The Hot Seattle Eastside Real Estate Market Helped to Warm Up Our Chilly November!

How did this past November's Seattle eastside real estate compare to November of 2011?   Low inventory, strong sales, short market times, and increasing home values continued through November.

According to the Seattle Times, November had the lowest number of homes on the market in any given month since 1999!   

Why are so few homes for sale? Some sellers are underwater, some are waiting for prices to go up, and some are just not ready to move.  Given this situation, expect to see our great real estate market continue into next year. 

Our listings have been selling in a "heart beat," which is not surprising given the lack of inventory.   We've listed 3 homes since the beginning of December and all have sold with multiple offers in 4 days or less and for over full price!   Remember we said this holiday season is a great time to sell your home. 

The reality is, even in this market, not all of the listed properties have sold.  The homes that go in a "heart beat" show well and are priced well.  We've had wonderful sellers to work with who have done all the right thihgs to get their homes ready to sell.  In addition, our staging, photography, and pricing structure have helped them to sell their homes for more than full price

Here are the specifics for November 2012 as compared to November, 2011:

  • 45% of the available homes sold this past November,  20% sold in November, 2011.
  • Homes continued to sell quickly, in 66 days, which is down from 107 days in November, 2011. 
  • Last year median pricing in November was $469,000.  This year, median pricing was $525,000.

 

If you'd like more information specific to your home, don't hesitate to contact us. We'll do a wrapup of 2012 after the first of the year. Have a wonderful 2013.

Posted on December 13, 2012 at 11:48 pm
The Beaupain Team | Category: Eastside Real Estate, For Buyers, For Sellers, Market Statistics, Real Estate | Tagged , , , , , ,

Seattle Eastside Real Estate in October, 2012? Fabulous!

 

How did this past October's Seattle eastside real estate compare to October of 2011?  Can you say FABULOUS! This October was a fabulous real estate market in every way, fewer homes for sale, more sales, shorter market times, and a clear trend of increasing home values.

Here are the specifics:

  • 51% of the available homes sold this past October,  21% sold in October, 2011. Over half the homes on the market sold!
  • Homes sold in 62 days, which is down from 97 days in October, 2011.  Homes are selling fast!
  • Last year median pricing in September was at $469,000.  This year, median pricing was $515,000.
  • Homes sold within 4% of the original asking price.

 

Did the number of sales increase? 

Yes, by a whopping 47%!

Did prices continue to increase? 

Yes, they've continued to increase.  Median pricing for the Seattle eastside has been $500,000 and above every month since May of this year, which clearly indicate a strong trend. 

How does all this information impact you, if you're a seller?  This is the best time to sell your home in 5 years!

Know how quickly homes in your area are selling.  If your home is on the market for longer than the competition, your home is overpriced. If you have a lot of showings and your home does not sell, it's overpriced.  If you have very few showings, then your home is overpriced.  Since there are so few homes on the market, if your home is priced right and shows well, it will sell.  If it's not, then it will sit there.  In this market your home should be selling, if not, then look at your asking price.   Even though there is not a lot for sale, buyers will still not overpay for a house. 

How does this information impact you as a buyer?

Prepare yourself and become familiar with what you can buy for the money in your favorite locations. Take your time to do this.  When you're comfortable with what's available, then it's easy to make a quick decision when the right house comes up.   Expect multiple offers, if the house is a good one.  Be prepared with a preapproval letter to accompany your offer.  If it's a well priced home that shows beautifully, expect it to sell quickly and for close to, if not, full price. 

If you'd like more information specific to your home, don't hesitate to contact us.

Posted on November 7, 2012 at 10:09 pm
The Beaupain Team | Category: Bellevue Real Estate, Eastside Real Estate, For Buyers, For Sellers, King County Real Estate, Kirkland, Market Statistics, Real Estate | Tagged , , , , , ,

August Real Estate Keeps Moving on Seattle’s Eastside

How was the real estate market on Seattle's eastside in August?

The market has been" steady as she goes!"  This is a very good thing.  We are experiencing a great real estate market that has followed a trend over the last few months and is far better than last year at this time.  

The number of homes for sale has hardly changed at all.  Ok, there were 8 fewer homes for sale in August, but that's just a drop in the bucket.  And as we mentioned in a recent, the exact same number of homes were for sale in both June and July! 

Did the number of homes for sale increase?

No, It hardly changed, but it did decline slightly.  This had little impact on the market.

Did the number of sales increase? 

Yes, by 6%. So we had about the same number of homes for sale, but more homes sold in August.  This sounds good to me. 

Did prices continue to increase? 

Yes, they have continued to increase, but only slightly.  Median pricing in July was $512,000.  This August it's $520,000.  Last August median pricing for the eastside was $506,000. 

This is the third month in a row that median pricing has been up for the year.  Again, this is a great trend!

The Seattle Times gave a very positive picture of the entire King County real estate market, which includes Seattle and the eastside cities of Bellevue, Kirkland, Redmond, Issaquah, Woodinville, and more.  Glenn Crellin of UW's Runstad Center for Real Estate Studies said:

But for now, he added, the local market looks healthy. Rising prices are giving more formerly "underwater" homeowners — who once owed lenders more than their homes were worth — equity in their houses again, he said.

How did this past August compare to August of 2011?

  • 38% of the available homes sold this past August,  20% sold in August, 2011.
  • Homes sold in 63 days, which is down from 85 days in August, 2011.  Homes are selling more quickly.
  • Last year median pricing in August was at $506,000.  This year, median pricing was $520,000.
  • Homes sold within 4% of the original asking price.  Last year homes sold within 7% of the asking price.

Is the Seattle eastside market strong?  Yes, particularly compared to last year when there were almost 1000 more homes for sale!  Add that to the fact that almost 1/3 more homes sold this past August than in 2011!

How does all this information impact you, if you're a seller?

Know how quickly homes in your area are selling.  If your home is on the market for longer than the competition, there's a good chance your home is overpriced. 

We recently spoke with a seller and told him the last few homes in his area in his price range sold in 2, 5, and 11 days.  If his home is on the market for about 10-12 days with no offers, then his home will be overpriced for the market.  Pricing a home correctly is the most important thing you can do as a seller.  The next most important thing to do is hire someone who will guarantee you"ll have professional photography.  Your home will have about 3 seconds to grab a buyer's attention on the internet, so make that 3 seconds work for you.  If your home has lousy photos, you could potentially lose a good buyer.  Make sure your home is decluttered, staged with your own furniture and good staging advice or with staged with the stager's furniture.  As a seller, you're painting a picture for the buyer of how "cool" and wonderful it would be to live in your home, so set the stage, literally!

How does this information impact you as a buyer?

There is enough turnover in the supply each month for buyers to learn what values are in the marketplace.  Find out what's available in your price range in your areas so you'll be prepared when the right home comes up.  In some areas, multiple offers are the norm.  In others, there may be some flexibility in the price.  But if it is a well priced home that shows beautifully, expect it to sell quickly and for close to, if not, full price. 

If you'd like more information specific to your home, don't hesitate to contact us.

Posted on September 12, 2012 at 6:07 am
The Beaupain Team | Category: Bellevue Real Estate, Bellevue, WA, Eastside Real Estate, For Buyers, For Homeowners, For Sellers, Issaquah Real Estate, Issaquah, WA, King County Real Estate, Kirkland, Real Estate, Redmond, Sammamish, WA | Tagged , , , , ,

The Strong Real Estate Market Continued Through July on Seattle’s Eastside

How hot was the Seattle Eastside real estate market in July?

The market was still hot, even if our summer has only been hot the last couple of weeks!

Ironically, it looks like July was almost a mirror image of June. Real estate stats for the two months are almost the same.   The exact same number of homes were for sale in both June and July!  We never see this.

Did the number of homes for sale increase? No

Did the number of buyers decrease?  Sales increased by one!

Did prices continue to increase?  Yes, they have continued to increase, but only slightly.

Even though the media has reported that real estate prices increased by 7% from July, 2011, truthfully, prices have not increased by that much on Seattle's Eastside, which encompasses the cities of Bellevue, Redmond, Kirkland, Issaquah, Woodinville, Sammamish.  If prices were up by 7%, we would be heading towards a market similar to what existed before the market crash.  I recently posted an article explaining what the actual increase in pricing is for eastside homes.  Check it out because it gives a realistic explanation as to what is truly happening with market pricing.

With a 38% chance of getting a home sold in July, Seattle eastside home sellers had great odds of getting their home sold. The odds have dropped slightly over the last few months from March's high. 

How did this past July compare to July of 2011?

  • 38% of the available homes sold this past July,  21% sold in June, 2011.
  • Homes sold in 64 days, which is down from 90 days in June, 2011.
  • Last year median pricing was at $504,000.  This year, median pricing was $517,000.
  • Homes sold within 2% of the original asking price.  Last year homes sold within 4% of the asking price.

All these statistics point to the positive.  More homes sold in a shorter amount of time, and the median price was slightly higher than last year. Homes are selling in a shorter amount of time, with less of a price reduction and prices have stayed fairly stable when compared to June of 2011.

If you'd like more information specific to your home, don't hesitate to contact us.

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How hot was the Seattle Eastside real estate market in July?

The market was still hot, even if our summer has only been hot the last couple of weeks!

Ironically, it looks like July was almost a mirror image of June. Real estate stats for the two months are almost the same.   The exact same number of homes were for sale in both June and July!  We never see this.

Did the number of homes for sale increase? No

Did the number of buyers decrease?  Sales increased by one!

Did prices continue to increase?  Yes, they have continued to increase, but only slightly.

Even though the media has reported that real estate prices increased by 7% from July, 2011, truthfully, prices have not increased by that much on Seattle's Eastside, which encompasses the cities of Bellevue, Redmond, Kirkland, Issaquah, Woodinville, Sammamish.  If prices were up by 7%, we would be heading towards a market similar to what existed before the market crash.  I recently posted an article explaining what the actual increase in pricing is for eastside homes.  Check it out because it gives a realistic explanation as to what is truly happening with market pricing.

With a 38% chance of getting a home sold in July, Seattle eastside home sellers had great odds of getting their home sold. The odds have dropped slightly over the last few months from March's high. 

How did this past July compare to July of 2011?

  • 38% of the available homes sold this past July,  21% sold in June, 2011.
  • Homes sold in 64 days, which is down from 90 days in June, 2011.
  • Last year median pricing was at $504,000.  This year, median pricing was $517,000.
  • Homes sold within 2% of the original asking price.  Last year homes sold within 4% of the asking price.

All these statistics point to the positive.  More homes sold in a shorter amount of time, and the median price was slightly higher than last year. Homes are selling in a shorter amount of time, with less of a price reduction and prices have stayed fairly stable when compared to June of 2011.

If you'd like more information specific to your home, don't hesitate to contact us.

Posted on August 16, 2012 at 5:19 am
The Beaupain Team | Category: Eastside Real Estate, For Buyers, For Sellers, King County Real Estate, Market Statistics, Real Estate | Tagged , , , , ,

Strong Signs Continue for a Positive Real Estate Market on Seattle’s Eastside

How hot was the Seattle Eastside real estate market in June?  In May I mentioned the market stats over the next few months would dictate whether Seattle-eastside real estate will remain a hot seller's market.  In May I asked the following questions about Seattle eastside real estate Now I'm asking those same questions about June's real estate market.

How did the real estate market do in June?

Did the number of homes for sale increase?  Yes, by 85 homes, which is not a huge increase, but an increase just the same.

Did the number of buyers decrease?  Sales decreased by 52 homes, which, truthfully, is not a big decline.

Did prices continue to increase?  Yes,  they have continued to increase, but only slightly.  

The Seattle Times stated that prices increased by 10% from June, 2011 to June, 2012.  Truthfully, prices have not increased by 10% on Seattle's Eastside, which encompasses the cities of Bellevue, Redmond, Kirkland, Issaquah, Woodinville, Sammamish.  If that were the case we would be heading towards a market similar to what existed before the market crash.  We really aren't seeing that right now.  Prices have gone up, but on the eastside it really closer to a 2% increase from last year.   Remember, to get an accurate read on price increases or decreases, it's important to track the prices over the year. 

With a 40% chance of getting a home sold in June, Seattle eastside home sellers had great odds of getting their home sold. The odds have dropped slightly over the last few months from March's high.  But since March, the odds of selling a home on the eastside have been consistently over 40%. 

How did this past June compare to June of 2011?

  • 40% of the available homes sold this past June, 20% sold in June, 2011.
  • Homes sold in 70 days, which is down from 94 days in June, 2011.
  • Median pricing remained almost the same.  Last year median pricing was at $514,000.  This year, median pricing was $513,000.
  • Homes sold within 4% of the original asking price.  Last year homes sold within 7% of the asking price.
  • 10% more homes sold this year.

All these statistics point to the positive.  Homes are selling in a shorter amount of time, with less of a price reduction and prices have stayed fairly stable when compared to June of 2011.

If you'd like more information specific to your home, don't hesitate to contact us.

Posted on July 19, 2012 at 5:43 pm
The Beaupain Team | Category: Bellevue Real Estate, Eastside Real Estate, For Buyers, For Sellers, King County Real Estate, Market Statistics, Real Estate, Windermere Real Estate | Tagged , , , , ,

Yet Another Reason to Work with a Buyer's Agent

Recently, I was reminded yet again about why it’s so important to have your own agent when buying a home.

Here’s what reminded me of this.  Buyers were interested in purchasing one of my listings, however they already had an offer on another home.  I found this out because their Realtor happened to mention it to me.  She probably shouldn’t have said something to me because she was representing the buyers. It was not something she should have disclosed, but that discussion is for another post.

My point is if these buyers had gone through the listing agent when they made the offer on the first house, there’s no way this situation could have occurred.  The agent could not have represented these buyers on another purchase when the buyers had an offer on the agent’s listing.    Having their own agent allowed these buyers the flexibility to write an offer on another home, while keeping the first offer in place.  Their agent told me if the buyers really wanted my listing, they would back out of the first offer and walk away from their earnest money.   They’d already gone through an inspection on the other home and had no legal reason to back out of the offer, but would have done so if they decided to go forward with my listing.

Could these buyers have done this if they had gone through the listing agent to buy the first home?  Absolutely not.  The listing agent has a fiduciary responsibility to the sellers, obviously, so the agent could do absolutely nothing to jeopardize the sellers’ interests, such as writing up an offer on another home for the buyers.

This situation reminded me of how many times I’d been in negotiations while representing a buyer and another home came on the market that was better for the buyers.  Each time I immediately contacted my buyers and we went and looked at the other home.  Each time they bought the new listing instead of going with the first offer.   It was easy to do for each of these buyers.  I was still keeping an eye out for new listings even as we worked on the offers.  We just jumped in the car and quickly took a look at the new listing.

Most people think it’s great to go through the listing agent to buy a home.   For some people and for some situations that works beautifully.  But what if you decide you want out of the sale?  You want out of the transaction to buy another home or because of an inspection issue or because you’ve changed your mind.  It’s much harder to do when the agent who wrote the offer represents the seller, too.

You never know what can happen.  It’s best to give yourself options and have your own agent so you don’t close the door to any opportunities.  Your agent can give you advice on anything and everything, unlike the agent who represents a seller.  Shouldn’t you have that level of service available to you?  After all, buying a home is a huge decision and you should have resources that are completely available to you at your finger tips.

Can you think of other situations where your buyer or you as a buyer benefited from having your own agent?

Posted on May 26, 2011 at 6:27 pm
The Beaupain Team | Category: For Buyers, For Sellers, Real Estate | Tagged , , , ,

Do You Want to Buy a Home This Year? Think of the Hot "New" Trends

Some people will buy a home in 2011. These buyers will move for more space, downsize for less space or relocate, the typical  reasons to make a move.  If you’re buying in 2011,  think about selling that home in the future. Make an investment that works for now and for later.  It’s important now, more than ever,  to make a wise investment, an investment that works for your lifestyle and finances.  So think location, commute, schools, and amenities.

But also think like builders. Builders do the research to check out what’s new and hot.

The real estate buzz words for new construction in 2011 :

  • functionality
  • practicality
  • smaller
  • greener
  • value

Think smaller homes. Make the” Old Woman in The Shoe” proud.   Look at homes with smaller footprints.   Think  “green.”  Think front porches.  Get our your rocking chair.

Front porch homes

Homes with Front Porches

Think one level homes. Think getting a smaller package with green, functional features wrapped up in a good value.

Buy a home you love, but also buy a home that’s a good investment.  Think about what people are looking for today, so you have a good home to sell tomorrow.

But if you’re Rapunzel looking to hang down your hair  from your castle’s turret, you may be out of luck in the future. Simpler, less fussy styles are in.

Posted on January 7, 2011 at 12:05 pm
The Beaupain Team | Category: Built Green and Sustainable Living, For Buyers, For Homeowners, Real Estate, Remodeling and style trends | Tagged ,

Should You Consider The FHA ARM Loan?

An FHA ARM loan?  With such great 30 year fixed rates?  In this day and age of great interest rates, few home buyers think of purchasing a home with an ARM (Adjustable Rate Mortgage) loan. Steve Tedrow of Windermere Mortgage Services talks about why he thinks the FHA ARM loan works for some buyers.

There is much negative publicity about ARM loans.  But, did you know that the FHA 5 year ARM has many advantages which could enable a buyer to buy more or save more in their monthly payment.  One of the  unique features to an FHA ARM is that the adjustment cap after the initial 5 year term is only 1%.  Compare a 5 year ARM at todays’s rate of 2.875% versus a 30 year fixed rate mortgage at 4%.  If you assume a worst case scenario, the average interest rate over 9 years is 3.99% on the ARM.   Many first time home buyers do not plan on staying in a property more than 5-6 years.  The FHA ARM could save them thousands of dollars over this time frame.

Maximum FHA ARM Loan increases over 9 years

Maximum Increase in FHA ARM interest Rates Over 9 Years

Or, it could allow them to purchase a more expensive property without increasing your monthly payment:

Example of increasing your purchasing power with FHA ARM

Increase Your Purchasing Power With FHA ARM

You can contact Steve or your loan officer to learn more abut FHA ARMs.

Posted on September 23, 2010 at 1:11 pm
The Beaupain Team | Category: Financing, For Buyers, Real Estate | Tagged , , ,

Rethink The American Dream of Home Ownership Or Abandon It?

Give up on buying a home, The American Dream or refocus how you think about the American Dream?  Which is it? Recently, two articles appeared voicing opinions on the topic.  One article, in “Time” magazine, thought home buying was something many people need to reconsider.

Whereas an article in The New York Times written by Karl Case, one half of the famous Case-Shiller index and a Wellesley college economics professor, had a different perspective.  Professor Case says” The American Dream” should have a different focus. Buying a home is more like what it used to be, before homes began appreciating at dizzying rates.  Mr. Case believes there are still benefits to buying a home, but we need to change our expectations.  The “Times” questioned whether many should consider buying a home at all.

Some highlights from Karl Case’s article in The New York Times, “A Dream House After All:”

But for people with a more realistic version of the American dream, buying a house now can make a lot of sense. Think of it as an investment. The return or yield on that investment comes in two forms. First, it provides what is called “net imputed rent from owner-occupied housing.” You live in the house and so it provides you with a real flow of valuable services. This part of the yield is counted as part of national income by the Commerce Department. It is the equivalent of about a 6 percent return on your investment after maintenance and repair, and it is constant over time in real terms. Consider it this way: when Enron went belly up, shareholders ended up with nothing, but when the housing market drops, homeowners still have a house. And this benefit is tax-free.

The second part of the yield on investment in a house is the capital gain you receive if it appreciates and you sell the house. Gains are excluded from taxation if the property is a primary residence and the gain is less than $250,000 for a single filer or $500,000 for a married couple filing jointly.

You can deduct the interest you pay on the mortgage. Interest rates are about as low as they can get. And, don’t forget, home prices are down by 30 percent on average from the peak.

But housing has perhaps never been a better bargain, and sooner or later buyers will regain faith, inventories will shrink to reasonable levels, prices will rise and we’ll even start building again. The American dream is not dead — it’s just taking a well-deserved rest.

From Barbara Kiviat in Time magazine:

Many argue that home ownership should not be a goal pursued at all costs.

One major trade-off (with home ownership): mobility.  Being free to move around the country easily means that people can go where the jobs are.

The inflexibility that pervasive home ownership brings to labor markets has a cost.

But if there ever were a time to start weaning America off the idea that home ownership cures all our ills, now-after the worst housing crash in 75 years–would be it.

Who do you think is right or do both perspectives have some merit?  What do you think?

Posted on September 9, 2010 at 10:26 pm
The Beaupain Team | Category: For Buyers, For Sellers, Real Estate, Real Estate Opinion | Tagged , , , , , ,

Interest Rates Are The Lowest in the Last 30 Years

50 years of interest rates

Interest Rates 1980-2010

I remember when I bought my first home in the mid 1980’s.  I was so excited, the interest rate was at the bottom of the double digits, considering what the early 80’s had to offer with rates in the high teens.  I had friends who purchased in Brooklyn, NY in the early 80’s and were paying almost 17% for their mortgage.  The interest rate for my first home was just above 10%.  Granted the home prices were significantly less, but the monthly payments were high, considering the lower prices of the times.

Fast forward to 2010, with interest rates the lowest in 30 years and prices at 2005 levels.

What’s the difference in monthly payments with the more recent interest rates we’ve seen?

If you decide to purchase a $400,000 home, this is the difference in principle and interest payments over the last couple of years.

July 2008 – 5.75%  – $2,334
July 2009 – 5.25%  – $2,209
Jan  2010 – 5.125%- $2,178
May 2010 – 5.0%   – $2,147
July 2010 – 4.50%  – $2,027

Seattle-eastside home values have dropped significantly since the peak in the real estate market in the summer of 2007 and rates have also dropped as well.  If you were to purchase a $400,000 home now, the payment would be approximately $300 less than two years ago, plus the home prices are also lower.  In King County, WA, the choices are terrific because the number of homes for sale is just below the high so far for the year.  Right now, in King County, there are 13,921 homes for sale.

So is it the right time to buy a home?  You decide.

Posted on July 8, 2010 at 5:41 am
The Beaupain Team | Category: Financing, For Buyers, Real Estate, Real Estate News | Tagged , , , , , ,