Buyer Interest Is Growing among Younger Generations

The demand for homes this year is extraordinary as record-breaking numbers of hopeful buyers continue to shop for homes. In a normal year, the peak homebuying season comes to a close by early fall. However, 2020 is anything but a normal year, and the housing market is no exception. Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), explains,

“Home sales traditionally taper off toward the end of the year, but in September they surged beyond what we normally see during this season…I would attribute this jump to record-low interest rates and an abundance of buyers in the marketplace, including buyers of vacation homes given the greater flexibility to work from home.”

What’s drawing so many buyers to the market?

As Yun mentioned, record-low interest rates are key. Today’s rates are strengthening purchasing power for buyers, too. Sam Khater, Chief Economist at Freddie Mac, emphasizes:

“Mortgage rates today are on average more than a full percentage point lower than rates over the last five years.”

If you’re a homebuyer right now, there’s no question that you want to take advantage of this opportunity – and you’re not alone. Competition among buyers is definitely increasing as more buyers enter the market and mortgage interest rates remain so low.

Who’s planning to buy a home right now?

Today’s affordability is appealing to all generations and seems to be especially attractive to younger buyers who want to begin growing their wealth through homeownership. There’s a distinct increase this year in the percentage of those in younger generations searching for homes. The National Association of Home Builders (NAHB) notes:

“Between the third quarters of 2019 and 2020, the share of Gen Z adults planning a home purchase rose three points to 14%. Millennials, however, are the generation most likely to be considering buying a home (22%).”

Here’s a graph showing the year-over-year increase in homebuying interest by generation:

According to Mark Fleming, Chief Economist for First American, millennials are reaching their prime home-buying years, likely driver in this increase:

“Record low mortgage rates and millennials continuing to age into their prime home-buying years has boosted demand, but a lack of housing supply remains a challenge.”

What’s the biggest challenge for today’s buyers?

Finding a home, however, as Fleming notes above, is clearly a challenge today. Yun also explains:

“There is no shortage of hopeful, potential buyers, but inventory is historically low.”

With so many buyers actively searching for homes this year and so few houses for sale, it’s more important than ever to work with a trusted real estate professional to navigate today’s market. From pre-approval to bidding wars and guidance on down payment assistance resources, having an agent by your side might make the difference in your ability to land your dream home.

Bottom Line

If you’re ready to buy a home, reach out to a local real estate professional to help you along the way. More buyers mean more competition, so you need an expert guide to help you stand out from the crowd.

SOURCE: Keeping Current Matters

October 28, 2020 Market Watch with Chris Doucet

As we move into Fall, new listings have slowed down however buyer interest continues to remain strong as sellers review multiple offers, and buyers submitting offers over ask. As a Compass broker, I continue to persevere and find unique ways to help sellers and buyers find their place in the world, through these conditions.  Contact me today to set up a virtual consultation to learn more about market conditions, Compass Concierge, and how we can sell your home virtually, for more. Chris Doucet Founding Broker in Seattle M: 206.819.4663 chris.doucet@compass.com © Compass 2020 ¦ All Rights Reserved by Compass ¦ Made in NYC Compass is a licensed real estate broker and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage. marketingcenter-greaterseattle-seattle

CURATED • OCTOBER HOMES ACROSS THE STATES WITH CHRIS DOUCET (Copy)

October 2020 Welcome to Compass Curated, a collection of our most prestigious properties across the country, delivered to your inbox each month. Luxury News New Home Construction Stays Positive For the second month in a row, new home builder sentiment reached a record high, according to the NAHB/Wells Fargo Housing Market Index. Both September and October saw index numbers above 80. For reference, an index above 50 is considered positive and the index stood at 71 this time last year. Homes Sell At Fastest Rate Ever As reported by CNBC as of September 2020, homes spent an average of 54 days on the market, the shortest average time ever recorded. Compared to averages this time last year, homes in the Northeast spent 13 days fewer on the market, while those in the South spent 11 days fewer, 9 days fewer in the Midwest, and 7 days fewer in the West. Luxury Home Sale Spike In the third quarter of 2020, luxury property sales spiked 41.5% compared to this time last year. As defined by Mansion Global, luxury is considered the top 5% of listings by price in the nation's 49 most populous metro areas. Stay up to date with Compass' latest luxury listings and news at LuxuryatCompass.com Visit Now Chris Doucet Founding Broker in Seattle M: 206.819.4663 chris.doucet@compass.com © Compass 2020 ¦ All Rights Reserved by Compass ¦ Made in NYC Compass is a licensed real estate broker and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage. marketingcenter-greaterseattle-seattle

Real Estate Continues to Show Unprecedented Strength This Year

The 2020 housing market has surpassed all expectations and continues to drive the nation’s economic recovery. The question is, will this positive trend continue throughout the rest of the year, especially given the uncertainty around the current health crisis, the upcoming election, and more?

Here’s a look at what several industry-leading experts have to say.

Lawrence Yun, Chief Economist, National Association of Realtors

“Home sales continue to amaze, and there are plenty of buyers in the pipeline ready to enter the market…Further gains in sales are likely for the remainder of the year, with mortgage rates hovering around 3% and with continued job recovery.”

Frank Martell, President and CEO, CoreLogic

“Homeowners’ balance sheets continue to be bolstered by home price appreciation, which in turn mitigated foreclosure pressures…Although the exact contours of the economic recovery remain uncertain, we expect current equity gains, fueled by strong demand for available homes, will continue to support homeowners in the near term.”

Zillow

“Zillow’s predictions for seasonally adjusted home prices and pending sales are more optimistic than previous forecasts because sales and prices have stayed strong through the summer months amid increasingly short inventory and high demand.

The pandemic also pushed the buying season further back in the year, adding to recent sales. Future sources of uncertainty including lapsed fiscal relief, the long-term fate of policies supporting the rental and mortgage market, and virus-specific factors, were incorporated into this outlook.”

Bottom Line

Many economists are in unison, indicating the housing market will continue to fuel the economy through the end of the year, maintaining this unprecedented strength.

SOURCE: Keeping Current Matters

Nouvelle Retirement - Words from Leonard Steinberg

Over the past few months I have had countless clients speak to me about the subject of their 'next chapter' - entering what we have traditionally termed retirement - yet it's a very different version of what we know. I have done lots of research on the subject to help give substantive advice and here are some things I have learned:

1.  Many people who retire continue working in some capacity. Some even start new careers and work harder than ever before. Real estate brokerage is a perfect example. Homes should accommodate this if they plan to work from home full time or part-time. My Dad was busier in retirement managing his money than when he owned and operated his business.....you need a place to do so effectively and enjoyably.

2.  Most who retire assuming they will start volunteer work, don't, mostly because they cannot find the time to do the volunteering because they are so busy....

3.  Most underestimate the fact that health issues will more than likely alter their plans or curtail them. Wherever you choose to live, what is the quality of healthcare and proximity to emergency care? A stroke or heart attack treated within minutes delivers significantly different recovery results than a stroke treated an hour or more later.

4.  Most underestimate the cost of housing. While many have achieved zero debt on their homes, they still have to factor in the costs of real estate taxes, maintenance, and repairs.  And re-decorating. And those costs with inflation.

5.  Many make the mistake of focusing on the home they will live in rather than the place that home is located in. Your neighborhood, surroundings, neighbors, amenities, access, walkability, etc are as important as the home itself. How important are esthetics to you? Do you like going to the same cafe for coffee every day or do you like multiple choices? Are three good restaurants enough for you or do you want twenty? How important are cultural institutions like the theater, opera, art galleries, museums, etc?

6.  Happy, healthy relationships and friendships make for happier people. Being close to these people matters. Making new friends is wonderful but not easy for some.

7.  Women have to have more money in retirement: they live longer on average! And if married, it's possible they will outlive their spouse.

8.  Physical activity is key to longevity:  where will you work out and exercise and what sort of activities will you be able to do as you age?

9.  One of the keys to healthy longevity is mental agility and stimulation. While a cottage in the middle of nowhere can sound awfully appealing, its practicality as it relates to mental stimulation can be very limited. Yes, you can do so much learning online, but learning in a group can be lots of fun, more stimulating, and infuse a social aspect to your life: are there good learning institutions in your area?

10. Do you or don't you like the heat? Many retirees are automatically attracted to warmer climates....then some discover some of those climates are unbearable. Often they deliver high levels of humidity too. Understanding your desires around climate is meaningful too. Altitude is another consideration: most are OK with it, but some are not. The beach is wonderful, but are you prone to skin conditions that suggest you should avoid excessive sun exposure?

11.  Inflation must be factored in o all planning. If inflation is 2% annually, $100 will be about $164 twenty-five years from now.... real estate is a great hedge against inflation.

I know there are so many other considerations in your clients 'final years'. The wealthier your clients, the more access they will have to advancements in medicine that could extend life well beyond what is anticipated today. We are not financial advisors, but we can help ask lots of questions for them to ponder to help them with their choices.

Having a DEEP, full understanding of locations outside of your specific area of expertise is critically important these days if you have a clientele that is approaching retirement age. This will afford you the ability to guide them to agents in different parts of the country (and world) to help with this decision-making process. Some of our wealthier clients will want to divide their time between two or three areas. Professional real estate advisory can extend well beyond your local expertise when you partner up with agents in other parts of the world to provide the ULTIMATE global real estate advisory to your clientele. Pre-screened, top quality introductions save your clients time and aggravation and add real value.

Many of my smartest, wealthiest clients appear less obsessed with tax savings and more obsessed with quality-of-life. Of course, who would not want to live in an area where taxes are lower, but you know the saying:  "Be careful what you wish for...."  Money alone is not everything and you cannot take it with you!