Washington State NWMLS Market Snapshot for July 2019

The newly released MLS figures show last month’s closed sales reached a 12-month high. Member-brokers also reported the number of new listings (11,193) nearly matched pending sales (11,139).

A closer look at new listing activity shows last month’s total was down from both the previous month (-6.7%) and the same month a year ago (-8.2%). The total number of active listings of single family homes and condos, at 16,787, was about the same as June’s inventory (16,680) and the selection of a year ago (16,773 listings). A comparison of the 23 counties in the Northwest MLS report shows about half the counties have more inventory than a year ago, and half have less.

System-wide there is 1.76 months of inventory, with King, Kitsap, Mason, Pierce, Snohomish and Whatcom counties all reporting less than two months of supply.

Pending sales declined slightly from June (11,139 versus 11,573) but showed a 1.6 % gain on the year-ago total of 10,965 mutually accepted offers.

Closed sales were up from both the previous month and the same month a year ago. Northwest MLS brokers tallied 9,540 closed sales last month-the highest volume since June 2018 when they reported 10,072 completed transactions.

Year-over-year (YOY) prices rose nearly 3.6%, but declined about 2.9% from June. The area-wide median price for July’s completed transactions was $429,900; a year ago it was $415,000. Eighteen of the 23 counties in the latest report showed year-over-year price appreciation.

Advertisements

What the Fed’s Rate Cut Means for Buyers

The Federal Reserve recently cut interest rates for the first time since the Great Recession took hold in 2008, though the move is not likely to deliver significant juice to an already favorable borrowing environment for home buyers. The federal funds rate, which is what banks charge one another for short-term borrowing, will now hover between 2% and 2.25%, according to news reports.

The Fed says its decision to lower interest rates, which comes after months of pressure from President Donald Trump, is designed to stave off the threat of an economic downturn. But it’s unlikely to translate into additional mortgage savings for many buyers. With the interest rate for a 30-year loan already hovering below 4%, the Fed’s move may be more meaningful for buyers with other types of financing, says Lawrence Yun, chief economist for the National Association of REALTORS®. “Many borrowers will benefit, especially those with adjustable-rate mortgages and commercial real estate loans,” Yun says. “The longer-term 30-year fixed-rate mortgages will see little change in the near future because they had already declined in anticipation of this latest move by the Fed.

“These low interest rates will partly help with housing affordability over the short-term. Both rents and home prices have been consistently outpacing income growth. The only way to mitigate housing-cost challenges as a long-term solution is to bring more supply of both multifamily and single-family homes to the market,” adds Yun.

Still, lower borrowing costs are helping buyers manage rising home prices. For example, buyers who spend $1,500 on monthly mortgage payments can afford to purchase a $402,500 home this year compared to $367,500 last year, when mortgage rates averaged 4.57%, according to realtor.com®. “Last year, buyers would have needed an additional $145 a month on top of the $1,500 to afford a $402,500 home,” says Danielle Hale, realtor.com®’s chief economist.

In some locales, buyers’ money can stretch even further. “An extra $35,000 in purchasing power, depending on where you are in the country, can really make a difference to buyers today,” Hale says. “It still counts, even with home prices up 6% nationally. That increase in purchase power is greater than the national price increase.”

Source: REALTOR® Magazine

6102-6104 85th St SW, Lakewood, WA 98499

$409,900

Duplex: 4 bedrooms; 3.5 bathrooms; 2,888 square feet

Awesome Investment Opportunity! Well maintained duplex with spacious 2 bedroom, 1.75 bath units. Newer roof, garage doors w/ openers, and appliances. Updated windows & insulation. Well maintained synthetic stucco, brick chimneys & sprinklers. Tenants appreciate the large master bedrooms w/ double closets, living rooms w/ wood fireplaces, utility rooms w/ sink & cabinets, extra deep & wide garages, and large fully-fenced professionally maintained yards. Both long term tenants are month-to-month.

Flyer

Virtual Tour

From ‘Smart House’ to Smart Homes: How Today’s Tech Compares to the Iconic Disney Movie

Voice-activated music. Touch-screen powered appliances. An omnipotent, but friendly, virtual assistant providing homework help.

When “Smart House” debuted on the Disney Channel in 1999, its portrayal of a family living in a home powered by artificial intelligence seemed far-fetched. Watching it 20 years later, it’s a surprisingly prophetic portrayal of the way technology has become fully integrated into our daily lives.

In case you missed this made-for-TV masterpiece, the plot is simple: A family wins a home featuring an artificial intelligence (AI) system named P.A.T. (Personal Applied Technology). P.A.T. is programmed to take care of everything from house cleaning to meal prep, and can help coordinate outfits, give basketball advice and throw an epic party complete with mood lighting and cleanup. Chaos ensues, though, when P.A.T. is frighteningly overprotective after being reprogrammed to serve as the family’s maternal figure.

In honor of the 20th anniversary of “Smart House,” here’s a look at the technology covered in the film and how it compares to today.

Yep, homes can be controlled by AI

Similar to P.A.T., smart speakers like Amazon Echo and Google Home can control everything from music to lights with a few voice commands (and strategically placed smart plugs, if needed). But whereas P.A.T. was portrayed as the home’s central operating system, today’s smart homes are usually more of a combination of apps, gadgets and high-tech appliances.

The advantage is that homeowners can customize the technology to fit their lifestyle. It also means the tech can typically move with homeowners if they relocate.

Safety technology gives smart-home owners peace of mind

When a misguided P.A.T. attempts to lock the Coopers inside indefinitely, she blocks the windows with steel and adds an electrical force field to the home’s doors.

True, smart-home technology can greatly enhance home security, but it’s much more subtle.

For example, the If This Then That app is able to trigger an empty home’s interior lights as soon as the owner approaches. The Ring video doorbell helps residents monitor (and chat with visitors to) the front door. And many new home security systems, smoke alarms (check out Home Advisor’s breakdown of options), garage doors and surveillance cameras feature a virtual assistant integration, which means they can be controlled and monitored by a phone app or smart speaker.

Even our pets are avid technology enthusiasts

Considering the fact that keeping pooches happy is one of the primary reasons millennials buy homes, the movie’s inclusion of pet technology (the family dog is entertained by P.A.T. while the family’s away) is spot on.

One piece of especially buzzworthy pet technology is Furbo, an interactive pet camera that tosses treats to pets stuck at home. Then there are the pet doors that open only when triggered by an ultrasonic signal emitted from a special collar, blocking access to intruders. The doors can also be programmed to remain locked at certain times of day, keeping Fido and Fluffy inside for the night.

Technology can create the perfect mood

One of P.A.T.’s coolest features in the movie is her use of virtual reality to transport the Coopers to Cape Cod or a serene farm complete with a rooster’s wake-up call. While VR technology gets more sophisticated every year, full-screen virtual experiences don’t come standard in homes just yet. However, several pieces of smart appliances can help change the mood in your home.

Philips Hue is a line of smart lamps and light bulbs that can be timed to adjust from bright to softer lighting as the day goes on, mimicking natural daylight patterns. The Nest thermostat automatically sets the temperature in your home to your desired preferences, turns the temperature down when it senses you leave the home, and can be controlled from an app for on-the-go changes.

One downside of smart home technology? Energy drainage. But there’s even a “smart” solution for that. The Emporia Vue system helps homeowners monitor their energy usage through an app on their phone to reduce monthly costs and identify potential issues before they require major repairs.

Even as our lives become increasingly inseparable from technology, a home is much more than its futuristic appliances. If you’re looking for a home, working with an experienced professional such as myself is a smart move!

RE/MAX National Housing Report for June 2019

June Sales Post Unusual Decline
as Median Price Reaches All-Time High

Typically the strongest month for home sales, June saw closings decline 4.7% from May and 7.8% from June 2018, according to the RE/MAX National Housing Report. Going in the opposite direction, June’s Median Sales Price of $276,000 was an all-time high in the 10-year history of the report.

June has recorded the most sales each of the last five years (July led 2013 sales). This is only the second June in report history to have fewer sales than May. With sales slowing, June inventory increased 1.3% over June 2018, marking the first year-over-year rise in June inventory in the report’s history. Moreover, inventory grew for the ninth consecutive month, and the report’s 54 metro areas had the most units for sale since August 2016.

Read the full article…

Watch the 40 second summary video…

Washington State NWMLS Market Snapshot for June 2019

Inventory, pending sales and prices all increased during June compared to a year ago, according to the latest report from Northwest Multiple Listing Service. The same report, which covers 23 counties in Washington state, shows year-over-year drops area-wide in both the volume of new listings and closed sales.

31003 14th Ave S #E-20, Federal Way, WA 98003

$130,000

1 bedroom + den/office; 1.75 bathrooms; 831 square feet

Don’t miss this opportunity! Enjoy unlimited potential to create the ground floor end unit of your dreams! You’ll appreciate plenty of parking & a laundry rm behind E bldg. This beautiful & well maintained lakeside community has a clubhouse, gazebo, pool, hot tub, sauna & exercise rm. Enjoy sunsets & geese on peaceful Easter Lake from the gazebo or clubhouse. Very near stores, restaurants & main bus line. Ideal for investors with no rental cap. This unfinished condo requires cash or rehab loan.

Flyer

Virtual Tour