The local real estate market—already the hottest in the country—set yet another price record in April. The number of homes for sale dropped 27 percent compared to a year ago, the lowest amount of inventory ever recorded for a spring month. The historically low supply of homes is making competition among buyers fierce. Sellers are in the enviable position of being able to structure sales agreements to include concessions such as rent-backs and longer closing time so they can take the time to find their next home. Eastside The median price of a single-family home on the Eastside reached an all-time high of $880,000 in April, a 21 percent jump over last April. That represents an increase of $150,000 over a year ago, the largest dollar increase on record. With our strong economy and growing population, brokers are not predicting a slowdown any time soon. King County Inventory in King County just keeps getting tighter. There are just 1,900 homes on the market here. That compares to nearly 8,000 in April 2011. As buyers bid up existing homes, prices have escalated sharply. The median price of a single-family home jumped 16 percent from the same time last year to $625,000. Seattle Seattle set a record for home prices for the third straight month. The median price of a single-family home rose 13 percent over the same time last year to $722,250. Like the rest of King County, lack of inventory was the driver. In one of the city’s hottest markets, Ballard, there are just 19 single-family homes on the market. Snohomish County Home prices in Snohomish County are rising at their fastest pace in four years. The median price of a single-family home soared 17 percent from a year ago to $440,000. While that increase is substantial, prices here are still 30 percent less than in King County.
Economic Overview I’m happy to report that Washington State continues to add jobs at a steady rate. While the rate of growth is tapering, this is because many markets are getting close to “full employment”, during which time growth naturally slows. That said, I believe that the state will add around 70,000 jobs in 2017. Washington State, as well as the markets that make up Western Washington, continues to see unemployment fall and I anticipate that we will see this rate drop further as we move through the year. In all, the economy continues to perform at or above average levels and 2017 will be another growth year. Home Sales There were 15,652 home sales during the first quarter of 2017. This is an increase of 9.5% from the same period in 2016, but 20.7% below the total number of sales in the final quarter of 2016. With an increase of 45.5%, sales in Clallam County grew at the fastest rate over the past 12 months. There were double-digit gains seen in an additional 10 counties, suggesting that demand remains very robust. The only modest decline in sales was seen in Grays Harbor County. The number of homes for sale showed no improvement at all, with an average of just 6,893 homes for sale in the quarter, a decline of 33% from the previous quarter and 25% from the first quarter of 2016. Pending sales rose by 2% relative to the same quarter a year ago. The key takeaway from this data is that 2017 will offer little relief to would-be home buyers as the housing supply remains severely constrained. Home Prices With demand continuing to exceed supply, home prices continued to rise at above-average rates. Year-over-year, average prices rose by 9.5% but were 1.1% lower than in the final quarter of 2016. The region’s average sales price is now $409,351. Price growth in Western Washington is unlikely to taper dramatically in 2017 and many counties will continue to see prices appreciate well above their long-term averages. When compared to the same period a year ago, price growth was most pronounced in Kittitas County, which rose by 19.6%. Double-digit price growth was seen in an additional 10 counties. The only market where the average price fell was in the ever-volatile San Juan County. It is clear that rising interest rates have not taken much of a sheen off the market. […]
The National Association of REALTORS® recently released their 2016 Profile of Home Buyers and Sellers. Here are a few items about sellers that I thought you’d find interesting. • The primary reason sellers choose to move is to find a larger home, or to be closer to family and friends. • The vast majority of sellers move to a new home in the same state. If you’re looking to buy or sell your home, let’s get in touch! I will help you successfully navigate the Seattle-area housing market.
While we finally saw an increase in new listings in March, there was an even greater jump in sales. Lack of supply continued to push prices to new record highs. For the fifth straight month, our region has experienced the sharpest home price increases of any major market in the country. While that may be tough news for buyers, here’s the other reality: rents in the city of Seattle have increased 57 percent in the last six years. Brokers are hoping that more sellers will jump into the market this spring to help meet buyer demand. Eastside After setting a price record in February, the Eastside set yet another record in March. The median price for a single-family home sold in March jumped 18 percent to $870,000. The strong appreciation is reflected in this statistic: For the first three months of 2017, the number of homes sold priced at $1 million or more was up 60 percent compared to the same period a year ago. What was once considered a luxury price tag is now the new normal. King County Home prices in King County are growing about twice as fast as the national average. The median price of a single-family home sold in March soared 13 percent over last year to $599,950, an all-time high. Even though new inventory was added, it was snapped up as soon as it came on the market. About 75 percent of homes sold within the first 30 days. Seattle With just two weeks of inventory available, demand in Seattle remains as strong as ever. Packed open houses, multiple offers, and escalation clauses continue to be the norm. The pressure on inventory pushed prices here to yet another all-time high. The median price of a single-family home in the city increased 9 percent over a year ago to $700,000. Snohomish County Snohomish County set a new price record for the second straight month, with the median price of a single-family home up 10 percent from a year ago to $425,000. Supply is very limited, with just over two weeks of available inventory. Buyers looking for some relief from King County’s hefty housing prices are adding to the competition for a limited supply of homes.
Now that spring has sprung, let’s clear the cobwebs and get your home ready! Here is our quick guide to spring home maintenance: Inspection top to bottom: Now that the weather is temperate you will want to check on how your home weathered the winter. Check the roof for leaks, the gutters for damage, and the siding for cracks. You will also want to inspect your basement or foundation for any shifts. Make repairs now to prevent further damage. Clean out the gutters: April showers bring May flowers… so clear out the gutters to keep rain from pooling on your roof or near your foundation. Pest control: Spring is mating season for eight legged critters, so sweep out cobwebs, clear debris, and check the nooks and crannies. If you live in an area prone to dangerous species like brown recluse or black widows, you may want to contact your local pest control, but otherwise household spiders do help eliminate other bugs. Check your basement and attic for signs of other infestations. For more information on pest control go here: http://www.windermere.com/blogs/windermere/categories/living/posts/when-things-go-bump-in-the-night HVAC system: If you have an air conditioner now is the time to check to make sure it is ready before summer gets here and everyone else is clamoring for maintenance. Now is a good time to check your home air filters and replace or upgrade to keep allergens at bay. Clear the clutter: Do a sweep around the house and get rid of junk that you don’t use! Take a little time each week to tackle a room. Closets, playrooms, and basements can be especially daunting, but getting rid of old stuff and refreshing your space will go a long way! Deep clean: On a nice day open the windows, dust, wipe, scrub, and clean. You will get a nice work out and your home will look and feel so fresh after a winter of being cooped up. Update your décor: Add a splash of color to your home with small embellishments. Add a colorful vase, a lighter throw for your sofa, pretty pastel pillows, or spring-time candles, to upgrade your living space. Take it outdoors: Let your throw rugs, curtains, and other tapestries air our outside. Shake off the dust, spot clean what you can and let everything bask in the sun for an afternoon. Don’t forget the back yard: It may not be time to start up […]
The National Association of REALTORS® recently released their 2016 Profile of Home Buyers and Sellers. Here are a few items about buyers that I thought you’d find interesting. • The top reason buyers purchase a home is they want a place of their own. • Buyers chose homes fairly close to their last residence. In our region, buyers purchase a home within a 13 mile radius of their last residence. If you’re looking to buy or sell your home, let’s talk! I will help you successfully navigate the Seattle housing market.
The typical winter cooldown is over and it seems like a scorching spring housing market is already underway in the greater Seattle area. Recent statistics reported by The Seattle Times show “home prices in Seattle have nearly doubled over the last five years,” while the number of homes for sale has hit its lowest point since available records began in 2000. Home prices in King County jumped up 6.7 percent last month from the month before giving us the biggest one-month jump since early 2015 according to The Seattle Times. The biggest increase, the report continues, hit the suburbs. This sharp increase comes after a few months of slower price growth that is typical of winter months. Does this symbolize an early start to the spring market? When you combine these high prices with low inventory, an abysmal 1,400 homes available across King County last month, it would seem so. Our inventory has become so low that fewer people are even wanting to sell their homes. KOMO News reports that our housing market is now facing “seller gridlock” because owners are not selling since they do not have any good options available for buying or upgrading their homes. KOMO also explains homes are being purchased faster than new listings can even hit the market. According to the same article, not many expect the typical springtime increase in inventory to meet the demand our area is currently facing and could be facing for some time. Key advice many are sharing is to get started in the spring market sooner rather than later. Right now is the perfect time for sellers to get the most out of their home and take advantage of current market conditions. Read more from The Seattle Times and KOMO News.
We are often asked, “Which is the better buy, a newer or older home?” Our answer: It all depends on your needs and personal preferences. We decided to put together a list of the six biggest differences between newer and older homes: The neighborhood Surprisingly, one of the biggest factors in choosing a new home isn’t the property itself, but rather the surrounding neighborhood. While new homes occasionally spring up in established communities, most are built in new developments. The settings are quite different, each with their own unique benefits. Older neighborhoods often feature tree-lined streets; larger property lots; a wide array of architectural styles; easy walking access to mass transportation, restaurants and local shops; and more established relationships among neighbors. New developments are better known for wider streets and quiet cul-de-sacs; controlled development; fewer aboveground utilities; more parks; and often newer public facilities (schools, libraries, pools, etc.). There are typically more children in newer communities, as well. Consider your daily work commute, too. While not always true, older neighborhoods tend to be closer to major employment centers, mass transportation and multiple car routes (neighborhood arterials, highways and freeways). Design and layout If you like Victorian, Craftsman or Cape Cod style homes, it used to be that you would have to buy an older home from the appropriate era. But with new-home builders now offering modern takes on those classic designs, that’s no longer the case. There are even modern log homes available. Have you given much thought to your floor plans? If you have your heart set on a family room, an entertainment kitchen, a home office and walk-in closets, you’ll likely want to buy a newer home—or plan to do some heavy remodeling of an older home. Unless they’ve already been remodeled, most older homes feature more basic layouts. If you have a specific home-décor style in mind, you’ll want to take that into consideration, as well. Professional designers say it’s best if the style and era of your furnishings match the style and era of your house. But if you are willing to adapt, then the options are wide open. Materials and craftsmanship Homes built before material and labor costs spiked in the late 1950s have a reputation for higher-grade lumber and old-world craftsmanship (hardwood floors, old-growth timber supports, ornate siding, artistic molding, etc.). However, newer homes have the benefit of modern materials and more advanced building […]
Home prices are growing faster in our region than anywhere else in the country. After a brief slowdown last month, home prices in February jumped to new record highs. The reason? The lowest number of homes for sale on record. The surge in prices came well ahead of the normal seasonal spring uptick, adding even greater urgency among buyers competing for already severely limited inventory. It remains to be seen if the predicted hike in interest rates will help moderate the market. For now, sellers are calling the shots. Eastside The Eastside, always the most expensive area in King County, set a new price record in February. The median price for homes sold in February soared 12 percent to $832,000. That’s nearly $100,000 more than the same time last year. With less than one month of available inventory, this seller’s market is expected to continue for quite some time. King County A recent trend of slowing price growth reversed itself in February. The number of homes for sale in King County was at its lowest point since 2000, when records first started being tracked. That is down 25 percent from a year ago. The deep shortage of inventory resulted in a sharp increase in prices. The median price of a single-family home was up 9 percent over last year to $560,000. Seattle The median price of a single-family home in the city increased 5 percent over a year ago to $675,000, another all-time high. Prices here have nearly doubled over the last five years. While areas of King County outside of Seattle are more affordable, prices there are growing even faster. The median price of homes in North, Southwest and Southeast King County all increased by double-digits in February. Snohomish County After a softening of price increases over the past few months, Snohomish County saw record high prices in February. The median price of a single-family home jumped 15 percent as compared to a year ago to $412,500. With less than one month of supply in the county, brokers expect prices to remain strong.
Thinking of listing your home? Sellers today stand to benefit from a perfect storm of market conditions that are delivering the greatest possible return on investment. Record-Low Inventory: Fewer than 1,600 single-family homes were on the market in King County last month, an all-time low. Record High Prices: Prices are at historic highs, and are rising faster than anywhere else in the country. So, why not just wait and see if prices go even higher? Just like with the stock market, it’s impossible to time the housing market. However, experts have predicted price increases to slow this year, and prices here are already showing signs of moderating. In addition, interest rates are expected to go up this year. A majority of the members of the Federal Reserve’s rate-setting board predict there will be three more increases coming in 2017. These increases will cause mortgage rates to rise, which means buyers will only qualify for less expensive homes. This reduced purchasing power starts slowing buyer demand. It’s the perfect time to list your home. Are ready to get started? I can prepare a valuation of your home based on current market conditions, walk you through the process, and answer any questions you may have.