November Real Estate Market.. HOT, HOT!

 

Snohomish County Statistics as of November 2016

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November is known for being on the cold side and normally signs of a slowing Real Estate market as everyone starts to buckle in for the winter and holidays. Not this year however! November was smoking hot with only 1.4 month of inventory and buyers were snatching up everything they could. I saw multiple offers skyrocketing and bidding wars with some homes being bid up 100K. The picture to the left is a Bothell home that had 32 offers and was bid up 95k! Crazy!!

Here are your local inventory stats.

 

Active Inventory

 +17% November 2016 vs. November 2015

1111 available homes currently on market -800 vs. last month.

Pending Transactions

Up 1% November 2016 vs. November 2015

1528 units -88 vs. last month

Sold Transactions

+27%!!! November 2016 vs. 2015

1452 units -182 than last month

Days on Market

Snohomish County Active to pending 33 days vs. 47 a year ago up 7 days from last month.

Median home price in Snohomish County 399,000 +14% last year.  Up $7,000 from last month.

Area price % based on last Quarter

All percentages are up and also include new construction

Bothell + 16%, Edmonds/Lynnwood +17%. Everett/Mukilteo +12%

Snohomish/Monroe+ 11%. Lake Stevens/Granite Falls + 17%.

Marysville +14%

King County Median home prices are $523,000 + 16% over last year and up $6k from last month.

Woodinville area Median price is $550!!

Housing Inventory Shortage persists

KIRKLAND, Washington (June 6, 2016) – Just as expected, the month of May had an uptick in new listings (12,272), but just as many buyers (12,275) made offers on homes during the month to keep inventory depleted, according to the latest figures from Northwest Multiple Listing Service.

“Inventory is being squeezed from all directions,” reported Frank Wilson, branch managing broker at John L. Scott in Poulsbo. He said the pool of house-hunters includes young first-time buyers, renters whose rents are escalating, buyers who are returning to the market after recovering from a foreclosure or short sale, investors, and baby boomers who are purchasing for their retirement needs. Additionally, in Kitsap County where his office is located, there are military families who are transferring to a base there and want to buy.

By month end, member brokers reported 15,198 active listings in the Northwest MLS database. That’s down more than 22 percent from a year ago when buyers could choose from an inventory of 19,515 listings across the 23 counties served by the listing service.

“The May housing market was not just hot, it was frenzy hot,” commented J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. “Brokers are working like bees in a hive as the housing market creates a buzz of sales activity in the Seattle-Central Puget Sound area.”  By his analysis, 80 percent of the homes coming on the market in King and Snohomish counties are selling within the first 30 days. “Many sell within the first week,” Scott reported, adding, “A healthy/normal market would have 30 percent selling in the first 30 days.”

MLS figures show there is only 1.76 months of supply system-wide. In both King and Snohomish counties, there is barely more than one month of supply – well below the 4-to-6 months that many experts use as an indicator of a balanced market.

“With less than two months of inventory, every new listing seems to draw multiple offers,” Wilson remarked. He also said homeowners who want to move up in this same market know they face a conundrum: “If we sell today, will we be able to buy tomorrow?”

Buyers are becoming more and more aggressive with offers and pricing, and that concerns some brokers, said Northwest MLS director George Moorhead. As the gap between pricing and value widens, some would-be buyers may overextend themselves. Also, appraisers are struggling with a lack of comparable sales versus multiple offers that escalate well beyond the listing price, said Moorhead, the designated broker at Bentley Properties. Since lenders base loans on appraised values, buyers will likely need to make up the shortfall.

Even though brokers say paltry inventory is limiting sales, the year-over-year volume of pending sales rose more than 7.4 percent last month. Members reported 12,275 mutually accepted offers, up from the year-ago total of 11,425. MLS data going back to 2004 shows that one-month total is the highest on record.

Prices also rose. The median price area-wide for last month’s 8,630 closed sales of single family homes and condominiums (combined) was $339,950. That’s up more than 7.2 percent from twelve months ago when purchasers paid $317,000 for the median-priced home. Ten counties reported double-digit price hikes.

In King County, the median price jumped more than 11.7 percent, from $434,000 to $485,000. Prices on single family homes surged nearly 16.5 percent, rising from $480,942 to $560,000. Condo prices were up 9 percent, but finding one proved challenging as inventory dropped 29 percent in King County.

Former MLS board member Ken Anderson, the president/owner of Coldwell Banker Evergreen Olympic Realty in Olympia, said last month set records for both pending and closed sales. “Low inventory coupled with the huge number of buyers has our market moving at a record pace,” according to his calculations. “Well-priced homes are selling in an average of just 12 days – a full month faster than the peak of the market in 2006,” he commented.

Brokers offer various suggestions to prospective buyers as they vie for scarce inventory:

  • “The best advice I can offer to potential first-time buyers is to think outside the box” said Gary O’Leyar, a past chairman of the Northwest MLS board. He encourages buyers to consider purchasing a “stepping stone” property. Since the close-in neighborhoods in Seattle and Bellevue hold little opportunity for first-time buyers, their best option is to look further out, he suggests. “Consider future growth, such as in areas near light rail or other transit services, and areas that have good public schools,” said O’Leyar, the owner and designated broker at Berkshire Hathaway Home Services Signature Properties in Seattle. “Waiting on the sidelines to buy will likely lead to increasing rental costs, so why not make a real estate investment purchase and have some hedge against future inflation,” he added.
  • “Relationships are paramount in this market,” said Lennox Scott. “If you’re looking for a home, make sure your broker knows your story and can convey it in a compelling way.”
  • “Buyers must carefully study the market so they can make decisive but smart offers when new listings arrive on the market,” emphasized Anderson. “With the robust activity, success for buyers means making an offer that stands above the competition.” He also urges buyers to not forgo important protections like home inspection contingencies.

Wilson and other brokers do not see an easing in the inventory crunch “for some time to come.” Even if the Fed raises interest rates, he believes shortages will persist because of the backlog of buyers.

Moorhead noted new home construction is also seeing prices soar as many of the defunct projects from 2008 to 2012 are being completed and built out. “Finding land for new home plats is forcing more teardowns and pushing builders/developers farther out where services are not as prevalent. He said first-time buyers tend to be hardest hit since they’re priced out of many close-in areas and must look at commute times of 45 minutes or more.

“There’s good news for luxury homebuyers,” Scott suggests. It’s prime time to showcase such properties, he explains, and “this is the season when more luxury inventory hits the market. The good selection in King County is easing the pressure for homebuyers in the luxury ($1 million and above) market. A search of the MLS database shows there are currently more than 900 listings in King County with asking prices of $1 million or more.

Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership of nearly 2,100 member offices includes more than 25,000 real estate professionals. The organization, based in Kirkland, Wash., currently serves 23 counties in Washington state.

 

Real Estate news and more

Happy Friday! I hope you enjoy this Real Estate round up of our area and other interesting articles plus some fun stuff too.seattle

REAL ESTATE news

Real estate getting bubbly but unlikely to pop, Seattle “is on fire across every sector

 

Number of million-dollar homes in Seattle area has tripled since 2012

U.S. existing home sales rise for a second straight month

MORTGAGE & FINANCE news

3 financial apps that will transform how you manage money

Will Millennials ever be able to retire?

The 7 biggest investment mistakes celebrities make

 

 fireplace

HOME trends

From ceiling space to playroom

10 tips for budget-friendly lawn care

7 weird ways to stay cool this summer

LOCAL news

Massive frozen food recall in Washington State

Seattle No. 3 on top 25 best cities to find great jobs

Seattle to host 2018 Special Olympics

Is Seattle a better bicycle city than Portland?

Seattle homes selling faster than anywhere else in the U.S.

Seattle growth was 11th fastest according to just released Census data, now 18th on list of biggest U.S. cities

Facebook unveils Frank Gehry design for its new South Lake Union offices

Snohomish County looking to increase bike tourism

Snohomish county offers top teacher salaries in the state

City of Edmonds to develop an affordable housing strategy by 2019

WEEKLY DOSE OF awesomeness

House made from cardboard for is not your kid’s refrigerator box

 

 Have a spectacular weekend everyone! 

#snohomishcountyhomes

 

 

 

What is your favorite style of home?

We’ve all had that moment — driving down a street and we see a home we like specifically for the architecture and design elements. The United States is full of different home styles and architecture, and pinpointing a specific one can be difficult, especially when dominant home styles change from region to region. The homes below are examples of the most prevalent home styles found throughout the United States.

Which is your favorite and why?

 A Victorian

VICTORIAN

Victorian homes give off a certain air and possess a very stately feel. Victorians are more about beauty than functionality, with complex designs, ornate trim, and large wraparound porches. The Victorian exterior is seen as a medium for decoration. These homes generally have gables, bay windows, towers, overhangs and many are known as ‘Painted Ladies.’ The Victorian style also has sub styles, the most notable being Gothic Revival, Italianate, Second Empire, Queen Anne and the Romanesque style.

A craftsman Bungalow

Craftsman Bungalow

The Craftsman or Bungalow style is seen as an expression of structure and elements that rely heavily on simple, elegant design. The Craftsman is one of the most common and popular styles in the United States, with an incredible resurgence in the last five years. These homes are characterized by their wide front porches, low-pitched roofs and exteriors that use wood, stone and/or brick. The interior of the Craftsman also has an open floor plan with many built-ins throughout the house.

tudor2

Tudor

Tudors are very distinct and based on English building traditions during the Tudor Era (1485 – 1603). Tudors are characterized by their asymmetrical exteriors with windows playing a large part in the design. These homes generally have stone and stucco walls with wood accents/framing, and Tudor roofs are steep-pitched. Tudor homes are one of the most recognizable styles in the United States due to their specific architectural components.

A Cape Cod

Cape Cod

Cape Cods were first built in the 1600s and took inspiration from Britain’s thatched cottages. Cape Cods have steep roofs, dormer windows and large chimneys — elements that helped the homes withstand harsh Northeastern winters. The Cape Cod style is most recognized for its dormer windows, which play a large part in the design of the home.

A ranch

Ranch

Ranches are also known as ‘Ramblers.’ Ranches are characterized by their single-story construction and low pitched roofs. Ranches became very popular in the post World War II era, with a large resurgence in the 1960s as ‘mid-century moderns.’

A colonial

Colonial

Colonials are another home style that have a distinct appearance. Symmetry plays a large part in Colonials — evenly spaced shuttered windows, dormers, columns, and old Colonials will have many fireplaces. The most common Colonial in the United States is the Georgian Colonial, characterized by its strict symmetry, box shape, paneled front door below a decorative crown, simple or flattened columns, and the most notable feature of five shuttered windows across. Other notable Colonial styles in the United States are Dutch, Federal, and Spanish.

A contempary

Contemporary

Contemporary homes have an almost futuristic look to them, but many contemporary homes look to connect the indoors with the outdoors. Natural light plays a large part in the contemporary home, as do flat roofs and simple horizontal and perpendicular lines. Contemporary homes embrace industrialism and put an emphasis on the use of efficient and affordable materials, and the homes emphasize an importance of combining materials (steel, glass, wood, stone, etc.) to create a fluid space.

A spanish

Spanish

Spanish style homes incorporate a fusion of design elements from European and Native American architecture. The Mission Revival style is the most popular, which has its roots in Spanish churches built by missionaries. Spanish style homes tend to have clay roof tiles, arcaded porches, arched corridors, bell towers, square pillars and quatrefoil windows (these windows resemble flowers).

A mediterranean

Mediterranean

The Mediterranean style became very popular in the United States in 1918 to 1940. This style is modeled after the hacienda style, where red tile roofs, arches, and plaster surfaces play a large part in the exterior of the house. Mediterranean style homes have become popular again, but the style has adopted more design elements like porticoes, balconies, and ornamental details that include heavy wood doors, tiles in multiple colors or designs, and balconies with ornate iron railings and embellishments.

A pueblo

Pueblo Revival

The Pueblo Revival is a style favored in the Southwest, highly influenced by the ancient Pueblo’s simple multifamily homes. This home style favors materials sourced from the earth — adobe, concrete, stucco or mortar, and wood beams — and the homes tend to feature enclosed courtyards and flat or sloping roofs. The Pueblo style is also characterized by rounded exteriors that exhibit square windows, weathered wood doors and exterior stone accents.

Homes can take any shape or size, and many homes built today embrace two or more styles. The United States has many other home styles not featured. If you’re looking for a home in a particular style, your agent will be able to help find that perfect property.

If you’re interested in learning more about home styles, you can find more information here: This Old House, Popular House Styles, DIY Network