As you can see from the chart courtesy of Aaron Hoy at Capstone Home Loans, we are still at a historically low rate. With rates expected to reach levels around 5% by the end of 2018 does this impact your plans? For some just excited to buy their first home it will impact what they can purchase. This could cause that person to purchase something smaller, needing a little more work, or in a slightly different area. Is this a reason not to purchase? I don’t feel that way at all. Prices are still going up and while we could see prices slow by end of 2018 into 2019, they will still be going up. Even a loan at 5% is fantastic. We have been spoiled now with several years below or near 4%.
In my opinion if the rates go up to 5% or slightly over this year the impact on the overall market will be very small. Each persons situation is unique and some will feel the hit with a slight bump in rate as noted in the example above. For most it will just be an adjustment to what/where they purchase.
Buying a home now will set you up for your future plans. Owning a home is likely the largest investment you will make. Is it always easy, no. I am here to help guide you through the process you make sure it is a good investment for you.
Multi-generational home is a property that can have multiple families living under one roof in separate spaces. A multi-generational home could house a married couple caring for an older parent, a grandparent living with an adult grandchild, or even Baby Boomers living with adult children who have moved back into the home.
This has becoming such a trend that the National Association of REALTORS® has begun to track the buying trends of this type of housing, although it is has likely been a trend since before civilization even began. After World War II, the trend began for families to be more of a self-contained unit, housing just a single generation under one roof. However, the demand for multi-generational homes has risen in the last few years, partially due to the recession and its impact on the nuclear family. Families found it more financially feasible to band together and share resources and now these types of homes are in high demand due to the success of these living arrangements. In their 2015 Home Buyer and Seller Generational Trends Report, The National Association of REALTORS® reported that 13% of all the homes purchased in 2015 was a multi-generational home. Buyers made their purchase for a number of reasons:
Builders are just starting to include floor plans with separate living quarters possibly with their own ensuite, kitchen, and public living space. Another trend in multi-generational housing solutions is to remodel an existing home. Making room for family members that need independent living is a very sought after remodeling request which will continue to grow in the coming years.
In Snohomish county the current inventory for January 2016 over 2015 is down over 7% while at the same time the number of homes accepting offers (pendings), rose by over 17%. How is this possible? Well it has been happening for several consecutive months now. What it means is that now is the time to sell if you want top dollar and lots of competition from buyers. Buyers are “settling” now for that home which has been on the market for a while with the thinking that at least it is available. Other sellers that priced there homes too high last summer & fall now have homes that look promising to a buyer either because they have reduced the price or the market has caught up to that “optimistically” priced home.
While it is not as crazy as the Seattle and Eastside area, Snohomish county is a very busy place.