Matthew Gardner’s Housing & Economic Update

This week Matthew Gardner, Windermere’s Chief Economist, shares his thoughts on the latest US home sales data.

Single family and multi family home values continue to rise while available inventory levels continue to decline. What’s the news for condos? Condo prices are trending higher nationwide, up 10% year-over-year. It’s difficult to know how long this trend can be sustained as we close 2020. What could impact values next year? We may hit an affordability issue, which could push some buyers out of the market, and increasing inventory levels may create more selection for buyers but more competition for sellers.

I specialize in Bellevue’s condo and townhome communities. If you have questions about the market or what’s been happening in your community, call, text or email.

Happy Thanksgiving. While this year may be very different from years past, if you have an opportunity to safely share the holiday with family, enjoy the day. Be safe and stay healthy.

Posted on November 25, 2020 at 11:44 AM
Robin Myers | Category: condominium speciaist, condominiums, housing market, real estate, Robin Myers, Windermere Real Estate | Tagged , , , , , , , , , ,

How’s the Real Estate Market?

townhomesHow’s the Real Estate Market?

This is a question I hear a lot. Real estate was dormant this spring due to the coronavirus pandemic. Since mid-May the housing market has made a robust and positive rebound.

The number of buyers currently in the market far exceeds the available inventory of homes for sale. Why are so many buyers searching for homes? Record low interest rates give buyers more purchasing power. They’re taking advantage of those low interest rates to purchase a first home, move up to a larger home or, since we’ll be working from home/learning from home for many months to come, find a home that is a better fit for changing live/work/learn lifestyles. We are fortunate to live in an area with a strong economy. Local and national companies continue to grow and recruit employees, but that growth is bringing more home buyers to the area who want to purchase a home.

Lifestyle needs change . . . job and workspace needs change . . . housing needs change. Right now housing inventory is the biggest challenge for buyers looking to purchase a home. It’s a competitive market. The shortage of homes is definitely tipping the scale in favor of sellers, and that trend is expected to continue through the end of the year.

If there’s a change or a move in your future . . . how can I help?

 

 

 

 

Posted on July 29, 2020 at 9:00 AM
Robin Myers | Category: buying a home, condominium speciaist, property values, real estate, selling a home, Windermere Real Estate | Tagged , , , , , , , , , , , ,

How Much Are Home Values Expected to Increase in 2020?

This week Matthew Gardner, Windermere Real Estate’s Chief Economist, provides an update to his 2020 housing forecast. Interesting economic information relating to the local and nationwide real estate market.

 

Posted on July 28, 2020 at 2:29 PM
Robin Myers | Category: condominium speciaist, condominiums, economy, real estate, Windermere Real Estate | Tagged , , , , , , , , ,

Available Homes for Sale Significantly Below Last Year

The number of homes available for sale declined in April and May for obvious reasons – there were health and economic concerns brought on by the COVID-19 pandemic. Since late May local home sales have been ahead of the same period last year. Buyer demand remains high but what is different about this year compared to last year is there are fewer homes for sale. The graph below, provided by the Northwest Multiple Listing Service for the Seattle Times, shows that new pending sales are well above the same period last year but new listings of homes for sale are 20% below the same period last year.

With barely a one month supply of inventory in many areas, homes are selling quickly. Multiple offers are more common, and many homes are selling above the list price. Buyers are finding more competition for the weekly supply of newly listed houses and condominiums coming on the market.

What’s driving this demand? Interest rates are at record lows making mortgages more affordable. Potential buyers can afford a larger home. And, after three months of quarantine, owners and renters whose homes offered adequate space when working off-site are seeking larger homes with more indoor space, a dedicated home office area and more outdoor live/play space. Buyers are ready to buy, but sellers don’t appear to be as motivated right now.

Posted on June 24, 2020 at 2:45 PM
Robin Myers | Category: buying a home, condominium speciaist, condominiums, real estate, selling a home | Tagged , , , , , , , ,

Mortgage Forbearance – Where are We Today?

This week Matthew Gardner, Chief Economist with Windermere Real Estate, provides updated news about the mortgage forbearance program. The program has provided a safety net for homeowners but isn’t likely to have any long term negative economic impact.

 

Posted on June 15, 2020 at 11:50 AM
Robin Myers | Category: condominium speciaist, economy, housing market, real estate, Windermere | Tagged , , , , , , ,

Real Estate – What to Expect as We Return to “Normal”

flickr/Mark Moz

It’s not surprising to know home sales declined in mid-March as we sheltered at home. Moving into mid-April both buyer activity and pending sales began increasing, all while home prices remained strong. Nationally median home prices rose in every region of the US in April.

Locally buyer activity and home values also gained momentum. Short market times and multiple offers were more common by late April, especially in affordable price ranges. Even the high end market, hit harder by the health crisis and volatile stock market, began to recover with more expensive homes coming back into the market.

What can we expect for the local condo market this summer? Over the last 30 days 131 condos in the Eastside marketplace have sold. The average time on market was just 15 days with an average sales price of $620,420. The average sale price vs. list price was 100.08% with 78 of those 131 homes selling at or over the list price. Condos currently under contract with sales pending have been on the market an average of just 14 days. As reported by the Mortgage Bankers Association and National Association of Realtors®, buyer mortgage loan applications are up for the fourth consecutive week  –  a strong indication buyers are back in the market and ready to take advantage of record low interest rates.

Recovery of the local economy will have an impact on the real estate market as we move toward summer. Based on buyer activity and mortgage applications, as we find our “new normal” it’s clear buyers are ready to step into home ownership. Available housing inventory is still lagging behind compared to the same time last year. It remains to be seen if there will be enough housing inventory to meet buyer demand this summer. Low inventory will certainly keep pressure on prices resulting in fewer discounts in the marketplace.

 

 

 

Posted on May 17, 2020 at 9:00 AM
Robin Myers | Category: buying a home, condominium speciaist, condominiums, home property values, housing market, real estate, selling a home | Tagged , , , , , , ,

Concerned about a Housing Bubble?

These are interesting and complex times. As the COVID-19 pandemic continues to develop, brokers are following strict recommendations from public health officials and government agencies to ensure we are helping to reduce its impact. Ensuring that agents, office staff and clients are safe and healthy is the top priority.

Real estate is still happening  –  homes are still being listed for sale and buyers are still purchasing those homes, exhibiting a surprising high level of interest. Matthew Gardner provides good information and perspective on the current market and the health crisis vs. the housing crisis experienced in 2008.

Posted on April 28, 2020 at 10:59 AM
Robin Myers | Category: buying a home, condominium speciaist, economy, housing market, real estate, selling a home | Tagged , , , , , , , , , ,

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.

 

 

 

 

 

 

Posted on February 24, 2020 at 12:17 PM
Robin Myers | Category: condominium speciaist, condominiums, property values, real estate, urban living, walkability | Tagged , , , , , , , , , ,

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

Posted on January 28, 2020 at 2:45 PM
Robin Myers | Category: Bellevue, condo financing, condominiums, first time buyers, real estate | Tagged , , , , , , , , , , ,

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.

https://www.seattletimes.com/business/real-estate/while-regions-median-home-prices-rose-last-year-king-countys-took-a-dip-but-it-wont-last/?utm_source=email&utm_medium=email&utm_campaign=article_inset_1.1

 

 

Posted on January 17, 2020 at 11:45 AM
Robin Myers | Category: Bellevue, condominiums, Downtown Bellevue, real estate | Tagged , , , , , , , , , , ,