The Real Deal Newsletter for February

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

• Valentines Day - How did it come to be?

• How To Know (or confirm) If a Home’s Square Footage is Accurate

• What Buyers Wish They’d Known About Getting a Mortgage

• Local Snohomish County Real Estate Trends

• The Broader Economy - Economic & Real Estate News

• Financial Investing Tips & Tricks

• February 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
REALTOR®, PSA, SFR®, MRP  | eXp Realty | (425) 501-6901 (text or call)

💘 The Backstory of Valentine's Day...

The Mr. Valentine of Valentine’s Day was preaching in Rome when he died and was martyred on February 14th, 269. Afterward, his remains were visited by pilgrims who revered him as a patron saint of beekeepers.

How did St. Valentine become associated with love? Legend says that Valentine sent his jailer's daughter a letter signed, "from your Valentine." Or he secretly married couples to spare the husbands from going to war. Or Pope Gelasius I may have declared Saint Valentine’s Day to re-tool a Roman love festival. Or Chaucer drew a connection between love and St. Valentine in a poem, and soon after, lovers began sending decorated love poems on February 14.

Valentine’s Day is now a multi-billion-dollar commercial enterprise. If that seems mercenary, consider that the relics of St. Valentine's bones were also a commercial venture. Relics comprised the backbone of Rome's original tourism industry, so unbeknownst to him, St. Valentine has been used for profit for the past 1,754 years.

🤨 How To Know (or confirm) If a Home’s Square Footage is Accurate

Square footage is the unit of measurement used to calculate home size. Providing misleading or wrong square foot information on the MLS is a violation and attracts a fine. However, not all property for sale is listed on the MLS, and even if it is, it's possible that the size shown on tax records (where the listing figures come from) is wrong.

Sometimes legal renovations were not correctly reported, and sometimes the original appraisal was wrong. For instance, a builder will submit figures for a new build, but then they might make subtle changes that don't appear in the record. In some locations, unpermitted structures and enclosed porches are not allowed to be included in the measurement. The only way to ensure you have an accurate measure of square footage is to hire your own appraiser to take a new measurement.

A homeowner who suspects a size discrepancy might want to measure before selling to increase price or to decrease value for tax purposes. A buyer who suspects a discrepancy should hire an appraiser to ensure they’re not paying for square footage that won’t be counted when they sell.

If you are buying or selling a home, be sure your Real Estate Agent conducts a thorough review of all information that goes into the listing and selling contracts, and that square footage is accurate. If you have any questions or concerns about your home’s square footage, or a home you’re interested in, I’d love to help you.

What Buyers Wish They’d Known About Getting a Mortgage - Free Report

Many recent home buyers say they wish they’d known more about getting a mortgage. To help future buyers, I’ve compiled a list of things they wish they’d known, so you can benefit from their experience. Just Scan the following QR code to read now or text me for a copy.

Local Snohomish County Real Estate Trends

Hey Snohomish County folks!  January's housing scoop is in, and it's a mixed bag of tricks!

Home sales prices nudged up to $747,000 from December's $712,000, but guess what? They're still not beating last fall's numbers.  Inventory? It's playing hide and seek, hitting a low of 138 homes. And if homes were marathon runners, they'd be slowing down, and resting (sitting) on the market for an average of 32 days now.

But here's the kicker: 98.4% of homes are selling at list price, so no crazy bidding wars, but also no big bargains.

Mortgage rates? They're like that friend who can't decide where to eat – hovering in the mid-to-high 6% range after teasing us with a sizable drop last October.

Stuck in a low-rate mortgage from the golden years of 2020-2022? You're not alone. The lock-in effect's got people cozy in their current digs, while new homes can't pop up fast enough to meet everyone's dreams (wants and needs!)

Expect more of this slow dance until mortgage rates chill out and/or more new homes join the party.

Want the full lowdown, or got your eye on a specific home and location? Reach out any time!

And remember, housing markets are as varied as your Netflix recommendations (housing markets / values can vary from state to state, county to county, zip to zip, and even neighborhood to neighborhood!)

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

(* full disclosure I had ChatGPT help me write this summary – what do you think?)

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: 

  • More buyers are touring homes because mortgage rates are holding steady below 7%, down from 8% this past October, and some buyers are worried prices will increase more if they wait longer. Sale prices rose 5.5% year over year during the four weeks ending January 28, the biggest increase in over a year.

    But that earliest-stage demand hasn’t yet translated into home sales. Mortgage-purchase applications declined from a week earlier and pending sales posted their biggest year-over-year decline in four months, likely reflecting tepid early-stage demand during the middle of January. Home tours and other actions buyers typically take before applying for a mortgage was lower than expected in mid-January as daily average mortgage rates inched up from their December low point and severe weather kept many would-be buyers at home. …. Full article
    

  • Mortgage Rates Remain Stable, and Purchase Applications Increased from previous week. This can be attributed to the stable rates, and that we’re seeing better weather across the nation, allowing folks to more seriously consider purchasing a home… Mortgage applications increased 3.7 percent from one week earlier…The Market Composite Index, a measure of mortgage loan application volume, increased 3.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 8 percent compared with the previous week. Full details.

    

• The Mortgage Rate Breakout by Percent of Home Owners. The mortgage lock-in effect is having a real impact on home owners’ willingness and ability to sell their home. In many cases, owners simply can’t afford to sell and move, as they couldn’t afford that next home, or it would be too costly to justify (even if they could afford). From yahoo!finance, “…82.4% of homeowners have a mortgage rate below 5% and 62% have a rate below 4%, per Redfin. Notably, 23.5% of homeowners have a mortgage rate below 3%…” Full article
  

• Inflation - Goods and Services for December 2023

  • Inflation is coming back to earth, and why we’re hearing so much about the Fed not raising the Fed Funds Rate (the rate at which banks borrow from one another), and may be cutting the rate within the next three to six months. To get a better sense of how it’s impacting you, this chart from the Bureau of Labor and Statistics, is an interesting read. This is national average data, so it will vary by region (the Seattle Metro area, including Snohomish County, is very expensive compared to most of the nation). A couple categories stand out to me from the latest data (Dec 2023) — Airline fares are DOWN -9.4%, and Vehicle Insurance Rates are UP 20.6% (which is a significant increase from the previous two months shown). You can find all the data here: https://www.bls.gov/news.release/cpi.t01.htm

  • If you like this type of data, and want to get deeper into the weeds, then this data is your cup of tea! December 2023 detailed goods inflation list - from perfume to white bread, and men’s underwear to whiskey! 😄 https://www.bls.gov/news.release/cpi.t02.htm

Financial Investing Tips & Tricks

Are you familiar with Tax Planning, or as some refer to it, Tax Optimization? Perhaps you or your Financial Planner, Consultant, or CPA already have a strategy, but if not, you can read more in this article from Ivestopedia.

Tax Optimization definition, complements of ChatGPT:
Tax optimization for individuals refers to the strategy of arranging one's financial affairs in a way that minimizes tax liability and maximizes after-tax income. It involves legally using the tax code to take advantage of various tax deductions, credits, and allowances to reduce the amount of tax paid.

For example, contributing to a retirement account like a 401(k) or an IRA is a simple form of tax optimization. Money put into these accounts is often tax-deductible, reducing your taxable income for the year you contribute. This not only lowers your tax bill but also helps you save for the future.

For your convenience, 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.

FEBRUARY Home Maintenance & Safety Tips.

• Freshen Up the Kitchen:  Deep clean the garbage disposal to dodge stinky surprises and avoid plumbing woes. Don't forget a good oven scrub to prevent cooking fires!

• Fire Safety First: Check those fire extinguishers and test your smoke and carbon monoxide detectors. A little maintenance goes a long way in keeping your home safe.

• Cozy Home Tweaks: Swap out that old HVAC filter for fresher air and give those linens, carpets, and curtains a deep clean. Purchase at Amazon and set up for auto-ship for every 4 to 6 months (here’s how)!

• Bathroom Blitz: Clear out old meds, re-caulk the tub and toilet, and battle mold with a deep clean. Your bathroom will thank you!

• Outdoor Upgrades: Considering a smart lock? Now's the time for an easy security boost. Lot’s of options on Amazon, Lowes, and Home Depot!

_{Winter Driving is Still With Us - Be prepared for winter travel - especially over the passes. Checklist}

• Good All-Season or Winter Tires

• Tire Chains or Cables

• Snow Scraper

• Jumper Cables

• Road Flares

• Winter Clothes (warm jacket, hat, gloves, boots)

• Extra Blankets

• Food

• Water

• Phone and Extra Battery / Charger

AI - Artificial Intelligence

• AI Safety for Families. OpenAI and Common Sense Media are collaborating and working to empower parents, educators, and teens to use AI tools safely and effectively. Full Article.

• Be Aware & Ready - AI to significantly boost cyber threats. From the article, “AI services lower barriers to entry, increasing the number of cyber criminals, and will boost their capability by improving the scale, speed, and effectiveness of existing attack methods.” Full Article.

  • If you’re looking for personal computer and device protection, or possibly to upgrade, here’s a list of some of the top options for 2024.

Other Nuggets

• This time of year can be great for going to a movie! Here’s a couple articles with some great theatre ideas:

  • Unique Seattle Area Theatres

  • Theatres Serving Food & Alcohol 
    

• ⛷️🏂️ For all you skier and snowboarders, all Washington State Ski Resorts are now officially open and on normal operating days/hours (unless stated otherwise on their website)! I can tell you from personal experience at Stevens Pass (and I’m hearing similar at other resorts), that you need to be patient, and an early bird if you’re a weekend skier. Parking fills up quickly for weekend morning sessions (for Stevens, be parked no later than 8:20AM on Saturday and Sunday). Alternatively, try weekdays if possible, or arrive later on weekends around 1:00 or after. Check out OntheSnow.com for the latest conditions at each resort.

“If you cannot do great things, do small things in a great way.” —Napoleon Hill

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, SFR®, MRP  | eXp Realty