Buy or Rent? • June 5, 2013

Buy or Rent: Which Makes More Sense Financially?

by Steve Hill

rent buy Every potential home buyer has to stop for at least a moment and consider this question. Today, we want to look at one of the many financial reasons to buy instead of rent: the housing expense moving forward.

According to the latest Existing Home Sales Report from the National Association of Realtors, the median sales price of a home in the U.S. is $184,300. The mortgage payment (principal & interest) on that purchase would be $661.89 assuming a 20% down payment and a 3.5% mortgage interest rate. Currently, the median asking rent in the U.S. according to the Census Bureau is $717 a month.

We realize that the two payments do not necessarily reflect the housing cost on a similar residence. However, that is not the point of the post. All we are saying is that the monthly housing expense on a median price home is $661.89 and the median rent is $717. We now want to discuss what will happen to these costs over time.

The principal and interest portion of the mortgage payment is locked in for the next 30 years. We know real estate taxes may be included in the payment and will increase to some degree over that time. We also acknowledge that the homeowner will have occasion to spend money on repairs. They also receive many tax advantages as a homeowner.

However, the actual monthly housing expense remains the same for the next 30 years.

Now, let’s look at what happens to a rent payment. The best thing to do to predict the future is to study the past. Here is a graph of the median asking rent since 1988 based on Census Bureau data:

Rents

We believe rents will follow their historically pattern and increase dramatically over the next 30 years. Buyers have a choice: either lock in your housing expense or deal with the uncertainty of rental increases.

Home Purchase • June 4, 2013

Now Is The Time To BUY!

by Steve Hill

Considering A Home Purchase?
Let our experience save you time and money!

Steve Hill and Sandra Brenner
Windermere Real Estate Seattle Northwest
206-769-9577

Home Purchase • June 3, 2013

When To Buy a House? RIGHT NOW!

by Steve Hill

traffic lights After witnessing the housing bubble ‘pop’ just a few years ago, many would be buyers may be hesitant to pull the trigger. Today, we want to explain that the greatest risk a buyer can take right now is actually waiting to buy a home.

We realize that every purchaser wants to be able to get the best deal. They want a great price and the lowest mortgage interest rate possible because those to items together will determine the monthly cost their family will pay. Let’s look at each one:

Are home prices rising?

Just last week, the Case Shiller Pricing Index was released. The index revealed that U.S. home prices increased by 10.2% over the last twelve months. Last month, theHome Price Expectation Survey was released predicting that home values would increase by at least an additional 3.5% for each of the next five years.

If you were waiting for the absolute bottom of the home price declines, you already missed it.

Are interest rates rising?

According to Freddie Mac’s Weekly Primary Mortgage Market Survey, the 30 year mortgage rate shot up to 3.81% last week – the highest level in over a year. This is an increase of a half of a percentage point in the last six months. And the Mortgage Bankers Association, Fannie Mae and the National Association of Realtors all predict that rates will continue rise over the next eighteen months.

Conclusion

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Considering Buying?
Give us a call and let our experience save you time and money.

Steve Hill and Sandra Brenner
Windermere Real Estate Seattle Northwest
206-769-9577

Memorial Day Weekend Activities • May 24, 2013

From Festivals to Concerts: 11 Ways to Celebrate Memorial Day

by Steve Hill

Memorial Day weekend is just around the corner which means many families will be hittin’ the mountain passes in cramped cars packed full of camping gear, bikes, scooters, lawn chairs, blue tarps, and the family dog. But for those families sticking close to home this Memorial Day (you know who you are… been there, done that, never again with little ones), we’ve rounded up 11 family-friendly activities that will keep everyone happy and entertained over the 3-day weekend.

Youth-bollywood-dancers-3-by-Bernard-Mann

Northwest Folklife Festival
There’s no shortage of fun things to see, do and eat at the 42^ndAnnual Northwest Folklife Festival. One of the largest free folk festivals in the country, this annual festival features over 7,000 diverse performers, participatory dances, workshops, arts and crafts, and food booths galore! For younger visitors, Folklife offers tons of hands-on activities including a family dance/story/music tent, toy boat building and knot tying, make-and-take mosaic art and pop-up puppets, global crafts like Chinese calligraphy and piñata building, and fun language lessons. Friday, May 24 through Sunday, May 26 from 11:00 am – 10:00 pm; Monday, May 27 from 11:00 am – 9:00 pm. Seattle. Free. All ages. Event details.

Family Science Weekend
After you hit the Northwest Folklife Festival, take the fam to Pier 59 to learn about the cool science and research projects taking place at the Seattle Aquarium. In addition to lots of hands-on activities, enjoy special talks and demonstrations that will help the whole fam discover science in a fun way! Friday, May 24 through Monday, May 27 from 9:30 am – 5:00 pm. Seattle. Free with admission or membership. All ages. Event details.

Memorial Day Weekend Train Rides
If you and the kiddos are itching to get out of the city for the day, head east to North Bend and celebrate Memorial Day weekend with a scenic 75-minute round-trip excursion through the Cascade Foothills and to Snoqualmie Falls. Insider Tip: Be sure to explore the North Bend train depot and the fab bookstore open from 10:00 am – 5:00 pm as well as the cute town of North Bend. Saturday, May 25 through Monday, May 27 from 11:00 am – 4:00 pm. North Bend. $10 to $15 (under 2 free). Tickets required. All ages. Event details.

Memorial Day Weekend Circus Fun!
There won’t be any regularly scheduled spring classes going on at the School of Acrobatics & New Circus Arts (SANCA) over Memorial Day weekend, but SANCA will be open on Saturday and Sunday for lots of high-flying circus fun. Kiddos can take a Circus Bonus or Flying Trapeze class or try an Intro to Circus class with the whole fam. After a couple of hours of swinging, bouncing, and balancing, your lil’ monkeys will be ready for a long nap. Saturday, May 25 & Sunday, May 27 from 12:00 pm – 4:00 pm. Seattle. $30 and up. Ages 6 and older.Event details.

Cascade Warbirds Fly-In
Every Memorial Day weekend, the Museum of Flight hosts this annual fly-in featuring a wide variety of beautifully restored vintage military aircraft representing several nations’ armed forces from World War II through the Vietnam conflict. In addition to watching the planes take off and land, you and the kiddos can talk with the pilots and owners of these planes. Saturday, May 25 from 9:00 am – 3:00 pm. Seattle. Free. All ages. Event details.

Memorial Day Weekend Run
If a run around the park is what your kiddos need to get the ya-ya’s out, lace up your tennis and participate in this fun Memorial Day run! Participants can choose a 5k, 10k or 15k run/walk as well as a fun kid’s dash. The 400-meter kid’s dash (for ages 2-10) will start 15-minutes before race time—giving you the perfect chance to run with your kiddo and get warmed up before your race. Insider Tip: When everyone’s done, let Fido run free in the off-leash dog park, just around the corner from the starting line. Saturday, May 25 at 9:45 am. Seattle. $3 to $28. Registration required. Ages 2 and older. Event details.

Kitsap Harbor Festival
If you are looking for a fun day trip that also involves a ferry ride, this annual Memorial Day weekend waterfront festival, held at both the Bremerton and Port Orchard downtown waterfronts, is sure to be a big hit. Get a close-up look at the tall ships, grab some local eats at the farmer’s market, catch a classic car show, and enjoy more than 50 food and craft booths and a fab KidZone. Saturday, May 25 & Sunday, May 26 from 10:00 am – 6:00 pm. Bremerton/Port Orchard. Free. All ages. Event details.

Family Low Tide Beach Walk
The tide will be super-duper low over Memorial Day weekend which means it’s the perfect time to put on your rubber boots and join a Seattle volunteer naturalist to search for anemones, moon snails, and clams along the beaches of Puget Sound. Saturday, May 25 from 10:45 am to 12:15 pm; Sunday, May 26 from 11:30 am – 1:00 pm. Seattle. Free. All ages. Event details.

The Whizpops! at Zoomazium
If a trip to Woodland Park Zoo is a guaranteed hit for your fam, consider going on Sunday and hittin’ a home run! From 11:30 am – 12:15 pm, The Whizpops! will be playing a rockin’ concert inside Zoomazium. Kiddos (and parents) will love singing and dancing to kid-friendly, nature-themed tunes from these two elementary teachers turned rock stars. Sunday, May 26 from 11:30 am – 12:15 pm. Seattle. Free with zoo admission or membership. All ages.Event details.

Memorial Day at Seattle Children’s Museum
Join the folks at the Seattle Children’s Museum on Memorial Day to remember the great citizens who protected our freedom. Kiddos and families can honor those who have served our country by creating Memorial Day paper poppies and participating in other hands-on projects. Monday, May 27 from 10:00 am – 4:00 pm. Seattle. Free with admission or membership. Ages 10 months to 10 years. Event details.

Memorial Day Ceremony
Teach your kiddos the importance of Memorial Day by taking them to this annual ceremony held at the Museum of Flight. Starting at 1:00 pm, the Museum president and CEO will preside over the ceremony along with the City of Tukwila Mayor. The Museum will also honor military service with patriotic music by the Boeing Employees Concert Band. Bonus: All veterans and active U.S. Military personnel will receive FREE admission to the Museum with identification. Monday, May 27 from 12:00 pm – 3:00 pm. Seattle. Free. All ages. Event details.

Are you sticking around town for Memorial Day weekend? What do you have planned? Let us know in a comment below.

–Kristina Moy

Photo credit: Northwest Folklife Festival/Bernard-Mann

Steve Hill and Sandra Brenner
Windermere Real Estate Seattle Northwest
206-769-9577

Economy, Housing and Real Estate • May 23, 2013

Consumers’ pent-up demand promises economic boost

by Steve Hill

Economy, Housing and Real Estate

Paul Davidson, USA TODAY

American consumers have denied themselves so much for so long — putting off buying homes, cars and other purchases — that their pent-up demand is poised to kick-start a sluggish economy.

Four years into the recovery, stronger job growth, some loosening in bank lending and more stable household finances are finally paving the way for many Americans to move into their own homes, fill them with furniture and trade in creaky 10-year-old cars.

Last week, a measure of consumer sentiment showed buying attitudes toward appliances and other durable goods at the highest level since mid-2007. And the government reported that April retail sales solidly beat estimates despite huge federal spending cuts — a development that UBS economist Maury Harris partly attributed to an unleashing of pent-up demand.

Harris estimates that over the next five years, Americans' catch-up consumption will boost annual consumer spending growth by a percentage point and increase economic growth by half a point to more than 3% from about 2%.

"People have put things off," says IHS economist Chris Christopher. Now, he says, they're "feeling a little better."

After sharing a cramped one-bedroom Manhattan apartment the past five years, Justine and Matt Schwartz recently decided to move to a three-bedroom house in Greenwich, Conn. It will cost them hundreds of dollars a month in additional rent, as well as a new car lease and new furniture. Both Justine, a website editor, and Matt, a consultant, were promoted early this year.

After getting a raise, "I realized I don't have much to show" for it, Justine, 28, says. "We're feeling financially secure."

In the aftermath of the housing crash and recession, annual household formation was halved to 500,000 in 2008 and 2009 as Americans moved in with relatives and friends. Young adults aged 18 to 34 accounted for most of the drop, many of whom were unemployed, according to the Cleveland Federal Reserve Bank.

As a result, there were 2.3 million fewer households last year than there should have been based on population growth, Harris estimates. He expects those deferred households to sprout over the next five years — based on the recovery from the early 1980s recession — increasing household formation by 465,000 annually.

Housing starts, in turn, are expected to rise from 780,000 in 2012 to 990,000 this year and 1.2 million in 2014, Standard & Poor's predicts.

Other types of pent-up demand that should bust out:

Vehicle sales: The average age of cars and light trucks on the road is 11.2 years, up from 9.6 years in 2003, according to research firm Polk. Each new household leads to an average 1.3 new car purchases, UBS estimates. In the first quarter, 15.3 million new vehicles were sold at a seasonally adjusted annual rate, up from 9.4 million in early 2009.

Marriages: From 2005 to 2011, the marriage rate fell from 7.7 to 6.7 per 1,000 Americans, according to the Census Bureau. The rate should rise as young people move out on their own, juicing household spending, Harris says.

Births: Annual births fell by 7% to 4 million from 2007 to 2010. A family spends $226,920 on a child from birth through age 17, the Agriculture Department estimates.

Steve Hill and Sandra Brenner
Windermere Real Estate Seattle Northwest
206-769-9577

http://bit.ly/11bKx2t

Mortgage, Rates, Payment, Interest • May 23, 2013

Total Increase a Buyer May Pay if They Wait

by Steve Hill

Earlier in the week, we explained that experts have projected that U.S. home prices will appreciate by approximately 5% in 2013. We also revealed the Mortgage Bankers Association, Fannie Mae and the National Association of Realtors have all projected that the 30-year mortgage rate will be at least 4% by the end of 2013. If we assume that prices and interest rates will rise as projected, here is the monthly difference a buyer may pay if they wait a year.

Steve Hill and Sandra Brenner
Windermere Real Estate Seattle Northwest
206-769-9577

Mortgage, Rate, Interest, Home Buyer, • May 22, 2013

Mortgage Rates Projected to Increase

by Steve Hill

The Mortgage Bankers Association, Fannie Mae and the National Association of Realtors have all projected that the 30-year mortgage rate will be at least 4% by the end of 2013. If we assume that rates will still be at 4% in twelve months, here is the difference a buyer will pay if they wait.

Steve Hill and Sandra Brenner, Windermere Real Estate Seattle-Northwest 206-769-9577

Emergency and Safety Prepardeness • May 22, 2013

Oklahoma tornadoes prompt all to consider safety apps

by Steve Hill

The recent Oklahoma tornadoes have the nation gripped and mourning, and now considering preparations for their own lives. Moore officials are asking people to donate to reputable charities – we've included a list where you can give. Read on HERE

Steve Hill and Sandra Brenner
Windermere Real Estate Seattle-Northwest
206-769-9577

Shoreline Home for Sale • May 12, 2013

Two Homes – One Price! Open Sunday 12PM-3PM

by Steve Hill

15254 Dayton Ave N
Shoreline, WA 98133

This close-in Shoreline property offers two homes on one lot. The two bedroom, one bath front house has 1940's charm throughout. It has separate parking and its own laundry, making this an ideal rental home.

The back home, built in 1980 boasts a large great-room style room with the kitchen, dining and living rooms all open to each other. This upstairs features a large master suite with full bath, walk-in closet and a private sunny covered deck to enjoy the views of the gorgeous yard.

Online at ExclusivelyShoreline.com

For a private showing of this home, contact:

Steve Hill and Sandra Brennerr
Windermere Real Estate Seattle – Northwest
206-769-9577

Seattle Home for Sale • May 12, 2013

Seattle Single Level Home – Open Sunday 12PM-3PM

by Steve Hill

305 NW 127th Street
Seattle WA 98133

Beautifully maintained Broadview rambler welcomes you with a plethora of features throughout. In superb condition, this captivating home boasts a convenient circular floor plan with new interior paint, elegant light fixtures, rich hardwood floors, slate entry and halls.

Room warming fireplaces in the living and family room. Park like setting, efficient gas heat, oversized driveway, delightful street appeal, the list goes on and on. Single level homes of this size and location are hard to find.

On line at EldoradoLane.com

For more information or a private tour of this home, contact:

Steve Hill and Sandra Brenner Windermere Real Estate Seattle Northwest 206-769-9577

Are home prices rising?

Are interest rates rising?

Conclusion

Considering Buying? Give us a call and let our experience save you time and money. Steve Hill and Sandra Brenner Windermere Real Estate Seattle Northwest 206-769-9577

Steve Hill and Sandra Brenner Windermere Real Estate Seattle Northwest 206-769-9577

Steve Hill and Sandra Brenner Windermere Real Estate Seattle Northwest 206-769-9577

Steve Hill and Sandra Brenner Windermere Real Estate Seattle Northwest 206-769-9577

Steve Hill and Sandra Brenner, Windermere Real Estate Seattle-Northwest 206-769-9577

15254 Dayton Ave N Shoreline, WA 98133

For a private showing of this home, contact: Steve Hill and Sandra Brennerr Windermere Real Estate Seattle – Northwest 206-769-9577

305 NW 127th Street Seattle WA 98133

Steve Hill and Sandra Brenner Windermere Real Estate Seattle – Northwest 206-769-9577

Steve Hill and Sandra Brenner
Windermere Real Estate Seattle Northwest
206-769-9577

Considering Buying?
Give us a call and let our experience save you time and money.

Steve Hill and Sandra Brenner
Windermere Real Estate Seattle Northwest
206-769-9577

Steve Hill and Sandra Brenner
Windermere Real Estate Seattle Northwest
206-769-9577

Steve Hill and Sandra Brenner
Windermere Real Estate Seattle Northwest
206-769-9577

Steve Hill and Sandra Brenner
Windermere Real Estate Seattle Northwest
206-769-9577

15254 Dayton Ave N
Shoreline, WA 98133

For a private showing of this home, contact:

Steve Hill and Sandra Brennerr
Windermere Real Estate Seattle – Northwest
206-769-9577

305 NW 127th Street
Seattle WA 98133

Steve Hill and Sandra Brenner
Windermere Real Estate Seattle – Northwest
206-769-9577