Ty McCollum | June Newsletter

Page 1

June 2022

Coldwell Banker Bain 1200 Westlake Avenue N, Suite 406 Seattle, WA 98109

TY MCCOLLUM

BROKER | LAKE UNION

206.886.9848 e: tymccollum@cbbain.com

www.TyMcCollum.CBBain.com facebook.com/tymccollumrealestate instagram.com/tymccollumrealestate/

Your Monthly Real Estate Digest

linkedin.com/in/tymccollum/

PIERCE

All information provided is deemed reliable, but is not guaranteed and should be independently verified. (1) Data pulled from the NWMLS as of 03/08/21 for 98208, 98204 SFR only (2) Pending or contingent.

126 HOMES

Bigger isn’t always better. After the mad dash by homebuyers to purchase larger places to live in at the height of the COVID-19 pandemic, some experts are making a case for more efficiently designed, smaller homes.

11 DAYS

With the pandemic seemingly waning, mortgage rates and home prices rising, and builders struggling to get anything up in the face of supply chain shortages, there’s a convincing argument to be made that home shoppers should consider seeking smaller houses.

For sale in the month of May Zip 98108, 98118 + 98144

Average Days on Market Zip 98108, 98118 + 98144

126 sold Sold in the month of May Zip 98108, 98118 + 98144

$987,000

Average sold price Zip 98108, 98118 + 98144 All information provided is deemed reliable, but is not guaranteed and should be independently verified. (1) Data pulled from Trendgraphix/ NWMLS as of 06/13/22 for SFR & Condos.

A new book by Sheri Koones, “Bigger Than Tiny, Smaller Than Average,” posits that functionality is more important than square footage. Examples of gaining extra functionality out of existing space include dining rooms that are transformed into exercise spaces or workspaces located on stair landings or in a niche behind a bookcase instead of a dedicated office. “People want quality rather than quantity,” says Koones, who has written nine books on the subject of small houses and sustainable building. “People want spaces where they can be together.” Not to be confused with tiny homes (400 to 600 square feet), small homes can be defined as those with 1,400 to 2,000 square feet. They can also be thought of as typical entry-level houses—more affordable homes popular with first-time buyers on limited budgets.However, the National Association of Home Builders posted statistics showing that homes built in the past year are gaining in square footage.

That’s in contrast with about 30% of architects who work on homes for planned communities surveyed who said they were decreasing the square footage of interior rooms in 2021 residential units, according to the New Home Trends Institute by John Burns Real Estate Consulting. “They’re removing some of what one architect calls ‘twirling room,’ the extra transition spaces [like hallways] that may not be necessary,” says Jenni Nichols, director of DesignLens, part of the institute. Today’s buyers might want better—not bigger—homes. Through better design and improved functionality, a small home can still offer the spaces people want. Nichols reports that architects are responding with flex spaces, repurposed areas, and efficient room sizes to increase functionality. “People are using an expanded stair landing for an indoor bicycle or small fitness equipment. In many small home designs, the separate dining room is gone in favor of an eatin kitchen with room for a separate table or two-tiered island with the lower portion used as a table,” Nichols says. “The bedroom niche we used to use for a dresser is now a spot for a desk. … I’ve even seen entries large enough to hang bikes. “Home offices do not need to be bedroom-sized,” she says. “Some interior designers are converting closets into ‘cloffices.’” Of course, no one wants to feel cramped in their home. Koones found that functional small home design often

(continued on next page)

KING

ZIP CODE 98108, 98118 + 98144

SNOHOMISH

MARKET STATISTICS MAY 2022

Bigger Isn’t Always Better: What Today’s Buyers Are Looking For in a Home


FEAT U RE

Keep

bigger isn’t always better...

your

pup cool

(continued) includes high ceilings, open staircases, and well-placed windows. Open floor plans, light-colored cabinets, and wall and creative storage can make a space feel larger. And homeowners typically appreciate some access to outdoor living with a deck, patio, or small yard. During the pandemic, Teri Slavik–Tsuyuki surveyed nearly 7,000 homeowners and renters. The 2020 study found the things people felt were missing from their current living situations “had to do with better design and functionality and less to do with space,” Slavik-Tsuyuki says. She is the principal of tstink, a consultancy that works with developers and homebuilders nationally to help them design homes. Respondents wanted better-equipped kitchens, in-home technology, storage, and better home office space—but not extra rooms, says Slavik-Tsuyuki. “What didn’t even make the top 15 [responses] was the desire for an additional room or space in their home,” Slavik-Tsuyuki says. Smaller homes could save money for builders and buyers. Smaller homes typically, but not always, cost less to build. They often use fewer materials and can sometimes be built on smaller lots. Those much-needed savings are often passed on to buyers grappling with record-high home prices and fast-rising mortgage interest rates.

Summer can be a scorcher, and if your pup loves being outside, then you need to take some extra measures to make sure he’s properly hydrated and cool. There are plenty of smart ways to keep their paws, eyes and skin safe from harmful UV rays and heat while regulating their body temperature and keeping them comfortably cool. COOLING MAT | Whether inside or outside, a cooling mat uses water to effectively cool your pet down, while the orthopedic foam construction helps with arthritis, hip dysplasia and many other common issues. ELEVATED DOG BED | Dogs have built-in insulation which makes cooler environments perfect. However, in the warmer months, their coats harbor heat all day long. One of the best ways to counteract overheating is to ensure your pup is getting airflow on all sides. This breathable, elevated pet bed allows them to relax and chill inside or out.

(Median home list prices were up about 14% year over year, to hit a record high of $425,000 nationally in April, according to the most recent Realtor.com® data. Meanwhile, mortgage interest rates went from 3% a year ago to 5.25% for 30-year fixed-rate loans, according to Freddie Mac data.)

COOLING VEST | These vests reflect the sun, mimics sweat’s cooling effect when wet with cool water and features reflective trim to ensure your dog is as visible as possible, it’s a no-brainer that this vest will make your dog the safest and coolest dog around.

Materials used in building homes cost about 23% more than they did just a year ago, according to the National Association of Home Builders. Construction worker wages are up 6%, and land prices and the loans builders need to put up new housing have also risen, according to NAHB. Plus, it’s taking longer to build as supply chain shortages are causing delays, which adds to the rising costs. “A growing number of buyers will be priced out of the market,” says Robert Dietz, NAHB’s chief economist. All of this would seem to point to fertile ground for growing smaller homes. “A smaller home with the right features—a great kitchen, a cool master suite, indooroutdoor living, for example—and a lower price, and the lower monthly payment that comes with it, would hold real appeal to buyers suffering from sticker shock and discouraged by onerous monthly mortgage payments,” says Frank Anton, former CEO of the real estate media firm Hanley Wood. Article from realtor.com

CAR AC EXTENDER | Because cars weren’t made for dogs, they often end up wherever they fit best. To accommodate their awkward size, they are dealt the short end of the stick when it comes to airflow. The Noggle is here to offer them the same comfort you receive, no matter the season. This flexible hose installs easily on your car’s air vent and carries the air all the way to your pet, keeping them cool in the summer and toasty in the winter. See the full list compiled by HGTV to keep your pup cool here: www.hgtv.com/lifestyle/family/ pets/cooling-pet-products-for-summer

Check out the most beautiful luxury properties in the Pacific Northwest. http://www.coldwellbankerbain.com/magazine

Rising mortgage rates did not slow down rising home prices in March. Nationally, home prices were 20.6% higher than they were in March 2021, according to the S&P CoreLogic Case-Shiller Home Price Index. That is higher than the 20% gain in February. The index is a three-month running average ending in March. The average rate on the 30-year fixed mortgage stood at 3.29% at the start of January and ended March at 4.67%, according to Mortgage News Daily. The Case-Shiller 10-city composite rose 19.5% annually in March, up from 18.7% in February. The 20-city composite saw a 21.2% year-over-year gain, up from 20.3% in the previous month. For both national and 20-city composites, March’s reading was the highest year-over-year price change in more than 35 years of data. Regionally, Phoenix slipped from the top gainer spot for the first time in three years, with Tampa, Florida, taking over. Tampa, Phoenix and Miami continued to see the highest annual gains, with increases of 34.8%, 32.4% and 32.0% respectively. Seventeen of the 20 cities reported higher price increases in the year ended in March 2022 versus the year ended in February 2022. “Those of us who have been anticipating a deceleration in the growth rate of U.S. home prices will have to wait at least a month longer,” said Craig Lazzara, managing director at S&P DJI. “All 20 cities

Home prices surged over 20% in March as interest rates also rose, according to S&P Case-Shiller saw double-digit price increases for the 12 months ended in March, and price growth in 17 cities accelerated relative to February’s report.” Cities seeing the smallest price gains, albeit still in double digits from a year ago, were Minneapolis (+12.4%), Washington (+12.9%) and Chicago (+13%). The expectation is that prices will begin to ease, since home sales have been falling now for several months. Demand, however, is still high, and real estate agents report that they are still seeing multiple offers for homes that are priced correctly. More supply is also coming on the market, as sellers worry they will miss out on the last days of the hot market. “Mortgages are becoming more expensive as the Federal Reserve has begun to ratchet up interest rates, suggesting that the macroeconomic environment may not support extraordinary home price growth for much longer. Although one can safely predict that price gains will begin to decelerate, the timing of the deceleration is a more difficult call,” added Lazzara. Article from cnbc.com

TY MCCOLLUM

BROKER | LAKE UNION

206.886.9848 e: tymccollum@cbbain.com w: TyMcCollum.cbbain.com


FEAT U RE

Keep

bigger isn’t always better...

your

pup cool

(continued) includes high ceilings, open staircases, and well-placed windows. Open floor plans, light-colored cabinets, and wall and creative storage can make a space feel larger. And homeowners typically appreciate some access to outdoor living with a deck, patio, or small yard. During the pandemic, Teri Slavik–Tsuyuki surveyed nearly 7,000 homeowners and renters. The 2020 study found the things people felt were missing from their current living situations “had to do with better design and functionality and less to do with space,” Slavik-Tsuyuki says. She is the principal of tstink, a consultancy that works with developers and homebuilders nationally to help them design homes. Respondents wanted better-equipped kitchens, in-home technology, storage, and better home office space—but not extra rooms, says Slavik-Tsuyuki. “What didn’t even make the top 15 [responses] was the desire for an additional room or space in their home,” Slavik-Tsuyuki says. Smaller homes could save money for builders and buyers. Smaller homes typically, but not always, cost less to build. They often use fewer materials and can sometimes be built on smaller lots. Those much-needed savings are often passed on to buyers grappling with record-high home prices and fast-rising mortgage interest rates.

Summer can be a scorcher, and if your pup loves being outside, then you need to take some extra measures to make sure he’s properly hydrated and cool. There are plenty of smart ways to keep their paws, eyes and skin safe from harmful UV rays and heat while regulating their body temperature and keeping them comfortably cool. COOLING MAT | Whether inside or outside, a cooling mat uses water to effectively cool your pet down, while the orthopedic foam construction helps with arthritis, hip dysplasia and many other common issues. ELEVATED DOG BED | Dogs have built-in insulation which makes cooler environments perfect. However, in the warmer months, their coats harbor heat all day long. One of the best ways to counteract overheating is to ensure your pup is getting airflow on all sides. This breathable, elevated pet bed allows them to relax and chill inside or out.

(Median home list prices were up about 14% year over year, to hit a record high of $425,000 nationally in April, according to the most recent Realtor.com® data. Meanwhile, mortgage interest rates went from 3% a year ago to 5.25% for 30-year fixed-rate loans, according to Freddie Mac data.)

COOLING VEST | These vests reflect the sun, mimics sweat’s cooling effect when wet with cool water and features reflective trim to ensure your dog is as visible as possible, it’s a no-brainer that this vest will make your dog the safest and coolest dog around.

Materials used in building homes cost about 23% more than they did just a year ago, according to the National Association of Home Builders. Construction worker wages are up 6%, and land prices and the loans builders need to put up new housing have also risen, according to NAHB. Plus, it’s taking longer to build as supply chain shortages are causing delays, which adds to the rising costs. “A growing number of buyers will be priced out of the market,” says Robert Dietz, NAHB’s chief economist. All of this would seem to point to fertile ground for growing smaller homes. “A smaller home with the right features—a great kitchen, a cool master suite, indooroutdoor living, for example—and a lower price, and the lower monthly payment that comes with it, would hold real appeal to buyers suffering from sticker shock and discouraged by onerous monthly mortgage payments,” says Frank Anton, former CEO of the real estate media firm Hanley Wood. Article from realtor.com

CAR AC EXTENDER | Because cars weren’t made for dogs, they often end up wherever they fit best. To accommodate their awkward size, they are dealt the short end of the stick when it comes to airflow. The Noggle is here to offer them the same comfort you receive, no matter the season. This flexible hose installs easily on your car’s air vent and carries the air all the way to your pet, keeping them cool in the summer and toasty in the winter. See the full list compiled by HGTV to keep your pup cool here: www.hgtv.com/lifestyle/family/ pets/cooling-pet-products-for-summer

Check out the most beautiful luxury properties in the Pacific Northwest. http://www.coldwellbankerbain.com/magazine

Rising mortgage rates did not slow down rising home prices in March. Nationally, home prices were 20.6% higher than they were in March 2021, according to the S&P CoreLogic Case-Shiller Home Price Index. That is higher than the 20% gain in February. The index is a three-month running average ending in March. The average rate on the 30-year fixed mortgage stood at 3.29% at the start of January and ended March at 4.67%, according to Mortgage News Daily. The Case-Shiller 10-city composite rose 19.5% annually in March, up from 18.7% in February. The 20-city composite saw a 21.2% year-over-year gain, up from 20.3% in the previous month. For both national and 20-city composites, March’s reading was the highest year-over-year price change in more than 35 years of data. Regionally, Phoenix slipped from the top gainer spot for the first time in three years, with Tampa, Florida, taking over. Tampa, Phoenix and Miami continued to see the highest annual gains, with increases of 34.8%, 32.4% and 32.0% respectively. Seventeen of the 20 cities reported higher price increases in the year ended in March 2022 versus the year ended in February 2022. “Those of us who have been anticipating a deceleration in the growth rate of U.S. home prices will have to wait at least a month longer,” said Craig Lazzara, managing director at S&P DJI. “All 20 cities

Home prices surged over 20% in March as interest rates also rose, according to S&P Case-Shiller saw double-digit price increases for the 12 months ended in March, and price growth in 17 cities accelerated relative to February’s report.” Cities seeing the smallest price gains, albeit still in double digits from a year ago, were Minneapolis (+12.4%), Washington (+12.9%) and Chicago (+13%). The expectation is that prices will begin to ease, since home sales have been falling now for several months. Demand, however, is still high, and real estate agents report that they are still seeing multiple offers for homes that are priced correctly. More supply is also coming on the market, as sellers worry they will miss out on the last days of the hot market. “Mortgages are becoming more expensive as the Federal Reserve has begun to ratchet up interest rates, suggesting that the macroeconomic environment may not support extraordinary home price growth for much longer. Although one can safely predict that price gains will begin to decelerate, the timing of the deceleration is a more difficult call,” added Lazzara. Article from cnbc.com

TY MCCOLLUM

BROKER | LAKE UNION

206.886.9848 e: tymccollum@cbbain.com w: TyMcCollum.cbbain.com


June 2022

Coldwell Banker Bain 1200 Westlake Avenue N, Suite 406 Seattle, WA 98109

TY MCCOLLUM

BROKER | LAKE UNION

206.886.9848 e: tymccollum@cbbain.com

www.TyMcCollum.CBBain.com facebook.com/tymccollumrealestate instagram.com/tymccollumrealestate/

Your Monthly Real Estate Digest

linkedin.com/in/tymccollum/

PIERCE

All information provided is deemed reliable, but is not guaranteed and should be independently verified. (1) Data pulled from the NWMLS as of 03/08/21 for 98208, 98204 SFR only (2) Pending or contingent.

126 HOMES

Bigger isn’t always better. After the mad dash by homebuyers to purchase larger places to live in at the height of the COVID-19 pandemic, some experts are making a case for more efficiently designed, smaller homes.

11 DAYS

With the pandemic seemingly waning, mortgage rates and home prices rising, and builders struggling to get anything up in the face of supply chain shortages, there’s a convincing argument to be made that home shoppers should consider seeking smaller houses.

For sale in the month of May Zip 98108, 98118 + 98144

Average Days on Market Zip 98108, 98118 + 98144

126 sold Sold in the month of May Zip 98108, 98118 + 98144

$987,000

Average sold price Zip 98108, 98118 + 98144 All information provided is deemed reliable, but is not guaranteed and should be independently verified. (1) Data pulled from Trendgraphix/ NWMLS as of 06/13/22 for SFR & Condos.

A new book by Sheri Koones, “Bigger Than Tiny, Smaller Than Average,” posits that functionality is more important than square footage. Examples of gaining extra functionality out of existing space include dining rooms that are transformed into exercise spaces or workspaces located on stair landings or in a niche behind a bookcase instead of a dedicated office. “People want quality rather than quantity,” says Koones, who has written nine books on the subject of small houses and sustainable building. “People want spaces where they can be together.” Not to be confused with tiny homes (400 to 600 square feet), small homes can be defined as those with 1,400 to 2,000 square feet. They can also be thought of as typical entry-level houses—more affordable homes popular with first-time buyers on limited budgets.However, the National Association of Home Builders posted statistics showing that homes built in the past year are gaining in square footage.

That’s in contrast with about 30% of architects who work on homes for planned communities surveyed who said they were decreasing the square footage of interior rooms in 2021 residential units, according to the New Home Trends Institute by John Burns Real Estate Consulting. “They’re removing some of what one architect calls ‘twirling room,’ the extra transition spaces [like hallways] that may not be necessary,” says Jenni Nichols, director of DesignLens, part of the institute. Today’s buyers might want better—not bigger—homes. Through better design and improved functionality, a small home can still offer the spaces people want. Nichols reports that architects are responding with flex spaces, repurposed areas, and efficient room sizes to increase functionality. “People are using an expanded stair landing for an indoor bicycle or small fitness equipment. In many small home designs, the separate dining room is gone in favor of an eatin kitchen with room for a separate table or two-tiered island with the lower portion used as a table,” Nichols says. “The bedroom niche we used to use for a dresser is now a spot for a desk. … I’ve even seen entries large enough to hang bikes. “Home offices do not need to be bedroom-sized,” she says. “Some interior designers are converting closets into ‘cloffices.’” Of course, no one wants to feel cramped in their home. Koones found that functional small home design often

(continued on next page)

KING

ZIP CODE 98108, 98118 + 98144

SNOHOMISH

MARKET STATISTICS MAY 2022

Bigger Isn’t Always Better: What Today’s Buyers Are Looking For in a Home


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