Seattle Real Estate
2007 was the year of aggressive home sales but in 2015, those highs are no longer relevant. Last year alone there were over 88,000 homes sold resulting in an over 14% gain over 2014. According the Northwest Multiple Listing Service for the Puget Sound, there were 75,975 single family homes and 12,356 condos or multi-family style properties valued at $34 billion. That’s 23% higher than in 2014.
The previous highs were in 2007 where the NWMLS registers just over 82,000 sales valued at $32 billion.
In 2015, the median price for single-family homes and condominiums was $310,000. In 2014 it was only $285,000. For King County, the median home price was $480,000 compared to $440,000 in 2014. Over 9% more homes sold in 2015 and 2014 in King County. In Pierce County, there was a nearly 17% increase over 2014. The median home price was $249,950, up from $230,000 in 2014. The number of homes sold was just over 17% from the previous year and Snohomish County was up just under 17%. The median home price for Snohomish County went from $326,360 in 2014 to $355,000 in 2015. [Source]
Even though there is lower inventory throughout the Seattle region, prices a number of sales continue to climb. The median home price for downtown Seattle is roughly $439,000-$500,000 with higher priced communities upwards of $765,000. Eastside cities such as Bellevue, Kirkland and Mercer Island have median list prices from $847,000 to $1.8 million.
For more information on the Puget Sound real estate market check back with our blog regularly and to find out what your home is worth, contact Mary Pong with Better Properties.
In a recent article of the Puget Sound Business Journal, homeowners who sold their home in King County (Seattle) received an average of 48% gain over the original purchase price as of October, 2015. This puts King County near the top of the 127 US counties reported by RealtyTrac. Only six other counties surpassed King County in the average increased; most found in California.
The counties analyzed saw at least 500 sales in October and home price data was available on both the most recent home purchase and previous purchases. 12% of the counties sold for a lower price than what they were purchased for and counties with the biggest loss were Burlington County, New Jersey as well as counties in the Chicago metro area, Memphis, and the Greensboro metro area. Of counties where homeowners received more than what they originally paid included Alameda County in California, Santa Clara County, the San Jose area, Riverside and San Bernardino as well as Multnomah County in the Portland metro area.
The average profit for a King County homeowner was $136,082. King County remains to have a sustained price appreciation were median home prices were up 10% from a year ago, October, 2014. The Seattle market remains remarkably tight and competitive. Homeowners are seeing multiple offers leading to rapid price escalation.
If you’ve been on the fence about selling, now might be an excellent time to consider your purchase price versus the profit you could gain if you sold today. Selling in the winter months actually has been proven to sell faster and for potentially more profit as the amount of competition is less and homebuyers are more serious. For more information please contact Mary Pong with Better Properties Seattle.
According to a recent article in Juwai.com, Chinese property investors are still finding the American dream alive and well. Many of these investors are focusing on California, Florida, New York, Texas and Washington state as these are the five favorite US states for Chinese buyers. Major cities such as St. Louis, Gainesville and a Seattle are the next rising hotspots to watch for Chinese property investors. The US ranks as the #1 medical destination for Chinese HNWIs (high net worth individuals) and the US offers many incentives to entice Chinese buyers.
Despite China’s recent economic turmoil, many investors, who already own properties in the US are looking to diversify their assets by investing overseas. Many investment buyers prefer new apartment buildings as this is very common in China. Immigration investors prefer to live in established Chinese communities while education buyers seek apartments close to US universities, colleges and secondary education facilities.
Chinese are also part of the top five most prolific international homebuyers in 46 out of 50 states. Chinese buyers spent nearly $28 billion on American real estate and many plan to retain their spot as the largest group of foreign property investors In the US. This is compared to the $22 billion spent in 2014 and just $12.8 billion spent in 2013.
Wealthy Chinese investors are also requiring a demand for top-notch beauty and medical services abroad. The US more than makes up for the long travel time and price. Although not all buyers are from China as a 49% are already residents of the US and 43% are nonresidents from outside the US. Chinese buyers both from China and the US are looking at US properties favorably. Juwai.com research shows that “locations with the fastest growing demand for mainland Chinese buyers are not actually the traditional Chinese – American population centers, even though the still have the largest share of buyer interest.”
39% of investors use the property as their primary residency and 23% by with rental investment in mind. Just 7% purchase a home in the US as a private accommodation for their children studying in the US, which can also double as a vacation home.
If you are interested in learning more about ideal properties for Chinese investments please contact Mary Pong today.
Washington state may not be the most expensive state in the US but we do have one city that tops the list Of 25 Highest Priced Homes in the US. That city is Mercer Island. Research was collected on the average listing price of a four bedroom and two bath home in more than 2700 markets across the US for six months at the beginning of 2015. The average Washington state home was priced at $404,000, far lower than the average price in many of the states most expensive cities. Even though individual neighborhoods may offer different price points, the research with collective across the entire city for this size home.
Of course Seattle’s Eastside tends to dominate the list for Washington state but even surrounding Puget Sound city such as Bellingham made the list at No. 12, with an average home price of $528,000. The top five most expensive cities in Washington state were at the top 100 most expensive cities in the country as well.
#1 is Mercer Island as previously stated with an average home price of $1.06 million. Mercer Island is located between Bellevue and Seattle.
#2 is Bellevue, where the average home price is $813,484.
#3 is Redmond located on the Eastside as well with an average home price of $767,603. (New construction homes are being listed over $1 million.)
#4 is Sammamish located east of Seattle with an average home price of $762,989.
#5 is Kirkland, on King County’s Eastside with an average home price of $719,517.
#6 is Edmonds, located north of Seattle by about 30 minutes and along the waterfront with an average home price of $681,215.
#7 is Seattle with an average home price of $674,309 covering Capitol Hill, the waterfront, Queen Anne Hill and West Seattle.
#8 is Issaquah located along I-90 east of downtown Seattle with an average home price of $646,246.
#9 is Shoreline and the Lake Forest Park area with an average home price of $568,887.
#10 is Kenmore, located just north of Seattle and Lake Washington with an average home price of $543,500.
Remember, these home prices are all listed for a four bedroom and two or three bath home. Other home prices and average listings for two or three bedroom homes were not accounted for in the research.
Image by Andrew E. Larsen Flickr
According to a recent article in the Seattle Times, King County’s median price of a single-family home was $480,000 for October, 2015, which was 7.3% higher than just a year ago. Tight inventory, slow new home construction and demand are all reasons for the increase in price. in the single family homes and condo listing market, there were 31% lower inventory than a year ago, the widest gap this year so far, according to the local Northwest Multiple Listing Service. A 5-month supply is a healthy balance, meaning that if no other listings hit the market as of today, it would take 5 months to exhaust the market. Currently, King County is just over 1 month. We haven’t seen these levels since 2010. In Seattle, this figure is less than one month.
What this means for buyers and sellers:
Listings that hit the market are typically gone quickly if priced correctly. Over-pricing is still an issue as some condos have been on the market for several months. Seattle must find the balance but October was the second best on record for sale. Many experts believe it will remain a hot market through the winter as well. New construction is not able to keep up with the demand. For the first 3/4 of 2015 the number of permits is actually down 2% for single family homes yet multi-family home permits is up 39%. The reason? Shortage of land according to many home builders. King County planners feel that there is sufficient supply but home builders see a different perspective. There are simply not enough willing sellers for that land. For instance, in Redmond, there may be 20 people with 5-acres of land that are just not willing to sell. Without this land, single family homes are in short supply and multi-family properties gain higher priority.
People are moving north or south of the Seattle area in order to get the home and price they desire. Median home prices soared in most Seattle suburbs. Snohomish county also saw an increase of over 11% for their median home price running around $365,000; Pierce county was up 10.5% and Kitsap County up 3.4%.
For more information on finding the right single family home or condo in Seattle or surrounding suburbs, please contact Mary Pong today. With her expert research you are sure to find the right property for your needs and budget.
“Seattle – Fremont Cut from Eliza Ferry Leary House 01” by Joe Mabel. Licensed under CC BY-SA 3.0 via Commons – https://commons.wikimedia.org/wiki/File:Seattle_-_Fremont_Cut_from_Eliza_Ferry_Leary_House_01.jpg#/media/File:Seattle_-_Fremont_Cut_from_Eliza_Ferry_Leary_House_01.jpg
According to the S&P Case Schiller 20 City Index, Seattle home prices rose faster than the national average in August, 2015. The Seattle average increase .7% compared to the national average of just .1% across 20 major cities in the US and .4% nationally. The major Puget Sound counties of King, Snohomish and Pierce all experienced larger increases than all but three cities on the list. [Read more…] about Regardless of Talks, Seattle is a Hot Real Estate Market