June 2019 Newsletter

Market Report

The Spring Market is thriving like the flowers (and weeds) in our gardens and lawns... the compostable materials of city/corporate/national/international politics and international politics and trade concerns (which slowed the market and trade concerns (which slowed down the market in May to November 2018) are now clear, and we're seeing low levels of inventory, quick market times, and steady growth in housing values.

Here are some quick stats:

The market is feeling more like what we've become used to since 2012-low level of inventory, quick sales and growing values. Though, keep in mind while this feels normal... actual historical normal & balanced market typically has 3-5 months of inventory, 14-21 days on the market, & price growth of 3-5% annually - conditions where both buyers and sellers are confident and therefore more willing and able to make a move.

Reasons for Confidence:

Our population is still growing in the Puget Sound faster than we are building housing.  Washington issued more than 12,000 new drivers licenses to people from out of state in April, which is down by about 9% from last year however still represents an annual inflow of more than 170k people in the past 12 months with about 60% residing in the King/Sno/Pierce counties. Better yet, our unemployment regionally is very low and wages are growing enabling more people to afford their first and next homes, which helps keep prices growing.

Reasons for Concern:

We can always find reasons for concern... the key is what is real and what is imagined.  Here's what a group of people planning to buy a home in the next year said when asked "When will the next recession start?:

This is in line with surveys of economics when they predict recession, when they are asked for more detail here is a great example of what a majority of economists are saying: "the US economy is weakening... however, with wages growing at respectable pace, and job growth remaining healthy... we should see enough consumption demand to keep the economy moving forward with slower growth but no recession."
Also, keep in mind, most economists expect the next recession to be much smaller than in 2008, potentially more like 2001 or 1991.  Here's how home prices were effected by the last 5 recessions:

Conclusion:

It's a supply and demand thing... don't worry about a recession. We know it will come as all cycles do... but we can't control when it arrives, and we won't know how big or small it may be. What we do know is for more than 20 years, we've seen 150k+ people moving to Washington state each year, and our unemployment even during recessions is far lower than most of the nation... so we know home prices in the Puget Sound will continue to stay healthy due to our consistent demand. We hope this big picture give you the confidence in our market and your ability to make the move you need or want to make for a home which best fits your needs whether that's remodeling your current home, or looking for something bigger, smaller or in a different neighborhood.

Listing Highlight

Spectacular Emerald Hills home boasting 180' Puget Sound views featuring a chef's kitchen w/ breakfast nook, breakfast nook, bright formal dining & living areas overlooking a spacious deck and a private master suite all with superb views.  In addition, you'll find large bedrooms, additional baths and a lower level family room, private bed & bath ideal for an ADU/MIL.  Many practical features including 2 car garage on main level, and over-sized 4 car garage on the lower level with plenty of storage throughout.

Housing Sentiment Strengthens Ahead of Spring Buying Season

The Fannie Mae Home Purchase Sentiment Index (HPSI) increased by 5.5 points in March to 89.8 - a near-record high.

Easy updates to boost your curb appeal

When getting ready to list your home, it can be tempting to want to finish all of the projects you always wanted to do.  That isn't always worth the time and money you'll invest.  Here are a few things you can do that gives you a big return on your investment.

•     Yard clean up: This could include trimming trees, planting flowers, mowing lawns.  Anything that makes the yard look well kept and cared for.
•     Paint: Do any touch up paint, add some color to the front door, freshen up the trim, anything that will brighten up the home and make it look clean and inviting.
•     Decks & stairs: Make sure all the exterior elements such as stairs and decks are sound, clean, and safe.  Pressure wash them or paint as necessary.  Perform any repairs and     make sure they meet housing code.
•     Roof: It's a good idea to clean the gutters and roof.  Remove any moss/mold buildup and perform any repairs necessary.
•     Wash windows: If our eyes are the windows into the soul, a homes windows literally are the window into the heart of the home.  Make sure they're clean so that potential     buyers can fully appreciate what your home has to offer

Jamie and Sarah Reece

Enid Daniel

Anne-Lise Hurn

Jerry Linnane

Cassidy Backus

Maggie Reece

Seattle Housing Market: then and Now: What has 20 years done?

You Ask We Answer!

Question: Why add Real Estate to My Investment Portfolio?

Answer:

• Income which often meets or exceeds inflation while not effecting the Equity Growth of the asset.
• Leverage which enables substantial cash on cash return in the short or long term.
• Long and Short term income & capital gain Tax Benefits.
• Low Risk over the long term.

Coming Up in June and July:

• June 1: Reece Homes Girls on the Run
• June 14-16: Edmonds Art Festival
• June 16: Father's Day
• July 4: Independence Day!
• July 20: Reece Homes Movie Night CAP Event
• July 27: Jamie Participates in Ironman!