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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.
2012 Was A Great Year for Condo Sales on Seattle’s Eastside
Will there be any condos available to buy on Seattle's eastside in 2013? I asked this question last month. We won't have the statistics for January until the end up the month, but there were just a few for sale, and I mean just a few, in December. There were fewer than 300 condos for sale! I expect January numbers to be pretty low, too.
Condo sales are definitely out of the slump of 2008-2011. Prices are now starting to go up more condos are selling with less on the market. In 2008, the average number of condo sales per month was 168 sales. This year, there were 205 condos that sold on average each month.
In 2012, over 2300 condos sold on Seattle's eastside. The vast majority, over 1700, were priced under $350,000. At the opposite end of the spectrum, 4 condos sold for over $3,000,000. Median price jumped 6% for the year, while the number of condos for sale plummeted by 64%! It's always better to have the number of condos for sale plummet and prices to increase. It's much better than the other way around.
The past few years Seattle's eastside real estate has not followed the yearly trends we used to experience. Traditionally, there were booming spring sales, slow summers and a slight uptick in the fall. The busiest month for condo sales last year was in October, when 260 condos sold. The smallest number of condos that sold was in December, the month with the fewest condos for sale. There was consistent sales activity each month of 2012, while the number of condos for sale dropped drastically.
So will there be any condos for sale in 2013? Stay tuned to next month's update! Given the fact there are so few condos for sale, if you plan to make a move this year, now would be the time. With the competition at an almost all time low, the chance of selling your condo increases dramatically.
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.
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.
Will There Be Any Condos to Buy on Seattle’s Eastside in 2013?
Will there be any condos available to buy on Seattle's eastside in 2013? If we look at the chart, it sure looks like the number of available condos could disappear! Right now, if no more condos were to come on the market, it would take less than 2 months to sell those currently available. We really expect condos to be on the market next year, but it's clear we'll start out with little for sale.
The number of condos for sale in Bellevue, Kirkland, Issaquah, Redmond, Sammamish and other eastside cities has been cut in half since March of this year. That's a huge drop in a short amount of time.
Not as many condos sold this past month when compared to other months of this year. However, because the number of condos for sale is so small, 56% of the condos on the market sold last month.
Median pricing has increased from last year by $20,000 to $242,000.
We do expect the number of condos for sale to stay low in 2013 as many are still hoping to recover some of the value of their condos before making a move.
Stay tuned to the first of the year, which is just around the corner. We'll do a wrapup of this year's condo sales on Seattle's eastside.
Have a great New Year!
Many Homes on Seattle’s Eastside Are Selling For Over Full Price!
In the third quarter of 2012, almost 30% of the homes that sold in the cities of Bellevue, Redmond, Kirkland, Sammamish, Woodinville, Issaquah sold for over full price! The demand by buyers for homes and the lack of inventory is creating this huge uptick in competition for a home. When more buyers are competing for the same house, the offers often have to be for more than full price to stand out from the competition. Many homes are now getting multiple offers and many, almost a third, are now selling for more than the asking price.
We've recently sold several listings in which the selling price was over $20,000 more than the asking price! In one instance, the home had come on the market only hours before. The buyers didn't want to take the risk that another offer would be written before the seller had time to respond, so they offered over full price. Another home sold within 48 hours. Three buyers made offers for that home.
As you can see in the above chart, the homes that sell for more than full price, sell for about 3% above the asking price, with the range from just a hair over asking price all the way to 22.5% above the asking price!
Twenty-one percent of the homes sold for full price. This means 51% of the homes on the eastside sold for full price or more!
The homes that sold above full price only lasted on the market, on average,16 days. Homes that sold for full price were on the market for about a month.
But what about the other 49%? (Not to be confused with the 47% that was talked about in the election)
Why did half the homes sell for less than full price if the market is so hot? More than likely, one of these reasons was the cause:
- Location
- Pricing
- Condition
- Marketing
- Competition
You can't change the location or the fact that there is competition for a particular home. But when selling a home, you need to maximize your buyer attraction by pricing your home well, having it in stellar condition, and presenting it well to the buyers through fabulous marketing.
If you have questions about how to have your home be one of the 51% that sells for full price or more, feel free to contact us!
Should You Put Your Home on the Market on Seattle’s Eastside During the Holidays?
Yes, yes, yes!
You should put your Eastside-King County house on the market now and I'll tell you why:
First, here are the "market" reasons:
We have one of the lowest number of homes for sale and the highest number of sales in the last 15 years!
In October, the last month in which we have statistics, there were 1,821 homes for sale, which was 45% less than October, 2011! There were 67% fewer homes for sale than in 2008!
October had the most Eastside pending sales (1,202) of any October in the last 15 years! The average number of October sales for the has been 867 home sales, which means this October was 39% higher than the 15 year average!
With these high sales numbers, buyer demand is unusually strong for this time of year.
Emotional/personal reasons:
There are a lot of buyers out there who are jumping on homes to buy the minute they hit the market. We know because that just happened for one of our sellers. The home was gone in a matter of hours.
Because most people don't think it's a good time to put your home on the market, it's exactly the right time to do it. Most sellers will wait until after the first of the year, but there's less competition during the holidays.
Buyers are worried they won't find a good home if they wait too long. Buyers are out there and making offers to buy homes.
Homes are warm and inviting during the holidays. This is the time of year when people feel like "nesting" at home. A cozy home only supports the feeling. The holidays bring rise to all kinds of homey feelings.
Many homes can actually show better during the holidays. Homes are nicely decorated, making the home feel more warm, colorful, and personal.
If you're planning to sell your home in the next 6 months, rethink your plan and consider going on the market during the holidays. Happy Holidays! (And it that doesn't work, then get on the market early in the year!)
Are Distressed Sales a Big Part of the Real Estate Market on Seattle’s Eastside?
Not only is the Seattle Eastside Real Estate market on a roll, the number of distressed sales (bank owned and short sales) has declined dramatically. In the 3rd quarter, only 18% of the homes sold on the eastside were distressed sales. Seattle and the rest of King County also had numbers that were on the lower side when compared to previous quarters.
Actually, it would be great if more distressed homes came on the market. We need more homes to sell. King County and, subsequently, the eastside are at a record low number of homes for sale. Because of this lack of inventory, distressed sales are needed on the market and, unlike previous years, would not have a detrimental affect on home prices. At this point, it would be a good thing for the market by offering buyers more choices.
So bring those homes for sale on the market. Bring them on!
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.
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.
Did Condo Prices Drop on Seattle’s Eastside in August, 2012?
First, a word about condo prices on Seattle's eastside:
Even though the news media said condo prices were down in King County, they appear to be holding steady in the Seattle's eastside cities of Bellevue, Redmond, Kirkland, etc, when compared to August 2011 pricing. This is good news for condo sellers who have gotten beaten up by pricing in the last few years. With the low supply of condos for sale, prices are no longer declining, and, in fact, they may begin rising. In June, July, and August, prices on the eastside did increase, which brought us back to the pricing in the middle of last year. Unfortunately, prices did drop last fall through the early spring of this year, but we have now caught up to the prices we had in mid-2011. It appears that market pricing is holding steady now and has increased in the last few months.
Now back to the number of sales:
Condo sales numbers are actually not much higher than August, 2011 when 194 condos sold. This year, 201 condos sold in August. Because there's about half the number of condos for sale this year than in 2011, the percentage of those that sold, the absorption rate, skyrocketed. Last year, 19% of the condos sold and this year, 43% sold.
Time on the market has also dropped to an average of 68 days to sell vs.116 days in August of 2011.
So what does this all mean if you are thinking of selling or have your condo on the market?
If your condo takes a long time to sell, then it is either overpriced or is not marketed well. Make sure your condo has great online photos to start. Staging can also be a big plus. Good pricing and great photos are the two most critical marketing pieces to getting your condo sold. Remember this is how buyers and other agents "see" your home first, so the pricing and online marketing are crucial to getting buyers through the door to actually see your condo and make an offer to buy it.
What does this all mean if you are a condo buyer?
With the pattern of price increases, this means we're past the bottom of the market pricing. This may be the time to make a purchase. With the short supply, pricing could continue to increase. Remember, too, that interest rates are still incredibly low. Don't forget to check the financial viablity of an condo association you're thinking of buying into. In a blog post I wrote a few months ago, I listed some of the important things to look for when checking condos out. The post looks at the issue from the seller's point of view, but these issues should be important to any buyer. Fortunately for the buyer, the law requires a seller to provide the answers in the form of a resale certificate which is reviewed as one of the conditions of an offer.
If you have any questions about the condo market, please feel free to contact us.
