SHERI BUTLER & MATT STAPLETON

For those of you who follow my blog, you’ll have noticed that many of my stats come directly from the Northwest Multiple Listing Service (NWMLS). They have just released our April numbers and something great came out of them – price gain! While it wasn’t a large price gain (1.27%) it was a gain, the first we’ve seen in a really long time!

Northwest Multiple Listing Service brokers reported double-digit gains in both pending and closed sales during April compared to a year ago, but the most eye-catching number may pertain to prices. For the first time in more than four
years (since January 2008) the year-over-year change in selling prices was positive.

The price gain was a modest 1.27 percent for last month’s sales of single family homes and condominiums that closed in the 21 counties served by Northwest MLS. For single family homes (excluding condominiums) the price gain compared to 12 months ago was 2.9 percent. Condo prices fell 7.9 percent.

The median price for last month’s closed sales area-wide was $240,000 for single family homes and condominiums combined. That compares to $237,000 for year-ago sales. The figure for April also outgained the median price for completed transactions during the months of March ($225,000) and February ($218,944).

Prices for single family homes continued climbing. The median price for last month’s closed sales was $250,000, up from both a year ago ($242,950) and from March ($234,487).

While cheered by the figure that snapped a 50-month string of negative numbers for year-over-year price comparisons, Northwest MLS brokers said consumers must be realistic in their expectations. They also noted the market recovery will be slow and incremental.

“We’ve seen appreciation three months in a row, signaling a definitive turnaround in the market,” remarked OB Jacobi, president of Windermere Real Estate. “Due to the shortcomings in the Case-Shiller index I think it will take them until November to report year-over-year appreciation,” he added. (The S&P/Case-Shiller Home Price Indices track changes in the value of residential real estate both nationally as well as in 20 metropolitan regions.)

“As is fairly typical of a recovering market, the activity first heats up in the urban centers, and then spreads to the surrounding suburbs and outlining areas. We are now seeing this trend,” noted Jacobi, who is also a member of the Northwest MLS board of directors.

Tight inventory is creating sellers’ markets in some areas, according to reports from MLS directors. Inventory is down more than 27 percent for the Northwest MLS market overall, and by even larger margins in three counties: Snohomish (down 46.2 percent), King (down 39.4 percent), and Pierce (down 28.6 percent). Brokers say as demand outstrips supply, competition may intensify, especially for homes that are well-priced and in good condition in desirable locations.

Brokers added 9,166 new listings to inventory last month, which was 917 fewer listings than the same month a year ago. At month end, the selection totaled 25,291 active listings, a drop of 27.5 percent from a year ago according to the latest figures from Northwest MLS.

It is a seller’s market in Kitsap County, reported Northwest MLS director Frank Wilson, the branch managing broker at John L. Scott Real Estate in Poulsbo. Statistics show inventory there is down more than 13 percent compared with a year ago, pending sales jumped 39.3 percent and median prices increased more than 14 percent.

MLS members reported 8,790 pending sales across all 21 counties during April for a 22.9 percent increase from a year ago when there were 7,154 mutually accepted offers.

Talk of a seller’s market has to be tempered, Wilson emphasized, because “when sellers hear these words in the news they instantly think their homes are worth a lot more money….and they are not. Even if our home prices appreciated 2-to-3 percent a year – which they aren’t currently — it will take many years for homes to return to the values that we saw a few years ago,” he
suggested.

Despite his cautionary words, Wilson was upbeat. “We continue to see an increase in activity across the board. More people at open houses, more listings coming on the market, more buyers making offers and more multiple offer situations on correctly priced and staged homes.”

While Kitsap County experienced an uptick in new listings in April compared to a year ago, 11 other counties reported drops. System-wide, based on current inventory and demand, there is less than a three month supply, about half the volume needed for a balanced market.

Inventory is considered by many industry observers to be a key indicator affecting the housing market. In a recent Bankrate.com interview about the market’s recovery, Stuart Gabriel, director of UCLA’s Ziman Center for Real Estate in Los Angeles, suggested zeroing in on inventory, which he called “the most important statistic.”

“The pent up demand of local home buyers who are now purchasing homes has ignited a surge of sales activity,” observed J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. He said this surge is creating a shortage of inventory, causing multiple offer situations for many new properties coming on the market. “For homeowners who have equity, and have been cautiously waiting to sell, this ultimately means they can sell their home today and purchase within the same market timing,” Scott explained. Historically low interest rates are an added advantage, he added.

Northwest MLS director Meribeth Hutchings, designated broker/owner of Windermere Real Estate in Lake Stevens also commented on surging activity. She credits favorable interest rates and low inventory for spurring activity. “The demand for ‘good clean homes’ is extremely high,” she commented, noting, “Our primary buyer today is still the first time homebuyer.” Hutchings, who has more than 27 years of real estate experience, also suggests sellers who want to sell and have the equity should be placing their homes on the market now.

Also commenting on inventory and the lively market was MLS director Joe Spencer, area director for Keller Williams Northwest Region.

“As Yogi Berra said, ‘It’s like déjà vu all over again’ as the Puget Sound real estate market continues trending in the same positive direction for the fourth month in a row,” Spencer remarked. With new and available inventory in a diminished state, he said there’s been a strong increase in buyer activity. “Low interest rates continue to energize buyers, while for sellers, prices in the Puget Sound are stable and up in areas close to job centers,” according to Spencer.

Darin Stenvers, office managing broker at John L. Scott in Bellingham believes the housing industry is recovering on its own, citing double-digit decreases in inventory for the past several months and a corresponding rise in pending sales as key indicators.

“It’s a slow process, but I expect it will continue for the balance of 2012 and through 2013,” Stenvers stated, noting he anticipates a return to home value appreciations in most markets by mid-2013. He also predicts consumer confidence will hold interest rates down through the fall elections and well into 2013.

“Consumers are bothered by the lack of inventory and are ready to make sure that they do not miss out on what may be the leveling off of the declining market values,” Stenvers stated. Buyers who were expecting to have offers accepted that are well below market value “are beginning to express frustrations” that this is no longer occurring, he added.  “As prices stabilize and inventories drop many buyers will feel the chance at home ownership at bargain prices slipping from their grip,” the MLS director observed.

Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership includes more than 22,000 real estate brokers. The organization, based in Kirkland, Wash., currently serves 21 counties in Washington state.

We’re always happy to discuss our current market conditions or give you specific data in regard to your home. If you have questions or would like to talk, please don’t hesitate to give us a call – We’d love to chat.

Rental demand is surging, interest rates are at historic lows, and recent economic activity has erased nearly a decade of housing appreciation. The combination of these three factors creates a remarkable opportunity for investing in the residential rental market. The long-term financial benefits can be significant, but the first step is to closely analyze the details. To help you get started, Windermere has created a seminar that will discuss:

• Why real estate should be part of your investment portfolio

• Why now is the right time to invest in the rental market

• Why your local housing market is one of the best places to invest

Buying a rental property poses different challenges than buying a primary residence and I would love to walk you through the entire process. A good place to start is with this seminar …

PLEASE JOIN US

Wednesday, May 9^th from 6:30 to 8:00 pm

Bellevue Marriot Residence Inn

605 – 114^th Avenue SE

Bellevue, WA. 98006

$25.00 per person

~ Registration Required ~

You can register by contacting us by phone (425-260-0127) or by email (sheri@sheributler.com).

We’re always happy to discuss our current investment market conditions. If you have questions or would like to talk, please don’t hesitate to give us a call – We’d love to chat.

Steve Fuller of the Seattle Times has just released the April 2012 Seattle Market Review that is full of current market information for our area. These areas include the Labor Market, Retail Market, Regional Development, Travel Market, Economy, and of course, the Real Estate Market.

He begins his review featuring highlights of each with promising rankings for Washington and Seattle …

o   Labor Market: Seattle No. 5 in U.S. job growth last year

o   Retail Market: PCC grocery could be part of Columbia City

o   Regional Development: Seattle blessed by Downtown upswing

o   Travel: Disney cruise ship to make Seattle its homeport this year

o   Economy: Personal income in state grew faster than U.S. average in 2011

o   Real Estate Market: King County home prices highest since September

Area stores opening:

o   Starbucks opens first juice store in Bellevue

o   LA bank opens restaurant lending office in Bellevue

o   Famed Murray’s Cheese opens in Seattle QFC’s

o   Yard House bringing beers to former Seattle Borders location

o   CityTarget taking shape in Seattle; 200 to be hired in May

o   Opus Bank opens new office in Kirkland

Area moving/renovating:

o   Seattle restaurant Joule moving to Fremont Collective

o   Banic Chiropractic and Massage is moving to downtown Issaquah

Area stores closing:

o   Seattle Sip Wine Bar closes, after losing lease

In addition:

o   Seattle Times methadone investigation wins Pulitzer Prize

o   Seattle ranked No. 1 for Best Cities for Hipsters – we won the survey for our smarts, tech savvy, and high octane coffee

o   Seattle ranked No. 5 in the Top Ten Smart, Sustainable Cities

CLICK HERE to read Steve’s report in its entirety.

We are always happy to discuss our current market conditions or give you specific data in regard to your home. If you have questions or would like to talk, please don’t hesitate to give us a call – We’d love to chat.

Which city has the best job market? The Labor Department figures come out next week and if last week’s Puget Sound Business Journal article is correct, Seattle will be one of the top. The PSBJ article is based on Arizona State University data, which currently ranks us number 5.

The most recent estimates place us with one of the lower unemployment rates nationally. Jobless claims have hit four-year lows with a State rate of 8.3% and a King County of 7.4%. Boeing currently holds its highest employment rate since 1999.

The long and the short of it is – the more people in our area with steady jobs = more qualified homebuyers in the marketplace. Not just in real estate, but within the overall economy.

Per Steve Fuller’s Seattle Times Market Review (March 2012), the Seattle economy leads the pack over Oregon and the nation. It does the same with the Purchasing Manager’s Index.

And real estate (yes, I saved the best for last) … King County soars above the average in home sales, while the housing inventory continues to shrink. The Seattle Times had a great article earlier this month, “Shrinking inventory breaks fall in King County home prices“.

So now the question is – is this the bottom? Ask different Realtors and I promise, you’ll get different answers. My opinion is a carefully phrased and firm, yes, if you’re realistic about price. The market doesn’t warrant offers that are grossly below the listing price any more. However, the market won’t tolerate an overpriced home either.

If you’re looking to buy, it is truly a great time to be in the marketplace – and, if you’re looking to sell I am happy to give you specific data in regard to your home. If you have questions or would like to talk, please don’t hesitate to give me a call – I’d love to chat.

Ps. Just after writing this, I noticed that Matthew Gardner has just placed a post on the Windermere Blog. He notes his take on the recovery, noting that he believes we have finally turned the corner as well!

Steve Fuller of the Seattle Times has just released the March 2012 Seattle Market Review that is full of current market information for our area. These areas include the Labor Market, Retail Market, Regional Development, Travel Market, Economy, and of course, the Real Estate Market.

He begins his review featuring highlights of each with promising rankings for Washington and Seattle …

• Labor Market: Boeing Washington employment highest since 1999
• Retail Market: Trader Joe’s opening W. Seattle store in April
• Regional Development: Chihuly center sets tentative May 21 opening date
• Travel: Seattle area use of light rail grows big in 2011
• Economy: Export Import Bank will open Seattle branch office
• Real Estate Market: Shrinking inventory breaks fall in King County home prices

Area stores opening:

• Storefront mushroom farm opens at Pioneer Square
• Nordstrom Rack opens near downtown Seattle flagship

Area stores closing:

• Sears selling stores, including Bellingham location

In addition:

• First-ever in U.S. aerospace suppliers show to be held in Seattle
• Seattle ranks No. 3 for tech startup jobs
• Seattle jumps to No. 3 in 2012 retail investment projections
• Brookings report confirms Seattle regions export prowess

This article goes into great detail for each market … CLICK HERE to download and read the PDF report.

Any time of year can present a good opportunity to buy or sell. Peak sales activity does occur during the spring and summer months, though that is also when the greatest amount of inventory is on the market. Throughout the fall and winter months there are fewer homes available, which creates demand. Buyers looking at that time are typically serious. Take advantage of the current seasonal activity now.

Figures compiled from average monthly pending sales of King County residential and condominium properties, January 2006–December 2010.

We’re always happy to discuss our current market conditions or give you specific data in regard to your home. If you have questions or would like to talk, please don’t hesitate to give us a call – We’d love to chat!

I am addicted to the television show “Sell this House” on A & E.  It’s main premise is to take a house that is being sold “as is” and has already been on the market for several months but without any offers and completely transform it with very little money.   Of course, within hours (or weeks) of completion, an offer is forthcoming.

The show starts with an Open House.  Hidden cameras show buyers walking through and voicing their opinions of it’s current condition.  The first time through is never good.  You wonder, what was the seller thinking, putting their home on the market “as is”. Or better yet, what was their real estate agent thinking?

There are so many good reasons to stage your home.  The most apparent one is that it will sell faster.  A survey from the National Association of Realtors states that a home will sell for 6% less after the first 4 weeks it is on the market.  Six percent of a $500,000 house is $30,000!  That’s a lot of paint. Another statistic shows that only 10% of all buyers can visualize “potential”.

Teri from Distinctive Décor is our stager.  She has been helping us with sellers for years.  Her first step is to  come out to your home and do a consultation.  She will analyze each room; pointing out what to put away, what to keep as focal points, etc.  She may suggest paint (and help you choose a color!), or carpet.   The purpose is to take YOU out of the home so the new buyer can see THEM in it.

When you are ready, we will make a second appointment for her to come back and “stage”.  This includes rearranging furniture, hanging pictures, etc.

Ready for pictures!  Most buyers start their home search online.  A staged home will stand out among the competition.

Did I tell you  that we take care of the cost of this?  It is part of our listing package.

And one more thing:  Some sellers start this process 6 months before they sell!  They want to take their time and not feel rushed.  Others call a week before they want to list. Do what works for you.  To get started call or email for our free brochure …

“50 Essential Tips to Prepare Your Home for a Speedy, Top-Price Sale”