REAL NEWS O C T O B E R
2 0 2 1
ARE WE
BOUNCING
AT THE TOP?
The news has been full of reports of the cooling real estate market. It is true that the number of multiple offers has declined and homes are staying on the market longer. However, buyers that think they can get a good deal are likely to be disappointed. Here is a market Snap Shot for a 3-month Rolling Average for the 3rd Quarter for our area:
ROLLING AVERAGE COUNTY
MEDIAN PRICE 2021 2020
3RD QUARTER
# CLOSED SALES 2021
2020
% LIST PRICE 2021 2020
# NEW LISTINGS 2021
2020
SKAGIT
$479,730
$405,000
678
801
101.1%
100%
815
914
ISLAND
$490,000
$400,000
644
703
101.5%
100%
731
695
"SALES ARE DOWN" There was a decline of 15.4% in Skagit County and 8.4% in Island County in the number of transactions during the 3rd quarter. The number of new listings was down 10.5% and 5.2% in Skagit & Island Counties respectively. These stats reflect sales through the MLS for residential properties but do not reflect all the custom homes sold nor the new homes sold directly by builders. "THERE IS NO INVENTORY" Inventory is still extremely low as it is a sellers' market, but there are new listings daily. They sell fast and buyers need to be ready to act even faster. The markets in our area only have a few weeks supply, but that supply is rotating as homes come on the market and sell. "PRICES WILL COME DOWN" Not likely. Low interest rates & high wages in our area probably going to fuel demand through 2022. If anything, we are likely to experience modest growth. Predictions vary based on the type, style, and price range of homes. Call Jean at 360.941.3734 or Taby at 360.553.0715 to discuss the current market demand for your home. TheGroesbeckGroup.com
360.899.5027
1
SALES ARE DOWN... BUT THE MARKET IS NOT
THE FACTS Home price appreciation has cooled nationwide in the last 2 months but the NW continues to outpace the nation fueled by high demand. Inventory is increasing throughout the U.S. but remains low in the NW. Low-interest rates continue to fuel the market. The average fixed 30-year rate is approximately 2.84%. Existing home sales (number of transactions of pre-owned homes) decreased 2% between July and August nationally but not in the NW. Market softening nationwide is coming from a reduction in demand for existing homes. Buyers always prefer NEW homes; builders continue to build even at record high costs of both material and labor and are building as fast as the supply chain allows.
PREDICTIONS FOR THE BALANCE OF 2021 Appreciation will continue but at a much slower pace. Interest rates are expected to stay low for the balance of 2021. The number of home sales will continue to be stunted by a lack of inventory. High prices and a lack of choices will fuel buyer fatigue causing some buyers to either sit out of the market until next Spring or look in geographic areas with more affordable options available.
Mortgage lenders and escrow companies will experience a decline in refinancing loan volume easing the backlog in getting appraisals. Timing the market is KEY to capitalizing on your investment. It starts with YOU. Let us know your goal and your dream. We will give you detailed and honest information so that you can make the decision that is best for YOU.
Contact us at info@jeangroesbeck.com or call or text 360.941.3734.
s'ell
M
a
nny & Be
C orner
Pet Dangers to Avoid During Fall and Winter Months Now that the crisp weather is upon us, there are a few things we should be on the lookout in order to protect our pets. Here are the most common dangers for pets during the fall and winter months: Antifreeze: Pets are attracted to the sweet taste of ethylene glycol, and a few spoonfuls are enough to poison or even kill your pet. Mushrooms: All mushrooms are toxic to dogs. Always watch for mushrooms in areas where you walk your dogs or where they run and play. Rodenticides: In fall and winter, mice and rats come flocking indoors to warmer surroundings. Putting out rodenticides will get rid of rodents but could also be fatal to your pooch and cat. Candy: Everyone knows that chocolate is toxic to dogs, especially the baking variety, but so are raisins and the sugar-free sweetener xylitol. TheGroesbeckGroup.com
360.899.5027
2
THE RIGHT TIME TO SELL? You can time the market or you can time your life...
Financially, there are reasons to sell now. The current administration continues to push for an increase in capital gains tax. If you are not going to reinvest all of the money in your next home, and if you have significant capital gains, the tax implications could be significant. The elimination of 1031 tax exchanges is also a priority item for the current administration. In addition to federal taxes, the current state administration has proposed a capital gains tax on the sale of stocks, bonds, and other assets. As of now, the proposed changes exclude residential real estate but many feel the sale of real estate investments could be added in the future. Elected State officials are looking for a way to tax income without calling it a state income tax since that would be political suicide. Short term, the exclusion of real estate from the proposed state capital gain tax won't hurt the real estate industry. The other proposed taxes for stock gains could be detrimental. Stock options and restricted stock units are frequently used to fund real estate purchases. Also, the sale of stocks is often used for real estate purchases. The impact could be negative in neighborhoods that cater to local companies Amazon, Microsoft, and Boeing. Another critical factor in determining the right time to sell is what is happening to real estate prices at your new destination. If that market is appreciating faster than here, then you have to consider the reduction in buying power you will have by staying in your current home. If your destination market is flat, then you have the luxury of time. Think of it as trading a car. It is the difference you have to pay between the car you trade-in and the one you want. Timing the market for the best financial outcome is wise if it fits your lifestyle. First and foremost, this is your home and your sanctuary.
DO YOU KNOW A
First-time buyer?
Many first-time homeowners are not aware of state bond loans. These loans are paid out by using mortgage revenue bonds ( MRBs). To qualify, the annual household income must be less than $97,000 and applicants must attend a seminar, then they can apply for down payment assistance. BUY NOW OR SAVE FOR A DOWNPAYMENT? FHA loans will allow up to $96.5% of the home price to be financed. USDA rural housing loans offer up to 100% financing. Of course, for all of these programs, good credit is a must. It is most likely more beneficial for first-time homebuyers to use one of these programs and purchase now rather than wait. Even with the more modest appreciation, we expect in 2022, the combination of low-interest rates, rising rents, and the housing shortage will make the purchase decision financially more accessible sooner rather than later.
Eileen Hebert and Summer Heaton, brokers with both have extensive experience helping first-time homebuyers realize their dream. Contact them for a private consultation and they can help both a novice buyer and experienced buyers navigate through financing options and the right home to purchase to meet a buyer's needs and be a good investment. Eileen Hebert iloveanacortes@gmail.com 360.770.7090 TheGroesbeckGroup.com
360.899.5027
Summer Heaton summer.heaton@compass.com 360.540.7716
3
Our pets are part of the family, and in some cases, they rule the family! This is being translated into a new home design trend ... a room dedicated to a pet.
smooR TEP
A pet room might be a flex room converted to a room for the pet or storage space under the stairs with access by a pet door, but it is definitely a growing trend we see in our area. A cat room might have multiple litter boxes, a fan, cat perches, and toys. Spa-like master baths have been around for a long time, but now we are seeing more pet spas in homes. They have wash stations which could be just a walk-in shower with a handle spray, or as elaborate as a walk-in bathtub with a door (which starts at $3,000). The pet spas might have a grooming table, large air dryer, kick plate attached to the built-in vacuum, and a mirror at the appropriate height for the family member with 4 legs. Some of these rooms also have toy storage, a water station, food storage, TVs, and food bowls at the appropriate height, to prevent strain on the pet. It really isn't that odd if you think about it. Homebuyers shop for homes with yards that will fit a pet's needs. They might select a home close to a park where they can walk the dog, and a fence is a must if your dog is allowed outside without a leash. Just remember if you make a pet room in your home, don't do permanent modifications that only work for a pet or you could be hurting the resale value of your home. Installing pet doors from the house to the garage compromises the fire barrier quality of the door, and it will be called out as a defect in a home inspection.
Sustainability Sustainability is becoming a more critical factor in a buyer's consideration of goods purchased. Buyers are looking to protect resources, purchase healthier items for people and animals, and respect the environment. If you shop online, you have noticed a reference to the amount of water used in the manufacturing process, whether or not a product was responsibly sourced, or what was done to respect fair trade. Keeping materials out of landfills, and a process on recycling, sustainability the use of organic materials and the use of recycled materials will continue to grow as a priority for buyers. Although it is just creeping into the housing market, it is likely to become a more significant factor in years to come, so if you are planning to do any remodeling or updates, it would be wise to keep those factors in mind. *If you are currently working with a broker, this is not intended to solicit our business.
Start Your Real Estate Journey Eileen Hebert
Jean Groesbeck Taby Perron Summer Heaton