Tag Archives: low inventory

What’s Going on With the Market

The greater Seattle real estate market continues to show signs of a healthier, balanced market. While prices were down in January, we began to see the return of multiple offer situations. A lot of homes that were sitting on the market for a long period of time (60+ days) went pending, which is a good sign, but also shows why our Days on Market increased significantly in January. For example, in Seattle 364 single family homes sold in January for an average of 53 days on market. Of those 364, 110 sold in 0-14 days, 44 15-29 days, 66 in 30-59 days, and 144 in 60+ days. 

What this is telling us is that homes that have been priced properly are still selling quickly and that homes that have been sitting on the market have either had price reductions or sellers have accepted lower offers in order to get their homes sold. We see this when we look at sales to list price ratio, which at 98.1% for Seattle in January, means that sellers are taking lower offers. Additionally, with so much of the older inventory selling, we are seeing less homes available on the market, and with inventory low, the market still favors the seller.

Pricing properly is the key to getting your hold sold quickly and when you work with me, I will be analyzing the market daily to determine the best price at which to list your property.

For buyers, interest rates seem to have settled down, and even gone down a little. The Fed has said they don’t plan on raising interest rates again for awhile. This, coupled with lower sales prices, means it’s a great time for you to get in the market. 

For additional information or for a complimentary market analysis of your home, please call or text: (206) 790-0081 or send an email to Jamie@JamieFlaxman.com

Tri-County Market Report

March statistics from the Northwest Multiple Listing Service were released last week and showed that we are continuing to see substantial price increases.

Prices overall are up about 13.2 percent from a year ago, and even more so in the four-county Puget Sound region. Among these four counties, Kitsap had the largest year-over-year increase at 19 percent, but King County homes are still the priciest. The median price for last month’s sales of single family homes and condos combined in King County is $625,000, up 17.9 percent from a year ago. For single family homes, excluding condos, the median price for last month’s sales was $689,950. Year-over-year prices are up more than 18 percent in Pierce County and about 14.3 percent in Snohomish County.

We have returned to an extremely intense market for each new listing due to extremely strong job growth and eager buyers who want to purchase before interest rates go higher. We are witnessing high levels of sales activity intensity for each new listing coming on the market.

Until we see more inventory on the market, expect home prices to continue to increase. For more information on the market, contact me at 206-790-0081 or Jamie@JamieFlaxman.com.

How Do I Compete in this Crazy Real Estate Market

If you’re a buyer in our crazy, hot market, you may be wondering, how do I compete? While most properties are receiving multiple offers and bidding wars, it is very possible to be successful in our market.

I have an 8-step process for helping my buyers be successful. These steps begin with being pre-approved for a mortgage and knowing the maximum amount you can afford. I have a list of wonderful lenders who can help you with your pre-approval.

My 8-steps include recommendations on pricing and how to make your offer stronger. If you’d like to learn more about the 8-steps, please contact me.

Another option in our market is to look for homes that have been on the market for more than 2 weeks. It’s very possible these homes have been overpriced, so even if the list price is higher than your max budget, you may be able to negotiate to a price in your range.

Let’s talk about your home buying needs. Phone/text 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.

 

Market Update

November and early December market activity is not showing as much slowdown as usually seen this time of year. Open houses over the past couple weekends have had lines to get in, with some receiving more than 100 visitors on a weekend day. With our low inventory and pent up buyer demand, we don’t expect to see as much a slow down this winter. Additionally, with some proposed changes to the tax code affecting home ownership, some buyers are jumping into the market, hoping to buy before tax reform is passed and implemented. There are also signs that the interest rate may increase slightly.

Let’s talk about the market, give me a call/text at (206) 790-0081 or email me.

 

What’s Going On With the Market

I was in Iceland for 2 weeks and while I was gone, a slight shift occurred in the market. Inventory increased – in the city of Seattle the number of new listings of single family homes in May increased nearly 30% over April 2017 and nearly 6% over May 2016. This is great news for buyers who have become very frustrated with the lack of available homes for purchase.

Sellers, it’s not time to worry. There’s still a significant shortage of inventory compared to the demand.

Please let me know if there’s anything I can do to help with your real estate needs.

Market Update

The only word I can use to describe this market is FRENZY! Buyers are out in droves, looking to find their dream home. With interest rates expected to raise over 2017, buyers want to get into a home now while they can still afford to purchase. At the same time, sellers are hesitant to sell because they’re concerned about not being able to find a home to purchase. It’s really a Catch 22 out there.

Figures from the Northwest Multiple Listing Service (NWMLS) for February and personal experience indicate record-low inventory is spurring multiple offers, rising prices, fewer sales, and frustrated house-hunters. I held an open house in February for a North Seattle home that I estimate had approximately 140 people through in the three hours I was there. That home received 25 hours and sold more than 20% over list price.I recently heard of a home on the eastside that had 55 offers.

A check of Northwest MLS records dating to 2004 shows no other month when the number of active listings dipped below the 10,000 mark – until last month. At the end of February, there were 9,091 active listings in the Northwest MLS system, which encompasses 23 counties. That represents a drop of nearly 25 percent from the year-ago total of 12,107.

This chart shows you the number of signle family homes for sale, in contract (pended), and sold for the city of Seattle. Homes for sale in February 2017 are down 7.7% compared to the last month and down 20.9% compared to 12 months ago. Home sales closed in February 2017 is down 14.1% compared to January and are down 2.1% compared to last year. Home in contract in February 2017 is up 18.4% compared to last month and up 3.6% compared to last year. This shows us that the demand is out there.

Home prices in Seattle are up as well. The median sold price is up 8.5% compared to January and up 6.7% compared to February last year. Average sales prices are up as well, 11.3% compared to January and up 12.8% compared February last year.

For more information on the market or your specific home or neighborhood, give me a call/text at (206) 790-0081 or email Jamie@JamieFlaxman.com.

Wow, What a Crazy Market We’re In!

When will it stop? Not until there’s a lot more inventory. With such a significant shortage of available homes, sellers rule the market, and homes are selling at incredible speeds for record prices. And this isn’t just for Seattle and King County, it’s happening in Snohomish, Pierce, and Kitsap Counties too. King County buyers, unable to buy because of low demand and higher prices, are moving to the outlaying counties.

The median price of single-family homes sold in King County hit $480,000 in April, just $1,000 shy of the peak set in July 2007 before the housing bubble burst. April’s median price was 9 percent higher than in March and 11.5 percent higher than a year ago, according to data from the Northwest Multiple Listing Service.

But don’t worry, this isn’t another bubble waiting to burst. While, the annual price gains and bidding wars may echo the bubble years, there’s a crucial difference, according to the experts. The run-up in prices this time is fueled by job growth, new demand from foreign buyers and millennials, low interest rates, and a severe housing shortage.

Just check out the numbers for Seattle. In April, there were 630 homes on the market, 745 homes sold, and 949 homes went pending (into contract).

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And the median price in Seattle for sold homes hit $540,000, up 5.9% from March and 18.4% from April of last year. As an example of the current frenzy, in April a home in Wallingford was listed for $725,000, received 25 offers, and closed at $913,000 (125% of list price).

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For more information on the market or to discuss listing your home, please call me at 206-790-0081 or email at Jamie@JamieFlaxman.com.

Why Homeowners Aren’t Selling

The market is sizzling out there. I heard that one Seattle home had 28 offers this week, another 11 offers. It’s insane out there. If you’re a seller, that’s great, you’re likely getting offers significantly above list price. If you’re a buyer, you’re probably seriously frustrated.

Our lack of inventory is what’s driving the market. We know there are people who want to sell their homes, but are not doing so. The experts don’t have good explanations for why they’re not. Some are saying home purchases are down because the millennials have student loan debt or don’t have down payments. While that may be the case for some, lack of buyers isn’t the problem.

Here’s my theory as to why people aren’t selling their homes. There’s no place to move. The lack of inventory affects those who want to sell as they’re afraid if they do sell, they won’t be able to find a home to purchase (or even to rent). Many prospective sellers believe that for financial reasons, they have to sell before they buy – there are some options out there for you, so this should not hold you back.

Additionally, many sellers don’t understand the current value of their home. Most homeowners have enough equity in their homes to sell and without having to bring any money to the table. And most will also see a nice profit. The median sales price for a single family home in the city of Seattle has appreciated 66% in the past 12 years (Jan. 2003-Jan. 2015), from $293,000 to $487,000.

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My job as your Realtor is to help you understand your options. If you’d like to sell but have been hesitant, or are even considering selling, give me a call at 206-790-0081 or email at Jamie@JamieFlaxman.com and let’s talk.

National Real Estate Update

We’re more than halfway through 2014 and nationally we have seen a “mixed bag” when it comes to the housing market. Although the market overall is strong, the first quarter did not perform as well as hoped, due in part to a challenging weather patterns and demand outweighing supply in many areas.

Since the number of homes available for sale (also known as ‘inventory’) has been low, buyers in some areas are competing via multiple offers for properties.  According to the National Association of REALTORS®, national inventory improved somewhat in the spring, causing sales to surge in May. In fact, the 4.9% increase in sold properties in May was the strongest month-over-month increase since August of 2011. However, this is still 5% lower than May of 2013. And in June, after three consecutive months of solid gains, pending home sales slowed modestly.

While looking at data provides a look at overall market health, I know what is most important to you is what this means for your property value! I would be happy to go over how your neighborhood is faring and what I expect in the coming months. Currently I am booking mid-year property reviews and I would like to book yours! Please give me a call at 206-790-0081 or send me an email.

SOURCE: http://www.realtor.org/news-releases/2014/06/existing-home-sales-heat-up-in-may-inventory-levels-continue-to-improve