2009 was an up-and-down year for Seattle’s real estate market in general.  Half of the year was slumping prices and slow sales, followed by surging demand of first time buyers and a flurry of sales to close out the year.  The lowest-priced sale of the year was a $48,000 houseboat on Lake Union–the ultimate in cheap waterfront living.  On the other end of the scale, we topped out just over $15 million for a Lake Washington home in Mercer Island’s East Seattle neighborhood. 

Waterfront home sellers in the greater Seattle real estate market felt the pain of a recession which has put a drag on luxury market purchases in general.  While things were looking up by the end of 2009, the overall waterfront market is still recovering from the hits it has taken since mid-2007.  This has created some very attractive opportunities for home buyers.

Median sale prices of waterfront homes in King County dropped 4% from $716,000 in 2007 to $690,000 in 2008.  2009 saw a much larger 20% drop with the median sale price being $550,000.  While those numbers certainly show an increase in affordability, take them with a grain of salt.  Waterfront homes did not lose 20% of their value in 2009, there were just very few high-end sales last year, pushing the median lower.  The total sales numbers have been skewed much further toward lower-end homes in the past two years as consumers have tightened their belts–even luxury home buyers.

In the meantime, the marketing time required to sell a waterfront home has increased markedly.  With fewer buyers in the market, marketing time went up from a median of 38 days in 2007 to 66 days in 2008 and 70 days in 2009.  Sellers had to try quite a bit harder to entice buyers to make a large purchase, and many home buyers actually downsized to save costs.

One theory that persists in the high-end real estate market is that these home owners don’t “have to sell”.  More than the average home owner, they have more discretionary funds, more ability to carry mortgages on multiple homes, or the financial confidence to sit on their current property until they get the price they want.

While there is certainly truth to that theory in some situations, we’re also seeing some cracks in the foundation.  Waterfront home owners can certainly ride out the slow market, but there is always a limit.  There were some very significant price drops this year on $15 million and $20 million properties that didn’t budge much at all during 2008.  These home owners are still investors, and they understand when it’s time to cut their losses and make a sale happen.

For home sellers in 2010, the good news is that things continue to stabilize in the overall market.  On a monthly basis, total home sales are on the rebound.  Prices seem to have found a bottom for now.  When the base of the market improves, the luxury market gets a delayed bounce.  That’s a bounce that can’t come too soon for some waterfront home owners who have waited patiently to sell these past two years.  For waterfront home buyers–the deal is there for the taking. 

Sam DeBord and Brian Wiegand
SeattleHome.com – Washington State Realty – (206) 658-3225
Real Estate Brokers, Realtors, Green Certified Pros

Statistics not compiled or published by the Northwest Multiple Listing Service.

Brian and I had the pleasure of attending Heidi Bright’s broker’s open this week in the Bridle Trails neighborhood of Kirkland.  It was a beautiful home, and well-attended.  The highlight (for us, at least), was the Tom Douglas catered food.  We thought that it might be just a spread of his restaurant’s food, but as we walked into the kitchen, there was Tom himself, braising beef and cooking some creamy polenta on the stove.

Tom’s a big guy, (if you couldn’t already tell from the picture with Brian).  He’s also a surprisingly low-key, down to Earth guy for a local celeb.  It’s not every day you can shoot the breeze about how long to braise a piece of beef with a big-name chef who is at the same time slicing your food up for you and serving it.

Kudos to Heidi for the event, and thanks to Tom for the entertainment.  That’s a broker’s open I would show up for any week.

Sam DeBord and Brian Wiegand
SeattleHome.com – Washington State Realty – (206) 658-3225
Real Estate Brokers, Realtors, Green Certified Pros

Just one home is showing as sold on the MLS for Medina, WA in January 2010.  A 4 bed, 3.5 bath, 2008-built home was sold on the 3400 block of Evergreen Point Rd. 

The title to the home was conveyed to the seller via Trustee’s deed in November ‘09, meaning that it was probably some type of foreclosure that reverted back to the bank.  It looks like the home had around $2.3 million in publicly-recorded financing attached to it in early 2009.

This bank-owned home sold after just 11 days on the market, which is likely due to the bank pricing it slightly under market value to facilitate a quick sale.  Sales in Medina have been slow in general, so this is a standout marketing time. 

The home sold for $1.35 million after a quick price drop in the listing.  It’s a good-sized home at 4000 sq ft, with a 6000 square foot lot, which is on the smaller side for Medina real estate.

This information not compiled or published or by the NWMLS.

Sam DeBord and Brian Wiegand
SeattleHome.com – Washington State Realty – (206) 658-3225
Real Estate Brokers, Realtors, Green Certified Pros

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer’s Credit Amount Determined?

Each home buyer’s tax credit is determined by two additional factors:

1. The price of the home.
2. The buyer’s income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

Seattle’s Wallingford neighborhood has Community Council meetings the first Wednesday of every month. 

Wallingford Community Council Meeting

When:  Wed, January 6, 7pm – 9pm
Where:  Good Shepherd Center, 4649 Sunnyside Ave. N, Seattle
Description:  Wallingford Community Center Monthly Meeting (no meeting in August)

Committee & other meetings

For those that might think there’s a monopoly by a few brokerages or agents in the real estate market, take a look at the top 10 Greater Seattle residential sales for 2009 listed on the NWMLS.  (Top sales of single family Seattle homes here - one condo added for this list).

I count 18 different brokerages involved in these top 10 transactions.  If there is a monopoly, it’s certainly not at the top of the luxury home market.  Not only are the offices spread widely, but there are many independent/non-national brands represented across the spectrum.

Also interesting, is the spread of agents.  There are 19 different agents/teams involved.  Larry was the only agent listed twice, for selling his own Medina listing (congrats Larry!)  If there was a monopoly, this is where it would exist–at the top of the luxury market, where clearly the most successful agents and companies strive to position themselves. 

What’s the take-away from all of this information?  A pretty yard sign does not sell a home, no matter which company logo is pasted on it.  Even the highest-end of luxury home buyers aren’t worried about the company you’re listed with.  If you prepare a home well, market it well, and make it available to buyers, it will sell. 

Buyers and Sellers should work with a motivated, experienced agent who puts your best interests first and makes you feel at ease.  You’ll work better together, and most likely sell your home more quickly when you’re both on the same page.  You have a lot of choices.  Choose someone you’ll enjoy working with.

Sam DeBord and Brian Wiegand
SeattleHome.com – Washington State Realty – (206) 658-3225
Real Estate Brokers, Realtors, Green Certified Pros

(Information not compiled or published by the NWMLS)

The top 10 single family home sales in the Greater Seattle area for 2009, as listed in NWMLS records, were as follows:

This information was not compiled or published by the Northwest Multiple Listing Service.

The luxury home market in Seattle was a bit slow in 2009, but there were still a good number of strong sales late in the year.  The market seems to have stabilized a bit for now, which is good news for home sellers looking to move in the luxury home market for 2010.

Sam DeBord and Brian Wiegand
SeattleHome.com – Washington State Realty – (206) 658-3225
Real Estate Brokers, Realtors, Green Certified Pros  

BusinessWeek recently listed the 50 most expensive small towns in America.  All 50 towns were located in just seven states, with Washington garnering four spots for small towns in the Greater Seattle metro.

The towns of Hunts Point, Medina, Yarrow Point, and Clyde Hill, all on the Seattle metro’s Eastside, checked in on the top 50 list.  Each on of these areas has its own unique characteristics, but all share the feel of privacy and upscale living while still being a short jog from downtown Bellevue and a 10 minute drive into Seattle (traffic willing).

While many neighborhoods in Seattle proper would have probably made this list (Madison Park, Laurelhurst, Denny-Blaine, Washington Park, Broadmoor, Montlake, The Highlands, etc.), they don’t make the classification for this list as they are not separate townships.  The Eastside townships are incorporated, and thus “small towns”.

No. 3: Hunts Point, Wash.
Median home sale price: $2,930,863
Price change YOY: -2.9%
Population: 437
Median household income: $179,898

Hunts Point is the most private community on this list.  Take one drive down Hunts Point Drive and you’ll see why.  Towering trees, long, meandering driveways past gated entries, and a straight shot from video-monitored entry to the tip of the point.  There’s no reason to drive into Hunts Point if you don’t live there, so there’s virtually no traffic.  The waterfront homes are stunning if you can get a glimpse of them–most are far out of view from the street.  The tip of Hunts Point is currently available for sale, a 2 acre waterfront gem with no current home on the land.  It’s been listed recently in the mid-$20 million range.
Hunts Point WA Homes

No. 36: Medina, Wash.
Median home sale price: $1,426,173
Price change YOY: -4.6%
Population: 3,041
Median household income: $133,756

Medina is most famouse for being home to Bill Gates of Microsoft, and many of his software counterparts.  The waterline in Medina reaches from Evergreen Point in the North to Groat Point in the South, covering the majority of the Gold Coast.   This section of Lake Washington waterfront has westerly views of Seattle and evening sunsets on the lake.  At 3,000 residents, it’s much larger than the other townships on the list.
Medina WA Homes

No. 38: Yarrow Point, Wash.
Median home sale price: $1,397,744
Price change YOY: -6.9%
Population: 997
Median household income: $177,940

Yarrow Point is another small peninsula on the shores of Lake Washington.  Nestled between Cozy Cove and Yarrow Bay, around 1/4 of its homes are on the water.  Like Hunts Point, it has only one street entry and therefore has very little outside traffic.  Yarrow Point is a bit more open, with better ability to see many of the homes from the street. 
Yarrow Point WA Homes

No. 47: Clyde Hill, Wash.
Median home sale price: $1,249,976
Price change YOY: -9.9%
Population: 2,845
Median household income: $132,468

Clyde Hill is the only town on our list that is not on the waterfront.  The town is situated between Medina and the Points, and it has some of the best views on the Eastside.  Clyde Hill homes can have views of Kirkland to the North, Seattle and the Olympic Mountains to the West, Bellevue and Mount Rainier to the South, and the Cascade Mountains to the East.  With its own police and fire department, Clyde Hill has a small-town feel without sacrificing access to big city amenities.
Clyde Hill WA Homes

Sam DeBord and Brian Wiegand
SeattleHome.com – Washington State Realty – (206) 658-3225
Real Estate Brokers, Realtors, Green Certified Pros  

Sales of waterfront homes in 2009 were slow on the Eastside, just as they were in Seattle.  Waterfront real estate picked up in the fall, though.

Median Eastside/Bellevue waterfront home statistics for 2009:

4 beds, 2.75 baths, 3300 sq ft, $1.4 million and less than 3 months on the market.

Top sales for 2009 on the waterfront:

A 6300 sq ft home on Meydenbauer Bay, just off downtown Bellevue, this classic mid-century home sold in June.  With 4 beds, 3.25 baths, and and .63 acres, it’s an unbelievable parcel near downtown the went for $5.5 million

The other major sale was in Medina.  A 5 bed, 7.5 bath, 8000 sq ft home sold in August for $6.1 million.  This home on Medina’s Gold Coast has views of the Seattle skyline and westerly sunsets.  Built in 2003, it’s modern luxury on the Seattle metro’s most coveted waterfront.

Sam DeBord and Brian Wiegand
SeattleHome.com – Washington State Realty – (206) 658-3225
Real Estate Brokers, Realtors, Green Certified Pros

Sales of waterfront homes in 2009 were up from the dismal 2008 sales, but still a bit slow to climb back.  Seattle waterfront real estate got a big push in the fall, as a handful of buyers finally got off the fence and got some incredibaly affordable deals on some of the best waterfront available.

Median Seattle waterfront home statistics for 2009:

3 bedrooms, 2 baths, 1670 square feet.  Median sale price, $774,000 and 76 days on the market (not bad marketing time).

Top sales of Seattle waterfront homes:

A 6 bed, 4.75 bath home in Madison Park.  The home sold for $10.6 million in December.  It’s a 7500 sq ft home, built in the late 1970s on 3/4 of an acre.  With 135 feet of waterfront on Lake Washington and 18 foot ceilings, this is clearly a magnificent home.

In Laurelhurst, a 5 bed, 5.25 bath, 10,000 sq ft home sold in November.  This 2003-built home is on 2/3 of an acre with 125 feet of low-bank Lake Washington waterfront.  It’s a formal Georgian colonial with all of the amenities of modern construction.

Sam DeBord and Brian Wiegand
SeattleHome.com – Washington State Realty – (206) 658-3225
Real Estate Brokers, Realtors, Green Certified Pros