in the news – Windermere Eastside

Empty Nesters: Remodel or Sell?

November 29, 2017

Your kids have moved out and now you’re living in a big house with way more space than you need. You have two choices – remodel your existing home or move. Here are some things to consider about each option.

Choice No. 1: Remodel your existing home to better fit your current needs.

Remodeling gives you lots of options, but some choices can reduce the value of your home. You can combine two bedrooms into a master suite or change another bedroom into a spa area. But reducing the number of bedrooms can dramatically decrease the value of your house when you go to sell, making it much less desirable to a typical buyer with a family.
The ROI on remodeling is generally poor. You should remodel because it’s something that makes your home more appealing for you, not because you want to increase the value of your home. According to a recent study, on average you’ll recoup just 64 percent of a remodeling project’s investment when you go to sell.
Remodeling is stressful. Living in a construction zone is no fun, and an extensive remodel may mean that you have to move out of your home for a while. Staying on budget is also challenging. Remodels often end up taking much more time and much more money than homeowners expect.

Choice No. 2: Sell your existing home and buy your empty nest dream home.

You can downsize to a single-level residence and upsize your lifestyle. Many people planning for their later years prefer a home that is all on one level and has less square footage. But downsizing doesn’t mean scrimping. You may be able to funnel the proceeds of the sale of your existing home into a great view or high-end amenities.
A “lock-and-leave” home offers more freedom. As your time becomes more flexible, you may want to travel more. Or maybe you’d like to spend winters in a sunnier climate. You may want to trade your existing home for the security and low maintenance of condominium living.
There has never been a better time to sell. Our area is one of the top in the country for sellers to get the greatest return on investment. Real estate is cyclical, so the current boom is bound to moderate at some point. If you’re thinking about selling, take advantage of this strong seller’s market and do it now.

Bottom Line

If your current home no longer works for you, consider looking at homes that would meet your lifestyle needs before taking on the cost and hassle of remodeling. Get in touch with a Windermere Real Estate broker to discuss the best option for you.

Windermere Hosts Chinese Real Estate Leaders During Four-City U.S. Tour

November 16, 2017

Last week Windermere hosted 16 members of the China Alliance of Real Estate Agencies (CAREA) during a daylong tour of Seattle and Bellevue, WA. CAREA is a coalition of the largest regional and national real estate companies in China, representing over 60 percent of all Chinese real estate sales. Their stop in Seattle was a part of a four-city tour that also included Chicago, New York, and Dallas. The cities were identified because of their popularity amongst Chinese investors/buyers, and the CAREA member’s desire to better understand the residential real estate markets in those areas.

The group’s interest in Seattle stems from the growing number of Chinese foreign national buyers in the area, especially in neighborhoods like West Bellevue where real estate brokers say buyers are drawn to the newer homes, top-performing schools, and proximity to high-end restaurants and shopping. This year, Seattle surpassed San Francisco as the second place in the world where Chinese millionaires want to purchase property (according to Shanghai-based Hurun Research).

Windermere took the group on a tour of three luxury homes in West Bellevue that are on the market for between $5 and $10 million. The tour started with a new construction home priced at $6.8 million in Clyde Hill, represented by Windermere broker Shawna Ader. The second stop was a more traditional home in Medina for $5.3 million, listed by Windermere broker Wendy Paisley. The last home was the show stopper, an incredible manse priced at just under $10 million on Yarrow Point, represented by Windermere broker Anna Riley.

Along for the ride were also several members of the media who were drawn to the story about Chinese interest in the Seattle-area housing market. KING 5 News, KOMO 4 News, Q13 News, and the Seattle Times all spent time touring the homes and interviewing representatives from CAREA and Windermere about the reasons why Seattle is an increasingly popular location for international buyers.

Following the luxury home tour, the Chinese guests and Windermere executives gathered for lunch and a presentation by Windermere Chief Economist, Matthew Gardner, who provided an overview of the greater Seattle area housing market and economy. The day was then capped off with a seaplane tour of Seattle by Kenmore Air. As CAREA vice president Yi Lui stated after the tour, “A float plane is the way to sell Seattle.”

This article originally appeared on the Windermere.com blog.

The Gardner Report – Second Quarter 2017

July 27, 2017

Economic Overview

The Washington State economy has been expanding at a rapid pace but we are seeing a slowdown as the state grows closer to full employment. Given the solid growth, I would expect to see income growth move markedly higher, though this has yet to materialize. I anticipate that we will see faster income growth in the second half of the year. I still believe that the state will add around 70,000 jobs in 2017.

Washington State, as well as the markets that make up Western Washington, continue to see unemployment fall. The latest state-wide report now shows a rate of 4.5%—the lowest rate since data started to be collected in 1976.

I believe that growth in the state will continue to outperform the U.S. as a whole and, with such robust expansion, I would not be surprised to see more people relocate here as they see Washington as a market that offers substantial opportunity.

Home Sales Activity

There were 23,349 home sales during the second quarter of 2017. This is an increase of 1.1% from the same period in 2016.
Clallam County maintains its position as number one for sales growth over the past 12 months. Double-digit gains in sales were seen in just three other counties, which is a sharp drop from prior reports. I attribute this to inventory constraints rather than any tangible drop in demand. The only modest decline in sales last quarter was seen in Grays Harbor County.
The number of homes for sale, unfortunately, showed no improvement, with an average of just 9,279 listings in the quarter, a decline of 20.4% from the second quarter of 2016. Pending sales rose by 3.6% relative to the same quarter a year ago.
The key takeaway from this data is that it is unlikely we will see a significant increase in the number of homes for sale for the rest of 2017.

Home Prices

Along with the expanding economy, home prices continue to rise at very robust rates. Year-over-year, average prices rose 14.9%. The region’s average sales price is now $470,187.
Price growth in Western Washington continues to impress as competition for the limited number of homes for sale remains very strong. With little easing in supply, we anticipate that prices will continue to rise at above long-term averages.
When compared to the same period a year ago, price growth was most pronounced in San Juan County where sale prices were 29.2% higher than second quarter of 2016. Eight additional counties experienced double-digit price growth.
The specter of rising interest rates failed to materialize last quarter, but this actually functioned to get more would-be buyers off the fence and into the market. This led to even more demand which translated into rising home prices.

Days on Market

The average number of days it took to sell a home in the quarter dropped by 18 days when compared to the same quarter of 2016.
King County remains the tightest market; homes, on average, sold in a remarkable 15 days. Every county in this report saw the length of time it took to sell a home drop from the same period a year ago.
Last quarter, it took an average of 48 days to sell a home. This is down from the 66 days it took in the second quarter of 2016.
Given the marked lack of inventory, I would not be surprised to see the length of time it takes to sell a home drop further before the end of the year.

Conclusions

This speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors. For the second quarter of 2017, I moved the needle a little more in favor of sellers. To define the Western Washington market as “tight” is somewhat of an understatement.

Inventory is short and buyers are plentiful.

Something must give, but unless we see builders delivering substantially more units than they have been, it will remain staunchly a sellers’ market for the balance of the year.

Furthermore, increasing mortgage rates have failed to materialize and, with employment and income growth on the rise, the regional housing market will continue to be very robust.

Matthew Gardner is the Chief Economist for Windermere Real Estate, specializing in residential market analysis, commercial/industrial market analysis, financial analysis, and land use and regional economics. He is the former Principal of Gardner Economics, and has over 25 years of professional experience both in the U.S. and U.K.

This article originally appeared on the Windermere.com blog.

Seattle Area Popular With Residents & Outsiders

May 4, 2017

It seems like a tale as old as time. Many people are wanting to move to Seattle, but no one else really wants to leave. This leads to our favorite real estate headline for the last several years: inventory is low, prices are rising.

Seattle-based Zillow recently analyzed searches on their website and compared the location of its users with the cities in which they are searching. They used this information to create a chart of the most desirable cities based on their popularity with outsiders and current residents.

Unsurprisingly, Seattle ranked high in the category “Residents Want To Stay, Outsiders Want In” with about 70 percent of current residents continuing to search here.

What does this mean for the Eastside?

It isn’t just our breathtaking scenery and active lifestyles making the Seattle area’s population grow by nearly 1,000 residents per week over the last several years. Our strong economy and plentiful technology jobs are enticing newcomers. Some areas on the Eastside even have higher home prices and carry some pretty stiff competition.

If you are ready to buy or sell your home, make sure you get in touch with a Windermere Real Estate broker on the Eastside. Our expertise can help you purchase your dream home, or sell your current home at top dollar.

View the full study from Zillow or read the report from the Puget Sound Business Journal.

You’re Invited to the Windermere Cut Party!

April 27, 2017

Come join us at the Windermere Cut Party on Friday, May 5 as we kick off Windermere Cup weekend!

On Friday night, we’re holding a Cinco de Mayo party to celebrate another year of the annual Windermere Cup. We’ll be on the Montlake Cut with taco trucks including El Camion, Taqueria Tonita, and Tacos La Flaca.

Keeping you entertained all night will be live music from Brian DiJulio and the Lovejacks and Spike & the Impalers.

Mark your calendars and purchase your tickets! We’ll see you on the cut with tasty tacos, live music, lawn games, and a fantastic beer and margarita garden from 6-10pm next Friday, May 5th.

Don’t forget! You can come back down to the Montlake Cut the next day on May 6 for Seattle’s biggest free sporting event – The Windermere Cup. More info on WindermereCup.com.