More condos were for sale in July than any month so far this year, but condo sales were still strong.
Median pricing dropped a bit from June to $272,000. This does not reflect a drop in prices, but only that the median price of the condos sold in July was less than what sold in June.
We expect prices to continue to increase. As an example of what's still happening in the market, we just sold a condo in Redmond in less than 2 days for 10% above the asking price! Not all condos or homes, for that matter, are selling over full price because of the increase in inventory. Our listing was staged beautifully, professionally photographed, and priced realistically. It immediately caught the buyer's attention and the seller received a fabulous offer.
Condos were on the market for less than 45 days. It would have taken less than two months to sell all of the inventory available in July.
Since there still are a number of condo owners "under water" who are waiting for prices to increase even more, expect the market to remain strong, even if inventory increases. We still have a shortage of condos for sale when compared to the demand.
If you'd like more information about the condo market or your condo in particular, please feel free to contact us. We're here to help!
Will there be any condos available to buy on Seattle's eastside in 2013? If we look at the chart, it sure looks like the number of available condos could disappear! Right now, if no more condos were to come on the market, it would take less than 2 months to sell those currently available. We really expect condos to be on the market next year, but it's clear we'll start out with little for sale.
The number of condos for sale in Bellevue, Kirkland, Issaquah, Redmond, Sammamish and other eastside cities has been cut in half since March of this year. That's a huge drop in a short amount of time.
Not as many condos sold this past month when compared to other months of this year. However, because the number of condos for sale is so small, 56% of the condos on the market sold last month.
Median pricing has increased from last year by $20,000 to $242,000.
We do expect the number of condos for sale to stay low in 2013 as many are still hoping to recover some of the value of their condos before making a move.
Stay tuned to the first of the year, which is just around the corner. We'll do a wrapup of this year's condo sales on Seattle's eastside.
Have a great New Year!
In the third quarter of 2012, almost 30% of the homes that sold in the cities of Bellevue, Redmond, Kirkland, Sammamish, Woodinville, Issaquah sold for over full price! The demand by buyers for homes and the lack of inventory is creating this huge uptick in competition for a home. When more buyers are competing for the same house, the offers often have to be for more than full price to stand out from the competition. Many homes are now getting multiple offers and many, almost a third, are now selling for more than the asking price.
We've recently sold several listings in which the selling price was over $20,000 more than the asking price! In one instance, the home had come on the market only hours before. The buyers didn't want to take the risk that another offer would be written before the seller had time to respond, so they offered over full price. Another home sold within 48 hours. Three buyers made offers for that home.
As you can see in the above chart, the homes that sell for more than full price, sell for about 3% above the asking price, with the range from just a hair over asking price all the way to 22.5% above the asking price!
Twenty-one percent of the homes sold for full price. This means 51% of the homes on the eastside sold for full price or more!
The homes that sold above full price only lasted on the market, on average,16 days. Homes that sold for full price were on the market for about a month.
But what about the other 49%? (Not to be confused with the 47% that was talked about in the election)
Why did half the homes sell for less than full price if the market is so hot? More than likely, one of these reasons was the cause:
You can't change the location or the fact that there is competition for a particular home. But when selling a home, you need to maximize your buyer attraction by pricing your home well, having it in stellar condition, and presenting it well to the buyers through fabulous marketing.
If you have questions about how to have your home be one of the 51% that sells for full price or more, feel free to contact us!
On September 29th, Go to Your Seattle Eastside Supermarket and Donate Food to The Eastside Month of Concern for the Hungry
Please think about shopping and donating to the drive on September 29th all over the eastside at supermarkets in Bellevue, Kirkland, Redmond, Issaquah, Woodinville and Sammamish. The Eastside Month of Concern for the Hungry campaign to fill Seattle-Eastside food bank shelves is happening this weekend. Many supermarkets all over the eastside will have volunteers ready and waiting to pick up food and cash donations for such Eastside institutions as Hopelink, the Emergency Feeding Network, the Issaquah Foodbank, and The Mercer Island Foodbank. Food bank shelves are a little barer this time of year and the need for food on the eastside has only increased over the last few years.
Part of living in a home in a neighborhood is part of being in a community. Help your community out by donating even a little to those who are less fortunate.
Our amazing Seattle-Eastside real estate continues! How low can the supply of eastside condos go? In July there were only 463 condos for sale all over the Eastside, less than half the number of condos for sale in July of 2011! The supply is low and the prices have dropped considerably over the last few years as evidenced by the chart below. These market conditions bode well for buyers. Prices are at the bottom and with the low supply, they should begin rising. Unfortunately for the sellers who bought from 2007 on, it's still a tough market as pricing is well below the high experienced during that time.
Not only was the supply at the lowest I can remember, the number of sales were at the high so far for the year. There were 463 condos for sale and 236 of them sold! I've been in real estate on Seattle's eastside for 25 years and I've never seen anything like the lack of supply in the market we're experiencing now. In previous reports I mentioned if the supply of condos stayed on the low side, to expect the positive market to continue in Bellevue, Kirkland, Redmond, and the other cities east of Seattle. This was how the real estate market performed in July.
The chart beow shows the trend in pricing from 2008-2012 for condo sales on the eastside. Each blue bar represents a month during the years that are represented below. The red line that is drawn across each year shows where the median point is in pricing for the year.In 2008, the median pricing for condo sales on the eastside was $337,064. So far this year, the median pricing for sales is at $221,631. If you look at 2012, pricing has jumped up for the last two months, but on average, it's still lower than previous years.
Time on the market has also dropped to an average of 90 days to sell vs.109 days in June of 2011.
If you have any questions about the condo market, please feel free to contact us.
The Seattle media had screaming headlines recently about the 7% increase in King County real estate prices this July when compared to last July. Were the newspaper headlines right? As I've mentioned before, yes and no.
What did the media get correct when they said prices had gone up from July, 2011 to 2012?
They were only comparing the sales from July, 2011 to July, 2012. The median price was based on the sales that happened only in those two months. This could mean more expensive homes sold in 2012 than in 2011 or it could mean prices were higher. It is hard to know based on this one month. A snapshot of one month's real estate sales does not make a trend. It only shows how sales compared for those two months, so the Seattle Times was correct in stating the prices had gone up in from July, 2011 to 2012 by 7%. However, this is not the full picture.
How can you more accurately tell if real estate prices are going up, down or staying the same?
It's important to look at a pattern for a period of time, such as you can see in the chart above.
What does the chart show?
The chart is a compilation of all the home sales on the eastside, including such cities as Bellevue, Kirkland, Redmond, Woodinville, Sammamish, Issaquah and more. The NWMLS (Northwest Multiple Listing Areas) for these eastside cities are represented by area numbers 500-600 displayed at the top of the chart.
Windermere Real Estate compiled the data from each month and developed this chart to show median pricing for the past 5 years. If you look at the bottom of the chart, you'll see the years 2008-2012. Each blue bar above the years represents a month during each of the years. The red line going across the chart shows the median price point for each year. It was highest in 2008, when the median pricing for the year stood at $623,733 and had gone down consistently through the end of 2011, when the median pricing for the eastside stood at $502,784.
This year the chart shows the median pricing is creeping up, but here on the eastside and in other parts of King County, it's not up by 7%, but by about 3% so far for the year. The median for this year is at $518,309.
This is a much more accurate picture of real estate values on the eastside, not just a measure of one month's sales. Are you seeing similar trends in your area?
If you have questions about the value of your home, please feel free to contact us and we can take a closer look at the data for your home.