Buying • December 16, 2020

House vs. Townhouse vs. Condo

by Phillipa Leseberg

Image sources: House, Townhouse, Condo: Canva — Question marks: Shutterstock

Deciding between a house, townhouse, and condominium can be a difficult process. Knowing how their characteristics align with your life and goals as a homeowner will help guide you to the right choice.

What differentiates houses, townhouses, and condominiums?

House:

Detached houses offer the most freedom and privacy of the three housing options. They provide the opportunity to personalize your home as desired, without rules from a governing body like HOA. Houses don’t share walls like townhouses or condos, and typically offer larger outdoor spaces as well.
Situated on their own lots, owning a house leaves the responsibility of maintaining and improving the structure and accompanying land to the homeowner. Between a down payment, closing costs, and other homeowner fees, the upfront costs of owning a house can be significantly higher than a townhouse or a condominium.

Townhouse:

A townhouse is typically a narrow, multileveled structure connected to others in a row or block, typically with a small parcel of property in front of or behind the home. Somewhere between a house and condo, townhouses may be the best of both of worlds for some homeowners.
Like a house, townhouse owners are responsible for exterior (roof and siding) maintenance and repair. Most townhouses tend to have a small footprint and modern upgrades, with lower HOA fees than condos due to a lesser focus on shared amenities.

Condominium:

Condominiums are divided, individually owned units of a larger structure. Due to their smaller size and because they come with no land, condos are typically less expensive than a townhouse or a house. However, HOA fees combined with a monthly mortgage payment can increase the cost of condominium living, depending on the amenities offered in a building. Unique to condo ownership, the exterior of the units is considered a common area with ownership shared among the condo owners in the building.
As a condo owner, you are only responsible for the inside of your unit. With this decreased maintenance comes less exclusivity and privacy. Condo owners live in close proximity and typically share amenities like gym and pool access, laundry, and other facilities.

How does your home align with your life?

House:

For homeowners looking at their property as an investment in their financial future, houses are a strong choice. Houses allow homeowners to plan long-term with the knowledge that their home will build equity over time.
If you are planning on putting down roots and starting a family, houses provide the best opportunity to grow into your future and are better suited to handle significant life changes.

Townhouse:

For people looking for more space than a condo but are not quite ready to make the jump to a single-family home, townhouses are the perfect fit. They present a great steppingstone for first time home buyers or buyers who simply don’t want the responsibility of taking care of a larger, standalone home and yard.
Townhouses are often located in residential neighborhoods. They are fitting for those looking to graduate from rented dwellings in city centers or metropolitan areas yet maintain greater ownership flexibility than a single-family house.

Condominium:

Condominiums appeal strongly to homeowners looking for a low-maintenance residence, with access to shared amenities amongst a community. Condos are usually found in denser areas closer to downtown centers, shopping, and entertainment.
They are a better fit for buyers seeking metropolitan surroundings than a detached home, which is typically found in a more suburban or rural environment. Given their proximity to city/town centers and mass transit, condos present the opportunity of a shorter commute for those who work in downtown areas.

After all the research, do what feels right. Whether it’s a house, townhouse, or a condo, let’s connect to find the best option for you and your future.

Regional Market Update • December 16, 2020

Local Market Update – December 2020

by Phillipa Leseberg

Nothing about 2020 is normal, and that includes real estate trends. The housing market typically slows significantly during the holiday season, but that is not the case this year. Buyer interest is strong, sales are up, and prices have followed suit.

A recent report ranked our area as the most competitive real estate market in the country, with 71% of homes selling within two weeks. While the number of new listings in November were up compared to a year ago, there just wasn’t enough inventory to meet the current surge in demand.

In King County there were 37% fewer single-family homes on the market – 1,621 homes this November vs. 2,592 a year ago. Inventory in Snohomish County is even more strained. At the end of the month there were just 416 homes for sale as compared to 1,204 a year ago, a 65% drop. Both counties had about a two week supply of homes at the end of November. A four month supply of inventory is considered balanced. Buyers in the market for a condominium in King County had much more options. Condo inventory was up 39% over last year.

The inventory-starved market sent home prices higher. The median single-family home price in King County was up 10% over a year ago to $730,500. Home prices in Snohomish County rose 14% to $566,000. In a survey of homebuyers looking for a home during Covid-19, 82% said they would go over budget to get their ideal home. Record-low interest rates have helped soften the blow of soaring prices a bit. According to Freddie Mac, rates on a 30-year fixed-rate mortgage fell to their lowest level, at 2.71%, for the 14th time this year.

With low inventory and high demand, buyers need to be ready to compete. That means being pre-approved or willing to offer cash, and working with an agent on a plan that includes counter-offers, escalation clauses and other strategies to help win the sale. As many consider working remotely long-term, our home has become more important to us than ever.

The charts below provide a brief overview of market activity. If you are interested in more information, every Monday Windermere Chief Economist Matthew Gardner provides an update regarding the impact of COVID-19 on the US economy and housing market.

VIEW FULL EASTSIDE REPORT

Market News • Market Report • December 10, 2020

Matthew Gardner’s 2021 Housing Forecast

by Phillipa Leseberg

Throughout 2020, mortgage rates hit historic lows, largely due to the impact COVID-19 had on the housing market. These low rates drove already high demand for housing even higher, and Gardner does not predict mortgage rates will rise significantly in 2021.

His current forecast sees mortgage rates dropping to their lowest rate in the current quarter at 2.83%, and rising to about 3.08% by the fourth quarter of 2021.

As far as home sales for 2021, Gardner is predicting a large increase in home sales (he covers new construction separately). His forecast puts home sales up by 6.9%, a level that hasn’t been seen since 2006.

In conjunction with this, Gardner predicts a rise in housing inventory, as people who can work remotely move farther away from their offices, or those whose homes aren’t conducive to remote work seek out a better living arrangement.

But Gardner also pragmatically points out that a “mass exodus” completely away from urban centers is unlikely, as many workers may find themselves with a flexible blended arrangement of remote work and a few days in the office per week.

In terms of home prices, Gardner predicts they will continue to rise, but slowly. His 2021 prediction caps out at a 4.1% increase, partially because prices have already risen so dramatically this year that it may become an issue of affordability.

With the rising demand for housing inventory, Gardner predicts that new construction starts for single-family homes will rise by a sizeable 16.4%. This is great news for builders, and also for buyers, as increased inventory may help to alleviate the incredible demand the market has been experiencing.

Along with increased starts, Gardner is anticipating an increase of 18.7% in new home sales for 2021—again reaching a level the market hasn’t seen since 2006.

Finally, Gardner touched on the number of homes in forbearance. As of the end of November 2020, 2.76 million homeowners are in forbearance—but that number is down almost 2 million since May 2020, a drop of 42%.

Gardner does predict that foreclosures will rise in 2021, but he cautions that brokers shouldn’t panic. Though there is temptation to compare this situation with the housing bubble collapse of 2008, Gardner predicts that the actual number of foreclosures will be very mild in comparison.

When the pandemic began in March, the housing market overall was in a much healthier place than it was prior to 2008. Additionally, lenders now are more likely to cooperate with homeowners to help them stay in their homes, and homeowners also have the option to sell and get the equity out of their homes if necessary.

While no one can predict the future with complete accuracy, Gardner’s predictions give us a road map to work from as we approach the new year.

Read the full article on Windermere.com.

Selling • December 9, 2020

How to Price Your Home for Sale

by Phillipa Leseberg

It’s natural for sellers to want to get every step of the selling process right, but a successful home sale depends on an accurate listing price. I will work closely with you to set the price, but in the meantime, you can use the following information to better understand what goes into this process.

What factors influence home prices?

Understanding what factors influence home prices will give you a deeper knowledge of the market, give clarity to the selling process, and help you work toward the accurate listing price of your home.

Comparable home sales

Comparable home sales—or “comps”—have a major impact on the price of your home. Comps refer to the comparable homes in your area, both pending and sold, within the last six months. Your Windermere agent can provide you with a Comparative Market Analysis (CMA) to better determine the price of your home. CMAs factor in aspects, such as square footage, age, and lot size compared to other homes in your area, to determine how your home should be priced among the competition.

Your home’s location

Naturally, you home’s location plays a significant role in its asking price. Depending on the market conditions in your area, whether you reside in a metropolitan, suburban, or rural location, and the home’s proximity to amenities, schools, and entertainment all contribute to the price.

The home’s condition

If you have recently invested in upgrades or other maintenance projects for your home, they could increase your asking price. However, the price increase potential depends on the kind of renovation, its ROI, and how valuable it is to buyers in your area. If the home is in need of repair, it will likely fetch less interest than better maintained homes at your price point. Any outstanding repairs or projects looming overhead will make the home less attractive to buyers and could lead to a low appraisal.

Seasonality

Any factors that impact market supply and demand are worth taking into consideration when preparing to price your home, and seasonality is one that cannot be overlooked. Typically, market activity slows in the winter and picks up during the spring and summer months. However, market seasonality varies region to region. Talk to your Windermere agent about the seasonality trends in your area and how they factor into your asking price.

Market conditions

Naturally, all sellers want to price their home competitively, but what a competitive price looks like depends on the market conditions, such as whether it’s a buyer’s or seller’s market. Some sellers think that pricing their home over market value means they’ll sell for more money, but the opposite is often true. Overpricing your home presents various dangers, such as sitting on the market too long, which can result in selling for well below what it’s worth.

What’s your home worth?

Nothing can replace the professional knowledge and local expertise of a real estate agent, but automated valuation models (AVMs) can be a helpful first step in determining what your home is worth. Like comps, AVMs assess your home by comparing its information with the listings in your area.

If you’re curious about your home’s value, Windermere offers a tool that provides a series of evaluations on your property and the surrounding market. You can find it here.

These are the basic tenets for understanding what goes into the price of a home. When you’re ready, let’s connect. I can interpret and expand on this information, perform a CMA for your home, and be the expert in your selling journey.

Monday's With Matthew • Videos • December 7, 2020

Matthew Gardner Weekly COVID-19 Housing & Economic Update

by Phillipa Leseberg

Every Monday Windermere Chief Economist Matthew Gardner provides an update regarding the impact of COVID-19 on the US economy and housing market.

Update #1 – 3/23/2020

Update #2 – 3/30/2020

This week he discusses what it really means for the economy and housing to be in a COVID-19 induced recession (hint: it’s not all bad news).

Update #3 – 4/6/2020

In the latest episode of “Mondays with Matthew”, Windermere Chief Economist Matthew Gardner dives into part one of his two-part series analyzing the mortgage market. Today’s focus is on the substantial impact COVID-19 has had on jumbo mortgages. Check back next week when he’ll discuss conventional mortgages and provide his latest interest rate forecast.

Update #4 – 4/13/2020

This week on “Mondays with Matthew” Windermere Chief Economist Matthew Gardner discusses the impact of COVID-19 on 30-year-mortgages and gives an updated 2020 interest rate forecast.

Update #5 – 4/13/2020 Mondays with Matthew: Conforming Loans + Interest Rates

In this week’s episode of “Mondays with Matthew” Matthew Gardner tackles part two of his series analyzing the mortgage market. Today he turns his focus to the conforming mortgage market and the recent volatility of interest rates. He also provides an updated 2020 interest rate forecast.

Update #6 – 4/20/2020 Mondays with Matthew: New Construction Market

This week on “Mondays with Matthew” Windermere Chief Economist Matthew Gardner analyzes the past two decades of the new home construction market and then discusses his predictions for this segment of the market going forward.

Update #7 – 4/27/2020 Mondays with Matthew: Are we heading towards another housing bubble?

This week on “Mondays with Matthew”, Matthew Gardner addresses the growing concern that the housing market is heading towards a repeat of the 2008 meltdown. He uses data to illustrate how we are in a very different place than when the housing bubble burst.

Update #8 – 5/4/2020 Mondays with Matthew: Let’s Discuss Mortgage Forbearance

On this week’s episode of “Mondays with Matthew” Matthew Gardner discusses mortgage forbearance and whether it will help or hurt the US housing market.

Update #9 – 5/11/2020 Mondays with Matthew: My 2020 Job Market Forecast

Job growth is critical to the health of the housing market, so on this week’s episode of “Mondays with Matthew”, Matthew Gardner analyzes the effect of COVID-19 on employment and what we can expect for the duration of the year.

Update #10 – 5/18/2020 Mondays with Matthew: Will COVID-19 Impact Where Buyers Want to Live?

In this week’s episode of Mondays with Matthew, Windermere Chief Economist Matthew Gardner kicks off a series of episodes in which he answers questions from his followers. The first deals with how COVID-19 will impact buyer behaviors, especially in more urban markets.

Update #11 – 6/1/2020 Mondays with Matthew: What’s Happening with Mortgage Rates

Now that things have settled down somewhat following the initial impact of COVID-19, Matthew dives into the topic of mortgage rates. Will they go below 3%? Matthew discusses this and the factors that have formed his updated 2020 and 2021 mortgage rate forecast.

Update #12 – 6/8/2020 – Mondays with Matthew: What’s Happening To Home Prices?

In this week’s episode of “Mondays with Matthew”, Matthew Gardner analyzes post-COVID 19 home prices and offers his prediction for whether or not they will end the year in the positive or negative.

Update #13 – 6/15/2020 – Mondays with Matthew: Mortgage Forbearance Update

On this week’s episode of “Mondays with Matthew”, Matthew Gardner provides an update on the mortgage forbearance program and what type of effect we can expect it to have on the US housing market.

Update #14 – 6/22/2020 – Mondays with Matthew: What’s Happening To Home Prices?

Update #15 – 6/29/2020 – Mondays with Matthew: Housing Affordability?

On this week’s episode of “Mondays with Matthew”, Matthew Gardner discusses housing affordability and how he believes that despite the impact of COVID-19, affordability issues will remain and may actually get worse as we move forward.

Update #16 – 7/06/2020 – Mondays with Matthew: Why Aren’t More Millennials Buying

On this week’s episode of “Mondays with Matthew”, Matthew Gardner discusses what is needed to motivate more Millennials to buy and the important role they play in the long-term health of the US housing market.

Update #17 – 7/13/2020 – Mondays with Matthew: How Housing Has Fared Amid COVID-19

On this week’s episode of “Mondays with Matthew”, Matthew Gardner analyzes several aspects of the housing market to see how it has fared over the past 16 weeks amid COVID-19.

Update #18 – 7/20/2020 – Mondays with Matthew: How Do Consumers Feel About Buying & Selling Right Now?

On this week’s episode of “Mondays with Matthew”, Matthew Gardner dives into the most recent National Housing Survey results which tell us a lot about consumer confidence both pre- and post-COVID and whether or not they feel this is a good time to buy or sell a home. The results might surprise you.

Update #19 – 7/27/2020 – Mondays with Matthew: Updated 2020 Housing Forecast

On this week’s episode of “Mondays with Matthew”, Matthew Gardner provides his updated 2020 housing forecast and analyzes the National Association of REALTORS’ June Home Sales Report.

Update #20 – 8/3/2020 – Mondays with Matthew: Case Shiller Home Price Index

On this week’s episode of “Mondays with Matthew”, Matthew Gardner analyzes the latest Case Shiller Home Price Index numbers and explains some of the lesser known (yet, still important) aspects of the report.

Update #21 – 8/10/2020 – Mondays with Matthew: Homeownership Trends Throughout the Decades

This week on “Mondays with Matthew”, Matthew Gardner analyzes homeownership trends over the decades, breaking it down by age, race, household income, and median home price.

Update #22 – 8/24/2020 – Mondays with Matthew: Understanding the U.S. Household Debt & Credit Report

On this week’s episode of “Mondays with Matthew”, Matthew Gardner shares some reflections from his vacation and explains why the relatively unknown U.S. Household Debt & Credit Report is one we should all be paying more attention to.

Update #23 – 8/31/2020 – Mondays with Matthew: Going Beyond the Headlines

On this week’s episode of “Mondays with Matthew”, Matthew Gardner looks at last week’s real estate and economic news and goes beyond the headlines so that you can not only stay on top of the issues that affect you and your business, but also get more detail than is generally offered by the media.

Update #24 – 9/14/2020 – Mondays with Matthew: Mortgage Forbearance Update

On this week’s episode of “Mondays with Matthew”, Matthew Gardner revisits mortgage forbearance, bringing you the latest in light of some recent headlines.

Update #25 – 9/21/2020 – Mondays with Matthew: An Analysis of the Latest Economic Data

On this week’s episode of “Mondays with Matthew”, Matthew Gardner analyzes the most recent economic and real estate data, including retail sales, consumer sentiment, and the housing market index which is published by the National Association of Home Builders.

Update #26 – 9/29/2020 – Mondays with Matthew: Housing Continues to Lead Economy Amid COVID-19

On this week’s “Mondays with Matthew,” Matthew Gardner analyzes data released last week about existing home sales, new home sales, and mortgages, demonstrating the housing market’s resilience in an economy mired by COVID-19.

Update #27 – 10/05/2020 – Mondays with Matthew: Housing Continues to Lead Economy Amid COVID-19

This week on “Mondays with Matthew” with Windermere Chief Economist Matthew Gardner, he covers last week’s top economic headlines. Watch here for updates on the latest Case-Shiller and Consumer Confidence indexes.

Update #28 – 10/12/2020 – Mondays with Matthew: Forecasting Mortgage Rates & More

On this week’s episode of “Mondays with Matthew,” Windermere Chief Economist, Matthew Gardner, takes another look at mortgage rates and forecasts what we can expect in the coming months for rates, affordability, and inventory.

Update #29 – 10/26/2020 – Mondays with Matthew: What You Need To Know About The Latest Housing Data

In today’s episode of “Monday with Matthew,” Matthew Gardner dives into three of the latest housing market data releases and gives context to their historical significance.

Update #30 – 11/09/2020 – Mondays with Matthew: Analyzing the US Job Market Report

On the latest episode of “Monday with Matthew,” Matthew Gardner analyzes the surprisingly strong U.S. Job Market Report from October. This video was recorded on Friday, November 6.

Update #31 – 11/23/2020 – Mondays with Matthew: The Latest US Homes Sales Data

On this episode of “Monday with Matthew”, Matthew Gardner takes a deep dive into the latest US home sales data and what it means.

Update #32 – 12/7/2020 – Mondays with Matthew: My 2021 US Housing Forecast

In our final episode of “Monday with Matthew” for 2020, Matthew Gardner looks to the year ahead in his 2021 U.S. Housing Forecast, including his predictions for mortgage rates, sales, forbearance, and more.

Living • November 19, 2020

Simple Kitchen Makeover Ideas

by Phillipa Leseberg

Kitchen makeovers sit atop many homeowners’ wish lists, but they can be stressful and costly. However, there are simple projects you can tackle that will give your kitchen the look and feel of a total overhaul without breaking the bank.

Simple projects

Backsplash: Giving your backsplash a makeover can do wonders for your kitchen. Get creative with colors or patterns that accentuate your home. Subway tiles are a common choice for a clean look. For homeowners looking to make more of a statement, mirrored and metallic finishes have become more popular in recent years. If your kitchen is in need of color, look to your backsplash project as an opportunity to brighten it up.
Lighting: Lighting is the gateway to changing the mood of your kitchen in an instant. Experiment with new light switch covers that emphasize your kitchen’s color palette. If you’re looking for a new centerpiece, linear pendant lights will deliver that coveted farmhouse feel. For a more regal look, explore chandeliers for a classy feel.
Freshen up your colors: Adding color is an affordable way to liven up your kitchen. Look for vibrant cookware and dinnerware and use open shelving to give some color splashes at eye level. Because of their large surface area, kitchen islands are a great place for color. Try painting around the exterior or the countertop to turn it into an eye-popping feature.

Organization

Drawers and cabinets: Look for simple solutions that will work in your newly made-over kitchen. Drawer dividers can do wonders for creating space and staying organized. The insides of cabinet doors make a great home for spice racks. Set aside time to dig through your drawers and cabinets. Sort out what you need to get rid of and what will stay as you declutter.
Overhead storage: A common space-saving tactic in restaurant kitchens is to hang pots and pans. This keeps heavy hardware organized, frees up cabinet space, and brings a touch of décor to your kitchen. Explore the different styles to fit the look of your kitchen including stainless steel, wood, copper, and more.

Things to keep in mind

If you’re looking to incorporate some bigger projects into your kitchen makeover, be sure to keep the following tips in mind to stay on budget and on schedule.

Buying cheap can be costly: When it comes to appliances, flooring, cabinets and other fixtures of your kitchen, it may be tempting to say yes to cheaper options. However, cheap materials and appliances can break easily and often require extra maintenance, which can lead to greater costs in the long run. If something is slightly more expensive but still fits in your budget, know that the higher quality will likely pay off.
Choose your appliances early: It’s easy to direct your attention to cabinets and countertops in the beginning stages of your remodel. However, the last thing you want to have happen is to pick those out first, only to discover that they don’t leave enough room for your dishwasher or refrigerator. Be sure to select your major appliances first, then build around them.
Consult professionals when applicable: For homeowners who are passionate about their home, it can be easy to get a little obsessive when it comes to remodeling. If you are unsure about how to proceed at any point in the process, consult a professional to guide you in the right direction. It may be helpful to seek the opinion of multiple experts and compare their answers to find the best solution.

These ideas offer simple ways to freshen up the heart and soul of your home. Whether your household is big or small, choose your projects, set a budget, and have fun improving your kitchen.

SOURCE: Windermere Blog

Regional Market Update • November 11, 2020

Local Market Update – November 2020

by Phillipa Leseberg

The number of people who can work remotely may be changing the way we view our homes, but one trend has not changed. The local housing market in October remained unseasonably hot. And that doesn’t show signs of changing any time soon.

October saw continued low inventory and record-level sales, with the number of sales exceeding that of 2019 year-to-date.

While new listings are on the rise, they are being snapped up quickly and many homes are selling in a matter of days. In King County there were 38% fewer single-family homes on the market as compared to a year ago. Snohomish County had 59% fewer listings. A four-month supply of homes for sale is considered a balanced market, but King and Snohomish counties currently have less than one month of supply.

With supply unable to keep up with demand, home prices are escalating at double-digit rates. The median single-family home price in King County rose 14% over a year ago to $745,000. Prices in Snohomish County jumped 17% year-over-year to a record high of $579,972. About half the homes that closed in October sold for over the asking price as compared to about a quarter of the homes the same time last year.

The real estate market here is uncommonly resilient. Growing employment in major tech industries and an enviable quality of life have made our region one of the fastest growing areas in the country. With interest rates remaining at record lows, we may well skip the traditional slowing in the winter market altogether.

VIEW FULL EASTSIDE REPORT

Buying • November 11, 2020

A Guide to VA Loans

by Phillipa Leseberg

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Image source: Shutterstock

VA loans provide a path toward homeownership for active service and veteran personnel and their families. The following serves as a guide to understanding what they are, who they are available to, and what types of loans are available to them.

VA loans can be confusing, so talk with your Windermere agent as you prepare to discuss your options with your lender. “Even people in the military have misconceptions about (VA loans),” said Windermere agent and Veteran Gervon Simon in a recent episode of our “Ask An Agent” series.

What are VA Loans?

The VA loan program was established by the United States Department of Veterans Affairs (VA) to help active service members, veterans, and surviving spouses become homeowners. VA loans are backed by the federal government yet provided by private lenders such as banks and mortgage companies. VA loans can be used to buy, build, or improve a home, or to refinance a current home loan.

How do VA Loans work?

VA loans have appealing characteristics for homeowners including lower-than-average mortgage rates, zero down payment on the purchase price, no-prepayment penalties, limited closing costs, and no Private Mortgage Insurance (PMI). They are typically easier to qualify for than standard home loans. With VA-backed loans, they guarantee a portion of the loan from a private lender. This means less risk for the lender, often resulting in more favorable terms for the homeowner. You do not have to be a first-time homebuyer to receive a VA loan. VA loan limits vary by county, so be sure to work with your Windermere agent to determine the limit in your area.

Which loans are available?

Purchase Loan

VA-backed purchase loans may be used to buy a single-family home, condo, manufactured home, or land. They also may be used to make energy-efficient changes to your home. Additionally, you can use a purchase loan to build a new home.
They offer no down payment, as long as the home’s sales price does not exceed its appraised value.
There is no need for PMI or mortgage insurance premiums (MIP).

Native American Direct Loan (NADL)

For Veterans who are either Native American or have a Native American spouse, the NADL can help to buy, build, or improve a home on federal trust land.
Beyond basic requirements of eligibility and credit standards, to be considered for the loan your tribal government must have an agreement—or Memorandum of Understanding (MOU)—with the VA. For more information on MOUs, visit this page: MOU Info

Interest Rate Reduction Refinance Loan (IRRRL)

The IRRRL is a refinancing tool for those with VA-backed home loans that are looking to reduce their monthly mortgage payments.
The IRRRL replaces a current loan, giving homeowners the ability to stabilize their repayment plans.
A VA funding fee may be required. Loan interest and closing fees will be charged by your lender but including these costs in your IRRRL will help you avoid paying the costs upfront.

Cash-out refinance loan:

The cash-out refinance loan allows homeowners to take cash out of their home equity or refinance a non-VA loan into a VA-backed loan.
In addition to your Certificate of Eligibility (COE), you’ll need to provide additional federal income tax information to your lender.
A home appraisal will be ordered by your lender. Similar to an IRRRL, a VA funding fee may be charged at closing. Follow their closing process and pay all closing costs.

For more information on the different types of VA Loans, eligibility, and more, visit the Veterans Affairs website here: VA Loans

Regional Market Update • October 27, 2020

Q3 Western Washington Real Estate Market Update

by Phillipa Leseberg

The following analysis of the Western Washington real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please reach out anytime, I am happy to help!

REGIONAL ECONOMIC OVERVIEW

Employment numbers in Western Washington continue to improve following the massive decline caused by COVID-19. For perspective, the area shed more than 373,000 jobs between February and April. However, the recovery has been fairly robust: almost 210,000 of those jobs have returned. Unemployment levels remain elevated; the current rate is 8.2%. That said, it is down from 16.6% in April. The rate, of course, varies across Western Washington counties, with a current low of 7.2% in King County and a high of 11.2% in Grays Harbor County. The economy is healing, but the pace of improvement has slowed somewhat, which is to be expected. That said, I anticipate that jobs will continue to return as long as we do not see another spike in new infections.

HOME SALES

Sales continued to improve following the COVID-19-related drop in the first quarter of the year. There were 25,477 transactions in the quarter, an increase of 11.6% from the same period in 2019, and 45.9% higher than in the second quarter of this year.
Listing activity remains woefully inadequate, with total available inventory 41.7% lower than a year ago, but 1.6% higher than in the second quarter of this year.
Sales rose in all but two counties, though the declines were minimal. The greatest increase in sales was in San Juan County, which leads one to wonder if buyers are actively looking in more isolated markets given ongoing COVID-19-related concerns.
Pending sales—a good gauge of future closings—rose 29% compared to the second quarter of the year, suggesting that fourth quarter closings will be positive.

HOME PRICES

Home-price growth in Western Washington rose a remarkable 17.1% compared to a year ago. The average sale price was $611,793.
When compared to the same period a year ago, price growth was strongest in Mason, Island, and San Juan counties. Only one county saw prices rise by less than ten percent.
It was even more impressive to see the region’s home prices up by a very significant 9.4% compared to the second quarter of 2020. It is clear that low mortgage rates, combined with limited inventory, are pushing prices up.
As long as mortgage rates stay low, and there isn’t an excessive spike in supply (which is highly unlikely), prices will continue to rise at above-average rates. That said, if this continues for too long, we will start to face affordability issues in many markets.

DAYS ON MARKET

The average number of days it took to sell a home in the third quarter of this year dropped two days compared to a year ago.
Snohomish County was the tightest market in Western Washington, with homes taking an average of only 16 days to sell. All but two counties—Lewis and San Juan—saw the length of time it took to sell a home rise compared to the same period a year ago.
Across the region, it took an average of 36 days to sell a home in the quarter. It is also worth noting that it took an average of 4 fewer days to sell a home than in the second quarter of this year.
The takeaway here is that significant increases in demand, in concert with remarkably low levels of inventory, continue to drive market time lower.

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

High demand, favorable interest rates, and low supply clearly point to a seller’s market in Western Washington. As such, I am moving the needle even more in favor of sellers.

As I suggested earlier in this report, although the market is remarkably buoyant, I am starting to see affordability issues increase in many areas—not just in the central Puget Sound region—and this is concerning. Perhaps the winter will act to cool the market, but something is telling me we shouldn’t count on it.

ABOUT MATTHEW GARDNER

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

Living • October 22, 2020

Modern Design Trends

by Phillipa Leseberg

Image source: Shutterstock

Modern design can tie your home together while making a statement. Getting to know the modern farmhouse, mid-century modern, and industrial design trends will help to determine which is best for your home.

Modern Farmhouse

Bringing country living to wherever you call home, modern farmhouse is a style marked by sleek lines, vintage touches, and natural textures that still delivers a comfortable feel. Widespread use of the term “modern farmhouse” did not pick up steam until the mid-2010s, only gaining in popularity since.

In your home:

Color: A defining characteristic of the modern farmhouse is a whitewashed palette, which offers a satisfying contrast to the use of natural wood. Cream is also a popular choice. Floral accents are typically used to add depth to the whitewashed backdrop.
Features: Exposed beams, antique items, and rustic décor form the makeup of a modern farmhouse-inspired dwelling. Barn lighting and gooseneck lamps are the most fitting lighting choices. Round out your modern farmhouse look with shiplap wherever you see fit, board-and-batten siding, and Shaker cabinets for your kitchen.

Mid-Century Modern

A movement begun in—you guessed it—the middle of the twentieth century, mid-century modern (MCM) took shape in a post-war America that saw a migration to urban areas, thus influencing design of the era to be more mindful of smaller living spaces.

In your home:

Philosophy: Mid-century modern is as much an artistic movement as a design trend. MCM designs are simple in form, emphasizing function and organic influences, and are meant for everyone to use. Consider these characteristics when planning your décor.
Color: The color palette most commonly associate with MCM is earthy tones. If you’re looking to add more pop but want to stay true to the earthy palette, experiment with pastels.
Furniture: Typical MCM design features in furniture include juxtaposing larger pieces with skinny legs, peg legs, the use of lighter-colored woods such as teak, and fun geometric shapes. Beloved favorites include credenzas, dressers, and egg chairs.

Industrial

Inspired by warehouses, factories and unexpected materials such as shipping containers, Industrial design brings home the raw, hardwearing aesthetic typically associated with spaces like reclaimed yards, hangars, and ports. Customization is popular in Industrial design, and like mid-century modern, simplicity is emphasized.

In your home:

Color: The Industrial color palette is predominantly neutral. Texture is a more defining feature than color, which gives you flexibility when it comes to decorating. With neutral colors, it is easier to keep your home’s color palette aligned and complimentary.
Materials: How do you make your home feel like a warehouse? Materials go a long way in accomplishing this. Industrial go-to materials for furniture and beyond include wood, aluminum, copper, steel, stone, and tin. Avoid soft materials like plush that would take away from the hardworking feel inherent in Industrial.
A touch of nature: Due to its emphasis on recycled and reused materials, plant life and nature-centric accents are fitting compliments to Industrial design. Indoor plants, cactus, and flowers are popular items for sprucing up an Industrial space while adding an appropriately placed touch of color.

Although these trends vary in style and application, they all share a statement-making capability. When incorporating them into your home, know that any of these features will definitively shape the look and feel of your home.