Artist’s House in Edmonds

This updated rambler home in Edmonds has a lot going for it, but for some reasons the gardens of this landscape artist’s home caused me to post this. Something about them grab my attention and won’t let go. Brick paths lead through several planting areas and cozy private spaces. There are two outbuildings that could be studios or offices too.  The present owner is a landscape artist and has made a very nice environment.

The house itself is on one level, has had many recent updates, skylights, office, and the great room living space flows very nicely outside to the patio. It’s located within walking distance to both PCC and downtown Edmonds for shopping, dining and entertainment. Now priced at $324,950

Seattle Area February Market Update

Housing market “healing itself,” numbers are “astoundingly good”

NWMLS KIRKLAND, WA. (Feb. 6, 2012) – Pending sales may not appear to be much higher than 2011 (up 13.7 percent in January), but the numbers are “astoundingly good,” considering such factors as harsh weather and the tax credits that boosted sales at this time a year ago, said Ken Anderson, president and designated broker at Coldwell Banker Evergreen Olympic Realty in Olympia.

The latest figures from Northwest Multiple Listing Service show pending sales in January outgained the same month a year ago by 739 transactions.  Brokers reported 6,132 mutually accepted offers in January to start the year with a 13.7 increase over the January 2011 figure of 5,393 pending sales.

“Given that we lost a week with some of the worst weather in 16 years, the numbers are astoundingly good,” remarked Anderson, a director for Northwest MLS. “This is the first January in four that we can make a reasonable year-over-year comparison,” he added, noting numbers are no longer skewed by the artificial stimulus of various tax credits and incentives that date to 2009. “The improvement in the numbers show that the market is healing itself and standing on its own.” Anderson commented.

Declining inventory, extremely low interest rates, and positive job growth are contributing to rising optimism among industry professionals, but Northwest MLS directors say distressed properties continue to be a drag on the market’s recovery.

Inventory is down almost 20 percent from a year ago. Brokers added 6,666 new listings to inventory during January, with single family homes making up about 85 percent of those additions. At month end, MLS members reported 26,226 total active listings; a year ago, there were 32,647 active listings.

Despite the smaller selection, the price choices overall are wide ranging, from a low of $13,000 for a manufactured home in Sultan to an asking price of $26.8 million for a waterfront home on Mercer Island.

Snohomish County reported the sharpest drop in inventory, with the selection at about two-thirds of the year-ago levels (a decline of 32.6 percent).  Several of the 29 MLS map areas within King County also reported declines of 30 percent or more in the total number of active listings.

“The ongoing reduction of available inventory is still impacting the market,” said OB Jacobi, president of Windermere Real Estate and a member of the Northwest MLS board of directors. “We have plenty of qualified buyers who are ready to buy if they could just find a home,” he noted.

The lower number of new listings coming on the market is due to a combination of factors, said J. Lennox Scott, CEO and chairman of John L. Scott Real Estate.  Among them, he mentioned underwater sellers (who owe more on their homes than the current value), sellers with equity holding off for higher prices, and the lack of new construction/condominiums. “The low number of new listings combined with the increase in sales activity is creating the shortage of homes for sale in specific areas and price ranges,” Scott reported.

Northwest MLS reported 3,469 closed sales last month, up nearly 8.2 percent from a year ago when members reported 3,207 completed transactions.

“A sellers’ market has returned in the areas close to the job centers of Seattle and Bellevue, up to the one million dollar price point,” Scott noted, adding, “We are also seeing the same situation in the more affordable price ranges in the surrounding market areas, caused by a shortage of inventory and healthy-to-strong sales activity.”

Echoing that sentiment was Northwest MLS director Frank Wilson, who said, “Inventory in many price points and locations is dropping and what buyers are finding are overpriced or under staged homes.” Wilson, the branch managing broker at John L. Scott Real Estate in Poulsbo, also foresees upward pressure on prices as choices become narrower.

For now, however, prices are showing mixed signs –stabilizing in some areas while declining or increasing in other areas.

The median price for last month’s closed sales of single family homes and condominiums (combined) was $214,990, down about 11.7 percent from a year ago when the median selling price was $243,500.  The price changes ranged from year-over-year increases reported in five counties (Ferry, Grant, Kittitas, Mason, and Pacific) to declines of up to 40 percent (in Clallam and Grays Harbor counties).

“Price increases are muted by short sales and foreclosures that are causing low appraisal values,” observed Scott.

MLS directors Jacobi and Wilson agreed.

“We are simultaneously seeing the continued rise in pending and closed sales,” Jacobi stated. “Usually pent up demand and rising sales means that prices will be going up. But, unfortunately, that isn’t the case thanks to the high level of distressed properties that continue to drag down the entire market,” he explained.

“What is tempering our real estate recovery in Kitsap and much of Puget Sound are the short sales and REO properties that are on the market and the way the banks are dealing with their sales process,” said Wilson, while pointing to several encouraging signs.

All the pieces are in place for a more normal market in much of Kitsap, Wilson said. “With pending sales up 17 percent in Kitsap, buyers are taking advantage of the values this market is offering and the extremely low interest rates. If this trend continues we should begin seeing price appreciation as we progress into the year,” he remarked.

Improving numbers show the artificial stimulus of the tax credits was not the key to the recovering market, suggested Anderson.  “Instead, today’s affordability has buyers in all price segments returning – and feeling more confident about the future.”

Northwest MLS director Darin Stenvers believes “the perfect storm is brewing.”  He said the pent-up need for homes in good condition is creating shorter market times and sales close to the original asking price. “It is a great time for sellers who have been waiting,” said Stenvers, the office managing broker at John L. Scott Real Estate in Bellingham.

“The market is almost done with the needed correction,” Stenvers stated, adding, “Distressed homes and REOs are not going away fast but have slowed and should soon level off.” He also foresees a loosening of overly restrictive lending guidelines.

Reflecting on a real estate career that dates to 1990, Wilson said, “I remember at the height of the market people would say ‘I wish I would have bought some waterfront back in 2001…or I wish I would have picked up a couple of rentals a few years ago’.”  For these people, “the clock has been rolled back and you now have an opportunity to purchase real estate near the bottom of the market,” he suggested.

Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership includes more than 22,000 real estate brokers. The organization, based in Kirkland, Wash., currently serves 21 counties in Washington state.

Tiny Houses for SERIOUS Downsizers

These are for SERIOUS downsizers! Houses/sheds/spheres from 89 to 500SF, Plus a unique bed that rises to the ceiling to create living space underneath. Includes links to manufacturers if you want one

I think this one from local Modern Shed is the best looking, and the Zero House (#7 in the slide show) is amazing in it claims to be completely self-contained off the grid, including water and waste.

See slideshow of  Tiny Houses here

 

 

Healthy Marketplaces Emerging

There’s more good news this month.  Overall inventory is down to a 5 month supply,  which means a balanced market that is leaning to the sellers’ favor. Some areas like Ballard have less than 3 month’s inventory, with, you guessed it, lots of mulitple offers.   For the second month in a row, the number of sales has exceeded new listings.  And yes, prices are starting to level in places with less foreclosure activity.

Here’s the press release:

NWMLS KIRKLAND, WA. (Jan. 4, 2012) – Home sales finished the year much stronger than they started, with pending sales for the fourth quarter outgaining the first quarter by more than 3,000 transactions for a 21 percent increase, according to new figures from Northwest Multiple Listing Service.

A year-over-year comparison shows December’s pending sales (mutually accepted offers) rose more than 20 percent from a year ago. Northwest MLS brokers reported 5,237 pending sales last month, up from the previous year when they recorded 4,359 transactions.

Last month’s pending volume exceeded the number of new listings (4,604) for the second consecutive month. The last time such an imbalance occurred was November 2006.

Closed sales also outgained year-ago totals. December’s completed transactions were up 7 percent from twelve months ago, rising from 4,430 closings to 4,741. Six counties registered double-digit gains (Grays Harbor, Jefferson, Pacific, Pierce, San Juan, and Snohomish).

Following the pattern of recent months, prices were down. The median price for December’s closed sales of single family homes and condominiums declined about 11.8 percent from a year ago, dropping from $255,000 to $225,000. Brokers attribute much of the slip in prices to the number of distressed properties in the mix. In some areas, foreclosures and short sales, which tend to be sharply discounted, account for about one-third of sales.

Also trending downward is inventory. Brokers across the Northwest MLS service area, which encompasses 21 counties, added 4,604 new listings last month, down from the year-ago total of 5,460 listings. With those additions, there were 26,639 active listings in the MLS database at month end, a drop of more than 5,500 listings from a year ago (a 17.2 percent decrease).

For the Northwest map areas covering Seattle, inventory is down 30 percent compared to a year ago.

“All over we are seeing healthy marketplaces emerge as the inventory levels drop,” said J. Lennox Scott, CEO and chairman of John L. Scott Real Estate. “As you get closer to the job centers of Seattle and Bellevue, the marketplace is looking strong again,” he added while expressing optimism for the coming year. “The outlook for 2012 is the continuation of a strengthening marketplace, especially in the more affordable to mid range priced homes.”

The combination of shrinking inventory and favorable financing is causing some areas to tilt toward a seller’s market, as measured by the supply of homes. Area-wide, there is about a five month supply of homes, which is generally considered to be a balanced market favoring neither buyers nor sellers.

In Snohomish County the months’ supply is pegged at 3.2 months, which means it would take approximately that much time to exhaust current inventory at the current pace of sales with no replenishment. Inventory of active listings in that county is down more than 28 percent from a year ago.

For King County overall, the supply is approximately 3.6 months, but in some sub-areas within the county the supply is less than 3 months — including parts of South King County (notably around Renton and Federal Way), parts of North Seattle (including Ballard, Sand Point, and Lake City), and parts of Bellevue (East of I-405).

Scott anticipates a slight increase in sales activity in the higher end market (up to a million dollars) around Seattle and Bellevue. “This is mainly due to the return of higher FHA loan limits and an anticipated increase in the sales activity of the mid price ranges, which will open up opportunities for some buyers to move up in price range,” he explained. Some brokers are even reporting multiple offers and escalation clauses from buyers of well priced homes, according to Scott. He noted historic low interest rates “will be a huge contributing factor too. It’s not very often we get to say interest rates are in the 3s,” he remarked.

Despite rising sales, Jacobi, a member of the Northwest MLS board of directors, noted foreclosures and short sales continue to cause downward pressure on prices. “Many would-be sellers are still wary of the market, and as a result, there are fewer homes for sale,” he observed, adding, “At the same time, there are buyers who are eager to strike while the iron is hot, so in some areas, homes are selling before many buyers even have a chance to react.”

REMAX 2012 Housing Predictions

National Association of Home Builders January list of improving markets.