Page One
ISLAND APPEAL As predicted, we are seeing an increased demand for homes in all of our markets. Fueled by a good economy, continued low interest rates, an increasing population, a migration of city dwellers north, and an increase in the population of Whidbey Island NAS by several thousand, we are experiencing record low inventory as builders hustle to catch up to demand.
15Mar
15Apr
15May
15Jun
151515-Sep Aug Oct
15Nov
15Dec
16Jan
16Feb
16Mar
SKAGIT
2.4
2.7
2.9
3.4 3.3
3.2
3.7
3.1
4.8
4.2
3.4
2.2
1.8
ANACORTES
2.6
3.4
2.5
3.4 3.2
3.9
3.7
3
5.7
8.4
3.4
2.8
1.5
BURLINGTON
2.5
3.1
2.6
2.9
4
2.2
3.5
3.2
4.9
7.3
2.9
2.8
1.6
GUEMES ISLAND
3.7
5
4.7
3.8
18
16
13
13
11
8
3.5
4
11
LA CONNER
6
6
7
12
6
14
6
7
7
10
7
3
15
MT VERNON
1.8
2.4
2.9
3
2.4
2.9
3
2.5
3.8
2.9
3.3
1.6
1.7
SEDRO WOOLLEY
1.6
1.4
1.9
3.6 2.9
2.2
2.7
2.8
3.6
2.3
2.9
1.4
1.6
ISLAND
2.9
3
3.5
3.4 3.3
3.1
4.5
3.7
4.6
4.4
2.7
2.5
1.9
NORTH WHIDBEY
2.4
2
1.9
2.2 2.3
2.9
2.4
2.2
2.7
2.4
2.9
3.8
1.5
Months of Inventory (Pended Sales)
15Jul
This data outlines the time it would take to sell through the home inventory currently on the market (if no additional homes are listed) based on the rate homes are currently selling. Numbers below six months worth of inventory generally favors the seller’s side.
© Jean Groesbeck & Associates, LLC
Page Two
Only two markets possess inventory that exceeds demand; La Conner and Guemes Island. As Guemes Island is a relatively small market, a small amount of sales can swing the sales ratio pendulum in either direction. Overall, it is a very healthy one. In La Conner, however, the market is dominated by Shelter Bay homes which are on leased land and responds differently to market conditions.
As days on market continues to decline, some sellers are pricing homes a bit below market value in order to get multiple offers. This allows them the ability to select the offer that best fits their needs.
Days on the Market (Sold Properties)
15-Mar
16-Mar
SKAGIT
86
78
ANACORTES
93
86
BURLINGTON
110
81
GUEMES ISLAND
262
107
LA CONNER
308
127
MT VERNON
71
64
SEDRO WOOLLEY
50
57
ISLAND
106
71
NORTH WHIDBEY
79
46
As always, these numbers are dependent on location, floor plan, home age, and amenities. While there are many new construction listings, these will not be completed for months. One-level homes are the most expensive to build and are always in shorter supply. Š Jean Groesbeck & Associates, LLC
Page Three
The luxury real estate market has never been hotter, but the new luxury buyer has a different vision than that of a luxury buyer ten years ago– the last peak in home sales in our area. Previous Luxury Buyers
Today’s Luxury Buyers
Museum –like space
Warm gathering places
The bigger the better
Amenity-rich homes with useable spaces
Over-the-top Rooms
Smart homes with temperature, lights, security systems all controlled from a mobile device
Prior generations worked hard to spend money Today’s luxury buyers want experiences and homes on things. Lots of storage was needed that will create good memories. Spa features in the because what you owned was a sign of status master bath are more important than extra closet and heightened self-esteem. space
Formal and casual indoor entertaining spaces
© Jean Groesbeck & Associates, LLC
Casual indoor areas as well as heated outdoor entertaining areas with kitchens, TVs & sound systems.
Page Four
THE NEW LUXURY BUYER Other industries are seeing new trends; Glamping (glamour camping) and Foodcations (cooking or dining tours) reflect the new level of luxury in the travel industry. Demographics of luxury buyers are becoming more diverse in countries of origin– the largest growth coming from China, India, Brazil, and Southeast Asia. Luxury buyers are younger (30’s and 40’s) and have typically grown up with technology. What should you do to your home if you want to appeal to the luxury buyer? If you aren’t planning on moving soon, do something that YOU want that YOU will enjoy.
A growing trend in luxury properties is a shift toward the use of products that have historically been used for commercial applications; it began with spa-like master baths and has grown to include everything from architectural details to bedding. We know that energy consumption and pollution are issues that will continue to be a concern. There is no doubt that energy efficiency, solar energy, and the use of renewable resources will be important. Technology will be more sophisticated, but only those products that are easy to use will be in high demand. Home owners will want to be able to control the systems in their house on their smart phone, whether they are inside the house or on the other side of town.
Above all, don’t over invest in improvements that do not reflect the value of your land. © Jean Groesbeck & Associates, LLC
Page Five
Many modestly priced homes-for-sale are receiving multiple offers if they are priced to sell, and if you are trying to purchase one of these properties you may be competing against investors that are offering cash. However, as an owner-occupied purchaser you have some advantages that cash buyers don’t have. Stack the cards in your favor by using these techniques to get your offer accepted.
CASH COMPETITION 1. Select a full time professional Buyers’ Broker to represent you. The listing broker represents the seller’s best interest. You need to have a broker that represents YOUR BEST INTEREST. Be faithful to that broker- they will get you in to see new listings right away, and will work to find homes that are not even on the market yet. 2. Be prepared to react quickly. Get preapproved for your loan. Find out what the lender needs and get all the documentation to them right away. Many secondary real estate websites such as Zillow or Trulia have inaccurate information, and there is usually a time lag before new listings get to those sites so your broker will set you up on an alert directly from the MLS. Do your neighborhood reviews in advance so you know which neighborhoods work for you. 3. The lender makes a difference. Your broker will know which lenders deliver on time. If you submit an offer with a pre-approval letter from an unreliable lender, your offer may not get accepted (even if it is the best offer), Avoid the “ClickHereForCheapMoney.com” types of online lenders, but do shop around. 4. Don’t believe everything you read on the internet. Do not think you know the real estate market by watching Zillow.
© Jean Groesbeck & Associates, LLC
Zillow “Zestimates” are not accurate- for example, they do not include sales from bank owned properties which lender appraisers do consider, nor do they take into account absorption rates (supply and demand). Your broker has accurate information and can interpret the data so you can make the best decision for you. 5. Make your best offer first. In this competitive environment, a seller is going to chose the best offer to either accept or counter. Sellers are not going to waste their time with a low offer. Your buyers’ broker can do a market analysis and advise you of the market price of the home. 6. Price isn’t the only component that sellers consider. Your broker will call the listing broker and determine what terms and conditions are most favorable to the seller. It might be that the seller’s priority is to close quickly, or they might want to delay closing until after school gets out or some other event. You can also make your offer more favorable by having a larger earnest money sum, shorter contingency time frames, no closing cost requests, and know that sellers generally do not like FHA loans for a multitude of reasons. BUYERS: If you would like to read “Questions to Ask Your Lender” , please call or email any of us for a complimentary copy.
Page Six
Ready For a New Home?
Are you ready for a new home but need to sell first? We can help you determine what the demand for your home could be! Give us a call and we would be happy to show you the inventory, past sales, and absorption rate for your home as well as the price you can expect. Don’t forget, we provide complimentary staging service and professional photography for all of our clients that list their homes with us.
Page Seven
Plenty of First Time Buyers, Not Enough Inventory Be prepared! In our current market, many home sellers are going for the highest and best offer situation. Be prepared for multiple bidding wars, especially if you are a first time buyer. The number of homes in the lower priced market is at an all time low in Skagit County. Low inventory translates into a Seller’s market and affordability will be a challenge for first time buyers. This does not mean it is impossible. Do your homework, be decisive and listen to your Realtor®. As long as you remain competitive, your Realtor® will guide you into making a smart decision and reach your goal of buying a home.
We Are Growing to Serve You Better! We have a team of dedicated, full-time brokers in our office who are always happy to help!
Jean Groesbeck
Eileen Hebert
Kenny Sides
Linda Harris
Managing Broker—Realtor ® Coldwell Banker Bain (360) 941 3734 Jean@Jeangroesbeck.com
Realtor ® Coldwell Banker Bain (360) 770 7090 EileenHebert@CBBain.com
Realtor ® Coldwell Banker Bain (360) 982 3400 Skagit Broker@gmail.com
Realtor ® Coldwell Banker Bain (360) 202 8888 AnacortesRealEstate@gmail.com
Jean Groesbeck (360) 941-3734
4100 194th St SW , Suite 135 Lynnwood, WA 98036
© Jean Groesbeck & Associates, LLC
809 7th Street Anacortes, WA 98221 www.AnacortesLiving.com www.AnacortesRealEstateGuide.com Jean@JeanGroesbeck.com