Local real estate market brings more opportunities for buyers

Homebuyers are also benefiting from lower interest rates, which are currently are less than four percent.

By Erin Flemming

Special to the Reporter

There’s good news for buyers in today’s real estate market: low interest rates and current market conditions can translate to more opportunities and some room to breathe.

Mona Spencer, branch manager for John L. Scott’s Redmond office, said depending on the location, the local market is strong and properties can still garner multiple offers.

However, Spencer noted that in May’s market, additional inventory has paved the way for buyers to take a bit more time and breathe throughout the process of purchasing a home. Brokers in the Redmond office have been seeing more buyers get contingent offers accepted, meaning they write the offer contingent on the sale of their existing home. Adding contingencies such as inspection and finance are also included in more of the current offers, reducing risk for buyers.

“Currently, buyers have more inventory to choose from,” said Spencer. “Generally speaking, we’re noticing that buyers are more analytical and thoughtful before they make their decision, mainly because increased inventory in many areas has given them the time to do so.”

Another element benefiting homebuyers is interest rates — which are currently are less than four percent. The lower the rate, the more buying power consumers have when entering the market. However, buyers are not the only group impacted by interest rates.

“People typically think of homebuyers as the group benefiting from low interest rates,” said Spencer. “However, home sellers will often become buyers once their home sells, and people who are choosing to stay put may look to refinance if the conditions are right.”

According to Black Knight, a mortgage software and analytics company, this unexpected and sharp drop in mortgage rates means there are now approximately 5.9 million borrowers who could see their rates drop by at least 75 basis points by refinancing their mortgages. This is an increase of 2 million in just the past month, making it the largest population of eligible candidates for refinancing in nearly three years.

Spencer recommends that homeowners exploring the possibility of refinancing connect with a mortgage professional to determine if it is the right choice for them. She also recommends, that if looking to purchase a home before the next school year starts, working with a real estate professional who will help get all the pieces in place to succeed.

“This time of year, parents are typically very busy with graduation and other activities associated with the end of the school year,” said Spencer. “However, it’s not too late to make a move before the school year starts. A broker can ensure you’re in tip-top shape to make the process as smooth as possible.”

Even for buyers who do not have children on their radar, it’s still important to put an emphasis on school district when weighing the pros and cons of homes, Spencer said. John L. Scott’s school search function is one way to explore homes in the boundaries of top schools, and a GreatSchools ranking appears next to each listing, which is an easy way to note school quality at a glance.

“Location is key for home values – it’s important to consider the school district of a home as well as proximity to job centers, entertainment and hospitals,” said Spencer. “Homes with a great combination of all of these elements hold their value and appreciate at a higher rate. Working with a broker can help, as they’ll do helpful research and can provide statistics on local schools and amenities.”

More in Business

Adding credentials can recession proof your career

Look at hard skills and soft skills to see where there may be a gap.

Chiropractic instrument takes the crack out of spinal adjustment

Disc Centers of America Bellevue uses the Impulse iQ for comfort and results

Redmond’s Moonie Icy Tunes receives county small business award

The business makes a point to hire 5-10 college students every spring.

Recession proofing your career

The best time to prepare for an economic downturn is when the job market is strong.

Redmond real estate market transitions into fall

There may be less competition than last year but well-priced homes in great locations can still garner more than one offer.

Financial turmoil contributed to Ducati Redmond closure, records show

NobleRush owner owed nearly $2.7 million on new bikes.

Ducati Redmond, along with 4 other NobelRush dealerships were abruptly closed without notice on Sept. 19. Stephanie Quiroz/staff photo
Ducati Redmond closes abruptly

NobleRush closed five of its loc dealerships abruptly without notice.

Change to U.S.-backed condo loans comes as summer market wraps up

A monthly real estate snap shot by John L. Scott Real Estate.

Cannabis collab sees Seattle women join forces

Seattle cannabis vendor names new product after local recording artist SassyBlack’s new album

First AG lawsuit against company no-poach clause ends with $150K payment

Jersey Mike’s had the contract provisions in place until April 2018.

Stephanie Quiroz/staff photo 
                                Rayed Siddiqui, 9, from Redmond sold handmade lego structures at the business fair on Aug. 26.
Young Redmond entrepreneurs set up shop at Acton Business Fair

Youth entrepreneurs donated a portion of their proceeds to charity of choice.

The Dragon Master Balrin, also known as Arnav, proved worthy of the name, discovering 211 dragons. Photo courtesy of OneRedmond
OneRedmond brings dragons to downtown Redmond

The Dragon Master Balrin, also known as Arnav, discovered 211 dragons.