Windermere Real Estate
Market Review
Seattle Metro A special report on residential real estate sales in King County 2012: First Quarter (Jan, Feb, Mar)
w Windermere Real Estate/Wall St., Inc.
First Quarter Jan Feb Mar 2012 From the NWMLS, NWREporter May release - KIRKLAND, WA. Sales of 2nd Homes at Highest Level Since 2005 Last year’s sales of investment and vacation homes surged to their highest level since 2005, according to an annual survey of such transactions. NAR Chief Economist Lawrence Yun said investors with cash took advantage of market conditions in 2011. “During the past year investors have been swooping into the market to take advantage of bargain home prices,” he said. “Rising rental income easily beat cash sitting in banks as an added inducement. In addition, 41 percent of investment buyers purchased more than one property.” Half of investment buyers said they purchased primarily to generate rental income, and 34 percent wanted to diversify their investments or saw a good investment opportunity. Read more on our blog: www.WindermereWestSeattle.com Area
Number of Homes Sold Q1
Average Sold Price
Median Sold Price
Average Size (Sq Footage)
Days on market DOM
Houses
Condos
Houses
Condos
Houses
Condos
Houses
Condos
Houses
Condos
SEATTLE CORE Downtown, Belltown
na
80
na
$550,740
na
$375,000
na
1124
na
88
IN-CITY Queen Anne, Magnolia
88
60
$718,032
$249,980
$557,500
$192,000
2599
906
47
80
NW SEATTLE Ballard, GreenLake, Fremont, Wallingford
290
63
$433,471
$212,456
$408,250
$181,000
1950
827
46
66
NE SEATTLE View Ridge, Maple Leaf, Northgate
181
38
$485,608
$157,676
$420,000
$136,500
2072
911
53
73
CENTRAL SEATTLE Capitol Hill, Central District, Madison Park
130
93
$687,619
$308,993
$577,375
$225,000
2514
937
61
57
SE SEATTLE Beacon Hill, Mt Baker, Columbia City, Seward Park, Rainier
157
12
$304,346
$164,941
$259,000
$144,950
1952
997
71
70
224
34
$332,437
$275,921
$298,500
$164,875
1775
1056
64
78
WEST SEATTLE
All data compiled from NW Multiple Listing Service, this information is deemed reliable, but is not a guarantee nor is it guaranteed, and should be verified to your satisfaction.
Pricing Trends March 2012 Metro Seattle Real Estate Market Update - Residential Windermere tracks key performance indicators to determine the current state of the market and to anticipate trends within Metro Seattle: from West Seattle to Lake Washington and north to Shoreline & Kenmore. We trust that this data, combined with our expertise, will help you make sound decisions. PRICE TRENDS Price stabilization is the hallmark of the first quarter of 2012, due in part to the seasonal strengthening in sales that occurs each spring. The market is twotiered, with distressed sales holding prices down in some areas. While low priced distressed properties continue to erode values, multiple offers abound for select neighborhoods, price ranges, and property types, as home buyers continue to take advantage of low interest rates and unprecedented housing affordability.
MARKET ACTIVITY Late February 2012 witnessed continued declines in the availability of single family homes for sale, together with a seasonal and year-over-year increase in sales activity. Windermere brokers report multiple offers on many listings. Year-overyear February pending sales increased from 505 to 571. Although these economic dynamics favor sellers over buyers, it remains to be seen whether this will translate into higher prices later in 2012 and 2013.
FINANCIAL MARKET TRENDS
Interest Rates: Rolling 13 Month Rates Shown as of 1st Business Day of Month
-1 2 Fe b12 M ar -1 2
Ja n
l-1 1 Au g11 Se p11 O ct11 N ov -1 1 D ec -1 1
n11
Ju
Ju
Fe b11 M ar -1 1 Ap r-1 1 M ay -1 1
5.500 5.375 5.250 5.125 5.000 4.875 4.750 4.625 4.500 4.375 4.250 4.125 4.000 3.875 3.750 3.625 3.500
March interest rates remain historically low. Future changes are difficult to predict. When the economy improves, interest rates will likely increase, as will home prices. Buyers tempted to wait—hoping for real estate prices to drop further—should bear in mind that small interest rate increases often offset large declines in price. For example, if interest rates go up by 0.25%, monthly payments for a home with a $300,000 loan amount will increase even if the value of the property declines by 2.5%.
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w Windermere Real Estate — Magnolia Office 3214 West McGraw Street, Seattle WA 98199 206.284.8989 www.Windermere.com