Three Hot Buttons In Real Estate
The real estate industry has been in the news a bit lately. Not so much about the trends and home values. More so about class action lawsuits, which have stolen a lot of attention away from the positive activity that is happening in our market. While the lawsuit is an important story to track, one critical item to mention is that WA has already complied with the majority of what the proposed lawsuit settlement is suggesting.
New laws went into place on Jan 1, 2024, that complemented changes our MLS started making in 2019. We have been smooth sailing for almost four months bringing heightened transparency to every real estate transaction we do with new laws, forms, and procedures. The national hype has caused a stir, so before I get into the three important trends, I wanted to let you know that WA is ahead of the curve. If you have any questions on how to distinguish the national headlines from the local truth, please don’t hesitate to contact me.
INFLATION – INTEREST RATES & INSURANCE
Inflation has been a hot topic for a few years now. We all know the cost of groceries, gas, and everyday items are higher than they were just a few years ago. This caused interest rates to increase in spring 2022, hovering between 6.25-7.5% over the last 2 years. Despite these rate increases we have watched the real estate market and home values recover and start to appreciate again. The median price in Whatcom County is up 11% in Q1 2024 over Q1 2023 and up 8% in Skagit County. The spring market has sprung!
The lending costs to purchase a home have increased and it has limited and sidelined some buyers. However, many are finding ways to make it work and demand is strong with the return of multiple offers and price escalations on well-priced and presented listings. If you are waiting for rates to come down, also pay attention to prices as it is a delicate balance of affordability. The option to re-finance your interest rate down the road if rates dip will decrease your monthly payment while keeping your loan balance fixed.
Homeowners Insurance has also been hit hard by inflation and a heightened amount of claims over the last four years. Natural disasters such as fires, floods, and earthquakes have depleted many insurance companies’ reserves causing them to re-calibrate their rates across the board to keep up. You may have seen an increase in your rate. With home values and goods on the rise, it is important that you have your home and belongings adequately insured.
I’d suggest you check in with your carrier to make sure they have your home and your belongings properly valued. With market dynamics quickly shifting I’d caution you from grabbing your home value from an online estimator such as Zillow or your insurer’s automated program. Those algorithms are most often inaccurate which could leave you under-insured. I’m happy to help you assess the current value of your home in today’s market so you can properly calibrate your homeowner’s insurance in this volatile insurance environment.
HOME EQUITY MOVEMENT:
According to ATTOM data, 67.4% of homeowners in the U.S. have at least 50% home equity, with 38.7% owning their homes free and clear. Locally, the average homeowner in Whatcom County has 62.4% home equity, and in Skagit 61.6%. Those local figures were reported in Q4 2023 and we have seen a jump in values since then indicating that those figures are now higher.
The point is that home equity is strong for many homeowners, which allows homeowners who are looking to make a move to use creative options to make those moves smooth. We are in a competitive seller’s market so trying to purchase a home contingent on the sale of your current home is a challenging feat. At Windermere, we have the awesome Windermere Bridge Loan Program (WBLP) that helps people tap into their equity to make their next purchase instead of having to sell their homes first.
The WBLP does not require an appraisal like a Home Equity Line of Credit (HELOC), is quickly approved, and does not require monthly payments. The loan balance and any accrued interest are paid off when the collateral property is sold, allowing buyers who are also sellers to easily utilize their equity and not have to move twice. I’ve even seen the collateral property close first if strategized properly. This eliminates having to fund the Bridge Loan altogether, yet it was used to make that buyer’s offer competitive and helped them win the house for their next chapter in life.
HOME PREPARATION OVERWHELM:
One of the biggest tasks I assist clients with is preparing their homes for the market. How a home comes to market can make a huge difference in the bottom line. Remedying deferred maintenance, making home improvements, remodeling, clean-up, purging, and merchandising can all contribute to a seller making more money on closing day. Creating a punch list of items that will create the most favorable return is a service I provide my clients.
Identifying the available funds, hiring service providers, and just getting started can cause overwhelm and sometimes paralysis. As stated above, many homeowners have amazing home equity. Leveraging home equity can help a homeowner complete the projects that will make a better profit! At Windermere, we have the Windermere Ready Program (WRP) which allows home sellers to tap into their equity before coming to market to get their homes market-ready.
Like the WBLP, the WRP is quickly approved, does not require an appraisal, and monthly payments are not required. We figure out which projects we want to focus on, gather bids from trusted contractors, create a budget, and apply. The funds are provided within 2 weeks and we can line up the work and start the transformation immediately.
I’ve seen simple flooring replacements and fresh paint transform a house. We’ve even done a full kitchen remodel to completely change up the vibe. The projects that warm my heart are helping elderly sellers sort through years of living and clearing the space for potential buyers to envision themselves in the home. Did you know that there are companies that help people sort and purge their belongings, so they are prepared to move on to their next chapter? Lastly, we can solve property issues with the WRP! Earlier this year, we discovered a failed septic system on a listing and we were able to utilize the WRP to tackle that fix and made it to the closing table at top dollar.
Markets are fast-paced and dynamic! Helping clients navigate the environment to protect their investment, strategize financing, and/or prepare their property are tasks that I take very seriously. Even if it is as simple or complicated as clearing a house for the market. Whether we are evaluating these items for an immediate move or we are planning out years in the future providing this care matters to me! Please reach out if you or someone you know are curious about how the trends relate to their situation. It is my mission to help keep my clients well informed to empower strong decisions.
Ski To Sea – SOLD OUT
For the first time since 2011, the Ski to Sea Race is sold out!
If you’ve never been part of this thrilling event, now’s the perfect year to join in. Apart from being sold out, this year there are participants Alabama, Michigan, and West Virginia joining the fray, leaving only 7 states to achieve full representation from across the nation!
This year is also record-breaking because of the lack of snowpack. Officials are keeping an eye on the conditions, but with the lack of snow, the ski/snowboard legs could be replaced by an alpine run (if no snow) on the mountain or a trail run (if too much snow) in Bellingham and a mountain bike leg on Galbraith Mountain. As conditions are monitored, a decision will be announced soon!
Nevertheless, this year’s event promises to be one of the largest in its history, drawing visitors and participants from all corners of the country to Whatcom County. Downtown Fairhaven will be a rumble of activity throughout the day, hosting a multi-street celebration featuring live music, a lively beer garden, arts and crafts vendors, and a delectable array of local cuisine. Don’t miss out on the excitement!
May Real Local Feature
MACY ADKINSON IMAGES
I’ve always been one to embrace life the best with a camera in hand. With a background in visual journalism and photography, I aim to offer a window into timeless memories, inviting others to pause, reminisce, and appreciate the beauty in the fleeting. Whether it’s documenting senior graduates, families, or the joy of new beginnings, my goal is to preserve the essence of those moments as time marches on. Photography feels the most powerful when it is shared, and I look forward to seeing how we can each play a part in that!
Phone: (509)-793-5211
Email: macyadkinson@gmail.com
Instagram: @macyadkinsonimages
Facebook: Macy Adkinson Images
ESTRELLA MOUNTAIN ESCAPE – Goodyear, AZ
Reservations & Information
3 Beds | 3 Bath | Sleeps 6
Welcome to Estrella Mountain in Goodyear, AZ. This private home gives you plenty of space with 4-bedroom & 2.5 bath. Enjoy the private resort style backyard with large salt water pool & NEW HOT TUB!
Get outside and enjoy the adventure Estrella Mountain has to offer you with Nicklaus designed Troon golf course, pickleball, basketball, beach volleyball, 33-miles of world class walking/hiking/biking trails, neighborhood playgrounds, parks, restaurants and much more.
Sleeps up to 8 comfortably.
Our house is equipped with all the essentials needed to make your stay comfortable so all you have to do is pack your bags and head to the SUN.
Galbraith Mountain Update
This spring, Galbraith Mountain unveils a host of exciting updates, making it an even more enticing destination for outdoor enthusiasts.
The unanimous approval to permit Class 1 ebikes on the mountain’s trails is a game-changer, expanding access to a wider range of riders. No need to worry that motorbikes will be taking over the mountain, Class 1 ebikes don’t have a throttle, and instead require the rider to pedal for the electric motor to kick in with a top speed around 20 mph.
The mountain is also set to open 3 new trails. These trails are generously funded by Kona Bicycle Company, Transition Bike Company, and a memorial trail supported by the family of a beloved late mountain biking enthusiast family. They promise to inject fresh excitement into Galbraith Mountain’s already vibrant trail network.
In response to longstanding safety concerns, a new crosswalk has been installed to facilitate a safer passage for riders crossing from the south parking lot to the mountain trails. This improvement not only addresses safety issues but also enhances the overall accessibility of Galbraith Mountain, ensuring a seamless and secure experience for riders.
These updates underscore a commitment to continually improving Galbraith Mountain’s amenities and accessibility, reaffirming its status as a premier destination for outdoor recreation enthusiasts.
April Real Local Feature
CHEEKS JEANS
Cheeks Jeans is one of CJAND Tracie’s favorite women’s clothing boutiques- nestled in the heart of historic downtown Lynden. They are best known for having a beautiful, hand-picked selection of designer denim along with a gorgeous variety of tops, dresses, shoes, and accessories, and more! Their goal is to provide quality clothing for every beautiful unique person, like you!
By shopping at Cheeks, you are supporting women in business and their families. They are so thankful for your support! Sneak peaks of new arrivals can be found on their Instagram, and be sure to join their loyalty program to be the first to know on sales! Stop in and see them, new arrivals fill the store daily!
420 Front St, Lynden, WA 98264
Facebook: https://www.facebook.com/CheeksJeans
Instagram: https://www.instagram.com/shopcheeksjeans
Store Hours – Mon-Tues: 10-5; Wed-Sat: 10-6
MODERN & CHIC RETREAT – Mt. Baker, WA
Reservations & Information
5 Beds | 1 Bath | Sleeps 7
Escape to the charm of Maewood, a cozy cabin retreat nestled at the base of Mt. Baker. The perfect haven to experience the beauty of the Mt. Baker Wilderness in spring and summer. Designed with intention, this intimate space exudes warmth, romance, and pristine cleanliness. Whether you’re seeking a place to reconnect with loved ones or craving a peaceful work retreat, Maewood offers the ideal ambiance. Use it as your adventure base camp, then return to relax on the spacious deck under the sunshine or soak in the hot tub while snowflakes dance around you. Inside, gather around the wood stove for a game night or simply unwind with a good book in the tranquil coziness. Embrace the allure of Maewood and book your dates for an unforgettable getaway!
NAR Settlement Update
As I am sure you have heard on the news, there is a proposed settlement agreement for the NAR (National Association of Realtors) Class Action Lawsuit. It has certainly stirred up plenty of headlines that have been glossy, and in many cases, inaccurate. Many of the reports and headlines have been national and it is important to note that WA state is unique and could have far fewer changes than the rest of the country if the settlement is approved.
The majority of the MLS’s (Multiple Listing Services) across the country are owned by NAR and our NWMLS (Northwest Multiple Listing Service) in WA, is not. NWMLS is not included in the settlement agreement as they are not NAR-owned. If the settlement is approved, they can choose to opt in, which is undecided at this point as it will require a vote of their board of directors.
In WA, new laws were enacted on January 1, 2024 that address many aspects that the settlement agreement is proposing. For years, WA brokers and NWMLS have been committed to elevating transparency around broker compensation, resulting in brokers in WA already doing business as many of the new proposals in the settlement agreement suggest. You can refer to this article that outlines the new laws that went into place on Jan 1. I am also happy to report that practicing under these new laws has been positive and productive for consumers and brokers alike.
The proposed settlement agreement still needs to be approved by the court. Once that is done, I will report back to explain how it will affect real estate operations in WA state. In the meantime, I also want to report that market activity in Q1 2024 has been positive!
Price growth is up, buyer demand is strong, and inventory remains low. Seller equity is soaring, with home equity in King County averaging 60% and 62% in Whatcom & Skagit Counties. These figures were reported in December 2023 and don’t account for the price growth we’ve seen in Q1. Interest rates are still hovering around the high 6% and are predicted to come down this year, yet remain volatile and stubborn. Please reach out if you or someone you know would like to learn more. It is always my goal to help keep my clients informed and empower strong decisions.
March Real Local Feature
KELSEY KURTIS PHOTOGRAPHY
Kelsey is a Bellingham based branding photographer, photographer mentor, brand consultant, author, energetic speaker, and unapologetic cheerleader for leaders in business! (yep, she does A LOT of things!). Kelsey specializes in helping business owners and leaders show up and tell their story with branding photography and helping them define their own Connection-Based Brand! When she’s not working you can catch her hitting up her favorite B’ham spots – walking around Lake Padden with her rescue pup, Ziggy, finding local treasures at Labels consignment, or catching the sunset at The Loft restaurant at the marina!
Contact:
hello@kelseykurtis.com
kelseykurtis.com
IG @kelseymkurtis
IG @kelseykurtisphoto
MOUNTAIN & GOLF COURSE VIEWS- Rio Verde, AZ
Reservations & Information
3 Beds | 3 Bath | Sleeps 6
Enjoy wonderful mountain and golf course views in this beautifully remodeled 3 bed/2.25 bath, 2,500 sq ft home in the community of Rio Verde, AZ. Golf cart included with rental. Option for unlimited golf for two people on the two 18-hole Rio Verde Country Club courses for an extra charge.
Rio Verde offers a complete active adult lifestyle in a friendly 55+ community. Located 10 miles east of North Scottsdale, Rio Verde is at the base of the mountains (great hiking & views), in a desert landscape (wonderful winter temperatures) and within easy reach of all that the Phoenix Valley of the Sun offers.
Housing & Economic Forecast 2024
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February Real Local Feature
HUMBLE BOUQUET
Laura is the Owner, Gardener and Floral Designer at Humble Bouquet. She creates seasonal florals for everyday deliveries, weddings and other special occasions from her studio in Bellingham, WA with all local flowers and her young children underfoot. She also teaches private and public floral workshops for small groups.
Laura Wheeler
www.humblebouquet.com
humblebouquet@gmail.com_wa
DESERT OASIS – Phoenix, AZ
Reservations & Information
4 Beds | 2 Bath | Sleeps 10
This beautifully updated, chic home is in a quiet neighborhood and boasts over 2,000 square feet of stylish living space. Enjoy the warm ambiance of the fireplace, or concoct a drink at the dry bar. In addition to this, your retreat offers ample room outdoors in a landscaped backyard with a private pool (pool heat can be added for an additional fee) along with two grills with a covered patio. You can also practice playing cornhole in the backyard or chipping around and putting the 4-hole putting green. This home is within walking distance to trails, 5 minutes to Paradise Valley, and 15 minutes to Scottsdale.