QUARTERLY REPORTS Q3 2024

by Kristine Stevens

The third quarter saw an increase in inventory, a decrease in interest rates, and continued price stability. Interest rates continue to be volatile, and in Q3 they came down by almost 2 points year over year. This caused more buyers to enter the market and pending sales to rise. The number of available listings has improved after a very tight start to the year. Some sellers have been willing to forego their previous low rates for a new house, creating more movement in the market. The combination of lower rates and more selection should have buyers excited to make a move. Equity levels remain strong in our region as prices have remained steady and appreciated year over year.

If you are curious about how market conditions affect you, please reach out. We aim to educate our clients to empower strong decisions.

Living • Market Update • Monthly Newsletter • The More you Know • October 29, 2024

What is your home worth, and why do you want to know?

by Kristine Stevens

Your home is your shelter where you make memories, a large part of your financial nest egg, and a vehicle for creating wealth. Knowing what your home is worth is empowering and important. The reasons that may come up when you need to know your home’s value can have a direct impact on your financial health. Do you need to update your insurance, do some estate, tax, or financial planning, prepare for a re-finance, line of credit, or remodel, or are you considering a move? Relying on accurate home valuations for all of these endeavors will result in the best outcome.

To estimate your home’s value, you can easily jump on a public website that will spit out a value. This is called an AVM (Automated Valuation Model). There are a handful of free ones such as Zillow, Redfin, and RealEstimate. These sites are free for the consumer to visit and are based on a unique AI-generated algorithm that is typically a recipe of tax assessment data, CPI figures, market trend data, computer-picked comparable properties, and user-submitted data. They do not take into consideration important value points such as the condition of your home, improvements you’ve made, or nuances of the neighborhood; factors that only an actual person can evaluate.

It is important to note that on all three of these free sites, the algorithm and AVM tool are funded by the advertisers on the site, which are real estate brokers and lenders who want your business. The AVM is the carrot to get you in front of these high-paying advertisers who hope you click to connect so they can convert you into their real estate client. This is unlike the relationship-based business that we foster; this is more of a “sales-y,” transactional approach. Despite the sharks in the water, an AVM is a good starting point, like dipping your toe in the pool, but don’t get bit!

Here are the current AVM (Automated Valuation Model) values for a subject home from four sources (3 free and 1 fee-based). As you can see, the values vary. If you have a need to know the value of your home, don’t rely on an algorithm. According to Zillow, their accuracy varies by 7.49%; that is a huge variation! For example, that is $75,000, either high or low, for a $1M home. Depending on what you are planning for, that inaccuracy can severely cost you.

The AVMs above vary by 58%. If you apply the average Zillow accuracy percentage, the Zestimate® above could be off by $143,000 or more. It is important in this new world of AI that we do not underestimate the power of the human algorithm. Evaluating a home with all 5 senses, experience, and expertise is critical in establishing a home’s true value. Just like AVMs that vary, it matters who you align with, too. Hungry sharks who are paying to find clients, brokers who sell real estate as a hobby or side hustle, or brokers who are not engaged can all be detrimental. Seek out a professional who is committed to their craft, a student of the market, and up-to-date on market trends when you are assessing your largest asset.

If you want more precise information, consult trusted advisors like us. By selecting accurate, comparable properties and analyzing today’s market trends, we will provide you with a much more comprehensive evaluation of your home’s value relative to its specific features, condition, and location. Please reach out if you are interested in having us tour your home and complete a Comparative Market Analysis (CMA) so you can plan for your future with confidence.

Lynnwood • Market Update • Monthly Newsletter • North King County • South Snohomish County • October 8, 2024

Interest Rates Falling & Inventory Rising: Opportunity Knocks!

by Kristine Stevens

As we celebrate the start of autumn, the season of change, the leaves on the trees are not the only things that are falling. Interest rates have gradually fallen throughout the year. Just 11 months ago, rates were almost 2 points higher; in the frothy spring market, they were nearly 1.5 points higher. During this same time, the median price in King County and Snohomish County grew. In King County, the median price was recorded at $975,000 this August and at $775,000 in Snohomish County, which are both up 7% year-over-year from August 2023.

Another trend that we are witnessing is a rise in available inventory for sale. August recorded the highest level of available homes for sale since the fall of 2022, two years ago. There were 3,105 available homes for sale in King County in August 2024 compared to 1,207 in January 2024, and 1,147 in Snohomish County in August 2024 compared to 374 in January 2024.

The combination of lower borrowing costs and more selection should be a welcome change for buyers. When the inventory was much tighter in the first half of 2024 and interest rates were higher, prices were increasing at a rapid rate. We are starting to see new buyers enter the market and some who have sidelined themselves return. This indicates that prices will remain stable as we finish out 2024.

Currently, buyers have more selection and the opportunity to grab a lower monthly payment. As you can see from the chart below, buyers have a significant opportunity to afford a higher price point at a lower rate or stay at the same price point and have a lower monthly payment. The reduction in rate over the last year is reducing monthly payments and creating great long-term savings over the life of the loan. The rule of thumb for affordability is a 1-point shift in rate affects a buyer’s buying power by 10%. For example, a home priced at $800,000 with a 7% interest rate will have a similar monthly payment as a home at $880,000 with a 6% rate.

The hesitation we are seeing in the marketplace is a desire for rates to come down even further. The good news is that they are predicted to continue this gradual decline. Where we are concerned is a decrease in selection. If we look at seasonality, it is common for inventory to be low in the first half of the year, especially in Q1 (see the King & Snohomish graphs above). If rates continue their slide and fewer new listings come to market, buyers will find themselves duking it out in 2025. Right now, while there are multiple offers on some properties, there are more properties that are being negotiated into contracts with one buyer.

This has created a more nimble market, particularly for buyers who also have to sell their homes to reposition their equity into a downpayment. While tight inventory provides great leverage for a seller, many sellers are also buyers. Analyzing the market conditions to align the environmental influences to create the best possible outcome for your goals is paramount, and it will not be the same for everyone. Depending on our client’s goals, timing can vary.

Oh, and another sentiment we often hear is, “Will rates under 5% ever be back?” That is rather unlikely and will go down as a historic time in our economy. With that said, if you are in your “forever home” and you captured a historically low rate, kudos to you! Truly, so awesome! If you are not in the home that is right for you, now may be the time to curate a plan to get you into your next home. If homes were selling at a rapid rate and prices were appreciating this last spring with 10% less buyer power, we imagine next spring will be much of the same, if not more.

One final item to note is the election. History shows that post-election year markets are brisk with sales and experience price growth and rate decreases. We are paying attention to key indicators such as inflation figures, unemployment measurements, the gap between the 10-year treasury yield and mortgage rates, and our local market conditions in order to provide our clients with the most accurate and up-to-date information to empower strong decisions.

Are you curious how all of this affects you? Real estate is the number one tool for building wealth, and you also get to live there. We think that is pretty important, and we love nothing more than providing valuable insights, having strategic conversations, and helping people align their homes with their lives. Home is where the heart is and also where your nest egg has the most reliable long-term growth. Please reach out if you’d like to dig into the details and apply them to your housing and investment goals.

Eastside • Lynnwood • Market Update • Monthly Newsletter • North King County • North Snohomish County • September 26, 2024

End of Summer Market Update

by Kristine Stevens

Summer 2024 welcomed an increase in available inventory, a drop in interest rates, and continued price stability, which has upheld strong home equity levels. After a double-digit ramp-up in price appreciation in the first half of 2024, prices have slightly come off the peak of May 2024 and found stability. This trend is historically consistent with seasonal patterns and nothing to be alarmed about.

Increased selection for buyers was a welcome relief as inventory was extremely tight in the spring. While there are still homes getting multiple offers and escalating, we have also seen some buyers make purchases contingent on the sale of their current home. The market has become a bit more nimble for buyer’s terms in some cases. It is important to understand the nuances of each location, product, and price point, as the environment can vary which would indicate whether a buyer would need to compete or be able to negotiate more.

These trends are coupled with rates dropping below 7% in June and they have recently sat in the mid-6%. Rates were a point and a half higher in October 2023; this is a great improvement! We anticipate rates slowly dropping further which will put upward pressure on prices. The Fed meets again this month and if rates come down even more, buyer activity will increase. Between the lower rates and higher inventory, buyers should be excited and ready to act!

As you can see from the chart below, this shift in rate directly relates to a buyer’s monthly payment. Homes are expensive, so the cost to carry a loan is critical. These recent drops are helping out and should be paid close attention to as buyers are payment-driven in most cases. The opportunity to secure a home now with today’s rate could mean a buyer could enjoy a stable price and choose to re-finance or adjust to a lower rate later keeping their same basis. Buyers should also understand that homeownership is a key component to building wealth.

We anticipate a healthy late summer and fall market. Over the Labor Day Weekend, buyer traffic was busy despite the holiday and activity is bubbling up. The lower rates are helping some folks jump off the fence. Even some sellers are getting ready to sell and relinquish their lower rate, so they can move to a home that better fits their needs. We’re excited about the real estate market for the remainder of 2024 and into 2025. If you are curious about how the trends relate to your goals, please reach out. We are committed to staying connected and up-to-date on the latest trends so our clients make well-informed decisions.

Market Update • Monthly Newsletter • July 8, 2024

Half Way Through 2024: Mid-Year Opportunities in the Real Estate Market

by Kristine Stevens

As we approach the mid-point of the year, we want to take a moment to explain all that has happened in the 2024 real estate market and where we might be headed. We have had strong price growth since December 2023, and in May 2024 prices matched the peak we saw in spring 2022. The interest rate increase and inflation-induced correction that took place in the spring of 2022 has shown very strong signs of recovery and stabilization. The chart below shows the last 17 months of median prices in both King and Snohomish Counties and also tracks the ebb and flow of interest rates.

Despite interest rates fluctuating between 6.75-7.5% from January through May 2024, price growth has been on an upward trajectory. Most recently, rates have hovered close to 7%. Inventory started the year very low! In King County, there were only 1,324 new listings in January and 534 in Snohomish County. This trend continued throughout Q1 2024 and has started to increase in Q2. In May 2024 there were 3,245 new listings in King County and 1,272 in Snohomish County. That was a 145% increase in King County from January to May and 138% in Snohomish County. Markedly, there was a 27% jump in new listings from April 2024 to May 2024 in King County and 34% in Snohomish County.

Adequate selection for buyers was limited, which drove prices up over the past five months. Buyers are starting to see some relief! There is healthy net in-migration into the Greater Seattle area, a stable job market, and the Millennial generation is out in force making their first purchases and some even moving up from their first homes. Since December 2023, the median price in King and Snohomish Counties has increased by 21%. One must take seasonality into account which elevates that growth, but there has certainly been a recovery in home values in the correction. Sellers are sitting on tons of equity as it was measured in November 2023 that homeowners in King County had at least 60% home equity and 57.5% in Snohomish County. This figure does not take into account the price growth we have seen in 2024 thus far.

So, what does all of this mean going forward? We typically will reach our seasonal peak in prices in May or June. This phenomenon is a result of price growth decelerating due to inventory growth over the second half of the year. The rate of price growth will slow as more homes come to market; this is not price depreciation, but deceleration. Homeowners are standing on the shoulders of immense growth over the last 5 months and need to keep that and the long-term growth in perspective. If the rapid rate of price growth continued, it would not be sustainable and would create market volatility. Moderation and price stability benefit the overall health of the real estate market and economy over prolonged extreme price increases.

As we head into the summer months, we anticipate more selection for buyers which will temper price growth. Sellers will enjoy the gains that have been made over the last 2 years and so far in 2024, not to mention the last 10 years. The recent increase in inventory has given buyers more opportunities to make a move. The constriction we started the year off with was restrictive for some buyers to enter the market and we see that changing. Buyers who were discouraged earlier this year may consider re-engaging so they can benefit from the increase in selection.

As far as interest rates, experts predict they will slowly recede and be dependent on inflation calming which has been stubborn. Affordability has been a dance of balancing home prices, rates, and monthly payments. Some buyers have been creative with rate buy-downs to manage the monthly expense, and some are purchasing based on today’s rates with the hope of re-financing in the future. A sound piece of advice for buyers is to buy based on payment, not on the peak of what you can qualify for. Your monthly output needs to be sustainable and somewhat comfortable to make sense.

Real estate is an investment and a key component to building wealth. While it might seem scary or risky to make a purchase, the long-term gains are favorable in comparison to other investment vehicles. Plus, you get to live in your home, love your home, and make memories in your home while it creates a nest egg. Life changes create reasons to move. Assessing where you want to be and how it matches your lifestyle is where the decision-making starts. If you have experienced some life changes and are curious about how the market relates to your housing goals, please reach out. It is our goal to help keep our clients informed and empower strong decisions.

Market Update • Monthly Newsletter • June 6, 2024

Buyer Demand Persists and Seller Equity Soars Amongst Interest Rate Volatility

by Kristine Stevens

As we sit almost five months into 2024 in the middle of the spring market and I reflect on how the year is going, I am grateful, amazed, and locked in on the stats. You see, the last four years since the start of the pandemic have been an eventful and wild ride. 2020 saw a brief halt in sales when the shelter-in-place order went into effect, and once protocols were established to make real estate essential, the market started to take off. Many people utilized that time to re-evaluate where they wanted to live, whether that meant in a different state, from an urban location to a rural setting, or from a shared condo building to a single-family residential house.

This re-organization of where people wanted to live was coupled with historically low interest rates that hovered in the 3% range, leading to the highest number of recorded closed sales in 2020 and 2021 that we had seen in over a decade. All of this activity took place while inflation was on a stubborn uphill trajectory, causing the Fed to make some big rate increases to help combat consumer spending in 2022.

Rates increased by three percentage points from February 2022 (3.9%) to October 2022 (7%) and have remained in that higher range ever since. This quickly put a stall on buyer demand as monthly payments quickly became more expensive, putting downward pressure on affordability. This caused a correction in prices from the peak in spring 2022 to the first quarter of 2023 when prices bottomed out.

In King County, prices corrected from the peak to the bottom by 20%, and in Snohomish County, 17%. Prices started to bounce back from the bottoming out in the spring of 2023, and since then have increased 24% in King County and 13% in Snohomish County. While prices were stabilizing and then growing from Q1 2023 until now, interest rates have hovered in the 7% range. Buyer demand slowly regained its footing throughout 2023 and when the calendar turned to 2024, buyers started to come out in force despite the interest rates never returning to historic lows. It is safe to say that many buyers have accepted the higher interest rates as the new normal.

In this new normal, monthly payments are high as prices remain stable and have had extreme appreciation since the start of 2024. In King County, prices have grown by 16% from Dec 2023 to April 2024 and in Snohomish County by 14%. At the end of 2023, it was reported that the average homeowner had at least 60% home equity in King County and 57.5% in Snohomish County. That equity measurement doesn’t include the price growth we have experienced so far in 2024.

Rates have remained stubborn due to inflation still being a challenge. Inflation has tempered, but not to the 2% year-over-year level the Fed wants to see before easing interest rates. The Fed met at the beginning of May and indicated that rates will slowly come down in the second half of 2024 and into 2025 if inflation rates reach that 2% year-over-year mark. That will be a key marker to track as the Fed Chairman, Jerome Powell has made it clear that will be what it takes to cause rate relief.

Some buyers may wait to enter the market once rates have eased, and many are jumping in now as they are happy to secure today’s prices. Demand will only increase when rates improve, which should most likely cause additional price growth. Creative financing options such as interest rate buy-downs and ARM (Adjustable-Rate Mortgage) loans have helped buyers manage their monthly payments when making a purchase. The key factor I help the buyers I serve stay focused on, is the affordability of their monthly payments.

This focus has proven to be the most productive and strategic number to stay connected with to help a buyer remain confident and effective. Buyers often make adjustments in price point, features, and/or location to match up a manageable monthly payment with the home they buy. Analyzing the trends, stats, and values from one area to the next is an exercise that helps buyers gain clarity. We often say that when a buyer finds a home that matches 75-85% of their criteria they are in striking distance to make an offer. In a seller’s market like this, buyers must make compromises to succeed.

A bright light for buyers is that we have seen a recent jump in new listings. There were 30% more new listings in April 2024 over April 2023 in King County and 32% more in Snohomish County. With seller equity so high and pent-up seller motivation boiling over, we are finally starting to see additional inventory come to market. We are still experiencing tight inventory, but it is growing. This is providing some additional selection and should hopefully continue throughout 2024.

Continuing my daily, weekly, monthly, and annual commitment to studying the market is a benefit to the clients I serve. Understanding how inventory, rates, and prices all relate to each other helps me provide valuable insights for clients so they can appropriately strategize when they want to enter the market. These trends vary from one city to the next, in different price points and property types. If you are curious about how today’s trends relate to your real estate goals, please reach out. Further, if you know someone who needs my assistance, please direct them my way. It is my goal to help keep my clients well-informed to empower strong decisions.

Market Update • Monthly Newsletter • June 6, 2024

Three Hot Buttons in Real Estate

by Kristine Stevens

The real estate industry has been in the news a bit lately. Not so much about the trends and home values. More so about class action lawsuits, which have stolen a lot of attention away from the positive activity that is happening in our market. While the lawsuit is an important story to track, one critical item to mention is that WA has already complied with the majority of what the proposed lawsuit settlement is suggesting.

New laws went into place on Jan 1, 2024, that complemented changes our MLS started making in 2019. We have been smooth sailing for almost four months bringing heightened transparency to every real estate transaction we do with new laws, forms, and procedures. The national hype has caused a stir, so before I get into the three important trends, I wanted to let you know that WA is ahead of the curve. If you have any questions on how to distinguish the national headlines from the local truth, please don’t hesitate to contact me.

INFLATION: Interest Rates & Insurance

Inflation has been a hot topic for a few years now. We all know the cost of groceries, gas, and everyday items are higher than they were just a few years ago. This caused interest rates to increase in spring 2022, hovering between 6.25-7.5% over the last 2 years. Despite these rate increases we have watched the real estate market and home values recover and start to appreciate again. The median price in Snohomish County is up 5% in Q1 2024 over Q1 2023 and up 13% in King County. The spring market has sprung!

The lending costs to purchase a home have increased and it has limited and sidelined some buyers. However, many are finding ways to make it work and demand is strong with the return of multiple offers and price escalations on well-priced and presented listings. If you are waiting for rates to come down, also pay attention to prices as it is a delicate balance of affordability. The option to re-finance your interest rate down the road if rates dip will decrease your monthly payment while keeping your loan balance fixed.

Homeowners Insurance has also been hit hard by inflation and a heightened amount of claims over the last four years. Natural disasters such as fires, floods, and earthquakes have depleted many insurance companies’ reserves causing them to re-calibrate their rates across the board to keep up. You may have seen an increase in your rate. With home values and goods on the rise, it is important that you have your home and belongings adequately insured.

I’d suggest you check in with your carrier to make sure they have your home and your belongings properly valued. With market dynamics quickly shifting I’d caution you from grabbing your home value from an online estimator such as Zillow or your insurer’s automated program. Those algorithms are most often inaccurate which could leave you under-insured. I’m happy to help you assess the current value of your home in today’s market so you can properly calibrate your homeowner’s insurance in this volatile insurance environment.

HOME EQUITY Movement:

According to ATTOM data, 67.4% of homeowners in the U.S. have at least 50% home equity, with 38.7% owning their homes free and clear. Locally, the average homeowner in Snohomish County has 57.5% home equity, and in King County 60%. Those local figures were reported in Q4 2023 and we have seen a jump in values since then indicating that those figures are now higher.

The point is that home equity is strong for many homeowners, which allows homeowners who are looking to make a move to use creative options to make those moves smooth. We are in a competitive seller’s market so trying to purchase a home contingent on the sale of your current home is a challenging feat. At Windermere, we have the awesome Windermere Bridge Loan Program (WBLP) that helps people tap into their equity to make their next purchase instead of having to sell their homes first.

The WBLP does not require an appraisal like a Home Equity Line of Credit (HELOC), is quickly approved, and does not require monthly payments. The loan balance and any accrued interest are paid off when the collateral property is sold, allowing buyers who are also sellers to easily utilize their equity and not have to move twice. I’ve even seen the collateral property close first if strategized properly. This eliminates having to fund the Bridge Loan altogether, yet it was used to make that buyer’s offer competitive and helped them win the house for their next chapter in life.

HOME PREPARATION Overwhelm:

One of the biggest tasks I assist clients with is preparing their homes for the market. How a home comes to market can make a huge difference in the bottom line. Remedying deferred maintenance, making home improvements, remodeling, clean-up, purging, and merchandising can all contribute to a seller making more money on closing day. Creating a punch list of items that will create the most favorable return is a service I provide my clients.

Identifying the available funds, hiring service providers, and just getting started can cause overwhelm and sometimes paralysis. As stated above, many homeowners have amazing home equity. Leveraging home equity can help a homeowner complete the projects that will make a better profit! At Windermere, we have the Windermere Ready Program (WRP) which allows home sellers to tap into their equity before coming to market to get their homes market-ready.

Like the WBLP, the WRP is quickly approved, does not require an appraisal, and monthly payments are not required. We figure out which projects we want to focus on, gather bids from trusted contractors, create a budget, and apply. The funds are provided within 2 weeks and we can line up the work and start the transformation immediately.

I’ve seen simple flooring replacements and fresh paint transform a house. We’ve even done a full kitchen remodel to completely change up the vibe. The projects that warm my heart are helping elderly sellers sort through years of living and clearing the space for potential buyers to envision themselves in the home. Did you know that there are companies that help people sort and purge their belongings, so they are prepared to move on to their next chapter? Lastly, we can solve property issues with the WRP! Earlier this year, we discovered a failed septic system on a listing and we were able to utilize the WRP to tackle that fix and made it to the closing table at top dollar.

Markets are fast-paced and dynamic! Helping clients navigate the environment to protect their investment, strategize financing, and/or prepare their property are tasks that I take very seriously. Even if it is as simple or complicated as clearing a house for the market. Whether we are evaluating these items for an immediate move or we are planning out years in the future providing this care matters to me! Please reach out if you or someone you know are curious about how the trends relate to their situation. It is my mission to help keep my clients well informed to empower strong decisions.

Monthly Newsletter • The More you Know • April 3, 2024

New Year, New Laws! What This Means for Consumers Moving Forward.

by Kristine Stevens

Effective January 1, 2024, the statute in Washington that governs real estate brokerage relationships (RCW 18.86) otherwise known as the “Agency Law”–was significantly revised. The revisions modernize the 25-year-old law, provide additional transparency and consumer protections, and acknowledge the importance of buyer representation.

KEY REVISIONS

For decades, real estate brokerage firms were only required to enter into written agency agreements with sellers, not buyers. The Agency Law now requires firms to enter into a written “brokerage services agreement” (agency agreements) with any party the firm represents, both sellers and buyers.

This change is to ensure that buyers (in addition to sellers) clearly understand the terms of the firm’s representation and compensation, much like a listing agreement. The new agreements are called Buyer Brokerage Service Agreements (BBSA) and they are to be initiated in writing prior to or upon rendering real estate brokerage services, such as showing homes.

The services agreement with buyers must include:

The term of the agreement (with a default term of 60 days and an option for a longer term);
The name of the broker appointed to be the buyer’s agent;
Whether the agency relationship is exclusive or non-exclusive;
Whether the buyer consents to the individual broker representing both the buyer and the seller in the same transaction (referred to as limited dual agency”);
Whether the buyer consents to the broker’s designated broker/managing broker’s limited dual agency;
The amount the firm will be compensated and who will pay the compensation; and
Any other agreements between the parties.

Clearly communicated expectations between the buyer and their broker are an advantage to the buyer. Every party deserves representation, and it has been a long time coming for the law to pay as much attention to buyers as it has to sellers. Having competent representation on both sides of a transaction makes the process go smoother and reduces liability during and after the transaction. Afterall, everyone deserves competent representation during one of the biggest transactions they will partake in.

These changes are intended to elevate transparency in agency relationships for the consumer and encourage more detailed conversations about representation, compensation, and the overall homebuying process with the broker they chose to align with. This will also cause sellers to gain a better understanding of how buyer brokers are compensated.

What a seller chooses to offer a buyer broker could have a positive effect on their return. The only way a buyer can compensate their broker is with liquid cash or negotiating with the seller within the purchase and sale agreement when their BBSA doesn’t match the seller-offered compensation for the. If their BBSA matches what the seller is offering in the listing for the buyer broker compensation, then the buyer does not have to rely on the prior.

Compensation offered in a listing that mirrors the BBSA will allow a buyer to solely focus on the offer price of the home as they will not have to calculate the math of the compensation against their down-payment funds, as lending regulations do not allow for broker compensation to be financed. If a buyer has to set aside funds for compensation it would likely reduce their down payment amount which would increase their monthly payment and make them more price sensitive. It will also eliminate the compounding effect of compensation and the offer price being simultaneously negotiated.

I have always run my business in a very detailed fashion and pride myself on having a deep knowledge of the laws and the forms, and these changes are paramount. As an independent contractor affiliated with Windermere Real Estate, the leading company in our region, it is up to me to dig into the research and gain understanding to help guide my clients through these advancements in a compliant and service-oriented fashion. There are even aspects of these new laws that I have been practicing before the changes, as transparency is a cornerstone of my value to my clients.

These are the biggest changes we have seen in our industry in over two decades. Be aware that not all brokers will adapt as quickly or accurately. We are already seeing a gross difference between the informed and not informed; who one chooses to work with matters! If you have any further questions about how these new laws affect you, please reach out. If you are considering a move, I am committed to navigating the process with the utmost compliance and my client’s success at the forefront.

Market Update • Monthly Newsletter • April 3, 2024

3/29 NAR Update ACCURATE UPDATE: The Proposed NAR Settlement Agreement and How WA State Stands Out

by Kristine Stevens

As I am sure you have heard on the news, there is a proposed settlement agreement for the NAR (National Association of Realtors) Class Action Lawsuit. It has certainly stirred up plenty of headlines that have been glossy, and in many cases, inaccurate. Many of the reports and headlines have been national and it is important to note that WA state is unique and could have far fewer changes than the rest of the country if the settlement is approved.

The majority of the MLS’s (Multiple Listing Services) across the country are owned by NAR and our NWMLS (Northwest Multiple Listing Service) in WA, is not. NWMLS is not included in the settlement agreement as they are not NAR-owned. If the settlement is approved, they can choose to opt in, which is undecided at this point as it will require a vote of their board of directors.

In WA, new laws were enacted on January 1, 2024, that address many aspects that the settlement agreement is proposing. For years, WA brokers and NWMLS have been committed to elevating transparency around broker compensation, resulting in brokers in WA already doing business as many of the new proposals in the settlement agreement suggest.

You can refer to the newsletter I sent out (or message me for a copy) in early February that outlines the new laws that went into place on Jan 1. I am also happy to report that practicing under these new laws has been positive and productive for consumers and brokers a like.

The proposed settlement agreement still needs to be approved by the court. Once that is done, I will report back to explain how it will affect real estate operations in WA state. In the meantime, I also want to report that market activity in Q1 2024 has been positive! Price growth is up, buyer demand is strong, and inventory remains low. Seller equity is soaring; with home equity in King County averaging 60% and 57.5% in Snohomish County. These figures were reported in December 2023 and don’t account for the price growth we’ve seen in Q1. Interest rates are still hovering around the high 6% and are predicted to come down this year, yet remain volatile and stubborn. Please reach out if you or someone you know would like to learn more. It is always my goal to help keep my clients informed and empower strong decisions.

Eastside • North King County • North Snohomish County • Quarterly Market Updates • Seattle Metro • South King County • South Snohomish County • January 15, 2024

QUARTERLY REPORTS Q4 2023

by Kristine Stevens

The story of 2023 was balancing interest rates with home purchases and even home sales. The average weekly rate in 2023 was 6.8% and peaked in October at 7.94%. This caused some buyers to pause due to cost. Many sellers were reluctant to move and give up their low payments based on historically low rates, hence the large decrease in new listings in 2023.

Despite the highest rates we’ve seen in two decades, pending sales did not falter like new listings, indicating continued demand and resulting in a seller’s market. Inventory remained tight throughout 2023 and prices stable over 2022 (the peak) when the average rate was 5.34%. Since October, rates have come down by over 1%, bringing more buyers to the market. The Fed plans to continue this trend in 2024 which will increase buyer activity and new listings. 2024 will provide improved opportunities for all with a less stringent lending environment.

If you are curious about how the trends relate to your goals, please reach out. I strive to keep my clients well-informed and empower strong decisions.

QUARTERLY REPORTS Q4 2023

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