It's getting a bit harder for first time buyers to get a real deal on Seattle homes these days. If my personal anecdotes relate at all to the general real estate market in Seattle, there's a real floor being created in prices for entry-level homes. My first time buyer clients are finding that buying a home isn't as easy as making a low-ball offer and waiting for the transaction to close. In the last few weeks:

Buyer 1 tried to purchase 2 new construction condos in University District ($200k) and lost out on both to full price offers the same weekend. This developer doesn't need to negotiate, as sales are coming fast and all at the list price. This same buyer then purchased a new construction condo in Capitol Hill ($270k) at about an 8% discount from list price.

Buyer 2 made a nearly-full price offer on a house in Mt Baker ($250k), only to have another buyer pay full list price (after 4 months on the market) the same weekend.

Buyer 3 purchased a new construction condo in South Lake Union ($400k) at the list price with some financing concessions, as four other lofts in the building sold that same weekend, all at the full listing price.

Buyer 4 found 2 bank-owned condos in Edmonds and Lynnwood ($150k), was too busy with work to write an offer that day, and they were both gone the next day to full-price buyers. Currently has a full-price offer out on a bank-owned condo.

Buyer 5 made an offer of 2% below list price on a small home in Tukwila ($250k), while a competing offer was written above the list price. This home was on the market for 4 months, with no previous price reductions. Some buyers are getting the bidding war mentality.

Buyer 6 just got a contract signed around on a bank-owned home in SeaTac with a nice lake view ($250k). It took a month of negotiation, but this buyer is getting a 10% discount off the list price when we first made contact with the bank.

There are still some deals to be had, so there's no reason to be frenzied about buying a home. First time buyers should get serious, though, if they're trying to meet the November 30 deadline for the tax credit. Short sales will likely not happen in that time frame. Bank-owned homes are still possible, but they need to be under contract in the next few weeks. There will be a surge of home sales in the next month if the tax credit isn't extended, so get ready to make a strong offer and get a transaction moving.

Tax credit extension? Seattle waterfront homes could benefit

There's a big push by lawmakers, real estate professionals, and lobbying groups to extend the current tax credit for home buyers. First time home buyers can currently get an $8000 tax credit for buying a primary home. This credit lasts through November 30, with all transactions needing to be closed by that date to qualify.

There are a number of proposals from Republican and Democrat legislators to extend and even expand the tax credit. While some proposals are for a 6 to 12 month extension, the expanded monetary guidelines could have even bigger ramifications. One proposal is to increase the maximum tax credit from $8,000 to $15,000. This would make a real difference in higher-value markets like Seattle's waterfront homes.

Of course, nothing is certain in politics. There are many more high-profile budget issues at hand, so it's hard to say if these measure will get the attention they need. The only sure thing right now is that the current credit will be in effect through November 30.

Foreclosures in Seattle Rise as Home Sales Stay Strong

The real estate market in Seattle seems to be a tale of two cities. We have the same problems with foreclosures and distressed home sales as any big city in the U.S., albeit Seattle foreclosures are not nearly as prevalent as those in boom/bust cities like Las Vegas, Phoenix, and Miami.
We also have new construction condos in downtown Seattle with slow sales, buyers backing out of contracts, even some buildings being converted to apartments. The over-supply of new condos downtown just can't be consumed--it seems so obvious now. Waterfront homes and luxury homes are particularly slow, as financing is becoming more available but the interest rates are still not as attractive as they could be in the luxury price range.

At the same time, we have pockets of red-hot sales, full price offers, and even bidding wars. I've written a lot about Ballard's single family homes, with median sales times being just a couple of weeks, and some homes selling above the list price. Many houses in Ballard priced under $400,000 are receiving multiple offers within a day or two on the market. Most first time buyers learn quickly that they're going to have to act fast in this market if they're going to get a house in Ballard at an attractive price.

In another hot spot, new construction condos in the University District are selling quickly and at full price. I've been following these condos with some clients. In the first two weeks that these condos came on the market, they've sold faster than anyone expected, without any discounts from the list price. While we wanted to make offers on two of those condos, they both sold at full price without concessions during the weekend. I believe they've sold out 10%-15% of the building in just a couple of weeks.

On Capitol Hill, we've seen some beautiful new construction with a bit more room to negotiate, but sales still strongly picking up in late summer. We've been able to negotiate some significant discounts in sales prices, more typical of the general market, around 5%-10% off the listing price.
It just goes to show you that even if it's a cliche, "All Real Estate is Local." If you're buying a house in Ballard, it's much different than buying a house in West Seattle. If you're selling a condo in the University District, it's much different than selling a condo in Belltown. It's all Seattle Real Estate, but if you don't know the truly local market, you may be swimming upstream.

Sam DeBord and Brian Wiegand
Seattle Homes and Seattle Condos for sale on SeattleHome.com
Seattle Waterfront Homes - RE/MAX Real Estate Brokers

Ballard Home Sales Rising - Why Ballard is a Buyer's Target Market

Ballard is not the most glamorous neighborhood in Seattle. It's sometimes rough around the edges. It can be funky, traditional, grungy, modern, eclectic, and contemporary all at the same.
Ballard

That seems to suit first time home buyers just perfectly these days. Ballard has been one of the hottest markets in the Seattle metropolitan area for young buyers of single family homes. During the summer months of 2009, houses in Ballard have been selling at a median time of less than one month on the market. Considering the national and local numbers for inventory and marketing times of homes, this is a fairly extraordinary statistic. When a well-priced house comes on the market in Ballard, it sells. It's just that simple.

So, why is this neighborhood, known in the past as a grungy, industrial, Scandinavian fisherman's port, now a hotbed of young professionals and home buyers?

There are three main factors working in Ballard's favor. The first, and most important, is home pricing. North Seattle prices are fairly high in general, but many homes in Ballard are in the $300,000 range. There were 13 homes under $350,000 sold in Ballard in the last two months, and there are another ten available right now on the NWMLS. These prices are right in the wheelhouse of a working couple in Seattle. They may be a bit high for a single buyer, but with two middle-class incomes, the $300k range is within reach.
Ballard Seattle

Factor #2 is the proximity to downtown Seattle. While Capitol Hill, Wallingford, and Belltown may offer a slightly quicker commute, Ballard's commute to downtown Seattle is very similar. Just 10-15 minutes from the downtown job core, Ballard commuters have ample options for bus transit and the less-used 15th Avenue corridor for car and bike commuting. Considering the price savings of 20%-50% compared to these other neighborhoods, Ballard is a relative bargain.
The third factor influencing purchases in Ballard is the lifestyle. Ballard could be the most eclectic, varied, and lively neighborhood in Seattle. Belltown has the neon lights, manicures, and fake 'n bake tans. Capitol Hill has the posh party lifestyle. The U District has rowdy college bars and clubs. Ballard has a bit of everything. From hipster bars to low-key fisherman's dives, there's never a "scene" in Ballard. Quiet enclaves have small, simple restaurants. Industrial marine street-ends have "hole in the wall" bars. Popular attractions on Market and Ballard Ave draw the young, professional night life crowd.
Ballard neighborhood

Ballard is really a microcosm of the city of Seattle's evolution. Many of Seattle's neighborhoods retain the traditional feel of the pioneers that developed the area, but new residents have modernized and added their own contemporary touches to the local scenes. While the eventuality of neighborhood progression is inevitable, it's great to see the traditional sectors of Seattle holding strong to their roots and maintaining the identity that makes them unique.

Sam DeBord and Brian Wiegand
Seattle Homes and Seattle Condos for sale on SeattleHome.com
Seattle Waterfront Homes - RE/MAX Real Estate Brokers

Waterfront real estate - Lake Washington Home Sales, Jul '09

Waterfront homes on Lake Washington have slowed a bit in sales as we move into late summer. While the real estate market in Seattle has been strong now for a few months, the lower-priced homes have been the biggest sellers. As more of these lower end homes sell, we should see some more move-up buyers getting into the waterfront real estate market.
Lake Washington Waterfront

There were two waterfront Lake Washington homes sold in July. The first is a large, contemporary home in Kirkland. Sitting on Juanita's Woodland Cove, this 3 bed, 4 bath home is over 4000 square feet. It has a Lake Washington shoreline of over 100 feet, a 3 car garage, dock, and boat lifts--exactly what you'd expect for a luxury waterfront home. Listed originally at $2.75 million, it eventually closed near $2.2 million after about 7 months on the market. Waterfront homes typically have longer marketing times, as their unique nature minimizes the potential pool of qualified buyers.

The second home sold is in Bellevue, just South of I-90. With almost 1/2 acre of land and nearly 100 feet of Lake Washington waterfront, it's a luxury builder's dream. The home was apparently a tear-down/restore project, as it doesn't nearly match most of the homes on the waterfront. The property sold suprisingly quickly, listed at $1.4 million and purchased for just over $1.3 million in less than one month. Expect to see a spectacular home on this lot in the near future.

Sam DeBord and Brian Wiegand
Seattle Homes and Seattle Condos for sale on SeattleHome.com
Seattle Waterfront Homes - RE/MAX Real Estate Brokers

This information not compiled or published by the Northwest Multiple Listing Service. MLS data used, may not include all sales

Ballard Real Estate Stays Strong - Home Sales up 18%

After Ballard's torrid pace of June home sales, it looks like the market for single family homes has stayed strong. Real estate sales of houses and townhomes in Ballard were up 18% in July 2009 vs July 2008. Prices, meanwhile, were 10% lower, making homes more affordable for first time home buyers.
The total inventory in Ballard, and in Seattle in general, has dropped significantly since last year. The latest numbers show about 20% decreases in houses on the market, which has created a fast-moving market. While last month Ballard houses were selling in just a couple of weeks, in July we moved up to a longer, but still relatively quick 36 days on the market. Any seller would be happy to sell in one month.

I've been involved in a handful of multiple-offer transactions in Ballard in the past month, with one home receiving 9 offers on the first weekend it went on the market. While the condo sales are not as strong, the price point for houses in Ballard seems to be attracting a lot of first time buyers. The median sold home price was $395,000, and the majority of first time buyers I'm seeing are in the $250k-$375k range.

I'd look for this market to continue strong sales through the fall as buyers take advantage of the $8000 tax credit. Most will have to have a home under contract in October to qualify, so getting pre-approved and starting the home search by September is a must.

Sam DeBord and Brian Wiegand

Seattle Homes and Seattle Condos for sale on SeattleHome.com

Seattle Waterfront Homes - RE/MAX Real Estate BrokersThis information not compiled or published by the Northwest Multiple Listing Service. MLS data used, may not include all sales

Seattle Homes Selling - Sales Up, Inventory Down in July

According to the latest stats from the NWMLS, home sales in the Seattle area are continuing their summer rebound. Based on the number of calls I'm getting from Seattle buyers who are looking to use the $8000 first time home buyer tax credit before the November expiration, I'd imagine this rally will last later into the fall than the usual cyclical summer real estate surge.

Total real estate sales in King County were are their highest point in two years, while pending sales were up over 10% in King and Snohomish Counties. While prices in Seattle are down about 13% compared to last year, the "losses are lessening" as an optimist once said. Prices were down over 15% earlier in 2009, so things seem to be flattening out.

The biggest surprise was the drop in overall inventory. King County experienced a 20% decrease in the number of houses on the market, a really staggering number. This will surely drive prices up a bit on some new listings, and should keep the home prices from falling any further, at least in the short term.

Sam DeBord and Brian Wiegand
Seattle Homes and Seattle Condos for sale on SeattleHome.com
Seattle Waterfront Homes - RE/MAX Real Estate Brokers