Market News • October 26, 2020

2020

by Windermere Economics

In today's episode of "Monday with Matthew," Windermere Chief Economist Matthew Gardner dives into three of the latest housing market data releases and gives context to their historical significance.

Market News • October 26, 2020

Western Washington Real Estate Market Update

by Windermere Economics

The following analysis of the Western Washington real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

REGIONAL ECONOMIC OVERVIEW

Employment numbers in Western Washington continue to improve following the massive decline caused by COVID-19. For perspective, the area shed more than 373,000 jobs between February and April. However, the recovery has been fairly robust: almost 210,000 of those jobs have returned. Unemployment levels remain elevated; the current rate is 8.2%. That said, it is down from 16.6% in April. The rate, of course, varies across Western Washington counties, with a current low of 7.2% in King County and a high of 11.2% in Grays Harbor County. The economy is healing, but the pace of improvement has slowed somewhat, which is to be expected. That said, I anticipate that jobs will continue to return as long as we do not see another spike in new infections.

HOME SALES

Sales continued to improve following the COVID-19-related drop in the first quarter of the year. There were 25,477 transactions in the quarter, an increase of 11.6% from the same period in 2019, and 45.9% higher than in the second quarter of this year.
Listing activity remains woefully inadequate, with total available inventory 41.7% lower than a year ago, but 1.6% higher than in the second quarter of this year.
Sales rose in all but two counties, though the declines were minimal. The greatest increase in sales was in San Juan County, which leads one to wonder if buyers are actively looking in more isolated markets given ongoing COVID-19-related concerns.
Pending sales—a good gauge of future closings—rose 29% compared to the second quarter of the year, suggesting that fourth quarter closings will be positive.

HOME PRICES

Home-price growth in Western Washington rose a remarkable 17.1% compared to a year ago. The average sale price was $611,793.
When compared to the same period a year ago, price growth was strongest in Mason, Island, and San Juan counties. Only one county saw prices rise by less than ten percent.
It was even more impressive to see the region’s home prices up by a very significant 9.4% compared to the second quarter of 2020. It is clear that low mortgage rates, combined with limited inventory, are pushing prices up.
As long as mortgage rates stay low, and there isn’t an excessive spike in supply (which is highly unlikely), prices will continue to rise at above-average rates. That said, if this continues for too long, we will start to face affordability issues in many markets.

DAYS ON MARKET

The average number of days it took to sell a home in the third quarter of this year dropped two days compared to a year ago.
Snohomish County was the tightest market in Western Washington, with homes taking an average of only 16 days to sell. All but two counties—Lewis and San Juan—saw the length of time it took to sell a home rise compared to the same period a year ago.
Across the region, it took an average of 36 days to sell a home in the quarter. It is also worth noting that it took an average of 4 fewer days to sell a home than in the second quarter of this year.
The takeaway here is that significant increases in demand, in concert with remarkably low levels of inventory, continue to drive market time lower.

CONCLUSIONS

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

High demand, favorable interest rates, and low supply clearly point to a seller’s market in Western Washington. As such, I am moving the needle even more in favor of sellers.

As I suggested earlier in this report, although the market is remarkably buoyant, I am starting to see affordability issues increase in many areas—not just in the central Puget Sound region—and this is concerning. Perhaps the winter will act to cool the market, but something is telling me we shouldn’t count on it.

ABOUT MATTHEW GARDNER

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

Buying • October 19, 2020

The Remote Worker’s Home Buying Process

by Windermere Staff

Image Source: Getty Images

The pandemic’s influences on home life are far-ranging, prompting buyers to look at home ownership through a new lens. Remote work has created a paradigm shift in the wants and needs of homebuyers. Here’s what the remote worker should keep in mind when looking to buy.

Location

The location, location, location cliché has taken on new meaning for homebuyers who work from home. Because remote work gives us the opportunity to work from anywhere, home searches are expanding. Work commute times typically play a significant role in the home buying process; however, many buyers now have the option to view homes further away from their places of work.

Those who previously dreamed of the quiet life, but didn’t want the commute that came with it, are now able to make a move toward a more suburban environment. If you prefer to be away from the hustle and bustle of a downtown area but don’t want to feel isolated, search for properties in the suburbs with active town centers.

The proper space

When COVID-19 began sending workers home in the early months of 2020, homeowners worldwide discovered their varied level of preparedness for remote work. Some had spacious home offices and were able to make the transition easily. Others had to create makeshift workspaces out of living rooms or bedrooms. What we have learned is that a dedicated workspace is paramount to productive remote work, its importance emphasized by the unknown timeline of a return to working in-person in many parts of the country.

Before you buy:

When searching for homes, understand that a home office situated in an open floor plan is more prone to distraction.
Look for features such as an additional bedroom, finished basement, or bonus room that offer ample space to create your remote work environment.
Having a designated space you can associate solely with work will not only drive your focus but helps to balance your home and work life. It allows you to wrap up the workday, leave your home office, and easily transition back into the goings on of your household.

After you buy:

Light it up: You’ll want plenty of light in your home office to stay fresh throughout the work week. If you are next to a window, let in as much natural light as possible. Add in desk and floor lamps to brighten your space.
Work comfortably: While working at home, it’s easy to sit in one place for hours on end. Shop for comfortable desk chairs that provide proper lumbar support. Explore alternatives to desk chairs like yoga balls and standing desks.
Personalize: Adding personal touches will help to make your home office feel comfortable. Inspirational quotes, your favorite artwork, and pictures of loved ones are all types of décor that will keep you inspired in your remote work.

For all these considerations and more, talk with your Windermere agent about how your remote work is shifting where you’re looking for a home and what you’re looking for when it’s time to move there.

Living • October 14, 2020

Modern Design Trends

by Windermere Staff

Image source: Shutterstock

Modern design can tie your home together while making a statement. Getting to know the modern farmhouse, mid-century modern, and industrial design trends will help to determine which is best for your home.

Modern Farmhouse

Bringing country living to wherever you call home, modern farmhouse is a style marked by sleek lines, vintage touches, and natural textures that still delivers a comfortable feel. Widespread use of the term “modern farmhouse” did not pick up steam until the mid-2010s, only gaining in popularity since.

In your home:

Color: A defining characteristic of the modern farmhouse is a whitewashed palette, which offers a satisfying contrast to the use of natural wood. Cream is also a popular choice. Floral accents are typically used to add depth to the whitewashed backdrop.

Features: Exposed beams, antique items, and rustic décor form the makeup of a modern farmhouse-inspired dwelling. Barn lighting and gooseneck lamps are the most fitting lighting choices. Round out your modern farmhouse look with shiplap wherever you see fit, board-and-batten siding, and Shaker cabinets for your kitchen.

Mid-Century Modern

A movement begun in—you guessed it—the middle of the twentieth century, mid-century modern (MCM) took shape in a post-war America that saw a migration to urban areas, thus influencing design of the era to be more mindful of smaller living spaces.

In your home:

Philosophy: Mid-century modern is as much an artistic movement as a design trend. MCM designs are simple in form, emphasizing function and organic influences, and are meant for everyone to use. Consider these characteristics when planning your décor.

Color: The color palette most commonly associate with MCM is earthy tones. If you’re looking to add more pop but want to stay true to the earthy palette, experiment with pastels.

Furniture: Typical MCM design features in furniture include juxtaposing larger pieces with skinny legs, peg legs, the use of lighter-colored woods such as teak, and fun geometric shapes. Beloved favorites include credenzas, dressers, and egg chairs.

Industrial

Inspired by warehouses, factories and unexpected materials such as shipping containers, Industrial design brings home the raw, hardwearing aesthetic typically associated with spaces like reclaimed yards, hangars, and ports. Customization is popular in Industrial design, and like mid-century modern, simplicity is emphasized.

In your home:

Color: The Industrial color palette is predominantly neutral. Texture is a more defining feature than color, which gives you flexibility when it comes to decorating. With neutral colors, it is easier to keep your home’s color palette aligned and complimentary.

Materials: How do you make your home feel like a warehouse? Materials go a long way in accomplishing this. Industrial go-to materials for furniture and beyond include wood, aluminum, copper, steel, stone, and tin. Avoid soft materials like plush that would take away from the hardworking feel inherent in Industrial.

A touch of nature: Due to its emphasis on recycled and reused materials, plant life and nature-centric accents are fitting compliments to Industrial design. Indoor plants, cactus, and flowers are popular items for sprucing up an Industrial space while adding an appropriately placed touch of color.

Although these trends vary in style and application, they all share a statement-making capability. When incorporating them into your home, know that any of these features will definitively shape the look and feel of your home.

Market News • October 12, 2020

Matthew Gardner COVID-19 Housing & Economic Update 10/12/2020

by Windermere Economics

On this week’s episode of "Mondays with Matthew," Windermere Chief Economist, Matthew Gardner, takes another look at mortgage rates and forecasts what we can expect in the coming months for rates, affordability, and inventory.

More • October 9, 2020

Windermere Offices Continue to Give Back Through COVID-19

by Windermere Staff

Pictured L to R: Hoku Beebe, Samantha Dallas, Emma Reeves of Windermere Spokane

Through the challenges and restrictions of the COVID-19 pandemic, Windermere offices have stepped up to support their local communities.

Windermere Utah

In an effort organized by Windermere agent Lisa Jungemann, the Utah office donated $5,000 through the Windermere Foundation to the American Foundation for Suicide Prevention, an organization dedicated to saving lives and bringing hope to those affected by suicide. Jungemann also hosted a fundraiser and short walk for AFSP’s Walk Out of Darkness Day on September 12, bringing the total amount raised to $22,300. Walk Out of Darkness is a part of the organization’s signature fundraising series of community, campus, and overnight walks.

Windermere RE/Maple Valley

The Storehouse Covington Food Bank is an organization near and dear to Windermere agent Diana Patterson of the Maple Valley office. Since 1999, The Storehouse’s vision for the Covington community has been to empower their neighbors to reach their full potential by reducing food insecurity. Once on the receiving end of their services, Patterson now serves as a volunteer in an effort to give back to her community. Noticing the strain the COVID-19 pandemic placed on The Storehouse’s ability to serve its community, Patterson partnered with the organization in April for a two-day drive through donation event to replenish their shelves. The effort yielded 1,227 pounds of food and raised over $2,000 in donations.

Diana Patterson with some of the donations for The Storehouse Covington Food Bank

Windermere Spokane

The Windermere Spokane team partnered with their local Big 5 Sporting Goods store to support Family Promise of Spokane, purchasing roughly 90 pairs of shoes and socks for children in the community to start their new school year off on the right foot. Family Promise specializes in connecting homeless families to their neighborhoods, increasing support networks and re-enforcing the skills needed to maintain housing.

Pictured L to R: Laura Zahn, Barb Pielli, and Wendy Shiley handing out socks at the Spokane Big 5 Sporting Goods

Windermere Homes & Estates

Windermere Homes & Estates and Feeding San Diego have made a significant impact for the those in need in their community. Feeding San Diego, a member of Feeding America, envisions a hunger-free and healthy San Diego by connecting every person facing hunger with nutritious meals by maximizing food rescue. Including donations made during our Neighbors in Need campaign this year and a canned food drive during the holidays last year, the Homes & Estates team’s efforts have provided 665,000 meals to the San Diego community.

These are just some examples of the commitment to serve that offices throughout our network have shown during the COVID-19 pandemic. We will continue to showcase these stories as we persist in our support of those in need throughout our local communities.

To find out more about the Windermere Foundation or to make a donation, please visit windermerefoundation.com.

Selling • October 7, 2020

10 Steps to Selling Your Home

by Windermere Staff

Navigating everything involved with selling your home can seem intimidating. Breaking the process down step by step will keep you organized and ready to work with your agent toward a successful home sale.

1. Choose an Agent

A lot goes into choosing the right agent. If you’re unsure where to start, get referrals from trusted friends, family, and neighbors. Although the ultimate goal is the sale, think about your compatibility outside of the transaction. Their ability to connect with you on a human level through the ups and downs of a home sale is just as important as their expertise and knowledge of the market.

2. Set a Timeline

Depending on your local housing market conditions, your timeline for selling your home may vary. However, a timeline is valuable in that it will keep you organized throughout the selling process and allows you to adjust if circumstances change. Your agent will work with you to build the ideal timeline.

3. What is Your Home Worth?

The key to selling quickly is correctly pricing your home from the first day it hits the market. In particular, overpricing can lead to serious complications in the selling process. Your agent can provide you with a Comparative Market Analysis (CMA) to better determine the best price of your home. CMAs provide information on comparable home sales in your area, both pending and sold, within the past six months.

While an agent will always have the best information, you can also try our automated value estimate tool as a starting point. Our seller page features home values and market information about what buyers are looking for in your area.

4. Repair & Upgrade

Now it’s time to get to work on the house! This is the perfect time to tackle any and all outstanding projects or repairs. Create a list separating which repairs can be done yourself and which need professional attention. This is the time to consider a pre-sale home inspection to identify structural and mechanical problems before your home is on the market.

5. Make the Best First Impression

Making an impactful first impression goes a long way in the minds of buyers, so roll up your sleeves and prepare to check off that to-do-list. Start by cleaning up the garden and lawn, clearing out gutters, and adding color to your flower beds. Apply a fresh coat of paint anywhere you spot peeling or cracked paint. A great way to make an impact is by staging your home, with the goal of making each room feel as spacious and welcoming as possible.

6. Show Your Home

Discuss virtual home tour options with your agent and other ways to generate maximum buyer interest. For in-person showings, it’s best that you leave the premises so the buyer can freely ask their agent questions and visualize the home as their own.

7. Offers & Negotiation

If you are in a seller’s market—defined by low inventory and high buyer competition—it is likely that you will receive offers at – or above – asking price. You can respond to an offer by a) accepting the offer, b) making a counteroffer, or c) rejecting the offer. Counteroffers should always be made in writing and provide a short window of time for the potential buyer to respond. If you are selling in a buyer’s market, you may have to be more open to negotiation. Discuss negotiation strategies with your agent to work toward a satisfying final price.

8. Prepare for Closing Costs

There are costs throughout the selling process, and as the close date approaches, that remains true. Be sure to budget for your real estate agent’s commission, and other common seller’s costs like title insurance, recording fees, and government transfer tax, among others.

9. Home Inspection

Buyer offers are usually contingent upon a professional home inspection. Ask your agent for a home inspection checklist, so you know what the inspector is looking for ahead of time. They typically inspect the home’s foundation, structure, roof, plumbing and electrical systems, floors, windows, doors, and more for signs of damage and weathering.

10. Closing Time

Congratulations! Your home is sold, but there are still some final steps before the deal is done. This is the time to ask the buyer to release any contingencies, sign the title, and close escrow before handing over the keys. Consult your real estate agent for any questions about legal documentation and settlement costs.

If you’d like more information about selling your home, an experienced Windermere Real Estate agent is ready to help. Click the button below to get started.

More • October 5, 2020

Our Commitment to Change: A Message to Our Community

by OB Jacobi

For nearly 50 years Windermere has been deeply rooted in the communities where we do business. However, the resurgence of the Black Lives Matter movement has made us realize that our roots don’t extend as deep as we thought. It also made us realize that over the decades, the real estate industry has played a significant role in exacerbating systemic racism through redlining and steering, which has prevented many members of historically marginalized communities from building wealth through homeownership.

This summer, we began a robust diversity, equity, and inclusion journey supported by an organization called Moving Beyond that specializes in helping companies integrate and operationalize DEI. Next, we formed two internal workgroups, with a diverse makeup of Windermere franchise owners, managers, agents, and staff to guide and implement DEI efforts across our 10-state organization.

Following three months of collective conversations, we have identified several short- and long-term initiatives on which to focus – all with the aim of building a diverse organization that fosters a sense of belonging and provides equal opportunity across all aspects of homeownership for people of color. Some of these activities can be acted upon right away, as we develop a long-term strategic direction for our DEI efforts.

We’re committed and in it for the long haul, and believe transparency is a critical part of this journey, so here is an update about our goals and progress thus far:

● In August, we conducted an internal survey among our owners, managers, and staff, to create a benchmark of where we are as a company and help guide the direction that we need to take to advance our DEI initiatives. An agent survey is forthcoming in 2021.

● We are producing informational content related to CC&Rs to educate homeowners on how to remove racially restrictive language from their title reports in the 10 states where Windermere operates.

● We are working with an advertising agency that specializes in inclusive and future-forward marketing to evaluate our digital marketing products through a DEI lens.

● We have designated funds for a scholarship program that invests in people of color who want to work in real estate, and are designing training and mentoring programs to aid in their success.

● We are building internal DEI training and development programs, starting with franchise owners, managers, and staff, with plans to expand to agents in 2021.

● We are analyzing our hiring processes to ensure broader representation by people of color.

● We’re generating insights from all these efforts to help us develop a set of thematic pillars to guide our DEI goals and strategy over the long term.

● We’re planning on listening sessions this fall for the Windermere community to continue to have input in this process.

This is just the beginning of what we know will be a long-term journey of awareness and accountability. We are focused and determined to do our part to address discrimination, racism, and inequity within Windermere and the real estate industry. Our efforts stem from the recognition that there is a long history of housing discrimination in the United States and that the inequality in homeownership has deepened the racial divide. Through our work we hope to play a role in finding ways to correct these inequalities. We realize we were late to this movement and should’ve spoken up sooner, but our eyes are open, and we are committed to leading the way towards positive change from here on out.

Market News • October 5, 2020

Matthew Gardner Weekly COVID-19 Housing and Economic Update: 10/5/2020

by Windermere Economics

This week on "Mondays with Matthew" our Windermere Chief Economist Matthew Gardner covers last week’s top economic headlines. Watch here for updates on the latest Case-Shiller and Consumer Confidence indexes.

Living • September 30, 2020

A Guide to Going Low-to-Zero Waste

by Windermere Staff

Image Source: Shutterstock

Making the switch to a more sustainable household won’t happen overnight, but there are simple steps you can take to cut down on your home’s waste.

Start your waste-reducing process by getting to know your local disposal guidelines. What you can recycle varies at both the state and city level. Check your local municipality’s website for recycling rules and more information, like whether you need to separate your recycling and if your community accepts food and yard waste for composting.

Waste-reducing principles

Instilling some basic principles of waste reduction into your household will create a solid foundation to build upon.

Only buy what you will eat. Food waste is a common problem in households everywhere, and the best remedy is to plan ahead before you take your next trip to the grocery store. This method of planning meals will reduce the chances of throwing away unused food items and minimize your food waste overall.
Keep your recycling clean. It doesn’t take much time to give your recyclables a quick rinse, but it makes a big difference at the recycling center. Avoid recycling items like plastic bags, greasy take-out food containers, and batteries, which contaminate the rest of your recycling.
Use containers for drinks. Bottled water and paper coffee cups are wasteful and, unfortunately, ubiquitous. By purchasing a durable metal or glass water bottle and a thermos for coffee, you will greatly reduce the waste that comes as a byproduct of daily beverages.

In-home waste reduction

Reducing waste in the kitchen, bathroom, and yard will make a significant difference in the amount of overall waste generated at home.

Kitchen

Reusable containers: Adding plastic and glass containers to your kitchen repertoire will not only help to reduce food waste, but they will decrease your use of plastic. Mason jars are useful for storing bulk items such as rice, beans, and oatmeal.
Single-use alternatives: Single-use items like paper towels, paper plates, and plastic cups can be replaced by reusable alternatives. Use kitchen rags to clean up instead of paper towels and hand wash all plates and cups when possible.
Countertop compost: Set up a small compost bin on your countertop to ensure all compost is accounted for during food prep. When the container is full, take it outside to a larger outdoor compost pile or container.

Bathroom

Cut down on plastic: For common bathroom items like shampoo, conditioner, and body wash, consider buying in bulk and using a personal container for each. This saves money and reduces the amount of plastic on your bathroom shelves. You can also look for similar products in bar form.
Continue to recycle: Your home’s recycling practices should go beyond the kitchen. Place a recycling container next to all bathroom garbage bins throughout the house to ensure you dispose of recyclable products properly.
Reusable razors: Plastic razors have a short shelf life and pose serious recycling problems. Explore more eco-friendly shaving products next time you buy. Look for companies with razors that last and offer subscriptions for replacing blades.

Yard

Compost: Composting is one of the best things you can do to help reduce waste. Fruits and vegetables, eggshells, coffee grounds, as well as things like yard trimmings, houseplants, and fireplace ashes are all compostable. If you don’t have the space for an outdoor compost, see what community composting options are available near you.
Other: If you live in a rainy climate, explore installing rainwater catchments in your home. Check for local regulations and tips on preventing pollution before proceeding with any rainwater harvesting.

For additional tips on how to reduce waste at work, at home, and in your community, visit the Environmental Protection Agency’s guide here: Reduce Waste – EPA.