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Ballard Undressed, Best of Bothell Unressed, Issaquah Insurance Undresed, North Seattle Undressed
Archive for February, 2009
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Feb
20
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Feb
09
09
Greater Seattle Home Sale Statistics for January 2009
Seattle Home Sales: Frigid Like the Weather!
I have been waiting anxiously for January Seattle home sale statistics. There has been an incredible amount of buzz in the real estate community about how much “activity” there was and the increase in pending home sales. I hope that the pending sales translate into actual closed sales in February; however, the numbers from January were not exactly robust.
I’ve provided you with four charts that show some key home sale numbers: a) Total Sales, b) Average Sale Price, c) Days-on-market and d) Percentage of homes that sold for 100% of the last asking price. If you click on the charts, you will see a larger version for easier viewing.
Then number of closed sales in Seattle was almost 44% lower than in January 2009. As I mentioned above, many of my colleagues here at Keller Williams Greater Seattle indicated that they have been hearing from more potential buyers lately. As Spring approaches people tend to start kicking tires.
Home prices and days-on-market are fairly self-explanatory; however, the last chart is informative: Only 25% of homes are selling at 100% of the last asking price. This is still a strong indication that prices are still soft.
If you are interested in learning more about the real estate market or have any questions about purchasing or selling your home, please don’t hesitate to contact me:
James Lupori, Associate Broker/Keller Williams Greater Seattle
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Feb
08
08
Greater Seattle 2009 – To Buy or Not To Buy a Home?
This is a reprise of a post on my primary blog: www.kenmoreundressed.com. As a Realtor who specializes in residential real estate in North King and South Snohomish Counties (my specialty is Kenmore, WA), I feel it’s an opportune time to have a serious discussion about purchasing a home in this unbelievably unpredictable housing market.
One of my favorite on-line real estate publications is www.marketwatch.com. Quite often I find that the authors provide honest and sober analysis of the marketplace. Yesterday, Marketwatch published two interesting articles: Five Reasons to Buy a Home This Year and Five Reasons Not to Buy a Home This Year. I’m going to list the reasons for and against and I’m also going to comment briefly on each.
First, lets summarize the 5 reasons to buy:
- Affordability is better than ever
- You have a large inventory to choose from
- Builders are offering big discounts
- Mortgage rates are historically low
- You can get a Federal Tax Credit
All five of these factors are, indeed, the case in our local market. Many homes have dropped to 2005 values. The inventory is still historically high. Builders have been quite willing to work with buyers on both price and concessions. Yes, mortgage rates hovering around 5% are downright wonderful. And, as far as tax credits go, we may see some very generous tax benefits once the new stimulus package passes.
Now, 5 reasons not to buy:
- Prices are still dropping
- This sale will be on for a while
- You may not stay put
- Your job could be the next to go
- Your cash reserves will be eaten up
There are fears that there will be a huge number of bank-owned homes entering the market in the next several months. If this is the case, it is likely that property values will drop even lower. And, yes, many economists believe we will not see the end of this decline well into 2010. Because there has been a decline in property values, buyers need to consider how long they will stay in their home. The old rule of thumb was that Americans move every 7 years. Now it appears that home owners will have to stay put for 10 years to realize any financial benefits. Regarding jobs locally: it’s clear that we are not immune to the current recession. It’s really important to watch this trend. Finally, you better have at least six months of cash reserves in the bank because this market may be difficult for a long time.
So, after I posted this article, I received a couple of responses from two Realtors whose opinions I respect. I think you’ll find their thoughts quite illuminating:
“I think people can make a better decision when they have all the facts. In my personal experience, developers were bullying buyers and not willing to budge…wow what a different story today. Buyers may be in the drivers seat today, but things can change in a snap. I feel like if you are in the market to buy, buy now. Whatever the trend may over the next few years. It’s all a gamble really, and I’d say a buyer has their best odds at this very moment with no ‘promise’ of the future.” Danita Jolley – www.burienundressed.com
“I know it’s not a popular reason, especially coming from a Realtor, but I still think it’s a good time to buy because for all the hoopla (is that a word?) you still end up with a home. A place to live. A place to paint and decorate and refloor and landscape and have friends over and get a dog and notch your kids’ heights on the door jamb and take the same Christmas photo in the same spot year after year.
I bought in July ‘07 and people ask if it bothers me that I’ve lost money. I haven’t lost a dime. I gained a home. I didn’t make a dime during the boom years, either. I made quite a few dimes once I sold, but selling high and buying high cancel each other out…just like selling low and buying low do.
Buy a house, make it a home, ignore the market.” Matt Thompson – www.gigharborundressed.com
Ultimately, if you are a potential home buyer or seller, it’s critical that you plan for success in this market. It’s also imperative that you take a careful look at your motivations because purchasing property can be an intensely complicated process.
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Feb
07
07
Ron Sims Goes to the “Other Washington”
RON SIMS – Under-Secretary of HUD!
This last Summer I had the pleasure of meeting Ron Sims at the official opening of a new Burke-Gilman underpass in Kenmore, WA. My wife and I have been riding a tandem bicycle for many years and we rode our bike over to the opening on our tandem. After the ribbon cutting I approached Mr. Sims and introduced myself. He was kind enough to spend a couple of minutes with me to discuss the Brightwater Treatment System being constructed over by my house and to talk briefly about the purpose of government. He’s one of those really smart guys that likes to share what he knows without being condescending.
There are few local politicians who inspire more controversy from angry detractors or utter praise from admirers than King County Executive, Ron Sims. So, for what it’s worth I’ll tell you what I think: I have always admired Ron Sims. He has impressed me as a leader who always kept his focus on the “big picture” never forgetting that real people, with real lives were affected by his decisions. Face it, King County is plagued with the “let’s-study-it” syndrome to the point of insanity and Mr. Sims was still able to move the county (kicking and screaming) into the 21st Century.
I think the thing I’m going to miss most (when/if he’s confirmed) are his appearances on the local NPR affiliate KUOW. It was always interesting to hear what he was doing as the executive and to have him answer questions from callers. Always polite and always thorough.
I wish Ron Sims the best in his new position as Under-Secretary of HUD. The other Washington’s gain is this Washington’s loss. Good luck Ron!
