2022 First Quarter- Pricing Statistics will impact Divorce Cases in Skagit, Whatcom, Island and Snohomish counties in Washington State

 

I find myself telling all the Family Law Attorneys I work with that "You are not imagining things if you’ve noticed an increase in real estate pricing for equity buyouts in your cases".

I hope your transition to life in 2022 has been smooth so far.

As far as the real estate market goes, it continues to be not so smooth. I want to keep you updated on some of the projections for change this year — some of which will impact the options available to your clients when deciding whether to sell their house or refinance. The following are national trends. Below that are local metrics I’ve put together so you can gauge the climate of our local market.

• Prices are expected to remain high in 2022. Fannie Mae expects prices to increase 7.6%. If your clients need to sell, they’ll likely have a strong upper hand.
• Home inventory is at an all-time low, and rents continue to rise. Fortune recently reported that “the housing shortage has forced many potential buyers to move into rental properties as they look for their next home [...] That option, however, is becoming increasingly expensive.”
• Mortgage rates are increasing — rates have already risen to 3.55% this year from 2.65% a year ago. That means two things: 1) The refinancing boom is fizzling quickly, and 2) The hike in interest rates further erodes affordability (a 1% change in interest rate has the same impact as a 10% change in mortgage payment).

 Local Trend in Prices: 

Currently, our first quarter (Q1) market is seeing an upward trend.

Skagit: Quarter 1 2021: Avg Price 527,320 -vs-  Quarter 1 2022: Avg Price $600,401 (Percentage Chg +14%)

Whatcom: Quarter 1 2021: Avg Price $543,289 -vs- Quarter 1 2022: Avg Price $590,058 (Percentage Chg +9%)

Island:  Quarter 1 2021: Avg Price $573,362 -vs-  Quarter 1 2022: Avg Price $665,984 (Percentage Chg +15%)

Snohomish:  Quarter 1 2021: Avg Price $668,103 -vs-  Quarter 1 2022: Avg Price $768,482 (Percentage Chg +15%)

Pricing Note: House values can fluctuate through the seasons. Spring is a different market than the Fall; mid-Summer looks much different from the end of the year. So in order to get an accurate reading as to whether or not prices have fallen or risen, we use the “year over year” barometer. 

Local Days on Market:

County, Quarter 1, 2021/ DOM (Days on Market) -vs- Quarter 1, 2022/ (DOM (Days on Market)

Skagit: Quarter 1 2021: DOM 21 -vs- Quarter 1 2022: DOM 32 (Percentage Change +52%)

Whatcom: Quarter 1 2021: DOM 30 -vs- Quarter 1 2022: DOM 22 (Percentage Change -36%)

Island: Quarter 1 2021: DOM 22 -vs- Quarter 1 2022: DOM 23 (Percentage Change +05%)

Snohomish: Quarter 1 2021: DOM 15 -vs- Quarter 1 2022: DOM 16 (Percentage Change +05%)

Days on Market (“DOM”) Note: This metric will tell us how long it takes for homes to sell. This number is largely driven by supply and demand. An uptick in interest rates can cause DOM to increase; a drop in unemployment can cause DOM to decrease. All sorts of economic factors can affect this number, and ultimately, DOM affects pricing. When there are low days on market, prices go up; when DOM increase, prices usually go down but in this current market the prices are continuing to rise.. 

Market conditions are constantly fluctuating. If you would like a market analysis for your own knowledge or for a specific case, feel free to contact me . As a CDRE™, Certified Divorce Real Estate Expert I am a helpful resource.

As always, keep my attorney document portal handy, should you need title documents or property values: https://ilumniinstitute.com/jsemanko/.

HUD Homes are great for First Time Buyers

A lot of real estate brokers discourage their clients from buying bank owned  and HUD homes. There is a misconception that the best buyers for every bank owned or HUD home is a professional buyer aka investor.  There are some great opportunities for owner-occupant buyers if they understand the process.  For many brokers, accepting that the process for representing a buyer on a bank owned or HUD home is different and choosing to master it, is a great way to expand the inventory they will have available to show their buyers. If you are a Washington State Real Estate Broker or would like to find out more about buying a HUD Home you may like to attend a zoom HUD Home Buyer's Training for Home Owners or Agents.

I have been a HUD listing broker since 2014 and have successfully sold over 150 as-is bank owned and HUD Homes. To see all the HUD Homes currently For Sale in Washington State you can contact directly.

Helpful websites: www.PEMCO-Limited.com or www.HUDHomestore.com 

Great HUD Home For Sale Langley WA./Whidbey Island

Conflict, Sorrow & Surprises when Selling the Home during Divorce Proceedings.

I have experienced all kinds of surprises while selling homes, specifically distressed properties and Foreclosures.  These experiences have become very helpful as I have pursued my "Divorce Real Estate Expert" credentials in the beautiful Skagit Valley.

I'll be posting some great real life situations involving selling your home in a divorce. Turns out it's not as easy as just selling and splitting the difference.  Most people don't have the funds to hire attorney's during the divorce proceedings.

I'm happy I've been able to help navigate the process of understanding how to use properly help both parties with  no bias to get the house sold so they can move on with their lives.  I received this case study recently. As I continue to increase my credentials to better serve the Family Law Attorneys in Skagit County studying real life scenarios like this help me serve the divorcing parties better.

There's nothing simple about a divorce. It involves more than most people ever imagined.  I'm fair and neutral in the process while working through mediation, collaboration and trials. This makes it possible for everyone to maximize the sale proceeds while satisfying the court order to get the house sold.

A Unique & Common Scenario showing the impact of a unique legal issue called transmutation that can complicate community property proceeding even more.
I'm sharing this with permission from DREI

"Three’s a Crowd in Marriage & Divorce
Your “standard” divorce is already complex. Lives are starting new phases, and finances are starting to get untangled. Diving into who is on title and who is on mortgages is a central part of resetting and moving to the next stage.

Sound simple? When you’re lucky, it can be. However, in many cases, a plethora of variables come into play that further confuse the issue. Often, people other than the married couple end up as partial owners of the house. This can be because someone needed a co-borrower to make enough money, or because credit scores weren’t high enough. Additionally, inheritances (with siblings or others) and investment properties can lead to a complicated situation.

And to further complicate things, there’s a legal issue called transmutation. In family law transmutation can mean changing separate property to Community / Marital Property, or Community / Marital Property to separate property, or any variation of how property is held to a different form of how property is now being held. And it can be done in a number of complicated ways. This can happen via a number of potential factors, including commingling of funds, who pays the mortgage, and who has lived where. It’s a gray area that leaves room for the court to decide.

Here’s a recent example of a case that was impacted by transmutation—the names have been changed to protect the divorcing.

Don and Liz Rivera were a married couple. When Don needed a business loan to start his new company, his brother Scott deeded him onto his house—one he’d owned for a decade. This gave Don the collateral needed to start the business.

Fast forward years later, and the marriage of Don and Liz was falling apart. Liz filed for divorce, and she claimed an interest in Scott’s house. That surprised Don and Scott—Liz was nowhere on the title. Even so, the court ruled that because of several factors, she was entitled to some of the property. They ruled she was due one-third of the value that the house had gained from the time that Don was added to the deed.

Every state is different, but no matter what, you have to be careful when you add anyone—even a best friend or family member—to a deed. You could be creating entanglement and opportunities for transmutation in ways you didn’t expect.

It is best to seek legal counsel before transferring title to property, especially when married or divorcing.

Copyright 2019 - Divorce Real Estate Institute"

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