ResalesHome Sales Are Sleepless In Seattle
Low new-home inventory and low interest rates are combining to help ease Seattle"s buyer"s market into a seller"s market, say local Realtors.
"As last year came to a close, home sales continued to go up in all Seattle neighborhoods, with an average sale increase of 17 percent," says Realtor Ricklie Stone, "Capitol Hill and Madison Park homes sales were up nearly 30 percent as the year came to a close. Average home prices in Roosevelt and Northgate neighborhoods jumped 7 percent compared to 2002. Greenlake, Wallingford and Ballard homes were selling 14 days faster than the year before! New market data shows that inventory is down 14.1 percent from a year ago. At the same time, home sales have increased 9.6 percent. This is the tightest supply to demand since 1990! At the same time, building permits in King County are down 45.8 percent from this time last year. With interest rates their best in 40 years, our market is sizzling and is expected to stay robust throughout the spring.
Stone advises, "If you"re a Seller, this is an incredible time to put your home on the market. Multiple offers are the norm at the moment and are netting Sellers tens of thousands of dollars over the list price for homes. If you"re a buyer in the $700,000 and under range, prepare to be as competitive as possible with the terms of your offer and to act quickly when you see "your" home!"
Says Realtor Lauri Huston, "New listings in January increased slightly and the buyer"s market continued to show steady activity. Because of the continuing low interest rates, there are still more buyers looking to purchase than sellers wanting to sell. Properties that are in average-to-good condition and priced correctly from the day they are listed tend to go very quickly for full or close to full price."
Huston suggests, "If you are considering selling your home, this is the ideal time to do so, because your home won"t have as much competition as it does in warmer weather. If you are considering buying a home, there are still good prices and homes are more affordable due to the low interest rates. Interest rates have actually taken a small drop. Overall interest rates have held steady for the last quarter and appear to be on the same trend for 1st Quarter 2004 and into the 2nd Quarter 2004."
Notes Realtor Rebecca Haas, "Appreciation continues to build in the neighborhoods surrounding the core downtown area."
Haas explains, "With inventory in early 2004 down from the previous year it has become a bit more of a seller"s market in the Seattle area. However, there are still good deals that come on the market all that time, which means that the savvy investor needs to be able to move quickly when these opportunities present themselves. With interest rates continuing to stay low, it is an excellent time to look into investment property as many economic trends are lining up to make the next three to five years a good time to own rental property in the Seattle area as rental rates are starting to climb again and vacancy rates are dropping. The Ballard area has maintained a 2.5 percent vacancy rate even throughout our recent period of typical 7-10 percent vacancy rates. New construction cannot keep up with the housing needs of this beautiful area. The job market still may not be as strong as local industries and government officials would like but that hasn"t stopped many people from wanting to move into our gorgeous location."
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