Real Estate Update for Clark County WA - November 2019

Strong Real Estate Sales Results for Clark County WA in November 2019.

Prices showed relative strength, while Unit Sales are now nicely above last year's posting at this time of the year. Inventory continues to slide. Here are the key points for this month's report: 

• Average-Sales Price slipped about $500 to  $404,034, with the 12-month/long-term trend line up 3.73% year-over-year;  with the 3-Month Moving Average up 3.4% from this time last year (up a small amount from last month); 
   
• The Inventory for Resale Real Estate slipped 0.4 months to a  much lower 1.3 Months of Supply;
   
• Approximately 526 Resale Properties closed in the month, which is about 30 more (6.05%) homes than in 2018; and 58 fewer than last month;
   
• REO/Bank Owned property sales were 5 units (0.95% of total); down from 3 (0.6%) in 2018; 
   
• Short Sale /Pre-Foreclosure property sales were 1 unit (0.19% of total); up from 0 (0%) in 2018.

Home Mortgage month-end, 30-year-fixed loan interest rate (nationwide average) rose slightly to 3.70% (Up from 3.69% last month) according to Freddie Mac; compared to 4.87% for November 2018. The current rate level will likely remain in this range for the near term.

My custom chart below for Unit-Volume (number of properties sold) that shows the short term (in Red) and long term (12-month moving average in Blue) trends: 

Clark County Home Sales - Units Sold Trend November 2019

The stronger, later-in-the-season sales have pushed the short-term's peak for this year to a higher level than last year; with the long-term trend in an upward direction vs. a downward direction. Both signs we're still in a Seller's, rising market.  

Next we have the Average Home Sales Price trend-chart, highlighting the current and historical Home-Sales-Price results in both short-term and long-term: 

Clark County Home Sales - Average Sales Price Trend November 2019

Prices once again this month are slowly drifting downwards, and in a slower manner than we usually see for this time of year. I believe that the low inventory and relatively strong demand is making this season's prices not-as-soft as we might typically see.

The Average Sales Price (using 3 months) for Clark County is now $404,034; which is an increase of approximately $14,522 from this time last year.

The final charts for this report come from RMLS and show:

Clark County Home Sales Inventory
& Days on Market - November 2019

New Listings aren't keeping up with Pending Sales and Closed Sales, even though all moved lower; causing the level of Active Inventory to shrink quite a bit. 

The second graph shows both Average List prices coming in quite strong again, while Sales Prices were at a high level as well.

Finally, Average Days on Market and Median Days on the Market moved upwards by a few days each.
You will also find posted the recent RMLS published report on the Clark County real estate market here: RMLS Market Action Report on our main website.

Thank you for visiting our Real Estate Sales report for Clark County WA. Please let us know if you have any questions or need help with your home or condo!

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PS - The real estate market is changing, prices are softer with loan costs presently at very low levels, keeping this an excellent time to List and Sell Your Property with Our Team; or, at least find out what your property is worth!  We offer a no-cost, no-obligation Clark County WA Home Valuation, and invite you to try it out!

PPS - Looking to buy a property reasonably soon?  Interest rates are still at historically low rates.  You are invited to visit our web-page for Clark County WA Homes For Sale where it is Quite Easy to search by City, Neighborhood or by Category, with homes and real estate listings from the entire RMLS.  Sign-up Not Required!  The property and home listings shown are provided via many updates each day, and you will be e-mailed hourly with any new matches once you've signed up for a home search.

We also have the MLS Listings for these great towns in Clark County:  Battle Ground WA Real Estate For Sale | Brush Prairie WA Homes For Sale | Camas WA Homes for Sale | Hockinson WA Homes For Sale | La Center WA Homes for sale | Ridgefield WA Homes for sale | Real Estate for sale in Vancouver Washington | Washougal WA Real Estate | Yacolt WA Homes For Sale | Amboy WA Homes For Sale

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The information and charts in this Clark County WA real estate update (prepared by Vancouver WA Home Sales Broker, John Slocum, CRS, SFR, our resident statistician) are based on home sales recorded in the Clark County WA MLS system (RMLS), excluding sales of mobile home; and shows the purchase activity since 2009; charting the 3 month Moving average number of sales, and the 12 month Moving average.  This "smoothing" of the trend-data helps illustrate the short-term and longer term trends in Clark County's real estate market.

Disclaimer: as with any real estate statistics, we do our best to provide the best representation at the time the data was acquired and compiled.  The data and reports are deemed reliable but not guaranteed.

Seven Reasons to Own a Home in Today's Market

7 Great Reasons to Own a Home in Today's Market in Vancouver and Clark County WA:  

Some people don't need a reason to buy a home, they just want it.  That can be enough justification by itself.  Other people need some solid logic before they're ready to make the commitment.  The following reasons might help you to make a decision.

1.    Pride of ownership ... among the most popular reasons given by homebuyers is that they want a place they can call their own and decorate and improve it the way they want.  It is a place to feel safe and secure and a place for their family.  They can share it with their friends and enjoy living in it.

2.    Good investment ... Homeowners have a 80 times greater net worth than renters.  By investing in a home that appreciates over time, it contributes to an increasing equity.  The high loan to value mortgages that are available combined with the low mortgage rates also contribute to the investment through leverage which has been described as "using other people's money" to control an investment.

3.    Interest and property tax deductibility ... Homeowners can deduct their qualified mortgage interest and up to a maximum of $10,000 of their property taxes as itemized deductions on their federal income tax return.  In some instances, the standard deduction may benefit them more, but they can elect to choose either method each year, whichever helps them the most.

4.    Capital gain exclusion ... A single homeowner can exclude up to $250,000 of capital gain and if married filing jointly, can exclude up to $500,000 of gain on their principal residence.  The need to have owned and occupied it as their home for two of the last five years.

5.    Cash out refinance ... Generally speaking, a lender will allow an owner with good credit and income to borrow the difference in their current unpaid balance and 80% of the fair market value.  This money can be used for any purpose and is not a taxable event.

6.    Equity buildup ...The difference in the value of the home and the unpaid mortgage balance is called equity and it increases with each payment made.  It is like automatic savings.

7.    No landlords ... Instead of dealing with landlords who may impose restrictions on things like painting, improvements and pets.  Owners are not concerned about rent increases and will have a fixed principal and interest payment for as long as they have a mortgage.

A bonus reason to buy a home now are the low mortgage rates available. The lowest rate recorded by Freddie Mac is 3.35% in December 2012.  Today's rates are 3.75% on a 30-year fixed rate mortgage and 3.21% on a 15-year fixed rate mortgage.  So, they are certainly very close to all-time lows.
The highest rate on a 30-year fixed rate mortgage was 18.45% in October 1981.  When you put today's rates in perspective, they are an incredible bargain.  Many industry experts expect that they will not remain as low as they are now.  Locking in a low rate can keep your housing costs low.
A $275,000 mortgage at 3.75% for 30 years has a principal and interest payment of $1,273.57.  If the rate goes up by 1%, the payment would increase to $1,434.53 or $160.96 per month for the 30-year term.

If you are currently renting, and have seen your rental rate go up every year (if not, you'd perhaps better check out the recent newspaper article on that!), and would like help with a Rent vs Owning calculation, please contact me and I'll be glad to help with that!

Clark County WA Home Sales Report - October 2019

Another Good Month of Home Sales Results for Clark County WA in October 2019.

With a moderation of price-increases, along with very low home loan rates at this time, unit-sales for homes in the county have performed very well. Inventory fell again with new listings matching pending listings. Here are the highlights for this month's report: 

• Average-Sales Price slipped less than $1k to  $405,574, with the 12-month/long-term trend line up 3.2% year-over-year;  with the 3-Month Moving Average up 3.1% from this time last year (up slightly from last month); 
   
• The Inventory for Resale Real Estate slipped 0.2 months to an even lower 1.7 Months of Supply;
   
• Approximately 552 Resale Properties closed in the month, which is about 11 fewer (-1.95%) homes than in 2018; and 38 fewer than last month;
   
• REO/Bank Owned property sales were 1 unit (0.18% of total); down from 5 (0.89%) in 2018; 
   
• Short Sale /Pre-Foreclosure property sales were 1 unit (0.18% of total); no change from 1 (0.18%) in 2018.

Home Mortgage month-end, 30-year-fixed loan interest rate (nationwide average) rose slightly to 3.69% (Up from 3.61% last month) according to Freddie Mac; compared to 4.83% for October 2018. The current rate level is expected to move slightly up and down for the near term.

Next we have my custom chart for Unit-Volume (number of properties sold) that shows the short term (in Red) and long term (12-month moving average in Blue) trends: 

Clark County Home Sales - Units Sold Trend October 2019

The improved mid-to-late season sales have continued to nudge the long-term trend slightly upward, with the short-term line now in its seasonal downturn which started at a reasonably high level.  

Next we have the Average Home Sales Price trend-chart, highlighting the current and historical Home-Sales-Price results in both short-term and long-term: 

Clark County Home Sales - Average Sales Price Trend October 2019

We are now in the zone where home sales prices are typically "softer" with the expectation that the direction of the short-term line will be slightly downward. These past two years we are seeing a decrease in the Long-Term line's price rise trend. With Inventory at such a low level, combined with low financing rates, we don't expect this measure to go much flatter.
 
The Average Sales Price (using 3 months) for Clark County is now $405,574; which is an increase of approximately $12,203 from this time last year.

The final charts for this report come from RMLS and show:

Clark County Home Sales Inventory
& Days on Market - October 2019

New Listings, Pending Sales and Closed Sales all moved ever so slightly downward, and they all ended up close to each other. 

The second graph shows both Average List prices falling back lower, while Sales Prices were higher than last month.

Finally, Average Days on Market and Median Days on the Market both moved upwards by several days.

You may also find posted the recent RMLS published report on the Clark County home sales market here: RMLS Market Action Report on our main website.

Thank you for reviewing our Home Sales report for Clark County WA. Please let us know if you have any questions or need help with your home or condo!
 

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PS - The home sales market is changing, prices are softer with loan costs presently at very low levels, keeping this an excellent time to List and Sell Your Home with Our Team; or, at least find out what your property is worth!  We offer a no-cost, no-obligation Clark County WA Home Valuation, and invite you to try it out!

PPS - Looking to buy a house reasonably soon?  Interest rates are still at historically low rates.  You are invited to visit our web-page for Clark County WA Homes For Sale where it is Quite Easy to search by City, Neighborhood or by Category, with homes and real estate listings from the entire RMLS.  Sign-up Not Required!  The property and home listings shown are provided via many updates each day, and you will be e-mailed hourly with any new matches once you've signed up for a home search.

We also have the MLS Listings for these great towns in Clark County:  Battle Ground WA Real Estate For Sale | Brush Prairie WA Homes For Sale | Camas WA Homes for Sale | Hockinson WA Homes For Sale | La Center WA Homes for sale | Ridgefield WA Homes for sale | Real Estate for sale in Vancouver Washington | Washougal WA Real Estate | Yacolt WA Homes For Sale | Amboy WA Homes For Sale

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The information and charts in this Clark County WA real estate update (prepared by Vancouver WA Home Sales Broker, John Slocum, CRS, SFR, our resident statistician) are based on home sales recorded in the Clark County WA MLS system (RMLS), excluding sales of mobile home; and shows the purchase activity since 2009; charting the 3 month Moving average number of sales, and the 12 month Moving average.  This "smoothing" of the trend-data helps illustrate the short-term and longer term trends in Clark County's real estate market.

Disclaimer: as with any real estate statistics, we do our best to provide the best representation at the time the data was acquired and compiled.  The data and reports are deemed reliable but not guaranteed.

Home Sales Clark County WA - September 2019

Home Sales Post Reasonably Strong Results for Clark County WA in September 2019.

We continue this month with a late-season surge for the Units-Sold element, with prices appearing to be topped out for the season. Inventory fell with the improved sales combined with a drop in new listings. Here are the key points for this month: 

• Average-Sales Price slipped ever-so-slightly $407,965, with the 12-month/long-term trend line up 3.58% year-over-year;  with the 3-Month Moving Average up 2.23% from this time last year (little changed from last month); 
   
• The Inventory for Resale Real Estate slipped 0.3 months to a very low 1.9 Months of Supply;
   
• Approximately 567 Resale Properties closed in the month, which is about 22 more (4.04%) homes than in 2018; and 162 fewer than last month;
   
• REO/Bank Owned property sales were 2 units (0.35% of total); no change from 2 (0.37%) in 2018; 
   
• Short Sale /Pre-Foreclosure property sales were 2 units (0.35% of total); down from 3 (0.47%) in 2018.

Home Mortgage interest rates the month-end, 30-year-fixed loan interest rate (nationwide average) fell again, but only slightly to 3.61% (Down from 3.62% last month) according to Freddie Mac; compared to 4.63% for September 2018. The current rate level is expected to remain in this range for the near term.

Our chart for Unit-Volume (number of properties sold) is up next and illustrates the short term (in Red) and long term (12-month moving average in Blue) trends: 

Clark County Home Sales - Units Sold Trend September 2019

The strong, late-season surge in sales has shown the long-term trend actually moving upwards slightly, combined with a good showing with the short-term trend line. 

The Average Home Sales Price trend-chart, up next, shows the current and historical results in both short-term and long-term: 

Clark County Home Sales - Average Sales Price Trend September 2019

Like last year, the Peak is extended over a couple of months, with the expectation that it will slide lower during the upcoming winter months.  However, that could change this year with the combination of extremely low interest rates, and the strong reduction in available Inventory.  Home loan interest rates are substantially lower this year than at the same time last year, which could help fuel continued home buying activity.

The Average (using 3 months) sales price for Clark County is now $407,965; which is an increase of approximately $8,908 from this time last year.

The remaining charts for this report come from RMLS and show:

Clark County Home Sales Inventory
& Days on Market - September 2019

New Listings again declined strongly from last month, with Pending Sales and Closed Sales both moving downward; with the level of Inventory falling owing to the insufficient new listings. 

The second graph shows both Average List prices taking a jump upwards, while Sales Prices show the typical seasonal easing.

Lastly, Average Days on Market and Median Days on the Market both moved up, each by just a few days.
We've also posted the recent RMLS published report on the Clark County home sales market, and you can find it here: RMLS Market Action Report on our main website.

Thank you for visiting our Home Sales report for Clark County WA; and please let us know if you have any questions or need help with your home or condo!

---

PS - The home sales market is changing, prices are softer with loan costs presently decreasing, keeping this an excellent time to List and Sell Your Home with Our Team; or, at least find out what your property is worth!  We offer a no-cost, no-obligation Clark County WA Home Valuation, and invite you to try it out!

PPS - Looking to buy a house reasonably soon?  Interest rates have been falling and are still at historically low rates.  You are invited to visit our web-page for Clark County WA Homes For Sale where it is Quite Easy to search by City, Neighborhood or by Category, with homes and real estate listings from the entire RMLS.  Sign-up Not Required!  The property and home listings shown are provided via many updates each day, and you will be e-mailed hourly with any new matches once you've signed up for a home search.

We also have the MLS Listings for these great towns in Clark County:  Battle Ground WA Real Estate For Sale | Brush Prairie WA Homes For Sale | Camas WA Homes for Sale | Hockinson WA Homes For Sale | La Center WA Homes for sale | Ridgefield WA Homes for sale | Real Estate for sale in Vancouver Washington | Washougal WA Real Estate | Yacolt WA Homes For Sale | Amboy WA Homes For Sale

---

The information and charts in this Clark County WA real estate update (prepared by Vancouver WA Home Sales Broker, John Slocum, CRS, SFR, our resident statistician) are based on home sales recorded in the Clark County WA MLS system (RMLS), excluding sales of mobile home; and shows the purchase activity since 2009; charting the 3 month Moving average number of sales, and the 12 month Moving average.  This "smoothing" of the trend-data helps illustrate the short-term and longer term trends in Clark County's real estate market.

Disclaimer: as with any real estate statistics, we do our best to provide the best representation at the time the data was acquired and compiled.  The data and reports are deemed reliable but not guaranteed.

Downsizing Your Current Living Arrangement

Downsizing is an often considered Alternative when your Current Home is Too Large...

 It is estimated that over 15% of the population in the U.S. are over 65 years of age.  With one of the most common fears of seniors being their money will run out early, it is understandable that downsizing may be strategy to meet their goals.

Once the kids are grown, have careers, relationships and get a place of their own, parents find they may not need their "big" home like they did before.  In other situations, their lifestyle might have changed, and the house just doesn't "fit" anymore.

The benefits of a smaller home can include the following:
•    Easier to maintain
•    Lower utilities
•    Lower property taxes
•    Lower insurance
•    More convenient location
•    Single level
•    Possibly more energy efficient
•    Possibly lower maintenance

Like any other big change in life, it is recommended that a person should take their time to consider the possible alternatives and outcomes.  Are they going to stay in the same area?  What type of property would suit their needs for the future?

The tax-free exclusion allows a homeowner to take up to $250,000 of gain for single taxpayers and up to $500,000 for married taxpayers.  Part or all of this could be used to generate income for retirement.  Other uses for the equity could include paying off other debt, taking the trip of a lifetime or making a special gift.

There will be expenses involved in selling a home as well as the purchase of a new home.  These will lower the amount of net proceeds you'll have to invest in the new home.

Homeowners should consult their tax professionals to see how this applies to their situation.  Please contact me if you have any questions about what your home is worth or how long it might take to sell it.  Other things that could be of value are our Homeowners Tax Guide or Sellers Guide.

Popular search pages we've already set up on our website include: 55+ Active Adult Communities in Vancouver WA; and Condos for sale in Vancouver WA.

Another page of interest is Single-Level Ranch Homes for sale in Vancouver WA.

Real Estate Sales Clark County WA - August 2019

Home Sales Pop for Clark County WA in August 2019.

This month we see the strongest posting for the Units-Sold measure in the past 2 years. Inventory is still low, although prices did not move any higher at this tem. Here are the highlights for this month: 

• Average-Sales Price eased just a few dollars to $408,947, with the 12-month/long-term trend line up 4.05% year-over-year;  with the 3-Month Moving Average up 2.32% from this time last year; 
   
• The Inventory for Resale Real Estate remained unchanged at a low 2.2 Months of Supply;
   
• Approximately 711 Resale Properties closed in the month, which is about 15 more (2.2%) homes than in 2018; and 26 more than last month;
   
• REO/Bank Owned property sales were 5 units (0.7% of total); down from 7 (1.0%) in 2018; 
   
• Short Sale /Pre-Foreclosure property sales were 6 units (0.9% of total); down from 9 (1.3%) in 2018.

Home Mortgage interest rates the month-end, 30-year-fixed loan interest rate (nationwide average) fell again to 3.62% (Down from 3.77% last month) according to Freddie Mac; compared to 4.55% for August 2018. The current rate level is now very close to the 3.35% all-time low!

The custom chart for Unit-Volume (number of properties sold) next up illustrate the short term (in Red) and long term (12-month moving average in Blue) trends: 

Clark County Home Sales - Units Sold Trend August 2019

Strong results this summer has caused the  Short-term trend line to move up higher than last year; and strong enough so that the Long Term line is clearly showing an upward turn. 

The Average Home Sales Price trend-chart, up next, shows results in both short-term and long-term: 

Clark County Home Sales - Average Sales Price Trend August 2019

If the past is any indication, at this point in the year we are at the high point; which is still showing an increase over last year but the rate of increased has slowed substantially compared to earlier in this long-term market upswing.  Mortgage loan interest rates declining combined with low Inventory, will keep pressure on sales prices.
 
The Average (using 3 months) sales price for Clark County is now $408,947; which is an increase of approximately $9,279 from this time last year.

The final charts come from RMLS and show:

Clark County Home Sales Inventory
& Days on Market - August 2019

New Listings declined from last month, with Pending Sales dipping slightly and Closed Sales both moving up slightly; with the level of Inventory remaining unchanged. 

The second graph shows both Average List and Sales Prices chugging along about the same as the past couple of months.

Finally, both the Average Days on Market and Median Days on the Market moved up moderately.

We've also made available the recent RMLS published report on the Clark County real estate scene, and you can find it here: RMLS Market Action Report on our main website.

Thank you for visiting our Home Sales report for Clark County WA; and please let us know if you have any questions or need help with your home or condo!
 

---

PS - The home sales market is changing, prices are softer with loan costs presently decreasing, keeping this an excellent time to List and Sell Your Home with Our Team; or, at least find out what your property is worth!  We offer a no-cost, no-obligation Clark County WA Home Valuation, and invite you to try it out!

PPS - Looking to buy a house reasonably soon?  Interest rates have been falling and are still at historically low rates.  You are invited to visit our web-page for Clark County WA Homes For Sale where it is Quite Easy to search by City, Neighborhood or by Category, with homes and real estate listings from the entire RMLS.  Sign-up Not Required!  The property and home listings shown are provided via many updates each day, and you will be e-mailed hourly with any new matches once you've signed up for a home search.

We also have the MLS Listings for these great towns in Clark County:  Battle Ground WA Real Estate For Sale | Brush Prairie WA Homes For Sale | Camas WA Homes for Sale | Hockinson WA Homes For Sale | La Center WA Homes for sale | Ridgefield WA Homes for sale | Real Estate for sale in Vancouver Washington | Washougal WA Real Estate | Yacolt WA Homes For Sale | Amboy WA Homes For Sale

---

The information and charts in this Clark County WA real estate update (prepared by Vancouver WA Home Sales Broker, John Slocum, CRS, SFR, our resident statistician) are based on home sales recorded in the Clark County WA MLS system (RMLS), excluding sales of mobile home; and shows the purchase activity since 2009; charting the 3 month Moving average number of sales, and the 12 month Moving average.  This "smoothing" of the trend-data helps illustrate the short-term and longer term trends in Clark County's real estate market.

Disclaimer: as with any real estate statistics, we do our best to provide the best representation at the time the data was acquired and compiled.  The data and reports are deemed reliable but not guaranteed.

Building Equity through Home Ownership

Invest in Equity Build-up

Equity build-up could be one of the biggest advantages to buying a home.  There are two distinct dynamics that take place to make this happen: each house payment applies an amount to reduce the mortgage owed and appreciation causes the value of the home to go up.

It is easy to make a projection based on the type of mortgage you get and your estimation of appreciation over the time you expect to own the home.  Even conservative estimates can produce impressive results.

Let's look at an example of a home with a $270,000 mortgage at 4.5% for 30 years and a total payment of $2,047.55 payment including principal, interest, taxes and insurance.  The average monthly principal reduction for the first year is $362.98. If you assume a 3% appreciation on the $300,000 home, the average monthly appreciation is $750 a month.

The total payment of $2,047.55 less $1,112.98 for principal reduction and appreciation makes the net monthly cost of housing, excluding tax benefits, $934.57.  If this hypothetical person was paying $2,500 in rent, it would cost them $1,565.43 more to rent than to own.  In the first year, it would cost them over $18,000 more to rent.

Together, the items in this example contribute over $1,100 to the equity in the home .  This is one of the reasons a home is considered forced savings.  By making your house payments and enjoying increases in value, the equity grows and the net cost of housing decreases by the same amount. 
In this same example, the $30,000 down payment grows to $133,991 in equity in seven years.  While this is equity build-up, the extraordinary growth is attributed to leverage.  Leverage is an investment principle involving the use of borrowed funds to control an asset.

To see what your net cost of housing and the effect of leverage will have on a home in your price range, see the Rent vs. Own.  If you have questions or need assistance, ontact Equity build-up could be one of the biggest advantages to buying a home.  There are two distinct dynamics that take place to make this happen: each house payment applies an amount to reduce the mortgage owed and appreciation causes the value of the home to go up.

It is easy to make a projection based on the type of mortgage you get and your estimation of appreciation over the time you expect to own the home.  Even conservative estimates can produce impressive results.

Let's look at an example of a home with a $270,000 mortgage at 4.5% for 30 years and a total payment of $2,047.55 payment including principal, interest, taxes and insurance.  The average monthly principal reduction for the first year is $362.98. If you assume a 3% appreciation on the $300,000 home, the average monthly appreciation is $750 a month.

The total payment of $2,047.55 less $1,112.98 for principal reduction and appreciation makes the net monthly cost of housing, excluding tax benefits, $934.57.  If this hypothetical person was paying $2,500 in rent, it would cost them $1,565.43 more to rent than to own.  In the first year, it would cost them over $18,000 more to rent.

Together, the items in this example contribute over $1,100 to the equity in the home .  This is one of the reasons a home is considered forced savings.  By making your house payments and enjoying increases in value, the equity grows and the net cost of housing decreases by the same amount. 
In this same example, the $30,000 down payment grows to $133,991 in equity in seven years.  While this is equity build-up, the extraordinary growth is attributed to leverage.  Leverage is an investment principle involving the use of borrowed funds to control an asset.

To see what your net cost of housing and the effect of leverage will have on a home in your price range, see the Rent vs. Own.  If you have questions or need assistance, please feel free to contact me.

Clark County WA Homes For Sale - July 2019

Home Sales Relatively Strong for Clark County WA this July 2019.

With more than half of the year behind us we are seeing a relatively strong summer season but, not yet strong enough to have unit-sales catch up to last year's level. With Inventory still quite low, prices have hit another high. Here are the key points for this month: 

• Average-Sales Price hit a new high, with the 12-month/long-term trend line up 3.98% year-over-year;  with the 3-Month Moving Average up 1.98% from this time last year; 
   
• The Inventory for Resale Real Estate remained unchanged at a low 2.2 Months of Supply;
   
• Approximately 678 Resale Properties closed in the month, which is about 11 fewer (-1.6%) homes than in 2018; and 30 more than last month;
   
• REO/Bank Owned property sales were 0 units (0% of total); down from 3 (0.4%) in 2018; 
   
• Short Sale /Pre-Foreclosure property sales were 2 units (0.3% of total); down from 3 (0.4%) in 2018.

For Home Mortgage interest rates the month-end, 30-year-fixed loan interest rate (nationwide average) is 3.77% (Down from 3.80% last month) according to Freddie Mac; compared to 4.53% for July 2018. The current rate level is now very close to the all-time low!

The custom Unit-Volume (number of properties sold) chart up next show the short term (in Red) and long term (12-month moving average in Blue) trends: 

Clark County Home Sales - Units Sold Trend July 2019

The Short-term trend line is moving up strongly, enough so that the Long Term line has started to turn upward modestly. 

The next chart for the Average Home Sales Price trends, illustrating the results in both the short-term and long-term: 

Clark County Home Sales - Average Sales Price Trend July 2019

Like we typically see each summer, sales prices are in the peak-area for the year. This time the difference between last year's peak is not as great as we've seen in prior years.  With home loan rates at such a low level, and Inventory so low, the pressure in sales prices remains strongly in place for now.
 
The Average (using 3 months) sales price for Clark County is now $409,245; which is an increase of approximately $7,944 from this time last year.

These remaining charts come from RMLS and show:

Clark County Home Sales Inventory
& Days on Market - July 2019

New Listings gained slightly from last month, with Pending Sales and Closed Sales both moving up as well; as a result there was no change to the level of Inventory. 

The second graph shows both Average List and Sales Prices turning in strong results.

Lastly, Average Days on market declined by several days; while Median Days on the Market increased slightly.

We've also made available the recent RMLS published report on the Clark County real estate scene, and you can find it here: RMLS Market Action Report on our main website.

Thank you for visiting our Home Sales report for Clark County WA; and please let us know if you have any questions or need help with your home or condo!
 

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PS - The home sales market is in change-mode as prices are softer with loan costs now falling, keeping this an excellent time to List and Sell Your Home with Our Team; or, at least find out what your property is worth!  We offer a no-cost, no-obligation Clark County WA Home Valuation, and invite you to try it out!

PPS - Looking to buy a house reasonably soon?  Interest rates have been falling and are still at historically low rates.  You are invited to visit our web-page for Clark County WA Homes For Sale where it is Quite Easy to search by City, Neighborhood or by Category, with homes and real estate listings from the entire RMLS.  Sign-up Not Required!  The property and home listings shown are provided via many updates each day, and you will be e-mailed hourly with any new matches once you've signed up for a home search.

We also have the MLS Listings for these great towns in Clark County:  Battle Ground WA Real Estate For Sale | Brush Prairie WA Homes For Sale | Camas WA Homes for Sale | Hockinson WA Homes For Sale | La Center WA Homes for sale | Ridgefield WA Homes for sale | Real Estate for sale in Vancouver Washington | Washougal WA Real Estate | Yacolt WA Homes For Sale | Amboy WA Homes For Sale

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The information and charts in this Clark County WA real estate update (prepared by Vancouver WA Home Sales Broker, John Slocum, CRS, SFR, our resident statistician) are based on home sales recorded in the Clark County WA MLS system (RMLS), excluding sales of mobile home; and shows the purchase activity since 2009; charting the 3 month Moving average number of sales, and the 12 month Moving average.  This "smoothing" of the trend-data helps illustrate the short-term and longer term trends in Clark County's real estate market.

Disclaimer: as with any real estate statistics, we do our best to provide the best representation at the time the data was acquired and compiled.  The data and reports are deemed reliable but not guaranteed.

Types of Real Estate in Vancouver WA and Income Tax Considerations

 

The Internal Revenue Service considers four different types of real estate.  Specific types of properties have benefits based on their classification.  The determination does not depend on the property itself as much as it depends on how the property is used and what the owner's intentions are.

Principal Residence ... a principal residence is the place a person lives or expects to return if they are temporarily away from it.  It could be a single family, detached home or condominium or a duplex, tri-plex or four-unit.  The owner(s) can deduct the qualified mortgage interest and property taxes on the schedule A of their tax return.  There is a capital gains exclusion on profit of up to $250,000 for a single taxpayer and up to $500,000 for a married taxpayer. 

Income Property - is improved property that is rented or leased to tenants as opposed to using it personally.  It can include houses and condos, apartment buildings, office complexes, shopping centers, warehouses and other commercial buildings.  Depreciation is allowed on the improvements.  For property held more than one year, the profits are taxed at long-term capital gains rates.  This type of property is eligible for a tax deferred exchange.

Investment Property ... can be raw land or improved property that is not rented or leased.  This property is not subject to depreciation.  If the property is held for more than one year, the profits are taxed at long-term capital gains rates.  It is also eligible for a tax deferred exchange. 

Dealer Property ... this type of property is primarily considered inventory because the intention is to sell it without intentionally holding it for more than a year.  It could be new construction such as a home builder.  It could be an investor who buys a property and expects to sell it for more.  There is not a requirement to make improvements.  The profits on dealer property are taxed as ordinary, "sweat of the brow" income.  Dealer properties cannot be exchanged.

A second home is like a principal residence in that you can deduct the interest and property taxes on your Schedule A, up to the limits.  A second home, as well as a principal residence, can be rented out up to 14-days a year without threatening the status of the property.  Seconds homes are not eligible for exchange because personal use properties are not allowed.  A second home is not a principal residence and profits are taxed like an investment property.  If you own it for more than a year, it is taxed at long-term capital gains rates.

Vacation homes are rented for more than 14 days a year and are like income property but with some additional rules that apply.  If your personal use is 14 days or less or 10% of the time it is rented, your expenses can be deducted in excess of income.  If you use it for more than 14 days or more than 10% of the number of days it is rented, it is considered personal use and your expenses are limited to the amount of income collected with no losses being deductible.
Taxpayers can strategically change the property type based on their intentions.  A principal residence can be converted to income property.  Dealer property could become a principal residence.  A rental property could become a principal residence.

Professional tax advice is always recommended to be able to understand the information and how it applies to your specific situation.

When it comes to purchasing or selling most any of the types of properties listed above, we at our team are happy and capable to help you - just let us know!

Some helpful real estate resources for the Vancouver Washington area:

Homes for sale in Vancouver WA

Luxury Homes for sale in Vancouver WA

Condos for sale in Vancouver WA

Commercial Real Estate for sale in Vancouver WA
 

 Experienced Realtors in Vancouver WA

Not In A Flood Zone? You May Still Want Flood Insurance!

Did you know...

Here in the Vancouver Washington and Pacific Northwest area we have many Rivers, Streams and Lakes, with the documented Flood Zones requiring property owners within those zones to have Flood Insurance Coverage. 

Not too well known however, is that it is very possible to not be within a Flood Zone, and have Flooding Damage to your home. In fact like the graphic above shows nationwide more than 20% of the flood claims come from properties that are not in a designated flood zone.

Water can come into the living area of a home from many sources, and a small amount can cause significant, expensive-to-repair damage. However, a standard homeowners insurance policy will only cover certain events such as a burst plumbing pipe or fixture within the home;  while a backed-up storm drain that floods your home will not be covered.

Can you think of the times when a strong thunderstorm rolls through our area and dumps an inch or two of rain rather quickly?  When our rainwater management systems are designed for precipitation quantities of about one-inch or less per day, the extra and rapid dumping of rain from a thunderstorm can quickly flood yards, streets, and can come quickly down hillsides and possibly end up in your home! This would be considered flood water, and any damage it causes to your property would only be covered with flood insurance.

In addition to considering flood insurance, it is also to keep an eye out for physical preventative measures you may be able to take to make it harder for flood water to enter your home. Two common places to check and perhaps remedy are: 1) Crawlspace vents that are at, or below grade; and 2) Downspouts and where their out-flow goes.

Crawlspace vents that are at or below grade are a somewhat common finding we see during a Home Inspection. These are necessary vents for a healthy home but, we must make certain it is very difficult for rain and groundwater to enter those vents.

The Gutter + Downspout system that is working correctly is also on the front-line of defense. Keeping the gutters clean, downspouts working, with the final delivery of the rainwater away from the home, in a manner the water will stay away from the home - is essential.

In sum, this article is not meant to be definitive or contain enough information to help you determine if you should buy flood insurance but rather, raise awareness enough that you'll check with your local insurance agent, and perhaps other resources available on the Web.

Additional Resources that may help you to learn more about this topic:

From FEMA: Your Homeowners Insurance Does Not Cover Flooding  and
                       Facts and Myths about Flood Insurance

Dave Ramsey: Do I Need Flood Insurance?

Bankrate: All Wet! 6 Flood Insurance Myths Debunked

PS - If you are looking to Sell or Buy a Home in Vancouver Washington please check us out at: www.ClarkCountyExpert.com.

Home Financing Rates Near All-Time LOW!!!

Delay Will Usually Cost More

Two things can happen when the mortgage rates go up before you've found a home or locked-in your mortgage.  You'll either pay the current mortgage rate which means a higher payment, or you'll have to increase your down payment to keep the monthly payment at the same level.

If the rate were to go up by ½%, the payment on a $275,000 mortgage would increase by $82.87 per month for the entire 30-year term.  That would increase the cost of the home by $29,835.
Some people are purchasing the maximum home that they can qualify for.  In that case, they cannot qualify for a higher payment and the only way to buy the same price home is to put more money down which may not be a possibility.  The other alternative is to buy a lower price home which may not be in the same area or size which will involve some compromises.

The rate is not the only dynamic that affects buyers waiting to purchase.  The home they want could sell to someone else.  Prices could increase as new homes come on the market.  The question that many buyers ask themselves when they become a victim of the consequences of delay is "What could we have spent the money on if we didn't have to make a higher payment?"

Mortgage rates are very attractive currently and within ½% of the all time low of 3.35% in December 2012.  The highest rate was 18.45% in October 1981.  Whether you're purchasing or refinancing, it may not be this low again.

To see how it will affect the payment, plug your numbers into this Cost of Waiting to Buy calculator or call me at (360) two-four-one-7232 and I'll help you with it.