Facebook
X
Pinterest
Copy Link
What Were The Odds of Selling Your Seattle-Eastside Home in June, 2010?
Seattle-Eastside Home Sales, June 2010
The odds of selling a home on the Eastside in June, 2010 ranged from a low of 9% to a high of 23%, with an average 15% absorption rate. For the past few months, the absorption rate for all the Seattle-eastside areas had been in the double digits. This month, downtown Redmond and Carnation are in the single digits, at 9%. It’s a stark contrast to April, 2010 with its low of 20% to a high of 35%, averaging a 27% absorption rate.
June’s real estate activity is more similar to May, when the numbers started looking more like last year’s real estate rather than the highs of April, 2010. It’s ironic, in a sense, the tax credit did offer buyers a true incentive to buy, but if one looks at the total picture, there still may be many opportunities to “get a deal.” With the lowest interest rates in 30 years and the higher number of homes on the market, it’s becoming more of a buyer’s market again. ( I’ll be posting the map showing the different markets later this week.) Plus, summer is the time to play outside for Seattleites, so there are usually less buyers competing for homes.
(The absorption rate is the number of homes for sale in any given month divided by the actual number of homes sold that month.)
June, 2010 3360 homes for sale 503 homes sold 15 % odds of selling.
May, 2010 3209 homes for sale 492 (was 563) homes sold 15% (was 17.5%) odds of selling.*
June, 2009 3859 homes for sale 563 homes sold 15% odds of selling.
*Adjusted from previous month’s numbers to reflect the actual number of homes sold and closed. Each month some sales fall apart and don’t close. A lower number of home sales may be reported at a later date to show the actual number of sales that did close.
_____________________________________________________________
June, 2009 Seattle-Eastside real estate market compared to June, 2010:
- Surprisingly, the average list price of pending homes (recently sold) went from $547,381 to $553,772.
- As of this past week, there were 14,235 King County homes (houses and condos) for sale.
- Is this the peak of the real estate market for the number of homes for sale this year?
- Home sales on Seattle’s Eastside: down 20%, which follows a much smaller drop of 7% in May.
- Number of homes for sale on Seattle’s Eastside: down 11%
Best odds of selling: Redmond, near Microsoft, and East Bellevue.
Worst odds of selling: Carnation and Redmond, from downtown to north and east, with 9% of the homes getting accepted offers.
Biggest increase in sales from last year: A very small 3% increase in East Bellevue and Redmond, near Microsoft, home sales.
Smallest increase in sales from last year: Same as above. This area had the only increase in Seattle-eastside home sales in June.
Decline in real estate sales from last year: There was a decline in 6 out of the 7 Seattle-eastside areas. Redmond and Carnation had the largest decline in home sales with a 43% decline in the number of homes sold. This area also had the largest decline in home sales last month.
The peak of homes for sale in 2008: July, 4370 homes.
The peak of homes for sale in 2009: June, 3859 homes.
The number of eastside homes for sale at the start of 2010: 2584 homes
The number of eastside homes for sale now: 3360 homes.
Rate of home sales that failed and did not close: 13%
The sun is out now in Seattle (although a little late today), which tends to slow Seattle Eastside real estate sales. The number of home sales could remain on the lower side in the near future for two reasons. One is the slow down after the tax credit rush and the sunny weather and summer vacations. People in Seattle like to play outside in the sun.
The slower home sales is ironic, given the high number of homes for sale, which means lots of choices and the screamingly low interest rates. I believe there are some great deals out there for buyers right now.
For a picture of King County sales, check out The Seattle Times.
Bellevue's Botanical Garden is Just Beautiful This Time of Year
It’s funny how we can take local places for granted. We always think something is so close by, it’s easy to go anytime. But sometimes time gets the best of us.
I hadn’t been to The Bellevue Botanical Garden for several years. Over the 4th of July, I had a friend visiting from Connecticut, so off we went to the Garden. It was the perfect time to stop by to enjoy the flowers. So many of the flowers are in bloom right now.
Bellevue Botanical Garden
Hydrangeas in Bellevue Botanical Garden
A quiet spot in The Bellevue Botanical Garden
Most people don’t think about taking a break and finding a quiet spot in the garden, but this man was enjoying the peace and quiet.
Check the Bellevue Botanical Garden out this summer. It’s a beautiful place.
Interest Rates Are The Lowest in the Last 30 Years
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.
Have We Reached This Year's Peak in King County Homes For Sale?
Did we hit the peak a couple of weeks ago when the number of homes for sale in King County, WA hit 14,198?
Number of King County, WA Homes for Sale, 7-06-10
There are a lot of homes for sale in King County Washington right now, although the number may be beginning to drop if this year follows typical patterns. The peak may have been the week of June 28th. In 2009, King County reached the peak of inventory, homes for sale at the end of July. Typically, there are more homes for sale during the summer and this year follows that typical pattern.
Since the beginning of the year, there have only been 6 weeks when the number of homes for sale dropped. This past week, 277 homes came off the market, which is one of the biggest declines in homes for sale. The next several weeks will determine whether we have reached the peak in the number of King County homes for sale as rarely does the peak not fall during the summer months.
What’s happening in your area? Is the inventory of homes for sale at a high point in the year?
Got Lint? Clean Your Dryer Vent
Lint From A Dryer Vent
There were big gray clumps of lint and this is only 1/4 of what was removed from the clothes dryer vent! Ironic, since the dryer vent had recently been cleaned out in a do-it-yourself project, which apparently had not worked. The duct work is a fairly long line, which makes it even more difficult for a do-it-yourself job.
Bel-Red Energy Solutions* cleaned out my dryer vent which was loaded with lint, even though I thought it had been cleaned out weeks before. Dryers are among the major causes of house fires.
Check the vent on the outside your home to see if the air flow is moving well. Do this on a regular basis. You’ll know if the air flow becomes weak, which is a good indication of blockage in the vent line. Here are some other warning signs from About.com:
- Clothes take longer and longer to dry;
- Clothes don’t fully dry;
- Clothes are hotter than normal at the end of the drying cycle;
- The outside of dryer gets very hot;
- The outside exhaust vent flapper does not open very much indicating low exhaust velocity;
- Laundry room becomes more humid than it is usually;
- Burnt smell is evident in the laundry room.
So mark your calendar. Have your dryer vent cleaned regularly to eliminate a fire hazard. Do-it yourself systems may work for some duct lines, particularly if the dryer duct line is short. I was impressed, however, by the motor Bel-Red brought along to power the hose that cleaned out the vents. That puppy really sucked the lint out of the vent.
Here are some more tips on dryer vent cleaning, maintenance and safety.
And the silver lining in all this? A dryer vent that works more efficiently will save you money on your monthly utility bill.
*As always, choose your contractor wisely. Check out any contractor you hire. Make sure they are licensed, bonded, and insured. Obtain recommendations from other clients and check the Better Business Bureau, Angie’s List and other resources.
Which Homes are Selling on Seattle's Eastside?
Seattle-eastside Real Estate Sales 2010-1st quarter
The eastside sales here include South Bellevue and Issaquah all the way up to the Snohomish County line and from Lake Washington out to North Bend, Duvall, and Carnation.
If you look at the real estate statistics above:
Almost half of these Seattle-eastside real estate sales were below $500,000.
Over 80% of the eastside home sales were below $750,000.
Twenty-seven home sales were below $250,000.
Thirty-six home sales out of the 1119 were priced above $1,500,000.
Only 2% of the sales were above $2,000,000. Out of 1119 home sales, only 18 were priced above this $2,000,000 mark.
24% of eastside sales were short sales or bank owned properties, contrary to what many think. Most of the homes were sold by the actual home owner.
The sweet spot in Seattle-eastside real estate is between $250-500,000, with many of the homes priced between $350-500,000. Pre-2008, the sweet spot was the $500-750,000 price point.
Are Some Home Buyers More Demanding in Today's Real Estate Market?
Demanding home buyers? The New York Times had an article about home buyers being more demanding. I’ve seen it in action on Seattle’s eastside.
In recent home sales, not only do the buyers want a good price for the home, which is expected the way the real estate market has been, but some home buyers don’t want to buy a home unless the systems are all new or newer. Buyers have asked for a new furnace when the furnace worked fine and money to cover a future roof replacement that would not be happening in a condo complex for at least five years. Buyers are asking for replacements for systems that are older, but still working.
Are you seeing the same thing happen with some home buyers?
Congratulations to Seattle-Eastside Top Schools in the Nation
Seattle-eastside schools are some of the tops in the nation. US News recently published its top high schools in the nation and many eastside schools made the list. US News rated Bellevue’s International School as no. 10 in the country while highlighting Skyline in Sammamish, Woodinville High, Redmond High and others. The International Community School in Kirkland was no.29 on the US News list.
This week, it’s all 5 Bellevue high schools in the top 100 Newsweek list. Interlake took the highest spot of the 5 at no. 13. The Seattle Times had an article with information as to how the list is compiled.
Bellevue, Washington-Interlake High School
Congratulations to all these great Seattle-eastside schools.
"Green" is Back on the Seattle-Eastside's Real Estate Map, May, 2010
Home Sales Activity for King and Snohomish Counties, May, 2010
During May “green” crept back into a number of Seattle areas. One large area on the eastside, Woodinville, Bothell, Kenmore, Duvall, and north Kirkland was “green,” back as a buyer’s market.
April was the first month in a very long time in which there was no ” green,” no buyers’ markets in almost all the Seattle-eastside areas. In April, the Seattle area real estate market was the strongest in years. This is most likely a direct result of the 2010 tax credit. Both buyers and sellers were rushing to buy and sell before the expiration of the credit.
May represented a lull in the Seattle real estate market. Was this a temporary lull or our new normal? The next several months will be good indicators, although summer tends to be a slower time every year in Seattle real estate. Home buyers and sellers are like everyone else. Seattleites play outside in summer. Of course, that’s providing the sun ever comes out this year!
The good real estate news is there are still great homes and condos out there to buy and interest rates are at historic lows. The loss of the tax credit may not make much of a difference when calculating the savings in monthly payments over time.
Interest Rates 6-2010
It may be the fall before we can determine the true pace of Seattle real estate. I’ll keep you posted.
- King Snohomish Counties Real Estate Market 4-30-10
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.
Yellow means a balanced market between buyers and sellers.
Green means it’s a buyers’ market.
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.
What Were The Odds of Selling Your Seattle-Eastside Condo in May, 2010?
Seattle-Eastside Condo Sales, May 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.)
May, 2010 1425 condos for sale 125 condos sold 13% odds of selling.
April, 2010 1437 condos for sale 281 (was 316) condos sold 19.5%(was 22%) odds of selling.*
April, 2009 1441 condos for sale 145 condos sold, 10% 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.
Are we back to what may be normal in Seattle-eastside condo sales or is this the lull after the “storm of buyers” we had before April 30th? The odds of selling Seattle-eastside condos before April 30th was the strongest sales seen in years. With the 2010 tax credit behind us, we should continue to see people who need to make a move out there buying or selling a condo. We may see a lull in Seattle area condo sales. But I expect condo sales to get back to business as usual in the near future, once buyers get used to the tax credit having gone away.
