Ready or not here we come roaring into 2017! Some great and exciting things coming soon to Real Estate and to help serve my clients in a better, faster and more economic way. Stay tuned but in the meantime enjoy the monthly newsletter full of events, tips and tricks for this month. Stay warm and safe!
September 20, 2016| Snohomish County Homes INC.
Snohomish County Statistics as of August 2016
Active Inventory: +13% Aug 2016 vs. Aug 2015
2009 available homes currently on market -46 vs. last month.
Pending Transactions: Up 14% Aug 2016 vs. Aug 2015
2071 units +94 vs. last month
Sold Transactions:+7% Aug 2016 vs. 2016
1748 units +75 than last month
Days on Market
Snohomish County Active to pending 26 days vs. 35 a year ago up 2 days from last month.
Median home price in Snohomish County is at a record high of $395,000!!! +9% last year. Down $3,000 from last month.
Area price % based on last Quarter
Bothell + 11%, Edmonds/Lynnwood +7%. Everett/Mukilteo +7%
Snohomish/Monroe+ 13%. Lake Stevens/Granite Falls +6%.
Prices are up 5% over last year same time July 2016 vs. July 2015
2141 brand new listings in July that is up 53 from last month. 2141 total active at the end of the month.
Up +3% July 2016 vs. July 2015
2079 units went pending last month that is 62 less however than June.
+9% July 2016 vs. July 2015.
1673 units +11 more than last month
Days on Market
Snohomish County Active to pending 25 days vs. 36 a year ago. Incredible!
Median home price in Snohomish County $387,000!!
Median home price in King County $523,000. Snohomish county is gaining however the gap between King and Snohomish is growing.
Months of inventory
If no additional homes would be put on the market, there would be no inventory left after 1.25 months in Snohomish County. In King County that figure is 1.2 months. A balanced “normal” market is 3-6 months. Buyers’ market more than 6 and Sellers less than 3 months.
Area price % growth based on last Quarter
Bothell + 14%, Edmonds/Lynnwood +5%. Everett/Mukilteo +11%
Snohomish/Monroe + 11%. Lake Stevens/Granite Falls/Arlington/Darrington +7 %. Marysville +7%
New Construction is included in these percentages.
July 2016 Market Characteristics:
|MUST SEE! This Single Family Residence Is a Cozy Home That Sits On A Reasonably Sized 4356 Sq. Ft lot. This Property Situated At 11131 3rd Pl SE Is located In The city Of Everett. This Property Was Built In 1964, Offering 3 Bed, 1 Bath, With 924 Square Feet and 1 attached Car Garage.|
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:
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.
Happy Friday! I hope you enjoy this Real Estate round up of our area and other interesting articles plus some fun stuff too.
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
From ceiling space to playroom
10 tips for budget-friendly lawn care
7 weird ways to stay cool this summer
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!
What is it?
Homes for Heroes is a national program dedicated to providing extraordinary savings to heroes who provide extraordinary services to our community each and every day, when they buy or sell a home.
What are the savings?
Savings will depend on the sales price of the home. As an example, a $300,000 house would receive over $3,000 in credits and discounts from all the participating affiliates and vendors involved.
What does it cost me?
Nothing because it’s FREE. There is no cost to you. All costs are covered by your local participating vendors.
Can I buy any home and in any area?
Yes. This is not a government program with limitations or restrictions. This is the private sector giving back simply as our way to say Thank You for all that you do every day.
Are there any other benefits or savings after my transaction is done?
Yes. Through the “Friends of Heroes” Network participating vendors will offer discounts on various other services such as moving, storage, pest, lawn care, plumbing, electrical, cleaning and remodeling to name a few.
Are there a lot of extra applications, forms or some future obligation?
None. The Homes for Heroes Promise is:
No hidden fees No red tape No catch
How do I find out more?
Go to HOMESFORHEROES.COM or scan the QR code below on your smart phone. Let us know who you are and what you do. A local affiliate will contact you with no obligation.
With Tax day upon us I thought this would be a great reminder.
Tax Returns- 7 years- Keep tax returns and all supporting tax docs. including W-2s, 1099 forms, property tax info, bank statements, mortgage interest statements, cancelled checks, receipts, home purchase, home improvement info.
Paycheck Stubs 1 year- Shred after confirming info matches W-2.
Home Ownership- Mortgage docs 10 years, After property has sold 7 years Mortgage statements 7 years, After property has sold 10 years, Repair bills/contracts 10 years.
Insurances- Home 5 years, Life of policy + 3 years, Medical 5 years
Investment/Retirement Accounts- IRA contributions permanently, 401K annual summaries- Keep until you close the account. Investment statements 7 years after last account is sold.
Permanently- Never Shred- Adoption/Guardianship Papers, Birth Certificates, Citizen/Naturalization,Health/Immunization, Lawsuits, Marriage/Divorce Decree, Pension Plan Docs.Veteran Papers.
If it is time to get rid of some of those old docs look for a shredding event near you. Here is one sponsored from BECU this Saturday.
KIRKLAND, Washington (March 7, 2016) – Home prices in King County hit new highs in February as buyers tried to outbid each other for the sparse inventory in much of Western Washington.
“We’re in for another crazy spring real estate market,” predicts J. Lennox Scott, chairman and CEO of John L. Scott, Inc.
With the number of single family homes for sale in King County down nearly 30 percent from a year ago, prices on last month’s sales surged 19.8 percent, jumping from $429,900 to $514,975. Ten other counties in the 23-county area served by Northwest Multiple Listing Service also reported double-digit price gains for single family homes that sold last month, according to its latest statistics. Condo prices surged 19.6 percent.
“Buyers who are looking for houses cannot start looking at the top of their affordability range — they should look 15 or 20 percent below their limit and be prepared to go over list price if they have any hope of success,” suggested Frank Wilson, immediate past chair of the Northwest MLS board.
Northwest MLS brokers scrambled to replenish depleted inventory as pending sales outpaced new listings, resulting in a sizeable drop in the total number of active listings by month end.
Member-brokers added 7,931 listings area-wide to inventory last month for a slight improvement from a year ago when they added 7,852 homes and condominiums to their database. At month end, they reported 12,107 active listings, a sharp drop from a year ago when there were 16,946 properties offered for sale.
Current levels of inventory translate to 2.4 months of supply, well below the four-to-six months that industry experts use to indicate a balanced market. In the four-county Puget Sound region, supply is hovering near or below two months, with King County having the lowest level at only 1.3 months of supply. Snohomish County reported about 1.5 months, Pierce had slightly more than 2.1 months, and Kitsap County was at about 2.3 months.
“Buyer frustration continues to build as inventory levels drop and a mixed quality of homes comes on market,” reported MLS director George Moorhead, designated broker at Bentley Properties.
The fast pace of sales combined with shrinking inventory means many areas remain in the throes of a sellers’ market, stated MLS director Bobbie Petrone Chipman.
Despite the frustration for buyers and brokers, pending sales improved on year-ago figures. Northwest MLS members reported 9,052 pending sales, up 5.3 percent from a year ago when they tallied 8,599 mutually accepted offers.
Scott described current activity as a “Pac-Man” market – “Houses are being gobbled up as soon as they come on the market,” he stated.
Seven counties, including King County, reported year-over-year declines in pending sales during February in the wake of inventory shortages. Pending sales in King County fell about 5.6 percent compared to twelve months ago. The selection in the state’s most populous county plummeted nearly 32 percent from year-ago levels while asking prices jumped about 22 percent.
“The big story this month is the nearly 20 percent jump in King County prices which has brought the median home price to an all-time high,” observed OB Jacobi, president of Windermere Real Estate. “Affordability is on the decline in King County which is part of the reason why sales of single family homes are down,” he noted, adding, “So where are those priced-out buyers going? The answer for some is condos. With the rent-versus-buy ratio at about two years, many buyers are seeing the wisdom in investing in a condo as a means to take advantage of low interest rates and get into homeownership.”
Moorhead also commented on growing demand for condos. “We have noticed increasing demand for condos and townhomes as they are becoming more affordable for first-time buyers, so this activity is drawing down that inventory too,” he reported.
Pending sales of condos increased about 4.8 percent area-wide, despite shrinking inventory. The number of active listings dropped 36.6 percent from a year ago, resulting in only 1.4 months of supply. In King County, which accounted for six of every 10 condo sales that closed last month, there is only about a month of supply. Condo prices in that county jumped 26 percent from a year ago, rising from $257,000 to $323,975. That compares to a median selling price of $514,975 for single family homes that sold last month in King County.
For others, a longer commute is the ticket to homeownership.
“This is the type of market that has people who work in Seattle thinking more seriously about moving west,” suggested Wilson, the branch managing broker at John L. Scott’s Poulsbo office. “Typically people who have a Seattle area job look north or east, but with lack of inventory in those areas and prices that have gone through the roof, they are now considering a ferry commute and shopping for homes in Kitsap.” Wilson said they’re even seeing an increase of activity west of the Hood Canal Bridge with more people looking to Port Ludlow and beyond.
Pending sales in Kitsap County rose 9 percent in February compared to a year ago. Prices increased 7.7 percent year-over-year, but Wilson expects even more escalation. “It would not be unreasonable to think we might see double-digit price increases this year,” he commented.
Rapidly rising prices are worrisome to some brokers.
“In some situations sellers, in efforts to glean as much from a sale as possible, and buyers, in efforts to have their offers accepted in competitive presentations, might find themselves the subject of anecdotal stores regarding low appraisals,” noted MLS director Bobbie Petrone Chipman, principal managing broker at John L. Scott in Puyallup.
“Buyers line up at houses that are available and find themselves in bidding wars,” said Wilson. “This market squeezes all the fun out of buying a home. Prospective purchasers who are coming up short tend to be first-time buyers or those who are using anything other than cash or conventional loans,” he added.
Moorhead cautioned sellers about being overly aggressive on pricing. Sellers are pushing price harder than ever, he said, and some are missing market price, resulting in longer market times. “Buyers perceive this as ‘there must be something wrong with the home,’ especially if the home is still on the market past an offer review date that was set when the home came on the market.”
Even though the current market poses challenges, brokers remain optimistic about the market’s strength.
Mike Grady, a past chairman of the MLS board, anticipates “a long steady increase in pending sales projecting favorably into 2017.” He cited projections suggesting long-term interest rates will remain stable, job growth in the region will remain strong, and new housing starts will continue to lag behind demand as factors in his prediction. These factors “create the simple formula of high demand, low supply equaling increasing prices, creating the consumer confidence we continue to see,” stated Grady, the president and COO of Coldwell Banker Bain.
Scott also expects robust activity during 2016. “Six months ago we predicted the major decline in inventory throughout the winter months would create a more intense market starting the first of the year. It’s déjà vu all over again,” he commented.
Noting this pattern has existed for the the last three years, Scott said the current lack of inventory is taking its toll on homebuyers. “We are facing the most intense market yet.”
Starting this month, Scott said “We’ll start to see an explosion in the amount of sales activity for the next eight months. That’s the good news. The bad news? Market conditions still require buyers to make an instant response because there are so many other hungry buyers out there.”
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