Buying Homes • March 16, 2025

Homeowner Insurance

by Jill Langer

Last month, my office invited a panel of insurance professionals to discuss the volatility of the Homeowner’s Insurance (HOI) market so we could learn the latest to best inform our clients. In the wake of several natural disasters, the LA Fires is one of the most recent, HOI companies have become much more scrutinous and expensive. The increase in natural disasters such as flooding, wildfires, hurricanes, earthquakes, landslides, tornadoes, and extreme cold snaps have accelerated losses and depleted their recovery funds. This has caused carriers to increase premiums, limit coverage, and, in some cases, cancel policies.

Hearing of the neighborhoods in the Palisades Fires that were canceled or not renewed by their carriers just weeks before the fires, motivated us to want to learn more to help educate our clients so they are equipped to be protected. After all, we help people secure their most significant asset; we want to empower them to protect it adequately as well. On the evening of May 7th at 6:30 pm, my office is hosting a virtual webinar event for our clients featuring the same panel of insurance professionals (see the link below to register; registration closes on May 4th). There will be two insurance brokers and one captive company agent from Allstate who will spend an hour answering questions about the current market.

For an hour, they will be led by a moderator to provide tips to ensure you are properly insured, highlight what to look for in your carrier’s contracts, explain which riders to a contract are most effective, and go over when it is appropriate to make an HOI claim and when you should not. All of this will help educate homeowners so they are empowered to make informed decisions about their coverage and costs and hopefully not find themselves in a situation like the victims of the LA Fires. We will then open it up for 30 minutes of Q&A and provide follow-up materials. I hope you can make it! Registering is easy with the link below, and you can also contact me directly to talk about the event and the topic overall.

In the meantime, here are a few things you can do now to evaluate your current coverage:

Make an appointment with your insurance agent/broker to review your policy. This should be done annually.
Reevaluate your policy after making any upgrades to your home.
Add an inflation endorsement to your policy.
Build a relationship with your agent/broker.

Here are a few important elements to focus on to ensure adequate coverage:

Replacement Cost Value (RCV): The amount of money needed to repair your home at today’s prices of building supplies or to replace your belongings at today’s cost of a similar or like item. It is important to discuss replacement costs with your insurance agent/broker when purchasing your policy. This is the figure that dictates the completeness of your coverage.
The cheapest policy is not always the best policy. Often, the most inexpensive policies lack the coverage you desire. Make sure to dig deep into the details and evaluate your RCV and deductible.
What exclusions are in your policy contract? You don’t want to find out after making a claim that you are not covered because of an exclusion. You may need to add specific riders to expand your coverage.
Be aware of what activities would void your coverage. For example, leaving your home vacant for more than 30 days often voids coverage without a vacancy rider. Snowbirds who winter in the sunshine should be keenly aware of this.
Understand the balance between your deductible and a claim amount. Making a claim could increase your premium or even get you canceled. Analyzing the impact of a claim and weighing the cost/benefit is key. If you can afford to pay for the repair on your own, it might make sense not to make the claim.
If you are a renter or own a condo, what policies should you have to protect your belongings? Renters need a renter’s policy to cover their personal belongings should something happen to the structure such as a fire. Additionally, condominium associations have a master policy that covers common areas and exterior elements. Condo owners should have personal policies to cover what the master policy doesn’t cover, along with their personal belongings.

These are just a few things to get you started on an HOI audit. If you need any referrals to reputable insurance agents or brokers, please let me know. While HOI is not my direct area of expertise, I’m happy to connect you with professionals to help you better. I hope you can attend the virtual panel event on May 7th so you can learn even more. It will provide you with useful insights and create value for your investment. It is always my goal to help you stay informed about the value of your home, market trends, and how to protect your home. You can click on the link below to register or reach out to me directly and I will get you the link to attend.

Economic Forecasts & Trends • Mortgages • February 25, 2025

Rates & Equity

by Jill Langer

As we start a new year, I am often asked where home prices are headed. While I don’t have a crystal ball, I study the market trends and activity closely. Many aspects affect home prices, such as the overall economy’s health, inventory levels (supply & demand), and interest rates. Seasonality is also a pattern I pay close attention to, and we are headed into the time of year when we see most of the annual price growth happen. As we prepare for the Spring market, I have pulled some data that shows the seasonal patterns and the impact interest rates have had on prices, and long-term equity growth.

First, before we look forward, we must look back to understand the relationship between rates and prices. We went on a long run of rates being below 5% from 2010 to mid-2022, outside of the second half of 2018. Price growth was consistent after the recovery from the Great Recession in 2012 to 2018 and, in some cases, incredibly rapid. When the increase in interest rates happened in 2018, along with the proposed Seattle Head Tax, we saw a correction in home prices. It took the market about 15 months to recover from that correction.

Then, we hit the pandemic-fueled market of 2020-2022, where price growth was off the charts. During that time, work-from-home moves flooded the suburbs and rural markets, early retirements and relocations to other states created movement, and interest rates under 3% drove prices up by double digits. At the beginning of 2022, rates started to creep up to counter inflation and increased by 2 points in four months, landing at 5.5% in May 2022. This, like 2018, forced a correction in prices. This correction took 24 months to recover, with prices regaining their May 2022 peak in May 2024.

This recovery all happened amidst interest rates peaking at 7.91% in Oct 2023 and never going under 6% the entire time. Rates have hovered from 6.75%-7.25% over the last year, outside of a small window in the Fall when they were in the mid-6%. This illustrates that the market has become accustomed to the new normal of interest rates, and prices have been strong and stable. Tight inventory has helped bolster price stability and growth with limited supply to fuel demand.If you look at the recovery from May 2022 to May 2024, you must also understand the seasonality of the market. This pattern has rung true for decades and has much to do with inventory levels. We typically start the new year with the lowest amount of available homes for sale due to the holiday slow down, short, dark days, and many families timing their moves around the school year. Once the new year starts, would-be buyers hit the market with their housing goals blowing wind into their sails.

This new demand is coupled with tight inventory, and the price growth for the year starts to take shape via price escalations via multiple offers. This becomes commonplace in Q1, and we begin to see inventory catch up in Q2 when the days are longer, the flowers are in bloom, and we are a little closer to the opening of summer break for schools, creating a less disruptive move. Despite the correction in 2022 and rates stubbornly remaining in the 6-7% range, sellers have realized incredible gains, and buyers who have made purchases have secured their trajectory of building wealth through owning real estate.Even though price growth is more accelerated in the first half of the year, the deceleration of price growth sits on the shoulders of the gains in Q1 & 2, ultimately leaving prices higher year-over-year. This is a pattern we have seen for some time, and we are already starting to see it unfold in 2025. Month-to-date prices are up in February 2025 over January 2025 by 5% in King County and 1% in Snohomish County. This pattern can guide one’s timing of the market, and so can life. As much as hitting the perfect week when there is less competition and rates drop may feel like hitting your bet at the roulette table, making a move is much more nuanced than that. The timing of a move needs to work with the demands of life, and the good news is the year-over-year gains are positive regardless.

As we head into the spring market for 2025, we anticipate additional price growth from where we are now and following the trend of prices peaking in late Spring. We should regain and most likely eclipse the peak prices we saw in 2024. To expand this to the bigger picture, let me share some fun facts about long-term price growth and homeowner equity with you. This is especially important as real estate is a long-term investment, the four walls where you create your life, and not meant to be a lucky bet on black.

Check out the charts below that show how far prices have come over the last ten years! In King County, the January median price is up 74% since 2016 and up 36% since 2020. In Snohomish County, the January median price is up 103% since 2016 and up 51% since 2020. Equity levels are high across our region, with over 50% of homeowners having 50% equity or more. Many homeowners are in the fortunate position to reposition their equity into a home that is a better fit for their lifestyle if they are experiencing life changes such as a change in family size, job change, or a financial shift.

I hope this look back to look forward instills confidence in our real estate market and home values. If a move is in your future, you will prosper well. Please reach out if you or someone you know is considering a move, whether it is a purchase, sale, or both. I can help apply these facts and figures to your specific market area and help chart a plan according to the market conditions and your goals. It is always my goal to help educate my clients and empower them with the information to make well-informed, strong decisions.

In 2024, the Windermere Foundation raised just over $3.5M and served 583 organizations. Since its inception in 1989, they have raised over $56M! The Foundation was created to help give back to our communities and focused on assisting homeless and low-income families and children. Each Windermere agent participates by donating a portion of each commission earned, and additional fundraising is done annually by agents and offices. Local chapters vet organizations aligning with the Foundation’s mission, and funds are responsibly disbursed.

Offices also take on projects to help give back throughout the year. Our office consistently raises funds and collects food for the Volunteers of America (VOA) Food Banks of Snohomish County, and we hold three food drives a year. We understand that food insecurity is a relevant need, especially amid high inflation. Our next food drive is on Saturday, April 19th, and we will be combining it with our Paper Shredding Event that will be held at our office from 10 am to 2 pm. If you have some paper to shred, please stop by and bring some food or a cash donation to benefit the food banks managed by VOA.

We also work with Washington Kids in Transition (WKT) and organize a Christmas-giving tree that benefits two dozen youths in the Edmonds and Everett School Districts. WKT has also started a new mentorship program that helps homeless teens learn critical life skills, such as managing finances and nutrition. The program also organizes outings and events under the moniker of the Friendship Club that give these teens the opportunity to build relationships and have experiences that would not be available to them like attending a play or a ball game. These giving projects are near and dear to our hearts, and we are proud to align with these reputable organizations that do such meaningful work.

Do you want to be “In the Know” in your neighborhood? Sign up for a monthly overview of what’s happening in the zip code(s) of your choice. Neighborhood News is a great tool to stay informed about the home values and activity in your own backyard or to study a new market you may be interested in. Click here to sign up on my website.

Economic Forecasts & Trends • February 10, 2025

2025 Economic Forecast

by Jill Langer

On January 22, my office hosted renowned economist and housing market specialist Matthew Gardner, who shared his 2025 Economic & Housing Market Forecast. We spent an hour listening to his keen analysis and insights, which included a look back at 2024, some discussion about what to expect with the new administration, and a look ahead to 2025 and beyond. Please let me know if you want to receive a link to the recording or a PDF of his PowerPoint slide deck.

He expertly broke down his presentation using a macro-to-micro approach, starting with the national economy and then narrowing down locally by presenting stats, figures, and predictions about the King and Snohomish County economies and housing markets. Here are my top takeaways.

✅ NATIONAL ECONOMY:

Inflation has become “sticky”! It slowly trended down in 2024 but could tread water in 2025, depending on what happens with tariffs under the new administration. If tariffs are instituted across the board, many countries are predicted to respond by implementing their own tariffs, which would increase the cost of goods.

The Federal Funds Rate will slowly decrease over the course of 2025. Until we get clarity on proposed tariffs on U.S. trade partners, the Federal Reserve will remain aggressive with rates to combat inflation. The current consensus is for the Fed to make two rate cuts instead of four, with the first possibly being in February. NOTE: The Federal Funds Rate is the short-term interest rate (credit cards, car loans, etc.), not Mortgage Rates.

There is no sign of a recession. The balance of inflation, rates, and the overall health of the economy has created a soft landing that avoided a recession. In fact, GDP is up by 2% and the textbook definition of a recession is when the GDP decreases over two successive quarters.

Tepid job growth in 2025. The labor market has cooled nationally after the “catch-up” period seen after the pandemic. Going forward, proposed immigration reform could weigh on labor force growth and hamper job creation. Weak labor force growth keeps the unemployment rate from rising in any meaningful way and is anticipated to peak around 4%.

✅ GREATER SEATTLE AREA JOB MARKET:Job growth is still happening, yet ever so slightly! Jobs expanded by 1.2% in 2024 and should expand by 1.5% in 2025. The tech sector props up King County, and Snohomish County did have a relatively positive recovery post-Boeing strike. The construction sector is down, and some businesses will “wait and see” about growth once the administration starts to take shape with trade and immigration policies, which will directly affect labor costs.

✅ GREATER SEATTLE HOUSING MARKET:Inventory will increase in 2025 over 2024 by 8-10%. In 2024, inventory increased by 14% over 2023, which saw the lowest levels since the Great Recession. Lower inventory has been driven by the “lock-in” effect created by the previous low interest rates. Moves have been less discretionary and more so motivated by death, divorce, and diapers. More discretionary moves will happen when homeowners see mortgage rates closer to within 2% of their current rate. However, equity levels are high (over 50% of homeowners have 50% or more equity), enabling buyers who are also sellers to reposition their equity to a home that better fits their lifestyle, should the monthly payment work for them.

Mortgage rates will modestly decrease throughout 2025 and should end up in the low 6%. The biggest headwind is deficient spending now that inflation has settled. This spending will keep the 10-year treasury high, which will have a direct impact on mortgage rates. These are two key factors to watch if you’re waiting for mortgage rates to drop significantly.

Prices increased in King and Snohomish counties in 2024 and are expected to grow again in 2025 despite stubborn mortgage rates. In King County, inventory was up by 10%, sales were up 12%, and the median price was up 10.7% year-over-year. Price growth is predicted to increase by 4% in 2025, which is higher than the historical national annual average. In Snohomish County, inventory was up by 17%, sales were up 8%, and the median price was up 9.9% year-over-year. Price growth is predicted to increase by 5% in 2025.

Affordability is the biggest challenge. With price growth steady coupled with higher interest rates, monthly payments have grown faster than incomes. This has put first-time homebuyers at a disadvantage in core job center locations. Down payment assistance (gift funds) from family and/or high-paying salaries in the tech, biotech, and big corporate companies have differentiated the ability of some first-time homebuyers compared to others with limited down payment funds and higher debt-to-income ratios.The American Dream is still alive! Homeownership has proven to be one of the strongest hedges against inflation and the single most lucrative wealth-building asset a household can have over time. A key piece of advice for first-time homebuyers would be to do what you can with what you have, which may mean buying a smaller property or going further out in location. Regardless of where one buys, this will put them on the trajectory of building household wealth through real estate and open up an opportunity to upgrade later. In fact, the net worth of a homeowner in 2023 was $396,200 vs. $10,400 of a renter.

This is certainly a lot to unpack as we head into 2025. Stay tuned for even more insights on what we learned from Matthew in my next newsletter. In the meantime, I am here to encourage you and point out that this is a lot of good news. We look forward to more moderate growth in 2025, which is good. Severe increases are not healthy. While we are combating an affordability crisis, the steady wave of moderation on top of incredibly high equity levels should play out to create a stable and fruitful 2025 real estate market.If you are curious about how all of this relates to your real estate goals or you know someone that needs some guidance, please reach out. I will continue to help keep you well informed so you can be empowered to make strong decisions.

Community • Events • Windermere Foundation • January 9, 2025

A December to Remember

by Jill Langer

The holiday season is a time for joy and reflection, and it fills me with gratitude to be part of a team that prioritizes giving back to our community throughout the year. Supporting our neighbors in need is one of the most meaningful ways we celebrate the season, and it’s made possible by the generosity of friends and clients like you.

Holiday Food Drive Success

This year, our holiday food drive raised $1,372 and collected 1,422 pounds of food for Volunteers of America Western Washington food banks. With the growing need in our area, these contributions make a big difference. Thank you for your incredible support!

Spreading Christmas Magic

We had the privilege of partnering again with Washington Kids in Transition to bring holiday joy to homeless and housing-insecure youth in our community. Social workers from the Edmonds School District shared wish lists from students living in shelters, cars, or other temporary housing. Thanks to our office team, we adopted and fulfilled the wishes of 24 local youth, ensuring they didn’t go without this holiday season.

In addition to fulfilling wish lists, we raised $3,815 for Washington Kids in Transition’s new teen mentorship program. This program helps teens develop life skills and enjoy activities they might not otherwise experience. It’s in high demand but lacks reliable funding, so we’re proud to have contributed to its growth.

Volunteering at Christmas House & Holly House

Another highlight of our holiday season was volunteering at Christmas House and also Holly House , two local nonprofits run entirely by volunteers. These organizations provide free holiday gifts to low-income families, ensuring kids have a joyful Christmas. It’s always an inspiring experience to support these efforts.

Looking Ahead

As we welcome 2025, our commitment to giving back to the community remains stronger than ever. If you’d like to learn more or support any of the organizations mentioned, you’ll find links to their pages included.

Here’s to a happy, healthy, and heartwarming 2025. Thank you for being part of this journey with us!

Buying Homes • Gardner Reports • Matthew Gardner • Selling Homes • December 20, 2024

Real Estate Year in Review

by Jill Langer

As we head into the holidays and mark the final stretch of the year, I wanted to report on the 2024 real estate market and where we might be headed in 2025. To set the stage, I must mention the ride that it has been over the last five years. Since 2019, we have experienced some key market factors that have influenced market activity and prices.

2019 was a year of recovery after the market corrected in 2018 (due to the Seattle Head Tax), and we all know what happened in 2020. The pandemic threw the real estate market into a frothy uptick from mid-2020 to mid-2022, fueled by work-from-home moves and historically low interest rates. Sales counts and price appreciation were ” off the charts,” specifically in 2021. Once interest rates climbed over 5% in the spring of 2022, price appreciation capped, started to correct, and sales declined. Since then, prices have recovered and stabilized, and the sales count has slowly started to increase.

After reviewing the last 10 years of closed sales, we are down about 25% YTD in King County and 30% in Snohomish County from a normal average closed sales rate. This has remained stubborn due to the lock-in effect that the previous low rates have created. For example, many homeowners who purchased or re-financed to obtain a rate of 3-4% are holding tight to their monthly payments. This has caused many people to stay in homes that don’t ideally fit their lifestyle due to wanting to keep the monthly payment and overall affordability.This has created tight inventory, which has insulated prices and helped the market recover from the 2022 correction. The dance between rates and low inventory is directly related, and despite rates being higher in 2024 than they were in 2022, prices remain strong. A seller’s market is defined by 0-2 months of inventory (if no new homes came to market, we would sell out of homes in this amount of time), a balanced market is 2-4 months, and a buyer’s market is 4+ months. Over the last 5 years, we have primarily been in a seller’s market. This has caused prices to increase by 59% in Snohomish County over the last 5 years and by 42% in King County.

The age-old principle of supply and demand has had the most significant impact on prices despite volatile interest rates. Several experts predict that interest rates will slowly decrease throughout 2025. As you can see from the chart below, we will not return to the historic levels we saw in 2020-2021 (we may never). As would-be sellers contemplate the lock-in effect vs. what they want/need out of their housing and line it up against interest rates, we should see a gradual increase in closed sales in 2025 over 2024. The market is slowly starting to accept this new normal. Also, in some cases, moves cannot be delayed due to life circumstances, and the lock-in effect is not a driver.

Another aspect to point out is the trends we typically see in post-election years. Historical data indicates increased closed sales, lower interest rates, and price growth. This data, coupled with pent-up seller demand and gradually decreasing interest rates, should drive sales to increase slightly and prices to appreciate and remain stable. Most homeowners are sitting on well-established equity, enabling them to make fluid moves.

If you or someone you know is considering buying, selling, or both, now is a great time to reach out. Executing a purchase and/or sale and a move takes strategic planning to achieve the best outcome. I love helping my clients identify their goals, curate a detailed list of items to create the ideal results, and help guide the process to a successful finish. A new year brings a fresh start, and why not start to verbalize, visualize, and start your planning now, whether your goals are immediate or in the distant future? Please use me as your real estate resource, as my goal is to be your trusted advisor rooted in data and market education.**If you want to learn more about what the 2025 Real Estate Market and Economy could bring, don’t miss the Save the Date below for my Annual Matthew Gardner Economic Forecast Event on January 22nd.

Are you curious about the economy during these changing times?
Are you trying to make financial plans, but crave credible information to assist you?Please join me for a very special virtual live event:

AN ECONOMIC FORECAST FOR 2025 & BEYOND
with Matthew Gardner
Notable Real Estate Economist

Wednesday, January 22, 2025 • 6:30pm – 8pm

Presentation from 6:30-7:30pm, Q&A to follow

Please RSVP by phone/text or email by January 13th, 2025 to receive an emailed link prior to the event.

Buying Homes • Economic Forecasts & Trends • November 16, 2024

Wealth-Building Opportunities Start at Square One

by Jill Langer

As 2024 starts to come to a close, I want to spend some time talking about first-time homebuyers. Even if you already own a home, this is an important message to share; it can change someone’s life! In 2023, according to the National Association of Realtors (NAR) 2023 Profile of Home Buyers and Sellers, first-time home buyers represented 24% of the market share, which was down from 32% in 2022. First-time homebuyers are a critical part of the real estate market cycle, and we need to empower this group to invest in their future. They are also the audience that purchases inventory, enabling sellers to move on to their next home, which creates a domino effect as it travels up the market.

Often, first-time homebuyers purchase entry-level properties such as condos, townhomes, or smaller single-family residential homes based on affordability. It is also important to note that a buyer does not need a 20% down payment to purchase a home. In fact, according to NAR, the typical down payment for a first-time homebuyer in 2023 was 8%. There are loan programs that only require 3% down payments and even assistance programs requiring zero down. It is important to explore options so one knows their opportunity potential. For example, lenders will often advise borrowers to focus on saving vs. paying down debt in order to better qualify for a loan.

Sometimes, first-time homebuyers are able to skip that first level of home ownership and purchase a home that they plan to be in for many years, yet that is rare. I have found that it is critical that first-time homebuyers are focused on what monthly payment they feel comfortable taking on and commit to shopping at that price point. They then apply that price point to a combination of location, property type, and the condition/features they can afford.

The primary benefit of ditching the rent payment and becoming a first-time homebuyer is getting on the trajectory of building household wealth. As you can see from the charts below, real estate has appreciated in both King and Snohomish counties over the last 10 years, whether it be a condo or a single-family residential property. This appreciation becomes a nest egg of savings for the homeowner over time.

For example, if you use the data from the Snohomish County Condo chart, a first-time homebuyer who bought a condo in 2020, the median price in the market was $379,000. That is now $533,000, which is a 41% gain. Granted, these are raw numbers and represent a 30,000-foot view of the market, which illustrates the trends. We can’t simply apply the percentage growth in the market overall; we would analyze comparable properties in the specific area of the subject property to find the accurate value. The appreciation trend, however, shows that the first-time homebuyer who bought in 2020 is now sitting on a healthy nest egg of savings to utilize to purchase their next home if they desire a different property based on life changes. Plus, there is no other investment vehicle that allows tax-free capital gains up to $500,000.I point this out because I often encounter would-be first-time homebuyers who call off their search because they cannot afford the type of home or area they want, and continue to rent in the hopes of saving more to afford what they want later. While I would never want anyone to buy a home they don’t want, I do encourage my clients to consider what they can compromise on in order to start building wealth through homeownership sooner rather than later. Even if you apply the home appreciation for condos in Snohomish County prior to the pandemic, the median price in 2015 was $246,000, and four years later, it was $353,000, which is a 44% gain. Most people would not be able to save that much over that period of time, hence the advantage of building wealth via homeownership.

An exercise I often use with my buyer clients is applying the Triangle of Buyer Clarity to their budget and search. I am the first person to say that shopping for a home is exciting and even romantic, which results in starry eyes focused on dream homes and HGTV lore. I find that the quicker a buyer is able to put the dreaming part aside and get to the brass tacks of the market, the quicker they succeed in a purchase. Monthly payment is the single most important element to focus on to bring clarity to a buyer’s search. This figure should direct the price range for a buyer, which will determine which location, condition/features, and property type they can afford.

As you can see from the example of the Triangle of Buyer Clarity, buyers often have to adapt their search to meet their budget needs; it is rarely the perfect balance of an equilateral triangle. That could mean adapting by buying a townhome instead of a single-family home, going to a location that is a little further out, or being OK with a 90’s kitchen instead of a perfectly modern masterpiece. Getting into the market is more important than finding the perfect fit. The good news is that market trends show that townhomes, all locations throughout each county, and even 90’s kitchens appreciate! One could even tap into their equity down the road once it is built up and remodel that 90’s kitchen.Homeownership provides many benefits. Wealth-building opportunities are huge because we all need a place to live, so why not pay your own mortgage and gain appreciation instead of building your landlord’s portfolio? There are tax benefits, too, as you can use the interest as a write-off. Plus, you get the freedom to make your house your own and build a community where you live. You can paint the walls and dig in the dirt, and you don’t have to answer to your landlord. Overall, homeownership provides stability, freedom, and community. Helping my clients gain tangible and intangible benefits is the primary goal I work towards.

This is why I couldn’t let 2024 end without giving a shout-out to the would-be first-time homebuyers out there. My best piece of advice if you are considering buying your first home is to come up with a plan. I offer all of my clients a buyer consultation meeting where we review the market trends, apply their goals and search criteria, get them connected with a reputable lender, and devise a custom plan for them. The plan could start right away or sometime in the future; what matters is working towards the goal.

My mission is to help people gain the benefits of homeownership when they are ready. When I hand off the keys to a first-time homebuyer, it is one of the most rewarding aspects of my job because I know we have changed their lives for the better. If you are a potential first-time buyer or know someone who is, please reach out, I’d be honored to help.

If you’re looking for a new home, you might notice something called the ” Walk Score^®” on property listings. But what does it really mean for you?

The Walk Score^® algorithm calculates a score of walkability based on distance to 13 categories of amenities (e.g., grocery stores, coffee shops, restaurants, bars, movie theaters, schools, parks, libraries, book stores, fitness centers, drug stores, hardware stores, clothing/music stores). A high walk score means your new home is within walking distance to essential amenities—making life more convenient and car-lite!

What are the scores?
90-100: Walker’s Paradise. Daily errands do not require a car.
70-89: Very Walkable. Most errands can be accomplished on foot.
50-69: Somewhat Walkable. Some errands can be accomplished on foot.
25-49 Car Dependent. Most errands require a car.
0-24: Car-Dependent. Almost all errands require a car.

Curious about finding a home in a walkable area? Let’s explore together!

Economic Forecasts & Trends • Monthly Newsletters • November 2, 2024

What is your home worth and why do you want to know?

by Jill Langer

Your home is your shelter where you make memories, a large part of your financial nest egg, and a vehicle for creating wealth. Knowing what your home is worth is empowering and important. The reasons that may come up when you need to know your home’s value can have a direct impact on your financial health. Do you need to update your insurance, do some estate, tax, or financial planning, prepare for a re-finance, line of credit, or remodel, or are you considering a move? Relying on accurate home valuations for all of these endeavors will result in the best outcome.

To estimate your home’s value, you can easily jump on a public website that will spit out a value. This is called an AVM (Automated Valuation Model). There are a handful of free ones such as Zillow, Redfin, and RealEstimate. These sites are free for the consumer to visit and are based on a unique AI-generated algorithm that is typically a recipe of tax assessment data, CPI figures, market trend data, computer-picked comparable properties, and user-submitted data. They do not take into consideration important value points such as the condition of your home, improvements you’ve made, or nuances of the neighborhood; factors that only an actual person can evaluate.

It is important to note that on all three of these free sites, the algorithm and AVM tool are funded by the advertisers on the site, which are real estate brokers and lenders who want your business. The AVM is the carrot to get you in front of these high-paying advertisers who hope you click to connect so they can convert you into their real estate client. This is unlike the relationship-based business that I foster; this is more of a “sales-y,” transactional approach. Despite the sharks in the water, an AVM is a good starting point, like dipping your toe in the pool, but don’t get bit!

Here are the current AVM (Automated Valuation Model) values for a subject home from four sources (3 free and 1 fee-based). As you can see, the values vary. If you have a need to know the value of your home, don’t rely on an algorithm. According to Zillow, their accuracy varies by 7.49%; that is a huge variation! For example, that is $75,000, either high or low, for a $1M home. Depending on what you are planning for, that inaccuracy can severely cost you.

The AVMs above vary by 58%. If you apply the average Zillow accuracy percentage, the Zestimate® above could be off by $143,000 or more. It is important in this new world of AI that we do not underestimate the power of the human algorithm. Evaluating a home with all 5 senses, experience, and expertise is critical in establishing a home’s true value. Just like AVMs that vary, it matters who you align with, too. Hungry sharks who are paying to find clients, brokers who sell real estate as a hobby or side hustle, or brokers who are not engaged can all be detrimental. Seek out a professional who is committed to their craft, a student of the market, and up-to-date on market trends when you are assessing your largest asset.

If you want more precise information, consult a trusted advisor like me. By selecting accurate, comparable properties and analyzing today’s market trends, I will provide you with a much more comprehensive evaluation of your home’s value relative to its specific features, condition, and location. Please reach out if you are interested in having me tour your home and complete a Comparative Market Analysis (CMA) so you can plan for your future with confidence.

From saunas to gyms, more people are prioritizing private, custom spaces in their homes where they can focus on routine without distraction.

Saunas & Steam Showers
A steam shower is typically a stand-alone shower stall that can produce steam without running the hot water. The shower enclosure is sealed off from the rest of the bathroom, creating a self-contained humid environment that can also be used for bathing.

A steam shower is similar to a sauna in that it promotes relaxation with heat, but these two amenities require different equipment. A sauna—even a wet sauna—begins with dry heat from a stove or rocks. Users can choose to add some humidity with steam, but it rarely passes 60%, whereas steam showers provide close to 100% humidity. Saunas also aren’t equipped to handle running water like steam showers are. Saunas get substantially hotter than steam showers do, but because steam inhibits your sweat response, steam showers will allow you feel the effects of the heat more quickly and intensely than the sauna.

A home steam shower costs about as much to install as a home sauna. Both provide similar health and relaxation benefits, though steam offers more relief for dry skin and respiratory issues. If you’re considering including a sauna or steam shower as part of a bathroom remodel, the difference may come down to personal preference and available space.

Home Gyms & Studios
Your home’s design should include more than just your personal style; it also should accommodate your hobbies and lifestyle. If you’re committed to keeping active and working out regularly, a home gym might be a necessary part of the floor plan. Being able to fit a workout in when you have the spare time during the day without having to run across town can be life-changing.

Even better is a space that is beautiful and well thought out. A functional and aesthetic space can be welcoming and energizing. Start by bringing your own personal style into the space. Maybe a rattan light fixture or a fun wallpaper. If you don’t have room for a lot of equipment, opt for pieces that are designed to be easily stored out of the way, like a walking pad that can be folded and hung on the wall instead of a full stationary treadmill. Protect your floors from damage with rubber mats. They will also help to reduce the noise of the equipment, especially if you’re on the second floor of your home.

Wellness & Hobby Spaces
Wellness rooms can be about physical wellness, of course, but they’re also about mental well-being and can encompass anything that makes you feel calm, centered, connected, and rejuvenated. More people are realizing the importance of prioritizing their physical AND mental health. A wellness space can be for many different things: a music room, meditation, library, or even a dedicated space for hobbies. Think about what your goals are before designing your retreat.

Even a small nook exclusively devoted to your wellness space can be beneficial. No matter the size of your space, start with some basic elements and then build from there with things that bring you calm and happiness.

• Add sounds of nature or aromatherapy to lift your mood
• Choose nature’s colors for your eyes to land on, such as blues, greens, and neutrals
• Clear away any distractions
• Surround yourself with plants on the ground, table surface, and hanging
• Make your space comfortable with a cozy throw

Buying Homes • Economic Forecasts & Trends • Selling Homes • October 2, 2024

Rates Down, Inventory Up: Opportunity Knocks!

by Jill Langer

As we celebrate the start of autumn, the season of change, the leaves on the trees are not the only things that are falling. Interest rates have gradually fallen throughout the year. Just 11 months ago, rates were almost 2 points higher; in the frothy spring market, they were nearly 1.5 points higher. During this same time, the median price in King County and Snohomish County grew. In King County, the median price was recorded at $975,000 this August and at $775,000 in Snohomish County, which are both up 7% year-over-year from August 2023.

Another trend that we are witnessing is a rise in available inventory for sale. August recorded the highest level of available homes for sale since the fall of 2022, two years ago. There were 3,105 available homes for sale in King County in August 2024 compared to 1,207 in January 2024, and 1,147 in Snohomish County in August 2024 compared to 374 in January 2024.

The combination of lower borrowing costs and more selection should be a welcome change for buyers. When the inventory was much tighter in the first half of 2024 and interest rates were higher, prices were increasing at a rapid rate. We are starting to see new buyers enter the market and some who have sidelined themselves return. This indicates that prices will remain stable as we finish out 2024.

Currently, buyers have more selection and the opportunity to grab a lower monthly payment. As you can see from the chart below, buyers have a significant opportunity to afford a higher price point at a lower rate or stay at the same price point and have a lower monthly payment. The reduction in rate over the last year is reducing monthly payments and creating great long-term savings over the life of the loan. The rule of thumb for affordability is a 1-point shift in rate affects a buyer’s buying power by 10%. For example, a home priced at $800,000 with a 7% interest rate will have a similar monthly payment as a home at $880,000 with a 6% rate.

The hesitation I am seeing in

the marketplace is a desire for rates to come down even further. The good news is that they are predicted to continue this gradual decline. Where I am concerned is a decrease in selection. If we look at seasonality, it is common for inventory to be low in the first half of the year, especially in Q1 (see the King & Snohomish graphs above). If rates continue their slide and fewer new listings come to market, buyers will find themselves duking it out in 2025. Right now, while there are multiple offers on some properties, there are more properties that are being negotiated into contracts with one buyer.

This has created a more nimble market, particularly for buyers who also have to sell their homes to reposition their equity into a downpayment. While tight inventory provides great leverage for a seller, many sellers are also buyers. Analyzing the market conditions to align the environmental influences to create the best possible outcome for your goals is paramount, and it will not be the same for everyone. Depending on my client’s goals, timing can vary.

Oh, and another sentiment I often hear is, “Will rates under 5% ever be back?” That is rather unlikely and will go down as a historic time in our economy. With that said, if you are in your “forever home” and you captured a historically low rate, kudos to you! Truly, so awesome! If you are not in the home that is right for you, now may be the time to curate a plan to get you into your next home. If homes were selling at a rapid rate and prices were appreciating this last spring with 10% less buyer power, I imagine next spring will be much of the same, if not more.

One final item to note is the election. History shows that post-election year markets are brisk with sales and experience price growth and rate decreases. I am paying attention to key indicators such as inflation figures, unemployment measurements, the gap between the 10-year treasury yield and mortgage rates, and our local market conditions in order to provide my clients with the most accurate and up-to-date information to empower strong decisions.

Are you curious how all of this affects you? Real estate is the number one tool for building wealth, and you also get to live there. I think that is pretty important, and I love nothing more than providing valuable insights, having strategic conversations, and helping people align their homes with their lives. Home is where the heart is and also where your nest egg has the most reliable long-term growth. Please reach out if you’d like to dig into the details and apply them to your housing and investment goals.

Buying Homes • Economic Forecasts & Trends • Selling Homes • September 8, 2024

End of Summer Market Update

by Jill Langer

Summer 2024 welcomed an increase in available inventory, a drop in interest rates, and continued price stability, which has upheld strong home equity levels. After a double-digit ramp-up in price appreciation in the first half of 2024, prices have slightly come off the peak of May 2024 and found stability. This trend is historically consistent with seasonal patterns and nothing to be alarmed about.

Increased selection for buyers was a welcome relief as inventory was extremely tight in the spring. While there are still homes getting multiple offers and escalating, we have also seen some buyers make purchases contingent on the sale of their current home. The market has become a bit more nimble for buyer’s terms in some cases. It is important to understand the nuances of each location, product, and price point, as the environment can vary which would indicate whether a buyer would need to compete or be able to negotiate more.

These trends are coupled with rates dropping below 7% in June and they have recently sat in the mid-6%. Rates were a point and a half higher in October 2023; this is a great improvement! We anticipate rates slowly dropping further which will put upward pressure on prices. The Fed meets again this month and if rates come down even more, buyer activity will increase. Between the lower rates and higher inventory, buyers should be excited and ready to act!

As you can see from the chart below, this shift in rate directly relates to a buyer’s monthly payment. Homes are expensive, so the cost to carry a loan is critical. These recent drops are helping out and should be paid close attention to as buyers are payment-driven in most cases. The opportunity to secure a home now with today’s rate could mean a buyer could enjoy a stable price and choose to re-finance or adjust to a lower rate later keeping their same basis. Buyers should also understand that homeownership is a key component to building wealth.

I anticipate a healthy late summer and fall market. Over the Labor Day Weekend, buyer traffic was busy despite the holiday and activity is bubbling up. The lower rates are helping some folks jump off the fence. Even some sellers are getting ready to sell and relinquish their lower rate, so they can move to a home that better fits their needs. I’m excited about the real estate market for the remainder of 2024 and into 2025. If you are curious about how the trends relate to your goals, please reach out. I am committed to staying connected and up-to-date on the latest trends so my clients make well-informed decisions.

Here is a quick update on a topic I have been keeping you up-to-date on all year. On August 17, 2024, the NAR Settlement requirements were enacted. This required significant changes to real estate practices across the country. This made big news and stirred headlines. The good news is in WA state we made the majority of these changes back on January 1, 2024, when the law surrounding buyer agency was changed.

Since January 1, 2024, we have been required to obtain Buyer Brokerage Services Agreements (BBSAs) with buyers we are providing real estate brokerage services. These agreements can be exclusive or non-exclusive, must establish clear buyer brokerage compensation parameters, have a defined agreement term, and call out whether dual agency is allowed. I have embraced these changes and have brought value to my clients through this modernized process.

Our local MLS, the NWMLS, chose to opt out of the NAR settlement in May 2024. They felt confident that the risk for exposure was low due to advancements they have been making since 2019 to elevate transparency around brokerage compensation. Their proactive consumer-focused approach along with the new WA state law have had our state ahead of the curve.

The majority of the required practice changes required by the settlement were already in place in WA state as of January 1, 2024. Due to their choice to opt out, the NWMLS will not have to comply with the requirement to not publish a seller’s offer of compensation to a buyer’s brokerage. This is confusing to all parties of a transaction and the opposite of transparency. I am proud to run my business as a member of the progressive NWMLS and under the new law established by our state on January 1, 2024.

On August 15th, 2024, the NWMLS made some slight updates to some of their forms to coincide with the final settlement details. Most notably, buyer brokerage compensation was made more clear in the Purchase and Sale Agreement. It can be connected to what the seller is offering in their listing, what is agreed upon in the BBSA, or both. Sellers can choose to offer buyer brokerage compensation, choose not to, or request to negotiate it as a term in a buyer’s offer. Depending on how the established BBSA aligns with the Purchase and Sale Agreement, the buyer brokerage compensation will be paid by the seller, buyer, or a combination of both.

If you have any questions about the settlement and all of the changes we have navigated since 2019 until now, please reach out. I am committed to providing valuable services and clear communication to the buyers and sellers I serve. I understand that purchasing and selling real estate is one of the largest financial decisions a person ever makes and it is often related to big life changes. Navigating such importance takes great skill and care and I am committed to obtaining the best results for my clients while creating an enjoyable experience along the way.

Thank you to everyone who pitched in during the Summer Food Drive! Through your generosity, we collectively donated $1,240 and 1,058 pounds of food to Volunteers of America Western Washington food banks! This is all going directly into our communities to help our neighbors in need.

Thank you!

Buying Homes • Economic Forecasts & Trends • Selling Homes • August 29, 2024

How Election Years Affect the Real Estate Market

by Jill Langer

As we approach November and the Presidential election nears, it would be good to look back on how election years have historically affected the real estate market. There is certainly a lot going on and this stimulation can cause pause. Buying and selling real estate is a big life event and the election is a big national event. Some buyers and sellers will delay their moves until after they know how the election is going to pan out. Sometimes this delay is caused by pure distraction and sometimes there is a level of uncertainty that is created until a decision is made.

Here is some interesting data that illustrates the trends of consumer behavior surrounding a Presidential election. Interest rates, the rate of home sales, and price growth are all analyzed below. Looking back to look forward provides some concrete evidence of how a Presidential election can affect the performance of the housing market.

First, interest rates! We have recently experienced a nice drop in rates. Rates have been extremely volatile over the last two years. Last October, rates peaked at almost 8%, came down to 6.75% in January 2024, went back up to 7.4% in April 2024, and have recently dropped to the lowest level we have seen since April 2023 and are hovering around 6.5%. This is largely due to inflation finally settling and a recent jobs report showing increased unemployment. This trend is predicted to continue as the Fed considers a rate cut in September with the plan of easing rates as we finish 2024 and head into 2025.

The chart below shows what rates have done over the last eleven election cycles and it certainly looks like the current trend with rates follows historical norms. This is an opportunity for buyers to jump into the market as this reduction in rate is accompanied by an increase in inventory. With lending costs lower and more selection buyers could even find themselves in a position to negotiate a further reduction in rate to help with the overall affordability of a purchase.

The market is very much driven by what a buyer's monthly payment would be. Lending costs are a huge factor that will play into consumer confidence and the amount of sales happening. Further, we expect more home sellers to come to market as rates ease as they will be more inclined to give up their low rate to move to a home that is a better fit for their lifestyle.

The chart below shows the increase in home sales in nine out of the eleven past election cycles. In fact, the first year after an election is historically robust with activity. If history repeats itself in 2025, buyers who are ready may want to consider making a move now. With the dip in rate, increased selection, and some buyers sidelined it could be a great time to make a purchase with a little less competition.

Even better news is that historically prices increase after an election year. In seven out of the last eight post-election years, prices increased. The only year they did not, was 2008 which was in the hollows of the Great Recession. Of course, we will not be able to measure this until a year from now and this will be something that I will be paying close attention to.

So far, 2024 has been a year of price growth. We experienced huge gains in the first half of the year over 2023. 2024 marks the year of recovering from the 2022 post-pandemic correction and re-gaining price stability. Equity levels in our area are very strong with close to 60% of homeowners having at least 50% home equity. We expect the movement of this equity to become more nimble as the cost of borrowing money comes down.

What we have in store over the next three months will be distracting, stimulating, and just a lot. I hope the information above provides some history that helps ground the facts during a time of heightened angst and uncertainty. As always, life dictates changes in real estate needs. If you or someone you know has come up on some life changes that indicate a move would be beneficial, please reach out.

Despite the chaos of the election, you can never plan too early for these big life transitions and there might be some great opportunities amongst the noise. Whether it's a purchase, a sale, or both, I am equipped to help you assess your goals and help you devise a plan. The best time to make a move is when you're ready and I'm here to help.