Tag Archives: King County

What a Cutie!

 

 

 

 

What a cutie! Adorable 2-bedroom rambler in Seattle’s Maple Leaf neighborhood is now on the market for $575,000.

My colleague Andrea Fjortoft and I invite you to join us at one of three open houses or to check out the listing online.

Imagine the possibilities here – great condo alternative or bring your contractor to discuss options for building up or remodeling. This home offers 2 large bedrooms, one with an office area and large walk-in closet, and a full bath. Large living and dining rooms and the kitchen has a breakfast bar. Tons of natural light. Terraced, fully-fenced backyard including a pear tree and room for outdoor activities. Very quiet street.  Easy access to I-5, Northgate transit center, University of Washington, Sand Point, and future Northgate and Roosevelt light rail stations.

Quick Facts:

  • 2 bedroom, 1 full bathroom
  • 1,110 sq. ft.
  • 5,413 sq. ft. lot
  • Built in 1941
  • One car attached garage
  • Forced air gas heat
  • 2018 property taxes of $4,720

Open House Schedule:

  • Wednesday, October 10, 10am-Noon (hosted by Jamie and Andrea)
  • Saturday, October 13, Noon-3:00pm (hosted by Andrea)
  • Sunday, October 14, 1:00-4:00pm (hosted by Jamie)

Check out all the photos.

Download a flyer.

Contact us for a private tour or for more information:

Jamie Flaxman, Jamie@JamieFlaxman.com, 206-790-0081

Andrea Fjortoft, Andrea@FjortoftHomes.com, 206-369-6982

 

 

 

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.

 

Monday Market Report

The media has been saying “the market is slowing down.” So have my colleagues. I even said a few weeks ago that we’re seeing a market adjustment. But this is not what I’m seeing right now.

I had 2 open houses this weekend on my new Ravenna listing and both were packed. I expect we may see multiple offers or even take an offer early.

Buyer clients of mine went to an open house yesterday in Bothell. They said it was busy. When I spoke with the broker for that listing last night, he said he had 90 people through on Saturday and around 50 on Sunday. And that’s in Bothell.

Buyers are out there for your home. There’s no need to wait until after Labor Day. Usually the last 2 weeks of August are slow in Seattle, but not this year. Maybe because of the smoke and weather change people are coming out. Maybe because interest rates dropped a tiny bit last week. I don’t know why but the market is very active right now.

I expect we’ll see an influx of listings after Labor Day. Talk to me soon if you’re interested in buying or selling a property.

2018 is NOT another 2008

People are asking if 2018 will be another 2008 for the real estate market. I emphatically answer NO! Here is why I don’t believe we’re headed for a major turn in the market.

There are many more protections for buyers/homeowners in the mortgage market. A large part of the 2008 crash was related to mortgages being given to people who could not afford those homes. The Dodd–Frank Wall Street Reform and Consumer Protection Act which was signed into law by President Obama in 2010. The Consumer Financial Protection Bureau instituted a rule that protects consumers from irresponsible mortgage lending by requiring lenders to ensure prospective buyers have the ability to repay their mortgage.

Additionally, housing starts are significantly below the need for 1.5 million units per year (top chart below). 2007 was the last year we met that goal. On the other hand, the homeownership rate is rebounding and is at its highest rate in three years (bottom chart below). These two statistics combined tell us that demand continues to outweigh supply. Our market will remain strong as long as we have the demand.

We are, however, seeing an adjustment in the market, please see last week’s post for that update.

For more information on the market or on buying or selling a home, please give me a call at 206-790-0081 or email Jamie@JamieFlaxman.com.

 

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.

King County Homeowners

If you own a property in King County, check out this website: http://localscape.property/#kingcountyassessor/.

It’s new from King County and you can find out so much information. Choose My Property, put in your address and then click on the blue button that says “View Proposed Taxes.” This will tell you how much any current tax levy on the ballot will affect you. Right now it’s showing info for August’s primary for Prop 1 – AFIS Property Tax Levy. For the several addresses I checked, the taxes will actually decrease from this one passing.

Let me know what you think of the site.

Views, Garages, and Pools

When you’re looking to buy or sell a house, there are many features of the property that can affect value. Only an appraiser can fully put a value on items such as views or garages but here are my thoughts.

For sellers, you may think that a unique feature such as a sauna or swimming pool adds value, but that’s not always the case here in the Seattle area. If your home is in California, a pool does increase value. But most people in Seattle don’t want a pool, so having a pool might actually decrease the price you get for your home. Pools significantly increase the operating cost of the home and just aren’t used that much with our climate.

Garages, on the other hand, can add a lot of value. Trying to park in many of our neighborhoods is a challenge so off-street parking is a plus, and a garage to protect your car is a major benefit. Depending on your location and property, a garage can add around $50,000 to your home’s value. However, once you go beyond the 2-car garage, the additional value goes down – not that many people want 3, 4, or even 6 car garages (I saw one of those this weekend).

How do you quantify a view? It’s hard. In a condominium building, you could compare 2 units that are exactly the same, on the same floor, that sell at the same time, with one facing the Sound and the other not having a view. Those sales prices would give you an idea of the value of a view. But it’s rare we can make that comparison and with single family homes it’s even harder. Appraisers have formulas but there isn’t really a science to the calculations. How do trees or other homes affect the view?

Special features may add value but they may also take away value such as in the case of a pool. The best way to find out what the features of your home offer is to talk with a real estate broker or a home appraiser. Give me a call at 206-790-0081 or email Jamie@JamieFlaxman.com if you’d like to talk about your home’s features.