Author Archives: Jennifer

Should I Wait to Move Up?

Posted on by
1

While only you can decide when it’s the right time to purchase a new home for your family, there are some compelling reasons to consider a move now rather than later…

Did you know that sellers moving up to a more expensive home actually fare better when prices are low?  As you can see in the chart below, even move-up sellers who bought in the peak of the market will come out ahead.  This is because the money you save on your more expensive home will outweigh the loss of value on your current home.

While waiting may increase the value of your current home, it will also increase the purchase price of your new home.  According to the latest S&P/Case-Shiller Home Prices Indices–the leading measure of US home prices–prices are already up 7.4% year-over-year in the Seattle Metropolitan area.  If you’re moving up to a more expensive home, this means you’ll actually have less net gain by waiting to sell and purchase your new home.

Rising interest rates will also have a direct impact on your bottom line. Our current 3.4% interest rate represents a phenomenal low. How low? Buyers now actually pay less monthly interest on a median-priced $856,000 house on Mercer Island today than they did on a median-priced $458,125 house back in 1998. Considering wage increases since then, that’s pretty incredible!  However, rates have started slowly creeping up since December and are expected to rise to 4.4% by the end of the year. Even this small change can mean a huge difference in both your monthly mortgage payment and the loan amount you can can qualify for…

A shortage of homes for sale in the current market means less competition for sellers. Right now, there are less homes for sale in the Seattle-Eastside area than we’ve seen in the past 15 years (as long as we’ve been keeping record!). While that might make it harder to find the right home to purchase, it will also reduce the time it takes to sell your current home. Buyers are quickly snapping up homes as they become available, and we’re even seeing multiple offers on homes that are strategically priced and well-prepared for market. Selling your house faster will minimize the typical household disruptions–such as showings and open houses–that you would typically have to contend with during a slower market.

*1: Projected increase based on current 7.4% year-over-price gains for the Seattle area as shown in the S&P/Case-Shiller Home Price Indices.

*2: Projected average 30-year fixed mortgage interest rate in Q4 2013 based on the Mortgage Bankers Association predictions.

Sources:

S&P Dow Jones Indices Press Release, January 29th, 2013

keepingcurrentmatters.com

© Copyright 2013, Windermere Real Estate/Mercer Island.

Good News in the Mercer Island Housing Market

Posted on by
Reply

Hot off the press! Our second quarter reports are out for Mercer Island, the Eastside and Seattle…for homeowners who have been beaten down by bad news over the past few years, these numbers should come as a breath of fresh air!

Mercer Island

Mercer Island enjoyed healthy sales activity during the second quarter of 2012, with both the number of sales and average sales prices showing gains over last quarter.  Condominiums saw the strongest surge, with sales up 100% over last year.  We are continuing to see a low supply of homes for sale combined with increased buyer demand, with homes selling twice as fast on average as we saw last quarter.  With interest rates currently at new all-time lows, buyer demand is expected to remain strong and keep prices stable even as banks continue to sell off their inventory of distressed properties.

Click here for the full report and neighborhood-by-neighborhood statistics.

Full Mercer Island Report

The Eastside

The Eastside housing market fared well in the second quarter of 2012 with a healthy 21% boost in home sales compared to this time last year.  While average prices were down slightly from last year, both condo and home prices posted increases over last quarter.

Our record-low interest rates and continued buyer demand are expected to keep home values stable and overcome the downward price pressure we’ve seen from foreclosures and short sales.

Click here for the full report and area-by-area statistics.

Seattle

The Seattle housing market showed strong momentum in the second quarter of 2012, with the number of single-family home sales up 13.6% from this time last year. Condo sales also saw a huge 32% boost in sales compared to Q2 of 2011. Prices remained stable and even increased modestly compared to last quarter.

We are continuing to see a low supply of homes for sale combined with increased buyer demand. With interest rates currently at new all-time lows, buyer demand is expected to remain strong and keep prices stable even as banks continue to sell off their inventory of distressed properties.

Click here for the full report and neighborhood-by-neighborhood statistics.

Full Seattle Report

I-90 Closures for the Blue Angels

Posted on by
Reply

Seafair Weekend is almost here, and the Blue Angels are returning again for thrilling aeronautic displays over Lake Washington!

Catch the full show Friday, August 3rd, Saturday August 4th and Sunday, August 5th from 1:30-2:30 pm.

Because the FAA requires the I-90 bridge to be closed to all vehicle, pedestrian and cycling traffic during all Blue Angels practices and shows, the I-90 bridge will be closed between Island Crest Way on Mercer Island and I-5 in Seattle during the following times:

- Thursday, August 2nd: Closed 9:45am-12 pm and 1:15pm-2:30pm

-Friday, August 3rd: Closed 12:45pm-2:40 pm

-Saturday, August 4th: Closed 12:45pm-2:40 pm

-Sunday, August 5th: Closed 12:45pm-2:40 pm

Find more info at wsdot.wa.gov or seafair.com

How Did Real Estate Do in 2010?

Posted on by
Reply

2010 Year in Review by Windermere Mercer IslandIt’s that time of year where we look back at what the real estate market did in 2010 and speculate about where home prices and values might go as 2011 unfolds. Most of the news is good…prices are slightly up across the region and sales activity saw a healthy boost. Scroll down to find more details on your area!

Mercer Island continued to tread water through much of 2010. While sales prices increased slightly during the year, buyers got far more home for their money–about 450 more square feet for nearly the same price. With markedly lower prices and more favorable jumbo financing terms, waterfront home sales more than tripled to a count of 27 in 2010 compared to 7 in 2009.

The condo market continued to struggle in 2010 with an oversupply of units on the Island and also in the downtown core markets of Seattle and Bellevue. However, lower prices have boosted sales and begun to reduce the number of available condos–a first step toward stability.

Short sales and bank-owned properties made up only 10% of all homes closed (23 of 220)-the lowest level in the Seattle-Eastside region. On the other hand, they accounted for a remarkable 40% of all condos sold on the Island in 2010 (16 of 40)-the highest level in the region. Click here for a full report.

The Eastside real estate market showed the greatest strength of any area in the Puget Sound region in 2010. Gains were seen nearly across the board with a year over year increase in sales of more than 12%. Sales of homes priced above $1 million increased 29% as high-end buyers took advantage of rock bottom prices and favorable interest rates. Bank-owned properties and short sale transactions made up just over 17% of all homes closed, 911 sales, throughout the year.

The bad news for The Eastside was the continued decline of the condo market, with sales prices and cost per square foot now down to 2005 levels. 2011 will be a year to watch as potential buyers, banks and developers set the tone for demand, prices and stability throughout the Eastside region. Click here for more.

The Seattle real estate market posted its first year over year price gains since 2007. Cost per square foot, days on market and list price to sales price ratios all indicated a return to stability and balance after two years of freefall. Current prices land somewhere between those of 2005 and 2006 levels-bringing affordability to its highest levels in recent history. Sales of homes priced above $1 million increased 27% due to low prices and record-low interest rates. Bank-owned properties and short sale transactions made up just over 13% of all homes closed, 773 sales, throughout the year.

The Seattle condo market was very diverse with some buildings posting strong sales and others faltering. Stability will only come when demand meets up with the over-supply of available units for sale. With no new construction permits expected to be issued for condos for some time, we could see a shift by 2012 as buyers snap up the available supply of units for sale. Click here for the full Seattle report.

While the days of falling prices appear to be behind us and double-digit appreciation only a faint memory, 2011 and the years ahead should see slow and steady appreciation of 1% to 4% per year. Interest rates will likely begin to volley in an upward direction spending much of the year in the 5% to 5.5% range.

Find more up-the-minute trends on our website.

Tips to Improve Your Home’s Curb Appeal

Posted on by
Reply

Clean, clean, clean. Remove the vegetation growing in cracks in concrete walkways or between paving blocks, wash down the siding, clean the roof and gutters, wash the windows, and make your home look move-in fresh. Don’t forget outbuildings and storage sheds.

Spruce up the yard. Mow and edge the lawn, and get rid of weeds, leaves and dead branches. Cut back shrubs that are hiding your home’s beauty, especially around windows. Beds or pots of annuals add a splash of color and make the home feel cared-for.

Make it new again. If the patio furniture or backyard play equipment is past its prime, give it a new coat of paint or remove it. A fresh, neutral coat of paint on the house can make it look new, and contemporary color schemes can take years off an older design style. Tasks such as refinishing a deck or recoating a driveway with asphalt can have big payoffs.

Make the entryway say “welcome.” Your door makes the first close-up impression. Consider replacing it with one that’s more stylish, paint it a contrasting color, or add some new hardware such as a kickplate or door knocker. Adding a seating area can also make the entryway more inviting.

Dress up your windows. Add some shutters or planter boxes to give the “eyes” of your home some soul.

Three ways to evaluate your home’s curb appeal:

Park where a potential buyer would, and walk towards the house. Can you see the best features of the house, or are they blocked by shrubbery? What detracts from the appeal of the home? A cracked driveway? Water stains below the gutters? Address those first impressions first.

Take digital photos of the exterior. Look at color photos first, then look at them again in black and white to see problem areas more clearly without the distraction of color.

Evaluate your home at different times of day and from different angles. Take another look at your home at dusk. Would additional lighting make your home more attractive? People will try to drive around to see your backyard. If you have an alley, how does your home look from that angle?

See our free Guide to Selling a Home for even more tips from the pros.

Second Quarter 2010 Review for Mercer Island Real Estate

Posted on by
Reply

View the PDF

Join us for Community Service Day on June 18th!

Posted on by
1

Each year, Windermere Real Estate agents, managers, owners and staff from more than 300 offices across the Western United States gather together and devote their workday to making a positive change in the neighborhoods they serve through local service projects and volunteerism.

For this year’s Community Service Day, our locally-owned Mercer Island office will be teaming up with EarthCorps and members of the public to restore Wildwood Park on the island’s south end.  We will be removing invasive plant species (such as English Ivy and Himalayan blackberry) as well as weeding and mulching to maintain the park. Our goal is to restore the native plant community, thus creating a healthier native ecosystem.

We invite you to pitch in and help!  Tools and gloves will be provided by EarthCorps…

Friday, June 18th, 9am-1pm
Wildwood Park
7400 86th Ave SE
Mercer Island, WA 98040
Map

Windermere’s Community Service Day was established in 1984 to offer agents and staff a chance to volunteer an entire workday to give back to the neighborhoods in which they live and work.  Windermere’s Community Service Day has been recognized nationally as a model hands-on volunteer program and has been adopted by other real estate companies and businesses around the country.

10 Tips for Earth-Friendly Home Improvements

Posted on by
Reply

With the rising costs of heating and cooling, plus growing concern about the environment, “green” is the new direction in home building and renovation.  An added benefit of earth-friendly remodeling is that it helps protect the health of your family by reducing pollutants within the home.  Here are some tips for making your next home remodeling project one that’s kind to the planet…

1. Maximize natural light.  Use skylights and well-placed mirrors to reflect natural light and help reduce lighting costs.

2. Use reclaimed or sustainably-harvested materials (such as bamboo or cork) whenever possible, and avoid wood composites that contain glue or formaldehyde.

3.  Try to buy materials produced within a 500-mile radius of your home to minimize the use of fuel for transportation.

4.  Choose paints low in volatile organic compounds (VOCs) instead of latex-based enamel.

5. Use more efficient insulation made from less toxic materials.  Some options today are formaldehyde-free and consist mostly of recycled newsprint, cotton or glass.

6. Install energy-efficient furnaces, air conditioners and appliances.  Statistics show that if one household in 10 bought Energy Star-rated heating and cooling equipment, we could reduce greenhouse gas emissions by the same amount as taking 1.5 million cars off the road.

7. Opt for hardwood floors over carpets, which can emit harmful chemicals and harbor mold.  If using carpets, tack them down instead of gluing them to reduce toxic emissions.

8. Use pro-green roofing alternatives such as rubber and plastic or vinyl and cellulose fiber.

9. Replacing old light bulbs with compact fluorescent light bulbs (CFLs) can trim 5 percent from your monthly electrical bill.  If every American home swapped just five incandescent bulbs for Energy Star CFLs, it would keep 1 trillion pounds of greenhouse gasses out of the air and save $6.5 billion in energy costs.

10.  To conserve water, install low flow toilets.  If you’re redoing landscaping, consider reducing the size of your lawn, or install environmentally friendly turf grasses that use less water and require less mowing and fertilizer.

Is the grass really greener on the other side? Take a virtual tour and find out at windermeremercerisland.com

How do interest rates impact your buying power?

Posted on by
1

Many of us are on the fence about whether we should buy and/or sell in our current market, and for good reason…we’ve heard that values are down and foreclosures are up. It’s a scary world out there.

Fortunately, that’s only part of the story. The bigger, more exciting news is that our historically low interest rates coupled with affordable home prices have created an incredible opportunity to buy. How incredible? Let’s just say we may never see this kind of buying power again in our lifetimes. Why is this?

Interest rates directly affect the amount of house you can afford. For example, someone who qualifies for a $700,000 house at a 5% interest rate would only be able to afford a $564,000 house if rates went up to 7%. Over the past 30 years, the average conforming interest rate was 8.998%. As of June 1st, 2011 it was 4.5%.

With interest rates predicted to rise in mid-summer, now just may be the best time to jump off the fence and invest in your future…

See every listing from every company at WindermereMercerIsland.com

This article is not intended as an offer to extend credit nor a commitment to lend. The loan interest rates, fees and terms presented here are for illustrating purposes only and may not be currently available. Payment estimates courtesy of Windermere Mortgage Services.