What’s In Store For The 2017 Seattle Housing Market?

somerset view

By Matthew Gardner, Chief Economist, Windermere Real Estate

2016 was another stellar year for the Seattle housing market, in which a surplus of buyers and a deficit of sellers drove home prices higher across the board. So, can we expect to see more of the same in 2017? Here are some of my thoughts on the Seattle/King County housing market for the coming year:

  1. Our market has benefited greatly from very healthy job growth, driven in no small part by our thriving technology companies. Economic vitality is the backbone of housing demand, so we should continue to see healthy employment growth in 2017; however, not quite as robust as 2016. Migration to Seattle from other states will also continue in the coming year, putting further pressure on our housing market.
  2. Continue reading

Posted on January 3, 2017 at 3:20 pm
Stephanie Kristen | Category: economy, market trends

Seattle/ Eastside Market Update – November 2016

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.
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Posted on November 28, 2016 at 4:14 pm
Stephanie Kristen | Category: economy, market trends, statistics

The Trump Effect – How will it impact the US economy and housing?

trumppresidency

The American people have spoken and they have elected Donald J. Trump as the 45th president of the United States. Change was clearly demanded, and change is what we will have.

The election was a shock for many, especially on the West Coast where we have not been overly affected by the long-term loss in US manufacturing or stagnant wage growth of the past decade. But the votes are in and a new era is ahead of us. So, what does this mean for the housing market?

First and foremost I would say that we should all take a deep breath. In a similar fashion to the UK’s “Brexit”, there will be a “whiplash” effect, as was seen in overnight trading across the globe. However, at least in the US, equity markets have calmed as they start to take a closer look at what a Trump presidency will mean.

On a macro level, I would start by stating that political rhetoric and hyperbole do not necessarily translate into policy. That is the most important message that I want to get across. I consider it highly unlikely that many of the statements regarding trade protectionism will actually go into effect. It will be very important for President Trump to tone down his platform on renegotiating trade agreements and imposing tariffs on China. I also deem it highly unlikely that a 1,000-mile wall will actually get built.

It is crucial that some of the more inflammatory statements that President-Elect Trump has made be toned down or markets will react negatively. However, what is of greater concern to me is that neither candidate really approached questions regarding housing with any granularity. There was little-to-no-discussion regarding housing finance reform, so I will be watching this topic very closely over the coming months.

As far as the housing market is concerned, it is really too early to make any definitive comment. That said, Trump ran on a platform of deregulation and this could actually bode well for real estate. It might allow banks the freedom to lend more, which in turn, could further energize the market as more buyers may qualify for home loans.

Concerns over rising interest rates may also be overstated. As history tells us, during times of uncertainty we tend to put more money into bonds. If this holds true, then we may see a longer-than-expected period of below-average rates. Today’s uptick in bond yields is likely just temporary.
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Posted on November 10, 2016 at 4:31 pm
Stephanie Kristen | Category: economy, interest rates, market trends

Seattle/ Eastside Market Update – September 2016

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.

Eastside

Click image to view full report.
Click image to view full report.

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.

Continue reading

Posted on September 28, 2016 at 12:47 pm
Stephanie Kristen | Category: bellevue, economy, market trends, real estate, seattle, statistics

Seattle/Eastside Market Update – August 2016

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.

Eastside

 

Click image for full report.
Click image for full report.

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.

 

King County

 

Click image for full report.
Click image for full report.

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.

 

Seattle

 

Click image for full report.
Click image for full report.

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.

 

Snohomish County

 

Click image for full report.
Click image for full report.

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.

Posted on August 11, 2016 at 10:58 am
Stephanie Kristen | Category: economy, interest rates, market trends, statistics

Why Buyers Who Work with Windermere Win the Sale


 

 

Today, 43% of home sales involve multiple offers.
Buyers working with a Windermere broker are 19% more likely to win the sale.

Why Windermere brokers are most successful: 

  • Windermere brokers help position their buyer's offer to have the greatest appeal to the seller. 
  • Windermere brokers receive extensive training on how to create the most competitive offer and negotiate successfully in a multiple offer situation.
  • Other brokers are more confident in completing a transaction with a broker from Windermere than they are with any other real estate company.

 

A study in King County showed that brokers

are more confident working with Windermere brokers than any other brand.

Let me help you win the house you want.

I'd love to answer any questions you have, and walk you through the entire process. Call me and let's get started!

 
Posted on July 2, 2016 at 3:47 pm
Stephanie Kristen | Category: market trends, real estate

Seattle/Eastside Market Update – June 2016

House hunters looking for relief from soaring rents continued to snap up homes at a record pace in May. By one analysis, 80 percent of the homes coming on the market in King and Snohomish counties sold within the first 30 days – many within the first week. With a severe lack of inventory in prime buying season, sellers are getting record prices for homes.

Eastside

 

Click image to view full report.
Click image to view full report.

The Eastside, already the most expensive area in King County, saw home prices set a new record in May. Median home prices on the Eastside were up by over $100,000 compared to last year, reaching an all-time high of $760,000. With just a month of inventory available, most new listings here drew multiple offers. Even with soaring prices, buyers should plan to act quickly and count on navigating multiple offers.

 

King County

 

Click image to view full report.
Click image to view full report.

With 20 percent fewer homes on the market here than last year, competition among buyers remained fierce. Tight supply and high demand sent prices surging. For the fourth straight month, King County set a new record, with the median price of a single family home sold in May jumping 16 percent over last year to $560,000. The market is in dire need of new homes to ease the inventory crunch.

 

Seattle

 

Click image to view full report.
Click image to view full report.

Seattle has the 4th fastest growing population in the country. That growth has fueled demand. Seattle trails only Portland on the list of markets with thefastest-growing home prices. A single family home here cost $641,250 in May, an increase of 14 percent over the same time last year. While slightly higher than the median price last month, that figure is down from the peak in February.

 

Snohomish County

 

Click image to view full report.
Click image to view full report.

Since the close-in neighborhoods in Seattle and Bellevue have priced out most first-time buyers, they continued to look to Snohomish County as a more affordable option. The median price of a single-family home increased 11 percent over last year to $389,950. That price is slightly above the pre-recession peak in 2007. However, at 30 percent less than the median price in King County, it’s a relative bargain.

Posted on June 30, 2016 at 10:27 pm
Stephanie Kristen | Category: bellevue, economy, market trends, seattle, statistics

Seattle / Eastside Market Update – May 2016

The supply of homes for sale in April was up over March, indicating that more sellers are deciding to list their homes. But with less than a month of inventory available in the area, it’s still a seller’s market. While prices were up over last year, the increases aren’t as lofty as they were in the first quarter of this year. Buyers looking for affordable housing continue to push their search outside the more expensive urban cores.

Eastside

Click image to view full report.

Click image to view full report.

At $730,000, the median price of a home on the Eastside was up 11 percent over last year. That figure was down slightly from February and March, suggesting that prices may be moderating. Competition for homes has not moderated. Brokers continue to report homes on the Eastside selling very quickly and often for over asking price.

King County

Click image to view full report.

Click image to view full report.

After breaking records for home prices in February and March, King County reached a new record-high in April. The median price of a single-family home was $540,000, a 12 percent increase over the same time last year. The more affordable areas in the south and north ends of the county saw the greatest increases, with home prices climbing almost 20 percent in these outlying areas.

Seattle

Click image to view full report.

Click image to view full report.

Seattle continues to have the tightest inventory of homes in King County. An influx of young, well-paid technology workers has fueled demand for homes close to the city. The median price of a single-family home increased 15 percent over a year ago to $637,250. But like the Eastside, that number was down slightly from February and March.

Snohomish County

Click image to view full report.

Click image to view full report.

Snohomish County posted more moderate price gains than King County. The price of a single-family home increased just 4 percent over last year to $375,000, down from a median of $385,000 last month. With prices here a third less than in King County, some buyers are willing to trade a longer commute for a more affordable home.

Posted on May 31, 2016 at 11:12 am
Stephanie Kristen | Category: economy, market trends, statistics

Housing Economics 101 – Q1 2016

Historically low inventory levels, how we got here, and what to expect in the coming year

The housing market is performing remarkably well, with the exception of incredibly low inventory levels in many areas throughout the country. Why is this happening? Windermere’s Chief Economist, Matthew Gardner, explains why and offers his predictions for what we can expect in the future. 

Posted on May 23, 2016 at 12:35 pm
Stephanie Kristen | Category: economy, interest rates, market trends, real estate, statistics

4 Reasons to Sell Your House Now

Blank Real Estate Sign & New Home

 

1) Sale prices are at all-time highs.

Home prices in King County hit new highs last month. The median price of a single family home sold in King County in February was $514,975, a whopping 20% increase over a year ago. The median price in Seattle was up 24% to $644,950. The Eastside’s median price was up 20% to $739,975. You may be surprised at how much your home is worth today.

home-prices-high

2) Competition among buyers is driving prices even higher.

Despite increasing prices, there is intense competition among buyers because inventory is at all-time lows. That means multiple offer and bidding wars, increasing the likelihood that your home will sell above your asking price.

3) Homes are selling fast.

With such limited inventory, homes in King County are selling rapidly – sometimes in days. If you list your house now, chances are you’ll get a buyer quickly.

4) You can make the sale work to your needs.

With competition for homes so fierce, you have the freedom to make the deal that works best for you. Many buyers are paying cash. They’ll also make concessions. Do you want stay in the home a few months after the sale? Want a large earnest money payment? You’re in the driver’s seat, and many buyers are willing to do what it takes to get the home they want.

It’s a seller’s market.
Are you ready to take advantage of it?

Posted on April 12, 2016 at 11:27 am
Stephanie Kristen | Category: economy, interest rates, market trends, real estate, statistics