|
Seattles Greatest Homes
Real Estate Continues to Show Unprecedented Strength This Year
The 2020 housing market has surpassed all expectations and continues to drive the nation’s economic recovery. The question is, will this positive trend continue throughout the rest of the year, especially given the uncertainty around the current health crisis, the upcoming election, and more?
Here’s a look at what several industry-leading experts have to say.
Lawrence Yun, Chief Economist, National Association of Realtors
“Home sales continue to amaze, and there are plenty of buyers in the pipeline ready to enter the market…Further gains in sales are likely for the remainder of the year, with mortgage rates hovering around 3% and with continued job recovery.”
Frank Martell, President and CEO, CoreLogic
“Homeowners’ balance sheets continue to be bolstered by home price appreciation, which in turn mitigated foreclosure pressures…Although the exact contours of the economic recovery remain uncertain, we expect current equity gains, fueled by strong demand for available homes, will continue to support homeowners in the near term.”
Zillow
“Zillow’s predictions for seasonally adjusted home prices and pending sales are more optimistic than previous forecasts because sales and prices have stayed strong through the summer months amid increasingly short inventory and high demand.
The pandemic also pushed the buying season further back in the year, adding to recent sales. Future sources of uncertainty including lapsed fiscal relief, the long-term fate of policies supporting the rental and mortgage market, and virus-specific factors, were incorporated into this outlook.”
Bottom Line
Many economists are in unison, indicating the housing market will continue to fuel the economy through the end of the year, maintaining this unprecedented strength.
SOURCE: Keeping Current Matters
Nouvelle Retirement - Words from Leonard Steinberg
Over the past few months I have had countless clients speak to me about the subject of their 'next chapter' - entering what we have traditionally termed retirement - yet it's a very different version of what we know. I have done lots of research on the subject to help give substantive advice and here are some things I have learned:
1. Many people who retire continue working in some capacity. Some even start new careers and work harder than ever before. Real estate brokerage is a perfect example. Homes should accommodate this if they plan to work from home full time or part-time. My Dad was busier in retirement managing his money than when he owned and operated his business.....you need a place to do so effectively and enjoyably.
2. Most who retire assuming they will start volunteer work, don't, mostly because they cannot find the time to do the volunteering because they are so busy....
3. Most underestimate the fact that health issues will more than likely alter their plans or curtail them. Wherever you choose to live, what is the quality of healthcare and proximity to emergency care? A stroke or heart attack treated within minutes delivers significantly different recovery results than a stroke treated an hour or more later.
4. Most underestimate the cost of housing. While many have achieved zero debt on their homes, they still have to factor in the costs of real estate taxes, maintenance, and repairs. And re-decorating. And those costs with inflation.
5. Many make the mistake of focusing on the home they will live in rather than the place that home is located in. Your neighborhood, surroundings, neighbors, amenities, access, walkability, etc are as important as the home itself. How important are esthetics to you? Do you like going to the same cafe for coffee every day or do you like multiple choices? Are three good restaurants enough for you or do you want twenty? How important are cultural institutions like the theater, opera, art galleries, museums, etc?
6. Happy, healthy relationships and friendships make for happier people. Being close to these people matters. Making new friends is wonderful but not easy for some.
7. Women have to have more money in retirement: they live longer on average! And if married, it's possible they will outlive their spouse.
8. Physical activity is key to longevity: where will you work out and exercise and what sort of activities will you be able to do as you age?
9. One of the keys to healthy longevity is mental agility and stimulation. While a cottage in the middle of nowhere can sound awfully appealing, its practicality as it relates to mental stimulation can be very limited. Yes, you can do so much learning online, but learning in a group can be lots of fun, more stimulating, and infuse a social aspect to your life: are there good learning institutions in your area?
10. Do you or don't you like the heat? Many retirees are automatically attracted to warmer climates....then some discover some of those climates are unbearable. Often they deliver high levels of humidity too. Understanding your desires around climate is meaningful too. Altitude is another consideration: most are OK with it, but some are not. The beach is wonderful, but are you prone to skin conditions that suggest you should avoid excessive sun exposure?
11. Inflation must be factored in o all planning. If inflation is 2% annually, $100 will be about $164 twenty-five years from now.... real estate is a great hedge against inflation.
I know there are so many other considerations in your clients 'final years'. The wealthier your clients, the more access they will have to advancements in medicine that could extend life well beyond what is anticipated today. We are not financial advisors, but we can help ask lots of questions for them to ponder to help them with their choices.
Having a DEEP, full understanding of locations outside of your specific area of expertise is critically important these days if you have a clientele that is approaching retirement age. This will afford you the ability to guide them to agents in different parts of the country (and world) to help with this decision-making process. Some of our wealthier clients will want to divide their time between two or three areas. Professional real estate advisory can extend well beyond your local expertise when you partner up with agents in other parts of the world to provide the ULTIMATE global real estate advisory to your clientele. Pre-screened, top quality introductions save your clients time and aggravation and add real value.
Many of my smartest, wealthiest clients appear less obsessed with tax savings and more obsessed with quality-of-life. Of course, who would not want to live in an area where taxes are lower, but you know the saying: "Be careful what you wish for...." Money alone is not everything and you cannot take it with you!
Is it Time to Move into a Single-Story Home?
Once the kids have left the nest, you may be wondering what to do with all of the extra space in your home. Chances are, you don’t need four bedrooms anymore, and it may be a great time to sell your house and downsize, maybe even into a single-story home. You’ve likely gained significant equity if you’ve lived in your home for a while, so making a move while demand for your current house is high could be your best step forward toward the retirement goals you set out to achieve several years ago.
The dilemma, though, is where to go next. A big concern for many homeowners who are ready to sell is finding a home to move into, given today’s lack of houses available for sale. There is, however, some good news: the number of single-family 1-story homes being built today is on the rise, improving your odds of finding the right home for your changing needs. In a recent article, The National Association of Home Builders (NAHB) explains:
“Nationwide, the share of new homes with two or more stories fell from 53% in 2018 to 52% in 2019, while the share of new homes with one story grew from 47% to 48%.”
Here’s a map showing the breakdown of newly constructed homes being built by region, and the percentage of 1-story and 2-story homes in that mix:
What are the benefits of buying a one-story home?
Still not sure about buying a single-story home? An article from Home Talk covers several advantages of switching from two floors to one:
1. Energy Efficient
“It is easier to heat and cool a single-story house [than] it would be to regulate the temperatures of a multi-story house.”
Most single-story homes only need one heating or cooling unit, and they typically stay cooler than a two-story home, both of which can lead to significant savings.
2. Easier to Maintain
“Doing a general cleaning in a single story requires less effort and you will be able to see all areas that need cleaning and the areas are easily accessible.”
Cleaning and maintenance of a single-story home can take less time and effort, and better upkeep helps improve the overall value of the home.
3. Accessible for Everyone
“A single-story house can be accessed by anyone, whether they are young children or the senior citizens.”
If you’re looking for a house that provides a safe and easily accessible environment at any age, a single-story home may be optimal.
4. Good Resell Potential
“When buying a single-story house, you should consider the resale value should you think of reselling it in case of a circumstance that can happen. Look at the growth rate of that area. Due to the high demand of these types of houses it is [easy] to resell them and depending on the growth rate of an area, it increases in value significantly.”
Single-story homes have a lot of benefits and are often in higher demand. This bodes well for future resale opportunities.
Bottom Line
There are many benefits to downsizing into a one-story home. Doing so while demand for your current house is high might make it easier than ever to make a move. Contact me today if you’re ready to purchase the single-story home you need while homes are so affordable today.
SOURCE: Keeping Current Matters
8 Steps to Buying a Home
While buying a home may seem a bit daunting, you don’t have to do it alone! A little advanced preparation can simplify the process so that you can start your homebuying journey feeling confident.
While there is no “one-size fits all” approach to buying home, you’ll discover that all homebuyers have a few critical steps that they need to take on their transition to homeownership. Even in today’s landscape, where COVID-19 and social distancing have increased the reliance on virtual technologies—the key steps of your journey will likely remain the same. To help you get started, we’ve put together the following homebuying checklist.
Step 1: Understanding what you can afford
Before buying a home, you’ll want to understand your financial situation so you can properly budget for your home. Take inventory of your finances, including income, debts, savings and your monthly expenditures to assess how much you can afford.
Step 2: Down payments and PMI
Most people don’t realize that you have options when it comes to making the down payment on your home purchase. You'll want to talk with your lender about what makes the most sense for you, but qualified borrowers can put down as little as 3%. Don’t fall for the common 20% down misconception.
Step 3: Assembling your team
It’s important to have the right people by your side when you’re ready to buy a home. Consider reaching out to a housing counselor, real estate agent and lender to help you achieve your homeownership goals.
Step 4: Finding the right home
Be clear about your wants, needs and deal breakers before you get started on your house hunt. Work with your team to find a home that will best suit your lifestyle and finances.
Step 5: Working with your lender
Your lender will play a critical part in helping you determine how much home you can afford in addition to securing you the best mortgage option for your needs.
Step 6: Making the offer
Once you've found the right home, your real estate agent will submit an offer letter. Learn how to determine a fair price and negotiate within your budget.
Step 7: Inspection and appraisal
Before you start the closing process, your team will likely schedule a home inspection and appraisal. These are important steps as both will give you a better understanding of the condition and value of your home so you’re informed before the keys are transferred to you.
Step 8: Closing your loan
Once you loan is approved your lender will schedule the closing which is the final step in purchasing a home. During closing, all mortgage documents are signed, and the property is legally transferred to you.
As you can see, there are many variables in the homebuying timeline. While there is no simple answer to what your homebuying journey will look like, the more educated you are the more likely you'll be able to streamline the process.
SOURCE: Freddie Mac