According to MoneyWatch on March 13th, home equity continues to rise even from the double digit increases LY. In 2016 Washington saw property gains that were double the overall U.S. rate. If that isn’t jaw dropping enough, Zillow predicts 2017 home value growth to rise 3.6% on a national level.
Bidding battles have become a norm in this wild world of real estate; another reason it is important to have a knowledgeable bulldog of a broker representing you. In fact, Mercury News stated that 49.3% of homes in Seattle sold above their list price in the month of February. Having a knowledgeable broker will not only position your home competitively but will also negotiate on your behalf and secure a strong buyer. Fielding multiple offer scenarios, being skillful in negotiating, and having a prepared broker are equally important when buying a home.
Thinking about selling your home?
The Times has recently reported that the nation is short approximately 700,000 homes on an annual basis! Demand for homes is rising, yet we do not seem to have the capacity to supply at the same rate. Furthermore, new construction may not be as desirable to buyers this year. Zillow has predicted that external and environmental impacts could create a shortage of construction workers thus driving wages and costs passed down to buyers.
Please contact us if you have questions about selling your home and we would be happy to provide a free market analysis of your home and its current value.
The Fed raised rates: find out what this really means
The Fed just raised its benchmark federal funds rate for the first time in almost a decade. After holding the rate near zero to support the economic recovery, the Fed upped the target rate range to between 0.25 to 0.5 percent.
While a rate hike may sound worrisome, it is important to understand what this really means.The federal funds rate is the rate at which banks lend money to each other. It is not directly tied to longterm rates on consumer products like purchasing or refinancing home loans.This means that consumers should not expect an increase in home loan rates as a direct result of the Fed’s decision.
Instead, home loan rates are tied to mortgage backed securities, which are a type of bond. Many factors impact the performance of both stocks and bonds, and will play a role in the direction of home loan rates as we move into the new year.
For example, an improving economy, higher wages, and higher inflation could all cause home loan rates to rise. However, if our economy falters, or if there is continued uncertainty and turmoil here or overseas, investors could seek out safer investments like bonds, which could help keep home loan rates low.
The good news is that you don’t have to figure this out on your own. If you want to take advantage of today’s low rates, or if you have any questions about the housing market, current rates, or loan products, please do not hesitate to contact us.
Phone: (206) 261-1206
Guild Mortgage Company
Phone: (425) 412-6785
NMLS #: 1146123