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Should I Wait to Move Up?
While only you can decide when it’s the right time to purchase a new home for your family, there are some compelling reasons to consider a move now rather than later…
Did you know that sellers moving up to a more expensive home actually fare better when prices are low? As you can see in the chart below, even move-up sellers who bought in the peak of the market will come out ahead. This is because the money you save on your more expensive home will outweigh the loss of value on your current home.
While waiting may increase the value of your current home, it will also increase the purchase price of your new home. According to the latest S&P/Case-Shiller Home Prices Indices–the leading measure of US home prices–prices are already up 7.4% year-over-year in the Seattle Metropolitan area. If you’re moving up to a more expensive home, this means you’ll actually have less net gain by waiting to sell and purchase your new home.
Rising interest rates will also have a direct impact on your bottom line. Our current 3.4% interest rate represents a phenomenal low. How low? Buyers now actually pay less monthly interest on a median-priced $399,950 house in Seattle today than they did on a median-priced $265,000 house back in 2000. Considering wage inreases since then, that's pretty incredible! However, rates have started slowly creeping up since December and are expected to rise to 4.4% by the end of the year. Even this small change can mean a huge difference in both your monthly mortgage payment and the loan amount you can can qualify for…
A shortage of homes for sale in the current market means less competition for sellers. Right now, there are less homes for sale in the Seattle-Eastside area than we've seen in the past 15 years (as long as we've been keeping record!). While that might make it harder to find the right home to purchase, it will also reduce the time it takes to sell your current home. Buyers are quickly snapping up homes as they become available, and we're even seeing multiple offers on homes that are strategically priced and well-prepared for market. Selling your house faster will minimize the typical household disruptions–such as showings and open houses–that you would typically have to contend with during a slower market.
Have questions? Contact me any time…I am never too busy to help!
*1: Projected increase based on current 7.4% year-over-price gains for the Seattle area as shown in the S&P/Case-Shiller Home Price Indices.
*2: Projected average 30-year fixed mortgage interest rate in Q4 2013 based on the Mortgage Bankers Association predictions.
Sources:
S&P Dow Jones Indices Press Release, January 29th, 2013
keepingcurrentmatters.com
© Copyright 2013, Windermere Real Estate/Mercer Island.
Gardner Report Shows Positive Growth in the Puget Sound
Mr. Gardner is a land use economist and principal with Gardner Economics and is considered to be one of the foremost real estate analysts in the Pacific Northwest. In his third quarter report for 2012, he continues to see positive growth in the economy and real estate in Western Washington, but the rate of growth has tapered. This is mainly due to very low levels of inventory and likely to be temporary. He does not see the ‘shadow inventory’ of distressed housing flooding the market, but rather as inventory that will play an important part of the housing recovery. To see the entire report, click here.
Need a Few Gift Ideas?
I am just starting my gift shopping and wanted to share a few great gift ideas for those people on our list who are tough to shop for…
Unusual gifts – How about whiskey rocks (shown on left) that will keep your drink chilled but not watered down? I found unusualgifts.com and they have lots of fun ideas, including a portable ping pong set – don’t we all need one of those?
Personalized stationary – I am big believer in hand written notes and this can make a wonderful gift that you know will get used. Check out Minted.com or TinyPrints.com for inspiration. Also, a nice pen makes a great gift; Silberman Brown Stationers has a great selection of pens and a multitude of options for personalized stationary.
Cooking classes – Not only a gift, but a fun experience as well. SurlaTable.com features classes like “Better with Bacon” and “Cooking without Recipes” to bring out your inner chef.
Terrarium – If you prefer something homemade, find an interesting glass vase or jar and add rocks, shells, mosses, orchids or succulents, these are beautiful on bathroom counters and make great hostess gifts.
Most importantly, your presence is the greatest gift you can give, so be sure not to over-do it this holiday season and remember to take care of yourself so you can fully enjoy your time with friends and family. Enjoy the season!
Feng Shui Tips for the Kitchen
With the weather changing and the upcoming holidays, many of us are enjoying more time in one of the most important rooms of the house, the kitchen. It's the hub for not only food preparation and dining, but socializing as well. In Feng Shui the kitchen relates to your health and wealth; based on the premise that as we nourish our bodies with healthy food, we are enabled to go out into the world and create wealth and other resources for our lives.
Here are five easy ways to tune up your kitchen in time for the holidays…
1. Add a fresh fruit and a fruit bowl to symbolize the abundance of nature
2. Place a shiny tea kettle on the stove top that reflects the burners and symbolically double your wealth potential
3. Display glass containers of grains and colorful pastas as a visual reminder to eat healthy
4. Rotate the use of the stove top burners keeping the fire element energized
5. Fix any plumbing leaks – water represents money energy in Feng Shui
Considering a kitchen remodel? I have some great resources to help you maximize your layout design.
Tips courtesy of Cynthia Chomos, Feng Shui Consultant and Color Designer, cynthiachomos.com.
New Color Trends for Fall 2012
Fall: what a perfect excuse for change around your home and in your wardrobe! This autumn, fashion designers are combining versatile mocha, grey and gold neutrals with a boost of spirited hues. Where the muted rust of autumns past blended quietly with the natural scenery, this year's palette sets out to rival it with vivid tangerine, jewel-tone greens and a brilliant blue surpassing even the clearest autumn sky. Rounding out the palette are feminine shades of rich lavender, smoky rose and a sizzling pink sure to warm up those chilly days.
Whether you're looking for fun seasonal decor or that perfect fall scarf, try out these hot new hues for an instant style update…
View Pantone’s full report for designer quotes, sketches and more!
Seattle Economy Ranked #3 in US
The Seattle-Tacoma-Bellevue area economy was recently ranked third strongest in the US for long-term growth and resiliency! Independent research firm Policom Corp. analyzed data from 1992-2010 and based its rankings consistent growth in both size and quality of 23 different economic factors.
Olympia also made the list at #11 with the Tri-Cities close behind at #13. Stronger economies (like ours) have shown an overall growing trend and resiliency in the face of our recent recession. Click here for the full article!
Source: NWREporter, http://nwmls.com
May Reports Show Home Prices Up
New listings in the month of May lowered absorption rates slightly in Seattle, the Eastside and King County while pending sales remained strong. Mercer Island saw a decent decline in pending sales…likely due, in part, to the lack of inventory for sale in key price ranges. Median sales prices are up in most areas and average sales prices are varied. By far, the strongest spring market we have seen in years.
Data prepared and analyzed by Julie Nugent for Windermere Real Estate/Mercer Island. For questions or comments, email Julie at julie@windermere.com.
Pending Sales Soar in Greater Seattle
The absorption rate based on pending home sales continues to be off the charts with listing inventory very low and sales activity brisk. Overall, prices have continued to slip slightly in all areas except Seattle Metro–which actually saw prices rise. Of note however, is the fact that distressed properties have sold for significantly less than non-distressed homes for sale.
Data prepared and analyzed by Julie Nugent for Windermere Real Estate/Mercer Island. For questions or comments, email Julie at julie@windermere.com.
Spring Feng Shui Tips
Spring is in the air and it’s the perfect time to refresh your surroundings and life with new energy. Whether it’s starting a remodeling project, gardening or painting your walls new color, the active “yang” energy of the season can support you to take action!
Enhance the path to your home. Welcome spring with a floral doormat and a wind chime hung outside your door to stimulate energy. Remove dead plants from garden beds and pots and replace them with colorful plants and flowers. Pay attention to your decks and backyard spaces for inspiring outdoor views.
Bring the “wood” element of nature indoors. Add vase of fresh flowers or a plant to key living spaces (if you don’t have a green thumb, silk plants represent the vitality nature in full bloom). Throw away dried flowers that lack life force and become dust collectors!
Change your bedding and bedroom décor. To reflect the shift from winter to spring, use lightweight floral or striped prints for curtains, pillows, or bedding. Add inspiring artwork and clear the clutter to enhance this important room. A change in scenery refreshes body, mind and spirit!
Paint your walls or an accent wall. Paint is a low-cost and high-impact way to energize your living spaces. Be bold and try a bright color to transform your walls from drab to dramatic. Use low or zero VOC paint to ensure a healthy environment for you and your loved ones. Happy painting!
If you’re interested in a spring “tune-up” for your home and would like assistance to get started, I highly recommend my favorite Feng Shui and Color Consultant, Cynthia Chomos. She can be reached at (206) 919-0107 or visit: www.CynthiaChomos.com
Spring Color Trends for 2012
Last weekend’s burst of sunshine was a nice reminder that spring is just around the corner. Is it time to refresh your home and wardrobe? Pantone’s Spring Fashion Color Report is out and top fashion designers are turning to bright, juicy colors this spring with everything from golden yellow and tangerine orange to muted teal, soft purple and minty green. Classic neutrals such as navy and tan anchor the palette with their breezy, carefree feel.
Check out the palette below for inspiration during your spring shopping. Instantly update a room with colorful throw pillows, or freshen up your beige and navy basics with a trendy new scarf, tie or jewelry accent. Happy shopping!
View Pantone’s full report for designer quotes, sketches and more!
