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According to Veros Real Estate Solutions, the Seattle-Tacoma-Bellevue market is projected to be the fourth hottest real estate market in the U.S. in 2017. The company projects home prices to appreciate 10.2 percent in our region next year, far outpacing the rest of the country.
If you’re thinking about selling, the timing couldn’t be better. With inventory at historic lows, prices at or near record highs, and multiple offers the norm, it’s an exceptional time to get top dollar for your home.
Are you ready to sell your home?
Get in touch with a Windermere Real Estate agent to receive a valuation of your home based on current market conditions, walk you through the process, and answer any questions you may have.
This post originally appeared on the Windermere Eastside blog.
Home sales outgained new listings again in October, further squeezing already tight inventory and pushing prices higher. Since new listings traditionally decrease in the fall, that inventory shortage is expected to last until spring. Sellers willing to put their home on the market now can expect plenty of interested buyers, and a highly favorable chance of getting the best possible price for their home.
Home prices on the Eastside took a big leap in October, fueled by record low inventory. The median price of a single-family home sold that month was $768,000, a jump of 15 percent over the same time last year, and the fastest price growth in several months. With the market so strongly favoring sellers, brokers are hopeful more consumers will opt to list their homes.
The amount of inventory in King County fell to levels not seen since the 1990s with just one month of available inventory. With supply falling well behind demand, prices jumped significantly. The median price of a single-family home sold in October jumped 15 percent over a year ago to $550,000.
There is no place where the supply of homes is tighter than Seattle, particularly in areas close to the city center. Just three weeks of inventory has kept this market in solid multiple-offer territory. Prices in October increased accordingly. The median price of a single-family home in Seattle rose 13 percent to $625,000.
Inventory in Snohomish County dropped more than 20 percent from a year ago. With just over a month of available inventory, prices climbed. The median price of a single-family home was up 6 percent over last year to $386,599. Even with that increase, buyers continue to be drawn to the area by home prices that average 30 percent less than King County.
Anyone who has spent time in the Seattle area in recent years has likely seen for themselves how much the city has changed. Thanks in large part to the booming economy, growing tech sector, and increasing international appeal, Seattle is no longer a sleepy little city tucked away in the far corner of the United States. With this changing landscape has come an infusion of wealth that has seen the area’s high-net-worth population explode. And with it, so too has the ultra-high-end real estate market.
In order to meet the specialized needs of this burgeoning market, Windermere has launched W Collection, a new ultra-luxury brand specifically designed for homes priced at $3 million and above in Western Washington. OB Jacobi, President of Windermere Real Estate, says that Seattle’s population of “global affluent” is on the rise and they greatly value real estate. The proof is in the numbers.
Over the past five years there has been a significant increase in the number of home sales in the $3 million+ market. In 2011 there were only 45 such sales in King County, while in 2015 there were 131. “Windermere agents represent anywhere from 40-60 percent of the $3 million+ sales in the Seattle area, so we felt we were in the ideal position to build a brand that could provide enhanced marketing support to the growing number of ultra-luxury homes,” said Jacobi.
W Collection is its own standalone brand with a separate website, WByWindermere.com, signage, presentation materials, and specialized advertising opportunities. When developing W Collection, Jacobi said that the goal was to create a sophisticated, yet humble, brand that evokes the understated expression of wealth that is unique to the Pacific Northwest. “Our clients are not largely drawn to the shows of excessive wealth that you see at other companies and in other parts of the country. This is reflected in the W Collection brand,” said Jacobi.
The development of W Collection began a little over a year ago, and according to Jacobi, was a highly collaborative process with Windermere agents playing an integral role in every step, “Over the past 44 years some of Windermere’s best ideas have come from our agents who are totally in tune with the needs of their clients and the shifting demands of the market; W Collection was born from this same agent ingenuity.”
This article originally appeared on the Windermere.com blog.
In case you missed it, Amazon is officially expanding to the Eastside! Back in August there were rumors that Apple and Amazon were looking to add offices across Lake Washington. A recent article from The Seattle Times confirmed Amazon will be returning to its Bellevue roots to lease a space much larger than the garage where it started 22 years ago. The online retail mogul will be the new (and only) tenants of Centre 425, a 16-story building in downtown Bellevue that is due to be completed this fall.
Amazon has already invested billions of dollars in its Seattle campus that occupies 8.5 million square feet in and around South Lake Union. This desirable location has attracted many young creatives in the area, as evidenced by the fact that the company currently employs more than 25,000 people in Seattle. The Bellevue office is expected to accommodate over 2,200 people. Considering the success of other Eastside-based companies such as Microsoft and Valve, Amazon will not have a problem recruiting that amount of local tech talent for Centre 425.
Right now it is unclear why Amazon is deviating from its original plan to develop in more urban areas like Seattle. GeekWire speculates it could be a way to cater to employees who already live on the Eastside or an attempt to lure in talent from Expedia once it relocates from Bellevue to Seattle in 2019.
What does this mean for our local housing market?
Whatever the reason for Amazon’s expansion, it will certainly make the Eastside even more attractive for tech employees and have an impact on our housing market. Although the median home price is lower in Seattle, inventory remains higher on the Eastside. Amazon’s location in Bellevue will allow prospective employees to focus their search on the Eastside and give employees currently living here an incentive to stay.
Read the full article from The Seattle Times.
At a time of year when sales traditionally slow down, September saw particularly strong sales growth. Home prices rose yet again compared to the same time last year, but they remain below the peak of several months ago. And inventory, while still low, is at its highest level in two years. The local real estate market continues to be one of the hottest in the country, but there are signs that prices may be rising more slowly than they did in the first half of the year.
Home prices on the Eastside remain very strong. The September median price of $750,000 was a healthy 10 percent increase over last September. Inventory remains very low with just over a month supply of homes. Demand in this sought-after market continues to overwhelm the number of properties available for sale.
Home prices are typically lower in the fall, and that was the case in King County for September. The median price of homes sold in September was $538,000, down from the market peak earlier this summer. That number reflects a 10 percent increase over a year ago, which represents a significantly higher appreciation rate than the national average.
Inventory in Seattle remains very tight, but is up slightly from a year ago. While multiple offers are still common – particularly for entry-priced homes — some agents are reporting fewer offers than in the past. The median price of a single-family home in Seattle was $630,000 in September, an increase of 10 percent over the previous year.
Home prices in Snohomish County climbed 11 percent in September as compared to a year ago. The median price of a home was $395,000, just below the all-time high of $405,000 set in July. The area continues to see an influx of buyers trying to find a more cost-effective option to the comparatively high housing prices in King County.
Our intuition tells us that when home inventory is up, prices decrease. However, according to a recent article from the Puget Sound Business Journal (PSBJ) that is not currently the case in the Seattle area. What is causing prices to continue to climb even with an influx of inventory? As with everything else in the housing market, we can look at the bigger picture to make sense of this situation.
Although local buyers have more homes to choose from, they are competing against more buyers who are also taking advantage of the large selection. The article reports, “There’s demand among buyers for houses of all prices, though it’s highest for entry-level homes.” This is not surprising considering tech salaries go farther in the Seattle area than other tech hubs, which attracts more employees searching for homes. Additionally, even though the number of new listings in August increased 14.5 percent, that still reflects a decrease from August 2015. The PSBJ also cautions that experts don’t expect price hikes to keep moderating because they believe the number of new listings will drop significantly between November and February.
What can home buyers take away from this news?
If you are in the market to purchase a new home, your best opportunity will be within 60 days. Let me know how I can help make the search easier to help you find your dream home.
Find the full article on the Puget Sound Business Journal.
While homes prices were up by double-digits compared to a year ago, the market frenzy that has affected most of this year is showing some signs of moderating. With the exception of the Eastside, prices for most of the region were down from their peak. Home sales generally outpaced the same period a year ago, but a shortage of inventory continues to tip the advantage in favor of sellers.
Bucking the trend of moderating prices, the Eastside saw the median home price soar 14 percent over last year to a new record high of $769,000. That eclipses the previous peak of $760,000 in May of this year. Very tight inventory in this highly desirable market was reflected in flat sales growth compared to a year ago.
King County saw home prices moderating for the second month in a row. The median price of homes sold in August was $550,000. That represents an increase of 10 percent over last year, but a drop from the high of $570,500 in June.
The median price of a single-family home in Seattle was $625,000 in August. While down from the record high of $666,500 in June, that represents a healthy 9 percent increase over the same time last year. Demand continues to exceed the supply of inventory, particularly for entry-level homes.
Snohomish County’s August median home price of $400,000 was just shy of the record-high of $405,000 set in July. The median price here is $150,000 less than King County, making Snohomish County a more affordable option for buyers willing to trade a longer commute time for lower housing costs.
Right now the Puget Sound region is defined by two things – tech companies and a hot housing market. While we may be considered one of the original tech hubs in the nation, other cities like Austin and Denver have caught the technology bug giving employees more options for where to work and live in all parts of the country.
These people are looking at competitive salaries, but they should also consider cost of living when choosing their new cities. After all, that is what will determine the quality of life they can achieve with their new salary. That is where the Seattle area becomes more desirable than other cities – especially those that are more established within the tech industry.
According to an Indeed.com report comparing incomes in 15 tech towns, Seattle ranks second for highest salaries after cost of living adjustments. That means even though high-tech jobs in San Francisco pay an average of $15,000 more than those in the Seattle area, employees can stretch their earnings much farther here because the cost of living consumes less of their monthly income. Additionally, tech salaries are expected to increase as employer demand continues to outstrip supply.
Find the full article at Puget Sound Business Journal.
Home prices are still on the rise compared to a year ago, but there is some indication that prices are moderating. Combine that with an increase in inventory and we may be seeing some relief for buyers. Time will tell whether this is a momentary breather, or if we’re slowly moving to a more balanced market.
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Home to the highest concentration of luxury homes in the state, the Eastside continues to be the highest priced region of King County. Median home prices here were up 10 percent over last July to $750,400. That is down from the May peak of $760,000, and virtually unchanged from June. Buyers looking in this desirable market may be seeing the start of easing home prices.
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After five months in a row of record-setting prices, King County saw the median price of a single-family home drop slightly from the high of $570,500 in June to $555,000 in July. However, July’s median price was up 14 percent over a year ago. An increase in inventory, accompanied by a slight slowdown in sales, may indicate that the market is settling down from the frenzied pace we’ve experienced so far this year.
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Seattle also saw a small decrease in home prices, with the median price of a single-family home dropping from its record $666,500 in June to $650,000 in July. The July number still represents a hefty 13 percent increase year-over-year. Some buyers are looking to the areas of North King County that include Shoreline, Lake Forest Park and Kenmore for a more affordable alternative. Prices there soared 18 percent over last year, but the median price of $505,000 is significantly less than Seattle.
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The median home price in Snohomish County topped $400,000 for the first time, setting a record for the third straight month. Prices were up nearly 12 percent over the same time a year ago to $405,000. With prices here about 25 percent less than King County, buyers looking for lower housing costs continue to fuel an environment where multiple offers are common.