What's Happening? • April 3, 2018

What the Same House Sold for 3 Years Later!

by Melissa Huddleston

Price Appreciation Case Studies in South Snohomish & North King Counties

18407 62nd Pl W, Lynnwood • 3 bedroom • 1,305 sq ft

Sold in September 2014 for $315,000

Sold in July 2017 for $450,000

*** $135,000 INCREASE IN HOME VALUE: 42.85% ***

17836 1st Ave NE, Shoreline • 4 bedroom • 2,917 sq ft

Sold in November 2014 for $560,000

Sold in January 2018 for $800,000

*** $240,000 INCREASE IN HOME VALUE: 42.85% ***

Since 2014, home values have grown by over 10% each year, resulting in a resounding 35% or more return in pricing. Above are some examples of actual homes sold in late 2017 to early 2018 that also sold in 2014, and that were not remodeled or significantly improved in between sales. These examples show the growth in home values that we have experienced over the last three years due to our thriving local economy. I pulled these examples to show you actual pound-for-pound market data versus the statistical percentages I often quote in these market updates. I thought these examples were pretty telling and quite exciting.

This phenomenon has been driven by a lack of available housing inventory and super high demand due to the robust job market in our area influenced by companies like Amazon. In 2017, there were 1,000 people moving into our area each week! According to census data, that trend is supposed to continue.

The large price gains might seem familiar to the gains of the previous up market of 2004-2007 that resulted in a bubble, but this environment is much different, which is why we are not headed toward a housing collapse. Previous lending practices allowed people to get into homes with risky debt-to-income ratios, low credit scores, and undocumented incomes. A large part of why the housing bubble burst 10 years ago was due to people getting into mortgages they were not equipped to handle, which lent to the eventual fall of sub-prime lending and the bubble bursting. Matthew Gardner, Windermere’s Chief Economist speaks to this topic in this video.

It is supply and demand that is creating these huge gains in prices. An increase in inventory would be healthy and would temper price growth. Many folks who have been waiting for their current home values to return in order to make big moves involving their retirement, upgrading homes, investing, or even buying a second home are well poised to enter the market. If you are one of those people, I hope these examples provide you insight on the increase in home values and how they might pertain to your goals.

Potential buyers might shy away from the market due to affordability. While it is expensive to buy a home in the Greater Seattle area, the people that have become homeowners over the last three years have built some amazing wealth. Interest rates remain low, helping to absorb the cost of a home in our area. Last month, I wrote a Love Letter to Buyers which helped layout the advantages of participating in today’s market and how to be successful. If you or any one you know is considering making a purchase, it is worth the read.

As we head into the active spring and summer months, if you’d like me to provide you a complimentary Comparable Market Analysis (CMA) on your home, so you have a better understanding of your home’s value, I’d be happy to do that. This would be an important component in charting your 2018 financial goals, and what a great time of year to gather that information! It is my goal to help keep my clients informed and empower strong decisions.

What's Happening? • February 27, 2018

Cost vs. Value Report 2018

by Melissa Huddleston

I am commonly asked which improvements sellers should make to get the greatest return on their home sale. Every year The Remodeling 2018 Cost vs. Value Report (www.costvsvalue.com) compiles all the information and analyzes the estimated percentage return on home improvements in each region. Getting a home prepared for market requires a keen eye and great resources. To access the entire Cost vs. Value report please visit www.costvsvalue.com and follow the steps to locate the Seattle area report.

Also, I have a great list of reputable contractors from interior design to HVAC to plumbing to roofing who are licensed and bonded in the State of Washington. Please call on me whenever you need a solid recommendation. I am happy to help whether you are getting your home ready for market or just want to find a good window washer now that the sun is starting to shine a little more.

Complete data from the Remodeling 2018 Cost vs. Value Report can be downloaded free at www.costvsvalue.com

What's Happening? • February 20, 2018

A Love Letter to Buyers

by Melissa Huddleston

I hope your Valentine’s Day was a sweet one, but it got me thinking. I am often sharing with you the advantages of this market for home sellers, which is unbelievably positive. With that said, I thought I’d take some time to give the potential buyers in our marketplace some love, hope, and of course, data!

Dear Greater Seattle Home Buyer,

Let’s just be up front: buying a home in today’s market is not easy. Quite frankly, it can be a wild roller coaster ride with twists and turns; but remember, folks pay a lot of money and stand in long lines for roller coaster rides. Imagine the excited pit in your stomach as the cart clicks up to the highest point before you plunge down a steep drop, and the thrill of raising your hands up because you trust that you are going to be okay. These emotions also accurately reflect the feelings of today’s home buyer – it can be a wild ride! Let’s also note that many roller coaster riders return to the back of the line right after getting off. Home ownership is also a good exercise to repeat and is often the investment that leads to the most built wealth in one’s life.

So how does one ensure that they are not the Nervous Nelly who stands in line for over an hour, finally makes it to the front to be strapped in to the cart, but who then chooses to bow out? The one that sits on the sidelines watching others throw up their hands with a thrill in their eye; the one with that tinge of regret as their friends rejoin them back on hallowed ground to recount their adventure. Wow, this is getting dramatic! Here are a few tips to follow that will ensure that one can find success securing a home in today’s market and get on the equity building train.

Waiting is Even More Expensive
In 2017, the year-over-year median price gains across our region were strong. In fact, here is a little break down.

North Snohomish County:	$371,000	up 13%
South Snohomish County:	$508,000	up 14%
North King County:	$715,000	up 14%
Seattle Metro:	$710,000	up 15%
South King County:	$405,000	up 13%
Eastside:	$865,000	up 15%

The appreciation is for real and as each month ticks by, prices are going up. That is why it is incredibly important to have a plan and realistic expectations. In referring to the chart above, it is plain to see the affordability of each area. Buyers have had to get creative and honest with themselves regarding the city or neighborhood in which they land. Commute times are one of the biggest indicators of home cost. It is paramount to line your budget up with a realistic commute time and then dig in. Too often I’ve seen buyers tightly grip to the idea of an in-city commute, only to have it end up being a more suburban choice in the end. The months wasted trying to perform in a market that didn’t match their budget ended up costing them at least 1% a month, based on last year’s appreciation. Getting real saves time, money, and heartache.

Interest Rates are a’Rising
This aspect is actually one to pay very close attention to. We have been amazingly spoiled with historically low interest rates over the last five years. In fact, there is an entire generation of buyers who only know rates that have hovered from 3.5 – 4.5% – that is close to 3 points under the 30-year average! A good rule of thumb regarding interest rates, is that for each 1-point increase a buyer loses 10% of their buying power. That means that if you have a $500,000 budget and the rate goes up by a point, that you are now shopping for a $450,000 house if you want the same payment. Note, that shift does not take appreciation into consideration. Today’s rates have helped buyers bear the home prices in our area. It is predicted that rates will rise in 2018 by .5 to 1%.

Rents are High and Don’t Build Wealth
Seattle is now the 5th most expensive city to rent in the country according to the US Census Bureau. With rising rental rates, still historically low interest rates, and home prices on the rise, the advantage of buying versus renting has become clear for folks who have a down payment saved, good debt-to-income ratios and strong credit. Currently, the breakeven horizon (the amount of time you need to own your home in order for owning to be a superior financial decision vs. renting) in the Greater Seattle area is 1.6 years according to Zillow research.

Partner with a Broker Who Will Get the Job Done
A broker that has a process is key! It starts with an initial buyer consultation. I liken the buyer consultation to the seat belt you would wear on the roller coaster ride. When you go to the Dr. they start with your intake, check your vitals, ask questions, etc. The buyer consultation aims to unearth a buyer’s goals, research the areas they are interested in, address financing, and illustrate the challenges of the environment, so one can be successful. Time is money, and this consultation brings clarity, efficiency and trust. This upfront education coupled with a high level of communication and availability is paramount. The depth of the relationship will lead to success, and is the ingredient that enables a buyer to throw up their hands and take the thrilling plunge. It is hard to do that without a seat belt!

Get Your Finances in Order
Aligning with a trusted real estate professional is key, but so is aligning with a reputable and responsive mortgage lender. Getting pre-approved is the minimum, but getting pre-underwritten is a game changer. Finding a lender that is willing to put in the work up-front to vet credit, income, savings, debt, and all other financial indicators will lead to being pre-underwritten, which listing agents and sellers appreciate! Also, be aware that you do not always need to have a huge down payment to make a purchase work. Employment, assets, credit, and what you have saved all work into your ability to acquire a loan. I have seen plenty of people secure a home with 3-5% down. Education and awareness create clarity, and investing into understanding your financial footing equals empowered and more efficient decisions. Note that I mentioned “responsive”. This is a 24/7 market, and lenders who don’t work evenings and weekends can get in the way of a buyer securing a home. If you need a short list of lenders that fit this description, please contact me.

‘Tis the Season – Inventory is Coming
Have hope! This is the time of year where we see inventory climb month over month. There will be more selection, but bear in mind it is also the time of year that the appreciation push happens. If you are feeling 75-80% in love with a home, it is one to act on. You’re never going to “get it all”, so a willingness to focus on priorities will pay off, because waiting will have an expense.

If you or someone you know is considering a purchase in today’s market, please contact me. It is my pleasure to take the time to educate, devise a plan, and help buyers find success in a challenging, yet advantageous market.

Quarterly Reports • February 2, 2018

South King County Market Trends

by Melissa Huddleston

Price growth was particularly strong in 2017! Median was up 13% and average price up 12% over 2016. Median price in 2017 landed at $405,000 and the average at $440,000. The average amount of days it took to sell a house in 2017 was 30 days which is 9% faster than 2016. The average list-to-sale price ratio over the last year was 100%, with the spring months as high as 102%! In 2017, inventory growth continued to be a challenge, with a 7% decrease in new listings compared to 2016. Even with inventory limitations there were 2% more sales! This phenomenon illustrates strong buyer demand and a need for more listings.

South King County real estate has seen a steady stream of buyers come our way due to affordability, reasonable commute times and quality of life. In fact, the median price in 2017 was 75% higher in Seattle Metro. Historically low interest rates continue to drive the market as well, they have helped offset the increase in prices. Sellers are enjoying great returns due to this phenomenon and buyers are securing mortgages with minor debt service.

This is only a snapshot of the trends in south King County; please contact me if you would like further explanation of how the latest trends relate to you.

Quarterly Reports • February 2, 2018

Eastside Quarterly Market Trends

by Melissa Huddleston

Price growth was particularly strong in 2017! Median was up 15% and average price up 16% over 2016. Median price in 2017 landed at $865,000 and the average at $1,049,000. The average amount of days it took to sell a house in 2017 was 24 days, which is 17% faster than 2016. The average list-to-sale price ratio over the last year was 101%, with the spring months as high as 103%! In 2017, inventory growth continued to be a challenge, with a 4% decrease in new listings compared to 2016. Even with inventory limitations there were a near equal amount of sales! This phenomenon illustrates strong buyer demand and a need for more listings.

Demand for Eastside real estate has grown due to close proximity to job centers, great schools and quality of life. Over the last year, the Eastside was 70% more expensive than south Snohomish County and 22% over Seattle Metro. Historically low interest rates continue to drive the market as well, they have helped offset the increase in prices. Sellers are enjoying great returns due to this phenomenon and buyers are securing mortgages with minor debt service.

This is only a snapshot of the trends on the Eastside area; please contact me if you would like further explanation of how the latest trends relate to you.

Quarterly Reports • February 2, 2018

Seattle Metro Quarterly Market Trends

by Melissa Huddleston

Price growth was particularly strong in 2017! Median was up 15% and average price up 14% over 2016. Median price in 2017 landed at $710,000 and the average at $801,000. The average amount of days it took to sell a house in 2017 was 18 days, which is 10% faster than 2016. The average list-to-sale price ratio over the last year was 103%, with the spring months as high as 106%! In 2017, inventory growth continued to be a challenge, with a 3% decrease in new listings compared to 2016. Even with inventory limitations there were 4% more sales! This phenomenon illustrates strong buyer demand and a need for more listings.

Demand for Seattle Metro area real estate has grown due to close proximity to job centers. Over the last year, Seattle Metro was 40% more expensive than south Snohomish County and 75% over south King County. Historically low interest rates continue to drive the market as well, they have helped offset the increase in prices. Sellers are enjoying great returns due to this phenomenon and buyers are securing mortgages with minor debt service.

This is only a snapshot of the trends in the Seattle Metro area; please contact me if you would like further explanation of how the latest trends relate to you.

Quarterly Reports • January 30, 2018

North King County Quarterly Market Trends

by Melissa Huddleston

Price growth was particularly strong in 2017! Median and average prices were up 14% over 2016. Median price in 2017 landed at $715,000 and the average at $787,000. The average amount of days it took to sell a house in 2017 was 17 days, which is 19% faster than 2016. The average list-to-sale price ratio over the last year was 104%, with the spring months as high as 107%! In 2017, inventory growth continued to be a challenge, with a 4% decrease in new listings compared to 2016. Even with inventory limitations there were a near equal amount sales! This phenomenon illustrates strong buyer demand and a need for more listings.

Demand for north King County real estate has grown due to close proximity to job centers while maintaining a neighborhood feel. Over the last year, north King County was 41% more expensive than south Snohomish County and 77% over south King County. Historically low interest rates continue to drive the market as well, they have helped offset the increase in prices. Sellers are enjoying great returns due to this phenomenon and buyers are securing mortgages with minor debt service.

This is only a snapshot of the trends in north King County; please contact me if you would like further explanation of how the latest trends relate to you.

Quarterly Reports • January 30, 2018

South Snohomish County Quarterly Market Trends

by Melissa Huddleston

Price growth was particularly strong in 2017! Median was up 14% and average price up 12% over 2016. Median price in 2017 landed at $508,000 and the average at $543,000. The average amount of days it took to sell a house in 2017 was 24 days, which is 17% faster than 2016. The average list-to-sale price ratio over the last year was 101%, with the spring months as high as 103%! In 2017, inventory growth continued to be a challenge, with a 1% decrease in new listings compared to 2016. Even with inventory limitations there were 4% more sales! This phenomenon illustrates strong buyer demand and a need for more listings.

South Snohomish County real estate has seen a steady stream of buyers come our way due to affordability, reasonable commute times to job centers and quality of life. In fact, the median price in 2017 was 41% higher in north King County. Historically low interest rates continue to drive the market as well, they have helped offset the increase in prices. Sellers are enjoying great returns due to this phenomenon and buyers are securing mortgages with minor debt service.

This is only a snapshot of the trends in south Snohomish County; please contact me if you would like further explanation of how the latest trends relate to you.

Quarterly Reports • January 30, 2018

North Snohomish County Quarterly Market Trends

by Melissa Huddleston

Price growth was particularly strong in 2017! Median and average prices were up 13% over 2016. Median price in 2017 landed at $371,000 and the average at $400,000. The average amount of days it took to sell a house in 2017 was 35 days, which is 10% faster than 2016. The average list-to-sale price ratio over the last year was 99%, with the spring months as high as 101%! In 2017, inventory growth continued to be a challenge, with an 8% decrease in new listings compared to 2016. Even with inventory limitations there were 3% more sales! This phenomenon illustrates strong buyer demand and a need for more listings.

North Snohomish County real estate has seen a steady stream of buyers come our way due to affordability and quality of life. In fact, the median price in 2017 was 37% higher in south Snohomish County. Historically low interest rates continue to drive the market as well, they have helped offset the increase in prices. Sellers are enjoying great returns due to this phenomenon and buyers are securing mortgages with minor debt service.

This is only a snapshot of the trends in north Snohomish County; please contact me if you would like further explanation of how the latest trends relate to you.

Mukilteo • July 30, 2017

The Insider’s Guide to the Best Shopping & Dining in Mukilteo

by Melissa Huddleston

Mukilteo is packed with shopping and dining destinations and we have your insider’s guide to some of the best. From gifts to breakfast to seafood, our residents know the top places to get the most bang for your buck.

Here is our guide to the 20 most recommended shopping and dining spots in Mukilteo:

SHOPPING

Beach Glass by K. Miller Interiors

Located at 619 4th St. Mukilteo, WA 98275
Hours: 10:00am-4:00pm Tuesday-Saturday; closed Sunday-Monday

Need a unique gift? A favorite place to shop in Mukilteo for special gift items is Beach Glass. Tucked away in a quaint courtyard and neighboring the popular Red Cup Cafe, this little shop is packed with unique items. BONUS, the owner (Krista) also offers specialized design services. Check it out!

Proper Picnic

This summer, leave the picnicking to the pros at Proper Picnic. Proper Picnic is based in Mukilteo. Though mainly online, they do have physical location.

Mukilteo Chocolate Company

Located at 407 Lincoln Ave. Mukilteo, WA 98275
Hours: 10:00am-6:00pm Monday-Saturday; closed Sunday

If you need to satisfy your sweet tooth, stop by the Mukilteo Chocolate Company. Mukilteo Chocolate Co. is where you can find individually hand crafted fine European chocolate…oh so yummy. They also serve ice cream. While you’re there, say hi to Jan who owns and makes the chocolate!

Mukilteo Farmers Market

Located at 609 Front St. Mukilteo, WA 98275
Hours: 3:00pm-7:00pm Wednesday Only (June-September)

If you want fresh food and neighborhood togetherness, look no further than the Mukilteo Farmers Market. It’s a great place to shop, and with talented local vendors and events that serve the community, it’s not hard to see why!

ACE Hardware

Located at 12680 Mukilteo Speedway Mukilteo, WA 98275
Hours: 8:00am-8:00pm

For your home improvement needs, check out ACE Hardware. If you have any improvement issues or just need quick help finding just about anything… every single employee at ACE can help you. Sometimes their advice sends you out the door without purchasing a single thing (like using match sticks to tighten screw holes). Also, this is the absolute best place to get keys made—they ALWAYS work!!

DINING

The Scotsman Bistro

Located at 11601 Harbour Pointe Blvd. Mukilteo, WA 98275
Hours: 3:00pm-10:00pm Monday; 11:00am-10:00pm Tuesday-Thursday; 11:00am-11:00pm Friday; 3:00pm-11:00pm Saturday; closed Sunday

If you find yourself in Harbour Pointe, check out The Scotsman Bistro. On the weekends they bring in Scottish musicians. The owner is always there and loves to chat (with his thick Scottish accent) to all his patrons! From the food to the scotch, it’s easy to see why this is a top Mukilteo dining destination.

The Sydney Bakery & Wine Bar

Located at 613 5th St. Mukilteo, WA 98275
Hours: 8:30am-5:00pm Monday-Thursday & Saturday; 8:30am-8:00pm Friday; 8:30am-3:00pm Sunday

Wake up on the right side of the bed with breakfast at the Sydney Bakery & Wine Bar. Freshly baked cinnamon rolls and sticky buns, plus a cappuccino or coffee are sure to give you the energy to jump start your day.

Red Cup Cafe

Located at 619 4th St. Mukilteo, WA 98275
Hours: 7:00am-5:00pm

Another popular spot is the Red Cup Cafe serving up delicious items and soothing views. Make sure to walk over the delightful courtyard to get fresh coffee at Red Cup. They also serve lunch. It’s so relaxing to sit and sip coffee and look at the Olympics, and ferry sailings.

Amici Bistro

Located at 8004 Mukilteo Speedway Mukilteo, WA 98275
Hours: 3:00pm-9:00pm Tuesday-Thursday; 3:00pm-10:00pm Friday; 5:00pm-10:00pm Saturday; 4:00pm-9:00pm Sunday; closed Monday

Known as the “best kept secret” of the North End, Amici Bistro is the place for local Italian cuisine. Homemade sausage, pizza dough, sauces, and more ensure that no matter why you’re there, you will have a delicious and memorable meal.

Mukilteo’s Speedway Cafe

Located at 11707 Mukilteo Speedway Mukilteo, WA 98275
Hours: 6:00am-3:00pm Monday-Saturday; closed Sunday

For the best breakfast in town, there’s no beating Mukilteo’s Speedway Cafe. Fresh variations on classic diner dishes and prompt service promise that you will leave feeling full and ready to start the day.

The Diamond Knot Brewery & Alehouse

Located at 621 Front St. Mukilteo, WA 98275
Hours: 10:00am-1:00am Monday-Friday; 8:00am-1:00am Saturday-Sunday

Before hopping a ferry, grab some grub and beer at the Diamond Knot Brewery & Alehouse. The flagship location of Diamond Knot brewery is right near the ferry terminal. Great beer, food, and peanut shells on the floor!

Thai Rama 3

Located at 12190 Village Center Pl. Mukilteo, WA 98275
Hours: 11:00am-9:00pm Monday-Thursday; 11:00am-10:00pm Friday; 4:00pm-9:30pm Saturday; 4:00pm-9:00pm Sunday

In the mood for some Thai? After a round go to Thai Rama 3 for a drink and by far the best Thai food for miles. They also offer takeout, so you can enjoy their extensive list of yummy dishes at home!

Ivar’s Mukilteo Landing

Located at 710 Front St. Mukilteo, WA 98275
Hours: 10:00am-10:00pm Sunday-Thursday; 10:00am-11:00pm Friday-Saturday

When it comes to seafood, we recommend Ivar’s. The walk up Ivar’s fish bar for quick fish and chips to take to the beach and watch the sunset over Whidbey Island is superb.

Arnies Restaurant & Bar

Located at 714 2nd St. Mukilteo, WA 98275
Hours: 11:00am-10:00pm Monday-Thursday; 11:00am-11:00pm Friday-Saturday; 10:00am-10:00pm Sunday

Arnies Restaurant & Bar offers delicious local seafood and sweeping views of Puget Sound and the Olympic Mountains. If we can’t decide on dinner, find your way to Arnie’s.

Sully’s Pizza & Calzones

Located at 403 Lincoln Ave. Mukilteo, WA 98275
Hours: 10:30am-9:00pm

If you’re near Red Cup and want some pizza, stop by Sully’s Pizza & Calzones. From the same courtyard as Red Cup, you can walk over to Sully’s Pizza where they serve gluten free and vegetarian pizza. Named after former mayor Brian Sullivan, Sully’s is a Mukilteo staple.

Brooklyn Bros. Pizzeria

Located at 8326 Mukilteo Speedway Mukilteo, WA 98275
Hours: 11:00am-8:00pm Sunday-Thursday; 11:00am-9:00pm Friday-Saturday

Another pizzeria is Brooklyn Bros. Friday nights when you don’t feel like driving, it’s fun to walk down to get the best pizza in the area, Brooklyn Bros. High quality ingredients, a perfectly-cooked crust, and intense flavors make these pies the best west of the Hudson.

The Mukilteo Lodge

Located at 7928 Mukilteo Speedway Mukilteo, WA 98275
Hours: 11:00am-12:00am Sunday-Wednesday; 11:00am-2:00am Thursday-Saturday

Calling all sports fans! The Mukilteo Lodge is a great place to get a drink or watch a game. With extensive draft beers, hearty dishes, and game happy hours, you can cheer your team onto victory in true American style.

Mukilteo Thai Restaurant

Located at 8410 Mukilteo Speedway Mukilteo, WA 98275
Hours: 11:00am-9:00pm Thursday; 11:00am-10:00pm Friday; 12:00pm-9:00pm Saturday-Sunday; closed Monday-Wednesday

For authentic Thai, nothing’s better than Mukilteo Thai. A wide array of curries, appetizers, and other specialties are made-to-order, so you will always have your meal prepared just the way you like. Want a menu suggestion? “Try the Tiger Tearless.”

Cafe Soleil

Located at 9999 Harbour Pl. #105 Mukilteo, WA 98275
Hours: 11:00am-1:45pm & 5:00pm-8:45pm Tuesday-Friday; 12:00pm-2:15pm & 5:00pm-8:45pm Saturday; 5:00pm-8:00pm Sunday; closed Monday

There are so many great places to eat in Mukilteo. But a new local favorite is Café Soleil, a euro-Japanese kitchen and it is family owned. The food is great and the service is superb! Have the green tea crème brulee for dessert. It’s delicious!”

John’s Grill

Located at 649 5th St. #100 Mukilteo, WA 98275
Hours: 4:30pm-9:00pm Tuesday-Saturday; closed Sunday-Monday

For a special celebration, check out John’s Grill in Old Town. Everything is delicious. From steak to seafood, all dishes are flavorful and showcase the head chef’s culinary expertise. Try the steak and grilled prawns.