Washington State Local Economies Are Strong
Posted by jennifermnelson on May 2nd, 2008
Seattle's Real Estate Marketing Specialists
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STATE OF THE UNION LETTER
Posted by jennifermnelson on May 2nd, 2008
If you’re considering buying or selling a home, you certainly have no shortage of ‘expert’ opinions, conflicting predictions and market rumors concerning real estate. While it is certainly true that our local market has slowed from it’s supersonic pace of a few years ago, it is still outperforming most other markets nationwide. Here are the facts:
Our state and local economies are strong, new jobs are being created every month, and our corresponding population increases should mean higher demand for housing.
In 2007, roughly 57,000 new jobs were created in King, Pierce and Snohomish Counties. At the same time, Western Washington experienced a net increase in population of over 97,000! To accommodate these new residents, approximately 34,800 new dwellings needed to be built in 2007, yet only 11,731 new homes were sold. 2008 will bring more of the same, with the Seattle Times reporting that 9,300 additional jobs have already been created in Washington in January and February of this year.
When you also consider that new construction starts are at a 10 year low, you begin to see why rentals are increasingly hard to find and rents are going up at a rate faster than home prices. We believe this indicates a pent-up demand for homes that has yet to be realized, and with more jobs coming in 2008, competition for homes is likely to grow more intense as the year goes on.
Will there be challenges in 2008? Certainly.
The mortgage industry continues to sort out the practices that have severely restricted or eliminated many of the high risk lending programs that drove the speculation in housing in many areas of the nation during 2004-2006. This will shrink the buyer pool in some market segments. With more homes on the market, affected Sellers will be asked to be more flexible in negotiations. Pricing a home at its true market value, and remaining flexible on terms, will be much more important than in the past few years.
Aside from these manageable challenges, there is great opportunity.
For qualified buyers, low interest rates and safe, stable financing is readily available. Increased inventory means better selection and potentially more favorable negotiations. Owning a home helps insulate you from future increases in housing costs due to rising prices and rents, and Puget Sound history tells us that real estate is still one of the best long-term investments that can be made.
For sellers, there is also a silver lining. Typically, when someone sells a home, their next home is approximately 50% more expensive. Consider this example: if your current home is listed at $400,000 and sells for 97% of asking price, you’ve reduced your price by $12,000. However, if the home you’ll then buy is listed at $600,000 (50% higher than your last home) and you also purchase it at 97% of value, the reduction you’ll receive is $18,000.00, for a net gain of $6,000 in total equity.
Finally, when you read or hear the Media make comparisons of today’s real estate market to last year’s, it’s important to remember that 2007 was Washington State’s 3rd best year in history. Even more amazing, the national market finished 2007 as the fifth best year in real estate in American history!
We understand why there is some confusion in our marketplace. Your Coldwell Banker Bain real estate professional can help you objectively look at the factors that are driving real estate activity in your specific neighborhood. Put our knowledge on your side!
Ron G. Sparks
Vice President, Sales | Coldwell Banker Bain April 2008
FUN FACTS ABOUT THE PUGET SOUND AREA
Posted by jennifermnelson on May 2nd, 2008
1. Seattle sells more sunglasses per capita than any other major city in the nation!
2. Seattle was the first American city to put police on bicycles.
3. Inventions in the Pacific Northwest include water skis, Slinky Pull Toy, Pictionary, Elmer’s Glue and the
electric guitar.
4. Washington is the birthplace of both Jimi Hendrix (Seattle) and Bing Crosby (Tacoma).
State of the Market
Posted by 36262 on March 27th, 2008
Today there is no shortage of “expert” opinions, conflicting predictions and market rumors concerning real estate. While it is certainly true that our local market has slowed from it’s supersonic pace a few years ago, it is still outperforming most other markets nationwide. Here are the facts:
Our state and local economies are strong, new jobs are being created every month, and our corresponding population increases should mean higher demand for housing.
In 2007, roughly 57,000 new jobs were created in King, Pierce and Snohomish Counties. At the same time, Western Washington experienced a net increase in population of over 97,000! To accommodate these new residents, approximately 34,800 new dwellings needed to be built in 2007, yet only 11,731 new homes were sold. 2008 will bring more of the same, with the Seattle Times reporting that 9,300 additional jobs have already been created in Washington in January and February of this year.
When you also consider that new construction starts are at a 10 year low, you begin to see why rentals are increasingly hard to find and rents are going up at a rate faster than home prices. We believe this indicates a pent-up demand for homes that has yet to be realized, and with more jobs coming in 2008, competition for homes is likely to grow more intense as the year goes on.
Will there be challenges in 2008? Certainly.
The mortgage industry continues to sort out the practices that have severely restricted or eliminated many of the high risk lending programs that drove the speculation in housing in many areas of the nation during 2004-2006. This will shrink the buyer pool in some market segments. With more homes on the market, affected sellers will be asked to be more flexible in negotiations. Pricing a home at its true market value, and remaining flexible terms will be much more important than in the past few years.
Aside from these manageable challenges, there is great opportunity.
For qualified buyers, low interest rates and safe,stable financing is readily available. Increased inventory means better selection and potentially more favorable negotiations. Owning a home helps insulate you from future increases in housing costs due to rising prices and rents, and Puget Sound history tells us that real estate is still one of the best long-term investments that can be made.
For sellers, there is also a silver lining. Typically, when someone sells a home, their next home is approximately 50% more expensive. Consider this example:if your current home is listed at $400,000 and sells for 97% of asking price, you’ve reduced your price by $12,000. However, if the home you’ll then buy is listed at $600,000 (50% higher than your last home) and you also purchase it at 97% of value, the reduction you’ll receive is $18,000, for a net gain of $6,000 in total equity.
Finally, when you read or hear the media make comparisons of today’s real estate market to last year’s, it’s important to remember that 2007 was Washington state’s 3rd best year in history. Even more amazing, the national market finished 2007 as the fifth best year in real estate in American history!
Ron G. Sparks
VP, Sales
Coldwell Banker Bain
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(1 votes, average: 2 out of 5) Loading ...Bellevue Named #1 of Top 100 Cities to Live- CNNMoney.com
Posted by jennifermnelson on March 27th, 2008
Bellevue, Washington (see the entire article)
Population: 111,608
Pros: Talented workforce, growing downtown
Cons: Pricey homes, high cost of living
Like many of the places on our list, Bellevue is a city in transition: no longer a bedroom community, but not yet a crowded, expensive metropolitan hub. Bellevue has grown with unusual grace in recent years. Huge corporations exist symbiotically with startups, a booming downtown abuts healthy residential neighborhoods, and the rising skyline is tempered by an abundance of parks, as well as lakeside and mountain views. Flash retailers such as Neiman Marcus draw regional shoppers, but Bellevue’s excellent healthcare and schools are key attractions for relocating families.
While local businesses must pay the statewide Business and Occupations tax on their gross receipts, there’s no corporate income tax. Businesses with less than $135,000 in taxable revenues (the highest threshold in the area) don’t have to pay the B&O tax. Easy airport access and a highly skilled workforce make Bellevue an attractive option for startups looking to break big. -Mina Kimes
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(1 votes, average: 5 out of 5) Loading ...In The Heart of Downtown Bellevue
Posted by jennifermnelson on March 26th, 2008
In the heart of downtown Bellevue! This stunning condo is located on the 15th floor of Tower One w/western view.This spectacular floor plan offers 1BR/1BA,gas fireplace,upo-floor from Finland,SS appliances,smart panel,sun shades and a 56 sf balcony to take in all the sites of Bellevue! Homeowner’s enjoy fitness/spa,lounge,billiards,a catering kitchen w/dining area,concierge,chauffer services & valet.Close proximity to fine dining,shopping, Bellevue Art Museum & the new Performing Art Center.
Call Jennifer Nelson
425-533-6202
Seattle Real Estate Sales Report
Posted by jennifermnelson on January 17th, 2008
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(1 votes, average: 3 out of 5) Loading ...No Housing Woes In Booming Washington State
Posted by jennifernelson2023 on October 9th, 2007
No housing woes in booming Washington state
Thu Sep 20, 2007 11:40 AM ET
By Jim Christie
SAN FRANCISCO (Reuters) - While California suffers in the housing crisis, the economy of nearby Washington state is flourishing with strong job growth and some of the highest appreciation in home prices in the nation.
The outlook for Washington’s economy is bright because so many people are moving there in response to help-wanted advertisements. Seattle, the state’s biggest city, is an especially hot job market, boosting confidence of sustained growth.
Microsoft co-founder Paul Allen’s Vulcan Inc., for instance, sees few obstacles to turning Seattle’s South Lake Union area into a thriving residential neighborhood, given Washington state’s economic strength.
Lori Mason Curran, market research manager at Vulcan Real Estate, expects 135,000 people will move into the Seattle market over the next five years, propelling demand for housing that Vulcan’s property unit is building in South Lake Union.
Vulcan Real Estate’s foray into building office property in the industrial and warehouse area “on spec,” or without guarantees of leases, will also pay off because of healthy population and job growth, she predicts.
“Seattle is really, really strong on both fronts,” she told Reuters during a telephone interview on Tuesday.
Brisk hiring, especially by manufacturers, builders and software companies, is propelling that growth, said Victor Moore, the state’s budget director.
“It’s the high-paying industries … There’s been a steady demand from employers,” Moore said.
Their growth is helping Washington, unlike California and some other states, put aside concerns about a housing slump, at least for the near term, added state Treasurer Michael Murphy.
“With employment really strong, there is less likelihood of having defaults on mortgages,” he said, noting Washington’s housing sector is avoiding contagion from mortgage market turmoil arising from “subprime” borrowers unable to make their loan payments.
In contrast, the foreclosure rate in nearby California, whose motto is the Golden State, surged to the second highest in the nation in August, according to a report released on Tuesday by RealtyTrac, a leading real estate data provider.
U.S. residential construction fell to a 12-year low in August, according to a government report showing a 2.6 percent drop in housing starts. The data was released on Wednesday before Wall Street’s opening bell. In the Northeast, housing starts slid 37.7 percent in August, while in the West, housing starts fell 18.4 percent, the Commerce Department said.
STRENGTH ACROSS THE STATE
While growing payrolls keep Washington’s housing market intact, they are also swelling state coffers.
ChangMook Sohn, chief economist for Washington’s Economic and Revenue Forecast Council, projects $281.5 million more than initially expected for the state’s 2005-2007 and 2007-2009 budget periods — raising the state surplus to more than $1.5 billion — thanks to continued strength in housing from strong payroll growth across the state.
“This is the third year of achieving about 3 percent job increases,” Sohn said, adding that Seattle-area payrolls are growing at a torrid annual rate of 3.8 percent.
Major area employers such as Boeing Co. and Microsoft Corp. are expanding payrolls, as well as companies involved in international trade, as exports gain momentum on the dollar’s weakness.
“Everyone expects more containers to come,” said Port of Seattle spokesman David Schaefer, noting port officials are putting together plans to double the number of shipping containers the port handles from about 2 million annually.
With demand and prices for agricultural products up, farm-rich eastern Washington is also fueling the state’s good times.
“In the Spokane and Pullman areas, economists are saying they’re seeing glory days,” Sohn said.
HOT TIMES ON THE HOME FRONT
Washington’s varied strengths make the Puget Sound region centered on Seattle a top market for Costco Wholesale Corp. and an obvious region for expansion, said Jim Sinegal, the company’s president and chief executive.
The Issaquah, Washington, warehouse club operator plans to open another store in the Puget Sound market this fall and has four more “on the charts” for the region because of its growth prospects and confident consumers, Sinegal said.
“Full employment and good wages make it desirable to have a 50-inch (television) set,” Sinegal said.
Washington’s broad economic strength is underscored by housing markets across the state, said Keitaro Matsuda, an economist with Union Bank of California. He noted that Wenatchee, Washington, notched the nation’s best annual home-price appreciation in the second quarter among local markets — up 23.5 percent — and four other Washington markets, including Seattle and Spokane, made the top 20 list.
“When you look at its numbers, there aren’t too many things that are going wrong with Washington’s economy,” Matsuda said.
Fitch Ratings revised the state’s rating outlook to “positive” from “stable” on September 4, citing its robust economy and resilient housing market — a contrast to California, whose economy is slowing amid tumbling home sales.
“They don’t have the real estate issues California has,” said Richard Raphael, a Fitch executive managing director.
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(1 votes, average: 3 out of 5) Loading ...City Lifestyles
Posted by CityBlogWA on May 28th, 2007
What are the lifestyle opportunities in and around Seattle, Washington. Are there hiking clubs, biking trails, civic clubs, golf clubs, local arts and theater, lakes, streams, fishing, boating, camping or other types of lifestyle opportunities?
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