Sales of existing homes in the U.S. showed a gain for the third time in four months, according to an N.A.R. report.

As housing inventories continue to drop, the increase in home sales has real estate analysts, investors, and home buyers all seeing positive signs for the market.  Total real estate inventory of homes for sale is down 20.6% from one year ago, creating around 6 months of inventory.  This is a level that most analysts believe is a healthy number of homes for sale in a even buyer-and-seller market.

From the report:

“Increased demand from investors and first-time homebuyers helped boost existing-home sales in January — the third increase in the past four months, the National Association of REALTORS® reported.

NAR said total existing-home sales — including single-family homes, townhomes, condominiums and co-ops — were up 4.3 percent from December to January, to a seasonally adjusted annual rate of 4.57 million.

While that’s essentially unchanged from the same time a year ago, for-sale inventory was down 20.6 percent from a year ago, to 2.31 million homes, a 6.1-month supply of homes at the current pace of sales.

Many housing analysts view a six-month inventory of homes as a good balance between supply and demand — a larger inventory of homes can indicate an oversupply of homes for sale, which can undermine prices. When inventories drop below six months, the shortage of homes for sale can drive up prices.

“The broad inventory condition can be described as moving into a rough balance, not favoring buyers or sellers,” NAR Chief Economist Lawrence Yun said in a statement.

Yun cited the statistics as evidence that a government proposal to convert bank-owned properties into rentals on a large scale “does not appear to be needed at this time.”

“Foreclosure sales are moving swiftly with ready homebuyers and investors competing in nearly all markets,” he said.

Merrill Lynch analysts Michelle Meyer and Ethan Harris think part of the drop in inventory is due to delays in the foreclosure process in the aftermath of the so-called “robo-signing” scandal.

With top banks nearing a final settlement with state attorneys general, they expect the foreclosure process to accelerate, and for inventory to swell to eight months later this year.

The first REO-to-rental transactions are weeks away, but the property pools offered this year may be smaller and more manageable for groups of qualified local investors than previously assumed, Ken Harney reports.

NAR said foreclosures and short sales accounted for 35 percent of sales in January, and that the national median existing-home price for all housing types was down 2 percent from a year ago, to $154,700.

Investors purchased 23 percent of homes in January, up from 21 percent in December, while the percentage of first-time homebuyers increased from 31 percent in December to 33 percent in January.

Nearly one in every three January home sales was an all-cash transaction. A survey of NAR members showed more than half had at least one contract canceled or delayed in January, often as a result of a mortgage application being turned down or because appraisals come in below the negotiated price.

Single-family home sales were up 3.8 percent from December to January, to a seasonally adjusted annual rate of 4.05 million. That’s a 2.3 percent increase from a year ago. The median existing single-family home price was $154,400 in January, down 2.6 percent from the same time a year ago.

Existing condominium and co-op sales increased 8.3 percent from December to January, to a seasonally adjusted annual rate of 520,000. That’s a 10.3 percent decline from a year ago. The median existing condo price was $156,600 in January, up 2 percent from January 2011.

At the regional level, the West saw the biggest jump in sales, an 8.8 percent increase from December to January. Sales were down 3.1 percent from a year ago, however, and the median price was also down 1.8 percent from January 2011, to $187,100.

The Midwest saw the smallest jump in sales, with sales up 1 percent from December to January. Although that was a 3.2 percent increase from a year ago, the median home price fell 3.9 percent from January 2011, to $122,000.

In the South, existing-home sales rose 3.5 percent from December to January but were unchanged from a year ago. The median price in the South was $134,800, down 0.3 percent from a year ago.

Existing home sales were up 3.4 percent from December to January in the Northeast, and up 7.1 percent from a year ago. At $225,700, the median price in the Northeast dropped 4.2 percent from January 2011.”

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

Waterfront home sales in Seattle began with an affordable waterfront abode on Lake Union and a luxury waterfront estate on Lake Washington.  With sales in Wallingford and Matthews Beach starting the year off, the outlook is rosy for a continuation of the strengthening market for Seattle waterfront homes that we’ve been seeing for the past few years.

The houseboat sold on Lake Union in January was actually a two-story housebarge, with views of the Seattle skyline from nearly anywhere onboard.  Based in Gasworks Marina just east of the park, the 2 bed, 1 bath floating residence was on the market for two months before selling for $350,000.  Listed at $369,000 originally, the 5% reduction in price was fairly minimal for this market.

In Matthews Beach on Lake Washington, a classic Seattle lakefront home with plenty of modern updates sold for $1.5 million after just one month on the market.  Listed for $1.585 million, this was again a fairly strong purchase price for the sellers at a 5% discount.

This house is situated far off the street and has terraced grounds making their way down to the lake,  The upper level has a swimming pool and viewing area, while the no-bank lot reaches a sandy beach at the lakeside.  The home has 5 beds, 3.5 baths, and 3,240 square feet of living space.  Built originally in 1937, it has been updated throughout but still retains some of its classic character.

Seattle waterfront homes sold, January 2012

2143 N Northlake Wy #58, Seattle WA 98103

8920 Sand Point Wy NE, Seattle WA 98115

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

Kirkland’s waterfront real estate market started off 2012 with two significant sales in the house and condo markets.  The house, on Holmes Point Dr, and the condo, on Lake Washington Blvd, exemplify the dichotomy of the two waterfront markets in this lakeside town.

Near downtown Kirkland in the Houghton neighborhood, the 2 bedroom, 2 bath condo that sold is a fairly large unit, at 1,342 square feet.  This was a bank-0wned condo, so it had gone through the foreclosure process and come back on the market as a resale.  It only lasted 46 days on the market, although it did take quite a hit on price.

Condo prices have been affected more severely than houses in the greater Seattle market in general, and this condo’s drop in value over the past couple of years was no exception.  The final sale price was $540,000, after an initial list price of $631,900.  The 15% reduction is more typical of a “distressed sale” like a foreclosure or short sale, as opposed to what we’d normally see in a traditional resale.

Further north in Kirkland, a home in Holmes Point sold for $1.5 million after being on the market for around 6 months.  Typical marketing times of homes listed for over $1 million are around 6 months, so this wasn’t a particularly long listing.  The property’s price had been reduced a number of times, from a starting point of $1.8 million to the final list price of $1.6 million.  The discount on the final list price was about 7%.

This house is a classic mid-century modern home, with some traditional finishes on the interior.  With long, clean horizontal rooflines and open rooms with large windows, it’s a modern designer’s dream on the waterfront.  The house is on the lower end of pricing for Kirkland waterfront homes, as is much of Holmes Point waterfront.  The lot, at 13,345 square feet isn’t particularly large, but the Lake Washington frontage is a sizable 92 feet.

Kirkland Waterfront Homes Sold, January 2012

6333 Lake Washington Blvd NE, Kirkland WA 98033

12459 Holmes Point Dr NE, Kirkland WA 98034

Tomorrow:  Seattle waterfront sales in January

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

The first sale of Bellevue waterfront homes in 2012 was a stately home in the very popular Newport Shores neighborhood.  At $1.55 million, this home is a fine example of one of the many different styles of waterfront homes available on the Eastside.

Newport Shores has most of its waterfront homes situated on the inner man-made canals of the neighborhood, allowing for very long, easily-accessible, bulkheaded water frontage.  This particular home sits on a 19,200 square foot lot with 110 feet of waterfront.  At four beds and 3.5 baths, this two story home has a classic, colonial look with a three car garage and 3,170 square feet over two stories.

The home was on the market for just one month, listed at $1.675 million originally.  The final sale price of $1.55 million represented a 7.5% reduction in price.

Bellevue waterfront homes sold, January 2012

MLS Listing: 63 Cascade Key, Bellevue WA 98006

Tomorrow:  Kirkland waterfront sales in January

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

There was just one reported sale of waterfront Sammamish homes on the NWMLS during January.  The home sold for $603,000 after about five months on the market.

This home is situated on a view lot with 180 degrees of Lake Sammamish panoramic views.  The 5 bed, 2.5 bath, 2,690 sq ft home was built in 1972.  It’s actually on the East side of E Lake Sammamish Pkwy, but it has access rights to a shared waterfront plot.

The shared waterfront is a private community beach with 300 feet of shoreline.  With a boat launch, dock, and sandy beach, the shared waterfront allows a homeowner to access many of the benefits of waterfront living without paying the full price of a traditional waterfront home.

This home had been originally listed for $699,000, and had been reduced to $649,000 before dropping to its final sale price of $603,000.

Sold Sammamish waterfront homes, January 2012

MLS Listings: 3106 199th Ave SE, Sammamish WA 98075

Tomorrow:  Four Redmond waterfront homes sold in January

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

Hunts Point has always been at the pinnacle of waterfront real estate in the greater Seattle area.  Hunts Point waterfront homes are commonly sold in the multi-million dollar range, with sales over $10 million not our of the ordinary.  The sale of 3645 Hunts Point Rd in January was the highest-priced sale of the year for the region thus far, and may hold that title for some time.

The Bellisima, as it has been dubbed, is a Mediterranean home built in 2005.  At close to 10,000 square feet, it’s a very large home on a one acre lot.  With 4 bedrooms, 5 baths, and a carriage house, the pure numbers aren’t gaudy, but the home is a picture of luxury perfection.

Originally listed in January of 2011 for $14,100,000, the price was reduced to $12,900,000 in June of last year.  The final selling price of $11,000,000 represented a 22% reduction from the original list price, or a 14% reduction from the final list price.  This is not a surprise, as the very top of the luxury market is seeing some significant discounts on properties that have been marketed for over a year.  While some sellers are content to sit out the market, those who are motivated to sell are making informed decisions on pricing based on current market conditions, and home buyers are benefitting.

Hunts Point Waterfront Real Estate:  Sold, January 2012

MLS Listing:  3645 Hunts Point Rd, Hunts Point WA 98004 – $11,000,000 Sale Price

Tomorrow:  Shared waterfront home sale in Sammamish

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

Realtor Magazine and CNN Money recently listed the top 10 states for foreclosures in the U.S.  Washington, once again, was not on the list (it is usually near the middle of the pack).  Seattle forecl0sures, in particular, are in short supply as far as actual bank-owned homes on the market that are available for sale.  The low inventory has made them a hot commodity and many sell quickly.

The top states for foreclosures include the usual suspects:  Nevada, California, and Arizona have been leading the country in foreclosures for years on end.

Here are the states that are still facing the highest foreclosure rates in the nation:

1. Nevada: 1 in every 198 homes received a foreclosure filing in January
2. California: 1 in every 265
3. Arizona: 1 in every 325
4. Georgia: 1 in every 328
5. Michigan: 1 in every 354
6. Florida: 1 in every 363
7. Illinois: 1 in every 369
8. Delaware: 1 in every 373
9. Colorado: 1 in every 523
10. Indiana: 1 in every 555

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

Amazon is once again expanding its powerful footprint around the South Lake Union neighborhood, purchasing a 3 block swath of commercial property in the Denny Triangle from Clise Properties, according to a report from the Seattle Times.

The company’s already-evident impact on the north end of downtown Seattle is evident in the vast array of new shops, restaurants, and entertainment available in South Lake Union.  Plans for the Denny Triangle space include three separate office towers with 1 million square feet of office space each.  The move would double Amazon’s footprint in South Lake Union, creating a likely increase in pressure for rentals and homes for sale in the area.

As I reported last week, South Lake Union already has a dearth of homes available for sale.  Virtually everything on the market under $2 million has sold in under one month.  There are only three condos available at the moment, as another unit at Veer Lofts just went pending.  There will likely be increased pressure on the rental and resale market in South Lake Union in the coming years.  Could Vulcan transition some of its rental properties back into condos based on the influx of well-paid employees?  Only time will tell.

Sold Condos in South Lake Union, Past Six Months:
Veer Lofts:
MLS # 294360 – 401 9th Ave N #402, Seattle WA 98109 – $275,000
MLS # 250847 – 401 9th Ave N #616, Seattle WA 98109 – $405,000
Art Stable
MLS # 214417 – 516 Yale Ave N #600, Seattle WA 98109 – $1,565,000

Active Condos For Sale in South Lake Union:
Veer Lofts:
MLS # 316769 – 401 9th Ave N #603, Seattle WA 98109 – $419,000
MLS # 320430 – 401 9th Ave N #614, Seattle WA 98109 – $440,000

Art Stable
MLS # 290859 – 516 Yale Ave N #400, Seattle WA 98109 – $1,995,000

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

In a bit of Valentine’s Day pseudo-science (don’t shoot the messenger), Trulia surveyed men and women on their preferences in homeownership, styles of homes, amenities, and those same qualities they find attractive in potential dates.

The number of women stating that they preferred a man who owned a home was more than 15 times the number that preferred a renter.  For men, the number who preferred a female homeowner was about six times the number who preferred a renter.

The study also found that although men and women had only slightly different preferences in home attributes, women had far more opinions.  Female respondents chose far more home features as “important” to them as men did.

From the recap on the RealtorMag site:

“Home owners trump renters when it comes to finding someone to date, according to a new survey of 1,000 single people. More than a third of women and 18 percent of men would rather date a home owner than a renter, according to the survey, which was conducted on behalf of Trulia.

On the other hand, only 2 percent of women said they’d prefer to date a renter, while 3 percent of men said they’d prefer a renter.

Not only do both sexes prefer home owners, but they also prefer you live alone. Sixty-two percent of the singles surveyed said they prefer to date others who live alone and have no roommates.

And while the number of young adults who have moved back in with their parents has skyrocketed in recent months due to economic hardships, less than 5 percent of the singles surveyed said they would date someone living in their parents’ home.

What home qualities are the many singles who prefer ownership to renting most drawn to? The top vote-getters were the master bath, walk-in closets, and gourmet kitchens. They also gave high ranks to hardwood floors, outdoor decks, and home theaters.”

I’ll skip the obligatory better dating/buy home today plug.  Happy Valentine’s Day.

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

In a report by Capital Economics this week, the group predicts an end to the housing crisis in the coming year.  The big reason:  Loosening of credit standards for home buyers by banking instituations.

The report sees banks lending to a larger group of potential home buyers in 2012.  Loan-to-value ratios have been increasing on average loans (74% to 82%) and borrower income standards have dropped as well.  Banks are lending at 3.5 times the borrower’s annual income, up from 3.2 times in previous years.

While we certainly don’t want to go back to the shoddy/non-existent lending standards of the real estate boom, there was a serious overcorrection in the market after the bust.  These changes in the market are reasonable adjustments and are good news for the real estate market as a whole.

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service