Tag Archives: condo

Downsizing 2.0

It’s time for another story of downsizing, this time the story of Judith.

Judith and I met a couple years ago when she came to a class I was teaching at the Phinney Neighborhood Association. The class was on the steps and process of selling a home. She came up to me after the class to talk about her situation. She owned a one-bedroom home in the Ravenna neighborhood of Seattle which she purchased as a foreclosure in 1975 for around $12,000. She and her partner Kurt were wanting to sell this home and downsize into a condo with no steps involved.  She mentioned that they had been looking at condos for around 15 years and hadn’t seen much that they liked. She was also concerned about the amount she would have to pay in capital gains taxes.

For the next year or two, we looked at a lot of condos, but given her budget and specific needs we weren’t finding anything she liked. This past February we did, and she submitted an offer on a Bitter Lake condo, but was outbid. We kept looking.

This summer she was encouraged to look at a lovely unit at the Sequoyah in Edmonds. She hadn’t wanted to leave Seattle but she was willing to look. While it was further away than she wanted, she had worked in Edmonds for many years so she was comfortable with the area. After seeing the condo and realizing it had everything she wanted and more, we submitted an offer and she got this unit.

She purchased the condo contingent on the sale of her house, so we had to immediately list. Many real estate brokers feel late August is not the time to bring a home on the market but we decided to do so anyway. Three days on the market and we had an offer significantly over list price.

The buyers of her home allowed for Judith to stay in the house for a couple months if needed. The condo she was buying would not be available until the end of September so Judith’s plan is to move in October. She was able to have her purchase funds sent directly from the first escrow company to the second escrow company. Judith has put aside enough funds to cover her estimated capital gains taxes.

For me as her real estate broker, I was so happy to help her move out of the house and into the condo. She loved her house and was sad to be leaving it but is very excited to be moving on with her life. These transactions involved of juggling, and that’s what I’m good at – I was able to ensure that both transactions closed without any issues.

Congratulations Judith and Kurt!

The transaction details.

House listed for sale August 24th for $590,000. 3 days on market. Sold for $617,000. Closed September 17th.

 

 

 

 

 

Condo purchase closed October 1st for $385,000.Condo purchase closed October 1st for $385,000.

Shift in the Market?

We are seeing a shift in the market, but it’s not a cause for alarm. This shift is a balancing. We have reached the point where prices have hit the top and now they’re settling down. A recent article from CityLab.com explains it well:

“Housing prices are cooking. Across the nation, the price of homes is rising faster than the rate of inflation—in some places by a factor of three. That’s true of high-cost cities such as Seattle and San Francisco and lower-cost cities such as Charlotte and Tampa alike. And the overheated market for homes is costing the middle class the American dream.

Nationwide, the price for homes is approaching the zenith seen in 2006, just before the market fell into a foreclosure crisis and the economy sank into the Great Recession. . . 

But there are key differences between the housing peak in 2006 and the housing peak today. This surge in housing prices is not necessarily evidence for a bubble—much less any indication that a bubble is about to burst.

Late in July, the S&P CoreLogic Case–Shiller U.S. National Home Price NSA Index tracked a 6.4 percent annual gain in home prices for May 2018. This index has recorded year-over-year increases of at least 5 percent every month since August 2016—a sign of the strength of the recovery. . . . in Seattle, which saw a year-over-year price increase of 13.6 percent for May, home prices are already well above the 2006 high-water mark.

But since most workers aren’t earning 6 percent raises year after year, eventually this party has to come to an end. (Indeed, for four-fifths of privately employed workers, wages are actually falling.) Housing prices will stabilize or soften because they have nowhere else to go. The prevailing trend is unsustainable. “If something can’t go on forever, sooner or later it will end,” says David Blitzer, managing director for S&P Dow Jones Indices. With mortgage rates and prices rising, sales in both new homes and existing homes are starting to slow. ‘Either buyers have gone for the summer, because it’s too hot to look at housing, or they’re pausing to see what’s going on,’ Blitzer says. ‘If the pause continues, you’ll see sales go down.'”

And this is what we’re now seeing in Seattle. Most homes are not selling in 7 days and significantly above list price right now. I’m seeing a significant increase in price reductions and less multiple offer situations as well.

What does this mean for you? If you’re a buyer, this is all good news. It means you may be able to get into the market without a bidding war and having to look at homes significantly below your price point.

If you’re a seller, it’s not a time to panic. This shift is actually creating a healthier market. You probably will get less for your home than if you listed 6 months ago. But you probably will still have significant profits if you sell as prices are at record highs. We still have a significant shortage of housing so even with the increased inventory, demand still outweighs supply. Inventory levels are still under 2 months which means it’s a seller’s market – a balanced market would be 4-6 months, and a buyer’s market would be greater than 6 months.

As I’ve said often, there’s no crystal ball in real estate. In my predictions for 2018, I said price increases would slow down. In fact, year over year prices are still up about 11%. I also predicted interest rates would hit 5% before year-end; we have already hit this number which is reducing buying power for buyers.

If you’re thinking of buying, this is the time to get pre-approved and start your buying process. If you’re a seller, I’d be moving quickly to get your home on the market while prices are still at the peak. Please call me at 206-790-0081 or email me at Jamie@JamieFlaxman.com for a complimentary market analysis for your home.

It’s Crazy Out There

This morning in our Monday morning office meeting, several brokers mentioned that they have had insane numbers of showings on their new listings. One broker with a Ballard listing mentioned that in 2 days, she had 108 real estate brokers preview or show her listing, and that even in yesterday’s downpour, she had more than 100 people through her open house.

Why is this? Because there’s little to no inventory of homes and condos for sale in Seattle. At then end of December, there was just over 2 weeks of inventory available.

Are you considering selling your home or condo? On the fence about doing so? Let’s talk and discuss your home selling options. Give me a call/text at (206) 790-0081 or email Jamie@JamieFlaxman.com.

Home Buyer Class

downtown from Kerry Park - stock photo

Want to own a home with a view like this? Or any home or condo for that matter? Here’s your opportunity to learn how. I am teaching Home Buying 101 on Feb. 19th, along with loan officer Kathryn Keller of Golden Empire Mortgage. The class is appropriate for first time buyers and those who haven’t purchased a property in awhile. Will be held at the Phinney Neighborhood Association from 6:30-8:30pm.

Reserve your spot by calling 783-2244 or online at http://pna.nonprofitsoapbox.com/wellhome-classes/event/25

First Time Home Buyer Class

Are you considering purchasing your first piece of real estate? Whether it be a single family home, townhouse, or condo, this buyer class may be for you.

The class will go in depth on both the buying process and on how to obtain a mortgage. You will also learn about down payment assistance programs, where if you earn less than $97,000 per year you may be eligible for no-interest, no monthly payment loans from the state. This course meets the requirement for Washington State Housing Finance Commission down payment assistance programs, including the Mortgage Credit Certificate (MCC) program. The course instructed by Ryan Niles from Cornerstone Home Lending and me.

Two classes are scheduled this summer: Sunday, July 27th and Sunday August 24th. Both classes will run from 10am-3pm and will be in the Wallingford neighborhood.

The course is free and there is no obligation to use our services. We ask that you bring a sack lunch. Please sign-up in advance by contacting me at jamie@jamieflaxman.com or 206/790-0081. For more information on down payment assistance programs, please go to the Washington State Housing Finance Commission website.

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