The Effects of Today's Mortgage Rates on Your Home Purchase

The Effects of Today's Mortgage Rates COVER

It's vital to understand the relationship between mortgage rates and your purchasing power if you're going to buy a property. The amount of housing you can afford to buy within your financial means is referred to as purchasing power. Mortgage rates have a direct impact on the monthly payment you'll make on your new house. As a result, as interest rates climb, so does the monthly payment you can lock in on your home loan. That could limit your future purchasing power in a rising-rate climate like the one we're in now.

The average 30-year fixed mortgage rate is currently around 5%, and analysts predict that it will rise in the coming months. If you buy now, before the increase affects your purchasing power, you can get ahead of the game.

Mortgage Rates Have a Significant Impact on Your Purchasing Power.

The graph below shows the overall link between mortgage rates and a common monthly mortgage payment for various loan amounts. Let's say your finances allow for a $2,100-$2,200 monthly mortgage payment. The green in the graph represent a payment that is within that range, while the red represents a payment that is outside of that range (see graph below):

As the graph demonstrates, unless you pursue a smaller home loan amount, you're more likely to surpass your desired payment range as mortgage rates rise. If you're ready to buy a home, use this as encouragement to do it now, before interest rates rise and you have to decide whether or not to reduce the amount you borrow to keep inside your budget.

Consult with a Trusted Adviser to Understand Your Budget and Develop a Strategy

When looking for a property, it's vital to keep your budget in mind. The easiest way to express it is as follows,

Get preapproved with today's rates, but also think about what would happen if rates rose another quarter of a point,... Know what that would mean for your monthly bills and how comfortable you are with it so that if rates do rise, you'll already know how to adjust.

Whatever the case may be, the ideal method is to collaborate with your real estate agent and a reputable lender to develop a strategy that takes rising mortgage rates into account. Together, you may examine your budget in light of current rates and devise a strategy for adjusting when rates change.

In Conclusion

Even minor increases in mortgage rates can have an effect on your purchasing power. If you're in the market for a home, having a solid plan is more important than ever. Work with a trusted real estate advisor and lender to plan your strategy for achieving your dream of homeownership this spring.

🚨 Here it is folks! The MAY 2022 Whidbey Island Real Estate Market Update (rolling 12-month report). CLICK HERE TO GET THE PRINTABLE PDF!

 

🗺️ Stats are separated by area: South, Central, & North Whidbey, and incorporate data from the 12 months prior to our current month.

 

🏡All stats represent only the residential & condo sales, except for the ones specifically for vacant land. May not represent all market activity.

 

If you want help interpreting this data and what it means for you. Feel free to message us and setup a free buyers or sellers consultation.

 

📱 360 331 6006

✉️ whidbeyinfo@windermere.com

🤗 Enjoy!

 

#wearewhidbey #windermereEconomics

Created by Si Fisher

.

.

.

Data supplied by the NWMLS. Neither the

Board or its MLS guarantees its accuracy. May

not reflect all real estate activity in the market.

Q1 2022 Western Washington Real Estate Market Update

CLICK HERE FOR PRINTABLE PDF VERSION

 

The following analysis of select counties of the Western 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 post-COVID job recovery continues. Though data showed the number of jobs dropped in January, February saw gains that almost offset the jobs lost the prior month. As of February (March data is not yet available), the region had recovered all but 47,000 of the more than 300,000 jobs lost due to the pandemic. Of note is that employment levels in Grays Harbor, Thurston, San Juan, and Clallam counties are now above their pre-pandemic levels. In February, the regional unemployment rate rose to 4.1% from 3.7% in December. Although this may be disconcerting, an improving economy has led more unemployed persons to start looking for a job, which has pushed the jobless rate higher. I expect the regional economy to continue expanding as we move into the spring and summer, with a full job recovery not far away.

Western Washington Home Sales

❱ In the first quarter of 2022, 15,134 homes sold, representing a drop of 5.8% from the same period a year ago, and down 31.7% from the fourth quarter.

❱ Yet again, supply-side constraints limited sales. Every county except Snohomish showed lower inventory levels than a year ago.

❱ Sales grew in five counties across the region but were lower across the balance of the counties contained in this report. Compared to the fourth quarter, sales were lower across all market areas.

❱ The ratio of pending sales (demand) to active listings (supply) showed pending sales outpacing listings by a factor of 6.7. Clearly, the significant jump in mortgage rates in the first quarter has not yet impacted demand. Rather it appears to have stimulated buyers partly due to FOMO (Fear of Missing Out)!

A bar graph showing the annual change in home sales for various counties in Western Washington between Q1 2021 and Q1 2022.

Western Washington Home Prices

❱ Although financing costs have jumped, this has yet to prove to be an obstacle to buyers, as prices rose 16.4% year-over-year to an average of $738,152. Naturally, there is a lag between rates rising and any impact on market prices. It will be interesting to see what, if any, effect this has in the next quarter’s report.

❱ Compared to the same period a year ago, price growth was again strongest in San Juan County, but all markets saw prices rising more than 10% from a year ago.

❱ Relative to the final quarter of 2021, all but Kitsap (-2.7%), Mason (-1.5%), Skagit (-1.8%), Jefferson (-6.3%), and Clallam (-0.1%) counties saw home prices rise.

❱ The market remains supply starved. While increases in “new” listings suggest that more choice is coming to market, it remains insufficient to meet demand.

A map showing the year-over-year real estate market percentage changes in various counties in Western Washington for Q1 2022.

A bar graph showing the annual change in home sale prices for various counties in Western Washington from Q1 2021 to Q1 2022.

Mortgage Rates

Average rates for a 30-year conforming mortgage were 3.11% at the end of 2021, but since then have jumped over 1.5%—the largest increase since 1987. The surge in rates is because the market is anticipating a seven- to eight-point increase from the Federal Reserve later this year.

Because the mortgage market has priced this into the rates they are offering today, my forecast suggests that we are getting close to a ceiling in rates, and it is my belief that they will rise modestly in the second quarter before stabilizing for the balance of the year.

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

Western Washington Days on Market

❱ It took an average of 25 days for a home to go pending in the first quarter of 2022. This was 4 fewer days than in the same quarter of 2020, but 2 days more than in the fourth quarter of 2021.

❱ Snohomish, King, and Pierce counties were the tightest markets in Western Washington, with homes taking an average of 11 to 15 days to sell. The greatest drop in market time compared to a year ago was in San Juan County, where it took 23 fewer days for homes to sell.

❱ All but five counties saw average time on market drop from the same period a year ago, but the markets where it took longer to sell a home saw the length of time increase only marginally.

❱ Quarter over quarter, market time dropped in Snohomish, King, and Pierce counties. Jefferson and Clallam counties also saw modest improvement. In the balance of the region the length of time a home was on the market rose, but seasonality undoubtedly played a part.

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

Conclusions

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 numbers have yet to indicate that demand is waning amid rising interest rates, but this is sure to become a greater factor as we move into the spring. A leading indicator I pay attention to is changes to list prices and, in most counties, these continue to increase. This suggests that sellers remain confident they will be able to find a buyer even in the face of higher borrowing costs. If this pace of increase starts to soften, it may be an indication of an inflection point, but it does not appear to be that way yet.

A speedometer graph indicating a seller's market in Western Washington during Q1 2022.

Given all the factors discussed above, I have decided to leave the needle in the same position as the last quarter. The market still heavily favors sellers, but if rates rise much further, headwinds will likely increase.

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.

This Blog Entry Originally Appears on Windermere.com CLICK HERE TO VIEW

This video is the latest in our Monday with Matthew series with Windermere Chief Economist Matthew Gardner. Each month, he analyzes the most up-to-date U.S. housing data to keep you well-informed about what’s going on in the real estate market. 

 

Hello there, I’m Windermere’s Chief Economist Matthew Gardner, and welcome to this month’s episode of Monday with Matthew. With home prices continuing to defy gravity, mortgage rates spiking, the Fed raising interest rates significantly, a yield curve that is just keeping its nose above water, and some becoming vocal about the possibility that we are going to enter a recession sooner rather than later, it’s not at all surprising that many of you have been asking me whether the housing market is going to pull back significantly, and a few of you have asked whether we aren’t in some sort of “bubble” again.

Because this topic appears to be giving many of you heartburn, I decided that it’s a good time to reflect on where the housing market is today and give you my thoughts on the impact of rising mortgage rates on what has been an historically hot market.

The Current State of the U.S. Housing Market

Home Sale Prices

As usual, a little perspective. Between 1990 and the pre-bubble peak in 2006, home prices rose by 142%, which was a pretty impressive annual increase of 5.6% over a 16 1/2-year period. When the market crashed, prices dropped by 33%, but from the 2012 low to today, prices have risen by 131%, or at an even faster annual rate of 8.6% over a shorter period of time—10 years.

You may think that prices rising at an annual rate that exceeds the pace seen before the market crash is what has some brokers and home buyers concerned, but that really isn’t what has many people scared. It’s this.

Mortgage Rates in 2022

At the start of 2022, the average 30-year fixed mortgage rate was just a little above 3%. But, over a brief 15-week period, they have skyrocketed to 5%. This has led some to worry that the market is about to implode. Of course, nobody can say that the run-up in home prices hasn’t been phenomenal over the past few years, and it’s certainly human nature to think that “what goes up, must come down,” but is there really any reason to panic? I think not, and to explain my reasoning, let’s look back in time to periods when rates rose significantly and see how increasing mortgage rates impacted the marketplace.

Housing and Mortgage Markets During Times of Rising Rates

This table shows seven periods over the past 30 years when mortgage rates rose significantly. On average, rates trended higher for just over a year before pulling back, and the average increase was 1.4%. But now look at how it impacted home prices: it really didn’t. On average, during these periods of rising financing costs, home prices still rose by just over 5%.  Clearly, not what some might have expected. But there were some negatives from mortgage rates trending higher, and these came in the form of lower sales in all but one period and new housing starts also pulled back.

So, if history is any indicator, the impact of the current jump in mortgage rates is likely to be seen in the form of lower transactions rather than lower prices. And this makes sense. Although rising financing costs puts additional pressure on housing affordability, what people don’t appear to think about is that mortgage rates actually tend to rise during periods of economic prosperity. And what does a flourishing economy bring? That’s right. Rising wages. Increasing incomes can certainly offset at least some of the impacts of rising mortgage rates.

Static Equilibrium Analysis – 1/3

To try and explain this, I’m using the median US sale price in February of this year, assuming a 20% down payment and the mortgage rate of 4%. And you can see that the monthly P&I payment would be $1,365. But as mortgage rates rise, and if buyers wanted to keep the same monthly payment, then they would have to buy a cheaper home. Using a rate of 5%, a buyer could afford a home that was 9% cheaper if they wanted to keep the payment the same as it would have been if rates were still at 4%.

But, as I mentioned earlier, an expanding economy brings higher wages, and this is being felt today more than usual, given the worker shortage that exists and businesses having to raise compensation. Average weekly wages have risen by over five-and-a-half percent over the past year—well above the pre-pandemic average of two-and-a-half percent. Although increasing incomes would not totally offset rising mortgage rates, it does have an impact.

Static Equilibrium Analysis – 2/3

To demonstrate this, let’s use the U.S. average household income of $70,611.  Assuming that they’ve put aside 20% of their gross income for a down payment, they could afford a home priced just under $360,000 if mortgage rates were at 4%. As rates rise—and assuming that their income doesn’t—their buying power is reduced by over 10%, or just over $38,000.

Static Equilibrium Analysis – 3/3

But if we believe that incomes will rise, then the picture looks very different. Assuming wages rise by 6%, their buying power drops by just 5% if rates rose from 4% to 5%, or a bit less than $19,000.

Although rates have risen dramatically in a short period, because they started from an historic low, the overall impacts are not yet very significant. If history is any indicator, mortgage rates increasing are likely to have a more significant impact on sales, but a far smaller impact on prices.

But there are other factors that come into play, too. Here I’m talking about demand. The only time since 1968 that home prices have dropped on an annualized basis was in 2007 through 2009 and in 2011, and this was due to a massive increase in the supply of homes for sale. When supply exceeds demand, prices drop.

So, how is it different this time around? Well, we know that the supply glut that we saw starting to build in mid-2006 was mainly not just because households were getting mortgages that, quite frankly, they should never have gotten in the first place, but a very large share held adjustable rate mortgages which, when the fixed interest rate floated, they found themselves faced with payments that they could not afford. Many homeowners either listed their homes for sale or simply walked away.

Although it’s true that over the past two or so months more buyers have started taking ARMs as rates rose, it’s not only a far smaller share than we saw before the bubble burst, but down payments and credit quality remained far higher than we saw back then.

So, if we aren’t faced with a surge of inventory, I simply don’t see any reason why the market will see prices pull back significantly. But even if we do see listing activity increase, I still anticipate that there will be more than enough demand from would-be buyers. I say this for several reasons, the first of which is inflation.

What a lot of people aren’t talking about is the proven fact that owning real estate is a significant hedge against rising inflation. You see, most buyers have a mortgage, and a vast majority use fixed-rate financing. This is the hedge because even as consumer prices are rising, a homeowner’s monthly payments aren’t.  They remain static and, more than that, their monthly payments actually become lower over time as the value of the dollar diminishes. Simply put, the value of a dollar in—let’s say 2025—will be lower than the value of a dollar today.

But this isn’t the only reason that inflation can actually stimulate the housing market. Home prices historically have grown at a faster pace than inflation.

Hedge Against Inflation

This chart looks at the annual change in total CPI going back to 1969. Now let’s overlay the annual change in median U.S. home prices over the same time period. Other than when home prices crashed with the bursting of the housing bubble, for more than fifty years home price growth has outpaced inflation. And this means we are offsetting high consumer prices because home values are increasing at an even faster rate.

But inflation has additional impacts on buyers. Now I’m talking about savings. As we all know, the interest paid on savings today is pretty abysmal. In fact, the best money market accounts I could find were offering interest rates between 0.5% and 0.7%. And given that this is significantly below the rate of inflation, it means that dollars saved continue to be worth less and less over time while inflation remains hot.

Now, rather than watching their money drop in value because of rising prices, it’s natural that households would look to put their cash to work by investing in assets where the return is above the rate of inflation—meaning that their money is no longer losing value—and where better place to put it than into a home.

Housing as a Hedge Against Inflation

So, the bottom line here is that inflation supports demand from home buyers because:

  1. Most are borrowing at a fixed rate that will not be impacted by rising inflation
  2. Monthly payments are fixed, and these payments going forward become lower as incomes rise, unlike renters out there who continue to see their monthly housing costs increase
  3. With inflation at a level not seen since the early 1980s, borrowers facing 5% mortgage rates are still getting an amazing deal. In fact, by my calculations, mortgage rates would have to break above 7% to significantly slow demand, which I find highly unlikely, and
  4. If history holds true, home price appreciation will continue to outpace inflation

Demand appears to still be robust, and supply remains anemic. Although off the all-time low inventory levels we saw in January, the number of homes for sale in March was the lowest of any March since record keeping began in the early 1980’s.

But even though I’m not worried about the impact of rates rising on the market in general, I do worry about first-time buyers. These are households who have never seen mortgage rates above 5% and they just don’t know how to deal with it! Remember that the last time the 30-year fixed averaged more than 5% for a month was back in March of 2010!

And given the fact that these young would-be home buyers have not benefited from rising home prices as existing homeowners have, as well as the fact that they are faced with soaring rents, making it harder for them to save up for a down payment on their first home, many are in a rather tight spot and it’s likely that rising rates will lower their share of the market.

So, the bottom line as far as I am concerned is that mortgage rates normalizing should not lead you to feel any sort of panic, and that current rates are highly unlikely to be the cause of a market correction.

And I will leave you with this one thought. If you agree with me that a systemic drop in home prices has to be caused by a significant increase in supply, and that buyers who are currently taking out adjustable-rate mortgages are more qualified, and therefore able to manage to refinance their homes when rates do revert at some point in the future, then what will cause listings to rise to a point that can negatively impact prices?

It’s true that a significant increase in new home development might cause this, but that is unlikely. And as far as existing owners are concerned, I worry far more about a prolonged lack of inventory. I say this for one very simple reason and that is because a vast majority off homeowners either purchased when mortgage rates were at or near their historic lows, or they refinanced their current homes when rates dropped.

And this could be the biggest problem for the market. Even if rates don’t rise at all from current levels, I question how many owners would think about selling if they were to lose the historically low mortgage rates that they have locked into. It is quite possible that for this one reason, we may experience a tight housing market for several more years.

As always, if you have any questions or comments about this particular topic, please do reach out to me but, in the meantime, stay safe out there and I look forward to visiting with you all again next month.

Bye now.

This blog entry was originally posted on Windermere.com and can be viewed HERE

🚨 Here it is folks! The April 2022 Whidbey Island Real Estate Market Update (rolling 12-month report). CLICK HERE TO GET THE PRINTABLE PDF!

 

🗺️ Stats are separated by area: South, Central, & North Whidbey, and incorporate data from the 12 months prior to our current month.

 

🏡All stats represent only the residential & condo sales, except for the ones specifically for vacant land. May not represent all market activity.

 

If you want help interpreting this data and what it means for you. Feel free to message us and setup a free buyers or sellers consultation.

 

📱 360 331 6006

✉️ whidbeyinfo@windermere.com

🤗 Enjoy!

 

#wearewhidbey #windermereEconomics

Created by Si Fisher

.

.

.

Data supplied by the NWMLS. Neither the

Board or its MLS guarantees its accuracy. May

not reflect all real estate activity in the market.

🚨 Here it is folks! The March 2022 Whidbey Island Real Estate Market Update (rolling 12-month report). CLICK HERE TO GET THE PRINTABLE PDF!

 

🗺️ Stats are separated by area: South, Central, & North Whidbey, and incorporate data from the 12 months prior to our current month.

 

🏡All stats represent only the residential & condo sales, except for the ones specifically for vacant land. May not represent all market activity.

 

If you want help interpreting this data and what it means for you. Feel free to message us and setup a free buyers or sellers consultation.

 

📱 360 331 6006

✉️ whidbeyinfo@windermere.com

🤗 Enjoy!

 

#wearewhidbey #windermereEconomics

Created by Si Fisher

.

.

.

Data supplied by the NWMLS. Neither the

Board or its MLS guarantees its accuracy. May

not reflect all real estate activity in the market.

🚨 Here it is folks! Your year-to-date Whidbey Island Real Estate Market Update.  CLICK HERE TO GET THE PRINTABLE PDF!

 

🗺️ Stats are separated by area: South, Central, & North Whidbey.

 

🏡All stats represent only the residential & condo sales, except for the ones specifically for vacant land. May not represent all market activity.

 

If you want help interpreting this data and what it means for you. Feel free to message us and setup a free buyers or sellers consultation.

 

📱 360 331 6006

✉️ whidbeyinfo@windermere.com

🤗 Enjoy!

 

#wearewhidbey #windermereEconomics

Created by Si Fisher

.

.

.

Data supplied by the NWMLS. Neither the

Board or its MLS guarantees its accuracy. May

not reflect all real estate activity in the market.

The gifts are all open, the excitement and anxious anticipation for December 25th has come and gone. Any friends/family that did come to visit have already, or are soon to be, returning home and we are left here sitting with the aftermath of Christmas, surrounded by crumpled wrapping paper and half-torn bows. Honestly, after this year, most of us are still holding onto the twinkle of the lights because nobody is quite ready to let the spirit of Christmas go.

After Christmas

Scrolling through the Facebook feed it’s easy to see we are not alone in this feeling and, if you are reading this, you likely aren’t either.

The sudden calm right after Christmas can leave us feeling dazed. It’s a shock to the system when you realize how much post-holiday cleanup there is to complete. Where does one begin when it comes to reorienting your home back to normal and even more so this year because… well… what is normal anymore?

To help you get back on your feet we have 6 ideas for keeping the celebratory spirit rolling well into the New Year and help you with the transition back to some kind of normalcy in your home.

  1. Throw a virtual 2021 bash for the New Year!
  2. Make room for the new!
  3. Donate the old…
  4. Give to the food bank.
  5. Throw a touchless regifting party.
  6. Recycle your tree!

THROW A VIRTUAL 2021 BASH FOR THE NEW YEAR!

What are we supposed to do now, Virtual Bash, New Years, 2021

Keep the Christmas tree and decorations up! Add 2021 balloons and YES… The answer is, yes girl, buy the dress! It makes you feel good, and even though you are home you are still going to be seen during your virtual party and your posts online. Even better, HELP THE SMALL BUSINESS OWNER DO THE BOOGIE AND BUY THE DRESS LOCAL! Here is a list of some great places on Whidbey Island to find a dress…

MAKE ROOM FOR THE NEW…

Begin by figuring out what you want to get rid of. Then determine where it should go. Not everything should go in the trash, you can recycle, donate, even regift!

Start by recycling

“Did you know that household waste increases by more than 25% from Thanksgiving to New Years?” (King5)

It is not hard to figure out why this increased waste occurs. However, it does not make the statistic any less startling. To put that in perspective, since the average American produces about 4.5 lbs of waste a day (EPA); Whidbey Island theoretically produces an additional 3,500 TONS of waste every holiday season. If there was ever a stat to make you want to recycle, that should be it! However, to be an effective recycler, you need to know what can and what can’t go in that little blue bin of yours. So, here’s a quick rundown of what can and can’t go in your recycling bin.

What to do with my stuff, windermere suggestions, what are we supposed to do now

CAN Recycle:

  • Cardboard boxes
  • Plain paper boxes and bags
  • Plain wrapping paper
  • Holiday cards (without embellishments)
  • Tissue paper

CANNOT Recycle:

  • Bubble wrap
  • Cellophane
  • Tinsel
  • Plastic bags
  • Holiday lights
  • Ribbons
  • Bows
  • Foam packaging

DONATE THE OLD

This time of year, your home can feel a bit cramped and cluttered with the addition of all those great new gifts. What better way to start the New Year than with a mini overhaul? Start by getting rid of your junk… BUT, just because you might not have a use for some of your older items doesn’t mean it’s worthless. Help keep useful things out of the landfill this year and DONATE!  Once you and your loved ones have decided which items they can bear to part with there are a few choices on where you can donate. Below are some of Whidbey’s second-hand shops and charities that accept lightly used items.

what next, donate, make space, live clutter free, what are we supposed to do now

GIVE TO THE FOOD BANK

It is easy to get caught up in buying food for the holidays and during that generous and abundant mood our food banks are typically full.  It’s the time immediately after the holidays that can be especially difficult for charities and food banks. The financial exasperation many experience after the holidays can cause an all-out stop to donations for a while but, unfortunately, needs don’t just stop because Christmas is over. Donating to charities and especially food banks is something critical to do throughout the year and not just in November and December. Below are some local food banks who could do a great amount of good with your post-Christmas donations.

Donate, what are we supposed to do now

THROW A TOUCHLESS REGIFTING PARTY

We all have that one gift (or 5) that we simply did not want or need. Yes, Aunt Kathy meant well, but what on earth are you going to do with a crochet pillow of her cat? Often these gifts are begrudgingly placed deep into the depths of our closets never to be seen again (or at least not for a few years). However, it does not have to be this way! We know you are not a fan of seeing Whisker’s face on a pillow every day, but who is to say your friend Bethany might not LOVE it, or at least cause a chuckle? Unwanted gifts do not need to sit gathering dust in the closet, especially when there’s a simple solution of how to pass that hot potato on to someone else! Ha!

throw a touchless party, regift, 2021, what are we supposed to do now

So, throw the party! Just get creative in how you do it!

Regifting Parties are basically White Elephants thrown after Christmas with the intention of finding better homes for those unwanted gifts. The concept and rules for the Regifting Game is simple and match White Elephants almost exactly. Invite friends (heck let your friends invite their friends the more the merrier and its virtual so if you don’t like them it’s not really a big deal) give everyone a number and when chosen unwrap your gift to reveal, then deliver, or give everyone an address and drop off your random gift and have fun discovering new treasures! Don’t want to figure out the logistics yourself? Use this easy and free online tool to organize your White Elephant Re-gift Exchange today!

LAST BUT NOT LEAST, ITS TIME TO RECYCLE YOUR TREE

Soon that fresh pine smell is going to leave (if it hasn’t already). If you are like the rest of us who set up our trees a month earlier than normal, your clean floors are beginning to be covered in pine needles. So, start thinking now how you are going to prevent the headache of getting rid of the tree without upsetting your neighbors when your tree is still laying on the side yard in May. I know, it is always sad, especially this year when the time comes to take down the Christmas tree, but like every other year, the end of thousands of needles in your vacuum will come as a relief.

If you live in a house with a wood-burning fireplace it might be a little tempting to chop it up and throw it in, but this is a BAD IDEA. When pine needles catch on fire they do not burn slowly like wood, but instead, spark out in all directions which can be a huge fire hazard in a home. Instead, what you should do is deposit your tree at one of the Island’s Solid Waste drop-off locations where they can be put with other yard waste and recycled properly.

Recycle your tree, christmas is over, hold on tight, new years, windermere, what are we supposed to do now, all in for you

We hope your transition into 2021 is smooth and peaceful! Please share with us any other ideas you have for easing out of one season and into the next.

Thank you, your Windermere Whidbey Team!

If you liked this, you might also like:

Dog Parks On Whidbey, Windermere Whidbey, Whidbey Island

Plan your Trip to Langley

A Little History Before You Plan Your Trip to Langley

On the southern side of Whidbey Island along the Saratoga Passage lies the lovely little town of Langley. With a population of just over one thousand, this quaint town is home to a creative culture and endless entertainment.

Langley’s history has led to its unique and diverse culture. Established in 1891, Langley served as South Whidbey’s trading center for all types of goods with the wharf connecting island merchants to Everett and Seattle. In the 60s and 70s, that same wharf brought in a wave of hippies who would forever shift the culture of South Whidbey.

Although Langley’s docks no longer see the traffic they once did, downtown is filled with remnants of the original trades-town married beautifully with the artistic culture of the mid-century hippies. It’s quite a treat to visit. If you get the chance to spend a day in Langley and aren’t sure what to do, you’re in luck! We’ve created an itinerary for the perfect one-day trip in Langley. Just don’t forget your mask and keep a social distance! 

Itinerary for Day Trip to Langley

Coffee at Useless Bay

Enjoy some amazing early morning coffee from this local roaster to give yourself an extra boost at the beginning of your day. Between the friendly baristas, great drinks, and buzzing atmosphere you’ll be excited to return to this cafe over and over. 

View this post on Instagram

A post shared by Useless Bay Coffee (@uselessbaycoffee) on

Breakfast at The Braeburn 

BEST. BREAKFAST. EVER. Or at least it’s hard to top. The Braeburn has an amazing assortment of breakfast choices ranging from light and sweet pastries to hearty mashes and breakfast burritos. There’s something for everyone!

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Morning Stroll Down Seawall Park

When you make your way out of The Braeburn you might consider taking a stroll down Langley’s Seawall Park. This seaside park is full of beautiful art that pays tribute to past island tribes and a walking path to help you get the most out of the beautiful view.

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Lunch at Ultra House

Ready for lunch? This ramen house is tucked away in the dead center of Langley village and serves absolutely incredible food! Enjoy slurping noodles and sipping broth and feeling like you’re another world away.

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Ice Cream at Sprinklz

What better way to end lunch than with some sweets?! Sprinklz is a local favorite when it comes to ice cream. It’s hard to beat their fun store or their incredible old fashioned ice cream. 

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Explore Downtown and the Star Store

Even though a few of the Langley shops have closed their doors during the pandemic, The Star Store alone could keep anyone’s attention for quite some time. This century-old mercantile seamlessly transitions from produce to products and more. 

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End the Night at the Taproom at Bayview

What better way to end the night than with some comfort food and a good beer? Bayview Taproom provides that and much more. You’ll love this community watering hole for its juicy burgers, kind servers, and joyful atmosphere. 

 

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