Buyer Demand Surging as Spring Market Begins
Last fall, some predicted that the 2019 residential real estate market would be a disaster. There was even belief we might experience a housing crash like the one that occurred during the last decade.
However, according to two separate reports*, buyer demand dramatically increased over the last three months, leading into this spring buyers’ market (the March data is not yet available).
Both the ShowingTime Showing Index and the National Association of REALTORS Buyer Traffic Index show that buyer demand has increased in each of the last three months.
Why the increase in demand? Increased buying power.
According to the National Association of Realtors’ Economists’ Outlook Blog, purchasing a home has become more affordable, which has led to increased demand.
“Due to the combination of falling home prices and mortgage rates, the income needed to make an affordable mortgage payment (mortgage no more than 25% of income) on a median-priced home with 10% down payment and 30-year fixed rate mortgage decreased from $60,425 in June 2018 to $53,783 as of February 2019, and the difference of $6,642 represents a gain in buying power because one can afford a home purchase at a lower level of income.”
Bottom Line
It appears the spring buyers’ market is going to be much stronger than many had projected. Whether you are selling or buying, this is important news.
Are Low Interest Rates Here to Stay?
Interest rates for a 30-year fixed rate mortgage have been on the decline since November, now reaching lows last seen in January 2018. According to Freddie Mac’s latest Primary Mortgage Market Survey, rates came in at 4.12% last week!
This is great news for anyone who is planning on buying a home this spring! Freddie Mac had this to say,
“Mortgage interest rates have been steadily declining since the start of 2019. These lower mortgage interest rates combined with a strong labor market should attract prospective homebuyers this spring and could help the housing sector regain its momentum later in the year.”
To put the low rates in perspective, the average for 2018 was 4.6%! The chart below shows the recent drop, and also shows where the experts at Freddie Mac believe rates will be by the end of 2019.
Bottom Line
If you plan on buying a home this year, let’s get together to start your home search to ensure you can lock in these historically low rates today!
“Tony’s knowledge base about real estate in general is outstanding.”
Tony’s knowledge base about real estate in general is outstanding. He helped us buy our new house at a good price for us and he seemed to have a contact to fix any problem we needed to address in our new house. We felt Tony went above and beyond to call a roof guy for us to get a roof replacement during a meeting about selling our house. When selling our house, he followed the market closely and was able to use a strategy that attracted multiple bids. We accepted an offer well over asking price, which was much more than we had hoped for!
Dan and Heidi Morris
Purchased in Redmond March 2019 & Sold in Edmonds April 2019
Slaying the Largest Homebuying Myths Today
Some Highlights:
- The average down payment for first-time homebuyers is only 6%!
- Mortgage interest rates have been on the decline since November! Hop in now to lock in a low rate!
- 88% of property managers raised their rents in the last 12 months!
- The average credit score on approved loans continues to fall across many loan types!
Home Buyer Demand Will Be Strong for Years to Come
There has been a lot written about millennials and their preference to live in city centers above their favorite pizza place. Some have even gone so far as to say that millennials are a “Renter-Generation”.
And while this might be true for some millennials, more and more research has surfaced that shows for the vast majority, owning a home is a major part of their American Dream!
New research shows that 66% of millennials who currently rent are determined to buy a home! Seventy-three percent of those surveyed by Pulsenomics plan to buy a home in the next five years, with 40% planning to do so within the next two years!
“Millennials want to own a home as much as prior generations,” Ali Wolf, Director of Economic Research at Meyers Research says. “We saw millennial shoppers scooping up homes in 2018—and 2019 will be no different.”
Bottom Line
Are you one of the millions of renters who are ready and willing to buy a home? Let’s get together to determine your ability to buy now!
Why Pet-Friendly Homes Are in High Demand
One of the many benefits of owning your own home is the freedom to find your ‘furever’ friend. By pointing out the aspects of your home that make it ‘pet-friendly’ in your listing, you’ll attract these buyers, rather than alienating the 68% of American households that have a pet!
If you are one of the many homeowners looking to list your home for sale, how do you stand out to the millions of pet parents searching for their dream home?
Whether a dog person, a cat person, or someone who prefers the company of another pet species, 99% of pet owners say that they consider their animal to be family. When finding a home, 95% of animal owners believe it is important that a housing community allows animals.
A study by the National Association of Realtors (NAR) revealed that there are many aspects of the home buying, selling and owning experience that have been greatly impacted by our love for our pets.
This should come as no surprise, as $72 billion was spent on pets in the U.S in 2018. NAR’s President William E. Brown shed some light on the impact of pet owners and their home search.
“It is important to understand the unique needs and wants of animal owners when it comes to homeownership. REALTORS® understand that when someone buys a home, they are buying it with the needs of their whole family in mind; ask pet owners, and they will enthusiastically agree that their animals are part of their family.”
The Power of Pets When Choosing the Right Home
- 89% of pet owners say they would not give up their pet due to a housing restriction
- 81% of Americans say their pets play a role in their housing situation
- 31% of animal owners have refused to put in an offer on a home because it wasn’t a good fit for their animals
- 19% of Americans say they would consider moving for their pet
- 12% percent have moved for their pet
New home builders have actually begun installing retractable pet gates that tuck away neatly inside door jams as a highly requested feature in new homes to attract pet-parents.
So, if you are a homeowner looking to sell in today’s pet-friendly environment, point out the features of your home that will attract pet owners:
- Fully fenced in backyard – (91% of pet owners ranked this as the most important feature of a home to accommodate their pet)
- Locations of dog parks/walking paths/pet-friendly beaches in the area (71% ranked this as the top feature of any neighborhood they would consider)
- Proximity to veterinarians/groomers/pet supply stores (31%)
Bottom Line
Americans love their pets and will look for pet-friendly features in the home they wish to buy, so take advantage of this knowledge by pointing out your home’s ability to meet their needs.
Home Value Appreciation Stops Falling, Begins to Stabilize
The percentage of home price appreciation on a year-over-year basis has decreased each month for over a year. The question was how far annual appreciation would fall. It seems we may now have the answer.
In a recent post on the National Association of Realtors’ Economists’ Outlook Blog, it was revealed that Realtors are starting to sense that home values are beginning to stabilize and that we may see appreciation beginning to accelerate again:
“About 3,000 REALTORS® who responded to NAR’s February 2019 REALTORS Confidence Index Survey had more optimistic— although modest— home price growth expectations over the next 12 months. Respondents expect home prices to typically increase by 1.9 percent nationally, up from 1.4 percent in the January survey.”
The thinking that home appreciation has bottomed-out was also confirmed in two additional housing reports recently released:
CoreLogic Home Price Index – The analysts at CoreLogic increased their projection for home appreciation for the next twelve months to 4.7% as compared to the 4.6% they projected in their previous report.
The Home Price Expectation Survey – In the 2019 first quarter survey, the nationwide panel of over one hundred economists, real estate experts, and investment & market strategists increased their projection for home value growth in 2019 to 4.3% compared to the 3.8% increase they had projected in the fourth quarter of 2018.
Bottom Line
Agents working the business every day, one of the premier data companies in the real estate space, and one hundred housing experts all agree: home price appreciation has ended its decline and looks to be stabilizing… and may even accelerate.
April 2019 – Eastside, King & Snohomish County Real Estate Market Update – Housing Trends and Current Pricing
Watch the latest episode of our Eastside, King & Snohomish County Real Estate Market Update for a recap on our local housing market. We will dive into current inventory levels and housing prices for homes in the Eastside, King & Snohomish County Washington.
Would you like to know more about our local real estate market? Contact us here. We are happy to help!
April 2019 – Woodinville Real Estate Market Update – Housing Trends and Current Pricing
Watch the latest episode of our Woodinville Real Estate Market Update for a recap on our local housing market. We will dive into current inventory levels and housing prices for homes in Woodinville Washington. Would you like to know more about our local real estate market? Contact us here. We are happy to help!