Matthew Gardner’s Top 10 Housing Predictions for 2024


This video shows Windermere Chief Economist Matthew Gardner’s Top 10 Predictions for 2024. Each month, he analyzes the most up-to-date U.S. housing data to keep you well-informed about what’s going on in the real estate market. See more market insights on our blog here. 


Matthew Gardner’s Top 10 Predictions for 2024

1. Still no housing bubble

This was number one on my list last year and, so far, my forecast was spot on. The reason why I’m calling it out again is because the market performed better in 2023 than I expected. Continued price growth, combined with significantly higher mortgage rates, might suggest to some that the market will implode in 2024, but I find this implausible.

2. Mortgage rates will drop, but not quickly

The U.S. economy has been remarkably resilient, which has led the Federal Reserve to indicate that they will keep mortgage rates higher for longer to tame inflation. But data shows inflation and the broader economy are starting to slow, which should allow mortgage rates to ease in 2024. That said, I think rates will only fall to around 6% by the end of the year.

3. Listing activity will rise modestly

Although I expect a modest increase in listing activity in 2024, many homeowners will be hesitant to sell and lose their current mortgage rate. The latest data shows 80% of mortgaged homeowners in the U.S. have rates at or below 5%. Although they may not be inclined to sell right now, when rates fall to within 1.5% of their current rate, some will be motivated to move.

4.Home prices will rise, but not much

While many forecasters said home prices would fall in 2023, that was not the case, as the lack of inventory propped up home values. Given that it’s unlikely that there will be a significant increase in the number of homes for sale, I don’t expect prices to drop in 2024. However, growth will be a very modest 1%, which is the lowest pace seen for many years, but growth all the same.

5. Home values in markets that crashed will recover

During the pandemic there were a number of more affordable markets across the country that experienced significant price increases, followed by price declines post-pandemic. I expected home prices in those areas to take longer to recover than the rest of the nation, but I’m surprised by how quickly they have started to grow, with most markets having either matched their historic highs or getting close to it – even in the face of very high borrowing costs. In 2024, I expect prices to match or exceed their 2022 highs in the vast majority of metro areas across the country.

6. New construction will gain market share

Although new construction remains tepid, builders are benefiting from the lack of supply in the resale market and are taking a greater share of listings. While this might sound like a positive for builders, it’s coming at a cost through lower list prices and increased incentives such as mortgage rate buy downs. Although material costs have softened, it will remain very hard for builders to deliver enough housing to meet the demand.

7. Housing affordability will get worse

With home prices continuing to rise and the pace of borrowing costs far exceeding income growth, affordability will likely erode further in 2024. For affordability to improve, it would require either a significant drop in home values, a significant drop in mortgage rates, a significant increase in household incomes, or some combination of the three. But I’m afraid this is very unlikely. First-time home buyers will be the hardest hit by this continued lack of affordable housing.

8. Government needs to continue taking housing seriously

The government has started to take housing and affordability more seriously, with several states already having adopted new land use policies aimed at releasing developable land. In 2024, I hope cities and counties will continue to ease their restrictive land use policies. I also hope they’ll continue to streamline the permitting process and reduce the fees that are charged to builders, as these costs are passed directly onto the home buyer, which further impacts affordability.

9. Foreclosure activity won’t impact the market

Many expected that the end of forbearance would bring a veritable tsunami of homes to market, but that didn’t happen. At its peak, almost 1-in-10 homes in America were in the program, but that has fallen to below 1%. That said, foreclosure starts have picked up, but still remain well below pre-pandemic levels. Look for delinquency levels to continue rising in 2024, but they will only be returning to the long-term average and are not a cause for concern.

10. Sales will rise but remain the lowest in 15 years

2023 will likely be remembered as the year when home sales were the lowest since the housing bubble burst in 2008. I expect the number of homes for sale to improve modestly in 2024 which, combined with mortgage rates trending lower, should result in about 4.4 million home sales. Ultimately though, demand exceeding supply will mean that sellers will still have the upper hand.

 


About Matthew Gardner

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

U.S. Housing Market 2023: Updated Analysis

Windermere Chief Economist Matthew Gardner gives an updated analysis of the U.S. housing market in 2023, using data released by The National Association of REALTORS® on listing activity, home sales, price growth, and more.

This video is the latest in our Monday with Matthew series with Windermere Chief Economist Matthew Gardner. Each month, he analyzes the most up-to-date U.S. housing data to keep you well-informed about what’s going on in the real estate market.



U.S. Housing Market 2023

Hello there, I’m Windermere Real Estate’s Chief Economist Matthew Gardner and welcome to this month’s episode of Monday with MatthewThe National Association of REALTORS® released their data on the U.S. housing market in August, and it contained a few things which I found interesting and wanted to share with you.

Listing Activity

A triple line graph showing the inventory of homes for sale in the U.S. from 2000 to 2023, U.S. single-family homes for sale from 2013 to 2023, and U.S. condo/co-op homes for sale from 2013 to 2023. All three graphs show a downward trend from the mid-2010s to 2023.

 

As you can clearly see here, the number of homes for sale remains at close to historic lows. When adjusted for seasonality, there were just 1.03 million single-family and condominium homes for sale in the month of August, and that’s down 8.3% from a year ago and the second lowest level in 2023. When adjusted for seasonal variations, there were just over 911,000 single-family homes for sale in the month, that’s 15% lower than a year ago and 36% below August of 2019. And the condominium market is not faring any better with just over 123,000 units available for purchase, listing activity was down year-over-year by just over 9%.

Homes for Sale August 2023

A bar graph showing homes for sale in August from 2000 to 2023. Supply topped out in 2006 and 2007 at around nearly 4 million, before declining steadily to 2023, where supply is just over 1 million.

 

And to give you a little different perspective, this chart shows you the total number of units for sale in the month of August going back more than 20 years and I think it gives a pretty good indication as to how tight the U.S. housing market really is.

Now, we’ve talked before about the reasons why supply is so limited, and the blame is almost totally attributable to mortgage rates with sellers remarkably reluctant to move because that would mean losing the historically low mortgage rate that they currently benefit from. And as the old saying goes, “you can’t buy what’s not for sale,” and this is certainly true in the housing market today.

U.S. Housing Market 2023: Sales Activity

A triple line graph showing existing U.S. home sales from 2000 to 2023, U.S. single-family home sales from 2013 to 2023, and U.S. condo/co-op home sales from 2013 to 2023. All three graphs show a spike between 2020 and 2022 before declining sharply in 2023.

 

With such limited choice in the marketplace, it’s unsurprising to see home sales having plummeted following the pandemic induced surge we saw in 2021. At an annual sales rate of 4.04 million units, that is only 40,000 more than the low seen this January and we are now holding at levels we haven’t seen since 2010. Interestingly, single-family sales did see a little jump at the start of this year, but they have since pulled back—likely a function of rising financing costs, which were getting close to 7% in June.

But the condominium market, while certainly down significantly, appears to be somewhat more resilient. I find this interesting as we have not seen any palpable increase in listing activity for multifamily units.

Home Sale Prices Off All-Time High

A triple line graph showing the median sale price of U.S. Existing Homes from 2000 to 2023, the median sale price of single-family homes from 2013 to 2023, Median sale price of multifamily homes 2013 to 2023. All three show a gradual increase from 2013 to 2022, a peak in 2022, with the 2023 numbers being just below that peak.

 

When prices started to fall in the summer of 2022, many expected to see them continue to plunge in a manner similar to that seen following 2007 collapse, but that has certainly not been the case. Sale prices have rebounded and remain remarkably resilient—especially given significantly higher financing costs.

  • Although we did see a small drop in home prices between June and July of this year, U.S. home prices are only 1.6% below their 2022 peak; they’re up 3.9% year over year; and up by 11.1% from the start of 2023.

Single-family home prices paint a similar picture with prices down by 1.8% from peak; but up 3.7% year over year, and up 11.2% from the start of the year. Interestingly, sale prices in the Northeast were actually 3.5% higher in August than their 2022 peak. And condominium prices are just 0.1% below the high seen in June of last year. Prices are now up 6.2% year over year and are 11.6% higher than we saw at the end of 2022.

Now, of course the data shown here is unlikely to reflect the recent surge in mortgage rates so it will be interesting to see what impact that has not just on sales but sale prices when the September and October data is published.

My intuition suggests that—even with mortgage rates where they are today—as long as they don’t move significantly higher, prices at the national level are unlikely to collapse. But I do see sales volumes pulling back further as listing activity remains very constrained.

Price Growth vs Payment Growth

A double line graph showing price growth vs mortgage payment from Jan 2016 to July 2023. In 2023, mortgage payment growth sits at 26.5% while price growth is at 3.9%.

 

This chart shows a different way to look at the impact that mortgage rates are having on the market. The dark blue line shows year-over-year home price growth, and the light blue line shows the 12-month change in average mortgage payments.

Although we did see that annual growth in mortgage payments fall to just 10% in June of this year—the first time we have seen that since 2021—it has subsequently jumped back up. This means that a buyer of a median priced house in the U.S. is faced with payments that are 26 and a half percent higher than they were 12 months ago. At the same time, home price growth has stalled.

As I’ve mentioned in several past videos, I find it unlikely that inventory levels will increase significantly in 2023, and I also believe that supply will be constrained next year as well as rates remain at elevated levels.

As we know, it is this lack of inventory that has helped to support home prices; however, there is a breaking point. 10-year bond yields are holding at multi-year highs and do not appear to be thinking of pulling back at any time soon—especially given new bond issuances that the country is going bring to market in order to address our burgeoning debt levels.

And it’s because of this that I now expect to see rates remaining higher for longer, and the question then becomes how much tolerance will buyers have if mortgage rates hold where they are today or if they head closer to 8%.

Although I am not expecting this to happen, it is possible. And if it does, then sales will fall further and the underpinning of price stability will certainly be eroded. And there you have it. As always, I’d love to hear your thoughts on this subject so feel free to leave your comments below. Until next month, stay safe out there and I’ll see you soon. Bye now.

To see the latest housing data for your area, visit our quarterly Market Updates page.

 


About Matthew Gardner

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

 

❄️ Windermere Whidbey’s Coats for Kids Drive is BACK!

 

We are proud to announce our sponsorship for another year of Coats for Kids!

This Charity is being spearheaded by Paula Peters from our property management division in partnership with the Readiness to Learn Foundation. We are on a mission to ensure no child goes cold this winter on Whidbey Island.

📆 Date: Now through mid-November

Key Highlights:

 

🌟 Six Glorious Years: This marks our sixth annual Coats for Kids drive. Over the past years, we’ve donated an astounding 1,200+ pieces of cold-weather clothing, with a significant majority being essential coats and jackets!

 

📦 Donation Boxes: If you would like to HELP, please drop off NEW coats and boots at our offices in Freeland or Langley through mid November

Freeland Office
360/331-6636 5531
5531 Freeland Avenue

Langley Office
360/221-8898
223 Second Street

 

💌 Distance No Bar: Purchase items online and have items shipped to our offices! Heartwarming support pours in from all corners, including a recent kind donation from a continued supporter in Florida!

 

💵 Monetary Donations: If you’re considering a monetary contribution, please write checks payable to “Readiness to Learn”.

 

Our 2023 Goal:

🎯 100 Coats/Jackets! Alongside, we’ll happily accept rain boots, cozy hats, mittens, gloves, and warm socks.

📲 For our tech-savvy supporters, keep an eye out for our Amazon Wish List. After its success last year, it’s making a comeback!

🙏 When you donate, do let Paula know. Every contributor deserves a heartfelt acknowledgment!

🌈 Donations can range from toddler sizes to adult, and any color is welcome. Just a small reminder, please ensure all donated items are BRAND NEW WITH TAGS.

 

Spread the Word:

🔊 Let’s amplify our reach! Inform your clients, chat with your family, call up your friends, and let’s come together as a community for this noble cause.

Warm Hearts Make Warm Kids! Join us in this heartwarming endeavor and ensure every child on Whidbey Island experiences a cozy winter. Your contribution can make a world of difference! 🧡

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Contact us for more details!

Ready to Drop Anchor on Whidbey Island? Here's Your Guide to Home Buying Preparedness!

Contributed by Si Fisher

Ahoy, future Whidbey Island dwellers! If you're toying with the idea of becoming a homeowner on our scenic slice of paradise, let me provide you with a pun-intended map to help you navigate your readiness.

Financial Sea Legs or Sinking Ship?

Your journey towards homeownership sets sail with a keen look at your financial ship-shape. Can you smoothly ride the waves of monthly mortgage payments, property taxes, not to mention other hidden costs of homeownership like a seasoned sea captain? If your answer is a confident 'Aye', your ship is ready to set sail. If you're spotting some leaks, it's best to fix up the breaches first. As a Whidbey Island Real Estate Specialist, I can help you navigate these turbulent waters and ensure your journey to homeownership isn't marred by unseen icebergs. I can introduce you to one of my trusted local lenders to get a solid plan in action, charting the course to your future home.

 

Want to talk with one of my preferred lenders?

Drop me a message and I will get you connected.

 

Career: Anchored Steadfast or Floating Adrift?

Is your career/retirement securely docked or are you still sailing towards new job horizons? If your voyage to Whidbey Island is tied to job opportunities, it's essential to ensure your employment is as steadfast as a lighthouse amidst a storm before plunging into the house-hunting depths. Remember, the stability of your income will act like a compass that will point towards the amount and type of mortgage you can qualify for.

Whidbey Island: More Than an Island, It's a Way of Life

Acquiring a home is more than just purchasing four walls and a roof; you're docking into a vibrant community. Consider whether the neighborhood aligns with your lifestyle – schools, local amenities, and let's not forget the quality of those soul-soothing sunset views!

 

Your Navigation Map: In-Depth Research

Chart your course wisely. Before embarking on your home-buying voyage, delve into the depths of the Whidbey Island real estate market. Understanding different types of homes, neighborhoods, and current market trends are essential. No need to be a lone sailor lost at sea; a Whidbey Island Realtor can steer you in the right direction, providing the guidance and insight you need.

 

For the keen explorers among you, get my monthly real estate market report delivered directly to your inbox, tailored for your preferred zip code – just click here!

 

 

Are You Ready to Embark? Here is Your Voyage Checklist!

To better steer your course towards home ownership on Whidbey Island, consider these additional steps:

  • Down Payment Savings: Consider this your life raft in the sea of homeownership. A more substantial down payment can lead to more favorable mortgage terms.
  • Financial Tidying: Buff up your credit score and pay down outstanding debts. These steps are like ensuring your vessel is shipshape before you set sail.
  • Mortgage Pre-Approval: Get pre-approved for a mortgage before you start house hunting. This will show sellers that you are a serious buyer and that you have the financial means to purchase a home.
  • Lightning-Fast Decision Making: The Whidbey Island real estate market is currently still moving fast when it comes to well priced highly desired inventory. Be prepared to drop anchor and make a swift offer when you spot your dream island retreat.

Chart Your Course with a Whidbey Island Specialist

Enlisting a Whidbey Island Realtor is like having an experienced navigator to ensure your voyage to homeownership is as smooth as a calm sea breeze:

  • Local Market Expertise: With the Whidbey Island housing market mapped out like an old sea chart, I can help you locate your perfect home within your budget and negotiate a deal that will have you exclaiming, "Shiver me timbers!"
  • Community Connections: Your Realtor's network of local professionals, such as lenders, appraisers, inspectors, and more, acts like a crew ready to streamline your home-buying process.
  • Peace of Mind: Buying a home can sometimes feel like navigating through a storm, but a reliable Realtor can provide the steadying hand on the helm that you need.  The value of peace of mind and a steady hand to help cannot be overstated.

So, are you ready to drop anchor at Whidbey Island? Reach out to a Whidbey Island Specialist today. We're ready to guide you through the exciting journey to homeownership and help make your dream of island living a reality. Onwards to your future Whidbey Island home, sailor!

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Contact a local expert to get expert advice about selling your home

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What is a Buyer's market? - How to navigate the real estate market on Whidbey Island

Contributed by Si Fisher

If you're considering selling a home on Whidbey Island, understanding the dynamics of the real estate market is paramount. This guide aims to elucidate the concept of a buyer's market and how to navigate the ebbs and flows of the Whidbey Island real estate market.
Our geographical focus extends across all of Whidbey Island, including ClintonLangleyFreelandGreenbankCoupeville, and Oak Harbor

Deciphering the Buyer's Market

A buyer's market occurs when the number of homes for sale exceeds the number of potential buyers. This scenario often leads to buyers dictating the terms, which can result in more competitive prices and longer periods on the market for sellers. Understanding this fundamental concept can influence your approach when selling a home on Whidbey Island.

 

 

Navigating the Whidbey Island Real Estate Market

Given that market conditions can significantly impact your home buying/selling experience, partnering with a trusted Whidbey Island Realtor, well-versed with the Whidbey Island real estate trends, can be beneficial. They can provide vital knowledge and strategies to successfully navigate the local market.

Is Whidbey Island currently in a Buyer's or Seller's Market?

Assessing whether Whidbey Island is a buyer's or seller's market can be a complex process. The answer often depends on specific areas and can vary between Langley, Clinton, Freeland, Greenbank, Coupeville, or Oak Harbor real estate markets. A seasoned Whidbey Island Specialist can help you understand the unique market conditions of these locations. As of writing this article (6/29/23), Whidbey Island as a whole is still in a seller’s market, but not as heavily as during its peak a little more than a year ago.

Check out this week's Whidbey Island real estate stats!

 

The Role of a Whidbey Island Realtor

A local Whidbey Island Realtor can help determine the current market status. This assessment can be made based on a variety of factors including the number of homes for sale, average days on the market, and selling prices compared to listing prices.
If you're interested in learning more about the real estate market trends on Whidbey Island, or if you're considering selling your home, don't hesitate to reach out. Working with a Whidbey Island Specialist can provide you with the most accurate, up-to-date information, and the essential guidance needed to achieve your real estate goals. Reach out today and navigate your home selling journey with confidence.

 

Ready to take the leap and make your real estate goals a reality?

Contact your local Whidbey Island Realtor® today and let them help you navigate this seller's market, ensuring your real estate goals are met. Don't miss the opportunity to take advantage of the current seller's market or to prepare for a potential buyer's market in the future. We're here to help!

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Contact a local expert to get expert advice about selling your home

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What is a Sellers' market? - How to navigate the real estate market on Whidbey Island

Contributed by Si Fisher

In the beautiful locale of Whidbey Island, including Clinton, Langley, Freeland, Greenbank, Coupeville, and Oak Harbor, the real estate scene can fluctuate. Even though the market has slowed since 2021 & 2022, currently in 2023 we are seeing low inventory, moderately fewer days on market, and the pace is picking up.

 

What is a Sellers' Market?

In simple terms, a real estate sellers' market is where the demand for homes outweighs the supply. This condition tends to favor home sellers over buyers, creating a competitive environment that can result in bidding wars and homes selling above their listing price.

 

Are you wondering, "Is it a buyers' market or sellers' market?"

So far in 2023, Whidbey Island is still in a sellers' market. This makes it the ideal time for homeowners to consider selling their properties. Check out this weeks stats by clicking here for more details.

What does this mean for Homebuyers?

In a sellers' market, buying a home or buying an investment property can seem daunting. Homes are often sold swiftly, and buyers need to be prepared to make competitive offers. If you're a prospective homebuyer on Whidbey Island, understanding the dynamics of a sellers' market is crucial.

 

How do you navigate a sellers' market?

So, how can you navigate this sellers' housing market, whether you're looking to buy or sell? The key is partnering with a Whidbey Island Realtor® who is a specialist in the Whidbey Island real estate market. Someone who lives and works here. Within Windermere Whidbey we have a variety of brokers who have a deep understanding of the local market conditions and the expertise to guide you through the process.

 

In this sellers' market, working with a Whidbey Island Specialist can mean the difference between getting your dream home or selling your property at an optimal price. Their guidance can help you understand the market trends, whether it's a real estate buyers' market or sellers' market, ensuring you make informed decisions.

 

Remember, every housing market has its own unique trends and patterns, and the current sellers' market on Whidbey Island is no exception. So, whether you're looking to sell or buy a home in Freeland, Langley, or any other beautiful town on Whidbey Island, seeking professional advice from a local expert can make a world of difference.

 

Ready to take the leap and make your real estate goals a reality?

Contact your local Whidbey Island Realtor® today and let them help you navigate this sellers' market, ensuring your real estate goals are met. Don't miss the opportunity to take advantage of the current sellers market or to prepare for a potential buyers' market in the future. We're here to help!
Remember to bookmark this page and check back regularly for updates on the Whidbey Island housing market. We'll keep you informed, whether it's a buyers' or sellers' market, so you can make the best decision for your real estate needs.

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Contact a local expert to get expert advice about selling your home

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10 Costs Associated with Selling Your Home on Whidbey Island

Contributed by Si Fisher

Are you considering selling your home or property on Whidbey Island? It's essential to understand the costs associated with selling your home before you list it. Here at Windermere Whidbey, we are experts in helping people sell their homes in the Whidbey Island area, including Langley, Clinton, Freeland, Greenbank, Coupeville, and Oak Harbor. In this article, we will go over the costs associated with selling a home on Whidbey Island and provide you with valuable information to help you make informed decisions.

 

1. Brokerage Fees

Business Agreement Whidbey Island Real Estate

One of the costs when selling a home is the compensation paid to your real estate agent. The compensation rate is most commonly a percentage of the sale price of the home, but this rate may vary depending on the real estate agent you work with. At Windermere Whidbey, we offer the highest quality in professional services, and our experienced agents will guide you through the entire process of selling your home.

 

2. Closing Costs

Whidbey Island Selling a Home Closing Costs

Closing costs are fees associated with the closing of your home sale. These fees may include title insurance, escrow fees, appraisal fees, and attorney fees. Closing costs can add up to 2-3% of the sale price of your home.

 

3. Home Repairs and Maintenance

Whidbey Island Home Repairs Costs

Before listing your home, it's essential to make necessary repairs and do some maintenance to increase the value of your home. Some repairs may include fixing plumbing or electrical issues, updating appliances, or painting. These repairs can cost anywhere from a few hundred dollars to several thousand dollars, depending on the extent of the repairs needed.  Find an experienced real estate agent in your market who can advise you on the repairs that are going to net you the best return on investment and that will help get your home sold in your preferred timeline.

 

4. Home Staging and Cleaning

Whidbey Island Home Staging and Cleaning Costs

A well-staged and clean home can significantly increase the chances of selling your home quickly and at a higher price. Professional home staging services can cost anywhere from $500 to $5,000. Professional cleaning services can cost between $100 to $500, depending on the size of your home.  A local Windermere Whidbey broker can easily setup a consultation with their preferred stagers on the island.

 

5. Home Inspection

Whidbey Island Home Inspection Costs

A pre-inspection of your home is something you may want to consider having done before listing your home to identify any issues that need to be fixed before the sale. Having this done can prevent any major surprises during a transaction that may cause it to fail or put you at a disadvantage in negotiations.  If you have a sale fail, it can be damaging to the value of your home and effect your preferred sale timelines.   A home inspection can cost anywhere from $400 to $1,000, depending on the size of your home, and any ancillary services that potentially need to be added.  Typically the standard "Full Home Inspection" packages are sufficient as a prelisting inspection and range from $400-500 for most homes.

 

6. Property Taxes

Whidbey Island Property Taxes

Property taxes are typically paid through the end of the year, and you may be required to pay a prorated amount for the time you owned the home during the year. Property taxes can be up to 1% of the sale price of your home.

 

7. Capital Gains Tax

Whidbey Island Capital Gains

If your home has increased in value since you purchased it, you may be required to pay capital gains tax. However, if you have lived in the home for at least two of the past five years, you may be exempt from paying capital gains tax up to $250,000 if you are single and $500,000 if you are married.

 

8. Moving Costs

Whidbey Island Moving Costs

Moving costs can add up quickly, especially if you are moving to a new city or state. The cost of moving depends on several factors, including the distance, the size of your home, and the amount of belongings you need to move.

 

9. Homeowner Association Fees
home owners association fees whidbey island

If you live in a community with a homeowner association, you may be required to pay fees associated with selling your home, such as transfer fees or disclosure fees.   Depending on the transaction negotiations you may be on the hook for paying off any levied assessment fees, and in rare cases contributing to pending assessments projected costs as well.  It's important to work with a local broker who will not only help you navigate these concerns prior to listing, but also negotiate on your behalf once your property is under contract.

 

10. Miscellaneous Fees

Whidbey Island Miscellaneous Fees

In addition to the fees mentioned above, you may also encounter other fees associated with selling your home on Whidbey Island, such as home warranty fees or home inspection repair costs. It's important to budget for these additional fees to avoid any unexpected expenses during the home selling process.

Septic and well inspections are two other things that often are important to look at especially on Whidbey Island.  These can be conducted prior to listing giving you an opportunity to make any corrections needed, paving the way for a smooth transaction and allowing you to attract the largest buyer pool.  If you opt not to have these done prior to listing it may cause bumps in the road leading to a sale fail, or a disadvantaged position during negotiations.  An experienced local broker is going to be your best advisor on these matters when making an informed decision on how to proceed.

Another aspect that shouldn't be overlooked is the importance of curb appeal. The first impression that your home makes on potential buyers is crucial, and the exterior of your home plays a significant role in that impression. A well-maintained and aesthetically pleasing landscape can significantly increase the value of your home and attract potential buyers.

However, landscaping costs can vary widely depending on the size of your yard and the amount of work required. Some landscaping costs may include lawn care, tree trimming, mulching, and planting flowers. It's important to budget for these costs to ensure that your home looks its best and stands out from the competition.

At Windermere Whidbey, we understand the importance of presenting your home in the best possible light. Our experienced agents can provide you with valuable advice on how to improve your home's curb appeal and maximize its value. Contact us today to schedule a consultation with a Whidbey Island specialist and start the process of selling your home with confidence.

 

Contact a Windermere Whidbey Real Estate Agent Today

Windermere Whidbey is a full-service real estate company with over 50 years of experience in the Washington real estate market. We have a team of experienced real estate agents who can help you sell your home for the best possible price. Contact us today to learn more about our services and how we can help you sell your home.

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Contact a local expert to get expert advice about selling your home

How to Determine the Best Time to Sell

Your Whidbey Island Home

Contributed by Si Fisher

Selling a home is a big decision, and timing is crucial. If you're looking to sell your home on Whidbey Island, you'll need to consider the local housing market, your financial readiness, and finding the right agent. In this guide, we'll walk you through the steps to help you make the best decision for your needs.

 

Ready to Sell?

(Get Your Ducks in a Row!)

Before selling your home, you need to be financially ready. To determine the equity you have in your property and the current market value, you'll need a comparative market analysis (CMA) from a real estate agent familiar with Whidbey Island's unique housing market. You don't want to leave any money on the table by underpricing your home or missing out on potential buyers due to overpricing.

You'll also need to consider the costs of selling, such as brokerage fees, repairs, inspections, and staging. A good agent will help you budget for these expenses, and determine what things are the most important so you're not caught off guard. Additionally, selling your home can be an emotional experience, and it's essential to ensure you and your household are prepared for the changes that come with the process.

 

Local Market Conditions

(What's the Scoop on Whidbey Island?)

Whidbey Island's real estate market is unique, and timing is everything. Factors such as seasonality, inventory, mortgage rates, and home price growth can affect the local housing market's state. To make the best decision for selling your home, you'll need to consult with an experienced real estate agent familiar with Whidbey Island's market conditions.

Our island's housing market is continually changing, and staying up to date on the latest trends and statistics can give you a competitive edge.  The island's location, natural beauty, and vibrant community make it a sought-after location for homebuyers.

 

Find the Right Agent

(We're More Than Just Pretty Faces!)

Choosing the right agent is vital to a successful home sale. An experienced real estate agent will help you understand your selling goals and how to achieve them. They can provide valuable insights into Whidbey Island's unique housing market, help you price your home correctly, and market it effectively to reach the right buyers.

Don't settle for just any agent! Take the time to interview multiple agents, ask for referrals, and choose the one that aligns with your needs. At Windermere Whidbey, we pride ourselves on our extensive knowledge of Whidbey Island's real estate market, our attention to detail, and our personalized approach to each client.

 

 

Contact A Windermere Whidbey Agent

(We're Always Here to Help!)

When you're ready to sell your home on Whidbey Island, contact an experienced Windermere Whidbey agent. We'll work with you to understand your needs, assess your financial readiness, and develop a selling strategy that maximizes your profit. Our agents are familiar with Whidbey Island's unique market conditions and can provide valuable insights to help you make informed decisions.

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Contact a local expert to get expert advice about selling your home

How to save $100s on your monthly mortgage payment

When buying a home on Whidbey Island

Contributed by Si Fisher

As a Whidbey Island homebuyer, you may be searching for affordable housing and having a rough go at it. Mortgage rates are much higher now than they were last year, and this could mean several hundred dollars more a month when looking at a potential mortgage in your desired price point.

 
 

Luckily, today I am going to share with you a program that can help reduce your monthly mortgage payment by hundreds of dollars.

 
 

At this point you are probably thinking, “What wizardry is this?” Well, the magic all has to do with mortgage buydowns, and more specifically I want to talk about what some sellers are doing to make their homes more appealing and affordable to potential buyers looking on Whidbey Island.

What Is A Buydown On A Mortgage?

Most lenders when originating a loan will have an option for the borrower to purchase something called discount points (also referred to as mortgage points, or prepaid interest points).  Essentially it is a prepaid fee that allows you to buy down the interest rate on your loan and thereby lower your monthly payment for the entire duration of the loan.

 

In a different type of buydown, the points purchased at the start of the loan lower the interest rate for a specific period of time. As mentioned above we are now seeing sellers offer to pay for these shorter term buydowns to make their home more affordable to a larger number of buyers.  The most common one we are seeing now is called the 2/1 buydown.  

Contact a local expert about financing your next home

The 2/1 Mortgage Buydown Program

The 2/1 Mortgage Buydown allows a borrower to lock in an interest rate 2% lower than the current rate for the first year, and then 1% lower for the second year of the loan.  After that the loan defaults back to what the current rate was at the time of the loan origination.  Let’s look at an example of how this works.

 

Let’s say you are looking at a home for $600,000.  You plan on making a 20% down payment, leaving $480,000 that needs to be financed.  Observe the chart below:

$609 dollars/month savings for the borrower during the first year!!!

 

Okay let’s break it down. If a borrower was financing their $480K loan at today’s rate of about 6.75% their monthly payment would be $3,113.27/month. When using this 2/1 buydown program their rate drops to 4.75% for the first year, and 5.75% for the second year. This lowers the monthly payments during that time to $2,503.91 and $2,801.15 respectively. After that point your loan goes back to what the original rate would have been if you were not taking advantage of this program. AND, should the interest rates fall during the course of the first two years, you can always refinance to the new lower rate after the buydown period ends.

One additional thing to note is that the borrower would still need to qualify for the loan at the current interest rate, not the buydown rate.

The best part about this is that everybody wins!  The seller gets more potential buyers interested in their home (this can be a lot more enticing and more cost effective than a price reduction), and the buyer gets two years of reduced monthly payments.  If both parties agree, the seller would then pay for the buydown through escrow when the home sale closes. In the example above the seller would pay around $10K depending on a variety of factors. Presto chango!

 

This is just another tool to put in your tool kit and another reason to work with a professional who has a full set of tools!

Article contributed by:

WIG header

WHIDBEY ISLAND GROWN COOPERATIVE

 

“Whidbey Island Grown Cooperative is a group of farmers, small businesses, and community members working to build a strong, resilient local food system on Whidbey Island.”

Did you know you can find locally sourced, fresh products for purchase directly from farms and other producers here on the Island and other local farms?

Whidbey Island Grown Cooperative (WIGC) is an online marketplace for the sale of available farm fresh products to the community.

This innovative system (Food Hub) combines Whidbey’s agricultural richness with easy online shopping and pick-up experience while supporting locally owned and operated businesses, for the common good.

 

Customers can purchase fresh, local, seasonal products online and pick them up at one of four locations in Langley, Coupeville, and Oak Harbor.

 

How to Buy fresh food from local farmers and producers!

 

Friday to Tuesday: Log in to https://whidbeyislandgrown.com/ to purchase fresh, local food and other specialty and holiday items from Whidbey Island producers through WIGC’s online marketplace. Ordering closes on Tuesday at 9 pm.

 

Wednesday-Friday: Farmers and producers prepare their products and drop them at the packing site.

 

Friday: Volunteers pack the orders and distribute them to four stands on the island:

 

3-5 PM in Langley - Whidbey Island Center for the Arts (565 Camano Ave).

 

4-6 PM in Coupeville – Scenic View (formerly Sherman Pioneer Farm - 46 S. Ebey Rd),

 

4-6 PM in Freeland - Mutiny Bay Blues Farmstand (5486 Cameron Rd)

 

4:30-6:30 PM in Oak Harbor - Elks Lodge (155 N Ernst St, next to Flyer's Restaurant)

 

Also, on Friday: Put in your order for next week!

 

Support local farms and eat great food, all while practicing safe social distancing.

 

 

Supporting Local Means Eating Seasonal

 

Most of us are accustomed to the grocery store, where every type of fruit and vegetable is stocked year-round. Locally, those products are only available in season, and the rest of the year they are shipped in from somewhere else in the world.

 

In spring and fall, available crops are varieties that like shorter hours of light, cooler temperatures, and even frost. In summer, crops are harvested that prefer long, hot days. Don’t see a vegetable you’re looking for? It may not be in season.

 

Join the Hub today and start sourcing your good food locally!

 

Whidbey Island Grown Cooperative

info@whidbeyislandgrown.com
PO Box 472
Coupeville, WA 98239

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