Buying a New Construction Home December 12, 2024

The Top 2 Reasons To Look at Newly Built Homes

When planning a move, a newly built home might not be the first thing that comes to mind. But with more brand-new homes on the market and builders focusing on smaller, more affordable options, this type of home may just be the key to crossing the homebuying finish line.

Here’s why a new build is worth considering – and how an agent can help you find one that meets your needs and your budget.

1. More Newly Built Homes Are Available Right Now

First, let’s break down the types of homes on the market. A newly built home is a house that was just built or is under construction. On the other hand, an existing home is one a homeowner has already lived in.

Right now, the number of existing homes for sale is still low. And, if you’re struggling to find something you like because there aren’t that many existing homes for sale, opening up your search to include brand-new homes could really expand your options. That’s because there are more newly built homes available right now than in a typical year (see graph below):

a graph of blue lines and white textFrom 1983 to 2019, newly built homes made up only 13% of the total inventory of homes for sale. Today, that number has climbed to 28.8%, according to the most recent data.

And as Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Even though existing home sales have been stuck at low levels, newly constructed home sales look to mark one of its best annual performance in 15 years . . . The new home inventory has been consistently rising with homebuilders getting active and making up around 1/3 of total inventory.” 

There are still more buyers than there are homes on the market. But the good news for you is this increase in newly built homes means more options for your search.

2. Newly Built Homes Are Becoming Less Expensive

Still skeptical if a new build is right for you or if they’re even in your budget? The average cost of newly built homes has actually come down from a year ago.

Why is that? Builders know affordability is top of mind for homebuyers right now. So they’re focusing their efforts on building smaller homes they can offer at lower price points and are more likely to sell. As Realtor.com says:

“Builders are increasingly bringing smaller, more affordable homes to the market, so buyers may find more newly-built homes that fit their budget.” 

Something to keep in mind: buying a newly built home isn’t the same as buying an existing one. Builder contracts have different fine print. So be sure to partner with your trusty real estate agent (it’s me!) who knows the market, builder reputations, and what to look for in those contracts.

Depending on your needs and budget, a new build might be the opportunity you’ve been waiting for to bring your homebuying vision to life. If you’re interested in a brand-new home, give me a call and we can look into the best options.

Home Maintenance November 14, 2024

6 No-Guilt Decluttering Tips for Thanksgiving

As Thanksgiving approaches, we’re encouraged to reflect on gratitude—not just for family, friends, and the good in our lives, but also for the space we live in. 

Ideally, our home provides peace, comfort, and a feeling of stability. But if clutter is making it feel more chaos than calm, it’s time to remove some stuff.  Having rooms filled with items we don’t need or love can really mess with our sense of comfort and even disrupt the natural energy in our living spaces. 

But, do you find it hard to get rid of things? And what about the items that were given as gifts? Sometimes guilt and obligation make us hold onto things.

How about some feng shui? Here are 6 ideas, inspired by feng shui principles, for decluttering with NO guilt. If you have some time, this is a great thing to do before the holidays so your home feels peaceful and balanced.

1. Release “Obligated” Items with Kindness

Many of us have items we keep out of obligation—whether they’re family heirlooms or gifts from friends that just don’t fit with our current life or style. 

According to feng shui, each object carries its own energy, and items that don’t feel aligned with who you are now can create emotional clutter. 

Instead of holding onto something out of guilt, try releasing it with gratitude. Thank it for its role in your life, then allow it to find a new home where it will be cherished and loved.

2. Let Go of Gifts That Don’t Reflect Who You Are

Gifts come from a place of love, but not every gift aligns with our personal energy or style. 

If you have gifts that feel like they belong in someone else’s home, it’s okay to let them go. Feng shui encourages letting go of things that don’t bring joy or match your energy. 

By parting with these items, you honor the intention behind the gift, keeping only those things that lift your spirit.

3. Release Items Tied to Past Relationships 

Objects can carry the energy of past relationships—whether it’s an old photograph, a forgotten memento, or something with sentimental weight. 

According to feng shui, holding onto items linked to past relationships can weigh down your heart and even affect the energy in your home. 

As you declutter, give yourself permission to let go of these items with compassion. This clears space for new relationships and experiences that align with who you are today.

4. Reconsider “Just-in-Case” Items

There’s always that closet, drawer, or box filled with “just-in-case” items—things you might need someday but haven’t touched in ages. 

Feng shui teaches that clutter, even hidden clutter, can stifle energy in a home. Holding on to items out of a “just-in-case” mindset creates a lack mentality, suggesting that you might need it because you won’t be able to find it later. 

Decluttering these items can bring a sense of abundance and trust that you’ll always have what you need. Embrace gratitude for what you have now and feel free to let go of what you don’t actively use.

5. Remove Items That No Longer Spark Joy

Marie Kondo popularized the “spark joy” approach, which is closely aligned with feng shui’s principle of surrounding yourself with uplifting energy. 

If something doesn’t bring you happiness, it probably isn’t contributing to the flow of positive energy in your home. 

As you declutter, give yourself permission to let go of anything that no longer makes you smile, even if it once did. This simple act can create a home filled with joy and gratitude for every item you choose to keep.

6. Make Space for New Beginnings

A great principle in feng shui is that empty space invites new energy, opportunity, and clarity. 

You don’t need to fill every corner; instead, create areas where energy can flow freely. 

As you declutter, focus on how much lighter and more open each room feels. This shift allows your home to be a place of peace and rest, filled only with items that support your goals and dreams.

In this month of gratitude and Thanksgiving, try approaching decluttering as a practice of gratitude and intention. You can release what no longer serves you without guilt, creating a home that truly feels like a reflection of you.

Home Maintenance November 13, 2024

Controlling Clutter with Kids: 10 Practical Tips for Keeping Your Home Organized

A few years back, I was at a birthday party for a friend of my then 3-year old daughter. The house was immaculate, and I mentioned it to the friend’s dad. I’ll never forget his response. He said, “it’s always like this. My wife trained me how to keep a tidy house a few years ago and it’s changed my life for the better ever since! I’ll never go back to being the messy guy I was before.” 

Unfortunately, I can’t say that I learned how to maintain a tidy house after that. But the concept that it’s possible, even with kids, has stuck with me. Because let’s be honest: managing clutter can be a mega challenge, and with kids added to the mix, it often feels pretty much impossible. 

So, in an effort to step on less Lego pieces in the future, I found these 10 ideas online that might be worth trying for keeping your home tidy when you have kids:

1. Keep the Toys Circulating: Rotate & Donate

Instead of keeping every toy out and accessible, try rotating your child’s toys every month or so. This keeps them entertained by making “old” toys feel new again and reduces clutter. Simply pack away half the toys and rotate them every few weeks.

And, before rotating them back in, ask yourself if it’s time to donate? This keeps toys circulating inside and outside of your home. It’s a win-win.

2. Assign a ‘Home’ for Every Item

Create designated spots for everything, from backpacks to books to building blocks. When each item has a “home,” it’s easier for everyone to know where things go. This is key for getting kids to help clean up – it’s so much easier for them when they know what to do.  

3. Use Clear Bins and Labels

Transparent bins are a game-changer for family organization. You can see what’s inside without opening every container, saving time and preventing spills. Label each bin (pictures work well for younger kids) to help everyone put things back where they belong.

4. Invest in Multi-functional Furniture

In small spaces, furniture that doubles as storage is essential. Ottomans that open up to store toys, beds with drawers underneath, and benches with cubbies are all perfect for keeping kids’ items organized and out of sight.

5. Establish a Daily Reset Routine

A 10-minute reset before bed can make a huge difference. Set a timer, turn on some music, and encourage everyone to pitch in. It’s amazing how much can get tidied up in a short time, and it helps start the next day with a clean slate.

6. Get Kids Involved in Decluttering

Kids are more likely to respect and maintain the organization if they’re part of the process. Make it a game, or let them be in charge of sorting toys into different bins. Teaching them about tidiness early on sets them up for future success.

7. Use Vertical Storage to Maximize Space

When floor space is limited, think vertical. Install shelves, hooks, and pegboards on the walls for everything from toys to art supplies. It keeps things accessible but out of the way, making your small space feel bigger and less cluttered.

8. Create a ‘Lost and Found’ Bin

Designate a basket as your family’s “lost and found.” If you find something misplaced, drop it in the bin. At the end of the week, everyone can retrieve their belongings from it. This cuts down on the scramble to find misplaced items daily.

9. Practice “One In, One Out” for New Items

For every new toy or item that comes into the house, try to donate or give away one thing that’s no longer used. This keeps things from piling up and encourages kids to value what they have, rather than accumulating items they’ll quickly forget.

10. Create Personal Spaces for Each Child

Even in small spaces, giving each kid a specific area for their belongings helps with organization. It might be a drawer, shelf, or cubby. When they have a spot for their treasures, they’re more likely to keep them tidy and less likely to add to the family clutter.

 

Will you give any of these a try? Putting some of these ideas into practice, especially before the holidays, could really help reduce stress and overwhelm. Here’s to less Lego injuries in 2025!  

Selling Your House November 13, 2024

4 Signs Your Home May Be Priced Too High

Seasonal Home Maintenance November 13, 2024

6 Easy Ways to Protect Your Home from Rain Damage

Buying a Home November 13, 2024

More Homes, Slower Price Growth – What It Means for You as a Buyer

There are more homes on the market right now than there have been in years – and that could be a game changer for you if you’re ready to buy. Let’s look at two reasons why.

1. You Have More Options To Choose From

A recent article from Realtor.com helps explain just how much the number of homes for sale has gone up this year:

“There were 29.2% more homes actively for sale on a typical day in October compared with the same time in 2023, marking the twelfth consecutive month of annual inventory growth and the highest count since December 2019.”

And while the number of homes on the market still isn’t quite back to where it was in the years leading up to the pandemic, this is definitely an improvement (see graph below):

a graph of a number of homesWith more homes available for sale now, you have more options to choose from. As Hannah Jones, Senior Economic Research Analyst at Realtor.comexplains:

“Though still lower than pre-pandemic, burgeoning home supply means buyers have more options . . .

That means you have a better chance of finding a house that meets your needs. It also means the buying process doesn’t have to feel quite as rushed, because more options on the market means you’ll likely face less competition from other buyers.

2. Home Price Growth Is Slowing

When there aren’t many homes for sale, buyers have to compete more fiercely for the ones that are available. That’s what happened a few years ago, and it’s what drove prices up so quickly.

But now, the increasing number of homes on the market is causing home price growth to slow down (see graph below):

a graph of green and blue linesIn certain markets, the number of available homes has not only bounced back to normal, but has even surpassed pre-pandemic levels. In those areas, home price growth has slowed or stalled completely. As Lance Lambert, Co-Founder of ResiClubexplains:

“Generally speaking, housing markets where active inventory has returned to pre-pandemic 2019 levels have seen home price growth soften or even decline outright from their 2022 peak.”

Slower or stalled price growth could give you a better chance of finding something within your budget. As Dr. Anju Vajja, Deputy Director at the Federal Housing Finance Agency (FHFA), says:

“For the third consecutive month U.S. house prices showed little movement . . . relatively flat house prices may improve housing affordability.

Of course, inventory levels and home prices are going to vary by market. If you’re looking to buy or sell, I’ll provide you with the local trends in your area.

More housing options – and the slower home price growth they bring – can help you find and buy a home that works for your lifestyle and budget. So don’t hesitate to reach out if you want to talk about the growing number of choices you have right now.

Selling Your House November 12, 2024

Setting the Right Asking Price

Selling Your House November 12, 2024

What’s Motivating Homeowners To Move Right Now

Over the past few years, some homeowners have decided to delay their move because they don’t want to sell and take on a higher mortgage rate on their next home.

Maybe you’re thinking the same thing? It’s a common roadblock and one of the biggest factors that’s kept the number of homes on the market so low for so long.

But a growing number of homeowners are deciding they just can’t wait any longer. Often, it’s because of personal or lifestyle change. As Redfin says:

“Some homeowners are opting to bite the bullet and give up their low rate in order to move. Many are selling because a major life event like a job change, or divorce . . .”

If you’re weighing the decision to move, take a look at some of the top reasons others are choosing to sell. You might find those are reason enough for you to move now, too.

It’s Time for a Change

A new job in a different city, a desire to be closer to family, or simply wanting a change of scenery can all spark the need to sell.

Let’s say you’ve landed a great job offer that requires relocating, listing your current home quickly may be the next logical step.

There’s Just Not Enough Space in Your Current House

Sometimes, your current home just doesn’t fit your lifestyle anymore. A growing family, the need for a home office, or more room for entertaining can all drive the decision to upgrade to a larger space.

Retirement or Wanting To Downsize

On the flip side, some homeowners are ready to downsize. This could be due to children moving out, retirement, or simply wanting less to maintain.

If you’re newly retired and dreaming of a simpler lifestyle, downsizing to a smaller home could free up both time and resources to enjoy this new chapter of life.

Changes in Relationship Status

Big changes like divorce, separation, or marriage often lead to a need for new living arrangements.

If you just went through a divorce, selling the house you once shared may allow both of you to move forward and find a living situation that works better for you now.

Health and Mobility Needs

Health concerns, especially those that affect mobility, can also drive the decision to sell. A home that once worked well might no longer suit your needs.

If this sounds like your experience right now, selling your current home to move into a more accessible space, or even using the proceeds for assisted living, could significantly improve your quality of life.

So, selling your home isn’t just about market conditions or mortgage rates—it’s also about making the best decision for your lifestyle and future:

“Deciding whether it’s the right time to sell your home is a very personal choice. There are numerous important questions to consider, both financial and lifestyle-based . . . Your future plans and goals should be a significant part of the equation.” (Bankrate)

If a major life change has you thinking about moving, now might still be the right time to sell. Let’s connect so you have an expert to help you navigate the process.

Local Market Update November 12, 2024

Seattle Real Estate: Current Market Outlook

In today’s economy, understanding the latest numbers can give us valuable insights into where things are headed. Windermere’s Principal Economist, Jeff Tucker, keeps us updated on the local market with short, helpful videos.

Using Jeff’s transcript, I’m providing a written breakdown of his latest 4-min video, which you can watch here:

Here’s a local look at the October 2024 from the Northwest MLS. All in all, this month showed a strong performance in our local housing market, especially in the single-family residential segment. 

To get a feel for our current market dynamics, let’s dig into 4 key market indicators: closed sales, pending sales, active listings, and median sales prices:  

  1. Closed Sales: In October, residential closed sales climbed significantly, with an increase of over 1,000 transactions compared to the same month last year, marking a 24% year-over-year rise. This indicates a solid demand from buyers.
  2. Pending Sales: A leading indicator of next month’s sales data, pending sales surged 27% from last year, suggesting strong buyer interest and momentum that’s likely to carry forward.
  3. Active listings: In terms of supply, listings are the reservoir of options for buyers. October saw a 24% increase in new listings, with overall inventory levels 25% higher than a year ago. 
  4. Median Sale Prices: The median closed sale price across the Northwest MLS rose 7%, from $625,000 last October to $671,000 this year. This growth reflects both increased demand and the wider range of active listings available to buyers, who responded to a summer decline in mortgage rates by stepping up purchase activity.

Overall, October’s data shows a market that is recalibrating toward a more balanced state, with robust buyer interest keeping momentum high.

A Closer Look at the Seattle Metro Area: King, Pierce, and Snohomish Counties

To get a deeper understanding of specific trends, let’s explore activity in the three counties comprising the Seattle metro area—King, Pierce, and Snohomish Counties.

  1. Sales Growth by County

King County: Residential closed sales rose an impressive 33% year-over-year. This area, including Seattle and Bellevue, saw a strong response from buyers.

Pierce County: Pierce County, which includes Tacoma, experienced a 26% increase in closed sales compared to last year.

Snohomish County: In Snohomish, home to cities like Everett, closed sales increased 20% year-over-year.

  1. Median Sale Prices by County

King County: The median sale price grew by 9%, reaching $960,000.

Pierce County: Pierce County’s median sale price rose 9%, up to $580,000.

Snohomish County: Snohomish saw the largest price growth, with an 11% increase, bringing the median price to $730,000.

  1. Pending Sales and Listings in the Seattle Metro

Pending sales continue to show strength across all three counties, with a notable 33% increase in King, 38% in Pierce, and 19% in Snohomish. These figures suggest strong buyer engagement and point to continued momentum.

The supply of active listings rose significantly, with increases of 25% in King County, 31% in Pierce, and 22% in Snohomish. The additional listings have provided buyers with more options, which is likely contributing to the increase in closed and pending sales.

What’s Next? A Preview of the Spring Market

This October report reveals signs of life returning to Washington’s local housing markets. Importantly, it’s a “proof of concept” that when mortgage rates dip closer to 6%, we see renewed energy and activity as people are ready to buy, sell, and move.

 If rates continue their downward trend this winter, we could see even greater enthusiasm and market activity during the spring selling season.

 

If you have any questions, please reach out anytime: drew@windermere.com.

Buying a Home November 7, 2024

Renting vs. Buying: The Net Worth Gap You Need To See

Trying to decide between renting or buying a home?

One key factor that could help you choose is just how much homeownership can grow your net worth.

Every three years, the Federal Reserve Board shares a report called the Survey of Consumer Finances (SCF). It shows how much wealth homeowners and renters have – and the difference is significant.

On average, a homeowner’s net worth is nearly 40 times higher than a renter’s. Check out the graph below to see the difference for yourself:

Why Homeowner Wealth Is So High

In the previous version of that report, the average homeowner’s net worth was about $255,000, while the average renter’s was just $6,300. That’s still a big gap. But in the most recent update, the spread got even bigger as homeowner wealth grew even more (see graph below):

a graph with green line and orange lineAs the SCF report says:

“. . . the 2019-2022 growth in median net worth was the largest three-year increase over the history of the modern SCF, more than double the next-largest one on record.”

One big reason why homeowner wealth shot up is home equity.

Equity is the difference between your home’s value and what you owe on your mortgage. You gain equity by paying down your mortgage and when your home’s value goes up.

Over the past few years, home prices have gone up a lot. That’s because there weren’t enough available homes for all the people who wanted one. This supply-demand imbalance pushed home prices up – and that translated into faster equity gains and even more net worth for homeowners.

If you’re still torn between whether to rent or buy, here’s what you should know. While inventory has grown this year, in most places, there’s still not enough to go around. That’s why expert forecasts show prices are expected to go up again next year nationally. It’ll just be at a more moderate pace.

While that’s not the sky-high appreciation we saw during the pandemic, it still means potential equity gains for you if you buy now. As Ksenia Potapov, Economist at First Americanexplains:

“Despite the risk of volatility in the housing market, homeownership remains an important driver of wealth accumulation and the largest source of total wealth among most households.”

But prices and inventory are going to vary by area. So, give me call if you’re thinking of making a move. I can provide local trends and data in areas you’re interested in and work with you to find a path towards your home ownership hopes and goals.

So, if you’re not sure if you should rent or buy, keep in mind that if you can make the numbers work, owning a home can really grow your wealth over time.