Seattle - Fifth Safest City To Live - Forbes

Forbes Magazine listed the 10 safest cities in America to live, with Seattle checking in at number 5 on the list. The list was based on a number of stats, including crime, workplace accidents, weather, and traffic accidents.
It's not a surprise to see Seattle on this list. Our crimes rates are unusually low for a large city. We don't see a lot of the natural disasters that affect some other cities. Our rare earthquakes have caused little damage, there's been only minor flooding in the city, no tornadoes, hurricanes, and snowstorms are scarce.
America's Safest Cities
Minneapolis-St. Paul-Bloomington, Minn.-Wisc.
Milwaukee-Waukesha-West Allis, Wisc.
Portland-Vancouver-Beaverton, Ore.-Wash.
Boston-Cambridge-Quincy, Mass.
Seattle-Tacoma-Bellevue, Wash.
Providence-New Bedford-Fall River, R.I.
San Jose-Sunnyvale-Santa Clara, Calif.
New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa.
Cincinnati-Middletown, Ohio (tie)
Cleveland-Elyria-Mentor, Ohio/Denver-Aurora, Colo. (tie)

Sam DeBord and Brian Wiegand
Seattle Real Estate Brokers
Seattle Waterfront Homes
SeattleHome.com (206) 552-8820

Bank-Owned Seattle Homes Increase, Still Low

Seattle foreclosures have been rising steadily for the past couple of years, but a new article from CNN Money puts the total numbers in perspective. While Seattle got hit with the real estate downturn much later than most cities, our foreclosures have been increasing while other cities have been slowing.

That being said, our total foreclosure numbers are less than half the national average. Most big cities have real issues with foreclosed homes and distressed properties. Seattle bank-owned homes constitute less than one quarter of one percent of the homes for sale on the market. This is miniscule, and doesn't affect the real estate market much at all at this point. From the article:
The housing market could rebound quickly... "It's down because of economic distress," .... Once job losses end, the city's very diverse and modern companies should drive a quick recovery.

Article from CNNMoney

Sam DeBord and Brian Wiegand

Seattle Real Estate Brokers

Seattle Waterfront Homes

SeattleHome.com (206) 552-8820

Seattle Real Estate and the National Market Stabilizing?

Many economists are predicting that the real estate market has stabilized and will be steady for the near future:
All the leading indicators say housing is definitely on the mend, economists reported in advance of the official release of several pieces of good news expected this week.Bloomberg News surveyed 53 economists and asked them where they expected the numbers to fall. Here are their predictions:
Construction starts in September are expected to hit a 610,000 annual rate, the most since last November.
Sales of existing homes likely rose to a two-year high.
Because of fear of a relapse, the Federal Reserve is predicted to leave interest rates low for a few more months.
Building permits, a sign of future growth, probably rose to a 590,000 annual pace, also the highest level since November, the Commerce Department is likely to announce.
The National Association of Home Builders/Wells Fargo index is expected to rise to 20 from 19, the economists say. Google Inc. plans to resume hiring and acquisitions after its third-quarter sales beat analysts’ estimates. CFO Patrick Pichette says: “We weathered what is an incredible recession. If you have all this behind you, the only outcome you should have as management is: ‘OK, let’s build now.’”Source: Bloomberg, Courtney Schlisserman (10/18/2009)

Seattle Quick Facts

A few interesting points about Seattle, for prospective buyers of Seattle homes, tourists, or trivia nuts:
The name Seattle came from a Native American, Chief Sealth, whose tribe inhabited the area. The pronunciation, "See-AL-tuh-huh", eventually became Seattle.
The U.S. Census Bureau lists Seattle as the most educated city in the US with more than half of residents over 25 yrs old having a bachelor's degree.
Seattle also regularly ranks as one of the most fit cities in the U.S., with large numbers of outdoor enthusiasts (even in the rain).
Most East Coast cities actually have more yearly rainfall than Seattle. The total number of gray, drizzly days in Seattle are high, which give it the reputation as a rainy city.
Seattle sells more sunglasses per-capita than any other major city in the U.S. (we lose them every winter).
The Space Needle, Seattle's most iconic building, was built for the 1962 World's Fair. It now houses a rotating restaurant which makes one full rotation per hour.
Seattle is home to some of the longest floating bridges in the world: Evergreen Point (520) Bridge at 7578 ft, and Murrow (I-90) Bridge at 6620 ft, both which cross Lake Washington.
Boeing, UPS, Microsoft, Amazon, Starbucks, Costco, are just some of the major U.S. companies founded in Seattle.
If you can stand a few gray, cloudy days, Seattle is one of the most interesting and vibrant cities in the world.
Sam DeBord and Brian WiegandSeattle Real Estate BrokersSeattle Waterfront Homes(206) 552-8820
SeattleHome.com

Luxury Foreclosures Sold in Seattle

Foreclosures aren't always boarded-up windows, stained carpets, and concrete-filled toilets. These bank-owned properties are high-end luxury homes that have sold in the Greater Seattle metro this year for over $1 million. Not too shabby for "distressed" properties.

Kirkland - Holmes Point$1,500,000This lakeview home has 6000 sq ft of living space, was built in 2007. It has a boat slip, a theatre, and an elevator. I wonder if any bank executives spent a weekend here "researching" the property.

Seattle - Magnolia$1,350,000This 6 bedroom, 4.5 bath house took just one week on the market to sell. The new owners got a 4700 sq ft new construction home with views of Elliott Bay, the Space Needle, and downtown Seattle. Apparently the outlook from the foreclosure crunch isn't bad for everyone involved.

Bellevue - Downtown$1,300,000This 2008-built house is true Northwest-style construction. It's 4200 sq ft, 5 bed, 3.75 bath, on an 8500 sq ft lot. With this downtown Bellevue location, that's some valuable dirt and a very short commute to some of the best jobs in the region.
Kirkland - West of Market$1,250,000This house has sweeping views of Lake Washington, Kirkland, and even downtown Seattle's skyscrapers. It was on the market for almost a year. 5 beds, 4.5 baths, and a detached 1/1 water view apartment make up 4800 square feet of living space.

Kirkland - JuanitaAdding to Kirkland's total on the luxury foreclosure infamy list is this lakeview, 2005-built beauty. It's 5 beds, 4 baths, and 4600 sq ft. The views are spectacular, and the home has community waterfront access. The styling is very modern, and the use of the view is maximized throughout the home.

Mercer Island - Madrona Crest$1,100,000Mercer Island joins the party with this "modest for this list" home, at just 3500 sq ft. It has 4 beds, 2.5 baths, and was built in 2008. With 10,000 sq ft of land, this is a big Mercer Island lot and a great location.

Yarrow Point$1,000,000This is the oldest of our million-dollar foreclosures, an early 1960s home. The majority of homes on Yarrow Point and Hunts Point are older/remodeled homes, and rately go for less than 6 figures if they have waterfront/water views. This one was snapped up after just 9 days on the market.

Foreclosures are a bad situation for some, but for buyers with the ability to make a sale happen right now, there are some real discounts to be had on luxury and waterfront homes.

Waterfront bank-owned homes in Seattle

There have been a good number of new waterfront foreclosures in the Seattle area. From creeks to Lake Washington waterfront, these properties are usually well-priced.
Surprisingly, there are still three bank-owned floating homes for sale. These properties have been on the market for a while, and are not your average houseboats. They're newly-built, high-end, floating homes with quality appliances and building materials. It takes a unique buyer to live in a floating home, but these seem to be very inexpensive compared to the prices we've seen over the past few years:Seattle floating homes
The highest-end home is a waterfront home in Holmes Point. This Lake Washington waterfront home in in the North end of Kirkland and is listed around $3.5 million. Clearly, if it was still owned by a traditional home owner it would be priced higher than this. There are some real deals for waterfront home buyers available, if they're willing to tread in the waters of bank-owned homes.

Bank-Owned Million Dollar Homes in Seattle

We've seen a slight increase in the number of foreclosures and bank-owned homes showing up for sale on the MLS in Seattle. While most of these foreclosures were low-end homes at the beginning, we're starting to see more luxury homes reverting back to the banks and coming on the market.

Kirkland is a perfect example. While there were only a couple dozen average-priced bank-owned homes on the MLS a couple of months ago, there are multiple million-dollar plus foreclosures for sale today (including a beautiful place on Lake Washington waterfront) -- take a look:Kirkland bank-owned homes

In Seattle proper, there are two homes listed around the $2 million mark. We don't expect to see foreclosures in Leschi, but it's a shock to see one in Broadmoor. These are still high-end, quality homes, they just happen to be owned by a bank now.Seattle bank-owned homes

Bank-Owned Home Listings Staying Flat in Seattle

Bank-owned homes for sale on the NWMLS in the Seattle area haven't shown a significant change during the summer of 2009. Since June, there have been just about 200 bank-owned homes listed for sale in Seattle, Bellevue, Kirkland, Redmond, and Shoreline. The numbers for August and the beginning of September have remained very similar.

This doesn't mean that there aren't an increased number of Seattle foreclosures. Most numbers point to more foreclosures this year than last. We're probably just seeing a delay in these properties coming to market. Banks are not well equipped to list and sell homes, and they take much longer than the average home owner to get a property marketed and ready for sale.

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.

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
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