Seattle Homes Selling In Average of 8 Days

3804 E Blaine St.Across the U.S., houses are selling at breakneck speed, with homes only surviving on the market for an average of 28 days before being snatched up by eager buyers. Many homes sold even faster than that in May, with approximately 35 percent going into contract within two weeks of hitting the market. But you think that’s fast? The national market has nothing on Seattle, where last month homes sold after a mere 8 days on the market, and almost half sold above list price, according to Redfin. This no doubt is due to extremely low inventory, especially within the Seattle city limits, where there is less than a month’s supply of homes available, not nearly enough to satisfy the high demand for homes in the city.

Despite this increased buying activity, national home prices actually grew at a slower rate this May – up just 1.6 percent over April – compared to the 3 percent rise in prices we saw last May. On a yearly basis, prices across the country are up 6 percent from a year ago. List prices in the Seattle market increased just slightly from April to May (1.4 percent), and the median was $426,000. Year over year, Seattle prices were up 6.5 percent.

As these statistics illustrate, now is a great time to sell your home! If you’re on the fence, contact your local real estate agent to learn more about the selling process.

Seattle Housing: What To Expect In 2015

Wash park home11Millenials

In Seattle’s housing market, where the supply of homes over the past year never exceeded two months’ worth of inventory, a whole new generation of home buyers could be poised to make an even bigger dent in the pool of available homes in 2015. Millenials – people born after 1980 – have been putting off home purchases due to factors such as high student debt, stagnant wages resulting from the recession, and a desire to not be tied to a permanent home, but they could be a bigger force in the housing market in 2015, according to a new report in The Seattle Times. With the median rent in King County now standing at $1,750 per month, home ownership is beginning to look more appealing to many in their late 20’s and early 30’s who have thus far been exclusively renters.

Rental Market

Rents in the Seattle area (King and Snohomish counties) grew at a staggering rate of more than 8 percent in 2014 and are projected to continue to rise in 2015. An estimated 12,273 new apartment units slated to go on the market next year are expected to increase competition for renters and help ease price hikes somewhat, but the glut of new units likely won’t provide much relief for those with budgets at the lower end of the spectrum. For example, in Ballard, where many of these new buildings are going up, apartments built after 2010 are renting for an average of $1,731 per month – not exactly affordable for many single renters. Overall, Seattle remains the 8th most expensive place to rent in the country, with a median rent of $1,580 for a one-bedroom apartment.

Home Prices

Seattle median home prices continue to rise on a yearly basis, having grown 11 percent in 2014, according to the Puget Sound Business Journal, but most are predicting slower, yet steady growth for 2015. The median price for a single-family home in Seattle in November this year was $357,000. In King County as a whole, the median price was $440,000 in December, just slightly lower than the 2007 peak of $455,000. Stan Humphries, chief economist at Zillow, told The Seattle Times that he expects to see continued moderation of price gains over the next year, compared with the double-digit growth the market saw in 2013 and early 2014. OB Jacobi, president of Windermere Real Estate, said in a statement that he expects price growth of 4-6 percent in 2015.

Home Value Appreciation Slowing Locally And Nationally

housingZillow is reporting that markets across the country, including Seattle’s, are seeing a sustained slowdown in home price appreciation that will likely continue into 2015. At the end of the third quarter this year, annual appreciation for homes in Seattle stood at 6.9 percent, whereas the change in the third quarter of 2013 from the previous year was 12.9 percent. Zillow is forecasting that in the third quarter of 2015 appreciation in Seattle will be down to 5 percent.

Nationally, home values grew by 6.5 percent over the past year, which is down from the peak annual appreciation of 8.1 percent in April of this year. To give some context, U.S. home values are still 10.1 percent below their peak in April 2007 at the height of the bubble. In further evidence of a softening national market, there are 18.6 percent more homes on the market in the U.S. than there were a year ago, though Seattle is still seeing very low inventory.

If you are interested in real estate in the Seattle area, contact your local real estate agent today.

New SHA Program Would Raise Rents For Many In Subsidized Housing

housesAn article published yesterday by The Seattle Times outlines a proposed new program from the Seattle Housing Authority that would introduce progressive rent increases for about 35 percent of households that are part of the subsidized housing system. The program, titled “Stepping Forward”, aims to cycle more people out of subsidized housing by putting residents on the path to a higher wage through job counseling, and would raise rents accordingly over a span of six to eight years.

Stepping Forward would apply to 4,600 “work-able” households, which is defined by SHA as one where at least one person between the ages of 24 and 61 has no disabilities that prevent them from working. Currently, residents in subsidized housing pay 30 percent of their income for rent, but under the new plan rent would be based on home size rather than income. For example, potential rent for a one-bedroom apartment would be $140 per month for the first year of the program, $310 per month for years two and three, $480 per month for years four and five, and $720 per month for years six and seven. Different rent amounts would apply to studios, two bedrooms, etc. For households with no work-able adults, rent would continue to be a percentage of income.

Five community meetings being held in September will give the public a chance to comment on the proposal. All meetings are at 6:00 p.m. on the following dates:

– Today, September 16 at the Meadowbrook Community Center

– Wednesday, September 17 at the Yesler Community Center

– Monday, September 22 at the Rainier Community Center

– Tuesday, September 23 at the NewHolly Gathering Hall

– Monday, September 29 at the High Point Community Center

For more information on rentals or real estate in Seattle, contact your local real estate agent today.