How Covid-19 has Changed the Experience of Buying Real Estate

By Erin Wright and Christina Waterhouse

Over the last three weeks, we have explored the economic impacts of Covid-19 on our local Real Estate Market. These next two weeks we will be focusing on the challenges that are currently being faced by buyers and sellers transacting real estate and how our local market has responded to those challenges to make the process safer and easier.

The Buyer Process During Covid-19

Implementing the Governor’s Rules

Buying a house in the current pandemic has proven to be a bit challenging. There are some new practices we are seeing to help keep everything organized and try to keep people safe. We will start by reviewing what is required by the Governor of Washington State for Clark County. Currently there are two rules in place, no more than two people can be inside of a house at a time during a showing. Also,  people must maintain six feet between them for social distancing. This means that buyers can only enter a house one at a time with a Realtor. This can be difficult because families, couples, friends, or investors cannot be in the house at the same time discussing their thoughts on it. We have found it helpful to take Buyers in one at a time while maintaining the 6 feet for a buffer, and then reconvene in the street in front of the house to discuss the property while it is still fresh in everyone’s mind. The sooner all buyers can discuss the property together the better to ensure that nothing is lost. This process does increase the time it takes to view properties. We plan on showings taking about twice as long because each person is shown individually and then we discuss at the end instead of while actually going through the property.

Virtually Viewing a Neighborhood and House

Researching a neighborhood online before doing a drive by is a great way to learn more while sheltering in place.

Prior to actually viewing a property in person, there are many things a buyer should plan on doing before ever having the agent schedule the showing. First, a buyer should become very familiar with a desired neighborhood. This can be done by discussing the neighborhood with a Realtor. Ask about the schools, amenities, and house styles to start. A Realtor can also send you links to local publications, neighborhood data, and school sites . It is also a good idea to take a drive through the neighborhood and see what it is like in person.

Once the desired neighborhoods have been pinpointed, take advantage of all of the online tools to view specific properties. When looking at houses online, switch the map function to show an aerial view of the property. Look for both pros and cons of the property’s location. Are there parks nearby? Power lines? Is it on a busy road or to close to a large freeway? Once the properties with desirable locations are found, thoroughly look at the photos of the property. Pay attention to the sizes of rooms by using the furniture in the photos as a gauge. Also, pay attention to how the house flows, again furniture can be used to help identify how the photos are moving through the house. When available, look at the online floor plan and virtual tour. Combined, these tools help Buyers understand the property better to see if it is a fit for what they are looking for.

Hand sanitizer, shoe covers, and face masks are both common things to expect while viewing properties during Covid-19.

What to Expect During Showings

With a narrowed down list of approved properties, buyers should call their Realtors to set up showings. We already discussed the rules of showings above based on the Governor’s guidelines. However, there are additional things buyers should expect during this time. First and foremost, get pre-approved. Almost all sellers are requiring pre-approved buyers only to view properties. Once pre-approved send the letter to your Realtor, they may be required to submit it prior to a showing. Additionally, some sellers are having buyers and their Realtors submit a basic health questionnaire prior to a showing. With the showing scheduled and all necessary information submitted, be prepared to take a few extra steps to keep things sanitary. Sellers are requiring a variety of things for people going into their homes: masks, sanitation wipes, gloves, hand sanitizer, and shoe covers to name a few. Most items requested to be used will be provided at the house itself. If they are not provided at the house and you do not have access to them, request them from your Realtor. If the request is made in advance, it can often be accommodated.

When you first enter the market, this may all seem a bit alarming. However, we have seen several companies, agents, and sellers really step up to keep everyone safe and make everyone feel comfortable. For more information on how to stay safe and what to expect as a buyer in this market, please feel free to comment on this blog post or reach out to us directly.

As always, we welcome any questions you may have and are happy to offer advice.

How the Current Selling Season Compares to Last Year’s Selling Season

By Erin Wright and Christina Waterhouse

We have been closely watching our local real estate market since the start of the pandemic. There is a lot of conflicting information about how the market is currently doing. Transactions are happening, but is it business as usual?

For this week’s blog topic, we are further looking into how the real estate market is currently performing and how it compares to last year. The quick answer is that we are still in a seller’s market, seeing homes go pending quickly for close to or over asking price. The more accurate picture is a bit more complicated. Last year Clark County saw a robust selling season, with the months of March through November having over 1,400 active listings per month up to over 1,800 active listings per month.[1] Additionally, the months of March through August in 2019 had over 800 pending listings per month.[2] Our current market is performing at about 80% of last years market. Last month we had 1,279 active listings and 608 pending listings. [3]

This is important to note because although we are seeing a seller’s market with quick activity, similar to last year, we are not seeing a normal amount of inventory or buyers. Currently we are seeing multiple offers and houses in certain price points selling for over asking. However, with fewer active buyers and fewer active sellers, there are some variables in our market to consider for how it will proceed moving forward. This current ratio of supply and demand may continue, more buyers may enter the market without more listings to buy, or more sellers may enter the market without more buyers to buy. If the ratios stay the same, we will continue to experience a relatively quick market favoring sellers. If more buyers enter the market without increasing the supply, we will experience an even more favorable seller’s market, encouraging multiple offers and driving prices up. If more sellers enter the market without an increase in buyers, we will begin to see a softening and a more neutral market where buyers and sellers both share equal bargaining power. Though no one knows for sure what will happen, there seems to be a consensus among real estate economists that home sales will be down 10-15% this year compared to last year.[4] Additionally, homes may experience a slight drop in value during the 3^rd and 4^th quarter of this year, but still appreciate marginally year over year by about 2.5%.[5]  For more information on the specific economics of the housing market this year, please feel free to watch the video below from economist Matthew Gardner.

As always, we welcome any questions you may have and are happy to offer advice.

[1] History of Monthly Active Listings According to Trendgraphix

[2] Last Months Active and Pending Listings According to Trendgraphix

[3] Last Months Active and Pending Listings According to Trendgraphix

[4] Market Forecast According to Matthew Gardner

[5] Market Forecast According to Matthew Gardner

Understanding Why Interest Rates Impact Buyer Activity in the Market

By Erin Wright and Christina Waterhouse

Last week we reviewed the overall Real Estate Market in Clark County since the start of the pandemic. This week we are looking deeper into why interest rates are impacting buyer activity.

Interest Rates, Buying Power, & Inventory

Home buyers have seen historically low interest rates since the end of the Great Recession, between 3% and 5% roughly, compared to the average mortgage interest rate over the last 50 years of 7.91%.^[1]

Since the start of the current pandemic, interest rates have continued to lower. The rate as of today (Thursday, May 14, 2020) is 3.13%.^[2] In the chart below, you see that even the small changes in interest rates from about 18 months ago until today make a big impact on buying power. This is crucial because in a market like Clark County where there is a housing crisis due to the rapidly rising cost of real estate, more buying power opens up more inventory. Just since the start of 2020, Buyers looking for a $1,500 payment a month for principal and interest (not including taxes and insurance) saw their borrowing power increase from $329,000 to $350,000. To showcase how this impacts their choices, we ran a search on Redfin for a detached, single family home in Clark County. There are currently 28 houses listed for sale up to the price of $325,000. When we move that budget up to $350,000, there are 80 houses listed for sale. Just that $25,000 increase in budget, returned 3x the inventory on the market.

Interest Rates and Monthly Payments

Let’s also look at how the interest rate impacts a monthly payment and therefore a buyer’s monthly budget. In the chart below, you can see how the interest rate would impact a monthly payment for principal and interest (not including taxes and insurance) if a buyer purchased a house at an interest rate from 18 months ago, the beginning of this year, and today. There is a 23% difference in the monthly payment from the most recent high interest rate in November 2018 vs the interest rates today. For a $400,000 house, that equates to an extra $400 a month. This is important because even though some buyers are qualified to purchase a house, they do not feel comfortable spending more than a certain amount per month on their housing. With the interest rate saving $100’s of dollars a month, new buyers will be able to feel comfortable entering the market.

With Buyers able to enter the marketplace and have more buying power since the start of the pandemic, there is still a demand to purchase real estate. As we discussed last week, this demand mixed with fewer new listings coming on the market that would typically be seen this time of year has led to a strong Sellers’ market. The current demand mixed with the lower supply has kept prices stable even during a pandemic with high unemployment.

Mortgage insight and references provided by: Mathew Mattila, Cascade Northern Mortgage: https://www.mathewmattila.com/

As always, we welcome any questions you may have and are happy to offer advice.

^[1] History of Monthly Interest Rates According to Freddie Mac: http://www.freddiemac.com/pmms/pmms30.html

^[2] Daily Interest Rates According to Mortgage News Daily: http://www.mortgagenewsdaily.com/data/30-year-mortgage-rates.aspx

Understanding the Current Real Estate Market in Clark County

Our team has received a lot of inquiries regarding the real estate market during Covid-19. There are valid concerns and questions surrounding how this has impacted the market so far and what will happen in the future. We decided to share with you all the various statistics that we review to gauge the health of the real estate market and help you understand what they mean. This is part 1 of a series of real estate economic blog posts we will be publishing weekly.

What our local Market is currently doing and why

Clark County Washington is experiencing a Seller’s Market. We are seeing new listings that are priced appropriately selling quickly with multiple offers. This may seem counter intuitive, given that unemployment is up and so many businesses are closed. These things are true. Real estate is a perfect example of supply and demand. The pandemic has decreased demand, and we are seeing fewer buyers in the market than we would typically see this time of year. Some buyers are waiting to see what happens with their jobs, the economy, or just do not feel safe viewing properties. However, the pandemic has decreased the supply further. According to RMLS the week prior to the state-wide lock down, there were 272 new listings on the market. This past week there were only 173 new listings on the market, a decrease of 36%. To further tighten the inventory, during the past week, 183 listings went pending, which is 10 more listings than came on the market.

This data provides a good picture of what is going on in terms of numbers, but what does it mean to the buyers and sellers in the market today? We received multiple offers on our last 3 new listings during this pandemic. We have also had multiple buyers in bidding wars over the last couple weeks. For Sellers, this is showing that there is strong interest in the market right now due to the incredibly low inventory. We strongly advise Sellers to fully prep, clean, landscape and stage houses. This, along with pricing at market value will enable sellers to capitalize on the high demand and hope for multiple offers. For Buyers, this means that if you like a house, you need to make a quick decision to write an offer and really put your best foot forward. This can be difficult if you are looking for a good deal. Our best recommendation to such buyers is to look for properties that have been on the market for 30, 60, 90+ days and try to negotiate those sellers down on price. For all buyers right now, be prepared to lose out on a few houses because you have a lot of competition. Be patient, the right house will come around.

As always, we welcome any questions you may have and are happy to offer advice.

Erin & Christina 

Looking for a fun event to do in March with the whole family? This month to give back, Erin Wright Homes is partnering with Habitat for Humanity for a fun night playing Bingo for a cause. Join us Friday, March 18, 2016 for a fun night of Bingo while helping support the Evergreen Habitat for Humanity. Games are $2 a piece and all prizes are valued at $25 or more! Complimentary snacks provided and beer and wine available for purchase. This event is family friendly, so bring your kids! Want to get even more involved? Join Erin Wright Homes for our Habitat Build April 2, 2016! We would love to see everyone there!

What: Bingo for Habitat for Humanity

When: Friday, March 18, 2016 from 6pm-8pm

Where: Clark County Habitat Store
10811 SE 2nd Ave.
Vancouver, WA

Please RSVP to Erin Wright by Wednesday, March 16, 2016 by e-mail at ErinWright@Windermere.com
or by phone by calling 360-356-1445

Hope to see you all there!

For more information on the Evergreen Habitat for Humanity, please visit their website at:

http://www.ehfh.org/

***Want to plan ahead for April’s Community Event? We will be doing a Habitat for Humanity Build with the Evergreen Habitat for Humanity on Saturday, April 2, 2016. We would love to see everyone there. This event is for people 18 years and older.***

Donations from February 2016 Pet Food Drive

Thank you to everyone who donated pet food during our Pet Food Drive for the Humane Society of Southwest Washington for the February Community Event with Erin Wright Homes. Clients, friends, family, and myself were able to almost fill the back of my SUV with donations for the Humane Society. Donations consisted of both wet and dry cat and dog food. All donations were delivered directly to the Humane Society in the middle of February. The pet food that was donated will help the Humane Society care for the over 8,000 animals they care for each year.

For more information on the Humane Society of Southwest Washington, please visit their website at:

https://southwesthumane.org/about/

Thank you again everyone!

Thank you for a Successful Share the Warmth Drive 

and a Great Night at the Miracle of a Million Lights!

With 2016 already starting off with excitement and positive change, I want to take a moment to thank everyone for making 2015 a great year for me both personally and professionally. I celebrated many milestones in 2015; Winslow and I got married and started our life together, I was able to hire an amazing assitant, Jenny Vrtiska, and Erin Wright Homes was branded by the talented Megan Armand. December 11, 2015 marked a great celebration for a great year! I am so grateful for everyone who was able to come out and support Erin Wright Homes that evening and celebrate a wonderful year. I want to thank everyone for joining and for all the generous donations for the Share the Warmth Drive. I also want to thank all of my clients for trusting me with your real estate needs and for all your referrals. A special thanks to Jenny Vrtiska, Megan Armand, Simply Sweets, the Victorian Belle, and Leah Smith Photography for making the event increadibly special for everyone. Please see below for a collection of photos from the event that night. If you would like a copy of any one photo, please contact me and I can get you the full resolution version. 

With referrals already coming in for 2016, I am excited to start this year off running. If you know anyone looking to buy or sell real estate in the future, please feel free to share my information with them. Your referrals will receive the same expertise, time, and care that I have given all past clients. I am fortunate to have the best clients in the world and look forward to serving all of you in 2016.

From my family to yours, wishing you all a great 2016!

Erin Wright

By: Erin Wright, Clark County, WA Realtor

Buyer's are out in full swing in Clark County and Multnomah County. As a result of all the Buyers entering the market place, the inventory is still low and real estate prices are on the rise. 

The local real estate markets have seen low inventory over the last 2 years and they continue to remain low. When looking at all homes currently on the market in Clark County, there is 2.5 months of inventory. This indicates a Seller's Market. However, many of those homes are proposed construction and new construction. If those two categories are taken out, then there is only 2 months of inventory. For Multnomah County, there is currently 1.4 months of inventory. If you take out the new and proposed construction again, then there is 1.3 months of inventory. This low inventory with an increased number of Buyers has resulted in the listing prices of homes to continue to rise. 

Last year, the average list price of properties in Clark County in May 2014 was $384,000. This year, the average list price of properties in Clark County at the end of April 2015 was $452,000. That is an increase of 18%. In Multnomah County the average list price from May 2014 was $440,000. This year the average list price of properties in Multnomah County at the end of April 2015 was $489,000. That is an increase of 11%. 

All data for this article was gathered from Trendgraphix.

Clark County Data Provided by Trendgraphix Below

All Clark County Inventory Over the Last Year

Clark County Resale Inventory Over the Last Year

Clark County Listing Prices Over the Last Year

Multnomah County Data Provided by Trendgraphix Below

All Multnomah County Inventory Over the Last Year

Multnomah County Resale Inventory Over the Last Year

Multnomah County Listing Prices Over the Last Year

Photo courtesy of Little Fern Photography

Thank you to my clients and friends who helped make Tacos & Taps a Success in 2015! 

May 4, 2015 marked the 2nd Annual Tacos & Taps Event for the Clark County Food Bank. This year Tacos & Taps sold out weeks before the event and the night really delivered a great time with a meaningful message. Guests were able to enjoy creative tacos, great beer, and spectacular treats from local Vancouver venders all while touring the food  bank and enjoying live music. It is a great event to help promote local businesses, support the food bank, and allow our Clark County neighbors a chance to really see how the food bank runs and helps support the community.

The event this year raised $31,100 for the Food Bank, an increase of 39% from the previous year. Additionally, the event featured 5 local brewers, 8 local chefs, and 1 local baker.

I would like to give a special thanks to the people who made this event a huge success.

Breweries:

Alameda Brewing, Mt. Tabor Brewing, Loowit Brewing, Doomsday Brewing, and Beerded Brothers Brewing

Chefs:

Herb N’ Roots, South Pacific Bar & Grill, Farrar’s Bistro, Wholes Foods, Beaches Restaurant & Bar, Main Event, New Seasons, and The Grant House

Bakery:

Simply Sweets

Photography:

Little Fern Photography

Decorations:

Michael Lampson of Lasting Impressions

Entertainment:

Blues Ranch

Scott Horenstein Law, Riverview Community Bank, Landerholm Law

Large Donors:

Windermere Stellar

Event Committee:

Allison Kirkland, Courtney Catt, Donna Horenstein, Erin Wright, Megan Dixon, Rebecca Bristol, Sam Clarno, and Sherri Falkner

To see all photos from this year’s Tacos and Taps event provided by Little Fern Photography, please click the link below.

http://proofs.littlefernphoto.com/tacosandtaps

Click the link below to see a video talking with the Director of the Food Bank and some of the vendors from this past year. 

https://www.youtube.com/watch?v=oIo1HBGbyOE

By Erin Wright, Real Estate Agent with Windermere Real Estate

Image courtesy of WorldWideStock at FreeDigitalPhotos.net

Sellers often ask me about staging, the benefits of staging, how in depth their staging needs to be, and if there are any small tips or tricks to the staging process. These are all valid questions, and ones Sellers should ask. When I go through my listing presentation, I spend a good deal of time on this very subject, to fully showcase the benefits of staging. I also bring a staging consultant to every one of my listings, so we can all go room by room and talk about the best way to showcase the homes features. Staging helps create the first impression, so it is a vital role in listing a home. When staging, there are a few key rules to follow: keep the style neutral, less is more and focus on light.

Neutral Style: Although some Buyers are able to look past a Seller's style, to create a positive first impression, it is best to make the home a blank canvas. This will allow Buyers to walk through the home and picture their own style and stuff throughout the home. A key piece of advice I give my clients is to go through their home and see what elements are more personal in nature or style. For example, the huge family portrait over your fireplace, not the best way to allow a Buyer to picture themselves in the home. The bright red accent wall in the family room will likely also keep a potential Buyer from picturing themselves in your home. When staging, it is best to depersonalize your home, remove most family pictures, and create a neutral tone and feel in all the rooms throughout the house. It is nice to have a pop of color around the house, so to achieve this consider a fruit bowl filled with colorful fruit in the kitchen, colorful pillows in the family room, and colorful towels in the bathroom. 

Less is More: In our day-to-day lives, I think we tend to like to surround ourselves with our belongings. A beautiful chair, decorative plates, and walls full of artwork. However, when staging a home, less really is more. The goal of staging is to make a space feel welcoming and attractive to as many potential Buyers as possible. Space and the size of rooms are two of the most important things Buyers look for in a house. Therefore, placing furniture and decor in a way that maximizes the space in a room is an essential part of staging. One of the key tricks to doing this is to keep the amount of furniture and decor minimal. Let the space showcase itself. So in a normal sized family room, a Seller may have a sectional, coffee table, two chairs and two side tables. Likely, if the Seller removed the two chairs and two side tables, the space would feel larger and more open. Consider what furniture and decor is essential in each room and place it intentionally. Then I recommend my clients rent a storage unit, use a shed, or use a garage and store the remainder of the furniture. This will allow the home to breath and feel more spacious. Also, this allows Buyers to more comfortably move throughout the home. A great rule of thumb is to keep all pathways and open spaces wide enough for 2-3 people to comfortably walk through them at the same time. Often times my Sellers end up liking the open feel better, and decorate their new home in the same manner as they staged their previous home.

Light is Key: Buyers often request homes with great light. This is because the natural lighting of a home can often create positive energy within a home. This is especially true in the Northwest where it rains for a large portion of the year. Therefore, it is important for Sellers to showcase the areas in the home with natural light. The best way to do this is to keep anything from blocking the light. If there are blinds, raise them. If there are curtains, open them. Allow the light to shine in through the house wherever possible. Another great way to create the feeling of a light and bright home is to keep the walls painted a lighter color and have the ceiling painted white. This will reflect the natural light throughout the home, making it feel lighter and brighter. Also, white ceilings give the illusion of taller ceilings, which is a great-added benefit. Another great idea is to allow there to be ample room in front of windows and exterior doors. Buyers love to go up to windows and look out of them to see the light and the view. 

For information on these and other staging tips, feel free to contact me at ErinWright@Windermere.com or (360) 356-1445.