UBL 2017 Market Update
“Spring Fever”
It may be cold outside, but it sure feels like Spring in our office! By Spring, I mean the Spring Real Estate market. Buyers are on the hunt early this year and are very deliberate with their search for property – but a lack of inventory has them frustrated. 2017 is shaping up to be much like 2016 with a huge advantage for sellers because so little is available. As I write this article in early January, nothing is for sale at Towers other than a $13.9 million penthouse. The same goes for One Main. Never has there ever been such low inventory in the most popular buildings. What does that mean for you? That the timing of selling your unit could not be more perfect! This is the time to sell. On the Eastside, inventory has not been this low in over 20 years! This is a huge opportunity for those of you who are considering a move. Today, prices have increased greatly in comparison to exactly one year ago. Not ready to move but curious about the value of your unit? No problem! Give us a call and we would be more than happy to meet with you to give you an idea of what your unit is worth today!
Do you like numbers?
- In December of 2016, 51% of homes sold at or above full price. A year earlier in December of 2015, it was virtually unchanged at 52%. The homes that sold above the asking price well exceeded the listing price by an average of 4%. However, there are cases of 10% or more. Properties that sold over the listing price went pending in an average of just 8 days. Advantage = Seller.
- Today, the median closed sale price on the Eastside is $803,500. At the end of 2007, the median closed sale price was $589,500.
- Over half the homes sold in November & December sold at or about the listing price with the median difference from list price of 4%.
What about rising interest rates?
While so many are talking about rising interest rates, we can tell you that home sales in the Urban Bellevue market or anywhere else around Seattle are not slowing down. For example, an $800,000 home with a 0.5% increase in interest rate reduces buying power by about $50,000. Combine this with a 13% increase in home values in 2016 and you can see why buyers are more concerned than ever of being priced out of the market. Because of this, more buyers are jumping in the market. Lastly, about 25% of units sell for cash and interest rates, appraisals, and underwriters are irrelevant on a cash transaction. Regardless of interest rates, the proximity to Downtown Bellevue will increasingly become more important.