Berkshire Hathaway HomeServices Northwest Real Estate Federal Way & Puyallup

Home prices have appreciated considerably over the last five years. This has some concerned that we may be in for another dramatic correction. However, recent statistics suggest home values will not crash as they did a decade ago. Instead, this time they will come in for a soft landing. The previous housing market was fueled by an artificial demand created by mortgage standards that were far too lenient. When this demand was shut off, a flood of inventory came to market. This included heavily discounted distressed properties (foreclosures and short sales). Today’s market is totally different. Mortgage standards are tighter than they were prior to the last boom and bust. There is no fear that a rush of foreclosures will come to market. The  Mortgage Bankers’ Association  just  announced  that foreclosures are lower today than at any time since 1996. Case Shiller  looks at the percentage of appreciation as compared to the same month the year prior. Here is a graph of their findin

According to  Freddie Mac’s   Primary Mortgage Market Survey , interest rates for a 30-year fixed rate mortgage are currently at their lowest for 2019. Rates like these haven’t been seen since February 2018! Last week’s survey results reported an interest rate of 4.35%. This is a welcome change from the near 5% rates seen in mid-November. At 4.32%, the second week of February 2018 was the last time rates were this low. This can be seen in the chart below. Freddie Mac’s  Chief Economist, Sam Khater, had this to say: “Mortgage rates fell for the third consecutive week, continuing the general downward trend that began late last year. Wages are growing on par with home prices for the first time in years, and with more inventory available, spring home sales should help the market begin to recover from the malaise of the last few months.” Bottom Line If you plan on buying a home this spring, meet with a local real estate professional who can help prepare you for today’s mar

Every family has a list of important dates. We celebrate birthdays, anniversaries, pet adoptions…and the list goes on. For  64.4 percent  of households in the United States, this list includes the day they became a homeowner for the first time! Why is this date important? Homeownership is not just a roof over your head! It represents shelter, stability, wealth, and pride! For decades, homeownership has been an important part of the American Dream! However, many question if the next generations see the same benefits of homeownership as their predecessors. In case we have forgotten, some of those benefits are: Non-Financial Benefits Educational Achievement : Homeownership has a positive impact on academic achievement, including reading and math performance in children 3-12 years old. Civic Participation:  “ Owning a home means owning a part of the neighborhood. ” Homeowners have a stronger connection to their neighborhood and are more committed to volunteer. Health Benefit

Every three years, the  Federal Reserve  conducts their  Survey of Consumer Finances . Data is collected across all economic and social groups. The latest survey data covers 2013-2016. The study revealed that the median net worth of a homeowner is $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013). These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter. Owning a home is a great way to build family wealth. As we’ve said before, simply put, homeownership is a form of  ‘forced savings.’  Every time you pay your mortgage, you are contributing to your net worth by increasing the  equity  in your home. That is why  Gallup   reported  that Americans picked real estate as the best long-term investment for the fifth year in a row. According to this year’s results, 34% of Americans chose real estate. Stocks followed at 26%, and then gold, savi

ome Highlights: Setting up an automatic savings plan that saves a small amount of every check is one of the best ways to save without thinking too much about it. Living within a budget right now will help you save money for down payments while also paying down other debts that might be holding you back. What are you willing to cut back on to make your dreams of homeownership a reality? FEBRUARY 22, 2019  BY  KCM CREW

The housing market has been hot for a while now. Homes have been flying off the shelves as fast as they have been listed. Buyers have been competing in bidding wars just to find a home to buy, let alone find their dream home. This  ‘seller’s market’  has driven home prices to new heights. Home price appreciation averaged over 6% across the country. However, home price growth has recently started to cool down. The latest  report  from  CoreLogic  shows that home prices have only risen by 4.7% over the last 12 months. Many buyers and sellers planning to enter the housing market this year have started to wonder if we are headed towards another housing crash. Ralph McLaughlin,  Deputy Chief Economist at CoreLogic , recently stated in an  interview , “There’s no reason to panic right now, even if we may be headed for a recession. We’re seeing a cooling of the housing market, but nothing that indicates a crash. The real elephant in the room here is housing supply.” The simpl

Many homeowners believe that rising  interest rates  and  home prices  have scared away buyers and therefore have not listed their houses for sale. However, the truth is that buyers who were unable to find a home last year are out in force, and there are even more coming! NerdWallet’s  2018 Home Buyer Report  revealed that: “Approximately one-third (32%) of Americans plan to purchase a home in the next five years. Millennials are most likely to have such a purchase in their five-year plan (49%), versus 35% of Generation X and 17% of baby boomers.” As we can see, buyers are optimistic! According to the report, here are the top reasons Americans plan to buy: The most common reason Americans prioritize buying is that they believe it’s a  good investment ! If you’re a homeowner looking to sell, 2019 is the perfect year to put your house on the market.  But why? Buyers  want  to buy No competition! At least 3 of the renowned organizations that report on real estate mar

Home prices end 2018 rising at a ‘healthier’ pace according to NAR chief economist Lawrence Yun  This Week in Real Estate   while unemployment is at a near 50-year low, mortgage performance is strong and household debt levels relative to disposable incomes are at a 35-year low.  Below are a few highlights from the  second  week of  February  that influence our business : *  Metro Home Prices Jump 4% in 2018’s Fourth Quarter .   Inventory increased and metro market prices rose at a slower pace in the fourth quarter of 2018, according to the latest quarterly report by the National Association of Realtors®. The national median existing single-family home price in the quarter was $257,600, up 4.0 percent from the fourth quarter of 2017 ($247,800). Lawrence Yun, NAR chief economist, says in light of the various hurdles for 2018, the close of the fourth quarter was promising. “Home prices continued to rise in the vast majority of markets but with inventory steadily increasing, h