November’s numbers indicate that buyers continue to reign in King County, as residential homes spent an average of just one month on the market, down nearly 30% compared to last year. Inventory continued its low trend, as the number of active homes was down 44% year-over-year and 27% month-over-month. Given the low inventory and increased demand, the median sale price rose to $440K, up slightly from last month and nearly $40K from the previous year. In downtown Seattle, condo active inventory held steady month-over-month but was down 12% from the previous year. Downtown Seattle condos likewise saw an increase in median sale price, up over $100K compared to last year’s numbers.
Seattle is Poised for Tremendous Population Growth: Could Surpass San Francisco by 2040 according to Daily Journal of Commerce
Can you imagine a population in Seattle greater than that in San Francisco? Well, according to an article from The Daily Journal of Commerce, that imagined scenario may become a reality as early as 2040. As Nat Levy reports, “The Puget Sound Regional Council [PSRC] predicts another 1 million people will live in the central Puget Sound region by 2040” and “at least 160,000 of those new people will live in Seattle.”
A Washington Department of Licensing Report reveals growth now, as “a total of 20,979 out-of-state drivers obtained a Washington driver license” in October, a number up 6,382 from the previous year. Further, “the weekly average for the month of October 2015 compared with the same month a year ago increased by 15 percent.” Growth increase, largely attributed to the thriving technology sector, will mean a lot of things for Seattle, including increased demand for housing and affordability concerns. So what will the city to do address this growth?
First, the PSRC has established a Vision 2040 plan to anticipate and handle growth in the Puget Sound area. In addition, other groups are working to ensure the city handles consistent population growth well. Back in October, Annie Zak of The Puget Sound Business Journal described an initiative by the University of Washington called Urban@UW which addresses issues related to the nearly 62,000 residents the Seattle-Tacoma-Bellevue area added in 2014. As Zak describes, the group “aims to bring UW’s urban researchers together with Seattle officials and citizens to address the most pressing issues in the city and the Puget Sound region. These include transportation, homelessness, affordability, growth, the minimum wage and much more.”
Sotheby's International Realty Expands Luxury Brand Presence in Finland
Sotheby’s International Realty Affiliates LLC today announced it has expanded its global real estate network into Finland with the launch of Snellman Sotheby’s International Realty located in Helsinki.
The owners, consisting of Swedish and Finnish prominent business investors headed by Robert Charpentier, signed an exclusive 25-year franchise agreement to develop the Sotheby’s International Realty® brand throughout Finland. The company will operate under the leadership of Kenneth Katter, who brings over 20 years of relevant high-profile international sales experience to his role of chief executive officer.
“Expansion into Finland continues the brand’s commitment to providing access to theSotheby’s International Realty network’s exclusive real estate services in luxury real estate destinations around the world,” said Philip White, president and chief executive officer of Sotheby’s International Realty Affiliates LLC. “Finland is a country widely admired as a European hub of innovation and entrepreneurship where the luxury market continues to grow. Entry into Helsinki offers great opportunity and complements the brand’s strong existing presence throughout Sweden and the Baltic States.”
According to Charpentier, the plan is to establish the Sotheby’s International Realty brand in the capital city of Helsinki with the opening of the first Snellman Sotheby’s International Realty office. With the addition of this office, opening this year, the Sotheby’s International Realty brand will have over 180 independently owned and operated offices in the Europe, Middle East and Africa regions. Other cities in Finland will be evaluated on an ongoing basis and Charpentier anticipates a presence in the Finnish Lapland in the future to facilitate the international interest of high-end ski chalets.
Katter adds, “This company is focused on fulfilling the needs of highly discerning clients searching for extraordinary real estate and requiring a high quality of service. It is vitally important for our team to ensure that we understand our clients’ needs and to deliver efficient and personalized services with professionalism and confidentiality,” he said.
“Now with the support of the Sotheby’s International Realty brand we can bring Finland’s extraordinary and unique properties to the far-reaching corners of the world.”
The Sotheby’s International Realty network currently has over 18,000 sales associates located in approximately 825 offices in 61 countries and territories worldwide. Snellman Sotheby’s International Realty listings are marketed on the sothebysrealty.com global website. In addition to the referral opportunities and widened exposure generated from this source, the firm’s brokers and their clients will benefit from an association with the Sotheby’s auction house and worldwide Sotheby’s International Realty marketing programs. Each office is independently owned and operated.
Wealth-X & Sotheby's International Realty Release UHNW Luxury Real Estate: Multi-Homers Report
According to a new study released by Wealth-X and the Sotheby’s International Realty® brand, more and more ultra high net worth (UHNW) individuals are buying second homes outside of their domiciles. The report revealed that there are currently more than 211,000 UHNW individuals around the world and that their purchase of international homes has risen.
“Our partnership with Wealth-X has proven to be invaluable as we continue to explore the motivations of the world’s ultra high net worth,” said Philip White, president and chief executive officer of Sotheby’s International Realty Affiliates, LLC. “The research from our latest report uncovers current trends in home purchasing behavior and chief lifestyle considerations, helping us gain insight into investment strategies of the UHNW population.”
As the report reads, “five years ago international homes accounted for 11% of non-primary UHNW residences, whereas they now account for 16%.” Further, “nearly 80% of UHNW individuals own at least 2 homes and over half own at least 3 homes.”
According to the report, “while many of these homes are being purchased in traditional UHNW centers, additional home buying is becoming a truly global enterprise.” The image below spotlights “the top 10 secondary residence countries, outside primary business country”:
Realogics Sotheby’s International Realty (RSIR) has emphasized the importance of Chinese international buyers for the last few years. Among their many initiatives, RSIR most recently announced a partnership with Tiger Oak Publications on an all-Mandarin magazine, “Seattle Luxury Living,” to target affluent Chinese consumers both locally and overseas. In addition, they launched a “Fly and Buy” luxury tourism program and are developing an exclusive We Chat App that will feature the Seattle Luxury Living content as well as other market reports, featured listings and reference resources for Mandarin-speaking homebuyers exploring investment in the Pacific Northwest. Read more about the firm’s initiatives >>
Other key findings from the report:
- The average UHNW Mult-homer is 63 years old, has a net worth of US$165 million and is married.
- The United States is the most popular location for second homes among the ultra wealthy, followed by the United Kingdom and Switzerland.
- Four types of luxury home types have emerged as favorites among the global ultra wealthy: Green Homes, Smart Homes, Private Islands, and Serviced Apartments. These types of luxury residences serve their needs, aspirations, and lifestyle considerations.
- The Caribbean and the Mediterranean remain favorites among UHNW buyers for private island homes, but Southeast Asia, Canada, Belize and the United Kingdom are gaining popularity.
- UHNW Multi-home buyers are fueling market growth in regions beyond urban hubs such as London, New York City and Hong Kong. The report profiles Miami, Florida; Geneva, Switzerland; and Long Island, New York.
Read the Full Wealth-X & Sotheby’s International Realty Report >>
Market Update: October 2015
October’s numbers are in and inventory continues to wane for King County Residential homes, down 15% compared to last month and 40% year over year. The median listing price was just under $530K, with an average sale price of $427K, up nearly $40K compared to the previous year. Buyers came out strong, as homes were on the market for an average of just 28 days, down 30% from last year’s numbers. In downtown Seattle, condo inventory was down 15% from the previous year but rose slightly compared to last month. The median sale price held steady from month to month but was up $35K from last year’s average.
For the latest numbers from areas around the sound, View October’s Market Reports >>