Berkshire Hathaway HomeServices Northwest Real Estate Federal Way & Puyallup

Many American businesses have been put on hold as the country deals with the worst pandemic in over one hundred years. As the states are deciding on the best strategy to slowly and safely reopen, the big question is:  how long will it take the economy to fully recover?  Let’s look at the possibilities. Here are the three types of recoveries that follow most economic slowdowns (the definitions are from the financial glossary at  Market Business News ): V-shaped recovery:  an economic period in which the economy experiences a sharp decline. However, it is also a brief period of decline. There is a clear bottom (called a trough by economists) which does not last long. Then there is a strong recovery. U-shaped recovery:  when the decline is more gradual, i.e., less severe. The recovery that follows starts off moderately and then picks up speed. The recovery could last 12-24 months. L-shaped recovery:  a steep economic decline followed by a long period ...

There are two crises in this country right now: a health crisis that has forced everyone into their homes and a financial crisis caused by our inability to move around as we normally would. Over 20 million people in the U.S. became instantly unemployed when it was determined that the only way to defeat this horrific virus was to shut down businesses across the nation. One second a person was gainfully employed, a switch was turned, and then the room went dark on their livelihood. The financial pain so many families are facing right now is deep. How deep will the pain cut? Major institutions are forecasting unemployment rates last seen during the Great Depression. Here are a few projections: Goldman Sachs – 15% Merrill Lynch – 10.6% JP Morgan – 8.5% Wells Fargo – 7.3% How long will the pain last? As horrific as those numbers are, there is some good news. The pain will be deep, but it won’t last as long as it did after previous crises. Taking the direst projection from...

Is the housing market facing its greatest challenge in over a decade? Yes, however, there are five factors significantly different about today’s market than the last recession. Not to mention interest rates  This Week in Real Estate  fell to within three (3) basis points of setting a new all-time low and the Fed has purchased mortgage-backed securities at an unprecedented scale. Below are a few newsworthy events from the  second week of April that influence our business:  *  Think This is a Housing Crisis? Think Again .   Today, we face a very different challenge: an external health crisis that has caused a pause in much of the economy and a major shutdown of many parts of the country .  Let’s look at five things we know about today’s housing market that were different in 2008.  First,  appreciation :  there’s a big difference between the 6 years prior to the housing crash and the most recent 6-year period of time. Leadin...

Some Highlights: A recent realtor.com  survey  revealed that buyers are still considering moving forward with the homebuying process, even if they can’t see the home in-person. While they still prefer to physically see a home, virtual home tours and accurate listing information top the list of tech specs buyers find most helpful in today’s process. Reach out to a local real estate professional today to determine how technology can help power your home search. APRIL 17, 2020  BY  KCM CREW

The uncertainty the world faces today due to the COVID-19 pandemic is causing so many things to change. The way we interact, the way we do business, even the way we buy and sell  real estate  is changing. This is a moment in time that’s even sparking some buyers to search for a better deal on a home. Sellers, however, aren’t offering a discount these days; they’re holding steady on price. According to the most recent  NAR Flash Survey  (a survey of real estate agents from across the country), agents were asked the following two questions: 1. “Have any of your sellers recently reduced their price to attract buyers?” Their answer: 72% said their sellers have not lowered prices to attract buyers during this health crisis.   2. “Are home buyers expecting lower prices now?” Their answer: 63% of agents said their buyers were looking for a price reduction of at least 5%. What We Do Know    In today’s market, with everything changing and ongoi...

With all of the unanswered questions caused by COVID-19 and the economic slowdown we’re experiencing across the country today, many are asking if the housing market is in trouble. For those who remember 2008, it’s logical to ask that question. Many of us experienced financial hardships, lost homes, and were out of work during the Great Recession – the recession that  started  with a housing and mortgage crisis. Today, we face a very different challenge: an external health crisis that has caused a pause in much of the economy and a major shutdown of many parts of the country. Let’s look at five things we know about today’s housing market that were different in 2008. 1. Appreciation When we look at appreciation in the visual below, there’s a big difference between the 6 years prior to the housing crash and the most recent 6-year period of time. Leading up to the crash, we had much higher appreciation in this country than we see today. In fact, the  highest level ...