LOCAL MARKET UPDATE – APRIL 2020

by Carlene Sandstrom

Windermere is focused on keeping our clients and our community safe and connected. We’re all in this together. Since the early days of COVID-19, our philosophy has been “Go slow and do no harm.” While real estate has been deemed an “essential” business, we have adopted guidelines that prioritize everyone’s safety and wellness.

Like everything else in our world, real estate is not business as usual. While market statistics certainly aren’t our focus at this time, we’ve opted to include our usual monthly report for those who may be interested. A few key points:

The monthly statistics are based on closed sales. Since closing generally takes 30 days, the statistics for March are mostly reflective of contracts signed in February, a time period largely untouched by COVID-19. The market is different today.
We expect that inventory and sales will decline in April and May as a result of the governor’s Stay Home order.
Despite the effects of COVID-19, the market in March was hot through mid-month. It remains to be seen if that indicates the strong market will return once the Stay Home order is lifted, or if economic changes will soften demand.

Every Monday, Windermere Chief Economist Matthew Gardner provides an update regarding the impact of COVID-19 on the US economy and housing market. You can get Matthew’s latest update here.

Stay healthy and be safe. We’ll get through this together.

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Homeowners • March 31, 2020

6 HOME IMPROVEMENT PROJECTS TO TACKLE IF YOU’RE STUCK AT HOME PRACTICING SOCIAL DISTANCING

by Carlene Sandstrom

Spring has sprung in Seattle — and so has the coronavirus (the cause of the illness called COVID-19). If working from home and practicing social distancing has left you feeling stuck and uninspired, consider rolling up your sleeves and tackling a home improvement project or two.

From the simplest updates to sensational additions, these projects can keep you busy, enhance your curb appeal, and give you more ways to enjoy your home when warmer weather arrives.

1. Install a new mailbox

The simplest and easiest update of all, installing a new (or updating an old) mailbox can add a pop of personality and amp up your curb appeal, where first impressions really count!

Consider painting your mailbox a new color, planting flowers around the base, or installing a smart mailbox to protect your deliveries.

2. Update your address display

Another quick and easy project, updating your address can add flair to your front door. This article from realtor.com offers plenty of crafty and creative ways to display your house numbers.

If you have an HOA, it’s a good idea to check with them first to know what (if any) limitations you might have.

3. Add a new railing to your porch

If your front porch is looking a little ho-hum or drab, a new railing can make a world of difference. For a natural feel, consider a classic wood-tone railing for a natural feel, or add a pop of visual interest with a colored railing. If you’re looking for more, check out the Chippendale railing (it’s currently a hot trend on HGTV).

4. Stain your deck

if your deck is looking a little shabby, one easy improvement is to stain it—to either change the color or just accentuate the wood grain. Staining is also good for your deck, and many builders recommend staining or sealing once a year.

If you don’t yet have a deck, building one could be a great new project to tackle before summer arrives. Plus, according to Remodeling Magazine’s Cost vs. Value Report, a new wooden deck will net you a 69% return on investment when you decide to sell.

5. Build a fire pit

Backyard fire pits are perfect for adding a cozy ambiance to your yard, and are certain to be a highlight of a weekend gathering (especially when you bust out those marshmallows).

6. Upgrade your garden

Now’s the time to start planning your planting! Consider skipping the typical tulips or daisies, and investigate other greenery. Adding edible plants is a smart way to save money and indulge in the farm-to-table dining trend. Or you can build a butterfly garden, which is good for the environment. (Plus, what’s more beautiful than seeing butterflies flit around your yard?)

This article was first published on realtor.com by Jillian Pretzel.

Living • March 18, 2020

Designing Your Home Office

by Carlene Sandstrom

Image Source: Canva

Working from home is an aspiration for many of us, but to do so effectively takes effort. A disorganized space at home can be just as troublesome as a hectic office. The most disciplined telecommuters will tell you that you need a structured routine and organization in order to be successful.

Having a designated workspace is one of the most important elements to your success when you make the switch to telecommuting. Even if you live in a small space, you need to find a balance between home and office. People who work from home often have a difficult time separating their work hours from their non-work hours because it’s so easy to keep at it late into the night. But maintaining a balance and shutting down the computer is important for overall wellbeing. What are some other must-haves for a successful home office? Here are the top five:

Natural Light – Study upon study tells us that natural light is needed to boost productivity and mood. Make sure to set your desk up as close to a window as you can. If being near a window isn’t an option, a natural light lamp is the next best thing. It helps balance your body clock and leaves you feeling rested and refreshed.
To-Do List or Planner – Start each day off by making a to-do list outlining what you need to get done before the end of the workday. Make sure to set a realistic time frame in which all of that should be completed, so you can check each one off the list and feel immense accomplishment once you’ve completed them all.
Storage – If you have a big enough space, put in a large bookshelf where you can organize everything (think storage boxes). It reduces clutter and looks stylish. Using your walls and cabinetry is the most efficient use of space.
Calendar – Many people tend to rely on digital calendars these days because of their convenience. When all of your devices sync together and pop up with reminders, you never have to worry about missing an appointment. However, many people find that it helps to keep a paper calendar handy too so you can easily view your whole month at a glance. Choose which options works best for you by playing with both options, or something in between and see which one lets you be more productive with the least amount of stress.
Space for Inspiration – It doesn’t matter what field you work in, having a source of inspiration in your workspace is essential. Whether it’s a photo of your family, your dream car, or that vacation you’ve been dying to take, having that inspiration right in front of you provides a constant reminder of why you do what you do.

Market News • March 13, 2020

LOCAL MARKET UPDATE – MARCH 2020

by Carlene Sandstrom

COVID-19 has not yet stopped the housing market’s momentum. Buyer interest remains strong and those who waited last year for a drop in prices have now seen several months of home prices increases. While some sellers and buyers are going to put their real estate sales and searches on hold, others may find opportunity. Despite the headwinds of uncertainty, the market is still very much in motion, as demand outstrips supply and interest rates remain remarkably low.

The data and analysis below looks back at February’s market performance.

Buyers that may have been in wait-and-see mode at the end of 2019 jumped off the fence in February. Pending sales (offers accepted but not yet closed) jumped 27%, snapping up already-tight inventory. 55% of homes on the market sold in 15 days or less. The median home price jumped 9% over a year ago to $985,000, an increase of $58,000 from the prior month. Development on the Eastside continues to surge and includes the recent groundbreaking for a 600-foot tower in Bellevue and a proposed 11 acre mixed-use project.

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Homeowners • February 27, 2020

Vacation Home or Income-Producing Investment

by Carlene Sandstrom

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Image Source: Alex Master Shutterstock

Whether you’re a skier who loves the mountain slopes of Colorado, a lover of the beaches of Southern California, or a potential retiree seeking to escape the snow-laden Northeast for the wide-open, sunny lands of Arizona, there are homes available to meet a wide range of budgets. The biggest decision a potential second homeowner must make is whether they are going to solely own their vacation home or turn it into a vacation rental. Here are the advantages and disadvantages to both options:

Investing in vacation rentals

Pros:
- A good vacation rental property generally provides a healthy rental revenue which could potentially cover mortgage payments while also generating healthy additional profit.
- Using an online short-term rental service like Airbnb makes it convenient to manage your rental property. Their website interface makes pricing, marketing, and communication with potential guests quite straightforward and easy. Airbnb will also oversee the billing process for you.
- You may qualify for federal tax breaks and deductions related to your investment property. Everything from professional fees or commissions – including property management services- to cleaning and maintenance are potential tax write-offs.
Cons:
- Vacation rentals can be costly to manage, both in terms of time and money. These properties may require seasonal upkeep and special maintenance considerations. You may even incur costs to maintain or monitor the property even when it’s not actively being utilized.
- Vacation rental properties are particularly sensitive to seasonal fluctuations and economic downturns, which could leave you financially exposed if you suffer a lack of booking revenue.
- Many states and cities are cracking down on short-term rental services. In California, for example, the fight has been primarily local, reaching a fever pitch in the San Francisco Bay Area. Increasingly state and local municipalities are seeking to reign in short-term vacation rentals, which could put a damper on potential revenue from these properties.
- You may experience higher renovation and repair costs on a short-term rental. Most travelers expect the latest appliances and furnishings, so you will have to update every few years. Unfortunately, short-term renters are less likely to report any necessary repairs and guests are far less likely to treat the property with respect since there’s no sense of ownership or obligation.

Owning a vacation home

Pros:
- Long-term profits: While assets fluctuate in value in the short term, vacation properties are more likely to retain their value and appreciate because they are located in popular areas with a geographically limited supply.
- Familiarity: Returning to the same place time and after time can be comforting as you become familiar and comfortable with the location. It allows you the freedom to be yourself and the opportunity to expand long-term friendships with residents.
- Convenience: The ability to conveniently store items that are used exclusively at the second home simplifies travel and packing.
- Retirement head starts: Though we may love where we work and live, every place has its drawbacks. A common goal of retirement is to have a place to retreat for the times of the year we dislike the most at our main residence. Locating and buying a second home prior to retirement enables you to experience the benefits of a refuge before actual retirement, a time to correct and amend your plans if the reality is different than the dream.
Cons:
- Initial purchase costs: Most people have higher expectations for a property that they intend to own, rather than to rent. These expectations can translate into high prices.
- Home maintenance: As the homeowner, you are responsible for all home maintenance work.
- Travel time: A second home will be located hours from your primary residence, requiring either long auto trips or airline flights.
- Inflexibility: If you are paying a significant amount of money each month for a second home, you may feel that you need to constantly visit the property to justify your investment.

Homeowners • February 13, 2020

Is It Time to Downsize?

by Carlene Sandstrom

Image Source: Shutterstock

Choosing less space often has to do with a desire to live a life that’s simpler. Whether you’re retiring, want an eco-friendly, low-maintenance lifestyle or your children have moved away, downsizing might be the best option for you. Here are the advantages and disadvantages to consider before making the move and questions to begin asking yourself now.

Advantages

Increased cash flow.
- Spend less on your mortgage payment and you are likely to have more money leftover for other needs or desires.
More time.
- Cut down on time spent on household chores such as cleaning and vacuuming which will leave you with more hours in the day to do something more enjoyable.
Lower utility bills.
- Costs less to heat and air condition a small home.
- Less square footage decreases the amount of energy expended.
- Reducing energy is better for the environment and it helps keep your home green.
Reduced consumption.
- You would likely buy less since you won’t necessarily have the room for it.
Minimized stress.
- Homeowners who have successfully downsized often feel happier because they are no longer overwhelmed by the demands of a larger home.
- Less responsibility, less housework to do, increased cash flow and flexibility equals reduced stress.

Disadvantages

Fewer belongings.
- Moving into a smaller space would mean you would need to give away or donate furniture, books, kitchen supplies, etc.
No room for guests.
- Hosting holiday dinners might be out of the question for a smaller home.
Space restrictions.
- Less space means you could feel cramped.
Lifestyle changes.
- For long-term homeowners, downsizing means changing a lifestyle.

What to consider before downsizing

These questions are important to ask yourself because for some people, downsizing may not be the best option for them.

Does size matter to me?
1. Think about how much your identity is wrapped in your house.
2. Is it important for you to have a guest room or a second bathroom?
Will I miss some important things about a more spacious home?
1. Will moving into a smaller home feel like a step backward?
How will other life events affect my living in a smaller home?
1. Consider possible scenarios you may not expect such as adult children moving back home or if you plan to add a child.

The Cost to You

How much will it cost to replace the furniture?
1. When you move into a smaller home this means you might have to downsize your furniture to make room.
How much will it cost to get rid of the stuff I don’t need or won’t fit?
1. It’s important to have a plan for how you’re going to sell or give away the things you don’t need.
2. Consider things like family heirlooms. What are you going to do with all your antiques or treasures that your smaller home may not be able to accommodate?
How much will I get when I sell my current home, and will it help cover the cost of buying my new home?

If you know downsizing is the right option for you, you’re probably asking yourself, “Should I sell first and then buy or buy first and then sell?”. When you’re ready to discuss your options, I’m here to help!

Living • January 26, 2020

Refresh Your Bathroom into a Spa

by Carlene Sandstrom

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Image Source: Canva

With some creative thinking and a few do-it-yourself projects, you too can transform an everyday bathroom into a spa-like experience:

High-end shower head

There are a plethora of shower head options available today that can make even a simple shower space feel like a luxuriating experience.

Heated towel rack

Once out of the tub/shower, heated towels help you comfortably maintain your body temperature while the pampering continues.

Dimmable lights

Adjust the bathroom lights to match your moods and activities: brighter for primping, and dimmed to create a calming effect.

Less clutter

Not everything that’s meant for the bathroom needs to be stored in the bathroom. Look for things that can be moved elsewhere to make the space feel a bit bigger and more organized.

Calming scents

Essential oils, luxury soaps, and scented candles are an easy way to create an aromatic atmosphere of luxuriousness.

Market News • Matthew Gardner Report • January 19, 2020

Matthew Gardner – Will There Be A Recession in 2020?

by Carlene Sandstrom

Windermere Chief Economist, Matthew Gardner, answers the most pressing question on everyone’s minds: Will there be a recession in 2020? Here’s what he expects to see.

Market News • January 9, 2020

LOCAL MARKET UPDATE – JANUARY 2020

by Carlene Sandstrom

2019 ended with too many buyers chasing too few homes. December marked the sixth straight month of declining supply. The severe shortage of homes, historically low interest rates, and strong job growth are predicted to keep the local housing market strong in 2020. In a region starved for inventory, sellers can expect significant interest in new listings.

Homes sold briskly on the Eastside in December in all categories, including the luxury market. The number of listings were down nearly 50% from a year ago and the area had under a month of available inventory. That lack of inventory helped bump the median price of a single-family home up 4% from a year ago to $949,000, which is a $49,000 increase from November. New large scale developments and a strong economic forecast indicate that the housing market will remain healthy.

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Living • December 22, 2019

Home Security for the Holidays

by Carlene Sandstrom

Image Source: Canva

The holiday season can bring joy and peace, but it can also bring package thieves and burglary. Stay safe this winter by taking a few precautions with your home security. From old-school security tricks to new digital home monitoring tools, there are many options when it comes to keeping our homes safe and preserving that sensibility.

Upgrade your locks:

A poorly installed deadbolt can make it easy for an intruder to kick in your door. Start by making sure that your door frames are in good condition and then look into getting a higher quality deadbolt. You’ll find everything from classic models with keys, or digital options that require passcodes or a fingerprint.

It’s also a good idea to check all the locks on your windows. Some older models are easy to jimmy open with a little wiggling. For ground floor windows, you may want to consider double locks. It goes without saying, leaving windows open during the summer is a bad idea – especially those that can be easily accessed.

Exterior and interior home lighting:

Having your exterior lights on timers or motion sensors is a good way to deter nighttime snoopers. Add sensor lights to key entry points on your home, including the front door, back door, and/or basement entries. If you have an unused side yard, consider lighting there too. Keeping your home lit makes unwanted visitors weary of being seen.

If you will be gone from your home for an extended period, consider using timed lighting options in your home to make it appear someone is around. You can select timers for bedrooms or living areas. Also, you can program a radio to turn on and off for sound.

Alarm systems:

If you are considering an alarm, you have an array of options that vary from self-install motion detection kits to full-service home security systems. If you choose to do-it-yourself, you will want to install motion detectors on doors and windows – especially those that can be easily accessed on the ground floor. In most cases, these kits also offer a 24-hour call service for an extra fee.

Full-service security systems can include everything from an alarm system and panic buttons to and integration with your smoke detectors/ fire prevention system. These services are expensive up front but usually have a reasonable monthly rate. And keep in mind, having a home security system installed can also reduce your insurance rates.

If installing an alarm system is cost-prohibitive or does not fit your lifestyle, consider purchasing stickers and a sign that state that your home is monitored by a trusted security system, and place them so they are visible at every entrance.

Security cameras:

Security cameras are readily available for home installation. You can install these in prominently viewed places to deter burglars. There are do-it-yourself install options and professional systems that come along with monitoring services. There are even options that will work with your smartphone.

If the cost of security cameras is too steep for your budget, you can purchase fake cameras to act as a visible deterrent for intruders.

Build your community:

Programs like Neighborhood Watch are very successful in some communities, by creating an environment where everyone is looking out for each other. Building close-knit relationships with your neighbors can go a long way in making you feel safe at home. Whether this is through a formalized program, or a shared agreement with your community, developing relationships with your neighbors is a great way to keep your home safe.