Monthly Housing Price Growth Continues To Slow, Still Rising Annually

*Synced from the Seattle and Real Estate Blog

Though housing prices in the Seattle area continue to rise on a yearly basis (up 8.6 percent over this time last year), the market saw a continued slowdown in monthly price gains for single-family homes in June, similar to the trend in May. Prices in King, Pierce, and Snohomish counties rose by just 1.1 percent in June, a slightly lower rate than the 1.4 percent price growth in May, according to the S&P/Case-Shiller Home Price Index released Tuesday. The Seattle market is still outperforming the 20-city Index by a small margin, with those prices having grown by 1 percent in June, and 8 percent over the year.

Case-Shiller is calling the numbers part of a “widespread slowdown” in home-price growth nationwide that began last fall. They say that despite the slowdown in growth, other positive factors such as builders’ sentiment and existing home sales point to a normalizing housing market. If you are interested in buying or selling a home in the Seattle area, contact your local real estate agent today

Supply of Single-Family Homes Declines In Many Neighborhoods

*Synced from Seattle and Real Estate Blog
The single-family house is still at the top of many home buyers’ lists when searching for a property to buy, but the influx of condominiums and townhouses in many of Seattle’s most popular neighborhoods is further decreasing the supply of stand-alone homes in a market where inventory is already tight.
According to a Seattle Times analysis of census data from 2000-2012, the number of single-family homes has decreased most significantly in North Seattle neighborhoods such as Wallingford, Green Lake, Maple Leaf, and Northgate, as well as in the area surrounding Dexter Avenue North on the east side of Queen Anne above South Lake Union. However, South End neighborhoods such as Jefferson Park on Beacon Hill, Mount Baker, and South Park all saw increases in single-family homes in the same time span.
In a market that has seen prices soaring and bidding wars erupting over the small supply of single-family homes that are available, this is not encouraging news for buyers looking to live in neighborhoods where many multifamily developments are in the works. The city has added 5,000 net single-family homes since 2000, but with 80,000 new residents having moved to Seattle since then, that barely makes a dent in terms of demand. To see the Times’ detailed map of single-family home inventory, click here.
If you would like more information about buying a home in the Seattle area, contact your local real estate agent today.

Median Home Price In Seattle Surpasses 2007 Peak

It has finally happened – Seattle’s median home price has officially topped its 2007 peak, the Northwest Multiple Listing Service is reporting. The median price now stands at $543,500, significantly more than the $501,000 peak of 2007, and nearly $80,000 higher than the median in July 2013 of $465,000.
Seattle’s market appears to be recovering by leaps and bounds compared to the national market, where the median price for homes in the top 20 markets is still 18 percent below the the peak set in 2006. J. Lennox Scott, the CEO of John L. Scott Real Estate told The Seattle Times that the major factors boosting our housing market are jobs – Seattle’s unemployment rate is down to 5.8 percent – and interest rates, which are historically low.
Another factor likely playing a part is that inventory remains very limited, and prices are responding in classic supply-and-demand fashion. Bidding wars are erupting for the few homes that are available, pushing prices upward. According to The Seattle Times article, some neighborhoods in Seattle such as Ballard and Green Lake only have a one-month supply of homes listed for sale, in a market where a 4-6-month supply is considered “balanced.” According to data from Redfin, 39 percent of homes in the Seattle Metro area sold for more than the listing price in the second quarter of 2014.
If you are interested in buying or selling a home in the Seattle area, contact your local real estate agent today.

Is A Condo The Right Home For You?

*Synced From Seattle and Real Estate Blog
For first time home buyers, saving up for a down payment and getting pre-qualified for a loan can be terrifying, and often stressful. There is a great option for the first time buyer who wants to build equity without the weight of a heavy mortgage, and that is condo ownership. Condo homeownership comes with many of the same perks as single family home ownership, such as benefiting from the tax incentive, and building equity. Condo living is not for everyone, but here are some things you should consider when deciding if buying a condo is the right option for you. There will be noise restrictions in nearly every condo building – first time home buyers are within reach of their party days, and quiet hours will generally be enforced from the hours of 10pm-8am. This should excite buyers who enjoy their quiet time, or are used to living privately.
There are also often pet restrictions, so if you have a large dog, be prepared that your pooch might not be welcome to live in a condo you’ve fallen in love with. Check the building policy prior to viewing a unit so you don’t get your hopes up on a space you won’t be able to bring your whole family. Many condo owners see an opportunity to earn extra income by renting out their condo unit. While this is certainly a great option for many, there are restrictions on the number of rentals that are allowed in many condo buildings, and they may already be at capacity when you close on your condo. Having a higher percentage of rentals than owners in the building can actually make it difficult for new buyers to secure a loan, and some owners believe owners living in their units have a stronger interest in keeping their property nice in comparison to renters who do not have as much invested in building. Check with the building owners before looking into renting out your unit to determine if you’re legally allowed to rent it out. For more information on buying a condo in the Seattle area, contact your local real estate agent today.