The number of active listings was down 4% compared to last month and 37% compared to last year in King County, with a median sale price of $441.1K. Buyers were out in full force, as homes spent an average of 25 days on the market, a 19% decrease from last year. Downtown Seattle condo sales were up 126% year over year. The median sale price was just under $510K, up nearly $150K compared to last year’s numbers.
Condos Stage a Comeback; First Presales in a New Development Cycle Begin Closing
Following a five year absence of condominium development the first presales at Insignia have begun closing in July 2015. The 700+ unit twin tower was the first large condominium project to break ground and commence presales in 2012 as the in-city housing market signaled a rebound and Bosa Development kick started a new cycle of for-sale development. The last major development was Escala, which broke ground in 2007 and delivered in 2009/10 amidst the Great Recession. Until recently, developers have focused on building apartments, noting that the region’s robust job growth has attracted many new residents that prefer to rent, helping to drive up lease rates despite the fact thousands of new apartments have been delivered and more are in the pipeline.
The Daily Journal of Commerce recently tapped Realogics Sotheby’s International Realty (RSIR) to evaluate the success of Insignia and what this means for the in-city housing market ahead. Reporter Nat Levy noted that the only substantial condominium projects being developed currently are the Insignia in Belltown and LUMA on First Hill.
“About half the condos being developed are already presold,” said Jones. “Values are rising for both new construction and resales alike, which will be needed to pencil new condominium projects ahead. Consumers need to recognize that their purchasing power is dwindling as inventory shrinks and interest rates expand. What we see is what we get for new supply until the market values support new towers. Without this new inventory, the market will only get tighter and more expensive.”
Jones says high rents and low capitalization rates means apartments are selling at similar prices with the typical condominium. So unless a developer is targeting a luxury segment and builds a tower that will command the premium necessary to edge out apartments, consumers will find fewer condos to choose from, especially at more affordable price points. That means higher prices ahead.
Meanwhile, RSIR has suggested that it may actually be less expensive to own than to rent. RSIR has partnered with Caliber Home Loans on an educational platform called #NoPlaceLikeOwn to help renters understand the market fundamentals and explore ownership opportunities. Consumers are encouraged to register for upcoming events and market information.
Seattle among the Top 10 Cities for Millennials
CNN Money released a list of the "Best cities for Millennial homebuyers," and they ranked Seattle number seven out of ten.
What factors elevated Seattle to the top? Les Christie cites the "vast coffee culture," "major employers like Amazon, Microsoft, and, of course, Starbucks," along with "other smaller outfits that are creating jobs and attracting young talent."
Further, "between 2010 and 2012, 28% of all people moving into the city were Millennials, five percentage points higher than the average major city, according to the National Association of Realtors."
Market Update: June 2015
The number of active listings was down 5% compared to last month and 35% compared to last year in King County, with a median listing price of $529.5K. Buyers were out in full force, as homes spent an average of 26 days on the market, a 13% decrease from last year. Seattle urban condo sales were up 250% year over year, with an increased median sale price of $1.36M, up over $100,000 from last month’s $1.24M average.
For the latest numbers from areas around the sound, View June’s Market Reports >>
"Home of the Week" Winner | Villa Bellini
Home of the Day is a feature presented by the Puget Sound Business Journal and Realogics Sotheby’s International Realty. This is your invitation to view some of Puget Sound’s most luxurious properties. Come inside and take a look around. Read more below on the “Home of the Week” winner, listed by Tracy Vaughnand the Citrone Partners!
Behind lush walls of mature landscaping is an oasis of nature and tranquility, where one can watch the sun set over the Olympics and ferry boats sailing by. This dramatic old world villa with modern edges is a retreat reminiscent of the grand homes of the French Riviera. Meticulously renovated by respected designer Sandra Tanzi Bellini for over 10 years, this 5,000 foot trophy property brings the visitor to a grander time; an artist’s vision built to the highest standards. A sense of place, and the spaces within… both of which are rich and textured, and deeply felt at Villa Bellini.
Featuring a hand wrought Oak entry door that opens to a sunken formal living room with painted Alder floors that gathers around the grand terra cotta fireplace; a perfect blend of modern convenience and essential elements of the Old World. Oak, Pecan and limestone floors throughout. An elegant hallway leads to a spectacular dining room and true gourmet kitchen with antique farm sink, Lacanche Cote D’or commercial stove and oven; custom Sub-Zero drawers and Fisher-Paykel when the party is put to bed. Expertly choreographed doors and windows create light-filled living spaces throughout, especially within the expansive chef’s kitchen, which opens out onto a veranda with custom inlay floor with views to Puget sound and beyond. Charming library/ art studio uses oak beams to vault the ceiling and warms the limestone walls and floor with abundant natural light. Not to be missed, the charming spice garden that invites the visitor to pause and reflect amid thyme, sage, rosem ary, Marjoram, basil, mint.
The master suite is warm and inviting; French doors flow to a private sun warmed garden oasis with a trickling fountain and breakfast nook. Also nice, the Spa style master bath that recalls the grand estates of Paris.
Detailed Terra Cotta walls throughout the home feature playful motifs of nature and whimsy. Everywhere the touches of an artist’s knowing palette.
The lower level is an escape unto itself; the warm textures of a custom movie room blend seamlessly with the champagne bar and wine cellar designed for an expert sommelier and holding 850 varieties. A guest room that calms the senses leads to the rich textures of a European spa bath. Private entry; full designer kitchen and walk in closet. A two car garage/art studio or gym features an additional kitchen with designer appliances.
In the garden, a resort lifestyle. Swimming pool and Jacuzzi share a stage with a Scandinavian Sauna in view of Puget Sound. Quaint seating nooks abound and invite reflection or the reading of a good book.
Lush, mature landscaping was brought to this place from gardens with exotic names; with unwavering vision and purpose.