Facebook
Twitter
Pinterest
Copy Link
Cooler Weather Brings a Cooler Real Estate Market on Seattle’s Eastside
Seattle Eastside Real Estate Through September, 2013
Along with the cooler fall weather on Seattle's Eastside, the real estate market has cooled a bit. The hot market of early this year began to cool off in July and continued into September.
Does this mean we are in a bad real estate market? Each time the market changes, people read more into it than is needed. Our market is slower, but still very strong. We're in a more balanced, evenly paced market, which is a good thing. With homes selling on average in a little over a month, the real estate market is a good one. The market is a strong market, it's just not as crazy and fast paced as earlier this year.
The number of homes for sale dropped for the first time this year and inventory remains low. Sales activity, although still good, also declined. Ironically, the percentage of homes selling as compared to what's available, 41%, is not that much different than last year when 37.5% of the homes sold. The pace of the market is very similar to September, 2012, however time on the market is much shorter and median pricing is much stronger.
As I mentioned last month, this means pricing is paramount. With our more realistic market, buyers won't be as willing to jump. They're going to be more critical and evaluate the pricing of a home more carefully. We're in a more normal market in which buyers have the luxury of a little more time. They will evaluate and pick and choose those homes that are priced right and show well.
Here are the specifics for September, 2013 as compared to September, 2012:
- 41% of the available homes sold this past September, 37.5% sold in September, 2012.
- Homes sold in 37 days, down from 68 days in September, 2012.
- In 2012 median pricing in September was $500,000. In 2013, September's median pricing was $585,000.
If you'd like to know more about the value of your home, please don't hesitate to contact us.
Has The Seattle Eastside Real Estate Market Changed?
Seattle Eastside Real Estate Sales Through August, 2013
The Seattle Eastside real estate market is beginning to level off. For the first time in months, only about half the homes for sale sold. This is more typical of a balanced market between buyers and sellers, not the hot sellers' market we've seen over the last few months.
The number of homes for sale is starting to look more like 2012's numbers, although there are more homes selling now than in 2012. The supply of available homes is is almost twice what it was in January of this year. Homes are still selling well as the number of homes sold in August was among the largest this year. When you compare inventory to previous years, we still have far fewer homes on the market. This past August had the fewest number of homes for sale in any August ever!
Our market is a more evenly balanced market, between buyers and sellers. This shift started to happen in July, but was more pronounced in August. This means pricing is far more critical than it was this past spring when so few homes were on the market. If a home is not priced right, buyers will pass and wait for another home to come on the market that's priced more competitively. With more homes coming on the market, there are more choices for buyers and less wiggle room in pricing for sellers.
Median pricing was only $1000 greater than July's median pricing. Generally, we've seen a much larger increase in pricing from one month to the next this year, so this is another indication the market is leveling off.
Here are the specifics for August, 2013 as compared to August, 2012:
- 48% of the available homes sold this past August, 38% sold in August, 2012.
- Homes sold in 32 days, down from 63 days in August, 2012.
- In 2012 median pricing in August was $518,000. In 2013, August's median pricing was $575,000.
If you'd like to know more about the value of your home, please don't hesitate to contact us.
July Brought Sunny Weather and Great Real Estate Sales on Seattle’s Eastside
Seattle Eastside Real Estate Sales Through July, 2013
More homes were for sale on Seattle's Eastside in July, the most number of homes we've had for sale so far this year. The inventory is still below July of 2012, when there were 240+ more homes for sale. Competition is a little stronger as we see more homes come on the market. The good news is more homes are actually selling this year than last in most eastside neighborhoods. As the number of homes for sale has increased, the actual number of sales has also increased.
There's a very healthy turnover in the homes for sale as 1145 homes came on the market in July. Pending sales stood at 901 homes, a new high since 2005. This represents a fabulous number of sales.
I've seen some "for sale" signs up for a little longer than in the spring and there's been an increase in price reductions. Still, there are some homes that are selling with mulitple offers. Usually, these homes stand out from the competition with a great price, great condition and great marketing.
The market is beginning a very slow re-balance between buyers and sellers, as the number of homes for sale increases. That being said, don't be surprised to see anything and everything happen in this market. Expect the good homes to sell in a heartbeat, while others take a little longer. There are some reductions for the sellers who were still unrealistic as to what the market will bear.
Our listings continue to sell quickly and for strong prices. Through July, all of them sold in less than a week!
The median price for sales was higher in June than July. This does not mean prices have dropped, it just means the median price for all the homes sold in July happen to be slighty less than the median price for all the homes sold in June. If we look at the full year, with the exception of July, there's been a steady increase in median pricing.
As pricing continues to climb, fewer sellers will be underwater and more homes should be coming on the market.
Here are the specifics for July, 2013 as compared to July, 2012:
- 60.9% of the available homes sold this past July, 37% sold in July, 2012.
- Homes sold in 28 days, down from 65 days in July, 2012.
- In 2012 median pricing in July was $511,000. In 2013, July's median pricing was $574,000.
If you'd like to know more about the value of your home, please don't hesitate to contact us.
Low Inventory, High Sales Numbers, Great Median Price, All in June on Seattle’s Eastside!
On Seattle's Eastside, we're starting to see the seasonal creep up in listings we see in most summers. However, we still have far fewer homes on the market than we usually do. In 2012, there were about 400 more homes for sale than this past June. Our inventory is so low, that it would've only taken 1.5 months to sell all of the available homes for sale if no other homes had come on the market in June. The supply is low, considering the number of buyers out there hoping to buy a home.
Home sales increased in June from May, but at a slower rate than in previous months this year. The number of sales was not too shabby, though, as 60% of the available homes sold. A very healthy, brisk rate of home sales, but slower than the 75% that sold in April. However, pending sales were at the highest they've been since 2005, another significant milestone!
Homes were gone in a flash. It took only 38 days to sell homes in June! It was not that long ago that it could take 3 months to get a home sold. (Think 2011).
The big news is median pricing crossed the threshold to $600,000! As pricing continues to climb, fewer sellers will be underwater and more homes should be coming on the market.
What a difference a year makes! Here are the specifics for June, 2013 as compared to June, 2012:
- 60.9% of the available homes sold this past June, 37% sold in June 2012.
- Homes sold in 38 days, down from 72 days in June, 2012.
- In 2012 median pricing in June was $514,000. In 2013, June's median pricing was $600,000!
If you'd like to know more about the value of your home, please don't hesitate to contact us.
May Real Estate on Seattle’s Eastside Was Frenzied and Fast Paced
Seattle Eastside Real Estate Sales Through May, 2013
Seattle Eastside real estate continues with its frenzied, fast pace. Sellers could not ask for anything better than the market we have on the eastside this year. If no other homes were to come on the market, it would only take two months to sell all the homes that were for sale in May, when 71% of the available homes sold. Most homes sold at the asking price, with many selling over full price because of the demand with multiple offers.
As typical of the late spring and early summer, more homes are coming on the market, but the supply is still incredibly low. We're far below the supply in May, 2012, when there were almost 500 more homes for sale.
This year, the pace of the sale has kept up with the increase in listings. The number of sales per month has increased from 587 in January to 944 in May.
What a difference a year makes! Here are the specifics for May, 2013 as compared to May 2012:
- 71.5% of the available homes sold this past May, 41% sold in May, 2012.
- Homes sold in 41 days, down from 74 days in May, 2012.
- In 2012 median pricing in May was $500,000. In 2013, May's median pricing was $565,000.
If you'd like to know more about the value of your home, please don't hesitate to contact us.
April Showers Brought More Real Estate Sales on Seattle’s Eastside
Seattle Eastside real estate sales keep climbing! Home sales have increased by 35% since January of this year.
Buyers don't despair. We're starting to see a significant increase in the number of homes for sale, which is good for buyers. Sellers still have the advantage in the marketplace, though, because the supply is still low when compared to previous years when 3000-4000 homes were for sale each month on Seattle's Eastside.
Will the market ease up for buyers if more homes come up for sale? More than likely if the supply increases, the market will still perform well for sellers, but it may not be as frenetic. It still will be a matter of time before there are any big changes to the marketplace, but it will be interesting to see how the rest of the year plays out. We believe more homes will come up for sale as typically happens each summer as the school year comes to a close. Will this change the marketplace dynamics between buyers and sellers? Probably not much at this point, because we're still on the low side of supply.
Here are the specifics for April, 2013 as compared to April, 2012:
- 80% of the available homes sold this past April, 41% sold in April, 2012.
- Homes sold in 48 days, down from 101 days in April, 2012.
- In 2012 median pricing in April was $485,000. In 2013, April's median pricing was $565,000. Wow, that's a huge jump in median pricing. We're still expecting median pricing to continue to work its way back up to the higher $500+ range, but much will depend on how many homes come on the market.
If you'd like to know more about the value of your home, please don't hesitate to contact us.
Seattle Eastside March Real Estate Marched On!
Seattle Eastside Real Estate Sales Through March, 2013
Finally, there were a few more homes for sale on Seattle's eastside in March, the first month since August of last year!
Did this increase in inventory dampen the number of sales? So far, nothing has slowed down the rate of sales. In fact, the rate of home sales in Bellevue, Kirkland, Redmond, and other eastside cities was higher in March than February. Seventy-eight percent of the homes on the market sold! There is still more than one buyer for each home, so multiple offers remain the norm.
It's been hopping out there in the real estate market on the eastside. We're starting to see some Eastside buyers behave like Seattle buyers. This past weekend, a buyer pre-inspected one of our listings before making an offer. Rumor had it that there were going to be at least 4 offers on the table and this particular buyer wanted to come to that table with a very clean, straightforward offer. Buyers in Seattle have pre-inspected homes for years when the market has been hot. It's not something we've seen as much on the eastside, but we wouldn't be surprised if it continues.
Here are the specifics for March, 2013 as compared to March, 2012:
- 78% of the available homes sold this past March, 44% sold in March, 2012.
- Homes sold in 62 days, down from 109 days in March, 2012.
- In 2012 median pricing in March was $470,000. In 2013, March's median pricing was $560,000. We're expecting median pricing to continue to work its way back up to the higher $500+ range, particularly since inventory is still so low.
The Seattle Times reported a 17% increase in pricing from March, 2012 on the eastside.
It was the biggest monthly percentage gain since April 2012, when King County’s median home price started rising after 19 months of decline.
If you'd like more information specific to your home, don't hesitate to contact us.
If You Had a “For Sale” Sign in Your Yard in February on Seattle’s Eastside You Probably Sold Your Home!
Seattle-Eastside Real Estate Sales Through February, 2013
Did February's real estate sales top January? They sure did! Seventy-four percent of the homes on the market sold! Homes continue to sell with multiple offers and for over full price.
The number of homes dropped only a bit from January, and was the lowest number of homes for sale in over 20 years. Sales skyrocketed though, climbing from 605 to 713 homes. This number doesn't sound like a lot, until you consider the fact that only 968 homes were for sale.
The hot market continues, but two areas of Seattle's eastside were on fire. South Bellevue and Issaquah and East Bellevue and Redmond, near Microsoft. If a home had a "for sale" sign in the yard in these areas, it sold last month!
Sellers still need to price their homes for the market or the buyers will not come. Buyers will pay more than full price if there's competition from other buyers and the house is a well maintained with a market value price tag on it. Homes don't sell for more than full price if they are overpriced when they go on the market. But if buyers see the value of the home and there's more than one buyer, that's when a home sells for more than full price. Sellers must attract the buyers with a good value if they truly expect to attract multiple buyers and sell for at least full price and possibly more!
Buyers, since the ball is in the seller's court in 2013, you have to be prepared. Work with a Realtor who knows market value and whether it's worth paying more for a home if there are multiple offers. Find out if your Realtor has worked in this kind of seller's market before and how they handle multiple offers. Get pre-approved by your lender and have it in writing to present with your offer. Make a simple, clean offer. Include a good earnest money check to accompany the offer. Pre-inspect the house if the seller allows it, so you can be assured of an inspection, but not have it be part of the offer. It's one less contingency that you and the seller will have to sort out when comparing the offers and puts your in a better position.
The hottest selling price range was for homes priced under $350,000. Right behind it were the homes priced between $500-750,000. Fifty three homes sold for over $1,000,000 this past month. There's less than 2 months worth of inventory for all homes priced below $750,000!
The strong real estate market should continue. In the Seattle Times, Dick Conway, an economic forecaster said:
…. robust job creation by the likes of Boeing, Amazon and other major companies headquartered here should create more demand for new housing, which in turn will create construction jobs, and hunger for more housing.
Here are the specifics for February, 2013 as compared to February, 2012:
- 74% of the available homes sold this past February, 33% sold in February, 2012.
- Homes continued to sell quickly, in 79 days, which is down from 119 days in February, 2012.
- In 2012 median pricing in February was $447,000. In 2013, February's median pricing was $525,000. Median pricing has been a solid $500,000+ for months now and should continue to be for the next few months
If you'd like more information specific to your home, don't hesitate to contact us.
*The absorption rate is the percentage calculated by dividing the number of sales by the number of homes for sale.
Seattle Eastside Real Estate Sails into The New Year!
Seattle Eastside Real Estate Sales Through January, 2013
In January, buyers were lining up to buy the few available homes on Seattle's Eastside. Sixty-five percent of the homes on the market sold! There were so many buyers that most homes attracted multiple offers and sold for over full price.
For many months now, I've repeated myself. I've been reporting that the number of homes for sale during each of the last few months is the lowest number in 15 years, yet with each month the number has gotten smaller and smaller. The start of 2013 marks the first time the number of homes for sale has dropped below 1000 homes in such Eastside cities of Bellevue, Redmond, Kirkland, etc, I checked back to 1990, 23 years ago, and this is the lowest, and the lowest by far, number of homes for sale. Traditionally, there are several thousand homes for sale.
Sales, on the other hand, are high. Eastside real estate sales increased by 17% from January, 2012, while the number of homes for sale dropped by 44%. Redmond and East Bellevue continue with the top the absorption rate.* Over 95% of the homes near Microsoft sold last lmonth! There were only 44 homes on the market in those areas and 42 sold!
Fewer homes to buy + more sales = hot market.
Sellers, your ship has come in! But keep in mind, the homes that sell for the best prices are in show condition, not in need of repairs and are priced right.
Buyers, you have more of a challenge in this market. But it can be done. You can buy a home. Be prepared with a strong pre-qualification letter, learn your market, and have a Realtor representing you who is a savvy negotiator in multiple offer situations.
Here are the specifics for January, 2013 as compared to January, 2012:
- 65% of the available homes sold this past January, 24.5% sold in January, 2012.
- Homes continued to sell quickly, in 71 days, which is down from 106 days in January, 2012.
- In 2012 median pricing in January was $470,000. In 2013, median pricing was $514,000.
If you'd like more information specific to your home, don't hesitate to contact us.
*The absorption rate is the percentage calculated by dividing the number of sales by the number of homes for sale.
Seattle Eastside 2012 Real Estate Ends the Year on a High Note
What a year we had in real estate on the Seattle eastside! December real estate was on fire, just like much of 2012! Just over 1000 homes were for sale, about 1/2 as many as were for sale just a year ago. It's been over 15 years since there have been so few homes for sale in Bellevue, Kirkland, Redmond and other eastside cities. In a few eastside neighborhoods, every home for sale sold, but the bottom line is in every area most homes were selling, if they were priced right and showed well.
The area with the most sizzling sales activity was near Microsoft, in Redmond and East Bellevue. There was and is a dearth of listings, so every home that was for sale sold! Over 100% of the available homes sold in December! More than likely a few homes sold before they were on the market, causing the percentage of those sold to top 100 percent.
Our listings have been selling in a matter of days with multiple offers. Typically, homes sold for more than full price because of the intense competition and lack of inventory.
In 2012, 7300 homes sold on Seattle's eastside. Even with fewer homes for sale in 2012 than in 2011, more homes actually sold in 2012. In 2011, 5440 homes sold. In 2012, most of the homes sold were priced between $500-$750,000. The second most popular price range for homes in Eastside neighborhoods was $350-$500,000. Market time was really short by the end of 2012. It would have taken about 2 months to sell every home for sale, which was half the time it would have taken to sell off all of the available inventory in 2011.
Here are the specifics for December 2012 as compared to December, 2011:
- 46% of the available homes sold this past December, 17% sold in December, 2011.
- Homes continued to sell quickly, in 63 days, which is down from 106 days in December, 2011.
- In 2011 median pricing in December was $460,000. In 2012, median pricing was $506,000.
The median price of $506,000 listed above reflects the median price of the sales in December. The median price for homes sold in all of 2012 was $525,399, up from $502,784 in 2011. The chart below shows the median pricing for each of the last 5 years. As I've mentioned in previous posts, it makes more sense to look at the trendline (the red line) for the year then to just compare one month to another. It's clear that for the first time in the last 5 years, we are seeing a solid trend with price increases.
The fabulous activity in the 2012 eastside real estate market should continue into 2013. We've started the year with our listings selling just after the ink is dry on the listing and it's posted on the internet. With supply at an amazing low and demand still very high, there are multiple buyers for homes.
Seattle is on a strong path forward because of our strong economic footing, according to Jed Kolko, the chief economist at Trulia:
On the other hand, metros like Seattle, which came in second on the list of cities with the highest asking-price recovery, are on a smoother path to growth because of their strong economic fundamentals, he said.
If you'd like more information specific to your home, don't hesitate to contact us. Have a wonderful 2013.
