Local Market Update – February 2018

With competition for homes growing and inventory shrinking, the real estate market in January was as hot as ever.  Home prices were up by double digits as buyers chased severely limited inventory. The number of homes for sale hit a record low for the month of January, which should strongly favor sellers as we move into the prime spring selling season.  The average home seller in our area now makes a 64 percent profit, the fourth-highest rate of any region in the country, according to ATTOM Data Solutions.

Eastside

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Home prices on the Eastside continue to climb. The median price of a single-family home was up 18 percent over last January to $938,000 —­ virtually unchanged from the record high set a month ago. West Bellevue, King County’s most expensive area,  saw the median home price surge to a record high of $2.72 million. With less than a month of available inventory, prices aren’t expected to cool any time soon.

King County

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Single-family home prices in King County soared 20 percent over a year ago to $628,388, with double-digit increases recorded in every area of the county.  Lack of inventory continues to fuel the market.  There were 21 percent fewer homes for sale here as compared to a year ago, with inventory hitting a record low for the month of January. The region has now been the hottest housing market in the country for 15 months in a row.

Seattle

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An ongoing shortage of inventory combined with an economy that continues to add jobs has kept the Seattle housing market very competitive and increasingly expensive. Seattle’s median price hit a new record in January jumping 19 percent to $757,000.  Despite the increase in prices, brokers are reporting open house traffic that can number in the hundreds of interested buyers.

Snohomish County

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Home price increases in Snohomish County were more moderate than those in King County. The median price of a single-family home grew 10 percent over a year ago to $450,000. That number is down from the high of last year, and reflects a more common seasonal slowdown.

 

2018 Windermere Eastside Kick-off

Every year over 500 brokers from Windermere offices across the Eastside gather to prepare for the new year at the annual Windermere Eastside Kick-Off Event at the Hyatt Regency Bellevue. Last week, several speakers shared their insights and advice to prepare our agents to better serve their clients for the 2018 housing market.

Looking Ahead: What to Expect From the 2018 Housing Market

Matthew Gardner, Windermere Real Estate’s Chief Economist, shared his forecast for the 2018 housing market. Low inventory seems to be a problem stretching all the way to Ohio with many people living in their homes twice as long as past generations. Lack of skilled labor, available land and high material costs continue to make new construction an expensive option. Read more about his forecast.

“There are no secrets to success. It is the result of preparation, hard work, and learning from failure.” – Colin Powell

Breaking Through The Noise

Micheal Fanning Kick Off 2018Senior Vice President Windermere Services and Ninja Instructor, Michael Fanning, brought his insights on breaking thought the mediocrity of the market place. Finding ways to bring those extra touches and using technology to your advantage can set you apart in a sea of daily distraction. Employing techniques from the Ninja Installation Train Program, Michael reminds agents that the hard things never get easier, you just get better and an average mindset will always result in a missed opportunity.

“Be somebody who makes everybody feel like somebody.” – Robby Novak

Understanding Your Client’s Story

Tori Dabasinskas Eastside Kick Off

Licensed marriage and family therapist, Tori Dabasinskas, shared her communication strategies to help our agents better connect with their clients. Addressing techniques for authentic listening, creating more meaningful connections and responding with emotion as well as logic, Tori emphasized taking time to truly understand the “story” of each individual client. With personal empathy and active appreciation, our agents can better anticipate the needs of their clients and what can be done to better serve them.

“The truth is, rarely can a response make something better — what makes something better is connection.” – Dr. Brené Brown

Law Of Attraction

Richard Bennion Kick OFF 2018

Executive Vice President of HomeStreet Bank, Richard Bennion, reminded our agents that every client has a story. Their hopes, dreams and challenges are opportunities to listen, be attentive and show those clients their importance. Becoming an expert who is professional, authentic, self-aware and highly competent will attract people and help build your business’ sphere of influence. Taking a long-term approach in building client relationships will result in a strong business over time.

“Always take your job seriously, never yourself.” ― David Brooks

Growth, Support and The Power of Windermere

Brooks Burton Kick Off 2018

Brooks Burton, Chief Operating Officer for Windermere Services Company, opened the Kick-Off by sharing some exciting changes agents can look forward to in 2018. They included refreshed branding, offering more social media resources, improving technology and more resources based on agent feedback. Brooks also touched on the success of the Windermere Foundation which has raised over $35 million for local organizations since its inception in 1989 as well as how funds are allocated among those organizations.

“Without continual growth and progress, such words as improvement, achievement, and success have no meaning.” – Benjamin Franklin

Strategy and Determination

David Wasielewski Kick Off 2018

David Wasielewski, the Managing Partner of Northwest Din Tai Fung Partners, spoke about bringing the popular Chinese restaurant brand to the Seattle area. David shared that as a previous marketing veteran at Intel Corporation he had no restaurant experience prior to starting his own business. David’s approach to success? Strategy, action, and pacing himself.  He flew to California for many weekends to work at another Chinese restaurant owned by Din Tai Fung’s owners without pay to prove his interest and dedication to his mission. Fast forward to today and he owns four restaurants in the Seattle region and his first Bellevue Square location has won the highest gross sales award from Kemper Development Company in each of the five years he has operated.

“Strategy is pattern is a stream of decisions” – Henry Mintzberg

Getting in the Right Mindset: Pursuing Excellence

Tracie Ruiz Conforto Kick OFF

Tracie Ruiz Conforto, Olympic Medalist and Synchronized Swimmer of the Century, inspired us to find and pursue our passions, just as she did with swimming at the age of nine. She advised agents on three ways to achieve excellence – find your passion, use your competition to improve your skills, and surround yourself with a team who will support you. Tracie showed us that anything is possible when you combine passion, discipline, competition, and teamwork.

“Pursuing excellence means investing more than others think is practical and expecting more than others think is possible.” – Winston Churchill

The Windermere Eastside Kick-off was an inspiring and motivational event. Our brokers are more prepared than ever to provide valuable service for their clients and face the year ahead. We are excited to put this knowledge to good use as we help you navigate your real estate journey in 2018!

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Local Market Update – January 2018

2017 closed out the year with historically low inventory and record-breaking price gains. A strong local economy and brisk population growth has helped fuel a steep discrepancy between supply and demand. As long as this imbalance remains, 2018 is on track to remain a very strong seller’s market.

Eastside

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Defying the usual winter slow-down in home prices, December broke new records on the Eastside. The median price of a single-family home soared 17 percent over a year ago to $938,240 – an all-time high for the region. Appreciation in higher-end areas, like West Bellevue and Mercer Island, topped 20 percent. Homeowners, especially those considering downsizing, may want to take advantage of the sharp increase in equity.

King County

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King County recorded the lowest inventory since records began in 2000, and demand just keeps rising. As a result, the price of a single-family home jumped 15.5 percent over the same time last year to $635,000. Those looking buy a condo as a more affordable option were out of luck. The median price tag of $402,000 is a relative bargain when compared to a single-family home, but there are only about 200 condos on the market, another record low.

Seattle

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While below the high point last summer, the median price of a home in Seattle jumped 14 percent year over year to $725,000. Supply and demand is again the culprit. There are just two weeks of available inventory on the market. Not only are homes here selling quickly, but fewer people are putting their homes up for sale. Most economists are predicting a moderate slowdown in cost increases here in 2018, with prices still rising but not as sharply as they did in 2017.

Snohomish County

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Prices in Snohomish County continue to rise at a rapid pace. The median price of a single-family home here grew 12.5 percent from a year ago to $449,950. With less than a month of available inventory, prices are projected to remain high.

 

2018 Housing Forecast: Where are we headed?

2018 Housing Forecast
What lies ahead for the local housing market in 2018? We sat down with Windermere Chief Economist Matthew Gardner to get his thoughts. Here are some highlights:

Home prices will continue to increase, but at a slower pace

The strong local economy, high demand and very low inventory will continue to boost home values in 2018, according to Gardner. However, he believes that the double-digit growth of 2017 will moderate, and predicts home prices in King County will rise by 8.5% in the new year.

Mortgage interest rates will rise slightly.

Gardner admits that interest rates continue to baffle forecasters. The rise that many economists have predicted the past few years has yet to materialize. His forecast for 2018 sees interest rates increasing modestly to an average of 4.4% for a conventional 30-year fixed-rate mortgage.

More Millennials will enter the housing market.

Despite the relatively high cost of homes in our region, Gardner expects more Millennials to buy homes in 2018. They are getting older and more established in their careers, enabling them to save more money for a down payment. Many are also having children and are looking for a place to raise their family.

The tax reform bill will have a limited effect on our housing market.

The recent changes to the income tax structure will have an impact on homeowners, but Gardner does not believe that impact will be significant here.

    • The mortgage interest rate deduction will be capped at $750,000 – down from $1,000,000. But according to Gardner, just 4% of the mortgages in King County exceeded $750,000 in 2017. Most buyers of more expensive homes have been making larger down payments, or buying homes for cash.
    • Since the $1,000,000 mortgage deduction cap is grandfathered in for those who have already purchased a home, some homeowners may opt to stay put rather than move. That could result in fewer homes being placed on the market.
    • The tax bill eliminates the deduction for interest on home equity loans. This is bound to slow down the trend of homeowners choosing to remodel their home rather than trying to find a new home our inventory-deprived market.

Bottom Line

The increase in home prices may moderate, but inventory will still be very tight. 2018 is on track to be a strong seller’s market.

Local Market Update – December 2017

It looks like we’re skipping the normal holiday slowdown this season with brokers reporting crowded open houses and competitive bidding in many areas. However, since sellers who list their homes at this time of the year are usually motivated to move soon, the holidays are still a good time to buy. Some of the best pricing is historically found between December and February.

Eastside

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The rate of appreciation for homes on the Eastside continues to be as robust – or more so – as in Seattle. Both local and international buyers attribute the appeal of the area to larger lot sizes, newer construction, and highly-rated school districts. Inventory here is extremely low, and homes are selling quickly. The median price for a single-family home on the Eastside reached $851,000 in November, a 12 percent increase over the same time last year.

King County

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The number of new listings in King County is down 19 percent as compared to a year ago. With demand still strong, the median home price in King County rose 15 percent over last year to $630,750. Condo inventory, long an option for more affordable housing, is at a record low as developers opt for building apartments to avoid the legal and financial risks that come with building condos.

Seattle

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Seattle is one of the fastest growing American cities, and demand doesn’t look to be slowing any time soon. Combine that with a very limited supply and it’s no surprise that for over a year home prices here have been rising faster than anywhere in the country. Last month, the median price for a single-family home in Seattle was $741,000, soaring 21 percent from the previous year.

Snohomish County

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Buyers priced out of the King County market are taking this advice: drive until you qualify. Many are ending up buying in Snohomish County. The number of homes for sale was down more than 24 percent here in November and there is currently less than one month of inventory available. The median price of a single-family home was $445,000, up 11 percent year-over-year.