Tag Archives: inventory

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.

 

2017 in Review

The story of the Seattle real estate market in 2017 continued similar to the past few years. Low inventory drove our market, with the number of new listings down from 2016 and prices up significantly. While the median sales price for a single family home citywide increased 13.7% to $705,000, in many neighborhoods that increase was even higher. For the 23 counties in the MLS area overall, inventory shrunk 19% from the end of 2016 to the end of 2017. That’s the smallest selection for any month in the past decade.

December is traditionally a slower month, but that wasn’t the case this year. While the inventory was low, the number of buyers seemed to be high, with multiple offers the norm (I heard a story of 28 offers on a Queen Anne listing as well as multiple offers even during the week between Christmas and New Year’s) and packed open houses (100+ visitors at times). At year end, there were only 256 single family homes and 95 condos for sale in Seattle, a decrease of approximately 30% from 2016.

Until we see an increase in inventory, we can expect the market to be strong. We need property owners to list their homes at higher rates as well as an increase in new construction. See my predictions on the next page for more details.

Please give me a call/text at (206) 790-0081 or email Jamie@JamieFlaxman.com if you have any questions or would like further information on the market or your specific area.

 

What’s Going on With the Market

I’m hearing from people that they think the real estate market may be slowing down. While August showed some slowing, that’s a typical trend in the region. Median sales price for single family homes was down 1.4% in August but is still up 18% from 12 months ago. And for condos, median price was up 3.1% from July and 10.7% from August of last year.

Shortage of inventory continues to drive the market. With large numbers of people moving to Seattle and a pent up desire to buy from local renters, the demand far outweighs the availability of properties. In fact, a listing I have that is now pending had multiple offers and the price escalated well above list price. (Until it closes I cannot disclose more.)

We typically see an increase in activity in September and early signs are supporting increased activity.

It’s a great time to buy or sell a home or condo. Give me an email or call (206-790-0081) to talk about your needs.

Up, Up, and Up

Seattle area home prices continue to increase on a monthly basis. In Seattle for single family homes, median sales prices in June were up 2.1% from May and 13.1% from June of last year. The number of new listings is continuing to improve, but with so many buyers in the market, they are selling even faster than they have been, with an average days on market of 12. Anecdotally, we’re hearing that while multiple offers are still the norm, they are not as crazy as they have been.

With more inventory, buyers it’s a great time to get in the market. And for sellers, it’s still the right time to sell. We have no crystal ball of what the market will be like in 3 or 6 months or next year. Give me a call/text at 206-790-0081 or email to discuss your real estate needs.

Seller Strategies for Evaluating Multiple Offers

If you are considering a sale in our market right now, depending on the price point, area, and property amenities, you may receive multiple offers for your property. Although price will likely be at the top of your list of variables to measure, there are a number of other items that may be included in the offer that should be evaluated:

  • Price – Although this is the primary concern for most sellers, there is more at stake than just money. Read on!
  • Escalation Clause – Savvy buyers may include an escalation clause which allows the price to inflate to a certain amount dependent on what other buyers have offered.
  • Earnest Money – Buyers include earnest money which represents the buyer’s ability to complete the transaction as outlined in the contract. In the event the buyer defaults, the seller would be able to keep this money. In our market, it is not unusual for a buyer to put up between x% and x% of the home price in earnest money.
  • Sale of Buyer’s Current Home – Do the buyers have to sell their home before buying yours? When there are other buyers and sellers in the mix and your home sale can be affected by their financial soundness and ability to close, this needs to be taken into consideration.
  • Financial Position – Sellers are picky about the price of the home and how the home is paid for. There are a number of things to consider in this category such a how much of a down payment the buyers are coming up with or if they are paying cash, what financial institution is the financing through, and what type of loan are they getting.
  • Appraisal – If the buyer is getting a loan from a bank, the bank will require an appraisal done on the property to make sure their financial interest is protected. But what happens if the appraisal comes in lower than the purchase price and the bank won’t loan the full amount expected? How submitted offers address this situation need to be evaluated.
  • Inspection and Requested Repairs – Did the buyers get a pre-inspection or do they plan on having one after the offer is accepted? What will happen if the buyer finds items that they want to negotiate to be repaired? Different buyers have different comfort levels when it comes to these issues and this is a top variable to evaluate and determine the parameters that are most advantageous for you.
  • Additional Items – Do the buyers want the chandelier in the dining room? How do you feel about that?
  • Closing Date – How does your preferred closing date concur with theirs?
  • Rent Back – If you need more time to move out after closing and get your next home transaction in order, will the buyer allow for a period of time to rent back the home for a few weeks up to a month or two?

For more information, give me a call/text at (206) 790-0081 or email me.

Market Update

April was another crazy month for the Seattle area real estate market. Inventory fell nearly 25 percent from the volume of active listings being offered a year ago. At the end of April, MLS brokers reported 10,679 homes and condos for sale across a 23-county area, which compares to the year-ago selection of 14,235 listings. The four-county Puget Sound region, which accounted for more than 77 percent of last month’s 7,276 closed sales, reported a price hike of nearly 14.7 percent, led by Snohomish County at 16.7 percent. In Snohomish County.

Homes and condos that sold last month in King County fetched a median price of $550,000, up about 15.8 percent from a year ago. For single-family homes (excluding condos) the median price was $625,000. That’s $85,000 more than the year-ago figure, and $25,050 more than the previous month. For the city of Seattle, the median sales price for single family homes was $700,000 in April.

Give me a call (206-790-0081) or email to learn more about the market.

Market Update – 1st Quarter 2017

Low inventory and higher prices continue to create a sellers’ market in Seattle and the Puget Sound region. This frenzied market is now reaching into most counties in western Washington. Buyers are encountering multiple offers in their attempts to purchase homes and condos.  All cash offers are dominating the market, and many homes are selling 20% or more above list price. For those buyers with mortgages, in this escalating market we are seeing more low appraisals, leading to buyers having to bring more cash to the table.

Some interesting highlights for the 1st Quarter of 2017.

  • ¨Days on market, the time it takes for a home to go from listing to pending, increased 17.4% (from 23 to 27 days) for single family homes (SFHs) and 4.2% for condos. This increase is likely because buyers, with little to choose from in the market, are purchasing properties that have been sitting on the market.
  • The median SFH price in Seattle is now $650,000 with an average of $730,000.
  • Although new listings are down from 1st Quarter 2016, there was a 50% increase in listings from February to March this year.

 

Market Update

Western Washington’s crazy real estate market continued during January with the number of pending sales (7,745) outgaining the number of new listings (6,507), according to new figures from Northwest Multiple Listing Service. Properties are moving through the market at an unusually fast pace.

Seattle New vs. Sold Listings, Single Family Homes

Brokers added 6,507 new listings to inventory last month (163 fewer than during the same period a year ago), while year-over-year pending sales jumped by 492 transactions for a gain of about 6.8 percent. New listing volume was the highest monthly total since October when members added 7,591 properties.

At month-end, there were 9,752 active listings in the MLS service area, which encompasses 23 counties. That total was 2,605 fewer than the year-ago volume of 12,357, a decline of 21 percent. Only three counties (Ferry, Jefferson and Kitsap) reported improvements in the number of active listings compared to the same month last year.

Measured by months of inventory, the selection is at historic lows in many counties. At month end, there was just under 1.7 months of supply system-wide, which compares to the year-ago figure of about 2.5 months of supply. Both King and Snohomish counties have less than one month of supply. The number of homes for sale remains at record lows, and the growth in pending sales tells us that sellers are still firmly in the driver’s seat.

Five years ago buyers could choose from 5,378 listings of single family homes in King County versus last month’s selection of 1,569 listings. Holding back the market – the combination of new jobs, a shortage of new homes, and a reluctance of sellers to list their home for fear of not being able to find their next one.

“List it and they will come” is the new mantra as new listings come on the market, with homes having hundreds of people through open houses and multiple offers the norm. Buyers who are properly positioned to make quick decisions, and who have the proper negotiation tactics and guidance are finding success in the market.

Not surprisingly given the imbalance in supply and demand, prices continue to rise. Last month’s median price for the 5,874 completed sales of single family homes and condominiums was $327,175, up 9 percent from the year ago figure of $300,000. There were 889 more closed sales in January than for the same month a year ago for a 17.8 percent increase.

Single family home prices (excluding condos) increased 9 percent, rising from $309,950 to $338,000. The median price for single family homes that sold in King County last month was $525,000, up more than 6.9 percent from the year-ago sales price of $490,970. Several outlying counties reported double-digit gains.

“The softening of single family home prices in King County over the last few months, combined with the relatively large price increase in Snohomish County (8.2 percent) suggests buyers are migrating north in order to find more affordable housing,” said Jacobi.

Brokers in Pierce and Kitsap counties also reported price hikes larger than King County’s. The median price of a single family home in Pierce County jumped nearly 11.6 percent from a year ago while the year-over-year price in Kitsap was up 9.4 percent.

Condo prices rose 5.5 percent in January compared to a year ago, increasing from $255,750 to $289,900. King County condo prices surged more than 9.8 percent, from $282,250 to $310,000.

 

 

Is Now the Time to Sell Your House?

Today’s real estate market offers a fabulous opportunity to successfully sell your home for top dollar.

Why do I think now could be the right time for you to sell?

The economic climate has improved. Consumer confidence is high and unemployment is low. Combined, this has impacted all parts of the economy – including housing. The demand for homes significantly outweighs the availability of homes to purchase.

Unbelievable mortgage rates. Low rates equate to the largest possible pool of qualified buyers for your home. However, interest rates are on the rise, which will decrease affordability for many buyers.

Average sales prices have increased, and average market time has decreased. With prices rising, your opportunity to get the price you want is better than it has been in past years and your timeline to receive an offer is shortened as well.

Your needs may have changed. Have you had changes in your lifestyle (retirement, a new job, marriage, divorce, children, or parents moving in with you) or your health which have changed your housing needs? If so, now may be the time to sell.

I would welcome the opportunity to talk further with you about whether now is the right time for you to sell. Just give me a call/text at 206-790-0081 or send an email to Jamie@JamieFlaxman.com to set up a time to chat!

 

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.