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Real Estate Sales Continued to be Strong on Seattle's Eastside in July, 2011
Seattle Eastside Real Estate Sales Through July, 2011
The chart above speaks for itself. July real estate sales were going strong on Seattle’s eastside. More homes sold in July than in any month since May, 2010.
Will this surge in real estate sales continue? Since the news regarding the stock market from last week, it remains to be seen if August will hold up to the sales growth we’ve seen since December of last year.
The number of properties for sale in King County still remains low compared to the last few summers when King County had over 14,000 properties for sale. As of August 8th, there were 11,091 properties for sale in King County. Here on the eastside, there were 2863 available properties. If you compare the number of homes for sale on the Eastside this July to last July, there were 17% less homes and condos on the market this year.
In July there were 2863 homes for sale and 646 of these homes received offers and sold. The absorption rate, the number of homes that sold during a month compared to the number for sale, was 22%.
But what’s also important to note is 12% of the sales from June failed. I had reported 661 sales in June, but this month I see only 587 of them stayed together.
The bottom line is more homes are selling than previously, but it’s also hard to keep the sales together. Failed sales can be the result of poor inspections, trouble with the buyer’s financing, an appraisal that does not agree with the sales price or a buyer getting cold feet and backing out.
How is the real estate market doing in your area? Do you see similar trends?
How Strong Were June, 2011 Real Estate Sales on Seattle's Eastside?
Seattle-Eastside Real Estate Sales Through June, 2011
How strong were June, 2011 real estate sales on Seattle’s Eastside? This summer’s real estate market is going to stay stronger than what we usually see during a Seattle summer. Traditionally, the highest number of homes for sale during a year comes near the end of July. With this increased competition, it can make it more challenging to sell your home. Although the number of eastside homes for sale has increased each month, the increase is nothing like the numbers we’ve seen during June of the last few years.
This year, the number of homes for sale is increasing, but at a much slower pace than last year. In King County as a whole, there are 11,320 properties for sale. Last year at the end of July, there were 14,639 properties on the market. This translates to 33% fewer homes on the market in King County this year. On the eastside, there were 15% less homes for sale in June. Since there’s still a great selection of homes for sale, the smaller number of available homes increases the odds of a home selling.
In fact, we had multiple offers on two listings this week alone. I find we have a lot of showings on our listings, so buyers are definitely out there more than they usually are in the summer months.
The number of sales this past month dipped a little from the previous month, but only by 12 homes. In May, we saw the highest number of homes sell in a month so far this year. As a reminder, in April of last year, there’s a very high number of home sales. This was artificially high as buyers tried to “cash in” on the tax credit. This year, the sales numbers are not inflated by any other issue. Real estate sales are fueled by the amount of job hiring in the area and by buyers who are more willing to move on with their lives, literally.
In June 2011, there were 2880 homes for sale and 661 of these homes had offers. The absorption rate, the number of homes that sold during a month compared to the number for sale, was 23%. Almost one quarter of the Seattle eastside homes for sale sold in June.
How is the real estate market doing in your area? Is it as strong as what we’re seeing here or is a little slower.
Are You Looking For Good Contractors to Help You With Your Seattle-Eastside Home?
Are you looking for good people? Good people are hard to find. I‘ve got good people, good people who can help you take care of your home. Recently, my real estate networking group created a huge list of good contractors for almost anything and everything to do with a home.
As an example, do you have any of the following?
- got stumps to grind (not an ax), but stumps in your yard
- got an oil tank?
- got mold?
- got moles?
- Got pests? (The four legged critter kind)?
Do you need the following?
- A sewer scope?
- Septic system checked or pumped?
- dock permit?
- Well driller?
- Security system?
- Estate salesperson?
- garage salesperson?
- Granite installer?
- painter?
- roofer?
- Furnace technician?
- Garage door fixed?
- Concrete installer?
I have the person(s) for you. Having connections helps me, and you, a lot. Between my personal experience with a number of contractors and my connections to other Realtors and past clients who have great recommendations, I have the list of good people for you and your home!
Contact me if you’ve got a problem or need a service, I have good people for you! By the way, if you know good people, feel free to send them my way. I’m always happy to add to the list.
May Real Estate Sales Were Strong on Seattle's Eastside
Seattle Eastside Residential Real Estate Sales Through May, 2011
On Seattle’s eastside, there have been 6 straight months with an increase in the number of real estate sales. There’s clearly a trend here, although some people do not agree there’s a trend in Seattle real estate. The trend in sales is matched by the slower increase in the number of homes for sale. If you look at May last year, there were 3360 homes for sale on the eastside and this year there were only 2733 homes for sale.
The number of homes that sold in May, 2011 is close to the highest number of sales for last year, which happened in April. Last year sales were inflated by the tax credit. This year there’s no tax credit available. This year’s real estate sales are fueled by buyers who feel comfortable moving forward and purchasing homes because prices are down, they want and need to buy. Interestingly, when I speak with buyers at open houses they tell me they’re seeing some of the good homes moving rather quickly. The buyers are taking notice and buying those homes that are priced well.
In May 2011, there were 2733 homes for sale and 720 of these homes had offers. The absorption rate, the number of homes that sold during a month compared to the number for sale, was 26%. One-fourth of the Seattle eastside homes for sale sold in May.
How is the real estate market doing in your area?
The Positive Real Estate Market on Seattle's Eastside Continued in April, 2011
Seattle Eastside Real Estate Sales Through April, 2011
Seattle-eastside real estate is looking good! The trend continues to be the most positive in the last four years. This positive market means this a good, but very realistic market. Some homes are selling within a week, others take longer, and some do not sell. In reality, it’s a balanced market in which the homes that sell quickly do so because of price and/or condition.
The usual spring spike in the number of homes for sale has also not happened so far this year. Last year in April there almost 450 more homes for sale on Seattle’s eastside than this past April.
In April 2011, there were 2634 homes for sale and 654 had offers. The number 464 in the last column on the chart shows how many homes sold and closed in April. In order for these sales to close in April, the offers would been accepted in February or March with an April closing date.
The absorption rate, the number of homes that sold during a particular month when compared to the number for sale, was 25%. One-fourth of the Seattle eastside homes for sale sold in April.
Are you seeing less “for sale” signs in your neighborhood? What about “sold” signs?
How Many Real Estate Sales Were On Seattle's Eastside in March, 2011?
Seattle Eastside Real Estate Sales Through March 2011
I see a trend happening in eastside real estate. The Seattle Times was wondering if there was a trend being established in Seattle area real estate. It’s happening on the eastside. This trend started in December of last year. Since that time, the number of homes selling each month has increased. Home sales have almost doubled from December’s 351 sales to March’s 657 sales. That’s a huge increase, a 47% increase in real estate sales! It sure sounds like an upward trend to me.
Match this news with the fact that the number of eastside homes for sale has only increased by 150 homes since December and there’s a good real estate market on the eastside. Last year, there almost 440 more homes for sale in March.
In March 2011, there were 2540 homes for sale and 657 had offers. The number 452 in the last column on the chart shows how many homes sold and closed that month. In order for these sales to close in March, the offers would have happened in January or February.
So far this year, we haven’t seen the number of homes for sale jump up by much. But if many more homes come on the market, the upward trend in home sales could slow down. An increase in the number of homes for sale could have an impact on how quickly homes sell.
Are you seeing more sold signs in your neighborhood?
The Seattle-Eastside Real Estate Market Is Better Than You Think!
Number of Properties for Sale in King County
It’s simple. Mix one part law of supply and demand; one part the more positive economy; and one part more ready, willing, and able buyers. Mix with more realistic pricing that meets the market demand. You now have the well priced homes selling and the most positive real estate market the eastside has had since mid 2007.
The supply of King homes and condos, the number of those for sale, is shown above. This week, near the end of the first quarter of 2011, there are about 2000 less homes and condos for sale in King County than last year at this time. This means there are 16% less homes and condos for sale. That’s a big difference. It’s noticeable in a lot of neighborhoods. It’s noticeable to a lot of buyers.
The eastside statistics mirror those in the county. There are pockets on the eastside where home sales are popping, because there are only a few really great homes that come on the market. I’ve seen this happen in different price ranges and different cities all over the eastside, including Bellevue, Kirkland, and Sammamish.
Seattle Eastside Residential Real Estate Sales Through February 2011
Supply is key to the more positive eastside real estate market. With less supply out there and more homes selling (other than March and April of 2010, which was the result of the tax credit) than any other month in a few years, this is a stronger real estate market.
With less supply, it’s a faster paced market. It’s happening in many eastside neighborhoods, but not all. It’s happening with some homes, but not all. With less to choose from, the better valued homes are selling more quickly. There are some great homes that I’ve previewed or shown over the last month and I can almost tell which homes will be sold inside of a week or two. Almost everyday we see the number of pending sales outstrip the number of new listings coming on the market. And yes, there are homes still sitting on the market for a long time, are distressed sales or homes that don’t sell. Despite this, there’s a big difference in the eastside real estate market.
Now I know you’re going to say this is not what you’re reading in the media. Here’s the latest real estate article in The Seattle Times continuing with the same doom and gloom report about the real estate market. From the this article:
In the Seattle metropolitan area, which includes King, Snohomish and Pierce counties, prices are back where they were in September 2004, according to Case-Shiller.
Two things to consider when evaluating the above statement. The first is Case-Shiller lumps King County statistics in with Pierce and Snohomish Counties. King County has a far more positive economy than the other two counties. Seattle and Bellevue, the economic hubs of the region are both in King County. The number of distressed properties is much smaller in King County than elsewhere in the region.
The second thing to remember is Case-Shiller is reporting on the past few months, not what’s happening in the market today.
I agree with Case-Shiller regarding home values, although home values may not be quite as low as 2004 pricing in some areas. Prices are down and probably will stay at these levels for a while. I don’t anticipate prices going up any time soon.
But I do see a stronger market in many eastside neighborhoods. People are ready to move on, literally, and they’re tired of waiting. Buyers are ready to buy and more sellers are pricing their homes to meet the current market demand. All in all, right now the Seattle-eastside has the best real estate market it’s had since 2007. It’s not the old real estate market of the past, but it’s a good, realistic market.
There Are Some "Hot" Real Estate Markets Around Seattle
There are some hot real estate markets in the Seattle area. These “red” hot areas are shown below. The usual suspects of Queen Anne and Capital Hill experienced a hot market in February. The newest suspect, East Bellevue and Redmond near Microsoft, my neck of the Seattle real estate market, was also going strong. In that area, 35% of the available homes sold last month, the best odds on the eastside. It’s exciting to see, since it’s been years since we’ve had “red” or a seller’s market on the eastside.*
I keep hearing about homes selling quickly and with multiple offers in a variety of price ranges. Since most of the eastside is a balanced real estate market,** this only happens for the best homes. It happens for the “red” hot homes with hot prices and in beautiful condition. There are number of other homes that take a while to sell, often with price reductions before getting the offer.
Hotter King & Snohomish County real estate markets 2-28-11
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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.
What do the 3 digit 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.
Can you see from the map how the real estate was doing in your city did last month? If you’d like more specific information for your neighborhood, please feel free to contact me.
How Many Real Estate Sales were on Seattle's Eastside in February 2011?
Seattle Eastside Residential Real Estate Sales Through February, 2011
Despite what the media is reporting, February Seattle-eastside real estate sales were the strongest we’ve seen in a very long time. If you look all the way back to December, 2009, there were more real estate sales in February than any other month, except March and April of last year. More homes sold last March and April because of the tax credit. However, this February’s higher sales numbers had nothing to do with a tax credit, but everything to do with buyers being more ready and willing to buy a home. In February there were 2446 homes for sale and 565 homes sold.
The other good news is the number of homes for sale last month was still low when compared to the other months shown on the chart. Because of this, there was a higher percentage of homes selling, 23% in fact.
So far this year, real estate sales on the eastside of Seattle are trending upward. Because of the strong economic base found in such eastside cities as Bellevue, Redmond, Kirkland, and Issaquah, I believe this trend will continue, at least for the near future.
If the number of homes for sale jumps up, it could have an impact on how quickly homes will sell. If we stay with lower levels of inventory, it should help the homes on the market sell more quickly. But if we end up with numbers like we often do in the summer when we have had 14000+ homes in King County on the market, sales will slow down.
Are you seeing more real estate sales in your neighborhood?
Top 7 Reasons Real Estate Sales Fail to Close
I’m gearing up to do monthly statistics on how the real estate market is doing on Seattle’s eastside. Every month I report on how many homes have sold and I also mention how many real estate sales have failed. Contracts on homes close all the time, but there’s always a certain number each month that don’t close. There are many reasons why this can happen.
Here are 7 of the top reasons home sales fail to close:
Buyer rejects the seller’s disclosure form. The disclosure form, form 17, is a 5 page document delivered to the buyer no later than 3 days after a purchase and sale agreement (the contract) is mutually agreed upon by both parties. The buyer has 3 business days to review the form. The disclosure form covers many issues about the home, including defects, remodeling, permits, whether the home is on septic or sewer and hooked up to public water or on a well. If the buyer disapproves of anything in the form, the buyer has the right to terminate the purchase and sale agreement.
The inspection falls through. Inspections fall through because there’s something structurally wrong with the house. The structural problem can’t be fixed, the seller refuses to fix it or the buyer no longer wants to buy the home because of the problem. Sometimes the repairs requested can be remedied, but the buyer and seller don’t come to agreement on which repairs will be done or how to do the repairs. The buyer can also terminate a contract based on the inspection without giving a reason to the seller.
The buyer walks over neighborhood review. Some offers include a clause giving the buyer an opportunity to check out schools, crime, views, and other neighborhood issues in the 3 business days after an offer is signed. If the buyer finds something they don’t like about the neighborhood, they can terminate the agreement and walk away.
Good old fashioned buyer’s remorse. Buyers get cold feet and decide not to buy the home. Buyers have the right to serve the seller a termination notice, get their earnest money returned, and continue to look for a home without giving the seller a specific reason. This can happen only during specific times outlined in the contract. For example, the buyer can simply terminate the contract during a neighborhood review or the review of the disclosure form.
A low appraisal on the home. The home sells for $500,000, but the bank appraiser says the home is only worth $485,000. The seller doesn’t agree to the lower purchase price to the appraisal price, so the buyer can choose not to buy the home.
Running up a credit card bill. The buyer buys a new car before closing the sale on the new house, running up a credit card bill. Incurring more debt before closing can mean the buyer no longer qualifies for the loan.
Death of a buyer or seller. I recently heard of this happening in a sale on the eastside. It happened during one of my closings a few years ago. The seller passed away during the closing period. Luckily, the heirs saw the sale through. Heirs can contest a sale if it’s in process.
It sounds pretty daunting when you read this list, but the reality is most months only 1 or 2% of the home sales fail to close. Clearly, the majority of homes that sell go all the way to the closing table.
By the way, each state has different contracts with different clauses, so what happens in Washington State real estate contracts stays in Washington State. This post is not legal advice. If you have questions or concerns about real estate contracts, you should consult an attorney.
What are some of the other reasons home purchases fail to close? There are many more reasons out there. Do you know of some unique situations that caused real estate sales to fail?
