Market Mondays: Kirkland- Juanita Neighborhood

As a resident and home owner of both a rental property and primary residence in Juanita, I may be a little bias to this community.  However, there is good reason for that….with still semi affordable home prices relative to the rest of Kirkland, proximity to Lake Washington and a growing community… this area is on fire!

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In the 1920’s, Juanita was home to the Juanita Beach Resort complete with a 2-story bath house and an amusement park!  The Juanita neighborhood is defined as NE 145th to the North, I-405 to the East, NE 132nd to the South and 100th Ave NE to the West.  In analyzing this specific market’s housing data, the biggest growth in property values are happening South of 124th and East of 98th with close proximity to Lake Washington and new construction developments on the horizon.

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We are in a market where there is extremely low inventory!  As of October 19th, 2015 there are 12 active residential listings (excluding town homes and condos) in the Juanita neighborhood.  The price range is $359,950-$2.375M with a median list price of $715k.  An interesting observation is that $359,950 on the lowest end is located North of 124th, whereas the second most affordable listing is $499,950 located South of 124th (if you’re really interested in location specifics).

In the last 180 days, 17 homes are pending ranging from $350k-1.2M, with a median pending price of 625k.  To elaborate on pending, there have been 41 homes sold in the last 180 days ranging from 290k-1.15M, the median sale price was 500k and the average days on market is 8 days!!!  Another interesting note that I touched on in a previous blog post regarding pricing…homes that were priced strategically day 1 were the ones that sold in 8 days or less, AND sold for an average of 25k more than asking price!  The graphs below show months supply of inventory as well as list/sale price ratio graphics. (Note: the graphs only show data through September)

As you can see, the sale price/list price ratio is at or above asking price, this takes into consideration all of the data, including the homes that have sold for significantly over (all 8 days or less) as well as the homes that started out higher and dropped the price.

As of October 19th, 2015 Juanita has 1.5 months supply of inventory.  You can see that in August and September the months supply increased.  In my opinion, there were not many quality listings that came on during that time frame, and the ones that did come on the market were probably priced too high.  Those have since been absorbed but I will do another post updating the sale prices of these homes as we will see this impact in the market in October/November.

According to NWMLS September press release:

“Scarce inventory, new rules for mortgage closings and affordability concerns will likely slow home sales around Western Washington during the remaining months of 2015 and into early 2016, according to spokespersons from Northwest Multiple Listing Service.”

The “slow” months are a great time to both buy and sell a home.  Buyers will have less competition in a less frenzied sellers market and sellers will have little competition and attract serious buyers.  If you want “unbiased” real estate data, check out Seattle Bubble…it’s a great, data driven blog that illustrates some of the realities of the market.   It’s a nice balance to the sometimes “ra-rah” information coming from real estate professionals or skewed information from the media, but I always advocate clients to gather information from credible sources and think in a world where LOADS of information is available, it’s hard to sift through what is fact and what is BS.

I always welcome feedback, comments and questions so shoot me an email or text if you have any of the aforementioned!

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Market Monday’s: Pricing in a Seller’s Market

What is my home worth?  It’s the question most home owners have and arguably the most important factor when deciding to sell a home.

In today’s hot seller’s market, where in King County there is a 1.4 months supply of inventory and a typical balanced market would be considered somewhere between 4 and 6 months supply.  According to a the most recent press release by NWMLS,  “Single family home prices across the 23 counties in the MLS report rose nearly 7.6 percent from a year ago, from $297,500 to $320,000. Single family homes in King County commanded the highest median price at $490,250, up 6.6 percent from the year-ago figure of $460,000, but down from June’s high of $500,000”.  Interestingly, 2,600 listings have expired this year in King County alone…the most common influencing factor? Overpricing.  Yes, it’s a sellers market but properties that sold for the most were strategic in pricing, ultimately attracting the most buyers when the property was most relevant and visible.  With all the valuation tools available to consumers (read 10 appraisals vs. Zestimates), below are some ways to take matters into your own hands and have a realistic look at your market area, ultimately helping you get the most for your home.

  • Study past sales. This is the starting point for any thoughtful and successful pricing strategy; think of it as the “science” part. Take the time to study past sale statistics for homes in your area and areas similar to yours. None will be identical, of course, but having a clear understanding of true market value is the first step in establishing your list price.
  • Do not confuse active listings with past sales. Active listings have not sold. They are just your competition. It is important to be aware of your competition’s pricing, but this is often just an indication of what your home won’t sell for.
  • Do not overprice because you have “time.” If the market is appreciating, this strategy may work, but if prices in your area are declining, you may quickly find yourself chasing a market and costing yourself money. And if the market is stable? Your home will just sit. Buyers pay in today’s dollars, and time is rarely on your side.
  • Leave some room for negotiation, but don’t overreach. No seller wants to feel he left money on the table, and no buyer wants to overpay. Your price should give both parties room to maneuver, but if it is too high, you risk being perceived as unrealistic, and buyers will pass over your home.
  • Think like a buyer. What are the things that you value in a home? Is it a large yard, an updated kitchen or a view? These are likely the same things that your buyer values as well. Talk to your agent about current buyer trends. Yesterday’s avocado green shag carpeting is today’s granite counter top. The property facing the interstate is going to be a tougher sell than the one with a mountain view. Your price should reflect how your home compares to the others offered for sale. Buyers will find objections to any home, as none is perfect, but it is curious how quickly objections disappear when the price is compelling.
  • React swiftly and decisively. If your home is on the market and is not being shown or if you receive feedback that you are priced too aggressively, don’t hesitate to adjust your price immediately!

First impressions are everything when selling your home. Studies have shown that the first two weeks on the market are the most crucial to your success. During these initial days, your home will be exposed to all active buyers making pricing and timing that much more critical.  If your price is perceived as too high, you will quickly lose this initial audience and find yourself relying only on the trickle of new buyers entering the market each day. Markets are dynamic, and your price has an expiration date. You have one chance to grab attention. Make sure your pricing helps you stand out on the shelf — in a positive way.

Oh, and here is a little infographic courtesy of Pinterest to help spruce up your curb appeal….

Tips for Selling Your Home; Curb Appeal. Curb appeal can mean the difference between a home that sells quickly for the asking price, and a home that sits for months on the market, below asking price.  #lakegeneva #fontana #curbappeal. http://agents.keeferealestate.com/michalene_melges/:

Market Mondays: Issaquah

Happy Monday! This week we are looking at the beautiful community of Issaquah, one of my absolute favorite locations and is becoming a hotbed for growth and development as people see what this community has to offer.  Issaquah is just 17 miles east of Seattle, sitting on the southern border of Lake Sammamish. With its proximity to Seattle, nearby mountains, and perfect summer weather, the town has grown in recent years and attracts enough new blood to be the second fastest growing suburb in the state.

Issaquah is nestled up against the Cascade foothills. Several small mountains make up the so-called Issaquah Alps to the south of Issaquah: Tiger Mountain, Cougar Mountain and Squak Mountain.  This area is also a major attraction for the outdoor lovers, making it a perfect lifestyle fit for those who like the best of both worlds. The Issaquah and Sammamish Plateaus and Lake Sammamish are to the north.

So, what’s happening in Real Estate? Issaquah has seen steady growth and like I mentioned earlier is the second fastest growing suburb in the state of Washington.  Issaquah has seen a 12% increase in home sales when compared to December of 2013 with a median sale price of $700,000.  As of December 15th, 2014 there are 43 single family homes for sale ranging from $358,300-$4.98 million.  In the last 90 days, 70 single family homes have sold, ranging from $272,888-$1.83 million with a median sale price of $700,000 like I mentioned earlier.  The average days on market is 36 days! Who said that December is a bad time to buy or sell a home?!

The graph above displays months of inventory through the end of November, however, as of December 15th 2014 Issaquah is at 1.84 months of inventory based on closed sales which is slightly higher than December of 2013.  What this tells us is that there is a shortage of inventory, more buyers than sellers.  Issaquah is a hotbed for new construction so this will be an interesting market to keep an eye on.

If you or someone you know is looking to buy or sell their home, please don’t hesitate to contact me at rachelwagner@johnlscott.com or call/text 324.0302.  Don’t forget to follow my blog for weekly market updates, which you can do by clicking the “follow” button at the top right hand side of the page.

Oh, and here is a lovely display of lights that you might be interested in checking out in Issaquah, in the spirit of the holiday season!  This light show is dressed to impress with hundreds of thousands of lights that the Ginnaty family has been putting on for over a decade.

Ginnaty Christmas Light Show
9325 240th Avenue SE
Issaquah, WA 98027

South of Issaquah on Front Street, take SE 96th Street east to the turn. Turn left on 240th Ave SE. You can’t miss it on the left a few houses up the street. Look for the sandwich boards at the turns to confirm you’re in the right spot.

Market Mondays: 2015 Economic Forecast

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This week I have decided to step back briefly and look at the market from a macro level as well as discussing predictions for 2015 that were shared at a recent conference.  It’s interesting and exciting to see where the housing market is headed, as well as the economic health of the real estate market as we head into 2015.  Before I dive into that information, as of October 27th, 2014 King County is at about 2.6 months supply of inventory while Snohomish County is hovering around 3.1 months supply of inventory.  Those numbers are a 4.2% increase from October 2014 in King County and a 6.2% increase in Snohomish.  With interest rates at a 16 month low, it is a great time to get in there and take advantage of this market if you are thinking of buying or selling your home.

What is the state of the real estate market?  Well, we are currently down 10.6% nationally from peak values in 2006, however, we are slowly making our way back up as demonstrated by the graph below.

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As demonstrated above, all but one top 30 metro areas show annual home value appreciation.  Seattle Metro leads the Puget Sound in annual home value gain at 8.3%, while other areas of the country who were drastically impacted by the recession are seeing a big jump in annual appreciation as well.

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Seattle Metro is currently down 11.5% from it’s peak, compared to the national average of 10.6%.

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Although Seattle Metro is slightly below the national average, what we are seeing is a steady increase in inventory, resulting in a healthier and more sustainable market as well as softening the rate of appreciation (which is still significant, regardless).  The nature of markets are to rise and fall (think rolling hills), however, slow and steady is preferred over sharp inclines and falls.

Are you ready for some good news?

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According to the National Association of Realtors and as demonstrated by the Zillow Real Estate Research for Professionals tool, negative equity has declined steadily since quarter 1 of 2012, which is great news for home buyers and home owners alike.  However, negative equity remains at 17% nationally and is highest in the bottom value tier.  The number of homes underwater is above 25% nationally and 30% in the Seattle area.  The middle value tier is 13% and the top value tier is 6% in the Seattle area.  Although these numbers are declining annually, there are still many homeowners who are underwater, especially in the bottom value tier.

As we move into 2015, mortgage rates are expected to rise, with interest rates expected to reach the 5% mark (which is still fantastic, historically), while rent affordability is below the historical average on a national level.  Renter households are forming faster than owner households for the first time since the late 1980’s and the market is responding with higher rental rates and a shortage of available rentals while the market struggles to keep up with the demand.  (translation: don’t rent if you can buy!)

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Below are some year over year percent change forecasts for Snohomish County, by city.  Appreciation rates are expected to continue to gain, however, slightly less than in 2014.  With rental rates skyrocketing, as well as a shortage of available rentals and low interest rates, now is a great time to get into a home for a first time home-buyer.  Investment properties in the bottom value tier to generate rental income are also a great option, it’s an exciting time in the real estate market around the country.  Please contact me with any questions you have at rachelwagner@johnlscott.com or call/text 425.324.0302.  I am available to help with any of your real estate needs.

And in other Simple Tranquil Living news, the holidays are quickly approaching! Okay, so that may not be news to you, but here at Simple Tranquil Living we have a lot of fun with holiday festivities so stay tuned for a special Halloween post and perhaps another GIVEAWAY! Happy Monday everyone!