Happy Friday!

We are bringing you some exciting updates on The Bender Buzz this week!

Seattle suburb home values are skyrocketing and Lynnwood is getting a Light Rail link this year.

We are also taking a look at when you should refinance your mortgage and whether or not 2024 is a good year for doing so.

— Lisa

🤩 WA Has 18 Cities Where the Typical Home Is Worth $1 Million or More

Driving the news: The number of "million-dollar cities" in Washington has grown to 18, with Snoqualmie and Bothell being the latest additions, according to Zillow.

Details: Among the 18 cities where the typical home is worth $1 million or more, 17 are located in the Seattle metro area, while Bainbridge Island is in the Bremerton metro area.

Bothell has experienced a significant 5.4% increase in home values over the past year.

Here is a complete list of million-dollar cities in Washington:

1. Hunts Point

2. Medina

3. Yarrow Point

4. Clyde Hill

5. Beaux Arts Village

6. Woodway

7. Mercer Island

8. Sammamish

9. Bellevue

10. Redmond

11. Woodinville

12. Newcastle

13. Kirkland

14. Bainbridge Island

15. Fall City

16. Issaquah

17. Snoqualmie

18. Bothell

Why it matters: The rise in million-dollar cities reflects the trend of people moving out of the city and into the suburbs during the pandemic, as well as the millennial generation entering the homebuying market.

This shift has made areas like Bothell increasingly attractive to homebuyers.

The big picture: Washington ranks 7th in the nation for having the most million-dollar cities, with California, New York, and New Jersey taking the top three spots.

Between the lines: Despite the growing number of million-dollar cities, Zillow's chief economist, Skylar Olsen, notes that the Seattle metro area market is not showing signs of a substantial price reduction in the near future.

Instead, the fastest home price appreciation is occurring in more affordable areas near Olympia and Tacoma.

What's next: As remote work opportunities continue to influence homebuying decisions and millennials enter the housing market, the trend of rising home values in suburban areas may persist.

The bottom line: Purchasing a home in the Seattle suburbs is generally a good investment as home values increase in many different cities.

🎥 The 2024 Seattle Suburb Housing Market Will SHOCK YOU (North King & Snohomish County)

Prepare to be astounded by the unexpected twists and turns of the 2024 housing market in Seattle's North King and Snohomish County suburbs.

 🚄 Light Rail Extension to Lynnwood Set to Revolutionize Travel in August

Driving the news: Sound Transit announced that the long-awaited Link 1 Line extension from Seattle’s Northgate neighborhood to Lynnwood will commence operation on August 30, marking a significant expansion for the region's light rail system.

This 8 1/2-mile extension is a pivotal step in bridging King and Snohomish counties, enhancing transit options for thousands.

Details: The extension adds four new stations – Shoreline South, Shoreline North, Mountlake Terrace, and Lynnwood City Center – each equipped with ample parking and designed to serve as vital hubs for local and regional commuters.

This development promises to facilitate up to 55,000 daily rides by 2026, significantly easing the commute across county lines.

By the numbers: The project, exceeding $3 billion in costs due to surging property and construction expenses, faced delays and budget overruns but is now on track to offer 28-minute rides to downtown Seattle and 56-minute rides to Seattle-Tacoma International Airport from Lynnwood.

Why it matters: By connecting two major counties for the first time, this expansion fulfills a crucial aspect of the voters' vision for a comprehensive, integrated transit system across the region.

This is a significant step towards accommodating the rapid population growth in the Central Puget Sound area.

It opens up new commuting and travel options for residents of Lynnwood, Mountlake Terrace, and Shoreline, promising ease of access to key destinations like the University of Washington and South Snohomish County.

The big picture: This extension is a part of the Sound Transit 2 package, approved by voters in 2008 to address the anticipated influx of one million people over 25 years.

It shows the region's commitment to sustainable transportation solutions in the face of escalating urban density.

What’s next: In anticipation of the launch, Sound Transit is implementing measures to manage capacity and prevent overcrowding.

This includes the provision of alternative bus services between Snohomish County and Seattle, ensuring a smooth and efficient travel experience for new and existing passengers.

The bottom line: The launch of the Lynnwood Link extension is a game-changer for regional transit, offering faster, more convenient travel options that are expected to benefit the environment and improve the quality of life for thousands of commuters.

As August 30 approaches, excitement builds for the dawn of a new era in public transportation in the Seattle area.

🏠 Should You Refinance Your Mortgage in 2024? How to Know If It’s Worth It:

Driving the news: Interest rates have been on a roller coaster ride since 2020, with the Federal Reserve's actions significantly impacting mortgage rates.

There is a possibility that the Fed may cut interest rates later this year, presenting potential advantages for recent homebuyers considering a rate and term refinance.

Details: In January 2021, the 30-year fixed mortgage rate hit a record low of 2.65%, but as the Fed combatted inflation, rates increased, currently ranging between ~7% and ~8%.

When rates start to dip, many homeowners ask themselves: "Should we refinance?" This decision is particularly relevant for those who purchased homes at peak rates.

When to consider refinancing: These are some scenarios where you should look at your loan and consider refinancing:

• Lower Interest Rates: Consider refinancing if mortgage rates have decreased significantly since you took out your original loan. A rule of thumb is to refinance when you can lower your interest rate by at least 0.75 to 1 percentage point.
  

• An increase in income: If you find yourself making more money, refinancing to a shorter-term loan, like switching from a 30-year to a 15-year mortgage, can save you money in the long run. This usually increases your monthly payments but significantly reduces the total interest paid over the life of the loan.
  

• Improved Credit Score: If your credit score has improved since you first secured your mortgage, you might qualify for a lower interest rate. Lenders offer better rates to borrowers with higher credit scores, as they pose a lower risk.
  

• Removing Mortgage Insurance: Refinancing can also help you eliminate the need for mortgage insurance. This is particularly relevant if you have built up sufficient equity in your home (typically 20% or more).
  

• Tapping into Home Equity: A cash-out refinance allows you to access the equity you've built up in your home, which can be used for various purposes like debt consolidation, home improvements, or other significant expenses.

You should always consider the closing costs of refinancing and calculate the break-even point — the time it takes for the monthly savings from the new mortgage to outweigh the refinancing costs. This analysis will help you determine if refinancing is financially worthwhile.

Why it matters: Refinancing can lead to significant financial benefits, such as lower monthly payments, faster mortgage payoff, and access to home equity.

What’s next: Those who purchased homes at higher rates should watch for rate drops and consider the scenarios above to see if refinancing makes sense for them.

The bottom line: The decision to refinance a mortgage in 2024 hinges on a complex interplay of interest rates, individual financial situations, and market trends.

Homeowners should stay informed and consult with financial experts to make a plan suited for them.

📊 Our Current Local Market Data

The real estate market in Snohomish County, WA is heating up as we enter the spring months.

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.

📰 In Other News…

• Snohomish County’s biggest fire district has a new chief
  

• Japan giving Washington 250 cherry trees to replace those to be lost in construction

That’s all for today, I hope you have an amazing week!

If there’s ever anything you need:

➡️ a custom market or home value report

➡️ a home services list for a reliable contractor or services professional

➡️ feedback or a professional opinion on a home project

Just let me know! I’m here to help with all your home needs.

Talk soon,

Lisa Bender

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