Tag Archives: Edmonds

Market Update

The Puget Sound area real estate market has shown a shift over the past few months, and we’re moving toward what is considered a balanced market. A balanced market is one that does not favor the buyer or the seller and is the healthiest possible situation. Typically, a balanced market is considered one with 4 to 6 months of inventory; less than that favors the seller, more than that favors the buyer. Here are some selected inventory levels for September:

Inventory in Months King County Seattle Snohomish County Edmonds
Single Family Homes 3.0 2.9 2.4 2.8
Condos 2.9 3.9 1.7 1.3

Moving toward a balanced market is a good trend. It puts both buyers and sellers on equal footing. Mike Grady, COO of Coldwell Banker Bain, states “buyers are at long last now seeing properties that stay on the market longer. Listings that are priced appropriately, and not based on the feverish market we saw just a few months ago are still selling quickly, and home prices are still showing 8 percent appreciation year-over-year, more than double the rate of inflation.”

What does this mean to you if you’re considering selling your home? Homes are selling if they are priced properly. More than ever it means you need an experienced REALTOR who will provide you with a detailed pricing analysis based on what is happening in today’s market, not on sales from even 3 or 6 months ago. And automated values are even less reliable than they have been because they may not reflect what is happening today. When I work with a seller, I give you a detailed report and recommendation and update this report frequently to adjust for market change.

If you’re a buyer, this is a fabulous time to get in the market. With prices stabilizing and interest rates increasing, waiting might be not be a good idea. What you can afford today might be less than what you can afford next year. I can provide you with recommendations of lenders who can help you determine what your buying power is. Additionally, with the market becoming more balanced, the need for pre-inspections and waiving of contingencies is passing.

I’d love to talk with you about the market in your neighborhood and why now might be the time for you to buy or sell. Give me a call/text at (206) 790-0081 or email Jamie@JamieFlaxman.com to set up a time to chat.

 

 

 

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.

I’m an SRES

What’s an SRES you may ask. It’s a Seniors Real Estate Specialist. As a SRES, I have received extensive education in working with people aged 50 and older in preparing and selling their home. I have the knowledge and expertise to counsel you through the major financial and lifestyle transitions involved in downsizing, relocating, and selling the home you have owned for decades. I offer you the opportunity to complete your real estate transaction with the patience, professionalism, and expertise you deserve.

For many people, they know it’s time to sell their home but the thought of moving and selling is overwhelming physically and emotionally. Here is where an SRES can step in and help. I have access to resources to help you with this major transition and will be there with you through all steps of the selling and moving process.

There are many reasons that you may be considering a move.

  • The cost of maintaining your home has become too high.
  • You want to be closer to your children and grandchildren.
  • Your home no longer meets your accessibility needs.
  • Your home is more home than you currently need.

Whether you’re looking to move to an active 55+ community, a senior-supported living situation, a smaller house, or a condo, I am here to help. I have worked with many sellers who have made such moves and understand how difficult this can be.

Give me a call at 206-790-0081 or email me at Jamie@JamieFlaxman.com and let’s talk about how I can be of help.

 

Market Update

Home shoppers in Western Washington can choose from the largest supply of homes in three years and they are facing fewer bidding wars. August statistics from the Northwest Multiple Listing Service show prices appear to be moderating (up about 6.7 percent overall), but brokers say they are not bracing for a bubble, or even anticipating a quick shift to a buyers’ market. “There have been incremental increases in listing inventory the past few months,” noted Gary O’Leyar, the designated broker/owner at Berkshire Hathaway HomeServices Signature Properties, but, he added, “By no means have inventory levels reached a point that is deemed to be a balanced market.” Prices were down in August but are still up from 2017.

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 to discuss your real estate needs.

 

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.

Marketing Plans

This morning I’ve been working on marketing plans for two different sellers, so I thought I’d share with you what goes into a plan.

First, no two plans are identical. Price range, location, timing, features of the home – all of this comes into consideration.

It all starts with pricing. I will do a market analysis to determine a recommended price range for your home. I don’t rely on automated values, but look at actual listings and sales, market activity, and market conditions. If we don’t price your home properly, no matter how great the marketing materials, it probably won’t sell. With our current market, you definitely don’t want to overprice your home.

The first thing I look at is if your home meets the criteria for Coldwell Banker Global Luxury. This is based on zip code and condition/features of the home. If your home qualifies, it will be included in Coldwell Banker’s luxury marketing materials.

Are staging and landscaping necessary for your home? We want your home to show at its best. All homes I list will have high definition professional photography, and then depending on many factors, some form of video. That video might be a video tour, a live walk-through video, a 3-D Matterport video, and/or a neighborhood video. Most listings will have drone photos as well.

The photos and video will be used for all the online marketing, including the listing itself and its syndication, social media, and websites. Photos will also be used for print marketing such as home flyers/brochures and mailings to neighbors and targeted buyers.

Most listings will have 3-4 open houses during the first week on market. I also network to my local sphere of real estate brokers.

Want to know what a marketing plan for your home might look like? Give me a call at 206-790-0081 or email to chat.

Building Community. One Home at a Time.

You may have seen my tagline before – Building Community. One Home at a Time – and have wondered what does that actually mean.

My job or more specifically, my purpose in life through my job, is to help people with their housing needs, while enhancing and improving the quality of our community. I began my professional career in 1985 as a social worker with a similar purpose, and have incorporated that value into my real estate business. At the core of who I am I have 4 values:

  1. integrity and honesty
  2. social responsibility, charitable giving, and volunteerism
  3. service to the customer above all else
  4. excellence in reputation

I am implement these values in a host of ways. My dedication to each of my clients means that I focus on helping you achieve your goals and advise you on what’s in your best interest, not my best interest. My clients have given me stellar reviews because of my drive, commitment, and focus on helping them with their housing needs, all with the highest level of integrity and ethics.

I also strive to make a difference in our community. I volunteer with numerous organizations and every closed sale results in a charitable contribution.

My reputation is important to me, and I hope that as a result of your past experience working with me or with the impression I have given you, that you would trust me to help you, your family, your friends, and your colleagues with their real estate needs. I appreciate your sharing my contact information with others and letting me know how I can help.

There are many ways to learn more and to reach out to me:

How Many Offers Does it Take?!

It’s a tough market out there for buyers. With demand for housing seriously outweighing supply, buyers are competing on most listings, and losing out on many.

The most offers I’ve had to write for a client was 2 years ago, when it took 8. I’ve heard of buyers who have submitted in the double digits.

Right now I have 2 sets of buyers who are on the offer roller coaster. One set has submitted 4. The other 2 (and we’re waiting to hear on the 2nd). It’s frustrating. You find a house you love and want to buy, but end up competing with 26 other offers (yes, last week buyer set 1 was one of 27 offers). You move on, but then you go through it again. What to do? Here are some tips I offer to buyers:

  • Know the numbers. You know what your maximum you can spend is. But also know the market numbers. If homes are selling 10-20% above list price, you should be looking at properties listed 10-20% below your maximum.
  • Have your financing lined up, and make sure your lender has taken you all the way through underwriting (except for a property address). Have a local lender who is available on the weekends.
  • Look at homes that have been on the market for more than 10 days. These are less likely to receive multiple offers. In this case, you might be able to look at homes at or slightly above your maximum as you might be able to get an offer accepted below list price.
  • Think about what you can compromise on. Could you go a few miles farther out? Is having a garage more important than getting a house? Don’t restrict yourself to fenced yards, you could put a fence in yourself.

For more ideas on how to compete or to talk about the real estate market, please call/text me at 206-790-0081 or email me.

Why You Should List Now!

You’ve heard it before but I can’t say it enough – we have a severe shortage of homes for sale in the Puget Sound Region. This is the number of active listings in various cities as of this morning:

For comparison purposes, in December 610 homes SOLD in Seattle, almost double our current inventory of available homes.

The number of buyers has increased substantially as well, resulting in multiple offers on most properties. Prices are continuing to increase as well.

So why should you sell now? Traditionally we see more homes for sale in the spring so get your home on the market NOW to reach out to the most buyers.

Give me at call/text at (206) 790-0081 or email Jamie@JamieFlaxman to discuss listing your home.