Home Updates That Increase Your Home’s Value

by Kari Haas

There is always a long list of home updates that can increase your home’s value. It’s important to consider a budget and check in with your real estate agent on what trends are relevant and most effective in your neighborhood and real estate market.

#1 Walls and Floors

First and foremost, walls and floors can be the simplest and most effective update you can make in your home to increase the overall value. A fresh coat of paint, new or refurbished flooring, and accent walls or features can give your home a clean slate for the new potential buyer. Can’t decide on a paint color? Check out the trending paint colors for this year.

#2 Bathroom

A major or minor update to the bathroom can drastically increase your home’s worth. Minor changes, like updated hardware, re-caulking, re-glazing the tub, or trending paint color, can make the room feel refreshed and clean. A major remodel can consist of new tile, flooring, tub, shower, vanity, and new bathroom hardware.

#3 Landscaping & Exterior Updates

Landscaping and exterior updates are important and often can affect your home’s ‘first impression’. It’s important to use varying heights for landscaping and a pop of color on the front of the house. Most homes’ pop of color is generally on the front door or can be the home’s trim color. Other pops of color can be highlighted with the use of landscaping, like flowers, colorful trees, garden ornaments, etc.

Exterior updates can include plenty of different updates, but most importantly a fresh layer of paint can do wonders. Remove any old awnings, windows, or doors. Replace damaged railings or unsafe stairs. Update and replace the siding to ensure there are no missing or warped pieces.

Deck, Patio, or Porch additions can really improve your home’s value. We have been seeing an increase in indoor-to-outdoor spaces and meshing the two spaces together. So, these improvements can create a better flow and give your home a spacious and diverse atmosphere.

#4 Kitchen

Generally, a minor kitchen remodel is a cosmetic update and doesn’t usually include any changes to the kitchen floorplan. Refresh the cabinet paint, update hardware and light fixtures, and even possibly update the flooring.

Complete kitchen remodels can repurpose your entire kitchen space, a whole new floorplan with a kitchen island, countertops, a spacious sink, new appliances, flooring, backsplash tiling, and more. Planning to sell? Stick with neutral colors for walls and window treatments. Remodeling to please yourself? Choose colors you love.

#5 Finished Attic or Basement Space

An attic conversion can add value and usable space to your home. Finishing your attic space with high-quality insulation can lower your utility bills and increase your home’s efficiency.

Updated or remodeled basements make wonderful bonus spaces, and don’t usually need much. Some drywall, fresh paint, and flooring will make a world of difference. If your basement has concrete floors, carpet squares can provide an easy and quick solution to warm up the space. Carpet squares are convenient and can be removed if damaged or stained.

#6 Replacement Windows

Windows are important and can affect the efficiency of your home. Especially in cities like Seattle, San Francisco, NYC, Boston, etc. where the average homeowner recoups more than they spend on replacement windows, so either way, it’s a great investment.

#7 Room Additions

Any addition that is added to the home’s original floorplan shouldn’t be obvious and should have an open transition, like a wider doorway, to visually connect the addition to the rest of the home. An addition like a sunroom, only counts in the home’s square footage only when the room is heated and cooled for year-round use.

Get Started Now!

In conclusion, pick a project and start right away. Today is officially the soonest you can start, so just do it. Get started now.

Not only does Kari Haas have more than 300 real estate deals under her belt, but she has an outstanding success rate. When multiple offer situations arise, Kari’s clients win in over 95% of those instances! Put the Kari Haas Real Estate team behind you. Call or email us today!

Kari's Blog • Real Estate Market Updates & Insight • March 11, 2022

March 2022 Real Estate Market Update

by Kari Haas

What’s Happening in the Market

In the March 2022 Real Estate market update, we head into the traditionally busy spring season for homebuying, the market seems to be keeping up its intense pace, with low inventory across the board and multiple offers the norm. A marginal increase in listings across King and Snohomish counties has done little to counter fierce buyer demand, with certain areas on the Eastside virtually unable to sustain new inventory. With these trends likely to continue, buyers will need to be aggressive and ready to compete.

Home Price Trends

Prices continue to rise across Seattle and the Eastside, with the median sold price for single-family homes on the Eastside increasing to an eye-watering $1,697,500 in February — a 34% year-over-year increase. Seattle saw a 16% year-over-year increase last month, with a median sold price of $925,000 for single-family homes. These median home prices for the Eastside and Seattle were all-time record highs.

Fierce competition on the Eastside last month drove price increases, with 87% of homes in the area closing above list price and the median sold price coming in at a whopping 23% over list. At the start of this month, the Eastside had just under two weeks of inventory, and 94% of last month’s listings sold in under two weeks. The pace of home sales in Seattle was almost as hot, with 86% of homes selling in two weeks or less.

Snohomish County saw a year-over-year price increase of 19% in February, with a median sold price of $745,725 for single-family homes, a record-high for the area as well. The continuation of remote and flexible work options continues to encourage buyers to purchase in the area, and by month’s end, Snohomish County inventory had dropped to less than two weeks’ supply.

Competition and Price Correction

The competition and rising prices have some buyers torn between jumping into the market while they still can or waiting to see if a price correction will occur within the foreseeable future. The last correction occurred in 2018; in the three years from May 2015 to May 2018, King County home prices rose 51% from $480,942 to $726,275. During the same time, interest rates increased from 3.84% to 4.59%. Prices then dropped 16% from $726,275 to $610,000 and took 18 months to rise above $726,275 again. While this context is helpful, it’s also extremely difficult to predict when and if a price correction will occur in the near future.

Concerns

Amid rising concerns over Russia’s invasion of Ukraine and its impact on the American economy, many homebuyers are wondering if mortgage rates — which have generally been rising since the beginning of the year — will be affected. Windermere’s Chief Economist, Matthew Gardner, tied the beginning of the war to a short-term drop in rates. “In general, when there’s any sort of global or national geopolitical event, investors tend to gravitate to safety, and this invariably means a shift out of equities and into bonds. So, at face value, Russia was actually responsible for the tiny drop in rates we saw immediately following the invasion, and also the more significant drop we saw last week when the market saw the biggest two-day drop in rates in over a decade.”

Nonetheless, Gardner said that according to his model, there is likely to be a “significant jump” in rates over the first two quarters, though these increases will slow in the second half of the year.

If you’re looking for additional insight and extra support as you consider whether now is the right time to buy or sell a home, please feel free to reach out. We’re here to help you make the best decisions as you navigate the real estate market, today or any time in the future.

March 2022 Real Estate Market Update Stats

EASTSIDE

KING COUNTY

SEATTLE

SNOHOMISH COUNTY

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This post originally appeared on GetTheWReport.com.

Kari's Blog • Real Estate Market Updates & Insight • March 1, 2022

February 2022 Real Estate Market Update

by Kari Haas

What’s Happening in the Market

In this February 2022 real estate market update, we see that the local market in January looked a bit like the calm before the storm. Home prices took a pause from the frantic surges of last year, but if the sales we’ve seen in the last few weeks are any indication, the market looks like it’s heating up again. Inventory inched up in January but remains far short of buyer demand. Homes are selling fast, and for well over the asking price. Expect this spring, traditionally the busiest season of the year for home sales, to be hotter than ever.

Reason for Concern?

Concerns about future mortgage interest hikes appear to have added fuel to an already overheated market, further depleting already meager inventory. The number of homes for sale was lower than any January on record, according to Matthew Gardner, Windermere’s chief economist. There were 59% fewer homes on the market in King County than at the same time last year. Snohomish County’s inventory was down 35%. Based on current demand, it would take less than two weeks to sell all the properties on the market in both counties. Buyers competing for scant inventory snapped up available homes quickly. In King County, 72% of the homes sold in January were on the market less than two weeks. On the Eastside, 81% of homes sold in less than two weeks, as did 61% of homes in Seattle, and 76% of homes in Snohomish County.

Home Price Trends

Homes prices continued to trend upward compared to the same time last year. In January, the median price of a single-family home in King County rose 7% year-over-year to $775,000. Home prices on the Eastside jumped 32% over a year ago to $1,515,000, virtually unchanged from the all-time high of $1,529,500 set in December. With 71% of homes on the Eastside selling for over asking price, the market is expected to stay very competitive. Prices in Seattle have been fairly level for the past few months. The January median home price of $790,000 is flat compared to a year ago. In Snohomish County, the $715,000 median home price was up 19% over the prior year.

While January’s statistics (which reflect sales that closed in December) hinted that the market may be easing off, the housing activity we’re seeing today indicates that buyers are stepping on the gas. Expect even more competition for homes in the coming months.

Expectations for the Future

Despite the pandemic and remote work, large companies continue to hire new workers and invest in large office projects in the area. Matthew Gardner weighed in on how he sees that affecting the housing market for this February 2022 real estate update. “One of the biggest questions for 2022 is how the market will be further impacted by the work-from-home paradigm given that many companies have postponed their long-term WFH plans. This is likely holding back sellers during a time when we desperately need additional inventory, as well as buyers who are concerned about rising mortgage rates.” Gardner expects more sellers will list their homes and more buyers will start their searches once they know how often they need to commute to work, which may result in a busier spring market than expected.

If your plans for 2022 include buying or selling a house, we’re here to help. Get in touch and we can get started.

EASTSIDE

KING COUNTY

SEATTLE

SNOHOMISH COUNTY

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This post originally appeared on GetTheWReport.com.

Food • Kari's Blog • Real Estate Related • February 8, 2022

A Smarter Way To Invest In Your Child’s Education

by Kari Haas

Investing to Pay Off Your Child’s College Tuition

What if you could invest in something that earned enough profit to pay for your child’s college tuition and still kept your initial investment growing towards your own retirement? That’s the picture when you purchase a home or condo as an investment for college. There are options in every price bracket and investment models that work no matter how soon college starts.

Current Interest Rates

Interest rates are historically low and the demand for housing is continually rising in our tech-rich, mild-weathered, economically-advantaged area. Companies like Amazon, Microsoft, Google, SpaceX, Boeing, and Facebook attract over 5,000 new people per month to the Sound. This has given the Pacific Northwest a hot housing market that’s grown strongly for generations. Don’t you wish you had bought Mercer Island waterfront in the 1980s? In a few years, we’ll look back on today’s market the same way.

Here’s where your kids come in. You may already be proactively depositing into a college fund. This is a step in the right direction but it’s not a terrific investment. Instead, you want to pay for your child’s college and keep your investment growing. The dollars go in and grow at a snail’s pace of interest or rise and fall with the stock market and hopefully you get back more than you put in. There are some tax advantages….

Tax Advantages of Investing in Real Estate

The tax advantages of real estate are huge. The interest paid on your investment mortgage is tax deductible and you also enjoy depreciation, so you get to shelter and keep more of your hard-earned wages from the very start.

Here’s the magic in using real estate for your college fund: When you purchase a home with a mortgage you are leveraging your money at a higher rate of return than you could possibly attain with any other safe vehicle. “Aha!” you say, “Safe? Remember the housing bubble and how home values dropped?” Yes, yes I do! But here’s the thing: Prices are back just a few years later and we are seeing the highest price growth ever. Seattle enjoys a historically strong market, remember?

Leverage

What’s leverage? It gives real estate a 5:1 advantage (typically) over other kinds of investment with almost zero additional risk. Leverage is where you invest some money, and a bank supplies the rest of what you need – up to 80% loan-to-value without additional fees. That means a $50k “ordinary” investment into the stock market controls $50k of stock, and when values eventually double your profit is 100%. Great! But $50k in real estate controls $250k in property, so after doubling in 10-12 years you profit a whopping 500% plus rental income and tax benefits.

Let’s say you put down $50,000 on a $250,000 condo or home. Your mortgage and costs should be covered by the market rent. When your child is ready for college you can do a cash-out refi to access most of your profits without incurring a tax bill. Then after refinancing you will continue receiving rent and your investment keeps appreciating, as opposed to liquidating stocks and paying tax on the profit.

How to get Started

By now you might be asking yourself, “How can I do this? How am I going to make this work for my children, family, and retirement?”

First and foremost, it’s critical to have a good agent. Use someone trustworthy who is knowledgeable about the local market, has an eye for a good investment, and with a proven track record of getting things done. Since the hot market inspires multiple-offer bidding frenzies for good homes, you especially need an agent who knows how to win in multiple offer situations with strong negotiation skills.

If your kids are young, you have enough time by starting now. But even if your kids are in middle school, you’ll be able to supplement student loans while continuing appreciation will quickly pay off those loans after your child graduates college.

Get Started Now!

In conclusion, pick a good road and start right away. Real estate is the best road around. Like any good habit, this kind of investment improves your life gradually and builds on itself, so you know you’ll kick yourself for not starting sooner. Today is officially the soonest you can start, so just do it. Get started now.

Kari's Blog • Real Estate Market Updates & Insight • January 24, 2022

January 2021 Real Estate Market Update

by Kari Haas

What’s Happening in the Market

In this January 2021 real estate update we see record-low temperatures combined with record-low inventory put a chill on housing activity in December. With very few homes available to buy, sales were down. Lack of supply and high demand continued to push prices up. Since the winter months historically bring the smallest number of new listings, buyers should not expect relief anytime soon.

December Results

While up from a year ago, home prices in general were relatively flat from November to December. In King County, the median single-family home price rose 9% from last December to $810,000. Despite high demand and low inventory, prices in Seattle continue to level off. While down slightly from November, the median price increased a modest 5% over a year ago to $839,000. The Eastside was again the outlier. After breaking price records in October and November, home prices soared 37% year-over-year to set yet another all-time high of $1,529,500 in December. That represents a 7% increase from November. In further evidence of just how hot the Eastside market is, 75% of the properties there sold for over list price. Prices in Snohomish County continued to inch closer to King County. The median home price there jumped 22% to $700,000.

The driving force affecting affordability is lack of inventory. In both Snohomish and King counties it would take less than a week to sell the homes that are currently on the market. At the end of December, Snohomish County has just 210 single-family homes for sale in the entire county. Seattle had only 167 homes for sale; the Eastside just 55. That represented 70% less inventory for both Seattle and the Eastside as compared to a year ago. To give some historical perspective, the ten-year average inventory for the end of December is 545 homes in Seattle and 743 homes on the Eastside.

Matthew Gardner, Chief Economist at Windermere, registered his concern. “The Puget Sound region is in dire need of more housing units which would function to slow price growth of the area’s existing housing,” he said. “However, costs continue to limit building activity, and that is unlikely to change significantly this year.”

The demand side of the equation isn’t expected to wane any time soon either. With millions of square feet of new office space and new light rail developments in the works, the area continues to be a draw for employers – and more potential homebuyers.

2022 Predictions

What’s ahead for 2022? Matthew Gardner expects the market to continue to be strong, but believes the pace of appreciation will slow significantly from this year. “I predict single family prices will increase by around 8% in King and Snohomish counties. Affordability issues and modestly rising interest rates will take some of the steam out of the market in 2022.”

From working remotely to finally retiring, life events often trigger housing decisions. If you find yourself looking to buy or sell a property, we’re here to help.

EASTSIDE

KING COUNTY

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SNOHOMISH COUNTY

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This post originally appeared on GetTheWReport.com.

Kari's Blog • January 18, 2022

Tips for Moving Without the Headache

by Kari Haas

Top Moving Tips:

Packing up your life into cardboard boxes and schlepping it across town or across the country can be a hassle. But, as Huffington Post suggests, you can make your move a lot simpler if you plan ahead. With that in mind, here are some tips from realtor Kari Haas for moving without the headache.

Purchase a Home

Before you begin the moving process, you’ll have to buy a suitable home. To get started, your first step is finding a realtor. It’s really important who you choose to represent you. A professional team with a good track record of being able to negotiate and market successfully for your benefit can put far more in your pocket than you might save with a discount broker or friend of a friend. This is many people’s largest investment and it always amazes me that a lot of people choose their cousin’s wife’s brother’s best friend without checking their success rate or reviews, based on relationship alone without regard for their financial well-being. A good realtor will also have connections within the industry and will have mortgage professionals that they recommend and who will help you with the preapproval process.

Pay a Pro

If your budget permits it and you have a lot to pack, consider hiring a professional moving company. Consumer Reports recommends selecting a company with good references and making sure they are properly licensed and insured for damage. Of course, the Kari Haas Real Estate Team has a list of resources and vendors, as well as a professional support team to help streamline the process.

Movers are well-trained and know the best methods and techniques for packaging and shipping your valuables. Their inventory process ensures you won’t have boxes that get knocked around in a friend’s truck or get left behind at the old place by mistake. You’ll avoid the potential for mishaps and injuries.

Get Organized

If you elect to do this without professional movers, create a checklist and start packing well in advance of moving day. Pack heavy items in small boxes and lightweight items in larger boxes. Pack your glasses and dishware in your table linens and kitchen towels for extra padding.

Color-code your boxes by room and load them with respect to what you’ll need access to first. Fill an overnight bag with a change of clothes, toiletries, medications and cleaning supplies and keep it with you close at hand; these are the things you’ll need as soon as you arrive in the new place.

Look After Your Devices

Before disassembling electronic setups, take photos of how they are configured. This will make it easier to get everything back up and working in the new place. Use small baggies to store screws and other hardware, and tape them to the component they were removed from.

Make sure to back up your data beforehand, and if you have manuals it’s a good idea to box them with their items. Consider removing batteries to prevent them from breaking down (or exploding) in warm conditions or on bumpy roads. Wrap all electronics carefully in protective materials designed for that purpose. Also, some electronic items respond badly to being shaken, so you should minimize movement in their boxes.

Know Where the Important Stuff Is

Gather up important documents, such as birth certificates, licenses, passports, wills, insurance papers, and vaccination and medical records, because it’s important to transport these yourself, keeping them close at hand. For example, it is better to have them with you than lost in a box you may not open for a few days.

Ensure your pets’ shots and certifications are up to date and take pictures of them in case of emergency. Make sure not to lose track of your pet’s information. Microchipping can be helpful in this instance, so make sure your vet is updated with your new contact information.

Get Help

Hire a babysitter if you have children and consider hiring a pet sitter if you have pets. Moving day is usually a little bit chaotic and stressful. It’s always easier if the kids and the pets aren’t underfoot. If you can’t take children and critters to the sitter, consider enlisting one of your moving buddies to act as chief child chaser and pet wrangler on the day.

With the right preparations and proper planning, your move will go smoothly and your property will be protected from damage. You’ll cut down on the time spent unboxing and organizing in your new home and prevent needless rummaging through unidentified boxes. To prepare your move in advance, use a checklist, pack items carefully, and identify them correctly for the trip. This will make moving day less stressful and time-consuming for you and your family.

The Kari Haas Real Estate Team has a team of professionals prepared to help you every step of the way. Whether it is junk removal, professional organization, or packing services our team is here for you!

This post was originally submitted by Lisa Walker and has been edited by the Kari Haas Real Estate Team.

Real Estate Market Updates & Insight • December 14, 2021

December 2021 Real Estate Market Update

by Kari Haas

What’s Happening in the Market

While the housing market typically slows down in the winter, fewer buyers are taking a break this year. High demand and scant inventory still favor sellers, who continue to see multiple offers. In one bright spot for buyers, home prices – while up from over a year ago – appear to be evening out in most of the region. Potential home sellers who’ve been sitting on the fence may want to consider taking a leap into the market now.

November Results

With the exception of the Eastside, Puget Sound median home prices were essentially flat in November compared to the previous month. However, prices increased by double-digits in most areas from last year. In King County, the median single-family home price rose 12% from last November to $820,000. Home prices in Seattle continue to level off, with the median price of $850,000 up just 4% from a year earlier. The Eastside maintained its strong appreciation, with prices soaring 35% from a year ago to a new record. The median home price there of $1,428,000 topped the previous all-time high price of $1,365,000 set in October. Prices in Snohomish County jumped as well, rising 23% to $695,000.

Despite the traditional winter slowdown, the supply of homes for sale just isn’t budging. Snohomish County has just three weeks of inventory. In King County it would take just over a week to sell through all the homes for sale. Inventory is at an all-time low on the Eastside, where there are only 100 single-family homes for sale in the entire area, which stretches from Issaquah to Woodinville. Homes there are snapped up quickly, with 85% of properties selling within two weeks. With demand at a peak, the inventory crunch is expected to continue. Developers are particularly bullish on the Eastside, where plans are in the works for numerous projects, including a new condo tower in Bellevue, a $500 million transit-oriented development, and over 7,500 new apartment units that are being built in Redmond.

2022 Predictions

What’s ahead for 2022? Matthew Gardner, Chief Economist at Windermere, expects the market to continue to be strong, but believes the pace of appreciation will slow significantly from this year. “I predict single family prices will increase by around 8% in King and Snohomish counties. Affordability issues and modestly rising interest rates will take some of the steam out of the market in 2022.”

Do your New Year’s plans include buying or selling a home? Your broker can keep you up to date on the latest trends and help you create a plan to meet your goals. Let us know how we can help.

EASTSIDE

December Local Market Update — **VIEW FULL EASTSIDE REPORT**

KING COUNTY

SEATTLE

SNOHOMISH COUNTY

VIEW FULL SNOHOMISH COUNTY REPORT

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This post originally appeared on GetTheWReport.com.

Real Estate Market Updates & Insight • November 13, 2021

November 2021 Real Estate Market Update

by Kari Haas

What’s Happening in the Market

As we head towards the end of the year, the housing market traditionally slows down. As a matter of fact, this year’s activity was even slower than normal, with record-low inventory and correspondingly fewer sales. What’s happening in the market now? At this point, prices aren’t appreciating at the pace they were in the spring, but they continue up as compared to a year ago. While potential home sellers usually wait until after the holiday season to list their homes, those who opt to put their home on the market now can count on strong buyer interest.

With the number of buyers far outstripping supply, inventory is at historic lows. King County as a whole has less than two weeks of inventory. The supply of homes is especially strained on the Eastside where there was just one week of inventory at the end of October – 61% fewer homes were on the market than the same time last year. Snohomish County is starved for supply as well, with just over one week of inventory. The entire county had just 492 single-family homes for sale at the end of October.

Strong buyer demand has kept prices steady, and most areas saw home prices increase from a year ago but remain fairly flat over the past few months. The median price of a single-family home in King County rose 11% from twelve months ago, increasing from $745,000 to $824,270. Within the county, the Eastside experienced the greatest gain. Home prices soared 30% to $1,365,000, inching above the previous all-time high of $1,364,000 set in June of this year. Prices in Seattle registered the smallest gain at 6%, up from $800,000 a year ago to $850,000.

Homes that sold in the North, Southeast, and Southwest parts of the county saw price gains ranging from 16% to 20%. Buyers may find some relief with condominiums. The median price of a condo in King County was $459,970, an increase of 3% from the prior year. Tight inventory kept prices strong in Snohomish County. The median price of a single-family home jumped 20% in October to $695,000. Like most of King County, home prices in Snohomish County have been fairly flat over the past few months.

Have home prices plateaued? Will strong buyer demand continue? After all, the real estate market can change quickly, so whether you’re looking to buy or sell, your broker can provide you with the most current data so you can make the best decision for your situation. Let us know how we can help.

EASTSIDE

November Market Update — **VIEW FULL EASTSIDE REPORT**

KING COUNTY

November Local Market Update — **VIEW FULL KING COUNTY REPORT**

SEATTLE

SNOHOMISH COUNTY

Local Market Update

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This post originally appeared on GetTheWReport.com.

Real Estate Market Updates & Insight • October 28, 2021

The Gardner Report – Quarter 3

by Kari Haas

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 Real Estate agent.

REGIONAL ECONOMIC OVERVIEW

The emergence of the of COVID-19 Delta variant had a palpable impact on the region’s economy, which, naturally, impacted job recovery. Employment levels in Western Washington had been picking up steam in the spring but started to slow quite dramatically over the summer. To date, the region has recovered more than 201,000 of the jobs that were lost due to the pandemic, but we appear to be in a bit of a holding pattern. That said, the ending of enhanced unemployment benefits has led many business owners to see more applicants for open positions, so I am hopeful the numbers will pick back up as we move into the winter months. The most recent data (August) shows the region’s unemployment rate at a respectable 5%, but we still have a way to go before we reach the pre-pandemic low of 3.7%. On a county level, the lowest unemployment rate was in Kitsap County (4.4%) and the highest was in Grays Harbor County (6.6%). There are still many hurdles in front of us, but I believe we will continue to add jobs and reach full employment recovery by mid-2022.

WESTERN WASHINGTON HOME SALES

❱ Sales in the third quarter rose 6.4% year over year, with a total of 27,280 homes sold. The increase matched what we saw in the second quarter of this year.

❱ I was pleased to see sales growth continue. This rise was supported by a 28.4% increase in the number of homes for sale. Listings rose the most in Grays Harbor (+62.6%), Lewis (+53.6%), and Skagit (+52.0%) counties.

❱ Sales activity was mixed. Nine counties saw year-over-year growth, but sales slowed in six counties. That said, sales were up in every county other than King and San Juan compared to the second quarter of 2021.

❱ The ratio of pending sales (demand) to active listings (supply) showed pending sales outpacing listings by a factor of 4.6. Even with the increase in the number of new listings, the market is far from balanced.

WESTERN WASHINGTON HOME PRICES

❱ Home prices rose 18.9% compared to a year ago, with an average sale price of $726,168—another all-time record.

❱ When compared to the same period a year ago, price growth was strongest in Clallam, San Juan, and Jefferson counties, but all markets saw prices rise more than 12% from a year ago.

❱ Average sale prices pulled back 1.1% compared to the second quarter of this year. Given the massive increase in value over the past few years, it is not at all surprising. The key indicator has been a softening in list prices and that naturally translates to slower price growth. This is nothing to be worried about. It simply suggests that the market may finally be heading back to some sort of balance.

❱ Relative to the second quarter of this year, all counties except San Juan (-0.1%), Island (-0.5%), and Whatcom (-0.5%) saw higher sale prices.

DAYS ON MARKET

❱ It took an average of 17 days for a home to sell in the third quarter. This was 19 fewer days than in the same quarter of 2020, and 1 fewer day than in the second quarter of this year.

❱ Mirroring the second quarter, Snohomish, Kitsap, Thurston, and Pierce counties were the tightest markets in Western Washington, with homes taking an average of 9 days to sell in Snohomish County and 11 days in the other three counties. The greatest reduction in market time compared to a year ago was in San Juan County where it took 102 fewer days for homes to sell.

❱ All counties contained in this report saw the average time on market drop from the same period a year ago, but eight counties saw market time rise from the second quarter; however, the increases were minimal.

❱ Even with inventory levels increasing in most markets, the region’s housing market remains remarkably tight. That said, I do see some of the heat dissipating and I am hopeful that if inventory levels continue rising, we will start a slow move back toward a balanced market.

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.

Even given the speedbump that hit the region’s economy with the emergence of the Delta variant, the housing market remains remarkably resilient. Demand from buyers continues to be very strong, and modestly increasing inventory levels appear to have—at least for the time being—reduced some of the fever from the market. Mortgage rates remain very favorable, and my current forecast is for them to stay in the low- to mid-3% range until next summer. Rising inventory levels have led price growth to slow and days on market to start increasing, which may be a sign that the market is retreating from a prolonged period of exuberance.

As we move through the balance of the year, I believe demand will remain solid, but we will continue to see price growth soften as more listings compete for the buyers that are out there. That is not to say price growth will turn negative; rather it suggests that we are slowly moving back toward a more balanced market. That said, the market certainly still favors home sellers. As such, I am leaving the needle in the same position as the second quarter. I may move it a little in the direction of buyers next quarter if the current trend continues through the winter months.

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.

Real Estate Market Updates & Insight • October 18, 2021

October 2021 Local Real Estate Market Update

by Kari Haas

What’s Happening in the Market

We had a rise in listings in September, but that didn’t stop the inventory from being tight. With a large buyer demand, shortage of homes for sale, and low interest rates, the prices remained higher than the last year. However, as we head into the holiday season, we tend to see a slow down in the market. This seems to be what’s been happening over the past few months, the home prices seem to be leveling out. We expect the price appreciation to continue through the rest of the year.

Home prices in most of the region continued their pattern from the past few months – up from a year ago but falling slightly from the prior month. The median price of a single-family home in King County in September was $825,600, an increase of 10% from last year, down from the $850,000 median in August. Seattle’s median price rose 4% year-over-year to $850,000, a slight drop from $875,000 last month. The Eastside was the exception to the trend of cooling prices. How hot is the market? 70% of homes sold over the list price, and 86% sold in under two weeks. The median home price on the Eastside soared 26% from a year ago to $1,310,000, basically flat from $1,300,000 in August. Snohomish County’s median price jumped 18% from a year ago to $675,000, down from $694,900 the prior month.

Some of the greatest price increases occurred in areas that have traditionally been more affordable. According to Matthew Gardner, chief economist at Windermere Real Estate, “We continue to see a migration of buyers to suburban markets which has resulted in significant year-over-year price growth in areas such as Shoreline, Auburn, Skyway, Woodinville, and Burien. It’s likely that buyers are drawn to these areas because housing is more affordable than in the urban neighborhoods closer to Seattle and Bellevue.”

More homes were available at the end of September than in August, but low inventory continues to pose challenges for buyers. In King County there were 40% fewer homes on the market than the same time last year. The condo market, which was negatively impacted by COVID-19, has come roaring back as buyers look for more affordable alternatives to single-family homes. Condo sales were up 20% over last year, and inventory is being rapidly depleted. There were 50% fewer condo listings at the end of September than the year prior. In Snohomish County, the tight supply of homes continues. At the end of September there were just 672 single-family homes for sale in the entire county, a supply of just two weeks.

Real estate markets can vary significantly from area to area. Whether you’re looking to buy or sell, your broker can provide you with the most current data for your specific area so you can make the best informed decision. Let us know how we can help.

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september market update — **VIEW FULL EASTSIDE REPORT**

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Local Market Update

VIEW FULL SNOHOMISH COUNTY REPORT

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