Olympia and Thurston County Washington
Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from national market statistics to greater Olympia area home value trends and Thurston County happenings. That’s because we care about the community we serve and want to help you find your place in it. Please reach out if you have any questions at all or have a question or situation we can bring clarity to, and maybe it will end up being an article to help everyone!

Search our blog for helpful videos and articles.

June 16, 2022

Home Price Deceleration Doesn’t Mean Home Price Depreciation

Home Price Deceleration Doesn’t Mean Home Price Depreciation | MyKCM

Experts in the real estate industry use a number of terms when they talk about what’s happening with home prices. And some of those words sound a bit similar but mean very different things. To help clarify what’s happening with home prices and where experts say they’re going, here’s a look at a few terms you may hear:

  • Appreciation is when home prices increase.
  • Depreciation is when home prices decrease.
  • Deceleration is when home prices continue to appreciate, but at a slower pace.

Where Home Prices Have Been in Recent Years

For starters, you’ve probably heard home prices have skyrocketed over the past two years, but homes were actually appreciating long before that. You might be surprised to learn that home prices have climbed for 122 consecutive months (see graph below):

Home Price Deceleration Doesn’t Mean Home Price Depreciation | MyKCM

As the graph shows, houses have gained value consistently over the past 10 consecutive years. But since 2020, the increase has been more dramatic as home price growth accelerated.

So why did home prices climb so much? It’s because there were more buyers than there were homes for sale. That imbalance put upward pressure on home prices because demand was high and supply was low.

Where Experts Say Home Prices Are Going

While this is helpful context, if you’re a buyer or seller in today’s market, you probably want to know what’s going to happen with home prices moving forward. Will they continue that same growth path or will home prices fall?

Experts are forecasting ongoing appreciation, just at a decelerated pace. In other words, prices will keep climbing, just not as fast as they have been. The graph below shows home price forecasts from seven industry leaders. None are calling for prices to fall (see graph below):

Home Price Deceleration Doesn’t Mean Home Price Depreciation | MyKCM

Mark Fleming, Chief Economist at First American, identifies a key reason why home prices won’t depreciate or drop:

“In today’s housing market, demand for homes continues to outpace supply, which is keeping the pressure on house prices, so don’t expect house prices to decline.

And although housing supply is starting to tick up, it’s not enough to make home prices decline because there’s still a gap between the number of homes available for sale and the volume of buyers looking to make a purchase.

Terry Loebs, Founder of the research firm Pulsenomics, notes that most real estate experts and economists anticipate home prices will continue rising. As he puts it:

“With home values at record-high levels and a vast majority of experts projecting additional price increases this year and beyond, home prices and expectations remain buoyant.”

Bottom Line

Experts forecast price deceleration, not depreciation. That means home prices will continue to rise, just at a slower pace. Let’s connect so you can get the full picture of what’s happening with home prices in our local market and to discuss your buying and selling goals.

June 9, 2022

June MVP eNews

WE'RE HIRING! Help Us Find our Next Transaction Coordinator/Executive Assistant.

What's My House Worth? Get Instant Value

Refer a Home Pro: MVP is looking for your quality referrals of skilled Home Pros! Send us the name and contact info for your trusted handyman, plumber, electrician, house cleaners etc... Any skilled tradesperson licensed or unlicensed, we've got them covered, and we'll reach out to them!


History Proves Recession Doesn't Mean a Housing Crisis

 

It’s important to understand history proves an economic slowdown does not equal a housing crisis. Everywhere you look, experts are warning we could be heading toward a recession, and if true, an economic slowdown doesn’t mean homes will lose value. Read More!


Changes Coming to Medical Debt Reporting

Big changes are coming to the way medical debt will be handled on credit reporting as a result of a report issued by the Consumer Financial Protection Bureau (CFPB). Read More!

 


Homeowners Have Incredible Leverage When Selling Today

In today’s housing market, homeowners have a great opportunity to sell their house and receive the best terms for their situation. According to National Association of Realtors (NAR), the average home sold in 2022 is receiving 4.8 offers. Find out how MVP's numbers compare!


Mortgage Stats

Mortgage News Daily takes weekly surveys from Mortgage News Daily (daily index), Freddie Mac (weekly survey), Mortgage Bankers Association (weekly survey) and FHFA to report average average 30-year fixed-rate, 15-year fixed-rate and 5/1 hybrid amortizing adjustable-rate mortgage products. Check out the current numbers.


Featured Property

4 Bed, 3 Bath 1440 Sq Chehalis, WA

Refer a Friend or Family Member to MVP!

June 7, 2022

Why the Growing Number of Homes for Sale Is Good for Your Move Up

Why the Growing Number of Homes for Sale Is Good for Your Move Up | MyKCM

Are you thinking about selling your current home? If so, the biggest question on your mind may be: if I sell now, where will I go? If this resonates with you, there’s something you should know. The number of homes coming onto the market is increasing and that could make it easier for you to move up this summer.

According to the latest data from realtor.com, the number of homes being listed for sale, known as new listings, has increased consistently this year (see graph below):

Why the Growing Number of Homes for Sale Is Good for Your Move Up | MyKCM

While this news has clear benefits for buyers who are craving more options for their home search, what does that mean for current homeowners like you? It gives you two distinct opportunities in today’s housing market.

Opportunity #1: Take Advantage of More Options for Your Move Up

If your current house no longer meets your needs or lacks the space and features you want, this gives you even more opportunity to sell and move up into the home of your dreams. As more options come to market, you’ll have more to choose from when you search for your next home.

Partnering with a local real estate professional can help make sure you see these listings as soon as they come onto the market. And when you do find the one, that professional can advise you on how to write a winning offer to seal the deal.

Opportunity #2: Sell Before You Have More Competition

Just know that, in order to make sure your house shines above the rest, it may make sense to put your home up for sale before your neighbors do the same, creating more competition in your area. The increase in the number of homes being listed for sale is expected to continue, and a recent study from realtor.com says two-thirds of homeowners looking to sell say they’ll do so by August.

A real estate professional can advise you on what you need to tackle to get your house ready to list so they can put that for sale sign up in your yard sooner rather than later. That’s because the process of getting a home ready to sell isn’t taking as long as you may think. As a result, you can capitalize on today’s sellers’ market and get ahead of the competition.

Bottom Line

If you’re a current homeowner looking to sell, let’s connect to begin the process. You have a unique opportunity to benefit from the additional homes being listed today and sell before your house has more competition.

May 19, 2022

Homeowners Have Incredible Leverage When Selling Today

In today’s housing market, homeowners have a great opportunity to sell their house and receive the best terms for their personal situation. Right now, homebuyers want three things:

  • To be the winning bid on their dream home
  • To buy before mortgage rates rise more
  • To buy before home prices go even higher

These buyer needs give you an amazing advantage – also known as leverage – when you sell.

What Does This Mean for Sellers Today?

You might already realize this enables you to sell at a good price, but you’re also in a great position to get the best terms to suit your needs.

According to the latest Realtors Confidence Index from the National Association of Realtors (NAR), the average home sold in 2022 is receiving 4.8 offers. In comparison, MVP's clients for 2022 so far are averaging 6 offers on their home and receiving an average of 109% of their asking price for 2021 and 2022. That’s why there’s a good chance you’ll get offers from multiple buyers who are willing to compete for your house. When you do, look closely at the terms of each offer to find out which one has the best options for you.

And if you have questions at any point in the process, remember MVP Realty Group, your trusted real estate advisors, can help. We’re experts who understand the fine print, know how to compare the terms of various offers, and will help you select the best one for your situation.

Bottom Line

If you’re thinking of selling your home, know buyer demand in today’s market gives you a great opportunity to get the best terms and price when you sell your house. Connect with a real estate professional today to discuss how much leverage you have as a seller in today’s market.

May 16, 2022

Changes Coming to Medical Debt Reporting

Is It Enough To Offer Asking Price in Today’s Housing Market?

Big changes are coming to the way medical debt will be handled on credit reporting as a result of a report issued by the Consumer Financial Protection Bureau (CFPB). According to the CFPB’s research 58% of collections on a consumer’s reports are medical. And as of June 2021, the amount of medical debt on consumer credit reports was $88 billion dollars. Per CFPB Director Rohit Chopra, “When it comes to medical bills, Americans are often caught in a doom loop between their medical provider and insurance company. Our Credit reporting system is too often used as a tool to coerce and extort patients into paying medical bills they may not even owe.”

What Will Change?

  1. Starting July 1, 2022, medical debt that has been paid will no longer be included on credit reports from Equifax, Experian and TransUnion. 
  2. In addition, these credit bureaus are increasing the amount of time before medical debt in collections appears on credit reports to 12 months. With this timeframe previously at 6 months, this will undoubtedly give the consumer more time to settle the debt before it is reported to the credit bureaus.
  3. Starting in early 2023, any unpaid medical debt under $500 will not be able to be reported at all.  They estimate that these changes will remove nearly 70% of medical collection debt tradelines from consumer credit reports. That threshold may change as there is much speculation on whether unpaid medical debt of any amount should be reported 

Bottom Line

It has long been debated how much weight a borrower’s medical debt should hold when determining their creditworthiness. One things for sure, these changes have the potentially to help hundreds of thousands of consumers with the CFPB calling the new standards “a clear and important precedent for the health care industry.”

April 27, 2022

History Proves Recession Doesn't Equal a Housing Crisis

The One Thing Every Homeowner Needs To Know About a Recession | MyKCM

A recession does not equal a housing crisis. That’s the one thing that every homeowner today needs to know. Everywhere you look, experts are warning we could be heading toward a recession, and if true, an economic slowdown doesn’t mean homes will lose value.

The National Bureau of Economic Research (NBER) defines a recession this way:

“A recession is a significant decline in economic activity spread across the economy, normally visible in production, employment, and other indicators. A recession begins when the economy reaches a peak of economic activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion.”

To help show that home prices don’t fall every time there’s a recession, take a look at the historical data. There have been six recessions in this country over the past four decades. As the graph below shows, looking at the recessions going all the way back to the 1980s, home prices appreciated four times and depreciated only two times. So, historically, there’s proof that when the economy slows down, it doesn’t mean home values will fall or depreciate.

 

The first occasion on the graph when home values depreciated was in the early 1990s when home prices dropped by less than 2%. It happened again during the housing crisis in 2008 when home values declined by almost 20%. Most people vividly remember the housing crisis in 2008 and think if we were to fall into a recession that we’d repeat what happened then. But this housing market isn’t a bubble that’s about to burst. The fundamentals are very different today than they were in 2008. So, we shouldn’t assume we’re heading down the same path.

Bottom Line

We’re not in a recession in this country, but if one is coming, it doesn’t mean homes will lose value. History proves a recession doesn’t equal a housing crisis.

April 12, 2022

Sellers Are Not Going It Alone - FSBO

Why a Real Estate Professional Is Key When Selling Your House | MyKCM

With today’s real estate market moving as fast as it is, you would think more sellers would sell on their own, but that's not the case. Working with a real estate professional is more essential than ever. They have the skills, experience, and expertise it takes to navigate the highly detailed and involved process of selling a home. That may be why the percentage of people who list their houses on their own, known as a FSBO or For Sale By Owner, has reached its lowest point since 1985 (see graph below):

Why a Real Estate Professional Is Key When Selling Your House | MyKCM

Here are five reasons why selling with a real estate professional makes more sense, even in today’s hot market:

1. They Know What Buyers Want To See

Before you decide which projects and repairs to take on, connect with a real estate professional. They have first-hand experience with today’s buyers, what they expect, and what you need to do to make sure your house shows well.

If you don’t lean on their expertise, you may spend your time and money on something that isn’t essential. That’s because, in today’s low-inventory market, buyers are willing to take on more of the renovation work themselves. A survey from Freddie Mac finds that:

“. . . nearly two-in-five potential homebuyers would consider purchasing a home requiring renovations.” 

A professional can help you decide what you need to tackle. It’s not canned advice you could find online – it’s recommendations specific to your house and your area.

2. They Help Maximize Your Buyer Pool

Today, the average home is getting 4.8 offers per sale according to recent data from the National Association of Realtors (NAR), and that competition is pushing prices up. While that’s promising for you as a seller, it’s important to understand your agent’s role in bringing buyers in.

Real estate professionals have an assortment of tools at their disposal, such as social media followers, agency resources, and the MLS to ensure your house is viewed by the most buyers. According to realtor.com:

Only licensed real estate agents can list homes on the MLS, which is a one-stop online shop of sorts for getting a house seen by thousands of agents and home buyers. . . . This is certainly one of many good reasons why the majority of home sellers decide to employ the services of a listing agent rather than going it alone.”

Without access to these tools, your buyer pool is limited. And you want more buyers to view your house since buyer competition can drive your final sales price higher.

3. They Understand the Fine Print

Today, more disclosures and regulations are mandatory when selling a house. That means the number of legal documents you’ll need to juggle is growing. That’s why Investopedia says:

One of the biggest risks of FSBO is not having the experience or expertise to navigate all of the legal and regulatory requirements that come with selling a home.”

A real estate professional knows exactly what needs to happen, what all the paperwork means, and how to work through it efficiently. They’ll help you review the documents and avoid any costly missteps that could occur if you try to handle them on your own.

4. They’re Trained Negotiators

If you sell without a professional, you’ll also be solely responsible for all the negotiations. That means you’ll have to coordinate with:

  • The buyer, who wants the best deal possible
  • The buyer’s agent, who will use their expertise to advocate for the buyer
  • The inspection company, which works for the buyer and will almost always find concerns with the house
  • The appraiser, who assesses the property’s value to protect the lender

Instead of going toe-to-toe with all these parties alone, lean on an expert. They’ll know what levers to pull, how to address everyone’s concerns, and when you may want to get a second opinion.

5. They Know How To Set the Right Price for Your House

If you sell your house on your own, you may over or undershoot your asking price. That could mean you’ll leave money on the table because you priced it too low or your house will sit on the market because you priced it too high. Pricing a house requires expertise. Investopedia explains it like this:

. . . There is no easy or universal way to determine market value for real estate.

Real estate professionals know the ins and outs of how to price your house accurately and competitively. To do so, they compare your house to recently sold homes in your area and factor in the current condition of your house. These factors are key to making sure it’s priced to move quickly while still getting you the highest possible final sale price.

Bottom Line

There's a lot that goes into selling your house. Instead of tackling it alone, let’s connect so you have an expert on your side throughout the entire process.

March 30, 2022

March MVP eNews

What's My House Worth? Get Instant Value!

Refer a Home Pro: MVP is looking for your quality referrals of skilled Home Pros! Send us the name and contact info for your trusted handyman, plumber, electrician, house cleaners etc... Any skilled tradesperson, licensed or unlicensed, we've got them covered, and we'll reach out to them!


Real Estate Agents in the Movies

It's not unusual for real estate as a central motif to crop up in films and television. In honor of the 94th Annual Academy Awards last weekend, what movies can you think of with the most memorable Real Estate Agents? Read More!


Spring Projects for the Home

It's spring cleaning time again! A time of fresh starts and the perfect time to tackle home improvement projects. Learn More!


MVP's Winner of a 2022 Top Agent Award!

Homesnap Pro, a leading Real Estate search portal, tallied the data from 2021 for over 1 million Homesnap Pro agents nationwide and MVP has a winner on the team! Find out who!


Don't Get Caught Off Guard by Closing Costs

In today’s real estate market, it’s more important than ever to make sure your budget includes any fees and payments due at closing. Learn more.


Freddie Mac Mortgage Stats

Freddie Mac takes weekly surveys with lenders on the rates and points for their most popular 30-year fixed-rate, 15-year fixed-rate and 5/1 hybrid amortizing adjustable-rate mortgage products. Check out the current numbers.


Featured Property

6 Bed, 5 Bath 4823 Sq Lacey, WA

Refer a Friend or Family Member to MVP!

 

March 29, 2022

The Best Week To List Your House Is Just Around the Corner

The Best Week To List Your House Is Just Around the Corner | MyKCM

Are you thinking about selling your house? If so, you may want to make it a priority to start the process soon. According to realtor.com, the sweet spot for sellers is just around the corner. In a recent study, experts analyzed housing market trends by looking at data from the past several years (excluding 2020, since it was an atypical year). When applied to the current market, experts determined the ideal week to list a house this year. The research says:

“Home sellers on the fence waiting for that perfect moment to sell should start preparations, because the best time to list a home in 2022 is approaching quickly. The week of April 10-16 is expected to have the ideal balance of housing market conditions that favor home sellers, more so than any other week in the year.”

If you’ve been putting your move on the back burner waiting for the ideal time to sell, you should know your golden window of opportunity is coming up. If you’re able to get your house ready quickly, here’s what you can expect from that week.

You Should See More Buyer Activity

The article expects higher buyer demand based on what’s happened in previous years. This could result in increased competition among buyers and ultimately a bidding war over your house. And since mortgage rates recently ticked up over 4%, chances are good that analysis is right. When rates rise, experts say buyers often hurry to make their purchase before rates climb higher. As Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), says:

“. . . Buyers are rushing to lock in lower rates as the outlook is for even higher mortgage rates in the following months.”

Your House Is Expected To Sell Quickly

Additionally, the realtor.com analysis shows houses sell even faster during this week of the year, likely due to the heightened buyer demand. If you work with a trusted real estate professional to price your house right, it should sell quickly. And when homes are already selling in just 18 days according to NAR, that could set you up for a big win.

Your House Will Be in the Spotlight

Since the beginning of the year, the number of homes available for sale has been at or near record lows. According to the realtor.com study, the typical trend for this week of the year is that there will be even fewer sellers on the market. If you list when inventory is low, your house will be the center of attention for eager buyers craving options.

If you’re ready to move fast, you may want to shoot for April 10th-16th as your target goal. Just remember, even if you’re not ready to list within the next couple of weeks, rest assured this is still a hot sellers’ market. If you list later in April, you’ll still be in the driver’s seat.

Bottom Line

Ready to get the ball rolling? Let’s connect and schedule a time to go over your next steps. In the meantime, make a checklist of things you need to tackle to get your house ready. When we talk, we can prioritize your to-do list and get you on the road to selling your house.

March 28, 2022

Real Estate Agents in the Movies

 

It's not unusual for real estate as a central motif to crop up in films and television, in one way or another, even if they do so subtly. One movie could feature a luxury home with drool worthy landscapes and interiors. Another might feature real estate as the central conflict in a relationship or the end of one. Real estate movies are inevitable because home and location is a central conversation in any household. When was the last time you saw a movie where someone buys a house and everything goes smoothly? Have you ever?

In honor of the 94th Annual Academy Awards last weekend, what movies can you think of with the most memorable Real Estate Agents, good or bad (probably more often bad).