Real EstateStats May 16, 2022

Q1 Whidbey Island Market Report 2022

Q1 Whidbey Island Market Report 2022

Q1 Whidbey Island Market Report 2022

 

 

Q1, 2022- Quarterly Stats, Windermere Real Estate, Housing Market, Island Life, Lifestyle on Whidbey

 

Interested in digging deeper into the stats on Whidbey Island? Check out more stats here. Whether you are considering buying or selling let’s connect so that you have a trusted real estate advisor on your side who can help you strategize to achieve your dream of home ownership.

Real Estate May 3, 2022

Lagoon Point

Lagoon Point is one of just three canal communities on Whidbey Island where you can dock your boat right in front of your home. This rare style of a planned community used to be a large salt marsh before developers pushed earth around, dredged, and carved out a canal from Puget Sound down to finger canals lined with floating docks and gangways connecting them to backyards. You can find this centrally located neighborhood on the coveted west side of Whidbey Island on the southern edge of Greenbank.

Lagoon Point, dock your boat right in front of your home

Boating Community:

Although only a small percentage of Lagoon Point community homes have docks in their backyards, most all partake in the gorgeous water views. Many of the homes are perched up the hill where they can enjoy heightened and expansive views while others surround the large lagoon (Lagoon Lake) on the north side. No one can argue that this is a very boating centric community. In fact, one of the very best boat launches can be found here and is only available to homeowners. An added benefit is that there is ample space to store your truck and trailer while you are out enjoying the sound.

Keep in Mind:

The only tricky bit with this canal community is that mother nature keeps trying to close off the mouth of the canal that leads to the Puget Sound. With that said, it is of the utmost importance to have an intimate understanding of how the spit is currently formed and at what depth tide you can safely navigate your vessel through it. Luckily, it is a very active neighborhood. One member has even provided drone footage of the opening on his You Tube channel so you can familiarize yourself! https://www.youtube.com/channel/UCXwDdeNtdeZWUnSFtfQ2Gaw

Only Bridge on Whidbey:

Lagoon Point likes to boast that it has the only bridge on Whidbey Island. Confused huh? Let us explain. There is a very serious bridge that connects the two sections of the lower part of the community that has both ends firmly planted on Whidbey where the Deception Pass Bridge obviously has one side on an entirely different island. Ha! If you can debunk this we would love to hear. Send us an email here: whidbeycommunications@windermere.com.

Check it Out:

For those just wanting to check out the community you can easily take a drive around. There is a narrow section of beach that is a public beach at the end of Salmon Street. Keep in mind it is privately owned tidelands on either side. One of the best depictions of this can be found in the gallery section of the communities very informative website https://lagoonpoint.com/gallery/.

Public Access, lagoon Point, Greenbank, Whidbey Island

Close to Everything:

Being central on the island, positions the community only a couple of miles from South Whidbey State Park, less than 4 miles from Greenbank Farms, and less than 10 miles from downtown Freeland. Living in Lagoon Point offers you a plethora of opportunities to take a gorgeous hike or do your grocery shopping!

Considerations:

One consideration when investing in a canal community is that maintaining such infrastructure as a jetty, bulk heads, canals, 2 boat launches, and even a bridge can be expensive and hard work. A homeowner in this community needs to be prepared to invest in their upkeep and appreciate the work the volunteers on the board and committees take on. For instance, the new bridge installed in 2017 took 4 years and 100’s of thousands of dollars. The last time they dredged it took almost a decade and just under 1 million dollars.

CoupevilleDestination WhidbeyThings to Do on Whidbey May 2, 2022

The Ferry House

When overlooking Ebey’s Landing National Historic Reserve  in Coupeville, it is easy to spot the most iconic building in the reserve. The Ferry House. The house was built by Isaac Ebey’s family shortly after he was killed to help support Isaac’s sons. From the early 1860s to around 1900 the inn operated as a tavern, post office, grocery store, and hospitality inn for people traveling through Admiralty Inlet and to families who claimed Whidbey as their home. The National Park Service acquired it in 2000 and is committed to its preservation in partnership with Friends of Ebey.

 

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Real Estate April 25, 2022

Your Guide to Celebrating MOM on Whidbey Island

Mothers Day is just around the corner. Are you ready to celebrate mom the way she should be?

Keep reading for our guide to celebrating mom on Whidbey Island so you can create a day filled with memories that will last mom a lifetime.

Sunday Morning:

What better way to celebrate mom than by waking her up with a stunning gift from our local family-owned jewelers at Gerald’s Jewelry?

Mothers day, gift, necklace, bracelet, Celebrate mom

Pack the family in the car, grab a cup of coffee from Café De Lisio (opens at 6 am),  and head down to West Beach to catch the sunrise. Perhaps a short stroll along the beach until someone can find a heart-shaped rock for mom is in order.

Celebrating mom on Wihidbey Island, Whidbey Island, Mom, Mom life, Coffee, Heart shaped rock, Family in car, Kids

Don’t make mom cook today! Treat her to a breakfast at The Mill at Kasteel (opens at 8 am) that will leave her feeling like a queen.

When done, drop mom off FOR HER FACIAL APPOINTMENT (set this in advance) at one of these local studios:

While she is getting pampered, sneak over to Little Town Cottage to pick out the best smelling products to treat mom to a well-deserved relaxing bath later in the evening.

Celebrate Mom, Bubble Bath, mom life

 

Sunday Afternoon:

Once mom has been pampered and is ready to hit the road again, head to one of these three phenomenal ways to spend Mother’s Day afternoon on Whidbey Island.

1.       Stop in Coupeville for her massage appointment (make an appointment in advance) at the Seaside Spa and Salon, before heading to Mother’s day at Meerkerk Garden (11am – 3pm) in Greenbank. While you are waiting, grab her a book from the Kingfisher Bookstore, a bottle of wine from Vails Wine Shop & Tasting Room, and perhaps all of you a treat before the rest of the drive from Front Street Grill.

2.       Her Reservation (make in advance 11am – 4pm) for a pampered Mother’s Day Picnic at Wild Hearts on Whidbey in Langley, which includes charcuterie boxes, 20 breathtaking acres to explore, and mini photography sessions with Phoenix Photography to capture these memories for the rest of her life, and, of course, stunning bouquets.

3.       Treat mom to the perfect Langley adventure complete with the best selection of Whidbey’s own Sweet Monas Chocolates, a trip through the Whidbey Art Market, and when tummies get hungry, fulfill the urge with a stop at Sea Biscuit Bakery.

Sunday Evening:

With a bit of preparation in advance, Mom can be greeted with a unique bouquet specially  handcrafted by Lexi at Forage upon returning home . Let mom relax with a soaking bath complete with the products from Little Town Cottage, the book from Kingfisher, and a glass of wine from Vails, prepare a simple but sweet recipe so that she does not have to cook. Finish the evening with a family movie and get the kiddos off to bed for their early morning at school the next day.

No matter how you choose to celebrate, show mom she is loved this Mother’s Day with a day she will never forget!

If you post a picture to your social for her special day, tag us in it so we can celebrate her too.

Instagram: @windermere_whidbey_island

Facebook: @WindermereWhidbeyIsland

GreenbankNeighborhoodsPlaces April 18, 2022

Lake Hancock

A major storm in the early 1900s destroyed a sand dune that separated the fresh water in Lake Hancock located in Greenbank from the saltwater of the Puget Sound. The destruction of the sand dune resulted in a tidal flow that sometimes creates the illusion of a flooded lake and other times leaves a stretch of muck littered with driftwood.

Lake Hancock Years Ago: 

Around the time of World War II, the Navy utilized this location for bombing practice. Since the lake, still owned by the Navy, is littered with metal fragments, and there is a possibility of unexploded ordinance, access to the lake is limited to special permission escorted by Navy representatives. Bordering the southern and eastern sides of the lake is property owned by The Nature Conservancy, Island County, and the Port of Coupeville. Private property borders the most northern side of the lake and of course the Puget Sound to the west.

Today: 

Due to the limited access, Lake Hancock offers a remarkable sanctuary for Whidbey Island wildlife. Parallel to the lake across the 525 is the stunning Greenbank off-leash dog area (learn more about it here) where you can catch glimpses both of Lake Hancock from one side and the Saratoga Passage on the other from the peak of the hillside. It is likely you will also discover people enjoying bird watching as this location offers some of the most extraordinary opportunities. Approximately 2 minutes south of the dog park is the lovey Greenbank Farm (learn more about it here) where you can stop for a cup of coffee and enjoy a slice of the most delightful pie made by Whidbey Pies while you are there.

Don’t forget to post a picture of your visit and tag us in it. We would love to see your adventure.

Instagram: @windermere_whidbey_island

Facebook: @WindermereWhidbeyIsland

 

If you are considering buying or selling and would like to learn more about the area, we would be happy to schedule a consult with you. Call us today at 360.675.5953 or email us at whidbeycommunications@windermere.com.

Destination WhidbeyReal Estate March 7, 2022

Coupeville Waterfront

Long before European Explorers discovered Whidbey Island, Penn Cove hosted one of the largest native populations in the region. The Coast Salish People used the well-protected cove with easy access to the rest of Puget Sound for ample trading opportunities while the nearby prairie produced bountiful crops. As settlers came, Coupeville remained the central trading location on the island and by 1881 was the Island County government seat. The town prospered due to shipping fish, produce, lumber, and timber to the mainland via the Coupeville Wharf. Unlike many other historical towns, Coupeville’s historic waterfront buildings remain remarkably intact.

Check out the rest of Whidbey’s beautiful destinations from this series here.

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HomeReal EstateStats February 21, 2022

We are NOT in a Housing Bubble: Here’s Why!

Home buyers are beginning to believe we are heading into a housing bubble. It is easy to acknowledge this premonition, as year-after-year home price appreciation has continued to remain in the double digits.

However, we are here to put your mind at ease as this market is very different than it was during the housing crash 15 years ago. Follow along as we explain four fundamental reasons why today's market is nothing like the market was back then.

1. Houses Are Affordable Unlike During the Housing Boom

To understand this, one must understand the affordability formula. The affordability formula consists of three parts: the price of the home, wages earned by the purchaser, and the mortgage rate available at the time of purchase. Conventional lending standards suggest a purchaser should spend no more than 28% of their gross income on their mortgage payment.

Fifteen years ago, prices were high, wages were low, and mortgage rates were over 6%.  While today's  home prices are high, wages have increased significantly, and despite the latest spike, mortgage rates are still well below 6%. This means that todays average buyer spends less of their monthly income toward their mortgage payment than buyers did back then.

In the latest Affordability Report by ATTOM Data, Chief Product Officer Todd Teta speaks to this stating, "The average wage earner can still afford the typical home across the U.S., but the financial comfort zone continues shrinking as home prices keep soaring and mortgage rates tick upward."

Undeniably,  affordability is not as strong as it was last year, but it is significantly better than it was during the boom. The graph below demonstrates that difference:

How did so many homes sell during the housing boom with such prohibitive costs?

2. Mortgage Standards Were Much More Relaxed During the Boom

Getting approved for a mortgage loan was significantly more attainable during the housing bubble than it is today.  According to credit.org, a credit score between 550-619 is considered poor. They define  those with a score below 620, by stating that, "Credit agencies consider consumers with credit delinquencies, account rejections, and little credit history as subprime borrowers due to their high credit risk."

While buyers can still qualify for a mortgage with a credit score within that range they are considered riskier borrowers. If you are in that range, read our How Long Does it Take to Save for a Down Payment article here. Below is a graph illustrating the mortgage volume issued to buyers with a credit score less than 620 during the housing boom, in compression to the following 14 years.

Mortgage standards are significantly different than they were last time. Buyers that obtained mortgages during the past decade are better qualified for the loans. Lets look at what that means moving forward.

3. Foreclosure Are Completely Different  Than They Were During The Crash

The most obvious difference is the number of homeowners that were facing foreclosure after the housing bubble burst. The Federal Reserve issues a report showing the number of consumers with a new foreclosure notice. Here are the numbers during the crash compared to today:

 

 

 

Undoubtedly the 2020 and 2021 numbers are impacted by the forbearance program, which was created to help homeowners facing uncertainty during the pandemic. Keep in mind, there are less than 800,000 homeowners remaining in the program today, and the majority of those will be able to work out a repayment plan with their banks.

Rick Sharga, Executive Vice President of RealtyTrac, explains, "The fact that foreclosure starts declined despite hundreds of thousands of borrowers exiting the CARES Act mortgage forbearance program over the last few months is very encouraging. It suggests that the ‘forbearance equals foreclosure' narrative was incorrect."

Why are there significantly less foreclosures seen today? Well, homeowners today are equity rich. They are not tapped out.

During the build-up to the housing bubble, some homeowners were using their homes as personal ATM machines. We saw a plethora of people withdrawing their equity the moment it was built up. When home values began to fall, many homeowners found themselves in a negative equity situation where the amount they owed on their mortgage had surpassed the value of their home. Many were faced with the decision of walking away from their homes. When that happened it led to a rash of distressed property listings (foreclosures and short sales), which sold at huge discounts, thus lowering the value of comparable homes in the area.

Homeowners, have since learned their lessons. Prices have risen nicely over the last few years, leading to over 40% of homes in the country having more than 50% equity. But owners have not been tapping into it like they had previously, as indicated by the fact that national tappable equity has increased to a record $9.9 trillion. With the average home equity now standing at $300,000. What happened last time will not happen today.

As the latest Homeowner Equity Insights report from CoreLogic explains, "Not only have equity gains helped homeowners more seamlessly transition out of forbearance and avoid a distressed sale, but they've also enabled many to continue building their wealth."

There will be nowhere near the same number of foreclosures as we seen during the crash. What does that mean for the housing market today?

4. There is Not a Surplus of Homes on the Market – We Have a Shortage

The supply of inventory needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued price appreciation. The following graph demonstrates, the surplus of homes for sale between 2007 to 2010 (many of which were short sales and foreclosures). That caused prices to tumble. Today, there is a shortage of inventory, which is creating the increasing home values we are witnessing today.

Inventory is drastically different in comparison to last time. Prices are rising because there is a healthy demand for homeownership while at the same time there is a shortage of homes for sale.

At the end of the day,

if you are worried that we are making the same mistakes that led to the housing crash, the graphs above show data and insights to help alleviate your concerns. If you are considering buying or selling and would like to dive deeper into this subject we would be happy to schedule a consult with you. Call us today at 360.675.5953. 

ClintonCoupevilleFreelandGreenbankHomeLangleyOak HarborReal EstateStats February 8, 2022

Annual Report 2021

Agent FeaturedReal Estate February 7, 2022

Racial Discrimination in Real Estate

This room might seem simple to you, but to me, it marks the saddest day in my career. 💔

Staged Room - Black Woman PaintingThis picture was taken shortly after I had finished staging one of my client’s homes. I wanted to show the owners all I had done – admittedly looking for a pat on the back. Although I was showered with compliments for almost every other room in the home (all boho-themed to my aesthetic), I was given an off-putting request when they saw this photo.

Can you remove the painting?

Having fallen in love with this painting months ago, I was fairly disappointed and a bit taken back by the request. I decided to inquire about the reasoning behind the request and my client’s response broke my heart into a million little pieces.

We are afraid we’ll get less money if people know we’re Black.

I was speechless.

In an attempt to comfort my clients and resolve the issue I made the mistake of saying ignorant things such as “that’s not as prevalent on the west coast” and “it’s just art, it won’t tell people who you are.” Ultimately though, the panting came down and was replaced by a lovely little beach scene.

Recently I was reminded of this interaction in the most heartbreaking way. In December of 2021 residents of San Francisco, California filed a lawsuit against their appraiser whose estimated value of the home came in nearly half a million dollars less than market value. After removing their family photos from the home and having it re-appraised it was clear that this discrepancy was in no small part due to the family’s race. You can read more about the story here.

My client was right. The fight is nowhere near over.

The real estate industry has a long and troubling history when it comes to the struggles of racial divide in America. In many ways, the housing industry served and serves as a stronghold for preserving racial discrimination long past the judicial end of segregation. In Richard Rothstein’s book The Color of Law, he delves into the multitude of ways in which the real estate industry fought to preserve racial segregation using subversive tactics that appeared innocent. By discreetly elongating the effects of racial segregation within the housing industry, the inability for people of color to obtain reasonable homes helped to widen the American wealth gap further than anyone thought possible.

 

Historical Racial Segregation

How could the housing industry make such a profound impact on the financial prosperity of America’s minorities?  The answer to this question is LONG and although I am not a professional economist, I can give you the two biggest reasons.

Real Estate is the Best Source of Generational Wealth

It is no surprise to anyone that land is one of, if not the most, finite resource we have in this world. Sure, there are always going to be those few who talk about building an underwater civilization or creating an outpost on Mars. However, if we are to assume that we do not live in a Syfy film – what we got is what we got. This means that real estate is one of the most secure investments you can make. Without the ability to create more supply and the fact that it is a basic necessity for all humans, the value of property really has little way to go other than up. This makes it a major player when it comes to building generational wealth.

A home is a unique asset in the fact that it not only provides vital accommodations to its owners but also greatly increases in value through the years and can be passed down from generation to generation. On top of that, those who own homes can withdraw equity from those homes to re-invest and grow that wealth even further.

This asset was withheld from minorities for multiple generations through the process of redlining while being generously provided to their Caucasian counterparts. By excluding minorities (especially the Black community) from the ability to build this kind of compound wealth, the prospect of even being able to buy into the investment grew further and further away with every increase in market prices. By the time segregation and redlining “ended,” the ability for minorities to purchase a suitable home was already too far gone and it would take more than just a few generations to close the gap.

Housing Taxes are Connected to Education

One of the cleaver and subversive ways in which the housing industry was able to sustain discrimination in real estate and the wealth gap was through intertwining housing taxes with access to education. By excluding minorities from suitable housing which was projected to rise in value at a far greater rate, early real estate developers were successfully able to ensure educational discrepancies between the two communities.

In exclusively Caucasian communities where home values greatly exceed their minority counterparts, schools were well funded through the taxation of those higher valued properties. As a result, the children of those communities were granted better educational programs, higher paid and more competent teachers, as well as better recognition from potential universities. Later in life, this would result in better and higher-paying jobs for the children of those exclusively Caucasian communities.

In contrast, the home systematically set aside for minority communities did not come close to meeting the values of their Caucasian counterparts. The result of this was that children raised in these communities would have fewer educational programs, poorly paid teachers, and would often have a “black mark” on their college applications due to their school’s reputation. As adults this lack of suitable education would result in working lower-paying jobs – only greatening the wealth divide.

Unfortunately, minorities today still face discrimination through illegal real estate practices such as steering and, as we saw with the San Francisco family, discriminatory appraisals. For people like me, it can be easy to think such things as “that’s all in the past” or “minorities can’t possibly still be affected by this.” However, it is through the fear in my client’s eyes as they looked at that beautiful painting that I see the truth – this battle is so far from over.

 

DEI

I am grateful, however, to work with Windermere Real Estate in fighting this injustice within our industry. In 2020 Windermere heard the call for equality and chose to answer. Windermere is one of the few Real Estate companies in the nation that have chosen to hire a consulting agency to help them promote Diversity, Equity, and Inclusion within our industry. Step-by-step they are helping their brokerages learn what it truly means to be inclusive and how we can all help to close the gap.

You can help too! Windermere Real Estate is partnering with HomeSight to increase Black homeownership in Washington state through what they are calling the “Hi Neighbor” fund. Through this fund, HomeSight is bridging the affordability gap for Black homebuyers so that they can increase their purchasing power. Starting in 2022 I will do my part by giving a portion of every commission I make to the fund. To learn more about this fund and to donate, click here!

This beautifully written article was submitted by our very own, Victoria Paris to discover more articles written by our agents click here. 

 

CoupevilleEventsNeighborhoodsPlacesThings to Do on Whidbey January 31, 2022

Penn Cove Mussels

Every city or county has that one thing they are famous for. Their claim to fame that puts them on the world map. For some it is a world-famous sports team, others it is a historical location, still some gain fame from the presence of rare exotic animals.

For Island County, it is our mussels.

Muscles, Emerald Cup, Washington

No, not the Emerald Cup kind of muscles we didn’t make a typo, we mean our Penn Cove mussels.

Penn Cove Mussels, Whidbey island, Coupeville, Washington

 

 

 

 

 

The History of Penn Cove Mussels

You may not know this, but Island county is home to the oldest and largest mussel farm in the United States (and maybe the world).  Penn Cove Mussels, Inc. began culturing mussels in 1975 with the desire to harness the cove’s naturally nutrient-rich water to harvest bigger and better mussels than the ones currently available. The results were incredible! Penn Cove mussels grow at a remarkable rate, enabling the mussels to reach harvest size within one year. This rapid growth rate causes Penn Cove mussels to have a firmer texture, sweeter flavor, and a thinner shell with more meat. As you can imagine, it makes them quite a crowd-pleaser.

Whidbey Island’s proximity to Seattle and the Sea-Tac Airport mean these wonderful shellfish don’t have to be a local secret. Instead, these mussels are quickly air-shipped all over the world for others to experience and enjoy. Mussels harvested in the morning are on the lunch plates of Seattle seafood lovers by that afternoon and dinner entrees in Houston by the evening.

Celebrated with a Festival

35 years our Penn Cove Mussels have been celebrated with a festival. The original celebrations consisted of a community chowder contest that has morphed over the years into 3 days’ worth of activities and fun. The most recent events have attracted more than 6,000 mussels enthusiasts from far and wide. This event alone significantly helps the local merchants recover from the slow winter months.

Musselfest festivities typically kick off on a Friday with the “Mussel Mingle.” This is a time where people gather at the Coupeville Recreational Hall to enjoy food, drink, and music. The next two days are packed full of mussel cooking demonstrations from incredible Seattle chefs, the massive mussel chowder competition involving 16 different local restaurants, the mussel eating competition, tours of Penn Cove Shellfish, Inc., a mountain bike event (“Mussels in the Kettles”) and more!

Musselfest is a massive community affair that requires all hands on deck to pull off. Dozens of volunteers from all over Coupeville donate their time, finances, and resources to make this festival work. For the past few years, Windermere Whidbey agents have volunteered their time at the Waterfront Beer Garden where they serve up some great local ale while listening to amazing local musicians.

musselfest, Coupeville, Whidbey Island

Unfortunately, like most events, the Penn Cove Musselfest was canceled due to Covid this past year, but the long-standing love for the festival carried on with the traditional T-Shirt and posters for all of the collectors. Past posters can be purchased here while supplies last. 

The 2022 Musselfest is anticipated to take place March 4th, 5th, and 6th pending the state of Covid and guidance from the state and county. Click here to check the status.