A Fresh Look at the Local Market – February 2017

Local Market Update – February 2017

The local real estate market remains very hot with extremely low inventory and prices that are rising faster than anywhere else in the country. However, that rate of price growth appears to be cooling from last year, dropping to its slowest pace in three years. Predictions of more interest rate hikes may further limit price increases. Those considering to sell their home may want to take advantage now of this perfect storm of record-low inventory and record-high prices.

Eastside

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Click image to view full report.

Those looking to buy a home on the Eastside continue to face rising prices and strong competition for limited inventory. With less than a month’s supply of homes, properties here are getting snapped up as soon as they come on the market, and often sell for well over asking price. The median price for homes sold in January climbed 14 percent compared to a year ago to $793,000.

King County

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Click image to view full report.

Buyers scrambling to beat increasing interest rates have depleted an already record-low supply of homes. Fewer than 1,600 single-family homes were on the market in King County in January, beating December’s all-time low. The median price of a single family home was up 7 percent over last year to $525,000, but that is the cheapest home prices have been in 11 months. Time will tell whether that price moderation is an anomaly or the continuation of a trend.

Seattle

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Click image to view full report.

After months of robust increases, Seattle home prices slowed down in January. The median price of a single-family home in the city inched up 3 percent over a year ago to $635,000. Some areas of the city even saw small price drops. That should spell good news for buyers, yet razor thin inventory continues to make it a solid seller’s market.

Snohomish County

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Click image to view full report.

After months of double-digit price increases, Snohomish County may be starting to experience the same market softening as King County. The median price of a single-family home in Snohomish County rose 8 percent as compared to a year ago to $410,000. Tight inventory continues to be a problem. There are 40 percent fewer homes on the market here than the same time last year.


Posted on February 21, 2017 at 1:46 pm
Mallory Hanley | Posted in Uncategorized |

Local 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.

Eastside

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Click image to view full report.


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.

King County

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Click image to view full report.


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.

Seattle

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Click image to view the full report.


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.

Snohomish County

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Click image to view full report.


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.


Posted on November 14, 2016 at 3:10 pm
Mallory Hanley | Posted in Local Market Update |

Seattle and Its First-Time Homebuyers

The S&P Case-Shiller Home Price Index was just released earlier this week ranking the major metropolitan areas across the U.S. by the fastest-rising home prices. While we have not muscled out Portland for the No. 1 spot on the list, we came in a close second having narrowed the gap significantly.

According to an analysis by The Seattle Times, Seattle-area home prices are now rising at their swiftest pace in 2.5 years. While we missed out on taking over Portland for the top spot on the Case-Shiller index, Seattle did increase its lead over third-place Denver where prices only rose 8.8 percent over last year.

Portland, having led the Case-Shiller index all year, had the fastest-rising home prices up 11.7 percent over a year ago. In Seattle, home prices were up 11.4 percent over 2015. Both Pacific Northwest cities saw home costs increase at more than twice the national rate of 5.3 percent. By this point, the “record-high home price” headlines are trite. So what makes this time so important?

Well, for starters, this is the eighth straight month of double-digit growth. That in itself is something fairly noteworthy. Additionally, as The Seattle Times states, homes across all price levels are getting more expensive, but “the biggest increase was in the cheapest set of homes” which were up 12.4 percent. The smallest jump was for luxury homes, up 10.9 percent.

Home prices have been soaring consistently for more than four years having jumped 59 percent since 2012. Starter homes have seen prices jump 75 percent in that time frame. Our local millennials are ready to take advantage of the low mortgage rates, but the starter home just is not what it used to be.

What does this mean for the Eastside?

We want to take a look at Windermere Real Estate’s latest housing market update where we reported the median home sale price at $750,000. That is a solid 10 percent increase over the home prices we saw last year. By comparison, the median sale price of a single-family home was $630,000 last month.

First-time buyers are faced with these skyrocketing home prices, and even though other housing market factors are playing in their favor, it can be an intimidating time to jump into the real estate world. Make sure you team up with me so I can help you navigate the real estate market and can turn your homeownership dreams into a reality.

Read more from our source, The Seattle Times.


Posted on October 31, 2016 at 4:27 pm
Mallory Hanley | Posted in Home Buying, National Housing Market |

Local Market Update – October 2016

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.

Eastside

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Click image to view full report.


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.

King County

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Click image to view full report.


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.

Seattle

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Click image to view full report.


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.

Snohomish County

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Click image to view full report.


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.


Posted on October 14, 2016 at 3:55 pm
Mallory Hanley | Posted in Local Market Update |

Millennials Buying Into the American Dream

Millennial buyers header

Contrary to some predictions, Millennials are making owning a home a priority. While they’re buying their first home a bit later than prior generations, they’re embracing the long-term value that home ownership brings.

1) Millennials are dominating the first-time homebuyer category today.

The median age of first-time homebuyers is 31, according to a National Association of Realtors study.

2) The vast majority of Millennials think owning a home is important.

According to a Merrill Lynch study, 81% of Millennials agree that “homeownership is an important part of the American Dream.”

Percent who agree that “Homeownership is an important part of the American Dream”
American-Dream-chart

3) Most Millennials consider owning a home more sensible than renting for both financial and lifestyle reasons.

In a survey by Fannie Mae, Millennials who own a home prefer owning over renting for these reasons:

Millennials why buy

A strong local economy, rising rents and low interest rates have all helped Millennials reach the tipping point and take the plunge into the American Dream of home ownership.

I can help first-time buyers find the best home for their needs. Reach out to me at (206) 949-5917 with any questions you have, or forward this to a first-time homebuyer you know!


Posted on September 28, 2016 at 8:44 am
Mallory Hanley | Posted in Home Buying |

Local 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

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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.

King County

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Click image to view full report.

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.

Seattle

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Click image to view full report.

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

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Click image to view full report.

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.


Posted on September 19, 2016 at 2:33 pm
Mallory Hanley | Posted in Local Market Update |

Help for Buying a Home Now

Buying Help  header Think you can't afford to buy a house? There are a number of programs that can help make the dream of buying a home a reality.

  • You don't need to put 20% down. Fannie Mae and Freddie Mac have down payment requirements as low as 3%. If you're a vet or active military, a VA loan requires no down payment.
  • Your family can help with your down payment. Fannie Mae's HomeReady Mortgage allows a down payment of just 3%, and income from grandparents, parents, relatives, and working children can be used to help qualify for the loan.
  • You don't need perfect credit. To qualify for an FHA loan, your credit score needs to be just 500 or higher. FHA loans allow a down payment as low as 3.5%, and that payment can come entirely from "gift funds."
  • BIG PLUS: There are a number of down payment assistance programs in Washington State to help you finance a home and arrange a payment you can afford.

Are you ready to start looking for a home? I can help you find programs that make buying a house more affordable. Let's get in touch!


Posted on September 2, 2016 at 3:50 pm
Mallory Hanley | Posted in Home Buying |

Local 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

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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

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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

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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

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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 17, 2016 at 3:11 pm
Mallory Hanley | Posted in Local Market Update |

Our Historic Population Growth

Residents of the greater Seattle area have all been feeling the pressures of population growth over the last several months. Not only are we seeing increased activity in the housing market, but plenty are moving to our area to take advantage of the economy, new technology jobs, quality of life, and more.

new study from The Puget Sound Regional Council reported by Geek Wire states that Seattle and the surrounding counties have added 86,320 new residents between April 2015 and 2016. This marks our largest population gain this century. When you average that out, we’re looking at about 236 new people calling Seattle home every single day. King County saw the biggest growth at 2.5 percent with 52,300 people.

If we continue with numbers at that rate, the Puget Sound area will likely pass the 4 million resident mark by the time you read this.

As Geek Wire reports, we can largely attribute this growth to the expansion of the region’s tech booms and major employers such as Amazon, Microsoft, and Boeing. The success of these companies has helped to spark a growth in the startup environment as well. Additionally, dozens of big companies have decided to set up their engineering centers here.

Geek Wire continues their analysis of the report and our population growth by reminding us that this isn’t the first time we’ve seen expansion like this. “The region’s population has grown by more than 80,000 people in one year five times since the 1960s.” They quote the report stating, “these rapid population changes have occured over two to three years before settling back to a steadier rate of change.” Looks like we may be seeing this continued growth for another year or two.

Read the full story from Geek Wire.


Posted on August 4, 2016 at 3:11 pm
Mallory Hanley | Posted in Home Buying, Home Selling |

Market Reviews – Second Quarter 2016

Our Eastside Market Review and West Bellevue Market Review are both now available for the second quarter of 2016.

Eastside Market Review

Read the full report online by clicking the image below.

Eastside_Q2_2016-cover

West Bellevue Market Review

Read the full report online by clicking the image below.

WestBellevue_Q1_2016-cover


Posted on July 20, 2016 at 11:18 am
Mallory Hanley | Posted in Home Buying, Home Selling |