LOCAL MARKET UPDATE – FEBRUARY 2020

New jobs and low interest rates continue to fuel the housing market boom. While January is traditionally a slower month for activity, the new year saw steady buyer demand. With the number of sales exceeding new listings, all indicators point to a strong spring market.

The tech industry on the Eastside continues to grow rapidly. Microsoft and Alibaba both have significant expansions underway. Amazon expects to increase its workforce in Bellevue to 15,000 in the next few years, a sevenfold increase from today. As the economy continues to grow, inventory keeps being squeezed. There were 47% fewer single-family homes on the market in January than the year prior. Home prices have been stabilizing for some time, fluctuating slightly from month to month. In January the median home price slipped 2% over a year ago to $892,000.

VIEW FULL EASTSIDE REPORT

Posted on February 17, 2020 at 9:40 pm
Lynly Callaway | Category: Market News | Tagged , , , , ,

THE GARDNER REPORT – Q4 2019


ECONOMIC OVERVIEW

Employment in Washington State continues to soften; it is currently at an annual growth rate of 1.7%. I believe that is a temporary slowdown and we will see the pace of employment growth improve as we move further into the new year. It’s clear that businesses are continuing to feel the effects of the trade war with China and this is impacting hiring practices. This is, of course, in addition to the issues that Boeing currently faces regarding the 737 MAX.

In the fourth quarter of 2019 the state unemployment rate was 4.4%, marginally lower than the 4.5% level of a year ago. My most recent economic forecast suggests that statewide job growth in 2020 will rise 2.2%, with a total of 76,300 new jobs created.

HOME SALES

  • There were 18,322 home sales registered during the final quarter of 2019, representing an impressive increase of 4.7% from the same period in 2018.
  • Readers may remember that listing activity spiked in the summer of 2018 but could not be sustained, with the average number of listings continuing to fall. Year-over-year, the number of homes for sale in Western Washington dropped 31.7%.
  • Compared to the fourth quarter of 2018, sales rose in nine counties and dropped in six. The greatest growth was in Whatcom County. San Juan County had significant declines, but this is a very small market which makes it prone to extreme swings.
  • Pending home sales — a barometer for future closings — dropped 31% between the third and fourth quarters of 2019, suggesting that we may well see a dip in the number of closed sales in the first quarter of 2020.

HOME PRICES

  • Home price growth in Western Washington spiked during fourth quarter, with average prices 8.3% higher than a year ago. The average sale price in Western Washington was $526,564, 0.7% higher than in the third quarter of 2019.
  • It’s worth noting that above-average price growth is happening in markets some distance from the primary job centers. I strongly feel this is due to affordability issues, which are forcing buyers farther out.
  • Compared to the same period a year ago, price growth was strongest in San Juan County, where home prices were up 41.7%. Six additional counties also saw double-digit price increases.
  • Home prices were higher in every county contained in this report. I expect this trend to continue in 2020, but we may see a softening in the pace of growth in some of the more expensive urban areas.

DAYS ON MARKET

  • The average number of days it took to sell a home dropped four days compared to the third quarter of 2019.
  • For the second quarter in a row, Thurston County was the tightest market in Western Washington, with homes taking an average of 29 days to sell. In nine counties, the length of time it took to sell a home dropped compared to the same period a year ago. Market time rose in four counties and two were unchanged.
  • Across the entire region, it took an average of 47 days to sell a home in the fourth quarter. This was up nine days over the third quarter of this year.
  • Market time remains below the long-term average across the region, a trend that will likely continue until we see more inventory come to market — possibly as we move through the spring.

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 housing market ended the year on a high note, with transactions and prices picking up steam. I believe the uncertainty of 2018 (when we saw significant inventory enter the market) has passed and home buyers are back in the market. Unfortunately, buyers’ desire for more inventory is not being met and I do not see any significant increase in listing activity on the horizon. As such, I have moved the needle more in favor of home sellers.

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.

Posted on February 1, 2020 at 9:36 pm
Lynly Callaway | Category: Market News | Tagged , , , , ,

Refresh Your Bathroom into a Spa

Image Source: Canva

With some creative thinking and a few do-it-yourself projects, you too can transform an everyday bathroom into a spa-like experience:

High-end shower head

There are a plethora of shower head options available today that can make even a simple shower space feel like a luxuriating experience.

Heated towel rack

Once out of the tub/shower, heated towels help you comfortably maintain your body temperature while the pampering continues.

Dimmable lights

Adjust the bathroom lights to match your moods and activities: brighter for primping, and dimmed to create a calming effect.

Less clutter

Not everything that’s meant for the bathroom needs to be stored in the bathroom. Look for things that can be moved elsewhere to make the space feel a bit bigger and more organized.

Calming scents

Essential oils, luxury soaps, and scented candles are an easy way to create an aromatic atmosphere of luxuriousness.

 

SOURCE: Windermere

Posted on January 19, 2020 at 2:10 am
Lynly Callaway | Category: Living | Tagged , , , , , ,

LOCAL MARKET UPDATE – JANUARY 2020

Posted on January 17, 2020 at 9:40 pm
Lynly Callaway | Category: Market News | Tagged , , , , ,

AS BIG TECH’S EASTSIDE PRESENCE EXPANDS, BELLEVUE PREPS FOR MORE COMMUTERS

Back then, planners designed wide six-lane arterials meant to move vehicles fast. The road grid creates 600-foot-wide superblocks on former farmland.

Now, tremendous growth is straining transportation. Traffic stacks up during afternoon commutes, and Interstate 405 slows to a crawl.

As Amazon, Microsoft, Google, and others grow their Eastside workforces, City staff anticipate a net gain of roughly 18,000 downtown jobs by 2025, joining the more than 52,000 people who currently work in the city core.

Roughly translated, this would boost employment higher than the current numbers in Seattle’s busy South Lake Union.

But local leaders acknowledge remaking a car-dominated landscape doesn’t happen overnight. The City aims to cut the share of downtown commuters who drive alone to work to about one-third by 2035, a reversal of today’s pattern where more than two-thirds drive alone.

To do this, they’re planning for trains, buses, bicycles, walking, vanpools — and maybe even autonomous vehicles — to keep people moving.

In past years, the Bellevue City Council voted to create a safer walking network by converting Sixth Street to a 60-foot-wide, tree-lined walking corridor and shortening a street to complete its circular Downtown Park.

Instead of narrowing six- and seven-lane streets with so-called road diets, Bellevue’s approach to reducing car-pedestrian conflicts relies on skybridges around Bellevue Square, and altering some traffic signals to give walkers a head start at intersections. Smaller streets include walker-activated amber flashers.

Large employers and city officials are also counting on the $3.7 billion Sound Transit East Link light-rail line — projected to serve 50,000 daily passengers when it opens in 2023 — to handle many of the new commutes.

New bike lanes on 108th Avenue Northeast serve a trickle of riders for now. More bike lanes are planned on Main Street. Just east of I-405, the 42 miles of abandoned BNSF railroad tracks are being redeveloped for bicycle riders and pedestrians as Eastrail, spanning from Snohomish to Renton.

Bellevue’s growth spurt won’t necessarily translate into massive public-transit ridership, however, at least in the short term. Private transit is adapting faster.

With aid from a $100 million federal loan, the city has created or widened 11 streets between Wilburton and the Spring District east of I-405 where REI’s headquarters, Facebook and other companies are locating.

That follows citywide spending of $5.5 million to equip 197 intersections with adaptive signals that continually re-time to move clusters of approaching vehicles.

And the permit paperwork for the planned 43-story Amazon tower shows 1,175 underground parking stalls (nearly double the 632 spaces in the current parking garage that this new tower will replace).

On I-405, the Washington State Department of Transportation (WSDOT) will build an express toll lane each direction between Renton and Bellevue, to open in 2024, along with exit-only lanes to clear departing drivers off the mainline.

The existing carpool lanes will be converted to a second toll lane each way. Sound Transit will follow with new bus-rapid transit and park-and-ride lots.

Finally, in perhaps its most lofty vision yet, The Grand Connection is a sprawling pedestrian and cyclist pathway that would stretch between Meydenbauer Bay Park on the west, through Main Street and downtown, and across the freeway to Eastrail. With a bridge or park lid above I-405, just south of the nearly completed Sound Transit rail bridge, design concepts show amphitheater steps, sculptures and a row of ginkgo trees.

Unlike the longer Burke-Gilman Trail in Seattle, the Grand Connection would encourage people to linger at cafes and parks. As a traffic-free shortcut, it would reduce the need to drive and park at downtown spots.

There’s no funding yet. Costs vary based on whether Bellevue builds a full park like Mercer Island has over I-90, or a thin bridge, for around $130 million.

A version of this article was originally posted on U.S. News by Michelle Baruchman

Posted on January 16, 2020 at 9:41 pm
Lynly Callaway | Category: Market News | Tagged , , , , , ,

LOCAL MARKET UPDATE – DECEMBER 2019

Favorable interest rates and soaring rents boosted activity in the housing market in November. More buyers competing for less inventory kept home prices strong. With the supply of homes far short of demand, sellers can expect well-priced properties to sell quickly this winter.

With just over a month of available inventory, demand on Eastside remains very strong. Sales are brisk, with 45% of single-family homes selling in 15 days or less and 20% of homes selling for over list price. The median single-family home price in November rose 2% from a year ago to $900,000 and was unchanged from October.

VIEW FULL EASTSIDE REPORT

Posted on December 19, 2019 at 10:52 pm
Lynly Callaway | Category: Market News, Windermere Community | Tagged , , , , , , , ,

WASHINGTON RANKED BEST STATE OVERALL

Some states shine in health care. Some soar in education. Some excel in both – or in much more.

Considering numerous metrics and thousands of data points, a new study by the U.S. News and World Report ranks Washington state as number one in the nation.

Using 71 different metrics and thousands of data points, the magazine measured how well states are performing for their citizens. In addition to health care and education, the metrics take into account a state’s economy, its roads, bridges, internet and other infrastructure, its public safety, the fiscal stability of state government, and the opportunity it affords its residents.

Named the best state overall, Washington ranked fourth in health care and education, third in economy, second for infrastructure, 14th in natural environment, 15th for public safety, and 19th for opportunity. Our lowest ranking was 22nd for fiscal stability for our residents.

The data supporting these rankings were “drawn from extensive and reliable governmental and private sources,” along with a national survey of what matters most to citizens around the country, according to the magazine.

Health care and education were weighted most heavily.

The top 10 states following Washington were New Hampshire, Minnesota, Utah, Vermont, Maryland, Virginia, Massachusetts, Nebraska, and Colorado in that order.

View all of the results and full rankings for this year and previous years on U.S. News & World Report.

This was originally posted on U.S. News & World Report and on king5.com 

Posted on December 13, 2019 at 10:54 pm
Lynly Callaway | Category: Living, Market News | Tagged , , , , , , ,

Windermere’s Winter Drive Collects Nearly 6,000 Items for Mary’s Place

It’s another fall season and the fourth year of Windermere’s #TackleHomelessness campaign with the Seattle Seahawks. As a part of this campaign, Windermere hosts an annual “We’ve Got You Covered” winter drive. This year, 33 Windermere offices in in the greater Seattle area* participated in the drive, collecting new hats, scarves, gloves/mittens, socks, and other warm winter items for Mary’s Place.

Mary’s Place is a non-profit that provides safe, inclusive shelter and services to support women, children and families on their journey out of homelessness. Since 1999, Mary’s Place has helped hundreds of women and families move out of homelessness into more stable situations. But shelter capacity is limited and there are still hundreds of families sleeping outside in cars and tents each night, so Windermere collected items to help them stay warm this winter.

During the four-week drive, our offices collected donations from agents, staff, and the community, which included over 630 hats, 680 pairs of gloves, over 200 scarves, over 2,000 pairs of socks, and an assortment of coats, jackets, sweaters, blankets, toiletries and other items, bringing our grand total to nearly 6,000 items collected for Mary’s Place.

One office made the drive extra special by partnering with a local knitting group. The Windermere Mercer Island office partnered once again with the Mercer Island Tuesday Knitters, to make cozy hats and scarves. This year the knitting group contributed 67 hand-knitted hats and scarves to the winter drive.

The staff at the Mary’s Place donation center in South Seattle were grateful to receive the bins full of donated items that were delivered by Gentle Giant Moving Company. “We are so incredibly grateful to our Windermere family for all that they do for our families!” said Marty Hartman, Mary’s Place Executive Director. “These gifts of warm winter gear will keep our kids and families warm and loved this winter!”

Windermere is also grateful to partner with Gentle Giant Moving Company on our winter drive. For the past four years, they have generously given their time, muscle, and trucks to pick up and deliver all of the donations.

And this drive would not be possible each year without the support of the Seattle Seahawks, our offices, and all those who donated. From all of us at Windermere, thank you for making our fourth annual winter drive a success and for supporting families experiencing homelessness in the greater Seattle area!

Posted on November 20, 2019 at 8:24 pm
Lynly Callaway | Category: Windermere Community | Tagged , , , , , , , , , ,

LOCAL MARKET UPDATE – NOVEMBER 2019

A steady influx of buyers continued to strain already tight inventory throughout the area in October. Home sales were up, as were prices in much of the region. With our thriving economy and highly desirable quality of life drawing ever more people here, the supply of homes isn’t close to meeting demand. Homeowners thinking about putting their property on the market can expect strong buyer interest.

As the Eastside continues to rack up “best places” awards, it’s no surprise that the area is booming. Development is on the rise, fueled primarily by the tech sector. The appeal of the Eastside has kept home prices here the highest of any segment of King County. The median single-family home price in October was stable as compared to the same time last year, rising 1% to $900,000.

VIEW FULL EASTSIDE REPORT

Posted on November 16, 2019 at 10:51 pm
Lynly Callaway | Category: Market News | Tagged , , , , , , , ,

Western Washington Real Estate Market Update Q3

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.

 

ECONOMIC OVERVIEW

Washington State employment has softened slightly to an annual growth rate of 2%, which is still a respectable number compared to other West Coast states and the country as a whole. In all, I expect that Washington will continue to add jobs at a reasonable rate though it is clear that businesses are starting to feel the effects of the trade war with China and this is impacting hiring practices. The state unemployment rate was 4.6%, marginally higher than the 4.4% level of a year ago. My most recent economic forecast suggests that statewide job growth in 2019 will rise by 2.2%, with a total of 88,400 new jobs created.

 

HOME SALES

  • There were 22,685 home sales during the third quarter of 2019, representing a slight increase of 0.8% from the same period in 2018 and essentially at the same level as in the second quarter.
  • Listing activity — which rose substantially from the middle of last year — appears to have settled down. This is likely to slow sales as there is less choice in the market.
  • Compared to the third quarter of 2018, sales rose in five counties, remained static in one, and dropped in nine. The greatest growth was in Skagit and Clallam counties. Jefferson, Kitsap, and Cowlitz counties experienced significant declines.
  • The average number of homes for sale rose 11% between the second and third quarters. However, inventory is 14% lower than in the same quarter of 2018. In fact, no county contained in this report had more homes for sale in the third quarter than a year ago.

 

 

 

HOME PRICES

  • Home price growth in Western Washington notched a little higher in the third quarter, with average prices 4.2% higher than a year ago. The average sales price in Western Washington was $523,016. It is worth noting, though, that prices were down 3.3% compared to the second quarter of this year.
  • Home prices were higher in every county except Island, though the decline there was very small.
  • When compared to the same period a year ago, price growth was strongest in Grays Harbor County, where home prices were up 22%. San Juan, Jefferson, and Cowlitz counties also saw double-digit price increases.
  • Affordability issues are driving buyers further out which is resulting in above-average price growth in outlying markets. I expect home prices to continue appreciating as we move through 2020, but the pace of growth will continue to slow.

 

 

 

 

 

DAYS ON MARKET

  • The average number of days it took to sell a home dropped one day when compared to the third quarter of 2018.
  • Thurston County was the tightest market in Western Washington, with homes taking an average of only 20 days to sell. There were six counties where the length of time it took to sell a home dropped compared to the same period a year ago. Market time rose in six counties, while two counties were unchanged.
  • Across the entire region, it took an average of 38 days to sell a home in the third quarter. This was down 3 days compared to the second quarter of this year.
  • Market time remains below the long-term average across the region and this trend is likely to continue until more inventory comes to market, which I do not expect will happen until next spring.

 

 

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. I am leaving the needle in the same position as the first and second quarters, as demand appears to still be strong.

The market continues to benefit from low mortgage rates. The average 30-year fixed rates is currently around 3.6% and is unlikely to rise significantly anytime soon. Even as borrowing costs remain very competitive, it’s clear buyers are not necessarily jumping at any home that comes on the market. Although it’s still a sellers’ market, buyers have become increasingly price-conscious which is reflected in slowing home price growth.

 

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.

Posted on October 25, 2019 at 6:07 pm
Lynly Callaway | Category: Market News, Market Report | Tagged , , , , , , , ,