Market Mondays: King and Snohomish Counties – Tuesday Edition

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Today, I will be looking at market data and comparison between King County and Snohomish County for a macro overview of the market, as well as looking forward at possible trends moving into the end of 2014 and early 2015.  In August 2014, 2582 homes were sold  (AKA, closed) in King County, this does not include pending/contingent sales.  The graph below demonstrates months supply of inventory as well as list price/sale price ratio.

In August, King County had 2.3 months supply of inventory, up slightly from July.  As of September 15th, 2014 we are slightly lower than 2.3 months supply and are hovering at 2.0 months supply.

August matched July in average days on market and sellers continue to get close to 100% of list price.  September is showing no signs of slowing down like it has historically and will be interesting to see what it looks like at the end of the month as we move into October.

Now, lets look at Snohomish County….

As of September 15th, 2014 Snohomish County has 3.4 months inventory, which is up slightly from 3.1 months inventory in August.

Snohomish County is has also seen consistency in sale price/list price as well as hovering around 45 average days on the market.

It may seem like King County is where the hotbed is, home prices are at and in some areas exceeding the prices at the peak of the market and are selling at the speed of light.  What is interesting about this and good news for Snohomish County is this type of market will not carry on this way forever.  Markets ebb and flow and Snohomish has room to grow and improve, which I predict will continue through next year.  Right now, purchasing in Snohomish County allows for more immediate equity in the purchase of a home as well as appreciation as the greater Seattle area continues to see record job growth as well as one of the top 5 places to live in the United States.

Why are we seeing such a demand in the housing market? the Northwest Multiple Listing Service’s data shows that the top four reasons for the booming market are foreign investors coming into the area, job growth, low interest rates and overall market stability.  It is a VERY exciting time to be involved in the real estate market.  Please contact me at rachelwagner@johnlscott.com or 425.324.0302 if you or someone you know is interested in buying/selling home or you have any questions as they relate to real estate.

Finance Friday: Improve Your FICO Score Quickly!

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With mortgage interest rates hovering near record lows, you may want to either refinance your mortgage or purchase a new home before rates go higher again.  There is no better time than now to buy a home, interest rates are expected to climb which can have a big impact on the amount of home you can purchase!

The question is — can you qualify for refinancing or a purchase loan?

Since the recession, lenders have tightened loan qualification standards and their most widely used tool to determine if you qualify for a loan and at what interest rate are your credit scores. Credit scores are determined by a software algorithm that analyzes your credit and payment history.

These “FICO” scores run between 300 and 850, with the highest numbers considered to be the best scores. The 47% of Americans with credit scores of 720 or higher receive the best interest rates, according to MyFICO.com.

Credit scores make a significant impact. For every 20-point credit score increase, according to Zillow, the average low APR declines 0.12 percent, a savings of $6,400 on a $300,000 home over 30 years.

Improve your credit scores

FICO scores are based on your credit history. Each credit reporting bureau, Experian, TransUnion, and Equifax calculates its own score, so you may have three scores.

The first thing you need to do is review your credit reports for errors and get them resolved as quickly as possible. Visit freeannualcreditreport.com to get copies. You can then purchase your credit scores for approximately $14.95 from each agency or all three at myfico.com.

FICO scores change with every new piece of information that comes into the credit reporting bureau, so the credit score you receive today can be improved quickly by following some dos and don’ts.

 

Don’t close credit card accounts. FICO scores utilize a credit utilization ratio that turns against you because it appears that you might be overusing your available credit.

Don’t max out or consolidate credit cards. Credit card companies like it if you only use about 30% of your available credit on your card. You’re better off having small balances on multiple cards than a large balance on one card.

Don’t apply for new revolving credit or transfer balances. If you’re buying a new home, it’s tempting to buy some new furniture, but don’t open that account until after your loan closes. You don’t want “inquiries” to be raised in the scoring algorithm.

Don’t change jobs right before you apply for a home loan, although job changes within the same field are considered more favorably in scoring.

Do pay all bills on time and with at least the minimum payment due. Lenders like on time payment histories.

Do pay down your debt, as lower income-to-debt ratios are attractive to lenders. Start by reducing credit card balances first, beginning with the balances that generate the highest interest rates. Revolving credit is considered riskier debt than installment loans such as student loans or car payments.

Do shop lenders simultaneously. Credit score software takes into account several inquiries from mortgage lenders as normal, but if you space rate-shopping out over weeks or months, that could impact your credit score negatively.

Remember, mortgage lenders are most interested in your ability to repay their loan. The most important factors are job and debt payment history. Job security — long-term employment in the same field and on-time.

There are literally thousands of people renting that could be saving money by owning their own home, and like I mentioned earlier, there is no better time than now.  If you are wondering if this applies to you, contact me at rachelwagner@johnlscott.com and I can connect you with a lender who can educate and begin the process.

Market Mondays: Southwest Snohomish County

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Fall is moving into the Pacific Northwest, but today as I sit on my porch looking out at Lake Washington on this beautiful Labor Day, I am reminded of just how amazing it is to live here.  Labor Day typically represents an end to the “Real Estate” season, school starts, weather changes and the focus shifts.  This year, however, we are not seeing that happen as interest rates are still low and consumer confidence is growing.  Now is a great time to take advantage of low interest rates and a fantastic selection of inventory.  

This week we are looking at Southwest Snohomish County, this includes Bothell, Lynnwood, Mill Creek, Edmonds and surrounding areas.  As of September 1st, 2014 there are 375 active listings and 707 sold in the last 90 days! This means there are 1.59 months of inventory based on closed sales in Southwest Snohomish County.  Wow!  Currently, there are also 230 properties currently pending in the last 30 days, which demonstrates that homes are not only selling but people are also buying these homes quickly! Many homes are seeing multiple offer situations and buyers are waiting for the next property to come on the market.

 

At the end of July we saw months of inventory at 2.1 and drop to almost 1.8 months in August.  As of September 1st, we are at 1.59 months of inventory based on closed sales.

Average days on market are also continuing to go down, which is partially due to the lack of new inventory on the market as demand increases.  In a healthy market, these numbers are quite a bit higher which is another key reason why it’s important for buyers to be prepared when looking at homes. Pre-approval letters are now the norm, connecting with a mortgage broker or lender is imperative to a successful transaction.  

Average price per square foot increased only slightly by the end of July, resulting in still affordable home prices.  Southwest Snohomish County is a great place to invest in your future.  

 

Also, thank you to all of you who followed my blog for the Full Circle Drawing! A winner has been picked and will be announced this week (at his/her permission) along with a great interview with a mortgage broker.  Stay tuned and feel free to contact me with any questions you may have as they relate to real estate!

 

Happy Labor Day!

 

 

 

Liven Up Your Kitchen With Full Circle + Easy Updates For Your Home

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First things first, Happy Hump Day! I want to start off by offering all of my readers an opportunity to win one month of organic produce delivered by Full Circle! How do you enter? If you aren’t already, follow my blog! Not only will you get the latest real estate news and useful home ‘how-to’s’, but you will automatically be entered to win the Full Circle drawing. Already a follower or not interested in the long term commitment? Shoot me an email with your name/phone number/address and I will enter you.  All I ask is that you be a Washington resident when the winner is announced on Monday, September 1st.

What is Full Circle?

“Each week we handpick fresh, certified organic fruits and vegetables to create your personalized order. We build relationships with growers using sustainable farming practices and source our produce as locally as the season allows. We also source from organic growers in warmer climates for increased variety throughout the year. It’s like having the farmers market come to you—all year long!”  What’s not to love about that?

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Easy Updates For Your Home

Enhance the entry

First impressions matter. Invest in a new front door or paint your old one, it can dramatically change the look of your home and enhance curb appeal. Try other easy DIY fixes like repainting the exterior trim, replacing the house numbers or installing new outdoor lighting.

Build a Headboard

Headboards can be made out of anything – find something you’re passionate about and turn it into a headboard. Use old skis or skateboards; or make a collage by decoupaging magazines or attach family photos to an old headboard. Also, think about using salvaged materials such as fencing, old doors etc.  There are literally thousands of examples on Pinterest and is a great weekend project!

Illuminating Ideas

New kitchen lighting or a new fixture over the dining table is sure to brighten up any meal. Try one of these projects: Make a fabric-covered drum shade to match your decor. Install a dimmer switch to make your current lighting more versatile. Use a few cans of spray paint to give an old chandelier new life. Replace or paint the blades on a ceiling fan. Also, if you’re thinking about selling your house, remember that light creates an atmosphere that people either want to be in or not.  Think about creating a warm, inviting space with as much natural light as possible!

Paint Cabinet inside cabinet

Cabinet Facelift

If your cabinets need more than new hardware, paint them. It can be a time-consuming project, but if done right, your kitchen will look brand new and add value to your home.

Market Mondays: Lynnwood

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This week, we are looking at what is happening in the real estate market for single family homes in the city of Lynnwood.  Lynnwood is home to many professionals who work in Seattle and is also considered a “hub city” of South Snohomish County due to all of the retail shopping in the area.  The cool thing about Lynnwood is that being just north of Seattle, it is an easy commute to the city but also minutes from the ferries, mountains, wineries and an ideal gateway to nearly everything the Northwest has to offer.  As the greater Seattle area continues to grow, Lynnwood is already seeing a marked increase in new developments as well as a desirable place to own a home! My prediction is that Lynnwood home prices will continue to see an increase and is a smart choice for a great long term investment.  With that, what does the market look like?

As of August 25th, 2014 there are 66 active listings for single family homes in Lynnwood.  The price range is $229,990-1.4 million with the median list price being approximately $419,000.  In July 2014, there were 209 homes for sale, with 88 homes sold and 103 pended.  In the last 90 days there have been 122 homes sold, which brings the months supply of inventory to 1.8 months based on closed sales.  This number changes when pending sales are considered, but the numbers indicate that it is still what is considered a “sellers market”. 

 

The graph below displays months of inventory in Lynnwood through July, notice the spike in January/February.  The months of inventory here are still not above 6 months, which is what is considered a balanced market.  It will be interesting to see what happens as the economy continues to improve and we also continue to see growth in the greater Seattle area.  We are in a very exciting time in real estate and I will continue to keep all of you updated on what is unfolding!

 

 

 

 

Market Monday’s: Kirkland Condos

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I’ve been watching what’s happening in the Kirkland condo market closely as of late, it’s fascinating that such a desirable location can have A LOT of affordable condos still on the market for people looking to make a great investment in their future, or get into their first home. Not only that, the rental market is creeping up in the area making it challenging to find an affordable place to live, which makes buying a condo even more appealing.  So, what’s happening? As of August 18th, 2014 there are 65 active condo listings ranging between $105,000 to over $6 million! The median list price is $315,000 while the average list price is $525,000, it’s pretty clear that the big listing prices are skewing the data.  There were 127 condos sold in the past 90 days in Kirkland, with the sale price being 98% percent of the list price.  This means that people are paying the list price, and in some cases more depending on the property and demand for that location.  

The graph below demonstrates the for sale/sold/pending condos through July 2014:

As of August 18th, 2014 the Kirkland condo market is at 1.54 months of inventory based on closed sales.  This is down slightly from 1.8 months of inventory in July of this year.  Interest rates dropped slightly last week, making buying a home even more appealing as well as affordable.  

The list/sale price ratio has been fairly consistent since last year, being close to 100%.  Again, this data is skewed slightly due to the million dollar + condo listings that aren’t seeing that kind of ratio (the million + residential home market, however, is seeing a 100% + list/sale ratio).

Months of inventory was up slightly in July to 1.8 months, although August is currently looking at 1.54 months of inventory.  This is definitely a hot market, with no signs of it slowing down anytime soon.  It is a great time to get into a condo either as a  first time home buyer or as an investment property.  The listing below is one of the many great condos available in Kirkland…

 

 

 

Open House (1)

 

Stay tuned for a post on financing and a big announcement this week! I have partnered with Full Circle organic produce delivery for an opportunity to give my followers! So, if you haven’t already…follow my blog via email for a chance to win some awesome, organic produce delivered to your door! Have a great week everyone!

 

 

 

 

 

 

Spruce Up Home Value: Low Cost Bathroom Updates!

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Over the past few decades, the kitchen was the average home buyers focal point when buying a home.  That is not the case anymore, in 2014 bathrooms are more important to buyers than kitchens.  That being said, an additional bathroom, even a half bathroom, adds significant value to your home.  Growing up with a real estate Appraiser as a father, I heard horror stories about homeowners irate over the news that their special remodel project added ZERO value to the resale of their home.  Many times, it’s hard to differentiate between what we think is value based on our emotional involvement vs. what the market wants, the difference is sometimes surprising!

For starters, A half bath may add up to 10.5 percent to a home’s value, while a full bath can tack on an additional 20 percent. Of course, the amount of additional value you will receive varies according to the home’s other features.

Tip: If you’re on a tight budget and can’t afford a bathroom addition, give the existing bathrooms a little TLC with a few of the following suggestions.

Install a Dose of Tile

Install a dose of tile! Give your bathroom sink an upgrade with some intentional detailing. Rather than tiling a whole tub surround or wall, add just a border of tile above the sink vanity. Here, elegant blue, white, and brown tiles introduce color and pattern into the bathroom. The small mosaic tiles make the vanity area look luxurious and rich.

Update Cabinet Hardware

Cabinetry’s handles, hinges, and doorknobs are the final touches and style setters for any vanity. Luckily, they’re simple to replace whenever you want a fresh look — and cabinetry hardware is available at any price point. Give your cabinet doors and drawers a good cleaning before installing new hardware. Or freshen them with paint or stain to best display the new accents.

Install Wainscoting

Give bathroom walls interest by adding wainscoting. Crisp white-painted wainscoting provides contrast to the sunny yellow hue used on the upper portion of these walls. For humid rooms such as the bathroom, look for paints treated with mildewcide to eliminate worries about mildew.

Update Light Fixtures

Refresh a tired bath by replacing outdated light fixtures with modern versions. Online you’ll find hundreds of sconces that cost less than $100. For an even thriftier change, look for replacement shades to update the fixtures you have. If you like the style of what you have but the metal finish doesn’t work with your decor, tape off the surrounding areas and give the fixtures a fresh coat of metallic spray paint!

Replace Fixtures

Swap outdated light fixtures, medicine cabinets and faucets for up-to-the-minute versions. Fashion-forward fixtures will make your bath feel fresh and fabulous, and they can draw attention away from less-desirable areas of the bath.

There are so many inexpensive ways to update your bathroom, a fresh coat of neutral colored paint goes a long way and don’t forget to check the fan! That’s a simple update that can add functional value to your bathroom, skimping on quality can hurt in the long run.

Market Mondays: “Around the Sound”

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It’s Monday! That means it’s time for another look at what’s happening in the real estate market.  Last week was a busy week for us, lots of sellers and buyers and great deals coming up, even in what is considered a “sellers market”.  This week, I wanted to paint a picture of what is happening outside of King/Snohomish county and include Pierce, Kitsap, Thurston, Island and Skagit counties.  

If there is a certain market you are interested in specifically, leave a comment and I will feature that market in the coming weeks or contact me directly with any questions you may have..  

 

If you look at median sale prices of homes in July 2014 vs. July 2013, prices are up from a year ago everywhere except for Skagit county.  Snohomish county saw an increase of 10%, a bigger jump than any of the others.  With continued job growth, a growing economy, competitive mortgage rates and affordable housing, this will likely keep the market in an upward trajectory.  Overall, homes listed for sale are up 12.9% from this time last year and closed sales are up 7.6%.  

The graph below demonstrates the amount of homes for sale vs. closed sales.  Currently, we are at 2.7 months of inventory when all counties are included in the data.  This changes slightly, however, when each county is displayed individually.  2.7 months inventory is still considered well below a “balanced market” and although buyers are still finding themselves in competitive, multiple offer situations, the inventory is slowly improving showing no signs of the bubble experienced before the subsequent crash.  

Closed sales fell in July edged up just barely compared to a year earlier in the close-in counties and Kitsap. Thurston saw the biggest sales gain, up 7 percent from last year. Island, Skagit, and Whatcom all saw sales drop from last year’s levels.

According to the Seattle Times, Seattle is the fastest growing city in the US, with a 2.8% increase in population in 2013!  Of course, I can see why people would want to move here! Beautiful scenery, a healthy economy, job growth, mild weather…..the list goes on.  For homeowners or those interested in buying a home in the Seattle area, there’s no better time to be part of this exciting market!  

 

 

 

Market Mondays: Edmonds

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Edmonds is one of Washingtons most picturesque cities, with views of the Puget Sound, Olympic Mountains and Cascade Range.  One can see why it has become one of the Seattle area’s most desired locations to live. Come visit me this weekend at A Taste of Edmonds! A Taste of Edmonds is August 8th, 9th and 10th as well as Washington’s 3rd largest 3 day festival.  There will be arts and crafts, 35 food vendors, entertainment, beer/wine gardens as well as myself with John L Scott Real Estate if you are interested in getting to know me and the area a little more or know someone who is!

Scroll down the page for a snapshot of how home sales and prices have trended in Edmonds over the past  fifteen months. You’ll see sales and inventory levels, $ per square foot values, and inventory levels expressed in months of supply. I use $ per square foot averages as an indicator of how the overall market is trending. Bear in mind the percentages will differ within specific price ranges. It’s interesting to follow the “Pending” sales trend lines which is an indicator of which direction the market is heading. Note that June sales are down 10% from 2013, while Pending are up over 40%. That’s huge!

As of August 4th, the last 30 days have seen an increase in pending sales from 28 to 34 pending sales and a jump from 24 sold in June to 41 sold in July! August will be another big month of closed sales! 

Feng Shui Basics: How your space affects your mood

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How often have you walked into a room in your own home or someone else’s and thought things just didn’t “feel” right? Or, perhaps there are certain rooms that also feel exceptionally inviting and open.  It’s easy to forget how important the spaces we live in are to our health and well-being.  The Following are some insights into home decoration and how it can make you more peaceful, productive and happy.

Color:

Colors can alter your mood. It’s important to play around with colors to find the right balance for you. Here’s a quick color to mood chart for reference:

Red: Passion, power, stimulation, and high energy. (Suggestions: dining room, bedroom, or upholstery)

Orange: Creativity, happiness, enthusiasm, and communication. (Suggestions: accenting, throw-overs, or pillows)

Yellow: Cheerfulness, light-heartedness, and mental stimulation. (Suggestions: kitchens, not bedrooms)

Green: Growth, harmony, nature, safety, peace, and healing (Suggestions: bedroom, bathroom, or office)

Blue: Trust, loyalty, confidence, faith (Suggestions: accents around the house and in bedroom)

Purple: Romance, luxury, nobility, wealth, spirituality, and motivation (Suggestions: bedroom)

Black: Power, independence (Suggestions: picture frames)

Brown: Stability, humility (Suggestions: living room)

White: Cleanliness, vibrancy (Use sparingly; too much white can feel cold)

Use this as a general reference and then play around. Look at a color, its various tones, and notice your mood. Have fun and mix and match.

Furniture and Decor:

Many people simply put everything against the wall when it comes to furniture placement. I have been guilty of doing this after moving, leaving artwork to sit against the wall and allowing our busy lives to prevent us from taking care of one of our most important spaces. What I didn’t realize fully was that this creates negative energy and dead space.

Energy must always have flow, so you don’t necessarily need to make everything symmetrical at all times. Balance is more important than symmetry. The rule of thumb is to think outside the box and to decorate in a way that may not necessarily be the most obvious. Mix furniture and decor with a wide range of variety, vintages, and textures.

When it comes to the decor and furniture, if you want a strong and independent look, you may consider incorporating circular, oval, and arched shapes along with granite, marble, and flagstone. Artwork and decor with metal, stone, brass, iron, copper, or gold is integral as well.

For leadership and creating a healthy emotional interaction between people, it is suggested to use artwork that involves sunshine or any form of natural illumination along with pyramids, cones, natural sunlight, feathers, silk, or wool.

For more order and sensuality, use furniture with squares, rectangles, ceramic, tile, and brick.

For creativity, intuition, and flexibility, integrate more wood, floral upholstery, wall coverings, drapes, pillars, and columns.

For a more relaxed and spiritual environment, integrate anything with water, crystals, glass, or mirrors.

It’s important not to overdo too much of any element. Use variety and balance. HAVE FUN!

Using Scent to Uplift your Home Environment:

One of the greatest senses we have is smell. Smell is like touching or tasting something from a distance. It’s a subtle thing that can have a huge impact on our mood.

I am a huge fan of candles and notice that I am drawn to different scents at different times and seasons. Start lighting more candles, incense, and oils to produce pleasing smells throughout the day. You can also add more flowers like jasmine, violets, and gardenias throughout your home.

What’s wonderful about creating a pleasing home environment is that it’s not necessary to spend a fortune to make your space inviting and clear. Less is more. Just start experimenting with what feels good to you!

It’s time to take a look at your space so that you can remove anything that brings negative energy, add things that bring you positive energy, and that makes your family feel comfortable and happy around the house.

Remember, your home is your sanctuary.