FEBRUARY HOUSING UPDATE
The first month of the year in residential real estate is typically one of resetting and preparing for the spring rush, which can start as early as February (despite the groundhog’s forecast of six more weeks of winter). The Seattle/King County housing year kicked off slowly with some promising signals.
From a macro perspective, the 2023 outlook for home buyers is the best it’s been for three years. Danielle Hale, chief economist for realtor.com, said: “There will be more homes for sale, homes will likely take longer to sell and buyers will not face the extreme competition that was commonplace over the past few years.”
Economists and real estate geeks like me look for any signs that may raise hope. Inflection points are important in finding those signals and since last month’s assessment of the market, we are beginning to see what appear to be important – possibly significant – upward inflection points in housing market data.
Mortgage Applications – The number of consumers seeking a mortgage, the earliest sign of home-buying intent in the purchasing funnel, is averaging 9% above the trough of Q4.
Pending Sales – These are the homes that go under contract and typically complete the transaction within two months. The number in King County rose in January from month to month for the first time since August.
Easing Inflation – The rate of inflation has fallen for six straight months from a peak of 9.1% in June. (The rate is 8.4% for Seattle metro.) This easing of everyday costs is a psychological boost to consumers even while the cost of living remains high.
Inflection points matter and they appear to show things are “getting less bad.” Or, as we optimists like to say, “getting better.”
Read a detailed assessment of the King County area housing market in my most recent blog post:
Promising Signs Amid Headwinds in Seattle Area Housing Market
CONDO NEWS
I recently had the opportunity to tour a new boutique condo on the West Seattle waterfront. It’s called Infinity Shore Club Residences, a special place offering incredible views that will never go away – unless there’s marine layer!
The 37-unit, 6-story, glass-and-steel marvel looks directly onto Puget Sound near Alki Point, where ferries and finned friends will stimulate the senses every day. The place comes with top-notch amenities, including a heated infinity pool and concierge services curated by Columbia Hospitality – best known for its amazing perks.
To learn more, check out this blog post with a video tour of the newest condo to hit Seattle’s shores. Then contact me with your questions and to plan a visit
———
As a Seattle condo specialist, I closely track sales activity for downtown, Belltown and the surrounding area. My research shows condo activity slowed in 2022 vs. the year before. A typical turnover rate – the number of homes sold against the total number of units – is about 5% and a little more than half of the sampling in this chart were below that figure last year. A majority of buildings saw owner-occupancy rates remain unchanged or fall compared with 2021.
LUXURY LIVING
A number of homes featured in this newsletter last year are still on the market – a clear sign of a slowdown in the luxury sector. Two examples:
● A 2-story Spanish revival and one-time residence to former Washington Gov. Albert Rosellini. This 1925-built home has 4-bedrooms, 4.25-baths, 4470 sq. ft. in the Mt. Baker neighborhood of Seattle. Designed by William J. Bain, who founded what is now Seattle architectural firm NBBJ, the home features period details throughout, including a tiled entry, custom archways, leaded-glass windows and turret. Check out the views of Lake Washington. Sold as-is. List: $2.65M ($593/sq. ft.), down $845K from the original asking figure when it came on the market last March. Update: The listing is now Pending Inspection, which means buyers will determine whether to complete the purchase based on findings from the ongoing home inspection.
● Described as the “last of the large parcels” around Redmond, the long-time owners of 35-plus acres are looking for a buyer in Union Hill. The sale includes a 5-bed, 4.25-bath, 4450 sq. ft., 1-story home with finished basement, a charming bunkhouse cabin and equestrian amenities. This is a horse farm hidden within the tallest of trees now searching for a new owner. The area is large enough to subdivide into seven properties(!) or keep the sweeping cascade views, rolling pastures and serene sounds of songbirds all to yourself. List: $6.95M ($1561/sq. ft.), surprisingly unchanged since it made a big splash last July. An adjacent 22 acres is also available for sale.