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Western Washington Real Estate Market Update
OVERVIEW of Western Washington Real Estate Market
Here is a detailed overview of Western Washington Real Estate Market. Washington State finished the year on a high with jobs continuing to be added across the market. Additionally, we are seeing decent growth in the area’s smaller markets, which have not benefited from the same robust growth as the larger metropolitan markets.
Unemployment rates throughout the region continue to drop and the levels in the central Puget Sound region suggest that we are at full employment. In the coming year, I anticipate that we will see substantial income growth as companies look to recruit new talent and keep existing employees happy.
HOME SALES ACTIVITY
- There were 19,745 home sales during the fourth quarter of 2016—up by a very impressive 13.4% from the same period in 2015, but 18.7% below the total number of sales seen in the third quarter of the year. (This is a function of seasonality and no cause for concern.)
- Sales in Clallam County grew at the fastest rate over the past 12 months, with home sales up by 47%. There were also impressive sales increases in Grays Harbor and Thurston Counties. Jefferson County had a fairly modest decrease in sales.
- The number of available listings continues to remain well below historic averages. The total number of homes for sale in the fourth quarter was down by 13.7% compared to the same period a year ago.
- The key takeaway from this data is that 2017 will continue to be a seller’s market. We should see some improvement in listing activity, but it is highly likely that demand will exceed supply for another year.
HOME PRICES
- Demand continued to exceed supply in the final three months of 2016 and this caused home prices to continue to rise. In the fourth quarter, average prices rose by 7.1% but were 0.4% higher than the third quarter of the year. The region’s average sales price is now $414,110.
- In most parts of the region, home prices are well above historic highs and continue to trend upward.
- When compared to the fourth quarter of 2015, price growth was most pronounced in Kittitas County. In total, there were eight counties where annual price growth exceeded 10%. We saw a drop in sales prices in the notoriously volatile San Juan County.
- The aggressive home price growth that we’ve experienced in recent years should start to taper in 2017, but prices will continue to increase at rates that are higher than historic averages.
DAYS ON MARKET
- The average number of days it took to sell a home in the fourth quarter dropped by 15 days when compared to the fourth quarter of 2015.
- King County was the only area where it took less than a month to sell a home, but all markets saw decent improvement in the time it took to sell a home when compared to a year ago.
- In the final quarter of the year, it took an average of 64 days to sell a home. This is down from the 78 days it took in the third quarter of 2015, but up from the 52 days it took in the third quarter of 2016. (This is due to seasonality and not a cause for concern.)
- We may experience a modest increase in the time it takes to sell a home in 2017, but only if there is a rapid increase in listings, which is certainly not a given.
CONCLUSIONS
This speedometer reflects the state of the region’s housing market using housing inventory, price gains, sales velocities, interest rates, and larger economic factors. For the fourth quarter of 2016, I actually moved the needle a little more in favor of buyers, but this is purely a function of the increase in interest rates that was seen after the election. Higher borrowing costs mean that buyers can afford less, which could ultimately put some modest downward pressure on home prices in 2017. That said, the region will still strongly favor sellers in the coming year.
This article were first Posted on windermere.com by Matthew Gardner, Chief Economist, Windermere Real Estate
2017 New Year’s Resolutions
Happy New Year Everyone! Here is our 2017 New Year’s Resolutions:
How to be safe during the Holidays
With all the cheer and celebration at this time of year, it’s hard to believe anything bad could happen. However, statistics show there’s a significant increase in home-related accidents, fires, and burglaries around the holidays. To protect your family, friends and property, heed these six suggestions:
- Keep walkways, driveways and decks free of slippery ice or moss.
- Have your fireplace professionally cleaned, and only use one artificial log at a time.
- Check the batteries in all smoke detectors and make sure a working fire extinguisher is located on every floor, as well as the kitchen and garage.
- Snuff out any candles before leaving the room (even for a short while), and make sure to always keep them in short holders with wide bases so they don’t fall over.
- For holiday lights: Only use outdoor lights / extension cords in the outdoors, and plug them into GFCI protected outlets; make sure all lights are UL-approved; know that the smaller bulbs are safer; never leave them on when you’re not home.
- Plug a few lamps and the TV or stereo into timers to make it appear someone is home while you’re away. Also, ask a neighbor to park their car in your driveway, pick up any mail and keep an eye out for any suspicious activity.
Making the extra effort to keep your home safe will always be the best gift you could give family, friends and other visitors.
First Posted in Living by Tara Sharp
Our Brokers Care!
We have the best real estate agents in our office! Thanks to our generous agents, we collected $3,700 to buy new toys and clothes for kids supported by Hopelink.
Each holiday season, Hopelink, the largest non-profit organization in Washington State, transforms its food banks into holiday gift rooms, offering new toys and new clothing to children in need.
Hopelink serves more than 64,000 homeless and low-income families, children, seniors and people with disabilities in north and east King County; providing stability and helping people gain the skills and knowledge they need to exit poverty for good.
Hopelink also provides transportation services throughout King and Snohomish Counties. With service centers in Redmond, Bellevue, Kirkland, Shoreline and Sno-Valley.
King & Snohomish County Market Stats – November 2016
What’s Happening In The Market
While we have seen a typical slowdown in transaction side during the holiday’s it is still very active and pricing seems to be holding steady during this last quarter. While the political landscape has caused some uncertainty in many markets around the country it does not appear to have affected ours up to this point. Interest rates having risen ½ point over the past couple weeks have caused some to start thinking about making a move now vs. later. Buyers having lost more than 5% of their buying power due to the rate hike rightfully have concerns about them continuing to rise.
Single Family Homes Market Stats
Condominiums Market Stats
How to get your real estate license in Washington State
The real estate profession has expanded and offers one of the widest career selections in the business world today. A career in real estate provides flexibility and freedom to set your own pace. Income directly reflects your efforts, with no limits on what astute, hard-working men and women can earn. Successful people in real estate are goal-oriented, persevering, self-motivated, ambitious and people-oriented. The rewards of a real estate career are a potential for high earnings, status in the community, autonomy, time freedom, helping people, the intellectual challenge and the satisfaction from those accomplishments.
If you think real estate is right for you, here is the requirements and steps you need to take to get your real estate license in Washington State.
Requirements
To qualify for a broker’s license, you must:
- Be at least 18 years old.
- Have a high school diploma or equivalent.
- Successfully complete 90 hours of approved real estate education within 2 years before applying for the exam. This education must include:
- A 60-hour course in Real Estate Fundamentals.
- A 30-hour course in Real Estate Practices.
- Pass the broker’s exam.
Study for broker’s exam
You need to complete 90 hours of real estate education before taking your broker’s exam. Included in this 90 hours is a 60-hour course in Real Estate Fundamentals which provides an overview of the theoretical and practical aspects of real estate. Another included course is Real Estate Practices which is 30 hours and provides an overview of the practical, day-to-day aspects of the real estate business. It teaches the essential skills that Washington real estate agents must master, including: working with clients, pricing property, complying with fair housing laws, filling out necessary agreements, handling offers and counteroffers, prequalifying buyers, and guiding transactions through the closing process.
To complete your education, you can choose from a variety of online and class based schools. Here is our recommendations in the state of Washington.
| 1- Windermere Professional Development | Cost: $399 | windermereu.com |
| 2- Rockwell Institute | Cost: $489 | rockwellinstitute.com |
Schedule your broker’s exam 
Before you complete your course, you must register as a student with DOL testing vendor, Applied Measurements Professionals, Inc. (AMP), so your school can submit your course completion information electronically. To register as a student with AMP click here and follow the instructions.
- Your school must submit your course completions to AMP electronically to complete the examination registration process.
- After your school submits your education information to AMP, schedule your exam online, by phone, or by mail. To schedule online: Go to www.goAMP.com.
For more information visit dol.wa.gov.
Apply for your Washington Real Estate Broker License
- Complete the Real Estate License Application form.
- Submit your completed application with a check or money order for the fee ($138.25 as of Nov. 2016), payable to the Department of Licensing, to:
Real Estate Licensing
Department of Licensing
PO Box 3917
Seattle, WA 98124-3917 - Submit fingerprints for state and national background checks.
- Inside Washington:
- Go to www.identogo.com to schedule an appointment through MorphoTrust, DOL’s electronic fingerprinting vendor. You will pay IdentoGO for taking your fingerprints and for the background checks required for your license type.
- Outside Washington:
- Call Real Estate Regulatory at 360.664.6484 for fingerprint card submission instructions.
- For more details, see Fingerprinting and background checks.
- Inside Washington:
We wish you good luck in the process. Please don’t hesitate to contact us, should you have any questions or need any further information.
Sources: dol.wa.gov, realtor.org, rockwellinstitute.com, amazon.com
Garden d’Lights 2016 at the Bellevue Botanical Garden
Original Post on Bellevue.com.
Location: Bellevue Botanical Garden
12001 Main Street, Bellevue 98005
November 26, 2016 – December 31, 2016
Every evening from 4:30 PM – 9:30 PM
THE LIGHTS ARE BRIGHTER THAN EVER!
The Bellevue Botanical Garden becomes a brilliant winter wonderland, transformed by thousands of colorful, tiny twinkling lights. Garden d’Lights has become a holiday tradition for families and groups around the northwest. So go and enjoy the dazzling magic of Garden d’Lights.
Garden d’Lights runs from Saturday, November 26, 2016 through Saturday, December 31, 2017 every evening from 4:30 – 9:30pm (last entry at 9pm), including holidays.
This year, the event is bigger, better, and brighter than ever! Expect to see both exciting new additions and long-time favorites, as well as a new and improved route through the light displays. Also new this year is a ticket booth to make entry into the event quick and easy. To avoid long lines and crowds, it is more important than ever to visit early in the season, early in the week, and early in the evening.
Visit Garden d’Lights for more information and details. Garden d’Lights is brought to you by the Bellevue Botanical Garden Society and Bellevue Parks and Community Services.
Top 5 Tips for Selling Your Home During the Holidays
Posted in hgtv.com.
Attract homebuyers even during the holidays with these useful tips.
The holiday season from November through January is often considered the worst time to put a home on the market. While the thought of selling your home during the winter months may dampen your holiday spirit, the season does have its advantages: holiday buyers tend to be more serious and competition is less fierce with fewer homes being actively marketed. First, decide if you really need to sell. Really. Once you’ve committed to the challenge, don your gay apparel and follow these tips from Front Door.
Original Photo on melaniekramerrealtor.com
1. Deck the halls, but don’t go overboard.
Homes often look their best during the holidays, but sellers should be careful not to overdo it on the decor. Adornments that are too large or too many can crowd your home and distract buyers. Also, avoid offending buyers by opting for general fall and winter decorations rather than items with religious themes.
Original Photo on 2ladiesandachair.com
2. Hire a reliable real estate agent.
That means someone who will work hard for you and won’t disappear during Thanksgiving, Christmas or New Year’s. Our agents in Windermere Bellevue Commons are committed to you 100%, no matter which season we’re in.
3. Make curb appeal a top priority.
When autumn rolls around and the trees start to lose their leaves, maintaining the exterior of your home becomes even more important. Bare trees equal a more exposed home, so touch up the paint, clean the gutters and spruce up the yard. Keep buyers’ safety in mind as well by making sure stairs and walkways are free of snow, ice and leaves.
Original Photo on burchetthomes.com
4. Give house hunters a place to escape from the cold.
Make your home feel cozy and inviting during showings by cranking up the heat, playing soft classical music and offering homemade holiday treats. When you encourage buyers to spend more time in your home, you also give them more time to admire its best features.
5. Relax — the new year is just around the corner.
The holidays are stressful enough with gifts to buy, dinners to prepare and relatives to entertain. Take a moment to remind yourself that if you don’t sell now, there’s always next year, which, luckily, is only a few days away.
The Trump effect. How will it impact the US economy and housing?
The American people have spoken and they have elected Donald J. Trump as the 45th president of the United States. Change was clearly demanded, and change is what we will have.
The election was a shock for many, especially on the West Coast where we have not been overly affected by the long-term loss in US manufacturing or stagnant wage growth of the past decade. But the votes are in and a new era is ahead of us. So, what does this mean for the housing market?
First and foremost I would say that we should all take a deep breath. In a similar fashion to the UK’s “Brexit”, there will be a “whiplash” effect, as was seen in overnight trading across the globe. However, at least in the US, equity markets have calmed as they start to take a closer look at what a Trump presidency will mean.
On a macro level, I would start by stating that political rhetoric and hyperbole do not necessarily translate into policy. That is the most important message that I want to get across. I consider it highly unlikely that many of the statements regarding trade protectionism will actually go into effect. It will be very important for President Trump to tone down his platform on renegotiating trade agreements and imposing tariffs on China. I also deem it highly unlikely that a 1,000-mile wall will actually get built.
It is crucial that some of the more inflammatory statements that President-Elect Trump has made be toned down or markets will react negatively. However, what is of greater concern to me is that neither candidate really approached questions regarding housing with any granularity. There was little-to-no-discussion regarding housing finance reform, so I will be watching this topic very closely over the coming months.
As far as the housing market is concerned, it is really too early to make any definitive comment. That said, Trump ran on a platform of deregulation and this could actually bode well for real estate. It might allow banks the freedom to lend more, which in turn, could further energize the market as more buyers may qualify for home loans.
Concerns over rising interest rates may also be overstated. As history tells us, during times of uncertainty we tend to put more money into bonds. If this holds true, then we may see a longer-than-expected period of below-average rates. Today’s uptick in bond yields is likely just temporary.
Proposed infrastructure spending could boost employment and wages, which again, would be a positive for housing markets. Furthermore, easing land use regulations has the potential to begin addressing the problem of housing affordability across many of our nation’s housing markets – specifically on the West Coast.
Economies do not like uncertainty. In the near-term we may see a temporary lull in the US economy, as well as the housing market, as we analyze what a Trump presidency really means. But at the present time, I do not see any substantive cause for panic in the housing sector.
We are a resilient nation, and as long as we continue to have checks-and balances, I have confidence that we will endure any period of uncertainty and come out stronger.
Matthew Gardner is the Chief Economist for Windermere Real Estate, specializing in residential market analysis, commercial/industrial market analysis, financial analysis, and land use and regional economics. He is the former Principal of Gardner Economics, and has over 25 years of professional experience both in the U.S. and U.K.
This article originally appeared on the Windermere.com blog.
King & Snohomish County Market Stats – October 2016
What’s Happening In The Market
The Home Prices and Days On Market are holding steady since September. By all appearances we should see the remainder of 2016 remain somewhat uneventful with limited inventory and sales keeping pace with what’s coming on the market.
