Berkshire Hathaway HomeServices Northwest Real Estate Federal Way & Puyallup

While the  Federal Reserve  is working hard to  bring down inflation , the latest data shows the  inflation rate  is still high, remaining around 8%. This news impacted the stock market and added fuel to the fire for conversations about a recession. You’re likely feeling the impact in your day-to-day life as you watch the cost of goods and services climb. The  pinch  it’s creating on your wallet and the looming economic uncertainty may leave you wondering:  “should I still  buy a home  right now?”  If that question is top of mind for you, here’s what you need to know. Homeownership Is Historically a Great Hedge Against Inflation In an inflationary economy, prices rise across the board. Historically, homeownership is a great hedge against those rising costs because you can lock in what’s likely your largest monthly payment (your mortgage) for the duration of your loan. That helps stabilize some of your monthly expenses. James Royal, ...

Over the past two years, the substantial imbalance of low housing supply and high buyer demand pushed home sales and buyer competition to new heights. But this year, things are shifting as supply and demand reach an  inflection point . The graph below helps tell the story of just how different things are today. This year, buyer demand has eased as higher  mortgage rates  and mounting economic uncertainty moderated the market. This slowdown in demand is clear when you look at the red bar on the graph. It uses the  latest data  from  ShowingTime  to illustrate how showings (an indicator of buyer demand) have softened by just over 12% compared to the same time last year. Now for a look at how housing supply has changed, turn to the green bar. It uses  data  from  realtor.com  to show active listings are up nearly 27% compared to last year. That’s because the moderation of demand allowed housing inventory to increase in 2022. What Does ...

Good Morning! The U.S. Labor Department released the September Consumer Price Index (CPI) report This Week in Real Estate with results exceeding expectations causing mortgage rates to surge to new 20-year highs. When it comes to the bond market, traders have long priced in everything that was already known and assumed about inflation, but this week’s CPI data came in higher than forecasted, garnering a significant response from the market. It is highly unlikely that rates would go substantially lower as long as inflation remains at current levels and conversely, if inflation continues surprising to the upside, rates are more likely to continue higher and volatility remains a risk. Below are a few newsworthy events from the second week of October that influence our business:    * Here’s Just How Difficult It’s Getting for Home Buyers. The next several months will be a critical test for the economy, experts say. Consumers are facing economic pressure from every angl...

With higher  mortgage rates , you might be wondering if now’s the best time to buy a home. While the  financial aspects  are important to consider, there are also powerful non-financial reasons it may make sense to make a move. Here are just a few of the benefits that come with homeownership. Homeowners Can Make Their Home Truly Their Own Owning your home gives you a significant sense of accomplishment because it’s a space you can customize to your heart’s desire. That can bring you added happiness. In fact, a  report  from the  National Association of Realtors  (NAR) shows making updates or remodeling your home can help you feel more at ease and comfortable in your living space. NAR measures this with a  Joy Score  that indicates how much happiness specific home upgrades bring. According to NAR: “ There were numerous interior projects that received a perfect Joy Score of 10 : paint entire interior of home, paint one room of home, add a new h...

Some Highlights If you’re trying to buy your  first home  in today’s housing market, you’ll want to know what you can do as  mortgage rates  rise and inventory stays low overall. Connect with a lender to get  pre-approved , prioritize your wish list,  consider condos , and expand your  search radius . Your  first home  is out there. Work with a trusted real estate professional to explore your options and what other first-time buyers are doing to find their homes.

Does the latest news about the housing market have you questioning your plans to  sell your house ? If so, perspective is key. Here are some of the ways a trusted real estate professional can explain  the shift  that’s happening today and why it’s still a sellers’ market even during the cooldown. Fewer Homes for Sale than Pre-Pandemic While the supply of homes available for sale has increased this year compared to last, we’re still nowhere near what’s considered a balanced market. A  recent article  from  Calculated Risk  helps put this year’s increased inventory into context ( see graph below ): It shows supply this year has surpassed 2021 levels by over 30%. But the further back you look, the more you’ll understand the big picture. Compared to 2020, we’re just barely above the level of inventory we saw then. And if you go all the way back to 2019, the last normal year in real estate, we’re roughly 40% below the housing supply we had at that time. Why...

If you’re looking to buy a home, you probably want to secure the lowest  interest rate  possible for your home loan. Over the last couple of years, that was easier to do as the housing market saw record-low mortgage rates, but this year rates have  risen dramatically . If you’re looking for ways to combat today’s  higher rates  and lock in the lowest one you can, here are a few factors to focus on. Since approval opportunities can vary, connect with a trusted lender for customized advice. Your Credit Score Credit scores can play a big role in your mortgage rate.  Freddie Mac   explains : “ When you build and maintain strong credit, mortgage lenders have greater confidence when qualifying you for a mortgage because they see that you’ve paid back your loans as agreed and used your credit wisely.  Strong credit also means your lender is more apt to approve you for a mortgage that has more favorable terms and a lower interest rate .” That’s why it’s i...