JANUARY HOUSING UPDATE

December is typically the slowest time of year for local residential real estate sales, but the final few weeks capped what turned into the slowest year in a decade for the purchase and sale of homes across King County.

A patch of foul weather and persistent economic challenges chilled an already cold housing market. The Northwest MLS monthly housing report described it best: “December ends with a ‘whimper’”.

The number of new listings for all home types – single-family, townhomes and condos combined – in King (887) fell 47% from November and declined 36% from December 2021. Homes going under contract (Pending sales) dropped 25% from the previous month and 30% year-on-year (YoY) – staggering drop-offs. The number of Pendings (1206) has fallen for five consecutive months and is the lowest of any month since December 2008 (1167).

In fact, the numbers of new single-family (701) and condo listings (186) in the county were 44%+ lower than November figures. They reached lows never seen this century – not even close.

The market traditionally slows in December to enjoy holiday parties, family gatherings and vacations, but this market chill is unprecedented. The bar is so low on listings and sales data that one might trip over it.

Read a more detailed assessment of the King County area housing market in my most recent blog post:

King County Housing Market Stumbles to 2022 Finish Line

CONDO NEWS

Seattle will see only one grand condo unveiling this year with the planned summer opening of Graystone, a 31-story, 271-unit, luxury residential tower on First Hill. The construction crane was recently removed from the 8^th Avenue and Columbia Street location and interiors are being filled out with high-quality finishes.

One sales representative told me the project is “really cruising” and that they are “full speed ahead” toward opening around June.

Home prices start in the upper $400,000s for a studio of about 410 sq. ft. and the mid-$500,000s for urban, 1-bedroom units of about 550 sq. ft. Two- and 3-bedroom residences are also available. Parking is an option for most unit owners – at $85K – and $100K for an electric-vehicle space. 

The First Hill sales presentation gallery is a good place to start the discovery phase for buyers interested in learning more, plus hard-hat tours are available for those more serious home-shoppers. As always, bring a buyer broker to represent you during each step of the way!

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Spire has announced an incredible pricing promotion to kick of the new year. The 41-story, glass-and-steel structure at the crossroads of Denny Triangle, South Lake Union and Belltown has slashed prices by $100K or more on 1- and 2-bedroom residences. That’s unheard of!

For example, a 1-bedroom with den previously listed at $920K is offered today at $809K. That’s on top of the limited-time offer of $25K in credit at the closing table for these special units.

More than a third of the 343 units remain for sale, meaning many options and views are available. That includes a number of penthouse-level suites priced from about $1.2M and offering mountain and Space Needle vistas. Spire is within walking distance of tech giants Amazon, Apple, Facebook and Google and the building comes with a revolutionary auto-valet parking system.

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An update on an item last reported in the July newsletter: The civil complaint filed by the homeowners of Insignia Towers in Belltown against Bosa Development Washington and many of its subcontractors has a new trial date – April 17. It had been scheduled to begin in December but was pushed out as both sides work through issues.

As noted earlier, the complaint by Insignia’s owners claims a breach of the Washington Condominium Act, specifically with respect to contracts and warranties. Bosa and contractors built the two-tower structure with 698 units in the mid-2010s, the first Seattle condo to open after the Great Recession.

The claim against the developer states: “There are defects or deficiencies in the Project’s materials, installation of the materials, design and/or construction of the Project’s building envelope system and underlying components, window/glazing installations, serviceability issues with structural components and other systems, amenities, including but not limited to leaks in the spa/pool area, architectural components, ADA access, and mechanical systems, including but not limited to plumbing, ventilation and exhaust.” 

This has caused challenges for buyers seeking financing to purchase a home in the community. Buyers must rely on portfolio lenders – known for holding the mortgage through the duration of the loan – such as Washington Federal to finance the home. That is because traditional lenders – particularly those wishing to sell off their mortgages to government entities such as Fannie Mae or Freddie Mac – typically do not underwrite loans when there is pending litigation.


LUXURY LIVING

The luxury housing market has been quiet in recent weeks as bad weather and the holidays dampen activity but that doesn’t stop us from sharing great homes. Here are some that were touted in this newsletter within the last year – and are still on the market today.

This 4-bed, 4.5-bath, 6900 sq. ft. home sits on two sprawling acres along 240 ft. of Lake Washington waterfront in the Seattle neighborhood of Leschi. The property comprises five lots and is arguably one of the few massive residential parcels available in the city. Built in 1969, the brick-and-wood residence is essentially on one floor (with 670 sq. ft. above the garage) and features an open kitchen, great room and central A/C. The backyard includes a covered brick patio, sports court, hot tub, fruit trees and tall laurel hedges for privacy. List price: $12.5M ($1812/sq. ft.), unchanged since we first touted the listing last February. The owners are also offering to sell four of the five lots at $9.975M ($1446/sq. ft.).

Did the poor Denver Broncos football season affect the appeal of quarterback Russell Wilson’s Bellevue home? The estate remains on the market since it was first noted in April. The 1-acre estate includes 6-bedroom, 5.25-baths in 11,104 sq. ft. and 164 ft. of shoreline along Meydenbauer Bay. The 2-story house with finished basement was built in 2007 and updated after the former Seahawks star bought the place in 2015 for $6.7M. The property features a 20-foot-high rotunda entry to the home, chef’s kitchen, theater, game room, recording studio, fitness and yoga areas, five fireplaces and 3-level elevator, as well as a 2-story, spiral-staircase treehouse(!), sport courts, dock for three slips and two jet-ski lifts. List price: $26M ($2342/sq. ft.), down $2M from the original asking price.

A Madison Park home is the highest-priced listing in Western Washington today – $29M ($3469/sq. ft.), $6M less than when it first hit the market in May. It is a 3-bed, 4.25-bath, 8360 sq. ft., 1-story residence, one of only nine properties on what is known as the  Reed Estate. The home comes with 125+ ft. of Lake Washington waterfront, an outdoor pool with spa tub and rose garden. The property is reportedly owned by a member of the Pigott family, founders of truck manufacturer Paccar.

My favorite listing this month is this North Issaquah, 2-story gem – a 5-bed, 6.75-bath home with garage space for about a dozen vehicles. Hidden on 5 acres of secluded forested grounds through a short private drive, the journey home soon opens to a manse with traditional designs and custom features. Amazing  coffered ceilings  and cathedral-inspired windows stand out in the living room. Waterfall. Fishing pier. Water wheel. Of course! List: $4.45M ($575/sq. ft.), marked down by $1.2M since July.