Berkshire Hathaway HomeServices Northwest Real Estate Federal Way & Puyallup

According to ATTOM Data Solutions Year-End 2019 U.S. Home Sales Report released  This Week in Real Estate , the average home seller profit represented a 34 percent return on investment compared to the original purchase price. The average ROI in 2019 is the highest average home-seller ROI since 2006.  Below  are a few highlights from the  third week of January  that influence our business: *  Existing Home Sales End Year With Solid Gain .   After a slight decline last month, existing home sales, released by the National Association of Realtors (NAR), surged to near two-year high in December. Total existing home sales, including single-family homes, townhomes, condominiums and co-ops, rose 3.6% to a seasonally adjusted annual rate of 5.54 million in December, the highest level since February 2018. On a year-over-year basis, sales were 10.8% higher than a year ago.   Regionally, all regions saw an increase in existing home sales in December except for the Midwest, compared to pre

In the latest  Housing Trends Report , the  National Association of Home Builders  (NAHB) measured the share of adults planning to buy a home over the next 12 months. The report indicates the percentage of all buyers that will be first-time buyers looking to purchase a home grew from 58% in Q4 2018 to 63% in Q4 2019. The results  revealed , “Millennials are the most likely generation to be making plans to purchase a home within a year (19%), followed by Gen Z (13%) and Gen X (12%)…Prospective buyers in the youngest two generations are primarily first-time buyers:  88% of Gen Z buyers and 78% of Millennial buyers are reaching out to homeownership for the first time in their lives.” With a high demand from first-time homebuyers and a shortage of  inventory  in the current market, selling your existing home this year might be your best move. Why? Because when homebuyers begin their search, they’re not all looking for new construction. Many are eager to find a little charm and c

In a market where current  inventory  is low, it’s normal to think buyers might be willing to give up a few desirable features in their home search in order to make finding a house a little easier. Don’t be fooled, though – there’s still an interest in the market for some key upgrades. Here’s a look at the two surprising things buyers seem to be searching for in today’s market, and how they’re impacting new home builds. Homebuyers Are Not Giving Up Their Garages The  National Association of Home Builders  (NAHB) recently released an  article  showing the percentage of new single-family homes completed in 2018. The data reveals, 64% of new homes offer a 2-car garage 21% have a garage large enough to hold 3 or more cars 7% have a 1-car garage 7% do not include a garage or carport 1% have a carport The following map represents this breakdown by region: Evidently, a garage is something homebuyers are looking for in their searches, but that’s not all. Homebuyers Are Not Gi

There is strong momentum to start the new decade as the purchase index increased to its highest level since October 2009, according to the Mortgage Bankers Association  This Week in Real Estate . While mortgage interest rates remain very favorable, builder confidence has reached its highest sentiment levels since July 1999 as housing starts jumped in December to their highest level in 13 years.  Below  are a few highlights from the  second week of January  that influence our business: *  Housing Starts Soar to a 13-Year High .   Housing construction continued to improve in December as the nation’s homebuilders increased their building efforts nationwide, sending the unadjusted pace to a 13-year high. According to the Department of Housing and Urban Development and the Department of Commerce, housing starts spiked 16.9% in December to a seasonally adjusted annual rate of 1.608 million and the pace for November was revised upward.   In December, single-family starts grew 11.2% f

According to an  Urban Institute  study, homeowners who purchase a house before age 35 are better prepared for retirement at age 60. The good news is, our younger generations are strong believers in homeownership. According to a  Freddie Mac  survey, “The dream of homeownership is alive and well within “Generation Z,” the demographic cohort following Millennials. Our survey…finds that Gen Z views homeownership as an important goal. They estimate that they will attain this goal by the time they turn 30 years old, three years younger than the current median homebuying age (33).” If these aspiring homeowners purchase at an early age, the  Urban Institute  study shows the impact it can have. Based on this data, those who purchased their first homes when they were younger than 25 had an average of $10,000 left on their mortgage at age 60. The 50% of buyers who purchased in their mid-20s and early-30s had close to $50,000 left, but traditionally purchased more expensive home

According to the Federal Reserve’s Flow of Funds report released  This Week in Real Estate  the value of U.S. owner-occupied homes increased to a record of $29.2 trillion in the third quarter of 2019. Home values rise as mortgage rates remain low. Fannie Mae believes the average fixed rate in 2020 will probably be 3.6% and if so, will be the lowest annual average ever recorded in Freddie Mac records going back to 1973.  Below  are a few highlights from the  first full week of 2020  that influence our business: *  U.S. Home Values Rise to Record $29.2 Trillion, Fed Says .   The value of all U.S. owner-occupied homes increased to a record $29.2 trillion in the third quarter, according to a Federal Reserve report known as the Flow of Funds. That was a gain of 4.2% from a year earlier, the slowest annualized increase since 2012. The collective value of U.S. homes is now 21% higher than the bubble peak reached in 2006.   The Fed’s tally of home values for all U.S. residential real