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

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

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

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

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

Seattle residents know the various “holes in the ground” around the city that were slated at one point to be new condo and apartment buildings.  While many of those projects have been shuttered, some have been built up with other uses.  In general, the availability of rental properties has continued to shrink yearly since the peak of the Seattle real estate market in the summer of 2007.

At the same time, home affordability will likely encourage many who feel squeezed-out by competition and out-priced to look into buying Seattle homes.

From Realtor Magazine:  According to the consumer price index, rents have risent 2.5% in one year, while home prices in most of the country have dropped.  According to Trulia, in 74 percent of U.S. cities, owning a home is more affordable than renting.

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

Of the 34 homes sold in Redmond in 2011, most were moderately price waterfront homes.  A small portion of Redmond’s southern shoreline on Lake Sammamish usually encompasses the highest-priced homes, and this year was no exception.  The top sale in Redmond was a waterfront home on W Lake Sammamish Pkwy, closing at $2,500,000.  The NWMLS includes waterfront homes on lakes, rivers, Sound, and many other bodies of water within the waterfront homes calculations.

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

Sales on Sammamish’s waterfront in 2011 were just another notch in the belt of Greater Seattle’s waterfront resurgence.  Homes sold on Sammish’s lakefront properties increased from 19 in 2010 to 32 in 2011, one of the most-significant increases in the Puget Sound region.

In particular, sales of more-affordable Sammamish waterfront homes were up significantly.  The total increase of 58% was bolstered by 32 waterfront sales under $1 million, up from just 19 in 2010.  Million dollar-plus sales, at the same time, stood at 15, up from 12 in the previous year.  Overall, while prices were down somewhat, the strengthening sales should create further support for the market and prices in general going in to 2012.

Sammamish Waterfront Homes Sold, 2011

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

The real estate market for South Lake Union condos has been affected greatly by the influx of Amazon’s employees.  There have been very few home sales in the past few months, but not for the reasons that sales lag in other markets.  In South Lake Union, the few condos that do come on the market sell quickly, leaving a vacuum of available properties.

[Parts of South Lake Union are sometimes referred to as Cascade, a historic neighborhood name.  The SLU neighborhood boundaries aren't officially defined, but generally, we use Aurora Ave to the West, Denny Way to the South, I-5 to the East, and Lake Union to the North.  Statistics for South Lake Union condo sales are pulled from within these boundaries.]

Every single condo listed during the past six months under $1 million sold, and most sold quickly. In the past six months, there have only been three condos sold in South Lake Union.  The inventory is scarce.

Only one condo on the market in South Lake Union has been listed for more than a month, and that happens to be a full-floor, $2 million condo.  For the entire neighborhood, just three condos are available:  the other two are at Veer Lofts on 9th Ave N.  One is new construction being sold by the developer, and the third is a top-floor resale loft.  Neither have been on the market over one month.

Clearly, most of the quality condo inventory in South Lake Union has been scooped up by Amazon employees as it has come on the market.  Price stabilization in this neighborhood is certainly only the way.  Some of the condos sold here have actually sold at higher prices than when they were originally purchased 2-3 years ago, bucking the downward pricing trend of the rest of the market.  Low inventory, strong relocation numbers, and well-qualified buyers have put South Lake Union in position to be one of the first neighborhoods in Seattle to show price increases in 2012.

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 # 313635 – 401 9th Ave N #212, Seattle WA 98109 – $289,950
MLS # 316769 – 401 9th Ave N #603, Seattle WA 98109 – $419,000
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

While 2011’s sales of 30 Mercer island waterfront homes was a 6.25% drop compared to the 32 sales in 2010, to say this was a disappointment would be incorrect.  2010 was a banner year for Mercer Island, considering the current economic and real estate landscape.  Waterfront sales here were at standout levels compared to the greater market.  The fact that waterfront home sales in 2011 continued to keep pace with the blockbuster 2010 sales is another testament to the staying power of waterfront homes values in Mercer Island.

Of the 30 waterfront homes sold in Mercer Island last year, 25 were priced over $1 million and 18 were multi-million dollar homes.  The NWMLS labels homes in the center of Mercer Island on man-made lakes as “waterfront”, and these homes are the lowest-priced sales in the $800k-$900k range.  Most homes that are actually on Lake Washington waterfront are priced significantly over $ 1 million.

Mercer Island Waterfront Homes Sold, 2011

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