Real Estate Weekly: February 11, 2022

INSIDE

This Issue

THE UPS AND DOWNS OF RENTING. WHERE RENT PRICES HAVE INCREASED AND DECREASED LATELY PAGE 5 WHAT’S AFFORDABLE? CHECK YOUR OWN PAYCHECK’S POWER PAGE 7

FEBRUARY 11-17, 2022

INSIDE

TABLE OF CONTENTS

PAGE

5

The Ups and Downs of Renting.

Where rent prices have increased and decreased lately....................................................P5 Q&A Ask Our Broker.......................................................................P6

What’s Affordable? Check Your Own Paycheck’s Power ..............................................P7

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February 11, 2022

STAT Real Estate Stat

1,702,000 The rough number of housing starts in the United States in the month of December 2021.

Source: National Association of Realtors

NORTH PUGET SOUND ASSOCIATION of REALTORS® 525 East College Way, Suite J

Mount Vernon, WA 98273

Tel. (360) 416-4902

www.npsar.realtor

FEATURED REALTY: 1405 ALpinE ViEW pLACE, EAgLEMonT Skagit Tradition Realty LLC 3780 E. College Way Mount Vernon, WA 360-424-0300 www.skagittraditionrealty.com

$599,000

Elva HuntEr (360) 202-3086

Spacious Condo in up-scale Eaglemont Community designed for casual/elegant living. Great room with gas fireplace, vaulted ceiling, ideal space for entertaining guest or relaxing, opens to kitchen with island & eating bar. 3 bedroom/2 bath. Large owner suite with dual closet. Dining opens to private patio with views across the golf course. Low maintenance living with yard service. Great walking neighborhood, with open space and trails. Less than 10 minutes to downtown Mount Vernon.

MLS#1884132

Mission Statement: The Nor th Puget Sound Association of Realtor s advocates for Realtors and their clients, and promotes the protection of property rights.

February 11, 2022

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Now could be the time to sell a new home and earn a slice of the real estate pie.

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Record-low interest rates is renewing interest in the housing market for many people.

“When sellers are interviewing real estate agents to market their homes, their primary focus is usually on the advertising that the agent will offer them,” says Jessica Goodbody of Weichert Realtors.

Let us help you meet your marketing goals by advertising your listings in Real Estate Weekly.

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c i p r s y a t

c a r a

c m Th F February 11, 2022

“I would encourage renters to seek out these areas in the South if they are looking for a good deal, but understand that rent prices will likely increase by a larger percentage when it comes time to renew,” Carberry explains. “Conversely, if renters are looking for deals in bigger towns, there are a few major metros where prices are declining year-overyear, including Philadelphia, Atlanta, and Indianapolis.”

Ask Jonas Bordo, CEO/ co-founder of Los Altos, California-headquartered Dwellsy, and he’ll tell you that today’s best deals in small markets can be found in Midland, Texas; Peoria, Illinois; Hutchinson, Kansas; Minot, North Dakota; and Harrisonburg, Virginia.

“If you are considering moving to another city or state, small but high quality of life cities often offer the best value,” he adds.

Mueller cautions that, within a given market, prices can vary significantly among neighborhoods.

“There may be opportunities to save on rent by moving further out from the city Omaha, Nebraska; Louisville, center or by exploring up-andsays. Recently, migration has Kentucky; El Paso; Oklahoma coming neighborhoods within been driven by affordability.

City; Indianapolis; Corpus According to the US Census a metro area,” adds Mueller.

Bureau, on average 45 million Christi, Texas; and Kansas The bottom line? It’s crucial City.

American residents move evto do your homework and ery year, 30% of whom do so “In each of these cities, the research average rental prices to reduce costs. So predicting median cost to rent a onebefore committing to a major future rent prices guides many bedroom unit is less than move to a new city or state. people to move to metro areas $900. That’s substantially less “This will not only give you where rents are affordable, than what it costs to rent in an idea of what you can expect as housing costs amount to New York City, where the me- to pay for a lease today, but dian price for a one-bedroom it could help indicate what almost 30% of the typical apartment was $3,450 in De- rent price increases may look person’s annual budget.” cember 2021,” notes Mueller. like when your lease is up in a Move.org’s list isn’t the While the South has seen only trusted resource here, year,” recommends Carberry. plenty of rent price increases of course. Data from Apart“In addition, by understandmentAdvisor.com indicate over the past year, many ing what the going rate is in that, among the top 50 most areas in those regions are still a specific area, renters will be populated cities, the least relatively affordable compared better informed about whether expensive places to currently to the national average, says they are getting a good deal on rent a one-bedroom apartBrian Carberry, Senior manag- a unit or might be overpaying ment are Wichita, Kansas; ing editor for Rent.com in for something that they could get cheaper just up the road.”

Tulsa, Oklahoma; Milwaukee; Atlanta.

The Ups and Downs of Renting Where rent prices have increased and decreased lately

creased, on average, -14.28%); Oakland (-11.34%); Seattle lanning on becoming or (-8.23%); New York City remaining a renter this (-6.61%); San Jose (-6.53%); year? You’re likely con- Washington, DC (-6.35%); cerned about rental affordabil- Minneapolis (-5.96%); ity and the prospect of lease Boston (-4.66%); Jersey City, price increases, and for good NJ (-4.33%); and Chicago reason: The costs to rent have (-3.33%). spiked dramatically in recent Meanwhile, the 10 metros years, rising by 5.5% in 2021 where one-bedroom apartment rent went up last alone, on average, according year include: Fresno (into Move.org.

That’s why it pays to look crease of +17.52%); Chanclosely at carefully researched dler, Arizona (+16.41%); and ranked markets where Tampa (+16.39%); Mesa rental prices are more reason- (+16.09%); Henderson, able.

Nevada (+15.95%); Las Vegas Move.org recently listed 10 (+13.94%); Albuquerque cities where bedroom apart(+13.93%); Virginia Beach, ment rent decreased in 2021. Virginia (+13.74%); Phoenix They include, in order: San (+13.70%); and St. Petersburg, Florida (+13.66%).

Francisco (where rent deBy Erik J. Martin

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February 11, 2022

“For most renters in the United States, 2021 was a tough year to be looking for a new place,” says Amy Mueller, vice president of communications for Boston-based ApartmentAdvisor.com. “Demand was high and supply was low, largely due to pandemicrelated factors. This resulted in high prices and low vacancy rates, making it harder for renters to find an available, affordable apartment.”

It’s important to try to forecast rent price increases if you are lease-minded, agrees Al Lord, founder/CEO of Lexerd Capital Management in Summit, New Jersey.

“Potential rent price increases impact tenants’ budgets and, indirectly, affordability,” Lord

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How Can We Reduce Our Monthly Mortgage Payment?

Question:

Our household lost two jobs as a result of the pandemic. We are employed again but have a backlog of debts to clear up. How can we reduce the biggest bill, our monthly mortgage payment?

Answer:

According to the Federal Reserve Bank of St. Louis, unemployment claims hit a pandemic high in May 2020 when more than 23.1 million people sought jobless benefits. By mid-December 2021, just 1.86 million had unemployment claims, meaning that more than 21 million people are no longer receiving benefits.

The good news on the unemployment front does not necessarily mean that individuals did not miss bill payments or increase their outstanding debts. The result is that even as household income has been restored, many borrowers have lower credit

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scores. Ice Mortgage Technology reports that the average credit score for closed mortgages was 740 in September 2021 versus 753 a year earlier.

Lower credit scores, in turn, may limit the refinancing options available to borrowers.

Still, there are several ideas to consider.

First, is your current mortgage rate higher or lower than today’s current rates?

If higher, it might make sense to look at refinancing as a way to cut monthly costs.

Second, millions of homes now have more equity as a result of soaring appreciation.

The National Association of Realtors (NAR) reports that the typical existing home sold for $353,900 in November—up 13.9% in a year.

This additional equity may make it possible to refinance, get a lower rate, and— with 20% equity—also end the need for monthly mortgage insurance payments.

Alternatively, without refinancing, if you

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Q&A

ASK OUR BROKER

By Peter G. Miller

have a conventional loan, a less expensive way to cut costs is to contact your lender and ask if they will cancel your mortgage insurance. They will require a good payment history as well as 20% equity. You may need to get an appraisal to show a higher current value. Speak with your mortgage servicer for details.

You may also want to speak with the loan servicer about a mortgage modification.

The current loan stays in place with a modification, but the terms change. For instance, a lender might agree to a longerterm (and thus a smaller payment), moving missed payments to the end of the loan term, or even a lower interest rate.

Email your real estate questions to Mr. Miller at peter@ctwfeatures.com.

February 11, 2022

What’s Affordable? Check Your Own Paycheck’s Power

By Marilyn Kennedy Meia

the median home. Numbers above 100 indicate mean median earners have wiggle room with their ffordability is one consideration every budget, while numbers below 100 signal prices are homebuyer contends with. relatively high.

Whether it’s a family with $80,000 in Since the pandemic, many remote workers in total income or a retiree who’s amassed a multiexpensive cities have been browsing those “Best million dollar nest egg, certain homes are available Places” lists and moving to smaller, less expensive to them only if they can swing the expense. towns.

That’s why the “affordability index” has long But the big-city transplants are bringing their been a staple used by housing professionals, includ- higher paychecks with them and are willing to pay ing the National Association of Realtors and the top dollar. popular “Best Places To Live In” lists.

Jim Whatley, broker-owner of Uber Realty says Comparing the median income in a particular that in the Florida panhandle area, prices are becoming unaffordable for many locals. “I call them area to the monthly mortgage payment—given a 20 percent down payment—on the median-priced the ‘power buyers’,” says Whatley, referring to an out-of-towner who sell their pricier homes and home, an affordability index of 100 means the swoop in, often offering not just a high price, but median income household can perfectly afford

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all cash.

Zonda, a housing research firm, has recently issued a new “Zonda Affordability Ratio” that considers how affordable places are based on the five most popular locales people moving to the area are from.

After adjusting for income from relocating buyers, Zonda found the top five markets for affordability are Cleveland; Louisville, KY; Chicago; Indianapolis; and Cincinnati—as these markets offer many homes under $300,000.

Given that affordability is increasingly based on a buyer’s financial profile, it’s probably best that buyers judge their price point during a “prequalification” session which most mortgage lenders provide for free.

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24094 n. west View Rd, Mount VeRnon

$850,000

After 60+ yrs this Big Lake prime property on the sunny side of the lake can now be yours. Approx.

80 ft of no-bank water front just minutes away from a nine-hole golf course. Property features a pier connected to a floating dock perfect for mooring your boat & watercraft. The approx.

4,500 SF of property bisected by N. West View Rd has an access road and additional possibilities for your needs. Besides the 2 bed 1 bath manuf. home the lot has a detached 750 SF garage/ shop, out buildings and RV parking.

And the large covered deck is perfect for watching eagles, seasonal waterfowl & spectacular sunsets!

Russ Lanker MLS# 1848508 (360) 708-1117

2121 MaRket stReet. Mount VeRnon

$158,800

Custom build your commercial enterprise: 13,361 square foot commercial tract (two lots) zoned C-2. `Preliminary sketch for 5,280 square foot retail building plus 24 parking spots. Great location near recreation center; major grocery store; hotel; restaurants; offices; health club; house and farm supply stores; gas stations; banks; and I-5. New price reflects Skagit County tax assessment Danya Wolf value. MLS# 1848626 (360) 708-8294

1 Mountain View Rd, Mount VeRnon $115,000 17180 MeMoRial Hwy Mount VeRnon $415,000 Located just outside the Mount Vernon City limits, this wooded 1 acre plus lot could be a building site for a stick built, modular, or manufactured home, with plenty of room. Tract has been surveyed (LeGro and Associates) and 6.98 acre tract zoned Rural Intermediate. Level wetlands have been delineated (Oscar acreage with great road access both from Memorial Highway and from Avon Allen Road. Stop light and curbs at the intersection.

Graham and Pat Bunting).

Special Use Permit potential. The Power and PUD water are Animal Hospital and an espresso stand is across the road to the west. available at the street.

980 feet along Memorial Highway (SR-536);620feetalongAvonAllenRoad. Danya Wolf Danya Wolf MLS# 1861233 (360) 708-8294

20787 Bulson Rd, stanwood

Patricia Box Office Manager O: (360) 424-0300 C: (360) 941-9186

JoAnn Boudreau (360) 391-0746

$350,000 Beautiful wooded 4.98 acres situated on south side of Snohomish County/ Skagit County line. Power is in street.

Solar power is also possible. Adjacent property to the east of Subject Property is fenced, open field. Zoning allows for one building site. StanwoodCamano School District; and just ten minutes to I-5. Great country living yet convenient for commuting. Danya Wolf (360) 708-8294 MLS# 1841822

Juanita Bunch (360) 941-5530

Carla Fischer (360) 982-0010

MLS# 1572330

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John Hunter (360) 202-3086

Carla Fischer 360) 982-0010

$250,000

Magnificent views of Boundary Bay and the mountains! Enjoy the lights of Vancouver BC, only 45 minutes away! Less than 20 miles to Vancouver international Airport. Point Roberts is a quaint community with forests, beaches (close to Maple Beach), and the ocean yet near to all that the big city has to offer. This lot is ready for your dream home; power at the street, water at the street (Point Roberts Water District).

Danya Wolf MLS# 1863417 (360) 708-8294

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Every transition is an opportunity, regardless of your stage of life. By partnering with an SRES like one of us, you gain the help and experience of a Realtor® specializing in meeting the needs of home buyers and sellers 50+.

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Suzanne Jenkins (360) 941-2983

360.424.0300

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wHalen dRiVe, Point RoBeRts

$600,000

Prime commercial property with utilities in street, including P.U.D. water, Puget Sound Energy electricity; Cascade Natural Gas, fiber optics; cable; and sewer.

Subject To survey and short plat. Property is located between ChicagoTitle Company easterly parking lot and Max Dale Restaurant’s south Danya Wolf (360) 708-8294 easterly parking area. MLS# 1649968

in d en

$435,000

Charming 1950’s rambler on the Mount Vernon hill has been updated to a more open floor plan. Large kitchen with granite counters, three bedroom and 1 bath. Features hardwood floors, lots of closet space and spacious laundry room. Never run out of hot water with a tankless water heater.

Garden shed in the fully fenced back yard. Near the hospital district, amenities, schools, & public parks. MLS#1882834

(360) 708-8294

2XXX uRBan aVenue, Mount VeRnon

Elva Hunter (360) 202-3086

908 s. 18tH st., Mount VeRnon

Phil LaMay (360) 840-3086

Russ Lanker (360) 708-1117

Brett Tacker (360) 840-7931

Carla Fischer

(360) 982-0010

Elva Hunter

(360) 202-3086

Danya Wolf Designated Broker/ Owner (360) 708-8294

3780 E. College Way, Mount Vernon

www.skagittraditionrealty.com 178153-1

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February 11, 2022