Berkshire Hathaway HomeServices Northwest Real Estate Federal Way & Puyallup

According to the Federal Reserve’s Flow of Funds report that was released  This Week in Real Estate   the home equity percentage has reached its highest level since the second quarter of 2002.  Below  are a few highlights from the  second  week of  March  that influence our business : *  Equity Rises for U.S. Homeowners.  The home equity percentage reached a level that had not been seen since the second quarter of 2002. As of the fourth quarter of 2018, the equity percentage, on a non-seasonally-adjusted basis, stood at 60.1%. At the end of 2018, the market value of all owner-occupied real estate totaled $25.9 trillion, growing by 5.3% from the start of the year, and outstanding home mortgage debt totaled $10.3 trillion, growing by a lesser percentage of 2.6%. The trend in the market value of all owner-occupied real estate mirrors that of the Case-Shiller U.S. National Home Price Index. Rising residential real estat...

“The rumors of my death are greatly exaggerated.” The famous quote attributed to Mark Twain can apply to homeownership in the United States today. During the housing bubble of the last decade, the homeownership rate soared to over sixty-nine percent. After the crash, that percentage continued to fall for the next ten years. That led to speculation that homeownership was  no longer seen  as a major component of the American Dream. That belief became so widespread that the term  “renters’ society”  began to be used by some to define American consumers. However, the latest  report  by the  Census Bureau  on homeownership shows that over the last two years, the percentage of homeowners has increased in each of the last eight quarters. Going forward… It appears the homeownership rate will continue to increase. The  2019 Aspiring Home Buyers Profile  recently released by the  National Association of Realtors  revea...

Congratulations! You’ve found a home to buy and have applied for a mortgage! You are undoubtedly excited about the opportunity to decorate your new home! But before you make any big purchases, move any money around, or make any big-time life changes, consult your loan officer. They will be able to tell you how your decision will impact your home loan. Below is a list of  7 Things You Shouldn’t Do After Applying for a Mortgage!  Some may seem obvious, but some may not! 1. Don’t change jobs or the way you are paid at your job!  Your loan officer must be able to track the source and amount of your annual income. If possible, you’ll want to avoid changing from salary to commission or becoming self-employed during this time as well. 2. Don’t deposit cash into your bank accounts.  Lenders need to source your money and cash is not really traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with you...

In a strong seller’s market, like the one we have experienced over the past few years, bidding wars are common and expected.  This makes sense!  A seller’s market is defined as a market in which the inventory of homes for sale cannot satisfy the number of buyers who want to purchase a home. According to the  Cambridge English  Dictionary ,  bidding wars occur when two or more parties repeatedly outbid each other as they compete to purchase something- in this case, a home. In some areas of the country, first-time buyers have been met with fierce competition throughout their experience. Some have been out-bid multiple times before finally winning a bid on a home to call their own. According to the latest  Existing Home Sales Report  from the  National Association of Realtors  (NAR), there is currently a 3.7-month supply of homes for sale. With the current number of houses listed for sale and the level of demand from buyers, this means...

Spring has sprung, and it’s a great time to buy a home! Here are four reasons to consider buying today instead of waiting. 1. Prices Will Continue to Rise CoreLogic’s latest  U.S. Home Price Insights  reports that home prices have appreciated by 4.4% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.6% over the next year. Home values will continue to appreciate for years. Waiting no longer makes sense. 2. Mortgage Interest Rates Are Projected to Increase Freddie Mac ’s  Primary Mortgage Market Survey  shows that interest rates for a 30-year fixed rate mortgage came in at 4.41% last week. Most experts predict that rates will rise over the next 12 months. The  Mortgage Bankers Association, Fannie Mae, Freddie Mac , and the  National Association of Realtors  are in unison, projecting rates will increase by this time next year. An increase in rates will impact YOUR monthly mortgage payment...

Some Highlights: In the majority of the country, this weekend marks the start of Daylight Savings Time as we set our clocks forward an hour on Sunday at 2:00 AM EST. Whether you plan on buying or selling this spring, these tips could help you ‘spring ahead’ of your competition! Spring brings two things: more buyers & more sellers! Get prepared now to stand out in the crowd! MARCH 8, 2019 / BY  KCM CREW

Last week, the  National Association for Business Economics  released their February 2019  Economic Policy Survey . The survey revealed that a majority of the panel believe an economic slowdown is in the near future: “While only 10% of panelists expect a recession in 2019, 42% say a recession will happen in 2020, and 25% expect one in 2021.” Their findings coincide with three previous surveys calling for a slowdown sometime in the next two years: The Pulsenomics Survey of Market Analysts The Wall Street Journal Survey of Economists The Duke University Survey of American CFOs That raises the question: Will the real estate market be impacted like it was during the last recession? A recession does not equal a housing crisis . According to the dictionary definition, a recession is: “A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.” During the ...