A decrease in inventory coupled with an increase in sales activity led to fewer options for home shoppers in August. There is some good news for would-be buyers as mortgage rates have dropped to their lowest level in three years. Demand remains high but there simply aren’t enough homes on the market. Brokers are hoping to see the traditional seasonal influx of new inventory as we move forward.
The median price of a single-family home on the Eastside was $935,000 in August, unchanged from a year ago and up slightly from $925,000 in July. New commercial and residential construction projects are in the works. Strong demand for downtown condos has prompted plans for yet another high-rise tower to break ground next year.
Home prices in King County were flat in August. The median price of a single-family home was $670,000, virtually unchanged from a year ago, and down just one percent from July. Southeast King County, which has some of the most reasonable housing values in the area, saw prices increase 9% over last year. Inventory remains very low. Year-over-year statistics show the volume of new listings dropped 18.5% in King County.
Homes sales were up 12% in Seattle for August, putting additional pressure on already slim inventory. There is just over six weeks of available supply. There are signs that prices here are stabilizing as the median home price of $760,000 was unchanged from a year ago and up less than one percent from July. With its booming economy, demand here is expected to stay strong.
Buyers looking for more affordable options outside of King County pushed pending sales, mutually accepted offers, up nearly 16% over a year ago. Home prices have softened slightly. The median price of a single-family home in August was $490,000, down slightly from the median of $492,225 the same time last year.
This post originally appeared on GetTheWReport.com
A strong work ethic and empathetic kindness show up in Sheri Putzke’s #1 passion, which is “complete client satisfaction”. Sheri understands that a real estate transaction is “always a big deal” and not just from a financial perspective. Purchasing or selling a home usually occurs because of something else going on in a client’s life – marriage, a growing family, death, divorce, or a new job. Sheri considers it a privilege to help her clients negotiate transitions that are often emotional and overwhelming. “I like to solve problems and help people. I try to remain even-keeled, staying focused on resolving any issues. When a real state need arises, I want to be the person they call,” she says,
Sheri’s transition into real estate was natural, albeit unexpected. Her husband Mark has built homes for over 20 years and is the sole proprietor of Chandler Homes. Initially, Mark had a business partner whose wife was a real estate agent. When Mark bought out his partner, he suggested Sheri get her license. Sheri has never regretted her decision. Now she and Mark both “live and breathe” real estate. “I help him, he helps me,” she explains. They enjoy going to open houses together, keeping current on the latest and greatest in new trends and fun ideas.
Sheri was primarily a stay-at-home mom to the couple’s three children – Tristan, Ashley, and Chloe – when she started with Hallmark Realty in downtown Kirkland. The low-key, mellow office was a convenient fit for her. In 2009, when her youngest started full-time school, Sheri joined Windermere. Windermere’s technology, education, resources, contacts, and Accountability Group program were instrumental in taking her business to the next level. In her Accountability Group, Sheri and two other agents of similar age and with similar time in the business bounced ideas and best practices off each other. Knowing Sheri’s experience with her husband’s construction business, one group member connected Sheri with CamWest (now Toll Brothers). Working onsite for several years with CamWest dramatically increased Sheri’s expertise with new home sales. The hours were long, but the opportunity for learning and meeting new clients was priceless. Sheri’s knowledge deepened by answering questions about everything from foundations to finishes, guiding buyers through the selection of custom structural options and interior finishes, and educating buyers on the build process. “Site work required a huge commitment, sometimes 5-7 days per week, but eventually the time and tenacity paid off,” says Sheri.
To this day, selling new construction remains an important component of Sheri’s business. Builders seek Sheri’s well-regarded opinion on floor plans, finishes, and pricing. While new construction sales are “not for everyone” given the structured schedule, Sheri credits it with helping jump-start her real estate career. Additionally, understanding what goes into building a home has given Sheri the skill to help buyers, even on resales, better understand inspection issues and possible remedies.
Fourteen years later, Sheri’s clientele is predominantly comprised of past clients and their family and friends. Sheri averages 50+ closed transactions a year and has repeatedly been recognized as one of the top realtors in King and Snohomish counties. However, financial success is not Sheri’s motivation. She “pays absolutely no attention” to the dollar values, focusing instead on creating the best possible experience for her clients. When asked about her awards, Sheri “stays humble”, simply referring people to her website (sheriputzke.com).
Sheri has never forgotten her early years in real estate and the challenges of building a business. Though she continues to hold open her own listings, Sheri gives other agents the opportunity to do so whenever possible, knowing how much those experiences helped her. “I greatly value my relationships with other agents. We are at our best when we work cooperatively–attending one another’s open houses, sharing information and resources, and always treating each other with respect,” she says.
Sheri’s best advice to newer agents? “Just keep going. There were so many times I wanted to quit in my first year. I felt overwhelmed and intimidated. I stuck with it, asked hundreds of questions, and my confidence grew.” Sheri also stresses the importance of honesty. “Always consider today’s buyer as a future seller. Being forthright with them about the value/desirability of their home purchase (and with sellers about the market value of their home) fosters trust,” she advises. Sheri educates first-time homebuyers on the care and maintenance of their home and remains a resource for them after the sale closes.
For more experienced agents, Sheri advocates surrounding oneself with the “best in the business”. She says, “As you get busier, you can’t do it all yourself. It’s important to build a team of like-minded professionals to support you.”
Sheri is a “one-man show” and the primary contact to her clients, but she acknowledges she couldn’t do it without support. She credits her longtime Transaction Manager, Danielle, with helping keep close track of contract deadlines and handling most aspects of the job that require sitting at a desk. It would drive Sheri crazy to sit in a chair all day but Danielle, though licensed, prefers working “behind the scenes”. The two make a great team. “Support” also includes a Social Media Manager, expert stagers and photographers, and top-notch Escrow and mortgage professionals.
Often working far more than 40 hours a week, Sheri strives to keep everybody (meaning clients, Mark, and her children) happy. Working hard is easy. Balance is the challenge. “It is getting easier now that my children are older, but rarely does a day go as planned. My work happens when it happens,” she admits.
Daily exercise is a critical component for restoring balance–running or working out helps to calm and clear Sheri’s mind. The family’s second home in Suncadia also offers respite. Sheri truly loves her on-the-go, fun, interesting, ever-changing job. She chose her tagline, Love Where You Live, because “The Pacific Northwest offers such stunning natural beauty. Views are a passion of mine, and it’s amazing to integrate a great view with incredible architecture. It’s such an honor and privilege to live and work here. I love my home and my community. I want my clients to feel the same way!” Her success and client satisfaction rating suggest they do.
The market in our region appears to be moderating. Inventory is up, prices are relatively stable and homes are taking a bit longer to sell. However, with less than two months of available inventory, supply is still far short of demand. Steady buyer activity, low interest rates and a thriving economy are making for a strong summer in the housing market.
The median price of a single-family home on the Eastside was $950,000 in June, down 3% from the same time last year and up $21,000 from May. Many buyers are looking to take advantage of the Eastside jobs boom with Amazon announcing plans to build a 43-story tower in Bellevue and Google expecting to reach 1 million square feet of office space in Kirkland.
There was good news for buyers in June as a growing supply of homes helped boost inventory close to 2012 listing levels. The median price of a single-family home in King County was $695,000. That figure is a 3% drop from a year ago and virtually unchanged from May. 33% of homes sold above list price; another sign prices are moderating when compared to 52% of homes sold over list price this time last year.
Home inventory in Seattle inched slightly higher in June. However, with less than two months of supply, the city is still a solid seller’s market. Apple’s plan to turn Seattle into a key engineering hub can only add to demand. The median price of a single-family home in Seattle was $781,000, down 4% from a year ago and nearly unchanged from May.
After hovering around $500,000 since March, home prices in Snohomish County crept up in June. The median price of a single-family home was $515,500, as compared to $511,500 last June. Snohomish County continues to attract buyers priced out of the King County market, putting an additional strain on supply which stands a just 1.5 months of inventory.
This post originally appeared on GetTheWreport.com
The pace of the housing market gained momentum in May, bringing an uptick in open house traffic and offers. A drop in interest rates and increased inventory were great incentives for buyers. Despite the increase in supply there is less than two months of inventory available – half the national average and far short of what is considered balanced. Industry experts are predicting a strong market as we segue into summer.
The median price of a single-family home on the Eastside was $928,800 in May, down 3% from the same time last year and virtually unchanged from April. With a booming economy that continues to grow, news of Amazon’s expansion in Bellevue, the latest Microsoft acquisition and plans for a $1.2 billion office park in Redmond, demand for housing on the Eastside is unlikely to decrease any time soon.
Home sale activity in King County was brisk in May. According to a Windermere analysis, 7 out of 10 properties sold last month had 15 or fewer days on the market. More than half of the homes sold at or above list price. The median price of a single-family home was $700,000. While down 4% from the same time last year, that price was up about $22,000 from the previous month. Home to the fastest growing economy in the country, King County is expected to draw even more buyers to the area this year.
Seattle employment continues to grow faster than in most of the country. This has made the city a top location for workers, particularly millennials. Demand has put a strain on available homes, reducing the supply to just seven weeks of inventory available. May home prices in Seattle were lower than they were a year ago, but showed a healthy increase from the previous month. The median price of a single-family home was $784,925 in May, down 5% from a year ago and up $30,000 from April.
In May, the median price of a single-family home in Snohomish County was $499,950. That number remains unchanged from a year ago, and also unchanged from March and April. Despite a 44% increase in inventory, the supply of homes for sale in this area is even tighter than in King County. Brokers report that buyers are being drawn from King County and willing to trade a longer work commute for more affordable housing.
This post originally appeared on GetTheWReport.com
April brought good news for homebuyers. Inventory increased, prices continued to moderate and mortgage rates remained low. While buyers have more choices, there is still less than two months of inventory on the market. Demand is expected to remain strong as we head into the prime spring real estate season.
The median price of a single-family home on the Eastside was $927,500 in April, down 2% from the same time last year. The economy here remains robust, particularly in the tech sector. After snapping up substantial real estate in Bellevue earlier this year, Amazon announced in April it would lease two more towers. Buyer demand and scarce inventory are keeping the Eastside market competitive.
With the number of homes for sale in King County up 78% over last year, buyers have more choices and a bit more time to make a decision. However, there is still less than two months of inventory, half the national average. The median price of a single-family home in April was $690,000. That figure was down 5% from the same time last year, but up from the $677,725 median price in March.
With one of the strongest economies in the nation, demand here remains solid. While the number of homes for sale continued to rise, there is just five weeks of available inventory, far short of the four to six months that is considered balanced. The median price of a single-family home in Seattle hit $754,000 in April, down 8% from a year ago and up slightly from the prior month.
In Snohomish County, the median price of a single-family home fell by 1% from a year ago to $500,000, the same figure posted in March. A 57% increase in inventory combined with low interest rates have created a strong beginning to the spring market.
This post originally appeared on GetTheWReport.com
Windermere Real Estate has a long tradition of genuine success — the W Collection program engages this very tradition with every detail. As a W Collection agent, I am trained to provide an extraordinary level of quality and service.
Signature marketing materials, international exposure, and dedication to perfection, ensure each W Collection property reaches the right buyers — both locally and globally. The combination of this vast global network and Windermere’s strength as the Northwest’s luxury-market leader, provides the ultimate platform to showcase truly outstanding properties or to find the dream home for the most discerning buyer.
You can find me in the W Collection Portfolio in the April issue of the Puget Sound Business Journal! This insert showcases me along with my fellow W Collection agents as well as luxury listings, market statistics and Windermere’s partnership with Luxury Portfolio International and Juwai.com.
The spring home buying season started early this year. Open houses had increased attendance and bidding wars returned in March. Home prices in most of the region are about even with March of 2018. The Eastside median closed sales price decreased 1% from March 2018 ($831,000) to March 2019 ($825,000). Months supply of inventory decreased from 1.8 in February 2019 to 1.2 in March 2019, its lowest in nine months. The number of Eastside sales increased 2% for the first quarter 2019 compared to 2018. The speed of the market (percentage of homes sold in two weeks or less, number of multiple offers) is slower than a year ago (arguably a good thing), although it is speeding up.
Download the full report by clicking the image below.
The spring home buying season started early this year. Open houses had increased attendance and bidding wars returned. After months of softening, home prices in most of the region jumped significantly from the prior month. With just one month of data, we’ll have to wait and see if this is the start of a longer upward trend.
The Eastside was one area of King County that continued to see prices moderate. The median price of a single-family home on the Eastside was $900,000 in February, a drop of 5 percent from a year ago and down slightly from last month. However, supply here isn’t nearly enough to meet demand, a fact that most likely won’t change any time soon. Amazon’s latest expansion in Bellevue is expected to bring a significant wave of new employees to the city.
The median single-family home in King County sold for $655,000 in February. While up slightly less than 1 percent year-over-year, it was an increase of $45,000 over January. Southeast King County, which includes Kent, Renton and Auburn, saw the greatest gains with prices rising 4.5 percent over the previous year. While inventory has grown, it is less than half of the four to six months that is considered balanced.
More inventory and low interest rates helped bring buyers back into the market. The median price of a single-family home in Seattle hit $730,000 in February, down 6 percent from a year ago, but up $18,500 from January. With just six weeks of available supply, Seattle continues to have the tightest inventory in the county. Seattle’s record development boom shows little signs of easing, so we can expect strong demand to continue.
The median price of a single-family home in Snohomish County reached $474,947 in February. Although that is a 2 percent decrease from last year, it is $5,000 more than January. As buyers push outside of King County to search for more reasonably priced homes, Snohomish County continues to struggle to find enough inventory to meet growing demand.
This post originally appeared on the WindermereEastside.com Blog.
January brought more good news for homebuyers. Prices were down, inventory was up and interest rates hovered near a nine-month low. Those factors drove more buyers into the market and resulted in an uptick in sales for the month. We’ll see how this transitioning market evolves as we head into the prime Spring home buying season.
The most expensive region in King County saw prices soften in January. The median price of a single-family home on the Eastside dropped 3 percent over last January to $910,000. It’s an excellent time for buyers to leverage the cooling market and negotiate terms that work best for their needs. Last January, 39 percent of the homes in this area sold for over asking price. This January, that figure dropped to 12 percent. With its favorable business climate and high rankings for both economic growth and technology capabilities, demand on the Eastside is projected to remain strong.
January marked the first time home prices in King County decreased year-over-year in seven years. The median price of a single-family home was $610,0000, a drop of 3 percent over the prior year. Inventory more than doubled. Unlike recent months, this was due primarily to more people putting their homes on the market, as opposed to homes taking longer to sell. Despite the surge in listings there is just two months of available inventory, far short of what is needed to meet demand.
The median price of a single-family home in the city was $711,500 in January, a decrease of 6 percent year-over-year. Despite a 107 percent increase in homes for sale compared to a year ago, Seattle continues to have the tightest inventory in King County with less than two months of supply. A booming economy that shows no signs of slowing continues to draw more people to the city. The area will have to significantly add more inventory to meet that growing demand.
The median price of a single-family home in January inched up 1 percent from last year to $455,000. That price is down from the median of $470,000 recorded in December. Snohomish County also saw a surge in inventory with the number of homes on the market double of what it was last year at this time.
This post originally appeared on the WindermereEastside.com Blog.
The following analysis of the Western Washington real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact me.
The Washington State economy continues to add jobs at an above-average rate, though the pace of growth is starting to slow as the business cycle matures. Over the past 12 months, the state added 96,600 new jobs, representing an annual growth rate of 2.9% — well above the national rate of 1.7%. Private sector employment gains continue to be quite strong, increasing at an annual rate of 3.6%. Public sector employment was down 0.3%. The strongest growth sectors were Real Estate Brokerage and Leasing (+11.4%), Employment Services (+10.3%), and Residential Construction (+10.2%). During fourth quarter, the state’s unemployment rate was 4.3%, down from 4.7% a year ago.
My latest economic forecast suggests that statewide job growth in 2019 will still be positive but is expected to slow. We should see an additional 83,480 new jobs, which would be a year-over-year increase of 2.4%.
Home Sales Activity
- There were 17,353 home sales during the fourth quarter of 2018. Year-over-year sales growth started to slow in the third quarter and this trend continued through the end of the year. Sales were down 16% compared to the fourth quarter of 2017.
- The slowdown in home sales was mainly a function of increasing listing activity, which was up 38.8% compared to the fourth quarter of 2017 (continuing a trend that started earlier in the year). Almost all of the increases in listings were in King and Snohomish Counties. There were more modest increases in Pierce, Thurston, Kitsap, Skagit, and Island Counties. Listing activity was down across the balance of the region.
- Only two counties—Mason and Lewis—saw sales rise compared to the fourth quarter of 2017, with the balance of the region seeing lower levels of sales activity.
- We saw the traditional drop in listings in the fourth quarter compared to the third quarter, but I fully anticipate that we will see another jump in listings when the spring market hits. The big question will be to what degree listings will rise.
With greater choice, home price growth in Western Washington continued to slow in fourth quarter, with a year-over-year increase of 5% to $486,667. Notably, prices were down 3.3% compared to the third quarter of 2018.
Home prices, although higher than a year ago, continue to slow. As mentioned earlier, we have seen significant increases in inventory and this will slow down price gains. I maintain my belief that this is a good thing, as the pace at which home prices were rising was unsustainable.
When compared to the same period a year ago, price growth was strongest in Skagit County, where home prices were up 13.7%. Three other counties experienced double-digit price increases.
Price growth has been moderating for the past two quarters and I believe that we have reached a price ceiling in many markets. I would not be surprised to see further drops in prices across the region in the first half of 2019, but they should start to resume their upward trend in the second half of the year.
Days on Market
The average number of days it took to sell a home dropped three days compared to the same quarter of 2017.
- Thurston County joined King County as the tightest markets in Western Washington, with homes taking an average of 35 days to sell. There were eight counties that saw the length of time it took to sell a home drop compared to the same period a year ago. Market time rose in five counties and was unchanged in two.
Across the entire region, it took an average of 51 days to sell a home in the fourth quarter of 2018. This is down from 54 days in the fourth quarter of 2017 but up by 12 days when compared to the third quarter of 2018.
I suggested in the third quarter Gardner Report that we should be prepared for days on market to increase, and that has proven to be accurate. I expect this trend will continue, but this is typical of a regional market that is moving back to becoming balanced.
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. I am continuing to move the needle toward buyers as price growth moderates and listing inventory continues to rise.
2019 will be the year that we get closer to having a more balanced housing market. Buyer and seller psychology will continue to be significant factors as home sellers remain optimistic about the value of their home, while buyers feel significantly less pressure to buy. Look for the first half of 2019 to be fairly slow as buyers sit on the sidelines waiting for price stability, but then I do expect to see a more buoyant second half of the year.
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.