Q2 2019 Reports: Market Update

Q2 Market Snapshot for Seattle and the Eastside

 

Changes in the home lending environment drove down mortgage interest rates in Q2 to their lowest levels in years, giving buyers more buying power for their money and stimulating demand for available homes on the market.

 

The number of homes for sale is up markedly, especially in Seattle, as is the number of closed sales, with low interest rates and high local incomes taking much of the credit for the market activity. Sale prices have remained modest as buyers feel more cautious about overpaying for a home at or near the cyclical market peak.

 

As stated in earlier reports, the market has much to offer buyers and sellers this year. We believe those looking to make a move in the next few years should do so this year when they can still secure incredibly affordable mortgage financing. Today’s buyers should be prepared to stay in their home at least five years. Home sellers moving to lower cost regions may also benefit from selling now. We know that every situation is unique, and we are here to help you evaluate your personal real estate holdings and purchase strategy.

 

Click or scroll down to find your area report:

Seattle | Eastside | Mercer Island | Condos | Waterfront

 


SEATTLE

The number of homes for sale continued to rise across Seattle. West Seattle and Richmond Beach/Shoreline experienced the greatest velocity in number of sales. Seattle’s overall Median Sale Price was up 4.8% from Q1 to $760,000, but down 5.2% from Q2 2018. The Average $ Per Square Foot was down 5.1% from Q2 last year to $436. North Seattle, Queen Anne/Magnolia and West Seattle all performed better than the average in Q2. Seattle homeowners have seen a 61% increase in the Median Sale Price over the past five years.

Seattle Chart

Click here to view the complete report for a neighborhood by neighborhood breakdown of Average Sale Price, size, and number of homes sold.

Seattle Report

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EASTSIDE

The Eastside cities of Bellevue, Kirkland, and Redmond have become the epicenter of tech growth planned over the next few years. Recent announcements from Amazon, Google, Facebook, and Microsoft, coupled with light rail coming in 2023, have made the Eastside the place to be. The Eastside’s Median Sale Price was up 1.9% from Q1 to $945,000, but down 1.6% from Q2 2018’s peak of $960,305. The five-year Eastside median price trend is up 53% since 2014.

Mercer Island rebounded in Q2 from a poorly performing Q1 while Kirkland and South Eastside fared better than average. A total of 2,334 Eastside home sales closed in Q2, up 1.2% from Q2 2018.

Eastside Chart

Click here for the full report and neighborhood-by-neighborhood statistics!

Eastside Review

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MERCER ISLAND

Mercer Island’s Median Sale Price rallied back up in Q2 to $1.8 million after lower than typical sales drove it down to $1.53 in Q1. Eight waterfront sales contributed to the overall increase, as did the total sales velocity of 101 homes sold in Q2—the highest number of sales than in any of the preceding eight quarters.

Mercer Island Chart

Click here to view the complete report for a neighborhood by neighborhood breakdown of Average Sale Price, size, and number of homes sold.

Mercer Island Report

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CONDOS – SEATTLE & EASTSIDE

Seattle’s condo Median Sale Price was up 5.1% from Q1 to $483,500, but down 7.9% from a peak of $525,000 in Q2 of 2018. The Average $ Per Square Foot was $580. Condos in West Seattle and Lake Forest Park/Kenmore performed best in Q2.

The Eastside’s condo Median Sale Price was up 4.3% from Q1 to $480,000, but down 2.1% from the $490,500 median of Q2 2018. The Average $ Per Square Foot was $453. West Bellevue and Kirkland Condos performed well above condos in other Eastside markets.

Check out all of these factoids and more in the full condo report.

Condo Report

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WATERFRONT

A significant number of private waterfront homes transacted in Q2 2019—fourteen on the Eastside, eight on Mercer Island, and eleven each in Seattle and Lake Sammamish. The highest Q2 sale was a 1998 Yarrow Point home on 115 feet of waterfront sold at $14,250,000 after 22 days on the market. The lowest sale was a 1945 Kennydale area home on 53 feet of Lake Washington waterfront for $1,075,000 on the market for 64 days.

The Eastside and Lake Sammamish both had a very moderate supply of inventory in relation to the number of sales that occurred. Seattle and Mercer Island still had more homes on the market than recent demand has dictated, although the volume of sales in Q2 improved the oversupply of inventory, heating up these markets to their highest levels in some time.

This top-level overview of the entire Seattle-Eastside private waterfront market, including Mercer Island and Lake Sammamish, provides a glance into the trends occurring in our region over time. Interesting, and certainly insightful, it in no way replaces an in-depth analysis on waterfront value provided by a savvy broker with years of local waterfront experience.

Waterfront Report

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ABOUT WINDERMERE MERCER ISLAND

We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.

 

 

© Copyright 2019, Windermere Real Estate/Mercer Island. Information and statistics derived from Northwest Multiple Listing Service and deemed accurate but not guaranteed.


Posted on July 15, 2019 at 3:30 pm
Windermere Mercer Island | Posted in Uncategorized | Tagged , , , , , , , , , ,

New Real Estate Excise Tax (REET) Rate in 2020

We Want YOU...to Know About the Excise Tax Change

 

Now that Washington State Senate Bill 5998 has been signed into law, our local real estate excise tax—the tax paid when you sell a property—will be getting a facelift in 2020. The flat rate of the past will make way for a new tiered system which gives owners a tax cut on the first $500,000 of home value, keeps the current tax rate on the next $1 million of value, and then increases it sharply after $1.5 million.

 

The good news is that taxes will go down for the vast majority (~93%) of sellers in King County. Sellers of luxury homes that fetch more than $1.56m, however, will be paying more—much, much more in the case of multi-million dollar home sales.

 

Wondering how the changes might impact your bottom line when it comes time to sell? Scroll down or check out our quick reference worksheet

 

2020 CHnages to King County Excise Taxes

 

DETAILS & BACKGROUND

 

The previous flat state REET tax of 1.28% (1.78% after the 0.5% local portion is added) will be replaced on January 1, 2020, by the following rates (total REET after King County local portion is shown in parenthesis):

 

1.1% (1.6%) – Portion of selling price less than or equal to $500,000

1.28% (1.78%) – Portion of selling price greater than $500,000 and equal to or less than $1.5 million

2.75% (3.25%) – Portion of selling price greater than $1.5 million and equal to or less than $3 million

3.0% (3.5%) – Portion of selling price greater than $3 million


These thresholds may be adjusted again in 2022 and every four years after that using a formula for calculating value trends.


The current state real estate excise tax rate has been the same since July 1, 1989 while the local portion of the rate has been managed by each jurisdiction individually. You can find the full details in this Real Estate Excise Tax historical rates chart provided by the Department of Revenue.


The state provides a summary of the history and use of the real estate excise tax in Washington State detailing changes over the years. Currently, the bulk of the estate tax (92.3%) goes to the General Fund. Beginning January 1, 2020, and ending June 30, 2023, revenue distributions must be as follows: 1.7 percent must be deposited in the Public Works Assistance Account; 1.4 percent must be deposited in the City-County Assistance Account; 79.4 percent must be deposited in the general fund; and the remaining amount must be deposited in the Education Legacy Trust Account. Beginning July 1, 2023, and thereafter, revenue distributions to the Public Works Assistance Account increases to 5.2 percent. You can find the full law and definitions in Chapter 458-61A WAC (Washington Administrative Code).

 

SO WHAT’S THE BOTTOM LINE?

 

If you sell for $1,561,258 or less in King County, you will pay the same or less (up $900 less) in REET after 1/1/20. This is great news for most property owners in King County and across the state. Because the rate states the same on the portion of the selling price greater than $500,000 and equal to or less than $1.5 million as it currently is, all the savings comes in the portion below $500,000. This begins to whittle away as you creep above $1.5 million and into the higher tax rate of 2.75% (3.25%).


If you sell for more than that amount, you’ll be paying more–often much more. You can see from the quick reference chart below that the seller of a $2.5 million property will pay an additional $13,800, while a $5 million sale will cost an extra $55,550 and a $10 million sale a whopping $141,550 more.


Everyone will have a different take on the new tax rate, but if you have a valuable property and contributing more to the state’s coffers isn’t part of your charitable giving strategy, selling in 2019 might offer significant savings. On the other hand, selling in 2020 and beyond funds education and public works at greater levels than ever before, and that benefits everyone.

 

EXCISE TAX QUICK REFERENCE WORKSHEET


 

 

MERCER ISLAND


We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.

 

© Copyright 2019, Windermere Real Estate/Mercer Island. Originally posted on Windermere Mercer Island’s “Local in Seattle” blog.


Posted on June 28, 2019 at 4:16 pm
Windermere Mercer Island | Posted in Uncategorized | Tagged , , , , , , , ,

Free Recycle & Shred Event May 18th

Free Recycling Event Saturday, May 18th from 9am to 2pm

 

Hosted in our Parking Lot:

2737 77TH AVE SE
MERCER ISLAND

 


Bring your recyclable items (working or not) to the event. All recycling services are free!

We’re also sponsoring a Confidential Data Disposal truck for free, secure shredding of sensitive documents.

Saturday, May 18th
9 am – 2 pm


What we can recycle:

  • Most electronics, working or not, whole or in part
  • Scrap metal of any kind ferrous and non-ferrous
  • Appliances
  • Washers and dryers
  • Water heaters
  • Water coolers
  • Dishwashers
  • Small appliances, blenders, toasters, coffee makers, bread makers, kitchen wear, metal pots
  • Computers and computer Accessories
  • Flat Screen Computer monitors (no CRTs please)
  • Desktop PC Computers, Servers, Server racks
  • Laptop and Notebook Computers
  • Scanners and Copiers
  • Laser and Inkjet Printers
  • Fax Machines and All-In-One devices
  • Printer cartridges, toner cartridges
  • Computer speakers
  • Circuit Boards/Motherboards
  • Radios
  • Receivers
  • Speakers
  • CD Discs, DVD Discs, Media
  • Computer Parts
  • Desktop Computers
  • Keyboards
  • Laptops
  • Floppy Disks
  • Mixed Components
  • Modems
  • Multi Line Phones
  • Networking Hardware
  • PBX Systems
  • Phone Systems
  • PDA/Handheld Systems
  • Phone Answering Machines
  • Photo Copy Machines
  • Printer Parts
  • Printers
  • External Connectors
  • Fax Machines
  • Disk Drives
  • Batteries (not household alkaline batteries)
  • Larger Batteries/ Car Batteries
  • Dry Cell NiCad Batteries
  • Used Computer Items
  • Keyboards and mice
  • Backup UPS systems and UPS batteries
  • Cell Phone Batteries/ Laptop Batteries
  • Home Phones
  • Home Entertainment
  • Small Answering Machines
  • Stereo Equipment
  • DVD Players
  • VCR Players
  • Cellular Phones and Accessories
  • Used Paging Equipment
  • Cable TV Converter Equipment
  • CB’s
  • Chargers (cell phones)
  • Radio Equipment
  • Remote Control Handsets
  • Satellite TV Equipment
  • Scanners
  • Single Line Phones
  • Typewriters
  • Two Way Radios
  • VCR (Video Cassette Recorders)
  • Voicemail Systems
  • Video Cameras
  • Walkie Talkies
  • Wires and Connectors
  • Cables
  • Medical equipment
  • Vehicles
  • Motorbikes
  • Bicycles
  • Scooters
  • Tractors
  • Metal furniture, metal file cabinets, metal desks, metal shelving, metal window frame (please no glass)
  • Lawnmowers (please no gasoline)
  • Edgers
  • Generators
  • Metal patio furniture
  • Garden tools
  • Weed eaters
  • Metal containers
  • Books
  • Refrigerators

We cannot accept the following:

  • Wood furniture
  • CRT televisions (flat screens OK)
  • CRT monitors (flat screens OK)
  • Chemicals
  • Paint
  • Tires
  • Lightbulbs
  • Glass
  • Gasoline
  • Oil

Windermere Mercer Island, 2737 77th Ave SE Suite 100, Mercer Island, 98040

 


ABOUT WINDERMERE MERCER ISLAND

We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.

 

© Copyright 2019, Windermere Real Estate/Mercer Island


Posted on May 6, 2019 at 11:57 am
Windermere Mercer Island | Posted in Uncategorized | Tagged , , , , , , , , , , ,

Q1 2019 Reports: How’s the Market?

Q1 Market Snapshot for Seattle and the Eastside

 

Be forewarned, this quarter’s report looks somewhat dismal. There are two very relevant facts that should be taken into consideration when reviewing it. The first is that Q1 is nearly always the worst performing quarter of any year because the sales completed in Q1 typically went under contract between late November and the end of February—a notably quieter time of year in our seasonal Seattle market.

 

The second aspect to consider is that Q1 of 2018 was an atypically strong quarter and likely marked the peak of the current real estate cycle as buyers approach this year’s spring market with cautious optimism rather than the reckless abandon that we witnessed in the first four months of last year.

 

Since then, mortgage interest rates rose in November to a seven-year high of 4.87% and then subsequently came down to 4.27% in March—creating enough of a stir to get buyers attention. Each 1% increase in mortgage interest rate is equivalent to a 10% increase in home price. Conversely, a half point drop in the rate is comparable to a 5% price reduction.

 

Sellers and buyers are beginning the second quarter on more equal footing than they’ve had since the late 1990’s as we’ve rapidly oscillated between a seller’s market, a buyer’s market, and then a seller’s market again with little breathing room in between. Sellers have enjoyed a seven-year run with double digit annual appreciation most of those years. Buyers have enjoyed record setting low interest rates and can purchase today at what amounts to roughly 60% of the monthly expense of the forty-seven-year average 8.09% mortgage interest rate.

 

The market has much to offer buyers and sellers this year. We believe those looking to make a move in the next few years should do so this year when they can still secure incredibly affordable mortgage financing. Today’s buyers should be prepared to stay in their home at least five years. Home sellers moving to lower cost regions may also benefit from selling now. We know that every situation is unique, and we are here to help you evaluate your personal real estate holdings and purchase strategy.

 

Click or scroll down to find your area report:

Seattle | Eastside | Mercer Island | Condos | Waterfront

 


SEATTLE

The number of homes for sale more than doubled in Q1 compared to one year ago giving buyers options and compelling sellers to put their best foot forward. Seattle’s overall Median Sale Price was down 5.8% from Q1 2018 to $725,000 and down 1.4% from Q4. The Average $ Per Square Foot was down 1.6% from Q1 last year to $422. Queen Anne-Magnolia and North Seattle were the most impacted markets with the largest decrease in median price. As disappointing as the numbers are, Seattle homeowners have seen a 60% increase in the Median Sale Price over the past five years.

Seattle Chart

Click here to view the complete report for a neighborhood by neighborhood breakdown of Average Sale Price, size, and number of homes sold.

Seattle Report

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EASTSIDE

Continued employment growth and planned expansion on the Eastside have benefitted homeowners as compared to Seattle as Bellevue, Redmond and Kirkland prepare for unprecedented development in the next decade. The Eastside’s Median Sale Price was down 1.8% from Q1 2018 to $927,000, but up 3.9% from Q4. The five-year Eastside median price trend is up 53% over 2014.

East Bellevue, East of Lake Sammamish, and Woodinville performed best in Q1—all with median price increases rather than reductions. A total of 1,209 home sales closed in Q1, which was down significantly from Q4, but down only slightly from the robust Q1 2018.

Eastside Chart

Click here for the full report and neighborhood-by-neighborhood statistics!

Eastside Review

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MERCER ISLAND

Following a 10% Median Sale Price increase in 2018, the Mercer Island median fell 1.9% in Q1 2019 from Q1 2018 and 10.9% from Q4. Fewer luxury sales—only one waterfront sold in Q1—and lower demand contributed to the off quarter. The lower velocity of luxury sales impacted the Average Sale Price even more so than Realistically priced homes in solid condition and with desirable lot amenities and settings will do well in Q2 as they are met with demand from the greatest segment of buyers.

Mercer Island Chart

Click here to view the complete report for a neighborhood by neighborhood breakdown of Average Sale Price, size, and number of homes sold.

Mercer Island Report

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CONDOS – SEATTLE & EASTSIDE

Affordability and access to transportation and amenities continues to drive condo desirability, but a nearly three-fold increase in the number of units for sale and softening apartment rents have tempered demand in some areas.

Seattle’s Condo Median Sale Price was down 4% from Q4 and 10.7% from Q1 2018 to $460,000 following a 12.8% median price increase in 2018. The Average $ Per Square Foot was $577. West Seattle and Queen Anne condos fared better than average while condos prices to the north softened a bit more.

The Eastside’s Condo Median Sale Price was down 5.5% from Q4 and 4.2% from Q1 2018 to $460,000—the same as Seattle—following a 17.2% median price increase in 2018 and a 20.6% increase in 2017. The Average $ Per Square Foot was $431. South Eastside and Mercer Island condos performed better than average while Kirkland condos struggled in Q1.

Check out all of these factoids and more in the full condo report.

Condo Report

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WATERFRONT

The Eastside had more private waterfront activity than Seattle, Mercer Island & Lake Sammamish combined. Seattle and Mercer Island sales were far slower than typical in Q1 with only two sales in Seattle and one sale on Mercer Island reported to NWMLS. Mercer Island had eight Q1 sales in 2017 and five in 2018. Seattle had six Q1 sales in 2017 and 3 in 2018.

The highest Q1 sale was a 1963 Yarrow Point home on 80 feet of waterfront sold at $8,650,000 after only 5 days on the market. The lowest sale was a 1940 Pleasure Point bungalow in South Bellevue with 45 feet of waterfront for $1,560,000 on the market for 7 days. Waterfront homes sold in Q1 tended to either sell immediately or languish on the market for months with very few finding middle ground.

This top-level overview of the entire Seattle-Eastside private waterfront market, including Mercer Island and Lake Sammamish, provides a glance into the trends occurring in our region over time. Interesting, and certainly insightful, it in no way replaces an in-depth analysis on waterfront value provided by a savvy broker with years of local waterfront experience.

Check out the full Waterfront Report for a complete list of waterfront home sales by address and community.

Waterfront Report

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ABOUT WINDERMERE MERCER ISLAND

We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.

 

© Copyright 2019, Windermere Real Estate/Mercer Island. Information and statistics derived from Northwest Multiple Listing Service and deemed accurate but not guaranteed.


Posted on April 28, 2019 at 4:21 pm
Windermere Mercer Island | Posted in Uncategorized | Tagged , , , , , , , , , ,

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