Local Market Update – November 2015

The hot real estate market shows little sign of slowing down. Home prices continued to move upward. With the number of pending sales exceeding the number of new listings, the supply of homes is falling well short of demand. The inventory of homes in the Puget Sound area is 23 percent less than a year ago.

Eastside

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Home prices on the Eastside continue to be well above those in other parts of King County. The median price for homes sold in October was $667,000, an eight percent increase over the previous year. Inventory remains at historic lows, with only a six week supply available – far below the three to six months of supply that is considered to be balanced.

King County

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Inventory remained tight throughout King County with just five weeks of available supply. Limited inventory has fueled home prices, pushing the median price of a home up seven percent over last year to $480,000. Home prices vary significantly based on location. While the median home price was $555,000 in Seattle, the median price was $449,950 in North King County, and $297,824 in Southwest King County.

Seattle

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A recent analysis ranked Seattle as the nation’s #1 hottest market for single family homes. That demand has depleted the supply of homes, which stands at just under one month of inventory. Demand has also kept prices climbing. The median price of a home in Seattle increased eight percent over the previous year to $555,000.


Posted on November 19, 2015 at 2:12 pm
Denni Shefrin | Posted in Market News | Tagged , , , , , , ,

Know Before You Owe: Making the Mortgage Process Easier for You

This is a great piece from the Consumer Financial Protection Bureau. Learn about the new federal changes enacted this month that add tons of transparency to the mortage loan disclosure process! As always, your comments are welcome!

http://www.consumerfinance.gov/blog/know-before-you-owe-making-the-mortgage-process-easier-for-you/


Posted on October 23, 2015 at 3:31 pm
Denni Shefrin | Posted in Market News |

Your Top Rated Real Estate Agent in Bellevue

I'm here for you!

It is an honor to be awarded as a top rated real estate agent in Bellevue. I always strive to be the best resource for my clients as I help them navigate the buying or selling process. Everything I do for my clients is about making your real estate dreams happen.

Denni Shefrin’s mission is to inspire and educate those around her to help them manifest their goals. She takes pride in delivering excellent service through empathetic listening to understand what her clients want to achieve. She then works tirelessly to help them reach their goals. Her business practice is founded on honest caring and ethical conduct. She has over a decade of Real Estate experience working with Windermere – the leading company in the Northwest. Her primary market area is the Eastside.

Clients hold Denni Shefrin in the highest regard. “Denni Shefrin is simply the best Real Estate professional I have ever encountered. Her attention to detail, caring attitude and professional knowledge are second to none. She was able to guide us through a difficult home preparation and sales experience with great capability. I could not imagine having gone through this experience with anybody other than Denni. I enthusiastically recommend her for any possible client.” – Maggie and Bill Blackburn

Are you thinking about making a jump into the housing market? Reach out to me and I can help you with any questions you might have.

You can read more from the original article here.


Posted on October 22, 2015 at 11:33 am
Denni Shefrin | Posted in Buying, Selling |

What You Need to Know about Real Estate Appraisals

 

Appraised value vs. market value

Appraisals are designed to protect buyers, sellers, and lending institutions. They provide a reliable, independent valuation of a tract of land and the structure on it, whether it’s a house or a skyscraper. Below, you will find information about the appraisal process, what goes into them, their benefits and some tips on how to help make an appraisal go smoothly and efficiently.

The appraised value of a property is what the bank thinks it’s worth, and that amount is determined by a professional, third-party appraiser. The appraiser’s valuation is based on a combination of comparative market sales and inspection of the property.

Market value, on the other hand, is what a buyer is willing to pay for a home or what homes of comparable value are selling for. A home’s appraised value and its market value are typically not the same. In fact, sometimes the appraised value is very different. An appraisal provides you with an invaluable reality check.

If you are in the process of setting the price of your home, you can gain some peace-of-mind by consulting an independent appraiser. Show him comparative values for your neighborhood, relevant documents, and give him a tour of your home, just as you would show it to a prospective buyer.

What information goes into an appraisal?

Professional appraisers consult a range of information sources, including multiple listing services, county tax assessor records, county courthouse records, and appraisal data records, in addition to talking to local real estate professionals. 

They also conduct an inspection. Typically an appraiser’s inspection focuses on:

  • The condition of the property and home, inside and out
  • The home’s layout and features
  • Home updates
  • Overall quality of construction
  • Estimate of the home’s square footage (the gross living area “GLA”; garages and unfinished basements are estimated separately)
  • Permanent fixtures (for example, in-ground pools, as opposed to above-ground pools)

After considering all such information, the appraiser arrives at three different dollar amounts – one for the value of the land, one for the value of the structure, and one for their combined value. In many cases, the land will be worth more than the structure.

One thing to bear in mind is that an appraisal is not a substitute for a home inspection. An appraiser does a cursory assessment of a house and property. For a more detailed inspection, consult with a home inspector and/or a specialist in the area of concern.

Who pays and how long does it take?

The buyer usually pays for the appraisal unless they have negotiated otherwise. Depending on the lender, the appraisal may be paid in advance or incorporated into the application fee; some are due on delivery and some are billed at closing. Typical costs range from $275-$600, but this can vary from region to region.

An inspection usually takes anywhere from 15 minutes to several hours, depending on the size and complexity of your property. In addition, the appraiser spends time pulling up county records for values of the houses around you. A full report comes to your loan officer, a real estate agent or lender within about a week.

If you are the seller, you won’t get a copy of an appraisal ordered by a buyer. Under the Equal Credit Opportunity Act, however, the buyer has the right to get a copy of the appraisal, but they must request it. Typically the requested appraisal is provided at closing.

What if the appraisal is too low?

If you appraisal comes in too low it can be a problem. Usually the seller’s and the buyer’s real estate agents respond by looking for recent and pending sales of comparable homes. Sometimes this can influence the appraisal. If the final appraisal is well below what you have agreed to pay, you can renegotiate the contract or cancel it. 

Where do you find a qualified appraiser?

Your bank or lending institution will find and hire an appraiser; Federal regulatory guidelines do not allow borrowers to order and provide an appraisal to a bank for lending purposes. If you want an appraisal for your own personal reasons, and not to secure a mortgage or buy a homeowner’s insurance policy, you can do the hiring yourself. You can contact your lending institution and they can recommend qualified appraisers and you can choose one yourself or you can call your localWindermere Real Estate agent and they can make a recommendation for you. Once you have the name of some appraisers you can verify their status on the Federal Appraisal Subcommittee website: https://www.asc.gov/National-Registry/NationalRegistry.aspx

Tips for hassle-free appraisals:

  • What can you do to make the appraisal process as smooth and efficient as possible? Make sure you provide your appraiser with the information he or she needs to get the job done. Get out your important documents and start checking off a list that includes the following:
  • A brief explanation of why you’re getting an appraisal
  • The date you’d like your appraisal to be completed
  • A copy of your deed, survey, purchase agreement, or other papers that pertain to the property
  • If you have a mortgage, your lender, the year you got your mortgage, the amount, the type of mortgage (FHA, VA, etc.), your interest rate, and any additional financing you have
  • A copy of your current real estate tax bill, statement of special assessments, balance owing and on what (for example, sewer, water)
  • Tell your appraiser if your property is listed for sale and if so, your asking price and listing agency
  • Any personal property that is included
  • If you’re selling an income-producing property, a breakdown of income and expenses for the last year or two and a copy of leases
  • A copy of the original house plans and specifications
  • A list of recent improvements and their costs
  • Any other information you feel may be relevant

By doing your homework, compiling the information your appraiser needs, and providing it at the beginning of the process, you can minimize unnecessary phone calls and delays. 

 

http://www.windermere.com/blogs/windermere/posts/1294

 

Posted on October 19, 2015 at 2:05 pm
Denni Shefrin | Posted in Buying |

Local Market Update – October 2015

Strong sales continue to whittle down a dwindling supply of homes. The lack of supply to meet demand kept driving home prices upward in September. While the Puget Sound area saw steady appreciation over a year ago, there are signs that that the frenzied level of growth may be starting to moderate – good news for a market that was starting to look unsustainable.

Eastside

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The Eastside continues to lead the region in home values. The median price for homes sold in September was $680,000, an increase of 12 percent over a year ago. Sales were up as well, with many homes selling within days of being listed. As a result, inventory is at historic lows, with only a six week supply available. That is far below the three to six months of supply that is considered to be balanced.

King County

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Home prices rose a moderate seven percent in King County as compared to last year. The median price for a single family home in September was $490,250. Areas farther from the urban core are relative bargains, with the median price in Southeast King County coming in at $344,975, and at $304,000 in Southwest King County. Inventory remained tight throughout the region, with just five weeks of available supply.

Seattle

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The Seattle market continues to be very hot. Homes are snapped up as soon as they come on the market. As a result, the city has under a month of available inventory, the lowest in the region. Home prices climbed 10 percent over last year to a median of $571,000. That increase hasn’t seemed to decrease demand from buyers, who have become accustomed to facing multiple offers on newly listed homes.


Posted on October 8, 2015 at 11:06 am
Denni Shefrin | Posted in Market News |

3 Quick Maintenance Tips To Make Your Roof Last

​​Your roof is one of the most important assets of your home. Here are some tips to help maintain it.

This article originally appeared on Porch.com

A brand-new roof is a massive investment, but no other element of your home is quite as valuable. While the average lifespan of a roof is about 15 years, careful homeowners have a few ways to extend the life of their homes without enduring too many headaches. Take a look at these three quick maintenance tips that will make your roof last.

1. Keep Your Gutters Clear

Most people don’t think of their gutters as part of their roof, but allowing debris to accumulate and clog your gutters adds extra weight and pulls away at your roof’s fascia, which can be a costly fix. Look down the length of your roof for any signs of sagging or bending – that’s a sure sign your gutters are carrying too much weight and pulling at your roof. Downspouts should also be carefully maintained, but don’t be fooled by easy-flowing water. Moss and algae buildup on and around your roof can slowly eat away at your roofing material and severely compromise its integrity.

2. Focus On The Attic

The exterior of your roof isn’t the only area you should be focused on. Your attic is your roof’s first line of defense against damage and you have two methods of attack: insulation and ventilation.

Insulating your attic has the double benefit of keeping your home’s internal temperature at a more reasonable level while also preventing vapor and moisture buildup on the underside of your roof. When combined with proper ventilation (which may mean adding a fan to your attic), your attic can stay dry and keep your roof’s rafters safe from moisture damage.

3. Catch Problems Early

Check on your roof regularly, whether it’s with every change of the season or after a significant storm. Catching small issues early on can only save you money in the long run, so utilizing the services of a reliable, professional roofer is an invaluable asset. As with any working professional, it’s a good idea to establish a working relationship with a roofer and even consider scheduling a yearly checkup for your roof just to make sure there aren’t any problems sneaking up on you. After all, spending a little each year to maintain your roof is a lot better than dropping $15,000-$50,000 on a new one, right?


Posted on September 24, 2015 at 12:46 pm
Denni Shefrin | Posted in Market News | Tagged , ,

Local Market Update – September 2015

The real estate market traditionally cools off in the summer, but August saw a continuation of the market’s hot streak. Home prices increased by double digits over a year ago, fueled by strong demand and the lowest inventory in more than a decade. Rising prices are kindling hopes that more sellers will be willing to put their home on the market.

Eastside

Click image to view full report. 

Home values on the Eastside continue to be the highest in the region. The median price for homes sold in August was up 11 percent to $672,000. Very limited inventory translated into brisk sales as buyers snapped up homes at every price point. A $3.7 million home on Yarrow Point sold in just four days after being listed.

Click image to view full report.

 

 

 

 

 

King County

Click image to view full report. The median price for a single family home in King County was $499,950, a 14 percent increase over last August. Inventory has inched up, but the five weeks of existing supply is far below the three to six months of supply that is considered to be balanced. Condo sales were strong, with 22 percent more sales than a year ago.

Click image to view full report.

 

 

 

 

 

 

Seattle

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Seattle home prices have exceeded their 2007 peak. The median sale price for single family homes sold in Seattle in August was up 15 percent to $575,000. With just three weeks of available inventory, supply just can’t meet demand. Multiple offers and escalation clauses were the rule rather than the exception here.

​Click image to view full report.

 

 

 

 

 

 


Posted on September 10, 2015 at 2:55 pm
Denni Shefrin | Posted in Market News |

Will millennials be ‘perma-renters’?

Below is an article by Windermere's chief economist Matthew Gardner that originally appeared on Inman.com. He discusses millennials and the several factors have kept this generation renting, but they won't last forever.

Takeaways:

  • Many believe that millennials will continue to be renters and not homeowners for various reasons.
  • The first of the millennials were not even in a position to consider buying until roughly 2008.
  • Credit has become tighter for older buyers; therefore, the recent rise in first-time buyers actually can be attributed to millennials.

There has been a lot of buzz in the news recently suggesting that millennials will forever be renters and not homeowners.

Reasons for this theory are plentiful and include amenities that apartments offer, flexibility when it comes to moving and changing jobs, and inability to afford a home given the crushing student debt load that many are carrying.

So will this be the renter generation? Let’s take a look at the data.

Millennial homeownership rates

Those who believe in the “perma-renter” theory point to U.S. Census Bureau statistics that state the homeownership rate for individuals under the age of 35 has dropped from a peak of 43.6 percent in 2004 to 34.6 percent today.

Now, I can’t deny that this is a precipitous drop, but let’s not get carried away quite yet. To start with, the first of the millennials (born in 1982) were not even in a position to consider buying until roughly 2008. That accounts for four years of college followed by two years of work.

We all know that 2008 was a terrible year to buy a home, so let’s bring it forward a little further to 2012. At that time, the ownership rate was roughly 36.7 percent. Since then, it has dropped to the current level of 34.6 percent. This drop is hardly a drastic one, but it is a drop all the same — so what happened?

Fewer urban options

As mentioned earlier, some suggest that millennials are bypassing homeownership because they prefer to remain mobile and are drawn to the bells and whistles that modern apartment living offers.

I would add to this that urban life simply appeals more to younger people than living in the suburbs; especially to those who are just starting their careers and don’t yet have a family.

But the options to buy in many cities are few and far between. Since the Great Recession, there has been a shortage of new, for-sale multifamily development, which limits the availability of urban housing for buyers.

At the same time, new apartment projects are being built at a frenetic pace. According to REIS, 240,000 apartment units are scheduled to open their doors by the end of this year, which represents a 43 percent increase compared with 2014, and well over 100,000 units above the 10-year trailing annual average.

The makeup of first-time buyers

Now let’s turn to the National Association of Realtors’ data on the percentage of existing sales to first-time homebuyers. As the chart below shows, between 2008 and mid-2010, there was a rapid runup as a result of the first-time homebuyer tax credit.

After that program expired, the percentage naturally dropped and trended lower through the end of 2013. However, it’s clear that the share of sales to first-time buyers has been trending higher for the past 17 months. But not all of these buyers are millennials, so we need to dig a little deeper for answers.

Source: National Association of Realtors

To better understand the makeup of first-time buyers, I started by looking at their age distribution. There is some great data from the Federal Reserve Bank of Atlanta that sheds light on this through analysis of mortgage data and demographic attributes.

As is shown in the table below, first-time buyers are actually not getting older. Although their numbers tumble after the crash of the housing market, the age distribution did not change drastically.

Now, if we believe that the decline was driven by the millennials, surely we would have seen first-time buyers getting older, but interestingly enough, they didn’t.

Source: Federal Reserve Bank of New York

To add to this, analysis prepared by the Center for Real Estate Analytics suggests that the gap between median credit scores of younger buyers and older buyers has closed.

In other words, credit has become tighter for older buyers; therefore, the recent rise in first-time buyers actually can be attributed to millennials.

So, if credit quality isn’t the issue holding back millennials, and rents continue to increase at a frenetic pace, it stands to reason that we will see more and more members of this generation becoming homeowners.

I hope I’ve demonstrated that these broad statements that people are making about millennials being perma-renters are unfounded.

Are many of them delaying their purchasing decisions? It appears so, but I expect them to move into homeownership in greater numbers as they start to marry, have families or simply find themselves paying too much in rent.

So where are these millennials going to buy? I’ll tackle that topic in an upcoming post.

Matthew Gardner is the chief economist for Windermere Real Estate. He is the former principal of Gardner Economics and has over 25 years of professional experience both in the U.S. and U.K. Follow him on Twitter @windermere.


Posted on August 20, 2015 at 2:24 pm
Denni Shefrin | Posted in Market News |

How Long Should They Last?

Nothing in life lasts forever – and the same can be said for your home. From the roof to the furnace, every component of your home has a life span, so it’s a good idea to know approximately how many years of service you can expect from them. This information can help when buying or selling your home, budgeting for improvements, and deciding between repairing or replacing when problems arise.

According to a National Association of Home Builders (NAHB) study, the average life expectancy of some home components has decreased over the past few decades. (This might explain why you’re on your third washing machine while Grandma still has the same indestructible model you remember from childhood.) But the good news is the life span of many other items has actually increased in recent years.

Here’s a look at the average life spans of some common home components (courtesy of NAHB).

Appliances.

Of all home components, appliances have the widest variation in life spans. These are averages for all brands and models, and may represent the point which replacing is more cost-effective than repairing. Among major appliances, gas ranges have the longest life expectancy, at about 15 years. Electric ranges, standard-size refrigerators, and clothes dryers last about 13 years, while garbage disposals grind away for about 10 years. Dishwashers, microwave ovens, and mini-refrigerators can all be expected to last about nine years. For furnaces, expect a life span of about 15 years for electric, 18 for gas, and 20 for oil-burning models. Central air-conditioning systems generally beat the heat for 10 to 15 years.

Kitchen & Bath.

Countertops of wood, tile, and natural stone will last a lifetime, while cultured marble will last about 20 years. The life span of laminate countertops depends greatly on use and can be 20 years or longer. Kitchen faucets generally last about 15 years. An enamel-coated steel sink will last five to 10 years; stainless will last at least 30 years; and slate, granite, soapstone, and copper should endure 100 years or longer. Toilets, on average, can serve at least 50 years (parts such as the flush assembly and seat will likely need replacing), and bathroom faucets tend to last about 20 years.

Flooring.

Natural flooring materials provide longevity as well as beauty: Wood, marble, slate, and granite should all last 100 years or longer, and tile, 74 to 100 years. Laminate products will survive 15 to 25 years, linoleum about 25 years, and vinyl should endure for about 50 years. Carpet will last eight to 10 years on average, depending on use and maintenance.

Siding, Roofing, Windows.

Brick siding normally lasts 100 years or longer, aluminum siding about 80 years, and stucco about 25 years. The life span of wood siding varies dramatically – anywhere from 10 to 100 years – depending on the climate and level of maintenance. For roofs, slate or tile will last about 50 years, wood shingles can endure 25 to 30 years, metal will last about 25 years, and asphalts got you covered for about 20 years. Unclad wood windows will last 30 years or longer, aluminum will last 15 to 20 years, and vinyl windows should keep their seals for 15 to 20 years.

Of course, none of these averages matter if you have a roof that was improperly installed or a dishwasher that was a lemon right off the assembly line. In these cases, early replacement may be the best choice. Conversely, many household components will last longer than you need them to, as we often replace fully functional items for cosmetic reasons, out of a desire for more modern features, or as a part of a quest to be more energy efficient.

Are extended warranties warranted?

Extended warranties, also known as service contracts or service agreements, are sold for all types of household items, from appliances to electronics. They cover service calls and repairs for a specified time beyond the manufacturer’s standard warranty. Essentially, warranty providers (manufacturers, retailers, and outside companies) are betting that a product will be problem-free in the first years of operation, while the consumer who purchases a warranty is betting against reliability.

Warranty providers make a lot of money on extended warranties, and Consumers Union, which publishes Consumer Reports, advises against purchasing them. You will have to consider whether the cost is worth it to you; for some, it brings a much needed peace of mind when making such a large purchase. Also, consider if it the cost outweighs the value of the item; in some cases it may be less expensive to just replace a broken appliance than pay for insurance or a warranty.

View the original article on Windermere's blog.


Posted on August 6, 2015 at 7:10 pm
Denni Shefrin | Posted in Market News |

Homeownership Has Declined, But It Won’t Be Forever

Below is an article from Windermere's Chief Economist Matthew Gardner. He shares his views of the declining homeownership, and why he believes it won't be a lasting trend.

In addition to talking about housing bubbles, another topic that is becoming popular among housing scaremongers is the ongoing decline in the U.S. homeownership rate. Remarks range from the direct, “American homeownership is at its lowest level in more than two decades,” to the downright inflammatory, “Rental surge to drop homeownership rate to 61.3% by 2030”. When I read statements like this it always drives me to dig into the data to see what is really going on.

The data that everyone uses to track homeownership is provided by the U.S. Census Bureau, which publishes quarterly stats on ownership rates dating back to 1965. As you can see in the chart below, the rate remained remarkably stable between 1965, when it registered at 62.9%, and 1994, when it was 63.8%. For the purposes of this discussion, I have highlighted three presidential terms: two under President Clinton and President George W. Bush’s first term.

The “boom times” for housing essentially started after the election of President Clinton, who went to remarkable lengths to encourage homeownership. Readers may remember the 1994 National Homeownership Strategy when the President directed HUD to come up with a viable plan to increase homeownership. And it worked; during the Clinton administration, homeownership rose from 64.2% to 67.1%.

During his first term, President Bush continued the practice of encouraging homeownership, as it dovetailed with his Ownership Society goals. His, and President Clinton’s efforts, led to the highest home ownership rates on record, peaking at just over 69% (about 5% higher than record-keeping averages). But as we all know now, it also led to the burst of the biggest housing bubble in our nation’s history. Yes, ownership rates skyrocketed, but the market was artificially inflated and unsustainable. Home ownership rates have since dropped to 63.7%, but this is only marginally below the long-term average of 64.3. Hardly calamitous as some are suggesting.

That said, I do think that that the rate could fall a little further. Now, before you start blaming the Millennial generation, stop, because they are not the ones leading this charge. (As a side note, I do feel rather sorry for this group, as they appear to be taking the brunt of any and all economic woes at the moment.) If we look at homeownership rates by age, between 1994 and today, the decline in homeowners under the age of 35 is 2.5%. A palpable drop, but slight when compared to 35-44 year olds who have seen their numbers drop by 6% – from 64.4% to 58.4%. Why? Because this group took the largest hit following the housing crash, and many lost their homes to foreclosure.

Circling back to Millennials, it’s true that this group is more subdued relative to homeownership – and there’s good reason for it. Millennials comprise a smaller share of married couples and a higher share of in-city dwellers versus suburbs. But their lack of growth may well be offset by middle-aged families who are thinking about getting back into homeownership again. According to RealtyTrac, while Millennials have gotten a lot of attention lately as the generation whose below-normal homeownership rates are changing the landscape of the U.S. real estate market, the boomerang buyers — who are primarily Generation Xers or Baby Boomers — represent a massive wave of potential pent-up demand that could shape the housing market in the short term even more dramatically.

Data from Transunion supports this theory, suggesting that there are about 700,000 consumers who will become eligible to re-enter the housing market in 2015, and up to an additional 2.2 million potential buyers will requalify over the next five years. It’s likely that these so called “boomerang buyers” will become homeowners again, which will do its part to offset the Millennial drop, and raise the homeownership rate back up to its historic averages.

So, have homeownership rates declined? Yes, but as the data and this analysis show, taking a simple “peak-to-trough” view of homeownership figures does not necessarily provide accurate results. Regardless of how many scaremongers declare otherwise.

Visit the Windermere blog for the original article.


Posted on July 23, 2015 at 8:12 pm
Denni Shefrin | Posted in Market News | Tagged , , , , , , , ,