More • August 14, 2017

6 Ways to Personalize a White Kitchen

by Guest Author

White-on-white kitchens have been a classic look for many years. Why does this trend endure? For starters, white connotes cleanliness, makes small spaces appear larger, and brightens rooms that are naturally dark.

Although many all-white kitchens are just lovely, some can appear a bit stark or cold. To help clients warm up their white, I recommend a variety of strategies, such as mixing metals and adding contrasting paint, fabric or wood. Read on for inspiration for personalizing your white kitchen so that it stands out from the crowd.

White Kitchen 1: Allard Ward Architects, original photo on Houzz

1. Warm metal accents. Copper, bronze, brass and polished nickel are just a few of the metals that can warm up an all-white kitchen. The gold sconces above the window and the white pendant lights, with their subtle hint of gold, add warmth and a touch of luxury to this all-white kitchen.

White Kitchen 2: GIA Bathroom & Kitchen Renovations, original photo on Houzz

2. Color and metal. Moving beyond metallics alone, a single contrasting color when combined with metals can create drama in a white kitchen. In this photo, a modern white kitchen intermingles black pendants and countertops with gold seating. This combination contributes to the room’s sleek contemporary look.

White Kitchen 3: Orchid Newton Ltd, original photo on Houzz

3. Wallpaper. I love wallpaper, especially in kitchens. Wallpaper can introduce color, movement and dimension to a white kitchen. When applied to a lone wall, wallpaper can create a dynamic focal point, as shown in this photo. The bright white cabinets and crisp white walls are softened by the shades of blue in the fish swimming on the side wall. This kitchen’s under-the-sea motif is enhanced by the blue tile on the back wall and the sea urchin-shaped pendant lights.

White Kitchen 4: IS Architecture, original photo on Houzz

4. Colorful island. Wood-stained islands often appear in white kitchens because of the richness and contrast they bring. This kitchen shows a creative alternative, pairing a chartreuse island with a chartreuse Roman shade. Together they lend a whimsical, personalized feel. To give your white kitchen a personal touch, consider painting your island your favorite color.

White Kitchen 5: Mosaic del Sur, original photo on Houzz

5. Tile rug. Layering in a rug is a great way to introduce color and texture to an all-white kitchen, but some clients worry that a rug could be an added source of dirt as well as a possible tripping hazard.

This clever kitchen resolves both issues with a tile rug instead of a fabric one.

White Kitchen 6: Hindley & Co, original photo on Houzz

6. Backsplash. A tile backsplash also can bring color and texture to your white kitchen. But who says a backsplash must be tile? This kitchen has a counter-level window in lieu of a tile splash. The window faces a luscious succulent garden, thus creating a green vista for an otherwise monochromatic kitchen.

By Barbra Bright, Houzz

Buying • August 11, 2017

Seven Trends That Will Define the Home of the Future

by Windermere Staff

As sophisticated as homes are today, experts predict they’ll be far more so in the not-too-distant future— especially when it comes to their use of technology. Included are seven evolutionary trends that many expect to define the home of the future.

#1: Faster home-construction

Today, it takes somewhere between 18 months and two years to design and build your custom dream home. In the foreseeable future, experts predict that timeline will be slashed to six to nine months.

Architects will use immersion technology to not only develop plans faster, but also enable you to “walk” through a three-dimensional representation of the house and experience what it will be like to live there. Changes to the layout could be incorporated with a few clicks of the keyboard and mouse.

And, instead of delivering raw materials to the construction site and having workers cut and assemble them to match the plans, about 70 percent of the cutting and assembling work will take place in a precision-controlled factory environment. Once the foundation is ready, the pre-constructed walls, floors and roof will be delivered in “folded” sections, complete with windows, doors, fixtures, and even appliances, already installed.

#2: Alternative building materials and techniques

One of the big breakthroughs in home construction coming in the near future will be the use of steel framing in place of lumber.

Steel is not only stronger (able to withstand a 100-pound snow load, 110 mile per hour winds and significant earthquakes), it’s also far more eco-friendly than most people think (manufactured from up to 77 percent recycled materials) and much less wasteful (typical lumber framing generates 20 percent waste, while steel framing generates just two percent).

Other innovative home-building materials moving towards the mainstream include:

Wall insulation made of mushroom roots (it grows inside the air cavity, forming an air-tight seal).
Panels made of hemp and lime.
Windows made from recycled wood fiber and glass.
Recycled-glass floor and counter tiles.
Reclaimed wood (beams and flooring re-milled and repurposed).

#3: Smaller homes with inventive layouts

The optimum home size for many Americans has been shrinking, and experts predict it will shrink more in the future. But it will feel bigger than it is because the layout will be so practical.

The driving forces behind the small-house movement (millennials purchasing their first home and baby boomers looking to downsize) aren’t interested in formal dining rooms, home offices, guest quarters and other spaces that have only one use and are only occasionally occupied. And they certainly aren’t interested in formal entries, high ceilings and three-car garages. They want an informal house layout, with flexible, adaptable spaces that can be used every day in one way or another.

Many of these homes will also feature a second master bedroom, so parents, children and grandparents can all comfortably live under one roof.

#4: Walkable neighborhoods

Even today, homebuyers are willing to give up some of their wants for a new house in order to get a location that’s within walking distance to stores, restaurants and other amenities. In the future, that trend is expected to only grow stronger.

#5: The net-zero house

For some time now, homeowners and homebuilders have both been striving to make the structures where we live more energy-efficient (green housing projects accounted for 20% of all newly built homes in 2012). But in the future, the new goal with be a net-zero home: A home that uses between 60 to 70 percent less energy than a conventional home, with the balance of its energy needs supplied by renewable technologies (solar, wind, etc.).

Essentially, these are homes that sustain themselves. While they do consume energy produced by the local utility, they also produce energy of their own, which can be sold back to the utility through a “net metering” program, offsetting the energy purchased.

#6 High-tech features

The technology revolution that’s transformed our phones, computers and TVs is going to push further into our homes in the not-too-distant future.

Examples include:

Compact robots (similar to the Roomba vacuum) that will clean windows and more.
Video feeds inside the oven that will allow you to use your phone to check on what’s cooking.
Faucet sensors that detect bacteria in food.
Blinds that will automatically open and close depending on the time of day, your habits and the amount of sun streaming through the windows.
Refrigerators that will monitor quantities, track expiration dates, provide recipes, display family photos, access the Web, play music, and more.
Washers and dryers that can be operated remotely.
Appliances that will recognize your spoken commands.
Heating and cooling systems that automatically adapt to your movements and can predict your wants.

#7: A higher level of security

In the future, home will continue to be a place where we want to feel safe and secure. To accomplish that, you can expect:

Sensors that can alert you to water and gas leaks.
Facial recognition technology that can automatically determine whether someone on your property is a friend or foe.
A smart recognition system that will open the garage door, turn off the security system, unlock the doors and turn on the interior lights when it senses your car approaching.
The capability to create the illusion that you’re home and moving about the property when you’re actually someplace else.

This is no pipe dream

Many of these products, processes and strategies are already in use. Some are still being tested. And others are only in the incubator stage. But in the not-too-distant future, experts believe they’ll all be available to homeowners across the country.

More • August 9, 2017

6 Clever Ways to Disguise Trash Bins

by Guest Author

You probably don’t give much thought to your garbage cans, other than remembering to put them out on the right day. But we all have to store our trash and recycling bins somewhere, and doing so can be a challenge on a smaller property, especially if you don’t want them to be an eyesore. If you’re struggling to find a stylish way to store your bins, check out these smart and inspiring ideas. Now, is it black or green bin day this week?

Garbage Bins 1: Outhouse Design, original photo on Houzz

Choose a screen. The curved screen in the corner of this courtyard is an attractive feature in its own right, thanks to the decorative cutwork pattern, and offers an elegant way to hide ugly plastic bins from view.

By using a screen like this, you can section off as much of the garden as you need — to store bikes or garden equipment as well as bins. To blend in the structure even further, you could grow climbers up and over the screen or along the wall behind.

Garbage Bins 2: London Front Gardens, original photo on Houzz

Create a brick shelter. Built in red brick to match the house, and tiled with slate, this practical storage area blends with the property’s exterior and actually enhances the space with its character and interest. The look is mirrored in the raised bed at the front of the drive for a coordinated finish.

A custom compartment on the left neatly houses the bin, while two smaller storage compartments on the right make room for stacking recycling boxes.

Garbage Bins 3: Fenton Roberts Garden Design, original photo on Houzz

Make it part of the garden. The aim of this front garden design was to create a wildlife haven, and rather than see the bins as an unsightly obstacle to be hidden away, the owners decided to make them integral to the design.

They created a sturdy wooden structure with a living roof that works as an extension of the garden and is planted with wildlife-friendly flowers and foliage.

Garbage Bins 4: Beertje Vonk Artist, original photo on Houzz

Design it into an outbuilding. In a larger space, an open-sided outbuilding like this one is ideal for storing and hiding bins. It’s painted a heritage shade and is partly screened in front with evergreen topiary to create a visually appealing feature — a great way to smarten up a drab drive.

This idea would complement a traditional or cottage exterior, but if your style is more contemporary than country, you could choose a sleeker style, or paint it a darker shade to tie in with the exterior of your home.

Garbage Bins 5: Kate Eyre Garden Design, original photo on Houzz

Tuck it into a border. Can you spot the trash bins on this drive? They’re neatly tucked away in the wooden box to the left of this image, and the impact of the structure has been much reduced by positioning it in a decorative floral border and planting low standard trees right alongside it.

The structure also has a green roof planted with succulents to further disguise the box and make it as visually appealing as possible.

Garbage Bins 6: The Honest Scot, original photo on Houzz

Build a clever storage wall. If space is limited, why not make your recycling containers work extra hard by turning their storage area into a boundary wall, as these smart homeowners have. This neat wooden shelter screens the bins from the road while creating a clean, contemporary-style wall.

By Victoria Harrison, Houzz

Market News • August 7, 2017

Idaho Real Estate Market Update

by Windermere Economics

ECONOMIC OVERVIEW

Idaho has added 16,800 new jobs over the past 12 months, representing an above average growth rate of 2.4%. The Education & Health Services sector showed the largest annual job growth, up 4.8%. There were also strong employment gains in Construction, Government Services, Leisure & Hospitality, and Manufacturing.

In May, the state unemployment rate fell for the third consecutive month to 3.2%, underscoring the increased pressure among Idaho employers competing for workers. However, May’s unemployment drop is the result of 2,200 Idahoans exiting the workforce or ending their work search. Additionally, the reduction in the unemployment rate was also affected by the state’s labor force participation rate (the percentage of people 16 years and older with jobs or looking for work), which dropped to 63.4%—the lowest participation rate since July 1976.

HOME SALES ACTIVITY

Second quarter home sales rose by 0.8% compared to the same period last year. In total, 6,339 homes sold in the second quarter of this year.
Sales rose the fastest in Payette County, which saw a 24.7% increase over the second quarter of 2016. There were also noticeable sales increases in Valley County. Home sales fell in Ada County, but the contraction was a modest one.
Year-over-year sales dropped in two of three Northern Idaho counties in this report, but rose in all but one county in the Southern Idaho market areas.
Listing inventory rose in all the Northern Idaho counties in this report, but a majority of the Southern counties saw a decrease in listing activity, which will negatively impact sales as we move into the Fall months.

HOME PRICES

The average home price in the region rose 12.6% year-over-year to $290,811.
Blaine County led the market with the strongest annual price growth. Homes there sold for 30.1% more than a year ago.
A majority of the counties in this report experienced prices rising substantially when compared to the second quarter of 2016, with several seeing significant, double-digit increases.
Home prices in Shoshone and Payette Counties decreased modestly last quarter, but I do not believe this will be an ongoing trend.

DAYS ON MARKET

The average number of days it took to sell a home in the region dropped 15 days when compared to the second quarter of 2016.
It took an average of 116 days to sell a home in Northern Idaho and 95 days in the Southern part of the state.
Homes in two of three Northern Idaho counties took less time to sell than they did in the same quarter of 2016. All of the Southern counties saw a drop in the time it took a home to sell.
Homes sold the fastest in Ada and Canyon Counties, where it took an average of 34 and 35 days, respectively, for homes to sell.

CONCLUSIONS

The speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors. Consumer confidence in the housing market seems to have returned, causing the markets in this report to perform well overall and for home prices to continue trending upward.

Even as home sales have slowed in some counties, the market is tight and will likely remain that way for the balance of the year. As such, I have put the needle well in favor of sellers. While I expect mortgage rates to rise modestly through the end of this year and into 2018, they are still very low compared to historic averages. This, in concert with Idaho’s expanding economy, will continue to result in a healthy housing market.

Matthew Gardner is the Chief Economist for Windermere Real Estate, specializing in residential market analysis, commercial/industrial market analysis, financial analysis, and land use and regional economics. He is the former Principal of Gardner Economics, and has over 25 years of professional experience both in the U.S. and U.K.

If you are in the market to buy or sell, we can connect you with an experienced agent here.

Market News • August 4, 2017

Central Washington Real Estate Market Update

by Windermere Economics

ECONOMIC OVERVIEW

Though Washington State’s economy has been expanding at a rapid pace, we are seeing a slowdown as the state gets closer to full employment. Given the strong economy, I expect income growth to move markedly higher in the second half of the year. I also expect the state to add around 70,000 jobs by the end of 2017.

Like much of the rest of the state, Central Washington continues to experience modest employment growth. An additional 1,300 jobs were created between May

2016 and May 2017, which drove the unemployment rate lower (from 6.3% to 5.4%). I believe we will see continued growth in employment, leading to further declines in the unemployment rate through the duration of 2017.

HOME SALES ACTIVITY

Home sales throughout Central Washington were mixed in the second quarter. Sales rose in three markets but dropped in one when compared to the second quarter of 2016. In total, there were 1,169 home sales in the quarter— an increase of 6.3% over the same period in 2016.
Sales rose at the fastest rate in Kittitas County, which had an impressive 28.3% increase over the second quarter of 2016. That said, the market is a small one, so sales activity can fluctuate quite dramatically.
The number of pending home sales— an indicator of future closings—was up across the board. As such, I expect to see regional home sales continue to rise as we move through the rest of the summer.
The number of homes for sale in the quarter was down 14.2% compared to the second quarter of last year. The market is clearly starved of inventory, which continues to push home prices higher.

HOME PRICES

Year-over-year, the average home price in the region rose by 9.1% to $275,979. Price growth remains robust as demand exceeds supply.
Yakima and Kittitas Counties saw relatively modest price increases. The other two counties in this market reported double-digit gains.
All counties in this report saw prices rise compared to the second quarter of 2016. Okanogan County led the way with an increase of 12.6%.
Home prices continue to grow at above average rates due to very limited supply, but I expect the rate of appreciation to start tapering later this year or in early 2018.

DAYS ON MARKET

Across this market, the average number of days it took to sell a home dropped by 25 days when compared to the second quarter of 2016.
The average time it took to sell a home in the region was 98 days.
All markets contained in this report saw the time it took to sell a home drop from the same quarter in 2016.
Homes sold the fastest in Kittitas County, where it took an average of 49 days, which is 32 fewer days than it took to sell a home in the second quarter of last year.

CONCLUSIONS

I anticipate that 2017 will continue favoring sellers and demand will continue to exceed supply.

If you are in the market to buy or sell, we can connect you with an experienced agent here.

Market News • August 2, 2017

Oregon and Southwest Washington Real Estate Market Update

by Windermere Economics

ECONOMIC OVERVIEW

Oregon has added 46,500 new jobs over the past 12 months with impressive gains seen in the professional and business services, leisure and hospitality, and trade sectors. Also of interest is that the construction sector continues to expand rapidly, potentially signifying greater interest in adding to the region’s housing supply. Year-over-year, employment in Oregon has risen by 2.5%. In May, the state unemployment rate fell slightly to 3.6%. Unemployment was 3.7% in April of this year and 5% in May of 2016. As unemployment edged down, the labor force hit a record high. In May, Oregon’s labor force rose above 2.1 million for the first time and grew by 40,000 in the first five months of this year.

HOME SALES ACTIVITY

Second quarter home sales fell by 5.6% compared to the same period last year. In total, 17,409 homes sold in the second quarter of this year.
Sales rose the fastest in Coos County, which saw a 29.6% increase over the second quarter of 2016. There were also noticeable sales increases in Lincoln, Crook, Wasco, and Tillamook Counties. Home sales fell the most in Skamania, Benton, Linn, Yamhill, and Polk Counties.
Year-over-year sales rose in nine counties, but 17 counties reported declines.
The low level of available inventory continues to affect the market, which is causing sales to slow. Sellers remain firmly in the driver’s seat.

HOME PRICES

The average home price in the region rose 7.8% year-over-year to $362,845. This is down from 9.4% in the first quarter of 2017.
Crook County led the market with the strongest annual price growth. Homes there sold for 41.2% more than a year ago.
All counties in this report experienced rising prices when compared to the second quarter of 2016, and several of these saw significant, double-digit increases.
The rise in interest rates in the first quarter likely activated many would-be buyers, which, in concert with limited homes for sale, likely pulled sales forward.

DAYS ON MARKET

The average number of days it took to sell a home in the region dropped by 10 days when compared to the second quarter of 2016, and is down by 23 days when compared to the first quarter of this year.
The average time it took to sell a home in the region last quarter was 75 days.
In five counties, the length of time it took to sell a home rose when compared to a year ago, but this isn’t a concern right now.
Homes sold the fastest in Washington and Multnomah Counties, where it took an average of just 20 and 23 days, respectively, for homes to sell.

CONCLUSIONS

The speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors. Housing markets throughout Oregon continue to benefit greatly from the robust regional economy. Even as home sales have slowed in some counties, the market is remarkably tight and will likely remain that way for the balance of the year. As such, I have moved the needle slightly more toward sellers for the second quarter.

If you are in the market to buy or sell, we can connect you with an experienced agent here.

Market News • August 1, 2017

Eastern Washington Real Estate Market Update

by Windermere Economics

ECONOMIC OVERVIEW

Washington State’s economy has been expanding at a rapid pace, but we are seeing a slowdown as the state grows closer to full employment. Given the solid growth, I expect income growth to move markedly higher, though this has yet to materialize. I anticipate that we will see faster income growth in the second half of the year and still believe that the state will add around 70,000 jobs in 2017. Like much of the rest of the state, Eastern Washington continues to experience modest employment growth, which is driving the unemployment rate lower. I also expect to see continued growth in employment as we move through the balance of the year.

HOME SALES ACTIVITY

Home sales throughout Eastern Washington were a mixed bag in the second quarter. Four markets saw home sales rise and three decreased compared to the second quarter of 2016. In total, there were 3,832 home sales in the quarter—an increase of 5.4%.
Sales rose at the fastest rate in Douglas County, which had a remarkable 24.7% increase over the second quarter of 2016. That said, the market is a small one and sales can fluctuate quite dramatically.
Interestingly, the number of pending home sales—an indicator of future closings—was up across the board. This is a turnaround from the slowdown in first quarter. As such, I expect to see regional home sales rise as we move through the rest of the summer.
The supply of homes for sale remains an issue. With the number of homes for sale down by 19.7%, the market is clearly starved of inventory, which continues to push up home prices.

HOME PRICES

Year-over-year, the average home price in the region rose by 6.2% to $242,059. Price growth has been tapering across the region, but several counties are still seeing appreciation well above the average rate.
Walla Walla County was the only market where prices were lower when compared to the second quarter of 2016. However, the drop was very modest and, given the fact that it is a relatively small market, I am not concerned.
All but one of the counties in this report saw prices rise when compared to the first quarter of 2016, with Douglas County leading the way with an increase of 12.7%.
The takeaway here is that home-price growth continues at above-average rates due to very limited supply, but the rate of appreciation has started to taper somewhat.

DAYS ON MARKET

The average number of days it took to sell a home dropped by six days when compared to the second quarter of 2016.
The average time it took to sell a home in the region was 57 days.
All but one of the areas contained in this report saw the time it took to sell a home drop from the same quarter in 2016.
Similarly to the past two quarters, Franklin and Benton Counties saw homes sell the fastest.

CONCLUSIONS

This speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors. For the second quarter of 2017, I left the needle at the same level. Though prices in several markets are still trending above average, the rate of growth has slowed a little. I still believe that 2017 will continue favoring sellers and, even with a slowdown in price appreciation, demand will continue to exceed supply.

If you are in the market to buy or sell, we can connect you with an experienced agent here.

More • July 31, 2017

Why You Should Stay Put and Improve the Home You Have

by Guest Author

Here's an architecture book for our times, when some homeowners are under water on mortgages, and the cycle of trading up has either stopped or slowed way, way down. In "Staying Put," architect and writer Duo Dickinson has assembled a terrific and practical guide to help us make real improvements to our homes. Dickinson, an advocate of well-designed and affordable homes for all, has specialized in residential design for more than three decades.

This is not your typical architect's book about design. There's no obscure language nor design-for-design's-sake ideas. It is a practical, down-to-earth guide that walks anyone through the rational process of how to remodel your house to get the home you want, from how to think about your house and overcoming hurdles to a list of "Duo's Do's and Don'ts" for the homeowner. Along the way, there's plenty of nice before-and-after photos to help explain the points. Do read the book. You'll be glad you did.

Staying Put 1: The Taunton Press Inc, original photo on Houzz

The cover says it all. The ubiquitous photo of a gorgeous, award-winning home that's beyond most of us is replaced with images of a saw, cup of morning joe and a to-do list.

Are you staying put yourself? Read on for 8 of Dickinson's suggestions.

Staying Put 2: Mick Hales, original photo on Houzz

Consider the compass points. The tips and illustrated examples are wonderfully straightforward. For example, we see a house that gets overheated, the siding degrades and the front door bakes in the sun because it all faces south.

Dickinson's common-sense advice: Rework the front of the house with a new wide porch that shades the front door and some smaller, yet well-sized windows to create a lot more curb appeal while reducing maintenance and energy consumption. It's a triple win: more beauty and comfort with less cost.

Avoid gutters. Statements such as "gutters and leaders are devoutly to be avoided" may sound like heresy to many, but certainly are the truth. Proving his point, Dickinson illustrates how a properly-built roof overhang can shed all the water it must without the complications, such as ice dams, caused by gutters.

Embrace small moves. Dickinson provides a wealth of simple solutions illustrated with before-and-after photos. He shows how to use small moves for big dividends, such as taking out a wall between a kitchen and a hallway to make room for more kitchen storage.

Staying Put 3: Mick Hales, original photo on Houzz

Enhance curb appeal. The book offers solutions to common problems with a particular style, such as how to improve and enhance an entrance into a split-level home.

Open up to the outside. Dickinson provides some excellent examples of how we can use modern windows and doors to strengthen the connection between inside and outside. Our homes, says Dickinson, no longer need be "later-day caves."

Find your home. Learning more about the style of the house you have will help you avoid obstacles in remodeling and recognize the best opportunities for improving your particular home.

Staying Put 4: Mick Hales, original photo on Houzz

Open up the inside. Snippets of advice sprinkled throughout the book are like refreshing raindrops that clear the cobwebs away. One such snippet: "If you walk through a room to get to a room, something is wrong." You know — it's when that new great room gets added onto a modest house, and the result is some kind of dyslexic creature that's really two houses rather than one.

So rather than even building an addition, Dickinson suggests you make the most of what you already have. In this example, widening the opening between rooms strengthens this room's connection with the rest of the home, increasing its utility and spaciousness.

Staying Put 5: The Taunton Press Inc, original photo on Houzz

Work with what you've got (before): Keeping the kitchen size the same while vaulting the ceiling dramatically increases the overall spaciousness of the room, as you'll see in the next photo.

Staying Put 6: Mick Hales, original photo on Houzz

Work with what you've got (after): Walls, doors, appliances and even the skylight and kitchen sink were all left where they were. This all avoided costly plumbing, electrical and mechanical work and rework.

Staying Put 7: The Taunton Press Inc, original photo on Houzz

Working with what you've got (plans): Dickinson has included before-and-after floor plans for many of the examples. These plans help provide that much more context, allowing the reader to better understand what they may be able to do with the home they already have.

By Bud Dietrich AIA, Houzz

Market News • July 31, 2017

Colorado Real Estate Market Update

by Windermere Economics

ECONOMIC OVERVIEW

Colorado added 62,000 new jobs over the past 12 months, an increase of 2.4% over this time last year. All of the metropolitan markets included in this report saw annual employment growth, with substantial growth in Boulder (4.7%) and Fort Collins (+4.1%), and more modest growth in Grand Junction (0.3%). In May, the unemployment rate in the state was 2.3%, matching the prior month and down 3.4% from a year ago. The lowest unemployment rate was in Fort Collins at just 2.0%. The highest rate was in Grand Junction, though it was still a relatively low 3.3%. It is reasonable to expect these markets will see above-average wage growth given the tight labor market.

HOME SALES ACTIVITY

There were 17,581 home sales during the first quarter of 2017, a solid annual increase of 3.9% over the first quarter of 2016.
Jefferson County saw sales grow at the fastest rate over the past 12 months, with a 9.4% increase. There was also an impressive increase in Douglas County (+6.3%). More modest sales growth was seen in Denver and Weld Counties.
Even with the rise in sales, listing activity is still running at well below historic averages, with the total number of homes for sale in the second quarter 7.6% below a year ago.
Sales growth continues to trend higher, but inventory levels remain well below where they need to be to satisfy demand.

HOME PRICES

Due to solid demand, home prices continue to rise with average prices up by 8.5% year-over-year to an average across the region of $438,980.
Boulder County saw slower appreciation in home values, but the trend is still positive.
Appreciation was strongest in Denver and Weld Counties, where prices rose by 12.4% and 10.6% respectively.
Economic growth is driving job growth, which is driving housing demand. Given the relative shortage of homes for sale, expect to see home prices continue to appreciate at above-average rates at least through the rest of the year.

DAYS ON MARKET

The average number of days it took to sell a home dropped by three days when compared to the second quarter of 2016.
Homes in all counties contained in this report took less than a month to sell. Adams County stood out as it took an average of only 11 days to sell a home.
During the second quarter, it took an average of just 17 days to sell a home. This is down by a substantial 13 days compared to the first quarter of this year.
The takeaway here is that demand remains robust as evidenced by the remarkably short amount of time that it is taking to sell a home.

CONCLUSIONS

This speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

After the second quarter of 2017, I have moved the needle even farther in favor of sellers. Mortgage rates remain very competitive and, with the specter of lending standards easing a little, demand will remain robust, which will be reflected in rising home values.

If you are in the market to buy or sell, we can connect you with an experienced agent here.

Market News • July 28, 2017

Southern California Real Estate Market Update

by Windermere Economics

ECONOMIC OVERVIEW

The markets covered by this report—Los Angeles, San Diego, San Bernardino, Orange, and Riverside—added 131,900 new jobs between May 2016 and May 2017. As a result, the unemployment rate dropped from 4.7% to 3.9%. Growth in the Southern California market has started to taper, but this is unsurprising given our place in the current economic expansion.

HOME SALES ACTIVITY

There were 54,516 home sales in the second quarter of this year. This was only 1.8% higher than the same period in 2016, but 34.4% above the level seen in the first quarter of this year.
The average number of homes for sale remains well below what we saw a year ago (-15%), essentially matching the decline in listings in the first quarter.
Home sales were up in most markets, with solid growth in both Riverside and San Bernardino Counties. There were very modest gains in Los Angeles County and Orange County and a fairly substantial decrease in San Diego County. This continues a trend from last quarter, which again can be attributed to woefully low levels of inventory.
There was an average of 33,850 active listings in the second quarter, 8% higher than in early spring, but still well below the levels needed to get us to a balanced market. Although we did see a modest increase in listings in late spring, housing shortages remain constant across the entire region.

HOME PRICES

When compared to the second quarter of 2016, average prices in the region rose by 7.3% and are 6% higher than in the first quarter of this year.
Home prices in San Diego, Los Angeles and Orange Counties continue to approach their pre-recession peaks but I am not overly concerned—at least not yet. At some point, we have to see price appreciation taper, but this is unlikely for the time being.
Orange County had the greatest annual appreciation in home values (+9.8%) and price increases were roughly the same across the rest of the region.
Pending home sales continue to slow given pervasively low inventory levels. Demand is likely to remain strong and sales prices should keep rising since buyers continue to outnumber sellers.

DAYS ON MARKET

The average time it took to sell a home in the region was 41 days. This is a drop of 16 days compared to the second quarter of 2016, and 15 days shorter compared to the first quarter of 2017.
The biggest drop in the number of days it took to sell a home was in Orange County, where it took 25 fewer days to sell a home when compared to the same period last year.
Homes in San Diego County continue to sell at a faster rate than other markets in the region. In the second quarter, it took an average of just 25 days to sell a home, which is four fewer days than a year ago.
All five counties saw a drop in the amount of time it took to sell a home between the second quarter of 2016 and the second quarter of 2017.

CONCLUSIONS

The speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Southern California continues to add new households and job formation is still robust, which is adding to the already high demand for housing.

Mortgage rates remain relatively modest and the low level of inventory continues to drive prices higher as demand exceeds supply. The modest spring “bump” in listings that I was hoping for did occur though it was not enough to create a balanced market. With the market continuing to strongly favor sellers, I have moved the needle a little more in their direction.

If you are in the market to buy or sell, we can connect you with an experienced agent here.