Berkshire Hathaway HomeServices Northwest Real Estate Federal Way & Puyallup

  As we move into the latter half of the year, questions about what’s to come are top of mind for buyers and sellers. Near record-low mortgage rates coupled with rising home price appreciation kicked off a robust housing market in the first half of 2021, but what does the forecast tell us about what’s on the horizon? Mortgage Rates Will Likely Increase, but Remain Low Many experts are projecting a rise in interest rates. The latest  Quarterly Forecast  from  Freddie Mac   states : “ We forecast that   mortgage rates will continue to rise through the end of next year.  We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.” However, even as mortgage rates rise, the anticipated increase is expected to be modest at most, and still well below  historical averages . Rates remaining low is good news for homebuyers who are looking to maximize their  purchasing power . The same report from  Freddie Mac  goes on

  In today’s real estate market, low inventory and high demand are driving up home prices. As many as  54%  of homes are getting offers over the listing price, based on the latest  Realtors Confidence Index  from the  National Association of Realtors  (NAR). Shawn Telford,  Chief Appraiser  at  CoreLogic ,  elaborates : “The frequency of buyers being willing to pay more than the market data supports is increasing.” While this is great news for today’s sellers, it can be tricky to navigate if the price of your contract doesn’t match up with the  appraisal  for the house. It’s called an  appraisal gap , and it’s happening more in today’s market than the norm. According to recent data from  CoreLogic ,  19%  of homes had their appraised value come in below the contract price in April of this year. That’s  more than double  the percentage in each of the two previous Aprils. The chart below uses the latest insights from NAR’s Realtors Confidence Index to showcase how often an issue with an

  Good Morning! According to the National Association of Realtors This Week in Real Estate home sales activity is now approaching pre-pandemic levels. May’s modest decrease from prior month was the fourth consecutive, but despite the streak of monthly decreases total existing-home sales are up 44.6% year-over-year with the West experiencing 61.6% year-over-year growth. Below are a few newsworthy events from the fourth week of June that influence our business:  * Existing-Home Sales Experience Slight Skid of 0.9% in May. Existing-home sales decreased for a fourth straight month in May, according to the National Association of Realtors. However, each of the four areas again registered double-digit year-over-year gains. Total existing-home sales   dropped 0.9% from April to a seasonally-adjusted annual rate of 5.80 million in May. Sales in total climbed year-over-year, up 44.6% from a year ago (4.01 million in May 2020). "Home sales fell moderately in May and are now approach

  Selling a house is a time-consuming process – especially if you decide to do it on your own, known as a  For Sale By Owner (FSBO) . From conducting market research to reviewing legal documents, handling negotiations, and more, it’s an involved and highly detailed process that requires a lot of expertise to navigate effectively. That’s one of the reasons why the percentage of people selling their own house has declined from 19% to  8%  ( S ee graph below ): To help you understand just how much time and effort it takes to sell on your own, here’s a look at a few of the things you need to think about before putting that “For Sale” sign up in your yard. 1. Making a Good First Impression While it may sound simple, there are a lot of proven best practices to consider when prepping a house for sale. Do you need to take down your personal art? What’s the right amount of landscaping to boost your curb appeal? What wall colors are most appealing to buyers? If you do this work on your own, you

  Some Highlights Today’s sellers’ market provides unique  challenges —and benefits—for buyers. Current  low interest rates  won’t last forever, and home prices are  forecast  to rise. If you’re a homebuyer, hang in there. Homeownership improves your  quality of life , and the  long-term benefits  outweigh the short-term challenges.

  The pandemic created a tremendous interest in  vacation homes  across the country. Throughout the last year, many people purchased second homes as a safe getaway from the challenges of the health crisis. With many professionals working from home and many students taking classes remotely, it made sense to see a  migration away  from cities and into counties with more vacation destinations. The  2021 Vacation Home Counties Report  from the  National Association of Realtors  (NAR) shows that this increase in vacation home sales continues in 2021. The report examines sales in counties where “ vacant seasonal, occasional, or recreational use housing account for at least 20% of the housing stock ” and compares that data to the overall residential market. Their findings show: Vacation home sales  rose by 16.4%  to 310,600 in 2020, outpacing the 5.6% growth in total existing-home sales. Vacation home sales are  up 57.2% year-over-year  during January-April 2021 compared to the 20% year-over-

  Building financial wealth and stability remains one of the  top reasons  Americans choose to own a home, and as a homeowner, your wealth often grows without you even realizing it. In a recent paper published by the  Urban Institute,   Home Ownership is Affordable Housing , author Mike Loftin illustrates how homeowners increase their equity and their wealth simply by making monthly mortgage payments: “The principal portion that reduces the loan balance builds the homeowner’s equity. In doing so, the principal payments behave like an automatic savings account. The principal payment is not money going out; it is money staying in.” But home equity – the difference between the value of your home and what you currently owe – isn’t just built through your monthly principal payments. Home price appreciation plays a vital role in growing your equity and, ultimately, your wealth. As  Freddie Mac   explains : “Homeownership has cemented its role as part of the American Dream, providing families