Photo Courtesy of Evan Parker, Digital Homeshow

Good news! Northeast Seattle condo sales are up again for the second quarter in a row! The increase from a year ago is 65%, forty (40) sales this winter vs. fourteen (14) for the same time period a year ago. Sales this quarter compared to last were similar, 40 this winter vs. 42 in the fall.

The median price from a year ago is down 14%. However, I think that number is misleading. Prices are down for three reasons:
1) Short Sales
2) Foreclosures
3) Some value drop

Short sales impact values because they sell for less than market rate. These transactions are complicated. The Seller’s lender is a party to the transaction and the time frame for a property to get lender approval is often 60-75 days.

Winter quarter 2011 there were no short sales in northeast Seattle. This past quarter there were five (5). One of these was in the Sand Point/U Village corridor.

Foreclosures also bring down values; as again Buyers will not pay market rate. Last winter there was 1 bank owned property sold in northeast Seattle and none in the Sand Point/U Village corridor. This year there were 10, two in the corridor.

Expect this trend to continue throughout 2012. This report notes 7 properties with a pending status. Seventy one per cent (71%) of these are short or bank owned.

Short Sales and foreclosures have their greatest impact on the complexes where the sales occur. (Some complexes in the Sand Point corridor reflect prices at 2001-2002 levels). However, they also impact the greater market because they hold down values.

Appraisers aren’t to use short sales or bank owned properties as comparables when appraising a property for purchase. Yet, if short sales or bank owned units are a significant portion of the comps they have to choose from the appraiser has no choice. The result, he or she will be cautious when assigning value.

The buying public has proven to be even more cautious. Buyers buy with emotion. Currently, they are terrified of overpaying. And as long as Buyers feel we are in a declining market they would rather lose a property to another Buyer than overpay.

Pricing your property at market is the best antidote for this fear. Well priced properties sell quickly. When Buyers see properties receive offers within a few weeks of listing they begin to have confidence in the market. This confidence is contagious and improves market conditions across the board.

Post a comment or call me directly at 206.915.1076 if you have a question about today’s post.

All the best,

Mary

A recent sale in North Seattle. Photo courtesy of Evan Parker, Digital Homeshow

The March Real Estate update shows that Seattle’s market currently has three tiers.

First tier homes are those that are being sold short (the Seller owes more to the bank than what they can sell the  property for) or are bank owned. These homes are selling for 14-17% less than market rate.

Properties with deferred maintenance and priced close to market make up 2^nd tier properties. These  homes usually sell for less than the most preferred  but get more than homes sold short.

Third tier homes are the most desirable. These are well priced; well maintained and often have been updated. Starting in December we began to see these home sell quickly (offers within 3-7 days) and often with multiple offers.

A few properties would receive offers for more than list but most would receive offers at list or below. Buyers would sweeten their offer NOT with cash but with better terms (for e.g., a quick close date or Seller rent back with no fee charged). This trend has continued as we move into the spring market!

NWMLS data released this week show that prices in King County have dipped some but that the median price for an in city, Seattle home was actually up 3% from February, 2011. This means that most 2^nd and 3^rd  tier homes are selling somewhere between 2004 and 2006 prices.

Expect lower prices to continue as the back log of bank owned properties aka “the shadow inventory”  is released into the market. This will  happen because the sheer volume of bank owned properties will hold prices down.

John Gardner, a local economist estimates the shadow inventory in the Puget Sound region to be equal to the Northwest Multiple’s entire inventory.

The good news for Sellers is that low interest rates are pushing more Buyers into the market place. Recent statistics released by NAR (National Association of Realtors) show that nationally pending sales in January were up over 8% from a year ago.

Locally, the NWMLS  reports pending sales in February were up 27% from February, 2011. The moral of the story, homes priced correctly are selling!

Lower prices combined with lower interest rates means Buyers can buy a home today for the same price as a home which sold six to eight years ago. Yet their monthly costs will be less!! And the amount of money Buyers will save over the life of the loan is considerable.

Consider this example.

Buyer Smith buys a home in 2005 Sales for $235,000

Buyer Jones can buy that same home today for $235,000

Both Buyers get 30 year, fixed rate conventional mortgages.

Buyer Smith’s interest rate was 6.27%; his principal & interest are $1499.99

Buyer Jones’ interest  rate is 3.875%; his principal & interest are $1105.06

Buyer Jones saves $344.93 per month and $124,174.80 over the life of the loan. If you are thinking of buying now is defenitely the time to do it!

Post a comment or call me directly at  206.915.1076 if you have a question about today’s post.

All the best,

Mary

**Interest rate information courtesy  of Eileen Burke, Cobalt Mortgage. You can contact Eileen at www. Eileenburke.com or via email Eileen.burke@cobaltmortgage.com

Photo courtesy Evan Parker, Digital Homeshow

We’re starting to see some good news in the condo market in Northeast Seattle. Volume is up 52% as compared to last year when only 21 properties were under contract. However, prices are continuing to slide and are down 9% from a year ago.

 Last year’s median price for sales September-November was $210,000. This year the number has dropped to $184,000. Much of this drop can be attributed to: 

The pool of Buyers has shrunk. Many first time Buyers (typically a young professional in their thirties) and Baby Boomers (who are downsizing) are choosing to rent VS buy.

These potential Buyers report that they’re choosing renting over owning because they’re fearful that if they purchase a property it will decline in value and not recover.

Short sales and foreclousres are having a big impact on our market. This fall nearly 45% of all listings in north east Seattle were listed as either short sales or bank owned.

Sellers are affected by these listings because they sell for less than a typical property. Buyers are able to use this sales data to negotiate. If we were in a more neutral market – one where the number of Buyers and Sellers was more equal Buyers couldn’t use this tactic.

 Unfortunately, our market has had and I believe will continue to have far more condos available than there are Buyers. Consequently, Buyers are more able to control price.

Successfully selling a Condo in today’s market is all about price! Properties that Buyer’s perceive as being over priced are sitting on the market and many simply aren’t selling. Even units that are in excellent condition will sit if they are not priced at market.

That said it’s an excellent time for Buyers and particularly investors to consider purchasing a condominium because not only prices are low but current interet rates are now as low as 3.91%.

If you have a question feel free to call me at 206.915.1076 or post a comment

Mary

The Whole Foods Store in Seattle’s Roosevelt neighborhood has set up a recycling station with bins for “odd things” as a way they can contribute to living green. Here you can drop off:

• Bottle caps
• Wine bottle corks
• #5 plastic
• Cell phones
• Batteries

The City of Seattle’s hazardous waste stations will allow you to recycle up to 10 fluorescent light bulbs per trip at no charge. Here’s a link to their web site for more details.

Merchants who belong to King County’s Take it Back Network accept a variety of electronic equipment. They also sign an agreement with King County’s Hazardous Waste division to recycle the equipment domestically.

They further agree to not export hazardous electronic waste for recycling to developing countries directly or indirectly through intermediaries.

Each vendor determines what items they’ll accept. The following products are commonly accepted:

• Cell phones, pagers
• Audio/video equipment
• Computer monitors, key boards,
• TV’s, video game consoles
• Printers

The RE Store in Seattle’s Ballard neighborhood accepts used building materials on an as needed basis. They will also take furniture and decorative items. Call their store to see what they’re accepting on any given day.

If you have a suggestion or tip for places to recycle odd things please write a post or call me @206.915.1076.

Mary

Annie Fairchild of Park West, an assisted living facility in West Seattle shares the three most important things she recommends families remember when looking for a retirement community or assisted living facility for a loved one.

• Find a community that’s compatible with the family member’s interest. Make sure it’s a place where your loved one can establish friendships and a sense of community as soon as possible.
• Check the Medicare web site to get accurate information on any facility which accepts Medicare. This site rates facilities and can alert you if there have been quality of care problems.
• Stop by unannounced for a site visit; come at different times of the day and evening. See for yourself if the facility is properly staffed and if residents are getting the care and attention that they should.

In addition to the things Annie has suggested you can also check out the State of Washington’s web site for residential care facilities. This site has great information but it takes some effort to find what you’re looking for. I found it helpful to have someone from the Department of Aging and Disability walk me through it. Their number is 360.725.2300.

State law requires a residential care facility to be licensed. These include adult family homes, nursing homes and boarding homes aka as assisted living facilities.

This site will tell you if the facility you’re considering has had any citations or if the state has had to bring an enforcement action against the property.

One other thing you can do is ask to see the Inspection Logs that the facility is required to make available when asked. These logs will note any issues the state uncovered while doing an on-site inspection. (DSHS does unannounced site visits to all licensed facilities on a rotating basis.)

Annie Fairchild can be reached at 206.937.9750. For more information on Park West click on their web site. Park West is located at 1703 California Ave SW, Seattle.

If you have comments or suggestions to share please post a note a note or call me at 206.915.1076.

Mary