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

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

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

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

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.

This post originally appeared on GetTheWReport.com

The Gardner Report • December 23, 2020

The Gardner Forecast for 2021

by Mark Bergman

Every Monday since the start of the pandemic, Windermere’s Chief Economist, Matthew Gardner, has provided insights into the current state of the housing market through his video series “Mondays with Matthew.” Gardner’s latest release represents the last of his videos for 2020, while offering his 2021 forecast in the US housing market.

Throughout 2020, mortgage rates hit historic lows, largely due to the impact COVID-19 had on the housing market. These low rates drove already high demand for housing even higher, and Gardner does not predict mortgage rates will rise significantly in 2021.

His current forecast sees mortgage rates dropping to their lowest rate in the current quarter at 2.83%, and rising to about 3.08% by the fourth quarter of 2021.

As far as home sales for 2021, Gardner is predicting a large increase in home sales (he covers new construction separately). His forecast puts home sales up by 6.9%, a level that hasn’t been seen since 2006.

In conjunction with this, Gardner predicts a rise in housing inventory, as people who can work remotely move farther away from their offices, or those whose homes aren’t conducive to remote work seek out a better living arrangement.

But Gardner also pragmatically points out that a “mass exodus” completely away from urban centers is unlikely, as many workers may find themselves with a flexible blended arrangement of remote work and a few days in the office per week.

In terms of home prices, Gardner predicts they will continue to rise, but slowly. His 2021 prediction caps out at a 4.1% increase, partially because prices have already risen so dramatically this year that it may become an issue of affordability.

With the rising demand for housing inventory, Gardner predicts that new construction starts for single-family homes will rise by a sizeable 16.4%. This is great news for builders, and also for buyers, as increased inventory may help to alleviate the incredible demand the market has been experiencing.

Along with increased starts, Gardner is anticipating an increase of 18.7% in new home sales for 2021—again reaching a level the market hasn’t seen since 2006.

Finally, Gardner touched on the number of homes in forbearance. As of the end of November 2020, 2.76 million homeowners are in forbearance—but that number is down almost 2 million since May 2020, a drop of 42%.

Gardner does predict that foreclosures will rise in 2021, but he cautions that brokers shouldn’t panic. Though there is temptation to compare this situation with the housing bubble collapse of 2008, Gardner predicts that the actual number of foreclosures will be very mild in comparison.

When the pandemic began in March, the housing market overall was in a much healthier place than it was prior to 2008. Additionally, lenders now are more likely to cooperate with homeowners to help them stay in their homes, and homeowners also have the option to sell and get the equity out of their homes if necessary.

While no one can predict the future with complete accuracy, Gardner’s predictions give us a road map to work from as we approach the new year.

Read the full article on Windermere.com.

This post originally appeared on GettheWReport.com

King & Snohomish County Real Estate • December 10, 2020

King & Snohomish County Market Update – December 2020

by Mark Bergman

Nothing about 2020 is normal, and that includes real estate trends. The housing market typically slows significantly during the holiday season, but that is not the case this year. Buyer interest is strong, sales are up, and prices have followed suit.

A recent report ranked our area as the most competitive real estate market in the country, with 71% of homes selling within two weeks. While the number of new listings in November were up compared to a year ago, there just wasn’t enough inventory to meet the current surge in demand.

In King County there were 37% fewer single-family homes on the market – 1,621 homes this November vs. 2,592 a year ago. Inventory in Snohomish County is even more strained. At the end of the month there were just 416 homes for sale as compared to 1,204 a year ago, a 65% drop. Both counties had about a two week supply of homes at the end of November. A four month supply of inventory is considered balanced. Buyers in the market for a condominium in King County had much more options. Condo inventory was up 39% over last year.

The inventory-starved market sent home prices higher. The median single-family home price in King County was up 10% over a year ago to $730,500. Home prices in Snohomish County rose 14% to $566,000. In a survey of homebuyers looking for a home during Covid-19, 82% said they would go over budget to get their ideal home. Record-low interest rates have helped soften the blow of soaring prices a bit. According to Freddie Mac, rates on a 30-year fixed-rate mortgage fell to their lowest level, at 2.71%, for the 14th time this year.

With low inventory and high demand, buyers need to be ready to compete. That means being pre-approved or willing to offer cash, and working with an agent on a plan that includes counter-offers, escalation clauses and other strategies to help win the sale. As many consider working remotely long-term, our home has become more important to us than ever.

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This post originally appeared on GetTheWReport.com

Real Estate News • December 10, 2020

Pre-Fabricated Homes are Gaining Popularity in the Pandemic

by Mark Bergman

Construction of new and modern modular house. Walls made from composite wooden sip panels with styrofoam insulation inside. Building new frame of energy efficient home concept.

Once a somewhat niche market that only appealed to certain kinds of buyers and builders, the market for pre-fabricated homes has seen an increase in popularity during the pandemic. The relative ease of construction, combined with lower costs and greater flexibility, has opened up a new demand for pre-fabricated spaces as homeowners search for solace in the midst of a prolonged era of social distancing.

According to Steve Glenn, CEO of the Santa Monica-based company Plant Prefab, the firm has seen a 50% increase in contracts over last year. This could be partially due to an uptick in buyers looking for more space outside of major cities, but there are several other benefits to pre-fabricated homes as well.

Unlike onsite construction, which is often costly and time-consuming, pre-fabricated construction has added certainty when it comes to the cost and time required to complete construction. Building the components in a factory means construction is not subject to the same external challenges of onsite construction, and factory work also allows workers to social distance more safely, as each worker can remain at their station.

Additionally, pre-fabricated structures can be modified more easily ahead of time, allowing buyers greater control over which features they’d like to see in the final product. Some of the most common requests of late, according to New York’s Resolution: 4 Architecture, include COVID-conscious design features like flexible living spaces, work-from-home spaces and home gyms. Other popular additions include mud rooms and even accessory dwelling units (ADUs) for those who want to add a separate office space or guest space where they can work uninterrupted.

But pre-fabricated homes are not just for the suburbs or plots of land in the countryside. With land in major cities becoming more affordable due to the changing demands of COVID-19, some pre-fabrication firms have also been developing modular and multi-family residences for use in denser urban areas. Pre-fabrication firm FullStack Modular has even developed modular medical units that can be used for the isolation and testing of COVID-19 patients.

With demand for pre-fabricated designs expanding to include modular restaurants and even socially-distant cabins for use in the hospitality industry, the possibilities for pre-fabricated structures are endless.

This article was originally posted on Architectural Digest by Sam Lubell and GettheWReport.com