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February NWMLS Real Estate Market Snapshot
February statistics are in. Home prices, compared to February 2019, are up 9%. There’s less than a six week supply of available homes which is down 33% over the same time last year. Mortgage interest rates are historically low. Now is the time to maximize your home buying power. Open house traffic has been amazing. If you’re ready to sell, buyers are in the market and looking for homes. Amazon’s projected growth in downtown Bellevue over the next several years already has employees searching for homes in an effort to stay ahead of the competition.
Questions about the Eastside condo market? I’ve specialized in condos for most of my career. I have unique market knowledge, insight and experience to help you understand the market and help you meet your personal and financial goals.
Walkability to Amenities May Command a Higher Home Price
flickr/Peter Blanchard
The National Association of Realtors® recently published an article with data from a Redfin study addressing the impact walkability to neighborhood amenities has on home values. Homes within walking distance of workplaces, shopping, parks, schools, etc. rank high on buyer wish lists but will command higher prices.
Homes with in-city locations are often condominiums (stack flats) or attached townhomes. Buyers willing to consider moving to close-in but less walkable, more car dependent neighborhoods, may find more affordable options as well as more single family house choices.
West coast urban markets have seen the premium walkability has on home values. In 2019 the premium for walkability in the Seattle marketplace increased the average price by 15.7% or $86,331. In San Diego urban/walkable homes averaged 10.5% more or $60,225 and in Los Angeles the premium for walkability was 5.8% or $34,583.
Selling Your Home? Prepare for the Photo Shoot
This is the time of year when more homes are listed for sale. It’s rare to see a home on the market that doesn’t have professional photos. Quality photography is critical for on line marketing and could be the most important piece of the marketing plan your broker will (or should) commit to when listing your home for sale.
Not even professional photographs can hide flaws, clutter, dirt, etc. and sometimes those are more evident through the camera lens. There are easy steps to take to be sure your home is camera ready which will help the photo shoot go more quickly so you can return home sooner.
- Replace burned out bulbs (table lamps and ceiling fixtures)
- Clean and de-clutter all surfaces throughout the home. Remove personal items and photos from view (recommended for security reasons as well)
- Open all drapes and blinds
- Remove pets, bedding, bowls, toys, etc.
- Same goes for children – head to the park during the photo shoot
- Remove refrigerator magnets and artwork, paper towel holders, towels hanging on cabinet handles, sponge or soap holders/dispensers
- Make the beds and take a quick look from all sides to be sure covers are even all the way around. Fluff pillows and remove personal items from bedside tables.
- Clear bathroom counters, tub and shower ledges and remove toothbrushes, hair styling items, soap and shampoo bottles, etc.
- Decks, patios and courtyards – sweep all surfaces (power wash if needed), cover the bar-b-q, plant fresh flowers in the pots, remove broken pots or furniture
- Turn all lights before leaving
The photographer and your broker will appreciate your effort, the photo shoot will go more quickly and you will be able to return home sooner. It is, no doubt, inconvenient and stressful to have your home listed for sale. Your efforts to have it photo ready and prepared for open houses and showing appointments will go a long way toward having buyers take away a favorable impression and sell more quickly.
Senior Property Tax Exemption Program
photo courtesy CreditDebitPro.com
It’s that time of year when we start collecting receipts, mortgage interest and property tax statements, all in readiness to work on taxes or at least deliver your box of receipts and statements to your accountant.
Did you know . . . anyone 61 years or older who owns their own home may be eligible for Washington State’s senior property tax exemption. The maximum annual income for this program has been significantly increased to $58,423 which will allow many more people to be eligible for property tax relief.
For more information, to find out if you or a family member qualifies fore a reduction in property taxes, or to apply, visit the King County website at https://www.kingcounty.gov/depts/assessor/tax relief/seniorexemptions .aspx or call 206-296-3920. Anyone who is eligible should take advantage of this tax exemption law.
Windermere Foundation
This year I celebrate 30 years as a Realtor® and a decade with Windermere Real Estate. Locally owned, Windermere has deep roots in the community and a commitment to support the neighborhoods where we live and work. I’m proud to support the Windermere Foundation and its efforts to support organizations assisting low income and homeless families and individuals in our local communities.
Excavation Started at Avenue Bellevue
With demolition complete, excavation has begun at the Avenue Bellevue site located at the northwest corner of Bellevue Way NE and NE 8th Street. (This is the former Cost Plus site, or if you’ve been around Bellevue for a while, the former Albertsons grocery store.) The mixed use project will include 85,000 square feet of retail, the Pacific Northwest’s first Intercontinental Hotel and 322 luxury condominiums positioned in two towers. Completion is projected for mid-to-late 2022.
Affordable Housing in Bellevue?
You might be surprised to find there are many affordable housing options close to downtown Bellevue. Apartments in the city are expensive and it’s likely the rent will increase each time the lease renews. The average monthly rent for a 2 bedroom apartment in downtown Bellevue is $3,250 or more per month (plus utilities). That’s a lot of money for housing with no return on investment.
Last year more than 100 one and two bedroom condos in or near downtown Bellevue that sold with median sales prices* under $475,000 (98004 & 98005 zip codes). Some of these homes were in communities walk-able to downtown, others were less than a 10 minute drive to Bellevue’s workplaces, shopping, dining, arts and entertainment events, parks and sought after Bellevue schools.
With a budget of $550,000, a lot of money but considered affordable in the Eastside real estate marketplace, if you were buying a condo what could you expect to pay for your monthly housing expense?
- A 2 bedroom condo priced at $550,000 with a 5% down payment ($27,500) would have a monthly mortgage expense (PITI) of about $2,850/month
- There are great loan programs available with 3%, 5% and 10% down, but if the down payment is less than 20% the lender will require PMI which will could add $300-$400/month to your mortgage payment. (Consult your lender for more information.)
- Budget $395-$495/month for homeowner’s dues, but that will include the water/sewer utility, garbage/recycle service, master insurance policy and sometimes even basic cable.
With a 5% down payment on a $550,000 purchase the monthly PITI + PMI would be approximately $3,240 – about the same as renting a 2 bedroom apartment downtown, except you would get the benefit of a tax deduction for some of the closing costs and the deduction for mortgage interest and real estate taxes every year.
Before you renew your lease, talk with your lender and Realtor®. This might be the right time to purchase a home and avoid the next rent increase. You would own your home, shelter income and start building equity and wealth. You may even reduce your commute.
* median sales price – half the homes sold for more, half sold for less
Open House Etiquette
With real estate market activity picking up there will be more open houses to visit in the coming weeks. Are there rules of etiquette when visiting an open house? Common sense and courtesy should prevail, but it can be surprising what visitors think is acceptable when walking through someone else’s home.
So what is OK, and what isn’t when visiting an open house?
- If requested, remove your shoes or slip on shoe covers.
- It’s OK to open closet and kitchen or bath cabinets or take a peek at attic storage, but it’s not OK to open dresser or desk drawers. That’s private personal space and what’s inside has nothing to do with the features of the home.
- Do not use the bathroom – take care of that before you leave your house.
- If lights are on, leave them on.
- If you unlock/open a door, close and lock it.
- Never bring food or drink into a home.
- If you are visiting with your children keep an eye on them, or better yet, hold their hand while in the home. DO NOT let them wander freely through the home, run through the house, play with toys that are not theirs or turn on TVs or video games.
There’s no need to rush through an open house, but lounging on the family room sofa for 45 minutes to chat isn’t acceptable – move that conversation out to your car or your broker’s car. Be courteous when the end of an open house is approaching. The owners have vacated their home for several hours and they’re ready to come home. If you need more time have your broker schedule an appointment to see the home again.
The Golden Rule applies – try to put yourself in the shoes of the homeowner (you may be selling your own home soon). Think about how you’d feel if strangers went through your dresser drawers, pulled toys out or misplaced a TV remote.
Bellevue’s Condo Market is Off to a Quick Start This Year
Today’s Seattle Times (link to the article below) provided a review of the region’s 2019 real estate market comparing sales activity and property values to the prior year. While prices in the county were flat throughout the year, the last quarter of 2019 bucked that trend with inventory selling quickly and multiple offers more common.
There are currently only 26 condominiums listed for sale in all of Bellevue. Since January 1st, 11 new condos were listed for sale – all have sales pending and many received multiple offers. What’s driving the spring market?
Low mortgage interest rates. Fannie Mae conforming loan limits increased to $741,750 in King County. (Jumbo loans will have slightly higher interest rates.) Conventional and FHA loan programs offer low down payment programs (3%, 5%, 10%) for qualified buyers, making it easier to purchase a first or move-up home.
Amazon is scheduled to start moving employees into the former Expedia office tower in downtown Bellevue this summer. Amazon has also signed leases for several office towers currently under construction that will be completed in the next 9-24 months. Employees who know their jobs will move from Seattle to Bellevue are already searching for homes in Bellevue.
Buyers want shorter commutes, and they’re willing to make compromises for less car time and more personal/family time. There are dozens of condo communities within a 15 minute or less commute to Bellevue’s central business district as well as Kirkland and Redmond workplaces. Those communities are in high demand.
The “spring” market is off to an early and active start. The next few weeks should set the pace and reveal what buyers and sellers can expect in the coming months.
Snow Days
I grew up on the East coast, so was used to several snow storms every winter. School was rarely cancelled or delayed and you hardly ever got a day off work due to snow. The north and mid-Atlantic states on the East coast are prepared for snow every winter. There are more snow plows there than there are Starbucks and Teslas here in Bellevue. Still, when we occasionally get snow here it reminds me of when I was a kid and we couldn’t wait until the snow was deep enough to head to the perfect sledding streets.
The Puget Sound region doesn’t get as excited about snow – too many hills and not quite as many snow plows. I live downtown and whenever it snows I can’t wait to find my snow gear and head out for a walk. Everything seems quieter when its snowing and the skyline takes on a different look in the snow. The dogs love the snow too – they’re like little kids jumping, rolling and snow-plowing their noses through the snow. Its great fun to watch the kids build snow people and navigate their sleds down the hillside at Ashford Park. Living downtown, I have the luxury of being able to walk everywhere for anything I need – a definite advantage to urban living.
It’s Wednesday afternoon and here comes the snow again. Hope everyone makes it home safely and someone has a hot chocolate ready when you get home. Be patient . . . the days are getting longer and before you know it, it will be spring.
