In the last 15 years, home staging has become an integral part of selling homes in our market. While necessary, staging is also not inexpensive. In order to evaluate and justify the expense, it is important to understand how buyers make their decisions.
Data from the fourth quarter of 2018 is in and Realogics Sotheby’s International Realty has analyzed the numbers. Take a look at the latest housing market trends in Seattle for single-family homes and condominiums.
Whether it’s your first or your fifteenth transaction, buying a home is a significant financial decision that demands some measure of caution. Regardless of the property type, it is wise to operate from the point of view that most homes have flaws (even when they’re newly constructed). Hidden safety concerns and significant repairs can add up quick, so it’s a good best practice to avoid surprises and have a prospective home thoroughly evaluated by a certified, experienced home inspector.
My first real estate transaction as a broker was in mid-2016, when I represented a Florida-based investor who was interested in finding a condominium in downtown Seattle. The rapport I built with him was bolstered by market knowledge and later by negotiation skills—and thank goodness for that, because what I didn’t know would have had me dismissed by most. I didn’t speak the language of the investor, nor did I possess the ability to perform a legitimate financial analysis. Glaringly obvious and a little bit embarrassing, I vowed to change it.
Our client’s extraordinary floating home on Ward Cove is featured on a Curbed Seattle article titled “12 houseboats and floating homes for sale in Seattle right now.” Water views don’t get much better than this!
As the holidays draw near, I am filled by a sense of excitement, knowing I will soon celebrate with close family and friends. I hope that you too are looking forward to the holidays as we say goodbye to 2018 and ring in the new year.
If you have been following the local news you are probably aware that our torrid hot real estate market is shifting. What should we make of this? Is this 2008 to 2012 all over again? The good news is no.Historically, our real estate market fluctuates with 5-to-7-year up-cycles and then takes a 6-to-12-month breather where prices may drop 5-to-10-percent before heading back up for another 5-to-7-year-up-cycle. This shift can happen quickly and that is exactly what happened this time. Back in December, clients were asking me how long the crazy market would last and my response was that I saw no indication of an end, yet a few short months later, it happened. This is a macro-trend and it is important to know that each neighborhood has its own micro-trend dynamics and degree of change.
Seattleites know how hot the real estate market is right now and are closely monitoring the conditions of their neighborhood. The market is changing quickly and many of my friends and clients are wondering if it’s the right time to buy or sell.
Most people have a short-term mentality when it comes to real estate, but they should have a long-term mentality. Real estate should always be a long-term investment.
When to Buy
It doesn’t matter when you buy an investment property in the long run. Every time you sell a home, it costs you about 8.5%, so each investment you make is more profitable the longer that you own it. It’s always a good time to buy a property that you will hold onto for a long time!
Where to Buy
You should buy the right property for you, in the right location. What neighborhood do you want to invest in? What will connect with you personally? A real estate broker understands investing and can help you study the neighborhood for the long-term potential.
Residential is Different
What are you proud of owning? Buying a home for you and your family is a big financial investment. The home you choose should really depend on your quality of life, and what will serve you the longest.
For example, if you’re single and want to buy a one-bedroom condo, it might be worth stepping back and assessing the next few years. Do you want to have a live-in partner in the next 10 years? If your answer is yes, and a two-bedroom apartment is in your budget, this might be a better choice for you.
I got my start in real estate investment a handful of years ago while we were remodeling our house. We bought a little condo, located near the downtown Seattle core, to stay in during the remodel. We held onto it over the years and bought another condo shortly after. In the years that I’ve owned the properties, they have more than doubled in value, accumulating $500,000 worth of profit, plus the monthly income. Even though the real estate market is hot right now, I’m not thinking about selling. I really love owning these properties.
The biggest mistake I see investors make is buying a property that requires a lot of work. You will make less money in the time that you own the property. In the two years that I’ve owned my condos I’ve done just one full day of work, fixing small things like garbage disposals or air conditioning units. I purposely buy condos because I don’t have to worry about the roof or any major issues. Though I have to pay HOA fees, it’s worth it to me to not have to worry about the hassle. The most I ever have to do is manage the cleaning and painting that comes with each new tenant.
Many of my clients are considering investing in the real estate market and turn to me to explore different investment avenues. If you’re interested in having a conversation about real estate investment, please call me!
-Enrico Pozzo
What do you think of when you think of Issaquah? Do you think of the big Salmon Days event? The Costco headquarters? The beautiful Olde Town neighborhood? Maybe you think of the great school system!
On June 14th, SeattlebyDesign’s Chris Kallin attended a private presentation by Jen Davis Hayes, Issaquah’s Economic Development Manager. Developer’s and tier-1 tenants were the primary audiences, but Chris learned a lot of information that might be of interest to the residential real estate investor and/or owner-occupied homebuyer!
Chris would love to share the full presentation for any interested readers, but here are a few interesting tidbits that you won’t find in the presentation:
– Issaquah boasts more C-Level executives than any other area of the Puget Sound. Astonishing, given some of the more high-profile neighborhoods one might think of first.
– Currently, 70% of the Issaquah valley floor is covered in asphalt. City planners aim to change this dramatically, by requiring structure parking in key areas and for projects of a certain scale.
– The City of Issaquah has lifted their 1.5-year moratorium on new commercial development. The goal during this time was to develop a comprehensive view of a future-Issaquah and to produce an architectural fit / urban design manual. The requisite zoning changes align with the prescriptive objectives.
– Just 9% of residents currently live and work in the city. With several anchor tenants dramatically increasing their footprint (e.g. Costco’s doubling of its corporate office space), planners hope to see this figure improve dramatically. One of the ways they aim to increase this is to add “play” to the live-work-play equation. Projects that provide entertainment value are sure to get more support from the City of Issaquah than others ignoring this element.
– A review of the presentation reveals a number of residential real estate opportunities. Areas of interest might include the area of likely ST3 light rail expansion, the soon-to-be improved transit center, and the several roads being added to the area, including at least one overpass connecting the two halves of the city bisected by I-90.
Please contact Chris Kallin if you’d like more information or a copy of the city’s presentation! You can email him at chris@seattlebydesign.com.
And if you’re interested in making an investment in the area, be sure to check out the Issaquah Active Projects Map: http://bit.ly/2KJNCnd
For many of us, our children have either already grown up and left home, or they will be leaving the nest soon. We are no longer interested in spending long hours keeping up our yards, and our homes are larger than what we need. If you are among those in this boat, the good news is it is a fantastic time to sell a home! The bad news is that buying a home can be challenging in the current Seattle-area housing market. If your goal is to stay in the area, there are a couple of good long-term and short-term strategies.
Many homeowners in the Seattle area are hesitant to sell their homes right now unless they can purchase their new home before selling their existing home. The Seattle housing market is the hottest real estate market in the country, with no signs of slowing down. January 2017 marked the 17th month in a row that Seattle has led the country in home price increases. Because of this, homeowners feel secure in owning a home and worry that they will not be able to find another home that they love in the hyper-competitive market. This has made low housing inventory a common theme in our area, driving up competition and prices for buyers. If you are worried about buying a new home in this market, you can explore creative methods, like a home equity line or other financing options that will allow you to purchase before you sell.
Another option is to get started on a two-year strategy. If in-city life appeals to you, purchasing a condo presale could be a good option. Developers prefer to sell future condominium homes prior to breaking ground on the project. For an empty nester that isn’t quite ready to move, there are a few excellent benefits for taking this route!
The SeattlebyDesign team is always available for consultation on your specific circumstances.
Please don’t hesitate to contact us!
-Barry Bergner
