In This Issue
New Listing in Edmonds
2021 in Review ... Predictions for 2022
Meet Jamie
Conforming Loan Limits for 2022
Sold in 2021
A Word About Referrals
Connect on Social
Download the January 2022 Print Newsletter Here and Email Me to Be Added to the Print Newsletter Mailing List. The January Print Newsletter should be in mailboxes later this month.
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Live this morning, check out this condo in Edmonds. It is a 2-story condo with 2 bedrooms each with a full bath. Additionally, there is a garage, a second parking spot, and lots of guest parking - what more could you ask for? The living room offers a wood-burning fireplace for cold winter nights. It's a well run 24-unit complex, where each unit is like a townhouse. There's a small backyard for enjoying your morning coffee, letting the dog do its business, or for your green thumb. New carpet upstairs. There's a bus stop less than a block away that will take you to the future Lynnwood Light Rail Station. Convenient to Hwy 99, Edmonds College, and Alderwood Mall. Just a couple miles to downtown Edmonds, the beach, and the ferry terminal. There's no rental cap and 2 cats or dogs are allowed.
Download a flyer.
Check out the 3D video tour.
Check out the full listing including all the photos.
Contact me for a private showing or with questions.
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At the end of each year, I review the details that made the current real estate market and then look ahead to predict what’s in store for the upcoming year. Below are my predictions for 2022.
2021 Summary:
The big news for the real estate industry in 2021 was that while we were all dealing with COVID and its variants, the housing market soared and buyers flocked to write offers. The real estate market hardly slowed down even during traditionally slower months. All in all, the market was red hot as expected in many markets and unexpected in other markets that are not usually traditionally as busy. The chart below shows you median sales price changes over the past year. As you can see, almost every area outside of Seattle saw huge increases, with Whatcom County leading the area with a 23% increase in price for single family homes and 25% for condos. Coupled with even higher appreciation rates in 2020, most homeowners are now sitting comfortably on a lot of equity in their homes. If you’d like to know how much equity you may have, please reach out to me at (206) 790-0081 or jamie@jamieflaxman.com.
2022 Predictions:
The year ahead is sure to bring more excitement and I hope for a year less focused on COVID and its restrictions. The year is sure to bring stabilization in many employment sectors and a return to a more normalized life. With that, here is what we may expect in 2022:
Housing Inventory – The housing industry saw a record-setting inventory crisis in 2021. Inventory will continue to be a major struggle in many markets in 2022. As of the end of 2021, in every county from Pierce to Whatcom, inventory levels are less than a month, and in some areas such as King and Snohomish Counties, there is only about one week’s worth of inventory. That means if no homes came on the market, everything would be sold shortly. Homeowners who are considering selling should consider bringing homes of the market this winter while inventory is so limited. Limited inventory = higher prices.
With inventory so tight, many homeowners who want to sell but are concerned about finding a home to buy may decide to stay put in 2022. Overall, inventory will remain limited due to the change in the work from home environment which is putting further demand on housing needs for a work from home employee.
Affordable Housing – First-time home buyers have not been able to buy in many markets due to rapidly rising home prices and a competitive buyer pool. In 2022, first-time buyers will continue to struggle to get into the housing market. This will force many first-time homebuyers to opt for employment that allows them to work from home and move to a more affordable market. This problem will not be alleviated until we are able to bring more inventory into the market.
Housing Starts/New Construction – The United States’ new construction shortage began in 2009 and by 2021, our country had accumulated a deficit of 5.2 million housing units. The U.S. needs 1.62 million units per year to keep up with demand for new construction (not including alleviating the deficit), the increase in population, and replacement of old structures. In 2021 the home building industry was not able to keep up with the demand and was further damaged by increasing lumber prices, supply chain shortages, and a lack of qualified tradespeople. All of this resulted in a surge in new home sales prices. Housing starts in 2022 will continue to not be able to meet the buyer demand and builders were deterred by high building costs. Delayed projects due to lack of laborers and trades people will begin to come back to the market. New construction will also see a dramatic change in product style and product size. Buyers are demanding a more modern architectural style and more space for working from home opportunities. Builders who did not stop production in 2021 will be aggressive in bringing product to the market as demand continues to ramp up for new homes.
Home Price Growth – 2021 saw historic home price growth and this price growth will continue in 2022. In fact, 2022 is gearing up to set a record for a decade-long streak for price growth of year-over-year price increases. Due to buyer demand and a severe lack of inventory, I expect the national median sales price in 2022 will continue to increase, but not at the rate we have seen over the past two years. The only reason we will not see a higher number is because of the pressure which will be put on affordability. Experts vary in their opinion of what increases will be like. I have read numbers on a national level as high as 16%. Locally, here in the Pacific Northwest I think we will see increases under 10% and in Seattle that will likely be lower. The 2022 increase will be lower than the double digit 14%-18% in 2021 but this is still a very healthy number.
Interest Rates – Since March 2020, interest rates have hovered near 3% for a 30-year fixed rate mortgage and they often went even below that. In December 2020 rates hit a historic low level of 2.68% which allowed more buyers into the market. This high demand and strong competition were a double-edged sword as it drove home prices upward. In 2022, I expect interest rates to climb slowly since inflation is on the rise. Mortgage rates will rise in 2022 and should increase to the high 3’s by year end. (And since I wrote this article on January 2nd, we're already seeing an uptick in rates.)
The 2022 real estate market will bring both challenges and opportunities but one thing is for sure and that is that the real estate market is sure to see another year that will set many records.
For questions, more information, or to understand how much equity you have in your home, please call or text: (206) 790-0081 or send an email to jamie@jamieflaxman.com.
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I am a real estate broker who cares deeply about my clients and community. I love my job, and nothing gives me greater satisfaction than helping my clients achieve their real estate goals and dreams.
Core Values
- Market knowledge and experience.
- Integrity and honesty.
- Social responsibility, charitable giving, and volunteerism.
- Service to the customer above all else.
- Excellence in reputation.
Experience
I have been a residential real estate broker since 2011, including being licensed as a Managing Broker since 2017 and a Real Estate Instructor since 2021. I have helped clients with the purchase and sale of single family homes, condos, townhomes, and vacant land. I particularly enjoy working with first time home buyers and seniors who are downsizing. I pride myself on providing exceptional service, and have received only 5-star reviews on Zillow, Facebook, LinkedIn, and Realtor.com. My primary service areas are King and Snohomish Counties.
Personal Interests
I love exploring the region’s many unique neighborhoods and cities, farmers markets, arts and crafts festivals, and cultural events. I am also an avid photographer, reader, beach lover, and traveler. I have traveled to 57 countries on 6 continents and hope to someday visit at least 100 countries on all 7 continents. My favorite destinations include the Galapagos Islands, Australia, Thailand, and Italy. I have a 24 year old son (picture below).
Did You Know?
Prior to becoming a real estate broker, I worked for 25 years as a clinical social worker and non-profit manager, with a focus on organizations benefiting children, women, and families.
Today I am involved with many community organizations, both as a volunteer and a donor. Among these groups are: Central Area Senior Center, the Children’s Alliance, Edmonds Waterfront (Senior) Center, Family Works, Fred Hutch Cancer Research Center, Phinney Neighborhood Association, Seattle Children’s Hospital, and Washington Kids in Transition.
My goal in every transaction is to ensure that your goals are achieved.
I have a proven track record that has brought positive results for every sale.
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Conforming loan limits for 2022 were recently announced. That is beg news with 2022 conforming loan limits at $891,250 in King, Pierce, and Snohomish Counties. Other counties in Washington will have a new limit of $647,200.
Why does this matter? Jumbo loans are more difficult to obtain as there are more hoops to jump through. Jumbo loans are not backed by Fannie Mae or Freddie Mac, so lenders are more cautious in approving jumbos.
One of my lenders gave the following example of a purchase in King, Snohomish, or Pierce County with the new loan limit. You could potentially purchase a $940,000 home with just 5% down.
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If you or anyone you know is thinking of buying or selling a home, condo, vacation property, or investment property, please contact me to discuss your situation. I am available to help with local, national, and international real estate needs.
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Connect on Social, Stay in the Loop All Month Long!
Here are the many ways you can connect with me to stay up to date on market happenings.
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As always, feel free to contact me with any questions or for further information on the real estate market.
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(206) 790-0081 | JAMIE@JAMIEFLAXMAN.COM
JAMIEFLAXMAN.COM
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