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RE/MAX National Housing Report for July 2023

July Sales Down but Inventory is Up,
Sellers Get Their Asking Price

July marked the first month-over-month decline in home sales since April, signaling that perhaps the peak of summer buying is beginning to taper. Growth in the inventory of homes for sale inched up alongside modest increases in interest rates despite strong consumer demand.

July home sales declined 14.7% from June and 16.1% compared to a year ago. The decline was tied to a 9.0% drop in new listings month over month and represented 26.7% fewer new listings year over year across the 50 metro areas surveyed. July inventory was up 3.1% from June, even though it still lagged 20.8% from July 2022. Tight inventory amid consistent demand continued to prop up the median sales price of $425,000. This is a marginal decline of less than 1% compared to June, while registering a 1.2% upswing in comparison to July 2022.

With the average close-to-list price ratio in July at 100%, sellers were able to get their asking price from buyers. That was the average close-to-list ratio in June as well but was a decline from the 101% ratio recorded a year ago.

Other notable metrics:

• Months’ supply of inventory in July was 1.5, up from June’s 1.3 but below the 1.6 months recorded a year ago.

• Homes sold in July were on the market for an average of 30 days, which was 1 day longer than in June and 6 days longer than July of last year.

Read the full article…

Watch the 32 second summary video…

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Washington State NWMLS Market Update for July 2023

The Northwest MLS statistics summarizing July activity for 26 counties in the report showed declines in listings, pending sales, closed sales and prices when compared to 12 months ago. The same metrics, which include single family homes and condominiums, were also down from June, with the exception of total active listings and months of inventory. Both showed slight month-over-month improvement.

Buyers could choose from 10,982 active listings at the end of July, a gain of 375 properties compared to June’s total. Last month’s inventory dropped 28.6% from the year-ago selection of 15,381 properties. Of the selection, 8,205 listings were added system-wide during July.

A slower pace of sales contributed to a modest uptick in months of supply, rising from 1.55 months in June to 1.76 months in July; a year ago there was 2.01 months of supply. Still, with the industry using 4-to-6 months as the indicator of a balanced market, 20 of the 26 counties fell below that mark. The six counties that had at least four months of supply were outside the Puget Sound urban areas.

Last week’s rate on a 30-year fixed rate mortgage was 6.9%, according to Freddie Mac. A year ago, it was 4.99% and two years ago it was 2.77%.

The jump in mortgage rates combined with a lack of choices for buyers has put a drag on sales, Deely remarked. “Adding to buyers’ hesitancy is the record-breaking price growth in 2021 and 2022. Cost pressures are impacting affordability, and it is unlikely to significantly improve in the near future.” 

Sellers of 7,570 properties accepted offers during July. That volume of pending sales was down about 13.7% from the year ago total of 8,775 and dropped 2.4% from June’s figure (7,759).

Within King County, pending sales surpassed last year’s numbers in several sub-markets including Southeast Seattle, SODO/Beacon Hill, Ballard/Green Lake, and North Seattle. On the Eastside, three areas had more pending sales than a year ago: the area south of I-90, Bellevue – West of I-405, and Kirkland. Median sales prices in these areas exceeded $1.4 million.

Contact me for more details, or watch the 1.25 minute market report video…

Source: NWMLS 8/7/2023

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31500 33rd Pl SW #G202, Federal Way, WA 98023

$287,500

1 bedroom; 1 bathroom; 842 square feet

You’ll love this large, bright condo with open floorplan that backs to a greenbelt and Joes Creek! The carport is directly in front of the top floor unit that doesn’t require any stairs. Enjoy the new range/oven, microwave, bathroom sink, toilet & some fresh paint! Features include a newer dishwasher, washer & water heater. Also a large bedroom w/work area, deck w/storage, wood fireplace, white millwork & crown molding. You’ll appreciate Madera West’s gated entry, newer roofs, siding, windows & regraded parking lot 8/23. This FHA Approved community features a clubhouse, pool, rec room, hot tub, exercise room, playground, sports court, community garden, RV/boat parking & visitor parking. Full size W/D included, 2 pets & rentals are allowed.

A link to the Flyer…

A link to the 360 degree Tour…

A link to more details and photos…

Sold 10/16/23

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Avoid These 5 Mistakes When Buying a Home

Homebuyers: Dodging these errors could help in ensuring the smoothest possible real estate transaction!

Buying a home is one of the largest transactions most people make in their lifetime. So, it’s essential for homebuyers to have ongoing support as they find their ideal property and navigate the process through a successful closing.

All prospective homebuyers – including those purchasing for the first time – can benefit from avoiding these five mistakes:

Mistake 1: Not working with a real estate agent

While most people begin the homebuying process online by scrolling through listings and saving favorites, they quickly realize how overwhelming it can be to narrow down options – or to see potential in prospective properties.

According to the 2023 RE/MAX Future of Real Estate Report, U.S. homebuyers have identified needing the most help from a real estate agent with three specific tasks:

• Researching listings
• Identifying wants, needs and priorities
• Making home repairs and renovations

As the expert on their local community, a qualified real estate professional with a track record of success can curate a selection of homes and help the buyer as they narrow down the list of candidates.

The skills of an agent come in handy throughout the process. The same RE/MAX report cites a lack of understanding of real estate terminology as a top barrier for consumers pursuing homeownership. A trusted professional can translate industry lingo and help buyers feel informed every step of the way. Plus, by leveraging their knowledge and local expertise, an agent will use their negotiation skills to help the buyers get the price and/or terms they are looking for.

Mistake 2: Not getting pre-approved

The pre-approval process entails a mortgage lender assessing a prospective homebuyer’s finances, usually based on their credit, and providing an estimate on how much money they could borrow to buy a home. Once this step is done, buyers can close a home loan faster if they’re trying to lock down a property on a short timeframe.

Plus, getting pre-approved for a mortgage helps buyers determine a realistic budget and shop in their price range.

Mistake 3: Not being realistic about necessities with contributing parties

When searching for a home, it’s natural to want it all – and it can be especially difficult to compromise on certain features. However, when buying a home with a partner, family member, or friend, it’s important to be on the same page in regard to priorities.

Come up with a list of wants vs. needs, and make sure all contributing parties are in alignment. This can save time and help prioritize which properties to pursue. When assessing a home that meets the criteria for needs – like location, accessibility features, or bedroom count – buyers can connect with their agent to assess the renovation potential for other features they desire.

Mistake 4: Not getting a home inspection

When the housing market leaned heavily in favor of sellers over the past few years, many homebuyers chose to forego a home inspection to gain leverage over competing offers. Now with the market starting to rebalance in many locales, opting out of a home inspection is an unnecessary risk.

During an inspection, the home inspector – who is often recommended by the agent – will check for pre-existing damage on the interior and exterior. This could entail water damage, structural issues, ill-functioning HVAC systems, air quality concerns, and more. If problems arise, the agent and buyer discuss the best next steps to take.

Mistake 5: Not saving money for extra costs associated with buying and moving

Saving up for the down payment on a home is a huge accomplishment. But it’s critical to prepare for other costs as well.

Other potential expenses include closing costs, moving fees, monthly mortgage payments, regular maintenance, emergency funds in case anything in the home needs repair or replacing, and more.

Ultimately, a little effort can go a long way when it comes to avoiding these mistakes and making the homebuying process as smooth as possible. Best of all, the reward will be that much sweeter once the buyer moves in and can enjoy the many benefits of homeownership.

Ready to start the homebuying process? Contact me today!

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RE/MAX National Housing Report for June 2023

June Home Sales Tick Up Over May

June posted month-over-month increases in home sales (up 5.4% from May) and inventory (up 7.2%) while year-over-year activity continued to trail the strong results of early 2022. June 2023 home sales were 18.7% below last June’s, contributing to a first-half 24% decline in closings compared to the first half of 2022 across the 52 metro areas surveyed in the RE/MAX National Housing Report.

June’s year-over-year decline in active inventory of 10.7% was the first such decrease in the past 13 months. New listings, although down 25% compared to a year ago, were up 0.5% over May.

Typically the biggest month for home sales, June produced a median sales price of $425,000 which was the highest since June 2022’s peak price of $426,000.

Other notable metrics:

• Months’ Supply of Inventory in June was 1.4, up from May’s 1.3 but below the 1.6 months recorded a year ago.

• The average close-to-list price ratio for June was 100%, indicating that homes sold for the asking price on average. This matched May’s ratio and was a decline from the 102% ratio recorded a year ago.

• Homes sold in June were on the market for an average of 31 days, which was the same in May but 9 days longer than June of last year.

Read the full article…

Watch the 32 second summary video…

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Washington State NWMLS Market Update for June 2023

The Northwest MLS report summarizing June activity showed there was about six weeks of supply (1.55 months), with twelve of the 26 counties having less than two months of inventory. Among those were King, Kitsap, Pierce and Snohomish counties, where nearly 55% of the inventory is located.

The number of active listings of single-family homes and condominiums systemwide is down nearly 21% from June 2022 (10,607 versus 13,405).

Pending sales for June totaled 7,759. That is a decline from both May’s total of 8,120 (down about 4.4%) and from the year ago total of 8,937 (down about 13.2%).

Last month’s 6,842 closed sales marked the largest number of closings since September, but compared to June 2022 the volume was down about 24%.

On a brighter note for buyers, NWMLS members added 9,481 new listings to inventory during June. That’s the highest total since August 2022 when brokers replenished inventory with 9,914 new listings.

At the end of June, buyers could choose from 10,607 total active listings. Overall, that volume declined about 21% from a year ago. Eleven counties had year-over-year gains in inventory, led by Kittitas (up 45%) and Jefferson (up more than 37%).

Seventeen counties reported a sales price to list price ratio of 99% or higher for last month’s completed transactions of single-family home sales, topped by Kitsap County at 104.9%. Also surpassing the 100% ratio were Franklin, King, Pierce, Snohomish, Thurston, Jefferson, Skagit, Clark, Island and Cowlitz counties.

The median price for last month’s 6,842 closed sales was $625,000. That is a drop of 3.85% from a year ago, but prices are up about 12.2% since January when the median price was $557,250. Seventeen counties reported double-digit price gains since January.

Contact me for more details, or watch the 1.25 minute market report video…

Source: NWMLS 7/6/2023

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5 Timely Tips for Home Sellers, According to Real Estate Agents

Current housing market conditions and seasonal demand may impact how sellers prepare their property to sell this summer.

Feel that summer sunshine? It’s an indicator that one of the busiest times for buying and selling homes is officially here. According to the latest RE/MAX National Housing Report, inventory remains low but the number of homes for sale is up nearly 10% since the same time last year. With prospective buyers having a few more options to choose from, home sellers need to make sure their property stands out among the competition.

If you’re planning on selling a home this summer – and hoping to earn top dollar – consider these pointers from RE/MAX agents.

1. Work with an agent from the get-go

A qualified real estate agent isn’t just helpful when it’s time to list a home for sale. They can also offer guidance as a seller prepares the home – leveraging extensive market knowledge to provide suggestions on aesthetics and price.

“My first piece of advice is to find a real estate agent and bring them on board as quickly as possible,” shares Christopher Audette, team leader of The Group at RE/MAX First in Calgary, Alberta. “Starting the conversation as far in advance is really advisable. Get their advice on items to clean up or fix up – things that will make the biggest difference in getting the best listing photos and the best listing price.”

When searching for a professional to work with, consider their comparable properties sold and experience through different housing markers. It’s good to keep in mind that RE/MAX agents have more real estate sales experience than other real estate agents.

2. Put your (home’s) best foot forward

In many locales, housing continues to rebalance, with homes spending more time on market than years prior. Sellers are having to work a bit more on preparing their home for showing.

“In my local market, we’re still low on inventory so we’re still in somewhat of a seller’s market, but sellers are having to do more to spruce up their home,” says Donna Deaton, an agent with RE/MAX Victory + Affiliates in Liberty Township, Ohio. “We’re also seeing the return of home inspections on nearly every property. People are taking a bit more time before they make an offer or bid high.”

Deaton continues, “It’s essential to depersonalize your home. You want the buyers to be able to envision themselves living there – without your personal mementos.”

3. Leverage the season in listing photos

When it comes to searching for a home, buyers often form their first impression based on an online listing, which typically depicts a property’s exterior – the same exterior they’ll see when they first arrive for a showing. Curb appeal, in turn, is especially important in the summertime when vivid outdoor colors can enhance a yard’s appearance – and a lack of proper care can be glaringly obvious.

“If a buyer is going to come in with a strong offer, you want them to know that your home is well maintained and cared for,” Deaton says. “In the spring and summer, we want to see clean landscaping with the addition of flowers, fresh mulch and/or new rocks. We don’t want to see bushes that look like they haven’t been trimmed in six months. We want to see a freshly painted door, and we don’t want to see paint chipping.”

4. Aim for a move-in-ready appearance

Nowadays, modern life means many people are constantly on the go. Consequently, many don’t have the time or resources to take on a fixer-upper.

According to the 2023 RE/MAX Future of Real Estate Report, “While construction woes and inflated material costs have left many reconsidering their love affair with home renovation and DIY, the desire for durability upfront has others looking for better quality homes from the get-go.”

This means today’s prospective buyers seem more inclined to pursue a home that looks as move-in-ready as possible. As a seller, making smaller upgrades upfront can aid in that.

“We have a lot of first-time homebuyers who aren’t in the market to make tons of repairs. So, if you’re walking through your home and notice your faucet dripping, fix it or replace it. Make sure you don’t have anything that’s going to make that buyer turn around and walk out,” Deaton warns. “A lot of times I’ll even recommend sellers have a pre-inspection done; that way we can knock these issues out.”

5. Think like a buyer, too

If you’re selling a home in the current market, there’s a good chance you’re also going to be buying a home in the current market. Keep those costs – and timeline – in mind if you’re navigating two transactions simultaneously. This helps keep priorities straight when you consider offers on your home for sale.

Audette advises sellers to think about their current mortgage, and what a future one could look like, too.

“Interest rates are a big topic of conversation right now. It’s important to figure out if you’re able to port your mortgage rate and take it with you, perhaps saving you from higher interest rates,” he says. “When moving, understand what it looks like getting into a new mortgage and what the difference in [monthly] cost may be. These things are really important to discuss with your bank and/or your mortgage broker in advance to get a clear look at the whole financial picture, both on the sale and upcoming purchase.”

Preparing to sell your home this summer? Contact me; I’ll be happy to help!

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RE/MAX National Housing Report for May 2023

May Delivers 20% Increase in Homes Sales Ahead of Peak Months

The latest national housing report for May reveals a seasonal, 20% increase in home sales over April, as well as an 8.7% uptick in new listings. While sales are still down 18.7% from last May, solid demand amid tight inventory helped push the median sales price up by 3.2%, month over month, to $423,000.

Ahead of the peak home sales months of June and July, the report shows a slight increase of 0.4% in inventory month over month, with housing supply up by 9.7% compared to May 2022.

Other notable metrics:

• May’s median sales price was the highest since June 2022, coming in at $3,000 less than that month’s figure of $426,000.
• New listings saw a nearly 10% gain over April but were still down 20.4% compared to May 2022 levels.
• Months’ Supply of Inventory in May was 1.2, down from 1.3 in April but above the 1.1 recorded a year ago.
• The average close-to-list price ratio for May was 100%, indicating that homes sold for the asking price on average. This is an increase from April’s 99% ratio and a decrease from the 103% ratio recorded a year ago.
• Homes sold in May were on the market for an average of 31 days, which is three days less than April but 10 days longer than the same period last year.

Read the full article…

Watch the 32 second summary video…

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Washington State NWMLS Market Update for May 2023

Home buyers around Washington state found the largest selection of listings last month since December. Both pending sales and closed sales reached their highest volume in months. Brokers at Northwest Multiple Listing Service (NWMLS) welcomed the uptick in activity but say rising interest rates are crimping activity.

Northwest MLS statistics for May show the area-wide median price of $615,000 is down 6.8% from the year-ago figure of $660,000, but it’s up nearly 10.4% since January when the median sales price was $557,250.

House-hunters could choose from 9,079 active listings in the MLS database at the end of May, the highest level since December. Compared to a year ago, there are about 3.2% more listings. Despite the increase, inventory remains tight with only 1.44 months of supply.

The selection was even more limited across the four-county Puget Sound region, with Snohomish County reporting about 3.5 weeks of supply (0.88 months of inventory). Pierce County was slightly better at 1.09 months, followed by King (1.26 months) and Kitsap (1.3 months). Industry experts consider four-to-six months to be a balanced market.

Brokers added 9,247 new listings during May and reported 8,120 pending sales (mutually accepted offers). The new listings volume was well below the year-ago total of 13,075, but easily surpassed April’s figure (7,303) and was the highest monthly number since September when brokers added 9,422 new listings.

Last month’s pending sales volume (8,120) was down 23% from a year ago, but up nearly 13.8% from April’s total (7,137). Twenty-two of the 26 counties in the MLS report experienced double-digit declines compared to a year ago. All but four counties improved on April’s pending sales.

May’s pending sales of single-family homes and condominiums (combined) marked the highest monthly total since August when brokers notched 9,552 mutually accepted offers.

Closed sales followed a similar pattern. Brokers reported 6,310 completed transactions last month, down 30.6% from a year earlier, but up 18.2% when compared to April. Last month’s closings marked the highest number since October’s total of 6,464.

The year-over-year drop in median prices, at -6.8%, was the smallest decline since February when YOY prices declined 1.7%. Compared to January, all but four of the 26 counties in the report show year-to-date price gains, including 12 counties with double-digit increases.

Contact me for more details, or watch the 1.25 minute market report video…

Source: NWMLS 6/5/2023

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RE/MAX National Housing Report for April 2023

April Sales Decline of 7.6%
In Contrast with Seasonal Ramp-Up

The seasonal ramp-up to peak summer homebuying did not occur in April as closings dropped 7.6% from March across the report’s 49 metro areas. That came as the Median Sales Price rose 2.3% to $409,000 month-over-month and inventory inched up 1.8% over the prior month.

The number of home sales typically increases every month from February to June. But April posted a decline despite a month-over-month increase in new listings of 5.6%. Year-over-year, April sales were down 29.5% while new listings were 22.1% lower.

Other notable metrics:

• The median sales price has increased 6.2% since January after dropping 9.6% the previous seven months.

• Months’ Supply of Inventory in April was 1.3, unchanged from March but above the 1.0 a year ago.

• April’s average close-to-list price ratio was 99%, meaning that on average, homes sold for 1% less than the asking price. A year ago, it was 103%.

• Homes sold in April were on the market for an average of 33 days – six days less than March but 10 days longer than a year ago.

Read the full article…

Watch the 32 second summary video…