Berkshire Hathaway HomeServices Northwest Real Estate Federal Way & Puyallup

Earlier this month, the  National Association of Realtors  (NAR) released a special study titled  Single-Family Home Price Gains by Years of Tenure . The study estimates median home price appreciation over the last 30 years based on the length of homeownership. Below are three graphs depicting the most important data revealed in the study. How much have home prices increased? One of the first measures of the financial benefits of homeownership is the net worth (in the form of equity) an owner can build over time. The study showed the average increase in home values based on how long homeowners stayed in a home. What was the percentage of appreciation? Another way to look at this is by the percentage increase in value over time, called appreciation: Was this appreciation consistent throughout the country? Today, when we think of markets that have done well over the last decade, we have a tendency to think about San Francisco, San Diego, Seattle, and other West Coast cit

The housing market has started off much stronger this year than it did last year.  Lower mortgage interest rates  have been a driving factor in that change. The average 30-year rate in 2019, according to  Freddie Mac,  was 3.94%. Today that rate is closer to 3.5%. The  Census Bureau  also just  reported  the  highest homeownership rate  since 2014 for people under 35. This is evidence that owning their own home is becoming more important to Millennials as they reach the age where marriage and children are part of their lives. According to the latest  Realtors Confidence Index Survey  from the  National Association of Realtors  (NAR),  buyer demand across the country is strong . That’s not the case, however, with seller demand, which remains weak throughout most of the nation. Here’s a breakdown by state: Demand for housing is high, but supply is extremely low. NAR also just  reported  that the actual number of homes currently for sale stands at  1.42 million , which is one of th

One thing helping homeowners right now is price appreciation, especially in the entry-level market. In the latest  Home Price Insights  report,  CoreLogic  reveals how home prices increased by 4% year-over-year and projects prices will rise 5.2% by December 2020. Why is this good news for the homeowners? When prices appreciate, homeowners gain  equity . In addition, those planning to sell this year, especially in the entry-level market, can potentially earn a substantial profit. Dr. Frank Nothaft,  Chief Economist  at  CoreLogic , says: “Moderately priced homes are in high demand and short supply, pushing up values…Homes that sold for 25% or more below the local median price experienced a 5.9% price gain in 2019, compared with a 3.7% gain for homes that sold for 25% or more above the median.” As Dr. Nothaft indicates, the lack of  inventory  continues to drive home price growth. This means there’s a high demand for homes in this tier of the market, making it a great time

According to the Census Bureau, HUD and Commerce Department  This Week in Real Estate   the  market to start the year for newly built single-family homes experienced significant growth year-over-year. Permits in January reached their highest level since June 2007 and housing starts were 21.4% above January 2019.  Below  are a few highlights from the  third week of February  that influence our business: *  Housing Starts Mark a Solid Start in 2020 .   Relative to January 2019 total housing starts are 21.4 percent above the annual pace of 1.29 million units. The three-month moving average for single-family in January is an annual rate of 1,008,000 units, which is the highest pace since the Great recession.   Single-family permits have registered a 20.2 percent gain compared to a year ago. This is in line with the NAHB/Wells Fargo Housing Market Index, which held builder confidence in the market for newly-built single-family homes at a solid level of 74 in February. Regional data

Homes priced in the top 25% of a price range for a particular area of the country are considered “premium homes.” At the start of last year, many of the more expensive homes listed for sale hadn’t seen as much interest, since much of the demand for housing over the past few years has come from first-time buyers looking for starter homes. It looks like buyer activity, however, is starting to show a shift in this segment. According to the  January Luxury Report  from the  Institute for Luxury Home Marketing  (ILHM): “In a snapshot of 2019, despite pessimism at the start of the year, the last quarter showcased a strengthening, with an upswing in the luxury market for sales in both the single family and condo markets.” Momentum is growing, and those looking to enter the  luxury market  are poised for success in 2020 as well. With more inventory available at the upper-end, historically low interest rates, and increasing average wages, the stage is set for buyers with an interest

After over a year of moderating home prices, it appears home value appreciation is about to reaccelerate. Skylar Olsen,  Director of Economic Research  at  Zillow , explained in a  recent article :  “A year ago, a combination of a government shutdown, stock market slump and mortgage rate spike caused a long-anticipated inventory rise. That supposed boom turned out to be a short-lived mirage as buyers came back into the market and more than erased the inventory gains. As a natural reaction, the recent slowdown in home values looks like it’s set to reverse back.” CoreLogic , in their  January 2020 Market Pulse Report , agrees with Olsen, projecting home value appreciation in all fifty states this year. Here’s the breakdown: 21 states appreciating 5% or more 26 states appreciating between 3-5% Only 3 states appreciating less than 3% The Misconception Many believe when real estate values are increasing, owning a home becomes less affordable. That misconception is not nece

The Mortgage Bankers Association reported  This Week in Real Estate  that the market to open the new decade was the strongest January for purchase mortgage applications since 2009. In addition, the streak of U.S. job gains was pushed to 112 consecutive months.  Below  are a few highlights from the  second week of February  that influence our business: *  Homebuying Season Definitely Started Early This Year .   Typically, spring homebuying season starts in earnest as the calendar ticks toward March, but homebuyers are seemingly getting an earlier start this year. A new report from the Mortgage Bankers Association shows that spring homebuying season officially began in January this year.   According to the MBA, January 2020 was the strongest January for purchase mortgage applications in 11 years.   And the increase in mortgage applications has continued into February.   The report also showed that mortgage applications rose 1.1% in the last week from one week prior, marking the