On February 9th and 10th, luxury leaders in real estate from the United States, United Kingdom, Canada, and Europe will come together for the Global Luxury Realty Conclave at the JW Marriott in Aerocity, New Delhi. Realogics Sotheby’s International Realty Owners Dean and Stacy Jones will be joined by Realogics Sotheby’s International Realty Co-Founder Scott Wasner, and Ambili Sukesan, a member of the firm’s Asia Services Group.
Realogics Sotheby’s International Realty to Relaunch UrbanCondominiums.com; Plans New Developments Gallery in Downtown Seattle
What a difference a decade makes. For the first time in ten years, Realogics Group of Companies and its brokers are again representing ten new multi-family for-sale condominium and townhome developments in downtown Seattle and surrounding neighborhoods. Although the project marketing specialists admit the current condo cycle is just a fraction of the last one. Still, the newly announced inventory has spurred the redeployment of a once popular website at UrbanCondominiums.com and a planned opening of a New Developments Preview Center in Belltown. The firm seeks to help prospective homebuyers compare the “new but few” for-sale opportunities in what’s otherwise considered to be anemic condo supply in the city. The reality is despite the rising demand to own, developers (and their construction lenders) have overwhelmingly preferred to build apartments for rent in recent years. In fact, of the 27,000 new housing units being developed in downtown Seattle this decade more than 94-percent of this supply will deliver for lease and not for purchase.
In the early morning hours on January 20th, a collective of neighbors, reporters and casual spectators showed up at 1262 Alki SW to witness the move of a 1950s beach home that was once the residence of longtime community members Fred and Marjorie Dau. As the owners of the former Admiralty House Antique shop, the Dau’s, and their mid-century modern residence, were well known and loved in the neighborhood. Given the home’s storied past, developer Vibrant Cities dedicated themselves to the concept of moving the home, rather than demolishing it.
The lack of new construction closings in 2017 combined with increasing demand for home ownership drove the median home price of downtown Seattle condominiums to $625,000, an increase of $100,000 or 19-percent for the year. That’s significantly higher than the broader perspective offered by S&P/Case-Shiller Home Price Index, which reported the tri-county metro area spiked by 12.7-percent as of October 2017, leading the country in property value appreciation all year. It should be noted that the index doesn’t include new construction or resale properties.
It was a jam-packed agenda at Momentum 2017, yet there were some things left to be missed, as time constraints forced Realogics Sotheby’s International Realty President & CEO Dean Jones to postpone his discussion of where real estate is trending next. In lieu of his keynote, Jones has shared his market makers insights below.
The Realogics Sotheby’s International Realty executive team tapped some of the firm’s top brokers for a series of agent panels and talks to cover relationships and referrals, productivity, best practices, negotiation, new development, and more.
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.
Written by William Hillis, Research Editor, Realogics Sotheby’s International Realty
“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.”
In a recent Sotheby’s International Realty “Extraordinary Properties” feature, Iyna Bort Caruso outlines “The Art of Upcycling,” with a collection of luxury residences that incorporate reclaimed materials “in smart ways to optimize daily life from a personal, ecological and aesthetic perspective.” Among the selected homes is Juanita Farmhouse Cottages, a unique Five-Star Built Green™ in Kirkland represented by Realogics Sotheby’s International Realty brokers Val Burmester and Kemper Dougan.