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How Do You Go From For Sale To Sold on Seattle’s Eastside?
Moving from "For Sale" to "Sold"
How do you get from “for sale” to “sold?” It’s the price! Even though the real estate market in Bellevue, Kirkland, Redmond and other eastside cities is red hot, the price is still critical to getting a “sold” sign posted on the “for sale’ sign in your front yard.
Almost half, 48%, of the homes for sale between September, 2011 and March, 2012 sold in 10 days or less! With these homes only on the market for fewer than 10 days, the homeowners and their Realtors did everything right. The homes had to be priced right, show well, have fabulous photos and great marketing or the homes would not have sold.
Seeing these incredible numbers should help blow several common misconceptions out of the water:
1. Should you leave negotiating room when you set the price for your home? NO. Some homeowners think they should leave bargaining room. This, however, will send that homeowner down a path toward a longer market time and a lower selling price. Look again at the top line of the first chart. Almost half the homes sold within 99% of asking price and in under 10 days. With sales prices coming in at 99% of the asking price, there was little bargaining in the final sales price.
2. What if you want to price your home high because you’re in no rush to sell? A homeowner who overprices a home will shoot themselves in the foot. Let’s say a buyer is out searching to buy a home and sees 5 homes. The buyer will compare each one’s price, location, and features. They don’t compare whether a seller is a rush to sell or has all the time in the world. The buyer won’t know that. The buyer will only know that when comparing the homes, the overpriced home will stand out. Most buyers don’t bother to make an offer because there are 4 other homes that are more attractive and priced right. There’s no need to waste time pursuing an overpriced home because, even though the supply is low, there are other homes on the market. If today’s market pricing doesn’t meet a homeowner’s needs, then don’t put the home on the market.
3. Were these homes underpriced, because they sold so quickly? No. In today’s real estate market, we’re dealing with very savvy buyers. They know the market and they know pricing. They know when they see a home that’s well priced and they’ll pay for it. The buyers don’t have time to waste. The good homes are going fast. Secondly, does anyone really think that half of the homes that sold in the last 6 months were underpriced? I don’t think so!
The other 52% of the homes took 149 days to sell and sold with an average of a 10% discount. If you look at the second chart, you can see for every 30 day period a home is on the market, the selling price drops. Homes that were on market for a long time were the homes in which sellers could bargain with the buyers, but it usually meant the price dropped. Buyers think a home is overpriced or there’s something wrong with it if the house is on the market for more than a month in this market.
If you decide to sell your home, you’ll need to decide in which half of the market you’d like to be. Do you want to be in the market in which your home could sell quickly and for a good price or do you want to test the waters, take your time, and more than likely sell for less? It’s your decision.
April Showers Brought Lots of Real Estate Sales to Seattle’s Eastside
Seattle Eastside Real Estate Sales Through April, 2012
The Seattle eastside real estate market is still hot! Real estate sales’ numbers on Seattle’s Eastside are terrific. April sales numbers were similar to March when 46% of the available homes sold. In April, because there were about 100 more homes for sale, the odds of selling dropped slightly to 42% sold. Home sellers in Bellevue, Kirkland, Redmond and other eastside cities have the best odds of selling a home since 2007! Much of this is due to the positive economy here in the Seattle area.
New listings are coming on the market and selling quickly. If no other homes were to come on the market, it would only take 1.4 months to sell all of the eastside homes. Demand is high, helping the good homes that are well priced, show well, have fabulous photos, and great marketing to fall into the 42% of homes that sold last month. Some homes have sold for over full price with multiple offers.
Remember, 58% of the homes did not sell and, more than likely, are missing one of the necessary elements necessary for a quick, well priced sale. The homes may need to have a better price tag or photos, staging or marketing. It’s still competitive and buyers are savvy enough to identify those homes that are well priced. Even though there aren’t a lot of homes for sale, there’s enough new listings coming on the market each month to guarantee a fresh supply of available homes. With interest rates remaining low, some buyers still take time to make a buying decision.
We sold several homes last month in a matter of days, with multiple offers and for over full price. We worked with all of the sellers for a while before their homes actually came on the market. One seller contacted us last summer so she would have the time to do everything needed to get ready to sell without creating additional stress. Most of our sellers contact us a few months before going on the market. It gives us enough time to get contractors in, if needed, to paint, re-carpet or refresh the landscaping.
How did this past April compare to April of 2011? Truly, there’s not much of a comparison between this year and last, but here it is:
- 42% of the available homes sold this past April, 23% sold in April, 2011.
- Homes sold in 101 days, which is down from 105 days in April, 2011.
- Median pricing was down to $485,000 from $492,000.
- Homes sold within 94% of the original asking price. Last year homes sold within 91% of the asking price.
- 23% more homes sold this year.
So if you plan to land in the 42% of homes that sell, not the 58% that did not, start the process by contacting your Realtor well ahead of time.
A Stampede for Homes in Bellevue, Kirkland and other Eastside Cities in March
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The chart tells it all! Look at the huge, and I mean huge, jump in sales over the past few months, a 56% increase in sales since January. Forty-six percent of the available homes sold in March. There’s a big stampede out there for homes in Bellevue, Kirkland, Redmond and other eastside cities. This stampede means there’s often more than one buyer for a home, causing multiple offer situations.
We’re starting to see a pattern with eastside real estate. Lots of homes are selling and homes are selling quickly because there’s such a huge demand. Almost 900 homes were added to the market in March, but with 771 sales, the number of homes for sale has stayed almost the same. There was a small drop of 52 homes for sale from February to March.
How did this past March compare to March of 2011?
- 46% of the available homes sold this past March. 23% sold in March, 2011.
- Homes sold in 109 days, which is down from 137 days in March, 2011.
- Median pricing was down to $470,000 from $500,000.
- Homes sold within 93% of the original asking price. Last year homes sold within 91% of the asking price.
- 24% more homes sold this year.
I expect to see this real estate data change as this fast paced market continues. Expect to see median home prices stay more level, market time to decline, and homes selling closer to the asking prices.
- The Seattle eastside market is not following the usual trends we see this time of year. Usually market trends follow more of what the chart shows for last year. The number of homes for sale usually increases each month until in peaks sometime in the summer. As the year comes to an end, the number of homes for sale usually drops. We’re not seeing this at all this year. This year, we see fewer homes for sale each month. The big news, though, is still in the number of homes that sell each month.
Not all homes sell in a heartbeat. You can’t just put a sign in the front yard and expect everyone to line up.
The homes that are positioned properly in terms of price and condition relative to the competition are the homes that sell quickly. Your home has to show well and be priced competitively in order to grab the attention of the buyers. - 46% of the available homes sold this past March. 23% sold in March, 2011.
Negative Headlines for Seattle Real Estate?
I thought we were finally past the negative headlines in Seattle real estate, but apparently not. Both The Seattle Times and the PI had articles about the decline in prices. The articles take a look at the latest Case-Shiller Index for January, 2012, which shows closings for December of 2011. The offers for the homes sold in December, 2011 were written a couple of months earlier than December, so the latest Case-Shiller report examines data that is 3-5 months old. The focus in these articles is the decline in real estate prices. There was a small decline in Seattle area real estate prices from January, 2011 to January, 2012.
Is this an accurate picture of today’s local real estate?
Besides the fact that the Case-Shiller report is examining older data, we have to remember to look at pricing over a 3-6 month period to see a real trend and in a very local real estate market. When you examine trends in a more localized area, you see true numbers. The numbers that affect you. Case-Shiller examines 20 metropolitan areas, including the Seattle area. However, this includes not only Seattle, but the surrounding counties: Snohomish, Pierce, and King. The counties are very different real estate animals. Aubrey Cohen said in the PI:
Pierce and Snohomish counties are weaker than King County, dragging down statistics for the metro area.
Within counties, real estate markets are different. In King County, the south is very different from the east. In East King County, in such cities such as Bellevue and Redmond or Sammamish, there are differences. Looking at the Seattle and the surrounding counties does not give the true picture of what is happening in Kirkland, Woodinville or Duvall. Case-Shiller does not tell the local story , the local real estate story that affects you and your home.
What’s really happening with real estate on Seattle’s eastside?
As March comes to a close, we’re in a “hot” market in Seattle and on the eastside in Bellevue, Redmond, Kirkland, and Issaquah. etc. This week in all of King County, there are 6,802 properties for sale. Last year at this time, 10,772 properties were for sale. The eastside is a reflection of these numbers. There is a small supply of available properties. Every day the NWMLS, Northwest Multiple Listing Service, tallies up the number of new listings and sales. On most days, pending sales outpace new listings by about one-third. Many homes are receiving multiple offers, which means their prices are, more often than, not remaining stable. There’s too much demand for housing and not enough houses for sale.
The reality is prices will not go up by much, but they also will not go down on the eastside in most areas with this lack of supply and high demand for homes. Let’s not go back to the past. Let’s focus on the present as much as we can. The Eastside real estate market is hot!
That should be the headline for today’s real estate news.
A Booming Real Estate Market in Kirkland, Bellevue, Redmond And Other Eastside Cities in February, 2012
The February Real Estate Map shows a strong sellers market.
Multiple offers, low supply of homes, a huge percentage of homes selling in a short amount of time, all are happening in the eastside communities of Bellevue, Redmond, Kirkland, Issaquah, Woodinville, and Bothell. This is an exciting trend that we expect will continue as long as people feel good about the economy, Seattle companies are hiring and there is this shortage of homes for sale. The national press is jumping on the bandwagon and reporting the uptick in the real estate market. However, I believe this is not happening everywhere. We are among the fortunate areas in the country that are experiencing this positive real estate market.
Almost half of all the homes for sale in Kirkland and Redmond sold this past month! That’s astonishing odds. The cities below are grouped together to follow our MLS areas (multiple listing service). This is how our statistics are reported.
1. Redmond/East Bellevue
The odds of selling a home were 49%
Median sales price decreased from $435,000 to $400,000 (y-o-y)**
113 homes were for sale
A total of 35 homes sold
Days on the market: 84
2. Kirkland
The odds of selling a home were 48%
Median sales price decreased from $457,000 to $442,000
140 homes were for sale
A total of 38 homes sold
Days on Market: 98
3. The plateau: Sammamish, Issaquah, North Bend, and Fall City
The odds of selling a home were 40%
Median sales price decreased from $514,000 to $442,000
There were 428 homes for sale
A total of 100 homes sold
Days on the market: 121
4. South Bellevue/Issaquah
The odds of selling a home were 33%
Median price decreased from $580,000 to $525,000
239 homes were for sale
A total of 43 homes sold
Days on market: 118
5. Woodinville/Bothell/Kenmore/Duvall/North Kirkland
The odds of selling a home were 32%
Median sales price decreased from $366,000 to $360,000
368 homes were for sale
A total of 105 homes sold
Days on Market: 115
6. West Bellevue
The odds of selling a home were 20%.
Median sales price increased from $840,000 to $960,000
123 homes were for sale
A total of 15 homes sold
Days on Market: 133
7. Redmond/Education Hill/ Carnation
The odds of selling a home were 4%
Median sales price increased from $382,000 to $515,000
205 homes were for sale
A total of 29 homes sold
Days on Market: 152
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.
The Seattle Eastside Condo Market Was Great in February, 2012
If you have a condo to sell on Seattle’s eastside, now is a great time to put it on the market. If you’ve hoped to move and have felt as if you couldn’t do so over the last few years, things are different now. Competition among sellers has dropped dramatically, because there are so few condos for sale. There were only 723 condos for sale in all the eastside cities of Bellevue, Redmond, Kirkland, Woodinville, Issaquah, etc. Just a few years ago, there were twice as many condos for sale.
Prices are not going to go back up any time and, more than likely, will no longer continue to drop. If your condo is underwater and/or you can’t or don’t want to sell because you’re taking a huge loss, that’s unfortunate. But for those who have contemplated a move up or out of the area, this is the best time to put your condo on the market in the last 5 years.
If you’re a buyer, condos haven’t been this affordable for about 6-7 years, so it’s a great time to buy. Most real estate gurus and economists think we’re at the bottom of the market. The situation varies dramatically in different parts of the country. Seattle is one of the bright spots in the economy, so our market is doing well. If you’re waiting for prices to go down even more, it doesn’t sound like that will happen, particularly in the Seattle area. We’ve been hit over the head with this fact since so many of the condos and homes are now selling with multiple offers. As soon as that happens, we know we were at bottom.
Last month, 25% of all the condos on the market sold. Condos sold, on average, within 89% of the original asking price.
Multiple Offers for Seattle Eastside Homes in February 2012!
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- When I check listings each day, I notice there are many homes that sell within a matter of days. Most days when I check listings, I’ve noticed they’re fewer new listings than sales. Just the other day there were 49 new listings on the eastside and 69 sales. More homes are selling than are coming on the market.
- The supply of buyers outweighs the supply of homes right now, which results in multiple offers for a home. This was common before the market crash and is now becoming a common phenomenon again here in the eastside cities of Bellevue, Kirkland, Redmond.
- As I mentioned last month, it’s surprising to see fewer homes on the market than in January. Usually the number of homes for sale follows the same trend that we see in the chart for 2011. As most years progress, there are more homes for sale each month, with the number peaking sometime in the summer. This year we’ve not seen this pattern. It’s pretty unusual at this time of year to see the number of homes for sale actually be a lower number than the previous month. This week the number of homes for sale in all of King County dipped below 7000. We started the year with about 7500 homes for sale, so homes are selling at a pretty fast clip.
- Does this mean that home prices are going up? Even with multiple offers, not all of the homes are selling for full price. There are some homes, though, that are in demand, are truly special or are priced incredibly well which can and do sell for more than full price. Prices on the eastside are actually down about 2% from last year.
The Seattle-eastside real estate market was hot in February. Buyers were lining up and multiple offers were often the norm. Multiple offers? Yes, multiple offers.What happened to the supply of homes on the eastside?
In the eastside cities of Bellevue, Kirkland and Redmond, etc, sellers who are able to hang on to their homes and choose not to sell are waiting, particularly if they paid more for their homes. The shadow inventory of foreclosures, is still a shadow at this point. There are foreclosures, but the eastside real estate market is not glutted with them.
This February there were 734 fewer homes, about 31% less, for sale on the eastside than last year. With almost 1/3 fewer homes on the market, it’s no big surprise that multiple offers are happening. Not only are fewer homes on the market, but more are selling than last year. Almost 100 more homes sold this February than last.
The wrap up February, 2012 Seattle-eastside real estate:
- 31% fewer homes were on the market in February this year than in 2011.
- The average time a home took to sell was 118 days.
- Sales prices on average were 8% below the seller’s original asking price.
- 34% percent of the homes for sale this January received offers and sold.
What’s happening in your neighborhood? Is the real estate market off to a better start this year?
*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.
Stayed tuned to see if this hot real estate market continues.
How Was The Seattle Eastside Condo Market in January 2012?
The Seattle-Eastside condo real estate market in the cities of Bellevue, Kirkland, Redmond, etc was even better in January than December of last year. This is not terribly surprising. When the calendar rolls around to a new year, buyers minds turn to real estate and home buying.
The number of condos for sale on the eastside was almost the same as in December. However, 31 more condos sold in January than in December. Interestingly, there were 247 new listings, but with the number of sales happening and other condos coming off the market, the supply has remained static. The demand has been far greater. The well priced and well maintained condos are selling as fast as they are coming up on the market.
Ironically, 20% fewer condos were on the market in January than a year ago.
As I’ve mentioned before, expect this year’s condo real estate market to be the strongest we’ve had for sales in 5 years. In January, 20% of the available condos sold which is equal to the highest percentage of sales in July of last year. Condos were on the market an average of 133 days and sold within 89% of their original asking price. Surprisingly, the median price dropped from $235,000 last year to $168,000 this year.
I truly think this only represents the fact that the majority of condos that sold in January happened to be less expensive than those that sold last January. I don’t think prices have dropped that much. I look forward to seeing the price point for condo sales when we have February’s statistics available. So don’t give up hope just yet. Prices are down for everyone, whether it’s a house or condo, but it may not be as bad as January’s median pricing suggests.
As we’ve mentioned before, expect this year’s condo real estate market to be the strongest we’ve had for sales in 5 years. The lack of supply should help to spur the market on. Happy condo hunting!
How Was The Seattle Eastside Real Estate Market in January, 2012?
Real estate on Seattle’s eastside had a great start to 2012. Pending sales were up by 38% and there were 26.5% fewer homes on the market this year than in January, 2011! This is a recipe for a positive real estate market here in the cities of Bellevue, Kirkland, Redmond, Issaquah, Sammamish and Woodinville. In January, 2011 there were over 2300 homes for sale, in July 2011 there were 2879 homes for sale, and this past January there were just 1757 available homes! There were 1000 fewer homes for sale in January, 2012 than in July of 2011. That’s a huge difference. In the first 7 weeks of 2012, the number hasn’t change much, remaining fairly stable. Usually by the this time of the year, we’ve seen a jump in the number of homes for sale.
We expect this year to be a fast paced market for the homes that are priced well and show well. We can already see the increase in activity with one of our listings. We recently listed a home and 20 different groups came to the open house. This means there are lots of buyers out there actively looking for a home.
I also think most people feel like the worst is behind us and it is safe to go out again and buy a home. NPR had a piece with positive economic news on several fronts. Housing starts are up and unemployment is down.
The wrap up for January, 2012 Seattle-eastside real estate:
- 26% fewer homes were on the market in January this year than in 2011.
- The average time a home took to sell was 105 days.
- Sales prices on average were just 9% below the seller’s original asking price.
- 26.5% percent of the homes for sale this January received offers and sold.
As in December, the actual number of homes sold did not change much. Last year 420 homes sold. This year 453 sold. The difference? There was much more competition last year because there were 634 more homes on the market! The lack of supply definitely contributes to a faster market.
What’s happening in your neighborhood? Is the real estate market off to a better start this year?
*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.
Predictions for 2012 Real Estate on the Eastside-Bellevue, Redmond, Kirkland, Etc.
With the start of the new year, we’re seeing a more positive attitude out in the marketplace. It’s amazing what a new year can bring in attitude and outlook for people. Many are making choices to move because they want or need to do so. For some, the price issue is taking a back seat to the need to move. We have several clients who plan to move because they just got married and want a new home or would like to live in the city, downsize or relocate. These moves are lifestyle choices. Some will lose money, while others will make a profit on their home sale. Lifestyle wants and needs trump the monetary outcome for some. Truthfully, if homeowners can make a choice as to whether to sell or hold, they are the fortunate ones.
What's in 2012's Crystal Ball for Eastside Real Estate?
What’s on the horizon for 2012? As I was driving to a meeting recently, I heard a piece on KPLU about the expected improvement in the Puget Sound economy.
Dick Conway, an economic forecaster. had spoken at the 40th Anniversary Economic Forecast Conference in Seattle. Here are five reasons Conway thinks the future is bright:
- Boeing is showing strong employment, with the 737 MAX and the 787 being built here, the labor peace pact, and strong bonuses. Overall, it is a very nice scenario for the Puget Sound Economy.
- Job growth in the region is generally outpacing the nation. The strength of both Boeing and Microsoft causes a “multiplier effect,” bringing more jobs with them.
- Retail sales numbers have been a pleasant surprise. Conway predicts a 5.9 percent increase in 2012 and a bit more than 3 percent growth in 2013.
- Foreign exports are leading the recovery and Washington state is the nation’s top exporter, thanks again to Boeing. (Microsoft is also a factor here.)
- The Puget Sound is home to many strong local companies.
Matthew Gardner had a fairly optimistic view for 2012 real estate in the Seattle area:
When combined with improving economic conditions, I would not be surprised to see several markets exhibit modest price growth in 2012. That said and, as we all know, real estate is all about location; therefore I do not expect that price recovery will be equal across all markets.
He tempers this line of thinking with the two elephants in the room: the expected supply of distressed sales that will hit the market and the difficulty of obtaining financing:
If this is actually the case, then why aren’t prices higher? Well, there are still a number of anchors that are holding us back. The first of which is the shadow inventory in the shape of distressed homes. Many foreclosures have been trading at below market value and, in some cases, below replacement cost. This naturally holds down values.
Secondly, and equally as important, are the continued issues with obtaining financing for the purchase of a new home. It remains remarkably difficult to get a mortgage, which has led to an unusually high percentage of proposed purchases falling through.
With the new year and promising economic news, we expect Seattle-eastside real estate to be the strongest since 2007. Home sales should be steady even as inventory rises into the summer. Prices, of course, may stay about where they are for now. The key to pricing will be the supply of homes on the market. The more homes, the more competition for buyers and the more flexible sellers will need to be about pricing. With fewer homes on the market and steady demand, prices should stabilize. If prices do go up, most likely it will be in the areas that are close-in, areas which are considered desirable locations. Expect distressed sales to temper the pricing this year. The number of homes for sale and pricing will vary from neighborhood to neighborhood. The eastside is filled with real estate micro-markets and they don’t perform in the same way.
If there are any price increases, they will be minimal, but if there are increases, we will be shouting this from the rooftops! Because we watch market trends so carefully, our sellers will be among the first to know about any price increases. You will, however, hear us shouting that 2012 is expected to be our best market in the last 4 years.
Our predictions:
- Prices should not drop further.
- Some homes will be the “hot” ones because of price and condition. These homes will sell quickly and some will have multiple offers.
- Other homes and neighborhoods will move more slowly because of price and location.
- Local companies, such as Amazon and Microsoft, will continue to move people to the area.
- The supply of homes for sale will increase as the year heads to spring and summer, however, there are some homeowners who will choose to hold for a number of years. The supply should not increase as dramatically as it has in the last few years.
- Distressed sales will continue to be a significant part of the supply and will continue to affect pricing statistics. However, pricing will be stronger for those homes that aren’t distressed sales.
- There will be a more balanced market between buyers and sellers.
- The wide range of activity indicates a normal, active real estate market on Seattle’s eastside.
What do you think will happen real estate in cities such as Bellevue, Kirkland, and Redmond? Will prices go up, down or stay the same? Do you see a good market in your area?
