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Market Statistics Category

Happy Birthday Steven!

Yesterday, May 16, 2008 was my oldest son’s 18th birthday. Seems like only yesterday that he was such a cute little kid. It’s hard to believe that he’s old enough to vote and to fight for our country if necessary. Today is his Senior Prom and when he showed me his Tuxedo (white with pinstripes), I wasn’t sure if I was gonna laugh (he looked like a sports celebrity with his shaved head), or cry (he looked all grown up). I began reflecting on how the years have gone by, and how proud I am of his accomplishments. To be perfectly clear, he is a typical teenager; sometimes irresponsible, often impertinent, and yet still has an innocence about him.

Steven at 6 yrs Steven at 9 yrs
Steven at 11 yrs Steven at 16 yrs
Steven at 17 yrs looking like a dork playing DDR (Dance Dance Revolution)

So it also got me thinking about what was happening in 1990.

  • Mortgage interest rates were hovering around 10% for a 30yr fixed loan.
  • Homes were selling for about $80/sqft in Woodinville (vs. $270 in 2008).
  • The Hubble telescope was launched into space.
  • Mikhail Gorbachev was awarded the nobel Peace Prize
  • Sammy Davis Jr. (of the famous “Rat Pack”) passed away on the same day as Steven was born. I don’t think he was re-incarnated as Steven (as evidenced by his dancing skills above).
  • And more

What were you doing in 1990?

The Housing crisis is over!

If it’s in print, then it must be true. Right?
Don’t misunderstand me because as a Realtor, I like reading articles that are positive for my industry. But I live in the real world, not the financial world where analysts look at things on a more global or macro scale. I just hope that the people reading the article live here in the Seattle area where it will actually have an impact on our local housing market.
And let’s be completely honest, does the average person really understand the full meaning of what is written in articles such as these? I’ve always been a bit confused when the economists use phrases such as “When the rate of house-price declines halves, there will be a whoesale shift in markets’ perceptions… when valuing the collateral, market participants including banks are extrapolating…” What does all of this mean? I consider myself a pretty smart person, and I understood most of what was written, but I’d much prefer to read articles in more basic terms that the general public can understand.
Anyway, here is the full article in the Wall Street Journal. Maybe someone can read it and explain it to me…

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April Statistics

The lastest stats are in!

Taking a snapshot look at residential resales in King County for the period from January 1, 2008 thru April 30, 2008, we find:

  • 4107 units sold this year vs. 6398 units sold in 2007 in the same timeframe (down 36%) 6
  • Average price is up 1% to $542,659 5
  • Average $/sqft for homes sold was $283.49
  • The best price range to be in (as a seller right now) is $300,000 – $350,000. Absorption rate is about 130 units per month. Makes sense since more folks can afford lower priced homes (duh!)

Takeaway from all of this – Lots of inventory from which to choose (in the sense that the inventory levels are high), but prices are stable. Common sense tells us that the best homes always go first. What that means to the average seller, is that in this market if you’re overpriced or don’t have some extremely compelling feature about your home, it’s gonna take a bit longer to sell.

source: realestats.net

Weekly Sales Ratios from 3/5/08 – 4/16/08

Every week, my company (Windermere Real Estate) publishes a running tally of homes that are available in King & Snohomish counties. In this chart you can see what the average market time will be given a particular price range. I’ve posted the chart for the Woodinville area here. If you live in a different part of King or Snohomish county and would like the stats for your area, send me an email (or call me) and I’ll be happy to provide them for you.

Market Statistics for December 2006

Starting in 2007, I am going to try my best and provide market statistical data for viewers of this Blog. Some of the abbreviations and/or codes on the reports might need interpretation or clarification, and if so, please send me an email and I’ll be happy to clarify them for you.

Here is a chart that compares December 2006 sales with December 2005 (listed by neighborhoods). The key points on the chart are:

1. There were more homes for sale in December 2006 then in 2005 (increase in inventory).
2. The average home price increased from 2005 to 2006 (unless you’re Rip VanWinkle, this should come as no surprise to you).

Here is an interesting article from the Seattle P-I that also speaks to the housing slowdown in the Seattle area.

What are your thoughts about the current housing market?

Licensed to Sell!

A recent report from the National Association of Realtors (NAR) stated that the number of licensed Realtors is up 44% since 2003. That’s a whole lot of new agents in the field. Although home prices have appreciated significantly over the last several years (in my area at least), there are fewer homes on the market. This translates to more agents assisting fewer home sellers and buyers.

Another interesting statistic from this article reported that the median income for agents with less than two years experience was $12,850, while agents with 6-10 years experience had a median income of $58,700. Also, NAR reported that 86% of newly licensed agents drop out of the business during their first year. I personally had two clients try and sell real estate, but ultimately “changed their minds” after seeing firsthand just how difficult it can truly be. They stated that I made it look so easy to them that they thought it really was easy. Boy, were they surprised!

What’s the take-away from all of this? Not to stand on my soapbox for too long, but I work pretty hard to make what I do look pretty easy. Those that think this job is easy should walk in my shoes for a bit. When I started selling real estate back in 1996, I was considered the “new guy” in my office. Since then, I’ve seen about two dozen or more agents come and go in my office (and my broker is VERY particular about who he hires).

This profession can be very difficult for single people. Those agents that I’ve seen be most successful are ones who have spousal support (emotional as well as financial) to get through the lean times. My first year income back in 1996 was a whopping $18,000 (+/-) and that was gross, not net! By the time you subtracted my expenses and taxes, I actually lost money! Thankfully, I have survived and actually thrived over the years (many thanks to my loyal clients who have referred countless other clients to me).

If I had to start all over from scratch, I’m not sure I would do it again, but you know what? At this point in my career, I absolutely love my work, my clients, and most of all, the freedom it allows me to spend time with those I love!

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