A Comprehensive Update on the Housing Market

Everything you should know about our current housing market.

Have all the changes in the real estate market been too overwhelming to keep up with? There’s a lot happening, so I can’t blame you! That’s why I’m here today, to make sense of it all for you. It can help you stay updated on our Pierce County market so you can make informed real estate decisions. 

You can hear the full update by watching the video above, or you can skip to individual topics by using these timestamps: 

0:00 — Introduction 

0:30 — Median sales price 

1:20 — Median percent of list price 

1:54 — Days on market 

2:04 — Pending sales and number of homes sold 

4:00 — Determining what kind of market we’re in 

4:40 — Inventory 

5:35 — Interest rates and the Federal Reserve rates 

6:00 — How to price a home and handle this market 

6:45 — Wrapping up 

The bottom line is that there are advantages in this market for both buyers and sellers. If you have any questions, I would love to be your real estate resource. Call or email me and my team anytime!

Your May 2022 Pierce County Market Update

 Here’s what’s happening in our market and how it affects you.

There’s a lot happening in the market, and it’s starting to get a little weird. That’s why I wanted to share some hard data with you today to show you what’s taking place. Let’s dive right into these numbers and what they mean for you as a buyer or a seller.

You can watch the full video above or skip to each section using the timestamps provided:

0:00 — Introducing today’s topic

0:32 — Home prices are at an all-time high

1:13 — The five-year graph for the sales-to-list-price ratio

2:02 — We are still seeing a fast market

2:39 — The pending sales, homes for sale, and number of homes sold

3:52 — We’ve been in an extreme seller’s market for a while

4:21 — We only have 18 days of inventory

4:56 — Interest rates have jumped, and that will affect the buying pool

6:27 — Wrapping up

If you have any questions or would like to develop a specific strategy for your situation, call or email my team and me. We’d love to hear from you.

Sellers: Consider Capital Gains Before Selling

Even though we’re in a hot seller’s market, you may not want to sell right now.

Considering how much homes have increased in value recently, many people are wondering whether they should sell their homes or cash in on their equity. Selling may or may not be a good idea, so today I’ll give people in this position something to consider: capital gains taxes.

Many people don’t really think about capital gains taxes until after their house has already been sold. When you purchase a home, the IRS determines whether you’ll pay short-term or long-term capital gains based on how long you’ve lived in the home.

If you’ve lived in the home for less than a year, you’ll pay a higher capital gains tax, so be sure to check with your CPA to find out exactly how much yours would be if you sold. For simplicity’s sake, you can expect to pay around 22% of your total profit. If you’ve lived in the home for more than a year, your capital gains taxes are reduced. Again, your CPA can give you a more exact figure, but you’re looking at somewhere around 10% to 15%.

 "If you’re pretty close to that two-year mark, then it may be a good idea to hold off on selling."

Now, if you are in a position where you have lived in the home for at least two out of the last five yearsand you’re single, you are exempt from having to pay capital gains taxes on up to $250,000 worth of profit. If you’re married, you’re exempt for up to $500,000. If you’re pretty close to that two-year mark, then it may be a good idea to hold off on selling.

Hopefully this has given you some helpful information to better inform your decision to sell or not to sell.

If you have any questions or need assistance, give us a call or send us an email. We’d love to be a resource for you.

Should You Wait To Sell Your Home?

Our market conditions suggest sellers should act sooner rather than later.

With how volatile the market is, does it make sense to sell your home now, or should you wait? Many homeowners are asking this question. After all, home values will continue to rise, so wouldn’t it be better to let home prices rise before selling? That way, you could extract the maximal value from your sale. Today I’ll address this question and some concerns that I have for those thinking of waiting.

First, let’s consider what’s going on in the market. As I said, home prices are on the rise. As prices go up, your pool of potential buyers shrinks since fewer people will be able to afford your home. The Federal Reserve has also announced that they’re going to increase interest rates multiple times. They’ve already jumped quite a bit in just the last few weeks. Rising rates also have the effect of reducing your buying pool.

"You’ll have a larger buying pool now than you will later in the year."

It’s not hard to see why consumer confidence has been getting lower and lower. Many are starting to wonder if it’s even worth it to pay that much for a home anymore. If confidence continues to drop, that’s even fewer buyers in the market who will be prepared to make you an offer. That, in turn, means the value of your home will go down since you won’t be able to take advantage of high demand and bidding wars to boost your sales price.

With all that in mind, if you’re thinking about selling your home in 2022, I strongly encourage you to take action sooner rather than later. You’ll have a larger buying pool now than you will later in the year, meaning that you’re more likely to get a higher price if you don't wait.

If you have any questions or need help getting the sales process started, don’t hesitate to give me a call or send me an email. Hope to hear from you soon!

How Interest Rates Affect Your Buying Power

How rising interest rates could affect your ability to buy a home.

Interest rates are on the rise, so what does this mean for you? If you’re thinking about buying a home soon, you need to know what’s happening. Interest rates are in the low 4% range, so I want to break down what that means for your pocketbook.

A chief economist at a large brokerage recently said, “With certainty, by the end of this year, interest rates will be 5.5% to 6%.” That’s a huge jump from where we are now—up to a 2% difference. That might not sound like that much, but it is.

"Act sooner rather than later to protect as much of your money as possible."

The median home price in Pierce County is $525,000. Let’s say you own a home at that price, and you’d like to move into a larger house that would cost around $750,000. If you put 20% down on that home and rates were at 4%, your monthly payment would be $2,864. If rates rose to 6%, your monthly payment would be $3,597 for that same house. 

That’s a difference of $733 per month. Over a year, you’d pay $9,000 more, and over the life of your loan, you’d pay $264,000 more. I want to make sure you’re aware of how much rates affect your monthly payment. If you want to move, I recommend acting sooner rather than later to protect as much of your money as possible. 

A lot of people don’t want to sell until they find where they’re moving to, but there are a few strategies you can use to help. You can purchase the new property first and sell your home immediately afterward. There are ways you can structure and finance that option. 

If you know someone who would benefit from this information, please pass this on to them. As always, if you have any questions, I’d love to help. Just call or email me.