4238 Forest Park St NW, Olympia WA 98502 FOR SALE

Pent-up demand boosting Western Washington home sales and prices

Prices for last month’s completed sales rose 6.4 percent area-wide from a year ago, with considerable variation across the 23 counties served by the multiple listing service. The median price system-wide for last month’s closed sales of single family homes and condominiums (combined) was $319,250.

Among counties in the central Puget Sound region, Kitsap County registered the largest year-over-year increase at 9.2 percent, and King County registered the smallest gain at 3.3 percent. The median sales prices in the four-county area ranged from a low of $245,000 in Pierce County to a high of $439,000 in King County.

July’s single family home prices (excluding condominiums) rose 4.1 percent compared to a year ago, but dipped slightly from the previous month. The area-wide price on last month’s closed sales was $327,950, up from the year-ago figure of $315,000, but down from June’s figure of $330,000. Year-over-year prices were up in 22 of the 23 counties in the report, while seven counties reported small drops from June.

The challenge with a sellers’ market is that some sellers tend to spend too much time reading the headlines, which pressures them to overprice their homes. Noting cash transactions tend to draw news coverage, they are still in the minority when compared to conventional, FHA or VA financing. At the end of the day you still need to attract a ready and willing buyer who is offering a price that an appraiser will confirm.

We also noted prices are escalating at a faster pace in Kitsap County than in King County. MLS figures indicate the median price in Kitsap County has surged 22.4 percent since January, which compares to a 12.6 percent jump in King County.

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 23,000 real estate brokers. The organization, based in Kirkland, Wash., currently serves 23 counties in Washington state.

Sellers’ Preparation Checklist

To save time and avoid delays in the transaction process, sellers should identify and provide clear access to all electric panels, attics, and crawl space access points. Here is a list that may be helpful for you in preparing your client for an inspection.

Many of these items can be done at little or no cost and are part of a regular maintenance program for any home. When a home seller is aware of the things they can do to prepare their home for an inspection, it’s certain to help make it a smooth experience for all involved.

House Exterior

• Remove soil or mulch from contact with siding. Six or more inches of clearance is best.
• Clean out dirty gutters and any debris from the roof.
• Check to make sure all water from downspouts, sump pump, condensation and basement entry drains is diverted away from the house.
• Trim trees, roots, and bushes back from the foundation, roof, siding and chimney.
• Paint weathered exterior wood and caulk around the trim, chimney, windows and doors.
• Repair any failing mortar in brick or block.
• Remove wood and/or firewood from any contact with the house.
• Caulk all exterior wall penetrations.

Basement, Crawl Spaces and Attics

• Check to ensure that the crawl space is dry and install a proper vapor barrier if necessary.
• Remove paints, solvents, gas, wood and similar materials from crawl space, basement, attic and porch.
• Update attic ventilation if none is present.
• If windows are at or below grade, install window wells and covers.

Doors and Windows

• Ensure that all doors and windows are in proper operating condition, including repairing or replacing any cracked windowpanes.

House Interior

• Clean or replace heating and cooling filters, clean dirty air returns and plenum.
• Test all smoke detectors to ensure that they are working.
• Have the chimney, fireplace or wood stove serviced and provide the buyer with a copy of the cleaning record.
• Replace any burned out light bulbs.
• Have clear access to attic, crawl space, heating system, garage and other areas that will need to be inspected.
• If the house is vacant, make sure all utilities are turned on. This includes water, electricity, furnace, A/C and the water heater.
• Ensure ready access to all rooms and crawl spaces. Clear all furniture, boxes, clothes, toys and other personal items that may block access to the furnace, water heater and electrical panel.

Kitchen and Bathrooms

• Ensure that all plumbing fixtures such as the toilet, tub, shower, and sinks are in proper working condition. Fix any leaks and caulk around fixtures if necessary.
• Ensure GFCI receptacles are functional.
• Check bath vents to see if they are properly vented and in working condition.
• Clear out areas under sinks so they can be inspected.

Sellers’ Inspection Preparation Checklist provided by WIN Home Inspection. 

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Home sales sizzling around Western Washington, with volumes reaching 10-year high

Temperatures around Western Washington were not the only thing sizzling during June. Northwest Multiple Listing Service members reported 11,453 pending sales last month, the highest volume since August 2005 when members notched 11,546 mutually accepted offers. Last month also marked the fourth consecutive month of 11,000-plus pending transactions.

MLS members credit first-time buyers, an influx of relocating workers, and escalating rents for part of the surge.

“First time buyers are returning to the market, but cautiously and with more knowledge based on market values and trends,” said Gorge Moorhead, designated broker and owner at Bentley Properties in Bothell.

“Educated buyers today are no longer just dipping their toes in the water. They are diving right in. It’s been challenging for everyone involved in a real estate transaction, whether buyer, seller or agent.”

Gain and many of his colleagues bemoan the lack of listings. “The only real problem we are experiencing today is the lack of inventory,” he said.

 Brokers added 11,581 new listings to inventory during June, about the same number as a year ago (11,541), but pending sales outgained the same month last year by nearly 16 percent, depleting the selection. At the end of June, the number of active listings across the 23 counties in the MLS report totaled 20,333. That compares to 25,342 for the same month a year ago for a drop of 19.8 percent.

The imbalance between listings and sales means shrinking “months of supply,” an indicator of sales velocity. Industry experts use a figure of four-to-six months of supply as one gauge of a balanced market. For the Northwest MLS market overall, only 2.2 months of inventory existed at the end of June.

Multiple offers are common throughout the Central Puget Sound region.

“We see many multiple offers on properties,” reported Dick Beeson, principal managing broker at RE/MAX Professionals in Tacoma, who described sales activity as “phenomenal.” 

For first-time buyers, the competitive bidding can be daunting, which he suggested underscores the importance of relying on experienced brokers. Anxious buyers have a sense of urgency as prices rise, he noted. “They need a great real estate broker to help guide them through multiple offer situations,” added Beeson, a member of the Northwest MLS board of directors.

Rising prices are prompting some house-hunters to broaden their search beyond primary job centers.

“More and more buyers are starting to chase the market northward as prices increase in King County, especially around Seattle,” said Diedre Haines, principal managing broker-South Snohomish County at Coldwell Banker Bain in Lynwood. “Open house activity, despite buyers’ fatigue and slight increases in interest rates, remains robust,” added Haines, a past chairman of the MLS board.

Median prices continue to trend upward, according to Northwest MLS figures.

Rising prices are prompting some worries about affordability. Broker Dick Beeson believes the growth rate in jobs and the “sheer numbers of people flowing into the state make this market appear to be sustainable for the long term,” despite some uncertainty around reaching the upper limit in pricing and the likelihood of rising interest rates.

Referring to a list compiled by Forbes magazine that rank the Seattle-Bellevue-Everett area as an “overpriced area,” MLS director Moorhead suggested it’s a matter of value. “An experienced real estate broker will be invaluable in navigating through the buying and selling process” and understanding value as inventory levels balance out and interest rates increase.

Appraisals are also concerning to some. Low appraisals are a big challenge, according to Beeson. Other MLS brokers agreed. “We are beginning to see a resurgence of low appraisals, most are small gaps between sale price and appraised value adding to frustration for both buyers and sellers,” reported Diedre Haines. “Kitsap is also beginning to see a higher incidence of low appraisals,” said MLS director Frank Wilson.