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Hot Summer Reads
Welcome to the WBC Book Club, where your favorite Admins & Agents share our favorite books of the moment! From fictional adventures to inspiring true stories, you can find it all right here on the WBC blog. You may notice that the format of our book recs look a little different than most, but that’s because our team loves to stand out and provide an unparalleled experience in all aspects of our business. We hope you enjoy this summer edition of Literary Listings!
Malibu Rising by Taylor Jenkins Reid
Marketing Remarks: Embrace the easy-going vibe of the Southern California coast without sacrificing ultimate luxury. With a contemporary design and open concept layout, this beach house on the bluff is perfect for entertaining. This property is best known for being the site of the annual Riva Party, hosted by professional surfer, Nina Riva and her famous siblings. Just a few minutes’ walk to the beach, don’t miss the opportunity to call this beautiful Malibu oasis home!
Agent Remarks: Beautifully capturing the intricacies of family relationships and the profound effects of generational trauma, Malibu Rising tells the story of four siblings grappling with the cost of their own fame and the notoriety of their playboy father. The consequences of their choices come to a head on one summer night in 1983, where each must face uncomfortable truths that will alter the course of their lives forever. This book is the ultimate summer read, transporting you to the sunny beaches of California where you can’t help but get swept away by an intriguing cast of flawed, fiery characters.
Directions: Read the synopsis here!
Beautiful Ruins by Jess Walters
Marketing Remarks: Live la dolce vita in this remote and peaceful village on the coast! Nestled among the cliffs of Porto Vergogna, the Hotel Adequate View is an investor’s dream, a historic property that has played host to Hollywood stars and literary scions. Convert into individual units, renovate into a single-family residence or restore this pensione to its former glory – anything is possible for the right buyer.
Agents Remarks: While Beautiful Ruins evokes visions of limoncello and vespa rides on a summer day, it shines a harsh light on the perception of women and the toxic nature of the film industry as the golden age of Hollywood begins to crumble like the ruins of Italy. This book is hauntingly beautiful, a love letter to love itself. Within these pages, we encounter love in its varied forms, from the unrequited to the toxic to the complicated, all seen through the eyes of our unlikely hero, Pasquale.
Directions: Read the synopsis here!
Book Lovers by Emily Henry
Marketing Remarks: Looking to escape the hustle and bustle of city life? This quaint little hamlet is home to Goode’s Lily Cottage, a lovely two-bedroom farmhouse with recent updates & classic charm. Just a few miles from Main Street, you can visit all the sites that inspired Dusty Fielding’s bestselling novel, Once in a Lifetime, or sit on the front porch to enjoy the picturesque landscape. This property is perfect for year-round living or for use as a vacation rental – find your happily ever after in Sunshine Falls!
Agent Remarks: Book Lovers checks all the boxes for a light, summery beach read. A prickly editor and career-minded publicist butt heads until they inevitably find themselves having to work together on a new project – all while saving a local book store from financial ruin! It has all the makings of a classic Hallmark movie, but it’s intentionally cliché. This satire pokes fun at the rom-com formula without losing the heart that makes these stories so beloved. You can’t help but get drawn in by Nora and Charlie’s intense connection, especially as they both face difficult decisions as their careers and family dramas intersect.
Directions: Read the synopsis here!
We are always on the lookout for new book recommendations and would love to hear from you! Tag us on social media with your favorite beach reads and summer-time stories!
Instagram @windermerebellevuecommons
Twitter @WindermereBelle
Facebook @Bellevue Commons (Windermere)
Written by Makena Schoene
Real Estate Market Update – July 2023
WBC Designated Broker, Cortney Adams, offers a quick break-down of recent market stats for July 2023. Keep reading to learn more!
- Pendings in July slightly under performed the pending count from this time last year. This is not a shock since the months of inventory has not been above 1 month for at least 3 months. However, the difference wasn’t by much.
- Average Sold prices for July 2023 have steadily been creeping close to July 2022 numbers while many of the areas noted have surpassed last year’s prices.
- Closed sales are still lagging last year’s numbers by roughly 10-20% in most areas. There are several areas in the north King County that have seen a bit of a surge compared to July 2022 numbers.
- Active and New listings seem to be holding steady, which is good for prices, but bad for transaction counts. Internally we are seeing multiple offers on dialed in properties that are priced attractively. Some of these are selling for 5-10% above asking. Homes priced at the most recent comparable are tending to sit.
Gardner Report Q2 2023
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 your Windermere agent.
REGIONAL ECONOMIC OVERVIEW
As discussed in the first quarter Gardner Report, job growth continues to slow. Even though Western Washington added 54,391 new jobs over the past 12 months, which represented a decent growth rate of 2.3%, the slowdown in the creation of new jobs is palpable. The regional unemployment rate in May was 3.7%, which is marginally above the 3.4% of a year ago. As we enter the summer months, I have started to ponder the economic outlook for the balance of this year as well as looking ahead to 2024. Although many are still suggesting a looming recession, I remain unconvinced. However, if enough people expect to see an economic contraction, it can become a self-fulfilling prophecy, which has happened in the past!
WESTERN WASHINGTON HOME SALES
❱ In the second quarter of 2023, 14,997 homes sold. This was down 34.4% from the second quarter of 2022, but up 43.8% from the first quarter of 2023.
❱ The growth in quarter-over-quarter sales was due to the 21.7% increase in the number of homes for sale. While this is positive, it should be noted that inventory levels in the quarter were still 16% lower than a year ago.
❱ Sales fell across the board compared to the same quarter in 2022 but were up in all markets compared to the first quarter of 2023.
❱ Pending sales rose in all counties compared to the first quarter of this year, suggesting that sales in the upcoming quarter may show further improvement.
WESTERN WASHINGTON HOME PRICES
❱ Sale prices fell an average of 7.6% compared to the second quarter of 2022 but were 11.7% higher than in the first quarter of this year. The average home sale price was $773,343.
❱ Compared to the first quarter of this year, sale prices were higher in all counties except San Juan, which, as a small island county, is notorious for its extreme price swings.
❱ The year-over-year drop in sale prices was not a surprise given that the market was peaking due to rapidly rising mortgage rates. That said, prices in Lewis, Clallam, and Skagit counties exceeded those of a year ago.
❱ It was interesting to see list prices rising in all markets compared to the first quarter of the year. Even though inventory levels have risen, sellers still believe that they are in the driver’s seat.
MORTGAGE RATES
Although they were less erratic than the first quarter, mortgage rates unfortunately trended higher and ended the quarter above 7%. This was due to the short debt ceiling impasse, as well as several economic datasets that suggested the U.S. economy was not slowing at the speed required by the Federal Reserve.
While the June employment report showed fewer jobs created than earlier in the year, as well as downward revisions to prior gains, inflation has not sufficiently slowed. Until it does, rates cannot start to trend consistently lower. With the economy not slowing as fast as expected, I have adjusted my forecast: Rates will hold at current levels in third quarter and then start to trend lower through the fall. Although there are sure to be occasional spikes, my model now shows the 30-year fixed rate breaking below 6% next spring.
DAYS ON MARKET
❱ It took an average of 35 days for homes to sell in the second quarter. This was 20 more days than in the same quarter of 2022, but 21 fewer days compared to the first quarter of this year.
❱ Snohomish County became the tightest market in Western Washington, with homes taking an average of only 18 days to sell. Homes for sale in San Juan County took the longest time to sell at 81 days.
❱ All counties contained in this report saw average days on market rise from the same period in 2022. Market time fell across the board compared to the prior quarter.
❱ The greatest fall in days on market compared to the first quarter was in Clallam County, where market time fell 31 days. Also of note were Pierce, Thurston, and Whatcom counties, where market time fell 25 days.
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.
The increase in listing activity, while pleasing, still leaves the market short of inventory. Even with mortgage rates well above levels we’ve seen over the past few years, demand for homes still exceeds supply. Given that over 86% of homeowners with mortgages have an interest rate below 5% and more than a quarter have a rate at or below 3%, I see little incentive for them to sell if they don’t have to. This tells me that supply levels are unlikely to improve enough to meet demand until rates drop significantly.
With this supply-demand imbalance, it’s no surprise that prices are rising again following the decline in the second half of 2022. I expect prices to rise modestly as we move through the second half of 2023. Rising list and sale prices, shorter time on market, and higher pending and closed sales all offset higher mortgage rates. Given these factors, I have moved the needle in favor of sellers.
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.
5 Tips For Small Yards
Some of the best memories are the ones created right at home. From deep conversations over yummy meals to evenings spent with loved ones under the stars, the place we choose to call home plays an important role in creating opportunities for deeper connection. With summer now in full swing, you may want to enjoy the warm weather from the comfort of your own backyard, but not every outdoor space is created equal. For some homeowners, it can be quite a challenge to capitalize on a small yard, but luckily, there are plenty of tricks to help you create an enchanting oasis to enjoy all summer long!
Image Courtesy of NWMLS Listing – Janine Bolivar
Define Separate Zones
Designating areas for lounge or play can go a long way in making a small yard feel larger than it is. According to the Bob Vila blog, the key to a more spacious feeling is all in the organization; by utilizing outdoor rugs, pavers or strategically placed plantings, you can create zones for dining, relaxation, and activities. These little “destinations” give the allusion of endless possibilities, even when the square footage seems constraining.
Pro Tip: Introduce a water feature to help divide zones. If space allows, a fountain or small pond not only provides a lovely visual and auditory element, but the reflection of the sky in the water produces a mirroring effect which can help make a space feel larger.
Photo by Tile Merchant Ireland on Unsplash
Elevate Your Space
Depending on the size and layout of your yard, incorporating levels is a great way to add some depth. Elevated decks, sunken firepits, terraced garden beds – these methods can help take advantage of topographical elements that aren’t being utilized to their full advantage, such as hillsides. Elevation changes also work to help define spaces in your small yard. Bonus!
Pro Tip: Make sure there is adequate drainage! For terraced gardens, poor drainage can lead to foundation rot and mold, so be sure to contact a professional to make sure you are using the right materials for your retaining walls and that the drainage is properly diverted.
Photo by islandworks via pixabay
Form & Function
Picking the right outdoor furniture is about more than just aesthetics. When working in a small yard, it is essential for pieces to pull their weight. This means that versatility is your best friend, where benches can double as storage bins and furniture can be easily folded away when not in use.
Pro Tip: Pick furniture that has a see-through pattern. Open backed chairs and glass tabletops allow the eye to travel further through the furniture, giving the allusion of more space. HGTV recommends investing in a simple bistro set of table and chairs; the slim profile and classic design are a perfect addition to any small garden.
Photo by Cee on Unsplash
Embrace the Curves
While straight lines and block patterns work for some yards, curves are the perfect way to maximize a small yard. Curved flower beds and winding garden paths lend a sense of movement to a seemingly static environment and can make short distances seem longer.
Pro Tip: Let’s meander! Paths that wind out of sight lend a sense of mystery, like an unexplored destination awaits just around the bend. Bonus points if you include a little visual treat at the end of the path – a little reflection pool or statue are always crowd pleasers.
Photo by Mark Neal from Pexels
Vertical Gardening
If you love plants but are short on space, then vertical gardening is the hack for you! Hanging plants draw the eye upwards without taking up valuable yard space, utilizing fences, pergolas, walls – the sky is the limit to where you can show off your plant babies. “Vertical gardening can also save on water usage”, says Carrie Spoonemore of Park Seed, “because water dripping form the top layer will also water plants below”.
Pro Tip: Many plants will thrive in a vertical garden but try to avoid perennials or vegetables with a deep root system, like tomatoes. Herbs and leafy greens, however, are great contenders for a successful vertical garden!
Bonus Tips
Water features don’t have to be big to make a splash! Invest in a small fountain that can be easily tucked away in a secluded corner or act as a centerpiece of your table.
Nothing says summer nights like gathering around a firepit under the stars. If your yard can’t support a full-sized fire pit, don’t despair! There are plenty of tabletop fireplaces alternatives that can create the cozy ambiance on a more manageable scale.
Don’t let square footage keep you from creating a summer destination right in your own backyard! There are so many tips for maximizing space in your small yard, (check out our Home Hacks board on Pinterest for even more inspiration) and we would love to hear some of yours! Just tag us on socials with your favorite #homehack and get started creating the ultimate summer getaway right at home.
Instagram @windermerebellevuecommons
Twitter @WindermereBelle
Facebook @Bellevue Commons (Windermere)
Written by Makena Schoene
Featured Image Source: NWMLS Listing Courtesy of Janine Bolivar
Local Market Update – July 2023
This summer’s local housing market is seeing low inventory feed higher prices, putting the squeeze on would-be buyers. June is typically the month where home prices reach their apex, and last month was no exception as King and Snohomish counties’ prices neared the peaks seen during the sugar high of the pandemic market.
Approximately 80% of recent transactions have been in the more affordable and mid-price ranges, which are nearly sold-out at the moment. Because of this, multiple offers and offers over list price were more prevalent in June’s closed home sales than at any other point this year.
Windermere’s Chief Economist Matthew Gardner addressed the inventory shortfall. “The number of homes for sale in the Central Puget Sound area in June was down 48% from the same month in 2019 (pre-pandemic),” he said. “I believe much of the reason for this is that almost 33% of in-state homeowners have mortgage rates at or below 3%, and 87% of owners have rates below 5%. There is little incentive to list your home for sale if you don’t have to.”
In King County, the median sold price for a single-family home landed at $935,000 in June. This is just a notch below the median price of $938,225 in June 2022. The scarce inventory has caused buyers to compete more aggressively and sellers to list higher, thus leading to comparable peaks as the pandemic market in summer 2022. Likewise, condos were up from $525,000 June 2022 to a median of $529,975 last month.
In Seattle, June’s median sold price for a single-family home was $930,000, down 7% from June 2022. Condo prices in the city were up year-over-year, with a median price of $550,000—an increase from $538,700 last June. This jump could be due in part to rising residential prices pushing some buyers into the more affordable condo market.
The Eastside, meanwhile, is seeing sales activity slow because of extremely limited supply. The level of new inventory coming onto the market is just 44% of the 10-year average. As a result, median prices have held strong. In June, the median sold price for an Eastside single-family home was $1,450,000, barely off last June’s mark of $1,500,000.
In Snohomish County, the median price for a single-family home last month was $774,975, down from $799,950 in June 2022. Condos actually saw a year-over-year price increase, from $500,000 last June to a median of $506,000 last month. The strength of Snohomish County condo prices is likely tethered to low inventory—there is just over a two week-supply of condo units in the area.
Economist Matthew Gardner notes that “Sale prices in King and Snohomish counties rose for the fifth consecutive month and are only modestly lower than a year ago. It will be interesting to see if this trend can continue given the stubbornly high mortgage rates.”
Despite the high interest rates and scant supply, buyers who are educated on the market and working with a trusted broker should be able to navigate these changing market conditions. For more information on how you can make the most of your real estate endeavors, reach out to your Windermere broker.
EASTSIDE
KING COUNTY
SEATTLE
SNOHOMISH COUNTY
VIEW FULL SNOHOMISH COUNTY REPORT
This post originally appeared on GetTheWReport.com.
Turnkey vs. Fixer-Upper: Pros and Cons
This article originally appears on the Windermere Real Estate Blog, here.
Written by Sandy Dodge
The beauty of real estate is that different properties satisfy different needs. Although single-family homes are great for putting down roots, that may not be your motivation for purchasing your next home. If you’re looking to buy a property with the intent of renting it, both turnkey and fixer-upper listings will cross your path during your home search. The main difference between the two is the condition of the property when you buy it. The right one for you depends on your needs as a homeowner and your goals as a landlord.
What is a turnkey property?
Turnkey properties are move-in ready from day one, which means they’re ready for you to rent them out immediately. Whether it’s a new construction home or a recently remodeled listing, these properties are in tip-top shape when they hit the market. Companies that specialize in renovating and selling these properties may also offer property management services, which may appeal to you if you’re looking for a more hands-off approach to managing your investment property.
What does fixer-upper mean in real estate?
Compared to turnkey listings, fixer-uppers are on the opposite end of the investment property spectrum. Buying a fixer-upper means you’re purchasing a home that needs repairs, remodeling, and some major TLC before it’s ready to rent out. These properties are diamonds in the rough; you’re betting on your ability to make high ROI home upgrades that will attract future renters and put money in your pocket.
Image Source: Getty Images – Image Credit: StefaNikolic
Turnkey vs. Fixer-Upper: Pros and Cons
Turnkey Pros
Because they are move-in ready, turnkey listings have the potential to generate cash flow right away. Without any pending renovations in your way, you can open up the property to renters as soon as you take possession. They’re primed and ready to place in the hands of a property management company, which means you’ll get passive income without having to deal with day-to-day operational tasks. You can also ask the listing agent for permission to use their photos, which can help your rental stand out amongst the competition in your area.
Turnkey Cons
So, what’s the catch? These benefits all come at a cost; turnkey properties typically cost more than fixer-uppers. You’ll pay a premium for the pristine condition and the buttoned-up appearance of these properties, so it’s important to have a strategy to save money for your home purchase. Also, handing off property management duties to a third party means you’ll have less control over the renting process. For more information on whether hiring a property management company is right for you, read the following blog post:
Fixer-Upper Pros
Searching for homes in less-than-pristine condition can give you a leg up as a buyer. Fixer-upper homes tend to have less competition from buyers than turnkey properties, since not everyone is willing to take on a major remodeling project. Talk to your agent about how to make the best offer. Given their lessened condition, you can oftentimes get a great deal on these homes with the right strategy. And the best part is, your remodeling efforts will increase the home’s value over time. The more effort you put in, the more the property will be worth, which means higher ROI potential.
Fixer-Upper Cons
Here’s the downside with fixer-uppers: tapping into their potential requires pouring money into the property. Exactly how much you can expect to spend on a fixer-upper varies by location, the size of the home, and the scope of repairs and renovations needed. Tackling some remodeling projects DIY can save you money, but if certain projects require more skilled hands, it may be best to hire a professional. And for all your planning, it’s impossible to predict the future. Projects may go over budget, material costs may rise, and the market may look completely different when you’re ready to rent out your property than it did when you bought it. For more information on buying a fixer-upper and the special financing options available to you, read the following blog post:
Your real estate agent is your greatest asset in helping you determine which property type is right for you. Connect with a local Windermere agent to see which turnkey and fixer-upper properties are available in your area.
Featured Image Source: Getty Images – Image Credit: hikesterson
Local Market Update – June 2023
The more frenetic activity of a typical spring real estate market has certainly hit our area, with buyers out in droves looking for homes. What they’ve found, however, is high competition and scant listings. The region’s low housing inventory has been a constraint that has resulted in fewer closed sales than we’ve seen in recent spring markets.
According to real estate experts, housing supply and interest rates are the defining obstacles for buyers at the moment. On the Eastside, active inventory is only 32% of the 10-year average, and new listings are off 34% year-to-date. This is driving prices up, while interest rates put a damper on what buyers can afford. While recent demand has been strong, experts expect that demand will taper off as interest rates approach the 7% mark.
Because inventory is so scant, however, sellers who adequately price their homes are seeing success in this market. As an example, around 44% of properties on the Eastside are selling above their asking price, at an average of 5% over list. Anecdotally, the homeowners who are most likely to sell at the moment are those who purchased before the historic low interest rates of the pandemic or have paid off their homes and are thus mortgage-free. Buyers in this market have some negotiating power as well, having successfully negotiated pre-inspections, homeowner warranties and seller-paid closing costs to mitigate the high rates.
In King County, with just shy of one month’s inventory, competition in the area is fierce and buyers will need to be ready to negotiate when the right listing comes along. The county’s median sold price for a single family home dropped almost 9% year-over-year, from $998,888 in May 2022 to $910,000 this year. However, that’s still an increase from April’s median of $875,000.
Seattle had similar low inventory, at one month’s supply. The median sold price for single-family homes rose from $886,000 in April to $905,125 last month. While there’s been continued monthly price growth so far this year, May’s median sold price was still down 11.7% from the median of $1,025,500 in May 2022. Although residential inventory is tight, buyers in the city may have more luck with condos, which are both more affordable and more plentiful at the moment. The Seattle condo market currently has almost two months of inventory, and a more reasonable median price of $550,000.
Like Seattle, the Eastside has just one month of inventory at the moment. However, higher interest rates are being felt a little more in this pricier area, as May’s median sold price for a single-family home did not change from April’s median of $1,450,000. This is down 8.8% from the median of $1,590,000 in May 2022. The supply of Eastside condos is lower than the residential supply, with just .8 month’s inventory. At a median sold price of $582,000 last month, condos may be a slightly easier path to homeownership for those searching on the Eastside.
Finally, Snohomish County saw month-over-month price gains in May, landing at a median sold price of $780,000 for a single-family home, up from $767,500 in April. May’s median price was down 8% from $782,000 in May 2022. The county’s more affordable price points may allow for better appreciation in the area, despite the continued higher interest rates that have stifled other local markets. With just two weeks of inventory, the Snohomish County condo market is the tightest regional market at the moment. The median price for condos in the area is $544,900, down less than 1% from $550,000 in May 2022.
As buyers and sellers navigate continued low inventory and high interest rates, they both must be comfortable negotiating terms to achieve the best possible outcome. Buyers should be ready to move fast and bring as much cash to the table as they can, while sellers should be cognizant of the burden higher rates can create and price their listings accordingly.
If you have questions about these housing market trends or real estate in general, please reach out to your Windermere broker.
EASTSIDE
KING COUNTY
SEATTLE
SNOHOMISH COUNTY
VIEW FULL SNOHOMISH COUNTY REPORT
This post originally appeared on GetTheWReport.com.
Local Market Update – May 2023
As the weather warms, so too does our real estate market, it seems. With dwindling inventory and climbing prices, the housing market is on an upswing, even if it’s a small one. This places sellers back in the driver’s seat, with buyers forced to compete against multiple offers and in the face of higher interest rates than last spring.
The evidence for the market’s positive growth can be found in higher median closed sales prices, an increased percentage of multiple offers and a higher median percentage paid above the original asking price. The primary constraint on the market at this point is a lower number of active listings. Many sellers are reluctant to part with their historically low interest rates from the pandemic years, and with volatile interest rates it’s an understandable predicament.
The lower number of available homes on the market has contributed to rising prices as buyers compete for a limited pool of properties. This trend often leads to multiple offers and bidding wars, further driving up prices.
For those buyers who do decide to jump into the fray, interest rates remain a key factor in determining their buying power. For the last few months, activity in the market has ticked up when rates dip, but some buyers are willing to face higher interest rates with the plan of refinancing when rates settle.
Even with that in mind, interest rates can have a huge impact on a buyer’s price bracket. For example, the median Seattle home price has declined by about 13% ($133,950) year-over-year. However, the increase in interest rates has offset this reduction. As a result, the median monthly mortgage payment remains around $5,507, which is comparable to the payment amount from a year ago — despite a lower median sold price.
Although home prices in our region may be lower year-over-year, prices have generally been increasing each month this year. In King County, April’s median single-family home price was $875,000. That’s down 12.6% from last April’s $995,000, but up from a median of $840,000 in March. A single month of available inventory means competition for homes is tight throughout the county.
In Seattle, April’s median price for a single family home was $886,000 — down quite a bit from the same month last year, when the median price was $1,019,950. However, prices were up from a median of $869,975 in March, and low inventory of just over a month’s supply means demand is still high and prices are likely to keep inching upward. Condo prices in the city were actually up year-over-year, with a median sold price of $539,000 in April, compared to $512,500 in April 2022.
The Eastside also saw month-over-month price growth in April, with the median price for a single-family home landing at $1,450,000. This is up from $1,411,500 in March. Despite a 15% decrease in year-over-year prices, the current monthly price growth trend is notable. It’s likely we will not see the exponential price increases of the pandemic again anytime soon, making slow, steady growth the norm once again. The Eastside also has about one month of inventory for single-family homes, making it once again a competitive market.
Finally, Snohomish County saw month-over-month price growth in April as well. The median price of a single family home was $767,500, up from $724,000 in March. With less than one month of available inventory, the housing market in Snohomish County is trending warm-to-hot. Condos in the county had the tightest inventory of any market, with less than two weeks’ supply. That combined with April’s median sold price of $544,900 makes the Snohomish County condo market a competitive market for buyers to break into.
If you have questions about these housing market trends or real estate in general, please reach out to your Windermere broker.
EASTSIDE
KING COUNTY
SEATTLE
SNOHOMISH COUNTY
VIEW FULL SNOHOMISH COUNTY REPORT
This post originally appeared on GetTheWReport.com.
Gardner Report Q1 2023
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 your Windermere agent.
REGIONAL ECONOMIC OVERVIEW
The pace of employment growth in Western Washington continues to slow. The region added only 90,340 new jobs over the past 12 months. That said, the annual pace of employment growth was a respectable 3.6%. Three counties have not recovered completely from their pandemic job losses: Whatcom, Skagit, and Snohomish. However they are short by just under 10,000 jobs, which should be recovered by this fall. Regionally, the unemployment rate in February was 4.1%, which was marginally above the 3.8% level of a year ago. The employment outlook has improved modestly, with the likelihood of a recession in 2023 down to about 50%. That said, I expect the pace of job growth to continue to slow as businesses remain concerned about a contraction in consumer spending, as well as facing tighter credit conditions following recent bank failures.
WESTERN WASHINGTON HOME SALES
❱ In the first quarter of the year, 10,335 homes sold. This was down 30.9% from the same period in 2022 and 18.9% lower than in the fourth quarter of 2022.
❱ Lower sales activity was more a function of the limited number of homes for sale than anything else. Listing activity in the first quarter of 2023 was down 43% from the final quarter of 2022.
❱ Home sales fell across the board compared to the same quarter of last year and were lower in every county compared to the final quarter of 2022.
❱ Pending sales rose in all but three counties compared to the fourth quarter of 2022. This suggests that sales in the second quarter of the year may tick higher. That said, the region is in dire need of more inventory.
WESTERN WASHINGTON HOME PRICES
❱ Home prices fell an average of 6.9% compared to the first quarter of 2022 and were 1.3% lower than in the fourth quarter of 2022. The average home sale price in the first quarter of 2023 was $692,866.
❱ Compared to the fourth quarter of 2022, prices were higher in Kitsap, Skagit, Lewis, San Juan, and Whatcom counties.
❱ Even though prices fell in the region, five counties saw sale prices rise very modestly from the first quarter of 2023.
❱ It’s worth noting that median listing prices rose in all but two markets compared to the previous quarter. This suggests that sellers are getting a little more comfortable with the market. If listing prices continue to rise, one can surmise that home prices will follow suit.
MORTGAGE RATES
❱ Rates in the first quarter of 2023 were far less volatile than last year, even with the brief but significant impact of early March’s banking crisis. It appears that buyers are jumping in when rates dip, which was the case in mid-January and again in early February.
❱ Even with the March Consumer Price Index report showing inflation slowing, I still expect the Federal Reserve to raise short-term rates one more time following their May meeting before pausing rate increases. This should be the catalyst that allows mortgage rates to start trending lower at a more consistent pace than we have seen so far this year. My current forecast is that rates will continue to move lower with occasional spikes, and that they will hold below 6% in the second half of this year.
DAYS ON MARKET
❱ It took an average of 56 days for a home to sell in the first quarter of this year. This was 32 more days than in the same quarter of 2022 and 16 days more than in the fourth quarter of last year.
❱ King County remains the tightest market in Western Washington, with homes taking an average of 41 days to sell. Homes in San Juan County took the longest time to sell.
❱ Market time rose in all counties contained in this report compared to the same period in 2022 and compared to the fourth quarter.
❱ The greatest increase in market time compared to a year ago was in Grays Harbor County, where it took an average of 41 more days for homes to sell. Grays Harbor County also saw the greatest increase in market time compared to the final quarter of 2022 (from 46 to 76 days).
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
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.
Although the regional economy is still expanding, it continues to show signs of slowing. With the probability of a national recession this year now fifty-fifty, I do not see any reason for buyers to lose confidence in their housing decisions based purely on economic factors. Sellers appear to be a little more confident in the market as demonstrated by rising listing prices. Periods of lower mortgage rates and the lack of homes for sale are both likely contributors to this. Whatever the case may be, I am not seeing any signs of panic in the market.
Even in the face of higher financing costs, low inventory levels support home values, and the data suggests that the worst of the price declines are now behind us. The region had fewer sales, modestly lower prices, and higher average days on market, all of which favor home buyers. However, lower inventory levels, higher pending sales, higher listing prices, and a higher absorption rate of homes that are for sale favor sellers. As such, I am moving the needle towards a balanced market, but one that ever so slightly favors sellers.
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.
Local Market Update – April 2023
Spring has truly arrived in our region, with longer days and blooming cherry blossoms. Along with these harbingers of the season, the pace of the local real estate market has also picked up, indicating that the spring market is finally here. An uptick in new listings and price gains in the last month demonstrates a typical seasonal pattern, and buyers and sellers are adjusting their strategies accordingly.
According to Windermere’s Chief Economist Matthew Gardner, the total inventory in King, Snohomish and Pierce counties grew over 14% from February. However, the number of homes for sale in the tri-county area was down about 40% when compared to pre-pandemic stats from March 2019. This gives sellers the advantage when it comes to setting prices for their listings.
Gardner noted this as well. “Despite the growing number of available homes for sale, sellers in King County are holding firm, with listing prices increasing by over 5% compared to February. In Snohomish County, listing prices were up just shy of 5%,” he said.
While the monthly increase in listings is good news for buyers, fluctuating interest rates and steadfast prices from sellers mean some borrowers are getting creative with their financing. Bridge loans, home equity loans and purchases contingent on the sale of the buyer’s previous home are coming back into circulation.
These factors and more are that buyers are eager to take advantage of the market when interest rates dip down to more comfortable levels. As rates continue to fluctuate and gradually level off, prices may once again become the major determining factor for which listing a buyer may pursue.
In King County, the median price for a single-family home rose about 4.8% from $800,000 in February to $840,000 last month. While that’s still down 9.68% from the median price of $930,000 in March 2022, steady price growth in the face of higher interest rates is certainly notable. With about one month of inventory, the ball is still in the sellers’ court, despite lower year-over-year prices.
Seattle followed a similar pattern. The median price for single-family homes dropped 10.3% from $970,000 in March 2022 to $869,975 last month. However, that’s an increase of over 5% from February’s median price of $825,000. The condo market saw year-over-year gains of 4.9%, increasing from a median price of $510,025 in March 2022 to $535,000 last month. The residential market still had relatively tight inventory at about 1.1 month’s supply. However, when compared to the scant .3 month’s supply of March 2022, buyers seem to have their pick of listings.
The Eastside saw the greatest year-over-year price decrease, which is to be expected considering the already high price point of the area. While the median single-family home price decreased almost 17% from $1,700,000 in March 2022 to $1,411,500 last month, the area did see monthly gains; the median price increased just over 5% from $1,340,000 in February. Condos in the area also had monthly increases, from a median price of $540,000 in February to $585,000 last month.
Snohomish County — while still more affordable than its neighbors — was also up compared to February. Last month, the median price for single family homes in the area was $724,000, up from $690,560 in February. The area had the smallest relative year-over-year price decrease of 9.5%, coming down from a median of $800,000 in March 2022. With just .8 months of inventory, Snohomish is still a desirable area for buyers looking to get the most bang for their buck.
Over the last few weeks, tapering interest rates have brought buyers back to the market, but low inventory remains a key challenge for prospective buyers moving forward. If you’d like to learn more about what these market conditions mean for you, please reach out to your Windermere broker.
EASTSIDE
KING COUNTY
SEATTLE
SNOHOMISH COUNTY
VIEW FULL SNOHOMISH COUNTY REPORT
This post originally appeared on GetTheWReport.com.
