Overcoming Hesitations as a Seller in Today's Market

Many homeowners thinking about selling may have concerns holding them back. Two primary factors are the current higher mortgage rates and the fear of not finding a suitable property amidst the low housing supply. Let's address these challenges and provide valuable advice to overcome them.   Challenge #1: Reluctance to Take on Higher Mortgage Rates According to the Federal Housing Finance Agency (FHFA), the average interest rate for current homeowners with mortgages is less than 4% (see graph below). However, today's typical 30-year fixed mortgage rate for buyers is closer to 7%, leading many homeowners to hesitate moving to a new home due to higher borrowing costs. This situation is commonly known as the mortgage rate lock-in effect.   Our Advice: Timing is Key While experts project that mortgage rates may gradually fall as inflation cools, waiting may not be the best option. Mortgage rates are challenging to predict accurately, and meanwhile, home prices are on the rise. Selling now could mean avoiding higher home prices when purchasing your next property. If experts are right and rates do fall, you can always consider refinancing later if the opportunity arises.   Challenge #2: Fear of Not Finding the Right Property With many homeowners reluctant to take on higher rates, the number of homes available on the market decreases, resulting in low inventory. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains that inventory will remain tight in the coming months and even the next couple of years. This limited housing supply may make you hesitant to sell, fearing that you won't find a suitable property to purchase.   Our Advice: Expand Your Search If the fear of not finding your next dream home is holding you back, consider exploring all your options. Look at various housing types, including condos, townhouses, and newly built homes. Additionally, if your work situation allows it, consider areas you hadn't previously searched. Being more flexible with your location can open up more affordable options and increase your chances of finding the right property.   Instead of dwelling on the challenges, focus on what you can control. Reach out to a local agent with the expertise to navigate these waters and find the perfect home for you. Taking proactive steps and being open to various possibilities can help you overcome hesitations and make the most of today's real estate market.

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Separating Facts from Fear: Understanding Today's Home Prices

If you're currently in the market to buy or sell a home, you're probably wondering: What's the current state of home prices? Finding clarity on this topic can be challenging, especially with the way headlines are portraying the data.   How Media Portrays It Media outlets often rely on negative comparisons of current stats with the last few years. However, it's essential to recognize that this year cannot be compared to the 'unicorn' years, a period of unsustainable record-high home prices. As the housing market now begins to stabilize, some are presenting it as a negative development, instilling fear in people's minds about what lies ahead. However, it's crucial to understand that the worst home price declines are behind us, and we are witnessing a return to more normal home price appreciation.   Seasonality In The Real Estate To gain a clearer understanding of home price trends, let's focus on what's typical for the market and omit the last few years, which were anomalies.   Let's start by examining the concept of seasonality in real estate. Throughout the housing market, there are predictable ebbs and flows that occur each year. Spring typically marks the peak homebuying season, characterized by increased market activity. The momentum usually remains strong during the summer but begins to ease as the cooler months approach. Home prices follow this seasonality because prices tend to appreciate when demand is at its highest.   Before the period of abnormal price fluctuations, there existed a reliable long-term home price trend. The graph below, utilizing data from Case-Shiller spanning from 1973 to 2021 (not adjusted for seasonality), illustrates typical monthly home price movement: As evident from the data of the last 48 years, home prices tend to grow at the beginning of the year, albeit not as significantly as during the spring and summer markets. The slowdown during January and February is a result of reduced market activity due to fewer people moving in colder months. As the market transitions into the peak homebuying season during spring, activity intensifies, resulting in more substantial price appreciation. Subsequently, as fall and winter approach, activity eases, leading to a deceleration of price growth, while still maintaining an overall appreciation trend.   Why Is Understanding This Crucial? In the coming months, as the housing market settles into a more predictable seasonal rhythm, you may encounter more headlines that either misinterpret or misrepresent home prices. These headlines might use various price terms, including: Appreciation: Referring to price increases. Deceleration of Appreciation: Indicating continued price growth, but at a slower or more moderate pace. Depreciation: Suggesting price decreases.   It's essential not to be swayed by such headlines! The slowdown in home price growth (deceleration of appreciation) during market seasonality in the fall and winter should not be misconstrued as actual price depreciation. Instead, it's a typical pattern of slowing home price growth as the months progress.   If you have questions about home prices in your area, it's best to connect with a trusted real estate professional. By understanding the seasonal trends and separating facts from fear, you can make informed decisions and navigate the real estate market with confidence.

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Top 9 Neighborhoods in Spokane Washington (According to Locals!)

  Welcome back to our exploration of the nine best suburbs in Spokane, Washington. In this blog, we'll be using crowd-sourced ratings from niche.com, a publicly sourced rating website for schools, neighborhoods, and more. However, I must mention that as a licensed realtor in Spokane, I am bound by fair housing laws, which means I can't be overly biased about neighborhoods. Let's dive into the ratings and my insights into these suburbs.   #9 Spokane Valley Spokane Valley ranks ninth on our list with 273 votes. It received a B for schools, C+ for housing, B for families, C for safety, A- for nightlife, and B+ for diversity. The C+ for housing may be due to the area's higher prices compared to other parts of Spokane, and the C for safety might be better understood by looking at a crime map.   #8 Town and Country Town and Country is a small area in North Spokane, and it received a B+ for schools, B+ for housing, B+ for families, no rating for safety, B- for nightlife, and B for diversity. It's a straightforward neighborhood with mid-400s to mid-500s in median home prices.   #7 Cheney Cheney is a college town, home to Eastern Washington University. It got a B- for schools, C- for housing, B for families, no rating for safety, A- for nightlife (surprisingly), and B for diversity. The nightlife might be attributed to college activities, but overall, it's more of an agriculture and blue-collar town.   #6 Mead Mead ranks fourth and stands out with an A- for schools, B for housing, B+ for families, no rating for safety, C+ for nightlife, and B for diversity. The Mead School District is highly rated, making it a popular choice for families.   #5 Millwood Millwood is a cute little community on the north side of Spokane. It received a B- for schools, B for housing, B+ for families, no rating for safety, B+ for nightlife, and B for diversity. It's a good first-time homebuyer area and offers decent investment opportunities.   #4 Medical Lake Located on the West Plains, close to the Air Force Base, Medical Lake received a B for schools, A- for housing, B+ for families, no rating for safety, B- for nightlife, and B for diversity. It's a supportive community for military families.   #3 Country Homes and #2 Fairwood Country Homes and Fairwood, both close to Town and Country, received similar ratings. Country Homes has a slight edge, with an A- for schools, B- for housing, B+ for families, no rating for safety, B+ for nightlife, and B for diversity. These neighborhoods are excellent options in North Spokane.   #1 Liberty Lake Liberty Lake is highly regarded, ranking first with 50 votes. It boasts an A- for schools, B for housing, A for families, B- for safety, B- for nightlife, and B for diversity. Its popularity is attributed to its proximity to Idaho and the affordability compared to Idaho's housing market.   While these crowd-sourced ratings offer some insight, remember that everyone's experiences and preferences differ. When looking for a neighborhood in Spokane, it's best to consult with a local real estate professional for a more nuanced and personalized information.

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