Refuge Properties North Idaho

Month: January 2018

  • Are we headed for a bubble? Why homeownership is still a good idea.

    January 31, 2018

    Speaking of the bad news that frequently leads our newsfeeds, it seems that quite a few folks are prognosticating another housing bubble in our area. And it’s easy to understand why. We’ve been having rapid growth for several years now in both the housing and financial markets yet, the dark days of 2008 are still fresh in our memories. Too many people were caught “underwater” on their homes 10 years ago. Sadly, some still haven’t recovered from the hit they may have taken from a short sale or a foreclosure. None of us want that to happen again.

    Why is the market crazy?

    While no one, not even Punxsutawney Phil, that grand prognosticator of prognosticators, can know for certain what lies ahead, there are many reasons not to fear an impending “winter storm” in the local housing market.

    • Increased Population – The people just keep moving here! Whether its Amazon, our beautiful scenery, or a love of too much rain, the Seattle area was the fastest growing big city in America last year, adding more than 1,000 people per week. And, despite the fact that Amazon is looking to open a second headquarters somewhere else, they’re still hiring here along with several other companies in our area. And these are good paying jobs. This fact, along with a lack of inventory (December had a record low 1.12 months of inventory; a balanced market being 4-6 months) means housing prices continue to skyrocket (11% year over year; nearly twice the national average).
    • Low Inventory – Part of the reason for the low inventory does cause one to pause. People aren’t selling their homes because then they’ll be thrust into the wrong side of a seller’s market themselves. But this is not a major concern. Despite the record low inventory in December, closed sales remained virtually unchanged.
    • Lack of New Construction – The other part of this low inventory puzzle is new homes. When the market tanked in 2008, not only did many people lose their homes, many companies went out of business, including builders. If you’ve talked to a builder, architect, or anyone else in the building trades recently, you’ll know that business is beyond booming.

    The Good News

    Tighter Mortgage Restrictions

    While there are many other factors which lead me to believe that the real estate market will continue to boom for at least the next 2-3 years, I’ll touch on one more: mortgages. Back in 2008, anyone who could fog a mirror could get a mortgage. Thankfully, one of the silver linings of the mortgage crisis was that lending criteria were significantly tightened. While restrictions have been eased some since new laws were passed, the days of the Wild West Mortgage are behind us (at least for now; people have short memories so check with me in 30 years and my answer will probably be different).

    Homeownership Leads to Increased Net Worth

    So, what does this mean for those of you looking to buy a house but a little concerned you might end up taking a bath a year or two from now? Well, like. I said, no one can predict the future. If, God forbid, we were to have a catastrophic event like 9/11 or war with North Korea, all bets are off. But none of us know what tomorrow holds so I say seize the day! In the end, every decision we make is about risk management. You’re taking a risk when you drive to work every day but it’s worth the reward. Housing is the same way. If you’re currently paying somebody else’s mortgage you are paying quite a bit for “risk mitigation” (and, since rents continue to rise as well, is that such a good plan?). Once you write that monthly rent check, you’ll never see that money again. But owning a home? You’re building equity every month even when prices are stagnant. It’s a forced piggy bank. According to the Federal Reserve’s Survey of Consumer Finances released last September and covering the years 2013-2016, the median net worth of homeowners increased by 15 percent while that of renters fell by 5 percent. In actual dollars this equates to $231,400 for homeowners and $5,200 for renters. That’s 44.5 times greater!

    Should You Buy?

    In short, if you have plans to move out of the area in the next two years and don’t feel like becoming a landlord (a topic for another day), it may be best to continue renting. After all, the cost of selling a home is around 10% so, even in this hot market, you’re not going to gain that back for at least a year. But if you’re planning on sticking around for longer than that, let inflation work for you instead of against you. Not only will you be gaining equity, study after study shows that homeownership has a positive effect on mental and physical health and creates a stronger bond in our communities which leads to better friendships, less crime, and a better society at large. It’s why my mission is to help change the world by creating an ownership society one home at a time!

  • Why I Am a Real Estate Agent: George Bailey & Being the Change

    January 19, 2018

    I’ve been in sales most of my adult life. I’d argue we all are to one extent or another. After all, if you’ve ever asked someone out on a date or even just befriended someone, you likely put your best foot forward, hoping that person would say yes. But selling should never be about us. Sales guru Jeffrey Gitomer has said, “people don’t like to be sold, but they do love to buy.” So then, a good “salesman” should be confident that the product or service he is “selling” is something that will enhance the life of the person buying it. 

    I’ve always believed this on some level and, whether by luck or by choice, I’ve never had to sell anything I didn’t wholeheartedly believe in. But just because I’ve believed in the things I’ve sold before now, be they newspaper or radio advertising, wine accessories, or political candidates, doesn’t mean they were the perfect fit. That’s why, when someone suggested I think about being a real estate agent some years ago, I gave it some thought. It took several months pondering it over, but eventually I took that step, left my job selling radio advertising, and now, instead of selling air, I sell dirt! There are many reasons I’m more passionate about this vocation than any other I’ve had before.

    The number one reason is summed up in one of my personal mantras, “be the change you wish to see in the world.” (No, I didn’t come up with that phrase. No, it wasn’t Gandhi either, although he did say something similar.)  I’ve long believed that we are participants in our own lives. That may sound odd—after all, what else would we be—but we all know people and we’ve probably all been that person at one stage in our lives, who have had life steer their course instead of us steering life. It’s not an all or nothing adage either. None of us is perfect or all powerful, so to a large extent, every day we can improve toward the goal of steering our own lives, but we also all need help. 

    A bit ironically, we actually need someone else to help us steer our lives every day. We all need mentors or guides. That’s what I see myself as, your guide. I’m here to help you with, quite likely, the biggest purchase and/or sale of your life. I also see it as so much more though. My mission statement is “being the change in our world by creating an ownership society one home at a time.” It’s my mission because I believe home ownership is key to steering our own course. It’s certainly not for everyone at every point in their life, but when you own your own home, while there are still some ongoing expenses, you own just a little bit more of your destiny, not being beholden to rent increases or other actions which you have no control over, like the sale of the place you’re renting.

    In the time I’ve been an agent, I’ve sold a number of homes and each transaction has been rewarding in its own way, but perhaps the most rewarding was a home I sold to some first time buyers who desperately needed a house, but affording one wasn’t the easiest thing. It took a while to find something, but eventually we did and to see the happiness that brought their little family was a huge blessing.

    My favorite movie is It’s a Wonderful Life. There are so many fantastic lessons to be learned by watching it, but since becoming a real estate agent, it’s taken on a whole new level. George Bailey, after all, runs a real estate firm of sorts and does it because of his passion to help others above all else. I take that same passion with me with each and every person I help in my business.

    If you’re seeking help in “steering your own course” in the area of home ownership or know someone who is, please, give me a call and let’s find that course together.

  • When should you sell your home?

    January 5, 2018

    The short answer, especially in this hot market, is anytime you want. Over the last year in the greater Seattle market, regardless of month, homes have generally sold in under a month. In fact, it was the rule, more than the exception for a wisely priced home in King County to sell in a week regardless of when it was put on the market. Even during the dreary winter months, when most people would rather be snuggled up by a fire than out looking for their next place to live, homes sold in record time.

    But even though this has been the case and will likely continue to be for some time, there are generally times that are better to sell a house. Again, if you were a buyer, would you rather be driving around during the balmy days of summer or the cold and wet of January?

    According to a study by ATTOM Data Solutions, which was recently completed and covered 14.7 million nationwide home sales during the years 2011 to 2017, May was the best month, to sell. Locally, the best month was June, with sellers enjoying a 4.1% premium over the average.

    This just makes sense. During the sunnier months, there are more people out searching for homes. More people means more offers and more offers means a greater price.

    So, if you’ve been thinking of selling your home, now is the perfect time to start preparing. Even in this hot market, your home needs to be made ready for sale. This means doing an accurate valuation of what it is worth, making any minor repairs that will be beneficial, cleaning up the yard, and cleaning and staging the home to give potential buyers that extra WOW-factor that will make them instantly fall in love and pull out their checkbooks.

    If you’d like a free analysis of what your home could potentially sell for and what should be done to it to achieve that price, please don’t hesitate to give me a call.