Debra Sinick » Bellevue Real Estate

2011 Ends With The Fewest Homes for Sale in 4 Years on Seattle’s Eastside

debrasinick — Thu, 19 Jan 2012 19:52:12 +0000

: How Many Homes Sold on Seattle’s Eastside in December, 2011?

We have to go back before the bubble burst to February 2007 to find so few homes for sale on Seattle’s eastside! There’s a healthy number of homes for sale on the eastside, 1897 at the close of December, so there are good choices for buyers. With fewer homes on the market, it spurs the competition among buyers for the best homes and should help stabilize prices. In some neighborhoods, there aren’t any homes for sale right now.

Pricing is becoming more affordable for a new set of buyers who are coming to the market for the first time. A mortgage payment that would have bought a home for $500,000 in 2008, would now cover the purchase of a home in the mid-$600,000s!

Here’s a snapshot of Seattle-Eastside real estate in December, 2011 compared to 2010:

24% fewer homes were on the market.
The time it took to sell a home went from 129 days to 111 days this past December.
Sales prices were 8% below the seller’s original asking price, while in 2010 they averaged 10% below the asking price.
Eighteen percent of the homes for sale this December received offers and sold, while only 14% received offers in 2010.
338 homes sold in 2011, while in December 2010, 351 homes received offers.

The actual number of homes sold did not change much, which, surprisingly, is almost always the case. The difference was not in the number of sales, but in the number of homes for sale. There were 597 fewer homes for sale at the end of 2011 than 2010. When there are fewer homes for sale, there are fewer “for sale” signs out in neighborhoods. The “sold” signs also pop up a lot faster.

When the supply increases, there’s increased competition and homes take longer to sell. Most people think homes are not selling because there are more real estate signs and they stay posted in yards for a longer time. This is not the case. Homes are selling, but there’s just more competition which makes it feel as if the market is slower.

The real difference then is the supply, the number of homes for sale. If there’s a smaller supply the market will seem faster because these homes will sell faster. If there is a larger supply, there is more competition and the market will seem slower because it takes longer to sell a home. In both markets, though, the number of homes that sell does not vary all that much. It is the Supply that varies and changes what we think is happening in the real estate market. The above chart confirms this as you can see the supply changes far more dramatically than the number of sales, which are shown at the bottom of each month.

In my next piece, I’ll talk about how Seattle-eastside real estate should play out for the coming year. Have a great 2012 and hope you are able to make it through this week’s snow.

Since real estate is neighborhood specific, if you’d like more information about your home, contact us, we’re here to help.

*The numbers are a result of the real estate sales activity that happened that particular month only. In order to see a trend, it is important to look at a number of months together. One month is only indicative of that particular month’s sales.

Sellers in the Seattle Area and On the Eastside Start Your Engines!

debrasinick — Thu, 05 Jan 2012 20:23:02 +0000

At the start of 2012, there are less than 8000 homes for sale in King County! Compare this number to the start of the last three years:

2011: 10,008 homes for sale
2010: 9726 homes for sale
2009: 11,363 homes for sale

The old law of supply and demand is at work here and is starting to favor sellers more than it has for years. There’s a 3.6 months supply of homes for sale in King County. This means there’s a balanced market between buyers and sellers with the market tipping towards the sellers. (Less than 3 months of inventory indicates a sellers market.)

On Seattle’s Eastside, the market is looking really strong, particularly around the Microsoft area of East Bellevue and Redmond. The number of homes for sale has dropped dramatically.

What should buyers and sellers expect in the first quarter of 2012 on Seattle’s eastside?

Fabulous interest rates.

A more positive real estate market.

The market will continue to be affected by short sales and foreclosures.

Home prices are not up nor will they go up. There is no indication on the immediate horizon that indicates anything about price increases. On the flip side, the lack of supply of homes for sale helps to stabilize the market and prices. Fewer homes means more competition, which helps pricing.

The real estate market will vary neighborhood by neighborhood. One size does not fit all.

Location matters. Homes close to economic centers that offer a good commute, good schools, and good amenities will be more in demand.

Condition matters. Homes should go on the market in the best possible condition to command the best price.

Some home sales will be good deals depending on the available competition, the condition of the home, and the seller’s motivation.

Some homes will sell for full price, in a matter of days, and with multiple offers This, too, will depend on the same factors mentioned in my previous statement.

It is important to know your area. Buyers and sellers should both be aware of the competition, pricing, and condition of nearby homes to determine the value of a specific home.

Homes need to be priced right or they will not sell. I heard a seller say the other day, “I’m not going to give away the farm.” If you, as a home seller, have far more money into your home than it’s worth and you have no interest or are financially unable to price your home to meet the market, then this is not be the time to sell your home.

Gee, it sounds like a normal real estate market to me! What do you see happening in your market place?

August Condo Sales on Seattle’s Eastside Blew Past Last Year’s Sales

debrasinick — Tue, 13 Sep 2011 14:07:44 +0000

Seattle-eastside condo sales

The number of condos to receive offers on Seattle’s eastside skyrocketed by 62% over last August. This good news was coupled with 31% fewer condos on the market. In August, there were 1032 condos for sale. Two hundred thirteen received offers and sold, representing an absorption rate of 21%.

Even though the odds of selling a condo are far stronger now, there were a number of the sales that didn’t stay together. Last month I reported 250 condo sales in July. Now it looks like only 224 of these sales actually “stuck.”Twenty-six sales or 11% failed to close.

Sales fail for many reasons. A condo may not pass inspection or an appraisal. The buyer may not get financing or the condo complex itself may not fit financing guidelines. This could be because there could be too many renters occupying units or there could be a pending lawsuit against the association. Situations such as this could affect the buyer’s ability to obtain a loan, even if the buyer is well qualified to buy. When obtaining financing for a condo, the condo and the association must also “qualify” in order for the loan to be approved.

Fortunately, the stock market volatility of last month did not slow the condo market down on the eastside. How did it affect your area?

Real Estate Sales on Seattle’s Eastside Are The Best in Years!

debrasinick — Mon, 12 Sep 2011 23:29:15 +0000

Seattle-eastside real estate sales through August, 2011

The Seattle-eastside real estate market is only getting better and better! August home sales beat July and were way ahead of last August. This August was one of the best real estate markets in years!

Real estate sales were hopping. Thirty-three percent more homes received accepted offers this August than August of 2010. Almost 20% fewer homes were on the market, so less supply + more demand equaled more sales. In August, 22% of the homes for sale on Seattle’s eastside got offers. This means out of the 2811 homes for sale, 609 homes sold. On average, most homes sold within 85 days.

In King County, the number of homes for sale dropped below 10,000 for the first time since last May. Here on the eastside, we’re also seeing the lowest number of homes for sale. More than likely, the peak number of homes for sale was 2879 back in June.

Last month I questioned whether the surge in real estate sales would continue because of the volatility in the stock market. With August sales numbers, we’re seeing the most robust market we’ve seen in a long time. The stock market didn’t put a damper on eastside home sales.

Was your market affected by the stock market “roller coaster?”

How Many Homes Sold in Your Seattle-Eastside Neighborhood in July, 2011?

debrasinick — Tue, 16 Aug 2011 23:06:59 +0000

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How many homes sold in June, 2011 in your neighborhood?

It’s uncanny to see how similar July real estate sales on Seattle’s eastside were to June’s sales results. On most of the eastside, the numbers varied only slightly from June. Twenty-three percent of the homes for sale on the eastside sold, with the Redmond and Bellevue area around Microsoft leading the way with 38% of the homes selling. In the majority of eastside neighborhoods, the chance of selling a home ranged between 20-23%.

The odds of selling a home in each area is a result of the number of homes for sale divided by the actual number of home sales, so if 10 out of 100 homes sold, the odds of selling would be 10/100 or 10%)

The plateau: Sammamish, Issaquah, North Bend, and Fall City

The odds of selling a home were 20%.

Median sales price dropped: $539,950 to $519,000.

There were 771 homes for sale.

A total of 165 homes sold.

Redmond/East Bellevue

The odds of selling a home were 38%.

Median sales price increased from $422,475 to $429,950.

189 homes were for sale

A total of 85 homes sold.

South Bellevue/Issaquah

The odds of selling a home were 24%.

Median price decreased from $599,475 to $578,500.

380 homes were for sale.

A total of 110 homes sold.

Woodinville/Bothell/Kenmore/Duvall/North Kirkland

The odds of selling a home were 23%.

Median price was down from $499,950 to $369,475.

598 homes were for sale.

A total of 158 homes sold.

Kirkland

The odds of selling a home was 23%.

Median price decreased from $549,900 to $541,500.

288 homes were for sale.

A total of 76 homes sold.

West Bellevue

The odds of selling a home were 20%.

Median pricing decreased from $1,299,000 to $1,074,475.

175 homes were for sale.

A total of 42 homes sold.

Redmond/Education Hill/ Carnation

The odds of selling a home were 20%

Median pricing increased from $548,000 to $549,000.

337 homes were for sale.

A total of 75 homes sold.

If you’d like more specific information about your neighborhood or home, feel free to contact me.

July, 2011 Seattle-Eastside Condo Sales-The Best for the Year?

debrasinick — Mon, 15 Aug 2011 12:54:12 +0000

Seattle Eastside condo sales through July, 2011

July, 2011 condo sales hit the highest number of sales in more than a year. There were 1063 condos for sale on the eastside, 76 less than June, and 250 of them received offers. Twenty-three percent of the condos for sale had accepted offers, great odds when compared to the odds of selling just a year ago. As you can see, there are so many less condos for sale now, almost 1/3 less, and more are selling this year than last.

Although, the odds of selling a condo are far stronger than the last few years, there are a number of the sales that didn’t come together. I had reported 223 sales in June and looking at the chart now, I see there were only 195 condo sales. This means 28 sales or 13% failed last month.

Sales fail for many reasons. A condo may not pass inspection or an appraisal. The buyer may not get financing or the condo complex itself may not fit financing guidelines. There could be too high a proportion of renters as compared to home owners or there could be a pending lawsuit, both could affect the ability to obtain a loan on a condo in a particular complex.

August began with the economy and the volatile stock market hanging over our heads. It’s too soon to see how this will affect our real estate market. How are condo sales going in your area?

Real Estate Sales Continued to be Strong on Seattle's Eastside in July, 2011

debrasinick — Fri, 12 Aug 2011 16:46:46 +0000

Seattle Eastside Real Estate Sales Through July, 2011

The chart above speaks for itself. July real estate sales were going strong on Seattle’s eastside. More homes sold in July than in any month since May, 2010.

Will this surge in real estate sales continue? Since the news regarding the stock market from last week, it remains to be seen if August will hold up to the sales growth we’ve seen since December of last year.

The number of properties for sale in King County still remains low compared to the last few summers when King County had over 14,000 properties for sale. As of August 8th, there were 11,091 properties for sale in King County. Here on the eastside, there were 2863 available properties. If you compare the number of homes for sale on the Eastside this July to last July, there were 17% less homes and condos on the market this year.

In July there were 2863 homes for sale and 646 of these homes received offers and sold. The absorption rate, the number of homes that sold during a month compared to the number for sale, was 22%.

But what’s also important to note is 12% of the sales from June failed. I had reported 661 sales in June, but this month I see only 587 of them stayed together.

The bottom line is more homes are selling than previously, but it’s also hard to keep the sales together. Failed sales can be the result of poor inspections, trouble with the buyer’s financing, an appraisal that does not agree with the sales price or a buyer getting cold feet and backing out.

How is the real estate market doing in your area? Do you see similar trends?

How Many Real Estate Sales Were in Your Seattle-Eastside Neighborhood in June, 2011?

debrasinick — Tue, 19 Jul 2011 18:18:48 +0000

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How many homes sold in June, 2011 in your neighborhood?

June continued to be a strong month for real estate sales on Seattle’ eastside. In fact, June may have been the strongest month for real estate sales on Seattle’s eastside in four years. The Puget Sound Business Journal stated more homes sold this month than in recent months. Every area did far better than previous months and previous years. The Redmond and Bellevue area around Microsoft led the pack with almost 40% of the homes selling. Almost every other area had a minimum of 20% of the homes selling. More homes are selling than we’ve seen in years, but there are still a lot of homes that are languishing on the market. Know your competition, so your home will land in the 20%+ homes that are selling.

A past client of mine is moving back to the eastside after about 5 years. He was really surprised to hear that the homes near Microsoft are actually more affordable than those in South Bellevue. The Bellevue Schools are getting a lot of press because several of the high schools are landing on top 100 lists of the top high schools. But in reality, parts of Bellevue have been more expensive for years because of the easy I-90 access to Seattle. This may explain why the area around Microsoft is usually the hottest real estate market. It’s a great location, close to jobs, has good schools, and slightly more affordable housing prices.

The plateau: Sammamish, Issaquah, North Bend, and Fall City

The odds of selling a home were 23%.

Median sales price dropped: $525,000 to $494,950.

There were 765 homes for sale.

A total of 190 homes sold.

Redmond/East Bellevue

The odds of selling a home were 38%.

Median sales price decreased to $449,900 from $482,500.

193 homes were for sale

A total of 79 homes sold.

South Bellevue/Issaquah

The odds of selling a home were 21%.

Median price decreased from $599,994 to $519,000

364 homes were for sale.

A total of 91 homes sold.

Woodinville/Bothell/Kenmore/Duvall/North Kirkland

The odds of selling a home were 23%.

Median price was down from $419,973 to $369,950.

572 homes were for sale.

A total of 147 homes sold.

Kirkland

The odds of selling a home was 19.5%.

Median price decreased from $624,950 to $535,000.

286 homes were for sale.

A total of 71 homes sold.

West Bellevue

The odds of selling a home were 20%.

Median pricing decreased from $890,000 to $719,950.

181 homes were for sale.

A total of 43 homes sold.

Redmond/Education Hill/ Carnation

The odds of selling a home were 20.5%

Median pricing increased from $474,950 to $549,900.

331 homes were for sale.

A total of 77 homes sold.

If you’d like more specific information about your neighborhood or home, feel free to contact me.

June was a Great Month for Seattle Eastside Condo Sales

debrasinick — Fri, 15 Jul 2011 19:17:24 +0000

June was a great month for Seattle eastside condos sales. There were 223 condo sales, the most in any month for this year. April of 2010 was a stronger month for sales, but the numbers were inflated by the end of the 2010 tax credit. Buyers were scrambling to buy a condo before April, 30th, 2010.

The number of sales this year show a more realistic picture of buyers wanting to get out there and buy without feeling any pressure because of a tax credit.

: Seattle-Eastside Condo Sales Through June, 2011

There were 1140 condos for sale on the eastside and 233 of them received offers. This means that 20% of the condos for sale had accepted offers, pretty good odds, considering the odds over the last few years have been more like 10-14%. But that also means that 80% of the condos did not sell, so price and condition are still extremely important to getting a condo sold.

Know the competition when putting a condo up for sale. Make sure the market is monitored on a weekly basis to keep up with the changes in the competition. It’s important to remain competitive the whole time the property is on the market and the market can change quickly.

If you plan to sell your condo in the near future, feel free to contact me if you have questions about what you need to do to get ready to sell. Every seller has to do a few things before putting a home on the market. If your home is positioned properly, it can be one of the lucky ones to get an offer.

How Strong Were June, 2011 Real Estate Sales on Seattle's Eastside?

debrasinick — Wed, 13 Jul 2011 23:34:31 +0000

Seattle-Eastside Real Estate Sales Through June, 2011

How strong were June, 2011 real estate sales on Seattle’s Eastside? This summer’s real estate market is going to stay stronger than what we usually see during a Seattle summer. Traditionally, the highest number of homes for sale during a year comes near the end of July. With this increased competition, it can make it more challenging to sell your home. Although the number of eastside homes for sale has increased each month, the increase is nothing like the numbers we’ve seen during June of the last few years.

This year, the number of homes for sale is increasing, but at a much slower pace than last year. In King County as a whole, there are 11,320 properties for sale. Last year at the end of July, there were 14,639 properties on the market. This translates to 33% fewer homes on the market in King County this year. On the eastside, there were 15% less homes for sale in June. Since there’s still a great selection of homes for sale, the smaller number of available homes increases the odds of a home selling.

In fact, we had multiple offers on two listings this week alone. I find we have a lot of showings on our listings, so buyers are definitely out there more than they usually are in the summer months.

The number of sales this past month dipped a little from the previous month, but only by 12 homes. In May, we saw the highest number of homes sell in a month so far this year. As a reminder, in April of last year, there’s a very high number of home sales. This was artificially high as buyers tried to “cash in” on the tax credit. This year, the sales numbers are not inflated by any other issue. Real estate sales are fueled by the amount of job hiring in the area and by buyers who are more willing to move on with their lives, literally.

In June 2011, there were 2880 homes for sale and 661 of these homes had offers. The absorption rate, the number of homes that sold during a month compared to the number for sale, was 23%. Almost one quarter of the Seattle eastside homes for sale sold in June.

How is the real estate market doing in your area? Is it as strong as what we’re seeing here or is a little slower.