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Spring Real Estate Roundup
A Snapshot of Homebuyers
Home Sales Generate $52,205 Impact on Economy
The National Association of Realtors (NAR) compiled data from research conducted by the Bureau of Economic Analysis & Macroeconomic Advisors on the economic impact of a home purchase.
After reviewing the data, they concluded that the total economic impact of a typical home sale in the United States is an astonishing $52,205.
Here is the breakdown of their report:
Economic Contributions are derived from:
- Home construction
- Real estate brokerage
- Mortgage lending
- Title insurance
- Rental and Leasing
- Home appraisal
- Moving truck service
- Other related activities
When a House is Sold in the United States:
$15,912 of income is generated from real estate related industries.
New homeowners spend an additional $4,429 on consumer items such as furniture, appliances, and remodeling.
It generates an economic multiplier impact. There is a greater sense of community associated with owning a home; therefore there is greater spending at restaurants, sports games, and charity events. The size of this “multiplier” effect is estimated to be: $9,764
Additional home sales induce additional home production. Typically one new home is constructed for every 8 existing home sales. Therefore, for each existing home sale, 1/8 of new home value is added to the economy, which is estimated in the U.S. to be: $22,100
When you add the numbers up it comes to $52,205!
Should I Rent My House if I Can’t Sell It?
There has been a lot written about how buying a home is less expensive than renting one in most parts of the country. Rents are skyrocketing and homes are still at great prices. These two situations are also causing some sellers to consider renting their home instead of selling it. After all, a homeowner can get great rental income now and perhaps wait until house values increase even further before selling.
This logic makes sense in some cases. There is a strong belief that residential real estate is a great investment right now. However, if you have no desire to actually become an educated investor in this sector, you may be headed for more trouble than you were looking for.
Before renting your home, you should answer the following questions to make sure this is the right course of action for you and your family.
10 Questions to ask BEFORE renting your home
- How will you respond if your tenant says they can’t afford to pay the rent this month because of more pressing obligations? (This happens most often during holiday season and back-to-school time when families with children have extra expenses).
- Because of the economy, many homeowners cannot make their mortgage payment. What percentage of tenants do you think cannot afford to pay their rent?
- Have you interviewed experienced eviction attorneys in case a challenge does arise?
- Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?
- Will you allow pets? Cats? Dogs? How big a dog?
- How will you actually collect the rent? By mail? In person?
- Repairs are part of being a landlord. Who will take tenant calls when necessary repairs come up?
- Do you have a list of craftspeople readily available to handle these repairs?
- How often will you do a physical inspection of the property?
- Will you alert your current neighbors that you are renting the house?
Bottom Line
Again, renting out residential real estate is historically a great investment. However, it is not without its challenges. Make sure you have decided to rent the house because you want to be an investor, not because you are hoping to get a few extra dollars by postponing a sale.
Easter Egg Hunt coming April 19 – free!
You are invited to the annual Easter Egg Hunt! This exciting free family event features more than 12,000 plastic eggs filled with candy and prizes hidden around Jennings Park Rotary Ranch and Master Garden. The morning also features children’s activities and a guest visit from the Easter Bunny.
The Easter Egg Hunt will be from 10-11 a.m. on Saturday, April 19 at Jennings Memorial Park, 6915 Armar Rd. Additional parking will be available at Marysville Middle School, 4923 67th St. NE.
Youth ages 0-8 will be able to collect 8 eggs from their designated age-specific area of the park. All participants are asked to bring a canned food item for donation to the Marysville Food Bank. Brought to you by the City of Marysville, Marysville Noon Rotary, Steve Fulton State Farm Insurance and Grandview Village, this is an event you won’t want to miss!
For more information call Marysville Parks and Recreation at (360) 363-8400.
2014 Annual Spring Cleaning Day
Lake Stevens Spring Cleaning Day Event – May 3, 2014
On Saturday, 3rd May 2014, the City of Lake Stevens will be hosting its annual Spring Cleaning Day Event for citizens who live within the limit of the City of Lake Stevens. This year’s event will be held at the back parking lot of Cavelero Mid High, located at 8220 24th St. SE. . Citizens may bring most of their items that are typically taken to the dump and dispose of them for free from 9:00 am to 2:00 pm. To access this event, citizens must provide identification with their name and address to verify Lake Stevens residency.
Shred It Paper shredding service will be present and accepting personal papers for free shredding. Les Schwab Tire Center will be accepting old tires at no charge. The limit is 10 tires per household and tires must be standard car, SUV, and pickup truck size and off the rims. Les Schwab will not be accepting tires on any other day or at any of their stores. TV’s, computers, lap tops, and monitors will be accepted at no charge.
Hazardous Waste (paints, chemicals, things with Freon, etc.) WILL NOT be accepted.
Lake Stevens Food Bank will be on-site accepting donations of canned/non-perishable food items.
To help make the unloading quick and easy, paper materials to be shredded, standard vehicle tires, electronic waste, and metal recyclables should be separated from other garbage and grouped together. This will help avoid separating trash on site. Loose trash must be bagged or bundled and unloaded by the Citizen. No event staff will be on site to help with unloading trash.
To verify if you live in the Lake Stevens city limits, please contact the Lake Stevens Public Works Department at 425-377-3235
The Windermere Foundation is now accepting donations for the Oso, Washington Relief Fund.
We are deeply saddened by the events that have unfolded over the last week due to the landslide in Oso, Washington. We have heard from many of you who wish to support and provide emergency relief for those that have lost their homes and loved ones. 100% of the funds designated to the Windermere Foundation's Oso, Washington Relief Fund will go directly to the families affected by the slide, through the Darrington Emergency Task Force for immediate assistance.
You can donate online at https://store.windermere.com/content/foundation-donation. The Windermere Foundation will match the first $5,000 donated.
A special thanks to the Windermere office in nearby Arlington, owned by Gene Bryson, for raising awareness and starting the fundraising effort.
Our hearts go out to all the families affected by this disaster.
Thank you for your support.
Christine Wood | Executive Director
WINDERMERE FOUNDATION
5424 Sand Point Way NE
Seattle, WA 98105
OFFICE (206) 527-3801
FAX (206) 393-3444
Home Renovations
5 REASONS TO SELL NOW
on March 18, 2014 in For Sellers
Many sellers are still hesitant about putting their house up for sale. Where are prices headed? Where are interest rates headed? Can buyers qualify for a mortgage? These are all valid questions. However, there are several reasons to sell your home sooner rather than later. Here are five of those reasons.
1. The Most Serious Buyers Are Out Now
Most people realize that the housing market is hottest from April through June. The most serious buyers are well aware of this and, for that reason, come out in early spring in order to beat the heavy competition. These buyers are ready, willing and able to buy…and are in the market right now!
2. There Is Less Competition Now
Housing supply always grows from the spring through the early summer. The choices buyers have will continue to increase over the next few months. Don’t wait until all the other potential sellers in your market put their homes up for sale.
3. The Process Will Be Quicker
One of the biggest challenges of the 2014 housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. As the market heats up, banks will be inundated with loan inquiries causing closing timelines to lengthen. Selling now will make the process quicker and simpler.
4. There Will Never Be a Better Time to Move-Up
If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 19% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate at about 4.5% right now. Rates are projected to be well over 5% by this time next year.
5. It’s Time to Move On with Your Life
Look at the reason you decided to sell in the first place and decide whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?
You already know the answers to the questions we just asked. You have the power to take back control of the situation by pricing your home to guarantee it sells. The time has come for you and your family to move on and start living the life you desire.
That is what is truly important.
5 REASONS TO BUY A HOME NOW
on March 17, 2014 in For Buyers
Based on prices, mortgage rates and soaring rents, there may have never been a better time in real estate history to purchase a home than right now. Here are five major reasons purchasers should consider buying.
1. Competition is about to Increase
Every spring a surge of prospective purchasers enter the housing market. Like you, they will want the best homeavailable in the best location at the best price. They will be competing with you for the ‘steals’ in the market. Don’t miss the opportunity to get that ‘once-in-a-lifetime’ buy available today that no longer be available as the market heats up..
2. Price Increases Are on the Horizon
Nationally, home prices are projected to appreciate by 4.5% in 2014 and by over 19% from now until 2018. First home buyers will probably pay more both in price and interest rate if they wait until the spring. Even if you are a move-up buyer, it will wind-up costing you more in net dollars as the home you will buy will appreciate at approximately the same rate as the house you are in now.
3. Owning a Home Helps Create Family Wealth
Whether you rent or you own the home you are living in, you are paying a mortgage. Either you are paying your mortgage or your landlord’s. The Federal Reserve, in a recent study, revealed that the net worth of the average homeowner is 30 times greater than that of a renter.
4. Interest Rates Are Projected to Rise
The Mortgage Bankers Association, the National Association of Realtors, Freddie Mac and Fannie Mae have all projected that the 30-year mortgage interest rate will be over 5% by the spring of 2015. That is an increase of almost 3/4 of a point over current rates.
5. Buy Low, Sell High
Most would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling ‘low’ compared to where it will be next year. It’s time to buy.
