Welcome to our real estate blog! 

We hope you find the information here to be helpful, whether you are a Buyer or a Seller.  Whether you are just getting started on the road to home ownership, or whether you are a seasoned veteran, there's something here for everyone.  

Of course, if you have questions you don't find answers to here, you can always reach us by clicking on the contact button at the top of the page, or by calling (425) 345-8099.  

We look forward to serving you for all your real estate needs!  

July 20, 2021

This is Not a Housing Bubble

3 Charts That Show This Isn’t a Housing Bubble

3 Charts That Show This Isn’t a Housing Bubble | MyKCM

With home prices continuing to deliver double-digit increases, some are concerned we’re in a housing bubble like the one in 2006. However, a closer look at the market data indicates this is nothing like 2006 for three major reasons.

1. The housing market isn’t driven by risky mortgage loans.

Back in 2006, nearly everyone could qualify for a loan. The Mortgage Credit Availability Index (MCAI) from the Mortgage Bankers’ Association is an indicator of the availability of mortgage money. The higher the index, the easier it is to obtain a mortgage. The MCAI more than doubled from 2004 (378) to 2006 (869). Today, the index stands at 130. As an example of the difference between today and 2006, let’s look at the volume of mortgages that originated when a buyer had less than a 620 credit score.3 Charts That Show This Isn’t a Housing Bubble | MyKCMDr. Frank Nothaft, Chief Economist for CoreLogic, reiterates this point:

“There are marked differences in today’s run up in prices compared to 2005, which was a bubble fueled by risky loans and lenient underwriting. Today, loans with high-risk features are absent and mortgage underwriting is prudent.”

2. Homeowners aren’t using their homes as ATMs this time.

During the housing bubble, as prices skyrocketed, people were refinancing their homes and pulling out large sums of cash. As prices began to fall, that caused many to spiral into a negative equity situation (where their mortgage was higher than the value of the house).

Today, homeowners are letting their equity build. Tappable equity is the amount available for homeowners to access before hitting a maximum 80% combined loan-to-value ratio (thus still leaving them with at least 20% equity). In 2006, that number was $4.6 billion. Today, that number stands at over $8 billion.

Yet, the percentage of cash-out refinances (where the homeowner takes out at least 5% more than their original mortgage amount) is half of what it was in 2006.3 Charts That Show This Isn’t a Housing Bubble | MyKCM

3. This time, it’s simply a matter of supply and demand.

FOMO (the Fear Of Missing Out) dominated the housing market leading up to the 2006 housing bubble and drove up buyer demand. Back then, housing supply more than kept up as many homeowners put their houses on the market, as evidenced by the over seven months’ supply of existing housing inventory available for sale in 2006. Today, that number is barely two months.

Builders also overbuilt during the bubble but pulled back significantly over the next decade. Sam Khater, VP and Chief Economist, Economic & Housing Research at Freddie Macexplains that pullback is the major factor in the lack of available inventory today:

“The main driver of the housing shortfall has been the long-term decline in the construction of single-family homes.”

Here’s a chart that quantifies Khater’s remarks:3 Charts That Show This Isn’t a Housing Bubble | MyKCMToday, there are simply not enough homes to keep up with current demand.

Bottom Line

This market is nothing like the run-up to 2006. Bill McBride, the author of the prestigious Calculated Risk blog, predicted the last housing bubble and crash. This is what he has to say about today’s housing market:

“It’s not clear at all to me that things are going to slow down significantly in the near future. In 2005, I had a strong sense that the hot market would turn and that, when it turned, things would get very ugly. Today, I don’t have that sense at all, because all of the fundamentals are there. Demand will be high for a while because Millennials need houses. Prices will keep rising for a while because inventory is so low.”

Posted in Market Updates
July 16, 2021

The Tops Tips to Prepare Your Home For Sale

THE TOP TIPS TO PREPARE YOUR HOME FOR SALE

Home sales are projected to rise by as much as 8.9% in 2021 as the market continues to rebound from the pandemic.  Interest rates remain at record lows, causing more millennials to enter the home buying market for the first time, which has led to increased demand, that is expected to continue.

 

Given this increased demand, more and more people are considering selling their homes.  If you’re one of them, read on to learn about the things that make a difference when you’re getting your home ready to appeal to the masses. 

1. List Your Home at The Right Price

This might seem like a strange tip in a high demand market.  However, price still matters.  Even though demand is high, it’s still important to price your home competitively in order to attract as many buyers as possible.  In today’s market, buyers have been programmed to expect to pay more than list price to get the home they want.  Therefore, if you price your home too high, it will scare many buyers away and you could end up sitting on the market, costing you thousands of dollars in profit.  To get an idea of the right price for your home, have a professional agent visit your home in person and assess its condition, finishes, special features, the neighborhood, etc.  Your agent can then research its value using data from the sale of comparable homes in the MLS (Multiple Listing Service) and give you a recommended list price.  Remember, list price does not equal sale price.  In Snohomish County, homes are currently selling (on average) for 3.3% over list price, and oftentimes more.

2. Work with an Experienced Agent

Work with an agent who is experienced, informed and can provide helpful services throughout the entire selling process. The right agent should be able to provide you with advice to maximize your curb appeal and your profit, as well as have a good working knowledge of the local market and comparable properties in your neighborhood. 

3. Make Minor Repairs or Renovations

Patch holes in the walls, replace broken appliances, and change burnt out light bulbs. No problem is too small in the eyes of a potential buyer!  Also, fresh paint, in a neutral color, goes a long way to making your home feel new! 

 

Small issues send the message that the home has not been well taken care of. They could also indicate to a potential buyer that there is other more costly neglect taking place — like water or mold damage.

 

Nobody likes a dark house, especially here in the Pacific Northwest.  Maximize the light in your home. Take down heavy drapes, clean the windows, and swap the lampshades and up the wattage in the bulbs. Do whatever it takes to let the light shine in!

 

You can also add some pop to your home with fresh flowers, accent pillows, a new welcome mat — these little touches can amp up the welcome factor of any home and go a long way with buyers. You don't have to go out of your way, either. Just a few here and there to make it feel more like home.

 

Don’t forget to cut the grass, pull the weeds, and a little fresh bark and flowers outside make a big difference too!

 

4. Clean, Clean, Clean!

 

Clean like you’ve never cleaned before, inside and out - and then keep it that way. Clean gutters, pressure-wash sidewalks and driveways, wash windows inside and out, and keep your bathrooms and kitchen sparkling! 

 

If you have carpets in your home, they need to be clean before you show your home. This will improve the appearance of your floors and eliminate any nasty odors that might be locked in the carpet.

 

Professional carpet cleaning is recommended – they just have more cleaning power.  Ask me for a referral to a local carpet cleaner that will do a great job.

 

A sparkling clean home will make for a better first impression when potential buyers walk through the door.

5. Depersonalize & Declutter

Sounds strange, but the truth is that the more personal your space, the less potential buyers can imagine themselves living there. This includes family photos, collections, travel items, and keepsakes. It’s hard for a buyer to imagine themselves in the space with your family’s faces covering the walls!  

 

You should also remove any polarizing items, like political and religious memorabilia. Think generic!  Many people have strong feelings about these types of things, and you don’t want a buyer to pre-judge your home based on your political or religious beliefs. The best solution is to pack these items in storage.

 

Here is where a professional agent can help as well.  I will walk through your home and give you suggestions on what should stay and what should go into the garage sale, or at least into a storage unit. 

 

 

6. Organize Closet Space & Cabinets

Every buyer is looking for a place to store all their stuff. When I’m showing homes, my buyers regularly open closet doors, kitchen cabinets, etc.  Scale back as much as possible, think necessity only, and put the rest in storage. Then, neatly organize what’s left to highlight the home’s storage space.

7. Move Your Pets Out

Not everyone is an animal lover. If a potential buyer walks in and sees a dog bowl, smells a litter box, or is picking hair off their pants hours after the Open House, they will think the house is not clean. 

A potential buyer shouldn’t even be able to tell if a four-legged friend lives there or not. It’s best if your pet can stay with friends or relatives while your home is on the market, but if that’s not possible, you should at least take them out of the house for showings or open houses. 

8. Eliminate Bad Smells

You should be able to eliminate any unpleasant odors after a good clean. Even if it’s winter, open the windows and give the home time to air out. 

To add a pleasing smell, bake before an open house, or light a fresh-smelling candle. Keep it subtle because anything too overpowering will smell suspicious, like you’re trying to hide something.

9. Update the Kitchen & Baths

Kitchens & baths are probably the most important rooms in the house. They are also the most expensive to renovate. Investing a few thousand dollars might get you an eighty-five percent return, while dated kitchen or bathroom could knock a huge chunk off of the asking price. 

 

One of the fastest and most inexpensive ways to update your kitchen or bathroom is to repaint your cabinets & refinish countertops. Most home improvement stores carry cabinet and countertop kits that you can use to do a quick makeover.   

 

However, if you really want to up your game, you can give your home a total refresh prior to listing to help maximize your profit.  Your professional real estate agent can connect you with a company that specializes in renovating homes in advance of sale, and they don’t get paid until closing.  This allows homeowners to maximize their profit with no up-front costs.  Ask me for more information!

10. Always Be Ready to Show

Once your house goes on market, it needs to be “show ready” at all times because you never know when an agent will request a showing. You want your home to be available whenever they want to come and see the place. Keep the dishes clean and put away, beds made, and clear clutter. It may seem annoying but will get your house sold!

 

Removing yourself is the ultimate depersonalization. Buyers don’t feel free to browse your home when you are present.  You want to give buyers the freedom to open closets, inspect the rooms, and ask questions without feeling like they are snooping around. Before someone comes for a showing, open the windows, turn on all the lights, light a candle, and get yourself out!

 

I hope this guide has been helpful to you in knowing what items need to be addressed in getting ready to sell your house.  If you have any further questions, or need advice, feel free to reach out to me anytime at (425) 345-8099.  I’m here to help!

Posted in Selling Your Home
July 13, 2021

The Summer Housing Market

Why This Isn’t Your Typical Summer Housing Market

Why This Isn’t Your Typical Summer Housing Market | MyKCM

In real estate, it’s normal to see ebbs and flows in the market. Typically, the summer months are slower-paced than the traditionally busy spring. But this isn’t a typical summer. As the economy rebounds and life is returning to normal, the real estate market is expected to have an unusually strong summer season.

Here’s how this summer is stacking up against the norm and what it means for you.Why This Isn’t Your Typical Summer Housing Market | MyKCM

Inventory is increasing.

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), inventory levels have been rising since February of this year. Looking at the graph below, there’s a clear upward trend, as shown in the green bars. Currently, there’s roughly a 2.5 months’ supply of homes for sale nationwide.  Locally, that number is around 2 weeks!  And while inventory is trending up as more houses are coming to the market, it’s still much lower than several of the previous summers, as the orange bars indicate.Why This Isn’t Your Typical Summer Housing Market | MyKCMIf you’re looking to buy, a small amount of relief is on the way in the form of more homes coming to the market. Just remember, we still have less inventory than the norm, so be patient in your search.

If you’re thinking of selling, now is the time. Work with a professional agent to list your house before it has more competition on the market.

Time on the market is still shorter than normal.

Unlike the typical summer trend, time on the market is moving at the fastest speed we’ve seen since NAR started collecting this survey-based information in 2011. The most recent Realtors Confidence Index shows that nationwide, the average home is on the market for just 17 days, as shown in green in the graph below. Locally, that number is much lower. This means houses are selling at a much faster pace than a typical summer, which the orange bars represent.Why This Isn’t Your Typical Summer Housing Market | MyKCMIf you’re looking to buy, this means you need to be prepared to move fast. Brace for a quick pace and rely on your agent to stay in the know on the available homes in your area.

If you’re thinking of selling,  your house will sell quickly. If you’re worried about where you’ll go once your house sells, consider a newly built home as a good way to move up.

Alternatively, ask me about how you can sell your house now, and still stay in it while you use your cash to shop for your new one! 

Price appreciation is still rising.

The last big factor making this an unusually strong market this summer is home price appreciation. According to the State House Price Index from the Federal Housing Finance Agency (FHFA), we’re currently experiencing double-digit house price appreciation and have an average of 12.6% appreciation across the country. The graph below uses data from NAR to show a more granular view of how prices have changed month-to-month over the past few years. The green bars show the current price appreciation we’re experiencing today. Our current levels are well above what we’ve seen in recent summers, shown by the orange bars.Why This Isn’t Your Typical Summer Housing Market | MyKCMIf you’re looking to buy, competition and bidding wars are driving prices up. Getting pre-approved is required if  you’re serious and it help you know what you can afford. Once you do, work with your agent to make a strong offer that stands out.

If you’re thinking of selling, seize this opportunity to use your additional equity from this price appreciation to power your next move.

Bottom Line

This isn’t a typical summer. Whether you’re buying or selling, let’s connect to talk about how you can capitalize on today’s market conditions to sell your house or find your dream home. Call (425) 345-8099 or pilchardproperties@gmail.com

Posted in Market Updates
July 8, 2021

Pricing Your Home in This Seller’s Market

Selling Your House? Make Sure You Price It Right.

Selling Your House? Make Sure You Price It Right. | MyKCM

There’s no denying we’re in a sellers’ market. With low inventory and high buyer demand, homes today are selling above the asking price at a record rate. According to the latest Realtors Confidence Index Survey from the National Association of Realtors (NAR):

  • Nationwide, homes typically sell within 17 days (compared to 26 days one year ago). Here in the Pacific Northwest, homes are selling in about 4 - 6 days. 
  • The average home sold has five offers to pick from.
  • 54% of offers are over the asking price.

Because so many buyers are competing for so few homes, bidding wars are driving up home prices. According to an average of leading expert projections, existing home prices are expected to increase by 8.9% this year.

Yet even in today’s red-hot sellers’ market, it’s important to price your house right. While it may be tempting to price your house on the high side to capitalize on this trend, doing so could limit your house’s potential.

Why Pricing Your House Right Matters

Here’s the thing – a high price tag doesn’t mean you’re going to cash in big on the sale. While you may be trying to maximize your return, the tradeoff may be steep. A high list price is more likely to deter buyers, sit on the market longer, or require a price drop that can raise questions among prospective buyers.

Instead, focus on setting a price that’s fair. Real estate professionals know the value of your home. By pricing your house based on its current condition and similar homes that have recently sold in your area, your agent can help you set a price that’s realistic and obtainable – and that’s good news for you and for buyers.Selling Your House? Make Sure You Price It Right. | MyKCMWhen you price your house right, you increase your home’s visibility, which drives more buyers to your front door. The more buyers that tour your home, the more likely you’ll have a multi-offer scenario to create a bidding war. When multiple buyers compete for your house, that sets you up for a bigger win.

Bottom Line

When it comes to pricing your house, working with a local real estate professional is essential. Let’s connect so we can optimize your exposure, your timeline, and the return on your investment, too.

Posted in Selling Your Home
June 22, 2021

Pre-Approval is Critical in the Current Market

Pre-Approval Makes All the Difference When Buying a Home

Pre-Approval Makes All the Difference When Buying a Home | MyKCM

You may have been told that it’s important to get pre-approved at the beginning of the homebuying process, but what does that really mean, and why is it so important? Especially in today’s market, with rising home prices and high buyer competition, it’s crucial to have a clear understanding of your budget so you stand out to sellers as a serious homebuyer.

Being intentional and competitive are musts when buying a home right now. Pre-approval from a lender is the only way to know your true price range and how much money you can borrow for your loan. Just as important, being able to present a pre-approval letter shows sellers you’re a qualified buyer, something that can really help you land your dream home in an ultra-competitive market.

With limited housing inventory, there are many more buyers active in the market than there are sellers, and that’s creating some serious competition. According to the National Association of Realtors (NAR), homes are receiving an average of 5.1 offers for sellers to consider. As a result, bidding wars are more and more common. Pre-approval gives you an advantage if you get into a multiple-offer scenario, and these days, it’s likely you will. When a seller knows you’re qualified to buy the home, you’re in a better position to potentially win the bidding war.

Freddie Mac explains:

“By having pre-approval letter from your lender, you're telling the seller that you're a serious buyer, and you've been pre-approved for a mortgage by your lender for a specific dollar amount. In a true bidding war, your offer will likely get dropped if you don't already have one.”

Every step you can take to gain an advantage as a buyer is crucial when today’s market is constantly changing. Interest rates are low, prices are going up, and lending institutions are regularly updating their standards. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals such as a loan officer and a trusted real estate agent making sure you take the right steps and can show your qualifications as a buyer when you find a home to purchase.

Bottom Line

In a competitive market with low inventory, a pre-approval letter is a game-changing piece of the homebuying process. Not only does being pre-approved bring clarity to your homebuying budget, but it shows sellers how serious you are about purchasing a home.

June 14, 2021

4 Tips to Maximize the Sale of Your House

4 Tips to Maximize the Sale of Your House

4 Tips to Maximize the Sale of Your House | MyKCM

Homeowners ready to make a move are definitely in a great position to sell today. Housing inventory is incredibly low, driving up buyer competition. This gives homeowners leverage to sell for the best possible terms, and it’s fueling a steady rise in home prices.

In such a hot market, houses are selling quickly. According to the National Association of Realtors (NAR), homes are typically on the market for just 18 short days. Despite the speed and opportunity for sellers, there are still steps you can take to prep your house to shine so you get the greatest possible return.

1. Make Buyers Feel at Home

One of the ways to make this happen is to take time to declutter. Pack away any personal items like pictures, awards, and sentimental belongings. The more neutral and tidy the space, the easier it is for a buyer to picture themselves living there. According to the 2021 Profile of Home Staging by NAR:

“82% of buyers’ agents said staging a home made it easier for a buyer to visualize the property as a future home.”

Not only will your house potentially attract the attention of more buyers and likely sell quickly, but the same report also notes:

“Eighteen percent of sellers' agents said home staging increased the dollar value of a residence between 6% and 10%.”

As Jessica Lautz, Vice President of Demographics and Behavior Insightsfor NAR, says:

“Staging a home helps consumers see the full potential of a given space or property…It features the home in its best light and helps would-be buyers envision its various possibilities.”

2. Keep It Clean

On top of making an effort to declutter, it’s important to keep your house neat and clean. Before a buyer stops by, be sure to pick up toys, make the beds, and wash the dishes. This is one more way to reduce the number of things that can distract a buyer from the appeal of the home.

Ensure your home smells fresh and clean as well. Buyers will remember the smell of your house, and according to the same report from NAR, the kitchen is one of the most important rooms of the house to focus on if you want to attract more buyers.

3. Give Buyers Access

Buyers are less likely to make an offer on your house if they aren’t able to easily schedule a time to check it out. If your home is available anytime, that opens up more opportunities for multiple buyers to go from curious to eager. It also allows buyers on tight schedules to still get in to see your house.

While health continues to be a great concern throughout the country, it’s important to work with your agent to find the best safety measures and digital practices for your listing. This will drive visibility and create access options that also keep everyone in the process safe.

4. Price It Right

Even in a sellers’ market, it’s crucial to set your house at the right price to maximize selling potential. Pricing your house too high is actually a detriment to the sale. The goal is to drive high attention from competing buyers and let bidding wars push the final sales price up.

Work with your trusted real estate professional to determine the best list price for your house. Having an expert on your side in this process is truly essential.

Bottom Line

If you want to sell on your terms, in the least amount of time, and for the best price, today’s market sets the stage to make that happen. Let’s connect today to determine the best ways to maximize the sale of your house this year.

Posted in Selling Your Home
June 10, 2021

Why This is Not Like 2008 Again

Why This Is Not Like 2008 Again

Why This Is Not Like 2008 Again | MyKCM

During the Great Recession, just over a decade ago, the financial systems the world depended on started to collapse. It created a panic that drove some large companies out of business (ex. Lehman Brothers) and many more into bankruptcy.

The financial crisis that accompanied the current pandemic caused hardship to certain industries and hurt many small businesses. However, it hasn’t rattled the world economy. It seems that a year later, things are slowly getting back to normal for many companies.

Why is there a drastic difference between 2008 and now? 

In a post from RealtyTrac, they explain:

“We changed the rules. We told banks they needed more reserves and that they could no longer underwrite toxic mortgages. It turns out that regulation — properly done — can help us navigate financial minefields.”

Here are the results of that regulation, captured in a graph depicting the number of failed banks since 2007.Why This Is Not Like 2008 Again | MyKCM

What was different this time?

The post mentioned above explains:

“In 2008 the government saw the foreclosure meltdown as a top-down problem and set aside $700 billion for banks under the Troubled Asset Relief Program (TARP). Not all of the $700 billion was used, but the important point is that the government did not act with equal fervor to help flailing homeowners, millions of whom lost their homes to foreclosures and short sales.

This time around the government forcefully moved to help ordinary citizens. Working from the bottom-up, an estimated $5.3 trillion went to the public in 2020 through such mechanisms as the Paycheck Protection Program (PPP), expanded unemployment benefits, tax incentives, and help for local governments. So far this year we have the $1.9 billion American Rescue Plan with millions of $1,400 checks as well as proposals to spend trillions more on infrastructure…Bank deposits increased by nearly $2 trillion during the past year and credit card debt fell.”

Bottom Line

Many have suffered over the past year. However, the economic toll of the current recession was nowhere near the scope of the Great Recession, and it won’t result in a housing crisis.

Posted in Market Updates
June 3, 2021

Three Things to Prioritize When Selling Your House

3 Things To Prioritize When Selling Your House

3 Things To Prioritize When Selling Your House | MyKCM

Today’s housing market is full of unprecedented opportunities. High buyer demand paired with record-low housing inventory is creating the ultimate sellers’ market, which means it’s a fantastic time to sell your house. However, that doesn’t mean sellers are guaranteed success no matter what. There are still some key things to know so you can avoid costly mistakes and win big when you make a move.

1. Price Your House Right

When inventory is low, like it is in the current market, it’s common to think buyers will pay whatever we ask when setting a listing price. Believe it or not, that’s not always true. Even in a sellers’ market, listing your house for the right price will maximize the number of buyers that see your house. This creates the best environment for bidding wars, which in turn are more likely to increase the final sale price. A real estate professional is the best person to help you set the best price for your house so you can achieve your financial goals.

2. Keep Your Emotions in Check

Today, homeowners are living in their houses for a longer period of time. Since 1985, the average time a homeowner owned their home, or their tenure, has increased from 5 to 10 years (See graph below):3 Things To Prioritize When Selling Your House | MyKCMThis is several years longer than what used to be the historical norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you purchased or the house where your children grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from that sentimental value.

For some homeowners, that connection makes it even harder to separate the emotional value of the house from the fair market price. That’s why you need a real estate professional to help you with the negotiations along the way.

3. Stage Your House Properly

We’re generally quite proud of our décor and how we’ve customized our houses to make them our own unique homes. However, not all buyers will feel the same way about your design and personal touches. That’s why it’s so important to make sure you stage your house with the buyer in mind.

Buyers want to envision themselves in the space so it truly feels like it could be their own. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. Stage, clean, and declutter so they can visualize their own dreams as they walk through each room. A real estate professional can help you with tips to get your home ready to stage and sell.

Bottom Line

Today’s sellers’ market might be your best chance to make a move. If you’re considering selling your house, let’s connect today so you have the expert guidance you need to navigate through the process and prioritize these key elements. Call or text me today at 425.345.8099.

Posted in Selling Your Home
May 26, 2021

Will the Housing Market Crash in 2021?

Housing Market Predictions 2021 and Beyond.

As we all know, home prices have risen sharply in the last year.  In Snohomish County alone, the average homeowner has seen an increase in value of nearly 13.7% over the past 12 months.  The sharp rise in home prices has led many to wonder if the housing market is headed for a crash.  Likewise, many Buyers are wondering if housing prices will go down in 2021 or 2022. 

While no one can predict our future market with 100% accuracy, many analysts have recently predicted that home values will continue to climb throughout 2021 and into 2022 and beyond.  They do, however, predict a slower rate of price growth next year. 

One such prediction comes from Freddie Mac.  Researchers have estimated that in 2020, home values nationwide rose 11.3%. They predict a gain of 6.6% in 2021, and a gain of 4.4% in 2022.  So, while the increase in values will be in the single digits instead of the double digits, there is no indication of a crash or a decrease in home prices anytime soon.  

You may be wondering why we have seen values rise so sharply during the pandemic.  The answer is simple: supply and demand.  Interest rates have been at all-time lows for the past year, driving an extraordinary number of buyers into the market.  Couple that with the inventory shortage that we have had in our area for years, and you get rapidly rising prices. 

As we see the economy recover, and interest rates tick back up to pre-pandemic levels, housing prices will in turn, slow down a bit.  

If you are looking to buy or sell a home, or if you have questions about the local housing market, I would be happy to have a conversation with you and help in any way I can.  Feel free to reach out anytime at (425) 345-8099 or pilchardproperties@gmail.com. 

 

 

 

Posted in Market Updates
May 20, 2021

Sellers Are Ready to Sell

Sellers Are Ready To Enter the Housing Market

Sellers Are Ready To Enter the Housing Market | MyKCM

One of the biggest questions in real estate today is, “When will sellers return to the housing market?” An ongoing shortage of home supply has created a hyper-competitive environment for hopeful buyers, leading to the ultimate sellers’ market. However, as the economy continues to improve and more people get vaccinated, more sellers may finally be in sight.

The Home Purchase Sentiment Index (HPSI) by Fannie Mae recently noted the percentage of consumer respondents who say it’s a good time to sell a home increased from 61% to 67%. Doug Duncan, Senior Vice President and Chief Economist at Fannie Maeindicates:

Consumer positivity regarding home-selling conditions nearly matched its all-time high.” (See graph below):

Sellers Are Ready To Enter the Housing Market | MyKCMFannie Mae isn’t the only expert group noticing a rise in the percentage of people thinking about selling. George Ratiu, Senior Economist at realtor.comshares:

“The results of a realtor.com survey . . . showed that one-in-ten homeowners plans to sell this year, with 63 percent of those, looking to list in the next 6 months. Just as encouragingly, close to two-thirds of sellers plan to sell their homes at prices under $350,000, which would offer a tremendous boost to affordable housing for first-time buyers.”

Bottom Line

If you’re considering selling your house, don’t wait for more competition to pop up in your neighborhood. Let’s connect today to explore the benefits of selling your house now before more homes come to the market.

Posted in Market Updates