Cracking the Myth: Are You Shopping For A House Or Looking For A Unicorn?

Comparing real estate metrics from one year to another can present challenges in a typical housing market due to market variability, which can diminish the accuracy and meaningfulness of such comparisons. Unforeseen events can significantly impact the circumstances and outcomes being evaluated. Attempting to compare this year's real estate data to the previous two 'unicorn' years is virtually pointless. By 'unicorn,' we refer to something that is highly desired but difficult or impossible to find. The real estate landscape underwent profound changes in the past few years, primarily due to the pandemic. The demand for homeownership surged as people sought homes with dedicated office spaces and spacious backyards. Waves of first-time and second-home buyers flooded the market, while historically low mortgage rates plummeted even further. The forbearance plan effectively curtailed foreclosures, and home values soared to unprecedented levels of appreciation. These were truly 'unicorn' years—periods greatly desired but rarely seen. However, the market is now returning to normal as the unicorns have retreated. Comparing today's market to those exceptional years serves little purpose. Here are three examples illustrating why:   1. Buyer Demand: Headlines may suggest a scarcity of buyers, but the truth is that over 10,000 houses are still being sold daily in the United States. While buyer demand has decreased compared to the two 'unicorn' years, it remains robust when compared to normal years like 2017-2019, as demonstrated in the graph below (data from ShowingTime):   2. Home Prices: Attempting to compare today's home price increases with the past couple of years is misleading. According to Freddie Mac, both 2020 and 2021 witnessed historic appreciation figures. To provide a more accurate perspective, the graph below also displays home value increases during more typical years (2017-2019): As the graph indicates, we are returning to more conventional home value growth patterns. Although there were a few months of minimal depreciation in the latter half of 2022, Fannie Mae reports that the market has since returned to normal appreciation rates in the first quarter of this year.   3. Foreclosures: Alarming headlines have highlighted the percentage increase in foreclosure filings. However, it is crucial to note that these percentages represent an increase from historically low foreclosure rates. The following graph, sourced from ATTOM—a property data provider—illustrates the situation: Now that the moratorium on foreclosures has ended, there will be an uptick in numbers compared to the past three years. While it is disheartening for families to lose their homes, putting the current figures into perspective reveals a return to the normal foreclosure filings observed between 2017 and 2019.   In conclusion, this year's housing market is likely to generate unsettling headlines, with many drawing inappropriate comparisons to the 'unicorn' years. To maintain a proper perspective, it is advisable to consult a real estate professional, who can provide valuable insights and guidance.

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Don't Move to Spokane Until You Know About This!

  If you're considering a move to Spokane from anywhere across the country, this blog post is for you. Relocating can be a stressful and daunting process, but with the right guidance and information, you can make the transition smoother. In this post, we'll outline the four essential steps you need to know when moving to Spokane: research, neighborhood selection, virtual showings, and the escrow period. Let's dive in!   Step 1: Research Phase The research phase is crucial, and it can start anywhere from a few months to two years before your planned move. Begin by exploring online resources to get a sense of what Spokane is really like and what it's like to live there. Watch informative videos, join relevant Facebook groups, and follow local Spokane accounts on social media. It's also beneficial to connect with current residents, friends, family, or even your future employer or co-workers for their insights on neighborhoods, schools, parks, and more. Take advantage of mortgage calculators to determine your price range and monthly mortgage affordability. Additionally, utilize platforms like Redfin or Zillow to explore properties and leverage Google Street View to get a feel for different neighborhoods.   Step 2: Neighborhood Discovery To gain a better understanding of Spokane's neighborhoods, it's highly recommended to visit the city in person. Plan a two to four-day trip, focusing on driving through various neighborhoods rather than being a tourist. This allows you to evaluate which areas align with your preferences and needs. While finding the perfect home is essential, prioritize narrowing down your preferred neighborhoods during this discovery trip. Collaborate with your real estate agent to identify the most suitable neighborhoods based on your budget, desired amenities, and lifestyle.   Step 3: Virtual Showings For those unable to visit Spokane frequently, virtual showings become invaluable. Virtual tours, when set up properly, provide an immersive experience. These tours feature high-quality videos, often captured on a phone with a gimbal for smooth footage. A knowledgeable guide can walk you through the property, highlighting key features and providing honest insights. Virtual tours also include floor plans and the last-mile drive to give you a sense of the surrounding area. If you find a property you like, plan to visit during the inspection period to view it in person and attend the home inspection if possible.   Step 4: The Escrow Period Once you've found your dream home and made an offer, the subsequent steps can be handled virtually. The escrow period involves inspections, appraisal, and signing paperwork, which can all be managed remotely. Coordinate with your real estate agent and other professionals involved to ensure a smooth transaction. Utilize mobile notaries or electronic signing for document completion, making the process convenient and efficient.   Moving to Spokane requires careful planning and execution. By following these four essential steps – conducting thorough research, exploring neighborhoods, leveraging virtual showings, and managing the escrow period – you can navigate the relocation process successfully. Remember to partner with a trusted real estate agent like Hayden Halstead, who specializes in helping people relocate to Spokane. With the right team and resources, your move to Spokane can be a seamless and exciting transition into your new home.

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Harness the Boom: Unlocking Your Home's Selling Potential in Today's Market!

Considering whether now is the opportune time to sell your house? Here's some valuable information to help you make an informed decision. The current real estate market favors sellers due to a limited supply of available homes. With more prospective buyers than houses for sale, you have a significant advantage. The scarcity of options means your property can attract a larger pool of potential buyers. Let's hear what industry experts have to say about the benefits of selling your house at this time: Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), highlights the historical lows in inventory levels, leading to multiple offers on many properties. Selma Hepp, Chief Economist at CoreLogic, notes the absence of the expected increase in new listings by existing homeowners, resulting in an undersupply of housing. This undersupply intensifies market competition and exerts upward pressure on prices across most regions. While some markets are already heating up considerably, the price premiums witnessed last spring and summer are unlikely to repeat. Clare Trapasso, Executive News Editor at Realtor.com, emphasizes that well-priced, move-in ready homes with curb appeal in desirable areas continue to receive multiple offers and sell for prices exceeding the asking price in many parts of the country. Jeff Tucker, Senior Economist at Zillow, assures that sellers who competitively price and effectively market their homes should encounter no difficulty in finding buyers. In conclusion, if you're contemplating selling your house, it's advisable to consult a real estate advisor who can provide expert insights to help you make the most advantageous move today

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