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As we welcome December, the holiday spirit is in full swingđ! With festive lights, cozy gatherings, and the end of the year fast approaching, it's the perfect moment to reflect on the real estate market and plan for the year ahead.
Whether you're considering selling your home, exploring investment opportunities, or just staying updated on trends, this monthâs newsletter is packed with insights to help you navigate the market confidently.
So grab a mug of hot cocoa, settle by the fire, and letâs dive into the December market highlights!!
Snohomish County Market Health Check
What you need to know:
NAR Settlement & New Real Estate Practices
The Golden Era - A great time to thrive!
Housing & Economic Hot Takes
Financial Tips & Tricks
Estates, Probates & Wills
Home Maintenance & Safety Tips
Local Happenings
If you donât currently receive my monthly mailed newsletter, âFront Porch Newsâ and would like to, please email me at [email protected] and Iâll get you added.
Joe Frank - Real Estate Broker | eXp Realty | (425) 501-6901 (text or call)
Snohomish County Market Health Check
The December 2024 Snohomish County housing market analysis is here!
The Snohomish County housing market is entering its usual winter slowdown, but thereâs still plenty to learn about current trends and whatâs ahead for 2025. For December, the data indicates a dip in average sale prices, influenced by seasonality and rising mortgage rates. Homes are selling for about 1.9% below asking price, giving buyers more negotiating power, while sellers benefit from pricing their homes competitively.
Inventory remains tight, with fewer new listings and homes for sale as winter sets in. Serious buyers, however, still have opportunities, as pending sales reflect motivated activity despite quieter conditions. On average, it takes 15 home showings before reaching a deal.
Looking ahead, the spring market should bring more activity, but economic conditions, including mortgage rates, will be key drivers.
Want the full scoop? Check out the full article for more details and analysis: Snohomish County Real Estate Health, Trends & Insights for DECEMBER 2024.
You can review the charts behind the Market Health Check along with additional mortgage and economic data here: JoeFrankRealtor.com/data
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)
NAR Settlement & New Real Estate Rules
The âsagaâ continuesâŠ.
The Department of Justice (DOJ) is challenging the National Association of Realtors (NAR) over reopening an antitrust investigation despite a 2020 settlement.
The DOJ argues it retained the right to revisit antitrust issues, citing long-standing policies. NAR disputes this, pushing for the Supreme Court to uphold the settlement terms.
The case stems from policies like Clear Cooperation and broker compensation rules. With an appeals court siding with the DOJ earlier, the Supreme Court will now decide the case's fate. For full details and the latest news, check out this article on RealEstateNews.com.
If youâre a potential home buyer, check out this information - it could save you a lot of time and stress down the road: https://www.nar.realtor/the-facts/homebuyers-what-the-nar-settlement-means
If youâre considering buying and/or selling, itâs essential to discuss and fully understand the new regulations and requirements with your Real Estate Agent / REALTORÂź. They should be well informed on the new requirements and open to addressing any questions or concerns you may have.
And please remember, both buyer and seller agent compensation is negotiable, and always has been.
The Golden Years - A great time to thrive!
How to Enjoy Your Retirement Years
Retirement is your time to relax, explore, and embrace what makes you happy. Here are some ideas to make the most of it:
Define Your Goals: Retirement is a blank slate. Whether you dream of traveling, pursuing hobbies, or volunteering, set goals to keep life exciting and fulfilling. Consider doing this prior to retirement to really prepare and make the most of your Golden Years!
Stay Active: Physical activity is key to a happy retirement. Regular walks, yoga, biking, skiing, hiking, gardening, etc not only keep you healthy but also boost your mood!
Maintain Social Connections: Spend time with friends and family, join clubs, or participate in community events. Building relationships helps keep loneliness at bay.
Pursue Lifelong Learning: Pick up a new skill, take a class, or explore online courses. Staying mentally engaged sharpens your mind and broadens your horizons.
Financial Check-In: Ensure your finances are in order to support your lifestyle. Work with a trusted advisor to balance enjoying today while securing tomorrow.
Give Back: Volunteering or mentoring can bring a sense of purpose and fulfillment while positively impacting others.
Retirement is your reward for years of hard work. Take it at your pace, focus on what brings you joy, and embrace this new chapter with enthusiasm!
Smart real estate decisions, tax-friendly investments, and a sound budget can help make your retirement as financially free as it is enjoyable.
For more ideas and a list of amazing financial advisors or general contractors that can provide professional guidance and help bring your ideas to life, contact me today!
Expert Picks & Hot Links
Stay Informed with the Best Insights!
Check out these hand curated (by yours truly ) must-read articles and reports from top real estate and financial experts that provide industry insights for staying in the know and ahead of the game! These articles provide a more national perspective on housing and the economy, but in most cases are happening in our communities or influence our local market.
Realtor.com News: Eminent Domain Isnât Just a âYellowstoneâ Plot PointâItâs a Real-Life Nightmare for Many Americans
In Washington State, eminent domain allows the government to take private property for public use, such as roads or bridges, but owners must receive âjust compensation.â Following the controversial 2005 Supreme Court case Kelo v. New London, the definition of âpublic useâ expanded to include private economic development, sparking concerns about potential abuse. Washington responded with HB 1458 in 2007, mandating public notice for property owners before decisions on condemnation. While this is a positive step, significant reforms are still needed to protect property owners, especially vulnerable communities often targeted by eminent domain. Hereâs the full article from the Institute for Justice.
Zillow Research: Home Sales Poised to Increase in 2025 if Mortgage Rates Cooperate.
Summary: National housing trends reveal a mixed market as we head into 2025. Erratic mortgage rate movements, which defined 2024, are expected to stabilize gradually next year. Zillow forecasts slight growth in home sales (4.16M) and a modest 2.2% rise in home prices for 2025. Inventory remains 26% below pre-pandemic levels but shows steady improvement, while new listings are still down by 14% compared to pre-pandemic numbers. Buyers may find better opportunities this winter as competition cools, with fewer bidding wars and more price cuts.
Redfin Mortgage News: Fed on Course to Cut Rates Next Week After As-Expected Inflation Report
Summary: The Fed is on track to cut interest rates by 25 basis points at next weekâs meeting (12/17 - 12/18), following November's inflation report that aligned with market expectations. Core inflation rose 0.3% month-over-month and 3.3% year-over-year, driven by steady services inflation and temporary goods price increases. Shelter (housing) inflation, a lagging indicator, continues to decline, with rents stabilizing after years of higher rates. Despite inflation staying slightly above target, the Fed remains confident it will reach its goal over time. Markets expect two rate cuts in 2025, but fiscal policy, like potential tariff increases, could alter this trajectory.
Financial Investing Tips & Tricks
How to Analyze a Rental Property for Profitability
Investing in rental properties can be highly lucrative, but understanding profitability is crucial. Following are key metrics to help evaluate a propertyâs financial potential:
NOTE: These are basic principles meant to provide an overview to get you started - please contact me for more information or talk to an accountant or financial advisor to ensure investing in real estate is right for you and your situation. Investing in real estate can be risky, especially in the current economic environment of high home prices and high labor and material costs should you need to repair, improve or renovate a property.
1. Calculate Cash Flow
Cash flow measures the income left after expenses. Use this formula:
Cash Flow = Gross Rental Income - Operating Expenses
Gross Rental Income: Monthly rent amount x 12 months.
Operating Expenses: Property taxes, insurance, maintenance, utilities, HOA fees, property management costs, etc
Some Tools you Can Use:
2. Determine ROI (Return on Investment)
ROI evaluates how much return youâll get based on your investment:
ROI = (Annual Cash Flow / Total Investment) x 100
Total Investment: Down payment + closing costs + renovation expenses.
A good ROI for rental properties typically ranges from 8% to 12% which can be difficult to find these days. Looking out of state may be an option, especially if you plan to use a Property Management company. I work with amazing real estate agents all over the US should you be interested in this path.
Tools to Use:
DealCheck ROI Calculator (free trial)
3. Understand Cap Rate (Capitalization Rate)
Cap rate compares property income to its purchase price:
Cap Rate = (Net Operating Income / Purchase Price) x 100
Net Operating Income: Gross income minus operating expenses (excluding loan payments).
Look for cap rates between 4% and 10%, depending on the market.
Tools to Use:
Key Tips
Compare properties in the same area for realistic benchmarks.
Donât forget to budget for unexpected repairs or vacancies (error on the side of caution when estimating expenses and add budget for the unforeseen).
Leverage tax benefits like depreciation to enhance profitability.
Additional Insight & Help
If youâre interested in learning more about the world of property investing (flips or short / long term rentals), please contact me and Iâd be happy to discuss further. There are also many other great resources out there online, or your financial advisor or accountant.
â Looking to make sure your âfinancial houseâ is in order? Hereâs a list of Certified Financial Planners in the Snohomish County area (you can also broaden or narrow the search results). If youâre interested in Tax Planning, be sure to gauge a Financial Plannerâs familiarity and experience with such.
Estates, Probates & Wills
A Simple Guide to Estates, Probates, and Wills
If youâre age 50 or older, planning for the future is one of the greatest gifts you can give to yourself and your loved ones. While the terms âestates,â âprobates,â and âwillsâ might sound overwhelming, understanding the basics can make a big difference down the road.
Hereâs a quick guide with the basics to help you get started:
Wills: A will is a legal document that outlines how your assets (like your home, savings, and possessions) will be distributed after you pass away. Itâs also where you can name guardians for minor children.
Estates: Your estate includes everything you ownâproperty, investments, and personal belongings. Proper planning ensures your estate is handled according to your wishes.
Probate: Probate is the legal process that happens after someone passes, where a court oversees the distribution of assets and payment of debts. Itâs often necessary if you donât have a living trust.
Living Trusts: A legal arrangement where your assets are placed into a trust during your lifetime and transferred to your beneficiaries after you pass away, most likely allowing you to bypass probate. It provides privacy, reduces delays, and can save your loved ones from costly legal fees.
Taking the time to plan now can help your family avoid unnecessary stress and legal challenges later.
If youâre unsure where to start or need assistance, Iâm here to help. Visit ProbatePropertyHelp.com for more resources, or feel free to reach out. Iâd be happy to guide you through the process and put you touch with an Estate Planning Attorney that best meets your needs (and location).
Please contact me at [email protected] or 425-501-6901 (call or text) or visit ProbatePropertyHelp.com for more information and help.
December Home Maintenance & Safety Tips.
As the temperatures drop and the holiday season kicks into high gear, itâs a great time to focus on keeping your home safe and cozy. Here are 5 home maintenance and safety tips for December:
Inspect and Clean Your Chimney
If you have a wood-burning fireplace, schedule a professional chimney cleaning to remove soot and creosote buildup. This reduces the risk of chimney fires and ensures safe, efficient heating throughout the winter.If you have a gas fireplace, be sure to have it inspected and serviced once a year to insure itâs operating safely and efficiently.
Check and Test Smoke, Carbon Monoxide Detectors, and Fire Extinguishers
With furnaces and fireplaces running, itâs crucial to test all smoke and carbon monoxide detectors. Replace batteries if needed and make sure detectors are fully operational and located in the proper areas to keep your family safe. Make sure you have fire extinguishers in the right spots, and theyâre charged and ready for action. Learn more from First Alert.Check Attic Insulation
Proper attic insulation helps keep your home warm and reduces energy bills. Inspect your attic for adequate insulation and consider adding more if needed to prepare for freezing temperatures.
Stay warm and safe this December! These simple steps will help protect your home and give you peace of mind during the winter season.
If you need help with any of the above, I work with some great contractors that can assist with any of the above projects. Just drop me a line!
Local Happenings
Christmas Lighting (or exterior illumination đ ):
Upcoming events around Snohomish County
Looking for a good meal? Learn about upcoming Food Trucks that will be around Snohomish County.
âFor it is in giving that we receiveâ - Saint Francis of Assisi If you or someone you know is seeking professional 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: 425-501-6901.
Your real estate journey is my priority!
Have we worked together in the past? If so, and youâd 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.
You have received this newsletter because you are a member of my existing mailed newsletter, or you subscribed to this digital newsletter. You can always unsubscribe from our mailing list, by clicking on Unsubscribe below.
Joe Frank, Real Estate Broker | REALTORÂź, PSA, SRESÂź, SFRÂź, MRP | eXp Realty, License #: 21011387
[email protected] | 425.501.6901
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