The Olympia area for a day

We started at the Nisqually Wildlife Refuge.  It is a stunning natural oasis located in Olympia, Washington. The refuge is named after Billy Frank Jr., a famous Native American activist who dedicated his life to preserving the environment and the rights of his people. This refuge is a testament to his legacy and is one of the most beautiful and ecologically diverse areas in the Pacific Northwest.

 

 

One of the unique features of the Billy Frank Jr. Nisqually National Wildlife Refuge is that it is co-managed by several different entities, including the Nisqually Indian Tribe, the United States Fish and Wildlife Service, and the Washington Department of Fish and Wildlife. This collaboration is significant because it recognizes the important role that the Nisqually Tribe has played in the region for thousands of years.

 

 

Visiting the refuge is a truly awe-inspiring experience. The wetlands and estuaries made me feel so connected to the natural world that the Nisqually people have had for generations. The refuge is home to over 300 species of birds, including bald eagles, herons, and sandpipers, as well as countless other animals such as otters, beavers, and deer.  We saw two eagles, a few turtles, a gorgeous Heron, adorable barn swallows and soooo many Canadian Geese.

 

One of the most popular attractions in the refuge is the Nisqually Estuary Boardwalk Trail, which offers visitors a chance to experience the unique ecosystem of the estuary up close. This trail winds through the tidal marsh and mudflats and provides breathtaking views of Mount Rainier and the surrounding landscape.

 

Parking can be in short supply, so plan accordingly. The visitor’s center has restrooms, a small gift shop, information and an interpretive center. There are also port-a-potties by the lovey old barns.  The boardwalk paths are quite exposed, so dress accordingly for both hot and cold weather.

 

From the Nisqually Wildlife Refuge, we headed into Olympia, to the Farmer’s Market.   Well located, by the port, there is ample parking. For. Smaller market the variety was a pleasant surprise.  While the season is early (or winter is sticking around so long) fresh fruits and veggies were in short supply; apples and luscious greens. But soo many tulips, along with other flora. Yard art, jewelry, soaps, honey, cured meats, fish counter and so on. In addition , there are several permanent food carts. We enjoyed some light fare from the Greek Deli.

 

We ended our day with dinner at Anthony’s Home Front. Every table and booth had a nice view of the waterfront. As it is “prom season” we enjoyed watching all the prom photo shoots. Tempura Prawns were yummy. Rhubarb must be in season as there were an assortment of rhubarb cocktails and desserts.

Olympia has a lot of beautiful waterfront property, with lovely views. Our company has recently expanded into the Olympia area.  While I'm not licensed to practice real estate in Washington, I can absolutely connect you with an agent in Olympia. 

Perspective on the recent inflation data from our in-house lender

Hello All,

 

Wanted to give a quick update on how the inflation data (CPI) is impacting market this morning.  CPI data came in lower than forecasted and the market has taken that to signal that inflation may be moving in the right direction which is good thing for rates.  If you’re interested in some further light reading on the subject:

 

https://www.reuters.com/markets/us/view-us-march-cpi-comes-cool-side-2023-04-12/

 

The net result to rates so far this morning has not resulted in much change, but it is quite significant in the sense that we clear a hurdle that “might” have significantly raised rates.  Rates are currently at:

 

Program	Rates
	0 points	1 point
30 yr	5.99	5.75
15 yr	5.99	5.5
Jumbo 30	6.25	6
VA	5.75	5.5
FHA	5.75	5.5
10/6 Arm	6.25	5.25

 

Note: these rates are for informational purposes only, Rates will vary with specific financial information of both borrower and property.

I do also want to highlight the 1 point buydown option on the 10/6 ARM.  This would be a niche offering but is 10 yrs fixed rate at 5.25% so might be something of high appeal to the right customer.  Moreover, buydowns right now have been yielding some very appealing options (breakeven in very low number of months…meaning the monthly savings divided by the cost of the buydown pays off quickly…I have seen several instances in the 2 month area in the last few weeks).  I mention this because when buydowns breakeven are this low it rarely makes sense to not take advantage of.  Of course I’ll be happy to have these conversations with your clients but wanted to put on your radar also.

 

Hope everyone is enjoying there day.  Anything I can do to assist let me know.

 

Sincerely,

 

Johan Nielsen Loan Officer johan.n@cmghomeloans.com (971) 710-3553 APPLY NOW | MYSITE | DOC UPLOAD NMLS# 21531 | BRANCH NMLS# 2006997 | CORPORATE NMLS# 1820   HOME LOANS SIMPLIFIED

Errant smoke alarms

We were awakened this morning at 6:30 by our smoke and CO detectors going off...for no apparent reason. Yes, we leapt out of bed and raced around no ascertain nothing was actually wrongs and to silence the darn things. Smoke alarms may go off for no reason due to a number of possible reasons, including:

1. Low batteries: Smoke alarms are designed to emit a high-pitched sound when their batteries are running low, indicating that the batteries need to be replaced.

2. Dust and debris: Smoke alarms can also be triggered by dust and debris that accumulate on their sensors over time. It is important to regularly clean your smoke alarm to prevent this from happening.

3. Cooking smoke: Smoke alarms can be sensitive to cooking smoke and can be triggered if you burn your food or if you cook with a lot of smoke-producing oils or fats.

4. Steam: Smoke alarms can also be triggered by steam, especially if the steam is in close proximity to the smoke alarm.

5. Faulty smoke alarm: In rare cases, smoke alarms can malfunction and go off for no apparent reason. If this happens, you may need to replace the smoke alarm.

   
   

   
   
   

   
   

   
   

   Smoke alarms can also react to power bumps and surges, even those we don't fully notice. It is important to ensure that your smoke alarm is installed properly and tested regularly to minimize false alarms. If your smoke alarm continues to go off for no reason, it is recommended to consult a professional to identify and address the issue.

   
   

   Most think their smoke and CO detectors are up to date and in compliance with local guidelines. In my experience, most are not. 😬 Here is a link to the State of Oregon . The City of Portland has more stringent guidelines. Smoke detectors really do save lives, so please update them as needed.

Downsizing to a condominium?

Downsizing from a large house to a condominium can be a daunting decision, but it can also be a liberating one. Many people decide to downsize for a variety of reasons, such as financial freedom, reduced maintenance, and a desire for a more manageable living space. While the transition may require some adjustments, it can ultimately lead to a more fulfilling and stress-free lifestyle.

One of the main benefits of downsizing to a condominium is the financial freedom it can provide. Large homes often come with significant upkeep costs, such as landscaping, repairs, and utilities. Moving to a condominium can significantly reduce these costs, freeing up funds for other pursuits such as travel, hobbies, or retirement.

Another advantage of living in a condominium is the reduced maintenance requirements. As opposed to a large house, where there may be many rooms and outdoor spaces to maintain, a condominium often requires less upkeep. This can be especially beneficial for those who want to spend their time pursuing other activities or enjoying their retirement.

Living in a condominium can also provide a sense of community and security. Many condominiums offer amenities such as gyms, pools, and community spaces, which can help residents to meet their neighbors and form friendships. Additionally, many condominiums have security features such as gated entrances or 24-hour security, which can provide residents with peace of mind.

Buying a condominium is also buying into the financial entity that is the home owners’ association. A fully funded and well run homeowners’ association is important. Just as buyers have a home inspection, it is highly suggested that condominium buyers have an evaluation done of the health of the HOA.  There are a few companies that perform this evaluation. They look at the financial reserves, reserve study (projection of what work/maintenance will need to be done and when) and other HOA information. 

Of course, downsizing from a large house to a condominium also requires some adjustments. Storage space may be limited, and some amenities such as a yard or garage may no longer be available. However, with some careful planning and organization, it is possible to make the most of a smaller living space.  In Portland, the Community Warehouse will pickup large household items.  The Re-BuildingCenter will take construction materials, household fixtures and some appliances. 

Overall, downsizing from a large house to a condominium can be a positive and fulfilling experience. It can provide financial freedom, reduced maintenance requirements, and a sense of community and security. While the transition may require some adjustments, the benefits of downsizing can make it a worthwhile decision.

Heatpumps; the oft misunderstood HVAC solution

 Heat pumps have been around a long time. In their infancy, they provided heating and cooling for homes in mild climates, say 40 - 80 degrees Fahrenheit.  A home would have a back up heat source (forced air furnace?) for colder times. Similarly homeowners would augment the cooling with window air conditioners. Heat pumps were sort of an odd bird, working well most of the time, but not coming through in the extremes. 

Today, heat pumps are being installed, and only heat pumps (no back up source needed) in a variety of inclement climates. What changed?

But before we go there, how the heck do those things work anyway? Heat pumps work by transferring heat from one place to another using a refrigerant. They can be used for both heating and cooling purposes. In a heating mode, the heat pump extracts heat from the outside air, ground or water source and transfers it to the indoor space. This process is achieved by circulating a refrigerant through a closed loop system, which includes an outdoor unit (evaporator) and an indoor unit (condenser). The refrigerant absorbs heat from the outdoor air, which causes it to vaporize and travel to the indoor unit where it is compressed, raising the temperature and releasing heat into the indoor space. In a cooling mode, the heat pump works in reverse. The indoor unit acts as the evaporator, extracting heat from the indoor air and transferring it to the outdoor unit (condenser), which releases it into the outside air.

What changed is pretty simple. Efficiency. Heat pumps can be highly efficient because they do not generate heat like a traditional furnace or air conditioning unit. Instead, they move heat from one place to another, making them an environmentally friendly and cost-effective option for heating and cooling.

Today, it is standard practice to install only a heat pump to heat and cool a house...with no back up heat or cooling source. Most heat pumps run on electricity. Clean energy proponents like heat pumps for their ability to run off clean power (think solar, wind etc). Most power companies offer consumers a green energy option, allowing folks to decarbonize their heating and cooling even if they don't have their own clean energy source.

Unfortunately, many traditional HVAC companies do not offer heat pumps as a "go to"solution, but merely look at replacing an aging/inoperable furnace with like kind. The natural gas industry has a strong lobby in an effort to keep natural gas in our homes

Often, we only replace a heat source when it fails, limiting options to contractors and systems available on short notice. Consider making a plan before your heat source fails. Proactively identify what contractor you will use, what system or type of system you'll want and the timeline involved. You might even replace an aging/failing heat source before the emergency situation.

After that crazy heat dome in the summer of 2021, we went in search of air conditioning. As we had an aging furnace, we choose to replace it with a heat pump. That got us a new, more efficient heat source along with central cooling! We used Greensavers for the work and were very impressed with their process, service and the end result. I'd be glad to talk more with you if you have questions.

Portland real estate update

 

Really now, how IS the market?

As interest rates saw a marked increase in November 2022, the market showed corresponding slowing. At the same time, seasonal slowing (but for "on fire" 2021) brought the Portland Area market back to earth.

Traditionally, Portland's market wakes from its holiday slumber in mid to late January.  This means more new listings on the market along with an uptick in pending sales. Indeed, we've seen an increase in listings from December 2022 to January 2023, along with an increase in pending sales from December 2022 to January 2023.

While economic news appears optimistic, interest rates have remained elevated, though not as high as those mid-November 2022 rates.

Some buyers have tired of putting their home ownership plans on hold, and are back in the market with a vengance, interest rates be damned.  Others are waiting for rates to come down.  We don't expect a drastic decline in rates. While the wait is understandable, I sure hope they aren't waiting for 3% interest rates. They could wait a lifetime.   Something closer to 5% may be more realistic.

Some sellers are reluctant to sell, if their current home has a particulartly low interest rate. It can be hard to "give up" that low rate. Would you let a low rate keep you from moving on?

I'm always available to answer questions about your particular situation, whether you are buying selling or planning.

5 Ways to know you are in love with the right home

What are you looking for anyway?

Home buyers usually have a "must have" list, and a "nice to have" list.  While we all like to think of ourselves as rational, and solid decision makers, you'd be surprised how much emotion plays into home buying decisions. Sometimes, buyers will forgo a "must have" in deference to a strong emotional pull.  That's okay!  What is important is buying the house that works for you.  That being said, it is good to review your "must have" list, especially when the emotional pull of the house is strong.   As your Realtor, part of my job is to remind you of your "must haves" and help you reconcile the practical and the emotional.   I know that kitchen is swanky, but this house has one less bedroom and bath than your "must have" threshold.  Similarly, a house can check all the boxes on your list, but still not be "the one".   That's okay too.

1. Is this home located in your target area?  
If you were to purchase this home, how long would your commute be? Does it put you too far from family or friends? Is the location going to be the right fit for your lifestyle? Even if you love everything else about a property, if it isn’t in a great location, it may not be the right place for you to settle down.

2. Does it check your “must-have” boxes? 
During your home search, you should make a list of non-negotiable must-haves, such as having a certain number of bedrooms or a sprawling backyard. While you may not be able to find a home that meets every single need, it can help you decide whether a property is right for you.  

3. Will this home meet your needs both now and in the future? 
As you build your non-negotiable must-haves list, it can be easy to only consider your current needs and wants. But what about five or even ten years down the road? The costs of buying and selling are not negligible, and moving is less than pleasant. While you don't want to buy at the tip top of your range and strap yourself financially, it is best when your house can work for you through a variety of life changes.  Purchasing a home that only fits your current lifestyle may force a move sooner than. later. 

4. Are there any potential issues you’ll need to fix? 
A home inspection can not only help with repair negotiations during your purchase, it can also help you plan for fixes and upgrades duyring your ownership.  Unless you are buying new construction, the house you buy will have had some systems addressed recently, and will need other work done in the future.  Its not realistic to expect a house to be in perfect shape, so what it will need over time should be manageable. Does it have finicky features that will need constant attention? Will you be okay or even enjoy the required upkeep? Or is low maintenace a priority? 

5. Does the price fit within your budget? 
Love at first sight is important, but it’s also important to remember the practical side of things — and that means your budget! If the home you love is a stretch, are there ways to justify the stretch? It actually is in perfect shape so you won't have to spend a dime for years to come.  It has an extra space that can provide income. The floor plan will allow a family member to move in. Or, you just love it and are willing to sacrifice to make it work.  Just be sure you stop and think before being swept away. 

Portand's 2023 Real Estate Market?

What do we think the 2023 Portland real estate market will be like?

It looks as though interest rates will settle in somewhere below 6%. Rate predictability will benefit both buyers and sellers, allowing parties to make decisions reliably.  Continued lower inventory of homes on the market will keep demand in play, but longer market times will give buyers a chance to consider their purchase (and make better decisions).

Timing the market is hard, or impossible.People who think they timed the market most likely got lucky.  And a market in extremes (crazy sellers market or heavily weighted buyers market) brings undue pressure on one party or another.

2023 is the right time to buy if:

You plan to be in your home three or more years. 

Home ownership is in your life plan. 

You want to lock in your housing costs and have control of your environment. 

You need to sell to buy. It is reasonable to expect to get an offer accepted subject to selling your current home. The extreme sellers market of the last few years left little to no opportunity for those who had to sell to buy.  Now is your time.

You don't make large financial decisions quickly and want time to think about such a major purchase. 2023 should give buyers a bit of time in which to contemplate their choice and purchase. 

You want the opportunity to have your prospective home inspected and evaluated. The 2023 market should be balanced enough that buyers can have inspections and perhaps even negotiate repairs and concessions from the seller.

You'll use a lower down payment loan and don't have the resources for bidding wars and bridging appraisal gaps with cash reserves.

Selling in 2023:

Sellers will still be in the drivers' seat in this market. You'll just be driving a BMW compared to a Ferrari. 😂.  

It remains important for houses to be priced well (not aspirationally) and thoroughly prepped for sale.    Consider getting an inspection in advance of selling, and addressing the issues on the inspection. Have the furnace serviced, tend to those maintenance jobs you might not have gotten to. Clean, paint, power wash. be sure your water heater has two seismic straps. Be sure your smoke and CO detectors are in compliance with your city/state rules (in Portland there must be a smoke detector inside each bedroom, and CO detectors within 15 feet of each bedroom, they must be less than ten years old). Gather maintenance, repair and remodel records and recipients. Find that paperwork from the oil tank that was decommissioned years ago.  Remove LOTS of furniture and belongings from the house, and consider having it professionally stage. All that prep will pay off.

I'm glad to give you direction and ideas for house prepaid even have a few suggestions for service providers. 

As always, I'm here to discuss your specific situation and help with your real estate plan.