Berkshire Hathaway HomeServices Northwest Real Estate Federal Way & Puyallup

  It’s economy 101 – when supply is low and demand is high, prices naturally rise. That’s what’s happening in today’s housing market. Home   prices are appreciating   at near-historic rates, and that’s creating some challenges when it comes to   home appraisals . In recent months, it’s become increasingly common for an appraisal to come in below the contract price on the house. Shawn Telford, Chief Appraiser for  CoreLogic , explains it like this: “ Recently, we observed buyers paying prices above listing price and higher than the market data available to appraisers can support.  This difference is known as ‘the appraisal gap . . . . ’” Why does an appraisal gap happen? Basically, with the heightened buyer demand, purchasers are often willing to pay over asking to secure the home of their dreams. If you’ve ever toured a house you’ve fallen in love with, you understand. Once you start to picture yourself and your furniture in the rooms, you want to do everything you can to land the prop

  Becoming financially secure is an important goal for many people today, but some don’t realize just how much   homeownership   can help them achieve that dream. A recent report,   The Journey Toward Financial Freedom ,   surveys Americans about their perspective on financial wellness and their goals. It shows there may be a significant misconception about the role owning a home plays in building wealth: “Home ownership is one of the indicators Americans say is  least connected to financial health .” Two major personal wealth goals – homeownership and net worth – work hand-in-hand. Below are just a few reasons why, if you’re looking for financial security, homeownership should be a top priority. Homeownership Is an Important Cornerstone of Building Wealth Every three years, the  Federal Reserve  releases the  Survey of Consumer Finances  which highlights the difference in wealth between homeowners and renters. The graph below shows the findings across the previous surveys including th

Good Morning! The National Association of Realtors announced This Week in Real Estate that after four (4) months of declines, existing home sales increased for the second consecutive month last month. Sales of newly-constructed single family homes also realized a slight gain. The median existing-home sales price recorded its 113th consecutive month of year-over-year gains; more than 9 straight years. Below are a few newsworthy events from the fourth week of August that influence our business:  * Existing-Home Sales Climb 2.0% in July. T otal existing-home sales grew 2.0% from June to a seasonally adjusted annual rate of 5.99 million in July. Sales inched up year-over-year, increasing 1.5% from a year ago (5.90 million in July 2020). "We see inventory beginning to tick up, which will lessen the intensity of multiple offers," said Lawrence Yun, NAR's chief economist. Total housing inventory at the end of July totaled 1.32 million units, up 7.3% from June's supply

Some Highlights When it comes to  selling  your house, you want it to look its best inside and out. It’s important to focus on tasks that can make it inviting, show it’s cared for, and boost your curb appeal for  prospective buyers . Work with your trusted  real estate advisor  to determine what you need to do to make sure it shows well and catches a buyer’s eye.

There are many  non-financial benefits  of buying your own home. However, today’s headlines seem to be focusing primarily on the financial aspects of homeownership – specifically affordability. Many articles are making the claim that it’s not affordable to buy a home in today’s market, but that isn’t the case. Today’s buyers are spending approximately  20% of their income  on their monthly mortgage payments. According to  The Essential Guide to Creating a Homebuying Budget  from  Freddie Mac , the 20% of income that purchasers are currently paying is well within the 28% guideline suggested: “Most lenders agree that  you should spend no more than 28% of your gross monthly income on a mortgage payment  (including principal, interest, taxes and insurance).” So why is there so much talk about challenges regarding affordability? It’s Not That Homes Are Unaffordable – It’s That They’re Less Affordable. Since home prices are rising, it’s true that homes are less affordable than they have been

  If you’re trying to decide whether or not to  sell your house , this is the time to think seriously about making a move.  Fannie  Mae’s  recent  Home Purchase Sentiment Index  (HPSI) reveals the number of respondents who say it’s a good time to sell is higher now than it was over the past few summers ( see graph below ).  Today, the majority of consumers, 75 percent, say it’s a good time to  sell a house . Why is sellers sentiment up year-over-year? The higher good time to sell sentiment has to do with today’s  market conditions , specifically low housing supply and high buyer demand. In the simplest terms, we don’t have enough houses available for sale to meet buyer demand. According to  the latest data  from the  National Association of Realtors  (NAR), we’re still firmly in a  sellers’ market  because housing supply is well below a balanced norm ( shown in the graph below).  Clearly, the scales are tipped in a seller’s favor today. But while  housing supply  is undeniably low, the