Seattle Market Digest – April 2015

	April 2015
The Seattle Market Digest gives you a quick glimpse of the latest retail, real estate and business news in the Northwest. Curated from multiple sources, it keeps you updated so you can make more informed marketing and business decisions.

MARKET HIGHLIGHTS Regional Development: Mayor announces $1.8 million for neighborhood business districts Labor Market: Washington’s jobless rate holds steady at 6.3% Retail Market: Uniqlo may be opening in Seattle Travel Market: Snohomish County OKs passenger terminal Economy: The rich got richer fastest in Seattle, study finds Real Estate Market: King County home prices up 6%

Flurry of big deals in downtown Bellevue signals more growth ahead
Investors are doubling down on downtown Bellevue. Said real estate broker Paul Sweeney, “Downtown Bellevue in years past was seen as a suburban setting, but now it is viewed as a prime urban location.”

Plus Investment USA plans large mixed-use Bellevue development
A Chinese company outlined plans for a project that will include two condominium high-rises. The development, tentatively called International Plaza, is located on Northeast Eighth Street in Bellevue.

REAL ESTATE MARKET

King County home prices up 6% from a year ago
The median price of King County homes sold in February rose 6 percent over the year to $429,900 amid a sharp drop in active listings. It’s an indication that the seller’s market — now going strong for three years — is even more difficult for first-time buyers.

Affordable housing: Pressure mounts on Mayor Murray
Business people and activists are pushing in opposite directions on several issues, including a proposed fee on developers and local rent control.

Kirkland, Bellevue among nation’s priciest for high-end homes
If you own a home in Kirkland or Bellevue, you live in one of the nation’s top 10 luxury markets, according to a new report by Redfin. Though the Eastside cities rank high, they are nowhere near Miami Beach, where the average luxury home sold for $8.3 million in the fourth quarter of 2013.

Interest in Seattle homes at a record high

This is turning out to be the hottest year for residential real estate since 2008, according to Redfin. The online real estate company bases their findings on the number of people who have requested home tours, which could indicate their desire to buy.

~Steve Fuller, Seattle Times

Great Sign for Housing…Pending Sales Surge

The National Association of Realtors revealed that homes going into contract in February increased to their highest level since June 2013 in their Pending Homes Sales Index, a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The Index is now 12.0 percent above February 2014. The index is at its highest level since June 2013, has increased year-over-year for six consecutive months and is above what is considered “the average level of activity” – for the 10th consecutive month. Here is a graph showing the Pending Sales numbers:

Here is a chart showing the Pending Sales increases by region:

Bottom Line

In an article from Investors’ Business Daily, Lawrence Yun, Chief Economist at the National Association of Realtors, explained what these numbers will mean to the overall market:

“It looks like the buyers want to come out to the market and they are eager to find the right home and make an offer. Therefore, I expect the second quarter of this year to be easily ahead of last year in terms of sales activity. Pending contracts are implying that the closing activity in coming months will be quite solid.”

~The KCM Blog

Does Waiting to Buy Make Sense?

Whether you are a first time or a move-up buyer, there are two factors that will impact the amount of house you can afford in your price range: home prices & mortgage rates.

Here’s what the experts are predicting over the next twelve months for these two areas:

PRICES

Over 100 economists, real estate experts and investment & market strategists were recently polled as a part of the Home Price Expectation Survey. They were asked to project where home prices are headed. The average value appreciation projected over the next twelve-month period is approximately 4.4%.

MORTGAGE INTEREST RATES

In the latest Economic & Housing Market Outlook from Freddie Mac, they predict that the 30-year fixed mortgage rate will be 4.7% by this time next year. As of last week, the Freddie Mac rate was 3.69%.

What does this mean to you?

If you are a first-time buyer currently looking at a home priced at $250,000, this is what it could cost you on a monthly basis if you wait until next year to buy:

DATE               MORTGAGE        INTEREST RATE*        P&I**

Today                   $250,000                 3.69%               $1,149.29

2016, Qtr 2             $261,000                 4.7%                  $1,353.64

Difference in monthly payment                                          $   204.35

If you are a move-up buyer currently looking at a home priced at $500,000, this is what it could cost you on a monthly basis if you wait a year to buy:

DATE               MORTGAGE        INTEREST RATE*        P&I**

Today                  $500,000                3.69%                $2,298.59

2016, Qtr 2            $522,000                4.7%                  $2,707.29

Difference in monthly payment                                        $   408.70

~KCM Blog