APRIL HOUSING UPDATE
The signs are generally pointing in the right direction for our local (and national) residential real estate scene, but it is taking more time than usual to turn a cruise-ship-sized sector around without leaving damage in its wake.
“After nearly a year, the housing sector’s contraction is coming to an end,” notes Lawrence Yun, National Association of Realtors® chief economist, speaking about the U.S. market. “Existing-home sales, pending contracts and new-home construction pending contracts have turned the corner and climbed for the past three months.”
Locally, the number of home buyers to sign pending-sale contracts has risen for four consecutive months – indicating an increase in demand. There were 2364 Pendings in March on all home types combined in King County, a 19% increase from February and the highest total since August.
That’s not really saying much since the housing market has mostly been in hibernation during the fall/winter months. In fact, after the first quarter, we are on pace to deliver the third-fewest annual home sales in this still-young century.
Read a detailed assessment of our housing market in my most recent blog post: King County Housing Market ‘Springing’ in Right Direction
CONDO NEWS
We learned in recent weeks that the grand unveiling at Infinity Shore Club Residences, featured in the February newsletter, has been delayed yet again. Liens from building contractors reportedly totaling about $14M have been placed on the 37-unit project near Alki Point in West Seattle. The sale of homes with pending legal issues cannot be completed until the matter is resolved.
We toured this stunning beachfront condo earlier this year and were ready to celebrate its opening – but all is now on hold. The president of the project developer told Puget Sound Business Journal that it hopes buyers can take possession of their condo residences this summer pending resolution. Of course, a lot of the issues will resolve themselves when buyers complete their purchases and funds can be used toward any outstanding contractor bills. Stay tuned!
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An update on an item last reported in the January newsletter: The civil complaint filed by the homeowners of Insignia Towers in Belltown against Bosa Development Washington and 21 of its subcontractors has a new trial date – Nov. 16. The date has been postponed three times, most recently this month, as parties attempt to resolve outstanding issues and avoid trial.
The complaint centers around Insignia’s owners claiming a breach of the Washington Condominium Act pertaining to warranties – a commonly seen action against contractors of new condos. The building’s Homeowners Association is claiming defects or deficiencies by Bosa and its contractors in a range of materials, design and construction.
This has caused challenges for buyers seeking financing to purchase a home in the two-tower community that opened in 2015. Buyers must rely on portfolio lenders – known for holding the mortgage through the duration of the loan – such as Washington Federal to finance the purchase. That’s because traditional lenders typically do not underwrite loans when there is a high risk of pending litigation.
LUXURY LIVING
We start this month’s biggest and best listings with one of the priciest on record. Hold onto your jaw and clutch your pearls, for this is one stunning property. This 85-plus-acre estate in the San Juans – known as Halftide Farms – includes three luxury mansions, each with guest cottages, as well as two pools, four ponds, caretaker quarters, tennis and pickleball courts, putting green, and about 650 ft. of private beach along Griffin Bay. In total, there are 11 bedrooms, 9.75 bathrooms, 13,109 interior sq. ft. and garage parking for 13 vehicles. A property like this cannot be adequately described in a traditional listing, so the listing agent put together this helpful lookbook. The Ackerley family are reportedly the owners – they of Seattle Sonics ownership fame – and have decided to sell the expansive compound after three decades of stewardship. List price: $75M ($5721/sq. ft.) – the second-highest price ever listed on the Northwest MLS. (An $85M property on Hunts Point was listed last year but did not sell. The most expensive MLS-listed property to sell was $60M in 2020, also on Hunts Point).
Here’s another stunner, making a return to our newsletter after failing to sell last year. It’s a 5-bed, 5.5-bath, 11,412 sq. ft., 2-story with basement on 10 acres in the May Valley section of unincorporated Issaquah. The Ralph Anderson-designed estate sits on a plateau near Squak Mountain and provides outstanding Cascade views. The iconic Northwest contemporary home delivers wood ceilings, beams, built-ins and floors. A massive wine cellar, sports courts and putting green will keep everyone busy. The estate has been on the market, on and off, since 2021, then at $14.75M. Now, the sellers are seeking “only” $7.825M ($686/sq. ft.), or a 47% discount of the original figure.
We tend to uncover at least one eye-popping new home on the market in the exclusive city of Medina every month and April is no different. Here is a 4-bed, 3.5-bath, 4600 sq. ft., 1997-built, 2-story home. The 1-acre estate – located only a few homes north on the same street as where Bill and Melinda Gates raised their children – features a dramatic, gated entrance, landscaped grounds and a mostly-white, open-plan interior that is both elegant and comfy. The capstone to this gem is the walls of windows that look west at the Seattle skyline and – on a clear day – the Olympics. Oh, did I mention your own 62 ft. of private waterfront with a 100 ft. boat dock? The owners purchased the place about 2 years ago for $7.7M. Today’s list: $17.5M ($3804/sq. ft.)
Finally, we take you to what I would call The Bold and the Beautiful style of living. Immerse yourself in ultra-luxury living atop a hotel/condo high-rise in downtown Seattle. This 3-bed, 3.5-bath, 4400 sq. ft. breathtaking penthouse is perfectly suited for top business execs and their partner as they live and socialize amid stunning views from the half-floor, 39th-story Residences at Olive 8 (which sits above the 17-story Hyatt Hotel). The rooms, balconies and even walk-in closet are massive. What I love about Olive 8 is that residents can enjoy the comforts of home along with outstanding amenities of the hotel – housecleaning, room service, valet and discounted hotel dining. List: $7.475M ($1699/sq. ft.).
Interested in seeing one of these beautiful homes or something else? Give me a call to set up a time to talk!