The real estate sky is not falling

  • Saturday, April 6, 2019 1:30am
  • Opinion

By Todd Fahlman

I’m tired of the real estate “Chicken Littles” you hear who analyze using fear mongering.

Justified or not it can create a collective response called the Chicken Little Syndrome, which can exploit horrible conclusions that stop people from doing anything.

There are valid reasons to pay close attention to the fluctuations in the real estate market if you are planning to either purchase or sell some property.

No one wants to undersell their home or overpay for a property either.

Regardless of what is happening in the market people still are selling and buying homes.

For example in every up or down market people are forced to sell as a result of job loss or relocation, death and divorce.

Also, people make buying and selling decisions solely based on social factors such as increased family size, downsizing, a new job or a higher wage.

It’s important to look at four factors.

1. Supply: Buyers and sellers must pay attention to it when planning to sell or making a purchase.

The supply of homes locally has doubled compared to last year at this time.

It’s easy to understand why home prices have seen a measly increase of .6 percent year-over-year from the median sales price of $375,000 to $377,250.

2. Demand: Our area remains the hottest spot in Snohomish County for affordable housing.

Just south of us the median sales price around Bothell is $675,000 and Lynnwood comes in at $496,000.

3. Mortgage lending: The availability of money and the ease to access it for home buyers plays a vital role. If money is too difficult to get we will see demand decrease and supply increase.

If home mortgages become too easy to obtain problems develop. Money is still available for home buyers.

The stiffened guidelines to qualify for a home loan ensure that today’s borrowers can afford the homes they are buying and reduce the rate of foreclosure.

4 Employment: Some parts of Snohomish County have employment that provides a higher wage than others.

For example the average salary in Bothell is $60,134 a year compared with Marysville at $40,386. The future looks bright for better wages in our area with development of the Arlington Marysville Manufacturing Industrial Center.

The sky is not falling on your real estate dreams of buying or selling. We are experiencing a balancing of our market.

Mortgage interest rates are stable, we have a nice supply of homes and prices are not bottoming out.

Todd Fahlman writes a monthly real estate column for this newspaper.

More in Opinion

Brandon Trout
Are you a mindful investor?

By Brandon Trout Recently, we’ve seen an increased interest in mindfulness, although… Continue reading

Breakdown of where your taxes go

By Nate Nehring Property tax statements were sent out recently, and many… Continue reading

Lakewood will listen on what to do next

By Scott Peacock Since last week’s returns from the Lakewood School District… Continue reading

Voters approve important levies in Arlington

By Chrys Sweeting Thank you to all Arlington families, staff and community… Continue reading

Let’s clean up this town

With the hope of warmer days ahead, many of us start thinking… Continue reading

We’re all to blame for not cleaning up Puget Sound

It would be easy to blame the Puget Sound Partnership’s failure to… Continue reading

Hits and misses (Feb. 15)

Hits Those who accept the responsibility and sacrifice and vote for schools.… Continue reading

Most Read