This tells it like it is in the Seattle area real estate market.  The entire region, with the exception of Vashon Island in yellow, is a sellers market, which is indicated by the color red.  The top sales rate, not the most sales, once again goes to Redmond and East Bellevue near Microsoft.  In March, 80% of the homes sold there, while 69% sold in April! The odds of selling a home were the lowest in other parts of Redmond and Carnation.  But at 32%, the odds were still good.  This is a testament to the positive economy in the Seattle area and on the eastside.

Microsoft is hiring and moving people around the country.  We know this first hand as we’re working with three different buyers who are either moving into the Bellevue/Redmond area or moving out of state for Microsoft.

Multiple offers, a shortage of homes, a huge percentage of homes selling in a short amount of time. some price increases (although minimal) are happening all over the Seattle eastside real estate market.  The Seattle Times recently published a very positive picture of the local real estate market.

The cities below are reported together to follow our MLS areas (multiple listing service) information.

1. Redmond/East Bellevue

The odds of selling a home were 69%!!!!!

Median sales price decreased from $430,000 to $428,000 (y-o-y)**

97 homes were for sale

A total of 67 homes sold

Days on the market: 70

2. South Bellevue/Issaquah

The odds of selling a home were 48%

Median price increased from $520,000 to $522,000

244 homes were for sale

A total of 118 homes sold

Days on market: 85

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

The odds of selling a home were 44%

Median sales price increased from $467,000 to $472,000

There were 467 homes for sale

A total of 203 homes sold

Days on the market: 110

4. Woodinville/Bothell/Kenmore/Duvall/North Kirkland

The odds of selling a home were 42%

Median sales price increased from $383,000 to $385,000

397 homes were for sale

A total of 165 homes sold

Days on Market: 103

5. Kirkland

The odds of selling a home were 36%

Median sales price decreased from $550,000 to $430,000

132 homes were for sale

A total of 47 homes sold

Days on Market:  72

6. West Bellevue

The odds of selling a home were 34%.

Median sales price increased from $973,000 to $1,185,000

118 homes were for sale

A total of 40 homes sold

Days on Market: 107

7. Redmond/Education Hill/ Carnation

The odds of selling a home were 32%

Median sales price increased from $452,000 to $538,000!

219 homes were for sale

A total of 69 homes sold

Days on Market: 159

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

*(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%)

** (y-o-y)  median pricing is comparing year over year numbers.

Red is busting out all over the map of Seattle Real Estate Sales!  Red means it’s a sellers market in which homes, on average, are selling in less than 3 months!  The numbers are really strong in all of the eastside cities, but top sales go to the 80% sales rate in Redmond and East Bellevue near Microsoft last month!  Incredible odds!  In every other area on the eastside over 40% of the homes sold.

Closed sales, the sales in which the new buyer now owns the house, are showing lower sales numbers because the homes that closed in March actually got offers in January or February.  Expect the number of sales for each of the coming months to jump   higher because March home sales will be closing in April and May..  Market time will continue to decrease as this faster sales market continues.

Pricing has still been dropping as you can see below, but should become more stable as the prices from these March sales becomes public. Some areas actually showed an increase in pricing, but remember, it is a representation of the sales that sold in March only.

Multiple offers, a shortage of homes, a huge percentage of homes selling in a short amount of time are all  the buzz words for the Seattle eastside real estate market.

The cities below are reported together to follow our MLS areas (multiple listing service) information.

1. Redmond/East Bellevue

The odds of selling a home were 80%

Median sales price decreased from $476,000 to $427,000 (y-o-y)**

95 homes were for sale

A total of 76 homes sold

Days on the market: 135

2. Kirkland

The odds of selling a home were 57%

Median sales price decreased from $570,000 to $469,000

137 homes were for sale

A total of 53 homes sold

Days on Market:  83

3. West Bellevue

The odds of selling a home were 46%.

Median sales price increased from $888,000 to $1,000,000

117 homes were for sale

A total of 54 homes sold

Days on Market: 70

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

The odds of selling a home were 44%

Median sales price decreased from $505,000 to $462,000

There were 436 homes for sale

A total of 193 homes sold

Days on the market: 127

4. (tie)  South Bellevue/Issaquah

The odds of selling a home were 44%

Median price increased from $510,000 to $560,000

225 homes were for sale

A total of 98 homes sold

Days on market: 99

5. Redmond/Education Hill/ Carnation

The odds of selling a home were 43%

Median sales price increased from $411,000 to $472,000

193 homes were for sale

A total of 83 homes sold

Days on Market: 100

6. Woodinville/Bothell/Kenmore/Duvall/North Kirkland

The odds of selling a home were 42%

Median sales price decreased from $423,000 to $369,000

365 homes were for sale

A total of 151 homes sold

Days on Market: 100

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

*(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%)

** (y-o-y)  median pricing is comparing year over year numbers.

Multiple offers, low supply of homes, a huge percentage of homes selling in a short amount of time, all are happening in the eastside communities of Bellevue, Redmond, Kirkland, Issaquah, Woodinville, and Bothell.  This is an exciting trend that we expect will continue as long as people feel good about the economy, Seattle companies are hiring and there is this shortage of homes for sale. The national press is jumping on the bandwagon and reporting the uptick in the real estate market.  However, I believe this is not happening everywhere. We are among the fortunate areas in the country that are experiencing this positive real estate market.

Almost half of all the homes for sale in Kirkland and Redmond sold this past month! That’s astonishing odds. The cities below are grouped together to follow our MLS areas (multiple listing service).  This is how our statistics are reported.

1. Redmond/East Bellevue

The odds of selling a home were 49%

Median sales price decreased from $435,000 to $400,000 (y-o-y)**

113 homes were for sale

A total of 35 homes sold

Days on the market: 84

2. Kirkland

The odds of selling a home were 48%

Median sales price decreased from $457,000 to $442,000

140 homes were for sale

A total of 38 homes sold

Days on Market:  98

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

The odds of selling a home were 40%

Median sales price decreased from $514,000 to $442,000

There were 428 homes for sale

A total of 100 homes sold

Days on the market: 121

4.  South Bellevue/Issaquah

The odds of selling a home were 33%

Median price decreased from $580,000 to $525,000

239 homes were for sale

A total of 43 homes sold

Days on market: 118

5. Woodinville/Bothell/Kenmore/Duvall/North Kirkland

The odds of selling a home were 32%

Median sales price decreased from $366,000 to $360,000

368 homes were for sale

A total of 105 homes sold

Days on Market: 115

6. West Bellevue

The odds of selling a home were 20%.

Median sales price increased from $840,000 to $960,000

123 homes were for sale

A total of 15 homes sold

Days on Market: 133

7.  Redmond/Education Hill/ Carnation

The odds of selling a home were 4%

Median sales price increased from $382,000 to $515,000

205 homes were for sale

A total of 29 homes sold

Days on Market: 152

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

*(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%)

** (y-o-y)  median pricing is comparing year over year numbers.

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.

 

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

If you read the news about Seattle real estate, it could make you crazy!  It’s hard to determine what’s true and what is hype. There’s some tough news that dominates and then there is some news that is actually good.  You know how it is, bad news always travels faster than good news, no matter what the topic.  Our real estate news is a mixed bag, but it’s good to know it’s not all bad news.   So let’s deal with the “bad” news first, since that seems to be most people’s hot button. And, by the way, if you read beyond the headlines, it may not be as bad as it seems.

True, our prices are down. That’s the elephant in the room.  The “king” of the bad news.  There is no getting around it.  But if you look at the pricing issue more closely, it’s not as dire as it seems. Take out the distressed sales and prices for individual home sellers are down, but not as much.

• Bank-owned houses accounted for 20 percent of all King County sales in November, up from 14 percent a year earlier. Those houses sold for a median price of $177,000, down 18 percent from $216,000 in November 2010.

• The median price of short-sales houses dropped 17 percent, from $305,000 to $260,000.

• But other, “nondistressed” sales saw a much smaller price decline — 2.5 percent, from $399,000 to $389,000.*

Prices are down, but depending on the area, not as badly as one would think. The eastside is one of the areas where it is not as bad because people are still moving here for jobs and buying homes.  If you look at the chart above, over 400 homes have sold on Seattle’s eastside each month this year.  This November saw higher sales  than last November.

The good news for Seattle-eastside real estate:

• 24% fewer homes were on the market in December this year than in 2010.
• The time it takes to sell a home went from 129 days last December to 111 days this December.
• Sales prices on average were just 8% below the seller’s original asking price this year, while last year 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
• There’s no getting around that, but with less homes on the market, it spurs the competition among buyers for the best homes.
• Pricing is becoming more affordable for a new set of buyers who are coming to the market for the first time.

Amazingly, the actual number of homes sold did not change all that much.  Last year 495 homes sold.  This year 464 sold.  The difference?  There was much more competition last year because there were 597 more homes on the market!

So remember,  look at all the facts, not just the headlines when talking about real estate.  Review the data that applies to your specific neighborhood to make a decision about the market.

What’s happening in your neighborhood?  Is there any good news mixed in with all the negativity about the real estate market?

*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.

• 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?

The November Real Estate Map Showing a More Balanced Market Between Buyers and Sellers

The cities below are grouped together to follow our MLS areas (multiple listing service).  This is how our statistics are reported.
 
How was real estate market in your Seattle-eastside city in November, 2011?
 
1. Kirkland

The odds of selling a home were 31%.*

Median price decreased  (y-o-y)** from $530,000 to $477,000.

188 homes were for sale.

A total of 58 homes sold.

Days on Market:  105
 
2. Redmond/East Bellevue

The odds of selling a home were 29%.

Median sales price decreased to $418,000 from $527,000.

163 homes were for sale

A total of 48 homes sold.

Days on the market: 60
 
3. South Bellevue/Issaquah

The odds of selling a home were 22.5%.

Median price increased from $538,000 to $550,000.

267 homes were for sale.

A total of 60 homes sold.

Days on market: 98
 
4. Redmond/Education Hill/ Carnation

The odds of selling a home were 22%

Median pricing decreased from $540,000 to $530,000.

247 homes were for sale.

A total of 54 homes sold.

Days on Market: 104
 
4. (tie) Woodinville/Bothell/Kenmore/Duvall/North Kirkland

The odds of selling a home were 22%.

Median price was down from $451,000 to $394,000.

481 homes were for sale.

A total of 105 homes sold.

Days on Market: 114
 
5. The plateau:  Sammamish, Issaquah, North Bend, and Fall City

The odds of selling a home were 18%.

Median sales price decreased from $460,000 to $441,000.

There were 580 homes for sale.

A total of 104 homes sold.

Days on the market: 119
 
6. West Bellevue

The odds of selling a home were 11%.

Median pricing decreased to $950,000 from $1,035,000.

127 homes were for sale.

A total of 14 homes sold.

Days on Market: 91

How Many Homes Sold on Seattle's Eastside in November, 2011?

If you read the news about Seattle real estate, it could make you crazy!  It’s hard to determine what’s true and what is hype.  There’s some tough news that dominates and then there is some news that is actually good.  You know how it is, bad news always travels faster than good news, no matter what the topic.  Our real estate news is a mixed bag, but it’s good to know it’s not all bad news.   So let’s deal with the “bad” news first, since that seems to be most people’s hot button. And, by the way, if you read beyond the headlines, it may not be as bad as it seems.

True, our prices are down.  That’s the elephant in the room.  The “king” of the bad news.  There is no getting around it.  But if you look at the pricing issue more closely, it’s not as dire as it seems.  Take out the distressed sales and prices for individual home sellers are down, but not as much.

• Bank-owned houses accounted for 20 percent of all King County sales in November, up from 14 percent a year earlier. Those houses sold for a median price of $177,000, down 18 percent from $216,000 in November 2010.

• The median price of short-sales houses dropped 17 percent, from $305,000 to $260,000.

• But other, “nondistressed” sales saw a much smaller price decline — 2.5 percent, from $399,000 to $389,000.*

Prices are down, but depending on the area, not as badly as one would think.  The eastside is one of the areas where it is not as bad because people are still moving here for jobs and buying homes.  If you look at the chart above, over 400 homes have sold on Seattle’s eastside each month this year.  This November saw higher sales than last November.

The good news for Seattle-eastside real estate:

•  24% fewer homes were on the market in November this year than in 2010.
• The time it takes to sell a home went from 106 days last November to 60 days this November.
• Sales prices on average were just 4% below the seller’s original asking price this year, while last year they averaged 7% below the asking price.
• Twenty-nine percent of the homes for sale this past November received offers and sold, while only 19% received offers in 2010
• There’s no getting around that, but with less homes on the market, it spurs the competition among buyers for the best homes.
• Pricing is becoming more affordable for a new set of buyers who are coming to the market for the first time.

Truthfully, the actual number of homes sold did not change all that much.  Last year 435 homes sold.  This year 458 sold.  The difference?  There was much more competition last year because there were 342 more homes on the market.

So remember,  look at all the facts, not just the headlines when talking about real estate.  Review the data that applies to your specific neighborhood to make a decision about the market.

What’s happening in your neighborhood?  Is there any good news mixed in with all the negativity about the real estate market?

*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.

Here on the eastside, the market is doing well for the good homes, but not for all homes.  These are the homes that are the best of the competition in terms of price, condition, style, floor plan and location.

 
One reason why the good homes are selling with multiple offers:

 
Less than 9000 properties are for sale in King County, for the first time in years.  Supply is dwindling fast.  If you compare the number of homes for sale with this time last year,  3000 fewer homes are on the market.   As the year heads to a close, more sellers will take their homes off the market. 

 
I expect to see December and January be good markets for sellers because of the decrease in competition.  Quality homes will go fast, and possibly with multiple offers.

 
Does this mean it’s a bad market for buyers?  No, there are still a lot of good homes for sale.  Plus, it’s the most affordable market we’ve had in the Seattle area 17 years.  With the lower interest rates, a mortgage is starting to rival rental costs.

 
So if you snooze, you can lose.  Do you homework.  Determine what’s most important to you.  Is it the location, is it the good floor plan or a combination of many factors?  Know the prices of homes in the area. Learn what’s selling and for what price.  Know your wants and needs, study the market by visiting homes, and learn what sells well in the area.

 
If you do all these things.  You won’t snooze and lose.  You’ll know which homes work best for you and which are the best values.  You can then jump in and buy a good home and not lose.