Q1 2020 Reports: Market Update

Q1 Market Snapshot: Seattle & The Eastside

 

As we are fully entrenched in a new normal amidst the COVID-19 pandemic, it is important to note that the Q1 stats you see are based on pre-coronavirus closed sales activity and therefore largely untouched by our current market reality.

 

While Q1 serves as a pre-coronavirus benchmark, Q2 and Q3 will more accurately show the impacts of the (necessary) stay home order and resulting economic fallout. Our region stands to rebound more quickly than many US markets due to its pre-coronavirus strength.

 

Q1 saw a continued inventory shortage, although many homes were just queuing up to come on the market prior to the outbreak. Mortgage interest rates hit new lows in March (down about 1% from a year ago) bringing the typical monthly payment down significantly. For reference, a 1% change in interest rate equates to about a 10% change in buying power (i.e. an $800,000 home at 3.4% costs about the same per month as a $720,000 home at 4.4% interest).

 

Click or scroll down to find your area report:

Seattle  |  Eastside  |  Mercer Island  |  Condos  |  Waterfront

 


SEATTLE

There were 11.2% more Seattle home sales in Q1 2020 (1,632) compared to Q1 2019 (1,468). Seattle’s median sale price increased by an average of 3.4% in 2019 to $750,000. Lake Forest Park (+8.0%) and Queen Anne-Magnolia (+7.0%) were the area’s top performers. The Central Seattle was down 6.9% over Q1 2019, much of which can be attributed to fewer luxury market sales and a higher percentage of smaller homes transacting during that period.

 

In Q1, 68.0% of Seattle homes (all price points) sold at or above their listed price, while only 13.7% of homes priced above $1 million did so. The average number of days to sell decreased to 41 from 50 in Q1 of the year prior.

 

The highest Seattle home sale was a 1930-built Lake Forest Park waterfront home for $5,000,000 and the lowest was a 1955-built 2-bedroom Skyway home for $215,000.

 

Seattle Q1 2020 Recap

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

 

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EASTSIDE

In Q1, 64.6% of Eastside homes, and 28.6% of homes priced above one million dollars, sold for at or above their listed price.

 

The Eastside median sale price was $989,500 in Q1, up 6.8% over Q1 2019. South Eastside (+18.1%) and Kirkland (+14.1%) performed best, while Woodinville saw a 2.5% decrease in its median sale price. The highest sale was an $11.5 million Medina waterfront home and the lowest sale was a 1960’s Lake Margaret area cottage.

 

Eastside Q1 2020 Recap

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

 

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MERCER ISLAND

Mercer Island has seen a record shortage of homes on the market in Q1 with the lack of homes for sale dominating conversations between buyers and their brokers. There were 56 home sales in the first quarter, with only 6 homes sold below $1 million and 19 with sale prices above $2 million.

 

In Q1, 48.2% of all homes, and 12.5% of homes priced above two million dollars, sold for at or above their listed price. The highest Mercer Island sale was a $4.8 million waterfront home on the north-eastern tip of the Island. The lowest was a $815,000 renovation/rebuild ready rambler on West Mercer Way.

Mercer Island Q1 2020 Recap

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

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CONDOS – SEATTLE & EASTSIDE

Seattle’s condo median sale price was the same in Q1 2020 as in Q 1 2019 ($460,000) with 605 units transacting. The North Seattle (+28.3%) and Richmond Beach-Shoreline (+18.4%) outperformed the region while West Seattle condos were down 5.0% over Q1 of the prior year. In Q1, 53.7% of Seattle condos (all prices), and 3.1% of condos priced above one million dollars, sold for at or above their listed price.

 

On the Eastside, the median sale price was up 6.5% to $490,000. Woodinville (+21.4%) and Redmond (+17.2%) condos outpaced those in surrounding cities while East Bellevue condos sold for 23.2% less than in Q1 2019. There were 528 units sold on the Eastside this quarter.

 

In Q1, 67.4% of all Eastside condos, and 4.2% of those priced above one million dollars, sold for at or above their listed price.

 

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

 

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WATERFRONT

The pace of waterfront transactions has been slowing over the past few quarters, driven in large part by fewer international buyers in the market. Even so, Q1 was markedly off for waterfront sales. The Eastside had 3 private waterfront home sales. Seattle had 8, Mercer Island had 2, and Lake Sammamish had no sales in the first three months on 2020.

 

The highest private waterfront sale in Q1 was on Lake Washington in Medina at $11.5 million. The most affordable waterfront sale was a $1.5 million Beach Drive West Seattle home with 22 feet of waterfront on Puget Sound. Note this report includes privately-owned, rather than shared, waterfront transactions only.

 

This top-level overview of the entire Seattle-Eastside private waterfront market, including Mercer Island and Lake Sammamish, provides a glance into the trends occurring in our region over time. Interesting, and certainly insightful, it in no way replaces an in-depth analysis on waterfront value provided by a savvy broker with years of local waterfront experience.

 

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Find a Home  |  Sell Your Home  |  Property Research

Neighborhoods  |  Market Reports  |  Our Team

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.

2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446   mercerisland@windermere.com

 

© Copyright 2020, Windermere Real Estate/Mercer Island. Information and statistics derived from Northwest Multiple Listing Service and deemed accurate but not guaranteed.


Posted on April 13, 2020 at 7:08 pm
Windermere MI | Posted in Market Reports | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Economic Insights from Matthew Gardner

How will the coronavirus impact the housing market?

 

Concerned about how the COVID-19 pandemic might affect your home value or ability to move in the future?  As we all hunker down through these challenging times, a voice of insight and reason has been our Windermere Chief Economist, Matthew Gardner.  He is expecting a sharp economic slowdown accompanied by a 15-20% reduction in the number of homes sold in 2020—BUT he also believes the housing market will bounce back once we find our new normal.

Click here to watch his latest videos, or scroll down for some key takeaways…

 

 


 

The US economy will contract sharply but should perk up by Q4. 

We’re in for a rough few quarters as the economy enters a recession.  Just how rough—and how long—is still under debate.  What economists do agree on is that the 4th quarter is looking remarkably positive…assuming we get through the COVID-19 crisis and the economy can resume somewhat normal activity before the fall.

 

 


Housing prices will likely remain stable. 

Seattle home prices should remain steady—or even rise slowly as we come out of the recession—for a few reasons:

  1. DIVERSE INDUSTRIES IN OUR AREA which allow us to better weather the economic storm.
  2. SOLID FINANCIAL FOOTING as one third of local home owners have 50% or greater equity in their homes.
  3. STRONG DEMAND with more buyers than homes available, as well as rock-bottom interest rates.

 

 


This will be different than 2008…

We’re experiencing a health crisis—not a housing crisis caused by systemic lending problems like we saw in the Great Recession.

  1. WE’LL SEE A PAUSE, NOT A COLLAPSE. Unlike last time, the housing market was strong going into this crisis and should rebound quickly. Why? Because this recession will be due to specific external factors rather than any fundamental problem with the housing market.
  2. FORECLOSURES WILL BE FEWER with most lenders offering relief to homeowners in distress due to temporary employment issues. Unlike 2008’s mortgage crisis caused by lax lending standards and low down payments, today’s home owners are better qualified and have more equity in their homes.

 

 


 

Find a Home with Windermere Real Estate

 

Find a Home | Sell Your Home | Property Research

Neighborhoods | Market Reports | Our Team

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.

2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446

mercerisland@windermere.com

© Copyright 2020, Windermere Real Estate / Mercer Island


Posted on April 6, 2020 at 11:33 am
Jennifer Craven | Posted in COVID-19, Market Reports | Tagged , , , , , , , , , , , ,

Annual Seattle-Eastside Real Estate Report: A Look Back at 2019

Annual Market Review: Seattle & The Eastside

 

A strong local employment sector, very low mortgage interest rates, and the most balanced market we’ve seen in two decades each contributed to increased sales velocity in 2019.

 

While the number of homes for sale increased overall in 2019 as compared to 2018, the higher rate of sales throughout the year resulted in nearly a third fewer homes on the market at year-end in 2019 than at the end of 2018. The inventory of homes available to purchase in 2020 will be a dominating factor in the local real estate market in the coming year.

 

Click or scroll down to find your area report:

Seattle  |  Eastside  |  Mercer Island  |  Condos  |  Waterfront

 


SEATTLE

There were 9.6% more Seattle home sales in 2019 (a total of 8,362), bringing Seattle back to its typical annual sales velocity following an off year in 2018. Seattle’s median sale price softened by 3.9% in 2019, with the Central Seattle region performing best (-1.6%) and the Ballard-Green Lake region down the most (-4.6%). In the north end of Seattle, Lake Forest Park-Kenmore and Richmond Beach-Shoreline showed the strongest five-year growth trend at 47.1% and 45.5% respectively.

 

In 2019, 53.9% of all Seattle homes sold at or above their listed price. The average number of days to sell jumped notably to 36 from 22 the year prior, indicating movement towards a more balanced market. The upper price segments of the market were far less competitive with just 10.4% of homes sold above one million dollars transacting at or above their list price.

 

The highest Seattle home sale was in Washington Park (Central Seattle) for $13,750,000 and the lowest was a Lake Union houseboat for $80,000.

Seattle Market Recap

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

 

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EASTSIDE

On the Eastside, neighborhoods central to core employment hubs continue to see older, more affordable housing stock replaced with new and more expensive development. On the periphery, reasonably priced homes are highly competitive as home buyers and investors alike scramble for homes that offer greater appreciation potential.

 

Development in East Bellevue, particularly surrounding the Spring District, is predicted to significantly drive prices upward in the coming years as employment centers expand and light rail service to Seattle begins.

 

In 2019, 49.7% of all homes, and 18.8% of homes priced above one million dollars, sold for at or above their listed price.

 

Median sale prices in Eastside cities fared better than those in Seattle, with the overall Eastside median sale price down 1.0% from 2018. Kirkland performed best on the Eastside with a median sale price gain of 3.8% to $1,350,000. Looking at the five-year trend, Kirkland came in on top with a 67.1% increase in its median sale price over the past five years, followed by Juanita-Woodinville-Duvall at 48.0%, and East Bellevue at 44.5%.

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

 

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MERCER ISLAND

Mercer Island, central to the Seattle-Eastside region, held the middle ground with prices softening slightly—not as much as in Seattle, but more than on the Eastside.

 

A total of 299 homes changed hands in 2019 according to Northwest Multiple Listing Service. The highest Mercer Island sale was a $10,050,000 waterfront home on the North End. The lowest was a $685,000 renovation/rebuild ready rambler on West Mercer Way.

 

In 2019, 39.8% of all homes, and 12.7% of homes priced above two million dollars, sold for at or above their listed price.

 

Well-priced homes in move-in ready condition, with good lighting and access, and with functional floor plans, command the most attention from market-savvy buyers hoping to make a good investment in the place they will call home.

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

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CONDOS – SEATTLE & EASTSIDE

The Seattle and Eastside condo markets could not be more different. Seattle has seen the number of available units increase significantly while the Eastside has suffered from a lack of inventory.

Seattle’s overall condo median sale price declined by 9.3% in 2019 to $458,500. The Ballard-Green Lake market was down the most (-16.4%) while Lake Forest Park-Kenmore was the only market not in the red (up 3.3%). In 2019, 45.9% of all Seattle condos, and 2.9% of condos priced above one million dollars, sold for at or above their listed price.

On the Eastside, the median sale price was down 2.4% overall to $469,000. The communities south of I-90 did quite well with a 9.0% increase over 2018. Redmond fared worst with a 15.3% decline in its median sale price. In 2019, 49.3% of all Eastside condos, and 2.7% of condos priced above one million dollars, sold for at or above their listed price.

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

 

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WATERFRONT

The Eastside had 42 private waterfront home sales in 2019. Seattle had 41, Mercer Island had 20, and Lake Sammamish had 31 sales during the same period.

The highest Eastside—and regional—private waterfront sale of 2019 was on Hunts Point for $37,500,000. The highest 2019 sales in the surrounding areas include a Washington Park (Seattle) home at $13,750.000, a north end Mercer Island property at $10,050,000, and a $5,750,000 home on the west side of Lake Sammamish.

This top-level overview of the entire Seattle-Eastside private waterfront market, including Mercer Island and Lake Sammamish, provides a glance into the trends occurring in our region over time. Interesting, and certainly insightful, it in no way replaces an in-depth analysis on waterfront value provided by a savvy broker with years of local waterfront experience.

↑ Back to top


 

 

Find a Home  |  Sell Your Home  |  Property Research

Neighborhoods  |  Market Reports  |  Our Team

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.

2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446   mercerisland@windermere.com

 

© Copyright 2020, Windermere Real Estate/Mercer Island. Information and statistics derived from Northwest Multiple Listing Service and deemed accurate but not guaranteed.


Posted on January 10, 2020 at 6:37 pm
Windermere MI | Posted in Market Reports | Tagged , , , , , , , , , ,