Q1 2018 Seattle-Eastside Real Estate Report

Q1 Market Snapshot

 

Q1 prices in the Seattle-Eastside region have escalated yet again with no sign of slowing in the immediate future. An unprecedented lack of inventory for sale coupled with rising interest rates has prompted buyers to compete with reckless abandon to win the prize of their very own home, albeit with a steep price tag.

 

Overall median prices in Seattle rose 16.1% to $770,000, while the Eastside rose 13.0% to $944,000. Those regional numbers certainly don’t tell the whole story, especially when you consider the highest change in median sale price was nearly 46% and the lowest was a -4%. New construction sales, or lack thereof, made the biggest impact on home sale prices. Existing homes, offering good walkability or commute options, and those that were on the more affordable end of the pricing spectrum saw the strongest appreciation overall.

 

Rising mortgage interest rates, now up a full percentage point from their lows, are adding fuel to the fire. While not dampening buyer demand yet, further increases will likely begin to price home buyers out of the core Seattle-Eastside region. Homebuyer fear of being priced out of the market is at least partly to blame for the crazed demand at more modest price points.

 

As predicted, many who don’t have a need to be close in to the metro region are choosing to sell at a high and buy more affordably outside of the Seattle-Eastside area. The rate of tear-down new construction infill has escalated at staggering numbers as builders capitalize on the market’s appetite for fresh and new.

 

Buyers today should consider their purchase thoughtfully as buying at or near the peak of the market can limit their resale options when the market corrects. Planning to stay put for five to seven years is a good strategy at this time.

 

Q1 Market Snapshot

SEATTLE

West Seattle leads the pack in median home price growth on the Seattle side of the lake. With its vibrant, hip vibe and convenient access to the city, West Seattle has benefited from Seattle’s commute gridlock—maintaining status quo while other Seattle neighborhoods have come to a halt (literally).

Seattle Report

Queen Anne saw a nice rebound in Q1 after lagging the Seattle averages for some time. South Seattle, with its light rail access, affordable prices, and new vitality, continues to see its real estate market thrive.

Click here to view the complete report for a neighborhood by neighborhood breakdown of Average Sale Price, size, and number of homes sold.

 

EASTSIDE

Significant new home development at higher price points has led the market in West Bellevue and Kirkland and brought up everything else along with it.

Eastside Review

With land values alone higher than average home sale prices in surrounding communities, this growth will have long-lasting impacts that will forever change the flavor of these communities–for better (fresh new housing stock) and worse (the lack of affordable options). Kirkland led this charge with a median sale price 45.9% higher than Q1 last year, followed by West Bellevue at 23.1%.

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

 

MERCER ISLAND

Overall, a much higher percentage of mid-range homes sold in the first quarter than in quarters past, giving the appearance of falling prices. In reality, however, it was actually a downward shift of the segment of the market that is selling.

Mercer Island Report

Don’t let the negative number for Q1 fool you. The market below the two-million-dollar mark is vastly different than the market above it. With the most severe shortage of available homes in mid-range price points Mercer Island has seen, especially early in Q1 this year, the sub $2 million market has been brisk and competitive with strong price escalation. The $2 million and above market has been a different story altogether. While highly desirable homes in that bracket have transacted quickly, many other less notable homes have languished on the market.

Click here to view the complete report for a neighborhood by neighborhood breakdown of Average Sale Price, size, and number of homes sold.

 

CONDOS – SEATTLE & EASTSIDE

Still the only affordable option for many home buyers today, condos have continued to escalate in value with appreciation rates above those of residential homes in many areas.

Condo Report

On the Eastside, new condo and townhome developments in Crossroads and Rose Hill drove prices up to new highs in those communities. Richmond Beach and Shoreline benefited from an infusion of new construction standalone condominium ‘homes’ on very small lots.

Check out all of these factoids and more in the full condo report.

 

WATERFRONT

Waterfront Report

Several significant sales accented an otherwise unremarkable quarter. A $26.8 million iconic Medina estate on 2.5 acres with 150 feet of waterfront set a new benchmark on the Eastside. Two $8+ million homes on the north end of Mercer Island–both newer construction with over 7,000 square feet–set the tone for the Island in 2018. Lake Sammamish, with a $4.2 million sale in Q1, is still in hot demand, while Seattle saw only three modest waterfront sales.

Check out the full Waterfront Report for a complete list of waterfront home sales by address and community.

 


ABOUT WINDERMERE MERCER ISLAND

We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.

 

© Copyright 2018, Windermere Real Estate/Mercer Island. Information and statistics derived from Northwest Multiple Listing Service and deemed accurate but not guaranteed.v


Posted on April 13, 2018 at 2:29 pm
Windermere Mercer Island | Posted in home value, Housing Market, Real Estate Trend | Tagged , , , , , , , ,

Planning ahead: how tax reform will impact your home deductions next year

2018 Tax Changes for Home Owners

 

While you may still be busy filing your 2017 taxes, it’s important to look ahead and be aware of how the new 2018 tax reform laws will affect next year’s return–especially if you’re a homeowner. Those who itemize will need to note some big changes in what they can and cannot deduct. Many will instead choose to use the new higher standard deduction ($12,000 for single individuals and $24,000 for joint returns) rather than itemizing their deductions.

What can you do now? Check in with your accountant for advice specific to your situation and filing status. Also, you’ll probably want to update your withholding amount to reflect the new deduction amounts. In the meantime, here is the skinny on 5 changes that may affect you if you own a home…

 

1. Mortgage Interest Deduction

The deduction that allows homeowners to reduce their taxable income by the amount of mortgage interest they pay has been scaled back.

  • For loans taken out after 12/14/17, you can now only deduct mortgage interest paid on the first $750,000 of combined debt for primary and secondary residences (or $375,000 if married filing separately).
  • Current loans of up to $1 million are grandfathered and are not subject to the new $750,000 cap if they were taken out before 12/15/17 (or if you entered into your purchase contract prior to 12/15/17 and the sale closed by 1/1/18).
  • You can continue to deduct the interest on grandfathered loans even if you refinance.

 

2. Home Equity Loan Deduction

Under the former tax law, you were able to deduct the interest on up to $100,000 of home equity debt even if the proceeds were used for something other than buying or improving the home (for example, an equity line of credit used to pay college tuition). This is now no longer the case.

  • New 2018 law eliminates the deduction for interest on home equity debt unless it’s used to buy, build, or substantially improve the home that secures the loan.
  • Loans to buy second homes do not qualify for the interest deduction if they’re taken out against the equity of your primary home.

 

3. Deduction for Property & Sales Taxes

Tax relief for homeowners who pay property taxes has also been limited.

  • Itemized deductions for property taxes, sales taxes, state income taxes, and any other local taxes will now be limited to a combined total of $10,000.
  • The combined limit drops to $5,000 if married filing separately.

 

4. Deduction for Moving Expenses

While you used to be able to deduct some moving expenses when you moved for a new job, this deduction has been repealed for everyone except active-duty members of the armed forces.

 

5. Deduction for Casualty Losses

Under former law, substantial losses to your home and personal property through things like fires and robberies could be deducted from your taxable income. Under the new law, this deduction is eliminated for everything except presidential-declared natural disasters.

 

Want to know more?

 

The above article is presented for informational purposes only and is not intended to replace professional tax advice from your accountant.

Sources:
“The Tax Cuts and Jobs Act – What it Means for Homeowners and Real Estate Professionals,” by the National Association of Realtors
“5 Homeownership Changes Coming Under New Tax Law” by NerdWallet
“Tax Reform” by the Internal Revenue Service


ABOUT WINDERMERE MERCER ISLAND

We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.

©2018, Windermere Real Estate/Mercer Island


Posted on March 12, 2018 at 10:48 am
Windermere Mercer Island | Posted in Uncategorized | Tagged , , , , , , , , , ,

5 things buyers should never compromise on

When buying a home, there are some things you should never compromise on-or you’ll likely regret your home purchase, according to Realtor.com

  1. The floor plan. It is difficult and expensive to reconfigure a home’s floor plan. If a home doesn’t have the minimum number of rooms or the flow of the main living areas you want, you should cross it off your list.
  2. The school district. You should carefully consider your neighborhood school district, and even get a map of its exact boundaries to make sure your home is within the correct district.
  3. The neighbors. You should pay attention to the condition of neighboring homes. Not only do you have to live with your neighbors on a daily basis, but they can affect your home’s future resale value too.
  4. The budget. Consider all the expenses-monthly mortgage payments, homeowner association dues, utility costs and real estate taxes-beyond the list price to make sure you’ll be financially comfortable.
  5. The commute. Test-drive the route between your home and office to be certain you’re willing to make the commute every day.

Posted on February 13, 2018 at 3:21 pm
Lisa Dong | Posted in buyer |

Eye on the Market_May 2017

Our market has no shortage of qualified buyers and properly priced, listings in most area are selling quickly. In some neighborhoods, homes are selling, on average, in less than 30 days.

Our strong regional economy includes global companies that are attracting workers to our region. These companies impact our local market simply by where they are choosing to locate their offices.
Expedia will move its headquarters to Seattle in 2019. Amazon has announced plans to open offices in Bellevue, in addition to its main campus in Seattle’s South Lake Union neighborhood. REI has chosen to move its main office from Kent to Bellevue by 2020, and Weyerhaeuser has relocated from Federal Way to downtown Seattle.
Buyers searching for affordable homes with reasonable commute times are finding they need to expand their search to include areas to the north and south of King County. With commute times lengthening, listings close to transportation options are shooting to the top of prospective buyers’ must-see lists.
Our region continues to experience price growth resulting from an expanding local economy and population. The most recent Northwest MLS statistics show price increases for single-family homes of 10% in Pierce Country, 15.74% in King County and 17.33% in Snohomish County.
Local economists predict the strong rate of job growth in our state will continue for the remainder of this year, but it is expected to ebb in 2018. The eventual slowing in job growth and anticipated mortgage rate increases towards the end of the year may relieve some of the pressure we’re currently experiencing.
Meanwhile warm weather moves in, and our pleasant Pacific Northwest summers take center stage, attracting even more new residents to our region.

Posted on May 17, 2017 at 9:33 am
Lisa Dong | Posted in Booming Seattle, global real estate, home value, public awareness, Real Estate Trend, Surge Demand, 西雅图房地产市场准确报告 | Tagged , , ,

Amazon Now Hiring 100,000

The South Lake Union-based e-commerce giant announced the plans in January to add more than 100,000 full-time employees in the U.S by 2018. Most of them will be in fulfillment centers, though some will be headquarters jobs in Seattle. There are 9,700 job positions in Seattle listed on Amazon’s job page.

Amazon has about 40,000 Washington State employees in corporate offices and fulfillment centers. The company will have more than 30 buildings totaling more than 10 million square feet in downtown Seattle when its ongoing expansion is completed.

The company said its plans to increase its full-time US workforce to more than 280,000 by mid 2018 from 180,000 in 2016.

Contact me for seeing condos and homes for sale in Seattle.

sources: Puget Sound Business Journal Feb10,2017

 


Posted on February 12, 2017 at 9:43 am
Lisa Dong | Posted in Uncategorized |

February is American Heart Month

#wearred, #Amercianheartmonth

Despite dramatic progress public health has been made in the past few decades, heart disease remains a leading cause of death for men and women in the United States. I am interested in knowing that February has been American Heart Month since 1963. This year, I remember this month and wear red on Feb. 3rd to show the support to people who are fighting with cardiovascular diseases, to promote healthy eating and exercising regularly. Thank you for many innovative companies who continue to offer new tools and systems for people to gain more access of information so that they can be proactive in preventing or treating heart diseases.


Posted on February 3, 2017 at 12:40 pm
Lisa Dong | Posted in public awareness | Tagged , , , , ,

One month after Brexit, its impact on US housing market

When Britons voted to leave the European Union on July 23, 2016, in a referendum commonly known as Brexit, the impact on the British economy — and on Europe’s too — was immediate. Here across the pond, though, it’s not been totally clear how Brexit would affect the U.S. economy, and in particular interest rates tied to mortgages.

A month later, we have a better understanding of how Brexit affects US real estate market. Here are some of the benefits Brexit is bringing us [and a drawback too].

  1. Mortgages will get cheaper. As the impact of Brexit hits our shores, one of the effects is to drive down stock prices, making the safety of bonds look far more attractive. And when bond rates drop because the market is being flooded, interest rates drop as well. Experts indicate that this flood of money into the bond market should delay the Fed’s raising of interest rates, which had been anticipated to happen at least once this year.
  2. Homes will get more expensive. This is great news for sellers. Low interest rates mean more people can get qualified for a loan, flooding the market with wannabe homebuyers and driving prices higher.
  3. Buyers can shop for bigger houses. This seems to contradict No. 2, but right now, lower interest rates also mean that your clients can borrow more money, and it could get them into a home that was previously out of their reach. It’s true that rising home prices will impact this ability, but they haven’t taken off yet, so buying now is a smart move.
  4. Brexit could spark a recession. And that’s good for no one, if the economy destabilizes and incomes freeze or even drop. But having survived one recent market downturn, the country is in a better position to stave off another.

There’s no guarantee, of course, when the market will right itself and the immediate impact of Brexit abates. And there’s no knowing whether a more stable European economy will allow interest rates Stateside to begin to climb again. That’s why homeshoppers need to make their move now and get into a new home while rates are low, home prices have not yet begun to climb and their dollars go further.

brexit

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Posted on August 4, 2016 at 4:03 pm
Lisa Dong | Posted in Booming Seattle, global real estate, home value, Housing Market, Real Estate Trend, seller, Surge Demand | Tagged , ,

How will the 2016 Election Impact the Housing Market?

"Absolutely will!" " Depending upon who occupies the Whitel house in 2017. Historically speaking home prices continue to go up through an election year and indeed the year thereafter. However the rate of growth certainly slows. We can see a very robust price growth in 2016, however 2017 will be another matter entirely." 

"Wall Street is very powerful, but they don't like uncertainty"

                                                             -from Matthew Gardner, Windermere RE Chief Economist

Here Are All The Dates You Need To Know For Election 2016

July 18-21 — Republican National Convention in Cleveland

July 25-28 — Democratic National Convention in Philadelphia

Sept. 26 — Presidential debate at Wright State University in Dayton, Ohio

Oct. 4 — Vice presidential debate at Longwood University in Farmville, Virginia

Oct. 9 — Presidential debate at Washington University in St. Louis

Oct. 19 — Presidential debate at University of Nevada-Las Vegas

Nov. 8 — Election Day


Posted on July 10, 2016 at 7:36 am
Lisa Dong | Posted in Election, Housing Market, Real Estate Trend, 西雅图房地产市场准确报告 | Tagged , ,

Seattle will host 2018 Special Olympics USA Games

On Thursday May 12th, Seattle officials announced to host the next Special Olympics USA games in July 2018, which will mark the games' 50th year since its first International Special Olympics in 1968 in Chicago.

It is anticipated to have 3500 athletes from 50 states to come over to Seattle from July 1-6, 2018. University of Washington will be the venue to host the 16 individual and team sports such as powerlifting, gymnastics, soccer, volleyball etc.

Not only thousands of athletes, but also thousands of volunteers and spectators will gather in Seattle in July, the best month of summer. We can imagine beautiful Seattle showcased once more on a national stage.

As a certified residential specialist and a realtor in King County, Washington, it is my instinct to evaluate the impact the Special Olympics will have on the already heated local real estate demand in Seattle. With so many positive news regarding Seattle’s hosting of big national and international events, I have strong confidence that the local economics and real estate market will grow and be more prosperous than our conservative predication completed in early 2016.

Lisa Dong is an experienced realtor in Seattle area, serving people on their real estate needs since 2010. She can be reached by lisadong@windermere.com.


Posted on May 13, 2016 at 8:43 am
Lisa Dong | Posted in Booming Seattle, Real Estate Trend, Surge Demand | Tagged , , ,

Shen Zhen and Seattle (深圳和西雅图)

This is no better time to invest in Seattle than right now", Seattle Mayer Ed Murray said when he visited Shenzhen, China in May 11th, 2016.

万科与美国房地产投资和开发公司 Laconia Development 签约,双方将共同在西雅图核心地段开发建设一栋 43层出租公寓项目。

该项目和西雅图标志性建筑太空针和亚马逊新建31万平方米企业园区只有举步之遥。

另外,厦门航空还有西雅图市政府,西雅图商会,西雅图机场共同宣布,2016年9月26日将开通厦门-深圳-西雅图航线。这是深圳首条直飞北美的航线。

 

 

 


Posted on May 11, 2016 at 10:19 am
Lisa Dong | Posted in 海外置业 | Tagged , , ,