It started at Opstad Elementary, it’s developing at Fall City Elementary, and it’s spreading to the whole Snoqualmie Valley community!! A HUGE shout out to J & R Rockscapes for donating all of the rocks to Opstad Elementary! #BeKindSV rocks are about to take the community by storm! Be on the lookout for all that is happening by liking and following our new Facebook page!
January showed year-over-year improvement in the volume of new listings and total inventory, along with moderating selling prices. Although fewer solds were reported in King county than a year ago, January started as a bit of a surprise with lots of activity which normally isn’t felt until later in the month. Buyers are giving signsof a healthy spring market with their increased search activity and rise in mortgage applications. Indications are that buyers are feeling the real estate market has finally stabilized and sellers are similarly encouraged by having more options with the increase in inventory. It still isn’t clear if the Spring market is going to come later than normal, as some economists have forecasted. All WE know is the market feels healthier than it has in many years!!
Homeowner tenure, the average amount of time homeowners live in their home, has increased dramatically over the last ten years. In 2008 and during the recession, people began staying in their homes longer. Prior to the housing crisis, that tenure was about five years. It increased to seven years between 2008 and 2016. In the last two years, partially owing to the inventory crisis and rising interest rates, according to a new study by First American, home tenure has grown to an amazing ten years
Although it may not seem like much of a change, this trend has shifted quickly and it has big implications for our inventory issues. Why are people staying in their homes longer?
- Mortgage rates – Years of low interest rates have homeowners not wanting to trade in their historically low mortgage rate for today’s rates.
- Lack of supply – Homeowners not wanting to compete for the lack of homes in the market, worsen the problem by staying in their homes.
- Tighter Credit Standards – Credit is not as lenient as it has been, and some homeowners may be concerned about qualifying for a new mortgage under these tougher lending standards.
According to the National Association of REALTORS® 2018 Profile of Home Buyers and Sellers, buyers who bought a home last year expected to be in the home 15 years. According to the same study, the actual tenure in the home reported by home sellers was reported as follows:
The below graphic indicates that 44% of last year’s home sellers were in their homes for 11 years or longer. Only 36% were in their homes five years or fewer.