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South Seattle Market Review: Highs, Lows & In-Betweens (Part 2)
Windermere Real Estate recently released its Seattle real estate statistics for the fourth quarter of 2016, and we’ve got your South Seattle numbers below.
Last week, we focused on the South Seattle neighborhoods of Brighton, Columbia City, Genesee, Hillman City, Judkins, Lakewood, Leschi, Mt Baker, Rainier Beach, Rainier Valley, Seward Park and Skyway.
This week, we’re turning our spotlight on the South Seattle neighborhoods of Beacon Hill, Columbia City, Dunlap, Georgetown, Jefferson Park, North Beacon Hill, Sodo, where we’re seeing a smaller range of $425,000 to $1,395,000–on the same block in Beacon Hill.
The high price winner is $620,000 on Beacon Hill.
High Price Listing
- Beacon Hill
- 1339 S Shelton St
- $620,000
- 4 Bed / 1.5 Bath
- 2,250 SQFT
- MLS #: 1036033
- Lot Size: 6,512 sqft
- Year Built: 1957
- Style: 1 Story with Basement
- Views: Mountain, Territorial
- School District: Seattle
The medium price winner is also on Beacon Hill at $533,000.
Medium Price Listing
- Seattle
- 2363 24th Ave S
- $533,000
- 2 Bed / 2.5 Bath
- 1,480 SQFT
- MLS #: 1031162
- Lot Size: 1,730 SQFT
- Year Built: 2007
- Style: Tri Level
- Views: Mountain, Territorial
- School District: Seattle
Beacon Hill for the win! The low price winner is $425,000.
Low Price Listing
- Beacon Hill
- 1312 S Shelton St
- $425,000
- 4 Bed / 2 Bath
- 1,940 SQFT
- MLS #: 1016407
- Lot Size: 3,797 sqft
- Year Built: 1920
- Style: 1 Story with Basement
- Views: None
- School District: Seattle
All figures are based on single family home sales, which include townhomes and exclude condos.
South Seattle Market Review: Highs, Lows & In-Betweens (Part 1)
Windermere Real Estate recently released its Seattle real estate statistics for the fourth quarter of 2016, and I’ve got your South Seattle numbers below.
In the meantime, Seattle as a whole closed out the year with a record low number of homes for sale, and record-level prices. With the healthy regional economy, demand remains very strong. Experts predict that the real estate market in 2017 will continue to be highly favorable for sellers.
- According to the Case-Shiller home price index, home prices are rising faster in the Seattle metro area than in any other major region in the country. One issue is space. The city’s existing density means that virtually no new single-family homes are being built in Seattle.
- As new residents flood in, more people are competing for the already tight inventory. As a result, home prices are up. At the end of the quarter, the median cost of a single-family home rose 6 percent from a year ago to $635,000.
- The good news: those who decide to take the plunge and list their home can count on getting a premium price for their property. In December, 39% of houses that sold went above the asking price and 57% had less than 15 days on the market.
Today, we’re focusing on the South Seattle neighborhoods of Brighton, Columbia City, Genesee, Hillman City, Judkins, Lakewood, Leschi, Mt Baker, Rainier Beach, Rainier Valley, Seward Park and Skyway, where we’re seeing a range of $385,000 in Upper Rainier Beach to $1,395,000 in Mount Baker — quite a difference.
Next week, look for a similar review of Beacon Hill, Columbia City, Dunlap, Georgetown, Jefferson Park, North Beacon Hill and SODO.
The high price winner is in Mount Baker at $1,395,000.
High Price Listing
- Mt Baker
- 3210 S Lander St
- $1,395,000
- 3 Bed / 2.5 Bath
- 3,380 SQFT
- MLS #: 1036134
- Lot Size: 6,000 sqft
- Year Built: 1929
- Style: 1 1/2 Stories with Basement
- Views: None
- School District: Seattle
The medium price winner is in Columbia City at $560,000.
Medium Price Listing
- Columbia City
- 5402 Renton Ave S
- $560,000
- 3 Bed / 1.75 Bath
- 1,292 SQFT
- MLS #: 1031182
- Lot Size: 5,871 sqft
- Year Built: 1962
- Style: 1 Story
- Views: Territorial
- School District: Seattle
The low price winner is in Upper Rainier Beach at $385,000.
Low Price Listing
- Upper Rainier Beach
- 9849 61st Ave S
- $385,000
- 2 Bed / 1 BatH
- 1,520 SQFT
- Lot Size: 5,650 sqft
- Year Built: 1943
- Style: 1 Story with Basement
- Views: Mountain, Territorial
- School District: Seattle
SELLER SUCCESS STORY: Marcia, Janice & the Messy Renter
“Hire her!” say Marcia & Janice.
Two retired but very busy ladies recently needed my help to sell one their rental homes.
Janice had owned the house since the 1970s and lived in it for many years, so she was somewhat attached, but also realized that it was time to let go and be responsible for less property.
Since they hadn’t lived in the house for many years, I advised Janice and her partner Marcia to speak with their accountant to assess how much they would have to pay in Capital Gains.
Many folks don’t realize that if you haven’t lived in a property for two of the past five years, then you must pay this extra tax, which is based on the difference between the price you paid for the house and the sales price, minus the costs you put in to sell the house. Even if the house is empty and has never been rented, you still must pay this extra tax! The tax is based on your income bracket and can be as high as 25% but is usually more like 15%.
With that information, Janice and Marcia still decided to move forward. They’d hoped to get their house ready to sell before the fall set in, however their tenant wasn’t able to secure a new place until the end of September. By then they were both traveling with family commitments and needed me to make most of the decisions.
We were getting into October so I had to act fast to avoid the upcoming holidays when the market typically slows down.
Unfortunately, their tenant had left the place in a real mess! It looked like she had never cleaned up after her four cats the whole time she lived there, and the basement floor was disgusting!
Luckily, I have a great team who acted fast before the bad weather hit. The cleaning alone took 24 hours!
After an almost total interior paint job, new linoleum on the basement stairs, a lot of work in the bathroom, new heating vents (gross), a huge cleanup of the front yard, windows washed, roof cleaned and the whole house professionally staged, we were ready to hit the market in just two weeks.
“Serena is top notch in every way,” said Marcia. “Not only does she know the housing market, but she also gave us right-on recommendations for how to present our house in the best light for marketing. She also has a superior cadre of professional workers who aided us in the “fixing up” process. We would secure her services again in a heartbeat! Hire her!”
I am so grateful to my team of hard working folks and to Janice and Marcia for trusting me to make the decisions that I felt necessary to get them the most money for their house, which resulted in great exposure, six offers and a sales price that far exceeded Janice and Marcia’s expectations — almost 15% above the list price!
New Changes to Seattle’s Rental Housing Laws
More than half of Seattle residents live in rental housing. Below are some recent changes to local rental housing laws that landlords, property managers and renters should be aware of.
I. Security Deposit, Pet Deposit, and Move-in Fee Limits – The City has new limits on deposits and fees that can be charged at the beginning of a new rental agreement. The limits include:
- Security deposit plus move-in fees cannot exceed the amount of the first full month’s rent
- Pet deposits are limited to 25% of the amount of first full month’s rent
- Non-refundable move-in fees are limited to only tenant screening reports, criminal background checks, credit reports, and cleaning fees
- Total non-refundable move-in fees are limited to 10% of the first full month’s rent
II. Payment Plans Required – Landlords must allow an installment plan to pay a security deposit, a pet deposit, move-in fees, and last month’s rent. The payment plan must be structured as follows, unless otherwise agreed to by the landlord and tenant
- For rental agreements of 6 months or longer — 6 consecutive and equal payments
- For agreements between 30 days and 6 months — 4 consecutive and equal payments
- For month-to-month agreements — 2 equal installments; except for pet deposits, which can be paid in 3 equal monthly installments
III. Security Deposit Returns – The requirements for security deposit returns have not changed. However, the Seattle Department of Construction and Inspections (SDCI) may now investigate and take action if a landlord improperly withholds a deposit return or in other cases where the City’s rental agreement regulations are not followed. Important points in the existing security deposit return requirements are:
- The tenant and landlord must have signed a move-in condition checklist
- Security deposits must be returned within 21 days of the tenant leaving the property
- The reasons for withholding any portion of a deposit return must be itemized in writing and provided to the former tenant within 21 days of tenant vacating the property
The new deposit and move-in fee limits and payment plan requirements do not apply to tenants in an owner-occupied single-family dwelling, including attached accessory dwelling units.
Find more information here. A new version of Information for Tenants must be provided to each tenant household with each new rental agreement.
The changes took effect January 15, 2017. Please call SDCI with questions regarding any of the City’s rental housing ordinances: (206) 615-0808.
DEAR SERENA: Should I Sell My Property Privately to a Developer?
Welcome to my new Real Estate advice column, “Dear Serena,” where I strive to answer your burning Real Estate questions. Email yours to me at serena@windermere.com and I’ll try to answer them in future columns.
Dear Serena,
I am writing to ask your advice about my property. I have lived in my house for many years and have taken care of it as best as I could, but it is not in the greatest of shape. It is a small house on a big lot in southeast Seattle. The neighborhood has changed quite a bit and a lot of small houses like mine have been knocked down and several townhouses have been built in their place.
I am nearing the age of retirement and have considered selling and moving to a quieter neighborhood. I receive several letters a week from real estate agents, and individuals asking to buy my house, one letter looked like it had been written by a child! All the letters suggest I will save a lot of money if I sell it privately to them, as I will avoid paying the realtor fees, plus they will give me a good amount of time to move, which is appealing to me. Can you tell me your thoughts re this?
Signed,
Should I Stay or Should I Go?
Dear Should I Stay or Should I Go,
I’m so glad you asked! This is big pet peeve of mine, as I think sellers are often being taken advantage of by this tactic of agents and private developers sending letters, offering all sorts on incentives. The reason they want to buy it from you privately is because they want a good deal and do not want to compete with other builders and developers.
Land is extremely valuable in Seattle and the only way for you to know what your property is worth is to put it on the market. It is a seller’s market and a good agent would be able to negotiate a longer time frame for you to stay in your home or anything else you might need, as part of the sale and more than likely fetch you a much, higher price, so the fees would be a wash.
There are also people who are hired to door knock too, targeting older run down homes and assuring the elderly owners that they will get the best price if they buy through them. I heard a horror story recently of an elderly woman in West Seattle, who did just that, but had made no alternative plans as it seemed she had some dementia and she eventually got evicted by the new owner!
Of course, I am not saying that sometimes it may work out for the best to sell it privately, however I strongly believe that a seller needs their own representative, to protect them and advocate for them.
Best,
Serena
Windermere Mount Baker Presents 2017 Housing Market Predictions
Matthew Gardner, Chief Economist for Windermere Real Estate
Last year was was another stellar year for the Seattle housing market, in which a surplus of buyers and a deficit of sellers drove home prices higher across the board.
Will we see more of the same this year, or is a cool down in the cards? How will the economy hold up under a new administration? Are we in another housing bubble?
Next month, join Chief Economist for Windermere Real Estate, Matthew Gardner with predictions on the Seattle/King County housing market for the coming year.
“I have always found Matthew Gardner’s talks to be very informative to me personally and very helpful to my buyers, sellers and investors.” said longtime Windermere Mount Baker realtor Serena Heslop. “Education is key to me and having an overall perspective of the local economy and the housing market, really helps clients to feel confident in making the right decisions, when buying or selling a home.”
As Chief Economist for Windermere Real Estate, Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has more than 28 years of professional experience analyzing housing both in the U.S. and U.K.
In addition to his day-to-day responsibilities, Matthew also chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; sits on the Urban Land Institutes Technical Assistance Panel; and is an Advisory Board Member for the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate forecasting.
He recently said on his blog that he expects the big story for the coming year to be first-time home buyers.
“Since they don’t need to sell before purchasing, their reemergence into the market ensures that sales will continue to increase, even while inventory is limited,” he says. “Thirty-one percent of buyers currently in the real estate market are first-time buyers, but it would be more ideal if that figure was closer to 40 percent.”
That said, one of the first acts of the Trump Administration was to reverse a mortgage-fee cut intended to help new, low-income borrowers.
“According to our estimates, roughly 750,000 to 850,000 homebuyers will face higher costs and 30,000 to 40,000 new homebuyers will be left on the sidelines in 2017 without the cut,” said the National Association of REALTORS.
The event, “2017 Housing Market Predictions” is planned for Thur., Feb. 9, from 6:30 to 8:30 pm at Mount Baker Community Club (2811 Mount Rainier Dr S, Seattle, WA 98144).
Please contact me directly (serena@windermere.com/206-999-8159) if you’d like to attend. Thank you!
This article was reposted with permission from GO: South Seattle.
Food is Love: Help Feed Hungry South Seattle Neighbors
Did you know that one in five kids in Washington state lives in a household struggling to put food on the table? And that one in five Washingtonians relies on their local food bank?
Who is hungry in Washington? A surprisingly high number of our neighbors, friends and families. Children and the elderly are the most affected, making up more than 50 percent of the people utilizing the emergency food system. They are not just the homeless; they are the working poor, households headed by women, families suffering crises such as a layoff, medical emergency or domestic abuse.
And while demand continues to rise, you can help.
From now through February, my office — Windermere Mount Baker Real Estate — is hosting a Winter Food Drive benefiting Rainier Valley Food Bank (RVFB).
“It can be easy to forget the struggle and hardship of others,” said Joe Easterday, Designated Broker/Owner with Windermere Real Estate Mount Baker. “The food drive is a way that we can show support for the great work Rainier Valley Food Bank does in assisting more than 20,000 of our local residents every month.”
The Winter Food Drive has been organized into three phases.
- “Comfort Foods” — It’s been especially cold this winter, so let’s fill the lobby with hearty canned soups, beef stews & dry or canned beans. January 17-31
- “Produce Power!” — Everyone deserves to eat healthy. Let’s fill the lobby with a tower of canned fruits & vegetables. February 1-14
- “Oh, Baby!”– Let’s help feed our littlest neighbors by filling an entire crib with baby food, formula and cereal. February 15-28
Of course, donations of all kinds are welcome (see list below). Please bring your contributions to the Windermere office (4919 S Genesee St., Seattle, WA 98118/206-725-7255) from now through February 28. Thank you!
Types of Food to Collect
All foods collected should be non-perishable. RVFB is most in need of high-protein, nutritious foods including:
- Canned chicken, tuna and salmon
- Beef stew, meat soups
- Hearty soups
- Canned vegetables and fruits
- Dry or canned beans (kidney, pinto, green, yellow, refried or black beans)
- Peanut butter
- Pasta
- Rice
- Pancake or baking mixes
- Cereal and oatmeal
- Granola bars or energy bars
- Ensure or other nutritional supplement drinks
- Baby food and formula
Winter Art Show at Windermere Mount Baker
Later this month, my office, Windermere Mount Baker Real Estate will kick-off our Winter Art Show with an Artist’s Reception on Thur., Jan. 26, from 5 to 8 pm. Everyone is invited.
Featured South Seattle artist Isobel Davis works in cyanotype process and encaustic monotype collage.
Isobel’s interactive installations feature tactile objects made from encaustic wax and fiber that include text and photo imagery. Her installation projects demonstrate her strong interest in social ecology, connecting viewer’s lives to sustainability issues through engagement.
“I see edges, the way light and shadow wrap itself around objects delineating shape and form,” says Isobel. “I experience edges, because of the transition between one life experience and another, piercing through the protective shell and stepping into the unknown to find vibrancy and freedom. We all participate in cultural edges, where diverse ethnic identities overlap and create new rhythms. In ecology, this transition zone is called the ecotone: a place where two ecosystems intersect, a transition occurs and new thriving biodiversity results.”
Isobel was nurtured in childhood by her experiences kicking around in the mountains, island farms and briny shores of the Pacific Northwest. She spent many hours in her parents ornamental garden, pondering big questions, creating illustrated stories, writing poetry, and making up games. In her 20’s, a stint working on a naturalist ship and research vessel on the high seas introduced her to birds, numerous creatures, endless shorelines, glaciers and icebergs.
She was engaged by the ever-changing play of light on the water and experimented with infra-red photography as a tool to see her environment differently. This natural world has inspired her work and provides a framework for her discussion of things spiritual, philosophical and sociopolitical. Nature is important to her as metaphor, essential life-support, familiar comfort and creative power.
“I choose mediums that force me to partner with nature’s unpredictability, which allows me to create my work in a space that holds the energy and uncontrolled aliveness of the ecotone workspace,” she says. “My work is a conscious response to compelling issues that strike my heart, whether they are environmental, humanistic, or spiritual. In both my bodies of work – poetic framed works and socially engaged interactive installations – I like to create art that captures the energy of a thriving ecology while honoring what’s precious and vulnerable in the world.”
The show runs January through March at Windermere Mount Baker Real Estate (4919 S Genesee St, Seattle, Washington 98118). Learn more about Isobel at her website.
Photos/Featured South Seattle artist Isobel Davis works in cyanotype process and encaustic monotype collage.
8 Predictions for Seattle’s 2017 Housing Market
By Matthew Gardner, Chief Economist, Windermere Real Estate
2016 was another stellar year for the Seattle housing market, in which a surplus of buyers and a deficit of sellers drove home prices higher across the board. So, can we expect to see more of the same in 2017? Here are some of my thoughts on the Seattle/King County housing market for the coming year:
- Our market has benefited greatly from very healthy job growth, driven in no small part by our thriving technology companies. Economic vitality is the backbone of housing demand, so we should continue to see healthy employment growth in 2017; however, not quite as robust as 2016. Migration to Seattle from other states will also continue in the coming year, putting further pressure on our housing market.
- Are we building too many apartments? The answer to this question is “maybe”. I believe we are fast approaching oversupply of apartments; however, this glut will only be seen in select sub-markets, such as South Lake Union and Capitol Hill. Developers have been adding apartments downtown at frantic rates with many projects garnering very impressive rents. In the coming year, look for rental rate growth to slow and for concessions to come back into play as we add several thousand more apartments to downtown Seattle.
- The Millennials are here! And they are ready to buy. 2016 saw a significant increase in the number of Millennial buyers in Seattle, and I expect to see even more in 2017. The only problem will be whether Millennials will be able to find – or afford – anything to buy.
- Home prices will continue to rise. But price growth will taper somewhat. The market has been on a tear since bottoming out in 2012, with median home prices up by a remarkable 79% from the 2012 low, and 14% above the pre-recession peak seen in 2007. Given the fact that interest rates are now likely to rise at a faster rate than previously forecasted, I believe price appreciation will slow somewhat, but values will still increase at rates that are well above the national average. Look for home prices to increase by an average of 7.5 – 8.5% in 2017.
- More homes for sale? I am optimistic that inventory levels around Seattle will increase, but it still won’t be enough to meet continued high demand.
- This is my biggest concern for the Seattle housing market. Home prices – specifically in areas with ready access to our job centers – are pulling way ahead of incomes, placing them out of reach for much of our population. This forces many buyers to move farther away from our job centers, putting additional stress on our limited infrastructure. We need to have an open discussion regarding zoning, as well as whether our state’s Growth Management Act is helping or hindering matters.
- New Home Starts/Sales. As much as I would love to say that we can expect a substantial increase in new homes in 2017, I am afraid this is not the case. Historically high land prices, combined with ever increasing construction and labor costs, slow housing development, as the price of the end product is increasingly expensive. This applies to single family development as well as condominiums. We should see a couple of towers break ground in 2017, but that’s about all. Vertical construction is still prohibitively expensive and developers are concerned that there will not be sufficient demand for such an expensive end product.
- Are we setting ourselves up for another housing crash? The simple answer to this question is no. While home price appreciation remains above the long-term average, and will continue to be so in 2017, credit requirements, down payments, and a growing economy will all act as protectors from a housing crash in Seattle.
FROM SERENA: Happy Holidays from Cuba!
Dear friends,
I hope you enjoyed a relaxing holiday. I feel so fortunate to have spent half the month in Cuba, where I met some of the kindest and most creative people. There’s so much art and music in Havana – it was incredible to experience first-hand.
After last month’s election and the uncertainty that lies ahead, it was inspiring to spend time with people who are so warm and welcoming. Of course, the hot weather didn’t hurt either!
That said, there was very little on store shelves and food is still rationed – even at Christmas, yet a spirit of love and generosity prevailed and allowed us to focus on the true meaning of the holiday.
We brought several suitcases filled with goods that are difficult if not impossible to get there, such as aspirin, soap, Tampax, lotion, pencils and even a projector for the local theater group.
All in all, it was an eye-opening and inspiring trip that left me feeling even more grateful for everything I have, including your support.
Thank you & happy new year!
Serena
Photo/Serena Heslop
