The big news this month is that builders are back to work! With low-interest rates and some builders offering incentives, now is a great time to consider new construction.

The resale market is very price-sensitive with well-priced listings moving quickly. Bullish Sellers, on the other hand, are seeing extended market time even in our low-inventory environment.

There are some great opportunities for buyers, but due to safety concerns, many Sellers are requesting lender pre-approval before they allow their home to be shown. Please contact me for a referral to a trusted loan officer.

Finally, a word caution for Sellers considering forbearance: there is likely to be a negative impact on your credit for doing so that could prevent your ability to refinance for at least a year. Please be sure to read all documents thoroughly and check with a reliable resource before signing. Let me know if I can help.

BY THE NUMBERS

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The following analysis of the Western Washington real estate market is provided by Windermere Real Estate Chief Economist, Matthew Gardner. I hope that this information may assist you in making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact me.

A MESSAGE FROM MATTHEW GARDNER

Needless to say, any discussion about the U.S. economy, state economy, or housing markets in the first quarter of this year is almost meaningless given events surrounding the COVID-19 virus.

Although you will see below data regarding housing activity in the region, many markets came close to halting transactions in March and many remain in some level of paralysis. As such, drawing conclusions from the data is almost a futile effort. I would say, though, it is my belief that the national and state housing markets were in good shape before the virus hit and will be in good shape again, once we come out on the other side. In a similar fashion, I anticipate the national and regional economies will start to thaw, and that many of the jobs lost will return with relative speed. Of course, all of these statements are wholly dependent on the country seeing a peak in new infections in the relatively near future. I stand by my contention that the housing market will survive the current economic crisis and it is likely we will resume a more normalized pattern of home sales in the second half of the year.

HOME SALES

• There were 13,378 home sales during the first quarter of 2020, a drop of only 0.2% from the same period in 2019, but 27% lower than in the final quarter of 2019.
• The number of homes for sale was 32% lower than a year ago and was also 32% lower than in the fourth quarter of 2019.
• When compared to the first quarter of 2019 sales rose in eight counties and dropped in seven. The greatest growth was in Cowlitz and Lewis counties. The largest declines were in Island and Snohomish counties.
• Pending sales — a good gauge of future closings — rose 0.7% compared to the final quarter of 2019. We can be assured that closed sales in the second quarter of this year will be lower due to COVID-19.

HOME PRICES

• Home-price growth in Western Washington rose compared to a year ago, with average prices up 8.7%. The average sale price in Western Washington was $524,392, and prices were 0.4% higher than in the fourth quarter of 2019.
• Home prices were higher in every county except San Juan, which is prone to significant swings in average sale prices because of its size.
• When compared to the same period a year ago, price growth was strongest in Clallam County, where home prices were up 21.7%. Double-digit price increases were also seen in Kitsap, Skagit, Mason, Thurston, and Snohomish counties.
• Affordability issues remain and, even given the current uncertain environment, I believe it is highly unlikely we will see any form of downward price pressures once the region reopens.

DAYS ON MARKET

• The average number of days it took to sell a home in the first quarter of this year dropped seven days compared to the first quarter of 2019.
• Pierce County was the tightest market in Western Washington, with homes taking an average of only 29 days to sell. All but two counties — San Juan and Clallam — saw the length of time it took to sell a home drop compared to the same period a year ago.
• Across the entire region, it took an average of 54 days to sell a home in the first quarter of the year — up 8 days compared to the fourth quarter of 2019.
• Market time remains below the long-term average across the region. This is likely to change, albeit temporarily, in the second quarter due to COVID-19.

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Given the current economic environment, I have decided to freeze the needle in place until we see a restart in the economy. Once we have resumed “normal” economic activity, there will be a period of adjustment with regard to housing. Therefore, it is appropriate to wait until later in the year to offer my opinions about any quantitative impact the pandemic will have on the housing market.

ABOUT MATTHEW GARDNER

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

This post originally appeared on the Windermere.com Blog.

I hope everyone is well and making the best of staying home. As with everything during this time, real estate is changing and evolving as we go. Governor Inslee recently deemed real estate as an essential service, so long as required precautions are followed. Showings are by appointment only and with a total of 2 people in the home at a time, including the agent. I feel fortunate to be able to work and I take the protection of my clients and the public very seriously.

In terms of the market, although the pace has slowed a bit, well-presented and appropriately priced homes continue to sell quickly, sometimes with more than one offer. That said, the buyer pool has understandably shrunk, decreasing the previously intense demand and creating an opportunity for serious buyers looking to take advantage of less competition and favorable interest rates.

As always, I’m here to help, please don’t hesitate to reach out with questions. In the meantime, stay safe and be well. Home has never been a more meaningful place to be.

BY THE NUMBERS

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Join Sheri Puzke as she partners with American Dream TV, a nation show who’s goal is to positively impact real estate communities through the voice of top realtors.

EPISODE 1: MACADAM FLOOR & DESIGN

In this episode, I had the opportunity to chat with Micheal Owen of Macadam Floor & Design and take a look at some of the beautiful finishes they offer for buyers and consumers of new construction to outfit their new homes.

WATCH THE FULL AMERICAN DREAM EPISODE

EPISODE 2: THE POLKADOT JERSEY BIKE SHOP

In this episode, I had the opportunity to chat with the owner of The Polkadot Jersey Bike Shop, Micheal Telmosse and explored the popular Seattle neighborhood, Leschi. Perched on a hill just east of Downtown Seattle, Leschi boasts lush parks, boutique shops, charming local restaurants and stunning waterfront views in this idyllic lake location.

WATCH THE FULL AMERICAN DREAM EPISODE

Working from home is an aspiration for many of us, but to do so effectively takes effort. A disorganized space at home can be just as troublesome as a hectic office. The most disciplined telecommuters will tell you that you need a structured routine and organization in order to be successful.

Having a designated workspace is one of the most important elements to your success when you make the switch to telecommuting. Even if you live in a small space, you need to find a balance between home and office. People who work from home often have a difficult time separating their work hours from their non-work hours because it’s so easy to keep at it late into the night. But maintaining a balance and shutting down the computer is important for overall wellbeing. What are some other must-haves for a successful home office? Here are the top five:

1. Natural Light – Study upon study tells us that natural light is needed to boost productivity and mood. Make sure to set your desk up as close to a window as you can. If being near a window isn’t an option, a natural light lamp is the next best thing. It helps balance your body clock and leaves you feeling rested and refreshed.
2. To-Do List or Planner – Start each day off by making a to-do list outlining what you need to get done before the end of the workday. Make sure to set a realistic time frame in which all of that should be completed, so you can check each one off the list and feel immense accomplishment once you’ve completed them all.
3. Storage – If you have a big enough space, put in a large bookshelf where you can organize everything (think storage boxes). It reduces clutter and looks stylish. Using your walls and cabinetry is the most efficient use of space.
4. Calendar – Many people tend to rely on digital calendars these days because of their convenience. When all of your devices sync together and pop up with reminders, you never have to worry about missing an appointment. However, many people find that it helps to keep a paper calendar handy too so you can easily view your whole month at a glance. Choose which options works best for you by playing with both options, or something in between and see which one lets you be more productive with the least amount of stress.
5. Space for Inspiration – It doesn’t matter what field you work in, having a source of inspiration in your workspace is essential. Whether it’s a photo of your family, your dream car, or that vacation you’ve been dying to take, having that inspiration right in front of you provides a constant reminder of why you do what you do.

This post originally appeared on the Windermere.com Blog.

The condo a quarter-mile away from the Life Care Center of Kirkland — the long-term care facility at the epicenter of the U.S. novel coronavirus outbreak — hit the market at $365,000 last week, one day after the first resident of the nearby facility died of the flulike illness.

By Monday, roughly 34 groups of home shoppers and looky-loos had toured the property, not one expressing concern about the viral disease, according to the listing agent.

The condo sold five days after it was listed, with the winning offer of nearly $400,000 waiving all contingencies.

Even as concern over the rapid spread of the novel coronavirus mounts, the most recent data on area home sales from the Northwest Multiple Listing Service (NWMLS) shows the market for Seattle-area residential realty remains hot.

It’s too early to tell just what the impact of the novel coronavirus will be in the coming weeks, but all else being equal, low inventory and price increases are expected to continue into the spring, brokers said.

An emergency interest-rate cut Tuesday — the first time the Federal Reserve has used emergency powers since the depths of the 2008 financial crisis — could add further fuel to property markets around Puget Sound, brokers said.

“Our agents aren’t yet seeing any impact on open house attendance due to the COVID-19 outbreak,” said Mike Grady, president and COO of Coldwell Banker Bain in Bellevue, in a statement. “We continue to be bullish on the Puget Sound economy and real estate market.”

In February, median home prices in King County spiked 7% over the previous month, to $675,000, representing a 3% gain year-over-year. There were also more new listings in King County, 2,271, than any time since September.

Meanwhile, inventory plunged even lower than January’s already-tight market, by one metric. There were 40% fewer homes on the market in King County in February than there were in January, the NWMLS data shows.

But months of inventory — a measure of how long it would take to sell all the homes currently on the market — stayed constant at 1.2 between January and February, indicating that homes weren’t moving quite at January’s greased-lightning pace.

Prices rose more slowly in Seattle than anywhere else in King County, to $730,500, a less-than-1% bump over this time last year. Elsewhere in the county, from the tonier neighborhoods of the Eastside to less-expensive parts of Southwest King, price growth saw an increase of roughly 10% compared to last year.

Elsewhere in Puget Sound, home prices continued a meteoric rise, especially in Kitsap County, where they rose by an eyeball-popping 18% year-over-year. Growth in Pierce and Snohomish counties hovered around 10% compared to last year, with median prices hitting $395,000 and $515,000, respectively.

Seattle’s condo market saw rocket-powered growth in sales compared to last year, with a 47% increase in closed sales and a corresponding 8.4% rise in median sale price, to $481,225.

It was joined by the Eastside condo market, with a 25% rise in closed sales and a 6.7% jump in prices, to $475,000. Together, those two markets account for one-third of condo sales in Western Washington.

Brokers said they planned to wait and see how the spread of the coronavirus impacts Puget Sound’s sweltering home markets, with most predicting it would have little to no effect on home sales.

At the condo down the road from Life Care, “people were coming and going” at open houses last weekend, said listing agent Alena Pushkina, of Skyline Properties.

At least nine people associated with the center have died of the new coronavirus, and more than a dozen other cases have been linked to the nursing home.

Realogics Sotheby’s International Realty broker Mei Yang said foot traffic at open houses during the upcoming weekend would show whether area home shoppers are caught up in the worries over the virus.

She’s preparing to list a house next week, she said, and out of an abundance of caution asked colleagues whether they thought she should postpone the open house until after the progress of the disease had slowed.

“Their sentiment was to just go ahead,” she said. “So I plan to go ahead.”

Some brokers, though, are taking precautionary measures to protect themselves and their clients from disease.

The National Association of Realtors issued novel coronavirus guidance Thursday advising brokers to require all visitors to open houses to disinfect their hands and inquire about their clients’ travel histories before meeting in person.

Engel & Völkers agent Freddy Delgadillo, who toured the Kirkland condo near Life Care with a client, said they wore masks while in the unit.

Delgadillo said he also wore a pair of black leather gloves while in the condo. As for his client, “I didn’t have her touch anything,” he said, “just in case.”

This article was written by reporter Katherine Khashimova Long and originally appear on SeattleTimes.com

Naturally the most frequent question I’m getting lately is about how the coronavirus is impacting our local market.  So far, traffic remains brisk and multiple offers with escalations continue for well-presented listings. Savvy buyers are taking advantage of the increased buying power that historically low interest rates afford. Investors looking for a reprieve from stock market volatility are also looking to real estate for stability. Inventory remains extremely tight and demand strong.  My advice to my Sellers is to proceed as planned. We are taking appropriate preventive measures by providing hand washing stations at my listings and cleaning surfaces for open houses. As we are all aware, the situation is evolving rapidly.

I am monitoring real estate activity closely and welcome your questions  – please don’t hesitate to reach out to me!

BY THE NUMBERS

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Interest rates dropped again prompting buyers to leap off the fence resulting in multiple offers for well-priced, turnkey properties. Sellers – this is your sweet spot! Inventory is increasing daily but we are still far short of meeting buyer demand. Savvy sellers are rushing to get their homes on market and take advantage of this seasonal opportunity.  I have some great listings with more in the pipeline – call me or stop by my open houses to check them out!

BY THE NUMBERS

Click the images below to download your neighborhood’s recent real estate figures!