Berkshire Hathaway HomeServices Northwest Real Estate Federal Way & Puyallup

In today’s economy, everyone seems to be searching for signs that a recovery is coming soon. Many experts agree that it may actually already be in motion or will be  starting  by the 3 rd  quarter of this year. With the housing market positioned to  lead the way  out of this  recession , builder confidence might be a bright spark that gets the recovery fire started. The construction of new homes coming right around the corner is a huge part of that effort, and it may drive your opportunity to make a move this year. According to the  National Association of Home Builders  ( NAHB ):   “New home sales jumped in May, as housing demand was supported by low interest rates, a renewed household focus on housing, and rising demand in lower-density markets. Census and HUD estimated new home sales in May at a 676,000 seasonally adjusted annual pace, a 17% gain over April.”   In addition, builder confidence is also rising, opening up opportunity for newly constructed homes in the market. The  NAHB

One of the biggest questions on everyone’s minds these days is:  What’s going to happen to the housing market in the second half of the year?  Based on recent data on the economy, unemployment, real estate, and more, many economists are revising their forecasts for the remainder of 2020 – and the outlook is extremely encouraging. Here’s a look at what some experts have to say about key areas that will power the industry and the economy forward this year. Mortgage Purchase Originations:  Joel Kan,  Associate Vice President of Economic and Industry Forecasting ,  Mortgage Bankers Association “The recovery in housing is happening faster than expected. We anticipated a drop off in Q3. But, we don’t think that’s the case anymore. We revised our Q3 numbers higher. Before, we predicted a 2 percent decline in purchase originations in 2020, now we think there will be 2 percent growth this year.” Home Sales:  Lawrence Yun , Chief Economist, National Association of Realtors “Sales c

The Mortgage Bankers Association reported  This Week in Real Estat e  that they expect the volume of home-financing will reach its highest level since 2006. As the summer selling season begins in earnest the realtor.com Housing Market Recovery Index is just 8.0 points below the pre-COVID baseline (the West region is within 0.4 points of that baseline).  Below are a few newsworthy events from the  fourth  week of  June  that influence our business:  *  Pace of Home Sales Improving Rapidly But COVID-19 Containment Key to Recovery .   Nationally, the real estate market continues to warm up as economies reopen and more buyers return to the streets, but uncertainty remains as COVID-19 concerns linger. The realtor.com Housing Market Recovery Index reached 92.0 nationwide for the week ending June 20, the highest index value since the middle of March when COVID-19 disruptions began. This week’s move represents a 2.0 point increase over the prior week, and the largest weekly jump in fo

Some Highlights   For Sale By Owner (FSBO)  is the process of selling real estate without the representation of a real estate broker or real estate agent. According to the  National Association of Realtors’  Profile of Home Buyers & Sellers ,  35% of homeowners who decided to FSBO last year did so to avoid paying a commission or fee. But, homes sold with an agent net 6% more than those sold as a FSBO according to  Collateral Analytics . Before you decide to take on the challenge of selling your house on your own, connect with a trusted real estate professional to discuss your options.

Earlier this month,  realtor.com  announced the release of their initial  Housing Recovery Index , a weekly guide showing how the pandemic has impacted the residential real estate market. The index leverages a weighted average of four key components of the housing industry, tracking each of the following: Housing Demand  – Growth in online search activity Home Price  – Growth in asking prices Housing Supply  – Growth of new listings Pace of Sales  – Difference in time-on-market The index then compares the current status  “to the last week of January 2020 market trend, as a baseline for pre-COVID market growth. The overall index is set to 100 in this baseline period. The higher a market’s index value, the higher its recovery and vice versa.” The graph below charts the index by showing how the real estate market started out strong in early 2020, and then dropped dramatically at the beginning of March when the pandemic paused the economy. It also shows the strength of the rec

A worldwide pandemic and an economic recession have had a tremendous effect on the nation. The uncertainty brought about by both has made predicting consumer behavior nearly impossible. For that reason, forecasting home prices has become extremely difficult. Normally, there’s a simple formula to determine the future price of any item: calculate the supply of that item in ratio to the demand for that item. In housing right now, demand far exceeds supply. Mortgage applications to buy a home just rose to the  highest level in 11 years  while inventory of homes for sale is at (or near) an all-time low. That would usually indicate strong appreciation for home values as we move throughout the year. Some experts, however, are not convinced the current rush of purchasers is sustainable. Ralph McLaughlin,  Chief Economist  at  Haus , explained in their  June 2020 Hausing Market Forecast  why there is concern: “The upswing that we’ll see this summer is a result of pent-up demand from h

According to the latest  FreddieMac Quarterly Forecast , mortgage interest rates have fallen to historically low levels this spring and they’re projected to remain low. This means there’s a huge incentive for buyers who are ready to purchase. And homeowners looking for eager buyers can take advantage of this opportune time to sell as well. There’s a very positive outlook on interest rates going forward, as the  projections  from the  FreddieMac  report indicate continued lows into 2021: “Going forward, we forecast the 30-year fixed-rate mortgage to remain low, falling to a yearly average of 3.4% in 2020 and 3.2% in 2021.”   With mortgage rates hovering at such compelling places, ongoing  buyer interest  is bound to keep driving the housing market forward. Rates also reached another record low last week, so homebuyers are in what  FreddieMac  is identifying as the buying mood: “While the rebound in the economy is uneven, one segment that is exhibiting strength is the housi