Seattle Real Estate Trends – Episode 10 – 2/29/20

The Seattle real estate market continues to heat up.  We saw a 16% increase in the number of homes pending this week, along with an increasing number of homes with offer review dates. With interest rates hitting a 5 year low, we are seeing even more buyer demand.

Watch the Video Here.

Let’s look at the hard data:

Houses and condos are seeing an uptick in the number of new listings.  That is to be expected.  From February through August, we almost always see more and more people putting their homes on the market.  What is more interesting is that houses are seeing increasing demand.   Demand for condos remain steady.   The biggest difference between now and last year, is the number of homes for sale.   We had roughly 35% more total homes and condos for sale this time last year than we do now.  

Interest Rates:

On February 28th, 2019 (just one year ago), Freddie Mac listed 30 year fixed rates at 4.35%

As of February 27th, 2020 the Freddie Mac 30 year fixed rate was down to 3.45.  Look at the change in rates over the last year:

That 0.9% drop adds a lot of purchasing power to buyers, as well as gives them a confidence boost and spurs them to action, fearing these rates may not last long.

In Conclusion:

Low inventory, low interest rates and increasing buyer demand are causing the Seattle real estate market to move quickly.

 

Download the video transcript here.


SOLD – The Mightiest Little House in West Seattle

This House Proves that Good Things Come In Small Packages

Leave your car parked in the garage and have everyone come to you! This mighty little house is built for entertaining. Want to have everyone over on Sunday to watch the game? The open-concept living room and kitchen are the ideal place to cheer, eat and be together. Rather gather friends and the dogs and fire up the BBQ? The over-sized and fully fenced backyard is the perfect place to hang out, let the dogs run and enjoy the rare Seattle sunshine.

 

If you feel like leaving this delightful little nest, take a quick half mile stroll to the Morgan Junction and grab coffee and a sweet treat from Little Prague European Bakery. Want to burn a few calories and feel the wind in your hair? Hop on your bike and ride the half mile to Beach Drive SW. Enjoy a long or short ride up the beach, then when you have had your share of sweeping water views, take the quick ride back home. Work downtown? Just hop on Metro #21 and you are there in 30 minutes. Want to buy that electric car you always wanted? The garage has it’s own electrical panel and is begging for you to install an electric charging station.

Watch the Video Here

 

 

Take a 3D Matterport Tour HERE.

 

Home Features

  • Fully fenced backyard
  • Large one-car garage
  • Stainless steel appliances
  • Washer and Dryer
  • Corner windows and lots of natural light
  • Open concept living and kitchen

Access the Floor Plan HERE.

 

 

The Neighborhood By The Numbers:

 

 

The Fine Print:

* Listed at $515,000 – SOLD on 3/25/2020 for $559,500
* 2 bedrooms, 1 bathroom
* 770 square feet
* 2020 annual taxes $4,775
 

All the details HERE.

 


Seattle Real Estate Trends – Episode 11 – 2/21/20

The big news this week is that the offer review date has crossed the threshold of the exception to the rule.   That meaning, that of the homes that went pending in the first 8 days, 59% of them had offer review dates. And once we reach that tipping point of over half of the homes having offer review dates, then the homes WITHOUT an offer review are seen as the weird ones.

Watch the Video Here

Let’s Look At the Hard Data:

The number of new listings dipped just a bit compared to last week.  The number of homes pending was about the same, but we saw a bit jump in the number of pending condos.   The condo market shows signs of getting healthier and more competitive.  The total number of condos and houses for sale is still REALLY low.  If you check out this time last year, you can see that we had 755 houses for sale and 471 condos for sale.

  The most noteworthy thing to happen this week is that 75% of houses and 57% of condos went pending in the first 8 days on the market.   And of those that went pending in the first 8 days, 59% of houses and 48% of condos had offer review dates.  The market is changing quickly!

Access the video transcript here.

 


Seattle Real Estate Trends – Episode 10 – 2/15/20

The Seattle market has really heated up.  We continue to see a decline in the total number of available condos and houses for sale, yet buyer demand (as seen by the number of pending listings) continues to go up.

Total Houses for Sale:

  We have significantly fewer homes for sale now than we did the last part of 2019.  We also have about half as many homes for sale now as we did this same time last year.

Houses and Condos Pending:

  Now look at!  Condo demand is up slightly, but demand for houses in Seattle has gone through the roof.

What It All Means:

  Supply and demand is the key driver of real estate.  We would expect the Seattle housing market to be quiet time of year, but buyers are out early and in full force.  The offer review date is making a comeback, and open houses are seeing a lot of traffic.  If you are thinking of selling, jump on this window of opportunity and get your freaking home up for sale NOW.  If you are a buyer, be prepared to compete in a multiple offer situation, or be prepared to wait til September, October and November when the market should slow down due to the upcoming presidential election.

Watch the Video Here:

Download the video transcript here.

 


Seattle Housing Market – January 2020

The Spring market decided to start 4 months early!  

#1 – How much??!?!?

  What we care most about is the home prices in Seattle.  Let’s take a look at the median sales price in Seattle:

When compared to December 2019, prices were up $4,500 for houses, and down $31,000 for condos.   If we zoom out and compare January 2020 to January 2019, prices for houses are UP $34,950 over the past year, and condo prices are down $7,250.    It is worth noting that since the peak in 2018, condo prices are still 10% below peak prices and condos are 16% below peak.   And that is a good thing!   

  Why would lower prices be a good thing?   Our Seattle real estate market had gotten to dang expensive.  It is still highly unaffordable, but thanks to the swift correction of prices we had in 2018, the market is at a price level that is healthier.  Folks worry about the next recession and another housing crash.  But I don’t.  We had a swift “crash” in 2018.  And guess what… You didn’t even notice!

#2 – How competitive??!?!?

    Things REALLY heated up in January.  We saw new listings going pending in a just a few days, we saw the Crusty Rusty listings (those that had been on the market for 90+ days) finally go pending, and we are even seeing the return of the offer review date.   The main thing driving this increased competition is the lack of houses and condos for sale.

   In January 2019, we had 771 houses and 424 condos for sale.  During that same time, we had 368 houses sell and 125 condos.   So we had twice as many houses for sale than sold, and three times as many condos for sale than sold.  Last month, we had 509 houses and 305 condos for sale.  And we sold 429 houses and 132 condos.   So we had 34% fewer houses on the market, but we sold 16% more houses.  Fewer choices and more buyers creates a very competitive situation.

#3 – How long??!?!?

   If you just look at the days on market, you could be fooled into thinking the market was sluggish.  In January, the homes that sold had been on the market an average of 42 days (compared with 36 days in December or 40 days last January), and condos took 64 days (compared with 52 days in December or 60 days last January).  So we had longer market times for sure.  The reason for those longer market times is that buyers were so eager to get out and buy homes, that they were finally forced to buy all those Crusty Rusty properties that had been sitting on the market FOREVER.

#4 – Other Fun Metrics

Inventory tightened, and that caused us to absorbs some of those old listings.  Even with higher competition, we did not drive up the prices, indicating that buyers are still not willing to grossly overpay, even in our tightening market.

  • Houses and townhouses sold for an average of 99.6% of list price
  • Condos sold for an average of 98% of list price
  • Houses have 1.2 months supply of inventory, up 0.2 from December, but still lower than we have seen in 16 months
  • Condos have 2.3 months supply of inventory, up 0.2 from December, but 1.5 months higher than this time last year.

Watch the Video Here.

Download the video transcript here.