Have you noticed? Everywhere you turn, there is a construction worker in a hardhat holding a sign to either slow you down or make you wait while workers repair roads, or build houses. Yes houses! Evidently builders have seen the light at the end of the tunnel and are breaking ground and building homes.
If you are keeping up with the Seattle Times, you know the rental market is red hot. Dupre + Scott Apartment Advisors showed us that the Puget Sound's vacancy rate has fallen from 7.2% in the fall of 2009 to 4.6% in our current market. When the apartments fill up, consumers start thinking now may be the time to buy, and they are right.
As mentioned in a previous blog, area employers are hiring in record numbers. I just learned that Microsoft Redmond needs to hire 3,000 more employees in the next 4 or 5 months. That's just for the Redmond complex! Of course, for every worker, we need a place to house them.
In our Bellevue Way office alone, one year ago in January/February, our office closed $67M in sales. This year in the same January/February period, we closed $94M. That's a 40% increase. 1 year ago January/February our average sale was $693K. This year? $782K. We have more evidence of a changing market and sellers may begin to call the shots.
Buyers take note: our market is becoming more competitive. Mortgage rates are still hovering around 5% for 30 year conventional fixed rate loan. If you are looking for a home, better look quick. Pendings on the Eastside continue to climb and outpace new listings as demand increases. You are likely going to see a lot more competition for the newly listed home your agent just emailed you. And if that home looks sharp and is priced right, it likely won't be on the market for long.
Incidentally, 4 years ago this month, April 2007 was the peak of our market. Prices have fallen to about 1/3 of that value, but with market demand increasing, buyers need to be aware we are in a transitional market. Home prices are likely to rise if the rules of supply and demand hold true.
Read more: http://www.seattlepi.com/local/article/Skittish-Seattle-area-residents-heat-up-apartment-1307247.php#ixzz1IzjqieNd
Friday, April 8, 2011
Monday, March 14, 2011
Inventory Needed on Seattle's Eastside!
I am amazed at the perceptions that buyers in the greater Seattle market have. While at an open house last weekend, I had over 100 buyers stream through the property. I engaged in conversation with as many visitors as I could, but it was quite a challenge. As soon as I said hello to one family, the door would open and another couple would come in. There were so many buyers looking for a new home and when I spoke with other agents in my office, they remarked that they had the same experience: the buyers have come out in force.
Interest rates have begun to creep up. That can stir buyers to act. In the past year, we have seen nearly a 1% rise in interest rates. This can translate into hundreds of dollars more per month on your mortgage payment. I've noticed that many buyers will focus on the list price of the home while ignoring the interest rates, but both need to be watched closely. Check out this link for more specifics on what rising interest rates can cost you: http://www.cbbain.com/Pages/SiteContent.aspx?PID=285
Besides rising interest rates, we have seen an influx of new buyers from other regions. Microsoft, Boeing, Amazon, Google, Starbucks, Nordstroms and more are rolling out the red carpet for talented new hires from all over the world....and they are showing up at open houses, pulling flyers from boxes and searching the internet looking for a home. As a result, we are seeing our inventory shrink. While the perception of buyers is that foreclosures are flooding the market and it's a buyers' market, the numbers I'm crunching tell me otherwise. We need more inventory!
Let me give you some statistics from Seattle's Eastside, which is my primary market. For this report, I am looking exclusively at single family residences. Did you know that in the last 7 days in Kirkland, where I live, there are 31 new listings and 46 homes went pending? In Bellevue, where I have my office, we had 31 new listings and 50 homes went pending. In the same 7 day period in Woodinville there were 10 new listings and 14 homes went pending. In Redmond, there are 26 new listings and 57 homes went pending. In Issaquah, 14 new listings and 15 new pendings. In Bothell, 12 new listings and 14 new pendings. Do you think our market may be changing? Do you see we have a need for more homes? This is a trend I see all over the Eastside.
According to Conway Pederson, publisher of The Puget Sound Economic Forecaster, the forecast is for about 30,000 net new jobs in 2011, meaning even without births, marriages and divorces, we will need another 15,000 housing units in 2011 (each net new job equals 1/2 a housing unit) That is on top of the 23,600 jobs our area added in 2010, and the 65,100 population growth in Washington.
How about new construction? That could help take care of some of this increase, but in 2010, only 14,000 new housing units were constructed. That means we were short about 12,000 housing units in 2010. Is it any surprise builders are moving in, buying up lots and beginning to build again? Would they be doing this if there wasn't a real need?
Next week I'll be back at my post, greeting all those who follow a sign to my open house. I'll smile, welcome them, hand them a flyer and discuss our changing market. I'll listen politely while some are sure to want to inform me that we have a glut of homes and it's a buyer's market.....but you and I both know better.
In conclusion: If you know of anyone who is thinking of selling their home on Seattle's Eastside, they couldn't pick a better time. Have them contact me at LaurenHunnicutt@cbbain.com and I will get their home sold!
Interest rates have begun to creep up. That can stir buyers to act. In the past year, we have seen nearly a 1% rise in interest rates. This can translate into hundreds of dollars more per month on your mortgage payment. I've noticed that many buyers will focus on the list price of the home while ignoring the interest rates, but both need to be watched closely. Check out this link for more specifics on what rising interest rates can cost you: http://www.cbbain.com/Pages/SiteContent.aspx?PID=285
Besides rising interest rates, we have seen an influx of new buyers from other regions. Microsoft, Boeing, Amazon, Google, Starbucks, Nordstroms and more are rolling out the red carpet for talented new hires from all over the world....and they are showing up at open houses, pulling flyers from boxes and searching the internet looking for a home. As a result, we are seeing our inventory shrink. While the perception of buyers is that foreclosures are flooding the market and it's a buyers' market, the numbers I'm crunching tell me otherwise. We need more inventory!
Let me give you some statistics from Seattle's Eastside, which is my primary market. For this report, I am looking exclusively at single family residences. Did you know that in the last 7 days in Kirkland, where I live, there are 31 new listings and 46 homes went pending? In Bellevue, where I have my office, we had 31 new listings and 50 homes went pending. In the same 7 day period in Woodinville there were 10 new listings and 14 homes went pending. In Redmond, there are 26 new listings and 57 homes went pending. In Issaquah, 14 new listings and 15 new pendings. In Bothell, 12 new listings and 14 new pendings. Do you think our market may be changing? Do you see we have a need for more homes? This is a trend I see all over the Eastside.
According to Conway Pederson, publisher of The Puget Sound Economic Forecaster, the forecast is for about 30,000 net new jobs in 2011, meaning even without births, marriages and divorces, we will need another 15,000 housing units in 2011 (each net new job equals 1/2 a housing unit) That is on top of the 23,600 jobs our area added in 2010, and the 65,100 population growth in Washington.
How about new construction? That could help take care of some of this increase, but in 2010, only 14,000 new housing units were constructed. That means we were short about 12,000 housing units in 2010. Is it any surprise builders are moving in, buying up lots and beginning to build again? Would they be doing this if there wasn't a real need?
Next week I'll be back at my post, greeting all those who follow a sign to my open house. I'll smile, welcome them, hand them a flyer and discuss our changing market. I'll listen politely while some are sure to want to inform me that we have a glut of homes and it's a buyer's market.....but you and I both know better.
In conclusion: If you know of anyone who is thinking of selling their home on Seattle's Eastside, they couldn't pick a better time. Have them contact me at LaurenHunnicutt@cbbain.com and I will get their home sold!
Monday, March 7, 2011
Confidentiality
When a buyer or seller works with an agent, they share personal information. As a licensed Realtor, I am bound to a code of ethics that requires me to hold my client's information in confidence. Confidential information includes personal financial information, your motivation for buying or selling, your personal circumstances such as a divorce or relocation and anything else that would compromise your negotiating position.
As a listing agent, when I list your home for sale, my fiduciary duties include the following: loyalty, obedience, disclosure, confidentiality, reasonable care and diligence, accounting and loyalty. All are important, but the need for confidentiality is paramount.
I often remind my clients that I am working for them to get them the most favorable terms and that I hold their information in confidence. I do not share this information with other agents as it not only can backfire, but breaching confidentiality leads to lawsuits. I have a legal responsibility and duty to my clients to keep their information private and confidential. How long must I keep the confidence? Confidentiality never ends. Even after a sale closes or the listing expires, only a court order can override confidentiality.
As a listing agent, when I list your home for sale, my fiduciary duties include the following: loyalty, obedience, disclosure, confidentiality, reasonable care and diligence, accounting and loyalty. All are important, but the need for confidentiality is paramount.
I often remind my clients that I am working for them to get them the most favorable terms and that I hold their information in confidence. I do not share this information with other agents as it not only can backfire, but breaching confidentiality leads to lawsuits. I have a legal responsibility and duty to my clients to keep their information private and confidential. How long must I keep the confidence? Confidentiality never ends. Even after a sale closes or the listing expires, only a court order can override confidentiality.
Thursday, February 17, 2011
What is a Senior Real Estate Specialist Designation?
I am happy to report that am an now officially a Senior Real Estate Specialist. SRES is the only designation and marketing program specifically designed to serve senior property owners. SRES designees have acquired unique tools and a special expertise to counsel senior clients with their lifestyle transitions which may include financial, legal and medical issues, tax laws, and decisions on aging in place verses assisted living options.
As a SRES agent I am able to offer expert assistance to my 50-plus clients. This group of seniors, now comprises one of the fastest growing communities in the country. Did you know that 33% of the United States' population reached age 50 in 2010? That the average life span in the United States has reached 78? Another fast growing segment of our population is nonagenarians, people in their nineties, and centenarians, people aged one hundred or more. Census projections put the number of nonagenarians at up to 2.1 million in 2010 and 2.7 million in 2020. This growing population will challenge our society's ability to adapt to the elderly's needs for housing, health care and long-term care. As a Realtor who constantly looks for market changes, I have positioned myself to gain the knowledge needed to help this growing segment grow into their retirement years with grace and dignity. Feel free to contact me for more information about senior real estate matters. It would be my pleasure to assist you.
As a SRES agent I am able to offer expert assistance to my 50-plus clients. This group of seniors, now comprises one of the fastest growing communities in the country. Did you know that 33% of the United States' population reached age 50 in 2010? That the average life span in the United States has reached 78? Another fast growing segment of our population is nonagenarians, people in their nineties, and centenarians, people aged one hundred or more. Census projections put the number of nonagenarians at up to 2.1 million in 2010 and 2.7 million in 2020. This growing population will challenge our society's ability to adapt to the elderly's needs for housing, health care and long-term care. As a Realtor who constantly looks for market changes, I have positioned myself to gain the knowledge needed to help this growing segment grow into their retirement years with grace and dignity. Feel free to contact me for more information about senior real estate matters. It would be my pleasure to assist you.
Monday, January 17, 2011
Our Changing Market
I went to our weekly business meeting this Monday morning. Each week we talk about our market, tour homes and rub shoulders with other Realtors who primarily work Seattle's Eastside. We had very few new listings come on the market over the holidays and today I went with the expectation that we would have at least a half dozen new office listings to preview. I was surprised when I picked up the office tour sheet and saw just one home on Mercer Island listed. I was even more surprised when the listing agent told us that even though it was a new listing at $1.4 M, she already had four offers on it and was expecting a fifth, but more offers were welcome. This lead to a lively discussion of what is going on in our market.
Those of us who have been working with buyers in recent months have been frustrated. A great number of homes closed before year's end and we've been telling our clients, "just wait until after the holidays...." Well, the holidays have come and gone and we are not seeing a large number of homes coming on the market...at least not yet. In quizzing our top listing agents we learned that they have seen the number of homes coming on the market drop and the number of multiple bid situations increase. One agent spoke about having a competing bid on a property valued at over $1.2M. There were 33 offers on the property and the winning bid was well over the asking price. Was this an aberration? I had a similar situation in recent months. My clients found a wonderful foreclosed home in Kirkland with a phenomenal lake view. Price was mid $900s and we bid full price. The listing agent called me the next day to say it was a multiple bid situation and that we should submit our "highest and best" offer. My clients came up $6,000 over the list price but the winning bid came up well over $1M. Last week in the West Bellevue market in the $1.25M to $2.25M range, 9 homes went pending. In 2010, 45 more homes sold on Mercer Island than in 2009. To cite yet another example, the volume of waterfront home sales on Mercer Island tripled in 2010 over the number sold the previous year, indicating that velocity even in this price category is increasing tremendously.
What does this mean for buyers and sellers? If you are looking to buy a home, you need to work with a Realtor who has their pulse on the market and sends you listings as soon as they are available. Check your email often and when your agent flags a home and says, "we need to see this one asap," then you need to act quickly. Just last week, I sent what I identified as a "hot" house to six buyers, letting them know we should see the home within a day if possible. One of the six heeded my advice and saw the home. While they decided not to bid on it, it was good they got in quickly, as the next day the sellers had an accepted offer in a multiple bid situation. Later in the week, another buyer finally returned my call and said they hoped to see that home on the weekend....but alas, it was too late.
For sellers, you may be rubbing your hands and thinking now is the time to list your home for sale. You are right! Finally, we have buyers who are serious about buying. The rising interest rates are helping push some to act, but what I personally have seen is an influx of new hires in the greater metro Seattle area. Open Houses offer an interesting snapshot of our market. What we have seen is large numbers of buyers moving into our area, currently renting, but looking to buy in 2011. Microsoft is hiring from all over the world, but so is Expedia, Starbucks and Boeing, to name a few. But while the demand has increased, we are noting that buyers are still very discriminating. People are turning up their noses at dirty, dated or overpriced homes. Buyers are looking on line, doing their homework, and ready to act, but the property must be clean, staged and properly priced. If they are: the home will sell.
Yes, our market is changing. While we expect more foreclosures and short sales to come on the market in 2011, our projections are that the demand will take care of the supply and we will soon be back in a balanced market situation with property values once again increasing: and isn't that something all homeowners want?
If you are thinking about buying or selling a home on Seattle's Eastside, please give me a call. It would be my pleasure to help you understand our ever changing market and represent your best interests in either purchasing or selling a home.
Those of us who have been working with buyers in recent months have been frustrated. A great number of homes closed before year's end and we've been telling our clients, "just wait until after the holidays...." Well, the holidays have come and gone and we are not seeing a large number of homes coming on the market...at least not yet. In quizzing our top listing agents we learned that they have seen the number of homes coming on the market drop and the number of multiple bid situations increase. One agent spoke about having a competing bid on a property valued at over $1.2M. There were 33 offers on the property and the winning bid was well over the asking price. Was this an aberration? I had a similar situation in recent months. My clients found a wonderful foreclosed home in Kirkland with a phenomenal lake view. Price was mid $900s and we bid full price. The listing agent called me the next day to say it was a multiple bid situation and that we should submit our "highest and best" offer. My clients came up $6,000 over the list price but the winning bid came up well over $1M. Last week in the West Bellevue market in the $1.25M to $2.25M range, 9 homes went pending. In 2010, 45 more homes sold on Mercer Island than in 2009. To cite yet another example, the volume of waterfront home sales on Mercer Island tripled in 2010 over the number sold the previous year, indicating that velocity even in this price category is increasing tremendously.
What does this mean for buyers and sellers? If you are looking to buy a home, you need to work with a Realtor who has their pulse on the market and sends you listings as soon as they are available. Check your email often and when your agent flags a home and says, "we need to see this one asap," then you need to act quickly. Just last week, I sent what I identified as a "hot" house to six buyers, letting them know we should see the home within a day if possible. One of the six heeded my advice and saw the home. While they decided not to bid on it, it was good they got in quickly, as the next day the sellers had an accepted offer in a multiple bid situation. Later in the week, another buyer finally returned my call and said they hoped to see that home on the weekend....but alas, it was too late.
For sellers, you may be rubbing your hands and thinking now is the time to list your home for sale. You are right! Finally, we have buyers who are serious about buying. The rising interest rates are helping push some to act, but what I personally have seen is an influx of new hires in the greater metro Seattle area. Open Houses offer an interesting snapshot of our market. What we have seen is large numbers of buyers moving into our area, currently renting, but looking to buy in 2011. Microsoft is hiring from all over the world, but so is Expedia, Starbucks and Boeing, to name a few. But while the demand has increased, we are noting that buyers are still very discriminating. People are turning up their noses at dirty, dated or overpriced homes. Buyers are looking on line, doing their homework, and ready to act, but the property must be clean, staged and properly priced. If they are: the home will sell.
Yes, our market is changing. While we expect more foreclosures and short sales to come on the market in 2011, our projections are that the demand will take care of the supply and we will soon be back in a balanced market situation with property values once again increasing: and isn't that something all homeowners want?
If you are thinking about buying or selling a home on Seattle's Eastside, please give me a call. It would be my pleasure to help you understand our ever changing market and represent your best interests in either purchasing or selling a home.
Sunday, January 16, 2011
Asking a Realtor for a Kickback
I met a couple recently and we discussed their housing needs. They asked me to show them a property and I made the arrangements. After spending considerable time at the home, they turned to me and asked if I would give them part of my commission if they bought the home through me. I explained that they did not pay my commission, the seller did. They said they understood that and yet wanted me to give them 1/3 of my commission for doing business with them.
While I am not an attorney, and this should not be construed as legal advice, under Washington law this is considered a “kickback” and is prohibited. Some agents simply ignore this and offer their services at a reduced rate in order to garner more business. I have to wonder what kind of service these agents offer. If they will not conduct a transaction within the law, why, then should we assume they will care for the interests of their clients? I also wonder if they are astute enough to realize that what they are doing is prohibited and is grounds for disciplinary action by the Department of Licensing.
What some home buyers and sellers do not understand is that Realtors do not earn a salary and are only paid when they close a sale. The 3% commission figure is historically recognized as one that adequately compensates agents for the time, effort, expenses, and other factors involved in this type of business.
It is possible for realtors to legally share a portion of their commission with a buyer, but in order to do so, there must be full disclosure to the lenders involved and all aspects of the transaction must be fully disclosed on the closing settlement documents (“the HUD”). To pay a kickback either before or after closing without informing the lender or disclosing the transaction on the HUD is illegal and puts both the client and the Realtor at risk of being targeted for mortgage fraud. To avoid incurring liability for potentially fraudulent transactions, it is best to keep all the financial dealings open and above board. Better yet, work with a realtor that will not engage in deals that skirt the margins of permissible or ethical behavior.
Monday, December 13, 2010
Condo investors: do your due diligence
Did you know that some condominiums have restrictions regarding the rental of units in the complex? Many lenders require a minimum owner-occupancy and many condominiums have rules limiting the number of rental units allowed. Some require that the owner live in the property for a specified period before the property is rented. Move in and move out fees may also be imposed and finally, there may be leasing and application requirements imposed by the homeowners’ association. Before you invest in a condominium as a rental, make sure you and your agent do their due diligence.
Subscribe to:
Posts (Atom)
