COL DWELL BANKER BAIN MO NTHLY NEWS LETTER
Low mortgage rates & first time home buyers
The latest data from the Mortgage Bankers Association, for the week ending Nov. 26, showed that overall mortgage applications dropped 7.2% on a weekly basis. But loan applications for mortgages meant to purchase homes increased by 5.1% weekover-week, building on the previous week’s 4.7% uptick. Overall, in November, mortgage applications for loans intended for purchasing homes increased by 7% in November, according to an analysis from Joshua Shapiro, chief U.S. economist at MFR Inc. That’s compared with a 1% decline in October and an 8% gain in September. But when diving deeper into the data, it’s clear that not all buyers are flocking back to the market in similar numbers. “As home-price appreciation continues at a doubledigit pace, buyers of newer, pricier homes continue to dominate purchase activity, while the share of first-time buyer activity remains depressed,” Joel Kan, associate vice president of economic and industry forecasting for the Mortgage Bankers Association, said in the trade group’s latest report.
Ways to de-stress this holiday season pg. 3
Evidence for this can be seen in a number of data points, including the share of applications for mortgages backed by the Federal Housing Administration. FHA loans can be a useful proxy for first-time buyer demand, since they require smaller down payments and lower minimum credit scores than loans backed by Fannie Mae and Freddie Mac. In the most recent week, FHA loans made up only 9.4% of overall purchase loan applications, down from 10.2% during the same week in 2020. THE NUMBER OF FIRST-TIME BUYERS INCREASED LAST YEAR Over the past year, the share of buyers who were purchasing their first home actually increased, according to recent data from the National Association of Realtors, rising from 31% to 34%. Despite the increase, the figure remained well below the historical norm of 40%.And those first-time buyers that managed to achieve that milestone did so in spite of many obstacles. “This year has dealt several headwinds for many of them,” said George Ratiu, manager of economic research at Realtor. com. “The early part of 2021 saw an overheated market, in which pandemic-accelerated demand for homes ran headlong into a market starved for inventory,
(continued on next page)
There’s been a rebound in home-buying demand in recent weeks, as evidenced by mortgage application data. But first-time buyers aren’t behind the surge.
FEAT URE Low mortgage rates & first time home buyers
local
h o l i d ay
l igh t dis p lays
(continued) due to over a decade of underbuilding,” he added. As of the mid-point of 2021, there was a shortage of around 5.2 million homes, based on analysis from Realtor.com. “Even with low mortgage rates, many first-time buyers found it difficult to compete with repeat buyers bringing equity from a prior home, or other buyers leveraging all-cash offers,” Ratiu said. So far this fall, the housing market has cooled from the crazed pace earlier in 2021, while maintaining a higher rate of home sales than is typical for this time of year. But inflation has put a dent in would-be buyers’ wallets—particularly when it comes to the rising cost of rent. According to the National Association of Realtors, 73% of first-time buyers over the past year were previously renters. Plus, mortgage rates have risen above the ultralow levels seen at the beginning of 2021, and most economists expect they will rise as the Federal Reserve eases off its pandemic-related stimulus. “Millennials are in the market, but more of the success in actually buying a home is coming from those with larger budgets—they can beat out bids and have more inventory to choose, especially for new homes,” said Adam DeSanctis, director of public affairs at the Mortgage Bankers Association. First-time buyers’ success might depend on whether the inventory situation improves. Ratiu said that more homeowners are expected to list their homes for sale in the coming months, which would give buyers more options and put a damper on the high rate of home-price growth. If that expectation doesn’t come to fruition, success could end up being a reflection of which buyers have access to financial assistance. According to the National Association of Realtors, between 2020 and 2021 more than 1 in 4 first-time buyers used a gift or loan from friends or family for their down payment.
Festive lights, decorations, music, and more will inspire Christmas cheer this year in Clark County. It’s easy to get in the spirit through joyous efforts of our neighbors and friends. The following are a few quality lights venues sure to please so fire up those navigators or, if you’re a compass point wiz, just bundle up and go where the Christmas glow shines brightly. Here is where to find Christmas lights in Vancouver and throughout Clark County.
A MINI PEACOCK LANE | Vancouver NW 42nd Street between Washington & Columbia UNDER THE MISTLETOE | Vancouver 4610 NW Franklin Street Nightly from 5:00–10:00 pm WINTER WONDERLAND | Vancouver 14427 NW 25th Court HUMBERT FAMILY HOME | Vancouver 1719 SE 162nd Avenue Runs nightly from 5:00–10:00 pm RIVERRIDGE NEIGHBORHOOD | Vancouver 11806 SE RiverRidge Drive Runs nightly through Christmas Day from 4:30–9:30 pm NELSON’S DISPLAY | Vancouver Runs nightly from 4:30–10:00 pm HOLIDAY LIGHTING | Camas Main entrance at 2600 NW Lake Road through Lacamas Shores - don’t forget to vote for your favorite display! For full description of displays and many more locations visithttp://clarkcountytalk.com/2019/12/06/where-to-findchristmas-lights-in-vancouver-and-surrounding-areas/
Check out the most beautiful luxury properties in the Pacific Northwest.
de-stress this holiday season Not feeling particularly cheery this time of year? You’re not alone. Many find that the holidays bring as much stress as they do joy. But there are ways to ease through the season. To help make the most of your festivities, here are some mindful tips. What is mindfulness? “Mindfulness is bringing your attention to the present moment with an element of nonjudgment and acceptance. It is noticing when we get caught up in thoughts about the past or the future, and returning our attention to the present — the only reality,” explains Neda Gould, Ph. D.
Even if this moment seems stressful, can I find a way to make it pleasant? Connect with someone else in line with a compliment or kind gesture, or notice what’s around you with fresh eyes and an open mind. RESPOND WITH KINDNESS | You can’t change how others act during the stresses of the holiday season, but you can change how you respond to situations. Keep in mind that the holidays are especially difficult for those who are alone. See if you can extend an act of kindness to those you know are without family and friends during this time of year.
While mindfulness can be a formal meditation practice, there are also informal ways to practice this skill. This can give us perspective
If things do get tense with someone, take a few deep breaths. “Those few breaths can shift things and give you new perspective,” says Gould.
ACCEPT IMPERFECTION | Can good be good enough? “As we gear up for the holidays, we often set the bar impossibly high for ourselves and then feel upset when our celebrations don’t live up to expectations,” says Gould.
RETHINK YOUR RESOLUTIONS | Start small. Break your goal into tinier steps over the course of the year.
Before you start preparing, acknowledge that things may not go exactly as planned. “It’s OK if it’s not perfect. Imperfection is healthy and normal. For some of us, it might just take a little practice,” reminds Gould. DON’T LOSE SIGHT OF WHAT REALLY COUNTS | With long lines and nasty traffic, the holidays can get hectic. When overwhelmed by the hustle and bustle, ask yourself: Where does this fit in the grand scheme of things? Can I use this moment of frustration as an opportunity to reflect? While the cashier rings up the customers ahead of you, take inventory of the good things that have happened today or the things you are grateful for.
Be kind to yourself. If you didn’t achieve last year’s resolution or stray from the path this time around, let it go. “We often contrive these stories (‘I’m never going to quit smoking!’) that only add to our distress,” says Gould. “With practice, we can notice this self-critic, let go of that negativity and pick our goals back up without the guilt or shame.” Article from www.hopkinsmedicine.org
DEANNA REIJONEN Broker, Licensed in WA & OR Brokers, Licensed in Oregon Cell: 360.619.2378 503.724.8731 Email:4200 deannareijonen@cbbain.com Mercantile Dr Web: DeannaReijonen.CBBain.com Suite 700, Lake Oswego, OR 97035 3425 SE 192nd Ave, Suite 114 Vancouver, Washington 98683
Deanna Reijonen, Broker Coldwell Banker Bain 3425 SE 192nd Ave Suite 114 Vancouver, WA 98683
MEDIAN SALE PRICE NOVEMBER 2021 1. Woodland ..................................................$462,900 2. Ridgefield LaCenter....................................$544,216 3. Battleground ..............................................$511,391 4. N/NE Clark County.....................................$575,000 5. Brush Prairie/Hockinson.............................$534,424 6. 5 Corners/Orchards ...................................$409,997 7. Camas/Washougal.....................................$622,450 8. Heights ......................................................$412,775 9. Cascade Park ............................................$440,500 10. Vancouver................................................$389,900
11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
Hazel Dell/Minnehaha ..................................$425,250 Felida ..........................................................$490,000 Salmon Creek .............................................$600,000 North Portland.............................................$500,000 NE Portland.................................................$504,937 Gresham .....................................................$477,900 SE Portland .................................................$445,000 Milwaukie, etc .............................................$525,000 Oregon City, etc ..........................................$545,000 Lake Oswego/West Linn .............................$795,000
21. 22. 23. 24. 25. 26. 27. 28.
West Portland.................................................$680,000 N. Washington County....................................$650,000 Beaverton/Aloha .............................................$480,000 Tigard/Tualatin, etc .........................................$575,000 Hillsboro/Forest Grove ....................................$502,500 Yamhill County ................................................$465,000 Mt. Hood, etc .................................................$490,000 Columbia County............................................$376,500