Real Estate Weekly: March 18, 2022

INSIDE

This Issue CAN’T FIND A HOME? CONSIDER NEW CONSTRUCTION PAGE 5

HOW BIG A BITE OF MONTHLY INCOME SHOULD A MORTGAGE TAKE? PAGE 7

MARCH 18, 2022

INSIDE

TABLE OF CONTENTS

PAGE

5

Can’t Find a Home?

Consider New Construction....................................P5 Q&A

Ask Our Broker.......................................................................P6

How Big a Bite of Monthly Income Should a Mortgage Take?.......................P7

RE-Weekly To advertise in RE-Weekly or other Skagit Publishing publications, Call: 360.416.2180 or Email: ads@skagitads.com ©2022 by Skagit Publishing | All rights reserved.

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March 18, 2022

STAT Real Estate Stat

$350,300 The median price for homes sold in the United States in the month of January 2022.

Source: National Association of Realtors

FEATuREd REALTY:

NORTH PUGET SOUND ASSOCIATION of REALTORS® 525 East College Way, Suite J

Mount Vernon, WA 98273 (360) 416-4902

www.npsar.realtor

18927 CASCAdE RidgE CouRT, MounT VERnon

WHY USE A REALTOR®?

Buying or selling a home can be one of the most exciting, and most stressful things you will ever do. The terminology, the paperwork and the amount of investment you make can seem overwhelming. When you make the decision to use a REALTOR®, you can be sure that they will be looking after your best interests.

The term REALTOR® is a registered trademark, the use of which is earned by your real estate agent or broker through ongoing training and membership in the largest trade organization in the country, The National Association of REALTORS®.

Every member of the National Association of REALTORS® makes a commitment to adhere to a strict Code of Ethics, which is based on professionalism and protection of the public. The Code of Ethics is a promise - as a customer of a REALTOR®, you can expect honest and ethical treatment in all transaction-related matters.

If you want to be sure that you are dealing with a REALTOR® member, visit our website at www.npsar.realtor to see a listing of current local member offices, or look for an office that has earned the distinction of displaying the Source: www.realtor.org REALTOR® logo.

Skagit Tradition Realty LLC 3780 E. College Way Mount Vernon, WA 360-424-0300 www.skagittraditionrealty.com

$950,000

DANYA WOLF (360) 708-8294

Impeccably maintained view home located south of Mount Vernon on 2.52 acres. Large family room with natural gas fireplace off of beautifully designed kitchen with 5 burner gas cook top range; and HanStone Quartz and granite counters. Walk in pantry off of kitchen.

Separate dining room and living room with French doors opening to second level deck with great view. Master bedroom also on main floor features granite vanity and heated and tiled floors; also exterior door to spacious covered deck. Den/office on main floor near entry.

Two bedrooms and full bath on lower level with large bonus room.

French doors lead to patio and 8 x 10 greenhouse. Private setting with blacktop driveway at end of cul-de-sac. Conway or Mount Vernon schools. Incredible 24’ x 32’ shop with tech room space and 1/2 bath plus approximately 31’ x 12’ loft. Covered RV parking.

MLS#1902099

Mission Statement: The Nor th Puget Sound Association of Realtor s advocates for Realtor s and their clients, and promotes the protection of property rights.

March 18, 2022

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Now could be the time to sell a new home and earn a slice of the real estate pie.

Record-low interest rates is renewing interest in the housing market for many people.

“When sellers are interviewing real estate agents to market their homes, their primary focus is usually on the advertising that the agent will offer them,” says Jessica Goodbody of Weichert Realtors.

Let us help you meet your marketing goals by advertising your listings in Real Estate Weekly.

Call 360.416.2180 Today!

H

RealEstate weekly In print and online goskagit.com ads@skagitads.com

t h D o s R a h m t o

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March 18, 2022

Can’t Find a Home?

Consider New Construction

struction homes, with inventory up 34.8% year-over-year ere’s a surprising stat: versus 14.2% for the inventory of existing homes.

New construction So what’s going on? Why are comprised over onethird (34.1%) of single-family more new homes being built? homes for sale in America last And why should prospective December, a rise from 25.4% buyers look closer at purchasone year earlier and the highest ing a fresh home built from the ground up? share recorded, per a recent “Lack of inventory is primarRedfin report. That’s a big deal, ily behind the increase in new as new construction homes construction. There have been have been in short supply for 10 years of under-building many years, which has conin the US since the Great tributed to increased prices for Recession, and now everyone older residences for sale. is trying to play catch-up,” says What’s more, consider that in Tamara Celeste, broker/owner December 2021, there was a of Sweet Life Realty Group in six-month supply of new con- Port St. Lucie, Florida. “Also,

By Erik J. Martin

H

March 18, 2022

in many areas, because of the lack of inventory and the rising price of existing homes, you can build a brand-new home for an amount close to what an existing home might cost you today because you aren’t competing with other buyers who may drive the initial list price higher on an existing home.”

David Munaretto, founder/ CEO of Chicago-headquartered LotNova, says increased builder confidence is also a major factor, resulting in greater levels of inventory.

“In addition, the desire for more room and more flexible space as people increasingly work from home is pushing

this trend,” he says.

New construction homes offer many advantages over resale properties.

“New construction comes with low maintenance costs, including modern plumbing, appliances, and HVAC. Also, similar to a car, they typically come with a warranty, which means customers can buy with confidence knowing the builder will cover the cost of any issues during the warranty period – such as a leaky roof or broken water heater,” notes Andres Mejia, senior home advisor at digital homeownership company Better in New York City.

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Also, with a custom new home yet to be built, you get to choose the design of your home and the finishes, resulting in a personalized residence that matches your needs and preferences.

The drawbacks of opting for a newly built home, however, include the wait time involved if you are building from the ground up. You may need special financing, including a separate lot loan, construction loan, and mortgage loan, or a construction-to-permanent loan that covers the land, construction, and finished home in one loan package.

“If you need to move in

within a month or two and the home is not yet ready, you may have to rent temporarily or find interim shelter,” Celeste cautions.

If you are prepared to purchase a move-in-ready spec home, “the negatives include cookie-cutter home plans and a lack of options as well as a lack of that personal touch,” says Munaretto.

New construction usually costs more than existing homes, as well.

“According to Zillow, 75% of home buyers polled in 2020 preferred a new construction home, but only one in six of those surveyed purchased one.

That translates to 4 million homebuyers who opted out of new construction during their search for a new home, usually because offerings by builders weren’t right for their needs,” Munaretto continues.

Anyone looking to customize a home to their specifications should consider new construction, recommends Mejia.

“If you are also worried about home repairs and want to be in a modern community with the latest features, new construction can be a great option for you,” says Eric Kucharik, a Realtor with Realty One Group Supreme in Philadelphia.

But consider matters carefully before committing to a new construction home.

“Do you get that sinking feeling when interviewing contractors? Are you worried that they are going to take advantage of you and cut corners? You may get that same feeling when interviewing builders. A builder is a contractor who is responsible for everything in your new house, so you need to make sure you are doing business with a trustworthy builder who has a great reputation – otherwise, you might get stuck with a bad or incomplete house,” suggests Kucharik.

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Does It Make Sense to Refinance Now? Question:

Does it make sense to refinance now given that mortgage rates have increased? Haven’t the advantages from refinancing been lost with higher rates?

Answer:

A lot of borrowers did not refinance when rates were lower, perhaps because of a job loss or other issues that would have made a successful new loan application difficult if not impossible. But now we have the advantage of a substantial recovery.

While there were 21.3 million unemployment claims in May 2020, that number fell to 1.675 million in mid-January. Some 19.6 million people are no longer collecting unemployment, a remarkable improvement.

While the jobs market has notably solidified, so have home prices. In December 2021, the typical home sold for $358,000 according to the National Association of Realtors. The same property sold for $274,500 two years earlier, in December 2019.

On average, lucky homeowners saw home values rise by an average of $83,500 in just 24 months.

However, mortgage rates have also risen

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substantially. In January 2021, according to Freddie Mac, mortgage rates averaged 2.74%, the lowest monthly average on record. A year later, rates were .70% higher at 3.44%.

Despite more jobs and lots of additional equity, with higher rates, the number of high-quality refinance candidates fell to 5.9 million according to Black Knight, a mortgage technology and data provider. There’s no doubt that 5.9 million potential refinances is a very big number, but it’s far from the 20 million homeowners who could have likely refinanced at the end of 2020.

The Black Knight estimate assumes that a borrower has a credit score of 760 or above and can cut their mortgage rate by at least .75%. In practice, lenders often refinance in situations where borrowers have lower credit scores and a smaller rate benefit.

Whether refinancing does or does not make sense depends on the ability of the borrower to obtain a material benefit. Such benefits can include a lower monthly cost for principal and interest, the ability to get rid of monthly mortgage insurance payments, or a switch from adjustable

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Q&A

ASK OUR BROKER

By Peter G. Miller

to fixed-rate financing.

While there is much attention paid to mortgage rates, borrowers must also consider the cost of refinancing. Many refinancing offers today highlight low rates, but also include thousands of dollars in additional fees. These fees—which are paid upfront—may mean that a lower rate is not sufficiently attractive to refinance.

The VA program has a good way to evaluate refinancing offers. Look at fees, closing costs, and expenses that must be paid to refinance. If such savings can fully repay refinancing costs in not more than 36 months after closing, then refinancing can be worth considering.

The faster you can recapture your investment, the better. Always ask loan officers about interest rates, the cost to refinance, and how long it will take before you benefit from monthly savings. Get answers in writing for easy comparison, and be sure to shop around.

Email your real estate questions to Mr. Miller at peter@ctwfeatures.com.

March 18, 2022

How Big a Bite of Monthly Income Should a Mortgage Take?

By Marilyn Kennedy Melia

G

etting mortgage pre-approval is a necessary step that allows homebuyers to make a serious offer, but the total loan amount given in pre-approval can be misleading.

Instead, borrowers should “work backward from that number” taking the price of the home, property taxes, and the likely homeowner insurance charges and figuring the monthly payment, argues Charles Chedester of Midwest Family Lending, Iowa.

The monthly payment is, after all, what owners will regularly contend with. And for most buyers, that monthly tab is likely to be significantly higher in 2022, according to stats from the Federal Reserve Bank of Atlanta.

March 18, 2022

Looking at a media-income borrower who buys the median-priced home in his area, the Atlanta Fed finds that by late 2021, mortgage payments rose to 33 percent of total income, up from 29 percent earlier that year.

That’s due to a combination of rising interest rates and home prices. At a certain point, prices can’t outrun income gains, but “I don’t think we’re close to being at this point,” observes Ralph McClaughlin, chief economist for MyKukun.com.

What percentage a mortgage payment, including a monthly amount for taxes and insurance, is optimum is a highly individual matter, says Laurie Goodman of the Urban Institute.

Lenders also size up each applicant individually, says Chedester, considering both the mort-

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gage payment to income as well the amount of all recurring debt, like car payments.

A stable earner, who may also anticipate future income gains, can be making a prudent choice in “stretching” the amount they take on in mortgage, notes Goodman.

For one thing, rent increases are “rampant”, and buyers taking a fixed-rate mortgage lock-in mortgage principal and interest charges, Goodman says. Each borrower should look at all his probable expenses, though, including maintenance on a home to determine their comfort level.

Ask a lender to run different scenarios, suggests Chedester since different mortgage plans can offer slightly different payments.

7

20787 Bulson Rd, stanwood

We look forward to seeing you, in person, at the SICBA Home and Garden Show this year.

Our booth will be located in Building C, space 20.

Friday March 25th, 10-5pm, Saturday March 26th, 10-7pm and Sunday March 27th, 10-4pm wHalEn dRIVE, PoInt RoBERts

$250,000 Magnificent views of Boundary Bay and the mountains! Enjoy the lights of Vancouver BC, only 45 minutes away! Less than 20 miles to Vancouver international Airport. Point Roberts is a quaint community with forests, beaches (close to Maple Beach), and the ocean yet near to all that the big city has to offer. This lot is ready for your dream home; power at the street, water at the street (Point Roberts Water District).

Danya Wolf (360) 708-8294 MLS# 1863417

Please Join us on Johnson Day - April 9th! We will be volunteering along with the Johnson family! This

P.S. Rotary tulip sales are also in April, Danya says stop by.

is a great family, community fundraising event and we are proud to be participating again this year!

See you there!

4619 & 4621 s BEaVER Pond dRIVE, EaglEMont

$99,000

Each Lot is listed at only $99,000 Start your new home on one or both of these private lots in Eaglemont with all utilities in the street, surrounded by greenbelt and wooded area for maximum privacy, wonderful neighborhood with beautiful homes , walking trials. Eaglemont is an 18 hole Championship Public Golf Course! Spend your time relaxing and enjoying life in beautiful Eaglemont nestled in the foothills of the Cascade mountains with awesome views of Mount Baker and an abundance of wildlife!

Once you’re here you’ll know you have found a hidden treasure!

MLS#1880617 4619 S Beaver Pond Dr Elva Hunter (360) 202-3086 MLS#1880578 4621 S Beaver Pond Dr

Patricia Box Office Manager O: (360) 424-0300 C: (360) 941-9186

JoAnn Boudreau (360) 391-0746

Juanita Bunch (360) 941-5530

Carla Fischer (360) 982-0010

2121 MaRkEt stREEt. Mount VERnon

$158,800

$350,000 Beautiful wooded 4.98 acres situated on south side of Snohomish County/Skagit County line. Power is in street.

Solar power is also possible.

Adjacent property to the east of Subject Property is fenced, open field. Zoning allows for one building site. StanwoodCamano School District; and just ten minutes to I-5. Great country living yet convenient for commuting. MLS# Danya Wolf (360) 708-8294 1841822

I’m a seniors Real Estate specialist

Custom build your commercial enterprise: 13,361 square foot commercial tract (two lots) zoned C-2. `Preliminary sketch for 5,280 square foot retail building plus 24 parking spots. Great location near recreation center; major grocery store; hotel; restaurants; offices; health club; house and farm supply stores; gas stations; banks; and I-5. New price reflects Skagit County tax assessment value. MLS# 1848626

Elva Hunter (360) 202-3086

John Hunter (360) 202-3086

Danya Wolf

(360) 708-8294

Every transition is an opportunity, regardless of your stage of life. By partnering with an SRES like one of us, you gain the help and experience of a Realtor® specializing in meeting the needs of home buyers and sellers 50+.

We offer you the opportunity to complete your transaction with patience, professionalism and the expertise you deserve. We are pleased to be YOUR SRES®

Suzanne Jenkins (360) 941-2983

360.424.0300

Phil LaMay (360) 840-3086

Russ Lanker (360) 708-1117

Brett Tacker (360) 840-7931

Carla Fischer

(360) 982-0010

Elva Hunter

(360) 202-3086

Danya Wolf Designated Broker/ Owner (360) 708-8294

3780 E. College Way, Mount Vernon www.skagittraditionrealty.com 178153-1

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March 18, 2022