Market News • February 10, 2016

Oregon and Southwest Washington Real Estate Market Update

by Windermere Economics

ECONOMIC OVERVIEW

I’m happy to report that employment in Oregon continues to grow at a fairly healthy rate. Through November of 2015, the state added 51,000 new jobs for a growth rate of 2.9 percent. As we move into 2016, I anticipate that the region will continue to expand its job base, but at a slightly more modest pace.

In November the state unemployment rate was measured at 5.7 percent—down from 6.2 percent seen in September. In my last report I suggested that the increase in the unemployment rate was a temporary “blip” and it appears as if I was correct. I expect that this rate will also continue to contract as we move through the year.

HOME SALES ACTIVITY

Sales activity rose by 11.9 percent compared to the fourth quarter of 2014, with 14,600 home sales.
As we have seen in the past, sales rose at the fastest rate in smaller counties, with Hood River, Columbia, and Marion Counties leading the way.
Double-digit percentage increases in closed sales were seen in a majority of the counties, but we did see modest declines in four counties.
It was interesting to note that we are starting to see home sales slow in select counties. I believe this is due to a lack of inventory rather than any other reason.

HOME PRICES

Average prices in the region rose by 7.1 percent year-over-year to $308,373. We are starting to see a slowdown in price growth, but I attribute this to a lack of inventory.
When compared to fourth quarter of 2014, Skamania County continues to see the strongest price growth with home prices rising by 34.3 percent. This remains a function of the size of the market, which allows for substantial swings in price.
All but three counties saw prices rise compared to the fourth quarter of 2014, with eight counties showing double-digit percentage gains.
Prices fell in three counties, but again, these are counties where relatively few transactions take place so they are prone to extreme swings.

DAYS ON MARKET

The average days it takes to sell a home in the region dropped by 18 days when compared to the fourth quarter of 2014.
The average time it took to sell a home in the region was 100 days.
Klamath and Hood River Counties were the only two markets where the average time it takes to sell a home rose, but these are relatively small areas, so there’s no cause for concern.
It still takes less than a month to sell homes in the Portland area market.

CONCLUSIONS

The speedometer reflects the state of the region’s housing market using housing inventory, price gains, sales velocities, interest rates and larger economics factors. The Oregon economy continues to expand and I do not see this changing in the foreseeable future. However, similar to many West Coast markets, Oregon’s inventory constraints are becoming problematic. I believe we will see more listings come online in 2016 as home equity levels continue to expand, but unfortunately it will not be enough to meet demand, and the market will remain imbalanced. I have kept the needle at the same level as last quarter. The market currently favors sellers, but buyers are growing weary of multiple offer situations and are likely to wait for inventories to rise, which will hopefully happen in the Spring.

Looking forward, I believe 2016 will be a year of few surprises. Because it is an election year, I do not expect to see any significant governmental moves that would have a major impact on the U.S. economy or the 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.

Living • February 9, 2016

Keeping up with the Joneses: How Much Does it Cost to Update a Bathroom?

by Guest Author

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Ever wondered what it would cost to update your bathroom? Basic raw materials can range from $30 to…very high. Jenn and I decided to spend a little bit more on some beautiful, high quality floor tile and go middle-of-the-road with our fixtures (not IKEA but not Crate & Barrel). The most cost savings will be found in labor — we are doing all of the demo and install work ourselves once the professionals are finished with the behind-the-walls plumbing.

We love that our home was built in the 1940s and wanted to keep with the classic aesthetic of the house when choosing fixtures.

Here's our spend-to-date on the basic materials for our bathroom remodel:

Hexagon Carrara marble floor tile: $638
Grout (2 gallons): $110
Shower tiles, white subway: $181
Toilet: $168
Sink basin: $129
Pedestal sink base: $115
Bathroom light fixture: $100
Medicine cabinet with mirror: $108
Sink faucet: $32
Shower head, faucet and knob: $109

SUB-TOTAL: $1,690

We're hoping to keep our bathroom reno below $2,500 so I think we're on track! The return on investment for updating a bathroom is between $10,000-15,000 on average so not only will this suit our style better, it will also increase the resale value of our home. But of course, remodeling a bathroom takes more than just tile and a new sink. And you never know what unexpected cost you'll run into as you're taking down drywall and old tile.

What's not on this list:

Bead board for the walls
Backerboard for behind the tile
Tile adhesive
Tile seal
any paint or paint supplies
any tools
any labor… my dad and I are paying for that with blood, sweat and tears!

Onward and upward…

Tyler Davis Jones is a Windermere Real Estate agent in Seattle who, with his wife Jenn, recently traded in their in-city condo for a 1940s fixer-upper. Tyler and Jenn, along with the help of some very generous friends and family members, are taking on all the renovations themselves. You can follow the transformation process on the Windermere Blog or on Tyler’s website and Instagram.

Next week on the blog: how much does it cost to update a bathroom? (Part 2)

More • February 8, 2016

Windermere Foundation 2015 Year in Review

by Christine Wood

2015 was an incredible year for the Windermere Foundation. We reached a goal that we set back in 2013, which was to raise $30 million in total donations by the end of 2015. Not only did we reach that milestone, we did it three months early, thanks to the support of Windermere owners, agents, and staff that increased their giving, held more fundraisers, and brought new donors into the fold. With funds raised for the Windermere Foundation, our real estate offices are able to support local non-profits that provide much-needed services to low-income and homeless families in their communities.

Nearly $2.1 million was raised in 2015, for an overall total of $30,859,447 since the start of the Windermere Foundation in 1989. Donations from Windermere sales transactions accounted for 33 percent of the revenue and 67 percent came from additional donations from agents, owners, staff, and the public.

SUMMARY OF FUNDS, GRANTS & DONATIONS IN 2015

FUNDING BREAKDOWN

So how are funds used? Windermere offices get to decide how to distribute the funds their agents raise so that they may help organizations in their communities. Many offices choose to adopt families during the holidays. Like the Windermere office in Anchorage, Alaska which adopted two families in need. Both families were referred to them by the local elementary school. The school nurse said that when they were asked what they needed for the purpose of a wish list, they wrote down soap, toothpaste, towels and blankets. Also puzzles for the kids, and clothes. (Not your typical holiday wish list.) Well, our Anchorage office did more than purchase the requested items, they went above and beyond!

Each child received three outfits, socks, slippers, and warm jackets—and two toys. The moms received spa packages (soaps and lotions) and throw blankets. The dads received wallets and socks. All of the kids were so excited over the prospect of presents—one six-year-old girl ran around the house saying, “Thank you, thank you, thank you!” after receiving her gifts. Receptionist Breauna Cook was so moved by the experience that after she finished dropping off the gifts to the families, she adopted another family in need from another school, using her own money.

While holidays are a peak time of giving, many of our offices also support organizations throughout the year. The Windermere offices in Utah (Salt Lake City-Union Park, Park City, Park City-Kimball Junction, Salt Lake City-Sugar House, and Coalville) have been a dedicated partner of Family Promise – Salt Lake since 2007, going above and beyond through annual financial contributions and large volunteer service projects. Support from partners like Windermere allows Family Promise to provide safe shelters for families in need, as well as case management services to help facilitate lasting income and housing self-sufficiency. Families like Elizabeth’s.

Elizabeth had spent months job-searching and researching what apartments were the cheapest in Utah. She had been living in an area of California where there was a lot of crime and not a lot of opportunity. Elizabeth wanted to raise her three children in a safer and more community-oriented environment. So when she finally got a call from Walgreens, who said they would hold a job for her in Salt Lake, she packed up her family and made the move. Not having enough money for a deposit and first month’s rent, Elizabeth sought out shelters and found Family Promise – Salt Lake. There she found a comfortable, safe place to stay that included a storage unit to store her belongings.

“Coming to Utah was a big change to our lives. Living in churches and moving every week is a struggle when you have kids. And trying to keep two jobs while being in a shelter is another struggle and can be overwhelming at times,” says Elizabeth. “It was hard at first, but then we got an apartment within two months. Now, when I look around my new home, I am thankful for everyone in the Family Promise program who helped me get through it all.”

Thanks to our agents and everyone who supports the Windermere Foundation, we are able to continue to make a difference in the lives of many families in our local communities. If you’d like to help support programs in your community, please click on the Donate button.

To learn more about the Windermere Foundation, visit http://www.windermere.com/foundation.

More • February 5, 2016

#YourStoryIsOurStory: Starting from Scratch

by Windermere Staff

Kate and Peter spend a lot of their free time on Whidbey Island, WA. In fact, Peter practically grew up there. The island holds special meaning to them and their relationship. It was the place Kate first met Peter’s family, where they were engaged and eventually married. For a couple renting a small apartment in downtown Seattle, Whidbey also offered a great escape from the city. So before they upgraded their city apartment to a city condo, they decided to invest in some land for their future vacation get-away and eventual retirement property.

Windermere Real Estate agent Linda Casale was the perfect person to help Kate and Peter through this unique journey of finding an undeveloped piece of land on an island in the middle of the Puget Sound. Soon enough weekends were spent driving from lot to lot, kicking the dirt and taking in the views. After about a month of searching, Kate and Peter came across a very special parcel that they knew right away was “the one”, and immediately started dreaming of the life and the home they would build on it. Linda guided them through the process, which is very different than buying a home, and included identifying the right companies to assess the land and provide quotes for future improvements.

For Kate and Peter, finding a special place on Whidbey Island to call their own is an investment in their future together. While they don’t plan on living on Whidbey full-time just yet, they hope to build their dream home and plan for their future retirement in this special spot.

Throughout the year we will be posting some of our favorite #YourStoryIsOurStory videos, photos, and blog posts. Please take a minute to share your experiences, and follow #YourStoryIsOurStory on our blog, Facebook, Twitter, Instagram, YouTube, and Pinterest pages.

Living • More • February 3, 2016

Keeping up with the Joneses: Demo Day One

by Guest Author

This blog was written by Jenn Jones

Our closing date had finally arrived! We were officially the owners of our little Wedgwood home. We rushed over to the house as soon as we got the go-ahead with boxes delicately packed and a cheap bottle of lukewarm champagne. Tyler carried Addie over the threshold. We prayed in the kitchen together. It was one of my favorite moments we've shared to date.

Twelve hours later, we were back in the house, lit up in all its splendor by the morning light – but this time, we were not alone. We were surrounded by a swarm of contractors, worn tarps strewn over the original hardwood floors, walls missing huge panels of drywall. What happened to my beautiful home?! What had we willingly done?

This is normal right? To wonder if updating the plumbing and electrical was a good idea? Wasn't it fine before? I feel like I'm hurting the home!!

Enter my first lesson in home renovations: While it is slightly traumatizing to watch perfectly good walls be torn through, replacing things behind the walls is both nauseating and worth it. It will be worth it to give Addie a bath without wondering if there's water leaking behind the walls. It will be worth it to be able to plug in my laptop without worrying about tripping a breaker. Actually, I don't even think we have a breaker box…the electrical is that old!

Let the renovations march on. Goodbye orange countertops. Farewell nasty linoleum. And as my husband says, "Onward and upward…"

One change I will not second guess… removing the window from the bathroom. Because it’s a stained glass bear with a hat and a honey jar. And because that bathroom honey-bear window leads into… wait for it… another room!”

Next week on the blog: how much does it cost to update a bathroom?

Market News • February 2, 2016

Western Washington Real Estate Market Update

by Windermere Economics

ECONOMIC OVERVIEW

The Washington State economy has added almost 370,000 jobs since the lowest point of the recession at the start of 2010. Additionally, total employment is 176,000 jobs higher than seen at the 2008 peak. With a vast majority of our metropolitan areas having fully recovered from the job losses seen during the recession, I expect to see somewhat more modest job growth in the coming year. That being said, our economy will continue to expand, which will be a benefit to our region’s housing market.

HOME SALES ACTIVITY

There were 16,895 home sales during the fourth quarter of 2015, up by 4.6% from the same period in 2014. Sales activity is starting to slow somewhat but this is due to inventory constraints.
The growth in sales was most pronounced in Cowlitz and Lewis Counties and double-digit growth was also seen in Thurston County. Sales declines were seen in Grays Harbor County and Skagit County, but only minimally.
The number of home sales grew in all but two counties, with the average number of sales up by almost 6% from the same period in 2014.
I am not surprised to see some decline in sales start to appear. Listing activity was down by 28% compared to the fourth quarter of 2014, and there were no counties where there were more homes for sale in Q4-2015 versus Q4-2014.

HOME PRICES

Prices in the region rose by an average of 9.3% on a year-over-year basis but were
0.4% lower than seen in the third quarter of 2015.
Unsurprisingly, no counties saw a drop in average home prices compared to fourth quarter last year.
When compared to the fourth quarter of 2014, San Juan County again saw the fastest price growth with an increase of 37.6%. However, this county is notorious for extreme swings given the huge variations in prices in the San Juan Islands. Double-digit percentage gains were also seen in five other counties.
As long as inventory constraints persist, it is likely that price growth will continue.
That said, modest increases in interest rates, in combination with declining affordability conditions in several markets, will likely slow price appreciation.

DAYS ON MARKET

The average number of days it took to sell a home dropped by nine days when compared to the third quarter of 2014.
It took an average of 78 days to sell a home in the fourth quarter of this year—down from the 91 days it took to sell a home in fourth quarter of last year.
There were just two markets where the length of time it took to sell a home did rise, but the increases were minimal. Jefferson County saw an increase of eight days while Mason County rose by two days.
King County remains the only market where it takes less than a month to sell a home.

CONCLUSIONS

This speedometer reflects the state of the region’s housing market using housing inventory, price gains, sales velocities, interest rates, and larger economics factors. For the fourth quarter of 2015, I have left the needle at the same position as the previous quarter. In as much as the market is still very heavily in favor of sellers, I fear that some markets are reaching price points that will test affordability. Furthermore, while inventory levels are likely to see some growth in 2016, it will not be enough to satisfy demand, adding further upward pressure to prices.

Overall, 2015 was a stellar year with sales volumes and home prices moving higher across the board. In 2016, I believe we’ll see some growth in sales activity, as well as continued price growth – just at more modest levels than last year. Interest rates are going to rise moderately through the year, but still remain very competitive when compared to historic averages. In other words, any increase in interest rates should not be a major obstacle for home buyers.

Living • January 26, 2016

Keeping Up with the Joneses: Home Renovations

by Guest Author

Our Dream

Jenn and I have long desired that our story would involve owning a home in Seattle in a great school district, with plenty of room for Addie to grow up, and space to host our friends and family overnight. But with home prices in Seattle rising higher every month (the median being $562k right now), this dream seemed like a stretch. We knew that the only way to make our dream become a reality would be to save our money diligently and buy a fixer that we updated ourselves.

With determination and a tight budget (I plan to write on budgeting for your future home soon), we worked hard and saved for the last two years. I'm excited to announce that our dreams became a reality today! We are now the proud owners of a beautiful 1941 4-bedroom, 1.75-bathroom home in the cozy neighborhood of Wedgwood, Seattle!

What's Next?

This is an exciting time, but we can't celebrate just yet as the house hasn't been updated since the 1960s! With knob and tube electrical, galvanized plumbing, an awkward 70's bathroom, and a kitchen that is straight out of Mad Men, we have a whole lot of work ahead of us!

We Want To Share Our Experience

While I sell real estate as a profession, and have been a part of many remodeling projects with clients, the truth is I'm a layman when it comes to DIY. It's in that spirit that I want to share the experience of our home renovation with you.

My goal will be to honestly share the highs and lows, as well as break down the budget of what it actually costs to create our dream home. I hope that you find this journey helpful, humorous and maybe even inspirational.

Next week on the blog: demolition day!

More • January 25, 2016

Make 2016 A Year of Service

by Marilou Ubungen

On January 18, 2016, many people across the U.S. engaged in service activities on the federal holiday to honor the life and teachings of Dr. Martin Luther King, Jr., and to continue his legacy of service. The MLK Day of Service is also a part of United We Serve, the President’s national call to service initiative which is built upon the belief that ordinary people can come together and achieve extraordinary things when given the proper tools.

If you did not get a chance to volunteer on MLK Day, there are many opportunities for you to get involved and help out others in your community throughout the year. You can visit Serve.gov to find volunteer opportunities near you.

Here are some ideas for how you can help out in your community:

Collect food for your local food bank. They are always in need of donations—and not just during the holidays. There is a great need during the summer when schools are on break, and subsidized breakfast and lunch programs are not available for children.
Volunteer at your local food bank. You can come in as an individual, or plan a group outing with co-workers, friends, or family members and help sort and pack food items.
Help prepare and serve food at a homeless shelter or community center. The staff will appreciate the help, and the patrons will enjoy interacting with others in their community.
Help build and renovate homes. Volunteer with an organization like Habitat for Humanity in your community, or sign up for volunteer trips throughout the U.S.
Participate in a neighborhood, park, or beach cleanup. Many neighborhood organizations have at least one yearly event where they garden, paint, or clean up an area within the community.
Support a backpack/supply drive. Most schools have a backpack and school supplies drive before the beginning of each school year. You can volunteer to help collect and sort items, or donate money and supplies.
Collect warm coats and blankets for the winter season. While shelters need donations throughout the year, warm coats and blankets are in most need during the fall and winter season.

If you are not able to volunteer your time, but would still like to help, then another option is to donate money. This is probably the best way you can help out organizations that serve your community. No matter what the amount, every little bit counts. Many organizations, such as food banks, can make your donation dollars stretch further and serve more people through their partnerships with various organizations.

Not sure where to donate your money? You can always make a donation to the Windermere Foundation and designate your funds to the Windermere Real Estate office nearest you. This ensures that your donation will go towards supporting non-profit organizations that serve people in need in your community. For more information about the Windermere Foundation, please visit http://www.windermere.com/foundation.

Please consider donating your time and money throughout the year, and help us make 2016 a year of service. Together, we can make a positive impact in our communities.

Living • January 20, 2016

New Year, Bold Home

by Guest Author

This article originally appeared on WindermereSeattle.com

"New year, new me" is so 2015. We thought we would change things up a bit because frankly, 2016 deserves better and so do you. This is the year to be bold. In fact, if there was a color named "bold" we would recommend it for your kitchen remodel. Once a month we will be showing you a different way to go bold with your home. These will be easy, inexpensive changes to add character and life to various rooms and spaces.

Our first? Colorful, crafty storage. Many New Year's Resolutions include decluttering your life. Not only is this great for your house, but it can also be very therapeutic. However, instead of putting the same old containers or storage back on your shelves, opt for a modification. For those of you who are more DIY, try painting the lids of mason jars your favorite bright color. If you are more of an online shopper than DIY queen, we found some storage options that are cute and simple: These are the perfect solution to keeping your kids playroom tidy, while still feeling fun friendly. Try these for your office space that feels a little dull and in need of inspiration. If you'd rather do something more permanent, paint the back wall of your storage shelves, it adds dimension and character. If you don’t want to permanently color your bookcases, try fabric or wallpaper. If you choose wallpaper, tie in the color with the items that are filling the shelves (hint: match to your mason jars).

We've mandated that 2016 is the year to be bold, but to also have fun. So start by adding some color to otherwise boring old storage spaces! If you go bold with your home each month this year, you can bet that the ending of 2016 will be sweeter than last.

More • January 15, 2016

#YourStoryIsOurStory: The New Kid on the Block

by Windermere Staff

When starting a family, home takes on a special meaning. But what happens when you decide to start looking only seven days shy of your due date? Well, Andrew and Mandy called their Windermere Real Estate agent, Erin Mitchell Hoppe. Erin had to act quickly, so she made a plan to look at the best prospects in a very short timeline. Within days, Andrew and Mandy found the home that was a perfect fit, and Erin was able to negotiate mutual acceptance the next day. Luckily, the listing agent worked for Windermere too, so she felt confident the process would go smoothly.

Being the ever so prepared real estate agent, Erin made sure to google “how to deliver a baby at home” just in case they got an unexpected surprise during the home inspection. Two days later, the New Kid on the Block arrived, and within the month, Andrew, Mandy, and their newest addition were moved into their new home, just in time to celebrate baby’s first Christmas.