Since the onset of the COVID-19 pandemic reaching our region, I quickly shifted to updating you more frequently with information to help you stay informed on the real estate market. Since mid-March, I have been committed to gathering high-frequency data (micro-data) to help illustrate “Where We Are Now” and have provided this newsletter bi-monthly vs. monthly. I felt this was important as real estate is typically our biggest investment and the pandemic has certainly had its economic impact.

I have also closely followed Windermere’s Chief Economist Matthew Gardner, and Economist Steve Harney of Keeping Current Matters. They have both been knowledgeable guides and source their micro-data from various credible sources to help determine their conclusions. Check out Matthew’s latest video update below about the real estate market in relation to COVID-19.

The graphs below are a new data set I’ve been studying on a weekly basis. They compare the number of pending sales reported each week to the same week in 2019, which was another stellar year for our local real estate market. 2020 was outpacing 2019 when the National Emergency was declared and then dropped significantly once the Stay Home Orders were put in place in late March.

April stalled, and rightfully so: pending sales were down as people retreated into their homes and started new routines, such as working from home. As we ventured into May however, things changed. From mid-May until now, pending sales activity in both counties has started to reach or outpace 2019 numbers.

Spring is typically our peak season for real estate sales, and what is being made clear is that the historically-active spring market has now shifted to summer. As we come off the Summer Solstice and head into the warmer months, we are seeing tons of buyers out in the marketplace and a limited supply of available inventory. This combination has helped prices maintain, and in some areas appreciate.

One set of micro-data that is illustrating increased buyer demand is the uptick in mortgage applications. Last week, mortgage applications were up 20% over the same week last year. Note this is for purchase loans, not refinances. With the lowest rates we have ever seen in history it is no surprise that buyers are motivated to go secure a home with the lowest debt service ever!

Last week, the micro-data set of the recorded home-showing appointments displayed a 51% increase in showings over 2019! This is measured by comparing key box access compared to the same week last year. Demand certainly paused in the spring, but was not eliminated; it was being deferred to the summer. As we have reported from the beginning, this is a health crisis, not a housing crisis.

Our biggest challenge as we head into the peak summer months is the available inventory. We entered into 2020 with tight inventory to begin with, and COVID-19 has had a profound impact on the number of homes coming to market. We are expecting some homes to wait until the health crisis has passed, and others will be delayed by 45-60 days. Homes take time to prepare for market, and contractors and handy-persons were all at home in April, pushing prep time out to later spring/early summer for those ready to come to market.

We expect to see an increase in new listings as we head into July and August, which will be welcomed after a 40% deficit compared to 2019. Mortgage applications, historical interest rates, industries in our region that are thriving, and entering into Phase 2 are all micro-data sets that indicate strong buyer demand for the second half of 2020.

Unemployment numbers are also an important micro-data point to keep an eye on. Since the Stay Home Orders, initial unemployment claims have dropped significantly, but continued claims are maintaining. We anticipate the continued claims to reduce as more and more people return to work after being furloughed. Not all of those jobs will be recovered, indicating our greatest need for recovery.

The last three months have been an incredible journey helping people safely navigate the real estate market. Some folks just want to know that their nest egg is safe, and some are making actual moves. When COVID-19 hit there was a ton of uncertainty, we weren’t sure how this would play out in regards to housing. Since we went into this with a very formidable economy and housing values, we have sustained, and in some areas we are thriving. It has been remarkable to watch and be a part of. I am grateful every day that this is not the housing crash of 2008 all over again.

If you are curious about the value of your home in today’s market or are considering a move, please reach out. The interest rates are unbelievable and will greatly benefit those who take advantage of them. I am committed to safe business practices and follow all of the protocols put in place, which include mask-wearing, proper social distancing, and sanitizing. It is my goal to help keep my clients informed and empower strong, safe decisions, especially during unprecedented times. Thank you for your trust; I am honored to be your trusted advisor.

SHRED EVENT

NEW DATE! We are partnering with Confidential Data Disposal for our 9th year; providing you with a safe, eco-friendly way to reduce your paper trail and help prevent identity theft.

⯈ Saturday, July 18th, 10AM to 2PM
4211 Alderwood Mall Blvd, Lynnwood
Bring your sensitive documents to be professionally destroyed on-site. Limit 20 file boxes per visitor.

⯈ 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. Hope to see you there!

⯈ This is a no-contact, drive-through event. We ask that you stay in your vehicle and unlock your trunk or car door so that we can unload your boxes. We will be taking all proper precautions to keep everyone safe, including wearing PPE, maintaining distance, and using CDC-recommended disinfectants.

**This is a Paper-Only event. No x-rays, electronics, recyclables, or any other materials.

What is Happening with Home Prices?

It is without question we are living in one of the most unique times in all of our lives. Who would have thought we’d experience living life during a global pandemic? Beyond staying safe, adjusting daily habits, and navigating a changing economy, I’ve kept a very close eye on the housing market. With Windermere’s Chief Economist, Matthew Gardner as one of my guides, I am happy to report that housing has been a bright light in the economy during a very challenging time.

May unemployment numbers settled around 13%, an improvement over April, but still far from the 5% we started out with at the beginning of 2020. We are also embarking on our second quarter of retraction in GDP which is the textbook definition of a recession. Many experts are predicting a V-shaped recovery and I’d venture to say that we are currently at the bottom of the V. 

With stay-at-home orders being lifted or eased depending on what part of the country you live in, we are starting to see jobs come back.  Conversely, we are also seeing some industries thrive, but we will also witness some businesses be required to pivot to remain relevant or go away altogether. For example, tech is thriving and aerospace is not. The reorganization and re-prioritizing that is occurring will be impactful to many, some positive and some challenging.

In our region of the country, we entered into this pandemic with a thriving economy and a strong housing market. In January it was predicted that we would see a year-over-year price appreciation of around 5%. This health crisis will slow that level of appreciation, but we are not expecting losses.

Spring is typically our busiest time in the market with many sellers coming to market and buyers shopping in order to land in their new home by summer and the start of the fall school season. COVID-19 and the associated limitations in our daily activities along with employment disruption created a slowdown in our typical spring market. The largest impact has been the amount of available inventory to choose from. Amazingly, the housing market has continued to hum along with many buyers still eager to purchase. Inventory is down 40% year-over-year and buyer demand is strong, creating a frenzy in some price ranges and neighborhoods.

According to Joel Kan, Economist for the Mortgage Bankers Association mortgage applications are on the rise and up 5% from the same time last year. Summer is looking to be the re-invented spring market as our country starts to re-open. Interest rates are the lowest they have ever been, which is encouraging buyers to act and creating a good-sized audience for sellers.

Below is a video where Matthew speaks to his predicted trajectory for home prices as we travel through the second half of 2020 and beyond. Also, note below the latest statistic for both King and Snohomish Counties for the month of May.

It is always my goal to report real-time numbers from the front lines and do my best to explain what is happening.  I choose to look at the numbers in tight snippets week-by-week and also dig deep on year-over-year numbers. Right now, we are reporting growth from March and starting to return to the same amount of activity that we saw at the same time last year. We must keep a close eye on unemployment figures and mortgage forbearance reporting, both of which are improving but still have a ways to go.

It is my goal to help keep my clients informed and empower strong decisions by studying the stats and reporting my day-to-day observations. Please reach out if you or someone you know has questions or concerns. These are unprecedented times and knowledge is one of your most powerful tools. I am honored to be your trusted advisor.

 Congrats Class of 2020!

The class of 2020 deserves a huge congratulations! The milestone of finishing elementary school, junior high, high school or college is always worth noting, but this class is extra-special!! They have navigated distance learning and missed out on the proper celebrations, but they’ve shown resilience and finished strong. The world is proud of you and so am I!

A heartfelt thank you to all the teachers, administrators and staff that helped guide all the students this school year!  Distance learning is not for the faint of heart and the teachers are amongst the heroes during this challenging time!

Are we Headed Towards a Repeat of the 2008 Housing Meltdown?

The pressure the COVID-19 global pandemic is putting on the economy is a reality. As a real estate broker, I take great pride in having the honor of being your trusted advisor when it comes to your investment in the housing market and protecting the value of your home. I have been asked several times, “Is this the Great Recession all over again?”

At Windermere, we have continued to rely on the expertise of Matthew Gardner, Windermere’s Chief Economist. Above is a chart he shared from Black Knight Financial comparing the housing market as we headed into this global health crisis versus the start of the Great Recession in 2007. Below is an 11-minute video going over the chart line by line. I urge you to watch the video and key in to his expertise versus what you might hear in the media. Matthew predicted the Great Recession and does not shy away from heeding the truth, even if it is not great news. I trust him and I hope you do too.

Bottom line, we are heading into this economic challenge with a much more formidable foundation based on more stringent lending practices, higher equity levels, and we are anticipating a shorter 1-2 year V-shaped recovery, compared to the long U-shaped recovery of the 5-year Great Recession. In fact, we have seen pending sales rise over the last three consecutive weeks, some even with multiple offers. Every neighborhood and every price-point has its own story. Please reach out with any questions or concerns. It is my goal to help keep you informed and empower strong decisions.

We’re on a mission to help our local food banks keep their shelves stocked during this uncertain time. For every dollar our office raises, the Windermere Foundation is matching up to $3,500 through May 5th! This is a part of a total of $250,000 in matching funds from the Windermere Foundation, with the goal to give $500,000 to food banks across the areas that Windermere serves.

The need has never been greater, so we’re partnering with the trusted Volunteers of America (VOA) of Snohomish County, who know how to stretch every dollar to its fullest extent and successfully manage many of the food banks and food pantries across the county. In addition, a portion of the total raised will go towards buying vegetable starts for the Martha Perry Veggie Garden (MPVG) managed by the Snohomish Garden Club (SGC) – which will supply local food banks with thousands of pounds of fresh produce throughout the summer and early fall. 

Our team of agents at Windermere North will be planting close to an acre of starts on behalf of the VOA at the MPVG with the SGC the end of May into early June in small groups practicing proper social distancing. We have done this project for three years as a larger group and we are thrilled to creatively get it done this year. Food Banks have always coveted fresh produce and this effort will be more meaningful than ever this year.  

If you are able to give, any amount will help make an impact and directly benefit our Neighbors in Need: gf.me/u/xy7ikd

Thank you!!

Due to the Stay Home, Stay Healthy orders being extended through May 4th, our annual Shred Event & Food Drive has been postponed to July 18, the first Saturday after the new income tax filing deadline. The safety of the attendees, our agents, staff and the public at large is our highest priority. We sincerely apologize for any inconvenience this may cause and look forward to seeing you in July!

This is our 9th year partnering with Confidential Data Disposal; providing you with a safe, eco-friendly way to reduce your paper trail and help prevent identity theft.

Saturday, July 18th, 10AM to 2PM
4211 Alderwood Mall Blvd, Lynnwood.
Bring your sensitive documents to be professionally destroyed on-site. Limit 20 file boxes per visitor.

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.

**This is a Paper-Only event. No x-rays, electronics, recyclables, or any other materials.

As we head into week four of the Stay Home/Stay Healthy orders in Washington State, I turn my thoughts towards my gratitude for housing. It’s safe to say that over the last few weeks we’ve become quite intimate with our four walls, the brick and mortar that we call home. Concrete, steel, wood, and glass make up the structure that keeps us safe and protected, but it’s who and what is inside that makes it a home.

I don’t know about you, but I’ve never spent so much time in my home. This has developed a greater appreciation of the little things that make it special and even an acceptance of my not-so-favorite features. That quiet corner I can sneak away to, a blooming spring garden, a functional kitchen to create meals, and the community that surrounds us during a time of isolation are just a few items on my list of thank-yous. Our homes have become our sanctuaries, now more than ever. It goes beyond the sticks and stones that hold it upright; it is the heart in which our lives are pulsing.

I’ve always taken my role in helping people with their housing very seriously. To be asked to assist people in the purchase or sale of their home is an honor. The careful steps taken to protect liabilities and keen negotiations to ensure the highest and best value are very important components and ones I have a passion for. Now though, envisioning the connection one has or could have with a home is seen more deeply.

It is customary to have a list of features that one desires in a home and to pursue those features in the hunt for new housing or to celebrate them when selling. Buying and selling real estate is an emotional process and this experience has highlighted that connection more than I’ve ever realized before. Navigating finances is sensitive, but getting to the core of where you will spend your days or say good-bye to the place that housed you is meaningful. I’ve always seen real estate as a relationship business; while we do transactions that have a beginning and an end, the relationships are ongoing beyond the closing of a sale.

I wanted to take this time to say thank you for allowing me to be your trusted advisor when it comes to your housing. It means a lot to be a part of something so special and important in people’s lives. Also, just a reminder to please use me as a resource if you need any help maintaining your home. I have a list of reputable contractors and service providers that can help you care for your home should you have something break or want to make an improvement.

We’ve never navigated an environment like this before and I am committed to helping you stay informed.  I’m happy to report that we are still seeing positive real estate activity happening during the Stay Home/Stay Healthy orders. My next newsletter, in two weeks will re-cap the latest statistics and will start to tell the more complete story of COVID-19 and real estate. We headed into this health crisis on the shoulders of a very strong first quarter in real estate and still have many positive economic influences in the PNW. I am certain there will be pent up demand on the other side of this historical time and I am hopeful many jobs will return. Stay tuned for this upcoming report and please reach out if you’d like to discuss now. In the meantime, I wish you and yours good health, a warm heart, and a happy home. Be well!

Stay Home, Stay Healthy: The Impact on Real Estate

Things are changing rapidly these days, and if I had a dollar for how many times I have said “one day-at-a-time” over the last two weeks, I’d have a nice stack of cash. There are lots of questions swirling about simple everyday life and big life decisions like buying and selling real estate. I’m a believer in studying the numbers and sharing that data. It has always been my practice in my business to provide my clients with the information they need to help empower their decisions. With that said, I did a real-time pull of numbers on 3/18/20 in order to gain some understanding of the current trends amongst the COVID-19 outbreak.

I pulled three different market areas: Lake Stevens (North Snohomish County), Lynnwood (South Snohomish County) and Shoreline (North King County). I felt this would give a good representation of some different geographical markets and would avoid making any sweeping observations.

Below is an accounting of all of the active listings on the market in each of these cities along with all of the sales that went under contract from 3/11/20 to 3/18/20 (pulled around 1:30 pm PST) and the percentage relationship between those numbers. As you can see, we have had quite a bit of sales activity over the last week. Schools shut down through April 24th on 3/12/20 and restaurants and bars closed for dine-in business on 3/16/20, and homes continued to sell. We are certain that the historically low interest rates are fueling this demand. As of 3/17/20, the rate for a conventional, conforming loan was right around 3.5 – 3.65%.

Below you can see a chart that reports the average days on market for the homes that are currently active and the homes that went under contract over the last week. The average days on market for the homes that were absorbed over the last week were markedly shorter, indicating that the homes that sold were newer to the market, well-presented, and appropriately priced. The longer market times for the actives indicate possible overpricing, as the average days on market for the month of February were 27 for Lake Stevens, 53 for Lynnwood, and 50 for Shoreline. This also shows a trend for March average days on market to be shorter than February.

The last set of data that I pulled below is the average prices of the active listings and the average prices of the homes that went under contract last week. These percentage differences are in line with a similar comparison from February. In February, the percentage difference in the average active list price to the sold price was -22% in Lake Stevens, -9% in Lynnwood, and -29% in Shoreline. Since the under-contract sales have not published a closed sale price yet, we cannot take into consideration if there were any escalations above the list price. With the shorter-than-normal days on market and the stories I am hearing on the front lines of multiple offers, I believe we will have some escalations reported once these transactions close. I am sure there will be some concessions reported as well.

You may be wondering if this is still a good time to buy or sell, and the answer to that is different for each person. What I can say with certainty is that I am committed to bringing current facts and statistics to our conversations, and answering your questions as best I can. I hope you found the above figures to be encouraging, I did! Real estate is a cyclical business, and although the current economic shifts may be unsettling, we have weathered these cycles before. At this moment, record-low interest rates and low inventory are creating continued demand for homes, and from the figures reported, homes are going under contract. This is what I know today, and I felt it was worth sharing.

Below is a video from Windermere’s Chief Economist, Matthew Gardner that was released on Monday, 3/16/20 assessing the fate of the Greater Seattle real estate market during this time. Please contact me with your questions and concerns, I am here to help keep you informed!

Be well!

At this time, we are still planning to hold our annual Shred Event and Food Drive on April 18th. We will update you if anything changes due to crowd requirements and your safety.

This event will be vitally necessary to help stock our local food bank, which is struggling to meet demands. We also know that since many of you are staying home for extended periods of time, you will be cleaning and organizing, and will need the shredding services come April. We hope to meet these needs and bring our community together in a safe way.

Celebrate Earth Day with us! We are partnering with Confidential Data Disposal for our 9th year; providing you with a safe, eco-friendly way to reduce your paper trail and help prevent identity theft.

Saturday, April 18th, 10AM to 2PM
4211 Alderwood Mall Blvd, Lynnwood
Bring your sensitive documents to be professionally destroyed on-site. Limit 20 file boxes per visitor.

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.

Hope to see you there!

**This is a Paper-Only event. No x-rays, electronics, recyclables, or any other materials

One of the most important lessons I’ve learned is the power of mindset. It is proven that what you focus on, expands. Setting aside time every day to focus on gratitude has been hugely beneficial in my business as well as my personal life, and I am finding this discipline to be even more important in today’s uncertain world. We are surrounded with scary news, unprecedented government announcements, and a whole lot of uncertainty. We are in uncharted territory, but the one thing we do have control over, is our own mindset.

Here are a few practical ideas to foster positivity in your life.

Daily Gratitudes. Carve out just a few minutes every day to write down two or three things you are grateful for. Make this part of your morning routine to help center yourself before the day begins, or part of your evening routine to help calm your mind before bed.

Savor small moments. No matter what situation you find yourself in, there are still many small moments to be enjoyed. The smell of coffee in the morning, or the quiet house in the evening when the children are all asleep. A hot shower or a luxurious lotion. Don’t rush through these. Stop and take a moment to really enjoy.

Look to the past. Humans are resilient. You have weathered uncertain times before, perhaps during the Great Recession, 9/11, or a major natural disaster. You made it through those, and you are stronger and better for the experience. Take a moment to look back at all you have been through as a reminder of your own resilience.

Follow social media accounts that provide good news only. There is quite a bit of doom and gloom out there right now. In addition to watching some funny YouTube videos or some heart-warming animal stories on Facebook, make sure you are plugged in and following some accounts that are all good, all the time. Some good ones on Facebook are

@GoodNewsGMA

@TanksGoodNews

@GoodNewsMove

If you’re on Instagram, be sure to check out

@Good

@UpWorthy

@TanksGoodNews

@GoodNews_Movement

Take social media breaks. This will be important. Not only because social media can be a hotbed of misinformation, but it can also provide an overload of general information. Many people are beginning to feel overwhelmed with the sheer amount of news, suggested kids activities, and overall noise happening on all social channels right now. Take some time every day to be intentional about closing these apps, putting your phone or laptop away, and focusing your attention on something else. #DigitalDetox

Above all, be deliberate with integrating positivity into your daily life, knowing that together, we will get through this.

If you have ideas of how to stay positive, please share them with me!

Most recently, we have experienced an uptick in market activity. In fact, King County saw a 35% increase in pending sales from December to January, and Snohomish County 38%. The seasonal uptick from the holidays to the New Year is normal, but it was quite sizable. This is reinforced by a 6% increase in pending activity this January over last January in King County, and a 10% increase in Snohomish County. This increase is being driven by multiple factors, such as our thriving economy and growing job market, generational shifts and historically low interest rates.

Currently, rates are as low as 3.5% for a 30-year fixed conventional mortgage – 1 point down from the fourth quarter of 2019. Moreover, the interest rate is down 1.75 points from 2 years ago. These levels are unprecedented!  The current rates are as low as they have been in 3 years. This is meaningful because the rule of thumb is that for every one-point decrease in interest rate, a buyer gains ten percent in purchase power. For example, if a buyer is shopping for a $500,000 home and the rate decreases by a point during their search, the buyer could increase their purchase price to $550,000 and keep the same monthly payment.

Why is this important to pay attention to? Affordability! The Greater Seattle area is not an inexpensive place to own a home; we have seen strong appreciation over the last 7 years due to the growth of the job market and overall economy. The interest rate 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 balancing out of home-price appreciation. Complete year-over-year, prices are flat in King County and up around 3% in Snohomish County. Note that from 2018 to 2019 we saw an 8% increase in prices in both King and Snohomish Counties. Price appreciation is adjusting to more normal levels and is predicted to increase 5-7% in 2020 over 2019.

As we head into the 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 opportunities 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 refinance in 2015-2017, will consider giving up that lower rate for the right move-up house now that rates would be a lateral move or possibly even lower.

This recent decrease in rate is making the move-up market come alive.  Baby Boomers and Gen X’er’s are equity rich and able to make moves to their next upgraded home or fulfill their retirement dreams. 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 getting married, starting families, and buying real estate.

Will these rates last forever? Simply put, no! Right now is a historical low, and depending on economic factors rates could inch up.  According to Matthew Gardner, Windermere’s Chief Economist, rates should hover around 4% throughout 2020. While still staying well below the long-term average of 7.99%, 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 long-term 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.  There are some pretty exciting money saving opportunities for people to take advantage of right now.

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 your lifestyle and investment.

Celebrate Earth Day with us! We are partnering with Confidential Data Disposal for our 9th year; providing you with a safe, eco-friendly way to reduce your paper trail and help prevent identity theft.

Saturday, April 18th, 10AM to 2PM
4211 Alderwood Mall Blvd, Lynnwood
Bring your sensitive documents to be professionally destroyed on-site. Limit 20 file boxes per visitor.

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.

Hope to see you there!

**This is a Paper-Only event. No x-rays, electronics, recyclables, or any other materials.

It’s a great time to begin preparing your home for spring. Here are a few general home maintenance tips to consider this time of year.

• Clean the kitchen exhaust hood & filter.
• Replace the furnace filter. It may be especially filthy after the winter months.
• Inspect the roof for water damage. It’s also a good idea to check any fences, carports and sheds. TIP: check the south end of your roof first; it is the first to show wear.
• Test the batteries in all smoke and carbon monoxide detectors.
• Clear the gutters of any buildup to allow for proper functioning.
• Start the grass revival cycle by aerating, thatching and fertilizing.
• Be sure no inside or outside vents are blocked by fallen debris.
• Clean the windows and screens. Repair any holes in screens or replace them if needed.
• Inspect and repair siding and peeling paint. Fix or replace damaged siding. Strip peeling paint and replace it with a new coat.
• Check the basement for water damage. Pay attention to musty smells, water stain and damp surfaces.
• Invest in a carbon monoxide detector – every home should have at least one.

Last month, I did an analysis on the new phenomenon of a dual market. A dual market is when you have different market conditions within the same overarching real estate market. This duality presents amazing opportunities for sellers who are also buyers, depending on where they want to go. I reported on two dual markets, the move-up market and the move-out market. Another dual market that deserves to be shared is the condo market compared to single-family residential.

In September, single-family residential homes in Seattle Metro had an absorption rate of 43% while condos were at 27%. Months of inventory based on pending sales for single-family residential was only 1.9 months of available inventory, and condos, 3.5 months! That is the difference of a seller’s market for single-family residential to a balanced market for condos. After many solid years of strong appreciation, folks that are looking to cash out the equity on their single-family residential homes and move to a condo have the opportunity to move their investment with a sizable down payment and upgrade to a lifestyle that is often stair-free with less maintenance.

The median price for a condo in Seattle Metro in September was $455,000 and for a single-family residential home, $750,000. The median price for a condo in south Snohomish County is September was $343,000 and for a single-family residential home, $569,000. It is common for folks to sell their long-time family home and downsize into a condo and pay all cash. The buildup of equity over the years and paying down their loans allow for large cash-outs and easier all-cash purchases.

If one is getting a loan though, it is important to highlight today’s interest rates. They are a point lower than they were a year ago, affording buyers 10% more buying power. For example, a one-point-lower rate on a purchase at $500K will now afford a buyer the purchase of a home at $550K with the same monthly payment. Couple that with price appreciation tempering and you have a perfect downsizing market, which often includes condo purchases!

If you are curious about moving from a single-family home to a condo and the opportunity this dual market presents, please reach out. It is my goal to help keep my clients educated and empowered to make strong decisions. This is especially rewarding when it leads to their next chapter in life, which are amazing transitions to be a part of.

Did you know that giving thanks on a daily basis can reduce your trips to the doctor, increase your overall happiness, improve personal relationships, and lead to more exercise? Sounds like a magic pill to me, and it’s free! Harvard Medical School recently released a study that speaks to the benefits of practicing gratitude. With Thanksgiving approaching, challenge yourself to write down your gratitudes daily, and see how it goes.

Download your FREE printable gratitude journal here.

It’s true! A listing agent’s goal is to get their listing sold to a qualified buyer who will close. However, a good listing agent also realizes that once a home is under contract, they now have to sell the house to the appraiser if the buyer is getting a loan. You see, a buyer cannot complete their financing if the appraisal does not come in at the same value or higher than the agreed-upon contract price. A good strategy, especially if the price escalates above the list price, is for the listing agent to prepare an appraisal packet and meet the appraiser or share it with them via email. This gives the listing agent the opportunity to share their research and the story of the demand surrounding the property. This is some extra effort, but so worth it to ensure success for the seller!