Facebook
X
Pinterest
Copy Link
Western Washington Real Estate Market Update
The following analysis of the Western Washington real estate market is provided by Windermere Real Estate Chief Economist, Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.
A MESSAGE FROM MATTHEW GARDNER
Needless to say, any discussion about the U.S. economy, state economy, or housing markets in the first quarter of this year is almost meaningless given events surrounding the COVID-19 virus.
Although you will see below data regarding housing activity in the region, many markets came close to halting transactions in March and many remain in some level of paralysis. As such, drawing conclusions from the data is almost a futile effort. I would say, though, it is my belief that the national and state housing markets were in good shape before the virus hit and will be in good shape again, once we come out on the other side. In a similar fashion, I anticipate the national and regional economies will start to thaw, and that many of the jobs lost will return with relative speed. Of course, all of these statements are wholly dependent on the country seeing a peak in new infections in the relatively near future. I stand by my contention that the housing market will survive the current economic crisis and it is likely we will resume a more normalized pattern of home sales in the second half of the year.
HOME SALES
- There were 13,378 home sales during the first quarter of 2020, a drop of only 0.2% from the same period in 2019, but 27% lower than in the final quarter of 2019.
- The number of homes for sale was 32% lower than a year ago and was also 32% lower than in the fourth quarter of 2019.
- When compared to the first quarter of 2019 sales rose in eight counties and dropped in seven. The greatest growth was in Cowlitz and Lewis counties. The largest declines were in Island and Snohomish counties.
- Pending sales — a good gauge of future closings — rose 0.7% compared to the final quarter of 2019. We can be assured that closed sales in the second quarter of this year will be lower due to COVID-19.
HOME PRICES
- Home-price growth in Western Washington rose compared to a year ago, with average prices up 8.7%. The average sale price in Western Washington was $524,392, and prices were 0.4% higher than in the fourth quarter of 2019.
- Home prices were higher in every county except San Juan, which is prone to significant swings in average sale prices because of its size.
- When compared to the same period a year ago, price growth was strongest in Clallam County, where home prices were up 21.7%. Double-digit price increases were also seen in Kitsap, Skagit, Mason, Thurston, and Snohomish counties.
- Affordability issues remain and, even given the current uncertain environment, I believe it is highly unlikely we will see any form of downward price pressures once the region reopens.
DAYS ON MARKET
- The average number of days it took to sell a home in the first quarter of this year dropped seven days compared to the first quarter of 2019.
- Pierce County was the tightest market in Western Washington, with homes taking an average of only 29 days to sell. All but two counties — San Juan and Clallam — saw the length of time it took to sell a home drop compared to the same period a year ago.
- Across the entire region, it took an average of 54 days to sell a home in the first quarter of the year — up 8 days compared to the fourth quarter of 2019.
- Market time remains below the long-term average across the region. This is likely to change, albeit temporarily, in the second quarter due to COVID-19.
CONCLUSIONS
This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.
Given the current economic environment, I have decided to freeze the needle in place until we see a restart in the economy. Once we have resumed “normal” economic activity, there will be a period of adjustment with regard to housing. Therefore, it is appropriate to wait until later in the year to offer my opinions about any quantitative impact the pandemic will have on the housing market.
ABOUT MATTHEW GARDNER
As Chief Economist for Windermere Real Estate, Matthew 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 over 30 years of professional experience both in the U.S. and U.K.
In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.
10 Fun & FREE Ways to Pass the Time During Quarantine
1. Follow the Key West Butterfly & Nature Conservatory on Facebook
Located in Key West, Florida, the beautiful 5,000 sq. ft. lush tropical garden holds turtles, various species of fish, 50-60 species of butterflies, and 23-25 different species of birds, including Flamingo Fridays featuring stars of the show Rhett and Scarlett.
2. Ride virtual rides from Disney parks
Disney World theme parks may be closed right now, but you can take a virtual trip to Walt Disney World from the comfort of your living room, from Magic Kingdom to EPCOT, Hollywood Studios then Animal Kingdom, experience 10 different Disney rides and attractions with no lines! Including Splash Mountain, Thunder Mountain, Slinky Dog Dash, Expedition Everest, Star Wars Rise of the Resistance, Mickey and Minnies Runaway Railway, Frozen Ever After and many more!
3. Watch Babies Docu-series on Netflix
Thirty-six world-renowned scientists are featured in the new docu-series “Babies,” a scientific investigation covering the epic journey that babies make from infancy to toddlerhood. The series examines how infants remember objects, learn new words, understand numbers and more.
4. Follow the National Cowboy & Western Heritage Museum on Facebook
Located in Oklahoma City, Oklahoma, the National Cowboy & Western Heritage Museum is America’s premier institution of Western history, art and culture. And just like a humble Western hero straight out of your favorite movie, they’ve given us Tim the security guy, a veritable low-key paragon of hope and humor in these dark days, who shares the museum’s internationally renowned collection of Western art and artifacts on Facebook.
5. Help Your Kids Keep Up Academically
With schools closing across the nation, parents and educators are in bit of a panic as they try to figure out how kids can learn and obtain their education from home. If this sounds like you, stop stressing. This is going to be super helpful!
6. Learn About Your Family History
Find your family. Discover yourself. Learn where you came from, and get to know who you are.
7. Listen to Bedtime Stories with Dolly Parton
Featuring Dolly Parton reading a series of Imagination Library books all carefully chosen for their appropriate content at this moment in time.
8. Explore the Hidden Worlds of Our National Parks
Follow park rangers across the country on a journey to places most people never see, including jaw-dropping tours of Kenai Fjords National Park in Alaska, Hawai’i Volcanoes National Park in Hawai’i, Carslbad Caverns National Park in New Mexico, Bryce Canyon National Park in Utah and Dry Tortugas National Park in Florida. All from the comfort of your own device.
9. Learn to Cook from the Chef of One of Italy’s Most Famous Hotels
Chef Silvia Grossi, Executive Chef at Il Salviatino in Fiesole, Italy, is teaching the world to cook classic Italian dishes from her home kitchen. Using ingredients she and most Italians have in their pantries, she created some appetizing dishes made with traditional ingredients.
10. Visit Japan — Virtually
The Japan National Tourism Organization created a 360-degree virtual tour of the country starring a famous cast that includes the Tokyo Tower, Kyoto’s Sagano Bamboo Forest, Nara Park, and the torii gates of Fushimi Inari Taisha, among others. Titled Japan: Where Tradition Meets the Future, the film can be viewed via the YouTube app on your smartphone, or for a full immersive experience, with VR goggles like Google Cardboard.
Your Guide to Spring Cleaning
Many of us have found ourselves spending much of our time indoors as of late, and as spring blooms in the sunlight, you might be noticing that it’s time to treat your home to a little TLC. When it comes to wellness, your health and the health of your home go hand in hand. Here are some tips to guide you through your spring cleaning this year.
First clean, then disinfect
General cleaning rids your home’s surfaces of contaminants, but disinfecting targets pathogens. A combination of the two before—as well as after—your spring cleaning will have your home in peak health. When disinfecting, target high-touch surfaces such as doorknobs, countertops, and faucets.
Devices like your computer, phone and tablets are worthy of disinfecting as well, since they are high-touch surfaces that we carry around constantly. Avoid cleaners heavy in toxins and chemicals, which spread throughout your home. Look for plant- and mineral-based ingredients and natural solvents.
- Work top-to-bottom–Working from ceiling to walls to counters to floors guides dust and debris downwards and prevents any re-cleaning of the same areas.
- Ceiling–Being the season when allergies kick up, a quality dusting can be even more important for your health. Curtains, blinds, carpets and ceiling fans all collect dust easily; being thorough in these areas will pay off in the long run. Don’t forget the corners where cobwebs collect.
- Walls & Windows–Consider giving your walls a cleanse with a damp towel, especially in the kitchen near your oven and coffee maker. Cleaning your windows helps bring in more natural light and is the key to getting the most out of your home’s view.
- Floors–All floors need a good cleanse, but different materials require different cleaning methods. With laminate and vinyl flooring, dry mopping will do the trick. Sealed wood floors can take mopping, but waxed floors can’t—they require sweeping or vacuuming instead.
Declutter
Decluttering can be a daunting task. But with more time at home, we have more time to conquer this task day by day. Divide the rooms up by how much time they will take to declutter. Rooms like the kitchen and playroom will likely take longer than the living room or bathroom.
- Separate the unnecessary or underused items into two categories: Donate and Storage. Gather your donated items—whether they’re going to thrift stores, local shelters, or charity—so they can be distributed out in one trip.
- When it comes to storage, consider which items are likely to be taken out more often, like tools or seasonal items. Put them away last so they are easy to access. Hopefully this exercise, done year after year, will cut your storage stockpile down to what is essential.
Go for multipurpose
- Minimalism is a space-saving movement that has picked up momentum in recent years. Even if you aren’t looking to downsize, incorporating multifunctionality into your home can bring an added dimension to your spring cleaning.
- Common multipurpose features include lofted beds with below storage, using a corner desk to create an office nook, and folding tables to transform a dining room to a dinner party with ease.
Matthew Gardner Weekly COVID-19 Housing & Economic Update: 4/6/2020
In the latest episode of “Mondays with Matthew”, Windermere Chief Economist Matthew Gardner dives into part one of his two-part series analyzing the mortgage market. Today’s focus is on the substantial impact COVID-19 has had on jumbo mortgages. Check back next week when he’ll discuss conventional mortgages and provide his latest interest rate forecast.
SELLER SUCCESS STORY: Maximizing the sale of a property by exploring all possible uses
Way back in 1998 one of my very first clients, a young Amie bought her first house in Georgetown for $122.000; those were the days! Over the years she refinanced and bought an investment property in Tacoma. She then moved out of her Georgetown place almost three years ago as she was able to buy a nicer house in southeast Seattle and she rented her Georgetown home which brought in a good income. For a self-employed woman who does not make a huge amount of money, she was very smart to accrue some investment properties.
We have been in touch over the years and big-hearted Amie even adopted a dog we rescued from a bad situation. Several times we have discussed the possibility of her selling her first house, however she was somewhat attached as she had done a lot of work on it. However, she did not want to have to pay the huge capital gains tax that she would have to pay as an investment property, so her time to sell was coming up. She’d had to sell by June of 2020, as by then she would not have lived in the house for two of the last five years, which is the time limit.
She had also been dealing with really difficult tenants, so when their lease was up at the end of August 2019, she decided to get the house listed. The renters had left the house in a mess, so a bunch of yard work and clean up needed to happen. By early October we were ready to get the house on the market.
Like most folks, Amie wanted to get the most money possible. Her property was zoned L1, which meant ‘low rise multi-family’ so several townhouses/row houses could be built on her lot. Her street had seen two other lots developed into townhouses. Her house was a bit funky, but had updated electricity and plumbing, and a newer bathroom, so was perfectly live-able as a single-family house. It just needed cosmetic updates, like paint, new carpet and some flooring. However, there seemed no point in spending money to fix up the house as the lot was just as valuable.
In order to attract builders and regular buyers, I listed the property in two categories; as vacant land and a single-family home. I enlisted a Windermere colleague who is an architect and he drew up a site plan to show how the lot could be used to build four townhouses, or a possible house/DADU behind the existing home. The more information you can provide a builder the better!
Amie did not need to close until the end of June, so listing it in October would be appealing to a builder as they like to have a long closing date, so that they can work on getting permits, etc. and not have all their money tied up immediately. They really like to have a year to close, but nine months would also be appealing.
The market had slowed a bit by the time we listed the house and it seemed a lot of developers already had their money tied up in existing projects. I had lots of open houses, but the feedback from most residential buyers was that the house needed too much work for them. So, we unfortunately had to drop the price in order to entice a buyer, and it worked!
We even got a back-up offer for more money! The first buyers, however, persisted; they were a small residential build company who planned to use the property as an office and then build down the road.
Amie was relieved to get the house sold; it closed in early March. I am so happy for her, as she really needed to not pay that huge capital gains tax.
Congratulations, Aimee!
SAVE THE DATE: A fun evening of wine tasting & lawn bowling
Dear friends,
You’re invited to a fun evening of wine tasting and lawn bowling on Thursday, May 24, from 6 to 9 pm. Great wines – including a fabulous award winner! If you find something you like, purchase it direct from the vintners at a discount. We will also have yummy appetizers and free drawings for a delicious bottle to take home.
Location:
Jefferson Park Lawn Bowling Club
4103 Beacon Ave. South | Seattle, WA 98108
Clubhouse and greens are located west of the Jefferson Park Golf clubhouse and driving range. Turn west on to a road just south of the golf clubhouse, alongside the putting green. You’ll wind around a bit to reach the lawn bowling clubhouse.
5 Small Things You Can Do to Improve Your Home Office
Amid the COVID-19 Pandemic, many of us now find ourselves working from home. While it’s hard to complain about the commute, working from home can be an adjustment. For example, you may find yourself doing tasks around the house and suddenly you’ve missed several important emails. If you feel like you need some help being more productive while working from home, here are five tips to improve your workflow.
Add Light
The best kind of light is natural light. Try setting up your workspace by a window. If that’s not possible, add a desk lamp or floor lamp to brighten your space. Not only will it help with visibility; it brightens your mood, which helps you to be more productive.
Declutter
Remove distracting clutter. Take everything off your desk that you don’t need. Store it elsewhere or use shelves on your wall to display it.
If you find yourself cleaning throughout the day, set aside time specifically for these tasks. If you’re still waking up at the same time you did when working at the office—which studies show is a great strategy when working from home—using your would-be commute time to tidy up helps avoid those periodic distractions.
Bring the Outdoors In
Bringing plants into your home is beneficial for productivity and health alike. Greenery is a natural mood booster and gives life to a room. Plants naturally purify the air, helping you breathe easy as you make your way through the workday. Try arranging both hanging and potted plants to improve the mood around your workspace.
Change Your Chair
A chair that’s too tall, too short, or not comfortable is a fast track to back and shoulder problems that inhibit your workday and linger afterwards. Being in a stationary position for hours at a time requires the right kind of support to stay productive. Features to look for in a quality office chair include proper lumbar support, sturdy wheels, and an adjustable base that allows your shoulders to relax and your feet to rest flat on the floor.
Add Decor
It’s important to keep your home office professional and dedicated to your work. However, adding personal touches to the space will help you feel at ease. Position your work computer and phone front and center with any related work tools close by and handy. Adding pictures of loved ones, artwork, and inspirational quotes will help inspire you to generate ideas while working productively.
Coronavirus Protections for Home Sellers
Before you decide to sell, be sure to seriously consider the risks of putting your home on the market right now. Talk with your Windermere agent to discuss your options.
❱ While open houses generate interest and traffic, groups are hard to control, and we want to practice “social distancing” when we can. We recommend only allowing showings by appointment; this ensures that only serious buyers enter your home, reducing possible spreading of the virus.
❱ Consider vacating the property from list date to offer review date by staying with family or friends or at a short-term rental.
❱ Wipe down surfaces following every showing of your home.
❱ If you start to feel sick or have knowledge that you have been in contact with someone suspected to have COVID-19, take your home off the market immediately.
❱ Ask your agent to pre-screen buyers before they enter your home to ensure they aren’t ill and have not potentially been exposed to the virus.
❱ Place a placard in the entry of your home requesting that any person who has recently been ill or may have been in the company of someone who is suspected to have COVID-19 to not enter your home.
❱ Provide hand sanitizer throughout your home.
❱ It’s common for sellers to provide protective booties for buyers who tour the home; consider also providing disposable gloves.
❱ Leave interior doors open so that buyers who tour the home don’t have to touch the handles when entering rooms.
❱ Disinfect your home with proper cleaning supplies after every open house.
Find Windermere’s Coronavirus Protections for Home Buyers here.
Coronavirus Protections for Home Buyers
As the situation develops with the COVID-19 pandemic, Windermere Real Estate is dedicated to taking steps to reduce the spread of the virus while continuing to work with home buyers. To help with this process, here are some ways you as a home buyer can keep yourself and others safe during the buying process.
As the situation develops with the COVID-19 pandemic, Windermere Real Estate is dedicated to taking steps to reduce the spread of the virus while continuing to work with home buyers. To help with this process, here are some ways you as a home buyer can keep yourself and others safe during the buying process.
WHEN TOURING HOMES
❱ Only tour the property if you feel healthy.
❱ Ask your Windermere agent to show you the property instead of attending an open house.
❱ Drive separately from your agent to the property.
❱ Be considerate of the seller’s home and wash or sanitize your hands
before entry, touching as little as necessary. While many sellers will
likely provide it, bring your own hand sanitizer and use before and
after you tour the home. You might also consider wearing disposable
gloves for further safety.
❱ Ask your agent to confirm with the seller’s agent that they have not
recently been sick or in contact with someone suspected of having
COVID-19.
❱ Sellers often ask you to take off your shoes when you tour their home
or wear protective booties that have been provided. Consider bringing
your own booties and throwing them away when you’ve finished touring.
❱ Be mindful of how much you touch things in the home and minimize contact with doors and hand railings.
❱ Reduce the amount of time spent with other people in the same room.
This “social distancing” practice can curb person-to-person spread.
DO NOT TOUR HOMES IF
❱ If you are currently self-quarantined because of illness or other
reasons, you should not tour homes in person. Ask your Windermere agent
to video chat with you while they tour the home so you can see it
virtually.
❱ Do not view homes when you’re sick, feeling like you’re about to be sick, or getting over an illness.
❱ We do not recommend touring homes after returning from international
travel or travel that exposed you to a large group of people in close
quarters, like large events.
Find Windermere’s Coronavirus Protections for Home Sellers here.
What Makes A Home “Modern”?
Sleek, sustainable design, open concept floor plans, minimalism, and eco-conscious thinking are defining characteristics of modern architecture. Recently, modern design concepts in home building have become more popular, and the resurgence of interest in modern real estate has followed suit.
These characteristics are what define Contemporary Architecture:
Clean geometric lines: At the heart of modernist values lies the simplification of form. Modernist homes have a very ‘linear’ feel with straight lines and exposed building materials. Furnishings and adornment reflect this value, incorporating vibrant, geometric and abstract designs.
Smaller, multifunctional spaces: With the Tiny House subculture consistently on the rise, and the new generation of homeowners expressing a desire to move away from the sprawling dwellings of the past, multifunctional living spaces are a must for modern homes. Built-in storage is commonly used to reflect this multi-purpose; space-saving feel.
Eco-conscious: Modern homes are well-suited for technological and green upgrades, as well as eco-friendly building materials and energy efficient practices, and flat roofs to accommodate solar power. A new trend is to bring nature into each room for a calming, soothing effect. Large windows are abundant in modern architecture, allowing light to fill and expand the interior space, bringing the natural world indoors.
Post-and-beam structure: Exposed wood posts and ceiling beams are classic elements in modern architecture. This style of building has been around for thousands of years; however, modern homes significantly emphasize the structure, rather than hiding the bones behind drywall. In new modern homes the post-and-beam structure can be made of concrete, iron or other materials. The visible horizontal and vertical beams reinforce the clean geometric lines of the space.
Open concept: Modern design strives to “open” the space by eliminating enclosed rooms. A common tactic is to open the kitchen and dining room into an open living space, allowing the spaces to flow into one another.
Minimalism: With open and connected modernist spaces, careful curation of furniture, adornments, and household objects is paramount to incorporating the modernist aesthetic. Generally, modernist homes have art and furniture that reflects the clean geometric lines and the natural materials of the architecture, leaving less space for clutter. Minimalist philosophies encourage few household items that serve both form and function, which work well within this design and architectural style.
