Berkshire Hathaway HomeServices Northwest Real Estate Federal Way & Puyallup

You may have been told that it’s important to get   pre-approved   at the beginning of the   homebuying   process, but what does that really mean, and why is it so important? Especially in today’s   market , with rising home prices and high buyer competition, it’s crucial to have a clear understanding of your budget so you stand out to sellers as a serious homebuyer. Being intentional and competitive are musts when buying a home right now. 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. Just as important, being able to present a pre-approval letter shows sellers you’re a qualified buyer, something that can really help you land your dream home in an ultra-competitive market. With limited housing inventory, there are many more buyers active in the market than there are sellers, and that’s creating some serious competition. According to the  National Association of Realtors ...

The real estate market is soaring today. Residential home values are rising, and that’s a big win for homeowners. In 2020, there was a double-digit increase in home values – a trend that’s expected to head toward similar levels this year. However, skyrocketing prices are causing some to start questioning affordability in the current housing market. Many are quick to emphasize the fact that homes today are less affordable than they were last year.  Black Knight , a leading provider of data and analytics across the homeownership life cycle,  just reported  on the issue. The findings show the historical averages of the national  payment to income ratio , which they define as “ the share of the median income needed to make the monthly payments on the median-priced home. ” Their study reveals: The average over the last 25 years was 23.6% The average over the last 5 years was 20.1% The average today stands at 20.5% Right now, housing payments are slightly less affordable t...

We’re in the ultimate sellers’ market right now. If you’re a homeowner thinking about selling, you have a huge advantage in today’s housing market. High buyer demand paired with very few houses for sale makes this the optimal time to sell for those who are ready to do so. Whatever the move you want to make looks like, here’s an overview of what’s creating the prime opportunity to sell this summer. High Buyer Demand Demand is strong, and buyers are actively searching for homes to purchase. In the  Realtors Confidence Index Survey  published monthly by the  National Association of Realtors  (NAR), buyer traffic is considered “very strong” in almost every state. Homebuyers aren’t just great in number right now – they’re also determined to find their dream home. NAR shows the average home for sale today receives five offers from hopeful buyers. These increasingly frequent bidding wars can drive up the price of your house, which is why high demand from competitive homebuy...

The major challenge in today’s housing market is that there are more buyers looking to purchase than there are homes available to buy. Simply put, supply can’t keep up with demand. A normal market has a 6-month supply of homes for sale. Anything over that indicates it’s a buyers’ market, but an inventory level below that threshold means we’re in a   sellers’ market . Today’s inventory level sits far below the norm. According to the  Existing Home Sales Report  from the  National Association of Realtors  (NAR): “Total housing inventory at the end of April amounted to 1.16 million units, up 10.5% from March’s inventory and down 20.5% from one year ago (1.46 million).  Unsold inventory sits at a 2.4-month supply at the current sales pace , slightly up from March’s 2.1-month supply and down from the 4.0-month supply recorded in April 2020.  These numbers continue to represent near-record lows .” Basically, while we are seeing some improvement, we’re still ...

  Good Morning! Homeowners realize nearly 20% equity jump in a year according to CoreLogic’s latest Homeowner Equity Report that was released This Week in Real Estate . The average annual gain in equity was the largest in at least a decade. In other news, lumber posted their biggest ever weekly decline last week. Lumber prices have dropped almost 40% from the record high reached on May 10. Below are a few newsworthy events from the second week of June that influence our business:  * Double-Digit Home Price Gains Boosted Home Equity to New Highs. The amount of equity in mortgaged real estate increased by $1.9 trillion in Q1 2021, an annual increase of 19.6%, according to the latest CoreLogic Homeowner Equity Report. The average annual gain in equity was $33,400 per borrower - the largest average equity gain in at least 10 years . Idaho, California and Washington saw the largest equity gains at $70,900, $69,600 and $65,800 , respectively. While the coronavirus ...

  In a normal market, it’s good to have an experienced guide coaching you through the process of buying or selling a home. That person can advise you on important things like  pricing  your home correctly or the first  steps  to take when you’re ready to buy. However, the market we’re in today is far from normal. As a result, an expert isn’t just good to have by your side – an expert is essential. Today’s housing market is full of extremes.  Mortgage rates  hovering near record-lows are driving high  buyer demand . On the other hand, an absence of  sellers  is creating record-low housing inventory. This imbalance in supply and demand is leading to a skyrocketing rate of bidding wars and more houses selling  over  their asking price. This is driving home price  appreciation  and gains in home  equity . These market conditions aren’t just extreme – they can be overwhelming. Having a trusted expert to coach you thro...