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!

Millennials Are Buying Homes After All

broadview homewwThe National Association of Realtors 2015 report on generational trends showed that millennials make up the largest share of homebuyers, sitting at 32 percent. According to a recent TD Bank Survey of 1,002 adults, millennials who are currently between the ages 25 and 34 will be looking to purchase their first home over the next two years. Alas, putting to rest their reputation as the transient renter generation.

As the older tier of Gen Y rounds into their early 30s, many of whom didn’t experience the housing crisis firsthand, they view home buying with innovative eyes. Millennials see the potential in the “fixer upper” home and aren’t ruling them out as viable housing options. Just as likely to roll up their sleeves as the generations before them, millennials like the idea of tailoring their home to their needs.  Despite being laden with college loans and debt, and maybe because of that, Gen Y-ers are also less romantic about the process – purchasing before marriage, owning for shorter amount of time and flipping with success. There is as much risk as there is reward, and this robust generation isn’t questioning if the rewards exists.

Beyond changing the home owner relationship, this generation is also changing the home buying process. “We’re on our phones all the time, and this generation does not like to pick up the phone,” Player Murray, managing broker at Berkshire Hathaway HomeServices York Simpson Underwood Realty told US News. “They don’t want to bother with a conversation if it can be texted.” And because it’s predicted that millennials will (soon) rise as the generation buying the largest number of homes this year, their preference in how the process works, matter – big time. Nela Richardson, chief economist for the real estate company Redfin, agrees that “because of their size, whatever they decide to do will have an impact on the housing market,” and really, with smart phones and searching apps like Redfin and Zillow, Richardson is on to something.

This tech-savvy generation is spearheading change in many industries and real estate has been no exception. As Gen Y-ers overtake baby boomers in the home buying game, there is a ripple effect. Being that only 3 percent of agents are under 30, and 81 percent of real estate agents are over the age of 45, according to a NAR survey of its members, the tables have turned and the consumer isn’t being served by its own age group.

It’s not that Gen Y-ers aren’t buying homes, they are, just on their terms. They know what they want, which is not a phone call, but rather a text or app that will give them the freedom to research on their time. They do their homework – they aren’t looking for an access point to the information, as that is already at their fingertips, what they are looking for is a person to interpret the information and not leave anything out. Surprises aren’t fun for this generation, but home improvement projects are!

Tips For Getting Multiple Offers On Your Home

In regions with booming real estate markets, sellers may think getting multiple offers on their home is inevitable, but there are a few things you can do to increase your chances. The three must-haves for attracting multiple offers, according to Zillow, are location, price and presentation.

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You’ve heard it time and again: location, location, location. Buyers often consider location before other factors such as price, number of bedrooms or home size, so a well-located home is a huge advantage. Homes on busy streets, near freeway on/off ramps, or in less-than-stellar school districts may not attract as much interest. Work with a real estate agent to price your home very carefully if it’s not in a prime location.

That brings us to the next factor: price. Zillow reports that homes priced 10 percent over their market value will not get noticed, so it’s important to be smart and realistic with your listing price. While you won’t truly know the market value of your home until a buyer closes on the sale, real estate agents can help you establish a value range based on factors such as whether you are in a buyers’ or sellers’ market, location, and how well your home shows. If you price your home at the lower end of that range, you can be pretty confident you’ll generate lots of interest.

While you can’t change your home’s location and prices can fluctuate based on any number of factors, presentation of your home is something you have more control over. In today’s online-focused market, photos are key, so make sure you put your home’s best foot forward before you have it photographed. Buyers want to make an emotional connection with a home, so removing your personal items, making cosmetic upgrades (if you can afford it), and staging will make a good first impression online and drive buyers to look at the home in person.

These factors, supplemented by the expertise of a local real estate agent who knows the other homes in the area and can help you make yours stand out, will give you an increased chance of getting what all sellers want – multiple offers. If you are interested in selling or buying a home in the Seattle area, contact your local real estate agent today.

Seattle Is 5th Best Home Sellers’ Market in U.S.

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If you’re thinking of selling your home in the Seattle area, here’s some good news for you – according to Zillow our market is the 5th best in the nation for home sellers, only trailing San Jose, Calif.; San Francisco; San Antonio, Tex.; and Los Angeles. Zillow reports that home values in Seattle have increased 10 percent in the past year.

Due to a relatively strong job market in the west, which has led to a high demand for housing with a limited supply, the home sellers’ market in the west is outperforming the market in the eastern U.S. Home buyers, on the other hand, will find the strongest buyers’ market in Cleveland, Ohio.

For more information about Seattle real estate, contact your local real estate agent today.

Annual U.S. Home Value Appreciation Up for 6 Straight Months

Madrona Home KL

Madrona Home For Sale

According to the April Zillow Real Estate Market Reports, U.S. home value continues to climb. April was the sixth consecutive month that home values exceeded a 5 percent climb. This is the largest streak since 2006. The streak should not be expected to last. As more inventory is offered in the market some home prices will have to fall to level out with the rest. The Zillow Home Value Forecast predicts a 4 percent climb in the next year although most markets have already hit bottom.

National rents declined 2 percent in April compared to March. Demand for rental properties is still strong. Many investors are buying homes, fixing them up and turning them into rental units. Because of this, many markets are seeing less inventory and sharp home value appreciation brought on by the investors. Over the past month there has been a slight increase in inventory in some markets as more housing is constructed as well as more sellers enter the market.

Zillow Reports Home Values See High Monthly Increase

Attention Homeowners: there is hope after all for your beloved family home that holds more personal value than net worth! Last week, Real Estate website Zillow reported that both national home values and rent both rose in the month of April. According to Zillow, home values rose nationwide 0.7%, marking the largest month to month increase in value since 2006, and April is also the second month in a row for the value to increase! While King County home prices are on the rise, rent is also steadily climbing; of the 178 areas covered by the Zillow Real Estate Market Reports, 78% felt a rent increase. The housing recovery appears to be headed in the right direction overall, even though a weighted number of Americans still have homes with mortgages that are underwater, or risk foreclosure.