Snoqualmie Pass Real Estate, Mortgage, and the Economy – Downtown Seattle Poised For Even Bigger Residential and Hotel Boom

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com



Downtown Seattle poised for even bigger residential and hotel boom

Downtown Seattle is experiencing explosive growth—but not all Seattleites have access to opportunity

2017 was a big year for construction, with more than 5,700 homes, 3.6 million square feet of office space, and more than 600 hotel rooms coming online in the city center alone. But the future outlook is even bigger.
Downtown neighborhood association Downtown Seattle Association (DSA) released its annual State of Downtown report this morning, which explored the trajectory of the city center’s growth over the past eight years—and forecasted even more explosive growth in the future.
DSA’s work covers not just the downtown retail core and waterfront, but some surrounding core neighborhoods: Uptown, South Lake Union, Denny Triangle, First Hill, parts of Capitol Hill, the International District, Pioneer Square, and Belltown.
Out of those neighborhoods, South Lake Union had the biggest year for new homes and homes-in-progress, with 5,473 units finished or in active construction in 2017. Next came First Hill, with 2,503 new homes, and Denny Triangle, with 2,445.
While 5,703 units were completed in the area in 2017, the real boom year to watch is 2020. If all permitted and planned projects move forward, those neighborhoods combined could have nearly 17,500 homes built in that year alone.
The outlook for hotel rooms is similar. 637 rooms were added in 2017, and nearly 2,200 are planned for 2018—largely because of the Hyatt Regency under construction, which will be the largest hotel in Seattle when it’s done. In 2020, though, that number skyrockets to 2,923.
DSA president Jon Scholes did acknowledge while presenting the report on Wednesday morning that despite the boom, many are being left behind.
“The welcome mat to our city is narrow,” said Scholes, limited to those “who can afford the high cost of housing.”
In previous Seattle eras, said Scholes, “rich, poor, and in-between” contributed to downtown. And while the expansion of the region’s light rail “will allow more people to have access to the jobs and opportunity” downtown, said Scholes, Seattle needs even more homes to address affordability problems—or, as he puts it, “lift the limits on housing supply.”
Scholes voiced support for the city’s Mandatory Housing Affordability (MHA) plan, which trades extra building height for either physical affordable housing units or payment into an affordable housing fund. The plan is currently undergoing a public comment period while under a hearing examiner appeal.
At a media availability after the presentation, Scholes acknowledged that MHA isn’t the only way to work toward housing affordability. “But if we’re going to spend $7 billion on one of the most expensive rail systems in the country... we will not realize the return on that investment if we’re not building housing around it. We need to do that, and we need to get ahead of it and not chase it.”
Scholes argued the Link light rail corridor, which currently stretches from the University of Washington down through the Rainier Valley to just south of Seatac Airport, should have been rezoned before transit went in. “Now we’re trying to catch up.”
Brookings Institution centennial scholar and former Housing and Urban Development chief of staff Bruce Katz, appearing at the event with Scholes, agreed. “You did lose a bit of time here,” he said.
Much of the corridor that the light rail line serves runs through an area acknowledged by the city as having a high risk of displacement. Still, said Katz, “going up on height is critical, you have to go up on height... think you can do this in a very smart and sensitive way.” He said other regions have used “policy techniques” successfully to address displacement, but didn’t provide specifics.
Aside from MHA, Scholes said he’d like to see “a property tax rebate to existing landlords of existing properties if in exchange they keep some of those units restricted to a certain income” to “take some of the older supply that’s not at that market rent” and “bridge some of that gap.”
He said this would be a “great opportunity to set aside thousands of [affordable] units,” but would need action in the state legislature to come to fruition.
Katz said that said that to address many of Seattle’s problems, we “need private capital to come in and fill what are growing gaps, because the federal government and states are backing away.” He other cities are leveraging private capital toward large-scale neighborhood regeneration, giving Cincinnati as a notable example.
“You have the wealth. You have enough crises to get you motivated,” explained Katz. “But the cultural of collaboration that is backed by capital doesn’t quite exist here in the same way it exists in other parts of the United States. I do think it would be really important just to choose one thing and say, okay, we’re going to bring together leaders and institutions from multiple sectors, put real money on the table, then play it out for two years.”
When asked about Seattle’s plethora of public-private task forces, Katz said that “most of those task forces have no force... in the end a lot of people come together and they put together policy ideas and then those ideas never get executed or implemented. [Other groups are] meeting to decide—they’re not meeting to discuss.”
“You are much wealthier than these places,” said Katz. “It’s a cultural difference.”
Katz said Seattle has to get out of its “consensus-driven” comfort zone—which, to be fair, is somewhat codified for certain projects and policies through the Washington State Environmental Policy Act, which leaves governmental action open to environmental appeals. It’s the process that brought both the current MHA appeal and a delay to the city’s plan to allow more accessory dwelling units.
Still, said Katz, the Northwest is in a “quiet crisis”: “The question is whether cities can remain complacent about it.”

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com


Snoqualmie Pass Real Estate, Mortgage, and the Economy – Downtown Seattle Poised For Even Bigger Residential and Hotel Boom

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com



Downtown Seattle poised for even bigger residential and hotel boom

Downtown Seattle is experiencing explosive growth—but not all Seattleites have access to opportunity

2017 was a big year for construction, with more than 5,700 homes, 3.6 million square feet of office space, and more than 600 hotel rooms coming online in the city center alone. But the future outlook is even bigger.
Downtown neighborhood association Downtown Seattle Association (DSA) released its annual State of Downtown report this morning, which explored the trajectory of the city center’s growth over the past eight years—and forecasted even more explosive growth in the future.
DSA’s work covers not just the downtown retail core and waterfront, but some surrounding core neighborhoods: Uptown, South Lake Union, Denny Triangle, First Hill, parts of Capitol Hill, the International District, Pioneer Square, and Belltown.
Out of those neighborhoods, South Lake Union had the biggest year for new homes and homes-in-progress, with 5,473 units finished or in active construction in 2017. Next came First Hill, with 2,503 new homes, and Denny Triangle, with 2,445.
While 5,703 units were completed in the area in 2017, the real boom year to watch is 2020. If all permitted and planned projects move forward, those neighborhoods combined could have nearly 17,500 homes built in that year alone.
The outlook for hotel rooms is similar. 637 rooms were added in 2017, and nearly 2,200 are planned for 2018—largely because of the Hyatt Regency under construction, which will be the largest hotel in Seattle when it’s done. In 2020, though, that number skyrockets to 2,923.
DSA president Jon Scholes did acknowledge while presenting the report on Wednesday morning that despite the boom, many are being left behind.
“The welcome mat to our city is narrow,” said Scholes, limited to those “who can afford the high cost of housing.”
In previous Seattle eras, said Scholes, “rich, poor, and in-between” contributed to downtown. And while the expansion of the region’s light rail “will allow more people to have access to the jobs and opportunity” downtown, said Scholes, Seattle needs even more homes to address affordability problems—or, as he puts it, “lift the limits on housing supply.”
Scholes voiced support for the city’s Mandatory Housing Affordability (MHA) plan, which trades extra building height for either physical affordable housing units or payment into an affordable housing fund. The plan is currently undergoing a public comment period while under a hearing examiner appeal.
At a media availability after the presentation, Scholes acknowledged that MHA isn’t the only way to work toward housing affordability. “But if we’re going to spend $7 billion on one of the most expensive rail systems in the country... we will not realize the return on that investment if we’re not building housing around it. We need to do that, and we need to get ahead of it and not chase it.”
Scholes argued the Link light rail corridor, which currently stretches from the University of Washington down through the Rainier Valley to just south of Seatac Airport, should have been rezoned before transit went in. “Now we’re trying to catch up.”
Brookings Institution centennial scholar and former Housing and Urban Development chief of staff Bruce Katz, appearing at the event with Scholes, agreed. “You did lose a bit of time here,” he said.
Much of the corridor that the light rail line serves runs through an area acknowledged by the city as having a high risk of displacement. Still, said Katz, “going up on height is critical, you have to go up on height... think you can do this in a very smart and sensitive way.” He said other regions have used “policy techniques” successfully to address displacement, but didn’t provide specifics.
Aside from MHA, Scholes said he’d like to see “a property tax rebate to existing landlords of existing properties if in exchange they keep some of those units restricted to a certain income” to “take some of the older supply that’s not at that market rent” and “bridge some of that gap.”
He said this would be a “great opportunity to set aside thousands of [affordable] units,” but would need action in the state legislature to come to fruition.
Katz said that said that to address many of Seattle’s problems, we “need private capital to come in and fill what are growing gaps, because the federal government and states are backing away.” He other cities are leveraging private capital toward large-scale neighborhood regeneration, giving Cincinnati as a notable example.
“You have the wealth. You have enough crises to get you motivated,” explained Katz. “But the cultural of collaboration that is backed by capital doesn’t quite exist here in the same way it exists in other parts of the United States. I do think it would be really important just to choose one thing and say, okay, we’re going to bring together leaders and institutions from multiple sectors, put real money on the table, then play it out for two years.”
When asked about Seattle’s plethora of public-private task forces, Katz said that “most of those task forces have no force... in the end a lot of people come together and they put together policy ideas and then those ideas never get executed or implemented. [Other groups are] meeting to decide—they’re not meeting to discuss.”
“You are much wealthier than these places,” said Katz. “It’s a cultural difference.”
Katz said Seattle has to get out of its “consensus-driven” comfort zone—which, to be fair, is somewhat codified for certain projects and policies through the Washington State Environmental Policy Act, which leaves governmental action open to environmental appeals. It’s the process that brought both the current MHA appeal and a delay to the city’s plan to allow more accessory dwelling units.
Still, said Katz, the Northwest is in a “quiet crisis”: “The question is whether cities can remain complacent about it.”

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com


Snoqualmie Pass Real Estate, Mortgage, and the Economy – Downtown Seattle Poised For Even Bigger Residential and Hotel Boom

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com



Downtown Seattle poised for even bigger residential and hotel boom

Downtown Seattle is experiencing explosive growth—but not all Seattleites have access to opportunity

2017 was a big year for construction, with more than 5,700 homes, 3.6 million square feet of office space, and more than 600 hotel rooms coming online in the city center alone. But the future outlook is even bigger.
Downtown neighborhood association Downtown Seattle Association (DSA) released its annual State of Downtown report this morning, which explored the trajectory of the city center’s growth over the past eight years—and forecasted even more explosive growth in the future.
DSA’s work covers not just the downtown retail core and waterfront, but some surrounding core neighborhoods: Uptown, South Lake Union, Denny Triangle, First Hill, parts of Capitol Hill, the International District, Pioneer Square, and Belltown.
Out of those neighborhoods, South Lake Union had the biggest year for new homes and homes-in-progress, with 5,473 units finished or in active construction in 2017. Next came First Hill, with 2,503 new homes, and Denny Triangle, with 2,445.
While 5,703 units were completed in the area in 2017, the real boom year to watch is 2020. If all permitted and planned projects move forward, those neighborhoods combined could have nearly 17,500 homes built in that year alone.
The outlook for hotel rooms is similar. 637 rooms were added in 2017, and nearly 2,200 are planned for 2018—largely because of the Hyatt Regency under construction, which will be the largest hotel in Seattle when it’s done. In 2020, though, that number skyrockets to 2,923.
DSA president Jon Scholes did acknowledge while presenting the report on Wednesday morning that despite the boom, many are being left behind.
“The welcome mat to our city is narrow,” said Scholes, limited to those “who can afford the high cost of housing.”
In previous Seattle eras, said Scholes, “rich, poor, and in-between” contributed to downtown. And while the expansion of the region’s light rail “will allow more people to have access to the jobs and opportunity” downtown, said Scholes, Seattle needs even more homes to address affordability problems—or, as he puts it, “lift the limits on housing supply.”
Scholes voiced support for the city’s Mandatory Housing Affordability (MHA) plan, which trades extra building height for either physical affordable housing units or payment into an affordable housing fund. The plan is currently undergoing a public comment period while under a hearing examiner appeal.
At a media availability after the presentation, Scholes acknowledged that MHA isn’t the only way to work toward housing affordability. “But if we’re going to spend $7 billion on one of the most expensive rail systems in the country... we will not realize the return on that investment if we’re not building housing around it. We need to do that, and we need to get ahead of it and not chase it.”
Scholes argued the Link light rail corridor, which currently stretches from the University of Washington down through the Rainier Valley to just south of Seatac Airport, should have been rezoned before transit went in. “Now we’re trying to catch up.”
Brookings Institution centennial scholar and former Housing and Urban Development chief of staff Bruce Katz, appearing at the event with Scholes, agreed. “You did lose a bit of time here,” he said.
Much of the corridor that the light rail line serves runs through an area acknowledged by the city as having a high risk of displacement. Still, said Katz, “going up on height is critical, you have to go up on height... think you can do this in a very smart and sensitive way.” He said other regions have used “policy techniques” successfully to address displacement, but didn’t provide specifics.
Aside from MHA, Scholes said he’d like to see “a property tax rebate to existing landlords of existing properties if in exchange they keep some of those units restricted to a certain income” to “take some of the older supply that’s not at that market rent” and “bridge some of that gap.”
He said this would be a “great opportunity to set aside thousands of [affordable] units,” but would need action in the state legislature to come to fruition.
Katz said that said that to address many of Seattle’s problems, we “need private capital to come in and fill what are growing gaps, because the federal government and states are backing away.” He other cities are leveraging private capital toward large-scale neighborhood regeneration, giving Cincinnati as a notable example.
“You have the wealth. You have enough crises to get you motivated,” explained Katz. “But the cultural of collaboration that is backed by capital doesn’t quite exist here in the same way it exists in other parts of the United States. I do think it would be really important just to choose one thing and say, okay, we’re going to bring together leaders and institutions from multiple sectors, put real money on the table, then play it out for two years.”
When asked about Seattle’s plethora of public-private task forces, Katz said that “most of those task forces have no force... in the end a lot of people come together and they put together policy ideas and then those ideas never get executed or implemented. [Other groups are] meeting to decide—they’re not meeting to discuss.”
“You are much wealthier than these places,” said Katz. “It’s a cultural difference.”
Katz said Seattle has to get out of its “consensus-driven” comfort zone—which, to be fair, is somewhat codified for certain projects and policies through the Washington State Environmental Policy Act, which leaves governmental action open to environmental appeals. It’s the process that brought both the current MHA appeal and a delay to the city’s plan to allow more accessory dwelling units.
Still, said Katz, the Northwest is in a “quiet crisis”: “The question is whether cities can remain complacent about it.”

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com


Snoqualmie Pass Real Estate, Mortgage, and the Economy -1 in 10 Seattle Residents Live Downtown

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com


Study: 1 in 10 Seattle residents live downtown and nearly 75% of commuters don’t drive alone to work

Seattle is speeding toward some of its density and transportation goals, according to a new study from an organization that works to improve the city’s downtown core.
The Downtown Seattle Association studied commuting habits, real estate development, and other metrics for its State of Downtown 2018 report. The group found that more than 70,000 people — or one in 10 Seattleites — live in the downtown area, which includes the downtown core, Capitol Hill, First Hill, the International District, SODO, and Uptown.

The study area as defined by the Downtown Seattle Association. (DSA Graphic)

Downtown is also seeing record public transit ridership, according to a related report by Commute Seattle, a partner organization of DSA. The report indicates that just over 25 percent of commuters get downtown by single-occupancy vehicle, a 10-point drop since 2010. The number of single occupancy vehicles on the road is 6 percent less than the 71,000 car commuters in 2010. That decline happened as some 60,000 jobs were added downtown. Nearly 75 percent of commuters take public transit, walk, or use a new mobility service, like rideshare.
This post has been updated to clarify the change in single occupancy vehicles since 2010.

Seattle Department of Transportation

That massive job growth is driven by Amazon — which is headquartered in the downtown area, in South Lake Union and the Denny Triangle — as well as other tech and healthcare companies ranging from startup to titan.
To accommodate those workers, downtown Seattle added 3.6 million square feet of office space in 2017, amounting to a total of 11.2 million. There are currently just over 15,000 residential units downtown with an additional 26,000 scheduled for completion in the next three years.

Seattle cranes
Seattle has more construction cranes in operation than any city in the country. (GeekWire Photo / Kurt Schlosser)

That growth has been a challenge and point of contention in Seattle, as anyone who has tried to navigate Mercer St. at 5 p.m. could tell you. In addition to increased traffic, rising housing costs are displacing some longterm residents. The downtown-adjacent Central District’s African American population was 74 percent in 1970. In 2019, it is expected to be 14 percent.
Despite these challenges, DSA is optimistic about Seattle’s potential to navigate growth in its urban core.
“Since 2010, downtown has added more than 60,000 new jobs and we have one of the fastest growing residential populations of any downtown in the country,” said DSA CEO Jon Scholes in a statement. “Looking forward, we must expand housing options across our city and maximize our major investment in new light rail to sustain our vibrancy and economic progress. We have an incredible opportunity in Seattle to lead the way nationally by increasing prosperity and opportunity at the same time.”

BY  

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Snoqualmie Pass Real Estate, Mortgage, and the Economy -1 in 10 Seattle Residents Live Downtown

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com


Study: 1 in 10 Seattle residents live downtown and nearly 75% of commuters don’t drive alone to work

Seattle is speeding toward some of its density and transportation goals, according to a new study from an organization that works to improve the city’s downtown core.
The Downtown Seattle Association studied commuting habits, real estate development, and other metrics for its State of Downtown 2018 report. The group found that more than 70,000 people — or one in 10 Seattleites — live in the downtown area, which includes the downtown core, Capitol Hill, First Hill, the International District, SODO, and Uptown.

The study area as defined by the Downtown Seattle Association. (DSA Graphic)

Downtown is also seeing record public transit ridership, according to a related report by Commute Seattle, a partner organization of DSA. The report indicates that just over 25 percent of commuters get downtown by single-occupancy vehicle, a 10-point drop since 2010. The number of single occupancy vehicles on the road is 6 percent less than the 71,000 car commuters in 2010. That decline happened as some 60,000 jobs were added downtown. Nearly 75 percent of commuters take public transit, walk, or use a new mobility service, like rideshare.
This post has been updated to clarify the change in single occupancy vehicles since 2010.

Seattle Department of Transportation

That massive job growth is driven by Amazon — which is headquartered in the downtown area, in South Lake Union and the Denny Triangle — as well as other tech and healthcare companies ranging from startup to titan.
To accommodate those workers, downtown Seattle added 3.6 million square feet of office space in 2017, amounting to a total of 11.2 million. There are currently just over 15,000 residential units downtown with an additional 26,000 scheduled for completion in the next three years.

Seattle cranes
Seattle has more construction cranes in operation than any city in the country. (GeekWire Photo / Kurt Schlosser)

That growth has been a challenge and point of contention in Seattle, as anyone who has tried to navigate Mercer St. at 5 p.m. could tell you. In addition to increased traffic, rising housing costs are displacing some longterm residents. The downtown-adjacent Central District’s African American population was 74 percent in 1970. In 2019, it is expected to be 14 percent.
Despite these challenges, DSA is optimistic about Seattle’s potential to navigate growth in its urban core.
“Since 2010, downtown has added more than 60,000 new jobs and we have one of the fastest growing residential populations of any downtown in the country,” said DSA CEO Jon Scholes in a statement. “Looking forward, we must expand housing options across our city and maximize our major investment in new light rail to sustain our vibrancy and economic progress. We have an incredible opportunity in Seattle to lead the way nationally by increasing prosperity and opportunity at the same time.”

BY  

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Snoqualmie Pass Real Estate, Mortgage, and the Economy -1 in 10 Seattle Residents Live Downtown

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com


Study: 1 in 10 Seattle residents live downtown and nearly 75% of commuters don’t drive alone to work

Seattle is speeding toward some of its density and transportation goals, according to a new study from an organization that works to improve the city’s downtown core.
The Downtown Seattle Association studied commuting habits, real estate development, and other metrics for its State of Downtown 2018 report. The group found that more than 70,000 people — or one in 10 Seattleites — live in the downtown area, which includes the downtown core, Capitol Hill, First Hill, the International District, SODO, and Uptown.

The study area as defined by the Downtown Seattle Association. (DSA Graphic)

Downtown is also seeing record public transit ridership, according to a related report by Commute Seattle, a partner organization of DSA. The report indicates that just over 25 percent of commuters get downtown by single-occupancy vehicle, a 10-point drop since 2010. The number of single occupancy vehicles on the road is 6 percent less than the 71,000 car commuters in 2010. That decline happened as some 60,000 jobs were added downtown. Nearly 75 percent of commuters take public transit, walk, or use a new mobility service, like rideshare.
This post has been updated to clarify the change in single occupancy vehicles since 2010.

Seattle Department of Transportation

That massive job growth is driven by Amazon — which is headquartered in the downtown area, in South Lake Union and the Denny Triangle — as well as other tech and healthcare companies ranging from startup to titan.
To accommodate those workers, downtown Seattle added 3.6 million square feet of office space in 2017, amounting to a total of 11.2 million. There are currently just over 15,000 residential units downtown with an additional 26,000 scheduled for completion in the next three years.

Seattle cranes
Seattle has more construction cranes in operation than any city in the country. (GeekWire Photo / Kurt Schlosser)

That growth has been a challenge and point of contention in Seattle, as anyone who has tried to navigate Mercer St. at 5 p.m. could tell you. In addition to increased traffic, rising housing costs are displacing some longterm residents. The downtown-adjacent Central District’s African American population was 74 percent in 1970. In 2019, it is expected to be 14 percent.
Despite these challenges, DSA is optimistic about Seattle’s potential to navigate growth in its urban core.
“Since 2010, downtown has added more than 60,000 new jobs and we have one of the fastest growing residential populations of any downtown in the country,” said DSA CEO Jon Scholes in a statement. “Looking forward, we must expand housing options across our city and maximize our major investment in new light rail to sustain our vibrancy and economic progress. We have an incredible opportunity in Seattle to lead the way nationally by increasing prosperity and opportunity at the same time.”

BY  

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Snoqualmie Pass Real Estate, Mortgage, and the Economy -Mortgage Rates Reach Highest Levels In Four Years



Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Mortgage rates are now at their highest level in four years and poised to move even higher. The timing couldn't be worse, as the usually busy spring housing market kicked into gear early this year amid higher home prices and strong competition for a record low supply of homes for sale. 

Add it all up, and affordability is starting to hurt.
The average rate on the popular 30-year fixed is now right around 4.50 percent, still low when looking historically, but buyers over the past six years have gotten more used to rates in the 3 percent range. Mortgage rates have not been at 5 percent since 2011.
A 5 percent rate would cause more than a quarter of today's homebuyers to slow their plans, according to a Redfin survey of 4,000 consumers at the end of last year. Just 6 percent said they would drop their plans to buy altogether. About one-fifth of consumers said 5 percent rates would cause them to move with more urgency to purchase a home, fearing rates would rise even further. Another fifth said they would consider more affordable areas or just buy a smaller home.
Despite rate concerns, the bigger issue for buyers is changes to tax laws that had lowered the cost of homeownership. Specifically, the deduction on property taxes is now limited to $10,000. While that does not affect homeowners in the majority of the country, it does hit those in high-cost states like New York, New Jersey and Illinois, and those in higher-priced housing markets like California.
Some have claimed that higher rates and the new tax law will put downward pressure on home prices, alleviating some of the current sticker shock, but other factors are fighting that assertion.
"Tight credit, lack of inventory and high demand are the major factors that tell us there's no housing bubble, despite rapid price increases," said Redfin's chief economist, Nela Richardson. "There are still many more buyers than the current housing supply can support, with no major relief in sight."
Unlike during the last housing bubble in the mid-2000s, mortgage lenders today are much more strict with regard to the borrower's ability to repay the loan. They are required by new regulations in the industry to be that way. Higher mortgage rates may mean some borrowers on the margins will not qualify for the size of the loan they need or want.
Mortgage rates have been quite volatile in recent weeks especially given the wide swings in the stock market. Rates loosely follow the yield of the 10-year Treasury, which moved higher again Monday. Things could change Wednesday, with the release of the monthly read on the consumer price index.
"The most informative and disconcerting reaction would be a weak CPI reading followed by a knee-jerk rally that then gives way to more selling. That would be the worst case scenario in terms of implications for the bigger picture," wrote Matthew Graham, chief operating officer of Mortgage News Daily. "Conversely, an eventual rally that follows stable or stronger CPI would suggest bonds are increasingly ready to hold their ground near current levels."
Diana Olick

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Snoqualmie Pass Real Estate, Mortgage, and the Economy -Mortgage Rates Reach Highest Levels In Four Years



Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Mortgage rates are now at their highest level in four years and poised to move even higher. The timing couldn't be worse, as the usually busy spring housing market kicked into gear early this year amid higher home prices and strong competition for a record low supply of homes for sale. 

Add it all up, and affordability is starting to hurt.
The average rate on the popular 30-year fixed is now right around 4.50 percent, still low when looking historically, but buyers over the past six years have gotten more used to rates in the 3 percent range. Mortgage rates have not been at 5 percent since 2011.
A 5 percent rate would cause more than a quarter of today's homebuyers to slow their plans, according to a Redfin survey of 4,000 consumers at the end of last year. Just 6 percent said they would drop their plans to buy altogether. About one-fifth of consumers said 5 percent rates would cause them to move with more urgency to purchase a home, fearing rates would rise even further. Another fifth said they would consider more affordable areas or just buy a smaller home.
Despite rate concerns, the bigger issue for buyers is changes to tax laws that had lowered the cost of homeownership. Specifically, the deduction on property taxes is now limited to $10,000. While that does not affect homeowners in the majority of the country, it does hit those in high-cost states like New York, New Jersey and Illinois, and those in higher-priced housing markets like California.
Some have claimed that higher rates and the new tax law will put downward pressure on home prices, alleviating some of the current sticker shock, but other factors are fighting that assertion.
"Tight credit, lack of inventory and high demand are the major factors that tell us there's no housing bubble, despite rapid price increases," said Redfin's chief economist, Nela Richardson. "There are still many more buyers than the current housing supply can support, with no major relief in sight."
Unlike during the last housing bubble in the mid-2000s, mortgage lenders today are much more strict with regard to the borrower's ability to repay the loan. They are required by new regulations in the industry to be that way. Higher mortgage rates may mean some borrowers on the margins will not qualify for the size of the loan they need or want.
Mortgage rates have been quite volatile in recent weeks especially given the wide swings in the stock market. Rates loosely follow the yield of the 10-year Treasury, which moved higher again Monday. Things could change Wednesday, with the release of the monthly read on the consumer price index.
"The most informative and disconcerting reaction would be a weak CPI reading followed by a knee-jerk rally that then gives way to more selling. That would be the worst case scenario in terms of implications for the bigger picture," wrote Matthew Graham, chief operating officer of Mortgage News Daily. "Conversely, an eventual rally that follows stable or stronger CPI would suggest bonds are increasingly ready to hold their ground near current levels."
Diana Olick

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Snoqualmie Pass Real Estate, Mortgage, and the Economy -Mortgage Rates Reach Highest Levels In Four Years



Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Mortgage rates are now at their highest level in four years and poised to move even higher. The timing couldn't be worse, as the usually busy spring housing market kicked into gear early this year amid higher home prices and strong competition for a record low supply of homes for sale. 

Add it all up, and affordability is starting to hurt.
The average rate on the popular 30-year fixed is now right around 4.50 percent, still low when looking historically, but buyers over the past six years have gotten more used to rates in the 3 percent range. Mortgage rates have not been at 5 percent since 2011.
A 5 percent rate would cause more than a quarter of today's homebuyers to slow their plans, according to a Redfin survey of 4,000 consumers at the end of last year. Just 6 percent said they would drop their plans to buy altogether. About one-fifth of consumers said 5 percent rates would cause them to move with more urgency to purchase a home, fearing rates would rise even further. Another fifth said they would consider more affordable areas or just buy a smaller home.
Despite rate concerns, the bigger issue for buyers is changes to tax laws that had lowered the cost of homeownership. Specifically, the deduction on property taxes is now limited to $10,000. While that does not affect homeowners in the majority of the country, it does hit those in high-cost states like New York, New Jersey and Illinois, and those in higher-priced housing markets like California.
Some have claimed that higher rates and the new tax law will put downward pressure on home prices, alleviating some of the current sticker shock, but other factors are fighting that assertion.
"Tight credit, lack of inventory and high demand are the major factors that tell us there's no housing bubble, despite rapid price increases," said Redfin's chief economist, Nela Richardson. "There are still many more buyers than the current housing supply can support, with no major relief in sight."
Unlike during the last housing bubble in the mid-2000s, mortgage lenders today are much more strict with regard to the borrower's ability to repay the loan. They are required by new regulations in the industry to be that way. Higher mortgage rates may mean some borrowers on the margins will not qualify for the size of the loan they need or want.
Mortgage rates have been quite volatile in recent weeks especially given the wide swings in the stock market. Rates loosely follow the yield of the 10-year Treasury, which moved higher again Monday. Things could change Wednesday, with the release of the monthly read on the consumer price index.
"The most informative and disconcerting reaction would be a weak CPI reading followed by a knee-jerk rally that then gives way to more selling. That would be the worst case scenario in terms of implications for the bigger picture," wrote Matthew Graham, chief operating officer of Mortgage News Daily. "Conversely, an eventual rally that follows stable or stronger CPI would suggest bonds are increasingly ready to hold their ground near current levels."
Diana Olick

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com

Snoqualmie Pass Real Estate, Mortgage, and the Economy – Higher Rates Aren’t Deterring Home Builders, At Least For Now.

Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com


Homebuilders shrug off higher mortgage rates, stay optimistic on economic boost from tax cuts


  • The National Association of Home Builders/Wells Fargo Housing Market Index checked in at 72, close to a cyclical high.
  • Higher rates aren't deterring home builders, at least for now.
Homebuilder sentiment unchanged in February  
Tax cuts are still making homebuilders feel better, even as mortgage rates rise to the highest level in more than four years.
Builder confidence was unchanged in February from the prior month, remaining at 72 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). Anything above 50 is considered positive sentiment.
The index is up from 65 in February 2017 and hit a cyclical high of 74 last December, just as the Republican tax cut plan was being passed.
"Builders are excited about the pro-business political climate that will strengthen the housing market and support overall economic growth," said NAHB chairman Randy Noel, a custom home builder from LaPlace, LA.
"However, they need to manage supply-side construction hurdles, such as shortages of labor and lots and building material price increases," he added.
Future sales expectations appear to be driving builder confidence. That component of the index rose to a post-recession high of 80, while the index measuring buyer traffic held steady at 54. Current sales conditions, however, fell one point to 78.
"With ongoing job creation, increasing owner-occupied household formation, and a tight supply of existing home inventory, the single-family housing sector should continue to strengthen at a gradual but consistent pace," said NAHB chief cconomist Robert Dietz.
One headwind for builders, however, is rising mortgage rates. Mortgage applications to purchase a newly built home jumped 18 percent in January year-over-year, according to the Mortgage Bankers Association, but rates moved even higher in the first two weeks of February.
The average rate on the 30-year fixed is now up more than 50 basis points since the beginning of the year. Not only do higher rates translate to less purchasing power for buyers, they also make it harder for some buyers on the margins of good credit to qualify for a home loan.
Builders are benefiting from the severe shortage of existing homes for sale, but new construction comes at a premium. Buyers may have rushed in in January, fearing rates would rise even more, which they did. If rates continue to move higher, some buyers will be priced out.
Looking at the three-month moving averages for regional HMI scores, the Midwest rose two points to 72, the South increased one point to 74, the West remained unchanged at 81, and Northeast fell two points to 56.


Snoqualmie Pass Real Estate, Snoqualmie Pass Properties, Snoqualmie Pass Homes, Snoqualmie Pass Lots, North Bend Real Estate, Snoqualmie Real Estate, Suncadia Real Estate, http://www.snoqualmiepassliving.com