How's the market Copy

Hey everybody Nicole,

pretty taylor of cultural banker central and I am here to talk to you

about what the heck has been going on in the market in november.

So how's the real estate market?

Looking at ellensburg Washington november of 2021.

So home prices, the median soul price was 4 11,

The number of homes that sold was 36 and this

sold price increased by 20.4% from 3415 the previous year.

I think this is the number one thing that everyone is concentrating on.

I mean the grocery store, the post office, I mean wherever you go,

everyone and their mother wants to talk about home prices and how crazy they are.

But we have to take into consideration interest rates more on that later.

But this is just what's going on in the market in november.

True.

Looking at new listings,

this is another important factor to consider because I hear from so many people,

there's just like nothing on the market that it's just,

it's not what they're looking for.

And I think the big thing,

the big buyer take away that I have seen is that there are homes on the market,

it just means that you have to be diligent and

you have to move as fast as the market does.

Um so in 2021 Ellensburg

Year to date. So from January 1 to the very end of November

we've had 468 active listings in 2020 it was 4 26 and 2019 402.

So we've actually had a fairly sizable increase

in the number of homes that are turning

over that are popping up on the market as active and ready to be sold.

Speaking of pending sales in the month of november,

we have seen this number go up up and up.

So in 2019 and the month of november, there were 25 pending sales in 2020 39

2021 45 which that's almost twice as many pending sales in a two year time span.

So the inventory is out there, you just as a buyer have to be proactive and ready to go,

which brings me to close sales. Um

So while the year to date numbers sold is a little bit higher,

3 76 versus 3 58 for 2020 versus 2021.

Um

Monthly, it's fairly, we're still trying to find an average,

I would say for the month of November,, there were 23 close sales in November,

which that's pretty low.

Um in 2020 there were 40, 2021, 36. That's marginally close enough.

The big takeaway here is for sellers.

Um It is not as crazy of a seller's market as it was.

So we need to inform our expectations of sellers that

it's likely your home isn't going to post on a thursday

and be sold by monday as far as under contract sold.

And it's likely that you instead of, I mean in the summer we were seeing 89,

10 12 offers on places

that likely won't happen anymore. And that's okay

because at the end of the day, just the reminder,

I'm going to keep driving home is that all you

need as a seller is one willing and able buyer

That is solidly like financially stable. They got sexy finances. All you need is one

that wants to make it to the end of that transaction.

Um, if you have any questions, this is a great time.

You know, drop them in the comments below

and let's have a little chat. Um, looking at mortgage rates.

So this is the big one that I want to talk to people about, especially if you are in the

rental market currently.

So this would be a first time home buyer if you are a seller,

I want to talk to you too and I'll tell you

why and if you are thinking about upgrading your space.

So in November of 2020 interest rates according to the national average for 30 year,

fixed

Freddie Mac

2.77%, that's like a ridiculously

obnoxiously low interest rate. Like I'm kind of jealous. Um, currently

That same average from Freddie mac month of November 2021, 3.1%.

Now the projection is that by mid 2022, so it's like, look

May June July interest rates are going to be up to 3.5%.

The reason this is important is as those interest rates climb,

Let's say that you're looking at a homeless $350,000 as that interest rate climbs.

The only thing that's going to change is the amount of money

that you have to pay every single month for that same $350,000.

So in 2020, let's look at it.

14 33 2021 14 95 mid 2022. But that projected interest rate of 3.5% 15 72.

Mm hmm.

So you're going to pay $159 more than two years previous for the same cost

for the same

bundle for the same amount of lended money.

Yeah.

So this is the cost of waiting.

If you are thinking that you are ready to buy in the next six

months now would be an extremely advantageous time as a buyer to buy,

Uh, in the next six months to 12 months.

It's also going to be an advantageous time as a seller

to sell because while it is still a seller's market,

your market is constrained by the lending power of buyers.

If buyers cannot afford your home at your price point,

couple things have to happen.

Either you have to wait or you have to come down and meet them where they're at

just food for thought things to consider

mortgage rates are really, really important because they dictate what you pay.

And personally as I look at this,

if it was me when I see a difference of $62

when I see a difference of $77 on a monthly basis,

I'm asking myself like

how much talk about could I buy for that?

How much dim sum could I get with that?

And thats because I'm hungry.

Um If I'm being realistic with myself, the other question I ask is

If I put that $77 every single month into,

um, let's say vu in the stock market,

What's that return going to look like 30 years from now?

I did that every single month,

30 years from now when I fully intend for

Olivia and I to be off adventuring somewhere retired,

drinking mai tai on the beach,

About $77 a month compounding in a marketplace that earns on average, you know,

5-10% these days, it's like 12%.

I kind of like the sound of that.

It's different for every person.

But I think all of us are working under the same thing,

we want more for this, who doesn't?

So if you're looking at buying, if you're looking at upgrading your space,

if you're looking at selling,

I mean from here until forever.

It's always going to be a good time to buy and it's always going to be a good

time to sell if your finances are in order

and if you are emotionally and mentally prepared,

that's never going to change.

But there is a rare almost like golden opportunity that we have

been existing in for most of 2020 and most of 2021.

And that is going to start to shift.

So just things to consider um moving away to the final takeaways,

key takeaway number one, maybe the market will crash.

Well after talking about median sales price increases.

I know the people that were waiting for the market to crash a year

ago were kicking themselves because if they could afford a three bed two bath,

Well at a 20.4% increase

Now they can afford a two bed 1 bath.

And if they were looking at, you know 1400 square feet,

they might be looking at 1000 maybe 1100.

Mm That doesn't feel quite as good.

You know, so the cost of waiting for a market to crash, it's extremely speculative.

None of the analysts are forecasting that at this point.

So you kind of have to believe that we're at where we're at.

Um the thing that I talked to clients about is that, you know, for example,

Let's say that you're spending $1,000 every single month on rent,

which is ridiculously low for the vacancy rate the route,

but let's just go for easy numbers, you're going to spend $12,000 in rent.

Let's say that you stay there for five years.

So you're going to spend $60,000 in rent.

Do you get any of that back?

No, you don't get any of that back.

So let's say that you were spending that on a home.

You get all the equity you get, all the appreciation.

Sounds a lot better to me.

Mhm.

Final key takeaway. There's no homes for sale.

Um, there are more listings in Ellensburg.

Then I think most people realize the big thing is that

they're moving really fast if they're in a competitive price point,

I'm looking at you if you're looking at $400,000 and

below if you think that that home is awesome.

I guarantee you five other buyers do as well. So, mm hmm.

When I harp on you about getting pre approved because I love

you get pre approved and be ready to pull the trigger.

Have a very real understanding of what your budgetary constraints are,

what your max purchase price would be.

Let's look 5% below that.

So that when you find the home, if there are other people pulling up to the table,

you have room

to negotiate. You have room to increase your offer.

Um, work with an agent

on the buyer side, we're free. The seller side pays for it.

Um, I think it's really advisable. You would,

you would not represent yourself

in court.

So I don't know why you would represent yourself in a real estate transaction if you

can have a professional work for you for free on the buyer side of things.

Um

and the only thing I would say caveat wise is if you know what a 35 hour is,

if you can tell me what earnest money is in five sentences or less.

If you can talk with me about

what title is and why it's important and what a mechanics lien is and why we

should look for it and what an easement is and why it could be detrimental.

If you can tell me all of those things that bio means girl, do the name thing,

go represent yourself if you can't

think about working with the buyer's agent when you are going into the market.

Um and the big one which I think is

encompassed in the previous three is prepare early save often

you will never kick yourself for having more

money available to you and you will never

kick yourself for being prepared talking with a

lender and working at a more relaxed pace

versus oh my God, I saw the house that I really want and then you have to hurry up.

Right?

So these are the key takeaways,

This is what's going on in the market in the month of november.

I really encourage you if you're kind of curious

and like maybe you want to do something,

let's just get a coffee, let's go chat,

throw some comments if you have questions slide into the DmS. If you have questions

and thank you so much for tuning in to this month's market recap.

How's the market Copy

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