Is the Puget Sound Real Estate Market Going Crazy?

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Today I’m going to be giving you a real estate market update for the Puget Sound area. I have a few concerns about the market and I will be addressing them here.

You need to understand that at this time last year, the average sale price in Puget sound was $521,000. This year it is now $615,000. That is 14% appreciation in one year! That’s almost unheard of. That’s a change of $236 per sq. ft. and now we’re closer to $270.

These multiple offer situations are driving home prices through the roof. When cash buyers come in, they don’t need to get an appraisal done on the home, so the appraisers have no chance to value the home. This is causing home values to rise unchecked. Foreign investors are also bringing in a lot of money to the area, and these people often have deep pockets.

Appraisals keep checks and balances on the real estate market, so how are we going to handle this problem?

If you’re a buyer, please understand that this is normal. We’re seeing levels rise to where they were at the peak of the market, so you’re not getting ripped off. However, be wary when you’re fighting 15 other people for a home and the price escalates rapidly. What I suggest you do is look at homes that have been on the market for 2-3 weeks. There will be less competition from buyers and these homes will be more affordable. Just make sure that they’re in good condition.

If you have any further questions, please don’t hesitate to contact me!

Market Update from Seattle

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Hi, everyone! Today, we’ll discuss market conditions in the Seattle area.

In September, the average asking price was $633,000 in Seattle; $230,000 in Tacoma; $342,000 in Everett; and $953,000 in Bellevue. Likewise, the average sold price was $646,000 in Seattle; $228,000 in Tacoma; $335,000 in Everett; and $953,000 in Bellevue. It is still a seller’s market, but it’s slowing down!

The number one reason why people don’t move to Western Washington is the home price. However, there is an exception: high-tech industry home buyers find Seattle very affordable.

The average time it took to sell in Seattle took 23 days; in Tacoma took 46 days; in Everett took 32 days; and in Bellevue took 25 days. On average, people live in their homes five to seven years before moving.

If you have any questions about what these numbers mean for you, please don't hesitate to reach out to us. We're always here to be your real estate resource!

Are You Ready to Buy a Home?

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Selling a home? Click here for a FREE Home Value Report

Buying a home is a serious step. One common mistake buyers and sellers make is not being emotionally prepared to make an offer on a home.

Some buyers can spend a couple of years getting their finances in order. Then they get their loan approved and look at homes with a real estate agent. Finally, they find the house of their dreams, and what happens? They want to sleep on it, or pray on it, or get a family member's opinion before they make on offer.

The reality is that in this market, if you snooze, you lose. Correctly priced properties are just flying off the market. You have to be emotionally prepared to make that decision and make an offer. Look at homes on Tuesdays, Wednesdays and Thursdays if you are ready to make an offer. Weekends are the worst time to make an offer because a lot of other buyers are out there and you are almost guaranteed to wind up in a multiple offer situation.

If you have any questions, please do not hesitate to reach out to me. I would be happy to help you.

What Is the Number One Mistake Seattle Buyers Are Making?

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What are real estate conditions in Seattle like right now? Many folks in our area are curious about whether now is the time to buy and whether conditions are favorable for a successful home sale.

There are ten key mistakes that buyers in our area make all the time, but right now the number one mistake buyers make is waiting to make their move. There are several reasons why:

• Inventory is low: We only have four weeks worth of inventory; if nothing comes on the market in the next four weeks, there will be nothing to buy in our area!


• Interest rates are still low: Interest rates are below 4% right now. It's pretty safe to say that you might never see rates that low again!

Think about current conditions this way: a 1% increase in interest rates means the amount of home you can purchase just went down by 10%. For example, if you were qualified to buy a $400,000 home, but rates jumped by 1% before you found a home, you would only be able to afford a $360,000 home!

The most deadly mistake that buyers are making right now is that they're waiting to buy. We don't want you to do the same! Give us a call or shoot us an email with any of your questions and concerns about our current market. We would love to hear from you!