February Posts Nice Volume Gains!

Posted on March 11, 2011 by Julie

February shaped up to be a spectacular month for pending sales volume! High pending sales coupled with lower active inventory resulted in marked improvements of the Months of Inventory and the Absorption Rate ratios. With pending sales double that of February 2010, the numbers clearly reflect the buzz we have been feeling and seeing in the marketplace.

February’s numbers do show lower sales prices, however, when one factors out the bank owned and short sale properties, sales prices have remained very stable. As the activity we are seeing on non-distressed properties continues to increase we will likely see the average sales prices increase somewhat to more truly reflect the mainstream marketplace.

Solid Market Activity for January 2011

Posted on February 10, 2011 by Julie

January shaped up to be a decent month…even compared to pending sales from a year ago when we had the advantage of the home buyer stimulus tax credit! Overall, Mercer Island and the Eastside performed much better than either Seattle or King County—potentially reflecting a trend toward growing demand in the moderate and higher price ranges.

Here is a quick summary of the highlights:

ACTIVE LISTINGS: The number or homes for sale was lower on Mercer Island (-16.9%) and the Eastside (-10.2%) but up in Seattle (+7.4%) and King County (+1.5%).

PENDING SALES: Mercer Island’s pending sales were up 25%; the Eastside was up 5%; Seattle was down 5%; and King County was about the same as a year ago.

CLOSED SALES: Seasonally low and typically reflecting homes that went under contract in November and December, once again Mercer Island and the Eastside were up; and Seattle and King County were down.

AVERAGE $/SQ FT: All areas saw a decline in the Average $/Sq Ft reflecting lower closed average and median sales prices for the month.

SOLD/ORIGINAL LIST PRICE DIFFERECE (%): All areas saw a slight decline in the Sold/Original List Price ratio (Note: Mercer Island had too few sales closed in January to make this a meaningful #)

SALES PRICES: With the exception of Mercer Island, all areas saw lower average and median sales prices. Mercer Island’s # were skewed by a small handful of transactions.

MONTHS OF INVENTORY (Based on Closed Sales): Favorable movement with lower months of inventory Mercer Island was seen on Mercer Island and the Eastside. King County was near even and Seattle was up somewhat.

ABSORPTION RATE (Based on Pended Sales): Aside from firsthand knowledge from the trenches, this is the most accurate measure of the market. It reflects the ratio of pending sales to active listings. The higher the percentage the stronger the buyer market. Seattle showed the highest rate of absorption (24.2%); followed by Mercer Island (22.7%); King County (19.8%) and the Eastside (19.5%).

It’s a New Year: Matthew Gardner’s economic reflections and thoughts

Posted on December 28, 2010 by Lisa Lewis

This week, 2010 is drawing to a close and 2011 is dawning. Economist Matthew Gardner recently shared his reflections on 2010, along with his thoughts regarding 2011, over at Neighborly News.

Gardner delved into 6 economic indicators that are helpful to examine if you are considering a real estate transaction during 2011.

First he examined the Gross Domestic Product (GDP). The GDP only grew by 2.5 % during the 3rd Quarter of 2010. While it was shy of the 3% mark, which indicates solid economic growth, the fact that there was growth is positive. Armed with this information, Gardner anticipates a few things: while he does not see a return to recession during 2011, he indicates that more of the growth during 2011 will occur the second half of the year.

Unemployment, which remained high throughout 2010, will likely see slow improvements during 2011. Gardner suggests that companies will reduce layoffs substantially by the end of 2011, but will hold back on hiring new employees. ” I believe that next year will see the overall unemployment rate drop, but the improvement will be slow; if we end the year at around 8.5 percent I will be happy,” states Gardner.

Regarding real estate, Garnder discusses the how the market is effected regionally. He shares his thoughts about some of the harder hit markets, like Las Vegas, Phoenix and Houston. He also briefly discusses what he expects to see, regarding national real estate pricing trends, before the end of 2011.

Gardner suggests that the growth we’ve seen in consumer confidence in recent months shall continue during 2011. Further, he is not concerned about inflation in the short-term, and projects that “core inflation” will remain below 1%.

Last, he addresses interest rates. Even though interest rates have been rising lately, he does not see indicators that they will rise dramatically during 2011. However, Gardner does suggest the trend regarding rates will be to slowly increase during the year.

I am, as ever, hopeful that the U.S. will show resilience and that better days are, indeed, ahead. ~ Matthew Gardner

Please read his blog post and examine the links he includes in the post. Gardner’s discussion of the US economy is informative and thought-provoking. Best of all, he shares his positive, but realistic, outlook regarding the next 12 months.

5th Straight Week Mortgage Rates Rose

Posted on December 18, 2010 by Lisa Lewis

Freddie Mac reported Thursday that mortgage rates rose again. This is the 5th week in a row that mortgage rates have increased. The 30 year, fixed rate mortage averaged a 4.83 percent interest rate, a level we last saw May 20, 2010.

A quote from Frank Nothaft, vice president and chief economist, Freddie Mac:

“Market concerns over stronger economic growth that, in the near term, could lead to an increase in inflation have sparked a rise in bond yields and mortgage rates have followed.”

Mortgage rate information is something to be watching if you are on the fence about a residential real estate transaction. Please contact a real estate agent if you’d like to discuss a home purchase or sale.

November 2011 Stats Released

Posted on December 15, 2010 by Julie

October 2010 strongest in Last 3 Years

Posted on November 11, 2010 by Julie

While economic uncertainty and caution still greatly impact the Island real estate market, home sales have increased significantly. Softening home prices and more realistic sellers are most likely the biggest instigator of this change with the 4.125% prevailing interest rates weighing in profoundly. Mercer Island continues to see a strong buyer’s market as we move well into the Fall season.

The American Dream: Is it Being Reinvented?

Posted on October 20, 2010 by Lisa Lewis

Matthew Gardner posted an excellent article on the blog Neighborly News about the state of the American dream of home ownership. Mr. Gardner discusses how it appears the dream is not dead, but is actually being reinvented through more realistic expectations. He sites Karl Case’s article A Dream House After All. Mr. Case’s opinion piece examines how the dream of owning a home, if based on the reality of needing a place to live and a stable investment through it’s tax incentives, is alive and well in America. It appears the dream is stronger in those regions not as hard hit with unemployment (like Western Washington), which is understandable.

Home ownership does offer several solid bonuses. Interest rates are historically low right now. The interest on a mortgage is tax deductible. Home prices are more affordable than they were a few years ago. How do these practical benefits shape your personal vision of buying a home? Have your expectations of the American Dream been reinvented?

Open Houses for October 3rd

Posted on October 1, 2010 by Lisa Lewis

Fall has swept into the PNW, riding in on the coat-tails of some spectacular, sunny fall afternoons. Crisp, golden leaves are fluttering to the ground; putting on a sweater in the later afternoon is in order.

This weekend promises to be another lovely fall weekend, perfect for previewing homes. Windermere R.E. / Mercer Island agents will be holding open four Mercer Island listings this Sunday, October 3rd, 1 to 4 PM. The prominent features of these homes include recent remodeling, studio space, privacy and spaciousness. One of the homes is a new listing, with this weekend being its first open house. Details about the listings are below: mls#, price, address and agent hosting the open house.

Mercer Island
93744 l $670,000 l 4830 86th Ave SE l hosted by Erin Ewing
136316 l $769,000 l 7449 Mercer Terrace Dr l Cynthia Schoonmaker
113244 l $899,000 l 7234 91st Ave SE l Diane Rae Jones
136301 l $1,250,000 l 6145 93rd Ave SE l hosted by Lisa Dong

The Mercer Island open house list is ready for pick up. There are 26 homes being held open over the weekend— 3 today and 23 tomorrow. The list prices range from $455,000 to $7,900,000. Please stop by the office for your own copy of the list and coffee-to-go. We look forward to seeing you!