Your Queen Anne Market Report for September

You probably have felt it in the air over the last 90 days-home prices are coming down. Ah the good old days when a home would come onto the market and be sold in less than a week with multiple offers. Not happening now. Our Windermere economist is indicating that, on average, home prices are down 7-10% over this time last year.

No need to panic, because mortgage rates are low and will probably fall a little more over the next month, so that keeps buyers in the market. There is no one reason for this transition in prices. Perhaps prices just got too high for buyers to qualify or feel comfortable with their monthly mortgage payment? Perhaps the bulk of buyers have already purchased and are not being replaced at the same crazy rate that they were over the preceding seven years? Perhaps there are so many new rental apartments now with managers offering major incentives to prospective tenants that that has lessened demand, not to mention that as rents become much less than mortgage payments, folks may decide to stay in their apartments. Perhaps they are locked into a one year lease with ten more months to go? And we cannot forget the unusually higher volume of homes that came on the market in late April and  continued through June which contributed to the price decline.

Despite the above, I am still very bullish on the future of Queen Anne popularity and pricing. If we follow the usual annual cycle, I expect this market to continue at basically this value level until next Spring when we will be off to the races again from March-June(or longer)!

Don’t forget: WS Excise taxes are going up starting January 2020 and really impact homes closing for $1.5M or more. Please see the attachment for details.

There were very few homes that sold over their list prices in August, but there was one standout: 1407 Bigelow was listed at $1.495M and sold for $1.7M.

And that’s the way Steve sees it…Click here to view report, and Click here to view the current Excise Tax rates.

Make it another great month!

 

 

Posted on September 12, 2019 at 10:14 pm
Stephen Hicks | Category: Buying, Market News | Tagged , , , , , ,

Your Queen Anne Market Report for July 2019

What I suggested might happen to our market in last month’s report, namely that increased inventory would probably lead to a slow down to the market, has come to pass. In addition, we are now in the summer market which is usually slightly slower.

Having said that, homes are still appreciating quite well as demand for Queen Anne remains high due to its location and continuing low interest rates. The Fed is expected to cut the rate they charge banks next month and that usually leads to slightly lower mortgage rates so I see rates as continuing to be positive.

To recap the last 30 days, there have been 43 homes sell or close since my last report on June 10th. Seven of those have sold for more than full price. Of those 43 sold or pending homes, 10 were listed since June 10th. We currently have 44 active listings for sale which is about the same number as last month. Incidentally, I am seeing a less frantic pace of homes coming onto the market since the last report. This spring was truly something of a record breaker in terms of homes coming on the market. In the last 30 days, we have only had 18 homes listed for sale which is far less than the number listed in March, April and especially May. I expect this slower pace of homes being listed to continue through summer.

Many of you probably know that the WS Legislature has increased the excise rates you pay when your home sells. Please review this document which will let you know  how much more it will cost you to sell your home beginning in January. FYI, the rate more than doubles for homes sold for $1.5M or more. Yikes!

The winner of last month’s home that sold for the most over its list price was 3338 9th West, listed for $1.195M and selling for $1.321M. After I previewed this home, I thought it was too low on the price, but the market gave us the current value. Please review this document for details of those homes that sold in the last 30 days.

And that’s the way Steve sees it…

Have fun outside if it ever stops raining! (At least it’s warmer).

 

Posted on July 24, 2019 at 12:18 am
Stephen Hicks | Category: Market News | Tagged , , , ,