home prices in the U.S. are downside sticky.”

A Look Forward To Get Ahead of the Next Headlines

For home prices, you’re going to continue to see misleading media coverage in the months ahead. That’s because there’s seasonality to home price appreciation and they’re going to misunderstand that. Here’s what you need to know to get ahead of the next round of negative headlines.

As activity in the housing market slows at the end of this year (as it typically does each year), home price growth will slow too. But, this doesn’t mean prices are falling – it’s just that they’re not increasing as quickly as they were when the market was in the peak homebuying season.

Basically, deceleration of appreciation is not the same thing as home prices depreciating.

Bottom Line

The headlines have an impact, even if they’re not true. While the media said home prices would fall significantly in their coverage at the end of last year, that didn’t happen. Let’s connect so you have a trusted resource to help you separate fact from fiction with reliable data.

Market Update • September 11, 2023

Why It’s Still a Seller’s Market Today

by Drew Jones

Even though activity in the housing market has slowed from the frenzy that was the ‘unicorn’ years, it’s still a seller’s market because the supply of homes for sale is so low. But what does that really mean for you? And why are conditions today so good if you want to sell your house?

The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows housing supply is still astonishingly low. Housing inventory is measured by the number of available homes on the market. It’s also measured by months’ supply, meaning the number of months it would take to sell all those available homes based on current demand. In a balanced market, there’s usually about a six-month supply. Today, we have only about 3 months’ supply of homes at the current sales pace (see graph below):

As the visual shows, given the current inventory of homes, it’s still a seller’s market.

Today, we’re nowhere near what’s considered a balanced market. In fact, the current months’ supply is half of what’s typical of a normal market. That means there just aren’t enough homes to go around based on today’s buyer demand.

As Lawrence Yun, Chief Economist for NAR, says:

“There are simply not enough homes for sale. The market can easily absorb a doubling of inventory.”

How Does Being in a Seller’s Market Benefit You?

Sellers, these conditions give you a real edge. Right now, there are buyers who are ready, willing, and able to purchase a home. And, because there’s a shortage of homes up for sale, the ones that do hit the market are like magnets for those buyers.

If you work with a local real estate agent to list your house right now, in good condition, and at the right price, it could get a lot of attention. You might even end up with multiple offers.

Bottom Line

Today’s seller’s market sets you up with a big advantage when you sell your house. Because supply is so low, your house will be in the spotlight for motivated buyers who are craving more options. Let’s connect so you understand what’s happening in our local area as you get ready to enter the market.

Real Estate News • Selling Your House • August 13, 2023

There’s Only Half the Inventory of a Normal Housing Market Today

by Drew Jones

Wondering if it still makes sense to sell your house right now? The short answer is, yes. Especially if you consider how few homes there are for sale today.

You may have heard inventory is low right now, but you may not fully realize just how low or why that’s a perk when you go to sell your house. This graph from Calculated Risk can help put that into perspective:

As the graph shows, while housing inventory did grow slightly week-over-week (shown in the blue bar), overall supply is still low (shown in the red bars). Compared to the same week last year, supply is down roughly 10% – and it was already considered low at that time. But, if you look further back, you’ll see inventory is down even more significantly.

To gauge just how far off from normal today’s inventory is, let’s compare right now to 2019 (the last normal year in the market). When you compare the same week this year with the matching week in 2019, supply is about 50% lower. That means there are half the homes for sale now than there’d usually be.

The key takeaway? We’re still nowhere near what’s considered a balanced market. There’s plenty of demand for your house because there just aren’t enough homes to go around. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

“There are simply not enough homes for sale. The market can easily absorb a doubling of inventory.”

So, if you want to list your house, know that there’s only about half the inventory there’d usually be in a more normal year. That means your house will be in the spotlight if you sell now and you may see multiple offers and a fast home sale.

Bottom Line

With the number of homes for sale roughly half of what there’d usually be in a more normal year, you can rest assured there’s demand for your house. If you want to sell, let’s connect now so your house can shine above the rest while inventory is so low.

Real Estate News • Selling Your House • August 12, 2023

About 11,000 Houses Will Sell Today

by Drew Jones

Some homeowners have been waiting for months to put their house on the market because they don’t think people are buying homes right now. If that’s you, know that even though the housing market has slowed compared to the frenzy of a couple of years ago, it isn’t at a standstill. Contrary to what you may believe, buyers are still active and plenty of homes are selling right now.

According to the National Association of Realtors (NAR), based on the pace of sales right now, just over 4 million homes will sell this year. With some simple math, let’s break down what that really means for you:

4.16 million homes divided by 365 days in a year = 11,397 houses sell each day
11,397 divided by 24 hours in a day = 475 houses sell per hour
475 divided by 60 minutes in an hour = about 8 houses sell each minute

So, on average, about 11,000 homes sell each day in this country.

A real estate expert can give you more information about how many houses are being sold in your neighborhood, the amazing advantages that sellers are experiencing right now, and the most important things buyers are searching for in your area. Together you’ll use this knowledge to shape how you market your house based on local trends.

Bottom Line

If you’ve been waiting to sell because you don’t think there are buyers out there, know today’s market is active. Every day you wait, around 11,000 other homeowners are selling. In the time it took you to read this, eight homes sold. When you’re ready to sell too, let’s connect.

Real Estate News • August 11, 2023

The Value of an Agent When Buying Your New Construction Home

by Drew Jones

Buying a new construction home can be an exciting experience. From being the very first owner, to customizing your home’s features, there are a lot of benefits. But navigating the complexities of buying a home that’s under construction can also be a bit overwhelming. This is where a skilled real estate agent can make all the difference.

An article from The Mortgage Reports sums it up like this:

“Your Realtor or real estate agent will be key to helping you navigate this process. . . . they can guide you through construction and help anticipate and solve for any possible snags along the way.”

Here’s how your agent is an invaluable resource in your search to find and buy your new home.

Agents Know the Local Area and Market

Your agent is well-versed in the emerging communities and upcoming developments that could influence your decision. For example, you’ll want to be aware if there were any plans to construct a highway through the woods behind your prospective backyard. It’s important to consider how the neighborhood and the surrounding area might evolve before making your home purchase. Your agent can help you find a community that perfectly aligns with your preferences, lifestyle, and future needs.

Knowledge of Construction Quality and Builder Reputation

An agent also has the expertise to evaluate the construction quality and reputation of different builders. Their knowledge and experiences with local builders allow them to offer insights into each one’s track record, customer satisfaction, and construction practices. This information can help you avoid any potential risks and help you confidently select a builder known for delivering quality homes.

Assistance with Customization and Upgrades

The most obvious benefit of opting for new home construction is the opportunity to customize your home to suit your preferences. Your agent will guide you through that process and share advice on the upgrades that are most likely to add long-term value to your home. Their expertise ensures you focus your budget on areas that will give you the greatest return on your investment later on.

Understanding Builder Contracts and Negotiations

Builder contracts can be complex and differ from traditional home purchase agreements. Your agent can help you navigate these contracts to make sure you fully understand the terms and conditions. They’re also skilled negotiators who can advocate on your behalf, potentially securing better deals, upgrades, or incentives for you throughout the process.

Bottom Line

The guidance and expertise of a local real estate agent can make all the difference in turning your vision of the perfect home into a reality. Let’s connect so you can feel confident about purchasing your new construction home.