NWMLS KIRKLAND, WA. (Jan. 23, 2012) – Members of Northwest Multiple Listing Service tallied 56,290 closed sales of single family homes and condominiums during 2011, improving on 2010′s volume by 4,290 transactions for a 7.4 percent increase.

Last year’s completed sales included 48,952 single family homes (up 7 percent from 2010) and 7,338 condominiums (an increase of more than 10 percent from 2009). Together, these sales were valued at more than $16.7 billion, about $900 million less than the previous year (a decline of 5.1 percent).

Both median prices and inventory dropped compared to 2010. Prices fell 10.3 percent system wide, while the number of new listings added to inventory was down more than 13 percent. Brokers added 101,430 listings to the database during 2011, which was 15,269 fewer than the total number for 2010.

Last year’s median price for closed sales of single family homes and condos was $235,000. In 2010 the median selling price was $262,000. For the 21 counties included in the MLS report, the median price ranged from $120,000 in Grays Harbor County to $387,500 in San Juan County.

In King County, which accounted for 40 percent of last year’s sales, the median selling price was $311,748, down about 10.7 percent from the previous year’s figure of $349,000.

In its annual statistical summary report for its 20,000-plus brokers, the multiple listing service examined various indicators of activity. Among the findings:

• Single family homes accounted for about 87 percent of the sales volume as measured by units, and about 90 percent of the dollar volume.
• About half the homes that sold last year had 3 bedrooms, while three-fourths of condos had 2 or fewer bedrooms.
• Prices for 3-bedroom homes built before 2009 vary widely among the counties in the Northwest MLS market area, ranging from $112,375 in Grays Harbor County up to $408,500 in San Juan County.
• On average, Northwest MLS brokers represented 34,000 active listings each month.
• Of 860 million-dollar-plus sales of single family homes, more than half (54.8 percent) were in Seattle’s Eastside suburbs. Of these high-end homes, 145 of them were in the MLS map area encompassing the area west of I-405, including Bellevue and the waterfront communities of Beaux Arts Village, Clyde Hill, Hunts Point, Medina and Yarrow Point.
• The highest priced single family home in the MLS system that sold last year was located in the Town of Hunts Point on the eastern shore of Lake Washington, which commanded $14,750,000. The highest priced condominium, located in downtown Kirkland, fetched $3,249,000.
• A comparison of median prices of home sales within school districts in the Northwest MLS market areas shows the most expensive homes were situated in the Mercer Island School District ($824,000), followed by Bellevue ($550,000) and Issaquah ($530,000). The least expensive homes were in the Queets-Clearwater School District in Jefferson County ($30,000), the Vader School District in Lewis County ($47,900) and the Wilson Creek School District in Grant County ($52,500).
• Northwest MLS members reported 81,019 pending sales (mutually accepted offers) during 2011. That marked an increase of about 10.5 percent from 2010 when members logged 73,349 pending sales.
• The pace of sales as measured by “months supply” (an estimate of how long it would take for all inventory of active listings to sell at the current pace assuming no new inventory is added) showed a system-wide total of 5.02 months, improving on a figure of 6.42 months for 2010. Using this measurement, Snohomish County had the lowest supply, at 3.69 months, followed by King County at 3.75 months. (Economists consider a supply of 3-to-6 months to be a balanced market, meaning the market favors neither buyers nor sellers.)

As I mentioned in a previous post, the market is usually pretty slow in January and February.  It’s not necessarily that buyers aren’t looking to buy.  Rather, there just isn’t much inventory during this time of the year.  As the chart above shows, June and August were the highest volume sales months last year.

Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership includes more than 20,000 real estate brokers. The organization, based in Kirkland, Wash., currently serves 21 counties in Washington state.

[this entire article was reprinted from the Northwest Multiple Listing Service news release on January 23, 2012]

In the past two and half weeks, there have only been three single family homes that have come on the market in N. Capitol Hill.   In N. Admiral (West Seattle), only one home has come on the market during this time!   And in the Mt. Baker neighborhood, they haven’t had a new listing for over 45 days.  Buyers are anxious and ready to buy!  Yes, it’s true – there are buyers out there.  And, if you prepare your home and price it right, you could sell your home more quickly than you think.  Case in point:  33% of the homes currently pending inspection in Ballard were on the market for less than two weeks.  And, of the homes pending right now in Ballard, 41% were listed for 14 days or less!  And, many of these had multiple offers.

Often times, I hear sellers say they want to wait until Spring so their yard looks nicer.  I say with the statistics above, why wait?!   There’s little to no ‘competition’ right now.  Touch up the paint, de-clutter and price your home right – these are all keys to a quick sale.  Pricing strategy is especially important.  If your home is valued around $600K-$650K, consider affordability.  For buyers to get the best interest rates, and therefore, the most affordability, their loan needs to stay under the current loan max of $506K.  A typical ‘move up’ buyer will want to put 20% down on their purchase.  This means that their purchase price should not exceed $607K.  If the price of your home is slightly above this price, consider lowering it just a bit to the $607K price in order to capture the most buyers for your home.

If you are nervous or just not sure what you can get for your home, talk to a trusted Realtor who can help you strategize the right approach for your home and personal situation.

As any good Realtor knows, pictures say a thousand words.  And, when it comes to talking about houses, people want to see pictures!  To spend just half a page on each of these homes seemed to actually make them insignificant.  And, to only provide one picture on each home leaves readers wanting more.  Did they just not have enough ad revenue this month to justify adding 5 or 6 more pages to this story?  With only half a page devoted to each “Greatest Home”, it feels to me that this story was just rushed and they didn’t have enough time to truly give their readers the extra details (and photos!) we would naturally yearn for.

Ok, I guess there is one home on the list I don’t think should be there.  Not because I don’t think it’s an amazing house, but it’s not even located in Seattle!  The Frank Lloyd Wright home in Normandy Park is stand-out house.  While I have personally seen this home (and wrote a short blog story about it), last time I checked, Normandy Park was not a neighborhood of Seattle, but its own city.  With so many great homes in Seattle, why take up one slot on the list with a home that’s not even in our city?!  All they would have had to do was entitle the article “The 10 Greatest Home in the Seattle Area” and it would have been a more accurate title.

Take a look at the list and tell me if you agree think the homes selected were the right ones?  If not, which Seattle homes do you think should be on this list?  If you are interested in more historical homes in Seattle, “Homes and Gardens of the Pacific Coast:  Seattle, 1913″ is a great historical reference.  Most of the pictures were taken shortly after the homes were built, so you see the homes in their near-original state.

In a recent article by the National Association of Realtors, they outline considerations to keep in mind when weighing your purchasing options.  Below is an excerpt of that article.

PURCHASING CONSIDERATIONS:

• How long do you expect to live in your new home?
• What can you comfortably afford to pay each month for housing-related expenses beyond your mortgage?  These include:
  • Property taxes
  • Homeowner’s Insurance
  • Utilities
  • Maintenance costs
  • HOA dues (if purchasing a condo)
• Do you have the funds to pay the additional costs associated with purchasing a home?  (closing costs, moving expenses, etc.)  In addition to having a down payment of typically 3.5% or more, you can expect your closing costs to be another 3% or more of the amount you are borrowing.
• Do you know your credit score?
• Have you built up your savings enough to provide you with an emergency fund for unexpected events?
• Are local market prices favorable to purchasing?  What are your expectations on future prices?

RENTING CONSIDERATIONS:

• If you are currently renting, what are your rental expenses? (monthly rent, utilities, parking, HOA dues, etc.)
• Do you live in a city where buying can be cheaper than renting?
• How does renting vs. buying factor into your long-term investing goals?

OTHER FACTORS:

• What are your personal preferences regarding the type of housing you wish to live in?  How does location factor into your housing preferences?
• If you have children, or plan to have children soon, have you done your research on the schools in the neighborhoods you are considering?
• How do you expect your personal situation to change in terms of your future housing needs?
• If you currently own a home, is your home ready to be listed for sale?  (touch up paint, cleaned carpets, etc.)

For first time home buyers, check out this LINK for more tips about purchasing a home.

Outside

Enhance the curb appeal of your home by spending some time cleaning up your property and your home’s exterior. Doing so will help increase the number of showings as well as your home’s selling price.

1. Keep your landscape looking clean and trim by mowing and watering your lawn frequently.
2. Prune trees and bushes, and clean up mulch and ground cover.
3.  Spread grass seed to cover up bare spots in your lawn.
4. Plant flowers in your yard. Hint: Yellow flowers can signify new beginnings and can evoke positive emotions when it comes to home-buying.
5. Sweep sidewalks and walkways and clean up the sides of your home. If needed, rent a power washer.
6.  Make sure your house number is displayed and clearly visible from the street.
7.  Minimize clutter. Rent a storage facility to keep bikes, toys and other yard equipment.
8. Repaint your home or touch up as necessary to give a kept-up appearance.

Inside

Clean up clutter and create space, both of which will help buyers envision themselves living in the home.  Here are a few others:

1. Put away personal photos, artwork, trophies and other belongings. Remove items you’ll take when you move, including books and other items on counters and shelves.
2. Tidy up all closets and cabinets. Discerning buyers will open closed doors, so make sure everything is organized. This will show buyers that you take care of your Puget Sound home for sale from the inside out.
3. Remove any unnecessary furniture that reduces the space of a room. These types of items include shelving units, extra leaves from the dining room table, etc. If needed, rent a storage unit.
4. Touch up paint on walls and moldings.
5. Clean carpets or consider replacing badly stained carpets.
6. Clean grout in bathrooms and replace caulk where needed.

Lastly, start interviewing a real estate agent sooner rather than later.  The person you hire should be able to suggest the specific items your home needs to help it sell quickly.

For more information, please see Coldwell Banker Bain’s website.

*This article was adapted from Coldwell Banker’s Bain website.

In some neighborhoods, there is virtually no inventory, like North Capitol Hill.  And certainly, as we get closer to Labor Day, sellers often decide to postpone listing their home until after the holiday.  In other neighborhoods like West Seattle, there is a fair amount of options out there and yet, only certain price points are selling well.  Let’s look at West Seattle further, which has a wide variety of price points available.  Currently, there are 59 properties pending inspection between $79K – $790K with an average list price of $338K; median price of $299K.  There are 107 properties pending sale priced between $79K – $1.795M with an average list price of $358K; median price of $290K.  So, it would seem that first time homebuyers are out there looking and buying.  (they are the ones primarily looking under that $400K price point)  But, buyers in that $600K plus price point seem reluctant to jump into the market right now.  Maybe their 401K’s got beaten up during the market crash a few weeks ago, or perhaps there is still fear of job instability out there.

If you are someone who is looking at that $600K+ price point and have decided to put your search on hold for now, I’d love to hear from you!  Is it just summer in Seattle, or do you have reservations about buying in this marketplace right now?  Take my poll below and let’s see what everyone has to say!

Email me at rebeccacarlson@cbbain.com if you’d like a copy of the entire report.

In a recent CNNMoney.com story, they looked at 10 cities across the country to determine which cities were better to buy or which ones were still best to rent.  Seattle was rated as a “buy”!  Based on our historical average price gains in homes, and the price reductions in homes over the past few years, they believe that renters should considering buying than renting.

Of course, no matter how great the real estate market may be for buyers, not everyone should become a homeowner.  Beyond the obvious things, such as bad credit, or unstable work situation, if you don’t plan to live in the city you are currently at for more than two years, renting is the best way to go.  If you are not sure what to do, a reputable lender can help you look at all of the costs to determine the best scenario for you!

Now that I do open houses for a living, I’m surprised at how many potential buyers or sellers don’t use the open house more to their advantage.  For those people who are seriously in the market to buy or sell, an open house is a great place to interview your next Realtor. 

While most people find their Realtor through a referral from a friend, co-worker, etc, attending an open house is the second best way to find a Realtor to partner with you on your search or home sale.  If you are selling your home, an open house is a great opportunity to check out how the Realtor speaks about the house they have open, what type of materials they provide, and how their general personality is.  Based on what you see, is this person someone you would want to represent your home?    Another reason to attend open houses is to also see how homes compare to yours.  Have they been staged?  Are they updated?  Based on what you see, how does your home stack up? 

If you are a buyer and don’t have a Realtor, you will ultimately need someone to represent you on your purchase.  Instead of shying away from the Realtor at the open house, I say own your search!  I know many buyers are hesitant to use a Realtor because they don’t want to be pressured and want to take their time looking.  But, I say you just haven’t found the right person to partner with you!  There are many patient Realtors (like me!) who truly are motivated by helping you find your dream house.  Use the open houses you attend as an opportunity to interview and assess the Realtors you meet.  How knowledgeable are they on the neighborhood you are interested in?  Does their personality seem to match yours?   Are they organized and attentive to your questions?  If you spend a day attending open houses, get the business cards of the people you like.  Do some research on each person and then select 2-3 to interview.  Partnering with a knowledgeable Realtor can really make your buying experience an empowering process.  And, you might actually have fun!

If you were a tourist for a day in Seattle, what would you do or see?