Real Estate News & Information • July 16, 2024

Local Market Update – July 2024

by Don Koonce

Local Market Update – July 2024

As temperatures rise, so has the supply of for-sale homes in our area. Last month, active inventory continued its upward trajectory, which is leading to some summer price stabilization. Every region represented here saw a rise in the number of single-family homes and condos for sale in June. And while median sold prices did increase over last year in most cases, they dipped or were flat when compared to May.

Home buyers needing a little more time to find the right home can breathe a bit easier. With the rate of price increases slowing and the number of available single-family homes growing, there’s a little less pressure to act quite as fast as springtime bidding wars necessitated. While it’s still a seller’s market, buyers who’ve been sitting on the sidelines can now dip their toes back into a somewhat mellower market. That said, in hot areas like the Eastside, half of homes sold in June closed above list price and in an average of five days.

Let’s break it down by area to see what’s heating up and cooling down this summer.

In King County, the median sold price for a single-family home increased from $935,000 in June 2023 to $965,000 last month. However, June sold prices decreased by 4% from May’s record-high price of $1,001,000. While these numbers likely reveal the effect of higher inventory, 43% of King County homes sold in June closed above list price. As of June 30, active residential listings were up 31% year over year and 12% month over month. King County condo prices rose 5% year over year from $529,975 last June to $555,090 last month. The increase is despite a 75% year-over-year jump in the number of active condo listings, up from 832 units on June 30, 2023, to 1,453 last month.

In Seattle, residential sold price increases are showing signs of slowing, with last month’s median of $957,000 up just 3% from a year ago and dropping 1% between May and June. This trend is likely a result of the healthy dose of new listings inventory over the past few months, as buyers now have more options and bidding wars have lessened. June saw many more residential listings hit the market, and by month’s end inventory was up 30% from the end of May and 27% year over year. Seattle condo prices stayed flat month to month at $550,000. Sensing calmer pricing on the horizon, it will be interesting to see if some potential condo buyers might be able to give the single-family housing market a second look.

The June residential real estate market on the Eastside saw substantial year-over-year price gains but experienced a 4% decrease from May’s median sold price. Half of the homes sold in June received multiple offers, with the sales price exceeding the original asking price by a median of 7 percent. While these figures show a healthy seller’s market carrying over from May to June closings, the remaining summer months are likely to provide more balance for Eastside buyers, with fewer multiple offers and lengthening market times. June saw a growing supply of homes: the number of active residential listings rose 16% over the course of the month. Eastside condo prices dropped year over year from $650,000 last June to $637,500 last month, and the supply of listed condos grew by 19% during the month.

Snohomish County single-family home prices rose 7% year over year, up from $774,975 in June 2023 to $830,000 this June. Month-over-month prices, however, were flat: the median residential sold price was $830,000 in June versus $828,000 in May. The number of active listings was up 38% year over year and 21% higher at the end of June than at the end of May. Increasing inventory is happy news to home buyers and may help moderate prices in the coming months. The median sold price for a Snohomish County condo in June was up 5% against last year but down 5% from May. Between June 1 and June 30, there was a 26% increase in the number of active condo listings in Snohomish County.

In all markets reported above, the same trend lines have formed: price increases are slowing – or stopping altogether – and inventory is growing. The strong spring seller’s market has given way to a summer of more balance, with renewed opportunity for many buyers.

Your Windermere advisor can provide a clear, real-time picture of the market and its summertime trends, focusing on your priorities and presenting the best match for your real estate goals.

More.

Buyers • July 11, 2024

So You Bought an Investment Property, Now What?

by Don Koonce

Congratulations on your new investment property! Now comes the exciting part: Turning your property into a revenue-generating machine. While it’s not exactly easy, your goals are within reach if you take steps to organize, plan, and build a solid foundation. Here are some ways to help maximize your property’s potential in the short and long term while avoiding future headaches.

Ensure your property is up to code

At a minimum, your new investment property should be safe and livable. This isn’t just the right thing to do, it will also shield you from liability and help attract better tenants. Start by repairing the necessities using your home inspection report as your guide. Prioritize issues that could lead to bigger problems down the road, such as a leaky roof or holes in the closet that could lead to infestations. Ensure that all appliances are in top working condition, including the furnace or other heating system, and that the plumbing and electrical are up to code.

Also make sure the property complies with all local and state laws regarding the presence of mold, lead paint, asbestos, and other potentially hazardous substances.

Choose a property management team

While you can manage the property yourself, hiring a good property management team will reduce stress and likely save money over time. Property managers handle tasks such as rent collection, maintenance, tenant screening, and marketing your property. They also oversee complaints, so you don’t have to deal with upset or difficult tenants.

To find a reliable property management team, start by asking for recommendations from friends, family, or other real estate investors. Also check reviews on specialized property review sites. When interviewing potential managers, ensure they have experience with properties like yours and assess their responsiveness and communication skills, as you need a manager who keeps you informed and addresses issues promptly.

If the management fee is too steep and you decide to go it alone, curate a list of reliable plumbers, electricians, appliance repair companies, and handymen to handle maintenance requests. Also thoroughly screen tenants to ensure they’re reliable and will take good care of your property.

Enhance the property appeal

Before you rent the property, consider cost-effective renovations to enhance its appeal and rental value without breaking the bank. For the kitchen, consider refacing or repainting cabinets, upgrading to energy-efficient appliances, and installing modern faucets and light fixtures. Bathroom options include updating faucets, showerheads, and flooring. Other improvements that may attract higher-paying tenants include refinishing the floors, upgrading to energy-efficient doors and windows, and hiring a gardener to improve the landscaping.

Consider different rental strategies

Regular maintenance is crucial to maintain the property’s value and prevent costly repairs. Coordinate with your tenants to schedule periodic maintenance checks, and create a list of maintenance tasks to address when tenants are on vacation or between renters.

Property owners have traditionally concentrated on long-term rentals. However, the rise of short-term rental platforms like Airbnb and VRBO have shifted the landscape for some. Long-term rentals are idea for owners seeking a stable income, as turnover is typically low and monthly revenue is predictable. On the other hand, short-term rentals can command higher nightly rates, but they usually involve more expensive and time-consuming management and upkeep. Plus, reservations can be unpredictable, particularly in areas with seasonal fluctuations.

Set competitive rental rates

Property management teams generally recommend an optimal rent based on a comprehensive market analysis, helping you achieve the highest return on your investment. If you’re managing the property yourself, you can perform your own analysis by researching comparable properties (“comps”) on websites like Craigslist or Trulia. Consider factors such as your property’s location compared to the comps, and whether your property includes coveted features like air conditioning, a washer/dryer, or ample outdoor space. Proximity to good schools and local amenities such as restaurants are also valued by renters.

Keep in mind that for your investment to be profitable, your rental income must cover expenses such as mortgage payments, taxes, management fees, insurance, and ongoing maintenance costs. Make sure to periodically review and adjust the rates to remain competitive and maximize your income.

Market your property effectively

As with rental rates, your property management team typically lists and markets the property, so you’re off the hook here. However, if you’re managing solo, you need to think like a product marketer, using tools like high-quality photos, virtual tours, and compelling descriptions to make your property stand out. First impressions matter, so lead with a well-lit, inviting photo. Bright images convey a clean, move-in-ready home, while dark photos can scare tenants away by making the property appear dirty and uninviting. Consider hiring a professional photographer to ensure the lighting and framing are perfect in every room.

Review other listings to gather inspiration for your own. Highlight unique selling points over standard features, especially if the latter are evident in the photos. Think about what would attract you as a renter. Is it simply a garage with two storage cabinets? Or is it a spacious garage with a shop-ready layout, including two 220V circuits, two sturdy workbenches, and built-in storage?

Master the legal and financial details

Owning an investment property comes with legal rights and responsibilities for both you and your tenants. It’s crucial to familiarize yourself with local rental laws, zoning regulations, and tenant rights to prevent legal liabilities and handle any issues that may arise effectively. Additionally, obtaining landlord insurance is essential to protect against potential property damage and liability.

And remember, owning an investment property lets you take advantage of tax deductions for mortgage interest, property taxes, repairs, and depreciation. Keep detailed records of all income and expenses to ensure you maximize these deductions and continue to earn a profit.

Buyers • July 9, 2024

How to Increase Your Buying Power

by Don Koonce

One of the best ways prospective home buyers can empower themselves when purchasing a home is to improve their buying power. The numbers may seem daunting but identifying ways to strengthen your financial standing will help you each step of the way.

When visualizing your dream home, it’s common for buyers to focus on the physical characteristics. But to mortgage lenders, a home is a numbers game. The following categories related to your buying power demonstrate how lenders identify your financial standing and determine your eligibility for a home purchase. Improvements in these areas will increase your buying power, propelling the strength of your offer when you’re ready to put it on the table.

How to Increase Your Buying Power

Increase Savings For Your Down Payment

As the saying goes, cash is king. The down payment—often 20% of the home’s sale price—can sometimes be the deciding factor between competing offers for a particular home.

Try stashing away a little of each paycheck to build up your savings over time. Set a savings goal, commit a dedicated amount to each pay period, and watch the savings build as time goes on. If you prefer to keep your money separate, open a new account to which you can dedicate the added savings. Another way to save for your down payment is to generate additional income. If you have interest or experience in an area outside of your current job, explore opportunities for part-time work and dedicate the income earned to your down payment savings.

There are numerous benefits to offering a serious down payment. Putting 20% or more down can help your offer stand out, it may allow you to negotiate a lower interest rate on your mortgage and could remove the need for private mortgage insurance (PMI).

Improve Your Credit Score

Plain and simple—a better credit score leads to better interest rate on your mortgage. Your payment history, amounts owed, length of credit history, credit mix, and new credit all factor into your credit score. Although improving it will not happen overnight, a higher credit score will pay dividends in the long run.

To improve your credit score, focus on paying down your credit cards, especially those with high interest. Refrain from opening new lines of credit that aren’t necessary and stay away from large purchases leading up to the time when you are preparing to make an offer. Keep in mind that student loans factor into your financial picture. Paying them off consistently will improve your financial standing in the eyes of lenders.

Stabilize Your Debt to Increase Buying Power

When assessing what you can afford, banks will examine your debt-to-income ratio. Lenders want to know that you’ll be able to pay your mortgage on top of your remaining debt.

They do this by looking at your housing ratio, or front-end ratio, to determine what portion of your income will go to paying your mortgage. Your front-end ratio is calculated by taking your monthly mortgage payment and dividing by your monthly gross income. The higher the ratio, the higher risk of default.

Next, your back-end ratio, or debt-to-income ratio, is used to determine how much of your monthly income goes toward paying your debts. Your back-end ratio is calculated by taking your monthly debt expense (the principal, interest, taxes, and insurance of your mortgage payments, credit card payments, student loans, and any other loan payments), and dividing it by your gross monthly income.

Similar to your credit score, paying off credit cards, and making steady, consistent progress on your loans will help to decrease your debt and improve your debt-to-income ratios, which will increase your buying power.

Although these aspects of your finances don’t cover everything that goes into the purchase of a home, they do play a significant role in how lenders assess your financial standing and thereby eligibility for approval. Increasing your buying power takes time and strategy. Plan accordingly so that when you find your dream home, you’re in the best position possible to buy it.

Living • July 3, 2024

Streamlining Your Life: 7 Tips to Make Downsizing Easier

by Don Koonce

Whether you’re retiring, moving into a smaller space, or simply want to live more minimally, downsizing can simplify the process. After all, the fewer belongings you have, the less you need to pack, move, and organize in your new place. But for many of us, the mere idea of downsizing can be daunting. How do you decide what to keep and what to let go of after accumulating a lifetime of possessions, mementos, and memories?

The secret, as it so often is, is to plan ahead. Here are some tips to make downsizing easier.

Start early:

Begin the downsizing process several months before your move date if you can. Starting early allows you to pace yourself and avoid last-minute rushes. It also gives you time to work through your emotions, so you’re less likely to keep something you don’t use simply because you’ve owned it for years.

Create a downsizing calendar:

Budget your time by dedicating specific days or weekends to different tasks, such as sorting through possessions, donating items, and dealing with recycling or disposal. Like a to-do list, a calendar can inspire action by giving you a clear agenda for each day or week.

As part of the process, research where to drop off items and their operating hours to improve efficiency. For example, you may need to schedule pickups or drop-offs for local charities or other organizations that accept donations. Also allow extra time if you’re posting items online, as they may take longer to sell.

Sample calendar:

Week 1: Sort through bedroom clothes and accessories.
Week 2: Declutter books and paperwork.
Week 3: Tackle the kitchen (utensils, appliances, etc.).
Week 4: Assess living room furniture and storage.
Weeks 5 and 6: Tackle the garage and/or basement.
Week 5: Organize garage sale or list items for sale online.
Week 6: Donate remaining items and arrange for recycling or disposal.

Develop criteria for making decisions:

When planning, factor in your reasons for downsizing, and use these as criteria when faced with difficult choices. For example:

If you’re simplifying: Keep items that bring you joy and get rid of items that cause stress. Prioritize items that add meaning to your life or hold sentimental value.
If you’re cutting costs: Consider getting rid of items associated with costly hobbies or that require expensive maintenance.
If you’re moving into a smaller space: Prioritize belongings you use regularly or that serve a practical purpose. Let go of items that are rarely used or have no clear function.

Sort items by their intended destination:

Designate specific areas for items you plan to keep, donate, sell, recycle, or dispose of. Use labels or colored markers to clearly mark each pile.

Keep: Items that fit your decision-making criteria (see above)
Donate: Items in good condition that others can use
Sell: Valuable items you don’t need but can convert into cash
Recycle: Items that are broken, outdated, or no longer useful, but that can be recycled
Discard: No longer useful items that can’t be recycled

Take it room by room:

Treat each room as a separate project. You may want to start with a smaller room that you’re less emotionally attached to, like a home office, to make decisions easier. Once you’ve finished each room, give yourself a pat on the back before moving to the next. Recognizing these smaller accomplishments can provide a mental boost as you work towards achieving your larger goal.

Consider off-site storage:

If you don’t have as much time as you’d like or have more valuable items than your new space will accommodate, consider renting an off-site storage unit. Some people use storage units for six months to a year after a move, allowing them to sort through their items at a more deliberate pace. This approach lets you gradually incorporate some items into your new living arrangement and decide what to do with the rest. However, be careful not to fall into the “out of sight, out of mind” trap. It’s easy to neglect a storage unit, only to realize years later you’ve made little progress.

Take time to reflect:

For many people, the hardest part of downsizing is letting go of belongings with sentimental value. Give yourself time to process the emotions tied to these items. Think of them as treasured memories rather than losses, and take photos of items you cherish but can’t keep. Shifting your perspective can also be helpful. This can be a liberating transition to a new lifestyle—one that’s more thoughtful about what’s worth holding onto. And remember, there are always new memories to be made!

Living • July 1, 2024

Essential Tips for Building the Grilling Station of Your Dreams

by Don Koonce

Summer is the season for outdoor entertaining, which means it’s time to fire up the grill and dust off the patio furniture. But is your yard the grilling paradise you want it to be, or is it more of a fixer-upper? Here are a few tips to get your backyard in prime shape for the searing, savoring, and relaxing to come.

What’s your vision?

Before diving into the details, let’s start with the vision question: What kind of grilling station do you want? Are you aiming for a cozy spot to share meals with friends and family? Or are you looking to transform your yard into the ultimate grilling paradise? Setting clear goals will guide your preparations and upgrades.

Basic grilling setup

If your goal is a simple, functional space where a few friends can share a meal, focus on the essentials:

Choose a less-trafficked location:

Even a small grill station will take up significant space, not to mention the crowd it may attract. With that in mind, avoid situating it in areas of high foot traffic, such as near the stairs of your deck or along a main walking path. Be sure to provide ample room between the barbecue and your backyard seating.

Pick the grill for you:

If you’re looking to buy a new grill, consider your tastes and needs. Do you love imparting a rich, smoky flavor to your grillables? Charcoal may be your jam. If you prefer speed, convenience, and temperature control, gas is the likely choice. Keep in mind that simple charcoal grills are often more convenient for small yards, as you can easily move them aside when you’re done grilling. Most standalone gas grills come on wheels, but their bulk and weight make them less mobile in comparison. Growing in popularity, electric grills may be the safest and most convenient option—you’re always stocked with fuel—but purists may balk at grilling over anything but an open flame. Plus, repairs can be costly.

Create a prep area:

Your grilling area will be greatly enhanced with a prep and serving station. It doesn’t need to be elaborate—even a small table or cart can do the job. Ideally, it’ll have room for your grilled foods, condiments, and utensils. Even better if it can hold items like a cutting board, plates, and serving platters.

Make your guests comfy:

The right combo of seating will add the social touch to your BBQ setup. Bench seating is a popular option for grilling on the deck, while chairs on the grass impart more of a picnic feel. Choose enough seating for your typical group size, with a mix of chairs and perhaps a small table or two. A picnic table is a popular choice if you have the space. Also consider an umbrella or canopy for shade and weather protection.

Build some ambience:

Installing a fire pit will create a fun social space once the sun goes down. Plenty of styles are available, including simple tabletop models, fire pit bowls, metal standalones, and rustic chimineas. In making your choice, consider factors like cost, style, size, and how the fire pit matches your yard’s design. Adding String lights, lanterns, and/or tiki torches can also make your yard more inviting.

Mixed gender and diverse ethnic group of friends gathering by the pool, with string lights and barbecue, enjoying an informal evening party outdoors.

Ultimate grilling Shangri-La

If you’re dreaming of a more elaborate outdoor kitchen and entertainment area, start planning for these features:

Add a high-end grill and smoker:

Some backyard chefs take grilling seriously. If your smoked brisket and grilled stuffed peppers are already a point of pride, consider upgrading to a smoker or high-end grill. Smokers cook at lower temperatures over a longer period, which infuses meats with deep, smoky flavors and results in incredibly tender and juicy textures. High-end gas grills have a host of features that set them apart from basic grills, including more cooking space, better heat distribution, and built-in thermometers for precision cooking. Many also offer innovative side burners for cooking up veggies or boiling water.

Install outdoor countertops:

The most memorable outdoor kitchens mimic indoor kitchens, complete with ample counterspace, underside storage, and often a built-in dishwasher, sink, and/or fridge. Installation can be complicated, especially if you add plumbing or electrical, but the final product can transform your outdoor living space into a culinary haven. Select a durable material that suits the style of your home and your cooking style. Natural stone, concrete, or tile are good choices. Make sure to include plenty of built-in storage for grilling tools, utensils, and outdoor dining essentials.

Create a comprehensive seating area:

Outdoor living is a different mindset than backyard grilling, so look for ways to integrate multiple seating areas, including a dining table, lounge chairs, an outdoor sectional, and possibly a bar area (bonus points if it blends seamlessly with your countertops). Not only can you host bigger gatherings, but you can move your party from one area to another as the evening progresses (very sophisticated). You can get more mileage out of your space by adding a pergola or retractable awning for all-weather entertaining.

Enhance your lighting:

Built-in lighting can improve both your space’s functionality and its ambiance. At the minimum, install task lighting for areas where you’ll be doing most of the cooking and prep work and ambient lighting such as string lights or wall-mounted sconces around the seating areas. Consider accent lighting to showcase some of your area’s most elegant features, such as architectural details, plants, or pathways.

Upgrade your sound:

A myriad of sound systems are available to set the mood, from basic weather-resistant speakers that connect to your phone via Bluetooth to integrated sound systems that communicate with your home’s existing audio setup. More advanced setups have different audio zones for different areas, such as louder music near the grill and softer music near the dining or lounging spaces.

By starting with a clear vision and breaking down the process into manageable steps, you can create the ideal grilling station for your wants and needs. And remember, you can always start simple and build toward your dream outdoor kitchen in the future. Happy grilling!

Giving • June 27, 2024

Local Giving Opportunity: Wellspring Family Services

by Don Koonce

Every year each Windermere office has Day of Service where brokers volunteer to take on community projects. This year, the Seattle Mount Baker office took on two projects, one to clean the litter from a section of Rainier Ave S, and the other at Wellspring, whose mission is to prevent and address homelessness by connecting families and individuals in crisis to the support and resources they need to regain stability. They provide many services, but this year, we worked to sort and organize donated items for their family store. The store is free for those in need and is set up to give a retail feel. I chose Wellspring this year because I wanted to help Wellspring achieve their mission to end the cycle of family homelessness. We spent three hours volunteering and our managing broker had a nice pizza lunch for us on the deck at the office afterwards.

Wellspring Family Services welcomes your donations! Go here for details.

Thank you for your support!

SOLD • June 25, 2024

SOLD: Custom Burien home, Uplands MidCentury & Marine Hills MidCentury Modern

by Don Koonce

SOLD / CLOSED THIS MONTH

11423 12th Avenue SW
Burien, WA 98146
$769,950

MLS #2233399
CLIP #7641486981
Beds: 3
Baths: 3
Size: 1,710 sqft

Welcome to this custom, like new home tucked away in the heart of Burien. This 3 bed, 2.5 bath home boasts over 1,700 sq. ft. w/ primary bed on the main floor w/ ensuite & walk-in closet. Open concept living consists of custom wood fireplace & open concept kitchen & vaulted ceilings flooding w/ natural light. Next, you’ll find an oversized mudroom/utility room w/ built-ins & plumbing for utility sink. Home consists of oversized 1-car garage @ over 600 sq. ft. Upstairs you’ll find loft area for flex space & 2 bedrooms w/ a full bath. Outside’s a great sized yard & patio. Heat pump for all year heating & cooling & recirculating water heater for instant hot water. Close to shopping, downtown Burien, & more, you’ll love calling this place home! More.

LISTING SOLD / CLOSED

5735 S Hawthorn Road
Seattle, WA 98118
$1,498,000

MLS #2230490
Beds: 5
Baths: 4
Size: 3,058 sqft

Exciting MidCentury in prime Uplands location 2 blocks from Lk WA! Custom-design features of notable UW Architect, John Y Sato, are well-preserved – only 2nd long term owner since the orig. 1967 build. Plenty to showcase here: Vaulted foyer entry, Lk WA & Mt. Baker-to-Mt. Rainier views, soaring basalt rock firplc holding center-stage in liv/din rooms. Fancy updated Quartz/Thermador/Miele kitch has informal dining & opens to famrm w/2nd firplc, window wall of views. Primary & 2nd bedrm both w/ ensuites! Daylite Bsmt:2nd livrm, 2nd kitch, 3rd firplc, 3bedrms, full bath. Beautifl landscaping & patios, view decks, secure gated entry, TONS of storage! Upgrades incl Solar panels, mini-splits, A/C, EV Charging, new LVP floors & more. A rare prize. More.

LISTING NOW UNDER CONTRACT / PENDING

29824 8th Avenue S
Federal Way, WA 98003
$598,950

MLS #2240991
CLIP #5224374523
Beds: 3
Baths: 3
Size: 2,260 sqft

MidCentury Modern vibes ideally located in prized Marine Hills neighborhd, known for its large private lots in serene settings near the shores of Puget Sound. Long term owner’s pride & joy, polished MCM finishes thru-out. Soaring vaulted ceilings, oak hardwds, corner firplc open to living/dining, eat-in kitch, custom glass windows & drs for max. exposure to sunlight, towering evergreens & scenic flowering landscape. 3 spacious bedrms/1.75bths main flr incl. privt bth off primary bedrm. LL: Recrm, 2nd firplc, office, 1/2bth. GIGANTIC garage & workshop, lovely private outdoor spaces, patios & gazebo. Metal roof, gas heat & water heater, new septic 2022. Easy stroll to Redondo Waterfront, MH Swim Club, short hop to Dash Point. Great Buy! More.

Buyers • June 21, 2024

Client Spotlight: Kate & Family Buy their First Home

by Don Koonce

I was honored to help Kate and her family find their perfect starter home — a new four bedroom / three bath in Columbia City, and thrilled to receive the following review:

We can’t recommend Don Koonce enough! We couldn’t have chosen a better realtor to work with! Don was amazing start to finish, he coordinated with the other parties flawlessly and was highly available for our questions. He took the time to explain everything that was happening and what we could expect from each step or requirement. He shared with us that he really enjoyed working with first-time home buyers and with people co-buying a house together – that was also evident in his attention to detail, clear explanations, and going the extra mile when working with us. He was such a joy to work with, and it’s bittersweet to close out our time with him. Thank you, Don, for helping us find the perfect house!

Real Estate News & Information • June 20, 2024

Local Market Update – June 2024

by Don Koonce

Local Market Update – June 2024

The numbers are in, and last month’s real estate sales data in our region told two tales. The first is of a market that has had far more demand than supply, with rising prices and quickening market times reflecting this imbalance. The second tale is of a market attracting the attention of sellers eager to list their homes while prices are at their peak, finally helping address the demand-supply imbalance and giving buyers renewed hope after a challenging spring.

In May, both inventory levels and closed sales transactions increased compared to a year ago, indicating that home buyers and sellers alike have adjusted to interest rates hovering around 7%. Market strategists are hopeful that for-sale inventory will continue its upward trend, which could stabilize price levels over the summer months.

In May, the median sold price of a King County home hit the million-dollar mark, increasing 10% year over year to $1,001,000. This record-high price largely reflects home sales that went under contract in April, when inventory was at its scarcest and buyer competition at its most intense, with the majority of homes selling above list price and in under a week. King County condos also saw sold prices jump in May, rising 18% year over year to $595,000. As a counter to these price increases, the supply logjam is starting to break. By the end of May, King County had 48% more active residential listings and 26% more condo listings than it did when the month started. This influx of new inventory should help modulate prices in the months ahead.

Last month, the median sold price of a Seattle single-family home increased 7% year over year to $965,000. There were 13% more homes sold than a year ago and 68% closed at or above list price. Seattle condo prices rose in May, too, up 9% from $550,000 last year to $600,000. Despite these price increases, there is hope on the horizon for buyers: more selection to choose from. By May 31, the number of actively listed single-family homes was up 41% from May 1, and condo supply had risen by 20% during the month. This new inventory might slow price growth and offer light at the end of the tunnel for Seattle home and condo buyers previously shut out of the competitive spring market.

The Eastside real estate market saw a 32% year-over-year increase in the number of single-family homes sold in May, as well as a 17% bump in median residential sold prices, up from $1,450,000 a year ago to $1,699,975. Of the homes sold on the Eastside last month, almost 6 in 10 closed above list price, and those averaged only five days on the market. Despite these hyper-competitive factors, we may see upcoming market mellowing in both price and pace, as the Eastside had 53% more active residential listings on May 31 than it had on May 1. The same dynamics played out in the Eastside condo market: Closed unit sales jumped 36% year over year, median sold prices were up 29% to $748,500, and active inventory climbed 38% over the course of the month.

In Snohomish County, the median sold price of a single-family home rose 6% year over year, from $780,000 in May 2023 to $828,000. Over half of May’s sold homes closed above list price and 89% sold in 30 days or less. These data reflect closed sales of listings that went under contract during the peak of the spring market, and as with the other three regions above, we may begin to see some market modulation in the coming months due to increased inventory. Snohomish County had 84% more residential listings and 32% more condo listings at the end of May than at the start of the month, a meteoric increase indeed.

In a market where bidding wars have been the norm and buyer competition has pushed home and condo prices ever higher, an infusion of new inventory is like a breath of fresh air. Though May’s sales data reflect the outcome of a seller-friendly spring market, the summer months should be an interesting mix of mellowing competition and sidelined buyers re-engaging with a more open listings landscape.

For help navigating this shift in the market, reach out to your Windermere broker. With a deep understanding of current trends and a laser focus on your priorities, they’ll provide personalized guidance and detailed analysis to help you achieve your goals.

More.

Living • June 18, 2024

Home Maintenance Checklist: Summer Edition

by Don Koonce

As summer nears, who doesn’t dream of camping trips, weekend getaways, and hammock lay-arounds? But before you book your entire summer, remember that it’s also an important time for home maintenance and repair, particularly outdoors. Whether you’re prepping your home for summer fun or enhancing its efficiency, here’s a checklist to consider while the weather is warm.

Check and service AC system

Optimize your home for cooler temperatures by having your AC system checked and serviced, which prolongs the life of your unit and prevents costly repairs. Also be sure to change the AC filter regularly — up to once a month in the summer.

Seal air escape routes

Keep cool air from escaping by sealing your windows and doors tight. Check for any gaps or cracks in your window seals and door frames. Replace weatherstripping or apply caulking as needed to improve energy efficiency and keep costs down.

Maintain your patios and fencing

Spruce up your deck, patio, and fence by sweeping away debris, cleaning and sealing surfaces, and checking for needed repairs. Mold and mildew are common here, so consider pressure washing on a lower setting before sealing to keep everything looking fresh and clean.

Prep for summer entertaining

Give your grilling surfaces a makeover by removing built-up grease and debris from the grill grates, burners, and drip pans. Next, check your propane levels to ensure you’re ready for the season. Also wipe down your outdoor furniture and lighting and replace burnt-out bulbs, so guests have a comfortable, well-lit space to relax.

Inspect your roof

The warm, dry air makes summer the perfect time for roof maintenance. Look for damaged or missing shingles, soft spots, or areas where roof flashing may need repair. While you can handle some repairs yourself — flashing issues can often be fixed with a new layer of caulk or mortar — it’s best to hire a professional if you see signs of water damage.

Fix your gutters

Cleaning your gutters may be a year-round affair, but gutter repair is a warm-weather activity. Inspect your gutters and downspouts for cracks, sags, loose fasteners, and rust spots and fix as necessary. You can seal smaller leaks with gutter sealant or a patch kit, but you’ll likely want to replace sections with more significant damage.

Give your garden some love

Weeds can flourish in hot weather and compete with your plants for moisture and nutrients. Combat this by regularly pulling weeds and applying a 2-inch layer of mulch in your planting areas. Also, remember to water wisely, preferably early in the morning or late in the evening, to minimize evaporation and ensure efficient water usage.

Tend to your pool

Your pool has been waiting all year to show off. Keep it pristine and safe for swimmers by
regularly checking and maintaining the chemical levels to prevent contaminants and pollutants. Another safety tip: ensure all safety equipment, such as pool covers and ladders, are in good condition.

Most important of all, take advantage of the sunshine for some well-deserved R&R!