Berkshire Hathaway HomeServices Northwest Real Estate Federal Way & Puyallup

If you’re following along with the news today, you’ve likely heard about rising inflation. You’re also likely feeling the impact in your day-to-day life as prices go up for gas, groceries, and more. These rising consumer costs can put a pinch on your wallet and make you re-evaluate any big purchases you have planned to ensure they’re still worthwhile. If you’ve been thinking about  purchasing a home  this year, you’re probably wondering if you should continue down that path or if it makes more sense to wait. While the answer depends on your situation, here’s how  homeownership  can help you combat the rising costs that come with inflation. Homeownership Offers Stability and Security Investopedia   explains  that during a period of high inflation, prices rise across the board. That’s true for things like food, entertainment, and other goods and services, even housing. Both  rental prices  and  home prices  are on the rise. So, as a buyer,...

If you’re planning to  buy a home  this season, you’re probably thinking about what you’ll need to do to get your offer accepted. In previous years, it was common for buyers to try and determine how much less than the asking price they could offer to still get the home. The buyer and seller would then negotiate and typically agree on a revised price that was somewhere between the buyer’s bid and the home’s initial asking price. In today’s real estate market, buyers shouldn’t shop for a home with the same expectations . Things Are Different Today Today’s housing market is anything but normal. According to the  National Association of Realtors  (NAR), the average home that’s sold today: Receives 4.8 offers Sells in just 17 days Homes selling quickly and receiving  multiple offers  shows how competitive the  housing market  is for buyers right now. This is because there are more buyers on the market than homes for sale. When the  number of homes...

Good Morning! Mortgage rates rose for the seventh straight week according to Freddie Mac This Week in Real Estate. “While springtime is typically the busiest homebuying season, the upswing in rates has caused some volatility in demand,” says Sam Khater, Freddie Mac’s chief economist. Despite the rising rates the National Association of Realtors reported the median sales price in March was the highest median price ever recorded. Below are a few newsworthy events from the third week of April that influence our business:  * Permits And Starts Sit At 16-Year Highs. Despite the oft-cited hurdles, housing production continued to strengthen in March. Permits for residential construction were issued at seasonally adjusted annual rates that surpassed 1,800 for the fourth consecutive month and housing starts were the highest for any month since June 2006. YTD starts total 394,800 with single family starts accounting for 265,300 and multifamily starts for 124,700. These are ye...

Some Highlights If you’re planning to  buy  or  sell  a home today, it’s important to be aware of common misconceptions. Whether it’s timing your  purchase  as a buyer based on home  prices  and  mortgage rates  or knowing what to  upgrade or repair  before  listing  your house as a seller, it takes a professional to guide you through those decisions. Lean on a  real estate advisor  to help separate fact from fiction in today’s housing market.

Homeownership has become a major element in achieving the American Dream. A recent report from the  National Association of Realtors  (NAR) finds that over  86%  of buyers agree homeownership is still the American Dream. Prior to the 1950s, less than  half of the country  owned their own home. However, after World War II, many returning veterans used the benefits afforded by the  GI Bill  to purchase a home. Since then, the percentage of homeowners throughout the country has increased to the current rate of  65.5% . That strong desire for homeownership has kept home values appreciating ever since. The graph below tracks  home price appreciation  since the end of World War II: The graph shows the only time home values dropped significantly was during the housing boom and bust of 2006-2008. If you look at how prices spiked prior to 2006, it looks a bit like the current spike in prices over the past two years. That may lead some people...

In the last few weeks, the average 30-year fixed mortgage rate from  Freddie Mac  inched up to 5%. While that news may have you questioning the timing of your home search, the truth is, timing has never been more important. Even though you may be tempted to put your plans on hold in hopes that rates will fall, waiting will only cost you more.  Mortgage rates  are forecast to continue rising in the year ahead. If you’re thinking of buying a home, here are a few things to keep in mind so you can succeed even as  mortgage rates  rise. How Rising Mortgage Rates Impact You Mortgage rates play a significant role in your home search. As rates go up, they impact how much you’ll pay in your monthly mortgage payment, which directly affects how much you can comfortably afford. Here’s an example of how even a quarter-point increase can have a big impact on your  monthly payment  ( see chart below ): With mortgage rates on the rise, you’ve likely seen your pur...

Being intentional and competitive are musts when  buying a home  this season. That’s why pre-approval is so important today. Pre-approval from a lender is the only way to know your true price range and how much money you can borrow for your loan. Peter Warden, Editor of  The Mortgage Reports ,  explains : “The lender will check out your personal finances and issue you a letter confirming the amount you’re eligible to borrow. This not only gives you a firm budget for house hunting,  but also lets sellers know you’re qualified to make an offer .” Why does that matter so much today? There are many more buyers looking for homes today than there are homes available for sale, and that’s creating some serious  competition . According to the  National Association of Realtors  (NAR), the average home is getting  4.8 offers  per sale. As a result,  bidding wars  are still common. Your pre-approval gives you a leg up in these situations. ...

Life events can have a major impact on what you need from your home, and retirement is one of the biggest changes many of us face. This period of your life can mean doing more of the things you enjoy, like traveling, visiting with loved ones, or taking on new hobbies. But what does that mean for your home? If you’re looking for ways to focus more on the important things in your life, the answer could be downsizing. A  recent article  from  The Balance  talks about why it could be a great option, saying: “There are many reasons to buy a smaller home—or to downsize from your present home—but sometimes,  the idea that “less is more” is what propels homeowners to buy a smaller home.” You Can Find the Right Home for Your Needs The  2022 Home Buyers and Sellers Generational Trends  from the  National Association of Realtors  (NAR) provides more information on why people of retirement age choose to move. It shows the need for a smaller home, the des...