The Truth about the Seattle-Bellevue Real Estate Market Today

By Ken Urman, Realtor

You might have seen this article recently: Seattle home prices zipping upward, but slowdown likely.

Although this article talks about our local Seattle market, I believe it is still very skewed by national statistics and national economic factors. From my point of view, the market in Seattle is much more related to the economic fundamentals of supply and demand. Demand is very high in our area,

primarily due to a strong jobs market, many new people coming to the area, pent up demand, and traffic avoidance issues.

Amazon alone keeps bringing well paid employees to the area who want to live close to their work place. Basically, there are many people looking for housing in the Seattle area. As long as Amazon, Costco, Starbucks, Microsoft and others continue to hire and interest rates remain at a reasonable level, demand will continue.

I often say "most people need a place to live. The majority do not want to be homeless." Let me help you decipher the Seattle Real Estate market. Everyone's situation is different. Relying on news reports to help make your housing decisions may be a mistake. Please give me a call at 206-230-0833.

Get to Know the Gatewood Community

By Ken Urman, Realtor

The Gatewood neighborhood is located in West Seattle and is bounded by Raymond Street to the

north, Thistle Street to the south, 35^th Avenue to the east, and California Avenue and Fauntleroy Way to the west. 

West Seattle has some of the city’s oldest neighborhoods including Gatewood. The Southwest Seattle Historical Society has a Log House Museum at Alki Point another community within West Seattle.  The Alki point is considered the landing site where the Denny Party founded Seattle before crossing Elliott Bay to what is now downtown Seattle.  Later, much of Gatewood was developed during World War II to create government housing.

Homes in Gatewood that have been on the market are commanding higher prices than in the last several years.  Gatewood and West Seattle have become an area with a terrific vibe and is an ideal location for a "fun" lifestyle.  In and around Gatewood there are great restaurants, good shopping, and even a Trader Joes, as well as a Whole Foods currently under construction.  Many homes in this community have spectacular vista views of Puget Sound and the mountain peaks.

Gatewood abuts the area known as the Junction, which is densely populated with restaurants and small specialty destination stores. It is also close to the Fauntleroy Ferry Terminal, Lincoln Park, a number of coffee shops and cafes, hiking and nature trails, and an active schedule of events.

The most prominent landmark is the Gatewood School, currently in use as an elementary school.  The neighborhood is served by the Seattle Public Schools district. Gatewood Elementary School is the third-oldest school in West Seattle. The original building was closed for construction in 1989, reopening in 1991. The school is located at 4320 SW Myrtle Street.

Gatewood is also near some of the best bottle shops (beer stores) in the Northwest. The Super Deli Mart on 35th (https://twitter.com/SuperDeliMart) is a good example. There also are a number of brewpubs offering locally brewed beer. In fact, Seattle is home to one of the country’s largest concentrations of breweries.

According to CityData and the 2010 Census figures, Gatewood covers an area of 0.764 square miles and is home to 7,459 people. The median household income (2010) was $74,708 ($60,619 for all of Seattle). The average household size is 2.1 people, and 39.3 percent of households are families. In terms of education, 30 percent of residents have less than a high school diploma, 22.8 percent have a Bachelor’s Degree, and 12 percent have a Master’s Degree.

In 2010, the average value of a detached house in Gatewood was $547,392, slightly higher than the average value of houses in all of Seattle ($457,552). Median rent in 2010 was $972 for Gatewood and $915 for the city of Seattle as a whole.

For more information about the Gatewood neighborhood, West Seattle, or the Seattle-Bellevue communities, please contact me at 206-230-0833 or email kenurman@comcast.net.  I welcome the opportunity to discuss home buying or selling with you.

The top 3 reasons that now is the right time to buy a home

This article caught my eye this morning.  Simply stated and so true!  I especially endorse this statement:

Regardless of what is happening in the market today, tomorrow, or a year from now, real estate is almost always a good investment for the long term. 

Always has and always will!!!!


According to a recent article on RISMedia (article), the top 3 reasons that now is the right time to buy a home are:

1.  Rising Home Prices:  Home prices are inching upward at an accelerated rate.  Since price is likely the most significant consideration most people have when buying, this is important.  If prices continue to rise, and you buy now, your equity will begin to build as soon as you close.  And home prices ARE projected to increase. 

2.  Low Mortgage Rates:  Yes, interest rates did go up a little in the last month, but they are still super low!  And the gurus are projecting that they will go up even more over the next year.  NOW is the time to get locked in.

3.  The Re-emergence of New Construction:  Builders are building again, but not at the rate they built in the mid 2000s.  Land costs more, materials cost more, labor costs more.  New home prices are going up, too.  Buying today may be your best option because the cost of new constructions isn't likely to decrease.

King County median home price up 12.5 percent from June 2012 | Business & Technology | The Seattle Times

It was just a year ago that news reports and experts were saying it may take 5 to 10 years to recover. Employment is strong and demand is high. Glad to see strong recovery. We're on firm ground!


King County median home price up 12.5 percent from June 2012 | Business & Technology | The Seattle Times

Cash Sales: 32 Percent of Residential Sales

This is an amazing statistic, but not surprising.  I've had a lot of experience with cash buyers and sellers.  My observation is that most cash buyers are looking for a secure place to park their money.  Real Estate in most cases is secure.....no ones going to steal it and long term returns can be excellent.

Cash Sales: 32 Percent of Residential Sales

Sell Now, Buy Now, or Wait?

By Ken Urman, Realtor 

The question I am asked most often this year is, “Should I sell now or wait until prices increase more?” This is not an easy question to answer because much depends upon the amount of your

mortgage and the amount of equity you have in your home. Yet several considerations suggest that this is a good time to buy and to sell a home.

The factors to consider are:

1.       Mortgage rates, although still at record lows, are beginning to rise.

2.       A mortgage rate increase of even ½ point will cost hundreds of dollars more per month.

3.       The average U.S. net worth has reached an unprecedented level; this is certainly the case in the Seattle-Bellevue-Lake Washington area.

4.       High-paying employers in the area are hiring, increasing both the demand and the price of available homes.  Seattle jobless rate is now under five percent.

There is an extreme imbalance in our area between demand for homes and homes currently on the market. Many homes, particularly in highly-desirable neighborhoods, are receiving numerous offers that are significantly above listing price. This creates a very advantageous market for sellers. Throughout the U.S. homeowners are caught in negative-equity situations, owing more than the current value of the home. Many of these homeowners cannot afford to sell.  This contributes to the buyer-seller imbalance. Add to this people who want to move to a more desirable location or a larger house and newcomers to the area, and the result is a very competitive market.

As mortgage rates rise, the actual price of a home also rises. As long as mortgage rates are at historic lows, the actual cost of purchasing a home is far less than it will be as mortgage rates increase – and they will increase, probably to six or seven percent in the next few years. This is a strong argument for buying now. Look at the difference in total cost of a home purchase at a higher interest rate:

Purchase of a $750,000 home with $250,000 down payment and a loan of $500,000

15 years at 4%   Monthly payment = $3,698.44                    Total Interest = $165,719.13
15 years at 7%   Monthly payment = $4,494.14                    Total interest = $308,945.44

30 years at 4%   Monthly payment = $2,387.08                    Total interest = $359,347.53
30 years at 7%   Monthly payment = $3,326.51                    Total interest = $697,544.49

Clearly, higher interest rates make a home more expensive to purchase.

Whether you are considering buying or selling, rising interest rates make it beneficial to act now. In a seller’s market, sellers may get a higher price for their homes due to competitive bidding. Further, sellers can expect to benefit from lower interest rates on their next home purchase. Buyers are able to invest significantly more in the house and pay less interest if they buy while mortgage rates are low.

Some people in the real estate profession are predicting a very troubled trade-up market in two or three years as interest rates and home prices rise. I agree with this prediction, particularly in a luxury home market like Mercer Island and the communities surrounding Lake Washington. The current extreme supply-demand imbalance is driving both competition for available homes and prices of those homes. When interest rates reach six or seven percent, it will become more difficult for owners of mid-range homes to trade up. The high salaries paid by many local employers will also continue to push prices higher. I have no doubt that, in the long run, you will be happy with the outcome of either a sale or a purchase now.

To schedule a free consultation to evaluate your options as a seller or as a buyer, please call 206-230-0833 or 206-499-4948. I’ll be happy to come to your home, and I’ll bring the coffee.

Get to Know the Woodridge Community

By Ken Urman, Realtor®

Woodridge is a community of 5,116 (2010 census) within Bellevue, WA. It includes the neighborhoods of
Woodridge Hill and Norwood Village, and accounts for about four percent of the City of Bellevue. After World War II, most of Woodridge Hill was an undeveloped tangle of blackberry vines, trees, and undergrowth. The area was developed over the next two decades, and was annexed by the city of Bellevue in 1966.

The Woodridge Hill neighborhood is located immediately south of downtown and east of I-405, and a long strip of multi-family, office, and light industrial development flanking Richards Road. Woodridge Hill is a neighborhood of quiet streets and family homes -- many with views of Lake Washington, downtown Bellevue, or Seattle.

Much of the community’s daily life revolves around Woodridge Elementary School, located at the top of the hill within this neighborhood. Woodridge Elementary School was rebuilt completely in 2007. The 2012 enrollment was 574. Many people consider Woodridge Elementary to be one of the best elementary schools in Bellevue.

Norwood Village was built on Woodridge Hill in the late 1940s by and for World War II veterans. This development began in 1947, when a nonprofit veterans’ organization acquired 48 acres and developed it into Lower Norwood. Local architects designed these homes and positioned them on lots to take advantage of the spectacular views. This prevented the neighborhood from having the uniformity of other post-war tract housing neighborhoods. The community was considered so unique that it was featured in home and garden magazines in 1952. Norwood Village is the oldest community in Washington

State with continuous water fluoridation. Today, it is a Historic District of post-WWII architecture. Before there was a Bellevue, there was historic Norwood Village!

The average household size in Woodridge is 2.2 people, and the average family size is 2.8 members. Among all households, 50.6 percent are married couples, and 19.1% of households include children. The median household income in 2009 was $83,178. Residents are well educated, with 53.6% holding at least a Bachelor’s degree and 12.1% a Master’s degree.

Both Woodridge Hill and Norwood Village built their own community swimming pools, still prized by

residents. The pools provide a range of activities for all ages, and provide swim lessons and competitive swim teams.

There are three parks within the Woodridge Community: Bannerwood Ballfield Park, Norwood Village Park, and Woodridge Water Tower Park, which offers a trail that is well shaded by tall trees and a good spot for serious bird watching. Residents also have immediate access to the Woodridge Open Space, a 20-acre upland forest that is part of the Richards Valley Greenway.

Currently there are five homes listed for sale in the Woodridge area. Here is one example. In the last 180 days, 31 properties have sold in this area, ranging in price from $160,000 for a condo to $851,000 for a 4,140 square foot single family home. The average travel time to work for 75-80% of the population is 10 to 20 minutes.

Keep up with all the news from the Woodridge community with the Woodridge blog.
If you would like to see the homes available today or you wish to learn more about Woodridge, please contact me 206-230-0833 or email me, kenurman@comcast.net.

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  Ginormous Kitchens: Are They Really a Good Choice?

  Bottom line for me is open kitchens work. Size is a separate consideration.  With an open kitchen I love being able to interact with guests while cooking or washing dishes.  Everyone is together and that's really good!  Good pros and cons presented in this article.

  
  
  Huge, open kitchens continue to grow in popularity, getting bigger and bigger. But is bigger really better? Read

Copyright 2013 NATIONAL ASSOCIATION OF REALTORS®

The 5 Best (and Worst) Movies Set in Seattle

Not directly related to Real Estate, but I find it interesting that occasionally filmmakers come to Seattle to make a movie.  No doubt we have terrific scenery, but with our rain and grey clouds it's hard to make a movie here.  Never the less many good ones have been filmed here. From this list I learned of about a movie that I had no idea was filmed in Seattle...I've seen it many times.  McQ with John Wayne.....I think it was one of his last big films.  Read more

Since Tinseltown doesn't always get that appeal right, we've decided to run through the best and worst depictions of our town. From the high times of '90s grunge to some truly embarrassing geographical blunders, here's Seattle in the movies. 

Get To Know the Faben Point Community

Get To Know the Faben Point Community

By Ken Urman, Realtor®

This post is the eighth in a series offering insights into the unique characteristics of specific neighborhoods on Mercer Island and communities surrounding Lake Washington, including Parkwood, Tarywood, Woodridge, Judkins Park , and Newcastle.

Faben Point is a community with a rich history and a collection of some of the most expensive luxury homes on Mercer Island. In addition to an ideal location very close to water, parks, and freeway access, many homes in this community have views of Seattle across Lake Washington.

In the early 1900s, there were about 25 ferry landings on all sides of Mercer Island. The northwest side of the island has four prominent points, all of which were ferry landings. The eastern point, in Luther Burbank Park, is Calkins Point; the west side of the middle point is Roanoke Landing; the point on the northwest corner of the island is Faben Point; and the point about 0.7 miles south of I-90 is Proctor Landing. It is not surprising, therefore, that many of the island’s oldest communities arose near the landings.

Faben  Point was named for prominent Seattle attorney/judge and boat racing enthusiast Vincent 'Vince' Faben, who owned a summer home there until his death in 1927. He raced a launch named the 'Dolphin' and was sometimes called 'Captain' Faben.  In records of the 1906 Labor Day, Mid-Winter, and Fourth of July Regattas (powerboats), Faben was listed as Commodore of the races. In 1931, his Mercer Island property was platted into large lots, with 60-80' of waterfront, 200-370' deep, and sold at auction. Many of the homes at Faben Point were built between 1927 and the end of World War II. Many of the older homes have been replaced by large luxury homes.

Faben Point is part of the beautiful north end “Gold Coast,” consisting exclusively of waterfront properties. Seven homes in Faben Point have sold during the last seven years, with prices ranging from $1,110,000 to $9,250,000. Another home in this beautiful neighborhood is currently on the market, listed at $3,125,000. One home in this community, which was listed in 2007 for $28 million, is featured on one real estate website as one of the ten best pools in the US.

Another bit of Faben Point history, brought to light in recent years with the sale of a green vinyl bar that was restored to the Harvey family. John Harvey booked bands for regional venues in the 1970s and 1980s, as well as promoting musical events. His grandmother, Laura S. Harvey, owned the waterfront home just down the street from him. Some of the bands stayed at Laura Harvey’s home during their trips to the Seattle area. According to family lore, a number of rock-and-roll stars shared meals with the family at the green vinyl bar, including Bill Wyman of the Rolling Stones and possibly Led Zeppelin.

Residents of Faben Point during the early 1990s were inconvenienced with the construction of the I-90 floating bridge. However, accessibility to the highway and access to the Park on the Lid and the I-90 bike trail are clear benefits for residents today.

 

 

 

 

 

 

 

To learn more about the Faben Point community, or to learn about homes available in this area, please contact me at 206-230-0833.