Real Estate Weekly: February 3, 2023

INSIDE This Issue

HAS COMMERCIAL REAL ESTATE BOUNCED BACK FROM COVID?

PAGE 5

NEARBY STORES SIGNAL PRICE TRENDS

PAGE 7

CLASSIFIEDS PAGE 7

FEBRUARY 3, 2023

All real estate advertised in Real Estate Weekly is subject to the Federal Fair Housing Act, which makes it illegal to advertise “any preference, limitation, or discrimination because of race, color, religion, sex, handicap, familial status, or national origin, or intention to make any such preference, limitation or discrimination.” We will not knowingly accept any advertising which is in violation of the law. All persons are hereby informed

that all dwellings advertised are available on an equal opportunity basis.

For further information call HUD Toll Free at 1-800-669-9777.

All Houses subject to prior changes without notice. Neither advertisers nor Skagit Publishing are responsible for any errors in the ad copy. Skagit Publishing reserves the right to refuse any advertising, which we deem unsuitable for our publication.

Unless otherwise noted, all photographs, artwork and ad designs printed are the sole property of Skagit Publishing and may not be duplicated or reprinted without express written permission.

Skagit Publishing is not responsible for typographical or production errors or the accuracy of information provided by advertisers.

Real Estate Stat

$366,900

Median price of existing home sales in the U.S. during December 2022.

Source: National Association of REALTORS ®, 2022.

Mor tgage Rate Forecast for 2023

Mortgage rates started the new year near the 6.5% threshold. According to Freddie Mac, the 30 -year fixed mortgage rate rose to 6.48% from 6.42% in the last week of 2022. Although rates are more than double a yea r ago, rates will likely stabilize below 6% in 2023 as inflation will continue to slow down in the following months. - Source: www.nar.realtor

The Federal Reserve will continue to increase short -term rates to fight inflation. They will ultimately be successful, but it will be early 2024 before inflation reaches their 2% target.

Although short-term rates will continue to incre ase as the Fed pushes them up the next few meetings, long -term rates have already peaked. We expect that 30-year mortgage rates will end 2023 at 5.2% - Source: www.mba.org

Tur n-key hobby far m with 5-stall bar n, riding arena & plent y of pasture in the hear t of Skagit Count y far m countr y This is peaceful, countr y living at its best. Fantastic desirable location, with amenities & shopping centers just mins away Beautiful pastoral sunset views from your back porch & kitchen. The home features a for mal dining room & living room, family room, kitchen with a sunny breakfast nook, three bedrooms, plus a huge bonus rec. room. Double attached garage & detached garage/shop Beautiful Bar nmaster horse bar n with 5 stalls, wash rack w/ hot & cold spigot & tack room. Fenced pasture & large sand riding arena. Proper ties like this don’t often come on the market. Don’t miss your chance, this is any animal enthusiast’s dream!

MLS #2028777

Mission Statement: The North Puget Sound Association of Realtors advocates for Realtors and their clients, and promotes the protection of property rights

PUGET SOUND ASSOCIATIO N of REALTORS®

15606 BEAVER MARSH ROAD, MOUNT VERNON $849,90 0

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

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.

By Erik J. Martin CTW Features

The COVID-19 pandemic had major repercussions for the housing market –triggering a slowdown in listings, disrupting home showings, inspections, and closings, and causing many prospective buyers and sellers to postpone or at least rethink matters.

But it also took a major toll on another side of the market: commercial real estate, which encompasses property zoned for business and commercial use, including office space, storefronts, and multifamily properties. While some sectors have bounced back, others continue to struggle.

“COVID really did a

number on commercial real estate in a few ways,” explains Leonard Ang, CEO of iProperty Management.

“First, while the trend away from brick-and-mortar retail in favor of e-commerce has been going on for a while, the pandemic supercharged it – leading to more vacant storefronts.

Secondly, work-from-home policies completely emptied many large office buildings, and many of those same buildings are still empty today. Also, restaurants were incredibly hard-hit by the pandemic, with many closing their doors forever and only a fraction of them coming back.”

The office sector was hit particularly hard, as more employees were forced to

work from home and, three years later, don’t want to return to the office. Many companies have had to downsize their digs and are struggling to pay increasingly higher rental rates for office space.

“Employers and employees are rethinking how, where, and when to do work. There is a flight to quality creating a more stark divide in office building value and utility,” Jason Aster, managing director at KBA Lease Services, notes. “The value of the retail experience has continued to fluctuate. And many corporate occupiers are still working to reduce their footprint, whether that means cutting out square footage from a large, single office or completely

shuttering various satellite offices.”

These concerns have trickled into the hotel sector as well.

“The hospitality sector took a huge hit in terms of occupancy and rates due to the lack of traveling caused by behavioral changes and travel restrictions during the height of the pandemic,” explains Jesse Shemesh, president of Point Acquisitions, LLC in Tampa, Florida.

The good news is that industrial real estate demand is booming, with the need for more fulfillment centers and warehouses, and lab and healthcare facilities as well as multifamily developments are improving, too, per Aster.

rate hike will cause to the market,” he says. “The commercial real estate market will continue to feel the effects of COVID-19 for at least the next 18 to 24 months as we look to temper inflation as a result of the policies enacted during the pandemic.”

Ang says the lingering problem of empty office space will need to be addressed.

“Look for property owners to get creative, such as signing non-traditional tenants for the spaces, including schools and daycare facilities,” says Ang.

“Millennials and Gen Z continue to have both economic and convenience concerns with purchasing a single-family home, so multifamily complexes are popping up everywhere,” he adds.

Shemesh says occupancy and rents across a lot of the major commercial real estate asset classes that were seemingly affected the hardest by the coronavirus have begun to show positive signs.

“But with rising interest rates and an impending economic slowdown, the broader market stands to take a hit once again. There’s a great deal of uncertainty surrounding the future economic impact another Federal Reserve

Kunal Sawhney, CEO of Kalkine Group, points out that the commercial real estate market reflects the health of the overall American economy and our financial well-being.

“Price growth in such properties indicates that the economy is robust, with growth emanating from increased demand of shops, offices, industrial, and other spaces,” he says.

Alex Byder, the owner of BD Home Holdings, LLC, a real estate investment company, agrees.

“Also, note that owners of commercial real estate are often massive investment funds that control pensions, 401(k)s, and other economic vehicles,” he cautions. “If these funds suffer, it could indirectly hurt people’s retirement savings – even if they don’t directly invest in commercial real estate.”

Has commercial real estate bounced back from COVID?

The complicated process of home financing

Question:

We have found a house and our mortgage has been approved. Closing will be in about four weeks. We want to buy furniture and rugs for our new home, but the loan officer says we can’t. Since we already have mortgage financing, why are we getting such advice?

Answer:

Simply put, your mortgage application has not been “approved,” if by “approved” we mean there are no further tests that might derail your financing.

Financing a home is a complicated process. This may seem odd because you want to be a borrower, the sellers want you to get financing so they can move, and the lenders most-definitely want you to have a successful closing because otherwise they don’t get paid.

Since everyone is in agreement – at least borrowers, sellers, and lenders – then what’s the problem?

The answer is that several other parties need to be happy.

First, the mortgage arrangement must meet all regulatory requirements, generally federal rules established in 2010 to prevent another mortgage meltdown. These rules are the reason you no longer see a mortgage marketplace dominated by toxic loans and no-doc applications. If you want an interesting experience, just call a lender and say you want so-called NINJA financing. “NINJA” stands for no income, no job, and no assets.

Second, if the mortgage is backed by a third party – say the FHA, VA, USDA, or a private mortgage insurance company – it must meet insurance or guarantee requirements. The underwriting process exists to assure that all required standards have been met. The lender must also be able to verify that you have the ability to repay the debt. Not only must the lender be able to prove that loan standards have been met, but they must also have the paperwork to prove it.

Given all of this, borrowers might think that when a loan application has been approved you have a done deal, but that may not be true. There are still opportunities to sink a loan application.

ASK OUR BROKER

By Peter G. Miller

It might seem as though a loan approval is like a photograph. Once the picture is taken, that’s it. In reality, a loan “approval” is not a static event. It’s more like a movie that’s not yet over.

For instance, once approved it may seem reasonable to buy a new car, couch, or fancy meal. The catch is that if you buy with financing your credit score might fall. The new score will quickly show up on credit records. Then, when the lender re-checks your credit standing just before closing – and it will – your credit score may change along with your debt-to-income ratio (DTI). For borrowers with marginal credit scores or a high DTI, a lower score or higher DTI can sink a loan application even if closing is just a few days off.

You’ve come so far, your financing or refinancing is nearly in hand, and yet you still must be cautious. The usual rule is this: Spend as little money as possible, do not open new credit accounts, and do not increase credit debt until after closing and your loan officer says it’s okay.

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

Nearby stores signal price trends

By Marilyn Kennedy Melia CTW Features

Worried about where home prices are headed?

With the pandemic-led price spikes receding, buyers and owners are worried values could erode significantly in future months.

Some guidance on price direction over the course of several years can be gleaned if a home is near one of these grocery chains: ALDI, Trader Joe’s, or Whole Foods.

Real estate data firm ATTOM, has been following price trends in zip codes containing at least one of the grocery markets, building on similar studies, like tracking home values near Starbucks locations.

ATTOM’s latest analysis looks at fiveyear price appreciation from the end of

2017 through 2022, trends reflect today’s shortage of moderately and lower priced homes.

That’s why homes near discount grocery ALDI had the highest “return-oninvestment” or “ROI” of 61 percent over the period, versus a 51 percent ROI nearby Whole Foods, and a 58 percent ROI for homes near Trader Joe’s.

ROI is determined from the total amount of money put into a home [down payment, improvement costs, taxes, etc.] versus the bump up value. The shortage of lower-priced homes pushes values up more than for more expensive ones, resulting in greater ROI, explains Rick Shargo of ATTOM.

However, by 2022, homeowners near an ALDI “had the lowest amount of equity –38 percent – versus 45 percent for those in

proximity to Whole Foods and 50 percent for Trader Joe’s. This is likely because higher-income homeowners made larger down payments and didn’t draw down on their equity as much through cash-out refinances or equity loans, Sharga.

Neither this grocery study nor the similar study on proximity to Starbucks conducted by Zillow doesn’t mean these retailers directly cause home price changes, says Jeff Tucker, Zillow chief economist. Rather, the characteristics of the population relate to value trends.

Still, the presence of these stores, “should give homebuyers at least a little bit of confidence that the neighborhood is reasonably healthy and has good prospects for growth,” Sharga concludes.

4302 APACHE DRIVE, MOUNT VERNON NEW PRICE!

Welcome home to this beautifully appointed 3 Bed/2.75 Bath NW contemporar y home with upscale touches. Living room has vaulted, beamed ceiling & lg windows providing lots of natural light. Dining room has a window seat and sliding doors to the covered brick patio The kitchen has a breakfast room, window seat, SS appliances, granite counters, and so many cupboards & ex tra counter space for all your enter taining needs. Primar y & 3rd bedrooms both have access to Trex deck overlooking landscaped backyard & concrete patio. Primar y also offers en suite bath w/shower, vanity w/ex tra storage & counter space & walk-in closet Upstairs bedrm/bonus room, w/walk-in closet, bathroom, & tons of storage Lg 2- car garage w/ex tra space, all on 1/3 of an acre. MLS#2008624

1781

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 manufac tured home, with plenty of room. Trac t has been sur veyed and wetlands have been delineated Power and PUD water are available at the street.

Perc test per formed/3 bed septic possible, permit#SW22-0073

MLS#1861233

Ideally located, level building lot with available utilities Zoning allows for a 2-4 unit multifamily build. Build your dream home or an income -producing investment proper ty Close to schools, Hillcrest Park and the 18th Street Water Park.

Easy access to I-5, shopping, and medical facilities

MLS#2099943

24017 TRINIT y lANE, SEDRO-wOOllE y

$935,000

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 MLS#2029949

2121

Co MM er CI al

Custom build your commercial enterprise: 13,361 square foot commercial tract (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.

MLS#2009122

5 ACRES

Classic 1920s farmhouse with 1368 sq ft, 2 beds/3/4 bath, and den. Beautiful woodwork and floors throughout the home, including many built-ins; please take note of the shelves in the den. Home sits on peaceful, mostly pastured 5 acres with outbuildings (a barn and a storage building). A large, covered front porch and a two -tier deck on the west side of the home enhance your enjoyment of the outdoors; the back door deck is covered and offers built-in seating Gated drive Fruit trees, grape vines, and a garden area enhance this peaceful homestead. Fenced on three sides with the four th side being the road MLS#2004946

SELLER FINANCING AVAILABLE!

Proper ty is beautifully unique; there is no close comparison. Spec tacular views from most ever y room in this unique Dan Estabrook built custom 4,000 sq.ft home: amazing attributes throughout; outstanding kitchen features Thermador Professional range w/ex tra burners and griddle; oak cabinetr y; generous size closets. 4 bedrooms, den plus amazing, spacious office separate from the main par t of the home. Air conditioning. High-speed internet. Built-in Bose speakers and stereo. Lg utility room w/deep sink. 960 sq.ft garage. Situated on .65 acre

OPEN HOUSE, SAT. FEB. 4TH, 12-3PM

Danya Wolf (360) 708-8294

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.

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 proper ty to the east of Subjec t Proper ty is fenced, open field Zoning allows for one building site Stanwood-Camano School Distric t; and just ten minutes to I-5. Great countr y living yet convenient for commuting MLS# 1841822

Danya Wolf (360) 708-8294

Three bedroom, 1 bath rambler has a large 2-tier deck with built-in bench seating and a backyard that would be wonder ful for enter taining. New roof this year, extra storage above garage, and fenced back yard on a nice low-traffic street. Great location close to schools, shopping, hospital, and easy

to I-5.

3 7 1 0 Mohawk C t, Mount Vernon n e w P r IC e $775,000

MLS#1975189

Danya Wolf (360) 708-8294

Danya Wolf (360) 708-8294

Danya Wolf (360) 708-8294

aV e , Mount Vernon $420,000

Suzanne Jenkins (360) 941-2983

Carla Fischer (360) 982-0010

20787 bUlSON RD, STANwOOD $339,000

HIllCREST lOOP, MOUNT VERNON $235,000

MARkET STREET, MOUNT VERNON $279,000

Danya Wolf (360) 708-8294

1 MOUNTAIN VIEw RD, MOUNT VERNON $115,000

Danya Wolf (360) 708-8294