On June 7th, Realogics Sotheby’s International Realty broker Chris Doucet was featured in an article in Capitol Hill Times, discussing the latest trends in one of Seattle’s oldest neighborhoods with the latest market data compiled with the help of RSIR Research Editor and Publisher, William Hillis. As the article reads, “Capitol Hill continues to cement its reputation as Seattle’s premier market for potential home buyers. Prospective residents are vying for a limited supply of properties, which is driving prices up in highly competitive bidding. As is the case in the rest of Central Seattle, homes are selling within about a week of hitting the market.” Read the rest of the editorial feature below.
History
Of the original seven hills of frontier Seattle, Capitol Hill is second tallest at 464 feet. Until the early 20th century, it formed the boundary between downtown Seattle and smaller bedroom communities springing up along the shores of Lake Washington. Running northeast from downtown, Madison Street transected the hill to allow weekenders to make their way out to Madison Park, a popular vacation spot of the time. Those who settled north of this road were among the first residents of what became the Capitol Hill neighborhood. This area still offers prime examples of the historical “Seattle Box” architecture of “two-to-three-story single family homes with four main rooms (kitchen, living room, dining room and entrance hallway) on the first floor and three-to-four bedrooms on the second floor.”[1] These homes are highly desirable to homebuyers and restorers seeking an authentic historical residence in one of the Puget Sound’s most iconic neighborhoods. Capitol Hill also offers proximity to downtown, the University of Washington, the Lake Washington shore, and the Eastside by way of the SR 520 Bridge.
Boundaries
As delineated by the Seattle City Clerk’s office, Capitol Hill extends all the way to Madison Park, and is bounded by Madison Street on the southeast. It comprises both Capitol Hill and North Capitol Hill designations, and roughly half of the area designated as Central Seattle by the Northwest Multiple Listings Service, which also includes the “Central Area” recognized separately by the City Clerk. Area real estate brokers have sometimes marked as “Capitol Hill” listings south of Madison Street that are closer to First Hill. To narrow our definition of Capitol Hill, we have set latitude 47.6152 N. as the southern boundary, so that Capitol Hill comprises primarily the sub-districts of Stevens and Broadway north of Pine Street, but also that portion of Montlake south of East Blaine Street and the SR 520 interchange, and a few blocks south of Madison Street east of 23rd Avenue.
Recent Data
Capitol Hill’s infrequency of sales results in some market volatility. However, the value of those sales closely tracks sales in Central Seattle as a whole. On a price per-square-foot basis, the 75th percentile selling price of $576 seen in the first quarter of 2017 only slightly exceeded the equivalent price for Central Seattle generally ($551), while prices in the lower brackets were substantially higher than their equivalents in Central Seattle at large. This is because the Capitol Hill residential value proposition lies between that of the Central Area to the south, and those in the more affluent Madison Park and the elite Broadmoor community to the east. Since early 2015, cumulative days on market have been rather consistently between seven and nine days in Capitol Hill as in the rest of Central Seattle, and though the last 30 days have seen a lull in the luxury market, an analysis of Q1 2017 reveals the days on market was unchanged from the previous year at a single week.
The sharp dip in high-end prices seen in Q1 of 2016 was not repeated in the first quarter of 2017, as the 75th percentile price in Capitol Hill was up 30.7 percent year-over-year at $1.2 million, nearly matching the 2014 Q1 price of $1.23 million. More remarkable however, was the 13.4 percent year-over-year gain seen at the 25th percentile price, which also exceeded the equivalent selling price of the preceding quarter (2016 Q4) by $150,000. Although year-over-year transaction price increases appear more modest in the lower market segments, a different picture emerges when prices per square foot are considered. In this category, year-over-year prices were up 23.9 percent at the 50th percentile (i.e., the median price PSF), and 34.7 percent at the 25th percentile, in comparison with year-over-year increase of 14.9 percent at the 75th percentile. Underscoring the aspirational qualities of Capitol Hill’s value proposition, competition among buyers was more intense in the lower quartiles, with homes selling for nine percent over the listed price at the 50th percentile, and 11.3 percent over the listed price at the 25th percentile.
Recent Broker Sales, Realogics Sotheby’s International Realty
In the first quarter of 2017, RSIR agents Sarah Suhadolnik and Moira Holley sold Capitol Hill homes at $1.68 million and $1.12 million, respectively. Holley, Laura Halliday, Enrico Pozzo, and Chris Doucet are among RSIR’s top brokers who have closed our market-leading listings in Capitol Hill within the past two years. Doucet currently has a North Capitol Hill home located at 1065 E Howe Street in Seattle listed for $1.895 million.