Northwest Seattle - State of the Market

When comparing February of 2012 to prior years more buyers have entered the market with 172 homes pending, and 82 homes closed. At the same time the number of active listings has steadily decreased from 467 in 2009 to 170 in 2012, and the average days on market for a home to sell was down to 57 days.

We are in a market where the number of listings available is way down while the interest to buy is way up. When comparing the number of active listings to the number of pending listings a ratio can be created. The ratio in February was at 101% and the ratio in the second week of March was 170%. 55% and up is considered a Seller’s Market. So as you see it is a hot Seller’s Market. For homes that are priced right it is not uncommon to see multiple offers and listing price to sales price ratios of over 100%.

Keep in mind, these statistics are averages. Some price ranges are more active than others. Currently the hottest price range is $350K to $400K, while is is slow over 1.25 million.

Now for some bad news…The median home price was down 9% to $415,500 when comparing February of 2007 to February of 2012. However, it is up from the low 2010 and 2011.

With home values lower and mortgage interest rates hovering around 4% the monthly mortgage payment for a home has become much more affordable. In King County it is cheaper to purchase and pay the monthly mortgage of the average home than it is to rent it.

Northwest Seattle includes the neighborhoods of Ballard, Fremont, Wallingford, Green Lake, Phinney Ridge, Loyal Heights, Sunset Hill, Crown Hill, Greenwood, Blue Ridge, Broadview, Bitterlake and more.

Making an Offer on a Home

When making an offer to buy a home it is important to get yourself in the right mindset. This video was made to help coach home buyers with negociating stratagies for making a strong offer on real estate.

It's cheaper to own versus rent in King County

The decision to rent a home versus own a home is one that receives a lot of attention. The correct answer depends on a person’s situation.

Renting is a better option for those who need flexibility. If you expect to move within a couple years or you are uncertain of your employment, renting is likely the better option.

For those who expect to live in the same area for 5 or more years and have job security, owning a home is something to seriously consider because over the long term it is financially better.

Currently in Seattle, Washington, the cost of renting is increasing because vacancy rates are dropping, as the cost of owning a home is decreasing. On a monthly basis it is cheaper to own than rent.

In King County, home values are down 8% and condominium values are down 22% in the last 12 months. In addition mortgage interest rates are at historic lows, averaging just above 4%. The median home in King County sold for $349,950 and the median condominium sold for $195,000 last fall.

With a 10% down payment, the monthly mortgage for the median priced single-family home is $1,522 per month, while the cost of renting a typical house is $1,930 per month. The median condo would have a mortgage payment of $849 per month, while the cost of renting a typical apartment is $1300 per month.

Now may be a good time to contact a Realtor to explore options.