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January 2023 Real Estate Market Update
The close of 2022 brought the housing market extremes of the last year into sharp focus. With decreased sales, generally increasing inventory, and lower prices, the December market finally seemed to hit the winter slowdown that has characterized typical market cycles of years past. This stands in contrast to the early months of 2022, which saw sky-high prices and scarce inventory before the threat of inflation and rising mortgage rates caused the shift in the latter half of the year.
Windermere Chief Economist Matthew Gardner commented on this phenomenon. “The local housing market in 2022 ended with a whimper rather than a bang. Overall, the housing market is going to continue falling off the artificial ‘sugar high’ that was a function of the artificially low mortgage rates during the pandemic,” he said.
This is not necessarily a bad thing, as stability in the market could translate to more predictable price appreciation for sellers and better circumstances for buyers to enter the market. In most cases, it’s low- and middle-priced homes that are missing from the market, so many first-time buyers still have plenty of pent-up demand for inventory that meets their needs and financial situations.
Despite a 43.3% drop in closed sales compared to December 2021, last month saw the median price for single-family homes in King County rise to $825,000. That’s up from the median of $810,000 this time last year. This could speak to the lingering effects of inflation on the market or be a factor in the lack of entry and mid-level homes currently available to buyers.
The Seattle market experienced the same pattern, with a year-over-year price increase of almost 5%, from $839,000 in December 2021 to $879,975 last month. Closed sales were down in the city as well, dropping 43.5% from last year to just 394 units, leaving the market with just under six weeks of inventory. The condo market mimicked this trend, with the median price rising to $512,500 last month, up from $490,000 in December 2021. Additionally, Seattle condos offered the highest amount of inventory, with 2.5 months of stock.
Things were a little different on the Eastside, which had experienced perhaps the highest price boom during the “sugar high” of the pandemic. There, single-family home prices decreased around 15% year-over-year, landing at a median of $1,299,000 last month, compared to $1,529,500 in December 2021. This is likely due to higher mortgage rates dampening the buying power of potential homebuyers in the area. Entry-level buyers may be forced to look in more affordable markets for the time being, and December’s 39.5% decrease in closed sales compared to December 2021 reflects this. Interestingly, Eastside condos experienced a sold price increase to a median of $565,000, up from $550,000 last year. This is likely because condos are a much more affordable entry point to the Eastside market and may be experiencing higher demand as buyers tailor their expectations to the current market conditions.
After the ups and downs of the last year, Snohomish County ended exactly where it began, with a median single-family home price of $700,000 — the same as in December 2021. Closed sales in the area were down 38.3%, leaving the market with about six weeks of inventory. Throughout the pandemic, Snohomish County has been a relatively stable market compared to the fluctuations of Seattle and the Eastside, making it a desirable area for first-time buyers and those looking to maximize their buying power.
Looking ahead, Matthew Gardner expects 2023 will see continued price declines. However, “With mortgage rates expected to fall from current levels slowly, sale prices should start increasing again in the second half of the year,” he said.
Gardner continued, “Ultimately, once prices pull back to where they would have been if the pandemic had never occurred, they will start to stabilize and then return to a more normalized pace of appreciation.”
Sellers and buyers have certainly felt the impacts of shifting economic conditions on the housing market. A slower market pace and modest price decreases may be necessary to help reset expectations on both sides and set up sustained future success.
If you have questions about how to make the most of the current market conditions, give Kari a call.
EASTSIDE
KING COUNTY
SEATTLE
SNOHOMISH COUNTY
VIEW FULL SNOHOMISH COUNTY REPORT
This post originally appeared on GetTheWReport.com.
December 2022 Real Estate Market Update
As temperatures drop and we approach the end of the year, the local housing market has remained somewhat sluggish — an indication of a return to normal seasonality. Slower home sales are not necessarily a bad sign; in many cases, causes as benign as the holidays and inclement weather have pushed buyers off their path, with many choosing to wait for the new year before resuming their searches.
The market is still experiencing high-interest rates, though many experts agree we seem to be past peak inflation levels. While the 30-year interest rate recently dropped to 6.49% from the peak of 7.08%, it remains about a point above the June 2022 average of 5.42%. Windermere’s Chief Economist Matthew Gardner expects mortgage rates will continue to drop. “Early in the new year, I expect the Fed to start pulling back from their aggressive policy stance, and this will allow rates to begin slowly stabilizing,” he says. Gardner expects interest rates to remain above the 6% mark until the fall of 2023 when they should begin to dip.
Interest rates and weather are not the only things causing buyers to slow their trajectory. The larger amount of inventory in most markets has encouraged buyers to take their time and browse more than they’ve been able to in the past two years. Sellers must now compete with one another for buyers’ attention and offers. That said, listings priced accurately for the market are still attracting showings and strong offers. Plus, many sellers can afford to wait for the right offer.
These trends were reflected across King County in November, with a median sold price of $827,000 for single-family homes. That’s up from $820,000 in October, but the more noticeable change was in the number of closed sales. The county saw a 44.7% year-over-year drop in the number of sold units, dropping from 2,371 closed sales in November 2021 to just 1,312 closed sales last month.
Seattle followed much the same pattern, with a median closed sale price of $905,000 for single-family homes, up from $850,000 the same time last year. Closed sales also decreased from 763 in November 2021 to 423 last month, a drop of 44.6%. Condos in the city experienced an even greater decrease in sales, with a 54% year-over-year dip in sold units.
Prices on the Eastside decreased to a median of $1,316,000 for single-family homes after holding steady at $1,350,000 since August of this year. The inventory for Eastside single-family homes currently sits at 2.4 months. Condo prices in the area rose from $555,500 in November 2021 to $569,500 last month. Eastside buyers may opt for condos as a more affordable choice, given the current interest rates. Condo inventory in the area currently sits at two months.
Last month just 10% of residential units on the Eastside sold above the asking price. More than half the listings on the Eastside experienced price reductions in November as well, with 54% of sold listings having had a price adjustment at some point. Despite these recent trends, it’s important to note that median home prices on the Eastside are up 24% over the past two years — from $1,060,000 in 2020 to $1,316,000 last month.
Snohomish County remained somewhat similar to last month, with slightly less than two months of inventory on single-family homes and a median sold price of $700,000. That’s up slightly year-over-year from $695,000 in November 2021. Condos in Snohomish County had the least inventory of any area, with only 1.6 months’ supply.
Although interest rates are higher than we’ve grown used to over the past two years, the increased inventory means it is still a great time for buyers, especially first-time homebuyers, to enter the market. Resources provided by the Washington State Housing Finance Commission, including its free homebuyer education seminars and its down payment and closing costs assistance programs, can help counter some obstacles that may keep buyers sidelined. A savvy combination of interest rate buy-downs, adjustable rate mortgages, and the possibility of refinancing for lower rates can also help would-be buyers hit the ground running.
If you have questions about what this market means for you, please reach out to Kari for assistance.
EASTSIDE
KING COUNTY
SEATTLE
SNOHOMISH COUNTY
VIEW FULL SNOHOMISH COUNTY REPORT
This post originally appeared on GetTheWReport.com.
November 2022 Real Estate Market Update
As the final quarter of 2022 rolls on, it’s clear that these last months will be anything but typical for home buyers and sellers in King and Snohomish counties. In a real estate market that’s been defined by high competition and low supply for the last number of years, buyers and sellers are changing tactics as market dynamics shift due to rising mortgage rates and growing inventory.
While some buyers are waiting to see if rates and home prices drop, others are getting creative with their financing by utilizing buydowns, adjustable rate loans, carrying back second deeds of trust, and closing cost allowances to make their purchases. Sellers have been slower to adjust, with many resisting the idea of lowering their asking price to meet the constraints of buyers dealing with high-interest rates. However, for sellers willing to correctly market and position their listing, successful sales – and even occasionally multiple offers – can still be attained.
Seattle & King County
King County as a whole saw the median price of a single-family home increase from $875,000 in September to $903,000 last month. This was primarily a function of price gains in Seattle, where single-family homes sold for a median of $950,000 in October — up from $900,000 in September. Seattle and King County both have about two months of available supply, which is the most balanced inventory level the market has seen in years. The Seattle condo market has slowed a bit more than residential sales, with over 3 months of inventory and a median price of $522,500 — down from $525,000 year-over-year.
Eastside
On the Eastside, the median price for single-family homes has remained constant, sitting at $1,350,000 for the third month in a row. The average monthly mortgage payment on the Eastside dropped 19% from $9,226 in April 2022 (when the median price was $1,722,500 with a 4.98% interest rate) to $7,430 in August 2022 (with a median price of $1,350,000 at a 5.22% interest rate). However, while the median price has remained the same since August, the 30-year interest rate rose to 6.9% in October. At that rate, the average monthly payment is $8,891 — only 4% off the peak payment of $9,226 in April; this is despite a 22% drop in prices since then.
Snohomish County
Snohomish County saw prices fall slightly from a median of $735,000 for single-family homes in September to $730,000 last month. With less than two months of inventory, that market remains slightly more competitive than the Eastside or Seattle, possibly due to lower prices making it more accessible for buyers as they combat the higher interest rates.
Matthew Gardner’s Take
Windermere’s Chief Economist Matthew Gardner weighed in on the effect of mortgage rates on buyer behavior. While he believes many buyers may be forced to wait (either voluntarily or not) for interest rates to stabilize, he advises would-be buyers not to wait for prices to bottom out. “Those who hope to pick up a home ‘on the cheap’ are likely in for a long wait,” he said.
For many buyers, the answer to this conundrum is a pivot to adjustable rate mortgages, which are currently set at around 5.9%. With the 30-year fixed mortgage rate currently at 6.9% or higher, adjustable rate mortgages offer a more affordable inroad to homeownership, with the possibility of refinancing to a lower rate in a few years.
As we navigate these changing market conditions, Kari can help you assess the best path forward for your home sale or purchase.
EASTSIDE
KING COUNTY
SEATTLE
SNOHOMISH COUNTY
VIEW FULL SNOHOMISH COUNTY REPORT
This post originally appeared on GetTheWReport.com.
Q3 Western WA 2022 Gardner Report
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 Kari.
REGIONAL ECONOMIC OVERVIEW
The Western Washington labor market continues to expand. The addition of 110,000 jobs over the past 12 months represents an impressive increase of 4.9%. All but seven counties have recovered completely from their pandemic job losses. In total, the region has recovered all the jobs lost and has added an additional 30,000 new positions. The regional unemployment rate in August was 3.8%. This is .2% higher than at the end of the second quarter. That said, county data is not seasonally adjusted, which is likely the reason for the modest increase. The labor force has not expanded at its normal pace, which is starting to impact job growth. Although the likelihood of a recession starting this winter has risen, Matthew Gardner is not overly concerned; however, he anticipates businesses may start to taper hiring if they feel the demand for their goods and services is softening.
WESTERN WASHINGTON HOME SALES
❱ In the third quarter, 19,455 homes traded hands, representing a drop of 29.2% from the same period a year ago. Sales were 15.4% lower than in the second quarter of this year.
❱ Listing activity continues to increase, with the average number of homes for sale up 103% from a year ago and 61% higher than in the second quarter of 2022.
❱ Year over year, sales fell across the board, but when compared to the second quarter they were higher in Mason, Cowlitz, Jefferson, and Clallam counties.
❱ Pending sales (demand) outpaced listings (supply) by a factor of 1:6. This ratio has been dropping for the past three quarters and indicates a market moving back toward balance. The only question is whether it will overshoot and turn into a buyer’s market.
WESTERN WASHINGTON HOME PRICES
❱ Higher financing costs and more choices in the market continue to impact home prices. Although prices rose an average of 3.6% compared to a year ago, they were down 9.9% from the prior quarter. The current average sale price of a home in Western Washington is $748,569.
❱ The change in list prices is a good leading indicator and we have seen a change in the market. All but two counties (Island and Jefferson) saw median list prices either static or lower than in the second quarter of 2022.
❱ Prices rose in all but two counties, and several counties saw price growth well above their long-term averages.
❱ With the number of homes for sale rising and list prices starting to pull back, it’s not surprising to see price growth falter. We are going through a reversion following the overstimulated market of 2020 and 2021. There will be some ugly numbers in terms of sales and prices as we move through this period of adjustment, but the pain will be temporary.
MORTGAGE RATES
❱ This remains an uncertain period for mortgage rates. When the Federal Reserve slowed bond purchases in 2013, investors were accused of having a “taper tantrum,” and we are seeing a similar reaction today. The Fed appears to be content to watch the housing market endure a period of pain as they throw all their tools at reducing inflation.
❱ As a result, mortgage rates are out of sync with treasury yields, which not only continues to push rates much higher but also creates violent swings in both directions. My current forecast calls for rates to peak in the fourth quarter of this year before starting to pull back slowly. That said, they will remain in the 6% range until the end of 2023.
DAYS ON MARKET
❱ It took an average of 24 days for a home to sell in the third quarter of the year. This was seven more days than in the same quarter of 2021, and eight days more than in the second quarter.
❱ King and Kitsap counties were the tightest markets in Western Washington, with homes taking an average of 19 days to sell.
❱ Only one county (San Juan) saw the average time on the market drop from the same period a year ago. San Juan was also the only county to see market time drop between the second and third quarters of this year.
❱ The greatest increase in market time compared to a year ago was in Grays Harbor, where it took an average of 13 more days for homes to sell. Compared to the second quarter of 2022, Thurston County saw the average market time rise the most (from 9 to 20 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.
Listings are up, sales are down, and a shift toward buyers has started. After a decade of sellers dominating the market, it is far too early to say that the shift is enough to turn the market in favor of buyers, but the pendulum has started to swing in their direction.
A belief that the housing market is on its way to collapsing will keep some buyers sidelined, while others may be waiting for mortgage rates to settle down. Whatever their reasons, Matthew Gardner maintains that we will see a brief period where annual price growth will turn negative in several markets, but it is only because the market is normalizing. He certainly doesn’t see any systemic risk of home values falling as they did in the mid-to-late 2000s.
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.
How to Make Moving to a New State Hassle-Free
Moving to a new state is a big adjustment and can be draining. However, having the right information can make it less challenging. Here are some tips from Kari Haas Real Estate Team on how to make moving to a new state hassle-free and help you make the transition as smooth as possible.
Find a Job
If you’re moving to a new state, you’ll need to find a job in your new location. Check out job boards or networking in your new city to find job openings. Your job search should start with finding who needs your skills in the new state. Also, update your resume and cover letter to match the new job market. And if you’re moving to a new state, make sure you find information about the cost of living, as well.
Start a Business
Starting a new business in a new location can be daunting. Here are the steps to follow:
- Get familiar with laws and regulations. Research the laws and regulations regarding starting a business in a specific state.
- Choose a business location. Pick a convenient location that suits your budget and needs.
- Craft a business plan. Create a detailed outline of the services or products you’ll be selling, how to structure the business, your financial projections, and funding options for your new business.
- Create a plan of action. Craft a plan of action to follow since starting a business can be chaotic. If possible, create a team and delegate tasks.
Also, don’t forget about marketing! A lot of your advertising can be done through social media platforms, which will save you lots of money. However, you should also spend some time on content marketing, which means generating interest in a topic rather than simply advertising a specific product. This is a great way to build your customer base from the ground up, and Cornerstone Content can help you get started.
Adjust to the New Location
When you first move to a new state, it can be difficult to figure out where everything is. Take the time to familiarize yourself with your new surroundings. Explore your new city and find things to do that you enjoy. Consider joining social groups in your new state and making friends. You’ll also need to adjust to the weather in the new location.
Ready To Move?
Moving can be challenging but it’s also an exciting opportunity to start a bold new chapter of your life. Also, you can greatly reduce stress by doing some simple research and preparation beforehand. Research the job market, familiarize yourself with your new setting, and you’ll feel right at home in no time!
Kari Haas Real Estate Team exudes a passion for real estate that carries through to every client. Call 206-719-2224
Image via Pexels.
This post was originally written by Lisa Walker and was submitted exclusively to KariHaas.com
October 2022 Real Estate Market Update
Increasing listings inventory, lengthening time on the market and a slowdown in home price increases across the Puget Sound region herald a return to normalcy and better opportunities for buyers. According to September data from the NWMLS, active listings nearly doubled from a year ago, with pending sales declining by about 31%.
“The ‘Great Reversion’ continues, with the number of homes in the tri-county market of King, Pierce, and Snohomish counties up 106% from a year ago,” says Windermere’s Chief Economist Matthew Gardner. “It’s worth noting that current inventory levels in King and Snohomish counties are still around 13% lower than they were in September 2019 prior to the pandemic-induced market shift.”
While the recent sales data may be pointing to a market shift of a different sort, they may reflect some normal seasonal trends as well. October is typically an average selling month, with November typically performing about 76% as well as an average month, and December and January slowing even further as the holidays and end of year pull some buyers from their home searches.
That being said, last month still saw year-over-year price increases in Puget Sound’s busiest metros, despite some month-over-month price dips. King County single-family homes saw a price decrease from $899,999 in August to $875,000 last month. That’s still up from last September’s median price of $825,600, and condos also saw year-over-year price increases, from $466,501 last September to $483,000 this September. With about two months’ inventory for both housing types, King County buyers are better able to take their time and consider the details of their purchase.
Seattle also saw a slight month-over-month decrease in single-family home prices, from a median price of $927,000 in August to $900,000 last month. That’s still up six percent from $850,000 in September 2021. Conversely, year-over-year condo prices slumped a bit, falling to $499,000 last month from $505,000 in September 2021. Condo inventory has also increased, with buyers benefitting from over two months’ supply. Sellers are encouraged to price wisely and accurately to beat the competition in these conditions.
The Eastside was the only area to see prices stay the same month-over-month, with the median price for a single-family home remaining constant at $1,350,000. That’s an increase from the median price of $1,310,000 in 2021. Active inventory also increased, up to 1.9 months’ supply. The last time the Eastside had this many listings (approximately 1,200) was before the pandemic in 2019.
Snohomish County followed Seattle and King County, with prices dropping slightly to a median of $735,000 for single-family homes last month — down from $749,000 in August. Inventory was slightly tighter in the area, with about 1.75 months’ supply, though it’s still an improvement over the tight inventory at the height of the pandemic.
Many buyers are feeling a bit of a “pandemic hangover” when it comes to interest rates, which may be contributing to the increase in inventory across the region. The conditions that led to the historic low-interest rates were unprecedented, and buyers now need to be willing to consider buying at a higher rate with the goal of refinancing later on if they’re able.
The future of the local market will be dictated by fluctuations in interest rates. If rates increase from the September average of 6.11%, real estate experts expect new pending sales to continue to be 25% – 30% below the prior year in units. Median closed sale prices will roughly decline 10% for each 1% increase in interest rates. However, if interest rates decline from the September average, we can expect pending sales to increase, prices to remain flat, and active inventory to decline more than normal.
Matthew Gardner also points out that home prices “remain positive compared to a year ago.” He doesn’t expect this to change by the end of 2022. By spring, however, Gardner believes “it’s likely that year-over-year prices will start to trend negative. That said, I firmly believe that this will only be a short period of correction, so homeowners in the Puget Sound area shouldn’t be too concerned, especially given that 64% of them are sitting on over 50% of home equity.”
If you have questions about how home inventory or inflation could impact your position in the real estate market, please call the Kari Haas Real Estate Team.
EASTSIDE
KING COUNTY
SEATTLE
SNOHOMISH COUNTY
VIEW FULL SNOHOMISH COUNTY REPORT
This post originally appeared on GetTheWReport.com.
Fix It Up and Sell It: A Senior’s Guide to House Flipping
Believe it or not, retirement doesn’t suit everyone. In fact, some people simply enjoy working while others want to earn a little extra cash. That’s where house-flipping comes in. It can be an extremely profitable side gig for seniors willing to invest time and money. If you’re curious about learning more, you’re in luck. Kari Haas has some tips and resources to help you get started in the house-flipping business. Continue reading for a Senior’s Guide to House Flipping.
Finding Your Ideal Property
To find your ideal property, start by:
- Employing an agent: They know the best areas for flipping homes. If you’re looking for rehab properties, HomeLight suggests hiring an REO agent.
- Look for auctions: If you’re looking for a good discount, estate and foreclosure auctions provide good opportunities.
- Short sales: Some homeowners need to sell their property quickly, sometimes for less than the amount owed on their mortgage. These are known as short sales.
Finding a Mortgage
There are several options when it comes to finding a mortgage. FHA 203 (K) is a type of government-insured mortgage that allows a borrower to take out a loan for the property’s purchase and renovation costs. Other options include a VA renovation loan, HomeStyle loans, and a CHOICE Renovation loan. The Kari Haas Real Estate Team has trusted mortgage brokers to assist you in finding the right fit for you.
Caution Is the Name of the Game
The primary purpose of buying a fixer-upper home is to save money on the purchase price. Still, it doesn’t always work out as expected due to unforeseen repairs and necessary renovations. When searching for a property to renovate, look out for certain red flags, such as structural damage or dry rot. Add 20% to your estimate, particularly for major repairs, such as electrical work, HVAC upgrades, foundation problems, or issues with mold or asbestos.
Formalize Your Business as an LLC
When starting a house-flipping business, consider forming a limited liability company (LLC). This business entity offers benefits when it comes to filing taxes and helps shield you from personal liability. Each state has its own rules and procedures for setting up an LLC. In most cases, it’s easy and affordable and can often be done online.
Now that you’re legitimately structured and ready to operate as a going concern, you’ll need to take initial necessary steps to get up and running. This includes drafting a business plan, setting a budget, and developing a marketing strategy. This strategy should involve digital marketing on social media, which in today’s day and age is essential. Fortunately, you don’t have to be a technological wiz; in fact, these days, you can easily design banners online then let them do the work for you. With free online templates, you’re able to customize and share posts in no time.
Renovations to Boost Value
Homes & Gardens notes that there are several options to add value to your property through renovations. For instance, you can upgrade the kitchen lighting or hood range over the cooking surface, or add insulation to the attic to make the house more energy-efficient.
Some renovations, such as kitchen remodels, add more value to a property than others. Remodeling a kitchen requires a competent plumber, especially if you plan to have pipes repaired or replaced. Plumbing services typically cost between $45 and $150 per hour. Before hiring, always take a close look at reviews and insist on only working with licensed and insured professionals.
If you plan to hire contractors for repairs or renovation projects or a property manager, it’s important to set up a payroll system before contacting them. Keep in mind that there are many payroll software options; just be sure the platform you choose offers automatic payroll scheduling, as well as automatic calculating and tax filing, in addition to same-day direct deposit and the ability to manage employee benefits.
Selling Your Fixer-Upper
When the time comes to sell your fixer-upper, find a real estate agent who’s as invested in selling your home as you are. When searching for one, ask for referrals from people you trust. Set a realistic sale price using a home estimate tool.
House Flipping in Your Senior Years
House flipping is an exciting side gig, and if done correctly, it can be considerably rewarding financially. If you can avoid the pitfalls, employ the right professionals, and deal with the finances, you can enjoy all the benefits of house flipping in your senior years.
Whatever your real estate needs, Kari Haas can help you reach your goals with confidence. Call 206-719-2224.
This post was written by guest blogger, Lisa Walker.
Image courtesy of Unsplash
September 2022 Real Estate Market Update
After its breakneck pace over the last two years, it appears the housing market has finally reached a soft bottom to the price corrections that began in April of this year. Reports that we’re entering a bear market are generally exaggerated, however, as the market seems simply to be resetting to a more balanced state where buyers and sellers are at last on more equal footing. Perhaps as much as anything, the market’s performance in August reflects a typical pattern for a month that has traditionally been a slower time for housing sales.
In King County last month, available inventory declined slightly to 1.5 months’ supply, with the median home price of $899,999 up slightly over July’s median of $890,000. That’s also an increase of 5.8% from $850,000 in August 2021. With 57% of homes selling in under two weeks and 22% selling over list price, many King County home buyers still have to move quickly and competitively, although with more leverage than they had earlier this year thanks to recent supply increases.
The Eastside had slightly higher levels of housing inventory available, at about 1.6 months. The median sold price for single-family homes rose 4% year-over-year, to $1,350,000. The higher asking prices in this area mean fewer homes are selling over asking than in Seattle, with about one in four homes selling at or over list price. Condos remain a more affordable option in this highly desired area, with the median price for an Eastside condo sitting at $569,500 last month.
Seattle has slightly less supply than King County as a whole, sitting around 1.4 months of inventory. The median sold price for single-family homes was up 6% year-over-year, at $927,000. About 65% of single-family homes in the city sold within two weeks, while 26% of homes sold above list price. With 2.4 months of inventory, condos may offer buyers an easier way to break into the market. The median sold price for condos last month was also a more affordable $520,000, though that’s still up 8.3% year-over-year. Increasing rents in the city and across the Puget Sound region are driving some buyers into the market, as homeownership is a hedge against inflation and rising rent costs. Even with that in mind, sellers still need to price accurately to avoid their homes sitting on the market for too long.
Snohomish County had the lowest inventory level at 1.3 months of supply (which is still more than the county’s average the past few years). The median sold price for single-family homes was $749,999, which is up 8% from August 2021. Just over half of the available homes sold within two weeks, and 19% sold over list price. The median price for condos in Snohomish County fell almost 5% year-over-year, landing at $474,999. This area continues to be a draw for buyers who may be priced out of the Seattle and Eastside markets.
Windermere’s Chief Economist Matthew Gardner believes the decrease in prices is a sign we’re entering a more typical housing market than we’ve seen in the last few years. “Home sales increased month-over-month, but the rise in listings is causing prices to soften,” he said. “I predict prices will drop further as we move into the fall. The market is simply reverting to its long-term average as it moves away from the artificial conditions caused by the pandemic.”
EASTSIDE
KING COUNTY
SEATTLE
SNOHOMISH COUNTY
VIEW FULL SNOHOMISH COUNTY REPORT
This post originally appeared on GetTheWReport.com
Upsizing for Retiring: Find a Home for Your Homestead
Some retirees plan to downsize their lives and homes after a while, ostensibly to make things simpler and to have less baggage in retirement. But you’re different: You want to upsize and pursue a grander new life of homesteading as a retiree, with enough space to welcome family whenever they wish to visit, pursue crafts you never got to do, and create a different kind of life that you never got to experience.
The good news is that it is within your power to create the homesteading life you wish to live. Here are some tips from Kari Haas for finding a new home that will help you build the kind of self-sufficient environment you seek:
Look for the right kind of home
For true self-sufficiency and proper homesteading, Treehugger notes that you’ll need a large space—in both land and square footage of your house. Before you get a loan or do any specific research, know your budget and make a list of features that you will prioritize. Do you want a large enough plot of land so that you can raise horses? The Extension Foundation notes that one to two acres is a general rule of thumb when it comes to land needed for a horse to forage (30-38 acres per horse for non-irrigated dryland pastures).
Do you want enough room for a workshop—enough land to build one after the fact or one already on the property? Do you want to have enough space to have a large garden? Write these down to identify which are most important to you.
Hire a realtor
This could be the most crucial step in the process of buying your new home. They are practically necessary if you’re both buying and selling a home simultaneously. Having someone like Kari Haas on your team who understands the market, knows what you’re looking for, and can negotiate on your behalf is an incredible advantage. Realtors pay attention to details that you may not even think of, as well. If you have a real estate agent sell your current home, there’s a better chance of it selling at a higher price—there’s data to back it up.
Make sure you can afford your new home
A huge part of upsizing is making sure you have enough funds to afford the bigger space. You may be able to sell your old house and, thereby, cover the majority of the cost of moving into your new homestead. Just make sure you research the number of properties available in your area and check the property prices in your area and get a handle on how much similar houses are selling for, especially as the market fluctuates.
Start a new business in your home
As a retiree, you have time now to pursue activities you didn’t necessarily have the bandwidth for when you were working full-time. Why not turn those hobbies into a business to make money on the side? Not only will it help you afford your new home, but it will present you with an opportunity to do something fulfilling and provide a service or products to other people.
If you do decide to start a small business, consider using a formation service to form a limited liability company (LLC) to limit your liability, get personal asset protection, and enjoy tax advantages. Make sure to check on the rules of forming an LLC in the state so you’re up to speed.
There are countless options out there for aspiring and ambitious entrepreneurs – not to mention ways to streamline your business for the new age! For instance, if you’re looking to automate your business, spend some time getting acquainted with the leading robotics companies that are helping to shape the future of technology.
With a good amount of research and due diligence, finding a home for your homestead is certainly within reach. Follow these guidelines and you’ll be up and running in no time!
Whatever your real estate needs, Kari Haas can help you reach your goals with confidence.
Call 206-719-2224
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This post was originally written by a guest blogger, Ray Flynn
August 2022 Real Estate Market Update
The summer continues to heat up, and patient buyers are being rewarded as market shifts create a new dynamic between buyers and sellers. After years of intense competition between buyers for the most desirable listings, increasing inventory and slower price appreciation across the region have caused a pivot, with sellers competing more strongly against each other than they have in previous years.
The Return to a Balanced Housing Market
While this may cause uncertainty in some sellers, the rise in active inventory is an indication that we are returning to a more balanced housing market as a whole. Sellers can still be very successful with their home sales, as long as they price their homes accurately and understand that they may not see the exorbitant offers that were typical a few months ago. This is a pragmatic approach, and we should see some relief in the “buyer gridlock” that had kept homeowners in place who wanted to sell and move but simply had no place to go.
Inventory, Affordability, & Median Sale Prices
Even with the increased inventory across the Puget Sound region, we may start 2023 with low supply, high demand, and multiple offer situations. Prices are coming down largely as a result of the previous rapid price appreciation and rising interest rates. However, Puget Sound’s underlying lack of supply and huge demand has not changed, although rates have improved. Seattle’s median price for single-family homes rose 6.4% year-over-year, from $896,500 to $954,500. That’s down slightly from the million-dollar median the city hit in April, and should help create a more inviting market for prospective buyers. The median price for condos is currently a more affordable $537,000, with 2.5 months of inventory.
King County as a whole is experiencing much the same phenomenon, with the median sale price for single-family homes decreasing from $938,225 in June to $890,000 last month. However, that’s still up 2.1% from $871,000 in July 2021. Single-family homes on the Eastside currently have the most inventory in the tri-county area, with 2.5 months’ supply. The median price for single-family homes has dropped to $1,420,000, down from $1,500,000 in June, but up 6.7% year-over-year. It’s important to note that this decrease in the median price is likely not due entirely to price depreciation, but from the fact that lower-priced homes made up a larger percentage of the overall sales in the area, thus lowering the median sold price. Real estate experts believe that the area continues to model a price correction based on the 2018 market, suggesting the median closed sales price will bottom out in about two months’ time around $1,300,000 or higher.
Snohomish continues to remain a more affordable area for buyers, with a median sold price for single-family homes of $770,000. Although that’s down from June, it is up a full 10% year-over-year, from $700,000 in July 2021. The area also has more active inventory—nearly two months’ supply. This, combined with the lower median price for condos of $500,000, makes it an appealing option for buyers with more constrained budgets.
Conclusion
The increase in active inventory across the region is not an indication of slowing demand. The majority of homes are selling in under two weeks, and prices continue to appreciate year-over-year. Builders are working diligently to meet demand, but until more projects come online, buyers and sellers will have to navigate these new market dynamics together.
If you have questions about these changes in the market or about real estate in general, please reach out to the Kari Haas Real Estate Team, we are happy to help!
EASTSIDE
KING COUNTY
SEATTLE
SNOHOMISH COUNTY
