Seattle Real Estate Trends, December 2015

Posted on January 13, 2016 by Steve Laevastu

This 2016 is starting with the lowest number of homes for sale in Seattle in years! In December there were only 359 homes and condos for sale in all of Seattle. Let’s see what happened in Seattle’s November real estate market in key neighborhoods:

Inventory and Pendings

Below we compare the number of active listings (supply) and pendings (demand) for several of the key Seattle neighborhoods including Central Seattle, Queen Anne and Magnolia, Belltown and Downtown, Ballard and Greenlake, and North Seattle. Our table includes single family residences as well as condos comparing December 2014 and 2015.

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Median Sales Prices

Prices are up both year over year and month over month. See the tables below!

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I predict that 2016 will be another banner year in Seattle real estate, and I am hopeful that when interest rates start to go up our market will even back out in terms of supply and demand. Have a question about what to do about what to do with your real estate this year? Please contact me – your Seattle Home Guy – at sold@windermere.com or give me a call: (206) 226-5300.

Seattle Real Estate Trends, Nov 2015

Posted on December 14, 2015 by Steve Laevastu

Usually things quiet down a bit this time of year, especially between Thanksgiving and Christmas. Not so in 2015! Buyers who were frustrated this summer due to not winning with multiple offers are back, hoping to buy while there is a slight lull and before interest rates go up. However, we aren’t seeing the bump in available inventory this late fall. In fact, in November, we dropped to the lowest number of homes and condos available for sale in the last ten years at 740 units. The number of homes under contract for November was 821 which means that properties are still flying off the market very quickly and the demand cannot be satiated!

Let’s see what happened to Seattle’s real estate market in key neighborhoods this November:

Inventory and Pendings

market-update-nov-2015-a

Median Sales Prices

Prices are still on the rise. November’s median home price for residential and condos was $513,600 – a 17% increase over last November. 17%! In fact, the only month ever with a higher median sold price was this last August at $536,000.

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I do expect the Federal Reserve will be raising rates in December, and although that might give buyers some breathing room due to less competition, there is still a lot of pent up demand (and still-growing demand due to our local economy) to be satisfied before we can resume a more-normal market.

My predictions will be out soon for 2016 and if you would like to receive those by mail, please contact me – your Seattle Home Guy – at sold@windermere.com or give me a call: (206) 226-5300.

Seattle Real Estate Trends – August 2015

Posted on September 14, 2015 by Steve Laevastu

Boy, could we have had a more amazing summer? Maybe mother nature was trying to make up to us Pacific Northwesterners for the devastating end to the Superbowl. I am excited for the fall and I am excited to see our Hawks play some ball again. Go Hawks!

This has also been quite the summer for Seattle real estate. Our market seems to have naturally slowed down just a little over the last few weeks as we cram in last vacations before the kids start school. Stock market volatility has also caused some to pause, but the fact is Seattle is a great place to invest in and some blips on the DJI aren’t going to change that. Through August, our inventory is still very low in Seattle (we haven’t had even 1,000 properties on the market for any month this whole year) and our pending numbers are high.

But let’s take a closer look at what the end of summer real estate market is like in Seattle and some key neighborhoods:

Inventory and Pendings

market-update-2015-08-a

Median Sales Prices

Median sales prices for Seattle residential and condos was up sharply in August, rising to a new all-time high of $537,800. This was 5.97% higher than the previous high of $507,500 set in June. Looking at year over year, August of 2014’s sales price median was $417,500, so we are looking at a 21.56% year-over-year increase.

Looking at the individual neighborhoods, Wow! Check out Belltown/Downtown. That is a significant increase which requires some explanation. In August of 2015 there were 137 sold homes and condos in the area ranging in price from $199,500 to $2,579,610. 27 of these were over $1,000,000. The former median price was $384,375, but there were only 5 of the 137 that sold were under that former median price. Compare that to last year when there were only 42 sales, the lowest was at $169,000 and the highest was $1,800,000 (with only five over $1,000,000). This makes a big difference. Does this mean prices have truly gone up over 80% in one year or is the product on the market different? The product on the market is different, there are more people buying condos as the price for homes is on the rise, so those two factors together is what I see happening in that particular neighborhood.

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As I type this, there is massive speculation regarding whether or not the Federal Reserve will raise interest rates at their meeting on September 17^th. If they do, this could change the real estate landscape a bit, but as I said before, Seattle will continue to be a great place to invest. Please contact me – your Seattle Home Guy – at sold@windermere.com or give me a call at (206) 226-5300 to discuss what this market means for you.

Seattle Real Estate Trends, July 2015

Posted on August 12, 2015 by Steve Laevastu

Usually we see Seattle real estate take a small breather in July. Not so this year. Although Seattle’s inventory has increased since its low point in January of 830, it has only increased 16.2% to 982 properties for sale in July. The number of homes under contract did decrease a bit to 1,122 from the high this year of 1,270 in May.

Here is a closer look at what is happening in the Seattle real estate market and trends for some its key neighborhoods:

Inventory and Pendings

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All five of my listings are currently pending and were snapped up quick!

Ravenna Area Residential Listed at $800,000 – pended in 7 days
View Ridge Area Residential Listed at $550,000 – pended in 26 days
University District Area Residential Listed at $525,000 – pended in 9 days
Ravenna Area Residential Listed at $439,950 – pended in 19 days
Townhome in Shoreline Listed at $375,000 – pended in 7 days

Median Sales Prices

The median sales price for Seattle for residential and condos decreased very slightly last month to $506,050 from the previous high of $507,500 the month before. However, year over year, the median sales price is up 11.7% since last July when it was $453,150. I expect median sales prices to continue to increase through the rest of 2015 until we can satiate demand either through more homes on the market or a decrease in buyers (which could be imminent if interest rates rise).

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There is still time to sell if you want to take advantage of these market conditions. Things may start to change if the Federal Reserve increases interest rates in September (which, according to sources such as the Wall Street Journal, is likely to occur soon). Even if you are looking for an assessment of how your asset has appreciated, or may appreciate in the coming years, please contact me – your Seattle Home Guy – at sold@windermere.com or give me a call at (206) 226-5300.

Seattle Real Estate Trends, June 2015

Posted on July 14, 2015 by Steve Laevastu

The Seattle real estate market is hot and not just because of the weather! Multiple offers continue to be the name of the game. For the 1,241 properties in Seattle that sold in June, the average days on market was 20. The average list to sales price ratio for residential solds was 104.27% while it was 102.341% for condos. This is indicative of multiple offers for both types of property around Seattle.

Here is a closer look at what is happening in the Seattle real estate market and some of its key neighborhoods.

Inventory and Pendings

The number of condos and homes for sale in Seattle was at 966 for June which is 36.3% lower than June of 2014. Usually as we get into the summer months, the number of homes on the market increases. However, with waning new homes coming on the market and the current inventory going under contract quickly, there aren’t enough homes for sale for the number of buyers.

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Median Sales Prices

The median sales price for Seattle hit yet another new record in June of $507,750. I am seeing gains in the neighborhoods I track as well. Interest rates are still near 4% which is a slight rise from this winter/spring when Freddie Mac reported it as low as 3.59% (for the week of February 5^th), but 4% is still a screaming deal and the buyers are out looking for any real estate for sale.

In fact, I have nine listings right now. They have all pended within an average of 15 days with the exception of a new one I put on the market just today in Ravenna. I expect it will go quickly and for multiple offers!

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I would love to talk with you about your real estate investment goals or let you know where your home stands in relation to today’s market. Contact me – your Seattle Home Guy – at sold@windermere.com or give me a call: (206) 226-5300.

What Population Growth Means for the Seattle Housing Market

Posted on June 29, 2015 by Steve Laevastu

My clients have been asking me lately what is causing the huge inventory challenges that we are seeing right now in our real estate market. The number of homes for sale in Seattle and the surrounding area is not only historically low for this time of year, but the demand for this housing is causing prices to escalate rapidly, harkening back to the last housing surge we had before the housing market crashed. There is fear about Seattle developing a bubble. However, it is important to note that the conditions that caused the increases back in 2006-2007 are different than what causing this high demand today.

Back in 2005-2007, a good portion of the housing demand was caused by the ease of obtaining a loan. Not so today. Not only are lending standards much more stringent, but increases in population are one of the key driving factors in the demand for housing. Let’s take a look at what is happening in Washington and Seattle.

The new data provided by the Washington State Office of Financial Management (OFM) will come out in just a few days (June 30^th). However, last year’s data released June 30^th, 2014 showed that Washington State’s population increased by 85,800 between 2013-2014 (a 1.25% gain) which was the largest one-year increase since 2008.

OFM also indicated that migration from other states was the largest component of this increase (49,200 people net). Natural increases (birth minus death) accounted for the rest of the increase.

Additionally, 75% of the state’s population increase impacted the five largest metropolitan counties: Clark, King, Pierce, Snohomish, and Spokane due to the economic opportunities in those areas.

What is interesting is OFM also reported that 31,000 new housing units were added across the state. Even if you averaged two people per household, there is still a shortage of about 20,000 units. And that is just due to population!

Now let’s take a closer look at Seattle. Between 2010-2014, Seattle’s population grew by 31,840 people. In that same period, 14,823 housing units were added. Again, if we estimate two people per unit, that still gives us about a 2,000 shortage just within Seattle.

I am not concerned about a housing bubble right now. The demand we are seeing is a natural component of a strong economy and increases in population. However, if you have concerns, I would be happy to talk with you about those. Give me a call at (206) 226-5300 or send an email to sold@windermere.com.

Seattle Real Estate Trends, May 2015

Posted on June 11, 2015 by Steve Laevastu

Just how low can our inventory go? According to the Northwest Multiple Listing Service (NWMLS), our the number of homes (residential and condos) available for sale in the City of Seattle was only 992 in May. Although this isn’t the lowest it has been in the last 10 years (the lowest was 836 in January, 2015), this is the lowest inventory in a May since 2005 by a longshot. The second closest May had 1,451 listings in 2013.

Here is a closer look at what is happening in Seattle and some key neighborhoods:

Inventory and Pendings

While Seattle’s inventory is waning, the demand, measured by homes under contract or pendings, is on the rise. Seattle has 1,330 homes under contract in May, which is again the highest number on record for a May. The only other month that had more pendings in the last 10 years was March, 2005 with 1,362.

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Median Sales Prices

Seattle hit a new median home sales price record in May at $482,500. This is a 9.67% change from May of 2014. The neighborhood report below is a bit of a mixed bag, even showing some losses, but also some big gains!

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I would love to talk with you about your real estate investment goals or let you know where your home stands in relation to today’s market. Contact me at sold@windermere.com or give me a call: (206) 226-5300.

Seattle Real Estate Trends, April 2015

Posted on May 12, 2015 by Steve Laevastu

Listing Inventory

Below is a table comparing the number of active listings (supply) and pendings (demand) for several of the Seattle neighborhoods I specialize in: Central Seattle, Queen Anne / Magnolia, Belltown / Downtown, Ballard / Greenlake, and North Seattle. We are comparing April 2014 with April 2015.

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Homes in the Seattle market are selling like hotcakes this spring. The last few homes I have listed have sold very very quickly. I currently have three listings on the market – one is just coming on today in Ravenna (NWMLS #785368 – a 1,860 square foot remodeled home with Mt. Rainier views priced at $650,000), one in Whittier (NWMLS #781505 – a 1,880 square foot Cape Cod priced at $500,000 and on the market 7 days), and one in View Ridge (NWMLS #781486 – a 3,280 square foot Mid-Century Modern with a view of the lake and mountains priced at $1,200,000 and on the market for 11 days). I expect they will all sell in a matter of days.

Median Sales Prices

Median Sales Prices continue to creep up due to the inventory shortage which I predict will continue as long as our population is on the rise due to Seattle’s strong economy and there isn’t enough new construction to satiate the demand.

Below are the median sales prices for the neighborhoods I track, comparing April 2014 with April 2015. There are significant price increases in Queen Anne / Magnolia, Ballard / Greenlake, and North Seattle. Central Seattle and Belltown/Downtown have a number of condominium sales which are a slightly different animal than the predominantly residential sales we see throughout the rest of the city.

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This spring and summer is turning out to be one of the best times to sell in years. Once interest rates start rising, however, those trends may change. If you would like to know where your home stands in relation to the market, please give me a call or send me an email: (206) 226-5300 or sold@windermere.com. Don’t look back and say, “If only we had sold then” Now might be your moment!

Seattle Real Estate Trends, March 2015

Posted on April 13, 2015 by Steve Laevastu

The Seattle area’s inventory challenges are continuing as we finish out the first quarter. This real estate market is allowing sellers to sell for top dollar as long as they are priced at market when they list. There are also opportunities for people moving out of the area (even to Snohomish, Pierce, or Kitsap counties and further out) as though inventory is starting to affect those areas as well, the overall demand is not as high as it is in Seattle.

Here is a closer look at what is happening in Seattle and some key neighborhoods:

Inventory and Pendings

Seattle’s overall inventory has grown by 12 listing since December (859 in December versus 871 in March). In the meantime, pendings have leaped by 538 in December to 1,268 for March. It is unusual to have that number of pendings compared to the total inventory.

Median Sales Prices

Consistency is the word for March! Just as the above inventory has decreased throughout, pendings have increased, prices have increased as well. Belltown is just beginning to see a comeback after a temporary lull, but pendings have skyrocketed (up 100% over last year) and prices are up a modest 2+%. The price increases in the other areas have seen a much stronger increase.

Seattle Real Estate Trends, February 2015

Posted on March 12, 2015 by Steve Laevastu

As Seattle’s spring real estate market gets underway, the lack of available Seattle homes for sale continues to be the leading story:

Inventory and Pendings

In fact, many homes that are coming on the market are getting snapped up very quickly. All of my listings are now pending with an average of only 8 days on market. These listings range from $550,000 to $900,000 and cover Wedgwood, Fremont, Ravenna, and Hawthorne Hills neighborhoods.

Below we compare the number of active listings (supply) and pendings (demand) for several of our Seattle neighborhoods including Central Seattle, Queen Anne and Magnolia, Belltown and Downtown, Ballard, North Seattle and Greenlake neighborhood. Our table includes single family residences as well as condos comparing February 2014 and 2015. seattle-trends-2015-02-1

Median Sales Prices

Although inventory is down throughout the city, we are seeing a mixed bag when it comes to median sales price averages comparing last month to the year before. We have a high of +16.29% in Ballard and Greenlake while we have a 9% decrease in Belltown and Downtown with a variety in-between as inventory adjusts throughout Seattle.

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I would love to talk with you about your real estate investment goals and help you make a plan, whether that is a five month plan or five years. Contact me at sold@windermere.com or give me a call: (206) 226-5300.