REAL NEWS M A Y
May
2 0 2 1
Musings
When Covid hit, the business buzzword was "pivot." Life as we knew it came to a sudden halt, and consumer buying behavior changed instantly. By summer 2020, consumers were buying homes with the same frenzy they purchased toilet paper 3 months before. Homes in rural locations were being snatched up like people’s lives depended on it. And perhaps it did. The past few weeks have resulted in the market shifting in a subtle side step, not a leap forward or back. 2021 buyers are concerned about overpaying for a property, and they will not blindly accept defects in a property. Their home wish-list focuses on a post-Covid lifestyle with thoughts of another lockdown as a possibility (just like they are keeping at least a few extra rolls of TP on hand, in case). What has changed recently in our area is the announcement of a new fivestory, 600,000-square-foot Amazon fulfillment center in Arlington, which will create an estimated 1000 full-time jobs. Since Arlington's population is an estimated 22,000, there is no doubt that some areas of the southern Skagit County real estate market will benefit. For Sellers: It is still a seller’s market, but sellers should not be greedy or unreasonable. More buyers’ are walking away from transactions where the sellers are not making reasonable concessions. Buyers’ are trying to avoid bidding wars, and are more content to wait and see what else will come on the market this spring or summer. New mortgage applications were down the third week of April despite a slight dip in mortgage rates. Nothing lasts forever. For Buyers: Buyer fatigue is real, with many buyers choosing to stay in place and make modifications to their home. As cities reopen and the protests have reduced, at least locally, some buyers are looking for a get-away rather than relocating their main residence. And some buyers are sitting out until the demand subsides. But record low-interest rates still make this an excellent time to buy if you want something your current home does not provide.
TheGroesbeckGroup.com
360.941.3734
1
APRIMarket L Update
2021 vs. 2020 2021
2020
$362
Anacortes
$301 $238
Burlington
$278 $220
Mount Vernon $0
$100
$200
19 12
Mount Vernon $300
Average Price Per Square Foot
$400
La Conner
11
Mount Vernon
35 0
10
20
30
Average Days on Market
40
2.7
1 1.6
Burlington
40
La Conner
$269
1
Anacortes
26
6
Burlington
$178
La Conner
15
Anacortes
$281
1.1 7 less than 1
1.3 0
2
4
6
8
Months of Inventory
2021 continues to be Seller's market! If we compare April 2021 vs. April 2020 in ALL SKAGIT COUNTY, the Months of Inventory based on Closed Sales is 0.7, down 67.8% from the previous year. The Average Sold Price per Square Footage was up 25.1% compared to last year. In April, the Median Sold Price was $455,000, up 14% from $399,000 in April of 2020. The Average Days on Market showed a downward trend, a decrease of 45.2% compared to the previous year. You can see the individual numbers for each of the main Skagit County cities in the charts above. With home values appreciating, there's a good chance you have more home equity than you think. Contact us to find out! Call or text 360-941-3734 or email Jean at Jean@JeanGroesbeck.com
Jingles & Belle's
Co
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We've joined Carbonfund.org!
THE GROESBECK GROUP is proud to announce that we have joined Carbonfund.org. The program’s objective is to provide a way for individuals or companies to help neutralize the carbon footprint of doing business. We Are Local Most of us grew up in the NW, so we committed to minimizing our impact on the environment. We became an almost paperless company several years ago; we recycle, we repurpose, we collect items, and donate. Since Covid, much of our business has become virtual, which allowed us to dramatically reduce the number of miles we drive but moving to a digital world has forced us to increase our use of electricity and the number of electronics we use to run our business. This is a way that we can help neutralize that impact and keep this beautiful area pristine for future generations.
TheGroesbeckGroup.com
360.941.3734
2
By Jean Groesbeck
If you are trying to decide if you should sell this year or wait, here are some things you should consider. Interest rates have started to move up slightly and are expected to continue to rise. Low-interest rates have been a major contributing factor towards high demand as millennials have been able to purchase their first home. These are not the 2 bed/1 bath fixers that their parents owned as a first home, but expensive homes with smart home features and upscale amenities. Rising interest rates impact home demand and home prices. Inventory has remained low because of two reasons. One is that there is a national trend for people to stay in their homes longer. The average turnover has been impacted by the extension of the number of years people stay in their home after the children leave since the kids often come back. People also live much longer after retirement and often stay in their homes longer before aging to the point where they can not stay in their homes. Covid-19 caused more impactful reasons for the low inventory. Construction was completely shut down and then opened on a limited basis with criteria that raised labor costs. Trade interruptions caused the price of materials to skyrocket. Some types of lumber are up to as much as 7 times, and the cost to build a home has doubled. When new construction is in short supply and dramatically more expensive, the value of existing (preowned) homes also goes up. As borders and trade open, the cost of material will hopefully come down in 2022, but it is expected to stay high throughout 2021. High value and little competition fuel the argument to sell now. In addition, consider the taxes that you might have to pay. The current Administration has 2 significant agenda items that should be considered when deciding whether to sell your home. The first is a discussion about increases in Capital Gain Taxes. At this point, there is talk that it will only impact the highest net worth individuals, but the definition of high net worth is not determined. The second area of concern is that the administration has stated that they want to eliminate the 1031 like-kind tax-deferred program. This could significantly reduce profits from the sale of income properties. This is something to watch closely! For most people, especially if downsizing, this is the most profitable time to sell. If you are upsizing, a more thorough analysis would be prudent. We know the market this year. We don’t know for sure what next year will be like, but we know Skagit County will continue to be a fabulous place to live! 3 TheGroesbeckGroup.com
360.941.3734
809 7th St Anacortes, WA 98221 360-899-5027 Info@JeanGroesbeck.com THEGROESBECKGROUP.COM AnacortesRealEstateGuide.com
*If you are currently working with a broker, this is not intended to solicit our business.
Home prices still on the rise...for now The main reason for the short-term spike in nationwide home prices has been Covid-19. Inventory has been shrinking since Covid-19 started, but it seems it is starting to stabilize in some areas, although at a slow pace. The number of new listings is picking up, but they are still selling quickly, and some still with multiple offers. This will most likely be the case throughout 2021, but 2022 could result in a shift toward a more balanced market. If you are trying to decide if you should sell this year or wait, we invite you to keep reading our May newsletter where you will find additional information that might help with your decision.
Jean Groesbeck Managing Broker 360.941.3734
Jean@JeanGroesbeck.com
Taby Perron Managing Broker 956.337.2131
Taby@JeanGroesbeck.com
Eileen Hebert Broker 360.770.7090
iloveanacortes@gmail.com
Summer Heaton Broker 360.540.7716
$360,000
Summer.Heaton@Compass.com