On December 12th, Jake Whittenberg of King 5 News reported on the “condo conundrum” in downtown Seattle, as the city continues to experience a severe inventory shortage despite rising demand for in-city homeownership. It’s “hard to imagine a shortage in this environment,” Whittenberg says, as he showcases a graphic displaying NEXUS Condominium Tower, one of few projects currently under development in the downtown core that is being offered for sale.
The condominium shortage is officially worse than it’s ever been in King County, as a lack of new construction and increasing demand continue in Seattle and the surrounding areas. As a recent Seattle Times article outlines, condo prices are rising even faster than single-family homes, with little relief in sight as developers continue to build apartments for rent rather than condominiums for sale. Looking at data from the past two decades, King County has averaged roughly 2,000 active condos on the market this time of year but now “it’s down to about 350, a record low.” Conditions have pushed the average sales price of a condominium up to just over $450,000, an increase of approximately $150,000 over three years.
We are just days from the start of winter, and the spirit of the season is definitely in the air, from the cooling temperatures to homes adorned with the twinkle of holiday lights. In honor of the coziest season of the year, we’ve put together a collection of homes that will truly have you walking in a winter wonderland.
The lack of available condominiums in downtown Seattle continues, especially at affordable price points. Currently, there are just 7 resale homes listed for sale on the NWMLS priced below $700,000, which is now the new median home price for resales after increasing a staggering 19% in November 2017 compared to the prior year. Though market conditions may seem daunting to potential buyers, market pundits say unit reservations and presales can offer much needed relief for those willing to plan ahead.
Written by William Hillis, Research Editor, RSIR
“Should the trend since April continue on the back side of the peak home-buying season, it is possible that Seattle’s monthly home price trend could actually turn negative.”
This in fact is exactly what happened, with the Seattle index slipping by 0.28 percent monthly in September. That is not a steep slide, but to put it into context, the Seattle index has been positive for 31 consecutive months. Furthermore, Seattle home prices continue to lead the nation on a year-over-year basis, now for 13 months straight. As reported in the S&P Dow Jones press release, “Seattle, Las Vegas, and San Diego reported the highest year-over-year gains among the 20 cities. In September, Seattle led the way with a 12.9 percent year-over-year price increase, followed by Las Vegas with a 9.0 percent increase, and San Diego with an 8.2 percent increase.”
Dozens of Prospective Buyers Formed a Line Prior to Opening of NEXUS Sales Center; Some Camped Out Overnight
Representatives of Burrard Group and Realogics Sotheby’s International Realty (RSIR) confirmed today that they have sold all 28 City Suites released at NEXUS Condominiums during the Encore Sales Event held on November 18th. Prospective buyers began forming a line at the NEXUS Sales Center at 4:30pm on Friday, November 18th – more than 18 hours prior to the doors opening at 11am the next morning. Initially, Burrard Group said it would offer 16 newly released homes located on floors 28 through 35, however prospective buyers that were patiently waiting in line learned of a special surprise release – an additional 12 City Suites on floors 3 through 6 were also made available. Overall, the 28 homes ranged in price from $340,950 to $667,950 and comprised of a mix of studios and urban one-bedroom floor plans varied from 354 sq. ft. to 498 sq. ft. The new offering was a result of disassembling a larger floor on the higher floors and making available studio units located in the above grade parking structure of the building, which will be accessed across the drive isle. Optional parking was sold for $75,000.
In his latest VLOG series, Realogics Sotheby’s International Realty (RSIR) broker Austin Schneider sat down with Jonas Means of Cutler Investment to discuss baby boomers, a hot topic, especially in Seattle, where the lack of inventory is daunting and is essentially locked up. So, what affect do baby boomers have on the housing market? Can they free up inventory? Where do they go? Schneider talks about one of the largest generations in the U.S. in the video above, and shares his key insights and takeaways below.
Written by William Hillis, Research Editor & Broker, RSIR
Monthly price growth has been slowing, but not among Seattle condos
We might be seeing the equivalent of an end zone dance for Puget Sound home prices. Yet according to the August results of the CoreLogic Case Shiller index, continued slackening in the monthly rate of growth is far from cutting Seattle’s year-long lead nationwide, and Seattle condominium prices have sustained their upward momentum.
Realogics Sotheby’s International Realty (RSIR) presents a look at the housing market trends for the third quarter of 2017, from the shores of Bainbridge Island’s waterfront homes and in-city living opportunities to the Eastside’s most distinguished residences.
In a recent article on Seattle Times, Mike Rosenberg sat down with Reddit to discuss what’s happening with “Seattle’s sizzling-hot housing market,” from rent hikes and growing home prices, to the condo imbalance and the influence of the tech industry.