Design • November 3, 2021

What is a Cottage Home?

by David Chan

A Cottage style house with a low-pitched green roof and a large porch.

Cottages are not only one of the most recognizable and beloved home design styles in history, but they’ve also managed to become synonymous with all things cozy, comfortable, and peaceful in home life. When we think of cottages, we think of grassy knolls in the countryside, moss-covered rooftops, and a steady billow of smoke pouring out the chimney of a small dwelling. Known for their simple design and comfortable accommodations, they remain popular today.

History of the Cottage Home

Commonly found in rural or semi-rural areas, what we know today as ‘cottages’ housed English farmers—or ‘cotters’—as far back as the Middle Ages. Simple in design, their small, compact footprint made for intimate living conditions for the families that inhabited them. They became increasingly more common in the countryside, but as time went on and the style made its way to the United States, their popularity began to spread. They became so popular, in fact, that in the early 1900s, Sears and Roebuck sold ready-made kits to homebuyers in their mail order catalog. Nowadays, cottages are found around the world, both in city settings and the countryside.

A yellow Cottage style house with a white picket fence in the front yard.

Image Source: Shutterstock – Image Credit: Mark Winfrey

What is a Cottage Home?

Cottages are known for their distinct architectural style. They are small homes, intended to house a single family. Cottages are typically asymmetrical, one to one-and-a-half story dwellings with low-pitched gable roofs and small covered porches. The chimney is often a central feature of the interior living space, a feature that greatly contributes to that cozy charm they are known for. The cottage represents an important evolution in home design, as they are often considered the precursor to the Craftsman home.

Head to our Architectural Styles page to learn more about the history and characteristics of various home designs, from A-Frame to Victorian.

Market News • November 3, 2021

Q3 2021 Park City, Utah Real Estate Market Update

by Afshan Adil

Q3 2021 Park City, Utah Real Estate Market Trends

The following analysis of select neighborhoods in the Park City real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

Regional Economic Overview

The summer months saw continued growth in Utah’s labor market, which had already recovered all of the jobs lost to COVID-19 earlier this spring. The latest data available (August 2021) showed non-agricultural employment 48,100 jobs higher than the pre-pandemic peak. With the healthy growth in jobs, the unemployment rate currently stands at 2.6%, a level that has not been seen since before the pandemic hit. As impressive as the current jobless rate is, it is also worth noting that unemployment continued to fall even as the labor force expanded to a point never seen in the state before. Utah’s economy is currently in great shape, and short of any unforeseeable events, I see no reason why anything would derail the impressive growth the area has experienced.

park city, utah Home Sales

❱ In the third quarter of 2021, 73 homes sold, which is 47.9% lower than in the same quarter a year ago, and 3.9% lower than in the second quarter of this year.

❱ Year-over-year, sales rose in Summit Park and Trailside Area/Silver Springs but were lower in the balance of the neighborhoods contained in this report. Compared to the second quarter of 2021, sales were higher in six neighborhoods, static in one, and fell in the remaining eight.

❱ Lower home sales are primarily a function of the number of homes for sale. With 48% fewer homes on the market than a year ago and 3.9% fewer homes than in the second quarter of this year, it’s not surprising that sales slowed.

❱ Pending home sales were down 58.7% compared to last year and were 2.6% lower than in the second quarter of the year. This, combined with significant supply constraints, suggests that home sales in final quarter of the year may not be strong.

A bar graph showing the annual change in home sales for various areas of Park City, Utah during the third quarter of 2021.

park city, utah Home Prices

❱ The average home price in the Park City neighborhoods contained in this report rose 29.7% year over year to $2.26 million but was 3.6% lower than in the previous quarter.

❱ The Wanship, Hoytsville, Coalville, & Rockport market is the only one where prices were below $1 million in third quarter. The most expensive home sales were again in the Canyons/The Colony market, where the average price was $11.83 million.

❱ Prices rose in all neighborhoods other than Park Meadows, though the drop in prices there was marginal.

❱ Compared to the second quarter of the year, prices rose in all but four neighborhoods: Old Town, Park Meadows, Midway, and Wanship, Hoytsville, Coalville and Rockport.

A bar graph showing the annual change in home sale prices for various areas of Park City, Utah during the third quarter of 2021.

Days on Market

❱ The average time it took to sell a home in the Park City area fell 41 days compared to the same period a year ago.

❱ While days on market fell overall year-over-year, when you compare the third quarter to the second quarter, the amount of time it took to sell a home rose four days everywhere except Canyons/The Colony and Old Town.

❱ In the third quarter, it took an average of 41 days to sell a home, with homes selling fastest in the Canyons/The Colony neighborhood, and slowest in Upper Deer Valley Resort and Empire Pass.

❱ In small, expensive markets, such as those in Park City, it’s not surprising to see the speed at which homes sell swing wildly from one quarter to the next. There is clearly still buyer demand, but given high average prices, it’s taking a little longer for homes to sell.

A bar graph showing the average days on market for homes in various areas of Park City, Utah during the third quarter of 2021.

Conclusions

A speedometer graph indicating a seller's market in the Park City, Utah area during the third quarter of 2021.

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Utah’s economy stands on very solid ground, which, when placed alongside historically low mortgage rates, leads to increased home buying activity. While the number of days it takes to sell a home has risen modestly compared to second quarter, home sellers still have the upper hand. As such, I have moved the needle a little more in their favor.

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

Market News • November 3, 2021

Q3 2021 Utah Real Estate Market Update

by Afshan Adil

The following analysis of select counties of the Utah real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

Regional Economic Overview

utah Home Sales

❱ In the third quarter of 2021, 10,356 homes were sold, representing an 18.3% drop from a year ago. This is not really a concern given that during third quarter last year the area was in the midst of a COVID-induced housing boom, which is skewing the numbers. What is more informative was that sales rose 6.9% from the previous quarter.

❱ Year-over-year, sales dropped across the board. However, compared to the prior quarter they rose in all counties other than Salt Lake and Morgan—though the drop in both counties was only seven sales.

❱ The increase in sales compared to the previous quarter was aided by a significant increase in the number of listings in the counties contained in this report, which jumped more than 36% from the second quarter of this year.

❱ Pending sales, an indicator of future closings, were up in all markets other than Salt Lake. The 2.8% increase from the second quarter suggests that sales in the final quarter of the year may continue to show improvement.

A bar graph showing the annual change in home sales for various counties in Utah during the third quarter of 2021.

utah Home Prices

A map showing the real estate market percentage changes in various counties in Utah during the third quarter of 2021.

❱ With the economy performing extremely well, and mortgage rates holding close to their historic lows, it was not surprising to see sale prices continue to trend higher. Compared to a year ago, prices were up 23.8% to an average of $600,715. Prices also came in 3.8% higher than in the second quarter of this year.

❱ Although Summit County appears to be underperforming, it is worth noting that it is the most expensive county in this report, with an average price in the third quarter of $1.58 million. I am not particularly concerned at the decline since it is likely to be short-lived.

❱ All counties contained in the report except Summit saw prices increase by double-digits relative to a year ago. All counties but Summit also saw impressive gains compared to the previous quarter.

❱ In the second quarter Gardner Report, I suggested that the annual change in home prices was going to soften, which proved accurate. Although price growth remains well above the long-term average, I expect to see the pace of growth continue to slow as we close out the year.

A bar graph showing the annual change in home sale prices for various counties in Utah during the third quarter of 2021.

Days on Market

❱ The average number of days it took to sell a home in the counties covered by this report dropped 21 days compared to the third quarter of 2020.

❱ Homes again sold fastest in Davis County, which was one of only two counties with average sale time below two weeks. Relative to a year ago, the greatest drop in market time was in Summit County, where it took 41 fewer days to sell a home.

❱ During the quarter, it took an average of 22 days to sell a home in the region. Although this is lower than a year ago, it was up 3 days compared to the second quarter of this year.

❱ Rising inventory levels led to more choice in the market, which put slight upward pressure on market time. This is not a concern, and though it might please home buyers, we are still far from a balanced housing market.

A bar graph showing the average days on market for homes in various counties in Utah during the third quarter of 2021.

Conclusions

A speedometer graph indicating a seller's market in Utah during the third quarter of 2021.

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Utah’s economy stands on very solid ground. A stable economy and historically low mortgage rates are very stimulative to home buyers. Even though we have seen inventory levels grow and market time rise modestly—both of which favor home buyers—the data in aggregate is still heavily in favor of home sellers. As such, I have moved the needle a little more in their favor.

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

Market News • November 2, 2021

Q3 2021 Idaho Real Estate Market Update

by Afshan Adil

The following analysis of select counties of the Idaho real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

Regional Economic Overview

On top of having recovered all the jobs lost to COVID-19 by the end of 2020—a remarkable feat in itself—the Idaho economy continues to strengthen. Current employment levels are up by 15,400 jobs from the pre-pandemic peak. With the labor market continuing to expand, the unemployment rate was 2.9% in August (the most recent data available). Equally impressive was that the rate dropped even as the labor force grew—no easy task. New COVID-19 cases remain higher than I would like, but this does not appear to have impacted the state’s economy to any significant degree given the robust employment picture. As we move, hopefully, toward a time when the impacts of the pandemic wane further, I see nothing but an upward trajectory for the state’s economy.

idaho Home Sales

❱ In the third quarter, 7,354 existing homes sold, representing a drop of 19.9% from a year ago. However, given that the country was experiencing a massive housing rebound following the outbreak of COVID-19, any comparison with data from 12 months ago is not very informative. More useful is that sales rose 22.1% compared to the second quarter of 2021.

❱ As mentioned, comparing current data to a year ago does not provide an accurate picture, but comparing it with the second quarter data shows sales higher across the board. Sales were up by double digits in every county covered by this report.

❱ Year-over-year sales improved in Shoshone County in Northern Idaho. Sales also rose in Gem County in the southern part of the state.

❱ Pending sales rose 16.5% from the second quarter of 2021, suggesting that closed sales in the final quarter of the year are also likely to show improvement from current levels. This is also supported by the fact that listing inventory has risen almost 36%. I predict more listings will lead to more sales.

A bar graph showing the annual change in home sales in various counties in North and South Idaho during the third quarter of 2021.

idaho Home Prices

A map showing the real estate market percentage changes in various counties in Idaho during the third quarter of 2021.

❱ The average home price in the region rose 30.9% year over year to $603,066. Prices were also up 8% compared to the second quarter of this year.

❱ Compared to the previous quarter, home prices were up 8.9% in both the northern and southern counties in this report. Sizable gains were seen in Shoshone County (+33.7%) and Bonner County (+22.7%) in the north, and Valley County (+22.6%) and Blaine County (+17.2%) in the south.

❱ Prices rose by double-digits across the board. Sale prices were up 37% in the North Idaho counties covered by this report, and up 27.7% in the southern counties.

❱ With far more buyers than sellers, home prices continue their upward march. As prices are rising at a far faster pace than wages, this cannot continue indefinitely. I expect to see the pace of appreciation start to slow, but probably not until next year.

A bar graph showing the annual change in home sale prices for various counties in North and South Idaho during the third quarter of 2021.

Days on Market

❱ It took an average of 72 days to sell a home in Northern Idaho, and 31 days in the southern part of the state.

❱ The average number of days it took to sell a home in the region dropped 23 days compared to the third quarter of 2020 but rose 2 days compared to the second quarter of this year.

❱ In Northern Idaho, days on market dropped in all counties versus a year ago but rose in all counties compared to the second quarter of this year. Market time in Southern Idaho was also lower than a year ago, but it was up from the prior quarter in Valley, Gem, and Blaine counties.

❱ Homes sold the fastest in Ada and Canyon counties in the southern part of the state. Sales were again fastest in Shoshone County in the northern part of the state.

A bar graph showing the average days on market for homes in various counties in North and South Idaho during the third quarter of 2021.

Conclusions

A speedometer graph indicating a seller's market in Idaho during the third quarter of 2021.

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Idaho’s economy appears to be powering forward and job recovery is well ahead of almost every other state. The result is clearly an increasing number of buyers who feel comfortable buying a new home, even given the dramatic price growth of late.

That said, the only factors favoring buyers right now are that there are significantly more homes to choose from and mortgage rates remain very low by historic standards. All other factors support sellers more than buyers. As such, I am moving the needle a little more in their favor, even as affordability concerns continue to rise.

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

Market News • November 2, 2021

Q3 2021 Montana Real Estate Market Update

by Afshan Adil

The following analysis of select Montana real estate markets is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

Regional Economic Overview

Following the loss of 63,300 jobs in the wake of the pandemic, Montana continues to recover, and current employment levels are only 7,400 jobs shy of their pre-pandemic peak. Although this is good news, the momentum of this recovery began to slow in second quarter and this trend continued into the third quarter. The latest data on unemployment indicated that 3.5% of the labor force is currently out of work, but that level is well below the national rate of 4.8%. In the counties contained in this report, the lowest jobless rate was in Billings at 3%. Missoula followed at 3.1%, and Great Falls at 3.2%. I anticipate the state will see a return of all the jobs that were lost due to COVID-19, but the recent slowdown in the job recovery suggests that we will not reach pre-pandemic employment levels until the end of this year.

montana Home Sales

❱ In the third quarter, 1,722 homes sold in the markets contained in this report, representing a drop of 1.5% compared to the same period in 2020. Sales were 47.3% higher than in the second quarter of this year.

❱ Year-over-year, home sales still managed to rise in four of the nine counties contained in this report, with double-digit increases in Broadwater, Gallatin, and Park counties. Compared to the second quarter of this year, sales rose in every market other than Ravalli. Transactions more than doubled in Lewis and Clark, Broadwater, Jefferson, and Madison counties.

❱ I’m not concerned about the modest drop in sales compared to a year ago given that at that time the country was experiencing a massive housing rebound following the outbreak of COVID-19. On a more positive note, sales grew compared to the second quarter of 2021, even as inventory levels fell precipitously.

❱ Although we saw some very significant sales growth compared to the spring, pending sales managed to rise by only 3%, likely due to the lack of homes for sale. This suggests that closed sales in the final quarter of this year may be lower unless we see a large increase in listings.

A bar graph showing the annual change in home sales for various counties in Montana during the third quarter of 2021.

montana Home Prices

A map showing the real estate market percentage changes in various counties in Montana during the third quarter of 2021.

❱ Home prices averaged $666,391 in the third quarter, which is 22.5% higher than a year ago and 40.6% higher than the prior quarter.

❱ Year-over-year, all but Lewis and Clark County saw prices rise by double-digits. Broadwater County saw average prices rise more than 50%.

❱ Average sale prices rose in all counties contained in this report. It’s worth noting that following a significant drop in the second quarter, prices in Madison County rebounded and are now back above the $1 million mark.

❱ Mortgage rates moved modestly lower during the quarter, which could have contributed to rising prices, but not to the degree we saw. The bigger culprit is demand which far exceeds supply and continues to push up prices.

A bar graph showing the annual change in home sale prices for various counties in Montana during the third quarter of 2021.

Days on Market

❱ The average time it took to sell a home dropped 19 days compared to the third quarter of 2020.

❱ Homes sold fastest in Park County and slowest in Ravalli County. All markets other than Madison (+17 days) saw market time drop compared to the same period a year ago.

❱ During third quarter, it took an average of 67 days to sell a home in the region.

❱ Relative to the second quarter of this year, market time dropped in Ravalli, Gallatin, Park, and Madison counties, but rose in the rest of the areas covered in this report.

A bar graph showing the average days on market for homes in various counties in Montana during the third quarter of 2021.

Conclusions

A speedometer graph indicating a seller's market in Montana during the third quarter of 2021.

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

The economy continues to recover, even though the pace of the return of jobs is slower than I would like to see. The unemployment rate remains very low compared to most other states, which suggests there are job openings out there; the biggest issue for businesses is finding qualified applicants.

Third-quarter homes sales are impressive—especially considering the lack of inventory—and with buyers clearly outnumbering sellers, the region has experienced very significant price growth. With all these factors in mind, I am moving the needle a little more in favor of sellers.

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

Buying • November 1, 2021

10 Costs Associated with Buying a Home

by David Chan

A young man sits at his desk and calculates the cost of buying a home.

Some expenses that come with buying a home are easier to account for than others. Knowing the costs associated with buying a home will not only help you budget accordingly but will also pinpoint which homes are truly affordable for you. In no particular order, here are ten costs you can expect to encounter when buying a home.

To get an idea of what you can afford, use our free Home Monthly Payment Calculator by clicking the button below. With current rates based on national averages and customizable mortgage terms, you can experiment with different values to get an estimate of your monthly payment for any listing price. By using the Home Monthly Payment Calculator, you can make a well-informed estimation of whether it’s the right time to buy.

10 Costs Associated with Buying a Home

1. Down Payment

The down payment is a lump sum paid by the buyer upfront. The exact amount required varies by lender and loan type, but in general, a substantial down payment will help decrease your monthly payments. Making a traditional twenty percent down payment means less risk for your lender, opening the door for lower interest rates and avoiding the need for private mortgage insurance (PMI). But if you can’t come up with that much, it’s not a dead end. PMI and its various alternatives can help close the gap and provide a path to homeownership.

2. Homeowners Insurance

Once you’ve purchased a home, there’s no time to delay in protecting it. A standard homeowners insurance policy typically covers your home, your belongings, injury or property damage to others, and any living expenses in the event of an insured disaster that renders your home unlivable. Homeowners insurance policies provide coverage for the owner(s) living on the property. If you plan on renting out your home or dwellings on your property, you’ll need to purchase separate landlord insurance to cover your tenants.

3. Mortgage Payment

There’s a give and take with mortgage payments—the more you pay down your home, the more equity you build. Unless you’re making an all-cash offer, you can expect to budget for mortgage payments. Use the general rule that your house payments should be roughly 25% of your take-home pay. Use an online mortgage calculator to get an idea of what you can afford.

4. Closing Costs

Before your home purchase is a done deal, you can expect to pay closing costs, which usually total somewhere between 2-5% of the total mortgage value. The terms of the purchase agreement will dictate how you and the seller will split the closing costs. They include but are not limited to underwriting fees, credit check fees, title insurance and title search, escrow fees, and more. These expenses can add up, so be sure you’re prepared when it comes time for closing day.

5. HOA Fees

For those who are buying in developments governed by a homeowner’s association or are purchasing a townhouse or condo, you’ll likely have to pay HOA fees on top of your monthly mortgage payment. HOA fees, usually paid monthly, go towards maintaining the shared spaces, property, and amenities within the community. Before moving forward with your purchase, determine if the property is under the governance of a homeowner’s association and the cost of the fees.

6. Property Taxes

Your annual property tax is calculated by multiplying the assessed value of your home by the tax rate. This figure is broken down into monthly installments and added on top of your mortgage payment. Because property taxes are based on the assessed value of your home, they are subject to change. If the assessed value of your home increases over time, so will your property taxes.

7. Repairs and Remodeling

Unless you’re buying new construction, your new home will likely need repairs. Even after having completed a thorough home inspection, underestimating repairs expenses can be a costly mistake. Certain repairs may require the help of a professional, and while hiring them will ensure your home is in good hands, their services come with a price. If you’re buying with the intention of remodeling, remember to leave room for the other costs on this list before breaking ground on any projects.

8. Appraisal and Inspection Fees

Not only will a home inspection allow you to negotiate repairs and concessions with the seller, but it will also help you budget for the home repairs you’ll need to make in the future. An appraisal, carried out by a licensed third party, will determine your home’s appraised value—or in other words, how much the bank thinks your home is worth. Both fees can cost upwards of a few hundred dollars each.

9. Utilities

One of the first steps you’ll take in your new home is setting up your utilities. In general, the larger the property the more you can expect to pay in utilities. Electricity, gas, water, sewer, and trash and recycling pickup are just a few of the utilities you can expect to arrange for your new home. Get an early start on this list to avoid a situation where you need heat or running water, only to realize they haven’t been set up yet.

10. Moving Costs

Often buyers can be so taken with the prospect of living in their new home that they forget to account for the costs it will take to move there. Set a timeline, take inventory of the items in your home, and stay organized throughout the process to make the moving process as efficient as possible. For more moving tips, read our guide on how to Make Your Move.

To understand more about how to navigate the buying process, connect with an experienced Windermere agent today:

Market News • November 1, 2021

Q3 2021 Eastern Washington Real Estate Market Update

by Afshan Adil

Q3 2021 Eastern Washington Market Trends

The following analysis of the Eastern Washington real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

Regional Economic Overview

The Eastern Washington job market lost more than 47,000 jobs over the pandemic period, but the region has now recovered all of these jobs and added almost 11,000 new positions. Every county except Whitman shows employment levels above their pre-pandemic peak. Of specific note is Spokane County, which met my forecast in the second quarter Gardner Report and has now seen a full job recovery. Employment growth has, unsurprisingly, allowed the unemployment rate to drop further, with the region showing just 4.6% of its workforce now without a job. This is down from the pandemic peak of 14.9%.

eastern washington Home Sales

❱ Home sales throughout Eastern Washington fell 2.2% compared to the same quarter in 2020. This is not very informative given that the country was experiencing a massive housing rebound following the outbreak of COVID-19. More useful is that sales rose 13.5% from the second quarter of this year.

❱ Listing activity was up more than 64% compared to the second quarter of this year, which allowed sales to grow. That said, available inventory is still 13.7% lower than last summer.

❱ Year-over-year, sales rose in three counties but fell in the other four. Compared to the second quarter, sales rose in all counties other than Whitman, with significant increases in Lincoln County, where transactions rose more than 48%.

❱ Pending home sales, which are an indicator of future closings, were 3.1% higher than in the prior quarter. This suggests that closings in the fourth quarter will be positive.

A bar graph showing the annual change in home sales for various counties in Eastern Washington during the third quarter of 2021.

eastern washington Home Prices

A map showing the real estate market percentage changes in various counties in Eastern Washington during the third quarter of 2021.

❱ Year-over-year, the average home price in Eastern Washington rose a very significant 23.7% to $425,630 and was 3.8% higher than in the second quarter of this year.

❱ Demand remains strong, as demonstrated by the rising number pending sales, and the increase in the number of homes for sale has not slowed the market.

❱ Prices rose in every county other than the small Lincoln County market. There were double-digit increases in all other areas.

❱ Mortgage rates remain very competitive, which has allowed prices to continue rising. However, as I mentioned in the last Gardner Report, affordability concerns are starting to rise. Both Spokane and Walla Walla counties are now technically unaffordable for buyers making the median income, and every county in this report—with the exception of Lincoln County—is considered unaffordable for first-time buyers.

A bar graph showing the annual change in home sale prices for various counties in Eastern Washington during the third quarter of 2021.

Days on Market

❱ The average time it took to sell a home in Eastern Washington in the third quarter of 2021 was 14 days.

❱ During the quarter, it took 17 fewer days to sell a home in Eastern Washington than it did a year ago.

❱ All markets saw days on market drop compared to the third quarter of 2020, with significant declines in Lincoln County (-29 days), Whitman County (-26 days), and Grant County (-22 days).

❱ It took six fewer days to sell a home in the third quarter than it did during the second quarter of this year.

A bar graph showing the average days on market for homes in various counties in Eastern Washington during the third quarter of 2021.

Conclusions

A speedometer graph indicating a seller's market in Easter Washington during the third quarter of 2021.

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

With a full return of the jobs lost to COVID-19 and very favorable mortgage rates, home buyers have been out in force. This, in concert with more choice in the region, caused home sales and prices to rise.

As it stands today, the only thing that’s favoring buyers is that there are more homes for sale. But, given the direction of pending sales, prices, and shortening days on market, the region still favors home sellers. As such—and even in the face of affordability issues starting to appear in select markets—I have chosen to move the needle a little more in favor of home sellers.

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

Market News • November 1, 2021

Q3 2021 Central Washington Real Estate Market Update

by Afshan Adil

Q3 2021 Central Washington Market Trends

The following analysis of the Central Washington real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

Regional Economic Overview

Central Washington has recovered all the jobs lost to COVID-19 and continues to expand its employment base. Across the five counties that make up this report, total employment rose to 233,699 in August. The number of jobs is now more than 15,000 positions higher than the pre-pandemic peak of just over 218,000. With more jobs returning, the unemployment rate has dropped to 5.6%—a level last seen in the summer of 2018. The lowest unemployment rate was in Chelan County at 4.2%. The highest rate was in Yakima County, where 5.6% of the labor force was unemployed.

central washington Home Sales

❱ Year-over-year, home sales in Central Washington fell 5.2%, but this is almost irrelevant given that a year ago the country was experiencing a massive housing rebound following the outbreak of COVID-19. More useful is that sales rose 10.9% compared to the second quarter of 2021, with a total of 1,634 homes sold.

❱ Pending sales were .8% lower than in the second quarter, suggesting that closings in the final quarter of the year may not show much improvement.

❱ Compared to a year ago, sales rose in Yakima County but fell in all other markets covered by this report. Relative to the second quarter of this year, sales rose in every county other than Okanogan, with Yakima County again showing a substantial increase (+22.3%).

❱ Inventory levels were up 3.4% compared to a year ago and were 32.7% higher than in the second quarter of this year. Additional choice in the market is a good thing for buyers, which is likely why sales rose significantly in the quarter.

A bar graph showing the annual change in home sales for various counties in Central Washington during the third quarter of 2021.

central washington Home Prices

A map showing the real estate market percentage changes in various counties in Central Washington during the third quarter of 2021.

❱ Even with rising inventory levels, demand remained strong, which allowed the average home price in Central Washington to continue trending higher. Prices were up 16.7% year over year to $487,326. Home prices in the third quarter were also 3.3% higher than in the prior quarter.

❱ Mortgage rates in third quarter remained below 3%, which also contributed to prices rising at above-average rates. Although I expect mortgage rates to start rising this winter, they are unlikely to increase to a level that will have a material impact on prices.

❱ All counties covered by this report again saw significant price increases compared to this time last year, with double-digit gains across the board. I would note that home sale prices were lower in Kittitas County compared to the second quarter, but it is no cause for concern as small markets can exhibit extreme swings in price.

❱ Douglas and Kittitas counties remain technically unaffordable to households making the median income, but my bigger concern is that no county in the report is affordable for first-time buyers. New construction activity has not improved significantly, and with fewer homes being built, affordability issues continue.

A bar graph showing the annual change in home sale prices for various counties in Central Washington during the third quarter of 2021.

Days on Market

❱ The average time it took to sell a home in Central Washington in the third quarter of 2021 was 31 days.

❱ During the quarter, it took 26 fewer days to sell a home in Central Washington than it did a year ago.

❱ All counties saw the length of time it took to sell a home drop compared to a year ago, with noticeable improvement across the board. Compared to the second quarter of 2021, market time rose in Chelan and Douglas counties, but the increase was only three days in each market.

❱ It took five fewer days to sell a home in the third quarter than it did in the second quarter of this year.

A bar graph showing the average days on market for homes in various counties in Central Washington during the third quarter of 2021.

Conclusions

A speedometer graph indicating a seller's market in Central Washington during the third quarter of 2021.

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

The positive for buyers in Central Washington is that listing activity has picked back up and average list prices have started to trend a little lower in many market areas. This is now causing sellers to have to compete somewhat for buyers. That said, it remains a seller’s market given lower days on market and strong buyer demand. I expect home prices to continue rising, but the pace of growth has started to slow. As such, I am moving the needle a little more toward buyers, but the market will remain active, and owners looking to sell a well-positioned and appropriately priced home are unlikely to have much of a problem finding a buyer.

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

Market News • October 29, 2021

Q3 2021 Colorado Real Estate Market Update

by Afshan Adil

The following analysis of the Metro Denver & Northern Colorado real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

Regional Economic Overview

The rise in COVID-19 infections due to the Delta variant caused Colorado’s job recovery to slow, but not as much as in many other states. The latest data (for August) shows that more than 293,000 of the 376,000+ jobs that were shed due to COVID-19 have returned. This is good news, with only 83,000 jobs needed to return to pre-pandemic employment levels. The metro areas contained in this report have recovered 243,700 of the 310,000 jobs lost, and I expect the state will recover the remaining jobs by next summer. With employment levels improving, the state unemployment rate currently stands at 5.9%—down from the pandemic peak of 12.1%. Regionally, unemployment levels range from a low of 4.4% in Boulder to a high of 6.1% in Grand Junction.

colorado Home Sales

❱ In the third quarter, 14,209 homes sold. This was 6.8% lower than a year ago, but 5.8% higher than the second quarter of 2021.

❱ Compared to a year ago, listing activity was down more than 30%. However, inventory levels were up 38.3% compared to the second quarter of this year, suggesting that buyers have more choice now than they have seen in some time.

❱ Although comparing current sales activity with that of a year ago is not that informative—given that the country was experiencing a massive rebound in housing demand following the outbreak of COVID-19—it was pleasing to see sales up in every county other than Denver and Douglas compared to the second quarter of this year.

❱ Pending sales (an indicator of future closings) were down 5.4% compared to the second quarter of the year, suggesting that closings in the final quarter may well be a little soft.

A bar graph showing the annual change in home sales for various counties in Colorado during the third quarter of 2021.

colorado Home Prices

A map showing the real estate market percentage changes in various counties in Colorado during the third quarter of 2021.

❱ Prices continue to appreciate at a very rapid pace, with the average sale price up 15.8% year over year to an average of $605,576. Sale prices were 1.6% lower than in the second quarter of 2021.

❱ Four counties—Arapahoe, Douglas, Weld, and Park—saw the average home sale price pull back between the second quarter and the third, but I am not overly concerned by this at the present time.

❱ Year-over-year, prices rose across all markets covered by this report. All counties except Arapahoe saw double-digit gains, but even that market saw an increase in sale prices.

❱ Several counties are experiencing a drop in average list prices, which is a leading indicator of future activity. As such, I expect to see the rise of sale prices start to slow, which will be a welcome sight for many buyers.

A bar graph showing the annual change in home sale prices for various counties in Colorado during the third quarter of 2021.

Days on Market

❱ The average number of days it took to sell a home in the markets contained in this report dropped 17 days compared to the third quarter of 2020.

❱ The length of time it took to sell a home dropped in every county contained in this report compared to both the same quarter a year ago and the second quarter of this year.

❱ It took an average of only 12 days to sell a home in the region, which is down 2 days compared to the second quarter of 2021.

❱ The Colorado housing market remains very tight as demonstrated by the fact that it took less than three weeks for homes to sell in all counties contained in this report.

A bar graph showing the average days on market for homes in various counties in Colorado during the third quarter of 2021.

Conclusions

A speedometer graph indicating a seller's market in Colorado during the third quarter of 2021.

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

The job market continues to improve, which is always a stimulant when it comes to home buying. Inventory levels have improved, and lower pending sales suggest that buyers are taking a little longer to decide on a home. That said, the market is still bullish as indicated by the short length of time it took to sell a home in the quarter. Mortgage rates will start to creep higher as we move into the winter months, and this may stimulate additional buying activity. In the last edition of The Gardner Report, I suggested we would see more homes come to market and that has proven to be accurate. Given these factors, I am moving the needle a little toward buyers, but it remains a staunchly seller’s market.

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

Market News • October 29, 2021

Q3 2021 Southern California Real Estate Market Update

by Afshan Adil

Q3 2021 Southern California Market Trends

The following analysis of the Southern California real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

Regional Economic Overview

The job recovery in Southern California continues to be quite the roller-coaster, with solid monthly gains followed by significant drops. In the first quarter of the year, more than 326,000 jobs returned, but that was followed by a less-than-stellar 8,300 increase in the second quarter. The latest third quarter numbers (most recent data is from August) showed that the Southern California region has added more than 27,000 positions, but this is still underwhelming.

The COVID-19 Delta variant is impacting the job market, and a lack of available workers isn’t helping. In aggregate, the region has recovered 1.31 million of the 2.02 million jobs that were shed when the pandemic hit, but this means Southern California is still down more than 700,000 positions. The region’s unemployment rate in August was 8.2%, down significantly from 14.2% a year ago. The most recent data shows the lowest jobless rates were in Orange (6%) and San Diego (6.6%) counties. The highest rate was again in Los Angeles County, where it was 9.7%. Although the current pace of the job recovery is muted, I hope it will pick up in the not-too-distant future, but the likelihood of reaching full employment anytime soon appears to be unrealistic.

southern california Home Sales

❱ In the third quarter, 50,313 homes sold in Southern California, representing a 0.1% drop from the same period in 2020 and 4.7% lower than in the second quarter of this year.

❱ Pending home sales, which are an indicator of future closings, were 4.5% lower than in the second quarter of this year, suggesting that the final quarter may also be down.

❱ Year-over-year, home sales rose in Los Angeles County, but pulled back in the remaining markets covered by this report. Compared to the second quarter, sales pulled back in all markets other than San Bernardino, where sales rose 6%.

❱ The issue is not demand, rather a lack of supply is holding the market back. Listing activity is down 22.3% from a year ago, and this is impacting sales. That said, listings were 17.1% higher than in the second quarter and, with more choice starting to emerge in the market, we could see sales volumes pick back up.

A bar graph showing the annual change in home sales for various counties in Southern California during the third quarter of 2021.

southern california Home Prices

A map showing the real estate market percentage changes in various counties in Southern California during the third quarter of 2021.

❱ The average price of homes sold in the region was $971,184. This was 19.1% higher than a year ago, but 1.4% lower than in the second quarter of 2021.

❱ Mortgage rates remain remarkably competitive, even if they are off the historic low of last December. Also of note is that jumbo mortgage rates are remarkably competitive—an important factor in expensive markets such as Southern California.

❱ The region saw double-digit price growth across all counties contained in this report. Year over year, prices were up more than 19%, but they were down 1.4% from the previous quarter.

❱ As stated in last quarter’s report, I believe interest rates will rise slowly, which is likely to bring out more buyers. With inventory levels starting to tick up, I am expecting the regional housing market to trend higher, but likely not until the spring.

A bar graph showing the annual change in home sale prices for various counties in Southern California during the third quarter of 2021.

Days on Market

❱ In the third quarter of the year, the average time it took to sell a home in the region was 17 days, which is 16 fewer days than a year ago and 2 fewer days than in the second quarter of 2021.

❱ Three counties saw the time it took to sell a house drop compared to the second quarter of this year: Riverside, Los Angeles, and Orange. Market time was static in San Bernardino County and rose by one day in San Diego County.

❱ Homes in San Diego County continue to sell at a faster rate than other markets in the region. In the third quarter, it took an average of 14 days to sell a home there—9 fewer days than it took a year ago.

❱ With it taking an average of a little more than two weeks for a home to find a buyer, the market remains very tight. That said, with inventory levels rising, it is possible that days on market will start to creep higher, especially as affordability constraints potentially limit the number of qualified buyers.

A bar graph showing the average days on market for homes in various counties in Southern California during the third quarter of 2021.

Conclusions

A speedometer graph indicating a seller's market in Southern California during the third quarter of 2021.

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

The third quarter was quite a mixed bag, with rising inventory levels but lower sales and prices compared to the second quarter. When I look at list prices, which is a leading indicator, as opposed to sale prices, which are a lagging indicator, I notice some softening in San Bernardino, Los Angeles, and Riverside counties. Although not a cause for concern, it may suggest that the market is about to start to cool—albeit modestly.

As such, I have chosen to move the needle a little more in the direction of home buyers, although sellers still have the upper hand.

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate