Making Your Home a Healthy Place

KING COUNTY

SEATTLE

SNOHOMISH COUNTY

This post originally appeared on GetTheWReport.com.

Kari's Blog • March 22, 2023

Your Ultimate Spring Maintenance Checklist for a Safe and Comfortable Home

by Kari Haas

As winter fades and spring blooms, it’s time to give your home a little extra attention to ensure it is in top shape for the upcoming warmer months. A little maintenance now can go a long way in preventing costly repairs and ensuring your family’s safety and comfort. Here are ten spring maintenance tasks you should consider:

1. Check Your Roof

Inspect your roof for any damage that may have occurred during the winter. Look for missing or damaged shingles, leaks, and signs of wear and tear. Hire a professional to repair any damage and ensure your roof is ready to withstand the upcoming weather.

2. Clean Gutters and Downspouts

Clear out any debris, leaves, or branches that may have accumulated in your gutters and downspouts over the winter months. Clogged gutters can cause water damage to your home and can even lead to foundation problems. Consider installing gutter guards to prevent debris buildup.

3. Check Your HVAC System

Schedule a professional HVAC inspection and tune-up to ensure your system is working well. This can help improve energy efficiency and prevent any potential breakdowns during the summer months.

4. Service Your Lawn Equipment

Get your lawn mower, trimmer, and other lawn equipment serviced to ensure they are ready for the spring and summer months. Sharpen blades, change oil and filters, and check for any necessary repairs.

5. Inspect Windows and Doors

Check for any gaps or cracks around windows and doors that may have formed over the winter months. These gaps can cause drafts and energy loss, leading to higher energy bills. Seal any gaps with weatherstripping or caulk.

6. Power Wash Exterior Surfaces

Power wash your home’s exterior surfaces to remove any built-up dirt, grime, and stains. This can help improve your home’s curb appeal and prevent damage to surfaces like siding, decks, and patios.

7. Check Smoke and Carbon Monoxide Detectors

Test your smoke and carbon monoxide detectors and replace batteries as needed. These detectors are crucial for keeping your family safe, so ensuring they are in good working order is important.

8. Inspect Your Attic and Insulation

Check your attic for any signs of damage or leaks. Make sure the insulation is evenly distributed and in good condition. Proper insulation can help regulate the temperature in your home and reduce energy costs.

9. Clean Your Chimney

If you have a fireplace or wood stove, hire a professional to clean and inspect your chimney. Creosote buildup can be dangerous and lead to chimney fires, so it’s important to have it cleaned regularly.

10. Check Your Outdoor Lighting

Ensure your outdoor lighting is in good working order, and replace burnt-out bulbs. Good outdoor lighting can improve the safety and security of your home, especially as the days get longer and you spend more time outdoors.

Following these ten spring maintenance tasks ensures your home is safe, comfortable, and efficient for the warmer months. Don’t hesitate to hire professionals for inspections and repairs when needed. You can enjoy a stress-free and comfortable season in your well-maintained home with a little effort. If you need recommendations for service providers, contact Kari for our trusted local vendors.

For Buyers • For Home Owners • For Sellers • Real Estate Market Updates & Insight • March 10, 2023

March 2023 Real Estate Market Update

by Kari Haas

A recent surge in purchase activity indicates that the early spring real estate market is in full swing in our region. Fluctuating interest rates have caused some buyers to converge on properly-priced listings when rates are down, while potential sellers have been hesitant to let go of the historically low mortgages they have on their homes. This has led to a well-known dynamic in our region: not enough inventory to meet the current demand, causing buyers to compete again in multiple offer scenarios. The likely effect of this push-pull will be higher prices in the coming months, despite the constraints of higher (and unpredictable) mortgage rates.

The current interest rate environment is the difference between the level of competition the market is experiencing now and the frenzy of the pandemic market. Buying power is lessened by higher mortgage payments, and with rates still in flux, creative financing is key for many buyers.

That being said, Windermere’s Chief Economist Matthew Gardner notes buyers are eager to take advantage of brief dips in rates when they appear. “What is interesting is that home prices rose between January and February, which tells me that buyers jumped on the opportunity to take advantage of mortgage rates that dipped below 6.1% five times between mid-January end early February,” Gardner said.

In King County, single-family home prices did rise from $781,098 in January to $800,000, though that’s down 6.7% from $857,750 in February 2022. Condos were also up, with a median price of $468,500 last month compared to $450,000 in January.

Seattle followed the same pattern, with the median price of single-family homes rising from $803,750 in January to $825,000 last month. While that is still down 11% from $925,000 this time last year, interest rates have played a large part in what buyers can reasonably afford. In the last two years alone, the median interest payment for a single-family home has risen 54%, from $3,283 in February 2021 to $5,085 — an increase of $1,802. Despite this, demand is still high, as buyers do what they can to break into the market. In February, 28% of Seattle homes sold above list price, and 53% of listings sold in under two weeks.

On the Eastside, the median price of a single-family home last month was $1,340,000 — down over 21% from a year ago, when the median was $1,697,500. However, February sold prices were up from January when the median was $1,320,000. A sure sign that the Eastside market is becoming more competitive, in the last three months, both the number of homes selling above the asking price and the amount over list price have doubled.

In Snohomish County, the median price for single-family homes fell 7.4% year-over-year to $690,560. Unlike the other regions, that’s also down from January’s median price of $699,000. The higher interest rates could be causing more buyers in this market to pause as they wait for prices and rates to stabilize. The relative affordability of Snohomish County has long been a draw for many buyers, who now may be more sensitive to the fluctuations of the market.

Looking ahead, Matthew Gardner predicts we will see more of the same trends. “Year over year, home sales prices are down, but that isn’t surprising given that a year ago, homebuyers were scrambling to buy in the face of mortgage rates that were about to skyrocket,” he said. “I expect we will see a similar story for the next few months.”

If you have questions about what these market conditions mean for you, please give the Kari Haas Real Estate Team a call!

EASTSIDE

KING COUNTY

SEATTLE

SNOHOMISH COUNTY

This post originally appeared on GetTheWReport.com.

Kari's Blog • February 14, 2023

February 2023 Real Estate Market Update

by Kari Haas

Spring may have come early to the local housing market, with home sales increasing and multiple offers sneaking back into the norm after a downturn over the last few months. While still not at the levels of the peak pandemic market, buyers are actively competing with one another again, as mortgage rates and prices have come down in King and Snohomish counties. General low inventory on the affordable and mid-price end of the spectrum has also fueled competition.

With the average 30-year fixed-rate mortgage coming down to around 6.09% — about a whole percentage point lower than last November — mortgage payments are more affordable to today’s buyers than they would have been in the fall, especially since home prices in most areas have come down or at the very least flattened. The question will be if today’s conditions fuel enough competition to set prices rising again in the coming months.

In King County, single-family homes sold for a median of $781,098 in January, up slightly from $775,000 in January of 2022. Of these sold units, 11% closed above list price, and over 30% sold in less than two weeks, markers of some competitive demand in the region. Combining King County condo and residential sales, January’s 1,003 sold units were a 32% drop from the 1,437 closings in December.

In Seattle, the median price of a single-family home ticked up to $803,750 last month, compared to $790,000 a year ago. Almost 40% of Seattle residential listings sold in less than two weeks, and 13% sold above the list price. With 1.3 months’ inventory, buyers seeking single-family homes have a few more options to choose from than they did a year ago, but the condo market in the city is where they can maximize their buying power even more. The median price for Seattle condos was a relatively affordable $487,500, and, with 2.1 months of inventory on the market, condo buyers may have an easier path to purchase for the time being.

On the Eastside, prices continued to stabilize at a lower level than we saw during the pandemic. The median price of a single-family home in the area was $1,320,000 in January, down 13% from $1,515,500 in January 2022. Like Seattle, the Eastside currently has 1.3 months supply of homes. While only 8% of homes sold over list price in January, nearly 30% sold in two weeks or less, indicating healthy buyer demand for correctly priced Eastside homes.

Snohomish County remains a more affordable alternative to Seattle and the Eastside, with the median single-family home price dropping to $699,000 last month. That’s down from $715,000 the same period the previous year. In addition, the county has the smallest amount of inventory, with a single month’s supply of listed homes. Of the closed sales, 34% sold in less than two weeks — reinforcing the fact that many buyers are prepared to move quickly in a hastening market.

According to Windermere’s Chief Economist Matthew Gardner, taking an annual average “is better than comparing this month to this month.” For example, inventory across the Puget Sound region is up almost 200% year-over-year. Compared to the number of active listings during the last pre-pandemic year, the current number falls by about 30%. This indicates plenty of room for a competitive market in the months ahead.

If you have questions about these housing market trends or other real estate topics, please reach out to our team.

EASTSIDE

KING COUNTY

SEATTLE

SNOHOMISH COUNTY

This post originally appeared on GetTheWReport.com.

Kari's Blog • January 27, 2023

Q4 2022 Western Washington Gardner Report

by Kari Haas

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 Kari Haas.

REGIONAL ECONOMIC OVERVIEW

Although the job market in Western Washington continues to grow, the pace has started to slow. The region added over 91,000 new jobs during the past year, but the 12-month growth rate is now below 100,000, a level we have not seen since the start of the post-COVID job recovery. That said, all but three counties have recovered completely from their pandemic job losses, and total regional employment is up more than 52,000 jobs. The regional unemployment rate in November was 3.8%, which was marginally above the 3.7% level of a year ago. Many business owners across the country are pondering whether we are likely to enter a recession this year. As a result, it’s very possible that they will start to slow their expansion in anticipation of an economic contraction.

WESTERN WASHINGTON HOME SALES

❱ In the final quarter of 2022, 12,711 homes were sold, representing a drop of 42% from the same period in 2021. Sales were 34.7% lower than in the third quarter of 2022.

❱ Listing activity rose in every market year over year but fell more than 26% compared to the third quarter, which is expected given the time of year.

❱ Home sales fell across the board relative to the fourth quarter of 2021 and the third quarter of 2022.

❱ Pending sales (demand) outpaced listings (supply) by a factor of 1:2. This was down from 1:6 in the third quarter. That ratio has been trending lower for the past year, which suggests that buyers are being more cautious and may be waiting for mortgage rates to drop.

WESTERN WASHINGTON HOME PRICES

❱ Sale prices fell an average of 2% compared to the same period the year prior and were 6.1% lower than in the third quarter of 2022. The average sale price was $702,653.

❱ The median listing price in the fourth quarter of 2022 was 5% lower than in the third quarter. Only Skagit County experienced higher asking prices. Clearly, sellers are starting to be more realistic about the shift in the market.

❱ Even though the region saw aggregate prices fall, prices rose in six counties year over year.

❱ Much will be said about the drop in prices, but I am not overly concerned. Like most of the country, the Western Washington market went through a period of artificially low borrowing costs, which caused home values to soar. But now prices are trending back to more normalized levels, which I believe is a good thing.

MORTGAGE RATES

❱ Rates rose dramatically in 2022, but I believe that they have now peaked. Mortgage rates are primarily based on the prices and yields of bonds, and while bonds take cues from several places, they are always impacted by inflation and the economy at large. If inflation continues to fall, as I expect it will, rates will continue to drop.

❱ My current forecast is that mortgage rates will trend lower as we move through the year. While this may be good news for home buyers, rates will still be higher than they have become accustomed to. Even as the cost of borrowing falls, home prices in expensive markets such as Western Washington will probably fall a bit more to compensate for rates that will likely hold above 6% until early summer.

DAYS ON MARKET

❱ It took an average of 41 days for homes to sell in the fourth quarter of 2022. This was 17 more days than in the same quarter of 2021 and 16 days more than in the third quarter of 2022.

❱ King County was again the tightest market in Western Washington, with homes taking an average of 31 days to find a buyer.

❱ All counties contained in this report saw the average time on the market rise from the same period a year ago.

❱ Year over year, the greatest increase in market time was in Snohomish County, where it took an average of 23 more days to find a buyer. Compared to the third quarter of 2022, San Juan County saw the average market time rise the most (from 34 to 74 days).

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.

The regional economy is still growing, but it is showing signs of slowing. Although this is not an immediate concern, if employees start to worry about job security, they may decide to wait before making the decision to buy or sell a home. As we move through the spring, I believe the market will be fairly soft, but I would caution buyers who think conditions are completely shifting in their direction. Due to the large number of homeowners who have a mortgage at 3% or lower, I simply don’t believe the market will become oversupplied with inventory, which will keep home values from dropping too significantly.

Ultimately, however, the market will benefit buyers more than sellers, at least for the time being. As such, I have moved the needle as close to the balance line as we have seen in a very long time.

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 the 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.

This post originally appeared on the Windermere.com Blog.

Kari's Blog • January 25, 2023

5 Tips for Homeowners Turning Their Property Into a Rental

by Kari Haas

Turning a starter home into a rental property is standard practice. If you’re considering moving and have decided to rent rather than sell, there are a few things you can do to improve your home and make it more renter-friendly. The Kari Haas Real Estate Team lists a few simple tips to help you get the most out of your rental.

Make All the Repairs

If you want to charge more rent, you need to create a high-value space. This means making all the necessary repairs and ensuring the work is top-quality. For example, paint everything properly, including taping off wall molding and windows. Also, give everything a deep clean.

For larger projects or jobs that are out of your DIY scope, hire professionals to inspect and repair any electrical or home system issues. Plumbing repairs are certainly best left to the pros, as you don’t want to risk cracking a pipe or fitting and having a flood on your hands. Keep in mind that local companies can help with that. Plumbing pros will come with the proper tools and skill set to get the job done right and quickly. Be sure to read up on customer ratings and reviews before getting quotes from contractors. Slacking on repairs makes you look bad as a landlord and can make tenants second-guess your abilities. If you need to hire a professional but don’t know where to start, the Kari Haas Real Estate Team has a list of highly recommended professionals that we work with regularly.

Assess Your Availability

Part of the renting process is being available for your tenants and managing the property. Before you choose this option, make sure you have the time and money to fill the landlord position. Keeping a rental property means taking on additional home repairs, major and minor, that cut into your budget. If being a full-time landlord would stretch you too thin, consider hiring a property management company to help you collect the rent, arrange a maintenance staff, and vet tenants for any rental history violations.

Make Renovations That Add Value

When making renovations, choose areas of the home that add value. For example, the kitchen and bathrooms are high-value areas. You can update the appliances and countertops. If the kitchen cabinets are outdated, a fresh paint job and some new hardware can completely change the appearance. Talk to a real estate attorney about looking over the deed and researching the home for any potential red flags you should check out. You may need a thorough inspection to help you find any major renovations you need to complete the project. This will help you avoid any major repairs once a tenant moves in as well.

Prioritize Curb Appeal

The appearance of the outside of the property is just as important as the inside. If you want to attract renters that will appreciate your home and take excellent care of it, you need to work on curb appeal. The Redbud Group points out that curb appeal tells potential renters what to expect from the interior and helps you stand out among the competition. It’s as simple as adding a fresh coat of paint and planting some fresh grass or shrubs.

Market Your Property on Social Media

Once the property is complete, you’ll have to get the word out that it is available for rent. The University of Alabama at Birmingham notes that social media is a great marketing source and is more relevant than ever. You can use Facebook ads to showcase the space and target potential renters.

As you show the property to prospective renters, be sure to have free business cards available. You want to make it easy for your prospects to contact you, and making custom business cards is easy to accomplish online. The right tools can even store your design so you can revisit it later.

As you navigate the renovations and repairs, you may run into obstacles. As long as your budget is prepared to handle the unexpected, you should be fine. Stay in contact with everyone working on the project and keep your social media marketing plan updated regularly, and you’ll have the space rented in no time.

For expert assistance buying or selling a home in the Greater Seattle area, contact the Kari Haas Real Estate Team today!

Image via Pexels

This post was written by Lisa Walker for the Kari Haas Real Estate Team blog.

For Buyers • For Sellers • Real Estate Market Updates & Insight • January 12, 2023

January 2023 Real Estate Market Update

by Kari Haas

The close of 2022 brought the housing market extremes of the last year into sharp focus. With decreased sales, generally increasing inventory, and lower prices, the December market finally seemed to hit the winter slowdown that has characterized typical market cycles of years past. This stands in contrast to the early months of 2022, which saw sky-high prices and scarce inventory before the threat of inflation and rising mortgage rates caused the shift in the latter half of the year.

Windermere Chief Economist Matthew Gardner commented on this phenomenon. “The local housing market in 2022 ended with a whimper rather than a bang. Overall, the housing market is going to continue falling off the artificial ‘sugar high’ that was a function of the artificially low mortgage rates during the pandemic,” he said.

This is not necessarily a bad thing, as stability in the market could translate to more predictable price appreciation for sellers and better circumstances for buyers to enter the market. In most cases, it’s low- and middle-priced homes that are missing from the market, so many first-time buyers still have plenty of pent-up demand for inventory that meets their needs and financial situations.

Despite a 43.3% drop in closed sales compared to December 2021, last month saw the median price for single-family homes in King County rise to $825,000. That’s up from the median of $810,000 this time last year. This could speak to the lingering effects of inflation on the market or be a factor in the lack of entry and mid-level homes currently available to buyers.

The Seattle market experienced the same pattern, with a year-over-year price increase of almost 5%, from $839,000 in December 2021 to $879,975 last month. Closed sales were down in the city as well, dropping 43.5% from last year to just 394 units, leaving the market with just under six weeks of inventory. The condo market mimicked this trend, with the median price rising to $512,500 last month, up from $490,000 in December 2021. Additionally, Seattle condos offered the highest amount of inventory, with 2.5 months of stock.

Things were a little different on the Eastside, which had experienced perhaps the highest price boom during the “sugar high” of the pandemic. There, single-family home prices decreased around 15% year-over-year, landing at a median of $1,299,000 last month, compared to $1,529,500 in December 2021. This is likely due to higher mortgage rates dampening the buying power of potential homebuyers in the area. Entry-level buyers may be forced to look in more affordable markets for the time being, and December’s 39.5% decrease in closed sales compared to December 2021 reflects this. Interestingly, Eastside condos experienced a sold price increase to a median of $565,000, up from $550,000 last year. This is likely because condos are a much more affordable entry point to the Eastside market and may be experiencing higher demand as buyers tailor their expectations to the current market conditions.

After the ups and downs of the last year, Snohomish County ended exactly where it began, with a median single-family home price of $700,000 — the same as in December 2021. Closed sales in the area were down 38.3%, leaving the market with about six weeks of inventory. Throughout the pandemic, Snohomish County has been a relatively stable market compared to the fluctuations of Seattle and the Eastside, making it a desirable area for first-time buyers and those looking to maximize their buying power.

Looking ahead, Matthew Gardner expects 2023 will see continued price declines. However, “With mortgage rates expected to fall from current levels slowly, sale prices should start increasing again in the second half of the year,” he said.

Gardner continued, “Ultimately, once prices pull back to where they would have been if the pandemic had never occurred, they will start to stabilize and then return to a more normalized pace of appreciation.”

Sellers and buyers have certainly felt the impacts of shifting economic conditions on the housing market. A slower market pace and modest price decreases may be necessary to help reset expectations on both sides and set up sustained future success.

If you have questions about how to make the most of the current market conditions, give Kari a call.

EASTSIDE

KING COUNTY

SEATTLE

SNOHOMISH COUNTY