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RE/MAX National Housing Report for May 2024


Inventory Jumped 40%, Home Prices Increased 5%, Sales Exceed 2023 Pace

In May, both inventory and new listings grew to levels not seen since the second half of 2022.  The number of homes for sale, as surveyed across 53 metro areas, also increased, rising 8.7% over April and 39.6% year over year. And for the third consecutive month, the number of new listings exceeded 2023 levels by double-digit percentages – 15.1% in May, 18.2% in April, and 17.6% in March.

Fueled by the 22-month high in new listings, May home sales grew 10.9% over April and 0.7% over last May. Monthly home sales in 2024 have now exceeded the 2023 monthly sales totals for four of the five months.

The Median Sale Price increased 2.4% over April to $435,000. That was 4.8% higher than May 2023. The close-to-list price ratio remained at the 100% level it reached in April following eight months at 99% or less.

Read the full article…

Watch the 32 second summary video…



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Back to Basics: The ABCs of Achieving Homeownership


Buying a home is the largest transaction most people will make in their lifetime. It’s an exciting milestone, but the process can be complex.

In honor of National Homeownership Month this June, people getting ready to dive in can heed these helpful tips – the ABCs of achieving homeownership.

A: Align yourself with a trusted advisor

Working with a real estate agent you trust can make a world of difference when buying a home – especially if you’re a first-timer. A trusted advisor will go through the process with your best interests in mind, explain essential industry terms, help determine your priorities, negotiate on your behalf, and do so much more.

Experience is a top quality to consider when you’re choosing which agent to work with. (And look for a full-time professional, too. Your purchase is too important for a part-timer.) Experience can be quantified in a few different ways – like years in the industry, real estate specialties, and neighborhoods they conduct business in. What’s helpful: Not only do RE/MAX agents have the experience to get the job done in today’s market, but they also average more sales than other real estate agents.

Another important component of the trusted professional you choose to work with is their communication style. It’s smart to align with someone who is communicative and easily accessible, and who also outlines their preferred methods of contact during the homebuying process upfront.

B: Be sure your finances are in order

Ultimately, your home purchase is a financial transaction, so it’s best to analyze your financial situation – and get things in order – before you find a house you want to buy. Unless you’ll be paying cash (and if you are, congratulations!), you’ll be working with a mortgage lender who considers factors like credit score, debt-to-income ratio, and more to determine what kind of financing you qualify for.

These factors will be helpful in the pre-approval process, too, where the lender estimates how much house you can afford. This provides a framework for setting a budget and establishing your price range. In this step, make sure to budget beyond the down payment and monthly mortgage payments for the ongoing expenses of homeownership, like maintenance.

C: Consider your options

Before shopping for a house, start by making a list of wants and needs. This can help keep priorities straight as you begin looking at prospective properties that fit your lifestyle and income.

Consider what you need when it comes to space, storage, and outdoor functionality – and be realistic about which locations work for you, and which don’t. That way, you can focus your time and energy touring places that have a higher likelihood of being your ideal match.

Housing inventory and home prices will look different in every market. Curious about current housing market conditions around the U.S.? Check out the latest RE/MAX National Housing Report coverage.

Contact me for a complimentary in-person or online consultation!




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Washington State NWMLS Market Update for May 2024



Market Recap

The real estate market has continued to pick up in accordance with typical seasonal patterns, with further increases in activity expected as we move fully into the summer months. The overall number of homes sold and the median sales price of those homes increased year-over-year. Interest rates have only slightly decreased over the past month, by 0.14 percentage points, to 7.03%. This means that prospective buyers’ purchasing power and prospective sellers’ willingness to give up their low interest rate mortgages continues to be constrained. However, for-sale inventory levels have increased dramatically year-over-year, which should help to stabilize home prices.

May 2024 Key Takeaways

  • Washington counties covered by NWMLS saw an overall increase of 7% in the median price of sold homes. The median sale price increased in 17 out of 26 counties, decreased in eight counties, and remained unchanged in one county (Grant) relative to May 2023.*
  • The three counties with the highest median sale prices were King ($890,000), Snohomish ($785,000) and San Juan ($744,500). The three counties with the lowest median sale prices were Okanogan ($302,000), Columbia ($275,000) and Ferry ($171,500).
  • Washington counties covered by NWMLS saw an overall increase of 6% in the number of closed sales transactions compared to May 2023. Twelve of the 26 counties covered by NWMLS in Washington saw an increase in the number of homes sold year over year, while 13 saw a decrease. Cowlitz county’s year-over year sales were unchanged.*
  • The number of homes on the market increased throughout Washington with 24 out of 26 counties seeing a year-over-year increase. Overall, there was a 41% increase in active property listings in Washington counties covered by NWMLS.
  • The total number of condominium units for sale has increased by 70% year-over-year, with 2,071 actively listed units at the end of May. The median sales price for the 942 condominiums sold during May 2024 was $529,475, an increase of 11.5% year over year.

*Unchanged refers to a less than 0.5% change in median price or transaction volume.

Contact me for more details, or watch the 0.75 minute market snapshot video…

Source: NWMLS 6/5/2024



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NWMLS Position on NAR Settlement


Background

In 2019, home sellers filed two class action lawsuits (known as Moerhl and Sitzer/Burnett) against the National Association of Realtors (“NAR”) and several large brokerage franchisors.  The plaintiffs alleged that the defendants conspired to inflate commissions pursuant to a mandatory NAR rule that requires the seller, via the listing broker, to offer compensation to the buyer’s broker.

On October 31, 2023, a jury in Missouri rendered a $1.8 billion verdict in favor of the plaintiffs in Sitzer/Burnett.  Since that jury verdict, there have been more than 20 “copycat” cases filed around the country making similar claims against NAR and a variety of defendants, including brokerage firms and MLSs.

On March 15, 2024, NAR announced a proposed agreement to settle all home seller’s claims.  NAR agreed to pay $418 million to the plaintiffs over four years.  NAR also agreed to require Realtor brokers to make several “practice changes” and MLSs, who “opt-in” to the settlement, to put in place certain rule revisions for a period of seven years, in return for a release of claims. The court granted preliminary approval of the settlement on April 23, 2024, and the final approval hearing is set for November 26, 2024.

MLSs electing to join the settlement must agree to adopt the rule changes outlined in the settlement and MLSs who are not exclusively owned by Realtor associations (NWMLS is owned by its member real estate firms and not affiliated with NAR), must also make a monetary payment to the plaintiffs.  The decision to “opt-in” to the settlement must be made by June 18, 2024. 

It is important to note that the broker practice changes in the proposed settlement agreement are separate and distinct from the requirements for MLSs.  Brokers who are Realtors can participate with a MLS who has not opted-in to the settlement and still comply with the broker practice changes required by the settlement.

NWMLS Rules and Forms Revisions

NWMLS has led the industry with initiatives that afford sellers and buyers transparency, meaningful choice, and clear opportunities to negotiate their broker’s compensation. 

In 2019, NWMLS eliminated the requirement that a seller offer compensation to the buyer’s broker. At the same time, NWMLS made public the amount of compensation offered to the buyer’s broker to inform buyers of any such offer.

In 2022, NWMLS again led the industry by providing even more transparency and flexibility for buyers, sellers, and brokers. The most notable changes included:

  • “De-coupling” broker compensation, meaning that any compensation the seller chooses to offer the buyer broker is set and paid by the seller — not the listing broker; and
  • Any compensation offered by the seller to the buyer broker is prominently stated on the first page of the purchase and sale agreement, with an opportunity for that compensation to be negotiated by the buyer and the buyer’s broker.

NWMLS’s most recent consumer initiative was revising Washington’s “Agency Law” effective January 1, 2024. The new law requires brokers to enter into a written services agreement to represent either a buyer or a seller (previously only required for sellers).  All services agreements must be entered into at the outset of the parties’ relationship and comprehensively address broker compensation and details of representation.

NWMLS will not “opt-in” to NAR’s Proposed Settlement Agreement

NWMLS will not “opt-in” to NAR’s proposed settlement agreement.  NWMLS’s rules and forms, together with the revised Agency Law, provide for consumer-friendly brokerage relationships.  Sellers negotiate how much to compensate the listing firm and decide whether to offer to contribute toward the buyer’s broker compensation and the amount of any such offer.  Buyers agree how much to pay their own brokers at the outset of their relationship, and can then negotiate for the seller to help cover that cost as part of the purchase. 

NAR’s proposed settlement agreement largely duplicates the rules and practices in place in NWMLS’s service area for several years – with one notable exception.  The settlement agreement eliminates compensation transparency for buyers and restrains sellers’ choice by prohibiting sellers from making offers of compensation through the MLS.  Instead, the settlement agreement allows for offers of compensation “off MLS”, where that information is hard to find and not available to all buyers and brokers.  That change is a step in the wrong direction and is detrimental to consumers and brokers alike.

NWMLS strives to provide consumers with all relevant information about a listed property to promote efficiency, competition, and an open and free market. NWMLS’s rules and forms broaden, not limit, consumer choice and do not favor any brokerage service model or compensation structure. NWMLS allows the market to operate unimpeded by MLS rules.

NAR’s removal of compensation transparency from the MLS pushes consumers and brokers to make secret deals “off-MLS”, inviting deceptive practices, discrimination, and unfair housing.  Depriving buyers of information about the transaction risks harming buyers, especially those buyers who are already disadvantaged, including first time home buyers and members of protected classes.  Of course, prohibiting offers of compensation in the MLS also unnecessarily restrains the seller’s choice and absolute right to offer compensation to a brokerage firm representing the buyer. 

NWMLS’s Continued Evolution

NWMLS’s prior rules and forms changes significantly advanced a transparent and consumer-friendly marketplace.  NWMLS has, and will continue, to seize every opportunity to enhance the quality of real estate brokerage services in the Northwest.

Accordingly, NWMLS plans to revise its forms and listing process to ensure sellers are aware of an option that currently exists when listing a property for sale, but may not be apparent to all sellers and brokers.  In some instances, a seller may be prepared to pay compensation to a buyer broker, but may not be willing to offer a specific amount of compensation when listing the seller’s property for sale.  A seller may instead ask that the buyer include any requested amount of compensation payable to the buyer broker in the buyer’s offer.  The seller can agree to that amount or negotiate, just like any other term of the agreement.

NWMLS’s procedures are facilitated by progressive rules and forms and give consumers more choices, not fewer, and more information, not less.  A seller may choose to offer no compensation, offer a specific amount of compensation, or ask that the buyer request compensation for the buyer broker in the buyer’s offer.  These options all exist in NWMLS’s system – an open, fair, and transparent marketplace for consumers and brokers.

NWMLS expects to publish its revised forms with this clarified option for sellers in mid-August, along with other minor revisions to its forms.

Published by the NWMLS: May 28, 2024


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Looking to Xeriscape Your Yard? 3 Steps to Execute a Drought-Friendly Design

In drier climates, some people ditch the grass and get creative with other natural elements. Find out ways to save on water and spruce up your home’s outdoor space.

Nurturing a luscious lawn can be a difficult task, especially for those who live in dry climates.

According to the U.S. Environmental Protection Agency, the average American family uses 320 gallons of water per day – and 30% of that goes outdoors, for purposes like watering the lawn. Many homes in the nation’s driest climates – especially in the Southwest – devote 60% of their household’s water usage to outdoor purposes.

Although arid environments provide harsh conditions for a vast array of flora and fauna, many desert-area communities have strict limitations on using water for landscaping purposes. That’s one reason for the popularity of xeriscaping, an artful landscaping design requiring significantly less water usage than a traditional lawn.

Looking for a lower-maintenance option for your yard? Here are a few steps to consider:

1. Make a plan

Each and every outdoor space looks different. Assess your yard’s needs and determine the best plan for transitioning to a less-water-dependent environment. Some homeowners choose to xeriscape a full front yard or back yard, while others opt for keeping partial grass and repurposing select spaces, like garden beds.

Tip: Observe how the sun moves across your yard throughout the day, taking note of places that receive the most natural light. This can help determine where certain plant species may thrive better than others when you arrange the new elements in your yard.

Planning in advance can also dictate where to group specific plants together depending on their water usage needs. Though xeriscaping requires less water than grass, the plants you choose will likely still need semi-regular watering depending on their unique parameters.

2. Choose resilient plants

It’s essential to find plants that survive in xeric conditions. Cacti and succulents are popular picks – with hundreds of yard-friendly options to choose from.

One way to cover vast areas of yard is with ground cover plants, which are short in stature but quick to sprawl across an open space. Plenty of these plants, like those in the phlox family, are known for blooming vibrant flowers in shades of pink, purple, blue, and yellow. Other popular options include dianthus, creeping thyme, and star creeper, just to name a few. Many ground plants still need regular watering (especially during prolonged dry spells), but far less than traditional grass.

And, speaking of flowers, a sampling of popular desert-dwelling bloom variants include coneflower, lavender, tickseed, and some types of poppy (among many others). Not only do flowers like these require little water compared to wet-climate alternatives, but they also can add splashes of vibrant color to any outdoor space. Plus, these blooms – along with countless others born to thrive in dry places – are perennial, meaning they grow back each year and won’t need to be re-planted.

Head to a local gardening center and ask what plants and flowers are native to your area. Not only might some of these be great choices for your xeriscaping journey since they’re built to last in your area, but you may also find some that can benefit members of the local ecosystem, like butterflies, pollinating bees and other essential bugs.

3. Don’t forget: rocks rock!

Rocks can add dimension to any outdoor space. You can use larger rocks to frame garden beds and line walkways, creating an aesthetically pleasing design or providing value by steering passersby away from prickly plants. Plus, smaller rocks, gravel, and mulch can fill larger spaces and surround plants. This type of coverage makes it more difficult for pesky weeds to thrive.

If you’re looking to save on water and shake up the appearance – and function – of your outdoor space, consider switching to a drought-tolerant design.



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RE/MAX National Housing Report for April 2024

April, the gateway to what are traditionally the busiest months for home sales, has set the stage nicely with closings increasing 11.2% over March and 9.0% over last April. Sales have increased month over month since February.

At the same time, new listings climbed 6.3% month over month and 18.2% over last year across the 50 metro areas surveyed. That, in turn, boosted the number of homes for sale by 6.3% over March and a whopping 28.8% compared to last April.

The Median Sale Price increased 2.9% over March to $437,000. This is the highest price in over two years and was fueled by buyers’ willingness to pay 100% of the list price, compared to 99% last month and last April.

Read the full article…

Watch the 32 second summary video…



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Washington State NWMLS Market Update for April 2024


The real estate market has begun to pick up consistent with typical seasonal patterns, with further increases in activity expected over the next few months as we transition from spring to summer. Interest rates have increased by 0.38 percentage points over the past month to 7.17%, continuing to constrain prospective buyers’ purchasing power and prospective sellers’ willingness to give up low interest rate mortgages. Nevertheless, for the 26 counties covered by NWMLS, April 2024 saw a nearly 10% increase in the number of closed sales year-over-year and an almost 8% increase in median sales prices year-over-year, signaling some market optimism.

Important takeaways from April’s data:

  • The median sales price of homes increased in 23 out of 26 counties relative to April 2023. The three counties with the highest median sale prices were San Juan ($1,055,000), King ($875,000) and Snohomish ($738,000). The three counties with the lowest median sale prices were Grant ($340,000), Adams ($331,500) and Okanogan ($317,000).
  • The number of homes on the market increased throughout Washington with 23 out of 26 counties seeing a year-over-year increase, two counties seeing a year-over-year decrease, and remining virtually unchanged* in one county relative to April 2023. Overall, there was a nearly 21% year-over-year increase in active listings in Washington counties covered by NWMLS.
  • Condominium sales saw significant growth in NWMLS service areas, with 858 units sold in April 2024, a year-over-year increase of 15.6%. The median sale price of condominiums increased 11.5% year-over-year, from $465,000 in April 2023 to $518,538 in April 2024.

*Unchanged = less than 0.5 percent change.

Contact me for more details, or watch the 0.75 minute market snapshot video…

Source: NWMLS 5/6/2024



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6 Factors That Set RE/MAX Agents Apart



When real estate consumers set out to buy or sell a home, they can benefit from working with a professional who has the experience to get the job done – and does so with compassion and heart. That’s why so many choose to work with a RE/MAX agent.

Curious what makes RE/MAX agents stand out? Here are six distinguishing factors.

1. RE/MAX agents are trusted by consumers

Trustworthiness is an essential quality in a real estate professional. After all, agents are helping consumers navigate one of the largest transactions they’ll likely ever make.

RE/MAX is a leading choice when people are seeking out an agent they trust the most. For years, shoppers have voted RE/MAX as the brand with the #1 Most Trusted Real Estate Agents in the USA* and Canada**.

2. RE/MAX agents outperform the competition

Production matters – and RE/MAX agents average more sales than other real estate agents.

Multiple surveys revealed that RE/MAX agents, on average, outsell other agents by more than 2 to 1 at large brokerages, based on 2022 transaction sides***. In one of these surveys – the RealTrends 500 – 2023 was the 13th consecutive year RE/MAX had earned this recognition.

This edge in agent productivity is featured in the latest RE/MAX vs. the Industry report – which ranks the results of national full-service brokerage brands in the U.S. – along with several other relevant metrics.

3. RE/MAX agents in the U.S. and Canada have access to top tech at no additional cost

In today’s tech-powered world, it makes sense that the most productive industry professionals are using innovative technology tools to organize, promote, and drive their business.

When aligned with RE/MAX, agents have access to some of the industry’s top tech platforms. For example, MAX/TechSM powered by kvCORE – which includes the brand’s exclusive CRM – puts everything an agent needs in one spot and enables them to design marketing pieces, build campaigns, monitor their sphere, track resulting leads, and more. The platform is available to RE/MAX agents in the U.S, and Canada at no additional cost.

4. RE/MAX agents meet consumers where they are with marketing

A key reason many agents join RE/MAX is for the unparalleled brand power, strengthened over more than 50 years. In their marketing, RE/MAX agents harness the power of the RE/MAX brand itself and customize high quality social media graphics, advertisements, and more, created by RE/MAX for affiliate use.

RE/MAX recently debuted its 2024 National Advertising Campaign, a comprehensive mix of content that highlights the value an experienced real estate agent brings to a transaction. The materials promoted by RE/MAX – and placed in the hands of agents – includes commercials, social media, and other creative concepts geared toward digital connection.

Having an ever-expanding toolbox of digital assets at their fingertips means RE/MAX agents can market consistently and stay in-front of existing and future customers.

5. RE/MAX agents have a worldwide network of referral opportunities

RE/MAX has a presence in more than 110 countries and territories – so agents aligned with the brand are a part of an extensive network (comprised of more than 140,000 professionals) bustling with referral opportunity.

All year round, RE/MAX agents can take advantage of the RE/MAX Global Referrals Platform, which seamlessly tracks a referral from start to finish and uses an algorithm to help connect users with potential business partners. Plus, the tech hub auto-translates referrals into 50 local languages.

Another coveted international networking opportunity is the annual RE/MAX R4® convention, where agents from around the world come together for connection and education. One can’t-miss aspect of the event is the Global Referrals Exchange, a gathering where affiliates from different countries throughout the RE/MAX network celebrate their cultures and form friendships that span across borders.

6. RE/MAX agents care about their communities

In a profession rooted in community, RE/MAX agents are committed to giving back to the places they live and work. Throughout the year – and especially during the annual Global RE/MAX Week – RE/MAX agents, teams, and offices find unique ways to raise funds for those in need, partake in community clean-up initiatives, feed those who are hungry, and so much more.

Many agents support Children’s Miracle Network (CMN) Hospitals through the RE/MAX Miracle Home and Miracle Property Program, where participants make a donation on behalf of their client after a closed transaction. Best of all, the money stays local, benefitting the affiliate CMN Hospital in their area. Since 1992, RE/MAX affiliates have donated nearly $200 million to CMN Hospitals across the U.S. and Canada.


*Voted most trusted Real Estate Agency brand by American shoppers based on the BrandSpark® American Trust Study, years 2022-2024 and 2019.

**Voted most trusted Real Estate Agency brand by Canadian shoppers based on the BrandSpark® Canadian Trust Study, years 2019-2024 and 2017.

***Source: Based on 2022 transaction sides cited in three surveys of the largest participating U.S. brokerages. The 2023 RealTrends 500 includes data for 1,561 brokerages with at least 500 transaction sides each. The 2023 RISMedia Power Broker Top 1,000 and the 2022 T3 Sixty Mega 1,000 each include data for the 1,000 brokerages with the highest sales volume.


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RE/MAX National Housing Report for March 2024

Home sales in March increased 21.6% over February while trailing the March activity of a year ago. At the same time, a 20.9% surge in new listings during the month fueled a substantial 7.7% expansion in inventory.

The inventory gains helped expand the supply of homes for sale by 24.2% year over year, setting the stage for the customary peak homebuying season of May and June.

Up 5.1% year over year, the Median Sale Price increased 1.5% from February – the third monthly increase in a row – and returned to $415,000, a figure it last reached last September.

Read the full article…

Watch the 32 second summary video…



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Washington State NWMLS Market Update for March 2024


Interest rates have decreased by 0.15% over the past month to 6.79%, and while the rate decrease is encouraging, it has yet to have a significant impact on prospective buyers’ purchasing power or prospective sellers’ willingness to give up low interest rate mortgages. For the Washington counties covered by NWMLS, March 2024 saw an 11.2% decrease in the number of closed sales year-over-year, although median sales prices have continued to steadily rise with a year-over-year increase of 7.5%.

Important takeaways from March’s data:

  • The median sales price of homes increased in 19 out of 26 counties and decreased in 7 counties relative to March 2023. The three counties with the highest median sale prices were King ($850,000), San Juan ($750,000) and Snohomish ($730,000). The three counties with the lowest median sale prices were Pacific ($347,500), Grant ($325,000) and Columbia ($274,000).
  • The number of homes on the market increased throughout Washington with 20 out of 26 counties seeing a year-over-year increase. Overall, there was a 1.16% year-over-year increase in active property listings in Washington counties covered by NWMLS.
  • Six of the 26 counties included in the report saw an increase in the number of homes sold year-over-year, while 18 counties saw a decrease. Two counties, Ferry and Chelan, saw relatively no change in the number of year-over-year sales.
  • Condominium sales dipped slightly in the NWMLS service areas, with 752 units sold in March 2024, which is a year-over-year decrease of slightly more than 1%. The median sale price of condominiums increased more than 5% year-over-year, from $470,000 in March 2023 to $495,000 in March 2024.

Contact me for more details, or watch the 0.75 minute market snapshot video…

Source: NWMLS 4/3/2024