Life in Snohomish County & King County | Powered by Lisa Bender at SPIRE ONE Realty
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⚡️ Aerospace expands in Everett, windmills on the ocean, & interest rate cuts.

⚡️ Aerospace expands in Everett, windmills on the ocean, & interest rate cuts.

Stay up to date on what's happening in the Snohomish County economy.

Lisa Bender
December 22, 2023

Happy Friday-before-Christmas!

This week on The Bender Buzz we have a lot of updates that are great news for us in Snohomish County.

Everett’s Paine Field is expanding, which will create lots of job opportunities and revenue for our local economy.

WA State is also looking at some pretty interesting solutions for generating more energy. Have you ever seen a windmill on the ocean? Those may be coming to the WA coast.

And if you haven’t heard, interest rates have actually come down a bit this month. We’re going to dive into what that means for the housing market.

Have a wonderful Christmas and safe travel if you are getting out and about to visit your loved ones next week!

— Lisa

✈️ Everett’s Paine Field to expand acreage and local economy

Driving the news: Everett’s Paine Field is set to expand with 14 acres of land, previously owned by the Washington Air National Guard, now transferring to Snohomish County.

This move, part of this year’s National Defense Authorization Act, reflects significant growth and development in the area.

Details: The land transfer includes three parcels at Paine Field Airport, initially acquired by the Air National Guard in 1953 and vacated in 2013.

The transfer consists of 14.3 acres, which is crucial for future development. Paine Field significantly contributes to the local economy, generating over $60 billion annually and supporting 125,000 jobs.

The land includes areas near the Boeing assembly plant, a potential site for industrial activity, and a parcel for expanding the airport access road. There's also a wetland area, likely to be preserved for ecological balance.

Why it matters: Paine Field, integral to the Pacific Northwest's aerospace industry, is in dire need of expansion to accommodate regional growth. This transfer enables new developments in aerospace manufacturing and improved airport infrastructure.

The big picture: Paine Field, encompassing 1,315 acres, is a vital economic engine, home to multiple aerospace businesses, including The Boeing Co.

The expansion not only benefits the airport but also strengthens the region's standing as a global aerospace hub.

What’s next: With the land now in Snohomish County's hands, plans for expansion and development will proceed, focusing on aerospace and commercial ventures.

This transfer marks a new chapter in Paine Field’s history, promising more growth and economic opportunities.

The bottom line: The acquisition of these parcels by Paine Field is more than just a land transfer; it's a strategic move that bolsters the region's economy and cements its status as a leader in aerospace innovation.

The efforts of local and national representatives in making this happen demonstrate a strong commitment to the area's long-term prosperity.

🎥 Don’t make this BIG real estate contract mistake!

This is a contract addendum you don’t want to miss when you are buying or selling your home! Check out the video to see how to avoid it.

💡 Washington eyes offshore wind for future energy-generating solution

Driving the news: Washington State is considering offshore wind energy to diversify its clean energy portfolio, notably lagging behind its West Coast neighbors in adopting this technology.

Details: Washington, the last to venture into offshore wind on the West Coast, is carefully weighing the impacts on ocean fisheries and wildlife.

Officials have shown interest in offshore wind manufacturing jobs, yet hesitations persist due to environmental concerns.

A company called Trident Winds has proposed a 2,000-megawatt project, that could power 800,000 homes. Integrating this into the state's energy mix may save ratepayers an estimated $5 billion, highlighting its economic and environmental benefits.

Why it matters: Hydroelectric power, Washington's primary energy source, has been less and less reliable in recent years. Diversifying the state’s energy mix is crucial.

Offshore wind offers a promising alternative, especially during peak winter months and low solar periods.

The big picture: Seattle's record energy consumption and the need for a sustainable, diverse energy mix place offshore wind as a strategic solution.

This shift could alleviate the financial burden on utilities and ratepayers while aligning with the state's ambitious climate goals.

What’s next: The state's Department of Commerce is initiating dialogues with tribes, coastal communities, and other stakeholders to address concerns and explore offshore wind's potential.

However, practical integration of offshore wind into Washington's energy mix might take up to 20 years.

The bottom line: Washington State's exploration of offshore wind energy is a critical step toward the state’s future.

Balancing energy needs with technological advancements and economic benefits will be key to successfully integrating this resource into the state's clean energy portfolio.

🏠 Mortgage rates have dropped. Here’s what you need to know:

Driving the news: In a significant development for the housing market, mortgage rates have dipped below 7% for the first time since mid-August.

This marks the seventh consecutive week of declining rates, influenced by improving inflation figures and the Federal Reserve's pause in rate hikes.

Details: The 30-year fixed-rate mortgage averaged 6.95% in the week ending December 14, a slight decrease from the previous week's 7.03%, as reported by Freddie Mac.

This is a noteworthy shift from the 6.31% rate observed a year ago.

These figures are based on data collected from numerous lenders and reflect mortgages with a 20% down payment and excellent credit.

Mortgage applications have risen for six weeks straight, indicating growing borrower demand in response to the falling rates.

This trend is particularly significant for first-time buyers, who have struggled with affordability and low housing inventory.

Why it matters: This decline is critical for potential homebuyers who have been grappling with high rates and an unaffordable housing market.

Freddie Mac’s chief economist, Sam Khater, anticipates a gradual revival of the housing market in the coming year, particularly if inflation continues to slow and the Fed cuts rates as expected in 2024.

The big picture: The rates peaked at 7.79% in late October, making the current decline a sign of potential relief for prospective buyers.

The housing market, which has been experiencing its least affordable period since the 1980s, could see increased activity as rates continue to fall.

Between the lines: Despite the dip in rates, challenges remain due to the persistently low housing inventory.

Current mortgage holders, the majority of whom have rates below 6%, are hesitant to sell, leading to sustained low inventory and elevated prices.

What’s next: The Federal Reserve's recent decision to pause rate increases and the possibility of rate cuts in 2024 are pivotal factors influencing mortgage rates.

These actions, coupled with economic indicators like job growth and inflation rates, will continue to shape the housing market dynamics in the upcoming year.

The bottom line: While the drop in mortgage rates is a welcome development for potential buyers, the market faces ongoing challenges due to low inventory and the 'lock-in effect' of existing homeowners with low mortgage rates.

The upcoming year will likely see a continued focus on affordability and inventory levels as key drivers of the housing market.

📊 Our Current Local Market Data

The real estate market in Snohomish County, WA is currently cooling off with the fall weather. However, interest rates and lack of inventory have us locked into a seller’s market for the foreseeable future.

If you want to buy a home in this market, you’ll need a solid strategy for searching and making strong offers. Your home search could take a while, but you’ll have to move quickly when you find a home you like.

I’m staying on top of the market daily and there are even financing options that can help you purchase at a lower rate.

If you ever have questions, don’t hesitate to ask.