Do I need to put up my “Sold Out!” sign?

We are getting close to the half way point of the year and what we can definitely say is that the real estate market is busy.  Ask a real estate agent how the real estate market is in Seattle and if they don’t include the word “busy” in their response, they are not telling the truth.

After storming forward through this month of June with my head down working, I looked up and realized, “hey, I’m completely “Sold Out!”  As of Monday, our last Active listing had received multiple offers within 2 days of being on the market.  And to top that off it was a short sale!

Now, thankfully this morning we put on a beautiful home in the Madrona neighborhood (Click on the link: http://vicaso.com/18165) , with have another home coming on in Judkins Park soon (Click on the link: http://vicaso.com/17114), and 4 New Construction homes in Capitol Hill as well.

With things moving so briskly in Seattle we could very well be posting another “Sold Out” sign.

We need to do a Short Sale…well maybe you don’t.

These are some very interesting times in the Seattle Real Estate market.  Properties selling within days, multiple offers, everyone in a panic as to how quickly things are moving, and the E-word…Escalation Clauses.  And of course we still have Short Sales, foreclosure dates looming, and bank owned properties popping up daily.

One of the good stories for me recently was a situation for some clients who contacted me about selling their home as a short sale.  They were very much under the impression that based upon what they owed and where the market had declined for their property, they were destined for a short sale.  Times were tight, and the outlook didn’t look very rosy.

So we met and discussed the short sale process.  However, in reviewing of the market for their home I found that we may have the possibility of utilizing the current market to their advantage and avoiding a short sale on their home.  Our chances of making this happen were akin to Chone Figgins being at the plate with 2 strikes, in the bottom of the 9th with 2 outs, runners on 2nd and 3rd and the Mariners down by 1 run.

Our best case scenario was to get a 2-run single to the gap and pull out a victory from the jaws of defeat.  C’mon Chone Figgins!

We decided to forge through with listing the home at a value that I believed was doable based upon market trends, and would at best allow the seller to break even.  What transpired was more than a .197 hitter could imagine.  Not only did we get an offer within the 1st 24 hours of being on the market; we received another offer to begin the competition.  The ensuing bidding pushed the price to $10,000 above list price…can we say:

Fly Away! Chone Figgins with a 2 out, 2 strike, 3-run homer to win the game…MY OH MY!

The buyers closed within a short amount of time and lo and behold, my clients were walking away with quite a large surprise at closing in their pocket.

On a side note, this all occurred as Chone Figgins got off to a great start with the Mariners this April right around the time we needed his clutch hit to get our sale completed.  As of this blog’s entry, he is now relegated to the bench due to his batting slump.  Good thing there is such thing as “timely hitting.”

Seattle Real Estate Inventory…Where have you gone?

It is a great time to be on the market here in the Seattle Area.  A couple of weeks ago I wrote about the lack of quality inventory available in our market and how things are getting gobbled up quickly.  I’m finding in speaking with other agents, mortgage lenders, and industry professionals, that it is very much a seller’s market in terms of getting your home sold in a timely manner and having buyers fight hand over fist to get in the door.

I’ve been following the stats provided by a local real estate appraiser, Alan Pope, who has detailed the absorption of inventory (Pending Sales/Inventoery) in the closer in neighborhoods of Seattle.  Specifically the Central Area, Capitol Hill, Queen Anne, Ballard, Greenlake, and Northeast Seattle.  What we’ve seen is that the inventory in these neighborhodds is moving off the shelves briskly to say the least.  52% Absorption of inventory in February 2012, with 719 pending sales and 1374 listing inventory.  (We should have March’s figures early next week) Take a look at the inventory in these areas as well, down 36% from last year alone, while sales are up 10% over the same period.

Click on link to view chart(s): http://alanpope.com/Feb12/390_700-720.pdf & http://alanpope.com/charts.htm

This is ridiculus.  Buyers are losing out on properties left and right, and bidding wars are a constant.  We are even seeing in the outlying areas of Seattle where more and more inventory is getting snatched up quickly.  On a property in Burien, we received 3 offers within hours yesterday.  One in Ravenna, multiple offers within a day and half.

Time will tell how this progresses forward, but with the latest flurry it is looking like 2012 is well on its way to being a fun, exciting, and eventful real estate market in Seattle.

If selling is something you have considered; old axioms hold true…what drives the market is Supply vs. Demand.  Demand is high, supply is low.  Got Property?

Banks Loosening Credit Standards…Let’s not loosen too much now.

Standardizing of mortgages and loosening the credit standards has definitely been a big help in the market recovery.  I’m not so sure though, that loosening significantly further is a good idea just yet.  I mean, let’s get into a comfort zone of our market so we all can get a solid footing of which way is up.

I’m all for a free-flowing market, however, once you loosen your belt it just opens up more room to eat beyond what you need.  I know many of us don’t want to go back to the bubble era of No Doc, No Job, No Credit loans in the early 2000’s.

Our market in Seattle seems to be moving along at a brisk enough pace to show where we are at currently is working in re: to current standards.  Now I know these Big Banks don’t make their decision based upon Seatown, but it just smells more like a money grab than anything if Banks start further implementation of a smorgasbord of loans they had in their arsenal before.  And just as the article mentions, improvements to credit will not show themselves in pricing,

…Capital Economics says “any improvement in credit conditions won’t be significant enough to generate actual house price gains,”

So keep on keeping on people in saving up and building a solid foundation of your credit and soon enough the mortgage crisis will be in the distance of our rear view mirror.

To read more visit: Housing Crisis to End in 2012 as Banks Loosen Credit Standards

Seattle Real Estate in the News…

I was reading the Seattle Times yesterday and came across this pretty interesting article about the Seattle Real Estate market, specifically the limited inventory within the City of Seattle. From firsthand experience we are definitely seeing a scarcity of “quality” inventory in the city and lower inventory overall throughout King County, which the article touches on. We are finding many homes that are of quality price and condition are seeing a ton of activity, and in some cases multiple offers.

…If a home is priced reasonably, “almost every listing is getting at least two offers,” said Phil Leng, a Keller Williams Realty broker in Kirkland.

He said he represented one first-time buyer who offered $61,000 more than the asking price for a Seattle bank-owned home.

I’ve been in multiple offer situations in the past few weeks where I’ve seen the sales price increase significantly over list price due to this shortage of housing supply.  As more and more buyers find that the pickings are slim for a “quality” home, we will continue to see a flurry of activity on the few homes that get it right with their price relative to the overall condition of their home.

To read more visit: Shrinking inventory breaks fall in King County home prices

Warren Buffett speaking on his take on today’s housing market as an investor.

When the most widely respected investor of our time speaks, people listen.  Warren Buffett is right, our market is offering some excellent investment opportunities to purchase properties at cheap rates and watch over time the investment to bear fruit.  Now his comments are relatively wide ranging about the market overall.  However, this applies to our market in Seattle as well, as many homes in our market will cash-flow immediately with a proper down payment and today’s interest rate for investment property.  For many who think that investing in real estate is not for them, consider buying a multi family property of 2-4 units; living in one side and renting the other.  This is a great option to take into consideration and can assist in paying the mortgage off quicker…again at extremely low interest rates.  Our market is primed for attack.

Updated Progress – 24th and E Thomas New Construction…Framing Has Begun


4 New Homesites

4 Unit Development Site in Capitol Hill / Arboretum Area Coming Soon from Albert Clark & Associates.  Built by Pete Granger, these 4 homes will have a modern flair with equisite styling.  Designed by Medici Architechts, these homes should be ready for occupancy by Summer 2012.

Seattle Real Estate Listing Sold: 108 5th Ave S #511, Seattle 98104, Closed 4/13/2011

List Price $160,000
Sold Price $160,000
Seattle Real Esate Listing Sold. This is almost like a 2 bedroom. Very spacious 1+ Bed/1 Bath that has an extra room large enough for office/den/spare bed, etc…in downtown. Granite couters in kitchen and bath with rich dark stained cabinets. There is an additional 1/2 Bedroom/Den/Office to create your own space. Plus a Washer/Dryer combo IN UNIT! Confident living in a secure building and garage with a personal parking space for your convenience. Take advantage of this great price!

Low Inventory and Interest Rates Make for a Competitive Marketplace for Buyers

With low inventory and interest rates continue to remain in the 3-4% range, the increase in buyer competitive is certainly upon us.  Couple that with decreasing prices and some of our markets are downright hot.  I was just in a multiple offer situation with a buyer on a property in Kenmore this past week.  I also had 3 offers on a listing in Seattle earlier this past month.  What we are definitely seeing is that if a property is priced well and has enticing features, they will sell in this market and quickly!

Take a look at the attached article from the Northwest MLS about our current inventory and what we possibly will see coming in 2012 in the real estate market.

NWMLS News Release

24th and E Thomas St – New Construction Updated Progress

  
4 New Homesites

4 Unit Development Site in Capitol Hill / Arboretum Area Coming Soon from Albert Clark & Associates.  Built by Pete Granger, these 4 homes will have a modern flair with equisite styling.  Designed by Medici Architechts, these homes should be ready for occupancy by Mid 2012.

Listing information is provided by the Northwest Multiple Listing Service (NWMLS). Property information is based on available data that may include MLS information, county records, and other sources. Listings marked with this symbol: provided by Northwest Multiple Listing Service, 2017. All information provided is deemed reliable but is not guaranteed and should be independently verified. All properties are subject to prior sale or withdrawal. © 2017 NWMLS. All rights are reserved.
Disclaimer: The information contained in this listing has not been verified by NWG Real Estate and should be verified by the buyer.
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