Berkshire Hathaway HomeServices Northwest Real Estate Federal Way & Puyallup

Over the past year, many homeowners realized what they need in a home is changing, especially with the rise in remote work. If you’re longing for a dedicated home office or a change in scenery, now may be the  time  to find the home that addresses your  evolving needs . Working from Home Isn’t a Passing Fad Before the pandemic, only 21% of individuals worked from home. However, if you’ve recently discovered remote work is your new normal, you’re not alone. A  survey  of hiring managers conducted by  Statista  and  Upwork  projects  37.5% of U.S. workers will work remotely in some capacity over the next 5 years  ( see chart below ): Working from Home Gives You More Flexibility and More Options If you fall in that category, working from home may provide you with opportunities you didn’t realize you had. The ongoing rise in remote work means a portion of the workforce no longer needs to be tied to a specific area for their job. Instead...

  With home prices continuing to deliver double-digit increases, some are concerned we’re in a housing bubble like the one in 2006. However, a closer look at the market data indicates this is nothing like 2006 for three major reasons. 1. The housing market isn’t driven by risky mortgage loans. Back in 2006, nearly everyone could qualify for a loan. The  Mortgage Credit Availability Index  (MCAI) from the  Mortgage Bankers’ Association  is an indicator of the availability of mortgage money. The higher the index, the easier it is to obtain a mortgage. The MCAI more than doubled from 2004 (378) to 2006 (869). Today, the index stands at 130. As an example of the difference between today and 2006, let’s look at the  volume of mortgages  that originated when a buyer had less than a 620 credit score. Dr. Frank Nothaft, Chief Economist for  CoreLogic , reiterates this  point : “There are marked differences in today’s run up in prices compared to 2005...

  Good Morning! CoreLogic has analyzed the home price boom that preceded The Great Recession compared to the home price acceleration of the current market concluding that lower payment ratios significantly limit the risk of home price declines. CoreLogic reported This Week in Real Estate that in 2006 a household spent 25% of their income on a mortgage payment, but in 2021, that ratio dropped to 17%. According to the CoreLogic Market Risk Indicators, 13% of metro areas were at risk of home price decrease in 2006, but that risk feel to near zero in 2021. Below are a few newsworthy events from the second week of July that influence our business:  * Comparing Two Home Price Booms, Fifteen Years Apart. April 2021 marked the 15-year anniversary of the national home price bubble. In April 2006, home prices peaked just before heading to an unprecedented decline. As home prices soar in 2021, many comparisons are being made between the current housing environment and t...

  In today’s real estate market, mortgage interest rates are near record lows. If you’ve been in your current home for several years and haven’t refinanced lately,  there’s a good chance you have a mortgage with an interest rate higher than today’s average.  Here are some options you should consider if you want to take advantage of today’s current low rates before they rise. Sell and Move Up (or Downsize) Many of today’s homeowners are rethinking what they need in a home and redefining what their  dream home  means. For some, continued remote work is bringing about the need for additional space. For others, moving to a lower cost-of-living area or downsizing may be great options. If you’re considering either of these, there may not be a better time to move. Here’s why. The chart below shows average  mortgage rates  by decade compared to where they are today: Today’s rates are below 3%,  but  experts forecast  rates to rise over the next ...

  Some Highlights Buyers hoping  for more homes to choose from may be in luck as housing  inventory  begins to rise. Many experts agree – new sellers listing their homes is great news for buyers and the  overall market . Although the supply increases are  modest , more homes means more options for buyers. A rise in inventory may also help slow the  price gains  we’ve seen recently and could be a sign of  good things to come . If you’re searching for a home to buy, rising inventory is  welcome news . Reach out to a local real estate professional today to learn about new listings in your area.

  Last week,  Fannie Mae  released their  Home Purchase Sentiment Index  (HPSI). Though the survey showed 77% of respondents believe it’s a “good time to sell,” it also confirms what many are sensing: an increasing number of Americans believe it’s a “bad time to buy” a home. The percentage of those surveyed saying it’s a “bad time to buy” hit 64%, up from 56% last month and 38% last July. The latest HPSI explains: “Consumers also continued to cite high home prices as the predominant reason for their ongoing and significant divergence in sentiment toward homebuying and home-selling conditions.   While all surveyed segments have expressed greater negativity toward homebuying over the last few months, renters who say they are planning to buy a home in the next few years have demonstrated an even steeper decline in homebuying sentiment than homeowners. It’s likely that affordability concerns are more greatly affecting those who aspire to be first-time homeowner...