Was There Any "Good" in November’s Real Estate News on Seattle’s Eastside?

by The Beaupain Team

How Many Homes Sold on Seattle's Eastside in November, 2011?

If you read the news about Seattle real estate, it could make you crazy! It’s hard to determine what’s true and what is hype. There’s some tough news that dominates and then there is some news that is actually good. You know how it is, bad news always travels faster than good news, no matter what the topic. Our real estate news is a mixed bag, but it’s good to know it’s not all bad news. So let’s deal with the “bad” news first, since that seems to be most people’s hot button. And, by the way, if you read beyond the headlines, it may not be as bad as it seems.

True, our prices are down. That’s the elephant in the room. The “king” of the bad news. There is no getting around it. But if you look at the pricing issue more closely, it’s not as dire as it seems. Take out the distressed sales and prices for individual home sellers are down, but not as much.

• Bank-owned houses accounted for 20 percent of all King County sales in November, up from 14 percent a year earlier. Those houses sold for a median price of $177,000, down 18 percent from $216,000 in November 2010.

• The median price of short-sales houses dropped 17 percent, from $305,000 to $260,000.

• But other, “nondistressed” sales saw a much smaller price decline — 2.5 percent, from $399,000 to $389,000.*

Prices are down, but depending on the area, not as badly as one would think. The eastside is one of the areas where it is not as bad because people are still moving here for jobs and buying homes. If you look at the chart above, over 400 homes have sold on Seattle’s eastside each month this year. This November saw higher sales than last November.

The good news for Seattle-eastside real estate:

24% fewer homes were on the market in November this year than in 2010.
The time it takes to sell a home went from 106 days last November to 60 days this November.
Sales prices on average were just 4% below the seller’s original asking price this year, while last year they averaged 7% below the asking price.
Twenty-nine percent of the homes for sale this past November received offers and sold, while only 19% received offers in 2010
There’s no getting around that, but with less homes on the market, it spurs the competition among buyers for the best homes.
Pricing is becoming more affordable for a new set of buyers who are coming to the market for the first time.

Truthfully, the actual number of homes sold did not change all that much. Last year 435 homes sold. This year 458 sold. The difference? There was much more competition last year because there were 342 more homes on the market.

So remember, look at all the facts, not just the headlines when talking about real estate. Review the data that applies to your specific neighborhood to make a decision about the market.

What’s happening in your neighborhood? Is there any good news mixed in with all the negativity about the real estate market?

*The numbers are a result of the real estate sales activity that happened that particular month only. In order to see a trend, it is important to look at a number of months together. One month is only indicative of that particular month’s sales.

For Buyers • For Sellers • King County Real Estate • King County, WA • Make More Money Selling Your Home • Market Statistics • Real Estate • Redmond • Windermere Real Estate • December 1, 2011

You Snooze, You Lose, in This Seattle Eastside Real Estate Market

by The Beaupain Team

Brooks and I just sold a home in Redmond which had multiple offers. A contract was in hand, when the very next day I received phone calls from both an agent and a prospective buyer who wanted to see the home. They were a day late. It was gone. It was sold.

Here on the eastside, the market is doing well for the good homes, but not for all homes. These are the homes that are the best of the competition in terms of price, condition, style, floor plan and location.

One reason why the good homes are selling with multiple offers:

Less than 9000 properties are for sale in King County, for the first time in years. Supply is dwindling fast. If you compare the number of homes for sale with this time last year, 3000 fewer homes are on the market. As the year heads to a close, more sellers will take their homes off the market.

I expect to see December and January be good markets for sellers because of the decrease in competition. Quality homes will go fast, and possibly with multiple offers.

Does this mean it’s a bad market for buyers? No, there are still a lot of good homes for sale. Plus, it’s the most affordable market we’ve had in the Seattle area 17 years. With the lower interest rates, a mortgage is starting to rival rental costs.

So if you snooze, you can lose. Do you homework. Determine what’s most important to you. Is it the location, is it the good floor plan or a combination of many factors? Know the prices of homes in the area. Learn what’s selling and for what price. Know your wants and needs, study the market by visiting homes, and learn what sells well in the area.

If you do all these things. You won’t snooze and lose. You’ll know which homes work best for you and which are the best values. You can then jump in and buy a good home and not lose.

Bellevue, WA • Financing • For Sellers • Issaquah, WA • King County, WA • Market Statistics • Real Estate • Redmond • Sammamish, WA • Seattle real estate • Woodinville, WA • November 17, 2011

Which Eastside City had the Fastest Selling Homes In October, 2011?

by The Beaupain Team

Homes in East Bellevue and Redmond near Microsoft sold the fastest on Seattle’s eastside in October. Homes sold in under 2 months, at 59 days. Market time for the other eastside cities, ranged from 99-117 days or just shy of 4 months. This is a reasonable market time as it shows a more of a balanced market between buyers and sellers. It’s actually a normal market and is better for “both sides of the table.”

The odds of selling a home in the Redmond and East Bellevue areas stood at 30%, which also was the strongest absorption rate to be found on the eastside.* Chances of selling ranged from 19-26% in the other eastside cities.

The Redmond and East Bellevue area near Microsoft comes out on top for market time and a higher absorption rate because of more affordable housing, good jobs, an easier commute and good schools. With the main Microsoft campus in Redmond right on the Bellevue line, there are lots of jobs right there. In addition, there’s easier freeway and bus access to Seattle than in the outlying suburbs.

The higher price point in West Bellevue means fewer buyers can afford to live there. Affordability issues increase the market time. Longer market time here is a function of pricing, not desirability. West Bellevue is considered to be one of the best locations on the eastside.

Two of the areas had an increase in the median pricing, Redmond and East Bellevue and Redmond and Education Hill. Changes in median pricing, however, need to be looked at over a period of months since the median price for this month reflects the sales for this month only.

Why is market time important? It’s one indication of the desirability and affordability of an area. Both are key to future growth and appreciation. People like to live in convenient areas with good schools and affordable housing.

The cities below are grouped together to follow our MLS areas (multiple listing service) and shows how our statistical information is reported. How did your city do this past month?

Which Seattle-eastside city had the fastest selling homes in October, 2011?

1. Redmond/East Bellevue

The odds of selling a home were 30%.*

Median sales price increased (y-o-y)** to $435,000 from $427,000.

193 homes were for sale

A total of 58 homes sold.

Days on the market: 56

2. Kirkland

The odds of selling a home were 26%.

Median price decreased from $592,000 to $501,000.

234 homes were for sale.

A total of 60 homes sold.

Days on Market: 99

3. Redmond/Education Hill/ Carnation

The odds of selling a home were 19%

Median pricing increased from $541,000 to $580,000.

321 homes were for sale.

A total of 62 homes sold.

Days on Market: 100

4.Woodinville/Bothell/Kenmore/Duvall/North Kirkland

The odds of selling a home were 22%.

Median price was down from $377,000 to $370,000.

540 homes were for sale.

A total of 117 homes sold.

Days on Market: 101

5. South Bellevue/Issaquah

The odds of selling a home were 24%.

Median price decreased from $580,000 to $500,000.

338 homes were for sale.

A total of 81 homes sold.

Days on market: 104

6. The plateau: Sammamish, Issaquah, North Bend, and Fall City

The odds of selling a home were 23%.

Median sales price decreased from $500,000 to $460,000.

There were 650 homes for sale.

A total of 158 homes sold.

Days on the market: 108

7. West Bellevue

The odds of selling a home were 22.5%.

Median pricing decreased from $985,000 to $878,000.

128 homes were for sale.

A total of 31 homes sold.

Days on Market: 117

If you’d like more specific information about your neighborhood or home, feel free to contact either Brooks or me.

*(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%)

** (y-o-y) median pricing is comparing year over year numbers.

Eastside Real Estate • For Buyers • For Sellers • King County Real Estate • Market Statistics • Real Estate • Seattle real estate • November 15, 2011

Was There Really a Decline In Seattle Eastside Real Estate Pricing in October, 2011?

by The Beaupain Team

Number of Real estate sales on Seattle's eastside in 10/11

Seattle Eastside Real Estate Sales-October, 2011

Yes, Virginia, there was a decline in median pricing on Seattle’s eastside in October. The Seattle media got everyone a little nervous about real estate when it stated there had been a 15% y-o-y price drop in King County real estate prices from October of 2010 to 2011. I talked with several clients who were speaking doom and gloom about the eastside real estate market based on the news stories. I suggested they look at the true numbers for the eastside, not the entire county. The article discussed all of King County, which includes areas that are not doing as well as the eastside. Seattle and the eastside cities, such as Bellevue, Kirkland, and Redmond, are the shining stars of King County real estate. If you look near the bottom of the article, it states the decline in eastside real estate prices measured in the single digits, not 15%.

The decline on the eastside depends on what you were looking at when comparing the numbers. Median sales pricing declined by 9% from last year, but the average sold prices increased from $602.000 to $619,000. It’s more of a mixed bag, although no home owner likes to see any sort of a decline.

Why the decline in median sales pricing? Here are some possible reasons:

Jumbo loan rates have gone up, limiting the number of buyers who can buy at the higher end of the market.
Distressed sales take up a large portion of the home sales all over the county. Distressed sales, short sales and foreclosures, usually sell for less than market value, thus causing the median pricing to drop.
Lastly, the numbers you see here are a result of the real estate sales activity that happened that particular month only. In order to see a trend, it is important to look at a number of months together. One month is only indicative of that particular month’s sales.

Remember real estate is hyperlocal and North King and South King County are different real estate markets than Seattle’s eastside. In one of my next posts, I’ll look at the eastside real estate market even more closely and show the hottest and coolest selling areas.

Now that we have that issue of the decline in median pricing examined more closely, let’s take a look at what happened with eastside real estate in October. There were 24% fewer homes on the market this October than last and 22% more homes sold than in 2010. There were also 8% fewer homes on the market than in September of this year. Sales increased by 22% from last year and by 11% from September of this year.

Most home sold within 97 days and for about 92% of the original asking price. Sellers had a 23% chance of getting their homes sold last month. These are strong numbers, much stronger than October of 2010.

I’ll be watching the sales trend over the next couple of months. I expect to see fewer homes on the market and fewer sales as we approach the holidays. But will median pricing decline? What do you think?

Eastside Real Estate • For Buyers • For Sellers • King County, WA • Market Statistics • Real Estate • Seattle real estate • Windermere Real Estate • November 8, 2011

Is Now a Good time to Sell Your Seattle Eastside Home?

by The Beaupain Team

Is this a good time to sell your Seattle eastside home? If you’re a seller on Seattle’s eastside, the numbers are on your side. This is the second week in a row with less than 10,000 homes on the market in King County, a first for this year! The competition has pulled up the “for sale” sign, is battening down the hatches for the winter and planning for the holidays .

So plan your Thanksgiving, Christmas and New Year’s holidays. Don’t give the holidays up and don’t give up the idea of selling your home now if that’s what you want to do. With fewer homes on the market, your competition for buyers is far less. Plus, the buyers who are out during the holiday season are buyers who are serious about buying a home. They don’t have time to waste. They’re not casually looking for a home. They’re in a buying mode.

: How Low Can The Number Of King County Homes For Sale Go?

Eastside Real Estate • For Buyers • For Sellers • King County Real Estate • Market Statistics • Real Estate • November 4, 2011

Were there a lot of Distressed Real Estate Sales on the Eastside?

by The Beaupain Team

My last post focused on distressed sales in the counties around Seattle, a huge area. This post focuses on the eastside cities across Lake Washington from Seattle.

The hardest hit area for distressed property sales on Seattle’s eastside is what we Realtors call area 600 (see bottom of the chart above) which encompasses north Kirkland, Juanita, Duvall, Woodinville, Bothell, and Kenmore. Although all of these communities are fairly close to the eastside employment centers, the commute can be longer for many people. Parts of Woodinville and Duvall are still fairly rural in nature. Rural areas around Seattle have been hit harder with the decline in the real estate market. The higher number of distressed sales in these areas fits this model. More people want to live closer to work these days.

The area with the fewest number of distressed home sales was Mercer Island (area 510). Mercer Island is also one of the more expensive eastside cities. Situated between the eastside communities and downtown Seattle, it’s a desirable place to live. It’s a bedroom community located near the top economic centers with top notch schools and an easy commute to Seattle and the eastside.

Kirkland (area 560) is a very desirable location because it has good highway access, is close to jobs, and has a good school system. But the city has the second highest rate of distressed sales, which is surprising. The community encompasses a variety of housing styles and prices.from multi-million dollar waterfront homes to starter homes in the $200,000+ range.

The other eastside cities of Bellevue, Sammamish, Issaquah, and the closer in neighborhoods of Redmond, near Microsoft, had distressed sales ranging from 16-19% of the total real estate sales in the third quarter of 2011.

The theme here as in the last post is close-in locations near jobs is the better place to be. The eastside cities that fit this bill had the least amount of distressed sales.

Eastside Real Estate • For Buyers • For Sellers • King County, WA • Real Estate • November 4, 2011

How Many Seattle Area Real Estate Sales Were Distressed Sales?

by The Beaupain Team

How much of the Seattle area real estate market is made up of distressed sales, sales in which the property is bank owned or a seller is required to obtain approval from the bank in order to sell?

Seattle Area Distressed Real Estate Sales

Total Number of Distressed Real Estate Sales in the Seattle Area

In the third quarter of 2011, Seattle and the eastside suburbs were holding their own in the distressed sale market, while Pierce and Snohomish Counties had the toughest time. There’s a huge difference in how each of the 4 counties surrounding Seattle were doing with respect to distressed home sales. Almost 50%, 47% to be exact, of the real estate sales in Snohomish County were distressed properties. Snohomish County is directly north of King County, which is where you’ll find Seattle. Snohomish County is home to a Boeing plant, shipping, biotech firms, and a navy base. Pierce County is home to Tacoma, with its huge waterfront devoted to shipping, and Fort Lewis, the army base.

Although each of the counties has an economic center, King County with Seattle and the eastside cities of Bellevue and Redmond is the true economic hub of the region. These areas are home to Boeing, Amazon, Microsoft, Costco, Starbucks and a host of other companies. Consequently, the Eastside and Seattle have the smallest number of distressed sales. More jobs and a good commute equal less distressed sales.

Built Green and Sustainable Living • Eastside Real Estate • Energy Star • Issaquah Real Estate • Issaquah, WA • Real Estate • October 20, 2011

Cool Green Living and Money Saving Tools at zHome in Issaquah

by The Beaupain Team

Last weekend my husband and I took an open house tour of zHome, a new green town home community in the Issaquah Highlands. zHome is the first carbon-neutral and zero energy multi-family complex in the US. The place was buzzing with activity. There were about 100 people on various tours. These are not your typical open house tours. The tours are quite informative.

The zHome team developers not only describe the energy saving features of the buildings, they talked about products that will help you go green, save energy and save money in your own home. You’ll leave there with a crash course in “green living” and more knowledgeable about how you can save some money in your own home.

zHome-Issaquah, WA

The goal of zHome community:

zHome is a revolutionary, 10-unit town home development that uses smart design and cutting edge technologies to radically reduce its environmental impacts. zHome will prove that homes that use zero net energy and 60% less water, emit net zero carbon emissions, have clean indoor air and use only low-toxicity materials are possible and scalable to mainstream home production.

Below are some of the materials and features used in the community:

zHome Solar Panels

Bamboo flooring

: zHome Eco Countertops

zHome FSC Certified Wood Beams

pervious concrete

rain garden

Besides the great materials and features above, I learned about materials and tools that any homeowner could use to go green and/or save money.Are you concerned with water leaks? Check out the Orion Water Meter. This handy little tool is a water leak detection device. Although the link is to a website from a particular utility district, there is information about the water meter.Would you like to save on your energy bill? (Who wouldn’t?) The “TED,” the The Energy Detective measures your energy usage, detects phantom loads, and where energy is wasted.

Solar panels in gray WA State? Apparently even when it’s cloudy, solar panels pick up some sun, something I did not know. I assume the gray days would make solar panels useless in our climate. I also did not know that the rain cleans the panels off on a regular basis, making them far more efficient than in some of the sunny, desert climates.

Through 2020, there still some government incentives available for energy production.

zHome tours are scheduled for the next two weekends. Happy touring!

Real Estate • Real Estate Marketing • October 18, 2011

Our Blog/Website has a New Look!

by The Beaupain Team

Brooks and I see ourselves as real estate advisors, not sales people. We spend a lot of my time consulting with our clients about how best to update and remodel their homes so they can get the best price when selling.

Updating and remodeling a home is a hot topic these days. This is why TV shows such as Extreme Makeover have been so successful. I hear from my niece, who works on reality TV shows in Los Angeles, there are make-over shows for all kinds of things.

The reality is lots of things in our lives besides our homes need an update, even if there isn’t a reality TV show about it. Sometimes we need a personal overhaul: new haircut, new clothes, new weight, new job, new hobbies, etc, etc. I’ve done the new haircut, lost weight, and purchased the new clothes over the last few years and I don’t plan to change jobs in the near future.

However, I needed internet professionals to advise me to update my website/blog. It was something on my “to-do” list, but I just hadn’t gotten around to doing it. What I needed was a professional to get me moving on this, much like our clients need some direction updating their homes. They need a real estate professional to encourage them through the process. I needed someone to give me the push to update the site and get this task off my “to-do” list.

The site is still a work in progress as we continue to add things. We hope you like the new “do,” the new look. We’ve even updated our photos!

The Old Look

The Old Photo

Thanks to Drew Meyers, the iron man of Virtual Results and the Geek Estate blog and special thanks to Brandon Matson of bizgarden for handling all the details and educating us on our new site.

Eastside Real Estate • For Buyers • For Sellers • Market Statistics • Real Estate • October 14, 2011

Seattle Eastside Condo Sales Keep Popping!

by The Beaupain Team

Seattle-Eastside Condo Sales through September, 2011

Seattle-eastside condo sales were still hot in September. Twenty-one percent of the condos for sale got offers for the third month in a row! There’s less for sale this month than in August and fewer condos actually sold, but the odds of selling were exactly the same. It’s exciting to see the sales numbers for the year keep zooming past last year’s sales. This year 70% more condos sold on the eastside than last year! This good news was coupled with 31% fewer condos on the market than in 2010.

There were 992 condos for sale in September, with 203 of them receiving offers. Average market time was 125 days vs. 151 days in September 2010.

What’s unique about this past month is only one eastside condo sale failed. Last month I reported 213 condo sales. Now it looks like only one sale failed and 212 of them stayed together! This presents a good, solid month of sales as typically up to 10% of the sales can fail.

Sales fail for many reasons. A condo may not pass inspection or an appraisal. The buyer may not get financing or the condo complex itself may not fit financing guidelines. This could be because there could be too many renters occupying units or there could be a pending lawsuit against the association. Situations such as this could affect the buyer’s ability to obtain a loan, even if the buyer is well qualified to buy. When obtaining financing for a condo, the condo and the association must also “qualify” in order for the loan to be approved.

How are condos selling in your area? Are you seeing problems with buyers obtaining financing?