Real Estate Weekly April 21, 2023

WHAT KIND OF HOME APPRECIATION CAN YOU EXPECT?

RX FOR ANGST-RIDDEN LONG-TERM RENTERS PAGE 7 CLASSIFIEDS P7

21 , 2023

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Real Estate Stat 4.0%

The national median single-family existinghome price increased 4.0% from one year ago to $378,700.

Beautifully maintained traditional home in desirable Village Park neighborhood offering privacy moments to town & forestland trails Relax on darling front porch or bbq on patio within fenced back yard & greenbelt surround. Welcomed w/soaring ceiling entr y, hardwood floors, chair rail & crown molding, for mal living w/built-in shelves bordering doubled sided see-thru fireplace to infor mal living Dining room with a grand feel connecting to wonderful kitchen along workstation & closet pantr y Fully equipped kitchen with stainless steel appl, double ovens, cooktop, eat-at granite counter island & storage Upstairs boasts fantastic bonus r m over 2 car garage + full bath, laundr y, 3 bedrooms including well situated primar y w/walk-in closet, linen & 5-piece bath. This home gives so much!

MLS#2051800

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What kind of home appreciation can you expect?

by Erik J. Martin

What goes up doesn’t always come down. Homeowners certainly hope that’s true of their homes, which should increase in value over the years – otherwise known as “home appreciation.”

“Home appreciation refers to the increase in the worth of a home over time, usually due to market conditions and other factors like renovations, improvements and location,” says Matt Tasgin, a real estate agent with United Brokers in Revere, Massachusetts.

Home appreciation is not the same as “home valuation,” which is the process of determining the current market value of a home and its likely selling price if you choose to list your home for sale.

Many things can affect your home appreciation, according to Bruce Ailion, a real

estate attorney and Realtor in Atlanta.

“Number one is often excellent schools in your area, followed by easy commuting access to highly desirable locations like jobs and entertainment districts. Crime is also a factor, as demand is lower in a high-crime location. And property taxes can impact value, too,” he says. Other influencing factors include the age and condition of your home, the location and desirability of the neighborhood and the state of the overall economy.

Additionally, appreciation is partially driven by economic inflation.

“Real estate is one of the best hedges to protect yourself from inflation. Another component is supply and demand, and location highly impacts supply and demand,” says Ailion. “For example, suppose you are

in a desirable location that keeps getting hotter. In that case, there is a limited supply of desirable locations, and as more and more people seek that location, this demand causes home prices to appreciate.”

It’s a smart idea to keep tabs on your home appreciation and, for that matter, its expected current market value, even if you don’t plan to sell your residence anytime soon.

“Doing so can help you make more informed financial decisions, such as whether or not to refinance, take out a home equity loan or home equity line of credit or make improvements that will increase your home’s value,” says Tasgin.

Real estate professional Dustin Singer echoes those thoughts.

“Knowing how much your home has appreciated can also provide a sense of finan-

cial security and help you make plans for your future,” he says.

Your home’s value is similar to your stock and bond investment portfolio, per Ailion.

“It’s a significant component of your wealth. Knowing where you stand financially is essential, as many people may draw upon their home equity for different life events, college expenses, wedding costs, health-related issues and investments in other assets or collateral for home improvement,” Ailion continues. “In addition, neighborhoods change over time; if you see prices consistently falling or not increasing near you, you might want to consider selling and moving to an area with better appreciation.”

To determine your home’s appreciation and likely current value, you can visit

sites like Zillow, Redfin and Realtor.com, which provide quick free estimates based on public data and algorithms.

“However, it’s important to remember that these estimates are not always accurate and should not be relied upon as the sole source of information,” cautions Ryan Zomorodi, COO of RealEstateSkills.com.

For a more trustworthy estimate of your appreciation and valuation, request one from a trusted Realtor or agent, who can provide this free of charge. In this scenario, the agent looks at comparable properties sold in your area and other factors. e most reliable and accurate means of determining appreciation/valuation is to have an appraisal done by a professional appraiser, who will likely charge a few hundred dollars for the service.

“ e average annual ap-

preciation rate for homes will vary by market. But a reasonable rate of return is generally considered to be between 3% to 5% every year,” says Tasgin. “Over five, 10, 15, and 20 years, homeowners can often expect their home’s value to appreciate between 15% to 25%, 30% to 50%, 45% to 75%, and 60% to 100%, respectively.”

Note that appreciation is not guaranteed.

“Homes can lose their value for several reasons, including economic downturns, changes in the local housing market and depreciating condition of the home itself,” says Zomorodi. “ ings you can do to better ensure appreciation is to keep your home well-maintained, make improvements to keep pace with the market but without over-improving, and be aware of the local real estate market.”

Ways to lower your insurance premiums

Question:

We would very much like to buy a home, but we have a lot of credit card debt. It started slowly and over the years has simply gotten bigger and bigger. We are worried that lenders will not qualify us with so many credit card bills. What can we do?

Answer: e past few years have introduced us to pandemic economics. Some households have prospered, some have not, and for many households, credit card debt is both a major cost and a barrier to mortgage financing.

At the end of 2022 credit debt reached $986 billion, up $130 billion in just one year.

Such debt can be costly. e typical credit card, according to the Consumer Financial Protection Bureau (CFPB), had a $4,773 balance in 2022. e Federal Reserve said that in December credit card users with outstanding balances routinely paid an interest rate of 20.40%.

“Nearly half of consumers with a credit card did

not pay their full balance the month prior to the survey and so are ‘revolving’ debt from month to month,” said the CFPB. “While many consumers find credit cards a useful payment mechanism, typically only consumers who do not pay their full bill every month are charged interest.”

For mortgage lenders – and for loan applicants –there’s both good and bad news here.

e good news is that about half of all credit card users do not carry a monthly balance and thus have no required monthly payments. However, the other half do have balances and must make required monthly payments. ose required payments are used to calculate a borrower’s monthly debt-toincome ratio (DTI). A mortgage application can be denied if the DTI is too high.

Excess credit card usage can impact interest rates because it represents an important part of the formula used to create credit scores. While general card usage is okay, large balances relative to credit limits can knock down credit scores. Lower credit scores

ASK OUR BROKER

By Peter G. Miller

mean higher interest rates.

According to the CFPB, “when households did have difficulty paying for a bill or expense, half also had difficulty paying for food, slightly more than half had difficulty paying the mortgage or rent, 44 percent had difficulty with a medical expense and 70 percent had difficulty paying for utilities.”

If you have excess credit debt there is a real need to reduce such balances and save money, whether applying for a mortgage or not. None of this is easy, but you have to start somewhere.

You can lower credit card debt by establishing a written weekly budget, saying “no” to unnecessary spending, and making more than minimum monthly payments. Add to savings from each paycheck and use some of the money to pay down credit card balances. Lastly, make sure you have $500 or so for emergencies, that’s enough in many cases to avoid high-cost payday and auto title lenders.

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

Open

Rx For Angst-Ridden Long-Term Renters

Marilyn Kennedy Melia

As the share of 40-something Americans who haven’t been able to buy a home increases, so do their feelings of frustration and failure.

But objectively, they are probably being too hard on themselves, says Seattle-based financial therapist Kate Dorman. (A financial therapist is a professional who “looks at how our feelings, beliefs, values, upbringing, etc. impact our financial behaviors,” she explains.)

“Even with rising incomes, buying a home is nowhere near as affordable for young adults today when compared to thirty years ago,” Dor-

man notes.

“ ere is such a shortage of housing for sale, let alone reasonably priced housing, that some young adults are exiting the space altogether,” adds Lindsay Bryan-Podvin, financial therapist at mindmoneybalance.com.

So, what’s the anecdote for frustrated would-be homeowners?

“To reach a home buying goal,” says Dorman, “it’s first necessary to explore exactly why you want to own.” She sees clients who feel they “should” own, if their friends are buying or because their parents were already established owners at their age. But

those aren’t compelling reasons to stick to the tough work of savings for a down payment and strengthening your financial profile to more easily buy, says Dorman. However, renters who “plan to live in one place for an extended period of time,” and are confident that buying is the right decision for them do have a compelling goal, Dorman adds.

Still, most Americans build the bulk of their wealth by buying a home and slowly paying off the mortgage.

So, what should renters creeping into middle-age do to establish financial security?

“It’s important to save,

period,” says Janneke Ratcliffe of the nonprofit Urban Institute.

Since data shows that renters don’t build comparable savings as homeowners, it makes financial sense to make buying a priority whenever you plan to stick in one location long enough to likely profit from ownership, she adds.

Moreover, says Ratcliffe, buying isn’t always a colossal financial challenge. Putting just five percent down is possible, and she suggests visiting downpaymentresource. com, which lists opportunities for down payment grants.

3503 W 4th Street

Anacortes

$625,000

MLS #2055887

Open House

4/22 & 4/23 from 12-2

Situated on a quiet Anacortes street just a block from the Anacortes Community Forest Lands.

Single level, beautifully maintained, move-in ready home has so many recent upgrades it might as well be new!

OPEN

Eddleman REALTOR

Call/text: 360-333-4048

Geri

60102 State route 20, MarbLeMouNt $675,000

2121 MarKet Street, MouNt VerNoN $279,000

24017 triNit y LaNe, SeDro-WooLLe y $895,000

OWNER FINANCING AVAIL ABLE!

BUSINESS ONLY $375,000

Mondo is a well- established and well-loved family-style restaurant at the foot of the Cascade Mountain Range Locals and travelers make this par t of their Hw y 20 and Nor th Cascade National Park trip. Major ar terial choice to Newhalem and continue on to Winthrop; or cross the Skagit River bridge and continue up to Cascade Pass and hiking to Stehekin. The restaurant is warm and inviting, with incredible fare. Ver y spacious dining area. Some outside seating available. Small gift shop area. The kitchen is beautifully remodeled New flooring and ex terior lighting MLS#2038466

burLiNgtoN $450,000

7.5 acres of rich farmland with 200 fruit trees, ¾ acre blueberr y, 3 acres strawberries, ¾ acre blackberr y, ¾ acre raspberr y, 60x30 paver patio in place, incredible view, fully fenced with beautiful rolling gate, some farm implements and a trac tor included.

Great potential, vacant land close to Mount Vernon and Big Lake. MLS#2057092

CO mm ER CIAL

Custom build your commercial enterprise: 13,361 square foot commercial trac t (two lots) zoned C-2. Great location near recreation center; major grocer y store; hotel; restaurants; offices; health club; house and farm supply stores; gas stations; banks; and I-5. Water, Cascade Natural Gas, Puget Sound Energy, City sewer, and Comcast are all in the street

There are so many investment possibilities with this home and proper ty Classic 4 bed/2.5 bath farmhouse style 2560 sq.ft home with east facing deck on 1.7 acres Home offers kitchen w/island and ceramic tile floors, office, bonus room, mud/laundr y room, living room with propane fireplace, built-in bookshelves, and beautiful laminate over hardwood floors Studio cottage has own kitchen and bath. Proper ty also features a 16,000+ sq.ft. pole building/barn with office space, shop, and room for RV storage. Potentially 5K in rental income each month from the cottage, barn, and RV storage.

La

rotary CLub

La Conner Rotar y Club

tulip sales through the month of April:

Ver y private 5 acres just off Mountain View Road. Come check it out, a great neighborhood.

Conveniently located corner building lot with available utilities Build your dream home in this neighborhood that is close to schools, Hillcrest Park, and the 18th Street Water Park. Easy access to I-5, shopping, and medical facilities.

The Kiwanis S almon BBQ is open each Friday, S aturday, & S unday in April, ser ving 11 am to 7 pm. There is delicious meals, a raffle for a stunning quilt ($1 tickets), smoked salmon to take home (sold by the pound), and sometimes live enter tainment. Be sure to visit the Kiwanis S almon BBQ this year and suppor t the youth of Sk agit County.

Daily 11 am to 5pm at Shawn O’Donnell’s American Grill & Irish Pub and Hedlin Farms, (near La Conner round about) and Mon-Friday, 9 to 5:30 pm at Skagit Tradition Realty. Tulips are $6.00 per bunch.

NHN S. 15tH Street, MouNt VerNoN $199,000

MLS#2029949 Suzanne Jenkins (360) 941-2983

Carla Fischer (360) 982-0010

CoNNer

0 S aNDaL rD, MouNt VerNoN $149,000

Danya Wolf (360) 708-8294

21136 Lafayette rD,

MLS#2050192

Kato LaNe, MouNt VerNoN $149,000

Danya Wolf (360) 708-8294

MLS#2009122

Danya Wolf (360) 708-8294

Danya Wolf (360) 708-8294

MLS#2028784

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

CRS/CBA/GREEN