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FEBRUARY 8, 2017
Buyers:
VOL. 98, NO. 6
Brokers Draw a Roadmap For Moving up, Downtown
Get Prepared for the 2017 Housing Market
S
o you’re ready to purchase a house in 2017. You’ve saved for your down payment, you’ve looked on-line at homes for a while now and 2017 is the year. Good for you. Home Stewart ownership is a great Some homes will Karstens financial decision for have multiple your long-term future. offers after the WINDERMERE But as you may know, first week on REAL ESTATE the housing inventory is the market, so low and demand is high. it might not Home prices in King County be easy. But with the right went up, on average, 11% in preparation and mind-set, 2016. They are predicted to you will greatly increase your go up another 6% to 7% in chances of getting your dream 2017. A balanced inventory home. Here are four tips for is around 5 to 6 months… buyers to get prepared in this inventory in King County is competitive market: hovering at about 1 month.
THE QUINTESSENTIAL NW MODERN TOWNHOUSE AS INTERPRETED BY RENOWNED ARCHITECT RALPH ANDERSON.
@qamagnews
QUEEN ANNE TOWNHOUSE
$2,996,000
MOIRA E. HOLLEY moirα@moirαpresents.com 2 0 6 . 6 6 0 . 4 78 7
1. Get preapproved by a reputable lender: This should be your first step in your buying process. A preapproval letter is a letter from the lender that states you are “conditionally” qualified for a loan up to a certain amount. This will let you know exactly how much house you can afford. Most offers require that you have a preapproval letter attached. The letter lets the prospective Seller know that you can afford the home and it only takes a couple of days to get pre-approved. A more powerful option is to get a full loan commitment from a lender. This process is becoming increasingly popular for Buyers to standout from the crowd and can take one to two weeks to complete, but it can be very beneficial. First, it lets the Seller know that you are a serious Buyer and have already been approved above and beyond a preapproval letter. Second, with a full loan commitment you are able
moirαpresents .com
➧ MARKET, Page R3
It’s official. Our Seattle metro area boasts the fastest-growing house prices in the US, according to the S&P/Case-Shiller Home Price Index. As of November 2016, the median home price in the tri-county region rose 10.4-% year-over-year – that’s nearly double the US national index. Demand is high and inventory is historically low, especially in close-in neighborhoods like Magnolia and Queen Dean Anne near urban employment centers. In fact, the Jones cost of housing here set a new benchmark value in 2016, rising to $790,000 in zip code 98119; REALOGICS $918,000 in 98119; and $1,038,000 in 98102. SOTHEBY’S Price escalation generally means it’s a good INTERNATIONAL time to sell, especially for those whom patiently REALTY waited out value recovery in the wake of the Great Recession. Yet buyers complain of slim pickings because would-be sellers are staying put for fear of not finding adequate replacement homes. So this vicious cycle persists. Still others dream about a new home, but grimace at the prospect of competing with multiple offers or taking on a renovation while treading water in a rental home. Astute shoppers are taking advantage luxury high-rise condominiums that offer presales before construction starts. New developments like NEXUS, a 41-story condominium at 1200 Howell Street, will allow buyers to lock in a purchase price when the homes are released for sale in March 2017. Developers are willing to offer introductory pricing, preferred selection and opportunities for personalization options in exchange for reducing their market risk and satisfying financing requirements. Securing a presale at NEXUS requires an initial 5% earnest money deposit held in escrow, but the closing won’t occur until mid-2019, about thirty months from now. A presale buyer doesn’t need to think about the move for another two years and there’s no fear of price escalation or renovations. Current home owners will also enjoy another two years of appreciation while their new condominium is being built. It’s even possible that the value of one’s future home could be buoyed by the same rising tides – a scenario we call double equity. Investing with confidence in downtown Seattle requires understanding the market fundamentals. Job growth, traffic congestion, construction costs and comparative housing costs between renting and owning – all factors in the balance supply and demand. Robust housing demand stems mostly from a booming job market, led by tech titans that have made downtown Seattle a major urban campus and/or their corporate headquarters. New employees are attracted not only by the job offer but by the relative affordability of our region, an enviable “lock and leave” lifestyle that’s walkable for work and play, and a lack of a state income tax. That’s compelling and it shows in population ➧ ROADMAP, Page R2
“Stewart’s knowledge and skills made a stressful situation of letting go of our family home painless and rewarding at the same time. We are thankful to have found Stewart and consider him a good friend”. – Marty & Darcy Neubauer
Exceptional Service with your Goals in Mind
STEWART KARSTENS 206-601-3421 www.stewartkarstens.com