Real Estate News • July 6, 2021

Is Pierce County in a Housing Bubble? Not This Time (& Here’s Why)

by Mark Bergman

Because of the rapid rise in home prices in the Pierce County area and throughout much of the United States, many people are assuming that we must be in a housing bubble.

Since May of 2019, here’s how much local median home prices are up in Pierce County and in neighboring counties:

Pierce County +37%*
King County +25%**
Thurston County +31%*
Kitsap County +27%*
*median price of residential/condo

**median price of residential only

Nationally since 2012, the increase in housing values is at 126%.

Someone who lived through the housing crisis of 2007-2009 might be experiencing some “déjà vu” with our current real estate market. However, there are many differences between what is happening now and what happened back in 2007-2009.

One of the major reasons that we’re not currently in a housing bubble is because the quality of home buyer’s credit along with the types of loans they are utilizing is vastly different from the pre-bubble buyer.

Another reason we are not in a housing bubble is because today we have a classic supply and demand scenario that does not compare to what happened in the mid-2000s.

The previous housing crisis would be better described as a crisis that resulted from political and lending policies and how these policies affected the housing market. We often describe it as a housing crisis, but that is not the whole story.

Financing Differences Between Now & Then

To be a bubble, we need a large percentage of speculative buying.

The buyers in this market are largely owner occupied, and their down payment and the quality of their credit is much higher than pre-bubble days. The average FICO score in 2005 leading up to the bubble was 715 compared to 788 today.

In 2005, 39.4% of ALL mortgages were some type of the subprime variety and 90% of those were ARM or Adjustable Rate Mortgages. 29% were negative amortization, and 28% were -0- down. Today, only 3.1% of mortgages have an ARM component. Lenders today have very little appetite for risky loans, and credit requirements are much tighter due to government and banking policies.

The Millennial Generation = The Largest Group of Home Buyers Today

The largest cohort of buyers today are from the Millennial generation, which, by the way, is the largest generation to move through our economy since the Baby Boomers. Millennials are entering the prime age for home buying; in fact, 9.6 million of Millennials will turn 30 in the next 2 years. These young people are forming new households and want to participate in the age-old American dream of owning a home. For years after the last housing crash, many said this generation would be a generation of renters. Turns out that is not true as they get married, start families, etc.

Investors Are Feeling Confident

That said, there are “investors” in the market alongside owner occupants for sure. These investors, some of which are large institutional hedge funds and the like, have a strong conviction of the future of U.S. home values. This, along with the precipitous rise in rents has helped fuel the investor demand, but they are not speculators in the sense that their business model relies solely on appreciation.

How Much Has COVID-19 Affected the Demand for Housing?

The current demand is not due to COVID-19 either, although it did serve as an additional catalyst to trends that were already in play. As COVID-19 locked us down, it highlighted the importance of “home.” Since we had to spend so much more time at home, a simple crash pad in an urban setting was not proving to be enough for many. Plus, if other members of the family are home all at the same time, the need to simultaneously accommodate Zoom meetings, school sessions, etc., meant that many people could really use a larger space… and it had many people feeling like a big backyard sure would be nice, too!

There’s a Housing Shortage

Despite our growth in population and changing demographics resulting in high demand, there are simply not enough houses for sale. In fact, nationally we see 36% fewer houses for sale today than we had in 2005. In Pierce County during May of 2006 vs May of 2021, there are 84% fewer homes for sale.

Not enough homes are being built, and this has been going on for some time. In 2007 the nation saw 1.7 million residential permits applied for compared to under 1 million in 2020. The NAR says that based on the historical average, 1 permit is issued for every 2 new jobs. For the period ending in December 2019 in the Seattle-Tacoma/Bellevue area, 28,508 single family permits were issued with 136,000 new jobs.

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Whether you are buying or selling a home in this market (or both), you need an experienced Pierce County real estate expert to guide you through the process. Reach out if you’d like to connect!

This post originally appeared on windermerepc.com by Michael Robinson

Real Estate News • June 29, 2021

Matthew Gardner on Post-Pandemic Recovery

by Mark Bergman

The “demise of downtown” has been greatly exaggerated, according to Windermere’s Chief Economist, Matthew Gardner. That’s one assessment Gardner made recently, along with other observations about the current housing and job markets in the Seattle area.

According to Gardner, those who keep tabs on the real estate market should be careful about reading too much into year-over-year price changes in the housing market. While King County is up 23.5% and Snohomish County is up by almost 33%, Gardner reminds us that the housing market was in a very different place a year ago than it is today. The early days of pandemic shutdowns basically put last spring’s real estate market on hold. So while this year’s price increases certainly indicate a level of economic recovery has taken place, the data needs to be viewed in context for it to be truly useful.

Overall, Gardner advises a cautious optimism regarding the regional economy. He observes that things are improving, but he says it’s important not to get carried away. While Gardner predicts a period of aggressive growth for the next year, he reminds us that many people were spending their money very cautiously this time last year, so naturally as the economy opens back up there will be built-in growth ahead.

On the subject of inflation, many economists caution about rates akin to those of the 1970s and 80s. Gardner, however, predicts a more moderate outcome. Although he thinks it’s likely we’ll have higher interest rates than we’ve seen in the last 30 years, he doesn’t believe we’ll see the same growth in the inflation rate. Gardner predicts that by 2022 things are likely to have settled down into a more typical pattern.

Finally, Gardner addresses the current levels of job loss caused by the pandemic. In total, the Puget Sound region lost about 216,000 jobs during the initial stages of the pandemic, but has since recovered about 103,000 of these. However, that recovery is not evenly distributed across industries. According to Gardner, construction has seen a full recovery of its jobs, and tech and information jobs were minimally impacted by the pandemic. On the other hand, the leisure and hospitality sectors have experienced much slower recovery, having lost about 79,000 jobs but adding back only about 29,000 of those.

As the leisure and hospitality sectors slowly recover from the pandemic, Gardner points out that there is another sign that the local economy is heading in the right direction: the growing demand for in-person entertainment and events. Though many large-scale events like conventions and concerts are still being planned out years in advance, the enthusiastic demand for these events and the easing of government restrictions preventing them is reason for optimism indeed.

This article was originally posted on MyNorthwest and GettheWReport.com

The Gardner Report • May 13, 2021

The Gardner Report – Q1 2021

by Mark Bergman

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 me!

REGIONAL ECONOMIC OVERVIEW

In the summer and fall of 2020, Western Washington regained some of the jobs lost due to COVID-19, but employment levels in the region have been in a holding pattern ever since. As of February, the region had recovered 132,000 of the 297,000 jobs that were lost, but that still leaves the area down by 165,000 positions. Given the announcement that several counties may have to roll back to phase 2 of reopening, I would not be surprised to see businesses hold off on plans to add to their payrolls until the picture becomes clearer. Even with this “pause” in the job recovery, the region’s unemployment rate ticked down to 6.1% from the December rate of 6.4% (re-benchmarking in 2020 showed the December rate was higher than the originally reported 5.5%). The lowest rate was in King County (5.3%) and the highest rate was in Grays Harbor County, which registered at 9.2%. Despite the adjustment to the 2020 numbers, my forecast still calls for employment levels to increase as we move through the year, though the recovery will be slower in areas where COVID-19 infection rates remain elevated.

WESTERN WASHINGTON HOME SALES

❱ Sales in the first quarter were impressive, with 15,893 home sales. This is an increase of 17.5% from the same period in 2020, but 32% lower than in the final quarter of last year—a function of low levels of inventory.

❱ Listing activity continues to be well below normal levels, with total available inventory 40.7% lower than a year ago, and 35.5% lower than in the fourth quarter of 2020.

❱ Sales rose in all counties other than Jefferson, though the drop there was only one unit. There were significant increases in almost every other county, but sales growth was more muted in Cowlitz and Thurston counties. San Juan County again led the way, likely due to ongoing interest from second-home buyers.

❱ The ratio of pending sales (demand) to active listings (supply) shows how competitive the market is. Western Washington is showing pendings outpacing new listings by a factor of almost six to one. The housing market is as tight now as I have ever seen it.

A bar graph showing the annual change in home sales for various counties in Western Washington

WESTERN WASHINGTON HOME PRICES

A map showing the real estate market percentage changes in various Western Washington counties

❱ Home price growth in Western Washington continues to trend well above the long-term average, with prices 21.3% higher than a year ago. The average home sale price was $635,079.

❱ Compared to the same period a year ago, price growth was strongest in Grays Harbor and Mason counties, but all markets saw double-digit price growth compared to a year ago.

❱ Home prices were also 2.9% higher than in the final quarter of 2020, which was good to see given that 30-year mortgage rates rose .4% in the quarter.

❱ I expect to see mortgage rates continue to trend higher as we move through the year, but they will remain significantly lower than the long-term average. Any increase in rates can act as a headwind to home-price growth, but excessive demand will likely cause prices to continue to rise.

A bar graph showing the annual change in home sale prices for various counties in Western Washington

DAYS ON MARKET

❱ The market in early 2021 continued to show far more demand than supply, which pushed the average time it took to sell a home down 25 days compared to a year ago. It took 2 fewer days to sell a home than it did in the final quarter of 2020.

❱ Snohomish and Thurston counties were the tightest markets in Western Washington, with homes taking an average of only 15 days to sell. The greatest drop in market time was in San Juan County, where it took 52 fewer days to sell a home than it did a year ago.

❱ Across the region, it took an average of only 29 days to sell a home in the quarter. All counties saw market time decrease from the first quarter of 2020.

❱ Very significant demand, in concert with woefully low levels of supply, continues to make the region’s housing market very competitive. This will continue to be a frustration for buyers.

A bar graph showing the average days on market for homes in various counties in Western Washington

CONCLUSIONS

A speedometer graph indicating a seller's market in Western Washington

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.

Demand is very strong and, even in the face of rising mortgage rates, buyers are still out in force. With supply still lagging significantly, it staunchly remains a seller’s market. As such, I am moving the needle even further in their favor.

As I mentioned in last quarter’s Gardner Report, 2021 will likely see more homeowners make the choice to sell and move if they’re allowed to continue working remotely. On the one hand, this is good for buyers because it means more listings to choose from. However, if those sellers move away from the more expensive core markets into areas where housing is cheaper, it could lead to increased competition and affordability issues for the local buyers in those markets.

ABOUT MATTHEW GARDNER

Matthew Gardner - Chief Economist for Windermere Real Estate

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 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

Gig Harbor Real Estate • Lakewood Real Estate • Olympia Real Estate • Puyallup Real Estate • Real Estate News • Tacoma Real Estate • May 13, 2021

5 Things You Need to Know About Pierce County’s Spring 2021 Real Estate Market

by Mark Bergman

Navigating the real estate market this spring is undoubtedly a challenge whether you are a buyer or a seller. Things are changing fast, and as always, my office updates me several times each month on the latest local real estate trends via classes and office hours. We are equipped with valuable information to help you through each part of the process, whether you are selling your home or buying a home.

There is a lot of the information out there about the Pierce County market, and it can become overwhelming, fast. Here are 5 things you need to know about Pierce County’s Spring 2021 real estate market:

1. We’re not in a housing bubble.

We’ve heard a lot of rumors lately about whether or not we’re in a housing bubble. Pierce County’s current sales volume and rate of price escalation hasn’t been seen since 2006 (and we know what happened right after 2006!). But things are a lot different this time around.

There is so much pressure and demand on the market right now, and high demand for homes and a low supply is resulting in price appreciation. Many people are saying that because housing prices are going up so fast there must be a bubble, but just because there is not enough supply does not mean there is a bubble.

Back in 2006, there were too many loose lending practices; there are much more responsible lending standards today. This means that today, it’s harder to get a mortgage loan and buy a house in the first place. And back in ~2006, people were also making very speculative real estate investments.

Here’s another example: During the first quarter of 2006 there were 4,100 active single-family home listings in Pierce County. And during the first quarter of 2021, there were 371 active single-family home listings in Pierce County. That means there are 11x fewer homes for sale in Pierce County right now than there were in 2006. That is a huge difference, and the demand from buyers is very real right now.

2. There are actually more listings in Pierce County this year than there were last year.

It might seem like there are significantly fewer homes coming on the market this year, but we actually have MORE listings this year. It’s not even necessarily that we have low inventory, we just have uniquely strong demand from buyers in Pierce County and they are buying homes quickly!

Economists and regional professionals agree: This inventory issue is NOT going away anytime soon.

3. You might be able to still get a deal in this hot market.

There are still some “deals” to be had in this competitive market, but of course this depends how you define a deal. With so many homes receiving multiple offers and going for over list price, finding a home with less competition may be where your “bargain” awaits.

Market times in Pierce County are in the single digits right now, meaning that most homes close to the median home price are selling in under 10 days. If you’re selling and your home is near the median home price and it is still on the market after 10 days, something is not right.

Likewise, buyers may find that properties that have not been marketed properly (perhaps meaning fewer people saw the property, or the property was not showcased well) present an opportunity. We recommend you work with a real estate professional who is an expert in the neighborhood you’re looking in; they may even be able to help you find a property that is not yet for sale.

4. Even in this market, sellers are still leaving money on the table.

Sellers maintain a strong selling position, but we still want to help you maximize your investment when you go to sell your home. We are seeing examples of clients not being represented properly by their listing agents on a routine basis. For sellers, this can lead to leaving tens or even hundreds of thousands of dollars on the table. You need to make sure you are being represented by an experienced real estate professional.

5. Buyers still have equity to gain by buying a home in Pierce County sooner than later.

From 2020 to 2021, Pierce County’s median home price went up 16.5%. And just in the last month alone (March 2021 to April 2021), the median home price in Pierce County went up by 5.95%.

The market is difficult and competitive, and these trends will continue. If the time is right for you, it’s worth trying to buy a home. With that being said, this is NOT a market you should wade into without trained professional help. You need to be prepared, and your realtor will be able to advise you on exactly what to do.

This post originally appeared on the windermerepc.com blog

Federal Way Real Estate • May 4, 2021

Northwest Tri-Level with 4 Bedrooms, 3 Baths, & Gorgeous Park-Like Yard in Federal Way

by Mark Bergman

Quintessential Pacific Northwest beauty is yours to enjoy day in and day out with this 2,320-square-foot residence in Federal Way. This Northwest Tri-Level is on the market for the first time in 34 years, and this home is absolutely surrounded by established greenery and gorgeous landscaping. This home’s generous layout promises versatility and room to grow—in addition to 4 bedrooms and 3 baths, inviting living spaces and a “secret” space with 600 square feet of storage are all yours to transform. Additional highlights include a 40-year roof that was installed in 2007, and Therma-Tru front and back doors. Located at 32703 30th Ave SW Federal Way, WA 98023 and just minutes to grocery shopping, eateries, parks, Interstate-5 and more, this Federal Way home is listed for $465,000.

The formal living room awaits as soon as you step in through the front door, and this sundrenched space shows off vaulted ceilings, recessed lighting, and a Valor gas fireplace framed by classic brick design. Move right in and begin to infuse this space with your own unique style sensibilities—this lovingly maintained haven offers a blank canvas to transform!

From here the layout flows right into a dining area and the kitchen. The kitchen showcases a cohesive, timeless aesthetic where sleek, modern appliances rest alongside handsome cabinetry and eye-catching details like windowed cabinet doors and an eye-catching backsplash. Every detail has been carefully considered here—there are even details like soft-close doors and under cabinet LED lighting in the mix!

Head upstairs to find a generous landing that leads to this home’s 4 flexible bedrooms, including the extra-spacious master suite. On the lower level, a family room, den, half bath, and laundry area are all included as well. One of this home’s major perks is all of the potential it offers thanks to its sprawling layout. You have room for a home office (or 2!), a fitness center, a hobby space, a play area, and more, and each dynamic space is ready to be reimagined to meet your one-of-a-kind vision of “home”! There’s even 600 square feet of storage in a “secret space,” promising even more opportunity for all that life brings your way!

This property’s outdoor amenities expand your living space even more, and mature greenery promises privacy and a wonderful sense of seclusion. A large composite deck and adjacent patio offer summertime entertaining perfection—there’s more than enough room for a comfy outdoor dining set and lounge chairs so you can host a crowd with ease for weekend barbecues and sunny parties whenever the weather warms up! If you’ve been dreaming of having a garden to put your green thumb to work in, this property offers a storybook oasis to tend to and cultivate as well. Plus, an indoor/outdoor kennel and RV parking are included for your convenience.

Living in Federal Way

At 32703 30th Ave SW Federal Way, WA 98023, city convenience and outdoor opportunities are easily within reach! Schools, shopping, dining, local services and more are just minutes away; when you need to run errands, places like Safeway, Fred Meyer, CVS, the post office, and several eateries (like Domino’s, Starbucks, KFC, Papa Murphy’s, Dairy Queen, Puerto Vallarta, and much more!) are only a 3-minute drive from home. Even more variety is not far beyond—for example, The Commons at Federal Way (a popular shopping destination) is a short 7-minute drive away. And those who commute are sure to appreciate being just 10 minutes from Interstate-5. Getting plenty of outdoor time from this Federal Way location is easy as well. Twin Lakes Golf & Country Club is a quick 2-minute drive away, and the 461-acre Dash Point State Park is only 4 minutes from home! Here you can go camping, biking, hiking, explore beaches, and more—incredible outdoors adventure is practically in your backyard.

Interested in learning more? Click here to view the full listing! You can contact REALTOR® Mark Bergman online here or give him a call/text at (253) 297-5520.

Olympia Real Estate • March 16, 2021

Lakeside Living Awaits in Olympia! Discover this Move-in Ready 1-Bedroom, 1-Bath Condo on Summit Lake

by Mark Bergman

Nestled in a tranquil setting and surrounded by natural beauty, this 932-square-foot condo offers all of the benefits of lakeside living! This 1-bedroom, 1-bath condo is situated in a 4-unit development, and it’s the perfect spot for a getaway or year-round living. And just wait until you see the private covered wrap-around deck—lounge out here in the fresh air with dreamy views all summer long! Located at 505 Summit Lake Shore Rd NW, Unit D Olympia, WA 98502, this charming condo is listed for $278,000.

This Olympia condo retreat offers a unique opportunity—enjoy the perks of a waterfront property, yet embrace the low-maintenance lifestyle that this home affords. Here you’re tucked away amid tall evergreens, and the expansive lawn stretches out toward the water’s edge. A newer dock awaits, and there is even a community storage boathouse on the water for everyone’s water toys! The Summit Lake Public Boat Ramp is only a couple blocks away, making it easy to launch your boat for days spent exploring the lake, waterskiing, fishing and more. Swimming, kayaking, and paddle boarding are also popular activities here, and you can enjoy vacation-worthy excursions anytime you’d like!

Time spent in the comfort of home is just as enjoyable thanks to beautifully maintained spaces that offer views of nature at every turn. The spacious, light-filled kitchen is a standout highlight, and its large layout is sure to especially be appreciated by those who love to whip up homemade meals and bake delicious treats. Large counters offer abundant room for meal prep, while generous crisp white cabinets make it easy to keep all of your kitchen essentials organized and within reach.

The kitchen overlooks the living room, and the layout effortlessly flows into this inviting haven with a view. A wood fireplace is ready for cozy winter nights snuggled up on the couch, while French doors offer views of the lake and direct access to the covered wrap-around deck. This picturesque perch is ready for entertaining guests, quiet relaxation, and summertime parties where all of your friends are invited. After spending the day out on the lake, kick back and relax in style!

When it’s time to unwind, this condo’s large bedroom provides a calm oasis to rest and rejuvenate in. Plush carpets and pristine white trim and walls offer you a blank canvas to infuse with your own unique style, while built-in closet space makes it easy to move in and start to unpack right away. The bathroom is just as neat and sparkling clean, and there’s also a washer/dryer room with ample storage for home essentials.

Living on Summit Lake in Olympia

At 505 Summit Lake Shore Rd NW, Unit D Olympia, WA 98502, you’re tucked away in a natural setting surrounded by nature. It’s the ideal getaway destination, but it’s also perfect for year-round living! Washington State Route 8 is only 4 minutes away, and you can take this highway all the way into the heart of Olympia. Capital Mall and all of its surrounding conveniences are only about 15 minutes away, and you can go shopping at places like Safeway, Target, Trader Joe’s, Haggen, and much more.

Interested in learning more? Click here to view the full listing! You can contact REALTOR® Mark Bergman online here or give him a call/text at (253) 297-5520.

For Your Home • February 12, 2021

Preparing your Home for Winter Weather

by Mark Bergman

Winter is a magical season to spend at home. We all want to be able to enjoy the shorter days and longer nights from the comfort of our homes while we watch the season change.

To truly enjoy this winter at home with peace of mind, you’ll want to complete a home maintenance checklist to prevent unexpected costs, ensure your family’s safety and warmth, and keep your home in the best shape for the winter season ahead.

1. Weatherproof Windows & Doors

One of the best preparatory measures you can take to keep the cold from infiltrating your home is to weatherproof your windows and doors. Any leaks or cracks could lead to a chilly household and increased heating costs. Either weatherstripping or caulking will do the trick for minor leakage issues, but for any severe problems you may want to consider a replacement.

2. Protect Your Pipes from Freezing

Burst pipes can be disastrous regardless of the season, but winter temperatures pose a greater risk than any other time of the year. Be sure to wrap interior pipes to provide them some insulation against the change in temperature. You’ll want to bring all hoses inside but remember to turn off your exterior water source before you do.

3. Prepare for a Winter Storm

Being fully prepared for the winter ahead includes completing both preventative home maintenance and disaster preparedness tasks. Keep a supply of flashlights and batteries handy in case a power outage should occur. If you have a fireplace, stock up on firewood so you’ll have plenty of fuel for your heat source. It’s best for your family to put together an emergency kit and evacuation plan so you’re prepared for any local weather emergencies.

4. Chimney Sweep and Fireplace Maintenance

We become more reliant on fireplaces, wood burning stoves, and chimneys to heat our homes during the winter. Accordingly, it’s crucial to prepare for the uptick in their usage. Clear out your air vents before your daily fires begin. When your fireplace is not in use, be sure to close the damper to save energy. Clogged chimneys can lead to house fires and carbon monoxide poisoning. Investing in a chimney sweep can save you money in the long run, while avoiding health scares.

5. Clean Out Your Gutters

After all the leaves, pinecones, pine needles, and other autumnal debris have fallen, it’s best to clean out your gutters in preparation for winter. By keeping your gutters clean you’ll avoid gutter damage from melted snow draining improperly. Make sure your downspouts are pointing away from your home’s foundation to prevent basement leaks and flooding.

6. Heating System Maintenance

Keeping up on your heating system’s efficiency is an integral part of winter home maintenance. If you use a furnace, be sure to clean out your air filters and ducts, making replacements as needed. Covering your HVAC system can help to prevent damage from any debris or moisture getting in. To protect against heat loss, seal your ducts with mastic tape or foil tape.

7. Reverse Your Ceiling Fans

If you have ceilings fans in your home, there is a handy trick you can use to improve your home’s heating efficiency. By reversing the direction of your ceiling fan—running the blades in a clockwise direction—you’ll create a slight updraft, forcing warm air near the ceiling downward.

8. Bring Your Plants Inside

The winter season usually spells trouble for your potted plants. However, there are methods to keep them alive indoors through the winter months. You’ll want to provide continual air circulation, so keep a fan blowing in the direction of the plants. It’s best to mirror the conditions the plants will face outdoors, so you can afford to keep watering to a minimum. Since it is a harsher season, keep a close eye on your plants as the winter progresses.

After your checklist is completely crossed off, you’ll be able to kick back, relax, and enjoy your winter at home in comfort knowing your home is primed and ready for the winter season ahead.

This post originally appeared on the Windermere.com Blog

Community News • February 4, 2021

Ideas & Inspiration for Staying “Social & Distanced” During Winter in Pierce County

by Mark Bergman

If you’re familiar with our winters here in the Pacific Northwest, you know that the weather can be pretty gray and drizzly! And, as a result of safety measures surrounding the COVID-19 pandemic, we’ve had to find new, creative ways to stay social while keeping our distance to make sure our loved ones stay safe.

Here are just a few ideas from the Windermere Professional Partners we have for staying social and distanced this winter right here in Pierce County:

Pierce County Dining with the Best Outdoor Options

Dining out is one of the biggest things that people are missing in recent months. And of course, if you’re going to dine outside your home, we strongly recommend following local safety guidelines. As we’ve seen in the past year or so, rules and restrictions surrounding dining can change fast. Information found online about hours of operation or seating availability may not be accurate (restaurants are doing their best to keep up!), so it’s always a good idea to call in advance to see if a place will be open and able to accommodate your party. Another tip is to double check the social media profiles of your favorite eateries—many local restaurants and bars have been great about posting daily updates on Facebook and Instagram about their hours of operation and available services.

All that being said, Sue Kidd (well-known local restaurant critic and food editor for The News Tribune from 2004 to 2019) has a fantastic resource titled “60+ Restaurants With Covered, Heated Outdoor Dining in the Tacoma Area” on her website DinePierceCounty.com. You’ll find helpful links to menus, and perhaps most importantly, a list of the outdoor features you can expect at each restaurant (such as whether or not an area is heated, covered, and if there are any other special features).

We asked our agents for tips on the best places for outdoor dining during winter in Pierce County, and Adriatic at Oakbrook in Lakewood was a favorite spot to dine while distanced. Adriatic has a great covered outdoor space with delicious food, and we hear it’s rarely busy. You can play a round of golf (an excellent social + distanced activity, we might add!) and enjoy a cocktail and dinner after. Win, win!

Farm 12 in Puyallup is another spot where you can enjoy an expansive patio in a cozy setting, and they even have “igloos” set up for the winter. Farm 12 is especially incredible because it is run through Step by Step, a nonprofit that helps mothers. (We interviewed Step by Step’s CEO, Krista Linden, in our Meet the Neighbors series!)

And of course, you can always support local restaurants by ordering takeout and delivery.

Staying Cozy with Our Favorite Fire Pits in Pierce County

When the temperature drops, finding an outdoor spot with a firepit is the perfect way to stay cozy and spend social + distance time outside this winter. If you have the space at home to safely build a fire pit (if you don’t already have one), you can build a roaring fire to stay warm alongside on chilly nights right in your backyard (and you can roast hot dogs and marshmallows to enjoy with people from your household!). Setting up a fire table on a deck or patio is another great way to get some warmth when you’re spending time outdoors.

Camping is another fun, memorable way to spend time in the great outdoors, and you’ll find fire pits at many campsites in Pierce County. If you’re not afraid of bundling up a bit, winters in the Puget Sound area are often mild enough that camping isn’t out of the question when it comes to enjoying a mini vacation. And, one of the best things about living in Pierce County is how we’re surrounded by natural beauty. We really don’t have to go far when we want to set up camp for the weekend!

Nestled right on the shores of the Puget Sound, the 237-acre Penrose Point State Park in Lakebay on the Key Peninsula offers lots of outdoor activities, including camping (with fire pits that’ll help you stay warm), hiking and mountain biking trails, amenities for fire circles, and much more to enjoy during the winter.

Another excellent camping option awaits at Dash Point State Park. This 383-acre park in Federal Way is actually technically in King County, but it is practically in our backyard here in Pierce County (it’s just minutes from the Browns Point neighborhood in Northeast Tacoma) and it sure makes camping easy. In addition to camping, winter months offer the potential for exploring trails via hiking and biking, kayaking, beach exploration, and more.

Of course, Mount Rainier National Park is also located in Pierce County. This area can be trickier to navigate during the winter depending on where you want to go, but there are hundreds of campsites to enjoy, and even places where you can buy firewood in the park.

And a quick reminder: you must check with local city guidelines and/or campground personnel about local fire requirements and potential burn bans.

On another note, there are several restaurants/bars in Pierce County that have great outdoor areas with fire tables (and we imagine many eateries will be adding these to help customers stay cozy during our colder months!).

We also asked our agents what a few of their favorite local spots are for outdoor dining right now. Cooper’s Food & Drink in Tacoma was a definite favorite, and right now you can find spacious outdoor seating that’s covered and heated, plus great food, cocktails, and daily happy hour specials. (Do note that this is part of the bar, so it’s only 21+).

The Y Sports BAR & GRILL in Spanaway has a huge fire pit and propane heaters, The Social Bar & Grill in Tacoma has several fire tables and propane heaters, and Spud’s Pizza Parlor in Tacoma also has a fun outdoor area with fires to gather around. (Keep in mind this isn’t an exhaustive list—there are most definitely more!)

Pierce County Parks with Picnic Shelters

We’re known for our rainy days here in the Pacific Northwest, and sometimes it seems like the weather can go from sunny to drizzly within seconds. This means if you’re planning a picnic, be sure to bring an umbrella, or just plan for rain and find a covered picnic shelter at a public park!

Many picnic shelters that are usually available to rent are not currently accepting reservations due to COVID-19 restrictions. However, this means that you’ll find many of them still just open as usual for public use on a first come, first served basis.

Here are just a few larger parks in Pierce County with covered picnic tables:

According to AllTrails.com, Wapato Park in Tacoma has 3 covered picnic shelters available
Spanaway Lake Park has 5 covered picnic shelters
Bradley Lake in Puyallup has a covered picnic shelter
Gig Harbor Viewpoint has a picnic shelter (4 tables under the shelter + 12 outside the shelter)
Wildwood Park in Puyallup has 12 covered picnic shelters
DeCoursey Park in Puyallup has a picnic shelter
Veterans Park in Puyallup has picnic shelters

And you’ll find many other parks with covered shelters in Tacoma here.

More of Our Favorite Outdoor Adventures in Pierce County

If you need more inspiration for outdoor activities in Pierce County where you can stay social + distanced, our blog is brimming with ideas for how to get out and about in Pierce County. We’ve linked several of our favorite blog posts below, and as you check them out, just keep in mind that many of the places we mention may be impacted by COVID-19 restrictions, so just be sure to plan in advance so things are open when you arrive!

This post originally appeared on the Windermere Professional Partners Blog

The Gardner Report • January 28, 2021

Q4 2020 Western Washington Real Estate Market Update

by Mark Bergman

REGIONAL ECONOMIC OVERVIEW

After the COVID-19-induced declines, employment levels in Western Washington continue to rebuild. Interestingly, the state re-benchmarked employment numbers, which showed that the region lost fewer jobs than originally reported. That said, regional employment is still 133,000 jobs lower than during the 2020 peak in February. The return of jobs will continue, but much depends on new COVID-19 infection rates and when the Governor can reopen sections of the economy that are still shut down. Unemployment levels also continue to improve. At the end of the quarter, the unemployment rate was a very respectable 5.5%, down from the peak rate of 16.6% in April. The rate varies across Western Washington, with a low of 4.3% in King County and a high of 9.6% in Grays Harbor County. My current forecast calls for employment levels to continue to improve as we move through the spring. More robust growth won’t happen until a vaccine becomes widely distributed, which is unlikely to happen before the summer.

WESTERN WASHINGTON HOME SALES

❱ Sales continued to impress, with 23,357 transactions in the quarter. This was an increase of 26.6% from the same period in 2019, but 8.3% lower than in the third quarter of last year, likely due to seasonality.

❱ Listing activity remained very low, even given seasonality. Total available inventory was 37.3% lower than a year ago and 31.2% lower than in the third quarter of 2020.

❱ Sales rose in all counties, with San Juan County seeing the greatest increase. This makes me wonder if buyers are actively looking in more remote markets given ongoing COVID-19 related concerns.

❱ Pending sales—a good gauge of future closings—were 25% higher than a year ago but down 31% compared to the third quarter of 2020. This is unsurprising, given limited inventory and seasonal factors.

WESTERN WASHINGTON HOME PRICES

❱ Home price growth in Western Washington continued the trend of above-average appreciation. Prices were up 17.4% compared to a year ago, with an average sale price of $617,475.

❱ Year-over year price growth was strongest in Lewis and Grays Harbor counties. Home prices declined in San Juan County which is notoriously volatile because of its small size.

❱ It is interesting to note that home prices were only 1% higher than third quarter of 2020. Even as mortgage rates continued to drop during the quarter, price growth slowed, and we may well be hitting an affordability ceiling in some markets.

❱ Mortgage rates will stay competitive as we move through 2021, but I expect to see price growth moderate as we run into affordability issues, especially in the more expensive counties.

DAYS ON MARKET

❱ 2020 ended with a flourish as the average number of days it took to sell a home in the final quarter dropped by a very significant 16 days compared to a year ago.

❱ Snohomish County was again the tightest market in Western Washington, with homes taking an average of only 15 days to sell. The only county that saw the length of time it took to sell a home rise compared to the same period a year ago was small Jefferson County, but it was only an increase of four days.

❱ Across the region, it took an average of 31 days to sell a home in the quarter. It is also worth noting that, even as we entered the winter months, it took an average of five fewer days to sell a home than in the third quarter of last year.

❱ The takeaway here is that demand clearly remains strong, and competition for the few homes available to buy continues to push days on market lower.

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.

Demand has clearly not been impacted by COVID-19, mortgage rates are still very favorable, and limited supply is causing the region’s housing market to remain incredibly active. Because of these conditions, I am moving the needle even further in favor of sellers.

2021 is likely to lead more homeowners to choose to move if they can work from home, which will continue to drive sales growth and should also lead to more inventory. That said, affordability concerns in markets close to Western Washington’s job centers, in combination with modestly rising mortgage rates, should slow the rapid home price appreciation we have seen for several years. I, for one, think that is a good thing.

ABOUT MATTHEW GARDNER

This post originally appeared on the Windermere.com Blog

King & Snohomish County Real Estate • January 19, 2021

King & Snohomish County Real Estate Update – January 2021

by Mark Bergman

The end of 2020 marked a most unusual year, and the real estate market was no exception. While homes sales usually take a holiday during December, this year saw the continuation of an exceptionally strong and competitive market. New listings, closed sales and home prices all went up. With supply nowhere close to meeting demand, the strong market is expected to extend into 2021.

Inventory continues to be the biggest challenge for buyers. While King County had a 62% increase in new listings compared to a year ago, homes were snapped up quickly, leaving the county with just over two weeks of available inventory at the end of the month. The supply of single-family homes was down 35% year-over-year. Buyers considering a condo had far more choices. Inventory was up 45%, but at about five weeks of available units the condo market is still significantly short of the four month supply that is considered balanced. Inventory in Snohomish County was even more strained, with the month end showing only a one-week supply of homes. At the end of December there were only 373 homes on the market in all of Snohomish County, a 63% drop from a year ago. With inventory this tight, it’s more important than ever for buyers to work with their agent on a strategic plan for getting the home they want.

Low inventory and high demand continued to push prices upward. The median single-family home price in King County was up 10% over a year ago to $740,000. Price increases varied significantly by area. Seattle home prices were up 10%. The traditionally more affordable area of Southwest King County, which includes Federal Way and Burien, saw prices jump 15%. And on the Eastside, the most expensive market in King County, home prices soared 17% — the largest increase of any area in the county. Home prices in Snohomish County rose 12% to $573,495, just shy of its all-time high of $575,000.

With 2021 ushering in a new record low for interest rates, and inventory at its tightest in recent memory, 2021 is expected to remain a very competitive market.

Windermere Chief Economist Matthew Gardner’s prediction: “As we move into 2021, I expect continued strong demand from buyers, but unfortunately, the likelihood that there will be any significant increase in inventory is slim. As a result, I believe prices will continue to rise, which is good news for sellers, but raises concerns about affordability. This, combined with modestly rising mortgage rates, could end up taking some steam out of the market but overall, I expect housing to continue being a very bright spot in the Puget Sound economy.”

The charts below provide a brief overview of market activity. If you are interested in more information, every Monday Windermere Chief Economist Matthew Gardner provides an update regarding the impact of COVID-19 on the US economy and housing market. You can get Matthew’s latest update here.

Is Pierce County in a Housing Bubble? Not This Time (& Here’s Why)

Financing Differences Between Now & Then

The Millennial Generation = The Largest Group of Home Buyers Today

Investors Are Feeling Confident

How Much Has COVID-19 Affected the Demand for Housing?

There’s a Housing Shortage

Matthew Gardner on Post-Pandemic Recovery

The Gardner Report – Q1 2021

WESTERN WASHINGTON HOME SALES

WESTERN WASHINGTON HOME PRICES

DAYS ON MARKET

5 Things You Need to Know About Pierce County’s Spring 2021 Real Estate Market

Northwest Tri-Level with 4 Bedrooms, 3 Baths, & Gorgeous Park-Like Yard in Federal Way

Lakeside Living Awaits in Olympia! Discover this Move-in Ready 1-Bedroom, 1-Bath Condo on Summit Lake

Preparing your Home for Winter Weather

1. Weatherproof Windows & Doors

2. Protect Your Pipes from Freezing

3. Prepare for a Winter Storm

4. Chimney Sweep and Fireplace Maintenance

5. Clean Out Your Gutters

6. Heating System Maintenance

7. Reverse Your Ceiling Fans

8. Bring Your Plants Inside

Ideas & Inspiration for Staying “Social & Distanced” During Winter in Pierce County

Pierce County Dining with the Best Outdoor Options

Staying Cozy with Our Favorite Fire Pits in Pierce County

Pierce County Parks with Picnic Shelters

More of Our Favorite Outdoor Adventures in Pierce County

Q4 2020 Western Washington Real Estate Market Update

WESTERN WASHINGTON HOME SALES

WESTERN WASHINGTON HOME PRICES

DAYS ON MARKET

King & Snohomish County Real Estate Update – January 2021

EASTSIDE

KING COUNTY

SEATTLE

SNOHOMISH COUNTY