Luxury and Waterfront Home Buyers Rush Before Jumbo Loan Limits Shrink

Seattle-area buyers of luxury and waterfront real estate are very aware of the upcoming changes in the government-sponsored jumbo mortgage limits.  On October 1st, the current jumbo limit of $729,750 will be reduced to $625,500 in Freddie Mac and Fannie Mae's attempt to scale back some liability.  

The issue for buyers is that retail lenders will not be able to resell these larger loans to FHMC and FNMA any longer.  They'll either have to portfolio these loans in-house, or find another private source to sell them to on the secondary market.  This will very likely result in higher loan costs and rates to the borrowers.

Although this only affects a small portion of the market, it's significant for a buyer of a $1 million property.  Their down-payment requirements for a gov-backed loan like this would now go from $270k to $375k, a substantial difference.  If they don't have that extra down-payment cash, they'll be forced to find a private lender.

There are a good number of buyers in this price range that pay cash for their homes, but it will be interesting to see if those in the financed-transaction category make a big push this summer.  Considering the timeframe and the current favorable interest rates, it might be a wise financial decision.

Current Listings:

Greater Seattle and Eastside Homes For Sale
Condos For Sale
Waterfront Homes For Sale

Sam DeBord
Realtor® | Managing Broker
SeattleHome.com | Coldwell Banker Danforth
ph: 206-658-3225 | email: sam(at)SeattleHome.com
Member NWMLS, N.A.R., WA Realtors, Seattle-King County Realtors

Source: Individually compiled NWMLS data. The NWMLS did not compile or publish this information.

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Lake Washington Waterfront Homes Under $1 Million

One of the interesting side notes of the decreased Seattle-area real estate prices in recent years is the availability of some luxury real estate at prices that were unthinkable in the not-too-distant past.  Lake Washington waterfront homes are some of the most-coveted properties in the Puget Sound region, and a few years ago were virtually all multi-million dollar purchases.

Today, there are 10 homes for sale under $1 million on Lake Washington's shoreline, and a few significantly under that mark. 

The least-expensive waterfront homes usually reside on the Northern and Southern ends of Lake Washington, and these current listings fit that mold.  Cedar Park and Matthews Beach on the lake's Northwestern shore have five waterfront homes under $1 million, Seward Park and Rainier Beach in the Southwest have three homes, Kennydale in the Southeast has one, and Holmes Point in the Northeast has one.

For buyers who have been waiting for a steal on Lake Washington–we haven't seen $700,000 waterfront in a long time. 

Address Price Beds Baths SqFt

14350 Edgewater Lane NE	Seattle	$699,000	1	1.3	1,271
11523 HOLMES POINT Dr NE	Kirkland	$725,000	4	2	2,460
3401 Lake Washington Blvd N	Renton	$829,000	1	1	920
8454 Island Dr S	Seattle	$849,500	3	2	1,670
12562 Riviera Place NE	Seattle	$865,000	5	2.5	2,490
9640 Rainier Ave S	Seattle	$895,000	3	2.5	2,910
10652 Riviera Place NE	Seattle	$939,000	3	1.8	2,000
14730 Edgewater Lane NE	Seattle	$995,000	3	2.5	2,180
1116 Lakeside Ave S	Seattle	$995,000	2	1	1,940
14528 Edgewater Lane NE	Lake Forest Park	$999,900	2	2.8	1,770

 

Sam DeBord
Realtor® | Managing Broker
SeattleHome.com | Coldwell Banker Danforth
ph: 206-658-3225 | email: sam(at)SeattleHome.com
Member NWMLS, N.A.R., WA Realtors, Seattle-King County Realtors

Source: Individually compiled NWMLS data. The NWMLS did not compile or publish this information.

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Current Waterfront Seattle Real Estate Inventory

The greater Seattle waterfront real estate market has started seeing quite a few more listings as the Spring rush is on.  Considering sales are up 15%, waterfront sellers and buyers are probably making the calculation that the market has finally improved enough to test the waters again. 

There are currently about 200 waterfront homes for sale near Seattle.  For King County as a whole, there are nearly 300 homes, and adding Pierce and Snohomish counties brings the total to 617 waterfront homes for sale.  While those numbers sound large, waterfront homes usually only make up 2%-4% of the total inventory of real estate for sale.

Current inventory (includes lakefront, Puget Sound, canal, and Bay waterfront):

Seattle:  63 waterfront homes

Bellevue (including Medina, Yarrow Point, Hunts Point, and Beaux Arts):  39 waterfront homes

Kirkland:  22 waterfront homes

Mercer Island:  22 waterfront homes

Renton, Kennydale:  12 waterfront homes

Lake Forest Park:  1 waterfront home

Kenmore:  6 waterfront homes

Sammamish:  20 waterfront homes

Issaquah:  6 waterfront homes

Redmond:  8 waterfront homes

Sam DeBord
Realtor® | Managing Broker
SeattleHome.com | Coldwell Banker Danforth
ph: 206-658-3225 | email: sam(at)SeattleHome.com
Member NWMLS, N.A.R., WA Realtors, Seattle-King County Realtors

Source: Individually compiled NWMLS data. The NWMLS did not compile or publish this information.

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Sales of Seattle Waterfront Homes Up 15%, Wall Street Journal

I had a chance to speak again this week with Mitra Kalita at the Wall Street Journal about the Spring real estate market, and they're seeing a wide variety of changes in the market.  While sales are up across the board, prices still seem to be slipping in many areas of the country.  That being said, the increase in sales volume is a welcome change, especially in the luxury and waterfront category.  We talked specifically about the 15% increase in waterfront real estate sales in Seattle and the Eastside to start the year, and how cash buyers and relatively low prices have really been moving the luxury category forward.

Increased sales are needed to form a pricing base and settle the market into a flat pricing period.  We're headed that direction in waterfront home sales and the general market at the moment.

WSJ Article - Sales up, prices slip, waterfront sales up

Sam DeBord
Realtor® | Managing Broker
SeattleHome.com | Coldwell Banker Danforth
ph: 206-658-3225 | email: sam(at)SeattleHome.com
Member NWMLS, N.A.R., WA Realtors, Seattle-King County Realtors

Source: Individually compiled NWMLS data. The NWMLS did not compile or publish this information.

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Record $100 Million US Home Sold- Luxury Real Estate Heating Up

The most expensive U.S. residential real estate sale ever was recently closed in Los Altos Hills, CA.  The $100 million home was sold to Yuri Milner, a Russian technology executive and investor.  The purchase, according to the Wall Street Journal, was a 50% cash down payment and 50% seller-financed.

Source:  Wall Street JournalThe home, finished in 2008, has over 30,000 sq ft  of space and is a limestone mansion inspired by an 18th-century French chateaux.  From its private location, it has views of the San Francisco bay, and is located near the Silicon Valley where the previous owners made their technology fortune.

 

This sale is another bellwether for the burgeoning luxury real estate market in the United States.  After recent years of dismal sales, 2010 and 2011 have shown striking increases in luxury home sales across the country.

Locally, sales of waterfront and luxury homes are up across the board.  We've seen sales of multi-million dollar homes double in 2010, and the trend seems to be strengthening in early 2011.  Prices have adjusted significantly in the past five years, and we're seeing real excitement from luxury buyers in recent months.

While marketing times for these unique luxury properties can many times be one to two years or more, the pace of sales has also quickened.  At the end of 2010, we saw a half-dozen waterfront homes on Mercer Island sell in less than two weeks on the market.  These are million-dollar-plus homes, and that pace of selling would have been unheard of in past years.  Financing rates, attractive prices, and the need for a tangible investment vehicle are creating a vibrant market for luxury homes once again.

Sam DeBord
Realtor® | Managing Broker
SeattleHome.com | Coldwell Banker Danforth
ph: 206-658-3225 | email: sam(at)SeattleHome.com
Member NWMLS, N.A.R., WA Realtors, Seattle-King County Realtors

Source: Individually compiled NWMLS data. The NWMLS did not compile or publish this information.

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Kennydale Waterfront Homes on Lake Washington

The Kennydale neighborhood has some of the most-affordable waterfront homes on Lake Washington.   Although the neighborhood just covers a few streets of waterfront, it provides a nice price point for traditional single-family homes with moorage.  The pricing for Kennydale waterfront homes is similar to Cedar Park waterfront on Seattle's north end and a couple of notches higher than Rainier Beach area homes on the South end.  

The limited size of the neighborhood doesn't give us a plethora of sales data, but most waterfront homes sell between $1 million and $3 million, depending on size and lake frontage.  Most homes are traditional single family homes, although there has been the development of the Barbee Mill project which includes some new construction "duet" or "twin" homes with one shared wall.

There are currently four homes for sale on Kennydale's waterfront, with two under $1.5 million and and two over $2.5 million, including one bank-owned home.

Kennydale - Lake Washington Waterfront Homes - Recent Sales

Address Price Beds Baths Sq Ft

3707 Lake Washington Blvd N	$1,250,000	4	3.5	4,090
5117 Ripley Lane N	$1,400,000	5	2.8	3,414
4113 Williams Ave N	$1,600,000	3	3.8	3,550

Sam DeBord
Realtor® | Managing Broker
SeattleHome.com | Coldwell Banker Danforth
ph: 206-658-3225 | email: sam(at)SeattleHome.com
Member NWMLS, N.A.R., WA Realtors, Seattle-King County Realtors

Source: Individually compiled NWMLS data. The NWMLS did not compile or publish this information.

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Lake Union Waterfront Real Estate – Waterfront Home Sales Double

Lake Union's waterfront has seen six home sales so far in 2011, doubling the sales at this point last year.  While the market is and eclectic mix of houseboats, floating homes, and the occasional single family home in Portage Bay, the overall numbers look promising for the general Lake Union waterfront real estate market.

Two houseboats were sold on Westlake Ave and Northlake Way, fairly modern Mike Kelly-built barges at under $150,000.  These are your entry price point into the waterfront market, in rental marinas on Lake Union.

There were three floating homes sold, one on Westlake, one in Fremont on Northlake, and one in Eastlake on Fairview.  These homes ranged from $580,000 to $850,000 and spanned modern angular design to traditional design with contemporary updates.

The top sale thusfar was a waterfront house with moorage on Hamlin St in Portage Bay.  This is a multi-level home built in the 1940s with substantial moorage for a large vessel.  It's a rarity on the Lake Union/Portage Bay waterfront.

Lake Union Waterfront Real Estate Sales - Waterfront Homes Sold, 2011

Address	Price	Beds	Baths
2524 Westlake Ave N	$115,000	2	0.75
2401 N Northlake Wy #E1	$140,000	2	1
2017 Fairview Ave E #N	$580,000	2	1.5
933 N Northlake Wy #14	$727,000	2	1.25
2466 Westlake Ave N #17	$850,000	2	1
1203 E Hamlin St	$1,200,000	4	3.5

Greater Seattle Homes For Sale
Condos For Sale
Waterfront Homes For Sale

Sam DeBord
Realtor® | Managing Broker
SeattleHome.com | Coldwell Banker Danforth
ph: 206-658-3225 | email: sam(at)SeattleHome.com
Member NWMLS, N.A.R., WA Realtors, Seattle-King County Realtors

Source: Individually compiled NWMLS data. The NWMLS did not compile or publish this information.

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