Homeowners • Real Estate • Retirement • December 30, 2023

Retiring Soon? Why Moving Might Be the Perfect Next Step

by Danielle Martin

Retiring Soon? Why Moving Might Be the Perfect Next Step

If you’re thinking about retirement or have already retired this year, it’s a good time to consider if your current house is still a good fit for the next chapter in your life.

Fortunately, you may be in a better position to make a move than you realize. Here are a few things to think about as you decide whether or not to sell and make a move.

How Long You’ve Been in Your Home

From 1985 to 2008, the average length of time homeowners typically stayed in their homes was only six years. But according to the National Association of Realtors (NAR), that number is rising today, meaning many homeowners are living in their houses even longer (see graph below):

When you live in a home for a significant period of time, it’s natural for you to experience a number of changes in your life while you’re in that house. As those life changes and milestones happen, your needs may change. And if your current home no longer meets them, you may have better options waiting for you.

How Much Equity You’ve Gained

Additionally, if you’ve been in your house for more than a few years, you’ve likely built-up significant equity that can fuel your next move. That’s because the longer you’ve been in your house, the more likely it’s grown in value due to home price appreciation. Data from the Federal Housing Finance Agency (FHFA) illustrates that point (see graph below):

While home price growth varies by state and local area, the national average shows the typical homeowner who’s been in their house for five years saw it increase in value by nearly 60%. And the average homeowner who’s owned their home since 1991 saw it more than triple in value over that time.

Consider Your Retirement Goals

Whether you’re looking to downsize, relocate to a dream destination, or simply be closer to loved ones, your home equity can be a key to realizing your homeownership goals. NAR shares that for recent home sellers, the primary reason to move was to be closer to loved ones.

Retirement can bring about major changes in your life, including what you need from your home that is right for your lifestyle today. Whatever your home goals are, I can work with you to find the best option.

Buyers • Real Estate • December 22, 2023

Why Mortgage Rates Could Continue To Decline

by Danielle Martin

Why Mortgage Rates Could Continue To Decline

When you read about the housing market, you’ll probably come across some information about inflation or recent decisions made by the Federal Reserve (the Fed). But how do those two things impact you and your home buying plans? Here’s what you need to know.

The Federal Funds Rate Hikes Have Stalled

One of the Fed’s primary goals is to lower inflation. In order to do that, they started raising the Federal Funds Rate to slow down the economy. Even though this doesn’t directly dictate what happens with mortgage rates, it does have an impact.

Recently inflation has started to cool, a signal those increases worked and are bringing inflation back down. As a result, the Fed’s hikes have gotten smaller and less frequent. In fact, there haven’t been any increases since July (see graph below):

And not only has the Fed decided not to raise the Federal Funds Rate the last three times the committee met, they’ve signaled there may actually be rate cuts coming in 2024. According to the New York Times (NYT):

“Federal Reserve officials left interest rates unchanged in their final policy decision of 2023 and forecast that they will cut borrowing costs three times in the coming year, a sign that the central bank is shifting toward the next phase in its fight against rapid inflation.”

This indicates the Fed thinks the economy and inflation are improving. Why does that matter to you and your plans to buy a home? It could end up leading to lower mortgage rates and improved affordability.

Mortgage Rates Are Coming Down

Mortgage rates are influenced by a wide variety of factors, and inflation and the Fed’s actions (or as has been the case recently, inaction) play a big role. Now that the Fed has paused the increases, it looks more likely mortgage rates will continue their downward trend (see graph below):

Although mortgage rates may remain volatile, their recent trend combined with expert forecasts indicate they could continue to go down in 2024. That would improve affordability for buyers and make it easier for sellers to move since they won’t feel as locked-in to their current, low mortgage rate.

By not raising the Federal Funds Rate, mortgage rates are likely to continue declining. I’m here for you if you looking for expert advice about changes in the housing market and how they affect you.

Buyers • Homeowners • Real Estate • Sellers • December 15, 2023

The Surprising Trend in the Number of Homes Coming onto the Market

by Danielle Martin

The Surprising Trend in the Number of Homes Coming onto the Market

If you’re thinking about moving, it’s important to know what’s happening in the housing market. Here’s an update on the supply of homes currently for sale. Whether you’re buying or selling, the number of homes in your area is something you should pay attention to.

In the housing market, there are regular patterns that happen every year, called seasonality. Spring is the peak homebuying season and also when the most homes are typically listed for sale (homes coming onto the market are known in the industry as new listings). In the second half of each year, the number of new listings typically decreases as the pace of sales slows down.

The graph below uses data from Realtor.com to provide a visual of this seasonality. It shows how this year (the black line) is breaking from the norm (see graph below):

Looking at this graph, three things become clear:

2017-2019 (the blue and gray lines) follow the same general pattern. These years were very typical in the housing market and their lines on the graph show normal, seasonal trends.
Starting in 2020, the data broke from the normal trend. The big drop down in 2020 (the orange line) signals when the pandemic hit and many sellers paused their plans to move. 2021 (the green line) and 2022 (the red line) follow the normal trend a bit more, but still are abnormal in their own ways.
This year (the black line) is truly unique. The steep drop off in new listings that usually occurs this time of year hasn’t happened. If 2023 followed the norm, the line representing this year would look more like the dotted black line. Instead, what’s happening is the number of new listings is stabilizing. And, there are even more new listings coming to the market this year compared to the same time last year.

What Does This Mean for You?

For buyers, new listings stabilizing is a positive sign. It means you have a more steady stream of options coming onto the market and more choices for your next home than you would have at the same time last year. This opens up possibilities and allows you to explore a variety of homes that suit your needs.
For sellers, while new listings are breaking seasonal norms, inventory is still well below where it was before the pandemic. If you look again at the graph, you’ll see the black line for this year is still lower than normal, meaning inventory isn’t going up dramatically and prices aren’t heading for a crash. And with less competition from other sellers than you’d see in a more typical year, your house has a better chance to be in the spotlight and attract eager buyers.

Whether you’re on the hunt for your next home or thinking of selling, now might just be the perfect time to make your move. If you have questions or concerns about the availability of homes in our local area, let’s chat.

Buyers • December 12, 2023

Instead of Buying the Perfect House, What About Making the One You Buy Perfect?

by Danielle Martin

There are 2️⃣ common hurdles many buyers are experiencing today, higher interest rates and home prices.

At the same time, there are still fewer homes available for sale to meet buyer demand. There are, however, ways to overcome these things, and still make homeownership a reality in 2024.

It starts out with being strategic and taking a close look at what features you really need in your next home versus which ones are nice to have. This will help you avoid over extending your budget and limiting your pool of options.

As I work with buyers, we discuss making a list to organize must haves, nice to haves and dream state. This way we have more options and can focus on finding the things that you can’t change such as location or in some instances a certain number of rooms and then we can focus on what you can upgrade or add as far as features or finishes later on.

What I have found is that the perfect home is often times the one you perfect after buying it. If you need help refining your list to find a home that meets your top needs with today’s limited housing supply, let’s connect and get strategic in finding a home that meet your needs while staying within your budget.

Investing • Real Estate • December 8, 2023

10 Housing Predictions for 2024

by Danielle Martin

Just announced were these 10 insightful predictions for 2024 from Matthew Gardner, Windermere’s Chief Economist. ⬇️

1️⃣ Although some suggest there will be a housing bubble in 2024, I find this implausible.

2️⃣ Inflation and the economy are starting to slow, which leads me to believe that mortgage rates will drop to around 6% in 2024.

3️⃣ I expect a modest increase in listing activity, but many homeowners will be hesitant to sell and lose their current mortgage rate.

4️⃣ I don’t expect prices to drop in 2024. However, growth will be a very modest 1%.

5️⃣ Home prices will match or exceed there are 2022 highs in the vast majority of metro areas across the country.

6️⃣ Although new construction remains, tepid, builders are benefiting from the lack of supply in the resale market and gaining greater market share.

7️⃣ With rising home prices and the pace of borrowing cost far exceeding income and gross, affordability will likely erode further in 2024.

8️⃣ Although the government has started to take housing and affordability more seriously, more needs to be done.

9️⃣ Mortgage delinquency levels will continue to rise in 2024, but they will simply be returning to the longer-term average and are not a cause for concern.

🔟 The number of homes for sale will improve modestly in 2024, which, combined with lower mortgage rates, should result in about 4.4 million home sales.

You can watch the full video with Matthew’s prediction by clicking here. For further conversation with questions of how this might effect your real estate goals in 2024, feel free to reach out to me.

Buyers • Homeowners • Sellers • December 8, 2023

When You Sell Your House, Where Do You Plan To Go?

by Danielle Martin

If you’re thinking about selling your house, you may have heard the supply of homes for sale is still low, and that means your house should stand out to buyers who are craving more options. But you may also be wondering, once you sell, how does the current supply impact your own move? And, will you be able to find a home you want to buy with inventory this low?

One thing that can help you find your next home is exploring all your options, including both homes that have been lived in before as well as newly built ones. Let’s look at the benefits of each one.

The Pros of Newly Built Homes

First, let’s look at the advantages of purchasing a newly constructed home. With a brand-new home, you’ll be able to:

Create your perfect home. If you build a home from the ground up, you’ll have the option to select the custom features you want, including appliances, finishes, landscaping, layout, and more.
Cash-in on energy efficiency. When building a home, you can choose energy-efficient options to help lower your utility costs and reduce your carbon footprint.
Minimize the need for repairs. Many builders offer a warranty, so you’ll have peace of mind on unlikely repairs. Plus, you won’t have as many little projects to tackle.
Have brand new everything. Another perk of a new home is that nothing in the house is used. It’s all brand new and uniquely yours from day one.

The Pros of Existing Homes

Now, let’s compare that to the perks that come with buying an existing home. With a pre-existing home, you can:

Explore a wider variety of home styles and floorplans. With decades of homes to choose from, you’ll have a broader range of floorplans and designs available.
Join an established neighborhood. Existing homes give you the option to get to know the neighborhood, community, or traffic patterns before you commit.
Enjoy mature trees and landscaping. Established neighborhoods also have more developed landscaping and trees, which can give you additional privacy and curb appeal.
Appreciate that lived-in charm. The character of older homes is hard to reproduce. If you value timeless craftsmanship or design elements, you may prefer an existing home.

The choice is yours. When you start your search for the perfect home, remember that you can go either route – you just need to decide which features and benefits are most important to you. As an article from The Mortgage Reports says:

“When building, you gain more freedom to tailor the design, materials, and features, but it demands more time and involvement. Conversely, buying an established home offers immediate occupancy . . . yet may require compromises. Your choice should align with your budget, timeline, customization preferences, and the local real estate landscape.”

If you have questions about the options in our area, let’s discuss what’s available and what’s right for you.

Buyers • Homeowners • Real Estate • Sellers • December 6, 2023

The Benefits of Buying New Construction

by Danielle Martin

The benefits of buying new construction ⬇️

New-construction homes come with many advantages that aren’t found in older houses. Here’s a few things of importance to note when making your decision to purchase new vs. resale.

1️⃣ New homes rarely need repairs/renovations. Oftentimes when purchasing a pre-owned home, the buyer will need to set aside funds to make necessary repairs or upgrades. With a new-construction home, everything is updated and in good working order, so there is little need to allocate additional money above and beyond the purchase price once you’ve moved in, with the exception on window coverings and other personal items.

2️⃣ Some new-construction homes may be customizable. One of the exciting things about a new-construction versus a pre-existing home is that there is the possibility that you’ll get to make some design decisions to suit your personal tastes depending on when you go under contract in the build process.

3️⃣ Lower maintenance costs. When you move into a space where everything is new, maintenance costs (and time) should remain at a minimum for at least the first few years.

4️⃣ Most new-construction homes have warranties. Even when things are new, they may still break down. Fortunately, a new-construction home should have a warranty that will take care of it. Basically, the warranty is your protection from defects in workmanship.

5️⃣ A new-construction home will be up to code.

Building codes are the minimum design and construction requirements to ensure safe and resilient structures. You can be confident knowing that the home has been built to meet the local building code requirements

6️⃣ There may be buyer incentives for financing.

7️⃣ It will have a more modern floor plan

While older homes might have character or quirky design features, the great thing about a new-construction home is that it will likely reflect the way homeowners live today.

If you’re considering buying new construction in the Skagit Valley or surrounding area, let’s connect. Determining whether it’s a good time to buy will need to be a personalized conversation and there is no one simple answer.

DM me or call me at 360-420-6807

https://daniellemartinrealestate.com/listing/WA/La-Conner/506-High-Street-98257/176120994

Photo provided by listing agents, Colleen Craig & Julie Birkle, Windermere Real Estate / Anacortes, Builder: BYK Construction Inc.

Buyers • Homeowners • Real Estate • Sellers • December 5, 2023

Experts Project Home Prices Will Rise over the Next 5 Years

by Danielle Martin

Even with so much data showing home prices are actually rising in most of the country, there are still a lot of people who worry there will be another price crash in the immediate future. In fact, a recent survey from Fannie Mae shows that 23% of consumers think prices will fall over the next 12 months. That’s nearly one in four people who are dealing with that fear – maybe you’re one of them.

To help ease that concern, here’s what the experts say will happen with home prices not just next year, but over the next five years.

Experts Project Ongoing Appreciation

While seeing a small handful of expert opinions may not be enough to change your mind, hopefully, a larger group of experts will reassure you. Here’s that larger group.

The Home Price Expectation Survey (HPES) from Pulsenomics is a great resource to show what experts forecast for home prices over a five-year period. It includes projections from over 100 economists, investment strategists, and housing market analysts. And the results from the latest quarterly release show home prices are expected to go up every year through 2027 (see graph below):

And while the projected increase in 2024 isn’t as large as 2023, remember home price appreciation is cumulative. In other words, if these experts are correct after your home’s value rises by 3.32% this year, it should go up by another 2.17% next year.

If you’re worried home prices are going to fall, here’s the big takeaway. Even though prices vary by local area, experts project they’ll continue to rise across the country for years to come at a pace that’s more normal for the market.

What Does This Mean for You?

If you’re not convinced yet, maybe these numbers will get your attention. They show how a typical home’s value could change over the next few years using the expert projections from the HPES. Check out the graph below:

In this example, let’s say you bought a $400,000 home at the beginning of this year. If you factor in the forecast from the HPES, you could potentially accumulate more than $71,000 in household wealth over the next five years.

If you’re someone who’s worried home prices are going to fall, rest assured a lot of experts say it’s just the opposite – nationally, home prices will continue to climb not just next year, but for years to come. If you have any questions or concerns about what’s next for home prices in our local area, let’s connect.

Buyers • Real Estate • Sellers • November 30, 2023

Are the Top 3 Housing Market Questions on Your Mind?

by Danielle Martin

When it comes to what’s happening in the housing market, there’s a lot of confusion going around right now. You may hear one thing in conversation with your friends, see something totally different on the news, and read something on social media that contradicts both of those thoughts. And, if you’re thinking about making a move, that can leave you with a lot of lingering questions. That’s where a trusted local real estate agent comes in.

Here are the top 3 questions people are asking about today’s housing market, an d the data to help answer them.

1. What’s Next for Mortgage Rates?

Mortgage rates are higher than they’ve been in recent years. And, if you’re looking to buy a home, that impacts how much you can afford. That’s why so many buyers want to know what’s ahead for mortgage rates. The answer to that question is: no one can say for certain, but here’s what we know based on historical trends.

There’s a long-standing relationship between mortgage rates and inflation. Basically, when inflation is high, mortgage rates tend to follow suit. Over the past year, inflation was up, so mortgage rates were as well. But inflation is easing now. And this is why the Federal Reserve has recently paused their federal funds rate hikes, which means many experts believe mortgage rates will begin to come down.

And in some ways, we’ve started to see hints of slightly lower mortgage rates in recent weeks. But it’s certainly been volatile and will likely continue to be that way going into next year. Some ongoing variation is to be expected, but the anticipation is, that in 2024, we’ll see a downward trend. As Aziz Sunderji, Strategist at Home Economics, says:

“The bottom line is that interest rates are likely to be lower-perhaps even lower than many optimists think – in the weeks and months to come.”

2. Where Are Home Prices Headed?

While there’s been a lot of concern prices would come crashing down this year, data shows that didn’t happen. In fact, home prices are rising in most of the nation. Experts say that trend will continue, just at a slower pace that’s much more normal for the housing market – and that’s a good thing.

To help show just how confident experts are in this continued appreciation, take a look at the Home Price Expectation Survey from Pulsenomics. It’s a survey of a national panel of over 100 economists, real estate experts, and investment and market strategists. As the graph below shows, the consensus is, that prices will keep climbing next year, and in the years to come.

3. Is a Recession Around the Corner?

While recession talk has been a common thing over the past few years, there’s good news on that front.

The Wall Street Journal (WSJ) polls experts on this topic regularly. And last year at this time, most of them thought a recession would have happened by now. But as experts look at all the leading indicators today, they’re changing their minds and saying a recession is getting less and less likely. The latest results show that more experts now think we’re not headed for another recession.

This is big news for the housing market. And while the 48% to 52% split may seem close to half and half, the key thing to focus on is that the majority of these experts think we’ve avoided a recession already.

The big takeaway? The data shows there isn’t cause for concern – there are actually more signs of hope. Let’s connect to talk more about the housing market questions on your mind as we head into the new year.

Homeowners • Real Estate • November 28, 2023

Your Winter Home Maintenance Checklist

by Danielle Martin

Winter is a magical season to spend at home. We all want to be able to enjoy the shorter days and longer nights from the comfort of our homes while we watch the season change.

To truly enjoy this winter at home with peace of mind, you’ll want to complete a home maintenance checklist to prevent unexpected costs, ensure your family’s safety and warmth, and keep your home in the best shape for the winter season ahead.

1. Weatherproof Windows & Doors

One of the best preparatory measures you can take to keep the cold from infiltrating your home is to weatherproof your windows and doors. Any leaks or cracks could lead to a chilly household and increased heating costs. Either weatherstripping or caulking will do the trick for minor leakage issues, but for any severe problems you may want to consider a replacement.

2. Protect Your Pipes from Freezing

Burst pipes can be disastrous regardless of the season, but winter temperatures pose a greater risk than any other time of the year. Be sure to wrap interior pipes to provide them some insulation against the change in temperature. You’ll want to bring all hoses inside but remember to turn off your exterior water source before you do.

3. Prepare for a Winter Storm

Being fully prepared for the winter ahead includes completing both preventative home maintenance and disaster preparedness tasks. Keep a supply of flashlights and batteries handy in case a power outage should occur. If you have a fireplace, stock up on firewood so you’ll have plenty of fuel for your heat source. It’s best for your family to put together an emergency kit and evacuation plan so you’re prepared for any local weather emergencies.

4. Chimney Sweep and Fireplace Maintenance

We become more reliant on fireplaces, wood burning stoves, and chimneys to heat our homes during the winter. Accordingly, it’s crucial to prepare for the uptick in their usage. Clear out your air vents before your daily fires begin. When your fireplace is not in use, be sure to close the damper to save energy. Clogged chimneys can lead to house fires and carbon monoxide poisoning. Investing in a chimney sweep can save you money in the long run, while avoiding health scares.

5. Clean Out Your Gutters

After all the leaves, pinecones, pine needles, and other autumnal debris have fallen, it’s best to clean out your gutters in preparation for winter. By keeping your gutters clean you’ll avoid gutter damage from melted snow draining improperly. Make sure your downspouts are pointing away from your home’s foundation to prevent basement leaks and flooding.

6. Heating System Maintenance

Keeping up on your heating system’s efficiency is an integral part of winter home maintenance. If you use a furnace, be sure to clean out your air filters and ducts, making replacements as needed. Covering your HVAC system can help to prevent damage from any debris or moisture getting in. To protect against heat loss, seal your ducts with mastic tape or foil tape.

7. Reverse Your Ceiling Fans

If you have ceilings fans in your home, there is a handy trick you can use to improve your home’s heating efficiency. By reversing the direction of your ceiling fan—running the blades in a clockwise direction—you’ll create a slight updraft, forcing warm air near the ceiling downward.

8. Bring Your Plants Inside

The winter season usually spells trouble for your potted plants. However, there are methods to keep them alive indoors through the winter months. You’ll want to provide continual air circulation, so keep a fan blowing in the direction of the plants. It’s best to mirror the conditions the plants will face outdoors, so you can afford to keep watering to a minimum. Since it is a harsher season, keep a close eye on your plants as the winter progresses.

After your checklist is completely crossed off, you’ll be able to kick back, relax, and enjoy your winter at home in comfort knowing your home is primed and ready for the winter season ahead.