Seattle Real Estate Market News from Amie and David Sprague

May 2008

  Snow in Seattle on the 20th of April? Is spring really here? If I had not seen it with my own eyes…The real estate Market is “cool” locally. It is not cold or dead as the media would have you believe. As more mortgage programs become available, we are seeing more activity in the residential market. Our Seattle/Bellevue commercial real estate market is booming and currently apartment rentals are becoming scarce, with rent increases becoming the norm. One strong factor that we have seen over time is that when the market tightens up, the resale market always sees an increase in sales and prices. With the current national market affecting us here, we may not see the usual bump up in home prices; however there are strong signs of a great local economy. King county’s median price for a single-family home (new and resale) was $439,000.00 last month, down 3.3% from this time in 2007. That figure represents only an 8 ½ % drop in prices locally since last summer. Not bad considering that in some places in the country values have dropped up to 30% in the last 12 months. Some economists say they believe the slide in sales may be close to ending, although any rebound is likely to be slow and anemic, with prices continuing to fall, possibly until this time next year.
  Still, economist say they believe that the extent of the downturn may be signaling that  in terms of sales, things could level out by this summer, or by the latest this fall, as falling prices lure buyers back into the market.
  Economic growth slowed to a standstill at the end of last year as the economy was battered by the prolonged slump in housing and a severe credit crunch that has resulted in billions of dollars of losses for many of the nation’s largest financial institutions.
  As funds and additional loan products become available, more people will return to the buyers market.
  Around 80% of today’s home buyers have their current home on the market, so most of them cannot make a move until they sell their existing home. This represents a large number of buyers that are ready to make a move once the market picks up.
  Here is my prediction: We are close to the “tipping point” as we are seeing increased activity and sales, just as we do at this same time each and every year. Don’t believe the gloom and doom. We are looking great here in the greater Seattle market! 

 

 

April 2008

 

 

March 2008

Dodging a bullet in the Pacific Northwest

I am sure you have heard about the dark cloud hovering over the nation’s real estate market.  The numbers are in and we are not following the rest of the country.  Our combined value of homes and condos here in King County has risen over the last 12 months 4%.  This is outstanding compared to the numbers that we are looking at nationally.  King County’s sales numbers are in for January and we saw a 30% drop in the number of sold properties… Things have definitely slowed, but they have not stopped here locally.
A big reason for our strong market is our employment numbers for the region.  Our strong economy is driving up our population yet locally “managed growth” has kept the market from meeting the housing demand.  The result is a huge demand for median priced homes.  That demand continues to deplete the supply of properties in the price ranges most people are shopping in.
Home buyers are being influenced by the media.  They hear about the deflating national home market and it is making people cautious.  Prices have not declined here, it just that the numbers of sales has slowed. 
We feel that our market is strong based on these factors and we expect the housing prices here to continue to rise, just at a more moderate rate.
A few facts…
Here is Washington the median age of home buyers was 38, the median for 1st time home buyers was 31.  2006 median income for area home buyers was $74,000.  63% were married couples.  A whopping 91% of home buyers used the internet in their search for a home. Go figure!

 

February 2008

Congratulations to the New York Giants. It goes to show you that with a good plan and excellent execution, even an underdog long shot team can win.
The real estate market is in somewhat of the same position as the New York Giants were before the start of the game, i.e. underdogs. If you were to ask 100 people where they think the market will be 12 months from now, most of them would probably say lower, and that includes many so called market gurus. Time will only tell if they are right, but perhaps like the New York Giants, the real estate market will surprise them.
Many people are asking our professionals if “we’ve reached the bottom, yet?”  The answer is, DAMN RIGHT!  Prices will only go up as 2008 progresses and 2009 comes upon us.

Seattle is the fifth best city in the United States in which to invest in real estate in 2008, according to a study just released by the Association of Foreign Investors in Real Estate (AFIRE).  This is the second year in a row that Seattle has held fifth place, behind New York, Washington D.C., Los Angeles and San Francisco.

Remember the old adage, "It is always darkest before the dawn," and don't let pessimism rule your life. Prices are down, interest rates are approaching historically low levels again, and sellers are motivated. In this month’s update I want to provide good news, hope and encouragement.
Properties in the greater Seattle area have annual double digit increases are gone for now, however we have one of the strongest local economies in the entire nation.  Local companies are booming.  Microsoft and Boeing to mention just two.

There has been a smothering load of media focus on the housing market nationally.  Forgive me for my ray of sunshine, home and condo prices still rose here in the Seattle real estate markets over the last year.  That’s right, prices continue to rise here locally.

Here are the numbers (which the media will not report) Seattle area home values have risen 7.1% in the last 12 months and condos were up 12.4%!!!!!!

A negative psychology from the media has slowed our market; People are scared by what they read and hear.  The feds dropped rates drastically since last fall with a ¾ point drop last week alone.  The fed is actually showing that they are going to say ahead of the economy. Mortgage rates remain very low.  The reality is that you can still get a mortgage and at historically low rates. 

Home shoppers willing to buy now are seeing more homes to choose from than we have seen in over a decade.  Coupled with great interest rates and a strong employment forecast, if you are thinking about making a move- do it!  Let’s go shopping!

 

December 2007

Happy holidays to you.

We are officially back to a normal real estate market.  Inventory levels have come back to over a six month supply.  I am against the dire preditions nationally- here in Seattle it’s a stronger market than the media reports.
Dire predictions do more than grab the attention of the media; they can shake consumer confidence and help make such predictions self-fulfilling as homebuyers stay on the sidelines, pressuring sellers to lower prices-in effect fueling a downward spiral.  I am forecasting a sales level similar to 2002, a very good year, and a level that’s far closer to normal than we’ve seen in the last 4 years.

What’s challenging isn’t so much market conditions but the psychology behind those conditions.  There continues to be huge pent-up demand, and that demand will grow.  Right now we are seeing a huge number of 1st time home buyers sitting on the fence.  Once they look past the headlines, they’ll see that it is actually a very good time to buy:  Inventories are flush, so there are lots of homes to choose from; prices have moderated; and interest rates remain historically low.  Once the psychology catches up to our Seattle area real estate market conditions, that pent-up demand will be released.

For home sellers, pricing a home competitively has never been more important. Homes that are well-priced and well-prepared for showing will stand out from the competition and command top dollar.

There are no national markets, only local markets.

The adage holds true when you look at the condition of the real estate business nationwide. Business may be tough in many places, but it’s not tough all over.

In Salt Lake City, Charlotte, N.C., and San Jose, Calif., prices have climbed relentlessly.

In the Northeast, the biggest gainers are the gritty cities of Buffalo, N.Y., Pittsburgh, Pa., and Philadelphia.

In the West, business is brisk in Northern California and the Pacific Northwest.

Here are the top 10 best performing housing markets, according to Forbes magazine, their third quarter median home sale prices and the percentage that prices have risen compared to third quarter 2006.

Salt Lake City; Median Home Sale Price: $246,700; Percent Change: 14.1 percent
Charlotte, N.C., $220,000, 11 percent
San Jose, Calif., $852,500, 9.4 percent
San Francisco, $825,400, 8.6 percent
Raleigh, N.C., $229,500, 7.5 percent
Austin, $188,200, 7.2 percent
Pittsburgh, $127,700, 6.1 percent
Seattle, $394,700, 6 percent
San Antonio, $154,700, 5.7 percent
Portland, Ore., $299,700, 5.2 percent

For home buyers, there are more opportunities now to find that home in your price range plus, mortgage rates are historically low- let's go do some shopping.  

 

November 2007

 

 

 

 

October 2007

The local market has 'Cooled" although prices contiue to rise overall

Summer is over. Wow, that was quick! 12 weeks until Christmas and New Year’s…geez!

The four county Puget Sound areas posted a 5% increase in sales prices in the last 12 months, which looks small after the past few years of double digit increases. Nationally, prices fell 3.2%.

In King County (Seattle) prices of homes were up 9.7% over last year. While other areas across the country are suffering a real estate and economic downturn, the Seattle economy is flourishing with strong job growth and some of the highest numbers in home appreciation in the country. Our strong economic base has protected us from a stronger downturn. And, our long list of strong locally based international companies (Costco, Microsoft, Amazon, Nintendo, Starbucks, Paccar and Boeing, just to name a few) has helped our market stay strong.

According to some recently released figures, roughly 135,000 people are expected to move to the Seattle area within the next 5 years. Our employment growth, unlike other areas of the country, tells us that we are less likely to experience a housing slump here. And, some good news, the mortgage picture is improving. Mortgage interest rates have been declining and loan availability is improving. Movements to enhance the FHA loan program and to raise the limits for conventional financing could provide additional relief, and it looks like the worse of the mortgage availability problem is behind us. Ratings on real estate here were revised to “Positive” from “Stable” on Sept. 4th citing a robust economy and housing market—a contrast to other areas nationwide.

The market has slowed here for several reasons:

1) Available homes for sale- There are 30% more available homes as compared to the same time last year. (As mortgage requirements tighten, it has gotten harder to get financing unless you have stellar credit.)

2) Annual July and August slowdown (happens here every year).

3) Available mortgages to buyers - Many loan programs were affected by the mortgage burp- including Jumbo Home Loans which are generally over $417K.

The abundant choice of homes is permitting buyers to better negotiate price and terms. There are good opportunities in the market now, especially for first-time homebuyers.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage in August was 6.57%, down from 6.70% in July; the rate was 6.52% in August of 2006. Last week, Freddie Mac reported the 30-year fixed rate was down to 6.34%.

Buyers should have their financing lined up and secured, while sellers should ensure their homes are priced properly. This is NOT a time to put a price on a home and “see if it will work.” Buyers have an edge now.

 

 

September 20th 2007

No Housing Woes In Booming Washington State

SAN FRANCISCO (Reuters) - While California suffers in the housing crisis, the economy of nearby Washington state is flourishing with strong job growth and some of the highest appreciation in home prices in the nation.The outlook for Washington 's economy is bright because so many people are moving there in response to help-wanted advertisements. Seattle , the state's biggest city, is an especially hot job market, boosting confidence of sustained growth.Microsoft co-founder Paul Allen's Vulcan Inc., for instance, sees few obstacles to turning Seattle 's South Lake Union area into a thriving residential neighborhood, given Washington state's economic strength.Lori Mason Curran, market research manager at Vulcan Real Estate, expects 135,000 people will move into the Seattle market over the next five years, propelling demand for housing that Vulcan's property unit is building in South Lake Union.

Vulcan Real Estate's foray into building office property in the industrial and warehouse area "on spec," or without guarantees of leases, will also pay off because of healthy population and job growth, she predicts." Seattle is really, really strong on both fronts," she told Reuters during a telephone interview on Tuesday.

Brisk hiring, especially by manufacturers, builders and software companies, is propelling that growth, said Victor Moore, the state's budget director."It's the high-paying industries ... There's been a steady demand from employers," Moore said.Their growth is helping Washington, unlike California and some other states, put aside concerns about a housing slump, at least for the near term, added state Treasurer Michael Murphy.

"With employment really strong, there is less likelihood of having defaults on mortgages," he said, noting Washington's housing sector is avoiding contagion from mortgage market turmoil arising from "subprime" borrowers unable to make their loan payments.

In contrast, the foreclosure rate in nearby California, whose motto is the Golden State, surged to the second highest in the nation in August, according to a report released on Tuesday by RealtyTrac, a leading real estate data provider.

U.S. residential construction fell to a 12-year low in August, according to a government report showing a 2.6 percent drop in housing starts. The data was released on Wednesday before Wall Street's opening bell. In the Northeast, housing starts slid 37.7 percent in August, while in the West, housing starts fell 18.4 percent, the Commerce Department said.

STRENGTH ACROSS THE STATE

While growing payrolls keep Washington's housing market intact, they are also swelling state coffers.

ChangMook Sohn, chief economist for Washington's Economic and Revenue Forecast Council, projects $281.5 million more than initially expected for the state's 2005-2007 and 2007-2009 budget periods -- raising the state surplus to more than $1.5 billion -- thanks to continued strength in housing from strong payroll growth across the state.

"This is the third year of achieving about 3 percent job increases," Sohn said, adding that Seattle-area payrolls are growing at a torrid annual rate of 3.8 percent.

Major area employers such as Boeing Co. <BA.N> and Microsoft Corp. <MSFT.O> are expanding payrolls, as well as companies involved in international trade, as exports gain momentum on the dollar's weakness.

"Everyone expects more containers to come," said Port of Seattle spokesman David Schaefer, noting port officials are putting together plans to double the number of shipping containers the port handles from about 2 million annually.

With demand and prices for agricultural products up, farm-rich eastern Washington is also fueling the state's good times.

"In the Spokane and Pullman areas, economists are saying they're seeing glory days," Sohn said.

HOT TIMES ON THE HOME FRONT

Washington's varied strengths make the Puget Sound region centered on Seattle a top market for Costco Wholesale Corp. <COST.O> and an obvious region for expansion, said Jim Sinegal, the company's president and chief executive.

The Issaquah, Washington, warehouse club operator plans to open another store in the Puget Sound market this fall and has four more "on the charts" for the region because of its growth prospects and confident consumers, Sinegal said.

"Full employment and good wages make it desirable to have a 50-inch (television) set," Sinegal said.

Washington's broad economic strength is underscored by housing markets across the state, said Keitaro Matsuda, an economist with Union Bank of California. He noted that Wenatchee, Washington, notched the nation's best annual home-price appreciation in the second quarter among local markets -- up 23.5 percent -- and four other Washington markets, including Seattle and Spokane, made the top 20 list.

"When you look at its numbers, there aren't too many things that are going wrong with Washington's economy," Matsuda said.

Fitch Ratings revised the state's rating outlook to "positive" from "stable" on September 4, citing its robust economy and resilient housing market -- a contrast to California, whose economy is slowing amid tumbling home sales.

"They don't have the real estate issues California has," said Richard Raphael, a Fitch executive managing director.

 

 

September 1st 2007

Inventories are up but prices contiue to rise overall

Overall the Seattle area real estate market remains strong as compared to the rest of the country.

Only five of the cities surveyed for S&P's 20-city index showed a year-over-year increase in prices in June. Seattle led the way with a 7.9 percent price rise, followed by Charlotte (6.8 percent) and Portland (4.5 percent). Atlanta and Dallas (1.6 percent each) rounded out the group.

Prices in Boston dropped in June at a slower rate than they did in May, continuing a trend that started at the beginning of the year. In April 2006, Boston was the first metropolitan area to show a year-over-year decline, so any turnaround there could be an early sign of recovery!

After years of rapidly rising home prices, the national real estate market stalled last year, with prices holding steady or falling as sales slowed. Since then, lenders have made it more difficult for some people to get mortgages by tightening standards just as foreclosures rise and some who borrowed at adjustable rates are facing higher payments they can't meet.

Problems have spread from those with poor credit repayment histories to more creditworthy borrowers

Numbers just out from the Seattle MLS and Bellevue MLS show dramatic increases of available homes for sale for the month of July 2007. There are 9947 homes for sale in King County or 44% more homes available as compared to the sale time last year. This is actually a 16 year high. We had to look back to 1991 to find these numbers of available properties. It is no longer a "sellers" market. There has been a significant rise in the number of available condos, 2955 for sale now, an increase of 80% more available condos as compared to the same time last year.

The national real estate markets have slowed significantly with sales at about half of what they were last year. The change in available home mortgages has prompted this current national slow down.This is the 5th straight month of slipping home sales nationally. Even though the Puget Sound area is economically strong that the rest of the nation, those numbers do effect the market here.

Investors last week gained a sense that the subprime and credit market problems were not going to sink our national economy.

That realization, however, makes the likelihood of an interest rate cut at the Federal Reserves' next meeting less certain than it appeared 2 weeks ago.

With interest rates having to go nowhere but up (they are at historical lows) we are encouraging our buyers to purchase asap.  Don't wait for interest rates to go up.

 

August 2007

Seattle Area Real Estate Sending Mixed Signals

Overall the Seattle area real estate market remains strong as compared to the rest of the country. 
Condos in Seattle and Bellevue are showing the strongest surge in value. The condominium market remains active, with the volume of both pending sales and closed sales out-gaining year-ago totals. Pending sales rose about 3.7 percent. Prices for last month's completed transactions were about 10.5 percent higher than for condos that sold a year ago.  Condo buyers have a wide choice of styles across the price spectrum. Inventory is almost 75 percent bigger than twelve months ago.
 Contrary to many areas with slower activity, Bellevue remains robust. The volume of closed sales surpassed year-ago totals and prices are rising at a faster clip than the MLS average.

The median price for last month’s closed sales of single family homes (excluding condos) with a Bellevue address was $750,000, a jump of $80,000 (11.9%) from 12 months ago. Numbers just released by the Multiple Listing Service show a large (30%) increase in available properties as compared to the same time last year. We are adding to our supply of available properties as we head into a traditionally slower time of the year.
The market has made the turn and is heading toward becoming a buyers market after about an 18 year run.

Turmoil in the mortgage industry and unease on Wall Street will continue to add to what we are seeing as a slowdown in the market. Don't get us wrong, well priced properties are still selling within the first few days of hitting the market.  The flip side is that if a property is just 3% over priced, it will have no hope of selling.

In today’s dynamic and changing market, pricing a home competitively has never been more important. Homes that are well-priced and well-prepared for showing will stand out from the competition and command top dollar.
For home buyers, there are more opportunities now to find that home in your price range. 

Contact us and put our knowledge and skill to work for you.

 

July 2007

Seattle real estate and MLS listings news

Seattle area real estate remains steady and strong.

Supply and demand remain the theme for the Seattle area real estate market.  Even though the amount of available homes is at a record high, the selection is slim in some close-in neighborhoods and in some price ranges. For homes priced at $247,000 or less (the price a median-income household in King County can afford), there are only 110 (not very many) current listings priced under that threshold in all King County. Of these single family homes, 94 are in south King County, seven are on the Eastside, two are in Seattle, with the remainder scattered elsewhere in the county.

Markets that are closer to job centers tend to have lower inventory levels and higher price appreciation.
A six month supply of homes for sale is the national benchmark used to determine whether it is a “buyers” market or a “sellers” market. Area-wide there is about a 4.9 month supply of inventory, which compares to the national average of 6.8 months. In King County, there is about a 3.2 month supply, meaning if no other homes were to come on the market it would take 3.2 months to sell the available inventory. Based on these most recent numbers it is still a strong sellers market for homes that are well priced.  There has been slowdown of the frenzied “multiple offer” real estate market just in the last few weeks. Buyers realize good values are all around them, but some are waiting too long to act.

Traffic at open houses has been brisk with many buyers having started their search on the Internet, thereby increasing their knowledge and awareness of the market.  When they hit the door they are generally qualified by a lender and ready to buy if the right house appears. However, some of these ‘knowledgeable buyers’ tend to be slow to pull the trigger on a purchase as they search endlessly for the ‘perfect home.’ Often, it is the one they didn't end up buying, but somebody else did. Prices overall, still have risen another 10% in the last 12 months. Appreciation for homes is at a lower pace than in 2006, although we still expect new job growth and overall economic strength of the Seattle area will sustain appreciation through the end of 2007.

The market is underperforming when you consider positive fundamentals such as the strength in local job creation, economic growth, favorable mortgage interest rates and flat home prices. Based on the rules of supply and demand, we still don't have enough inventory to meet buyer demand, which will make prices continue to rise for at least the next 24 months.

I just want to communicate once again; prices are going to keep going up! They are not going to do down, and neither will interest rates. It's critical to understand that if you see a home that meets your needs, in your price range- buy it.

Contact us now and we'll find you the right property before somebody finds it first!!

 

June 2007

Higher prices, fewer home sales and more choices were the themes for May’s Seattle area real estate market.

Pending home sales fell about 10% as compared to last year’s record breaking pace. But the volume of sales for May 2007 was actually the busiest month since August of 2006.

Despite the slower pace of sales and increasing homes on the market (supply) prices are still rising.  Recorded home sales figures for the month of May show a 10% increase in value over the same time last year.  Once again, our local real estate values continued their upward trend.

Condo prices are showing very strong sales numbers compared to 12 months ago, with condo prices in general, going up a whooping 18% compared to this time last year.  As home prices continue to rise, condos have remained affordable.  The demand on the condo market has pushed prices way up as they are sometimes the only form of available properties for buyers as the median price for a home in the area has jumped to $350,000.00.  Up from a median price of $319,000.00 just 12 months ago!  And condo prices averaging $245,000.00 a year ago are now over $290,000.00!

Properties on either end of the market continue to show strong sales. We have seen a great deal of activity on homes priced at one million dollars and up.  Figures show almost a 30% increase in the number of closed sales of million dollar plus properties in King County .

Sellers with unrealistic price expectations are changing their approach.  Those who expect last year’s rising prices (20%) are seeing that the market has slowed, a bit.  More sellers understand the importance of getting their homes market ready before listing them.  More than ever, sellers need to hire full-time, knowledgeable trusted advisors- not just someone who can dump the listing into the system.

The last time we saw large increases in values was after the local rental market got tight.  The rental market has gotten tight again!  This has been an indicator for another surge in prices.  The well priced homes sell quickly, and in all price ranges. 

Please let us know right away, when you’re ready to make your next move!

 

May 2007

The Sun is shining on the Seattle Area Real Estate Market

As the rest of the U.S. real estate markets struggle…the sun is shining bright on our Seattle area!

The numbers released this week, tell us for certain, that prices here locally will continue to rise; with job growth and population growth as the two most contributing factors.

A recent report released last month, by Standard & Poor’s for its S&P/Home Prices Indices of 20 cities nationwide, showed that Seattle was the only area to register a double digit gain in property values over the last year. Single family home sales in King County were up 10%, and I just looked at numbers that showed a 100% gain in median home prices over the past 5 years. So really, we’re seeing a 20% gain each year! Yeowee!!

Another thing we’re seeing and it’s no surprise to us…is the jump in condominium prices. With condo prices rising, this then has an effect on home prices…forcing them to rise.

People moving to Seattle keep the real estate market strong. Record low interest rates and a great local economy enable us to predict that prices will continue to rise throughout the spring and summer.

Please be sure to CALL OR EMAIL US TODAY and we’ll help you find what you’re looking for (as we’re seeing well priced homes selling the first day they hit the market…and sometimes, even within the first few hours)!

 

 

 

 

April 2007

Groundhog Day……

Gawd it’s been nice to see the sun again after our “killer” winter!

Our tale of the market remains the same, as pending sales rose in February and into March at an increasing rate.  Multiple offers on homes that are priced right are becoming the norm again!

As the rest of the U.S. real estate markets struggle, the Puget Sound area remains strong.  The steam is beginning to build…the expectation of buyers is now starting to change to one of…"Don't miss this opportunity to get the best price and low interest rates!"

There were 9,340 pending sales of single family homes and condominiums during March, the highest volume since August 2006, when brokers notched 10,022 pending sales.

Inventory continues to rise - and so are prices.  In Seattle, the market for single family homes in close-in neighborhoods is actually "hotter right now than it was at this time last year."  The median price for sales of single family homes that closed last month across the market area was $345,000, up more than 13 percent from a year ago. Condominiums that sold and closed last month fetched a median price of $252,000, an increase of 10.7 percent compared to twelve months ago.

In the four-county Puget Sound region, Snohomish County experienced the sharpest price hikes.  The median price for last month's closed sales of single family homes (excluding condos) was $382,500, up about 16 percent from the same month a year ago.  Condominium prices jumped up 25.7 percent, rising from $189,970 to $238,796.

The widely reported subprime lending problems are having little discernible impact on the local market.

The numbers over last year are up over 12% for homes and condos in the greater Seattle area. The well-priced properties sell so quickly that we don't even have to put up a “FOR SALE” sign!

Contact us now, and we'll help you get a good one!

 

March 2007

Prices up 15% in the last 12 months!

Year-over-year home price appreciation was up nationwide nearly 5.9 percent at the end of last year, but that's the lowest level since 2003, according to a lagging indicator that doesn't accurately mirror today's real estate market.

Data recently released from the Office of Federal Enterprise Oversight's Home Price Index for the fourth quarter of 2006 reveals that, of the 282 cities on OFHEO's list of "ranked" Metropolitan Statistical Areas (MSA), 256 had positive fourth-quarter appreciation, 25 had declines and one had an unchanged rate of appreciation.  The data, already two months old, does, however, reveal some trends.  "This data shows that, on the whole, prices are still rising, albeit at a much slower pace."  "This suggests that house price appreciation is, for now, more in line with historical norms," that's nationally.

Geographical nationwide trends were also apparent.

States with the greatest rates of appreciation during the period from the fourth quarter of 2005 to the fourth quarter of 2006 were all in the Northwest: Utah (17.6 percent), Wyoming (14.3 percent), Idaho (14.0 percent), Washington (13.7 percent), and Oregon (13.5 percent).

Our current predictions are;

There is no doubt that we will see a rise in property values of at least 10% throughout the end of the 2007 year.  Sales activity is once again picking up here in the Puget Sound region.  Prices will continue to rise due to low inventory levels.   The supply of homes extends our low “current available inventory” 
It is so important to be educated as to the value of homes, when you see one you like, you must move quickly to make an offer.  The good homes sell right away, within hours of becoming available.  It is important to stay in touch with us so that we can get you fresh information!
Be sure to let us know if you are ready to start shopping!

 

 

 

 

 

February 2007

 

 

January 2007

Do you know what determines whether it’s a buyer’s market or a seller’s market?

The correct answer would be inventory. But how much inventory? the answer = a 6 month supply of homes for sale.

Looks like we are starting off 2007 HARD and FAST!

Numbers from November are in for national home and real estate sales as a whole and the number of home sales is unexpectedly high for the holiday season. Traditionally sales slow down in November with the holidays. This year the market couldn't be held down long with our low mortgage interest rates.

The growth shows that the U.S. housing market avoided a crash.

While lower than the historical average, home sales show a "soft landing." We expect resale's to grow to 6.58 million next year from 6.42 million in 2007.

"Despite the doomsayers, household wealth will not evaporate, and the economy will not go into recession." We predict steady improvement in sales that will support price appreciation moving forward."

The turnaround will come when buyers have fewer choices of homes on the market.

"Inventory needs to be absorbed," and it will be as we head into the spring.

Measured in terms of how long it would take to sell off the existing stock, inventory stood at 6.3 months in November, higher than the 4.9 months a year ago but down from a high of 7.2 months in July, the Commerce Department reported.

We expect the U.S. economy to expand at a 3.2 percent pace in 2008, up from 2.5 percent in 2007. The average U.S. rate for a 30-year fixed mortgage is expected to be 6.6 percent next year, matching the expected 2007 rate. Last year, it was 6.4 percent.

U.S. home prices have risen an average of about 5 percent a year over the past 50 years, according to Freddie Mac, the No. 2 buyer of U.S. mortgages. We will see at least another 10% minimum rise in prices here in the Greater Seattle area for 2007

With prices going up and mortgage rates at historical lows, now is the time to buy before prices and rates go up.

 

 

 

 

 

 

 

 

 

November and December 2006

 

 

 

October 2006

August home sales continued to rise after a sluggish June and July. Seattle real estate prices on sales that closed last month jumped another 14.3 percent from a year ago, with most of the 17 counties in the Seattle area market experiencing double-digit increases again last month.

The Seattle area real estate market which slowed in June has regained its strength through August and September. The same reasons fueled the increase in activity- high demand under $600K and a low inventory of available homes. Demand remains high and should stay that way for the foreseeable future. Washington is on track to add 95,000 jobs in 2006, according to the state's Office of Financial Management. With the improving economy, more residents from other states are relocating here. OFM data show annual migration climbed from only 22,000 in 2003 to 51,000 in 2005 and 81,000 in 2006.

"Despite a decline in sales, last month was the second best August on record," said Sprague, Broker/Manager of RE/MAX Realty Professionals. Compared to the "frenzy housing market of 2005," Sprague says activity now is "more typical for a strong market." We expect the combination of low inventory levels and attractive interest rates will fuel strong activity through the remainder of 2006.

In a statement accompanying a report that lowered projections for this year's home sales, NAR chief economist David Lereah said psychological factors account for much of the recent decline. "We've never seen a general decline in the housing market against a healthy economic backdrop where jobs are being created, the economy in growing and interest rates are favorable," he said. "Psychological factors are causing some buyers to remain on the sidelines, waiting for prices to stabilize or for more favorable news about the market and the economy. Contributing to this hesitancy is a lot of negative news stories, but in the end we believe that underlying market fundamentals will prevail," Lereah remarked.

NAR President Thomas M. Stevens from Vienna, Va., said higher interest rates slowed home sales during the first half of the year, particularly in higher cost markets. "The shift we've seen lately results from psychological factors with buyers on the sidelines trying to time the market. Both buyers and sellers need to understand what's going on within their local market areas, so it's even more important now to work with a professional who can guide you through current changes and the negotiation process."

Call us and we will help you through every step!

1-800-211-2493 or 425-250-3100

 

 

(August and September 2006)

(Special Updated 9-16) We were at a sales event for new condos in downtown Seattle yesterday in the Belltown neighborhood, where 251 condos SOLD in 3 days!----- Obviously the lower end of the market under $500K remains very active here in the SEATTLE AREA!

Numbers for July came in and we have some "breaking news" - that is the market here in the Seattle area took it's first downturn. Prices did not drop- however sales activity was down for the first time in a longggggg time. The numbers reflect a slowdown in the sales of existing homes of minus 10% over last year. The sales for new construction homes are down 25% from last year.

As September starts, we are seeing and feeling the market regain it's hunger for well priced houses. There are quite a few more listings available in the last few weeks however they are overpriced and they sit on the market. The well priced homes are still selling in the first 48 hours or sooner. Interest rates continue to remain historically low. We expect strong sales to continue through to the holidays, as buyers seem to be coming back to the market after taking the summer off.

After giving thanks that you bit the bullet and bought, consider this: 
 
The median prices of King County's detached homes and condominiums have climbed 16% percent since the first of this year — despite a growing number of homes listed for sale — leaving both the S&P 500 and the Nasdaq in the dust. 
 
The S&P has grown a paltry 0.1 percent since January, while the Nasdaq has declined 3 percent. 
 
Price gains in nearby counties, where sales are overwhelmingly single-family houses, also have been double-digit impressive. 
 
Snohomish County's detached-home prices are up 17.8 percent since Jan.1, while Pierce County's prices have increased 16.6 percent, and Kitsap's 14 percent, newly released numbers from the Northwest Multiple Listing Service reveal. 
 
That puts Puget Sound-area sellers firmly in control — a situation that's increasingly more memory than reality for sellers in other parts of the country, where the housing market is cooling. 
 
Because the Puget Sound area's economy is strong, we're adding buyers who can absorb higher interest rates. Mortgage Rates have climbed from an average 5.62 percent a year ago to 6.79 percent this week for 30-year fixed-rate loans.  "You would think with the interest rate climbing that people's buying power would have gone down a little bit, but we still haven't seen it,"  
 
"There are still tons of buyers in the market, more than sellers, and we're still seeing open houses with 50-60 people going through them.  
Well-priced, cute homes are selling quickly with multiple offers." 
 
Sales also continue to be brisk in what most buyers would consider the  more-expensive price ranges. Take one two-bedroom house on Mercer Island. It drew 13 offers, and sold recently for substantially more than its asking price of almost $800,000. 
 
However, that may not be surprising considering Mercer Island's median single-family home price. It was $998,250 last month — making it the county's second-most-expensive area. 
 
Others in the top five are West Bellevue (median of $1.187 million), Queen Anne/Magnolia ($699,950), South Bellevue ($635,500) and Redmond/Carnation ($599,950). 
 
The one bit of good news for buyers is an increasing number of homes for sale —an annual cycle that kicks in about this time each summer and continues into  the fall.

Based on the rules of supply and demand, we still don't have enough inventory to meet buyer demand, which will make prices of properties continue to rise for at least the next 24 months.

I just want to communicate once again.that prices are going to keep going up! They are not going to do down, and neither will interest rates. It's critical to understand that if you see a home that meets your needs, in your price range- buy it.

Contact us now and we'll find you the right property before somebody finds it first!!

 

 

(June and July 2006)

The numbers for June over last year are up over 15% for homes and condos in the greater Seattle area. The good properties go so quickly that we don't even have to put up a 'For Sale' sign.

Contact us now and we'll help you get a good one!

(May 2006)

This is still a VERY hot housing market. Supply is down and demand remains high. Home prices continue to rise.

Once again my monthly report shows that scant inventory is taking a bite out of sales and helping pump up prices. In the central Puget Sound area — King, Snohomish and Pierce counties — prices have jumped 17 to 21 percent in the past year.

In King County, the median sale price of a single-family home hit $419,500 in April, up from $405,000 in March. Median means half sell for more, half for less.

The median April sales price of King County's condominiums was $247,900. That's a 1 percent drop from the previous month, but compared with April 2005, condo prices are up 21 percent.

First, mortgage-interest rates have climbed for six weeks straight and are now at their highest rate in four years — 6.67 percent for a 30-year fixed-rate loan.
"I don't think there's a question in Seattle anymore about a bubble market; we continue to have good, strong demand."

A few of the reasons there are too few homes for sale to meet buyers' needs:
• Homeowners are afraid to put their homes on the market for fear they won't be able to find replacements;
• Not enough housing is being built to fulfill demand;
• King County's economy is adding thousands of jobs, and those workers' housing demands outstrip supply.
Indeed, Washington employers have added 94,000 jobs in the past year, mostly in the Puget Sound area, says the state Employment Security Department. That helps explain why last month's jobless rate was the lowest in six years.

Buyers often react to this pressure by stepping up their efforts because they fear being priced out.

And we have had to get aggressive when it comes to finding properties.

Last week we were involved in a multiple offer situation on a new listing. This is not uncommon anymore; however there were 17 offers on the home!!

That’s right seventeen offers. Our buyer got the home! Want to know our secrets to successfully getting a home when there are competing offers? Give us a call now and we will help you before prices go up another ten percent.

 

 

(April 2006)

Seattle area homes prices continue to rise.

Last month we reported on rising home and condo prices in the region with prices surging nearly 20% in the last 12 months. Once again numbers show a continued price increase of over 20% in the last year when we look at prices for March of 2005 compared to 2006. Overall sales are down 5% when compared to last year but that is simply because of low numbers of available properties.

Our local brokers are complaining about a scarcity of available properties to show and sell. If you are a property owner this is great new. If you a buyer looking for a purchase, buy as soon as possible as prices will continue to rise based on the rules of supply and demand.

(March 2006)

Homes sales lag (but there is a good reason, actually 2 reasons)

The numbers are in for February, with home sales slowing as compared to last year during the same month. There are two simple reasons for the numbers trending down. The first reason is that last year was a record year for sales in the greater Seattle area. If we compare last years numbers to this year we actually see huge numbers in home sales continuing, we just have not topped last years record pace. Please do not misunderstand us- home sales for 2006 are still off to an above average start. Second reason- there is less inventory or homes for sale as compared to last year. Less available homes for sale on the market (inventory) is what helped keep us from another record breaking February in 2006. There just are not as many homes for sale. Homes sales have slowed because our supply is dwindling. New listings are the "front end of the pipeline" for sales. When inventory shortages exist, "We should not be surprised if the number of pending sales is somewhat lower in the following months."

Back to supply and demand. Supply is down and demand remains high. Companies continue to hire and bring new people to the area. For example Microsoft just announced they are adding 12,000 new jobs. We simply do not have the supply of homes for these folks and prices will continue to rise here, period!

I just looked at some serious numbers with some areas of east Seattle showing a 21% gain in home values in the last year. Homes that sold for $400K in 2005 are now going for $500K- That's huge folks! Even with fewer sales, median prices in both the southwest and southeast areas of King County were up more than 13 percent compared to a year ago. Home prices continue to climb steeply compared to increases in the income levels of family wage earners. "The hard news for families trying to break into the housing market for the first time is that for most of them, their incomes didn't keep pace with the 15-plus percent rise in housing prices County wide."

We also detect a noticeable surge in activity. "We're starting to regain momentum," "Buyers who act quickly may still be able to lock up a property at a more reasonable price before the spring home buying market gathers steam. For the best opportunities buyers should move quickly," That is our advice to people "on the fence". Interest rates are rising which also affects our buyers when it comes to their monthly mortgage payments. Don't kid yourself and think prices or rates will favor buyers this year. Let us be clear- everything is going up.

We have been recommending this for over a year now to our clients and with low inventory it's just not time to wait.

South King County still has some of the best opportunities for families, "but at least $300,000 dollars for a home is now the rule, not the exception." But a commute to Seattle from these areas can now take an hour - each way!

On the eastside of Seattle homes (fixers) now start at $400K and in Seattle 's nicer or safer neighborhoods prices have climbed over the $450,000 price mark, and that's for a fixer. They will continue to rise as available homes for sale continues to be slim. Can you say "townhouse-condo?" Now if you don't mind a commute from the outlying areas there are still opportunities but they are going to go up too!

Hold onto your hats folks as prices are going to continue to shoot up this year. This isn't "rocket science", we base this prediction on the laws of supply and demand.

Demand is high and supply is slim. Happy St. Patrick's Day!

(February 2006)

Seahawks and Weather Slow Home Sales

Yes, once again our home prices continue to climb in the Seattle area. And Super Bowl fever combined with our wet weather caused home sales to slow dramatically in January, but home prices never the less continued to climb.

On the Eastside, the median price for single family homes and condominiums that sold last month rose to $450,000, up from $377,000 a year ago, an increase of approximately 15% in the past twelve months.

The volume of property sold fell sharply, with the Seahawks and the weather contributing to a greater slow down than typically happening in December and January we will call it the "Seahawks Effect".

Now that the sun is out and the Super Bowl is over, we're seeing a surge of activity and we anticipate another great year (for current homeowners). Interest rates will go up. Although, we predict that they'll stay under 8% throughout the year.

Based on the rules of supply and demand, we still don't have enough inventory to meet buyer demand, which will make prices of properties continue to rise.

I just want to communicate once again.that prices are going to keep going up! They are not going to do down, and neither will interest rates. It's critical to understand that if you see a home that meets your needs, in your price range, that you need to jump on it right away!

(January 2006)

Happy New Year!

Ok, last month I talked about the movie "Groundhog Day" with Bill Murray and I can finally report a change in the market here in the Seattle area.

Sales have finally slowed, after months at a record breaking pace that we saw throughout the year in 2005, but the only reason was because of the holidays.

My blunt advice to family, friends and clients with regards to purchasing real estate in the Seattle area in 2006 is to buy earlier in the year rather than later. Here's the sobering fact ...there are fewer available properties on the market today than at the same time last year, when we saw an overall increase of 17% across the greater Seattle area. It is easy to predict another 10% increase in prices between now and mid-summer. So let me make this perfectly clear, prices are continuing to climb and interest rates are staying the same for now. Let us help you find a property that meets your needs in your price range and let's get you on the equity train.

Local demand is being fed by strong job growth and steady interest rates that are at 6.25% for a fixed today, which is very low historically. Available land for new home construction in King County just doesn't exist, so we are not going to be adding to our supply. I don't predict the records we saw in 2005, however we're going to be running a close 2nd with numbers off the chart. Let us help you get into some of these properties before the For Sale sign goes up!

(December 2005)

There is NO BUBBLE IN SEATTLE!

Continuing demand and fewer properties for sale, push up prices.

Ok, I am going out on a limb here…but first things first ~ “Happy Holidays from all of us to you and yours!”

Now, if you have been following my blog here, or if you are a local and have been reading the papers…I am starting to feel like Bill Murray in the movie "Groundhog Day", the numbers for sales and listings in the tri-county area are in for the month of November. There is no slowdown in the market here despite fierce competition, rising prices and interest rates.

Last year at this time, I noticed that we were down on overall available homes 20% from 2003, at which time I predicted that home prices (because of supply and demand) would likely rise at least 10% in the 2005 calendar year. Well, a good man admits when he is wrong, prices rose on average 16.8%!

The reasoning behind my prediction last year was simply the rule of "Supply and Demand". I have over 100 agents that report to me and the biggest complaint during the summer of 2004 (2 summers back) was that inventory was down 20% in the area compared to 2003. With the simple rule of supply and demand, I knew prices would rise in 2005.

Here we go again! The number of properties in EVERY price range, that buyers can choose from, is down substantially from last year. Let me be clear, these are not the market conditions which foretell the “bursting” of a real estate bubble.

Condominium buyers, who make up about 25% of our market, are feeling the biggest pinch as available units to consider are down 30% from last year!

That is substantial.

I sense that (being conservative here again) we will see an average gain in 2006 of more that 10% once again, at least.

The median prices (median = half sell for more, half sell for less) for a condo in King County in November was $219,990.00 (up 8.9% from 2005).

The median home price is now $389,000.00 (up 16.8% over 12 months).

Buyers are still out there, but the properties are not. Supply and demand.

Because our roads and freeways are filled to the bursting point, King County has quietly stifled growth in the area restricting the building of new homes and condos compared to 10 years ago. There are very few homes these days being added to our available inventory, keeping supply low. Interest rates were below 6 percent for most of 2005. Today, they are hovering around 6.3% which is also not slowing the demand for properties. Rates are not taking buyers out of the market (demand).

My advice continues to be…”If you find a property that meets your needs- BUY IT!!!!!”

Waiting to save for more of a down payment, or waiting for the bubble to burst is a mistake. There I said it!!!! (Ok I typed it)...

We are here to help you, let us know when you are ready to jump on the train...

Once again, Happy Holidays to you!

The Sprague’s and our team here at SeattleAreaHomes.com

(October  2005)

The train is leaving the station!

Prices continue to rise and the number of available properties continues to decrease in the greater Seattle area (King County).  With the rules of supply and demand we see another 10% increase in local housing prices and values by spring of 2006.  We just don't see prices leveling off any time soon.  With low inventory we are seeing well priced homes enticing multiple offers the first day they become available, sometimes within hours of hitting the market.  Quite a few of these homes never have a For Sale sign posted nor do they make it to the public real estate web sites.  They sell too fast.

With interest rates having to go nowhere but up (they are at historical lows) we are encouraging our buyers to purchase asap.  Don't wait for interest rates to go up.

People relocating to Seattle and younger adults/1st time home buyers, kept the real estate market strong in September, as the median sales price of a single-family house in King County grew to a new record high of $381,250.00,  That was up more than 15 percent from September 2004. The median sales price is the point at which half of all transactions are above it and half are below.  On average, county homes were on the market for 39 days in September, down from 49 days for the same period a year ago.

Condominiums last month were on the market for an average of 32 days, selling nearly 50 percent faster than September 2004 when the average time on the market was 61 days. Let's do a little math.... a home valued at $300K last year is now going for $350,000 and that is just the last 12 months! Call or email us now and we will help you find what you are looking for.

(July22nd, 2005)

Home Sales, Prices in Western Washington Still Rising at Double-Digit Rates. 

May marked another month of double-digit housing activity around Western Washington: pending sales jumped more than 15 percent, prices rose more than 11 percent and inventory shrunk more than 16 percent from year-ago figures, according to the latest report from Northwest Multiple Listing Service.

Northwest MLS brokers tallied 10,973 pending sales across 15 counties last month. That volume surpassed year-ago totals by 1,443 transactions for a 15.1 percent gain. Two counties, Skagit and San Juan , notched declines compared to a year ago and three counties, King, Snohomish and Jefferson, had only modest single-digit increases, while the other 10 counties reported double-digit gains. Grant County led that list with sales spiking 84 percent from a year ago.

The robust sales activity surprises some industry watchers and brokers who worry about depleted inventory. At month end, the number of active listings was at about 84 percent of year-ago levels. Area-wide, the offerings include 18,774 single family homes and 2,725 condominiums. The combined total of 21,499 listings is 4,171 fewer properties in the system than a year ago.

The shrinkage is most evident in King County where inventory is down 30.7 percent from a year ago. Also down sharply are Island County (minus 30.1 percent), Kittitas County (down about 24 percent), Cowlitz (off 23.7 percent) and Snohomish County (off 22.7 percent).

A solid and sure investment and the perfect place to raise your family, now is the time to buy or sell a home in Seattle.

(May--2005)

Home Sales in Western Washington Surge 32% Percent From Year Ago.

November marked another month of double digits for housing activity, according to new numbers. The rules of supply and demand enter into the picture here.

Our multiple listing service reported a 32 percent jump in pending sales of single family homes and condominiums last month compared to the same period a year ago. Brokers notched 7,746 pending sales (offers made and accepted, but not yet closed) across the MLS service area, surpassing the total for November 2003 by 1,881 transactions. On a percentage basis, that increase is the largest since July 2003 when members notched a 39 percent increase.

All 15 counties that make up the Northwest MLS service area had a double-digit increase in pending sales during November. Condominium sales surged almost 38 percent, while pending sales of single family residences climbed about 31 percent.

Prices for closed sales also showed double-digit gains (up 11 percent area-wide), while inventory followed the pattern of recent of months with double-digit shrinkage compared to year-ago levels. All of our agents say declines in inventory (and oftentimes, sales) are typical for this time of year, in part due to holidays and some 'leveling off' after several months of robust activity- however at the end of November, there were 21,717 active listings in the MLS system - 3,756 fewer than a year ago for a drop of about 14.8 percent.

Based on the rules of supply and demand we predict another 5-10% increase in prices between now and this summer. Also note that history shows that mortgage interest rates rise during the year following a presidential election.

Buy now! For a home buyer that wants to save up for a bigger down, they are typically fighting a losing battle. Call us to help you 1-800-211-2493.

(October--2004)

Even with the sluggish national and local economy, home sales in the Seattle area continue at a brisk pace!  

Around Puget Sound, the number of homes on the market this year has been down significantly compared with 2003. The supply has fallen about 25 percent in North King County and 19 percent in Seattle and on the Eastside, the Northwest Multiple Listing Service (MLS) reported yesterday. The group tracks home sales in 15 Washington counties.

The rather slim pickings are making a difficult task even harder for many home buyers.  The laws of supply and demand tell us that prices are on the way up too!  We predict at least 5% by next spring with a potential of a 10% increase in home values over the next 6-8 months. Also historically the year following a presidential election- interest rates always rise.  Our advice is to seriously consider moving or buying , as waiting will cost you more in a payment and you will be buying less of a home the longer you wait.

 

(September--2004)  

Yes, another month of record sales.  Values of Seattle area homes and prices continue to rise. For the past 20 months, sales continue to increase as compared to the previous years monthly sales.

The first time home buyer range in the Seattle area is up to $350,000.00 and we continue to see multiple offers on good homes as soon as they hit the market! 

 Low interest rates (record lows) hovering in the 5%-6% range for a 30 year fixed rate, seem to be keeping buyers active.  People that have been waiting for low rates are finally jumping off the fence.

  Increasing prices are now offsetting the act of saving for a larger down payment.  It does not make sense to wait 6 months to save a couple of extra thousand while the price of homes goes up several thousand. 

Buyers need to be educated as to the value of homes, when they see one they like that meets their needs, they must move quickly to make an offer.  The good homes sell right away so it is important to hook up with a realtor that can get you fresh information!

 

 

 (May-2003)

Seattle celebrates Spring!

May 8th 2003

Despite the war in Iraq ending, high unemployment and a generally sluggish economy, Seattle area home sales in April again posted solid gains in both price and volume. The reason is a familiar one: record low interest rates!

 It was the 18th straight month that prices rose when compared to the same month the previous year! The average interest rate for a fixed-rate, 30-year mortgage stood at 5.7 percent last week, according to Freddie Mac, the mortgage company, the lowest rate since the early 1960s! 

 The Northwest Multiple Listing Service keeps tabs on home sales by approximately 16,500 real estate agents in 14 Western Washington counties. The median price means that half the homes sold cost more and half cost less. Across King County, the median price for houses and condos rose a more modest 3.27 percent in April to $267,210, compared with $258,750 in April 2002. The number of closed sales rose to 2,893, a 15.8 percent gain over the previous year, while the number of pending sales soared 26.5 percent in April, to 3,500, compared with 2,767 in 2002.

The median price for single-family houses in King County increased to $289,990 in April, up 3.1 percent from the same month in 2002; the median price for condominiums rose to $178,750, up 1.5 percent from the previous year. The average number of days it took to sell a King County home rose to 61 from 49 in April 2002. Homes newly listed for sale in April fell to 5,089, a 2.6 percent decrease from April 2002.

In Seattle, the median sales price rose to $289,975 in April, 3.2 percent higher than in April 2002.

 

Soggy Weather , Stalled Economy and Start of War
Fail to Dampen Puget Sound Home Sales During March.

(April 4, ) - Low interest rates and motivated buyers and sellers combined to overcome dismal weather, a sour economy and the start of the war in Iraq to keep Puget Sound home sales percolating during March.

The latest figures from Northwest Multiple Listing Service show pending sales (offers made and accepted but not yet closed) jumped 25.3 percent from year-ago volumes. Members reported 8,133 pending sales last month in the 14-county area served by NWMLS, surpassing last year's total by 1,640 transactions. Thirteen of those counties had double-digit gains from 12 months ago as buyers weathered incessant rain (only seven days during the month with no precipitation) to find their dream home.

Other key indicators of activity - new listings, closed sales and prices - also rose compared to the same month a year ago. New listings increased 8.4 percent, closed sales climbed 8.5 percent and median sales prices are up 5.2 percent from last year's figures.

MLS members added 11,300 new listings to area-wide inventory during the month for a gain of 8.4 percent from a year ago when they listed 10,421 new offerings. In the four-county Puget Sound region (encompassing King, Kitsap, Pierce and Snohomish counties), the volume of new listings out gained the previous year's figure by 6.9 percent.

At month-end, inventory for the 14 county MLS service area stood at 28,856 listings, with single family homes making up 84 percent (24,334) of the selection. Buyers have 3,730 more listings to view compared to a year ago, an increase of 14.8 percent.

Prospective home buyers will find lots of variation in prices around western Washington. A review of current inventory by price ranges indicates about half the selection (including single family homes and condominiums) outside King County has an asking price of $200,000 or less. Within King County, only about one of every five listings (19.2 percent) is listed for less than $200,000.

At the other end of the price spectrum, shoppers for high-end homes will find the biggest selection in King County. Of 936 properties system-wide priced at $1 million or more, 758 of them (81 percent) are located in King County.

King County experienced the largest year-over-year increase in inventory (up 22 percent). Five counties - Grant, Grays Harbor, Lewis, Mason and Skagit - have fewer listings than a year ago.

Inventory in Pierce County is comparable to a year ago, with brokers there reporting 4,449 active listings versus a total of 4,433 at this time last year. Despite the similar numbers, NWMLS director Dick Beeson said "There is a perception of very little inventory for sale" in some areas. "Daily updates (of new listings) have turned into races between agents trying to be the first to show certain homes," he stated. Such competition is prompting bidding wars on certain well located and well-conditioned homes, according to Beeson. Neither the unemployment figures nor the war seem to be scaring people off, he observed, adding, "Low rates are still the one item of stability that has lifted the market."

Prices for last month's completed sales of single family homes and condominiums are up about 5.2 percent from a year ago. The area-wide median price for last month's closed sales was $211,000, which compares to the year-ago price of $200,644.

For single family homes only (excluding condominiums), the overall median price was $220,000. That's up $10,000 (about 4.8 percent) from March 2002. Prices in King County topped the list at $284,000, also about 4.8 percent higher than twelve months ago.

Marketing time varied widely around western Washington. MLS figures show the average time on market for last month's closed sales was 69 days, which was three days longer than sales for the same month a year ago. In both King and Snohomish counties, the average marketing time climbed from 52 days to 63 days, while in Pierce County it remained unchanged at 71 days. Kitsap sales took an average of 74 days, about a week less than a year ago.

(03-19-2003)

America at war.  A thunderstorm has hit, we all hope it passes quickly. Mortgage interest rates for the near future should remain at their lowest levels ever.  I believe that current conditions favor a continued increase in our local real estate values.

Many times after wars our economy prospers causing inflation followed by higher mortgage interest rates. We hope this conflict passes quickly, we support and pray for the safe return of our troops.

 

(03-12-2003)

Across King County, the median price for houses and condos rose 4 percent in February to $255,490. The number of closed sales rose to 2,454, a 28.5 percent bounce over February 2002, while the number of pending sales went up 12.7 percent in February, to 2,748, compared with 2,437 in 2002.

The median price for single-family houses in King County increased to $276,950 in February, up 1.8 percent from February 2002; the median price for condominiums rose to $175,000, up 2.9 percent from the previous year.

The average number of days it took to sell a home rose to 62 from 57 in February 2002. King County homes newly listed for sale in February rose to 4,426 a 9.9 percent increase over February 2002.

In Seattle, the median sales price rose to $274,990 in February, 2.6 percent higher than the previous year.

MEDIAN HOME PRICES

The chart shows the number of houses and condominiums sold in certain Northwest Multiple Listing Service areas on the Eastside and in South County in February followed by median sales prices in February 2003 and February 2002.

EASTSIDE

NMLS Area No. sold Feb. 2003 Feb. 2002 Change

Eastside, S. of I-90 100 $362,000 $345,000 +4.93%

Mercer Island 18 $610,000 $520,000 +17.31%

Bellevue, W. of I-405 39 $384,000 $365,000 +5.21%

Bellevue, E. of I-405 111 $297,000 $278,500 +6.64%

E. of Lk. Sammamish 194 $361,046 $335,000 +7.77%

Redmond/Carnation 89 $285,800 $308,000 -7.21%

Kirkland/Bridle Trails 78 $300,000 $282,000 +6.38%

Juanita/Woodinville 166 $260,000 $255,000 +1.96%

Total 795 $320,228 $307,000 +4.31%

SOUTH COUNTY

NMLS area No. sold Feb. 2003 Feb. 2002 Change

Enumclaw 13 $199,950 $199,300 +0.33%

Auburn 125 $202,000 $169,925 +18.88%

Maple Valley/ 122 $239,925 $214,000 +12.11%

Black Diamond

Kent 129 $224,000 $197,000 +13.71%

Renton/ 84 $231,475 $215,000 +7.66 %

Benson Hill

Renton 75 $230,000 $229,950 +0.02%

Highlands/ Kennydale

Skyway area 30 $191,250 $196,000 -2.42%

Total 578 $224,000 $201,990 +10.9%

 

  (01-07-2003)

Happy New Year!

Seattle area housing prices rise 10 percent during 2002.

The median price of homes sold in the greater Seattle area posted another solid gain in November, as low interest rates continue to work magic on the residential real estate market. In addition the November sale figures reflect the strongest sales in the Seattle area on record!

Prices for houses and condominiums sold last month jumped 10.34 percent to $320,000, compared with $290,000 in November 2001, according to figures released Friday.

It was the 13th straight month the median home price rose in the Seattle area compared with the same month the previous year. The median price means that half the homes sold cost more and half cost less.

The number of new listings that came on the market, however, fell in November, as did the total number of homes for sale. 

The average number of days on the market before a home sold on the Eastside rose to 62 in November, compared with 53 days last year.

We feel home buyers are being choosy, thanks to a good selection of available homes and low interest rates. As a result, sellers must put their homes in top condition and price them competitively.

The Kirkland-based Northwest Multiple Listing Service collects data on sales of residential homes from more than 1,200 companies with 14,000 agents in 14 Western Washington counties.

For King County overall, the total number of houses and condominiums for sale in November rose 4.23 percent to 11,276 compared with 10,818 in November 2001.

David T. Sprague (10-17-2002)

Demand for homes in the Puget Sound region remains high despite a recession.  Locally, the number number of homes and condos for sale in King, Pierce and Snohomish counties remained the same or HIGHER than last June and July with prices on average 6% higher than last year at the same time.

  Demand continues to push home prices higher in the Puget Sound region with few areas of "oversupply."   Under $300,000.00 we are still seeing a large demand with multiple offers on homes listed under $300K.  The fact is most first time home buyers fall into this price range which creates a HUGE pool of buyers.  Simply put, your not the only one looking for a "deal" under $300,000.

 You must be pre-approved financially to even compete in this first time home buyer price range, basically any amount under $300,000

On homes priced over $500K we have seen a steady increase in the number of sales in the first seven months of 2002.  Even sales of $1million homes are holding steady, with 247 closed in the first 7 months up from 198 in the same period of 2001.  

Interest rates are at a 32 year low.  Call us or email us if you would like help with a real estate investment.

(08-18-2002)

The King County housing market cooled in 2001, with the number of homes sold falling for the second straight year. At the same time, the median price for single-family houses rose at the slowest rate in five years.  In a year of momentous events, sales of houses and condominiums in King County fell 2.54 percent to 29,000 in 2001, compared with 29,758 in 2000.  At the same time, the median price of houses rose 4.8 percent for the year, to $262,000 -- the smallest percentage increase since 1996, when median home prices increased 4.1 percent over the previous year. The home sale statistics were released yesterday by the Northwest Multiple Listing Service, a Kirkland organization that collects information on the sale of residential homes from 1,300 member offices in 13 western Washington counties.

For the entire 13-county area, the number of sales increased by 2.7 percent in 2001, to 66,296, compared with 64,568 in 2000.

Other 2001 statistics compiled by the Northwest Multiple Listing Service:

* Of the 29,000 homes sold in King County, 33.96 percent were sold on the Eastside, with a median price of $297,500; 31.08 percent were sold in Seattle, with a median price of $261,000; 20.12 percent were sold in the South County area, with a median price of $196,000; and 12.27 percent were sold in southwest King County, with a median price of $180,000. The remaining 2.57 percent were sold elsewhere in the county.

* The greatest percentage of homes sold in King County (35.56 percent) cost $200,000 to $300,000. The next biggest group (30.18 percent) cost $100,000 to $200,000. Just 1.31 percent, or 380 homes, cost more than $1 million.

* The highest priced home sold in Seattle last year cost $6.95 million; on the Eastside it cost $5.97 million; in southwest King County it cost $3.8 million; and in South County it cost $1.35 million.

* The majority of single-family homes sold (54.17 percent) were three-bedroom houses; 27.57 percent had four bedrooms; 13.68 percent had two bedrooms; and 4.57 percent had five bedrooms or more.