What Do You Mean Housing Bubble?

Home prices are being driven up by lack of inventory and bidding wars. This can be scary and discouraging for some people looking to buy a home right now, afraid that we are in a housing bubble.

Here are three reasons why this market is totally different than the housing bubble we experienced a little over a decade ago.

  1. Housing supply is extremely limited. Inventory of homes for sale is currently running at less than two months. A healthy inventory is about six months, and in 2008 we were actually up as high as 11 months inventory.
  2. Homebuyers are more creditworthy. When the housing market crashed in 2008, mortgage standards were at an all time low for credit scores and down payment requirements, as well as providing income and assets to purchase. The current guidelines are much stricter, making the borrowers more financially secure.
  3. Homes have equity. Back in 2008, homeowners were pulling out equity causing many to be upside down. This time around, equity levels are extremely high, meaning that homeowners could see values decline slightly without concern.

Reach out any time with questions or if you need assistance with your home search!

In Today’s Market, Listing Prices Are Like an Auction’s Reserve Price

In Today’s Market, Listing Prices Are Like an Auction’s Reserve Price | MyKCM

For generations, the process of buying and selling a home never really changed. A homeowner would try to estimate the market value of their house, then tack on a little extra to give themselves some negotiating room. That figure would become the listing price. Buyers would then try to determine how much less than the full price they could offer and still get the home. As a result, the listing price was generally the ceiling of the negotiation. The actual sales price would almost always be somewhat lower than what was listed. It was unthinkable to pay more than what the seller was asking.

Today is different.

The record-low supply of homes for sale coupled with very strong buyer demand is leading to a rise in bidding wars on many homes. Because of this, homes today often sell for more than the list price. In some cases, they sell for a lot more.

According to Lawrence YunChief Economist at the National Association of Realtors (NAR):

“For every listing there are 5.1 offers. Half of the homes are being sold above list price.”

You may need to change the way you look at the asking price of a home.

In this market, you likely can’t shop for a home with the former approach of negotiating to a lower price.

Due to the low supply of houses for sale, many homes are now being offered in an auction-like atmosphere in which the highest bidder wins the home. In an actual auction, the seller of an item agrees to take the highest bid, and many sellers set a reserve price on the item they’re selling. A reserve price is the minimum amount a seller will accept as the winning bid.

When navigating a competitive housing market, think of the list price of the house as the reserve price at an auction. It’s the minimum the seller will accept in many cases. Today, the asking price is often becoming the floor of the negotiation rather than the ceiling. Therefore, if you really love a home, know that it may ultimately sell for more than the sellers are asking. So, as you’re navigating the homebuying process, make sure you know your budget, know what you can afford, and work with a trusted advisor who can help you make all the right moves as you buy a home.

Bottom Line

Someone who’s more familiar with the housing market of the past than that of today may think it’s foolish to offer more for a home than the listing price. However, frequent and competitive bidding wars are creating an auction-like atmosphere in many real estate transactions right now. Let’s connect today so you have a trusted real estate professional on your side to provide the best advice on how to make a competitive offer on a home.

Top Reasons to Own Your Home

Top Reasons To Own Your Home [INFOGRAPHIC] | MyKCM

Some Highlights

  • June is National Homeownership Month, and it’s a great time to consider the benefits of owning your own home.
  • If you’re thinking of buying a home, it might just help you find the stability, community, and comfort you’ve been searching for over the past year.
  • Let’s connect today to determine if homeownership is the right next step for you.

Last week The Jerry Blankers Team went to Lynden Paint and Flooring to speak to owner Trey Vogt and hear about their services plus offer you a chance at a $100 gift card to spend there. Be sure to check out the Instagram post HERE to enter! Duane Bode opened Lynden Paint and Flooring back in 1980 and Trey started working there in high school in 2016. Recently Trey became the owner when the opportunity arose.

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Facebook: Lynden Paint & Flooring
Address: 417 Front St. Lynden, Washington
​Website: www.lyndenpaintflooring.com
Phone: 360-354-5858

Lynden Paint and Flooring has a wide range of products and services. They can help you with your paint needs, flooring (vinyl plank, hardwood, tile, etc) and even have an in house interior designer, Pam, available to help you design the space of your dreams. Pam has over 40 years of experience designing homes.

Painting is a great way to transform and update a space such as a kitchen. Trey informed us that the main tools you need are a roller, a good brush to cut in, and painters tape. Current color trends are whites and greys though some brighter colors are popping up as accents.

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A personal favorite color of mine that has been trending for the last few years is Revere Pewter by Benjamin Moore. It looks beautiful in homes with white painted cabinets and woodwork as well as homes with light wood, dark wood features and just about everything in between. We chose to paint all interior walls of our home Revere Pewter and are incredibly happy with how it looks in all lighting variances, different angles and room sizes.

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The Benjamin Moore color of the year for 2021 is Aegean Teal (below) which is intriguing, balanced and soothing.

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Have you painted your home recently? If so, what color(s) did you chose?! Don’t forget to enter the giveaway HERE!

Follow us on Instagram @blankersrealestate and Facebook Jerry Blankers-Muljat Group North

Post compiled by Haley Parker // haleyparkerstyle.com@haleyparkerstyle

Where Do Experts Say the Housing Market is Heading?

Where Do Experts Say the Housing Market Is Heading? | MyKCM

Where Do Experts Say the Housing Market Is Heading?

As we enter the middle of 2021, many are wondering if we’ll see big changes in the housing market during the second half of this year. Here’s a look at what some experts have to say about key factors that will drive the industry and the economy forward in the months to come.

realtor.com

“. . . homes continue to sell quickly in what’s normally the fastest-moving time of the year. This is in contrast with 2020 when homes sold slower in the spring and fastest in September and October. While we expect fall to be competitive, this year’s seasonal pattern is likely to be more normal, with homes selling fastest from roughly now until mid-summer.”

National Association of Realtors (NAR)

Sellers who have been hesitant to list homes as part of their personal health safety precautions may be more encouraged to list and show their homes with a population mostly vaccinated by the mid-year.”

Danielle Hale, Chief Economist at realtor.com

“Surveys showed that seller confidence continued to rise in April. Extra confidence plus our recent survey finding that more homeowners than normal are planning to list their homes for sale in the next 12 months suggest that while we may not see an end to the sellers’ market, we might see the intensity of the competition diminish as buyers have more options to choose from.”

Freddie Mac

We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.”

Bottom Line

Experts are optimistic about the second half of the year. Let’s connect today to talk more about the conditions in our local market.

How to Refresh Your Outdoor Space with Spray Paint

Now that spring is in full force and we’re seeing more and more beautiful days, I’ve been working on refreshing my outdoor space. It’s important to me that it’s comfortable and inviting and after months of wind, snow, rain, etc. my outdoor furniture and decor can always use a little TLC. 

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We have had this outdoor patio table and chairs for years. It is metal but after spending so much time in the weather it’s not only dirty and has rust spots but the color isn’t looking as fresh as it did years ago either. 

​A great, inexpensive way to refresh patio furniture is with spray paint. Spray paint is quick, easy, inexpensive and gets into all of the small grooves and edges. Sure you could go buy a new patio set but that would cost you hundreds of dollars (or more!) where a can of spray paint can be found for $5-6. You may need 2 cans or more depending on your furniture size and number of pieces. This is the brand I used (below). I found it at a local paint store which offered a large variety of colors. I thought about really changing it up and doing a different color but ultimately decided to stick with black so that it continues to flow well with the rest of our patio furniture. This is a paint plus primer and works on plastic, wood, metal and more while also being great for both indoor and outdoor use (a must for my patio transformation)! I prefer the look of flat black for our patio furniture but they also offered glossy if that is more your style!

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Since I was in need of some new patio decor and already had the spray paint, I decided to visit my local dollar store as well to look for any buckets or bowls that I could use to decorate. Typically I only find bright colors there which doesn’t fit with my current decor vibe but I easily transformed the plastic red pieces I found by spraying them with the flat black spray paint as well. I also grabbed a couple bags of crushed rock to put in the bottom of the plastic containers as they are lightweight and can easily blow away if they are not weighed down. I then added shells, succulents, etc to the pots.

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Now, when it comes to spray painting the furniture and decor there a few basic practices that will help you have a smooth experience but it’s something even a first time painter can complete well and with ease.

Spray Painting Tips & Tricks

•Clean your items prior to spraying. Wipe off any dust, bugs, etc and sand (if needed).
•Avoid painting in the direct sun. This can cause bumps. Aim for a dry and moderately warm environment. This may include thinking ahead as it can take a while for paint to dry. I usually spray outdoors on the grass and put plastic down first but if the weather is an issue consider spraying in carport or garage with the garage doors open. Be sure to first move/cover your car and any other objects you don’t want to get any paint on. In my experience, the cans don’t overspray much but you can never be too cautious.
​•Spray thin layers. This will help prevent cracking and will allow you to create a more uniform look overall.
•Avoid spraying vertically to avoid drips. Lay items down and spray down onto the side that faces up, allow time for that to dry completely, then turn it over (repeat as necessary). Consider changing whatever you have laid down under the project, such as a drop sheet, so that you are not setting the finished side onto potentially wet paint on the sheet. Often the drips on the drop sheet are thicker than the layer of paint you sprayed on your piece so even though your piece is dry, they will not be.
​•Shake your can well prior to spraying to ensure an even color.

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While I was at it I decided to switch out our patio chair pads with a neutral, plush option that fits our current style better. We love them! Small changes like that can really make such a big difference in the overall look and feel of your space.

I hope you found these little tips and tricks helpful when it comes to refreshing your patio furniture and decor with spray paint. Have you ever used spray paint for a project? I’d love to hear your experiences and advice!

Follow us on Instagram @blankersrealestate and Facebook Jerry Blankers-Muljat Group North

Post compiled by Haley Parker // haleyparkerstyle.com@haleyparkerstyle

Experts Say Home Prices Will Continue to Appreciate

Experts Say Home Prices Will Continue to Appreciate | MyKCM

It’s clear that consumers are concerned about how quickly home values are rising. Many people fear the speed of appreciation may lead to a crash in prices later this year. In fact, Google reports that the search for “When is the housing market going to crash?” has actually spiked 2450% over the past month.

In addition, Jim Dalrymple II of Inman News notes:

“One of the most noteworthy things that came up in Inman’s conversations with agents was that every single one said they’ve had conversations with clients about whether or not the market is heading into a bubble.”

To alleviate some of these concerns, let’s look at what several financial analysts are saying about the current residential real estate market. Within the last thirty days, four of the major financial services giants came to the same conclusion: the housing market is strong, and price appreciation will continue. Here are their statements on the issue:

Goldman Sachs’ Research Note on Housing:

“Strong demand for housing looks sustainable. Even before the pandemic, demographic tailwinds and historically-low mortgage rates had pushed demand to high levels. … consumer surveys indicate that household buying intentions are now the highest in 20 years. … As a result, the model projects double-digit price gains both this year and next.”

Joe Seydl, Senior Markets EconomistJ.P.Morgan:

“Homebuyers—interest rates are still historically low, though they are inching up. Housing prices have spiked during the last six-to-nine months, but we don’t expect them to fall soon, and we believe they are more likely to keep rising. If you are looking to purchase a new home, conditions now may be better than 12 months hence.”

Morgan Stanley, Thoughts on the Market Podcast:

“Unlike 15 years ago, the euphoria in today’s home prices comes down to the simple logic of supply and demand. And we at Morgan Stanley conclude that this time the sector is on a sustainably, sturdy foundation . . . . This robust demand and highly challenged supply, along with tight mortgage lending standards, may continue to bode well for home prices. Higher interest rates and post pandemic moves could likely slow the pace of appreciation, but the upward trajectory remains very much on course.”

Merrill Lynch’s Capital Market Outlook:

“There are reasons to believe that this is likely to be an unusually long and strong housing expansion. Demand is very strong because the biggest demographic cohort in history is moving through the household-formation and peak home-buying stages of its life cycle. Coronavirus-related preference changes have also sharply boosted home buying demand. At the same time, supply is unusually tight, with available homes for sale at record-low levels. Double-digit price gains are rationing the supply.”

Bottom Line

If you’re concerned about making the decision to buy or sell right now, let’s connect to discuss what’s happening in our local market.

Are Interest Rates Expected to Rise Over the Next Year?

Are Interest Rates Expected to Rise Over the Next Year? | MyKCM

So far this year, mortgage rates continue to hover around 3%, encouraging many hopeful homebuyers to enter the housing market. However, there’s a good chance rates will increase later this year and going into 2022, ultimately making it more expensive to borrow money for a home loan. Here’s a look at what several experts have to say.

Danielle Hale, Chief Economistrealtor.com:

Our long-term view for mortgage rates in 2021 is higher. As the economic outlook strengthens, thanks to progress against coronavirus and vaccines plus a dose of stimulus from the government, this pushes up expectations for economic growth . . . .”

Lawrence Yun, Chief EconomistNational Association of Realtors (NAR):

In 2021, I think rates will be similar or modestly higher . . . mortgage rates will continue to be historically favorable.”

Freddie Mac:

We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.”

Below are the most recent mortgage rate forecasts from four top authorities – Freddie MacFannie Mae, the Mortgage Bankers Association (MBA), and NAR:

Are Interest Rates Expected to Rise Over the Next Year? | MyKCM

Bottom Line

If you’re planning to buy a home, purchasing before mortgage interest rates rise may help you save significantly over the life of your home loan.

Early Spring Garden Prep Tips

After what feels like a long, cold winter it can seem intimidating to cleanup and start prepping for a spring garden but now is the time to get started if you haven’t already. Whether you are planning to plant annuals, perennials, trees or shrubs, or grow fruits, vegetables or herbs I recommend walking around your yard to plan before heading to the store. Take note of when and how much sun/shade each area receives to ensure you choose not only a product that looks appealing to you but something that will thrive in each particular location as well. Knowing these facts ahead of time will reduce your stress and overwhelm, plus allow the experts at the store to help you make decisions. 

​Other things to consider: how much time will you dedicate to upkeep? Be realistic and know your limits. There’s nothing worse than overcommitting and being stuck with an overgrown, unkept space shortly after. When in doubt, less is more. When it comes to edible plants such as fruits, vegetables and herbs, if your family doesn’t eat it or use it in any form, think again and see if it’s something you really want to add to your yard as you may want to dedicate your efforts elsewhere.

“The best thing for your garden is your shadow.” – unknown

You’ll want to prep the area before heading to the store so that you can get right to planting after purchasing your products. This entails picking up fallen leaves and branches, removing debris, and fixing any damaged fencing, edging, etc. If the project seems too overwhelming start by dedicating a bit of time, even 15 minutes, each day to cleanup or stick to focusing on one section at a time.

Click Here for our detailed Spring Yard Cleanup Checklist!

Another important step is to replace and/or ready your garden tools. The tools needed can vary based on the type of garden you choose (trees and bushes require different prep and upkeep than a vegetable garden) but some desired items include a watering can, weeding tool, gardening gloves, gardening knee pad, hose, rake, shovel, garden shears, hedge shears, loppers, wheelbarrow, heavy-duty hand pruners, hand rake and a hand trowel. If you will be growing a vegetable garden additional tools include a digging fork, spade, raised garden beds, and garden fencing.

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We recommend going to Van Wingerden’s Home and Garden located at 8210 Portal Way in Blaine, Washington, for all of your gardening needs. Their friendly staff can answer your questions and assist you in determining what is best for your space. Check out our fun giveaway with them HERE!

Van Wingerden’s Home and Garden is family owned and operated. In addition to your exterior garden needs you can find houseplants, home decor and more! We dropped by and spoke with Jen, manager, and she answered a few questions for us. Full video can be found HERE.

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Jerry: Okay, Jen, I’m ready to plant some plants on my patio. Am I better off with annuals or perennials? What’s the difference?
​Jen: For hanging baskets and planters you’re better off with annuals. They’re going to flower for you all season long. The trees, shrubs, perennials, those will come back every year but they usually have a shorter flowering season; they’re great for garden beds, etc.

Jerry: (Being at the end of April in PNW Washington) Is it too early to plant?
Jen: We’re right on that verge of being okay to put everything out but I would be cautious putting out stuff like your tomatoes, peppers, squash, things like that. Even a hanging basket, you don’t want it to get too cold. Usually around Mother’s Day is the perfect time to get all of that.

Jerry: Speaking of Mother’s Day, what do you have for Mother’s Day here?
​Jen: Hanging baskets are always the best seller for Mother’s Day. We also have planters, it’s always great to get Mom a really nice shrub like a hydrangea or rhododendron. We have lots of options for different ideas if you don’t want a hanging basket.

Jerry: Are there certain plants that thrive here better than others?
​Jen: I personally am not the expert on that but I have people here that can help you. What we carry here is usually really great for this region and we are sure to tell you in the case that it’s not.

​Van Wingerden’s Home and Garden is open Monday-Saturday from 9am-5pm with extended hours until 6pm currently for a short time. Don’t forget to check out our giveaway for TWO premium 12” hanging baskets from Van Wingerden Home and Garden HERE!

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Follow us on Instagram @blankersrealestate and Facebook Jerry Blankers-Muljat Group North

Post compiled by Haley Parker // haleyparkerstyle.com@haleyparkerstyle

This Isn’t a Bubble. It’s Simply Lack of Supply.

This Isn’t a Bubble. It’s Simply Lack of Supply. [INFOGRAPHIC] | MyKCM

Some Highlights

  • In a recent article, Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), discussed the state of today’s housing market.
  • When addressing whether or not today’s high buyer competition and rising home prices are evidence of a housing bubble, Yun said that this “is not a bubble. It is simply lack of supply.”
  • Today’s housing market is healthy, and rising prices are driven by real buyer demand. Let’s connect to talk about the best ways to navigate such an energetic market.