Eastside Real Estate Blog

Why This Winter’s ‘Slow’ Home-Selling Season May Be Hotter Than Ever

November 9, 2020 by Kathy Reichle Leave a Comment

Winter is traditionally real estate’s slow season. Between the cold weather and the holidays, the housing market typically plunges into a hibernation of sorts, with both buyers and sellers shelving any major real estate moves until spring.

This winter’s real estate market, however, is shaping up to be unlike any other before it—and, contrary to what some may have feared, is slated to be an excellent time to sell a home. In fact, Lawrence Yun, chief economist at the National Association of Realtors, predicts “it will be one of the best winter sales years ever.”

So if you’ve assumed you should put your home-selling plans on hold until spring, read on for a surprising reality check on all the reasons this winter could be a great time to put your house on the market.

Pandemic lockdowns have created pent-up buyer demand

While spring is typically real estate’s busy season, the “silent spring” of 2020 saw the housing market grind to a near halt amid pandemic-mandated lockdowns. This, in turn, created pent-up demand to purchase property that is only now being unleashed.

Why? Chalk it up to a perfect storm of low mortgage interest rates, sparse housing inventory, plus a pandemic that’s fundamentally changed how, when, and where buyers are shopping for homes.

“We currently see buyers sticking around in the housing market much later than we usually do this fall,” says Danielle Hale, chief economist at realtor.com®. “If that trend continues, we will see more buyers in the market this winter, too. So this winter is likely to be a good time to sell.”

“There are plenty of people in the pipeline ready to hit the market this late autumn and winter,” Yun agrees.

Many real estate agents have noticed this glut of eager buyers first-hand.

“Winter is usually a slower season, but this year we’re not seeing any sign of letting up,” says Matt van Winkle, a real estate broker and owner of Re/Max Northwest Realtors in Seattle. “The selling season was delayed because of COVID lockdowns and stay-at-home orders, so several months of usual busy sales periods were delayed.”

This buyer demand likely won’t wane anytime soon.

“We will see an extended purchase season in 2020 and into 2021,” says Shelby McDaniels, channel director of corporate home lending at Chase.

Lockdowns are forcing many buyers to upsize their homes

COVID-19 has not only created pent-up demand, but many buyers are also in the market purely because they’re working/schooling from home and realizing their space is no longer big enough—particularly now that the temperature’s dropping so they can’t easily escape to their back patio to catch up on emails alone.

“With people spending so much time in their homes, including working from home and virtual schooling, there’s a great emphasis on being happy there,” says Matt Curtis, owner of Matt Curtis Real Estate, in Huntsville, AL. Lack of space is a complaint agents hear more often now.

And if people are allowed to continue working from home rather than commuting to an office, they might also realize that they can shop for homes farther outside cities—great news for home sellers who live in more remote areas.

Housing inventory is low

Although buyers are plentiful, the number of homes for sale is way lowerthan usual. According to realtor.com’s Monthly Housing Market Trends Report, in September, national housing inventory declined 39% over last year.

“Because the number of homes available is currently at a record low, even if we see some improvement, which I expect, there will still be relatively few homes for sale,” Hale says. “That will keep upward pressure on home prices and help ensure that homes continue to sell quickly.”

“Inventory is low, so the overall advantage is with the seller,” agrees Yun.

Tracy Jones, a real estate agent with Re/Max Platinum Realty in Sarasota, FL, says buyers have so few homes to choose from these days that they’re feeling forced to make quick decisions about whether to make an offer, or risk losing out on the chance. Nationally, homes spent an average of 54 days on the market in September, 12 fewer days than last year, according to the realtor.com trends report.

“The buyers I have worked with this year only had a handful of homes to look at,” Jones says. “They had no time to wait and talk about it, and they had to fight other buyers if they wanted to buy them.”

Sellers can get top dollar for their homes

It’s simple supply and demand: Low supply and high demand are bound to drive up home prices, so sellers stand to make a killing.

Across the country, median home listing prices jumped 11.1% in September compared with a year ago, to $350,000, according to realtor.com. Price per square foot increased by 13.9%.

“Sales prices and home values remain strong,” McDaniels says. And since there are so many offers on the table, “sellers can call the shots regarding terms of contract and repairs.”

The only challenge sellers face with such low inventory—if you can even call it a challenge—is dealing with too many offers at once, says Curtis.

“The challenge they face is navigating multiple offers and not accepting an offer too quickly to help ensure they get the most money for their home,” he says.

Mortgage interest rates are low

Although buyers will face stiff competition, it’s not all bad news for them. For one, despite high home prices, record-low interest rates mean they’ll save a ton of money.

Interest rates on a 30-year fixed-rate loan were 2.8% as of Oct. 22, according to Freddie Mac.

This “boosts buyer home purchasing power,” Hale says. “In fact, despite double-digit increases in home prices this year compared to last year, today’s home buyers are likely actually paying slightly less on their mortgage each month, thanks to much lower mortgage rates.”

The Federal Reserve has continued to lower interest rates this year to keep the economy going during the COVID-19 crisis, says McDaniels.

“Even before the COVID-19 pandemic, economists and real estate professionals predicted mortgage interest rates would remain below 4% in 2020,” she says. “This means buyers that might have waited will consider entering the market this year.”

Any economic shift likely won’t be felt until spring

Although unemployment continues to rise due to COVID-19 layoffs, Hale says this could affect the real estate market, but the effects likely won’t be felt for a few months.

“A worsening unemployment rate would lead to a slowdown in the housing market and home sales, but I don’t expect that to happen immediately, more likely in the spring,” Hale says. This could create a slower start to the spring home-buying season.

Plus, if another round of stimulus money appears, this would fuel consumer spending.

“This would be a good thing for the housing market and the economy at large,” Hale says.

By Erica Sweeney

GIVE YOUR KITCHEN A MAKEOVER WITHOUT SPENDING A FORTUNE

October 29, 2020 by Kathy Reichle Leave a Comment

HANGING YOUR COOKWARE

One of the easiest changes to make is to take your pots and pans out of the cupboard and hang ‘em high. Not only does it look great and add a rustic touch, but there are also actually practical benefits to this as well. Not only is it better for your back to not be bending up and down to access low cupboards, but stacking your cookware can lead to scratches and chips. Hanging your pots and pans makes for an aesthetically pleasing position that both the cookware and your back will thank you for in the long run. Sit back and daydream about your own private chef from Food Fire + Knives taking over in the kitchen.

QUAINT COOKBOOKS

It’s no secret that the only new recipes being used in most home kitchens these days are being read off a smartphone or tablet screen, but that can actually work in your favor for this next tip. As old cookbooks are rendered obsolete, more are piling up in thrift stores and charity shops waiting to be found cheap. There’s a certain charm in these old (once quite pricey) tomes that a small, carefully curated collection in your kitchen can pull a lot from.

REPLACING CUPBOARD HANDLES

It’s amazing how much the look of a room can be changed with even the smallest of updates. If you’re lucky enough to work with a partner like Econstructioninc.com to do a full kitchen remodel, go for it. Or, cupboard handles are one of the easiest upgrades that anyone can do, and renters can rejoice at this 100% reversible renovation. And you’re not just limited to the selection at the local hardware store, smaller retailers offer great options.

FRESH COAT OF PAINT

This is easily the most costly item on this list, but if the colors aren’t right, there’s only so much the surface updates will be able to influence in the room. This doesn’t just go for the kitchen walls, either – check out how easily a repainted cabinet can transform the entire space. If you’re a renter, you’ll of course want to check in with the landlord before you start getting the paint brushes ready, but often it’s just a matter of promising to repaint it back to the original when the lease is over.

With all of these tips you can be sure to breathe a new lease of life into your kitchen, ensuring some fresh vibes to go with the food you’ll be preparing. What’s more, with a stylish kitchen, you’ll be wanting to show it off and invite some friends over for dinner. Dig in!

Five Ways The Pandemic Has Influenced Interior Design Trends In 2020

October 13, 2020 by Kathy Reichle Leave a Comment

The pandemic has changed life as we know it in every way, but especially how we live in our homes. In a short period, the home has become a place to work, exercise, relax, and even attend school. This has been the single biggest influence on design trends this year.

While many people have moved or are beginning to renovate, most of us are simply doing the best with what we have. After all, due to shutdowns, shortages, and demand for design-related services, there really isn’t an alternative. From the reality of COIVD life, to creating as pleasant an environment as possible, here are five ways the pandemic has influenced interior design trends in 2020.

Open Floor Plans Are On The Way Out

Had most homeowners, real estate agents, and interior designers been asked in January if they thought the open concept was here to stay, the answer would likely have been a resounding yes. But if you asked the same group in September, the answer might have been a little different. While open floor plans aren’t falling entirely out of fashion, they’re no longer as practical and desirable as they once were. “[My clients] still want big kitchens that open on to a family room—but home offices, outdoor spaces, and Zoom rooms (or at least a dedicated space for Zoom meetings) are big on wish lists,” interior designer Caitlin Scanlon of Caitlin Scanlon Design tells me.

Gavin Brodin of Brodin Design Build has received similar feedback. His clients have been looking for ways to create luxury upgrades to transform their homes into sanctuaries with amenities like meditation and massage rooms as well as secret gardens. But they want to limit the amount of money they spend on these projects. “During this time, many clients need to stay on a budget, so it’s a challenge to make a space beautiful and stay within a practical budget,” he tells me.

But the pandemic has truly had the biggest impact on those living in smaller spaces such as apartments. “All of the activities that we’re doing at home have kind of changed the game a little bit,” says Home Director of Apartment Therapy, Danielle Blundell. “[We’re] looking to actually have defined spaces again, and some semblance of privacy and compartmentalization for things like working from home, exercising and people being home at the same time and taking calls.”

Blundell has also noticed that when it comes to sectioning off spaces— people are becoming a lot more creative, using everything from divider screens to curtains and partitions to carve out dedicated zones.

Home Offices Are Now Just Offices

While some people have gone back to their regular offices at least part of time, most of us are still working from home, including CEO and founder of Manna Kadar Cosmetics, Manna Kadar. She has no plans to return and wants her employees to remain home as well. “We will eventually get back into the office in the safest way possible, but we have adapted to this new normal and won’t rush into it,” she tells me.

Manna Kadar's home office — Manna Kadar’s home office

MANNA KADAR

Kadar has also used this time to make a few upgrades to her home office “It’s been important to make my at-home working environment just as beautiful as my office: an aesthetically pleasing clean, private area to focus!”

In addition to rearranging her furniture, Kadar added additional warm neutral elements and plants to the space. She also likes to work with her pets by her side.

Virtual Interior Design Is Booming

Lisa Landers, stylist, and owner of Swirl, a popular southern California clothing boutique chain closed on her new home just as the shutdown was beginning. She needed new furniture and realized that using a virtual interior design service wasn’t just a practical choice, it was essentially her only choice because all the stores were closed.

“Modsy seemed like the next best option,” she tells me. “After submitting multiple photos of our space, links to furniture we already had that we wanted to incorporate, and filling out a thorough design questionnaire, our beautiful plans were submitted to our inbox.”

Landers collaborated with her designer over the phone, as well as online. “We could swap out pieces in the actual plans and see exactly how they would look in our space.”

She ended up incredibly happy with the results. “We loved this experience so much that we would do it again.”

But virtual interior design isn’t limited to using services like Modsy, or it’s major competitor Havenly. Scalon, along with many other independent interior designers is getting plenty of requests for Zoom consultations and e-design services.

Happiness Is A Decorating Choice

It’s not a surprise that many people are trying to create uplifting moods environments in their homes right now. This is especially true when it comes to decor and accessories. “Maybe it’s a wallpaper with a vibrant pattern or a ceramic face that’s sort of a silly, squiggle shape. It’s nostalgia that could be a retro-inspired refrigerator or even a modern quilt. It can be that things can touch every room in the home, and furnishings that just bring you comfort and joy,” says Blundell.

While we’re not exactly saying bye to black, rich pops of color are very much on-trend right now. For example, Scanlon’s clients have requested bolder hues. “After hunkering down looking at the same (mostly white walls) I’m using a lot saturated paint colors—moody for some rooms, bright and uplifting for others. Clients are craving variety in their experience of home!

Retailers including Alix Greenberg, who is the founder of ArtSugar have also noticed an increase in demand for bright, kitschy items. “My customers want things that are happy and uplifting! And I understand this too! Because while we are all stationed at home, there is nothing like a pop of color on your wall to make your day a little brighter.”

During the pandemic, ArtSugar’s top selling products have been their bright and colorful acrylic trays, as well as acrylic mountable smilie faces and gem stone wall art. In addition to that, the Home Sweet Home Cutting Board has also been incredibly popular.

Home Is More Important Than Ever

Being forced to stay at home has made many of us realize just how important interior design really is. “I personally was able to realize how much I could do from home within my own business,” says Landers. “With Amazon, virtual meetings, workouts, and food delivery it really made being at home all the time more palatable and we are willing to invest more into making it our sanctuary because home is not only where the heart is…it’s where everything is now.”

By: Amanda Lauren

Forbs

Preparing Your Home for Sale During the Pandemic

September 25, 2020 by Kathy Reichle Leave a Comment

Despite the ongoing coronavirus pandemic, the real estate market must go on. Homeowners still need to sell, house-hunters still need to buy, and real estate agents still need to make a living. But the typical home selling process involves frequent contact with strangers—which is not recommended during this time of social distancing.

By now, you’re probably getting pretty good at making adjustments in your everyday life to protect the health and safety of yourself and those around you. Along the same lines, there are steps you can take to show your home to potential buyers without risking your health or hurting your chances of a sale. Here are some tips to prepare your home for sale in the coronavirus era!

Get Help with Staging

According to The Mortgage Reports, staged homes sell an average of 73% faster than non-staged homes. Staging involves eliminating clutter, incorporating decorative elements, and adjusting the layout of your furniture to improve the flow of your home. The overall goal is to make your home appear bigger, brighter, and more inviting to potential buyers. Fortunately, some staging steps are easy to tackle on your own, such as cleaning, de-cluttering, and depersonalizing. These steps will help buyers picture themselves living in your home instead of feeling like intruders in someone else’s space.

When it comes to decor, however, it’s best to hire a professional. An interior designer can help you stage your home to effectively show off key aesthetic elements as well as the features that make your space functional. You can easily find freelance interior designers on job boards like Upwork. To keep yourself and your designer safe, make sure they have adopted special procedures to conform with CDC recommendations for COVID-19.

Don’t Neglect Your Curb Appeal

Don’t let your home preparations stop at your front door! Even if buyers aren’t visiting your home in person, they will still want to see your home exterior. In fact, a picture of your home exterior will likely serve as the bait that draws potential buyers to your online listing. Don’t neglect your curb appeal!

Tool Review Lab recommends several ways to boost your curb appeal—even if you’re on a tight budget. For example, you could power wash your front porch and siding, install a new mailbox, hang modern house numbers, and do some basic lawn maintenance.

When it comes to your front yard, make sure your lawn is lush, freshly mowed, and free of weeds and dead spots. Consider planting new flowers and remember to weed and mulch the beds to keep everything looking neat. You may even want to hire a professional to give the trees and shrubs around your yard a good trim.

Consider Safer Showing Alternatives

While it’s clear that hosting an open house is off the table, you may also want to limit in-person showings. Offer your buyers no-contact alternatives! Shoot a video walkthrough of your home and upload it to your online listing so buyers can tour your home virtually. You could even schedule live video-chat showings with interested buyers so they can ask questions about your home or request specific shots of rooms or features.

Since buyers will form a first impression of your home based on your listing, make sure it does your home justice. Write a strong listing title, include a detailed and exciting description, and post plenty of high-quality photos. A great real estate agent can help you craft your listing so that it properly showcases your home’s best features. Your real estate agent can also help you navigate virtual showings! Take the time to find a professional who is well-versed in using online tools to connect with buyers.

Selling a home in the age of the coronavirus is bound to be a bit of a challenge. Thankfully, the real estate industry has been quick to adopt virtual alternatives to open houses and buyers are happy to continue their housing hunt online. With some special attention to staging and a solid virtual presence, you’ll have no problem closing a sale during the pandemic!

Written By: Katie Conroy

Mortgage Interest Rates Break Records And Fall To The Lowest Levels Ever Recorded

September 15, 2020 by Kathy Reichle Leave a Comment

Interest rates have found a new low. This week, the 30-year fixed mortgage rate hit 2.86%, well below the 3% threshold that just a few months ago most people were saying would be the lowest they could reach. As we closed out August, interest rates had already come down to 2.91%, slightly above the previous record low of 2.88%, according to the weekly report from Freddie Mac. But now we have nudged even lower and momentum suggests they will see at least one more new lowest rate before we too much further into fall.

The decrease in rates has been met with an increase in applications, even though the Labor Day holiday usually puts a pause on housing activity. For the week ending Friday, September 4, both purchase and refinance applications increased 3%, but refinances continued to show their dominance by making up 63.1% of the total number of applications, according to the Mortgage Bankers Association.

(Even though Labor Day was Monday, September 7, after the data collection for this report closed, it is still considered an influencing factor since the week leading up to the holiday typically sees a slowdown in mortgage activity.)

Mortgage interest rates, Mortgage rates — The mortgage interest rates for traditional mortgages have continued their steep decline.

FREDDIEMAC

Sam Khater, Freddie Mac’s Chief Economist, commented that demand activity has seen double digit increases for the past four months, but points out, “Heading into the fall it will be difficult to sustain the growth momentum in purchases because the lack of supply is already exhibiting a constraint on sales activity.”

The other record that was broken last week is the amount of money people are borrowing to buy a home. The MBA survey shows purchasers borrowed an average of $368,600 for their loan—which is the highest the MBA has recorded in the survey’s 30-year history. (The weekly report covers over 75% of all retail residential mortgage applications in the U.S.) As rates have dropped, purchasing power has increased, with Redfin reporting that buyers who have a $2,500 per month budget for housing can now afford a home that is at least $30,000 more expensive compared to a year ago.

The rates might see some small fluctuations but they aren’t going to see any large increases for the next few months. The biggest hurdle continues to be lack of supply in popular markets. But if people are able to borrow more money, that could entice sellers to list their homes this year while they have a greater chance of selling at a higher asking price.

Here’s how to qualify for a mortgage in retirement

September 9, 2020 by Kathy Reichle Leave a Comment

It’s not uncommon for retired homeowners to want to relocate or downsize.

Yet if the move involves buying a house and financing that purchase, they may discover that qualifying for a mortgage is a bit different from the last time they bought a home. Not only have lenders tightened their credit during the pandemic, retirees generally have left a steady paycheck behind.

“It can get tricky for retirees,” said Al Bingham, a mortgage loan officer with Momentum Loans in Sandy, Utah. “You can have a lot of money but show very little income and have difficulty qualifying for a mortgage.

“It frustrates a lot of them,” Bingham said.

The average interest rate on a 30-year mortgage is just above 3%, while for a 15-year fixed-rate mortgage, it’s about 2.7%, according to NerdWallet. With rates low and inventory in many markets tight, it may be necessary for retired homebuyers to do some strategizing and planning ahead.

Of course, the typical aspects of qualifying for a mortgage — such as having a good credit score, monthly debt that isn’t too high and the required down payment — would apply, as well.

The specifics will depend on the lender and the type of mortgage you’re seeking. Loans that are backed by Fannie Mae and Freddie Mac come with requirements that lenders must adhere to, while private mortgage lenders could have their own set of standards.

Qualifying based on income

The most common way for retirees to get a mortgage is by qualifying based on income, said certified financial planner Daniel Graff, a principal and client advisor at Sullivan, Bruyette, Speros & Blayney in McLean, Virginia.

Lenders generally will look at your last two years’ worth of tax returns to see what that amount is. It may include, for instance, Social Security, pension income, dividends and interest.

However, your taxable income may not be enough to qualify for the loan on its own. That’s where a retirement account like a 401(k) plan or individual retirement account can come into play.

Chart showing the average 30-year fixed rate mortgage from 2005 through August 2020.

“You basically create more cash flow to satisfy the lender,” said CFP David Demming, president of Demming Financial Services in Aurora, Ohio.

The idea is that you take distributions to help you qualify for the mortgage, even if you don’t really need the money. As long as you’re at least age 59½, you can tap your IRA or 401(k) plan without paying a 10% early-withdrawal penalty.

And, under rollover rules applying to retirement accounts, you can put the cash back within 60 days without the distributions being taxable. Beyond that time frame, however, the withdrawals would be locked in and you’d owe income taxes on the money.

Meanwhile, the lender would see the income on your bank statements, where the money came from and when it hit your account.

Graff said he has helped with two mortgages for clients this year that involved taking distributions from an IRA for two months so they could qualify and then returning it under the 60-day rollover rule.

However, he said, “My mortgage lenders are telling me that they are getting a bit more strict on the historical verification, which may restrict this opportunity in the future.”

In addition to seeing verification of the required income, lenders will want to verify that the distributions can continue for at least three more years, Graff said.

Sarah O’Brien

CNBC

Seattle-area home prices rise faster than nearly every other U.S. city, driven in part by younger homebuyers

August 26, 2020 by Kathy Reichle Leave a Comment

An aerial view of West Seattle, looking west from White Center. (Ken Lambert / The Seattle Times)

Like much during the pandemic, the latest news on home prices inspires a definite sense of deja vu.

For the fifth month in a row, home prices around Seattle rose faster in June — 6.5%, year-over-year — than any of the nation’s other top 18 metro areas, save Phoenix, according to new data from S&P CoreLogic Case-Shiller Home Price Index. That’s more or less the same rate of growth we’ve seen since spring.

Price growth in King, Pierce and Snohomish counties topped national averages for the eighth month straight. National year-over-year home price growth of 4.3% in June pointed to a “stable” market, said S&P Managing Director Craig Lazzara in a statement. Prices rose in each of the 19 large cities that Case-Shiller tracks; among just those metros, year-over-year price growth averaged 3.5%. (Typically, Case-Shiller examines home prices in 20 metro areas, but data for the Detroit metro area has been unavailable since the start of the pandemic.)

A major imbalance between the number of homes for sale and a swell of interested buyers on the market has boosted prices. Until very recently, far fewer people were listing their homes than did in 2019. Many would-be sellers decided instead to take advantage of historically low mortgage rates to refinance their homes.

Price growth in the Seattle metro area has been driven by an uptick in cost for the area’s most affordable homes. Prices rose nearly 9% year-over-year among homes that sold for less than $448,069, which represent the most affordable third of all homes sold this spring. Among the most expensive third of homes, those selling for more than $670,317 — including most homes in King County, where a typical home now runs $727,500 — prices rose relatively more slowly, 5% compared to last year.

The lure of an under-three-percent mortgage has drawn younger buyers to the market, many likely for the first time. Across generations, only millennials are taking out more for-purchase loans than last year, according to data on VA loans from the Department of Veteran Affairs. The number of Seattle millennials who received for-purchase loans in the first nine months of the fiscal year rose 21.8% over the same period the previous year.

Refinances, however, have swollen a whopping 276% across all demographics, compared to the previous period.

Katherine Khashimova Long

Seattle Times business reporter

Are Urban-Dwellers Leaving the City?

August 17, 2020 by Kathy Reichle Leave a Comment

America’s big cities have for years, been drawing people in thanks to the robust employment opportunities, culture and nightlife, higher-paying jobs and the general excitement these locations can bring to your life.

The concept of heading to the office and then spending the evening exploring the city was one that appealed to many, but the pandemic is causing people to rethink their lifestyles.

After the corona-virus pandemic, widespread lock downs rolled through the U.S., heavily affecting cities like New York, which saw a tremendous toll from the outbreak.

Along with restaurants, museums and theaters closing, many perhaps indefinitely, most employers starting asking some if not all of their employees to work from home. Those factors may lead to increased home demand in suburban areas and smaller cities, and for some, perhaps even rural areas.

Working From Home Creates Residential Flexibility

There was for years discussion about companies offering more work-from-home opportunities. For some employees, telecommuting was an option, but still yet for many others, it wasn’t.

Then, after non-essential businesses were required to close down based on state and local mandates, working from home was no longer an option, but a requirement. Companies scrambled to piece together work-from-home policies, but now that we’re several months in, it’s becoming a lot smoother for many.

The vast majority of employers, according to Gartner, plan to increase their number of permanent work-from-home positions.

That means that not only will employers have the potential to save on pricey city office buildings, but they may be able to hire employees who live anywhere in the world. Facebook recently announced that they would be offering work-from-home permanent positions, but they would adjust pay scales according to location since employees wouldn’t be forced to live in the expensive Silicon Valley area.

Other Ways the Pandemic is Changing City Attitudes

It’s not just the work-from-home element that’s making some city residents rethink things.

With corona-virus came a fear of infection, and based on what we know now, shared living environments such as city apartments may up the risks. There are stairways, elevators, lobbies, and even air conditioning systems that could be potential vectors of transmission for COVID-19.

During lock down, some people living in cities also started to feel that they didn’t have the yard and outdoor space they’d like, and perhaps that they were paying too much for a lifestyle that they no longer got in exchange for that price. Living in a tiny apartment can be trying even in the best of times—in the worst, it may feel impossible.

Shark Tank investor Robert Herjavec recently told CNBC he believes the coronavirus pandemic has changed attitudes about living in cities to the point that it will alter the real estate market for years to come.

He described what’s happening now as one of the biggest moves from urban areas to the suburbs since the 50s or 60s.

One Redfin study found 50% of respondents from Boston, New York, Seattle, and San Francisco said they would move if they found they had the option to work from home permanently.

New York’s Real Estate Market Is Already Feeling the Effects

According to realtors in the areas around New York, they’ve seen a tremendous increase in people looking for single-family homes in areas like Connecticut, New Jersey, and upstate New York.

That’s already taking its toll on the New York market. Apartment vacancy in June was 3.67%– a record high.

There was an 85% increase in apartments listed that month compared to June of last year.

Realtors have said it’s not just New York where people are making a move. It’s also being seen in other areas, such as California’s cities.

Competition Heats Up in the Suburbs

Some of the cities that people seem to be considering if they’re looking to move away from urban areas include not only the New York suburbs but also cities in South Florida, Phoenix, and Sacramento. Long Island and Westchester, Connecticut are also seeing a surge in demand. There are in fact bidding wars going on in some of these locations, and real estate experts say you should start looking now if you’re considering a move.

Some buyers are thinking less about the effects of the pandemic and more about moving to places that are more affordable and have lower taxes—tax-friendly states include Florida, Texas, Tennessee and Arizona.

Sellers have the opportunity to capitalize on the shift. Without a lot of inventory in many areas and low interest rates, prices are going up, some rapidly.

Buyers, along with searching for single-family homes, are looking for lifestyle features. They want the things they couldn’t get in the city, particularly as more people are spending the majority of their time at home.

These features include pools, large yards, home offices, and spaces for home gyms.

The most demand for homes is being seen in those turnkey properties, so sellers should keep that in mind.

It’s early to tell how long the move from the cities to the suburbs will continue, although some real estate analysts are forecasting it will be quite some time before cities’ real estate markets recover.

WRITTEN BY ASHLEY SUTPHIN

Backyard Structures: The New Necessity

August 4, 2020 by Kathy Reichle Leave a Comment

Take a look at your current outdoor space. Maybe you have a terrace, patio, or deck. Maybe you have a table and chairs or some outdoor sports equipment. But what if you could put that space to really good use? What if you could use your backyard to create a space that adds value to your home’s equity—and to your everyday life? For many homeowners, the best new home improvement or addition isn’t connected to the home at all—it’s a specialty backyard structure.

Whether you’re looking for space for your new work from home lifestyle or you want to build more financial security into your life, a separate exterior space offers convenience, flexibility, and privacy. Here are some ideas for making that backyard space more useful than ever.

Guest House

For those with big families or a home located in a desirable resort area, a guest house is a great option for an upgraded backyard space. Keep in mind storage options for your guests’ luggage and include basic toiletries like toothpaste, toothbrushes, and shampoo. While you might not need a full kitchen in a guest house, a wet bar with an ice maker and small beverage refrigerator is a great option and a welcome addition to your guest house design.

Pool House

Long a staple of elegant luxury homes, the pool house is beginning to look like a necessity. Here you’ll find a great place to store pool toys and floats, with floor coverings and furnishings that can stand up to wet bathing suits and flipflops. Include a cabana bath for added convenience, and WiFi for quiet rest time when kids need to get out of the sun.

She-Shed or He-Shed

Whether it’s intended for the man of the house or the woman of the house, an outdoor structure can provide a place for peace and privacy. Create a football-themed media room for the ultimate backyard man-cave. Create a serene space for her to pursue her hobbies or just get away from the hustle and bustle inside the main house.

Granny Shed

If you have in-laws who frequently come over to help with the kids or are looking to integrate elderly parents into your household, the so-called Granny Shed is a great option. It preserves the privacy and autonomy of grandma and grandpa while providing the support that they may need as they age and mobility becomes more of an issue. The single-story design and smaller size will help with home upkeep and safety. Consider adding features like extra lighting, additional handrails, and grab bars to provide extra security and comfort for aging family members.

Fitness Studio

Whether you’re looking for a standalone home gym or a yoga studio, you’ll be more inspired to keep up with your daily workout routine when going to the gym is as easy as stepping out of your back door. Create a combination space with a variety of gym equipment, mirrors, and a barre so that the whole family can take part, from the smallest ballerina to the strongest weightlifter.

Homeschool Classroom

As COVID-19 shut down schools, many parents found themselves struggling with helping their students study at home. One of the reasons? Too many distractions. If your school district is planning to remain closed for part or all of the school day over the next year, or if you’re thinking of continuing to homeschool your children, it may be time to create a separate space devoted to study.

A remote learning environment can help your child separate from their normal spaces, like a bedroom or playroom, and focus on schoolwork. Add bookshelves and tables as well as educational posters to create a stimulating learning environment. Include upgraded WiFi for fast access to the online classroom.

Home Office

As businesses decide to offer work from home as a permanent role for more and more of their workers, many two-income households find themselves struggling to create space for dueling Zoom meetings and uninterrupted work-time. A separate workspace creates the distance you need to be more productive while still remaining at home. Make your separate home office the dedicated workspace for one of you, or make it a rotational space for either person’s virtual meetings, phone calls, and work that requires undivided attention.

Rental Unit

Economic disruption caused by the pandemic has some people rethinking their financial planning. If you have the space, a separate structure may be a great option for conversion into a small rental unit. If you live in a college town or in an area with a large population of renters, you may want to use the space for long-term leases. If you live in a resort area, you may want to host short-term and vacation renters.

Remember to determine what structural elements are required for rental properties in your area and whether your HOA sets limits on rental properties in your community. In addition, consult with your CPA or financial advisor on the tax implications of a rental property, consult your lawyer on the legal liability associated with such a unit, and determine what adjustments you’ll need to make to your insurance coverage.

Design Options for Your Backyard Structure

One of the best features of your backyard structure is that it doesn’t have to conform to the style of your residence. In many cases, you can indulge your own individual design aesthetic and add a touch of whimsy with a fanciful guest house or other exterior space in a style totally different from that of the main home. Here too, be sure to check with your HOA to ensure that there are no restrictions governing the design or placement of your secondary structure.

By: Christy Murdock Edgar

Seattle-area housing market in one sentence: ‘What a difference a month makes’

July 17, 2020 by Kathy Reichle Leave a Comment

Home prices rose in the four-county metro area in June, but they climbed more in outlying areas as buyers sought to move to less congested areas.

Compared to a year ago, the Puget Sound region’s single-family housing market is in the dumps, but compared to earlier this year, it’s moving ever higher.

Record-low interest rates are fueling the market, with the region among the nation’s markets that are seeing the strongest recovery from the pandemic.

Strong demand and low inventory drove prices up in June, according to data the Northwest Multiple Listing Service released Monday. In the four-county metro, Pierce logged the largest increase, nearly 9%, followed up Kitsap (6.6%), Snohomish (5.2%) and King (4.3%).

Demand is especially strong in areas farther afield as buyers look to escape crowded cities and suburbs due to Covid-19 and urban strife

Median sale prices rocketed up from 12% in Thurston County (Olympia) to nearly 31% in Kittitas County (Ellensburg and Suncadia). Prices similarly rose in the counties that are home to Shelton, Port Townsend and Wenatchee/Chelan.

More space and lower prices and taxes make these areas more attractive now that people have discovered they can get most of their work done from home, Dean Rebhuhn, president of Village Homes and Properties in Woodinville, said in the NWMLS news release.

The extraordinarily low supply of homes for sale indicates prices could further climb in outlying areas still relatively close to Seattle, said James Young, director of the Washington Center for Real Estate Research.

A lack of housing stock is holding back the market. In the four-county metro, there were nearly 4,350 fewer homes for sale this June compared to last, a 48% decline. New listings were down 11%, closed sales were off 13% and pending sales were about even.

But compared to May, the June numbers were downright muscular. New listings were up 35%, closed sales were 39% higher and pending sales increased nearly 13%.

By Marc Stiles – Staff Writer, Puget Sound Business Journal