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There's No Sign of a Seller's Market in Seattle Real Estate
Seattle Area Real Estate Map Showing Different Market Performance 10-31-10
The lack of “red” showing a seller’s market in Seattle area real estate is no big surprise. However, it’s good to see the market was more balanced in some Seattle area neighborhoods in October.
A balanced market is when homes on average are selling between 3-6 months, which means there was a level playing field between buyers and sellers in those areas for that particular month. A buyer’s market means the homes on average are taking longer than 6 months to sell and a seller’s market means the homes take less than 3 months to sell.
A real estate market is labeled a buyer or seller’s market depending on how long it took the homes to sell that month. Since the sales can vary each month, the type of real estate market can very easily change, going back and forth between a buyer or seller advantage.
Even though it’s more challenging for sellers, there are homes that stand out and sell with multiple offers or for full price. Look at the overall real estate market, look at the market in the neighborhood, and then look at the specific home and how well it’s priced for that market. When making a pricing decision, all of this data is important.
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What do the numbers on the map mean?
The map is divided into the numbered areas as defined by our Northwest Multiple Listing Service (NWMLS). Downtown Bellevue is area 520 and East Bellevue is area 530, as an example.
What do the colors mean?
Red means it’s a sellers’ market, a sellers’ advantage. Homes take less than 3 months to sell.
Yellow means a balanced market between buyers and sellers. Homes on the average take 3-6 months to sell.
Green means it’s a buyers’ market. Homes take longer than 6 months to sell.
If you take each area as shown on the map and look to the area number on the side of the map, it will tell you how long it would take to sell every home currently for sale if no other home came up on the market in that area.
How Was The Seattle-Eastside Condo Market in October, 2010?
Seattle Eastside Condo Sales Through October 2010
(The absorption rate, the percentage of condos selling, is the number of condos for sale in any given month divided by the actual number of condos sold that month. So if the absorption rate or chance of selling is 10% that means out of 100 condos for sale, 10 received offers and sold.)
October, 2010 1375 condos for sale 147 condos sold 11% odds of selling.
September, 2010 1448 condos for sale 130 (was 155) condos sold 9% (was 11%) odds of selling.*
October, 2009 1363 condos for sale 200 condos sold 15% odds of selling.
*Adjusted from previous month’s original numbers to reflect the actual number of condos sold and closed. Some of the sales originally reported last month failed and did not close. Some of the reasons sales fail are the buyer and seller don’t agree on the building inspection, the condo does not appraise for the sales price or the buyer’s financing does not come through.
The number of Seattle-eastside condos for sale dropped considerably as there are about 75 less condos for sale. The numbers are back down to March’s numbers. It’s pretty typical, no matter the kind of real estate market there is out there, for there to be more condos for sale in the summer than at any other time during the year. The decline in the number of condos for sale should continue until the end of the year. So if you plan to sell next year, start early in the year. Don’t wait until summer.
If you’re selling your condo now, can you be one of the 11/100 who gets the offer? Yes, if price and condition beat all of your competition.
What do you see happening with condo sales in your area?
How Did October, 2010 Real Estate Sales Do In Your Seattle-Eastside Neighborhood?
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Ok, the real estate market is slower, that much we all know, but it’s not dead and there are homes selling. These are the homes that stand out compared to the competition, because they show well and are seen as a value. Today’s pricing is similar to 2005 pricing. I’ll post another piece which shows these numbers.
Sales were down by a huge amount in Woodinville, Kenmore, Bothell, Duvall, and North Kirkland. The sales dropped by 42% from last year.
The number of homes for sale in King County has dropped below 13,000 for the first time since early May. On Seattle’s eastside, the number of homes for sale is down by about 200 homes. These numbers are headed in the right direction.
In “Microsoft land”, the neighborhoods of Redmond and East Bellevue near Microsoft’s home base, the sales prices actually went up by about 1% in value. Remember, the median pricing for any month will reflect the sales for that month and it is important to look at several months or more to see the real trend. I wish I could say this month’s increase was the norm, but if you look at past posts and the charts in the link above, you’ll see this is not the case.
Expect to see more homes come off the market as we head towards the holidays. We started the year with 9700+ homes for sale in King County, which was the lowest number of the year. So if you plan to sell next year, think about getting on the market early, when your home will have less competition.
Happy Turkey Day!
How did October, 2009 compare to October, 2010 in your neighborhood?
(Click on the cities below to see real estate trends for the past 5 years. You’ll find the median pricing for each city and whether the number of homes for sale and the number of sales went up or down. 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 decreased from $509,000 to $477,500.
The number of homes for sale increased by 16% and sales were down by 9% from last year.
The odds of selling a home were 18%.
Median sales price increased to $449,900 from $445,000.
The number of homes for sale was up by 2% and sales were even with last year.
The odds of selling a home were 15%.
Median price decreased to $514,500 from $592,500.
The number of homes for sale dropped by 1.5% and sales were down by 28%.
Woodinville/Bothell/Kenmore/Duvall/North Kirkland
The odds of selling a home were 11%.
Median price was down from $429,975 to $403,450.
The number of homes for sale declined by 2% and sales were down by 41%.
The odds of selling a home were 19%.
Median price decreased to $488,900 from $500,000.
The number of homes for sale declined by 7% and sales were down by 9%.
The odds of selling a home were 9.5%.
Median pricing was down from $1,150,000 to $948,000.
The number of homes for sale decreased by 9% and sales decreased by 27%.
Redmond/Education Hill/ Carnation
The odds of selling a home were 16 %
Median pricing decreased from $449,995 to $474,950.
The number of homes for sale increased by 8% and sales decreased by 32%.
What real estate activity have you seen in your neighborhood? If you would like more specific information about your neighborhood or home, feel free to contact me.
How Was The Seattle-Eastside Real Estate Market in October, 2010?
Recycling News for Seattle's Eastside
I’ve been on a major recycling binge these days, so here are some things I did, along with some other tips, that you can do to recycle in the Seattle area.
Got Electronics to Recycle?
- Old Electronics to Recycle
(I bet you have a few things at home that look like these!)
Saturday, November 13
9 am to 3 pm
Kirkland Congregational Church, UCC
106 – 5th Avenue, Kirkland, 98033
COME ON DOWN!
Some of the many things you can recycle for free:
Appliances-any size, no limit
TV’s, car batteries, computers, monitors, printers (data destruction
included)
Medical equipment, ink toner & cartridges
Scrap Metal: bikes, tools, BBQs, lawn mowers, metal furniture,
exercise equipment
See 1greenplanet for a complete list of items you can recycle.
Cash donations to Kirkland Congregational Church for providing this
service are welcome. Your donations will help support the ministry,
mission, and outreach programs of the Church of Mary Magdalene, a
homeless shelter in Seattle for women and children and families.
Not able to make Saturday’s Recycling event? I know I can’t make it, but recently I was able to recycle my old electronics. You can also drop things off to 1greenplanet, but 3RTechnology is another great place to recycle your electronics safely and cheaply. They are located just south of Safeco field in the SoDo district of Seattle. Hey, if you can make it to Safeco Field, you can make it there!
- 3R Technology
Here’s our car loaded with old equipment we were able to recycle.
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- Our car filled with old electronics to recycle
Got paper? I recently recycled 32 boxes of old real estate files! And this isn’t even all of the boxes I have had from my 23 years in real estate! I recycled the paper and boxes from transactions I’ve worked on from the early 90’s through 2003. In the past, I recycled years 1987-1993. We used DataSite Northwest, which is near downtown Bellevue and has a Seattle location. Our station wagon has come in handy this past month for all these recycling trips.
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- Our car loaded with files to recycle
I still have 25 boxes left of files I must keep for 7 years. These files go back to 2003. I’m going to be smarter from now on and recycle the files I can at the beginning of each calendar year. (We have to keep our files going back 7 years.)
Got hazardous materials at home?
Are you a senior who needs help getting rid of your Hazardous materials?
- Old Paint Can to Recycle
King County has a program to pick up hazardous materials for seniors who have difficulty disposing of the materials. The county will take batteries, paints, oil, solvents and other things. The website has a list of what they will pick up. They will not pick up electronics, so the other two places above are the best bet for recycling those ancient computers and TV’s.
Do you have other suggestions for recycling either electronics or hazardous waste in the Seattle area?
How Many Home Sales on Seattle's Eastside Are Distressed Properties?
Are there a lot of distressed property sales on Seattle’s eastside? These are bank owned/foreclosed properties and “short sales,” requiring 3rd party or bank approval. A short sale is when the seller is selling the home for less than the amount owed to the bank, so the seller is “short” on what is owed to pay off the bank.
The topic of foreclosures has been in the forefront of the news lately, with talk of robo-signers, sloppy paperwork and the like. People are worried about how this affects the economy in general and, more specifically, our Seattle-eastside real estate market.
The charts below show the total percentage of distressed properties, which includes short sales and bank owned properties.
Total Number of Seattle Area Distressed Properties Sales, 2009-2010
The next two charts show those sales that required 3rd party approval (short sales), and those that were bank owned.
Seattle Area Short Sales Requiring Third Party Approval 2009 - 2010
Seattle Area Bank Owned Property Sales, 2009-2010
The information covers most of the counties around Seattle and the city of Seattle itself. The charts show the percentage of distressed property sales from the 3rd quarter of 2009 through the 3rd quarter of 2010.
Not surprisingly, Seattle proper and the eastside have fared better than Pierce, Snohomish, and Kitsap counties. Although Kitsap county did have among the lowest number of short sales in some quarters of the past year. The stronger markets in Seattle and on the eastside are a direct result of the stronger and more diverse economy and job market in these areas. The area is the beneficiary of hi tech, engineering, and bio-tech jobs than some of the other counties. People who work in these fields tend to live closer to or in Seattle or on the eastside. (Although these jobs can be found all over western Washington, there is a greater concentration in the great Seattle area.)
During the first quarter of 2010, 24% of Seattle-eastside property sales were distressed properties. The second and third quarters both averaged 19% in distressed sales. Not great numbers, but the reality is in our worst quarter 75% of the sales were not distressed properties. Since so much of the news has focused on distressed properties and foreclosures, it’s good to know that most sales are not in that category.
What do you think about these numbers?
How Do You Move Your Seattle Eastside Home from "For Sale" to Sold?
Seattle-Eastside Homes That Moved From "For Sale" to Sold
It’s the price. No big surprise, but here’s the proof that pricing your home right will get it sold for the best price in the Seattle-eastside real estate market. The price you choose to ask for your home and how long you are at the original asking price will make a difference in how much you actually sell your home for and how long it will take.
How many times have you heard these comments?
- I don’t want to give my house away.
- My neighbor’s home sold so fast, it must have been underpriced.
There’s a common misconception that homes that sell quickly must have been priced too low. Yet, when you look at the chart above, the homes that sold quickly actually sold closer to their original asking price than the homes that stayed on the market longer.
Longer market time = a lower sales price and less money in your pocket.
What have you seen out in the real estate market with the pricing of homes vs. the sales price?
Will Recent Foreclosure News Affect Washington State Real Estate?
Is your head spinning with questions about foreclosures? I’ve had three clients ask me how the foreclosure process will affect real estate sales in Washington State. I’m not sure anyone can answer that question completely right now. This week I heard an NPR news story about mortgage backed securities now asking banks take back certain loans.
I’m not going to attempt to answer all of the questions about foreclosures, since as I’ve said, I don’t believe anyone knows how this will all shake out. However, I am going to talk about what’s happening in Washington State. Attorney General Rob McKenna made a statement as to what his office is doing regarding the foreclosure questions.
One important point to note:
- The focus of Atty General McKenna’s communication to trustees and servicers is directed at pending and future foreclosures.
The Washington Association of Realtors commented on Attorney McKenna’s foreclosure news:
….it is important to understand that buyers who have already closed the purchase of a home with title insurance, even if the home was foreclosed, are not at risk. The AG’s announcement does not undermine those buyers who purchased property and insured title. There is no reason to assume there were defects in a foreclosure process that is already concluded, but if a defect were revealed, the buyer will be protected by buyer’s title insurance.
Similarly, the Attorney General is not asking lenders with REO properties listed for sale or pending closing to stop the sale of those properties. Properties that have already been foreclosed are not affected by the Attorney General’s announcement. There is no reason to believe, based on these announcements, that already-foreclosed properties cannot be sold with clear and insurable title.All Washington homeowners and REALTORS will benefit from a directive requiring lenders to adhere to Washington law during the foreclosure process. As we (The Washington Association of Realtors) have stated repeatedly in the last two weeks, there is nothing fundamentally broken in Washington’s foreclosure law. To the contrary, the law is good and the Attorney General is insuring that it is obeyed by foreclosing lenders.
Regardless, the foreclosure news puts some fear back into the real estate marketplace. It’s more fear of the unknown here that seems to be the issue. If it were more clear as to how this will impact real estate, it would help to calm the fear of the unknown, which seems to rule right now.
So, in answer to my question that’s the title of this post, I can’t give a definitive answer yet. This news, coupled with the time of year, and the upcoming election, are all issues impacting the real estate market and contributing to home buyers moving more slowly.
What do you think about the latest wrinkle in real estate with the foreclosure question?
Five Easy Ways to Stop Polluting Your Home and Your Body
Take Your Shoes Off! It’s not rocket science here, but simple common sense. If you’re not bringing outside dirt into your home, you’re not bringing in pollutants. Shoes that slog through mud, dirt, sand, over sidewalks and streets with oil on them, and who knows what else, all bring pollutants into your home.
Shoes are Among the Biggest Home Polluters
Think about where you’ve stepped. Think about all the stuff over the years you’ve stepped in that you wished you hadn’t. Do you want to bring that into your home?
Have a walk-off mat at your front door for people to wipe their feet before they come in and take their shoes off. Your mat should be one that can easily be rinsed off.
Open your windows, bring fresh air in and ventilate your home occasionally.
Check, clean and replace furnace filters regularly. Filters are obviously designed to filter pollutants out, but some filters work better to capture tiny particles. When replacing your filters look for the MERV rating, which is the Minimum Efficiency Reporting Value. The higher the MERV number the better the filter is at removing pollutants.
Stop using products filled with chemicals to clean your home. Look at your cleaning solutions, paints, and personal care products, like soaps and shampoos. These are the products you use on a regular basis. Harmful stuff shows up in all kinds of things, so read the labels. There are many products with green labels these days. Check those out.
I got a shock yesterday when I heard a story on NPR about the dangers of the Brazilian hair straightening process. They’ve found the process includes formaldehyde. I didn’t have this process done in my home, but it was done to the hair on my head! (Those of you with curly hair will understand the things we do for straight hair) I don’t fault my hairdresser. I think most hairdressers are unaware of the chemical contents in the treatments they use, just like many of us are with the things we use at home. So I will not be using this process again and will be asking more questions about what goes on my head at the hair salon.
These are simple, inexpensive ways to cut down pollution in your home and on your body.
What other suggestions do you have for easy, inexpensive ways to cut down on pollution in your home?
