February Market Stats

Housing Activity “Rejuvenating” Around Western Washington

KIRKLAND, Wash. (Mar. 7, 2007) – February housing activity began to show signs of a rejuvenating market, according to observations from brokers and the latest numbers from Northwest Multiple Listing Service.

Figures for February show system-wide gains in both pending sales (offers made and accepted, but not yet closed) and sales prices compared to a year ago. Results were mixed among the 19 counties in the MLS service area, but together they reported a 4.8 percent increase in year-over-year pending sales for February.

Prices for last month’s closed sales of single-family homes and condominiums jumped 14.4 percent from twelve months ago. The median price for last month’s completed transactions was $324,000. That was $40,800 more than at this time last year.

The condominium market shows continued strength, with pending sales rising 13.7 percent from a year ago. Prices for condo sales that closed last month were 20 percent higher than twelve months ago.

Inventory also rose from year-ago levels, climbing more than 40 percent, but brokers are not convinced the buildup means a tilt to a buyer’s market. In many counties, the month’s supply ratio is less than five months (a supply of six months or greater is generally considered to be a buyer’s market).

In King County there is currently a 2.6 month’s supply of single family homes and only about a two month’s supply of condominiums (see chart).

NWMLS director Ken Bacon, the broker at Windermere Real Estate in Redmond, said the market is changing from one that slightly favored sellers to a strong seller’s market. “We are now seeing multiple offers on many of our listings,” he reports, adding second quarter inventory will not be able to keep pace with demand. As a result, Bacon said they have resumed training agents on both buyer and seller strategies in multiple offer situations.

“Housing sales in February continue to show signs of regeneration—especially in the more affordable price ranges and in neighborhoods that are close to the job centers in Seattle and Bellevue,” said J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. He expects the activity in the more affordable markets will cause a “chain reaction of sales up the price points in the coming months.”

MLS members notched 8,043 pending sales last month, up from 7,673 a year ago and the largest volume since October. Condo sales surged 13.7 percent from a year ago.

“The news is good and getting better,” commented NWMLS director Dick Beeson, the broker/owner at Windermere Real Estate/Commencement Associates in Tacoma. He said the market is settling in, adding “it is as balanced as I have seen since 2000.”

Inventory continues to build in Pierce County, Beeson reported, with condos accounting for a growing share of inventory in Pierce County. Condo listings are up 66 percent from a year ago, while prices for condos that sold there last month rose 19.5 percent. For last month’s closed sales of single family homes in Pierce County, prices rose 12.5 percent.

Beeson noted buyers are waiting to see what’s new on the market, but then are paying close to list price. His office reports lighter traffic at open houses, but attributes it to growing numbers of buyers who shop online for preliminary information before touring.

Last month’s closed sales lagged year-ago totals, reflecting the slower activity during the past few months when the region was battered by flooding, windstorms and snow.

Prices on last month’s completed transactions showed considerable variation, ranging from double-digit gains (in eight counties) to double-digit declines (in two counties).

Mason County reported a 23 percent jump in the sales price of single family home sales (excluding condominiums) last month, the highest percentage increase among the 19 counties in the MLS system. Homes in that county fetched a median selling price of $192,400. That compares to a median sales price of almost $430,000 for single family home sales that closed in King County last month, where prices were up 9.4 percent.

Condominium prices in King County jumped 24.6 percent from a year ago. The median sales prices for last month’s closed sales was $285,250, which compares to the year-ago figure of $228,950. Area-wide, the median price for condos that sold last month was $252,000, up $42,000 (20 percent) from a year ago.

Low interest rates and job growth will continue to sustain a healthy housing economy throughout the Puget Sound region, according to Lennox Scott.

2006 Cost vs. Value

2006 Cost vs. Value

Home Remodeling Projects –

Seattle Area

 

These figures were just released by Remodeling Magazine concerning a cost vs. value survey done in the Seattle area. The survey compares the cost of 11 popular home improvements with an estimate of the projects recouped value in a one year resale scenario. One thing I want to emphasize is the location of the home is still the key factor in return on investment. If you put more money into the home than the area will support then you run the risk of diminished return on your investment in the remodel. I would be happy to help you calculate the feasibility and merits of any future remodel projects.

Minor Kitchen Remodel   Project Description: In a functional but dated 200-square-foot kitchen with 30 linear feet of cabinetry and countertops, refinish existing cabinets, and install new energy-efficient wall oven and cooktop, laminate countertops, mid-priced sink and faucet, wall covering, and resilient flooring. Repaint. Job includes new raised-panel wood doors on cabinets.

Project cost:  $19,107 Resale value:  $23,341  Cost Recouped:  122.2%

 

Major Kitchen Remodel – Midrange   Project Description: Update an outmoded 200-square-foot kitchen by designing and installing a functional layout of new cabinets, laminate countertops, and standard double-tub stainless-steel sink with standard single-lever faucet. Include energy-efficient wall oven, cooktop, ventilation system, built-in microwave, dishwasher, garbage disposer, and custom lighting. Add new resilient floor. Finish with painted walls, trim, and ceiling. Include 30 linear feet of semi-custom grade wood cabinets, including a 3-by-5-foot island.

Project cost:  $58,957 Resale value:  $56,783 Cost Recouped:  96.3%

Major Kitchen Remodel – Upscale  Project Description:  Update an outmoded 200-square-foot kitchen with 30 linear feet of custom cherry cabinets and stone countertops with imported ceramic tile backsplash. Include built-in refrigerator, cooktop, and 36-inch commercial-grade range and vent hood; warming drawer; trash compactor; combination microwave and convection oven; high-end, undermount sink; designer faucets; and water-filtration system. Add new general and task lighting, including low-voltage undercabinet lights. Install cork flooring with cherry trim. Include a 3-by-5-foot island.

Project cost:  $114,852 Resale value:  $106,738 Cost recouped:  92.9%

Bathroom Addition   Project Description:  Add a full 6-by-8-foot bathroom to a house with one or one-and-a-half baths. Locate it within the house’s footprint. Include cultured-marble vanity top, molded sink, tub/shower with ceramic tile surround, low-profile toilet, general and spot lighting, mirrored medicine cabinet, linen storage, vinyl wallpaper, and ceramic tile floor.

Project cost:  $33,011 Resale value:  $32,417  Cost recouped:  98.2%

 

Bathroom Remodel – Midrange   Project Description:  Update a bathroom that’s at least 25 years old. Replace all fixtures to include standard-sized tub with ceramic tile surround, toilet, solid-surface vanity counter with integral double sink, recessed medicine cabinet, ceramic tile floor, and vinyl wallpaper.

Project cost:  $14,643 Resale value:  $15,326 Cost recouped:  104.7%

Bathroom Remodel – Upscale   Project Description:  Expand an existing 5-by-7-foot bathroom to 9-by-9-foot within existing house footprint. Add another window bringing total glazing area to 30 square feet. Relocate and replace tub with custom dual 4-by-6-foot shower with top-of-line fittings and full-body wash shower wall, tile and glass block surround. Relocate the toilet into a partitioned area and replace it with one-piece color unit. Add bidet. Add stone tops in custom vanity cabinet with twin designer sinks. Add linen/towel storage closet. Tile floor, papered walls, hardwood trim. Add general and spot lighting. Add humidistat-controlled exhaust fan.

Project cost:  $42,541 Resale value:  $43,826 Cost recouped:  103.0%

Family Room Addition   Project Description:  In a style and location appropriate to the house, add a 16-by-25-foot room on a crawlspace foundation with wood siding and fiberglass shingle roof. Include drywall interior with batt insulation, prefinished hardwood floor, and 180 square feet of glazing, including windows, atrium-style exterior doors, and two operable skylights. Tie into heating and cooling.

Project cost:  $83,782 Resale value:  $65,261 Cost recouped:  77.9%

 

Window Replacement   Project Description:  Replace ten 3-by-5-foot double-hung windows with insulated vinyl replacement windows. Wrap the exterior trim as required to match. Don’t disturb interior trim.

Project cost:  $11,351  Resale value:  $10,325 Cost recouped:  91.0%

Deck Addition   Project Description:  Add a 16-by-20-foot deck using pressure-treated pine joists supported by 4-by-4-inch posts set into concrete footings. Install composite deck material in a simple linear pattern. Include a built-in bench and planter of the same decking material. Provide a complete railing system made of the same composite as the decking material or a compatible vinyl system.

Project cost:  $15,786 Resale Value:  $15,174  Cost recouped:  96.1%

Master Suite Addition  Project Description:  On a house with two or three bedrooms, add a 24-by-16-foot master bedroom suite with bath over a crawl space. Include walk-in closet/dressing area, whirlpool tub in ceramic tile platform, separate 3-by-4-foot ceramic tile shower, and double-bowl vanity with solid surface countertop. Carpet bedroom floor, and install ceramic tile on bathroom floor. Paint the walls, ceiling, and trim. Add general and spot lighting and exhaust fan.

Project cost:  $106,309  Resale Value:  $90,805  Cost recouped:  85.4%

Roof Replacement   Project Description:  Remove existing roofing to bare wood and dispose of properly. Install 30 squares of fiberglass asphalt shingles with new felt underlayment, galvanized drip edge, and mill-finish aluminum flashing.

Project cost:  $16,591  Resale value: $14,273 Cost recouped: 86.0%

I hope you find this information useful.  If you have any questions or need referrals to great service providers, including remodeling contractors, or builders, please give me a call at (425) 466-1000.