The Real Deal Newsletter for April

In this month’s Newsletter we’ll look at the following:

• Your Adult Kids Are Moving In (or not moving out) - Can You Afford It?

• What Do You Do - Your Home Appraisal is Lower Than the Offer

• Local Snohomish County Real Estate Trends

• The Broader Economy - Economic & Real Estate News

• Financial Investing Tips & Tricks

• Home Maintenance & Safety Tips

• AI - Artificial Intelligence

• Other fun nuggets

If you don’t currently receive my monthly mailed newsletter, “Front Porch News” and would like to, please email me at [email protected] and I’ll get you added!
Joe Frank - Real Estate Broker | eXp Realty | (425) 501-6901 (text or call)

“I'd let my kids live at home as long as they like if it gave them a leg up in life.” That sentiment is gaining ground in countries where kids used to commonly leave home at 18 and never look back.

But with today’s rents averaging $1,964/mo. according to Rent.com, and house prices out of sight for many first-time buyers, young adults can't afford to rent and save for a down payment and work on a career.

While some parents enjoy having their adult kids around for company, it’s not always financially easy. According to a study by The Pew Research Center nearly 20% of parents said that having their kids living at home is hurting their future finances. However, 72% also said their kids contribute to finances to offset household costs to some degree.

Parents may feel uncomfortable asking their adult children to pay towards expenses, especially when the point is to save. But experts say that allowing the kids to pay nothing doesn't serve them or the parents.

The best approach is to have an adult conversation about household expenses and come to a proportionally fair contribution. Parents should also be transparent about their own finances. If they’re catching up on retirement savings, the kids need to know that. If they’re living paycheck to paycheck or paying high medical bills, the kids need to know.

Some parents and their adult kids decide to buy a larger home together. If that's you, let me know and I'll help you secure a home that works for all of you.

🤨 What Do You Do - Home Appraisal is Lower Than the Offer

When a seller gets a great offer for their home, that’s not the end of the story. Sometimes the appraisal comes in lower than the offer. That’s when a real estate agent should jump in and work with the appraiser to present objective facts and data such as the latest comps, and other detailed rationale to explain why a home may actually be worth the asking price.

1. Understanding the Appraisal Process: Appraisals are conducted by professional appraisers to determine the fair market value of a property. They consider various factors including the property's condition, location, comparable sales (comps), and market trends. If the appraised value comes in lower than the offer, it indicates that the lender may not be willing to lend the full amount of the buyer's offer.

2. Role of a Real Estate Agent: A knowledgeable real estate agent can play a crucial role in navigating situations where the appraisal falls short. They can provide objective facts and data to support the property's value, helping to bridge the gap between the offer price and the appraised value.

3. Presenting Objective Facts and Data: Real estate agents should gather recent comparable sales (comps) in the area to demonstrate the property's value. These comps should be similar in terms of size, condition, and location to provide a realistic comparison. Additionally, agents can highlight any unique features or recent upgrades that may justify a higher value for the property.

4. Detailed Rationale: Along with presenting comps, agents should provide a detailed rationale explaining why the home is worth the asking price despite the lower appraisal. This may include factors such as the property's desirable location, quality of construction, or potential for future appreciation. Agents should approach this communication with transparency and professionalism, helping both buyers and sellers understand the reasoning behind the asking price.

5. Negotiation and Resolution: In some cases, sellers and buyers may need to negotiate a new purchase price based on the appraised value. Real estate agents can facilitate these negotiations, advocating for their clients' interests while also seeking a mutually beneficial resolution. If necessary, agents can explore options such as requesting a reconsideration of the appraisal or obtaining a second opinion from another appraiser.

Local Snohomish County Real Estate Trends

Snohomish County’s real estate scene for March 2024 was sizzling! Prices soared due to low supply, with existing homes averaging $800,100 and new constructions hitting $914,700. Interest rates briefly dropped under 7%, boosting mortgage affordability and likely contributing to the price hike. Spring fever intensified the market frenzy, historically the prime time for buying and selling homes.

Inventory hit rock bottom, reminiscent of March 2022, with homes spending a mere eleven days on the market, the shortest since June 2023. Notably, homes sold for 3.5% above asking price, signaling fierce demand. As we exit the spring boom, prices may cool as demand wanes and mortgage rates hover near 7.5%.

Keep in mind, this data reflects Snohomish County specifics and varies across markets. For tailored insights or broader real estate discussions, reach out. Dive deeper into local trends and data at Joe Frank Realtor’s website.

Thanks for tuning in! Questions or comments? Connect via email, text, or social media. Let’s chat real estate! 🏠📈

Check out the full article for all the details and more HERE!

If you're interested in learning more about our local housing market, getting an accurate value for your home, or any other real estate help, please contact me any time: [email protected] or 425-501-6901 (text or call)

Economic & Real Estate News

• National Housing Market Update: 

  • In March 2024, Cape Coral and North Port, FL saw a 50% surge in homes for sale, the most in the U.S., while McAllen, TX jumped 25%. Both states have been building heavily, curbing home price growth. Nationally, new listings slowed with elevated mortgage rates, impacting housing markets. In Florida and Texas, listings are growing, prices are dropping, and homes stay longer on the market, contrasting with the trend in Snohomish County, where limited supply keeps prices high. This is a prime example of how housing markets can vary widely nationwide.…. Full article
    

  • America's pandemic boomtowns experienced a whirlwind four-year journey. Initially, the housing market surged due to remote work and low inventory, with homes selling swiftly and above asking price. However, the U.S. Federal Reserve's interest rate hikes in spring 2022 cooled the market, impacting both buyers and sellers. Now, these once-hot markets have cooled, with increased inventory and homes lingering longer on the market. Examples include Austin, TX, where prices dropped, and Tampa, FL, where property taxes and insurance hikes led to market adjustments. Similar trends are seen in Raleigh, NC, Denver, CO, and other boomtowns... Full article.
    

  • For 2024, mortgage rates aren't coming down as expected due to high inflation. Economic strength usually means higher rates, and we’re essentially in a strong economy, which is good, but may keep interest rates higher for longer. The Fed projected lower rates in December, but inflation stayed high. Recently, quarterly Gross Domestic Product (GDP) data showed Core Personal Consumption Expenditures (PCE) inflation jumped more than expected, causing market panic. However, monthly PCE data was slightly softer, showing lower inflation. Yet, rates stayed high. Purchasing Managers Indices (PMIs), tracking economic momentum, also affected rates. Mortgage rates hit five-month highs due to inflation worries. Pending home sales rose, but are still low overall. New home sales held up better… Full article.
    

  • Here’s an insightful online resource showing the health of the Washington State Economy via unemployment rates by county which vary from 4.1% (Snohomish & King County) to 11.9% (Ferry County)…. Full report.

Financial Investing Tips & Tricks

Here’s a great article from MoneyMentors.ca - it’s not your traditional “financial” tips and tricks guide, but may lead you down the path toward a better you, which often parlays into more success (however you define that).

Investing in yourself means becoming the best version of you! You set goals, learn new stuff, and take care of your mind and body. Plus, it's not just for you—it's for making the world better too! Want to start your self-investment journey? Here are 12 ways to get started (just pick one or two to begin!):

1. Learn new stuff forever! School's out, but learning's not. Dive into free online courses and cool money tips.

2. Keep your mental health in check. Stress less, take breaks, and be kind to yourself.

3. Set goals, and keep them realistic. Like setting up auto payments or updating your resumé.

4. Find a money-savvy mentor to guide you through the financial jungle.

5. Start a journal to track your money, thoughts, and goals.

6. Practice gratitude - it’s like a happiness booster!

7. Break those bad habits. Say bye to spending sprees and other not-so-great stuff.

8. Get organized! Find your important papers and keep your space tidy.

9. Stop procrastinating and get stuff done.

10. Declutter your digital life. Unfollow negative accounts and doom-scrolling.

11. Make a budget and stick to it. Your future self will thank you.

12. Set boundaries and say no to things that drain you. Protect your time, energy, and wallet.

Invest in you—it's the coolest adventure of all! 🚀 Full Article.

✅ Looking to make sure your “financial house” is in order? Here’s a list of Certified Financial Planners in the Snohomish County area (you can also broaden or narrow the search results). If you’re interested in Tax Planning, be sure to gauge a Financial Planner’s familiarity and experience with such.

April Home Maintenance & Safety Tips.

• HVAC system: Check your air conditioner and furnace filters to ensure they are ready for late spring and summer.

• Gutters: Clean and repair gutters and downspouts to prepare for April rains.

• Sprinklers: Check or install your sprinkler system to start the season.

• Patio and grill: Wash patio furniture and clean the grill.

• Smoke detectors: Check all smoke detectors in your home each month and replace batteries every 3-6 months.

• Dryer exhaust duct: Clean your dryer vents once a year to prevent house fires.

• Water heater: Drain your water heater at least once a year to flush out sediment and keep it clean.

• Windows and screens: Wash windows and screens with a wet paper towel to remove dust and dirt. 

If you need help with any of the above, I have worked with many great contractors that can assist with any of the above projects. Just drop me a line!

AI - Artificial Intelligence

• AI assists Radiologists by enhancing cancer detection.
  Mia, an AI tool, detected breast cancer signs in 11 women missed by human doctors, aiding early diagnosis. Tested with over 10,000 mammograms, it identified subtle cancer indications, crucial for early treatment. One tumor, flagged by Mia, went unnoticed by radiologists, highlighting its effectiveness. Mia’s instantaneous analysis could slash result waiting times from 14 days to three, potentially halving radiologists' workload. Mia learned from millions of mammograms globally, emphasizing inclusivity in AI healthcare. While Mia complements radiologists, it's not flawless, lacking patient history access and learning ability. Trials show promise, though further research is needed to integrate AI effectively into cancer diagnosis, reducing NHS staff pressure. Full Article.

Other Nuggets

• Things to do Spring 2024 around Snohomish County

  • Snohomish

  • Everett

“It is often the small steps, not the giant leaps, that bring about the most lasting change.” — Queen Elizabeth II

If you or someone you know is seeking expert advice on buying, selling, or understanding the real estate market in Snohomish County or beyond, don't hesitate to get in touch. I'm here to provide the insights and support you need. Reach out to me at [email protected], or call/text at 425-501-6901. Your real estate journey is my priority!

Have we worked together in the past? If so, and you’d like to share your experience with others, please consider leaving me a review on Google. I donate $50 to the Make-A-Wish foundation for each review (positive or negative) - many thanks! 🙏

DISCLAIMER: This content is for educational and entertainment purposes only.

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www.JoeFrankRealtor.com | [email protected] | 425.501.6901
Joe Frank, Real Estate Broker | REALTOR®, PSA, SRES, SFR®, MRP  | eXp Realty