King County Home Prices Bounce Back in August

1After the median selling price for a single-family home in King County dropped to $485,000 in July, prices bounced back to just a hair under $500,000 in August, representing a 14.4 percent annual gain, and the biggest yearly gain of any month in 2015. Inventory in King County was also up slightly from July, and now stands at 1.36 months’ worth of supply, the most inventory we’ve seen since February, according to statistics from the Northwest Multiple Listing Service. In contrast, median prices within the sub-market of Seattle stayed essentially flat last month, having dropped by just $500 from $575,500 in July to $575,000 in August. However, that is a 15 percent increase over August 2014.

Inventory in Seattle followed King County’s lead and increased by a small increment to .91 month’s supply, up from .74 months’ worth in July. Lack of inventory continues to put pressure on the market in the Puget Sound region, with total listings down 29.7 percent in King County and down 32.7 percent in Seattle since this time last year. “The biggest challenges our buyers face are lack of inventory and the quality of homes to choose from,” MLS director George Moorhead said in a statement. Some believe this continued double-digit price growth combined with lack of available properties is not sustainable and that we may see a slowdown in the market as we enter the fall season, when inventory historically drops by about half.

The area condo market has made great strides over the year, especially in Seattle, where the median price rose from $299,000 in August 2014 to $395,000 this year – a staggering 32 percent. Prices increased more modestly countywide, but still showed strong growth with a 19 percent rise.

If you are interested in buying or selling a home in the Seattle area, contact your local real estate agent today!

Only 2% of Seattle Renters Plan To Buy Within Year

371 ProspectSeattle is home to one of the nation’s highest homeownership confidence rates, according to Zillow’s recently released Housing Confidence Index (ZHCI), but our region’s soaring home prices could be causing renters to think twice about entering the home-buying market. According to a Zillow report, only two percent of renters in Seattle are planning to purchase a home in the next year, which is far below the national average of 11.4 percent and the lowest rate among the top 20 metro areas. Miami led all metros with 21 percent of renters planning to buy in the upcoming year, despite a healthy 8.9 percent year-over-year home value increase.

The Seattle Times cited another statistic from Zillow stating that even among renters making $90,000+ per year, 48 percent said they were not planning to buy in the next five years. In the most recent census data available (from 2013), the biggest growth in the rental market was from those making $100,000+ per year. Though some of Seattle renters’ hesitation may largely have to do with discouragement over the high prices and bidding wars that have become the new normal, many are consciously choosing renting for the flexibility it allows. With the plethora of luxury apartment buildings sprouting all over Seattle, many offering amenities akin to those at high-end hotels, renting, and avoiding the obligations of home ownership, is looking more and more appealing to many.

But just because renters are staying out of the fray doesn’t mean no one’s buying, in fact, quite the opposite. Even with almost a third fewer listings this August than August 2014, pending sales and closed sales in King County were both up this August compared to a year ago, according to statistics from the Northwest Multiple Listing Service. After a slight dip in home prices in July, the median price for a single-family home in King County bounced back to just a hair under $500,000 at $499,950 in August. The Seattle area’s market also rose from 10th to 2nd on Zillow’s Housing Confidence Index.

If you are interested in buying or selling a home in the Seattle area, contact your local real estate agent today!

Home Tips: Prepare Your House For Fall

Fall has truly begun in Seattle this week, with leaves changing color seemingly overnight, and warm temperatures giving way to crisp fall air. Before you begin cozying up inside for the months ahead, there are several things you can do to prepare your home and yard for wet, cold weather. Here are some tips for making sure you and your house make it through the cold season unscathed:

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  • If you’re handy and can safely do it yourself, make sure your gutters are clear of leaves and debris. If not, hire a professional to do it for you.
  • Make sure your roof is in good shape. The last thing you want is a roof leak in the middle of the rainy season!
  • Trim back shrubs and bushes at the base of your house. Anything that can trap water near your home’s foundation is a recipe for water damage, so make sure your landscaping directs water away from your house.
  • Make sure your home is air- and water tight. In addition to saving you money on energy costs, making sure your house is sealed up makes it more comfortable and prevents potential water damage. Make sure your windows and doors are weatherstripped and are sealing tightly, and if drafts are still sneaking in under your doors, consider using a “door snake” for additional insulation.
  • If you have a fireplace, have the inside and chimney cleaned and inspected by a professional, and give the exterior a good scrubbing yourself. Porch.com has some great tips on how to clean your fireplace here.OLYMPUS DIGITAL CAMERA
  • Winterize your outdoor faucets and pipes. Read tips on winterization here from Seattle Public Utilities.
  • Make sure your smoke and carbon monoxide detectors are functioning correctly. Washington state law states that you must have a carbon monoxide detector installed outside of each sleeping area and on each floor of your house. Fall leaves
  • Do some yard maintenance to ensure safety. Since it will most likely be dark when you leave your house in the morning and when you come home in the evening, consider installing outdoor lights. Solar-powered options cost you nothing in energy costs, and many models switch on automatically at dusk and turn off at dawn. No brainer. Also, make sure your walkways and porches are free of cracks, moss, and leaves that can make them slippery.

Commercial Lease Rates Hitting New Heights In Seattle

seattle sunsetThe Highway 99 Blues Club, established in 2004 and located in the basement of a hundred-year-old brick building, is possibly one of the best blues clubs in Seattle. As reported by The Seattle Times, in June, the business was notified that their rent would be increasing. Somewhat normal and understandable considering the immense growth Seattle overall is experiencing, especially downtown. However, their rent isn’t going up just $500, or even $1,000. Starting in January 2016, the blues club, if they intended on staying, would be responsible for paying $14, 959 a month. That’s an increase of 225 percent (or $10,359 more a month) and how the business sees it, an eviction notice.

The commercial real estate market in Seattle is reaching new heights, quite literally and figuratively speaking, so much so that downtown tenants, like the Highway 99 Blues club, are being squeezed out due to astronomical rent increases. This gentrification of downtown Seattle is well supported, as companies haven’t a problem finding tenants to fill local office space in exchange for a pretty penny. In fact, not only are rents 7.5 percent higher (an average of $36.76 a square foot) than last year, but in June of this year “the vacancy rate was 11.4 percent, down nearly by half from its high of 21 percent five years ago,” according to the Seattle Times.

This rise in lease rates in Seattle, Bellevue, and surrounding areas has been greater than any other metro area in the US, and that includes tech hotspots like San Francisco, San Jose, Boston, and New York, according to the New York based market research firm Reis. Still, Seattle is cheaper than Manhattan, San Francisco, and London, and currently offers a thriving and exponentially growing technology and health industry. In fact, many San Francisco-based businesses are on the hunt for Seattle offices, including cloud-computing giant, Salesforce.com.

It’s been reported that three-quarters of newly occupied office space in King, Snohomish and Pierce counties is located in downtown Seattle. Last year a top floor office space went for $30 a square foot, this year a lower floor office space in the same building is asking $36 a square foot. That’s a 20 percent rent increase. Demand for land is what is moving these prices, as business owners are paying huge premiums and signing large lease transactions in order secure a spot to set up shop.

Adding to the difficultly in securing an already existing office in downtown Seattle or nearby areas, many companies are signing pre-leases on buildings that are still under construction. Some of these companies being:

–          Amazon just leased 817,000-square-feet of Troy Block, which is part of two-building project in South Lake Union.

–          Holland America Line just leased Martin Selig’s new 185,000 square foot building in Lower Queen Anne, set to open next year.

–          Tableau Software is set to lease a new 2016 210,000-square-foot building north of Gas Works Park.

–          And Juno Therapeutics leased 287,000 square foot building which is under construction at 400 Dexter Ave. N in South Lake Union.

It certainly seems “Seattle is a landlords market,” Stuart Williams, managing director of commercial real-estate brokerage JLL told The Seattle Times. This isn’t a playground for the mom and pop smaller tenant. This game is only available for big time tenants ready to pay up, commit to long term leases and wait patiently for their space in the ever changing Seattle metropolis.