Seattle Home Prices To Rise 25.5% by 2014: Report

Moody's and Fiserv (Case-Shiller Indices) recently studied the most likely housing markets to lead the real estate recovery in the U.S. Washington state came out number 1, with particular attention to the Puget Sound region. Seattle was forecast to have a bullish 25.5% increase in prices over the next 4 years.

The group estimates that housing prices will rise significantly through 2014, and Washington's real estate market will be the strongest in the nation. Despite some recent dreary real estate news, Fiserv's chief economist sees the future as bright for Washington and the greater Seattle metro:

A housing market rebound seems tenuous following the expiration of the home buyer tax credit, and consumer confidence remains weak due to lackluster employment, but David Stiff, chief economist at Fiserv, says the bottom is near. Home prices in the U.S. have declined 29.5 percent over the past four years, according to the Fiserv Case-Shiller Indexes. Stiff says prices should form a trough early next year, when median prices will be down an estimated 32.9 percent from the 2006 peak.

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Top 10 Housing Markets That Will Be Strongest by 2014

1. Washington
Biggest home price increase projected in 2014: Bremerton-Silverdale metro

Forecast 4-year price increase: 44.7 percent
Current median price: $245,000
Prices to reach trough in: 2010 Q1
Median family income: $69,900
Population: 240,860

The Bremerton-Silverdale area, on Puget Sound's Kitsap Peninsula, has the highest growth forecast of all MSAs in the country, with prices expected to jump 44.7 percent by 2014, according to Fiserv. Cathy Doney, general manger for Reid Real Estate in Silverdale, says the waterfront community has benefited from government employment, which has helped sustain the job market, and attracted buyers looking to live close to Seattle at a lower cost. Washington's second-strongest market is Tacoma, with a growth rate expected to be 33.1 percent. Prices in the Seattle area are expected to grow 25.5 percent by 2014.

Index used to calculate historical home price changes: Case-Shiller

 

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Current Listings:
Seattle Homes For Sale
Seattle Waterfront Homes
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Sam DeBord is a Realtor and Managing Real Estate Broker with SeattleHome.com, a division of Washington State Realty, LLC. He is a member of the Seattle-King County Association of Realtors and a Green-Certified Pro. The NWMLS did not compile or publish this information.

Have a question about this waterfront home, or Seattle real estate in general?
Sam can be contacted at (206) 658-3225 or Sam(at)SeattleHome.com.  

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Waterfront Home Sales on The Eastside Surge, Then Slow a Bit

Waterfront real estate sales this summer on the Eastside have been far stronger than in 2009. June sales were particularly outstanding, with July showing a slight downturn which wasn't unexpected after the early summer burst, matching the rest of the market in Greate Seattle.

Thirteen significant Eastside waterfront home sales on Lake Washington and Lake Sammamish closed in June, and four more lakefront sales closed this July. Compare that to 2009 which had just 7 similar sales in June and 3 in July. So far, the summer of 2010 is turning out to be a boon to waterfront buyers, as a portion of the selling market is getting realistic about the correction in luxury and real estate prices. Many waterfront homes have now been priced at a level that fits the current market, and transactions are moving forward at a better pace than the past two years.

The most recent sales were a $1.6 million home on Lake Sammamish waterfront in Sammamish, a $1.782 million protected waterfront home on South Bellevue's canals in Newport Shores, a $1.8 million West of Market lakefront home in Kirkland, and a $5.5 million waterfront estate in exclusive Hunts Point.

Address City Price Beds Baths Sq Ft
July 2010 Sales
2029 E Lake Sammamish Pkwy NE Sammamish $1,600,000 3 2.5 4,299
26 Columbia Key Bellevue $1,782,000 4 2.5 3,970
1433 10th St W Kirkland $1,800,000 3 1.5 1,610
4224 Hunts Point Rd Hunts Point $5,500,000 4 3.5 4,030

June 2010 Sales
4011 E Lk. Sammamish Shore Lane SE Sammamish $815,000 2 2.25 1,770
1727 E Beaver Lake Drive SE Sammamish $950,000 4 2.5 3,380
3268 W Lake Sammamish Pkwy SE Bellevue $1,245,000 4 3.5 4,090
2120 W Lake Sammamish Pkwy NE Redmond $1,395,000 3 2.75 3,720
13253 Holmes Point Dr NE Kirkland $1,700,000 4 2.5 2,520
273 E Lake Sammamish Shore Lane NE Sammamish $1,795,000 4 3.25 3,950
161 E Lake Sammamish Shore Lane NE Sammamish $1,950,000 5 3.25 3,750
1721 E Lake Sammamish Place SE Sammamish $2,000,000 4 4 4,800
4129 E Lake Sammamish Pkwy SE Sammamish $2,305,000 3 3.75 4,183
2401 Killarney Wy SE Bellevue $3,266,050 3 3.75 3,380
3257 Hunts Point Rd Hunts Point $3,900,000 4 3.25 5,022
9455 Lake Washington Blvd NE Bellevue $4,283,000 5 3.5 4,600
9010 NE 47 St Yarrow Point $4,600,000 3 4 3,670
9441 Lake Washington Blvd NE Bellevue $4,900,000 3 3.5 6,590

Current Listings:
Seattle Homes For Sale
Seattle Waterfront Homes
Seattle Houseboats and Floating Homes

Sam DeBord is a Realtor and Managing Real Estate Broker with SeattleHome.com, a division of Washington State Realty, LLC. He is a member of the Seattle-King County Association of Realtors and a Green-Certified Pro. The NWMLS did not compile or publish this information.

Have a question about this waterfront home, or Seattle real estate in general?
Sam can be contacted at (206) 658-3225 or Sam(at)SeattleHome.com.  

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Strong Seattle Waterfront Real Estate Sales Continue In July

 

Waterfront real estate sales in Seattle maintained an even keel in July, as the general real estate market continued to push along through a slow economy. July waterfront home sales in Seattle matched the eight homes sold in June, with two sales being high-end floating homes and the remainder of the sales being traditional single family homes. These numbers are a large increase over the same period last year.

The least expensive waterfront home sales in July were at the extreme ends of Seattle, with a Bryn Mawr home on the South end of the city selling for $650k, and a Cedar Park home on the North end that sold for $700k. Our Lake Union floating home sales closed at $740k in Westlake, and $1.242 million in Eastlake.

At the top end of the waterfront real estate sales were a home in Denny Blaine that sold for $2.15 million, and a waterfront estate in Leschi that closed at $2.625 million.

Overall, the waterfront real estate market continues to outpace 2009's sales numbers by leaps and bounds. July of 2009 had just two waterfront home sales, part of a dismal year of waterfront and luxury home purchases. While sales of these homes are often at discounted prices, the total number of sales month after month continue to strengthen the base of the luxury market and increase confidence for buyers.

June 2010 Seattle Waterfront Home Sales
Address City Sold Price Beds Baths Sq Ft
2401 N Northlake Wy #9-E Seattle $249,138 1 1.5 620
2915 Harris Place S Seattle $400,000 3 2.5 1,910
3415 Sound View Dr W Seattle $575,000 4 3 2,800
9645 50th Ave SW Seattle $1,100,000 3 1.5 2,490
3736 W Commodore Way Seattle $1,350,000 5 2.75 3,930
2481 Perkins Lane W Seattle $1,600,000 2 1.75 2,520
11045 Arroyo Beach Place SW Seattle $2,200,000 3 3.5 3,050
4408 55th Ave NE Seattle $2,500,000 6 3.75 5,450

July 2010 Seattle Waterfront Home Sales
Address City Sold Price Beds Baths Sq Ft
11016 Rainier Ave S Seattle $650,000 2 1.75 1,600
12322 Riviera Place NE Seattle $700,000 4 1.5 1,970
2770 Westlake Ave N #6 Seattle $740,000 2 1.75 1,151
8452 Island Dr S Seattle $810,000 3 2.5 2,390
2600 Fairview Ave E #8 Seattle $1,242,500 3 2.25 2,000
2444 NW Blue Ridge Dr Seattle $1,335,000 4 2.25 3,800
1616 Lake Washington Blvd. Seattle $2,150,000 2 2.5 2,730
1108 Lakeside Ave S Seattle $2,625,000 4 3.25 3,680

Current Listings:
Seattle Homes For Sale
Seattle Waterfront Homes
Seattle Houseboats and Floating Homes

Sam DeBord is a Realtor and Managing Real Estate Broker with SeattleHome.com, a division of Washington State Realty, LLC. He is a member of the Seattle-King County Association of Realtors and a Green-Certified Pro. The NWMLS did not compile or publish this information.

Have a question about a waterfront home, or Seattle real estate in general?
Sam can be contacted at (206) 658-3225 or Sam(at)SeattleHome.com.  

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New Home Sales Rise 24% in June

While the real estate market took a dip after the home buyer tax credits expired a couple of months ago, it appears that the summer boost is coming back.

After May's disappointing numbers, we saw an increase of 24% in new home sales for June, according to the U.S. Commerce department. Sales of new homes rose to an annual rate of 330,000, an encouraging sign for builders and home sellers nationwide.

The home buyer tax credits have propped up the real estate market in the U.S. for at least a year. Their expiration caused a rush at the finish line, and a stall in new transactions immediately after. The big question for the real estate industry was how big the stall would be. Although the new numbers aren't monumental, we are seeing an easing of buyers back into the market and encouraging signals moving into late summer.

Current Listings:
Seattle Homes For Sale
Seattle Waterfront Homes
Seattle Houseboats and Floating Homes

Sam DeBord is a Realtor and real estate broker with SeattleHome.com, a division of Washington State Realty, LLC. He is a member of the Seattle-King County Association of Realtors and a Green-Certified Pro. The NWMLS did not compile or publish this information.

Have a question about this waterfront home, or Seattle real estate in general?
Sam can be contacted at (206) 658-3225 or Sam(at)SeattleHome.com.  

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Seattle's Houseboat and Floating Home Market - Lakefront Real Estate

There are currently about 3 dozen houseboats and floating homes for sale in Seattle. This number is a bit higher than usual, but not particularly far out of the normal range of inventory.

Sales of houseboats and floating homes started out well for the year, but have slowed a bit. We're currently at just 8 sales for the year, while last year at this point just 7 had been sold. This is a luxury/vacation/second home market, which typically suffers in slow real estate markets.

Financing is now available for houseboat vessels, which previously was a big hindrance for buyers. There's still usually a requirement for at least 20% down, but it does break the requirement for all-cash buyers. This should help the market moving forward.

Current houseboats and floating homes for sale:

Address Price Beds Baths
8604 Dallas Ave S $85,000 1 0.75
2730 Westlake Ave N #84 $125,000 1 1
2143 N Northlake Wy #53 $125,000
2143 N Northlake Wy #24 $135,000 1 1
2401 N Northlake Wy #E1 $149,000 2 1
2524 Westlake Ave N #Dock1 $150,000 2 0.75
1080 W Ewing Place $169,000 2 0.75
2401 N Northlake Wy $175,000 2 0.75
2143 N NorthLake Wy #A7 $195,000 2 0.75
2040 Westlake Ave N $224,000 1 1
2143 N Northlake Wy #A-19 $225,000 1 0.75
901 N Northlake Wy $239,000 2 0.75
2401 N Northlake Wy #L7 $274,950 2 0.75
2764 Westlake Ave N #D $325,000 1
2143 N Northlake Wy #27 $339,950 1 0.75
2143 N Northlake Wy #30 $345,000 1 0.75
2401 N Northlake Wy #L-16 $349,000 2 1.5
2764 Westlake Ave N #C $489,000 2 0.75
1409 NE Boat St #2 $489,000 1 0.75
2019 Fairview Ave E #B $495,000 1 1
2235 Fairview Ave E #2 $575,000 2 1
2321 Fairview Ave E #3 $625,000 2 0.75
1214 E Hamlin St #3 $645,000 1 1
2017 Fairview Ave E #N $649,950 2 1.5
1210 E Shelby St #G $739,000 2 1.75
2025 Fairview Ave E $749,000 2 1.5
3130 Portage Bay Place E #A $750,000 4 3
933 N Northlake Wy #14 $799,950 2 1.5
2822 Boyer Ave E #1 $825,000 1 1
2821 Fairview Ave E #10 $850,000
2466 Westlake Ave N #17 $975,000 2 1
10 E Roanoke #1 $1,720,000 2 2

Current Listings:
Seattle Homes For Sale
Seattle Waterfront Homes
Seattle Houseboats and Floating Homes

Sam DeBord is a Realtor and real estate broker with SeattleHome.com, a division of Washington State Realty, LLC. He is a member of the Seattle-King County Association of Realtors and a Green-Certified Pro. The NWMLS did not compile or publish this information.

Have a question about this waterfront home, or Seattle real estate in general?
Sam can be contacted at (206) 658-3225 or Sam(at)SeattleHome.com.  

The Debate Over the "Real Estate Tax" in the New Health Care Law

 

There has been much (uninformed) debate on the web about the possible existence of a tax on real estate sales within the new health care bill passed by Congress and the President this year. It's been called a "sales tax", "transfer tax", "income tax", and some have even said it doesn't exist at all.

Let's set the record straight-no politics, just facts. This is a tax that affects a very small number of Americans directly. It is, however, particularly significant for waterfront and luxury real estate owners. It could also be significant to builders, contractors, tradesmen, and others in the real estate industry who are dependent on real estate sales for their employment. (Thanks to Lane Bailey over at ActiveRain for the thorough analysis of the subject-some of his research points synopsized here).

There is indeed a tax that affects the sale of real estate in the new health care law passed this year.

Starting in 2013, individuals with incomes over $200,000 will have to pay a 3.8% tax on profit from the sale of their primary residence or investment properties over a certain profit threshold. The exact amount will be based on a formula that includes the profit from the property and the income above $200,000. The tax is not an income tax, but rather it is a "payroll tax"... officially it is a Medicare Tax.

This new tax applies to investment income, dividends, real estate profits- all "unearned income".

Here's the gist of it:
A person with an income of $200,000+ purchased an investment property for $400,000.
The home is now sold for $1,000,000, a $600,000 profit.
The full $600,000 profit is applied to the new tax rate of 3.8% ($22,800 new tax) plus the usual income tax rate.
-or-
A person with an income of $200,000+ purchased a primary home for $400,000.
The home is now sold for $1,000,000, for a $600,000 profit.
The first $250,000 profit is tax-free.
The additional $350,000 is subject to the new 3.8% tax, costing $13,300 (plus the applicable income tax).
-or-
A married couple with an income of $250,000+ purchased a primary home for $400,000.
The home is now sold for $1,000,000, a $600,000 profit.
The first $500,000 profit is tax-free.
The additional $100,000 is subject to the new 3.8% tax, costing $3,800 (plus the applicable income tax).

A married couple who makes less than $500k profit on their primary home will pay no extra tax, and a single person who makes less than $250k profit on their primary home will pay no extra tax.

Current Listings:
Seattle Homes For Sale
Seattle Waterfront Homes
Seattle Houseboats and Floating Homes

Sam DeBord is a Realtor and real estate broker with SeattleHome.com, a division of Washington State Realty, LLC. He is a member of the Seattle-King County Association of Realtors and a Green-Certified Pro.

Have a question about this waterfront home, or Seattle real estate in general?
Sam can be contacted at (206) 658-3225 or Sam(at)SeattleHome.com.  

 

Waterfront Real Estate on the Eastside Continues Surge

While Seattle's waterfront real estate market stayed healthy but flat in June, sales of waterfront homes on the Eastside continued to make a big splash.

There were 13 homes sold on Lake Washington and Lake Sammamish last month, including a dozen sales over $1 million and 5 sales over $3 million. That more than doubles the sales numbers in June of '09 when just 6 waterfront homes in this category were sold.

Sales of waterfront homes in Bellevue, Kirkland, Kenmore, Renton, Redmond, Sammamish, and "the Points" have shown healthy growth since late 2009 and are continuing to strengthen the base of the waterfront market. While multi-million dollar transactions were few and far between last year, they're becoming the norm in 2010's market.

Waterfront sales usually peak in late summer, so there's a good chance we haven't seen the best of the sales numbers yet for the year. The greater Seattle real estate market in general seems to be in a bit of a lull right now, but as we saw in Seattle's waterfront sales numbers last month, the top end seems to still be finding some buyers.

Waterfront Real Estate Sales on the Eastside, June 2010

Address
Beds Baths Sq Ft Sold Price

4011 E Lk. Sammamish Shore Lane SE Sammamish
2 2.25 1,770 $815,000

3268 W Lake Sammamish Pkwy SE Bellevue
4 3.5 4,090 $1,245,000

2120 W Lake Sammamish Pkwy NE Redmond
3 2.75 3,720 $1,395,000

13253 Holmes Point Dr NE Kirkland
4 2.5 2,520 $1,700,000

273 E Lake Sammamish Shore Lane NE Sammamish
4 3.25 3,950 $1,795,000

161 E Lake Sammamish Shore Lane NE Sammamish
5 3.25 3,750 $1,950,000

1721 E Lake Sammamish Place SE Sammamish
4 4 4,800 $2,000,000

4129 E Lake Sammamish Pkwy SE Sammamish
3 3.75 4,183 $2,305,000

2401 Killarney Wy SE Bellevue
3 3.75 3,380 $3,266,050

3257 Hunts Point Rd Hunts Point
4 3.25 5,022 $3,900,000

9455 Lake Washington Blvd NE Bellevue
5 3.5 4,600 $4,283,000

9010 NE 47 St Yarrow Point
3 4 3,670 $4,600,000

9441 Lake Washington Blvd NE Bellevue
3 3.5 6,590 $4,900,000

Current Listings:
Seattle Homes For Sale
Seattle Waterfront Homes
Seattle Houseboats and Floating Homes

Sam DeBord is a Realtor and real estate broker with SeattleHome.com, a division of Washington State Realty, LLC. He is a member of the Seattle-King County Association of Realtors and a Green-Certified Pro. The NWMLS did not compile or publish this information.

Have a question about this waterfront home, or Seattle real estate in general?
Sam can be contacted at (206) 658-3225 or Sam(at)SeattleHome.com.  

Connect with me: