Berkshire Hathaway HomeServices Northwest Real Estate Federal Way & Puyallup

There is a lot of uncertainty regarding the real estate market heading into 2019. That uncertainty has raised concerns that we may be headed toward another housing crash like the one we experienced a decade ago. Here are four reasons why today’s market is much different: 1. There are fewer foreclosures now than there were in 2006 A major challenge in 2006 was the number of foreclosures. There will always be foreclosures, but they spiked by over 100% prior to the crash. Foreclosures sold at a discount and, in many cases, lowered the values of adjacent homes. We are ending 2018 with foreclosures at historic  pre-crash  numbers – much fewer foreclosures than we ended 2006 with. 2. Most homeowners have tremendous equity in their homes Ten years ago, many homeowners irrationally converted much, if not all, of their equity into cash with a cash-out refinance. When foreclosures rose and prices fell, they found themselves in a negative equity situation where their homes...

As we head into 2019, many news outlets and housing experts warn that the housing market may slow down. Over the last six years, the inventory of homes for sale has been near historic lows, which has been the force behind increasing home prices. This has been great news for sellers as many of them have been able to capitalize on the demand in the market and sell their homes quickly and at a great profit. One of the big reasons why inventory has remained so low for so long is that an entire generation of home buyers is finally buying! The millennial generation  (ages 19-35)  has been the driving force behind bidding wars in many areas of the country as they ditch their renter lifestyles and put down roots in new communities. First American  recently released a  study  entitled  “How ‘Renter’ Millennials Will Transform the Housing Market.” In their study, they explained that: “…As more millennials age into their early-to-mid thirties, and begin to...

As we approach the end of the year, many homeowners find themselves asking the question,  “If we’re currently in a strong real estate market,  why won’t my house sell? ” Below are the 5 most common reasons why a listing contract will expire: 1. The Price Sometimes when the market is hot, homeowners attempt to set their listing price higher. Their hope is that a motivated buyer will be willing to pay  any price  for a house in their desired neighborhood! Sellers must remember, though, that in today’s market a house must be sold twice; first to the buyer and then to their bank. A buyer can agree to pay the homeowner’s asking price, but after the bank conducts their  appraisal , the price might need to be adjusted. The bank will only give the buyer a mortgage for the value of determined in the appraisal. Sellers must also keep in mind that today’s homebuyers are well-educated. Before they look to buy a house, they have already seen many houses online. ...

Here are five reasons listing your home for sale this winter makes sense. 1. Demand Is Strong The latest  Buyer Traffic Report  from the  National Association of Realtors  (NAR) shows that buyer demand remains strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase… and are in the market right now! More often than not, multiple buyers are competing with each other to buy a home. Take advantage of the buyer activity currently in the market. 2. There Is Less Competition Now Housing  inventory  is still under the 6-month supply that is needed for a normal housing market. This means that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. This is good news for homeowners who have gained equity as their home values have increased. However, additional inventory could be coming to the market soon. Historically, the average number of years...

According to a report released by the Federal Reserve  This Week in Real Estate  the market value of all owner-occupied residential real estate rose to $25.6 trillion in the third quarter.   Below are a few highlights from the second week of December that influence our business : * Fannie Mae: Home Sales to Stabilize in 2019.   Although economic growth  is expected to slow in the new year, new data suggests the housing market will stabilize come 2019, according to Fannie Mae.  “We expect full-year 2018 economic growth to come in at 3.1% - an expansion high - before slowing markedly to 2.3% in 2019 and 1.6% in 2020," Fannie Mae Chief Economist  Doug Duncan said. T he report indicates that consumer spending will continue being the largest positive contributor for growth. Nevertheless, the GSE believes higher tariffs, trade uncertainty and rising interest rates  and input costs will further constrain business fixed inv...

Some Highlights: Buyer demand continues to outpace the supply of homes for sale which means that buyers are often competing with one another for the few listings that are available! Housing inventory is still under the 6-month supply needed to sustain a normal housing market. Perhaps the time has come for you and your family to move on and start living the life you desire. DECEMBER 14, 2018 / BY  THE KCM CREW