Brooks & Heinze Seattle Real Estate Team – October 2023 Newsletter 


Market Update

It is typical for the real estate market to slows down as we head into October and usually the market is slow through the winter months. September, however, is usually a strong market. This year though, the high-interest rate environment has translated into a much earlier downturn in the market. In some areas and for highly desirable properties we are seeing slowed sales and prices stagnating BUT in some areas and for some property types, we are seeing significant price drops and sales slowing more than in prior years. Sellers dropped prices on more than a quarter of homes listed for sale in the Seattle area in September. With mortgage rates at a 23-year high, more and more potential buyers are selecting not to commit to a purchase at this time and purchase mortgage applications are down.

Our Listings

$290,000. Available. Charming 1920’s Vintage Co-Op located in vibrant neighborhood within walking distance of fabulous restaurants, shopping, entertainment venues, Seattle U, Seattle Academy, excellent bus service, light rail and everything else Capitol & First Hill have to offer. Quiet, south-facing, second floor unit overlooking garden. Recently updated kitchen. 1bed / 1 bath unit with den. The Union Terrace offers private storage in the basement, on-site laundry room and bike racks. Co-op is welcoming, well-governed, and has a fiscally sound HOA supported by a professional property manager. Street parking Zone 7. Click here for pictures of the property. 

Decorating your Home for Sale during the Holidays

We often get this question from our sellers during holiday seasons: Can I still decorate for Halloween, Easter, etc. when selling my home? Our answer is sort of but tone it down and keep it simple and classy. Play with colors rather than trinkets and holiday specific decorations. Keep the skeletons and goblins in the box but add some red and orange pillows on your couch. Add a fall-colored runner on your table with a dried fall wreath on the dining room table. You get the picture.  This article on Homes.com makes some good points on how to embrace the different seasons and not feel like you are missing out on your favorite holidays while on the market and letting the beauty of your home shine. 

We’d love to hear from you

Any questions, comments, or feedback? Contact us any time.

Happy Fall,

Kerstin 🍂 Krisanne

Brooks & Heinze Team
at Skyline Properties, Inc.
Kerstin Brooks: 206.276.5827
Krisanne Heinze: 206.920.2541
Email: info@propertyinseattle.com
Web: www.propertyinseattle.com

Co-op Ownership – an affordable option?


Interested in buying property on Capitol Hill (Seattle, WA) but can’t find an affordable solution? Have you considered a co-op?  Here’s a terrific 1 bed / 1 bath plus den co-op in the vintage Union Terrace Co-op under $300k:

1136 13th Ave #206, Seattle, WA

Only $290,000! 

1 bed / 1 bath / den

If affordability is preventing you from being able to buy a condo in urban Seattle, you might want to consider purchasing a co-op.  Co-op buildings are a unique form of property ownership that is common in many urban areas, particularly in cities like New York City. Co-ops are less common in Seattle but there is a decent selection in popular, dense neighborhoods like Queen Anne, Capitol Hill, First Hill and Belltown.  Here are some benefits and common misconceptions associated with co-op buildings:

Benefits:

  1. Affordability: Co-op units are often more affordable than condominiums or single-family homes in the same area. This is because buyers purchase shares in a cooperative corporation rather than actual real estate, making the initial purchase price lower.
  2. Community: Co-op buildings often foster a strong sense of community among residents and residents typically share similar values and lifestyles and a desire to live in urban centers.
  3. Maintenance and Repairs: The cooperative corporation is responsible for maintaining and repairing the building’s common areas and systems. This can reduce the individual owner’s maintenance burden and costs.
  4. Control: Co-op owners have a say in the management and decision-making of the building through their voting rights. This can lead to a sense of ownership and control over the property’s future.
  5. Tax Benefits: Some co-op owners may be eligible for certain tax benefits, such as deductions for mortgage interest and property taxes.

Common Misconceptions:

  1. Strict Approval Process: While co-op boards do have an approval process for new buyers, the perception of this process being overly strict can be a misconception. It’s designed to protect the community and ensure that potential buyers meet financial and lifestyle requirements, but not all co-op boards are unreasonably stringent. Actually, most boards are welcoming.
  2. Lack of Investment Value: Some people believe that co-op units do not appreciate in value as much as condominiums or single-family homes. While it’s true that co-op resale values may not rise as rapidly in some markets, they can still appreciate over time, especially in desirable areas.
  3. Maintenance Costs: Although the cooperative corporation handles common area maintenance, co-op owners are still responsible for their share of these costs through monthly maintenance fees (HOA dues).

Co-op buildings offer several benefits, including affordability, a sense of community, and shared maintenance responsibilities. However, there are common misconceptions, such as the strictness of the approval process and the nature of ownership, that potential buyers should be aware of when considering co-op living. It’s essential to research and understand the specific rules and regulations of any co-op building before making a purchase and a good real estate agent can assist with this. 

Kerstin G. Brooks

Brooks & Heinze Real Estate Team at Skyline Properties, Inc. 

Cell: 206.276.5827 – Email: kerstin@propertyinseattle.com 

Web: www.propertyinseattle.com 

On Facebook: http://www.facebook.com/PropertyinSeattle

Brooks & Heinze Seattle Real Estate Team – August 2023 Newsletter 


Market Update

Mortgage rates have been stubbornly above 7% for two months now. Home buyers are growing weary about the effect of rates on their monthly payments. As a result, sales have slowed and property prices are decreasing slightly. A slight downturn in the housing market is inevitable given the higher mortgage rates. As of August 18, 2023, the average 30-year fixed-rate is 7.60%. This figure marks an increase of about 2% from the same time last year and represents the highest rate in over 20 years.

Our Listings

$299,000. Available. Charming 1920’s Vintage Co-Op located in vibrant neighborhood within walking distance of fabulous restaurants, shopping, entertainment venues, Seattle U, Seattle Academy, excellent bus service, light rail and everything else Capitol & First Hill have to offer. Quiet, south-facing, second floor unit overlooking garden. Recently updated kitchen. 1bd / 1 bth unit with large storage/nursery/walk-in closet/hobby or office cubby. Click here for more info.

In Search of …

Do you know someone who has 3-5+ acres of land in western Washington who would be willing to sell via seller financing and does not want to go through the hassle of prepping the house, land and listing the property?  Ideally the property would have some forested area (old growth trees a huge plus!), a stream or some water source on or near the property, septic, a well and a livable house.  We might have a buyer.

Disaster Plan

Do you have an evacuation plan and disaster preparedness kit? Our home is usually the place where we feel safe but seems like not a week goes by where we don’t hear about some disaster that requires people to have to evacuate due to floods, fires, storms and more. Sometimes you have a couple of days to plan but some disasters leave little to no warning. Prepare a “go-bag” you can easily carry with a few key supplies in case you need to evacuate. More information on preparedness is available at https://www.ready.gov/plan .

Congratulations

Congratulations Andrews Family – We hope you enjoy your new 2 bedroom / 1 bath condo on First Hill. Sold for $670,000.

We’d love to hear from you

Any questions, comments, or feedback? Contact us any time.

Thank you,

Kerstin ☀ Krisanne

Brooks & Heinze Team

at Skyline Properties, Inc.

Kerstin Brooks: 206.276.5827

Krisanne Heinze: 206.920.2541

Email: info@propertyinseattle.com

Web: www.propertyinseattle.com

Brooks & Heinze Seattle Real Estate Team – July 2023 Newsletter 


Market Update

Uncertainty continues to describe the housing market and mortgage industry. Over the past year or so, rising mortgage interest rates have decimated affordability, sidelining and pricing out some would-be homebuyers. Higher rates have also led to worsening inventory as homeowners have been reluctant to relocate and give up their record-low mortgage rates secured when they purchased (or refinanced before the rate hikes).  The latest NWMLS report shows the number of active listings of single-family homes and condominiums is down nearly 21% from last year.

According to Mortgage News Daily, the national average for 30-year fixed and 15-year fixed mortgage rates this week are 6.89% and 6.3% respectively. 

WA Renters need to earn 2x the minimum wage to afford rent

According to the National Low Income Housing Coalition, a Washington renter needs to earn $30.33 an hour, that’s twice the minimum state income, to afford the typical one-bedroom apartment in the state without spending more than 30% of their income on housing costs. In the Seattle and Bellevue area, a renter would need to make even more: $40.38 an hour or $84,000 a year.

Who’s Buying? Stats by Age Group

Baby boomers (born 1946 to 1964) made up 39% of home buyers last year. Generation Y/Millennials’ (born 1981 to 1996) made up 28% . The segment with the highest median household income, Generation X (born 1965 to 1980), made up 24% of total buyers. Generation Z (born 1997-2012) made up 4% of buyers and the Silent Generation (born 1928-1945) also represented only 4% of buyers.

We’d love to hear from you

Any questions, comments, or feedback? Contact us any time.

Thank you,

Kerstin ☼ Krisanne

Brooks & Heinze Team

at Skyline Properties, Inc.

Kerstin Brooks: 206.276.5827

Krisanne Heinze: 206.920.2541

Email: info@propertyinseattle.com

Web: www.propertyinseattle.com

Brooks & Heinze Seattle Real Estate Team – June 2023 Newsletter 


Market Update

Residential market inventory has gone up slightly. Home buyers found the largest selection of listings last month since December. Both pending sales and closed sales reached their highest volume in months. However, inventory is still critically low and sales volumes are down 30% from last year.

Many buyers are wondering if it makes sense to buy or if they should wait for lower rates? We don’t have a crystal ball but we don’t expect rates to go down or at least not significantly. Mortgage rates in June have seen little ups and downs but they haven’t moved much. Inflation is getting under control which is great news for interest rates and we hope that means mortgage rates won’t go up but we’ll have to watch what the future holds.

Commercial Real Estate Market

There is a potential threat to the commercial real estate market.  About $1.5 trillion in commercial mortgage debt is due by the end of 2025, but steeper borrowing costs, coupled with tighter credit conditions and a decline in property values brought on by remote work, have increased the risk of default of commercial properties. Even before the collapse of Silicon Valley Bank and Signature Bank in early March, the commercial real estate market was struggling with a number of challenges, including higher interest rates and waning demand for office space as more companies allow employees to continue work from home.

Interesting stats: “Home Alone”

Over a quarter (27.6%) of all U.S. occupied households were one-person households in 2020, up from just 7.7% in 1940, according to 2020 Census data. The share of people living alone increased every decade from 1940 to 2020. The largest increase happened between 1970 and 1980, when the share increased from 17.6% to 22.7%.

We’d love to hear from you

Any questions, comments, or feedback? Contact us any time.

Thank you,

Kerstin 🌷 Krisanne

Brooks & Heinze Team

at Skyline Properties, Inc.

Kerstin Brooks: 206.276.5827

Krisanne Heinze: 206.920.2541

Email: info@propertyinseattle.com

Web: www.propertyinseattle.com

Brooks & Heinze Seattle Real Estate Team – April 2023 Newsletter


April 14, 2023

Market Update

The “Best Time to Sell” nationwide, according to Realtor.com, is the week of April 16-22. We certainly agree that spring, particularly late April through mid-June has historically been a great time in the Seattle area to put your home on the market and find a suitable buyer for your home.

The real estate market started a little slow this year and inventory was particularly low in January and February but in March we started seeing the listing numbers moving in a more positive direction and finally giving buyers some more selection. At the end of March, there were 8,007 active listings in the MLS database, up about 10.7% from February’s selection. We are seeing more inventory every day now hit the market. Open house activity is also up, showing that buyers are actively searching.  

Home buyers have shown they are very rate sensitive and are paying close attention to monthly mortgage payment amounts. According to Mortgage News Daily the national average for a 30 year and 15 year fixed interest rate ended the week at 6.39% and 5.87% respectively.

Home prices are holding steady but we are headed into the time of year where values usually rise.  

40-year Mortgages

The Federal Housing Administration recently gave the OK to 40-year mortgages. It’s a move designed to try and make it easier for first-time home buyers to get into a home as it lowers monthly payments which have been rising as mortgage rates went up. It might help some buyers get into a house. However, the trade-off is that a 40-year mortgage (compared to the more traditional 30-year mortgage) adds an extra 10 years of interest.

Property Taxes Due

Property taxes in the State of Washington are paid in two separate installments and are based on the calendar year as follows:  The first installment is due on April 30th and becomes delinquent on May 1st. This payment covers the tax period from January 1st through June 30th. The second installment is due on October 31st and becomes delinquent on November 1st. This payment covers the tax period from July 1st through December 31st.  In most cases, if you have a mortgage on your home, your lender will be making your payment on your behalf from the escrow payments they have been collecting from you with your monthly payment.

We’d love to hear from you

Any questions, comments, or feedback? Contact us any time.

Thank you,

Kerstin 🌷 Krisanne

Brooks & Heinze Team

at Skyline Properties, Inc.

Kerstin Brooks: 206.276.5827

Krisanne Heinze: 206.920.2541

Email: info@propertyinseattle.com Web: www.propertyinseattle.com

Brooks & Heinze Seattle Real Estate Team


March 2023 Newsletter

Market Update

It’s a seller’s market. At the end of last month, the Northwest Multiple Listing Service report shows only 1.7 months of supply. While that’s an improvement from a year ago when there was only about 0.7 months of supply (about three weeks), it is down from January’s total of about 2.5 months. A supply of four-to-six months is considered a balanced market, according to the National Association of Realtors and other industry watchers.

Both inventory and interest rates are worrisome for some buyers who are staying on the sidelines BUT there are plenty of buyers who are motivated and willing and able to buy, absorbing limited inventory of turn-key homes in good condition quickly.  However, most buyers remain apprehensive about homes with deferred maintenance or bigger issues.

There are two factors that are keeping current homeowners from selling and keeping existing-home inventory historically low: 1) rate-locked existing homeowners (they don’t want to give up low rates on their current home or can’t afford higher rates on a new home) and 2) the fear of not finding something to buy because there is little inventory on the market. The result, inventory shortages are getting worse.

Mortgage Rates

According to Mortgage New Daily the national average for 30-year and 15-year fixed mortgages finished the week at 6.76% and 6.25% respectively.

Contractor Recommendations

Have you worked with a contractor recently who did a fantastic job for you? Would you refer them? We have worked with some stellar, experienced contractors in the past but during the pandemic, some retired and some moved away. Many of our clients need contractors to get their home ready for the market so we are always looking for good contractors that provide the following services: interior/exterior painting, yard maintenance, pressure washing, gutter cleaning, handyman services, home cleaners, carpet cleaners, etc. Send us their info!

We’d love to hear from you

Any questions, comments, or feedback? Contact us any time.

Thank you,

Kerstin 🌷 Krisanne

Brooks & Heinze Team

at Skyline Properties, Inc.

Kerstin Brooks: 206.276.5827

Krisanne Heinze: 206.920.2541

Email: info@propertyinseattle.com

Web: www.propertyinseattle.com

Brooks & Heinze Seattle Real Estate Team – February 2023 Newsletter 


Market Update

We are in a seller’s market. In some select markets we are seeing bidding wars but nothing near as frantic as last year. However, in some markets, houses are still sitting a little longer before they sell and there are still price reductions happening.

As a seller, it is really important to price your home right for the demand in your neighborhood and the type of property you are selling. Also, if your home isn’t in tip-top shape and has a lot of deferred maintenance, expect buyers to pass on your home.

Buyers are very picky and cautious.  Buyers have more time to find the home they want than last year and have some negotiating power, but they are facing competition from other buyers as inventory remains low.

Cool app / website 

The desktop app and mobile web app “Seattle in Progress” track what is being built in Seattle. Some features require a subscription. Users can find both proposed projects and under construction projects, view 3D architectural renderings, and learn how to help shape development in their neighborhood. A calendar lists upcoming design review meetings. It covers both proposed and permitted commercial and residential construction in the city of Seattle from the first day of permit application until construction is completed. Projects in the pipeline can be searched by type, size, permitting status, architect, developer, and other criteria. https://www.seattleinprogress.com/

We’d love to hear from you

Any questions, comments, or feedback? Contact us any time.

The start of the Spring Market, which is usually the busiest time in the real estate market, is only a month away. It’ll be interesting to see what the market has in store for our clients this year.

Thank you,

Kerstin ❄ Krisanne

Brooks & Heinze Team at Skyline Properties, Inc.

Kerstin Brooks: 206.276.5827 & Krisanne Heinze: 206.920.2541

Email: info@propertyinseattle.com

Web: www.propertyinseattle.com

Brooks & Heinze Seattle Real Estate Team – January 2023 Newsletter


Market Update

In the last quarter of 2022 we saw a slow down in the real estate market. Market times for homes went up and some sellers dropped list prices to attract buyers who weren’t exactly willing to rush in due to higher financing costs and economic uncertainty. In January, we saw little available inventory of homes for sale. This is a combination of very few new listings hitting the market and a slight uptick in demand from buyers. The low market supply is helping prices stay stable. In recent weeks, borrowing costs have eased.

Mortgage Rates

The average rate on a 30-year fixed mortgage is 6.51%, according to Bankrate.com, while the average rate on a 15-year mortgage is 5.70%. On a 30-year jumbo mortgage, the average rate is 6.55%, and the average rate on a 5/1 ARM is 5.37% (as of Jan. 31, 2023).

Remember, rates change all the time and depend on many factors such as loan program, credit score, debt-to-income ratio, etc., so get a preapproval and loan estimate from your lender.

Increase in Mortgage Applications

The housing market usually doesn’t blossom until spring so it is too early to predict a trend for this year.  However, mortgage brokers are seeing more requests for pre-approvals which is a great sign that there are more people thinking about buying in the coming months and this perhaps points towards a good spring market in the Seattle area.

We’d love to hear from you

Any questions, comments, or feedback? Contact us any time.

We are looking forward to what the housing market has in store for 2023 and all the new opportunities it will bring with it!

Thank you,

Kerstin ❄ Krisanne

Brooks & Heinze Team

at Skyline Properties, Inc.

Kerstin Brooks: 206.276.5827

Krisanne Heinze: 206.920.2541

Email: info@propertyinseattle.com

Web: www.propertyinseattle.com

Brooks & Heinze Real Estate Team – Year End Newsletter


Brooks & Heinze Seattle Real Estate Team – December 2022 / Year End Newsletter

Market Update

What a year it’s been in real estate. As 2022 is wrapping up we look back at the changes this year has brought and look ahead at what 2023 might look like.

2022 – We started 2022 at all-time inventory lows, forcing intense buyer bidding wars until mortgage rates rose from 2.5% to over 6+% in a matter of just a few months and took the fire out of the market. Buyers waived inspection and other contingencies and made offers well above asking the first quarter of the year. As mortgage rates moved up, multiple offers subsided and buyers once again were able to negotiate fair prices and do their due diligence rather than rush into a risky purchase. Sure, there has been a decent price correction but for buyers who had hoped for a major crash before committing to a purchase this year, their hopes did not come true in 2022. In recent weeks, mortgage rates took a slight downward trajectory, as softer inflation data was reported.  The good news for the housing market is that recent declines in rates have helped in reducing financing costs, however, buyer demand remains weak in the face of affordability hurdles that are still quite high.

2023 – Is the coming year a good time to buy or sell? Many homeowners are in good financial shape and have a lot of equity in their home. These homeowners will likely stay put rather than sell in the shifting market BUT some homeowners may need to sell. Those who are negatively impacted by the economy (i.e, job loss, inflation) or personal hardships (i.e., health crisis, divorce, death) might have a tough time making ends meet and have to sell their property quickly. Such sellers who have little equity, might even contribute to us seeing short sales or foreclosures again. 2023 might not turn out to be a buyer’s market, but we are sure buyers will have more negotiation leverage with a seller than in 2022.

Probably the most accurate real estate predictions that can be made is that nobody will be able to accurately predict what will happen to the real estate market and that only time will tell because there are so many factors involved, such as mortgage rate changes, new and continued unemployment claims, inflation, world economic events, just to name a few. 

Conforming Loan Limits Rise for 2023

The Federal Housing Finance Agency (FHFA) raised conforming loan limits for 2023. The maximum conforming loan limit for one-unit properties in most parts of the U.S. is now $726,200, up from $647,200 in 2022. In high-cost areas, the ceiling loan limit for one-unit properties is $1,089,300. The limit in Seattle is $977,500. The conforming loan limit is the maximum amount you can borrow on a loan backed by Fannie Mae or Freddie Mac. Loans that adhere to Fannie and Freddie’s requirements are an attractive option for buyers because they are typically easier to qualify for and may offer lower interest rates. With the new, higher limits, more borrowers will be able to qualify for a conforming loan and take advantage of the increased purchasing power.

We’d love to hear from you

Any questions, comments, or feedback? Contact us any time.

We are looking forward to what the housing market has in store for 2023 and all the new opportunities it will bring with it!

Happy Holidays,

Kerstin ❄ Krisanne

Brooks & Heinze Team

at Skyline Properties, Inc.

Kerstin Brooks: 206.276.5827

Krisanne Heinze: 206.920.2541

Email: info@propertyinseattle.com

Web: www.propertyinseattle.com