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FEBRUARY 8, 2017
Buyers:
VOL. 98, NO. 6
Brokers Draw a Roadmap For Moving up, Downtown
Get Prepared for the 2017 Housing Market
S
o you’re ready to purchase a house in 2017. You’ve saved for your down payment, you’ve looked on-line at homes for a while now and 2017 is the year. Good for you. Home Stewart ownership is a great Some homes will Karstens financial decision for have multiple your long-term future. offers after the WINDERMERE But as you may know, first week on REAL ESTATE the housing inventory is the market, so low and demand is high. it might not Home prices in King County be easy. But with the right went up, on average, 11% in preparation and mind-set, 2016. They are predicted to you will greatly increase your go up another 6% to 7% in chances of getting your dream 2017. A balanced inventory home. Here are four tips for is around 5 to 6 months… buyers to get prepared in this inventory in King County is competitive market: hovering at about 1 month.
THE QUINTESSENTIAL NW MODERN TOWNHOUSE AS INTERPRETED BY RENOWNED ARCHITECT RALPH ANDERSON.
@qamagnews
QUEEN ANNE TOWNHOUSE
$2,996,000
MOIRA E. HOLLEY moirα@moirαpresents.com 2 0 6 . 6 6 0 . 4 78 7
1. Get preapproved by a reputable lender: This should be your first step in your buying process. A preapproval letter is a letter from the lender that states you are “conditionally” qualified for a loan up to a certain amount. This will let you know exactly how much house you can afford. Most offers require that you have a preapproval letter attached. The letter lets the prospective Seller know that you can afford the home and it only takes a couple of days to get pre-approved. A more powerful option is to get a full loan commitment from a lender. This process is becoming increasingly popular for Buyers to standout from the crowd and can take one to two weeks to complete, but it can be very beneficial. First, it lets the Seller know that you are a serious Buyer and have already been approved above and beyond a preapproval letter. Second, with a full loan commitment you are able
moirαpresents .com
➧ MARKET, Page R3
It’s official. Our Seattle metro area boasts the fastest-growing house prices in the US, according to the S&P/Case-Shiller Home Price Index. As of November 2016, the median home price in the tri-county region rose 10.4-% year-over-year – that’s nearly double the US national index. Demand is high and inventory is historically low, especially in close-in neighborhoods like Magnolia and Queen Dean Anne near urban employment centers. In fact, the Jones cost of housing here set a new benchmark value in 2016, rising to $790,000 in zip code 98119; REALOGICS $918,000 in 98119; and $1,038,000 in 98102. SOTHEBY’S Price escalation generally means it’s a good INTERNATIONAL time to sell, especially for those whom patiently REALTY waited out value recovery in the wake of the Great Recession. Yet buyers complain of slim pickings because would-be sellers are staying put for fear of not finding adequate replacement homes. So this vicious cycle persists. Still others dream about a new home, but grimace at the prospect of competing with multiple offers or taking on a renovation while treading water in a rental home. Astute shoppers are taking advantage luxury high-rise condominiums that offer presales before construction starts. New developments like NEXUS, a 41-story condominium at 1200 Howell Street, will allow buyers to lock in a purchase price when the homes are released for sale in March 2017. Developers are willing to offer introductory pricing, preferred selection and opportunities for personalization options in exchange for reducing their market risk and satisfying financing requirements. Securing a presale at NEXUS requires an initial 5% earnest money deposit held in escrow, but the closing won’t occur until mid-2019, about thirty months from now. A presale buyer doesn’t need to think about the move for another two years and there’s no fear of price escalation or renovations. Current home owners will also enjoy another two years of appreciation while their new condominium is being built. It’s even possible that the value of one’s future home could be buoyed by the same rising tides – a scenario we call double equity. Investing with confidence in downtown Seattle requires understanding the market fundamentals. Job growth, traffic congestion, construction costs and comparative housing costs between renting and owning – all factors in the balance supply and demand. Robust housing demand stems mostly from a booming job market, led by tech titans that have made downtown Seattle a major urban campus and/or their corporate headquarters. New employees are attracted not only by the job offer but by the relative affordability of our region, an enviable “lock and leave” lifestyle that’s walkable for work and play, and a lack of a state income tax. That’s compelling and it shows in population ➧ ROADMAP, Page R2
“Stewart’s knowledge and skills made a stressful situation of letting go of our family home painless and rewarding at the same time. We are thankful to have found Stewart and consider him a good friend”. – Marty & Darcy Neubauer
Exceptional Service with your Goals in Mind
STEWART KARSTENS 206-601-3421 www.stewartkarstens.com
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Queen Anne & Magnolia News: Home & Real Estate
FEBRUARY 8, 2017 | www.QueenAnneNews.com
Roadmap Continued ➧ ROADMAP, from Page R1 growth. The Department of Licensing reports that for December 2016, King County witnessed 5,453 new residents – that’s up 20% from a year ago, with nearly 25% of this migration is coming from California. Most of this housing demand is focused on urban centers close to lifestyle offerings and free of commuting times. Developers are certainly paying attention. Currently, there are 62 construction tower cranes erected in Downtown Seattle, more than any other city in the US. Much of this growth is residential; however, most of this supply is for rent, not home-ownership. This record level of construction is driving up development costs, spiking more than 35% in the past five years on top of higher land values. Simply put, the cost of buying or renting in these new buildings is getting more expensive and the only way to fix that cost is to own it. But only if inventory is available. For perspective, since 2011 more than 12,000 new apartments have been delivered in downtown Seattle compared to only 865 new condominiums (only two of which remain unsold). This market inversion has more to do with developer preference than consumer demand. High rents and low capitalization rates have made building apartments profitable without the risks of condominium development. That’s good for investors, but leaves buyers frustrated with few options in a market that’s already suffering from anemic supply of for-sale housing. Meanwhile, rent growth in downtown Seattle has averaged more than 10% per year for the past four years, with some buildings now commanding lease payments of $4.00 to even $5.00 per square foot per month. It can actually be more expensive to rent than own, especially at price points below $600,000 where owners can purchase with as little as a 3% down payment while enjoying low interest rates and income tax deductions. The reality is these apartment towers are incubating thousands of future home buyers, many of which will explore purchasing after getting settled in their new job and choosing to lay roots. Condominiums are obviously under-supplied and the challenge with high-rise construction is demand can rise more quickly than supply. A new offering could take four years from concept to closing. Fortunately, new condominium towers like NEXUS are in the pipeline. They will offer world-class design and amenities that befit a move-down buyer from the nearby communities of Magnolia and Queen Anne. Planning ahead with a presale and waiting to sell your existing home within a rising market is one of the best strategies for those wanting to make a move without leaving equity gains on the table.
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Queen Anne Home Sales for January 2017
Getting Prepared for 2017 ➧ MARKET, from Page R1 to close sooner and better compete with all-cash offers. It is also helpful if you use a professional Mortgage Broker that is well-known and trusted---if all things are equal between you and another Buyer, a reputable Mortgage Broker can tip the scales in your favor versus an online “no-name” outfit based in another state. Your real estate agent can assist you in finding a good Mortgage Broker. 2. Hiring an experienced Real Estate Agent: Again, this is a highly competitive market. So you will want an agent that has experience in multiple-offer situations. Interview several agents to get a feel for their personality and how prepared they are in an interview setting. Ask questions…How many multiple offer situations have you been involved with? How many did you win for your Buyers? What strategies (other than price) do you use to make an offer more appealing to a Seller? Do you have any references from multiple-offer Buyers you have helped? Are you to show homes during the week? Weekends? These
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Queen Anne & Magnolia News: Home & Real Estate
www.QueenAnneNews.com | FEBRUARY 8, 2017
Address
are important questions to ask. An agent can possibly make the difference between getting or not getting a home you love. 3. Location vs. Price: How much house you can afford and how far you’re willing to travel will be important decisions. Are you willing to travel 30 minutes? More? How about school districts? Discuss this with your agent to determine some parameters. Have your agent send you homes in your price range within your comfort zone and outside your zone to give you an idea of how price-points can change. You may be pleasantly surprised how much more home you can afford by just going a few extra miles. Windermere.com has a mapping tool that enables you to draw a radius around your comfort zone and only show homes in that area. Typically, the longer you’re willing to commute the more home you can afford. 4. Persistence and Positive Attitude: Chances are (even with an experienced agent) you may make several offers before you finally get your home. This can be emotionally draining for you, your family, and your agent.
Bed
Bath
Sq Ft
Year Built
Days on Mkt
556 Highland Dr.
2
2
1510
2007
13
Asking Price $679,000
Sold Price $675,000
Sold Price/ Asking Price 99.41%
327 W. Olympic Place #F
2
2.25
1,320
2016
129
$749,000
$715,000
95.46%
2227 11th Ave W
3
2.75
2,030
1914
76
$798,000
$780,000
97.74%
515 D Ward St.
3
1.75
1,507
2016
70
$838,700
$805,000
95.98%
302 W. Raye St.
3
2.5
1,680
2009
154
$839,950
$807,500
96.14%
2004 1st Ave N.
2
2
1,608
1909
4
$799,000
$816,000
102.13%
321 W. Olympic Place #B
2
2.25
1,540
2016
35
$899,000
$880,000
97.89%
2531 Nob Hill Ave N
4
3.5
3,310
1985
139
$950,000
$950,000
100.00%
313 Valley St. #G
1
1.75
1,294
2016
56
$989,900
$989,900
100.00%
418 W. Fulton St.
3
2.25
2,127
2016
40
$999,000
$999,000
100.00%
1622 1st Ave N
3
1.75
2,600
1927
51
$1,078,000
$1,050,000
97.40%
420 W. Fulton St.
3
2.25
2,127
2016
20
$1,069,000
$1,058,310
99.00%
1112 Bigelow Ave N.
4
2.75
4,080
1939
97
$2,798,000
$2,730,000
97.57%
1008 4th Ave N.
4
3.5
4,180
2005
36
$2,850,000
$2,800,000
98.25%
220 W. Olympic Place #309
1
1
525
1929
128
$228,900
$228,900
100.00%
1017 W. Nickerson #16
1
1
682
1965
17
$229,950
$230,500
100.24%
500 Elliott Ave W. #315
1
1
591
2000
2
$279,999
$305,000
108.93%
520 2nd Ave W. #203
1
1
620
1992
6
$325,000
$325,000
100.00%
160 Lee St. #209
1
1
605
1988
27
$350,000
$350,000
100.00%
63 W. Elturia St. #1
1
1
627
1968
6
$329,950
$350,000
106.08%
655 Crockett St. #B102
0
1
725
2004
8
$419,000
$419,000
100.00%
701 1st Ave N. #304
1
1
738
2000
14
$380,000
$420,000
110.53%
1525 Taylor Ave N. #603
2
1
687
1960
6
$370,000
$428,250
115.74%
2628 4th Ave N. #301
2
1.75
1,134
1981
4
$425,000
$500,000
117.65%
201 Galer St. #542
1
1
716
1908
6
$465,000
$515,000
110.75%
500 Aloha St. #305
2
2
967
1992
7
$550,000
$550,000
100.00%
500 5th Ave W. #101
2
1.75
1,210
1968
13
$574,950
$580,000
100.88%
501 Roy St. #T203
2
1
1,074
2007
68
$659,888
$643,000
97.44%
Bed
Bath
Sq Ft
Year Built
Days on Mkt
Sold Price
Sold Price/ Asking Price
2910 W. Elmore St.
2
1
960
1952
8
$534,750
$605,000
113.14%
2402 W. Boston St.
2
2.25
980
2006
8
$555,000
$605,000
109.01%
3253 Perkins Lane W.
1
0.75
525
1930
99
$675,000
$665,000
98.52%
2127 Montvale Ct. W.
4
1.75
2,320
1939
4
$689,950
$690,000
100.10%
2210 Thorndyke Ave W.
3
2
1,706
2016
0
$699,000
$695,000
99.43%
2212 Thorndyke Ave W.
3
2
1,726
2016
14
$729,950
$729,950
100.00%
4057 Williams Ave W.
2
2
1,540
1947
7
$699,000
$740,000
105.87%
2214 Thorndyke Ave W.
4
2
1,686
2016
4
$729,950
$742,000
101.65%
3005 W. Mansell St.
3
1.75
1,920
1951
5
$799,950
$792,000
99.01%
2941 25th Ave W.
3
2.5
2,540
2000
6
$997,000
$1,015,000
101.81%
3827 30th Ave W.
3
3
2,499
1941
1
$989,000
$1,200,000
121.33%
3701 B W. Fulton St.
4
3.25
3,850
2005
73
$1,475,000
$1,425,000
96.61%
3601 24th Ave W. #109
1
1
617
1969
26
$240,000
$240,000
100.00%
2551 Thorndyke Ave W #201
2
2
1,241
2003
12
$459,950
$459,950
100.00%
Magnolia Home Sales for January 2017 Address
Asking Price
Information supplied by Northwest Multiple Listing Service
It’s easy to get discouraged— don’t. Just know that there are more homes coming on the market every day and your home just hasn’t found you yet. Stay objective, learn
from each offer you make, and keep emotion at bay until you know the home is yours. When you get your dream home, then you can pop the cork and celebrate. Happy hunting.
@qamagnews
Same Exceptional Service - 32 Years Later! $2,4
THE HIGHLANDS
1 Listing! st
1984
95,0
00
Enjoy this very livable home in the Highlands with its 60’ long living, dining, and music rooms overlooking a stunning natural landscape. The gardens provide year round interest with native plantings, stone walkways & steel sculpture wall that seamlessly transitions to four acres of woodlands. 5 bedrooms, guest apartment and 3 car garage. The Highlands offers privacy, security & natural beauty just minutes to town. MLS #1035281. Video & floor plans at www.krishendricks.com.
KRIS HENDRICKS/ Managing Broker 206.755.5757 | Khendri@windermere.com
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Queen Anne & Magnolia News: Home & Real Estate
FEBRUARY 8, 2017 | www.QueenAnneNews.com
LIFE IS A JOURNEY; Ready to downsize? Let us show you the way.
NEXUS will soon rise at 1200 Howell Street in the heart of the new multi-billion dollar, East Village neighborhood - priced from the $300,000s to $3 million+. Occupancy 2019.
New high-rise condominiums are on your horizon in downtown Seattle. Explore your opportunity to secure your cosmopolitan “lock and leave” sky home today awaiting the the sale of your current residence into a rising market in the years ahead. Now’s the time to contemplate the simplicity of an in-city lifestyle; enjoying the freedom and resources to travel the world. Contact us for a peek into the future development pipeline and for a projected home valuation.
Meet your global real estate advisors:
LAURA HALLIDAY
CARRIE DEBUYS
HOADY SPENCER
C I NDY PAUR
PETER PHILLIPS
LESLIE DICKINSON
BONI BUSCEMI
JOHN MADRID
ERIC CONWELL
206.399.5842
206.551.0555
206.372.1092
206.949.4497
206.949.3555
206.200.2174
206.259.0012
206.498.1880
206.565.7373
EVENTS YOU WON’T WANT TO MISS Art & Home
4031 East Madison Street | View RSIR.com or call 206.448.5752
Grand Opening
New & Noteworthy
VALENTINE’S DAY DASH
INTRODUCING THE PARK HOUSE
YEAR END MARKET REPORT
Join us, February 12th at 9:30am for an invigorating walk or run around Green Lake! Participants are invited to join either individually or as a two-person team.
Realogics Sotheby’s International Realty will be hosting a grand opening soirée in March. Please sign up online to get the latest!
We invite you to discover market trends for 2016 and perspectives from leading real estate professionals in your neighborhood, where every residence is a Realogics Sotheby’s International Realty home. To recieve a hard copy please contact one of our brokers above.
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