Tag Archives: real estate

5 Reasons to Get Pre-Approved

Mortgage rates have recently been at a 12-month low. Depending on your credit and financial situation, you might currently be able to get a mortgage at around 4%. Here are some reasons why it’s critical you get pre-approved for your mortgage. I have a list of wonderful mortgage lenders, please drop me an email and I’ll be happy to forward to you.

Seattle Real Estate Market Update

Seattle prices continue to decline slightly for single-family homes, with a 4.6% decrease from the first quarter of 2018 to the first quarter of 2019. However, it’s important to note that we hit the peak of our market in spring 2018, so prices were near their highest point last March. Condos are where we’re seeing the biggest changes, with a significant amount of inventory on the market and a 9.6% decrease in prices. With our increased inventory we’re seeing that the number of days it’s taking a property to sell has increased substantially. But for properties priced properly, they are selling quickly, often on the first day it comes on the market and often with multiple offers. Yes, multiple offers are back, and not just 2 or 3 offers, but more than 10 on many properties.

What does this mean for you? If you’re a homeowner considering selling your property, do NOT overprice. Price is the number one determinant of buyers coming to see your home and placing offers. Overpriced homes will sit on the market.  And as we’re now in spring, the busiest time of the year for our real estate market, do not wait to list your home.

Buyers, this is a great time for you. With the increase in inventory, you have many more choices. Interest rates are the lowest they’ve been in the past 12 months, so your money will go further right now. It’s definitely the time to buy.

Let’s talk about your real estate needs. Give me a call at (206) 790-0081 or email me.

Increasing Net Worth Through Real Estate

The majority of American households own a primary residence, but did you know that homeowners have, in general, more net worth than their renter counterparts?

The National Association of REALTORS® tracks the relationship between renting, homeownership, and net worth. Every three years the Federal Reserve conducts their Survey of Consumer Finances to collect the data which is then analyzed.  In the most recent survey completed in 2016, the data showed that the median homeowners’ net worth ($231,000) was more than ti44mes that of the median renter ($5,200).

Equity in a home (the difference between what is owed on the mortgage and what the home may sell for in today’s market) is one of the biggest drivers of net worth.  When a renter pays rent, no equity is created for the renter – that goes straight to the landlord’s pocket! But when someone has purchased a home that monthly payment usually goes to paying down the loan, creating equity. The homeowner also receives the benefit of property appreciation – and if they don’t refinance, the principal and interest payment stays the same (assuming a fixed rate loan) whereas a renter may be faced with annual rent increases.

Of course, there are pros and cons to either renting or purchasing a home, and these should be considered before jumping into a home purchase. Appreciation and rental rates change from area to area and even neighborhood to neighborhood!

I would be happy to show you the possibilities. Please give me a call: (206) 790-0081 or send an email to Jamie@JamieFlaxman.com.

Is It Time to Move? 6 Telltale Signs

Most people dread the thought of moving, yet those same people love it when they move. Why? Most likely it’s emotional attachment and nostalgia for a beloved home. It’s understandable but yet a home that just doesn’t fit your needs any longer can make even the most loved home uncomfortable. Are you wondering if it’s time to move? Here are 6 telltale signs that you should consider putting the “for sale” sign up in your front yard.

1. Your Home is Too Small – One of the most common signs is that you’ve outgrown your home.

2. Your Home is Too Large – Life changes! Empty nesters often find the home too large and it’s maintenance too much when they finally have time to travel and relax.

3. Your Home is Too Expensive – Are you spending all your extra cash making repairs or do you want major upgrades to suit your lifestyle? Are property taxes getting too high?

4. The Neighborhood is Losing Value – Neighborhoods do change over time, if yours is declining consider a move.

5. Changing the Weather – Have you finally tired of shoveling snow? A move to a warmer state could be the right move.

6. Change is Good – The last great reason to move is to try something new. Different style or location, if the home isn’t making you happy any longer, time to move.

Give me a call at 206-790-0081 or email Jamie@JamieFlaxman.com to discuss your real estate needs.

The Internet Can’t Replace Your Agent

We live in the information age; the Internet offers advice on every topic and real estate is no exception. With more and more home buyers starting their home search online, they are bombarded with advice and information – it can be easy to think that you can learn everything you need to know just by reading articles online.

The truth is your real estate agent does much more than answer your questions and open doors with a special key. A professional real estate agent will be there every step of the way. They have the experience necessary to navigate the complicated home buying process and solve common hiccups that present themselves in every real estate transactions.

Your real estate agent is a local professional. They will start by presenting themselves to the other agent as someone who will work with them to see the transaction through to a successful conclusion. They have a network of professionals who will work as a team to help you through the process. These include such professionals as: lenders, title reps, escrow officers, transaction coordinators, home inspectors, contractors, and handymen, among others.

Most importantly, your agent is your ally in the home buying process. They negotiate on your behalf – armed with experience and understanding of customary charges, costs, and terms. They will ensure that the price you pay for the home is fair for the condition and neighborhood. They will negotiate repairs, if needed and make sure you are protected with the proper contingencies.

The Internet offers lots of great information, but the most important step you can take when buying a new home is hiring a local professional real estate agent. Their knowledge and expertise can’t be found by reading an article or two online.

Contact me at Jamie@JamieFlaxman.com or 206-790-0081 to discuss how I can help you with the real estate transactions.

Buying a Home Overseas

I just returned from an amazing vacation in Thailand. This was my first visit to Southeast Asia and I absolutely loved it. While visiting Bangkok, Chiang Mai, and Phuket, I imagined what living in Thailand would be like. For me, the hardest part would be learning the language and learning to drive on the left side of the road. The best part would be a home on the beach, swimming in the Andaman Sea, and watching glorious sunsets.

While I’m not at a point in my life to consider a vacation or retirement home in Thailand or anywhere else overseas, many are ready to make this move.

Although I am licensed to sell real estate only in Washington state, I still am able to help you with your overseas purchases and sales. Through Coldwell Banker, I have a network of real estate brokers throughout the globe. We have offices in 47 countries, including 4 offices in Thailand.

For more information on buying or selling a home, whether locally, nationally, or internationally, give me a call at 206-790-0081 or email Jamie@JamieFlaxman.com.

What’s Going on With the Market

The greater Seattle real estate market continues to show signs of a healthier, balanced market. While prices were down in January, we began to see the return of multiple offer situations. A lot of homes that were sitting on the market for a long period of time (60+ days) went pending, which is a good sign, but also shows why our Days on Market increased significantly in January. For example, in Seattle 364 single family homes sold in January for an average of 53 days on market. Of those 364, 110 sold in 0-14 days, 44 15-29 days, 66 in 30-59 days, and 144 in 60+ days. 

What this is telling us is that homes that have been priced properly are still selling quickly and that homes that have been sitting on the market have either had price reductions or sellers have accepted lower offers in order to get their homes sold. We see this when we look at sales to list price ratio, which at 98.1% for Seattle in January, means that sellers are taking lower offers. Additionally, with so much of the older inventory selling, we are seeing less homes available on the market, and with inventory low, the market still favors the seller.

Pricing properly is the key to getting your hold sold quickly and when you work with me, I will be analyzing the market daily to determine the best price at which to list your property.

For buyers, interest rates seem to have settled down, and even gone down a little. The Fed has said they don’t plan on raising interest rates again for awhile. This, coupled with lower sales prices, means it’s a great time for you to get in the market. 

For additional information or for a complimentary market analysis of your home, please call or text: (206) 790-0081 or send an email to Jamie@JamieFlaxman.com

Year in Review and Predictions for 2019

There were three themes that drove the real estate market in 2018—Supply, Demand, and Affordability. Although these are always at play, the increased pressure from all three were intense in 2018 and will continue throughout 2019. Let’s look at what makes up each of these areas and how they will impact the market in 2019. Our market did cool down in 2018, but not to the extreme that you may have heard in the media. In fact, as we look at year over year statistics from 2017 to 2018, prices were up 8.1% in King County and 10.1% in Snohomish County.

The big change we saw was an increase in inventory, yet we are still solidly in a sellers’ market with inventory at 1.7 months in King County and 1.5 months in Snohomish. A sellers’ market has less than 4-6 month in inventory.

As we look at Supply, Demand, and Affordability with these statistics in mind, we see that affordability is the most significant factor at play.

Supply – There are only three ways we get new inventory – existing resale homes, new homes, and foreclosures. The number of years we are staying in our homes has reached an all-time high of 10 years which is one of the main contributors to the inventory shortage (plugging up the resale pipeline). However, another contributor – and this is a big one – is the continued lack of new construction. We also don’t have many foreclosures to add to our inventory levels. Therefore, all three inventory supply sources are drying up instead of flowing.

Demand – Our economy is humming along. Unemployment is at almost historic lows, GDP is up, Consumer Confidence is up and Millennials are ready to buy. Therefore, demand has been high and will continue to be so. If it wasn’t for the affordability issues we are experiencing, Millennials would be buying up a storm.

Affordability – High demand for housing is causing prices to soar out of a comfortable price range for buyers. The cost for builders to build (land, labor, materials, and regulatory demands) are all rising at a pace that makes new construction less affordable. Interest rates are on the rise. All of these factors affect affordability and home sales.

These three factors are in a push-pull relationship which was very evident this past year when home prices peaked in May. The market then quickly reacted with an adjustment in inventory. There was an initial surge of new listings concurrent with a moment in which buyers had had enough and affordability reached a tipping point. That surge caused buyers to step back and assess the situation instead of moving forward, which caused another moment in which sellers were ready to sell but buyers were no longer willing to pay the inflated prices. Buyers figured out quickly that the market had hit its peak and they did not want to buy at the peak of the market. This led to even more inventory coming on the market with demand pausing as supply surged. Now that surge is receding – sellers who couldn’t get the price they wanted are taking their properties off the market and savvy buyers are working with sellers, allowing both parties to make their next move.

What can we expect in 2019?:

Housing Inventory – I believe the inventory surge that we will begin the year with will be absorbed as sellers get realistic about their prices or take their homes off the market. We will then see the spring and summer return to a more reduced inventory market. I expect buyers to also hop back into the market, trying to capitalize on interest rates that are expected to rise throughout 2019.

Housing Starts/New Construction – Our builders have not been able to keep up with the demand for new construction. Historically, we have needed 1.5 million units each year. That has recently increased to 1.62 million units. However, we are only on target to build 1.25 million units this year and next which means we are continuing to add to our deficit. Local issues in many areas such as zoning and water rights are also capping new construction opportunity. The cost of building supplies, labor, land, and regulation are causing problems for our builders and I expect these problems to worsen in 2019.

Home Price Growth – In Western Washington, we saw year-over-year median sales price grow 9.1% to $409,752, according to the Northwest Multiple Listing Service (NWMLS), and you can see from the charts on page 1 and this page how prices changed in King and Snohomish Counties as well as Seattle and Edmonds. Since I expect the pace of our market to downshift after the spring (with more balanced inventory than last year), I predict that median sales prices will continue to grow but at a smaller pace.

Interest Rates – The Federal Reserve has been trying to return the country to neutral for interest rates. The Fed raised interest rates in December but said they are not sure what they will do in 2019. I do expect that rates may rise as high as 5.75% by year-end. Rates had been as high as 4.94% last November for a 30-year fixed rate mortgage, but the rate slid back and as of December it was at 4.63%.

There are several “wild card” issues in 2019 which could affect the real estate market in a way that cannot be foreseen. Issues such as immigration reform, political uncertainty, the national debt, global issues such as Brexit, possible trade wars, and even the true impact of the tax reform changes may cause shifts in the real estate market that are unpredictable. That being said, I am excited for what 2019 has in store!

For additional information and how these issues may affect you, please call or text: (206) 790-0081 or send an email to Jamie@JamieFlaxman.com.




On-Line Security

I recently have had several credit cards compromised. On one, there were fraudulent charges. On another, someone called in to the credit card company and was able to be approved as an additional authorized user and was sent a credit card. This last one has scared me. The person who called in knew enough about me to convince the person at the bank that they were me. They knew my social security number (or at least last 4 digits) and my birthday.

So much information is online – someone could probably figure out my best friend’s name (from Facebook), where I was born (by searching public records), what high school I went to (again from Facebook), my mother’s maiden name (also in public records), and a host of other words I would use in security questions.

Here’s what I’m doing to protect myself.

  • Changing my user name and password on all websites
  • Making up a new BFF
  • Talking to the credit bureaus about protecting my ID
  • Making sure my privacy settings on Facebook and other social media sites are at the highest level possible
  • Purchasing a new wallet with RFID protection

If you have other ideas of things I or others can do, please let me know.

When you go to buy a home, your credit is critically important, don’t let it get messed up by people affecting your accounts. If you’d like further information, please call me a (206) 790-0081 or email Jamie@JamieFlaxman.com.