Berkshire Hathaway HomeServices Northwest Real Estate Federal Way & Puyallup

One of the biggest questions in real estate today is, “When will sellers return to the housing market?” An ongoing shortage of home supply has created a hyper-competitive environment for hopeful buyers, leading to the ultimate sellers’ market. However, as the economy continues to improve and more people get vaccinated, more sellers may finally be in sight. The  Home Purchase Sentiment Index  (HPSI) by  Fannie Mae  recently noted the percentage of consumer respondents who say it’s a good time to sell a home increased from 61% to 67%. Doug Duncan , Senior Vice President and Chief Economist  at  Fannie Mae ,  indicates : “ Consumer positivity regarding home-selling conditions nearly matched its all-time high.”  ( See graph below ): Fannie Mae  isn’t the only expert group noticing a rise in the percentage of people thinking about selling. George Ratiu,  Senior Economist  at  realtor.com ,  shares : “The results of a realtor.co...

There’s no doubt that 2021 is the year of the seller when it comes to the housing market. If you’re a homeowner thinking of  moving  to better suit your changing needs, now is the perfect time to do so. Low  mortgage rates  are in your favor when you’re ready to purchase your dream home, and high buyer demand may give you the  leverage  you need to negotiate the best contract terms on the sale of your house. Here’s a look at what’s driving this sellers’ advantage and why there’s so much opportunity for homeowners who are ready to move this season. 1. Historically Low Inventory The  National Association of Realtors  (NAR)  explains :  “ Total housing inventory at the end of March amounted to 1.07 million units , up 3.9% from February’s inventory . . .  Unsold inventory sits at a 2.1-month supply   at the current sales pace , marginally up from February’s 2.0-month supply and down from the 3.3-month supply recorded in March 2020 ...

  Good Morning! ATTOM Data Solutions released This Week in Real Estat e its first quarter 2021 U.S. Home Equity and Underwater Report, which shows that about one in three homes are equity rich. That means the estimated market value of a home is 50 percent or greater than the outstanding loan amounts secured by the home or the property owner has at least 50 percent equity. Below are a few newsworthy events from the second week of May that influence our business:  * Home Equity Continues Growing in U.S. During First Quarter. ATTOM Data Solutions released its first-quarter 2021 U.S. Home Equity & Underwater Report on Thursday, which shows that 17.8 million residential properties in the United States were considered equity-rich, meaning that the combined estimated amount of loans secured by those properties was 50 percent or less of their estimated market value. The count of equity-rich properties in the first quarter of 2021 represented 31.9 percent, or a...

It’s clear that consumers are concerned about how quickly home values are rising. Many people fear the speed of appreciation may lead to a crash in prices later this year. In fact, Google  reports  that the search for  “When is the housing market going to crash?”  has actually spiked 2450% over the past month. In addition, Jim Dalrymple II of  Inman News   notes : “One of the most noteworthy things that came up in Inman’s conversations with agents was that every single one said they’ve had conversations with clients about whether or not the market is heading into a bubble.” To alleviate some of these concerns, let’s look at what several financial analysts are saying about the current residential real estate market. Within the last thirty days, four of the major financial services giants came to the same conclusion:  the housing market is strong, and price appreciation will continue . Here are their statements on the issue: Goldman Sachs’ Research Note ...

  Good Morning and Happy Mother’s Day ! ATTOM Data Solutions released This Week in Real Estat e an analysis of 40 million home sales from 2011 - 2020 and the research concluded that home sellers realize the biggest premiums in May. Below are a few newsworthy events from the first week of May that influence our business:  * Top 5 Best Days to Sell a Home Occur in May. The months of May and June offer the greatest home seller premiums - with ten of the best days to sell in the month of May alone. According to this most recent analysis of 40.1 million home sales from 2011-2020, home sellers selling in the late spring and early summer are realizing the biggest premiums - on average 13.4 percent above estimated market value in May and 11.7 percent above in June. The analysis looked at any calendar days in the last ten years with at least 10,000 single family home and condo sales. The months realizing the biggest home seller premiums include: May (13.4 percent); ...

  So far this year, mortgage rates continue to hover around 3%, encouraging many hopeful homebuyers to enter the housing market. However, there’s a good chance rates will increase later this year and going into 2022, ultimately making it more expensive to borrow money for a home loan. Here’s a look at what several experts have to say. Danielle Hale,  Chief Economist ,  realtor.com : “ Our long-term view for mortgage rates in 2021 is higher.  As the economic outlook strengthens, thanks to progress against coronavirus and vaccines plus a dose of stimulus from the government, this pushes up expectations for economic growth . . . .” Lawrence Yun,  Chief Economist ,  National Association of Realtors  (NAR) : “ In 2021, I think rates will be similar or modestly higher  . . . mortgage rates will continue to be historically favorable.” Freddie Mac : “ We forecast that mortgage rates will continue to rise through the end of next year . We estimate the 30-y...

                                               Good Morning! According to ATTOM Data Solutions First Quarter 2021 U.S. Home Sales Report, which was released This Week in Real Estat e, home sellers average profit was up 26% compared to the first quarter last year. The average profit represented a 34.2 percent return on investment compared to the original purchase price. Below are a few newsworthy events from the fourth week of April that influence our business:  * Pending Home Sales in U.S. Grow 2% in March. According to the National Association of Realtors, U.S. pending home sales increased in March 2021, snapping two consecutive months of declines. All but one of the four major U.S. regions experienced month-over-month gains in March, while each area recorded year-over-year growth. The Pending Home Sales Index, a forward-look...