Living • January 9, 2023

7 Tips for Sustainable Living at Home

by Phillipa Leseberg

A family returns home after going grocery shopping with reusable bags. The son and daughter play with fresh oranges purchased from a natural market. There are houseplants on the kitchen island and appliances and utensils on the counters.

There’s always room for improvement in a household’s quest to go green. From how you use your appliances to the way you consume and dispose of food, every lifestyle choice you make at home presents an opportunity to be more eco-friendly. Adopting more sustainable practices has obvious environmental benefits and helps to improve quality of life, but it can also increase your home value and in some cases may generate extra cash.

7 Tips for Sustainable Living at Home

1. Create a Sustainable Kitchen

The kitchen is responsible for a decent portion of your home’s energy output. Choosing energy-efficient appliances can help to improve your household’s sustainability by using less energy. Reusable materials go a long way in the kitchen as well. Even seemingly small changes like switching from single use to reusable grocery bags and eliminating paper towels can make an impact. Using natural cleaning products will keep your kitchen cleaner longer while improving your home’s air quality, and being mindful about water usage can save on utility bills.

5 Ways to Create a Sustainable Kitchen

2. Plant an Herb Garden

To further improve your home’s sustainability, consider planting an herb garden. This helps to cut down on repeatedly buying spices and seasonings at the grocery store while cultivating a natural ambience in your home. (And they’re fun to cook with, too!) Do indoor plants need sunlight? Of course, so be sure to position your indoor garden in an area where your plants have direct access. Once you’ve picked out a spot, decide which herbs you’d like to grow. Some of the most common herbs are easy to grow and will pair well with whatever’s on the menu—basil, thyme, cilantro, parsley, oregano, etc.

How to Plant an Herb Garden

3. Tips for a More Energy Efficient Home

The first step in becoming more energy efficient at home is understanding your energy output. Once you understand your household’s habits, you can identify which cutbacks will help you chart a more sustainable path forward. Energy-efficient lightbulbs can help you save on utility bills. Because they use less energy that standard lightbulbs, they typically last longer as well. Make sure your home is properly insulated and your windows’ caulking and weatherstripping is in good condition. Air leaks and poor insulation waste energy and will cause spikes in your utility bills.

8 Tips for a More Energy Efficient Home

A woman practices sustainable habits by washing a plate in her kitchen sink. The sponge is full of soap and the water is off while she scrubs the plate.

Image Source: Getty Images – Image Credit: Nattakorn Maneerat

4. Reduce Waste at Home

Every household produces some sort of waste, but it’s how that waste is treated that makes all the difference for the environment. Clean your recycling to make it easier to process and do your best to only buy what you plan to eat. Start a compost bin for extra food scraps or consider other agricultural solutions for disposing of it. Consider buying items like shampoo, conditioner, moisturizers, and the like in bulk to cut down on packaging waste. Reusable glass containers or jars will help you portion out meals and provide a useful way to store bulk items like rice and beans.

A Guide to Going Low-to-Zero Waste

5. Use Solar Energy

Yes, making the switch to solar energy comes with significant upfront costs. But an investment in solar is not just an investment in the health of the planet, it can increase your home value as well. The energy savings you’ll generate in the long-term will depend on your household’s level of consumption and the power generated by your solar panels. And if you’re generating more power than you’re consuming, you may be able to sell the surplus energy back to the grid. For more information on solar-based incentives and tax breaks by state, visit DSIRE (Database of State Incentives for Renewables & Efficiency®).

Your Guide to Going Solar

A worker installs a solar panel on the rooftop of a sustainable home as the sun sets behind him.

Image Source: Getty Images – Image Credit: ArtistGNDphotography

6. Sustainable Gardening Best Practices

Even for the green thumbs, there’s opportunity to go greener at home. A garden is only as healthy as its soil. Mulching is vital to soil health and helps to reduce weed growth. Animal manure also has the power to enrich garden soil, both as a fertilizer and conditioner. Organic weed killers made with natural ingredients will maintain your garden’s health while keeping unwanted weeds at bay. Apply this same organic mindset to dealing with slugs as well. Certain types of slug bait may possess certain chemicals that do more harm than good, especially if you have farm animals on your property like chickens or goats.

10 Tips for Sustainable Gardening

7. Sustainable Laundry Room Tips

Before you begin your next cycle in the laundry room, consider some methods of reducing energy. Because the heating of water is responsible for a majority of the energy generated by doing laundry, using cold water can help you save on energy costs. Cold water is also gentler on clothing. Clean the dryer vent and filter regularly to keep it unclogged and running efficiently. Consider hang-drying when possible, and in warmer months, air dry your clothes to save a dryer cycle.

Saving in the Laundry Room

For more information on sustainable living, helpful advice on home upgrades, plus tips on DIY home projects and more, visit the Living section of the Windermere blog.

Design • December 27, 2022

What is Gothic Revival Architecture?

by Phillipa Leseberg

The front façade of a white Gothic Revival home in South Carolina with surrounding trees and plants. The home shows examples of Gothic Revival features, like a steeply pitched roof, arched pillars on the front porch, and church-style windows.

If you’ve ever seen a home like the one in the photo above, certain words like “romantic” or “medieval” may have come to mind. The architectural style shown here is Gothic Revival, a unique branch of design that grew popular in the mid-19^th century. Though it fell out of fashion shortly thereafter, this signature architectural style has left a lasting impression on home design.

What is Gothic Revival Architecture?

The most defining characteristics of Gothic Revival architecture are its pointed arches, steeply pitched roofs, intricate wooden trim, and its preference for vertical elements. As opposed to the horizontal nature of the rambler home style, Gothic Revival architecture reaches skyward. Gothic Revival also borrows elements of castles, such as towers with parapets and/or spires.

The architectural style eventually took on other variants. Victorian Gothic borrowed from elements of the Victorian era, and the North American adaptation Carpenter Gothic used a Gothic influence as the basis for a new style of home design popularized in the late 19^th century.

A light blue Gothic Revival home with brick trim on top of a hill on a sunny day. Corners of the home have exposed white-washed brick while the walls are light blue stucco. The windows have ornate white trim and has a double front door. The home has three sections, with the middle column the tallest, the right side is slightly protruding out and the left is tucked back behind the center tower, each has a roof with inverted gothic arches.

Image Source: Getty Images – Image Credit: glasslanguage

A low angle shot of a three-story brick Gothic Revival home on a corner lot with a colorful garden. The corner of the house has a round tower with a pointed roof, calling back to rounded tower castles, with a rounded wrap-around porch underneath.

Image Source: Getty Images – Image Credit: fotoVoyager

Although Gothic Revival most naturally translated to larger buildings such as churches, mansions, prisons, and schools, the Gothic Carpenter style maintained many of the key characteristics that define the unique style with slight twists to accommodate for residential home life.

Beyond the vertical visuals, steep roofs, and arched doorways, residential gothic architecture also incorporated elements like board and batten wood siding, roof gables, ornate crown molding, and slim porch columns. Gothic-style homes are easily identifiable and much rarer than ubiquitous home styles such as craftsman, cottage, and mid-century modern.

Buying • Selling • December 13, 2022

Real Estate Terminology: Contingent, Pending, Under Contract, and More

by Phillipa Leseberg

In their living room, a man and woman discuss with their real estate agent the terms of a home purchase agreement for a property under contract.

Different real estate transactions have different conditions based on the status of the listing. The following information is meant to clarify some common real estate terms that describe a home for sale and its position in the closing process.

For sellers, understanding this terminology will inform your conversations with your agent when it comes time to sell. And for buyers, it helps to be familiar with these terms when searching for your next home and how they factor into making an offer.

What is the difference between pending and under contract?

Pending: When a home is listed as “pending” it means the seller has accepted the buyer’s offer and the sale will most likely be finalized after a successful final inspection and the buyer securing financing. For sellers, reaching the pending stage means the finish line is within reach, but your home is still not officially off the market.

Buyers who notice homes listed as pending should know that an agreement between the seller and another buyer has already been reached and that they are headed for closing. However, even though the chances are unlikely, it is still possible that the buyer backs out and the deal falls through.

Under Contract: A home that’s listed as “under contract” is not as far along in the selling process as a home that’s pending. It means the seller has accepted a buyer’s offer, but there are certain contingencies that must be met before the deal goes final.

Buyers who see a home listed as “under contract” may still reach out to the seller’s listing agent to make a backup offer, unless the contract that’s already in place contains a clause preventing it.

In a modern office, a man and woman shake hands with their real estate agent as they go over the terms of a real estate contract.

Image Source: Getty Images – Image Credit: xavierarnau

What does contingent mean in real estate?

Selling – Common Real Estate Contingencies
Buying – Making a Contingent Offer: Common Real Estate Contingencies

Contingencies dictate what must happen in a real estate transaction for the contract to become legally binding, giving the buyer or seller the right to back out of the contract if their conditions aren’t met. A property listed as “contingent” means that the seller has accepted an offer, but the deal still hinges on the buyer satisfying certain contingencies to continue. And once those contingencies have been met, the sale can go through as planned.

There are a variety of contingencies that protect buyers and sellers against the bumps in the road along their journey of buying or selling a home. A home sale contingency, for example, allows a buyer to tie their offer on a new home to the successful sale of their existing one. This contingency is beneficial to those who are buying and selling a home at the same time. It’s important for buyers to work with their agent to determine the strongest offer considering the market conditions in the area.

What is closing in real estate?

Closing refers to the homestretch of a real estate agreement between a buyer and seller, leading to the transfer of ownership. Both parties agree on a closing date and see the deal through to its completion. During closing, the buyer will deposit their earnest money in an escrow account, a home inspection is performed, the buyer secures financing to purchase the home, and both parties pay their respective closing costs.

Design • November 28, 2022

Designing Your Rental To Feel Like Home

by Phillipa Leseberg

A man and a woman stand at the living room window of their rental looking out over the neighborhood

When you own your living space, it’s natural to feel attached to every square inch. But for renters, creating that sense of ownership is a unique challenge. Whatever limitations you face as a renter in how you’re able to make alterations, it’s no less important to your home life for your space to convey a sense of ownership and self. To make a rental unit feel a bit more like home, we collected a few ways to imbue your abode with your own spirit, without risking your security deposit.

Designing Your Rental to Feel Like Home

Storage

Sufficient storage space is a common shortcoming of rentals, leaving renters in a position where they either need to invest in a public storage space or get creative at home. But even getting creative at home can be tough, since most rental properties have limitations on what renovations and customizations renters are able to make, especially if the property is governed by a Homeowners Association (HOA).

So, what’s a renter to do? Add some simple, no-to-low damage shelves to make room for décor accents, accessories, and house plants that reinforce your design choices.

Shop around for freestanding bookshelves, baskets, or use under-the-bed storage bins to free up additional space and declutter the areas of your home where items are stacking up. Search for furniture that doubles as storage, like an open-top ottoman or a side table with a drawer or shelf.

Blinds and Curtains

How you decorate your windows can greatly personalize your rental. Consider swapping out your blinds for curtains to add a splash of color and a more regal aesthetic to your living space. But don’t be too quick to throw away your blinds—you may not get your entire security deposit back! Before making these kinds of changes, or adding hardware like curtain rods, be sure to ask your landlord for permission.

A young man relaxes in the living room of his rental looking out his window with beige curtains and house plants around him

Image Source: Getty Images – Image Credit: Adene Sanchez

Accessorize

When decorating, it’s the smaller things like pillows, throws, candles, and books that will really tie your home together and make it feel unique to you. If you’re able to change your light fixtures, it can make a world of difference. Find the right lighting by thinking about what temperature of light appeals to you, and whether you want accent, task, or ambient lighting.

Gallery Wall

Hanging up your art collection with hooks and nails can damage the walls, so be sure to use a stud finder to make the process of creating a gallery wall easier. And besides, when you’re preparing to move out, a few hanging holes from nails and screws is nothing that a little spackling paste, a putty knife, some sandpaper, and a new coat of paint can’t fix.

Again, ask your landlord before you add any holes in the home. When you’re touring, ask the landlord to keep the existing holes in the walls so you can use them, or ask if you can get the paint color information so you can patch and make touch ups yourself. Many landlords keep matching wall and trim paint on hand for such instances.

A young man relaxes in the living room of his rental looking out his window with beige curtains and house plants around him

Image Source: Getty Images – Image Credit: KatarzynaBialasiewicz

Carpet and Flooring

If your flooring is worn, cracked, or damaged in any way, there’s likely little you can do to replace it other than documenting the damage and running it up the flagpole. Fortunately, you have carte blanche to decorate with carpeting as you please. Carpets also serve as a protective layer to avoid further damage to your floors during your tenancy.

Bolder rug materials like shag, tufted cotton, and wool will automatically make your space cozier. If your choice in carpeting is more driven by style, consider vibrant colors, bold patterns, or geometric area rugs to spice things up.

W Report • November 22, 2022

W Report – November 2022

by Phillipa Leseberg

Local market update.

Buyers and sellers across King County have changed their tactics, as high interest rates and increased inventory create market dynamics that haven’t been seen in years.Find our full market recap here.

News + trends.

LOCAL ECONOMY

Regional impact of tech layoffs still unclear

With substantial layoffs confirmed at major tech companies, analysts and employees are waiting to see how Seattle’s economy will react. READ MORE

Exterior of an apartment building with brightly colored front doors

[THE STATE OF] REAL ESTATE

What are rents like where you live?

Although rents dropped last month, it wasn’t enough to halt year-over-year price growth in most cases.

A tall glass skyscraper with a construction crane nearby

LOCAL ECONOMY

Major projects coming to the Eastside

A slew of new projects, from the light rail extension to mixed-use developments, offer new amenities on the Eastside.

A Seattle Metro bus drives down a city street

[THE STATE OF] REAL ESTATE

Why affordable housing near transit is scarce in our region

Zoning regulations have put a damper on affordable housing, but there are solutions that could help meet demand.

Happenings.

November 25 – December 27The Nutcracker at the Pacific Northwest Ballet

November 30 – December 18Austen Unbound at Center Theater (Seattle Center)

December 1 – 4Disney in Concert: The Nightmare Before Christmas at the Seattle Symphony

December 17 – 18Handel’s Messiah by Harmonia Orchestra and Chorus

December 17A Bonsai Solstice at the Pacific Bonsai Museum

Pin-spiration.

Riotous colors, voluptuous fabrics and eye-catching statement pieces are just some of the features maximalism brings to home decor. Minimalism is over; we want it all, baby.

Cast your vote.

MODERN VS. TRADITIONAL SPACES

Which do you prefer? Click below to vote.

MODERN! I crave cutting-edgedesigns and innovative rooms.

TRADITIONAL! Give me classic furnishings and comfy spaces.

VOTE NOW

Last month’s poll results. Yard: 76.7%. No yard: 23.3%.

When you’re ready to talk real estate.

Market News • Matthew Gardner • November 14, 2022

Matthew Gardner’s Top 10 Predictions for 2023

by Phillipa Leseberg

This video shows Windermere Chief Economist Matthew Gardner’s Top 10 Predictions for 2023. Each month, he analyzes the most up-to-date U.S. housing data to keep you well-informed about what’s going on in the real estate market.

Matthew Gardner’s Top 10 Predictions for 2023

1. There Is No Housing Bubble

Mortgage rates rose steeply in 2022 which, when coupled with the massive run-up in home prices, has some suggesting that we are recreating the housing bubble of 2007. But that could not be further from the truth.

Over the past couple of years, home prices got ahead of themselves due to a perfect storm of massive pandemic-induced demand and historically low mortgage rates. While I expect year-over-year price declines in 2023, I don’t believe there will be a systemic drop in home values. Furthermore, as financing costs start to pull back in 2023, I expect that will allow prices to resume their long-term average pace of growth.

2. Mortgage Rates Will Drop

Mortgage rates started to skyrocket at the start of 2022 as the Federal Reserve announced their intent to address inflation. While the Fed doesn’t control mortgage rates, they can influence them, which we saw with the 30-year rate rising from 3.2% in early 2022 to over 7% by October.

Their efforts so far have yet to significantly reduce inflation, but they have increased the likelihood of a recession in 2023. Therefore, early in the year I expect the Fed to start pulling back from their aggressive policy stance, and this will allow rates to begin slowly stabilizing. Rates will remain above 6% until the fall of 2023 when they should dip into the high 5% range. While this is higher than we have become used to, it’s still more than 2% lower than the historic average.

3. Don’t Expect Inventory to Grow Significantly

Although inventory levels rose in 2022, they are still well below their long-term average. In 2023 I don’t expect a significant increase in the number of homes for sale, as many homeowners do not want to lose their low mortgage rate. In fact, I estimate that 25-30 million homeowners have mortgage rates around 3% or lower. Of course, homes will be listed for sale for the usual reasons of career changes, death, and divorce, but the 2023 market will not have the normal turnover in housing that we have seen in recent years.

4. No Buyer’s Market But a More Balanced One

With supply levels expected to remain well below normal, it’s unlikely that we will see a buyer’s market in 2023. A buyer’s market is usually defined as having more than six months of available inventory, and the last time we reached that level was in 2012 when we were recovering from the housing bubble. To get to six months of inventory, we would have to reach two million listings, which hasn’t happened since 2015. In addition, monthly sales would have to drop below 325,000, a number we haven’t seen in over a decade. While a buyer’s market in 2023 is unlikely, I do expect a return to a far more balanced one.

5. Sellers Will Have to Become More Realistic

We all know that home sellers have had the upper hand for several years, but those days are behind us. That said, while the market has slowed, there are still buyers out there. The difference now is that higher mortgage rates and lower affordability are limiting how much buyers can pay for a home. Because of this, I expect listing prices to pull back further in the coming year, which will make accurate pricing more important than ever when selling a home.

6. Workers Return to Work (Sort of)

The pandemic’s impact on where many people could work was profound, as it allowed buyers to look further away from their workplaces and into more affordable markets. Many businesses are still determining their long-term work-from-home policies, but in the coming year I expect there will be more clarity for workers. This could be the catalyst for those who have been waiting to buy until they know how often they’re expected to work at the office.

7. New Construction Activity Is Unlikely to Increase

Permits for new home construction are down by over 17% year over year, as are new home starts. I predict that builders will pull back further in 2023, with new starts coming in at a level we haven’t seen since before the pandemic.

Builders will start seeing some easing in the supply chain issues that hit them hard over the past two years, but development costs will still be high. Trying to balance homebuilding costs with what a consumer can pay (given higher mortgage rates) will likely lead builders to slow activity. This will actually support the resale market, as fewer new homes will increase the demand for existing homes.

8. Not All Markets Are Created Equal

Markets where home price growth rose the fastest in recent years are expected to experience a disproportionate swing to the downside. For example, markets in areas that had an influx of remote workers, who flocked to cheaper housing during the pandemic, will likely see prices fall by a greater percentage than other parts of the country. That said, even those markets will start to see prices stabilize by the end of 2023 and resume a more reasonable pace of price growth.

9. Affordability Will Continue to Be a Major Issue

In most markets, home prices will not increase in 2023, but any price drop will not be enough to make housing more affordable. And with mortgage rates remaining higher than they’ve been in over a decade, affordability will continue to be a problem in the coming year, which is a concerning outlook for first-time buyers.

Over the past two years, many renters have had aspirations of buying but the timing wasn’t quite right for them. With both prices and mortgage rates spiraling upward in 2022, it’s likely that many renters are now in a situation where the dream of homeownership has gone. That’s not to say they will never be able to buy a home, just that they may have to wait a lot longer than they had hoped.

10. Government Needs to Take Housing More Seriously

Over the past two years, the market has risen to such an extent that it has priced out millions of potential home buyers. With a wave of demand coming from Millennials and Gen Z, the pace of housing production must increase significantly, but many markets simply don’t have enough land to build on. This is why I expect more cities, counties, and states to start adjusting their land use policies to free up more land for housing.

But it’s not just land supply that can help. Elected officials can assist housing developers by utilizing Tax Increment Financing tools, whereby the government reimburses a private developer as incremental taxes are generated from housing development. There are many tools like this at the government’s disposal to help boost housing supply, and I sincerely hope that they start to take this critical issue more seriously.

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.

W Report • November 1, 2022

W Report – October 2022

by Phillipa Leseberg

Local market update.

Shifts in the housing market are changing the narrative on local real estate conditions. In September, King County saw inventory increase and prices decrease month-over-month, but prices were still up compared to this time last year.Find our full market recap here.

News + trends.

[THE STATE OF] REAL ESTATE

Despite the “Great Reversion,” some neighborhoods maintain their swagger

Our real estate market is experiencing dramatic shifts this season, but select communities are keeping up the momentum from earlier in the year.READ MORE

LOCAL ECONOMY

Future light rail propels Eastside development

Anticipation for the East Link light rail is bringing new housing developments and businesses to the region.

READ MORE

[THE STATE OF] REAL ESTATE

Regional rental housing supply set to grow in coming years

Many developers are focused on apartments and the rental niche as a continued source of profit.

READ MORE

LOCAL ECONOMY

Eastside office market could use a crystal ball

The rate of office leases on the Eastside has slowed recently — except for Meta’s brand new campus.

READ MORE

Happenings.

October 26After Hours: Halloween! at the Seattle Aquarium

Now – October 29Tristan and Isolde at the Seattle Opera

October 29-30Dia De Muertos Festival at Seattle Center

Now – October 31 Spooky Science at the Burke Museum

Now – November 6Energy Burst: Southeast Seattle Artists Showcase at Columbia City Gallery

Pin-spiration.

With the days getting shorter, it’s time to flip the switch — literally. These unique lighting features will brighten up your space and help you keep it lit.

My featured listings & sales.

Pending for $1,350,000

HOLMES POINT

12440 68th Avenue NE, Kirkland4 Beds / 3 Bath / 3,250 SF

LEARN MORE

Cast your vote.

YARD OR NO YARD

Which do you prefer? Click below to vote.

YARD! Give me grass and green spaces.

NO YARD! None of the maintenance with all of the enjoyment.

VOTE NOW

Last month’s poll results. Fire pit: 49%. Fireplace: 51%.

When you’re ready to talk real estate.

Team Phillipa and Fariba

Direct: (206) 619-5888

Office: (425) 822-5100

Email: TeamPandF@Windermere.com

Website: teampandf.withwre.com

Market News • Market Report • October 26, 2022

Q3 2022 Western Washington Real Estate Market Update

by Phillipa Leseberg

The following analysis of select counties 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 don’t hesitate to contact your Windermere Real Estate agent.

Regional Economic Overview

The Western Washington labor market continues to expand. The addition of 110,000 jobs over the past 12 months represents an impressive increase of 4.9%. All but seven counties have recovered completely from their pandemic job losses. In total, the region has recovered all the jobs lost and has added an additional 30,000 new positions. The regional unemployment rate in August was 3.8%. This is .2% higher than at the end of the second quarter. That said, county data is not seasonally adjusted, which is likely the reason for the modest increase. The labor force has not expanded at its normal pace, which is starting to impact job growth. Although the likelihood of a recession starting at some point this winter has risen, I am not overly concerned at this point; however, I anticipate businesses may start to taper hiring if they feel demand for their goods and services is softening.

Western Washington Home Sales

❱ In the third quarter, 19,455 homes traded hands, representing a drop of 29.2% from the same period a year ago. Sales were 15.4% lower than in the second quarter of this year.

❱ Listing activity continues to increase, with the average number of homes for sale up 103% from a year ago and 61% higher than in the second quarter of 2022.

❱ Year over year, sales fell across the board, but when compared to second quarter they were higher in Mason, Cowlitz, Jefferson, and Clallam counties.

❱ Pending sales (demand) outpaced listings (supply) by a factor of 1:6. This ratio has been dropping for the past three quarters and indicates a market moving back toward balance. The only question is whether it will overshoot and turn into a buyer’s market.

Western Washington Home Prices

❱ Higher financing costs and more choice in the market continue to impact home prices. Although prices rose an average of 3.6% compared to a year ago, they were down 9.9% from the prior quarter. The current average sale price of a home in Western Washington is $748,569.

❱ The change in list prices is a good leading indicator and we have seen a change in the market. All but two counties (Island and Jefferson) saw median list prices either static or lower than in the second quarter of 2022.

❱ Prices rose in all but two counties, and several counties saw price growth well above their long-term averages.

❱ With the number of homes for sale rising and list prices starting to pull back, it’s not surprising to see price growth falter. We are going through a reversion following the overstimulated market of 2020 and 2021. There will be some ugly numbers in terms of sales and prices as we move through this period of adjustment, but the pain will be temporary.

A map showing the real estate home prices percentage changes for various counties in Western Washington. Different colors correspond to different tiers of percentage change. Skagit County is the only county with a percentage change in the 9%+ range, Whatcom, Snohomish, Pierce, Thurston, Mason, and Clallam counties are in the 6% to 8.9% change range, Lewis, Kitsap, and Jefferson are in the 3% to 5.9% change range, Grays Harbor and King counties are in the 0% to 2.9% change range, and San Juan and Island counties are in the -9.5% to -0.1% change range.

Mortgage Rates

This remains an uncertain period for mortgage rates. When the Federal Reserve slowed bond purchases in 2013, investors were accused of having a “taper tantrum,” and we are seeing a similar reaction today. The Fed appears to be content to watch the housing market go through a period of pain as they throw all their tools at reducing inflation.

As a result, mortgage rates are out of sync with treasury yields, which not only continues to push rates much higher, but also creates violent swings in both directions. My current forecast calls for rates to peak in the fourth quarter of this year before starting to slowly pull back. That said, they will remain in the 6% range until the end of 2023.

A bar graph showing the mortgage rates from 2020 to the present, as well as Matthew Gardner's forecasted mortgage rates through Q4 2023. After the 5.62% figure in Q3 2022, he forecasts mortgage rates continuing to climb to 6.7% in Q4 2022, 6.55% in Q1 2023, 6.35% in Q2 2023, 6.15% in Q3 2023, and 5.60% in Q4 2023.

Western Washington Days on Market

❱ It took an average of 24 days for a home to sell in the third quarter of the year. This was seven more days than in the same quarter of 2021, and eight days more than in the second quarter.

❱ King and Kitsap counties were the tightest markets in Western Washington, with homes taking an average of 19 days to sell.

❱ Only one county (San Juan) saw the average time on market drop from the same period a year ago. San Juan was also the only county to see market time drop between the second and third quarters of this year.

❱ The greatest increase in market time compared to a year ago was in Grays Harbor, where it took an average of 13 more days for homes to sell. Compared to the second quarter of 2022, Thurston County saw average market time rise the most (from 9 to 20 days).

A bar graph showing the average days on market for homes in various counties in Western Washington for Q3 2022. King and Kitsap counties have the lowest DOM at 19, followed by Thurston and Snohomish at 20, Island and Pierce at 21, Whatcom and Skagit at 23, Cowlitz at 24, Mason at 25, Lewis at 26, Clallam and Jefferson at 27, and Grays Harbor and San Juan at 34.

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.

Listings are up, sales are down, and a shift toward buyers has started. After a decade of sellers dominating the market, it is far too early to say that the shift is enough to turn the market in favor of buyers, but the pendulum has started to swing in their direction. A belief that the housing market is on its way to collapsing will keep some buyers sidelined, while others may be waiting for mortgage rates to settle down. Whatever their reasons, I maintain that we will see a brief period where annual price growth will turn negative in several markets, but it is only because the market is normalizing. I certainly don’t see any systemic risk of home values falling like they did in the mid-to-late 2000s.

A speedometer graph indicating a slight seller's market in Western Washington for Q3 2022.

All things considered, I have moved the needle toward buyers, but it remains, for the time being, a seller’s market.

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

Buyer • Buying • October 24, 2022

Making a Down Payment on a Home

by Phillipa Leseberg

A closeup of a man’s hands typing on a calculator as he prepares financial paperwork for a down payment on a home.

Imagine the process of financing a home purchase as a relay race. From start to finish, the baton must be passed several times between interconnected transactions. The down payment plays an important role in the relay race and will help you cross the finish line, but how much money do you put down? And when do you make the down payment? Understanding its characteristics will help you see where it fits in the home buying process.

What is a down payment?

The down payment is a large payment made upfront to help fund a home purchase. Unlike the financing obtained through a mortgage loan, the down payment comes out of the buyer’s pocket, not from a lender.

For example, let’s say the house you want to buy is priced at $500,000. If you put $25,000 down, or five percent of the purchase price, that would leave $475,000 you’d need to pay for with a mortgage. If you put down $100,000, or 20 percent, that would leave a $400,000 mortgage principal. In general, a higher down payment equates to a lower interest rate since that financial structure is viewed as less risky by lenders. It also means your monthly payments will be lower since your loan balance is smaller.

However, making a large down payment isn’t feasible for everyone. In fact, according to the National Association of REALTORS® Profile of Home Buyers and Sellers¹, the typical down payment was seven percent for first-time home buyers and 17 percent for repeat buyers in 2021. If you’re not able to put down 20 percent of the home’s purchase price, your lender will typically require that you obtain Private Mortgage Insurance (PMI), which protects them against the possibility of a mortgage default. The benefit of PMI is that it creates a pathway to homeownership by allowing you to move in and start building equity right away.

Different loan products have different down payment requirements. Conventional loans have a minimum down payment requirement of three percent, while government-backed loan products like VA loans or USDA loans may allow you to purchase a home with no money down if you qualify.

Down Payment: Home Monthly Payment Calculator

As you prepare to buy a house, it’s helpful to see what you can afford. Your down payment will have a direct impact on your loan terms and your monthly mortgage payment. Use our Home Monthly Payment Calculator to experiment with different down payments, principal amounts, interest rates, taxes, and more for any listing price.

A man and a woman shake hands with their real estate agent at their kitchen table

Image Source: Getty Images – Image Credit: Paperkites

How to Save for a Down Payment

Though your lender will need to verify that you have the funds available to make your down payment early on in the mortgage approval process, the down payment is officially due at closing. Saving up for such a payment may seem like a daunting task, but with the right planning, you’ll make steady progress. Having a strategy in place for compiling your down payment is a telltale sign that you’re ready to buy a home. Here are some methods of generating savings to consider:

Consider downsizing to reduce your living expenses and increase your savings over time.
Reduce your debt before applying for a mortgage to give yourself a better shot at favorable mortgage terms—i.e., a lower down payment requirement and reduced interest rates.
Explore down payment assistance programs to see if you qualify.
Ask family members for support.

If you’re in the process of selling your current home while looking for a new one, know that you can use the proceeds of the home sale to help finance your new home purchase.

Windermere Community • October 17, 2022

Windermere Foundation Gala Raises $1.6 Million

by Phillipa Leseberg

On stage at the Windermere Foundation Gala at the Sheraton Grand, members of Windermere Real Estate senior leadership receive the Excellence Award from the 5th Avenue Theatre on behalf of the Windermere Foundation

In what has already been a banner year for the Windermere Foundation, the inaugural Windermere Foundation Gala took things to new heights. Held on the evening of September 30 at the Sheraton Grand in downtown Seattle, Windermere agents, owners, and staff dressed to the nines for a night of live entertainment and fundraising for low-income and homeless families throughout the Western U.S.

With 2022 being Windermere’s 50^th anniversary, the company set its sights on reaching $50 million in total donations for the Windermere Foundation by the end of the year. At the end of 2021, the grand total stood at $46 million raised since the Foundation began in 1989, leaving a roughly $4 million gap to reach the $50 million goal. Through the spring and summer, we saw an outpouring of support as Windermere offices around the network stepped up their fundraising and giving efforts. By the end of July, total year-to-date donations surged past $2 million, pushing the grand total to nearly $48 million.

The Windermere Foundation Gala

Then came the night of the Gala, during which the Windermere Foundation would receive the Excellence Award from the 5th Avenue Theatre. Windermere founder John Jacobi and family accepted the award on behalf of Windermere and expressed their commitment to continue their legacy of giving both personally and through the Windermere Foundation. But the Gala was more than a celebration; it was a massive fundraiser, with proceeds from ticket sales, table purchases, donations, and auction bids going back to communities throughout the Windermere footprint.

Windermere Foundation Gala attendees bid on a pizza oven in the ballroom foyer of the Grand Sheraton hotel in Seattle, WA

Image Source: Panravee Fernando – panraveephotography.com

As the Gala attendees entered the foyer of the Sheraton Grand Ballroom, they bid on silent auction packages displayed throughout the room. Up for auction were locally curated experiences and goods alike, including multiple-night stays at luxury resorts, tickets to a Broadway production, and more. Next was the live auction. Bids went up for 11 special packages, including a skiing adventure at an upscale resort in Park City, a guided fly-fishing excursion in Montana, and others. As part of an exclusive Pearl Jam auction package, their guitarist Mike McCready was in attendance, adding his signature on stage to an electric guitar signed by the band members.

Pearl Jam guitarist Mike McCready signs an electric guitar on stage at the Windermere Foundation gala. The item would go up for auction as part of a Pearl Jam package.

Image Source: Panravee Fernando – panraveephotography.com

Finally, the Gala attendees participated in Raise the Paddle, where they contributed donations at different levels. Windermere founder John Jacobi kickstarted the giving with a $100,000 donation, and from there, auctioneer John Curley guided the audience through descending levels of support, calling out bidder number after bidder number in what was an outpouring of giving from the audience. The Windermere network more than doubled the $250,000 goal of Raise the Paddle, ultimately raising $520,250 in donations.

Windermere Foundation Gala attendees hold their bidder numbers in the air as they contribute to Raise the Paddle, collectively raising $520,250 in donations.

Image Source: Panravee Fernando – panraveephotography.com

In total, the Windermere Foundation Gala raised $1.6 million, catapulting Windermere towards its goal of reaching $50 million in total donations by the end of 2022.

To learn more about the Windermere Foundation, visit windermerefoundation.com.