Cost vs Value • March 1, 2018

Cost vs. Value Report

by Casey Bui

I am commonly asked which improvements sellers should make to get the greatest return on their home sale. Every year The Remodeling 2018 Cost vs. Value Report (www.costvsvalue.com) compiles all the information and analyzes the estimated percentage return on home improvements in each region. Getting a home prepared for market requires a keen eye and great resources. To access the entire Cost vs. Value report please visit www.costvsvalue.com and follow the steps to locate the Seattle area report.

Also, I have a great list of reputable contractors from HVAC to plumbing to roofing who are licensed and bonded in the State of Washington. Please call on me whenever you need a solid recommendation. I am happy to help whether you are getting your home ready for market or just want to find a good window washer now that the sun is starting to shine a little more.

Complete data from the Remodeling 2018 Cost vs. Value Report can be downloaded free at www.costvsvalue.com

Newsletter • March 1, 2018

Monthly Newsletter

by Casey Bui

I hope your Valentine’s Day was a sweet one, but it got me thinking. I am often sharing with you the advantages of this market for home sellers, which is unbelievably positive. With that said, I thought I’d take some time to give the potential buyers in our marketplace some love, hope, and of course, data!

Dear Greater Seattle Home Buyer,

Let’s just be up front: buying a home in today’s market is not easy. Quite frankly, it can be a wild roller coaster ride with twists and turns; but remember, folks pay a lot of money and stand in long lines for roller coaster rides. Imagine the excited pit in your stomach as the cart clicks up to the highest point before you plunge down a steep drop, and the thrill of raising your hands up because you trust that you are going to be okay. These emotions also accurately reflect the feelings of today’s home buyer – it can be a wild ride! Let’s also note that many roller coaster riders return to the back of the line right after getting off. Home ownership is also a good exercise to repeat and is often the investment that leads to the most built wealth in one’s life.

So how does one ensure that they are not the Nervous Nelly who stands in line for over an hour, finally makes it to the front to be strapped in to the cart, but who then chooses to bow out? The one that sits on the sidelines watching others throw up their hands with a thrill in their eye; the one with that tinge of regret as their friends rejoin them back on hallowed ground to recount their adventure. Wow, this is getting dramatic! Here are a few tips to follow that will ensure that one can find success securing a home in today’s market and get on the equity building train.

Waiting is Even More Expensive
In 2017, the year-over-year median price gains across our region were strong. In fact, here is a little break down.

North Snohomish County:	$371,000	up 13%
South Snohomish County:	$508,000	up 14%
North King County:	$715,000	up 14%
Seattle Metro:	$710,000	up 15%
South King County:	$405,000	up 13%
Eastside:	$865,000	up 15%

The appreciation is for real and as each month ticks by, prices are going up. That is why it is incredibly important to have a plan and realistic expectations. In referring to the chart above, it is plain to see the affordability of each area. Buyers have had to get creative and honest with themselves regarding the city or neighborhood in which they land. Commute times are one of the biggest indicators of home cost. It is paramount to line your budget up with a realistic commute time and then dig in. Too often I’ve seen buyers tightly grip to the idea of an in-city commute, only to have it end up being a more suburban choice in the end. The months wasted trying to perform in a market that didn’t match their budget ended up costing them at least 1% a month, based on last year’s appreciation. Getting real saves time, money, and heartache.

Interest Rates are a’Rising
This aspect is actually one to pay very close attention to. We have been amazingly spoiled with historically low interest rates over the last five years. In fact, there is an entire generation of buyers who only know rates that have hovered from 3.5 – 4.5% – that is close to 3 points under the 30-year average! A good rule of thumb regarding interest rates, is that for each 1-point increase a buyer loses 10% of their buying power. That means that if you have a $500,000 budget and the rate goes up by a point, that you are now shopping for a $450,000 house if you want the same payment. Note, that shift does not take appreciation into consideration. Today’s rates have helped buyers bear the home prices in our area. It is predicted that rates will rise in 2018 by .5 to 1%.

Rents are High and Don’t Build Wealth
Seattle is now the 5th most expensive city to rent in the country according to the US Census Bureau. With rising rental rates, still historically low interest rates, and home prices on the rise, the advantage of buying versus renting has become clear for folks who have a down payment saved, good debt-to-income ratios and strong credit. Currently, the breakeven horizon (the amount of time you need to own your home in order for owning to be a superior financial decision vs. renting) in the Greater Seattle area is 1.6 years according to Zillow research.

Partner with a Broker Who Will Get the Job Done
A broker that has a process is key! It starts with an initial buyer consultation. I liken the buyer consultation to the seat belt you would wear on the roller coaster ride. When you go to the Dr. they start with your intake, check your vitals, ask questions, etc. The buyer consultation aims to unearth a buyer’s goals, research the areas they are interested in, address financing, and illustrate the challenges of the environment, so one can be successful. Time is money, and this consultation brings clarity, efficiency and trust. This upfront education coupled with a high level of communication and availability is paramount. The depth of the relationship will lead to success, and is the ingredient that enables a buyer to throw up their hands and take the thrilling plunge. It is hard to do that without a seat belt!

Get Your Finances in Order
Aligning with a trusted real estate professional is key, but so is aligning with a reputable and responsive mortgage lender. Getting pre-approved is the minimum, but getting pre-underwritten is a game changer. Finding a lender that is willing to put in the work up-front to vet credit, income, savings, debt, and all other financial indicators will lead to being pre-underwritten, which listing agents and sellers appreciate! Also, be aware that you do not always need to have a huge down payment to make a purchase work. Employment, assets, credit, and what you have saved all work into your ability to acquire a loan. I have seen plenty of people secure a home with 3-5% down. Education and awareness create clarity, and investing into understanding your financial footing equals empowered and more efficient decisions. Note that I mentioned “responsive”. This is a 24/7 market, and lenders who don’t work evenings and weekends can get in the way of a buyer securing a home. If you need a short list of lenders that fit this description, please contact me.

‘Tis the Season – Inventory is Coming
Have hope! This is the time of year where we see inventory climb month over month. There will be more selection, but bear in mind it is also the time of year that the appreciation push happens. If you are feeling 75-80% in love with a home, it is one to act on. You’re never going to “get it all”, so a willingness to focus on priorities will pay off, because waiting will have an expense.

If you or someone you know is considering a purchase in today’s market, please contact me. It is my pleasure to take the time to educate, devise a plan, and help buyers find success in a challenging, yet advantageous market.

Celebrate Earth Day with us! Bring all your sensitive documents to be professionally destroyed on-site by Confidential Data Disposal. Limit 20 file boxes per customer.

We will also be collecting non-perishable food and cash donations to benefit Concern for Neighbors Food Bank. Donations are not required, but are appreciated.

Saturday, April 21st, 10am – 2pm. EARTH DAY!
4211 Alderwood Mall Blvd, Lynnwood 98036

*This is a shredding-only event. Only paper will be accepted – no electronics or recyclables.

We are so fortunate here at Windermere to have Matthew Gardner help keep us informed on our economy and the real estate market. Each quarter Matthew compiles in-depth research on counties from across Western Washington. Click here to download Matthew’s full Q4 2017 report. Also, I recently hosted Matthew’s 2018 economic forecast for the Greater Seattle area and had it professionally recorded. If you are interested in receiving access to view the entire presentation, please contact me and I’ll send it to you.

Quarterly Market Trends • South King County • February 12, 2018

South King County Market Trends

by Casey Bui

Price growth was particularly strong in 2017! Median was up 13% and average price up 12% over 2016. Median price in 2017 landed at $405,000 and the average at $440,000. The average amount of days it took to sell a house in 2017 was 30 days which is 9% faster than 2016. The average list-to-sale price ratio over the last year was 100%, with the spring months as high as 102%! In 2017, inventory growth continued to be a challenge, with a 7% decrease in new listings compared to 2016. Even with inventory limitations there were 2% more sales! This phenomenon illustrates strong buyer demand and a need for more listings.

South King County real estate has seen a steady stream of buyers come our way due to affordability, reasonable commute times and quality of life. In fact, the median price in 2017 was 75% higher in Seattle Metro. Historically low interest rates continue to drive the market as well, they have helped offset the increase in prices. Sellers are enjoying great returns due to this phenomenon and buyers are securing mortgages with minor debt service.

This is only a snapshot of the trends in south King County; please contact me if you would like further explanation of how the latest trends relate to you.

Eastside • Quarterly Market Trends • February 12, 2018

Eastside Quarterly Market Trends

by Casey Bui

Price growth was particularly strong in 2017! Median was up 15% and average price up 16% over 2016. Median price in 2017 landed at $865,000 and the average at $1,049,000. The average amount of days it took to sell a house in 2017 was 24 days, which is 17% faster than 2016. The average list-to-sale price ratio over the last year was 101%, with the spring months as high as 103%! In 2017, inventory growth continued to be a challenge, with a 4% decrease in new listings compared to 2016. Even with inventory limitations there were a near equal amount of sales! This phenomenon illustrates strong buyer demand and a need for more listings.

Demand for Eastside real estate has grown due to close proximity to job centers, great schools and quality of life. Over the last year, the Eastside was 70% more expensive than south Snohomish County and 22% over Seattle Metro. Historically low interest rates continue to drive the market as well, they have helped offset the increase in prices. Sellers are enjoying great returns due to this phenomenon and buyers are securing mortgages with minor debt service.

This is only a snapshot of the trends on the Eastside area; please contact me if you would like further explanation of how the latest trends relate to you.

Quarterly Market Trends • Seattle Metro • February 12, 2018

Seattle Metro Quarterly Market Trends

by Casey Bui

Price growth was particularly strong in 2017! Median was up 15% and average price up 14% over 2016. Median price in 2017 landed at $710,000 and the average at $801,000. The average amount of days it took to sell a house in 2017 was 18 days, which is 10% faster than 2016. The average list-to-sale price ratio over the last year was 103%, with the spring months as high as 106%! In 2017, inventory growth continued to be a challenge, with a 3% decrease in new listings compared to 2016. Even with inventory limitations there were 4% more sales! This phenomenon illustrates strong buyer demand and a need for more listings.

Demand for Seattle Metro area real estate has grown due to close proximity to job centers. Over the last year, Seattle Metro was 40% more expensive than south Snohomish County and 75% over south King County. Historically low interest rates continue to drive the market as well, they have helped offset the increase in prices. Sellers are enjoying great returns due to this phenomenon and buyers are securing mortgages with minor debt service.

This is only a snapshot of the trends in the Seattle Metro area; please contact me if you would like further explanation of how the latest trends relate to you.

North King County • Quarterly Market Trends • February 12, 2018

North King County Quarterly Market Trends

by Casey Bui

Price growth was particularly strong in 2017! Median and average prices were up 14% over 2016. Median price in 2017 landed at $715,000 and the average at $787,000. The average amount of days it took to sell a house in 2017 was 17 days, which is 19% faster than 2016. The average list-to-sale price ratio over the last year was 104%, with the spring months as high as 107%! In 2017, inventory growth continued to be a challenge, with a 4% decrease in new listings compared to 2016. Even with inventory limitations there were a near equal amount sales! This phenomenon illustrates strong buyer demand and a need for more listings.

Demand for north King County real estate has grown due to close proximity to job centers while maintaining a neighborhood feel. Over the last year, north King County was 41% more expensive than south Snohomish County and 77% over south King County. Historically low interest rates continue to drive the market as well, they have helped offset the increase in prices. Sellers are enjoying great returns due to this phenomenon and buyers are securing mortgages with minor debt service.

This is only a snapshot of the trends in north King County; please contact me if you would like further explanation of how the latest trends relate to you.

Quarterly Market Trends • South Snohomish County • February 12, 2018

South Snohomish County Quarterly Market Trends

by Casey Bui

Price growth was particularly strong in 2017! Median was up 14% and average price up 12% over 2016. Median price in 2017 landed at $508,000 and the average at $543,000. The average amount of days it took to sell a house in 2017 was 24 days, which is 17% faster than 2016. The average list-to-sale price ratio over the last year was 101%, with the spring months as high as 103%! In 2017, inventory growth continued to be a challenge, with a 1% decrease in new listings compared to 2016. Even with inventory limitations there were 4% more sales! This phenomenon illustrates strong buyer demand and a need for more listings.

South Snohomish County real estate has seen a steady stream of buyers come our way due to affordability, reasonable commute times to job centers and quality of life. In fact, the median price in 2017 was 41% higher in north King County. Historically low interest rates continue to drive the market as well, they have helped offset the increase in prices. Sellers are enjoying great returns due to this phenomenon and buyers are securing mortgages with minor debt service.

This is only a snapshot of the trends in south Snohomish County; please contact me if you would like further explanation of how the latest trends relate to you.

North Snohomish County • Quarterly Market Trends • February 12, 2018

North Snohomish County Quarterly Market Trends

by Casey Bui

Price growth was particularly strong in 2017! Median and average prices were up 13% over 2016. Median price in 2017 landed at $371,000 and the average at $400,000. The average amount of days it took to sell a house in 2017 was 35 days, which is 10% faster than 2016. The average list-to-sale price ratio over the last year was 99%, with the spring months as high as 101%! In 2017, inventory growth continued to be a challenge, with an 8% decrease in new listings compared to 2016. Even with inventory limitations there were 3% more sales! This phenomenon illustrates strong buyer demand and a need for more listings.

North Snohomish County real estate has seen a steady stream of buyers come our way due to affordability and quality of life. In fact, the median price in 2017 was 37% higher in south Snohomish County. Historically low interest rates continue to drive the market as well, they have helped offset the increase in prices. Sellers are enjoying great returns due to this phenomenon and buyers are securing mortgages with minor debt service.

This is only a snapshot of the trends in north Snohomish County; please contact me if you would like further explanation of how the latest trends relate to you.

Edmonds • April 26, 2017

16 Excellent Independent Businesses in Edmonds

by Casey Bui

The Edmonds area is filled with an exciting array of independent businesses to explore and support! From restaurants that serve up authentic and comforting fare to shops stocked with treasures you can’t find anywhere else, the businesses in Edmonds are made even stronger by the support of loyal customers and the warmth of the staff who grew up here.

Check out our list of 16 excellent independent businesses in Edmonds that are definitely worth a visit:

RESTAURANTS

Church Key Pub

Hours: 4:00p-11:00pm Monday-Thursday; 3:00pm-1:00am Friday; 12:00pm-1:00am Saturday; 12:00pm-11:00pm Sunday

Located at 109 4th Ave. N. Edmonds, WA 98020

If you’re looking for a relaxing night out with friends, the Church Key Pub has you covered. This bar features a selection of hearty, yet affordable sandwiches, flatbreads, entrees, and more, in addition to a rotating tap of up to 19 unique craft beers and a vibe that blends the flavors of an Irish pub with the familiar comfort of a local hangout.

“Church Key Pub has the best food! This place is always packed—standing room only. Yes, the beer selection is grand but the gourmet grilled cheese sandwich, homemade chicken pot pie, salads and fresh pretzel with cheese are fantastic. I’ve never ordered something there I didn’t really like.”-REALTOR® Melody Benton

For a fun night that won’t break the bank, stop on into the Church Key Pub!

Salt & Iron

Hours: 11:00am-10:00pm Monday-Thursday; 11:00am-11:00pm Friday; 9:00am-11:00pm Saturday; 9:00am-10:00pm Sunday

Located at 321 Main St. (in Downtown Edmonds) Edmonds, WA 98020

With a bright and welcoming atmosphere in the heart of busy downtown Edmonds, Salt & Iron takes an elegant, yet laid-back approach to fresh American Northwest cuisine. “Salt & Iron has been a great addition to the downtown food scene. Their menu is fresh and offers a fun spot to celebrate a special occasion whether it is their yummy brunch on the weekend or a tasty dinner,” says Lena Wood Maul.

Speaking of brunch, according to Caitlyn Johnson, “Salt and Iron is my go-to for brunch. The breakfast sandwiches and mimosas are my favorite!” If you want to experience what all the buzz is about, make a reservation at Salt & Iron!

Walnut Street Coffee

Hours: 6:00am-6:00pm Monday-Friday; 7:00am-6:00pm Saturday-Sunday

Located at 410 Walnut St. Edmonds, WA 98020

Serving Edmonds since 2006, Walnut Street Coffee is definitely a local favorite. According to local Lena Wood Maul, “Walnut Street Coffee brings the goods using locally roasted Vivace’ Coffee and they have the best quinoa burrito for a quick healthy breakfast option.” REALTOR® Ginna Demme agrees with and adds to Maul’s sentiment: “I love Walnut Street Coffee! Fantastic employees, delicious coffee and treats, wonderful atmosphere! I especially love their rotating featured artwork. Walnut street’s quinoa burrito is the absolute best!!”

With other treats sourced from local companies and a commitment to using only organic products, there is no question that Walnut Street Coffee is a true community staple that not only tastes good, but does good.

Epulo Bistro

Hours: 4:00pm-10:00pm Tuesday-Thursday & Sunday; 4:00pm-11:00pm Friday-Saturday; closed Monday

Located at 526 Main St. Edmonds, WA 98020

If you want a restaurant experience that makes you feel part of a family, look no further than Epulo Bistro. This quaint spot features a warm atmosphere and delicious European-inspired food prepared with only the freshest and finest local ingredients. If you’re not sure what to order first, Lena Wood Maul has a suggestion: “Epulo Bistro hands down has the best appetizer in their burrata cheese with fresh handmade cheese, toast points and bright sliced cherry tomatoes tossed in olive oil and basil, yum!” Good food, good service, and a good community are what it is all about at Epulo Bistro.

Las Brisas

Hours: 11:00am-9:00pm Sunday-Thursday; 11:00am-10:00pm Friday-Saturday

Located at 201 5th Ave. S. Suite 101 Edmonds, WA 98020

If you’re in the mood for a little south-of-the-border flavor, you will want to check out La Brisas. This eatery blends traditional Mexican cooking, a sophisticated, modern style, and unmatched service to bring customers an unforgettable experience.

“Las Brisas is a must visit! My favorite item on their menu is the Macho Vegetarian Burrito (and don’t forget to get a fresh lime margarita as well!). Their fantastic location, decor, and menu make for a great place for anything from late night drinks to family dining,” says REALTOR® Ginna Demme. Stop in today and witness all that has made Las Brisas an Edmonds household name.

Evviva Woodfired Pizza

Hours: 4:00pm-9:00pm Tuesday-Friday; 11:00am-9:00pm Saturday; 11:00am-8:00pm Sunday; closed Monday

Located at 178 Sunset Ave. South, Edmonds, WA 98020

For a taste of true, authentic Neapolitan pizza, Evviva Woodfired Pizza is the place to go. “Evviva Pizza is the closest to Italy you’re going to get!” says REALTOR® Andrea Wetzel. Indeed, this spot serves up pies featuring only the freshest organic/all-natural ingredients, prepared through the same method that pizzaiolos have been using for hundreds of years. With a unique simplicity and a beautiful location, Evviva Woodfired Pizza is your chance to travel back to the old world without ever leaving Edmonds.

Bar Dojo

Hours: 4:00pm-10:00pm Sunday-Thursday; 4:00pm-12:00am Friday-Saturday

Located at 8404 Bowdoin Way Edmonds, WA 98026

Treating the people of Edmonds to a melting pot of Asian comfort foods and Northwest ingredients, Bar Dojo is a local dining experience unlike any other. Their cocktails are handcrafted using Asian fruits and spices, their food is wild, organic, and sustainable, and their dining room brings all the modern warmth and comfort of Asia to your own backyard. Stop in today for a taste of all the flavors this neighborhood gem has to offer.

SHOPS

The Wooden Spoon Kitchen Shop

Hours: 10:00am-5:30pm Monday-Saturday; 12:00pm-4:00pm Sunday

Located at 104 5th Ave. S. Edmonds, WA 98020

An Edmonds landmark for over 40 years, “The Wooden Spoon is another long time family-run shop, with everything under the sun for your kitchen!” says REALTOR® Barbara Clark. This shop was one of the first kitchen shops in the Pacific Northwest and has since expanded to include seasonal items, decorative items, and other household treasures. With a loyal base of local customers and as a popular spot for tourists, the Wooden Spoon Kitchen Shop is an absolute must for anyone who loves to cook.

Comstock Jewelers

Hours: 10:00am-5:30pm Monday-Friday; 10:00am-5:00pm Saturday; closed Sunday

Located at 411 Main St. Edmonds, WA 98020

Started in 1978 in downtown Edmonds, Comstock Jewelers has quickly grown to become one of the most well-established and respected jewelers in Washington. How did they do it? As REALTOR® Barbara Clark explains: “Part of the charm of Edmonds is the many family owned & operated shops, like Comstock Jewelers. From father to son, and now to grandson, the secret ingredient to their loyal following is their excellent care, customer service and great selection and value.”

Indeed, their passionate staff have over 100 years of combined knowledge in the production and sale of fine jewelry, ensuring a quality buying experience every time. If you need a gift for that special someone, trust the team at Comstock to help you find your perfect match.

The Papery

Hours: 10:00am-6:00pm Monday-Saturday; 12:00pm-4:00pm Sunday

Located at 410 Main St. Edmonds, WA 98020

It is already clear from this list that Edmonds has no shortage of unique local shops. From kitchen supplies to jewelry, there is no end to what you can find. REALTOR® Barbara Clark points out a couple other spots, noting that “Housewares and the Papery are also great shops—I guarantee you will leave with something you had to have!”

The customers seem to agree, as numerous Yelp reviews for the Papery rave about the locale’s fun selection of greeting cards, home accent items, trinkets, and stationery.

Zinc Art + Object

Hours: 12:00pm-5:00pm Wednesday; 11:00am-7:00pm Thursday-Friday; 10:00am-6:00pm Saturday; 11:00am-5:00pm Sunday; and by appointment

Located at 102 3rd Ave. South Suite B Edmonds, WA 98020

With an eclectic array of modern gifts, art, and furniture, Zinc Art + Object brings contemporary artistry to Edmonds. Paintings, sculptures, and other one-of-a-kind items invite you to view the world in a different way and appreciate the beauty of different creative perspectives. If you’re in the market for something truly unique that speaks to your soul, check out Zinc Art + Object.

Teri’s Toybox

Hours: 10:00am-6:00pm Monday-Saturday; 11:00am-4:00pm Sunday

Located at 420 Main St. Edmonds, WA 98020

Stumped on where to find a good birthday present for a kid? Well, Lena Wood Maul says “Whenever I have to buy a birthday present for one of my kids to bring to a party, Teri’s Toybox is easy and offers fun, unique toys that don’t disappoint.” A local store for the past 30 years, Teri’s offers board games, costumes, back-to-school gear and more (Including pool gear for those upcoming summer months). Whether you’re a kid or a kid at heart, you will love the selections available at Teri’s Toybox.

Edmonds Bookshop

Hours: 10:00am-6:00pm Monday-Wednesday & Friday; 10:00am-8:00pm Thursday; 9:00am-5:00pm Saturday; 12:00pm-5:00pm Sunday

Located at 111 5th Ave. South Edmonds, WA 98020

Dedicated to “finding good homes for books since 1972,” Edmonds Bookshop is a one-stop shop for booklovers of all ages. From fiction to biography and picture books to young adult novels, this spot has something to pique every interest. With a frequent buyer bonus plan, gift wrapping services, special orders, and more, Edmonds Bookshop is all about serving the people of Edmonds with books they really want to read.

Arista Wine Cellars

Hours: 10:00am-7:00pm Monday-Wednesday & Friday; 10:00am-8:00pm Thursday; 10:00am-5:00pm Saturday; 12:00pm-5:00pm Sunday

Located at 320 5th Ave. South Edmonds, WA 98020

If you’re looking for the perfect wine for a special occasion, Arista Wine Cellars is here to help. They have a wide selection of wines to choose from, both from Washington and around the world. With friendly service and 18 years of experience, the staff at Arista Wine Cellars is sure to pair you up with just the right wine for your needs.

Fabric of Life Boutique

Hours: 9:00am-6:00pm Tuesday-Saturday; 12:00pm-5:00pm Sunday; closed Monday

Located at 519 Main St. Edmonds, WA. 98020

If you want to find some truly unique items and support global fair trade artisans right here in Edmonds, Fabric of Life Boutique lets you do just that. This shop is run by volunteers and has been involved in numerous events over the years to raise support and awareness for important local and global issues. For one-of-a-kind handmade jewelry, knick knacks, and household items that represent a cause for the greater good, look no further than Fabric of Life Boutique.

Edmonds Farmers Market

Dates & Hours: May 6-June 10, 9:00am-2:00pm (Garden Market); June 17-October 7, 9:00am-3:00pm (Summer Market)

Located at 5th and Bell in Downtown Edmonds (Garden Market) & Downtown Edmonds on 5th Street from Main at the fountain to Bell and east up Bell Street around Centennial Plaza (Summer Market)

Hosted by the Edmonds Museum, the Edmonds Garden and Summer Farmers Markets are a much-loved local pastime. “Edmonds farmers market is my favorite spring and summer activity,” says Caitlyn Johnson. “They have beautiful flowers and hand made local jewelry that I usually can’t pass up!”

Both markets are open to all vendors with products handmade or “Home Grown in Washington,” which provides residents with a perfect opportunity to see what businesses are around to support, like Hunni Co. “Hunni Co is also a locally owned business that keeps Edmonds beekeepers in business with delicious local honey and the farmers market in the summer can’t be beat!” says REALTOR® Andrea Wetzel. If you want to experience all the history and diversity of Edmonds in one place, check out one of the Edmonds Farmers Markets this year.

Uncategorized • March 29, 2017

Should you buy or rent in today’s market?

by Casey Bui

Does it Make More Sense to Rent… or Own?

break-even horizon seattle

*The amount of time you need to own your home in order for owning to be a superior financial decision.

With Seattle’s robust job market and high housing costs, there has been a lot of talk lately about the cost of living in the Greater Seattle area. In fact, Seattle is now the 5 th most expensive city to rent in the country according to a new study from Nested.com. The average monthly rental price for a one bedroom apartment in the city of Seattle is $1,790 according to Zumper.com, up 8.5% year-over-year; and a two bedroom is $2,470, up 6% year-over-year! With rising rental rates, still historically low interest rates, and home prices on the rise, the advantage of buying versus renting has become clear for folks who have a down payment saved, good debt-to-income ratios and strong credit. Currently, the breakeven horizon (the amount of time you need to own your home in order for owning to be a superior financial decision vs. renting) in the Greater Seattle area is 2.4 years according to Zillow research.

An additional study by Nested.com outlines the monthly rental costs for a single person or a family of four, as well as the yearly income required. In Seattle, it costs the average single person $1,288.76 a month to rent, which requires an annual income of $53,328.00. The average family of four costs $2,665.34 for monthly rent, and an annual income of $101,186.48. That is a lot of money one would be paying towards someone else’s investment.

There are several factors to consider that will lead you to make the best decision for your lifestyle and your financial bottom line. One of the biggest factors is interest rates! Currently, the rate for a 30-year fixed, conventional, conforming loan is hovering around 4.25%. That is amazingly and historically low, making the advantage of securing a mortgage huge. What is nice about having a mortgage is that the payment stays the same over the term of the loan. With renting, rates can be increased at any time, and you are paying down someone else’s asset, not your own. Owning gives the homeowner control over their overhead while getting to make their house their home. What is also so great about owning, is that once you have hit the breakeven horizon, every month that ticks away thereafter is building your nest egg in value. The long-term benefits of owning are abundant, including the stability of not being asked to move. These are important factors to consider for everyone, but especially the younger folks who are enjoying the benefits of Seattle’s attractive job market.

Where folks are having to compromise most due to affordability is commute times, and settling in less urban neighborhoods. Worth pointing out, is the average home price in South Snohomish County is 46% less than Seattle Metro – that is a huge savings! Some people, mainly millennials, have not been willing to give up living in the more core urban neighborhoods that have high walk scores and shorter commute times. That should be apt to change as rents are rising fastest in those areas. The advantages of moving out a little further and securing a home will start people on the track of building long term wealth.

If you or anyone you know is currently renting and is considering a change, please let us know as we would be happy to get their questions answered to help them make an informed decision.

Posted on March 23, 2017 at 10:32 am
Windermere Real Estate North | Posted in Local Market Analysis | Tagged Breakeven Horizon, First Time Home Buyers, Market Research, Mortgage, Rent vs. Own