2018 Third Quarter Market Trends

Realogics Sotheby’s International Realty presents a look at the housing market trends for the third quarter of 2018, from the shores of Bainbridge Island’s waterfront homes and in-city living opportunities to the Eastside’s most distinguished residences.

Seattle  |  Single-Family Homes

Inventory continues to remain at the center of real estate conversations in Seattle, as the frenetic market of recent years has given way to a more balanced one that reflects typical seasonal trends. In Q3-2018 we saw 2.7 months of inventory, up nearly 75% compared to last quarter (at 1.2 months) and a staggering 156.5% on a yearly basis. View report>>

 

Eastside  |  Single-Family Homes

Record-breaking home price growth for single-family homes on the Eastside moderated from Q3-2017 to Q3-2018 with a 7.11% gain, a stark difference from last year’s report, which showed a 14.80% increase in median home prices from Q3-2016 to Q3-2017. View report >>

Bainbridge Island  |  Single-Family Homes

While Seattle and the Eastside saw slight decreases in the average median sales price from the second to third quarter of 2018, home prices on Bainbridge Island increased on a quarter-by-quarter basis, from $865,000 in Q2 to $912,000 in Q2, representing a 5.4 percent increase (larger than the 2.3% year-over-year gain). View report >>

Seattle  |  Condominiums

As was the case in Seattle’s single-family market, the number of homes available for sale is dominating real estate discussions, as the condominium market in Seattle saw 2.7 months of inventory in the third quarter of 2018, the highest number reported since the third quarter of 2012, when we nearly reached a balanced market at 2.9 months. Since that time, inventory has continued to dip, maintaining numbers well below 1 month in every quarter since the start of 2015. View report >>

2018 Second Quarter Market Trends

Realogics Sotheby’s International Realty presents a look at the housing market trends for the second quarter of 2018, from the shores of Bainbridge Island’s waterfront homes and in-city living opportunities to the Eastside’s most distinguished residences.

Seattle  |  Single-Family Homes

Seattle continues its red-hot housing market streak, as the median sales price of a single-family home hit $857K, up 13.1% compared to Q2-2017, which averaged $758K. View report>>

 

Eastside  |  Single-Family Homes

Home prices on the Eastside continued their upward climb, increasing 12% year-over-year, while days on market decreased to just over two weeks. View report >>

Bainbridge Island  |  Single-Family Homes

Though other areas experienced increased inventory, Bainbridge Island saw a decrease of homes for sale with just 1.8 months of inventory, as the days on market fell 40%. View report >>

Seattle  |  Condominiums

Condominiums in Seattle continue to draw buyers, as the average days on market in Q2-2018 was 14 days and the average sales price reached $514,000. View report >>

Video of the Week: Majestic Waiea Grand Penthouse in Kakaako, Honolulu, Hawaii

 
 
$35,000,000 USD | Honolulu, Hawaii | List Sotheby’s International Realty 

 
Waiea is a masterpiece created by the world renowned architect, James K. M. Cheng in collaboration with one of America’s iconic interior designers, Tony Ingrao. In his words, James Cheng calls the penthouse “a villa in the sky.” Designed with the connoisseur of life in mind, no detail has been overlooked. This six-bedroom, six-and-one-half-bathroom residence sprawls over 8,532 square-feet and features a spectacular, over 2,000-square-foot rooftop lanai and a private, ocean-facing infinity pool. 

Discover luxury home tours around the world 

New & Notable Luxury Properties for Sale

From a vast historic island estate in New York to a modern masterpiece in Dubai, this month’s collection of exceptional properties for sale feature homes from some of the world’s finest locales. 

$125,000,000 USD | Glen Cove, New York | Daniel Gale Sotheby’s International Realty 

Salutation is an exquisite 46-plus-acre island on the North Shore of Long Island. The land was granted by King George I and purchased by Peter Caverly in 1721 for two hundred pounds. More than 10 adjacent acres were granted with “underwater” rights, valuable for fishing, clamming and boating. The tranquil 28-plus-acre pond, which flows into the Long Island Sound, is home to oyster beds and many varieties of wildlife. The fortified 700-foot sea wall, a 250-foot dock that accommodates yachts and seaplanes, and a helicopter landing spot complete this phenomenal property. 

36 200 000 $ CAD | North Vancouver, British Columbia, Canada | Canada Sotheby’s International Realty 

In total, this property comprises three separate titles, over 14 acres, a 9,000-square-foot custom-built West Coast home, another self-contained Guest House, working 12-stall paddock/barn, and Greenhouse. The main residence melds indigenous materials of stone, fir, and glass, spilling onto the maturely planted grounds of both native and specimen plantings, with natural and man-made water features. The homes are mechanically superior and the seamless marriage of West Coast architecture and Japanese influence create the perfect backdrop for this one and only retreat. Never before offered as one, the possibilities are endless and with RS3 zoning the future potential, this really could be the last of its kind and is truly a Lower Mainland trophy. 

$16,000,000 SGD | Singapore | List Sotheby’s International Realty 

This minimalistic bungalow-style home in Treasure Island’s Sentosa Cove features captivating, modern amenities such as a floating staircase, infinity edge pool with indoor access, open floorplan, and incredible views. The home also features a rooftop terrace, partially covered and ideal for entertaining. 

$58,500,000 USD | Snowmass, Colorado | Aspen Snowmass Sotheby’s International Realty 

Taking its name from surrounding Snowmass Mountain, Capitol Peak, Mount Daly and Mount Sopris, Four Peaks Ranch is the consummate mountain sanctuary. Once inside the gate, a world of unique splendor and beauty awaits. An outdoor paradise spreads out amongst the 876 pristine and unspoiled acres with 15 miles of alluring private trails for hiking, biking, horseback riding, four-wheeling, snowmobiling, paintball, and cross-country skiing. Moreover, a stocked pond and private beach with cabana, abundant wildlife for an exceptional private hunting experience, a chipping and putting green, and even a private labyrinth make these outdoor activities unrivaled for a personal residence of this stature. 

129,000,000 د.إ AED | Dubai, United Arab Emirates | Gulf Sotheby’s International Realty 

With an expansive 26,000-square-foot built-up area, this Emirates Hills villa exhibits the finest in architectural design and materials used to create a serene family home. From the moment you enter this full golf course-facing home, you feel a sense of tranquility. The oversized picture windows that are inserted into the structure, allows every room to enjoy fabulous views. 

Original source on RSIR

REALOGICS SOTHEBY’S INTERNATIONAL REALTY & BURRARD GROUP ANNOUNCE A MAJOR MILESTONE IN THE DEVELOPMENT OF NEXUS CONDOMINIUM TOWER; ENCORE RELEASE OF 16 CITY SUITES ON 11/18

Market Experts Array Pent Up Demand for In-City Homeownership; Downtown Seattle Condo Prices Surge 33% 

Representatives of Realogics Sotheby’s International Realty and Burrard Group announced a major milestone in the development of the 41-story NEXUS Condominium Tower today as it begins a vertical ascent towards completion in fall 2019. With excavation now complete, SKANSKA, the general contractor for NEXUS, has poured the foundation mat, which comprised of 3,900 cubic yards of concrete and measures up to twelve feet thick. 

“The entire development and construction team is excited to shift the focus from digging down to building upward and constructing this iconic tower,” said Chad Mathis, Senior Development Manager with Burrard. 

After analyzing market demand, Burrard also announced a change in the final product offering. The final construction documents include a revision to the floor plates in the “third cube” between levels 28 and 35 where a larger one bedroom and den floor plan will now be built as two independent and efficiently-scaled residences called City Suites – a 484-sq. ft. studio and a 503-sq. ft. urban one bedroom. Conversely, a penthouse home assembled two units to create a 4 bedroom plus den offering nearly 3,200-sq. ft.  These revisions increased NEXUS Condominiums by 8 residences to 389 units. 

“We took this opportunity to optimize the product offering based on market demands,” added Mathis, who acknowledged the flexibility to assemble and disassemble floor plans. 

“This design update presents an encore sales release of new homes priced from the mid-$500,000s to mid-$600,000s, a price range that was previously sold out at NEXUS,” said Dean Jones, President and CEO of Realogics Sotheby’s International Realty. “There’s a lack of attainably priced homes in downtown Seattle. Consumers can afford to live in less space but they can’t always afford the cost of new condominiums. We’re facing a condo crunch as more and more apartment dwellers desire homeownership but there are few options available in the market.” 

Jones points to RSIR research showing that 78-percent of the 496 new condominiums being built in downtown Seattle are currently presold with virtually all remaining homes priced above $700,000. Consumers will find little relief in the resale marketplace as according to the NWMLS, there are only 11 homes listed for sale priced below $700,000. Meanwhile, RSIR reports the median price of resale condominiums sold in October 2017 was $649,500, an increase of 33-percent over the prior year. A preference for newer condominiums was also noted at the recently completed Insignia Condominiums. This presale development was delivered in 2015 and 2016 and experienced four resales last month – all within days of hitting the market, several escalating above asking price and exhibiting an average of 25-percent increases from presale to resale values. Market wide, S&P/Case-Shiller tracked 13.2-percent median home price increases making the Seattle metro area the fastest-rising housing market in the US for the past 12 months. 

Citing pent up demand, market pundits anticipate the latest sales release at NEXUS will sell out quickly upon listing on November 18th. Recently, the Urban Land Institute heralded Seattle as the #1 investment market in the US as part of their “2018 Emerging Trends in Real Estate” report. However, the opportunity for individual home ownership has been challenging given the dearth of for-sale housing being built. Research by RSIR and O’Connor Consulting Group confirms that no new condominiums will be delivered in 2017 and it’s estimated that 94-percent of the 27,000+ new multifamily housing units to be built in downtown Seattle’s urban center for the current decade will be for rent and not for sale. 

Mathis says more new condominiums are on the horizon but suspects most developers will want to retain their inventory as income property because the market is appreciating. 

“Land and construction costs are rising rapidly,” claims Mathis. “The reality is future deliveries will cost more to build and developers will need to charge more to make new developments pencil.” 

Original source on RSIR

US & Chinese Real Estate Organizations Agree to Form Permanent Select Committee

Ashley Breunich from Realogics Sotheby's International Realty reports that, "At the conclusion of a five-day Trade Mission to China, the International Real Estate Federation – U.S. Chapter (FIABCI-USA) and the China Institute of Real Estate Appraisers & Agents (CIREA) agreed to form a Permanent Select Committee on doing business between the United States and China. A group of nine real estate professionals from across the US completed a Trade Mission to China on July 6, 2014. The mission included attending CIREA’s annual real estate agents conference, visits to some of the largest real estate brokerages in Beijing and attending an elective course for FIABCI’s International Real Estate Consultant (FIREC) designation.

Capital flows from China to the US continue to grow. The FIABCI-USA delegation was headed by President Edward Alford from South Hadley, MA. “I am extremely honored to have led this group of high-caliber real estate professionals to Beijing and was overwhelmed by the gracious hospitality of our CIREA hosts. I felt it necessary to assure our hosts that we were interested in mutual cooperation over the long term and welcomed the opportunity to formalize our intent through the formation of a select committee.” The residential market in China is currently undergoing a 30% contraction in sales and there is great concern about how this will affect the overall economy.

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Image Courtesy of RSIR

In addition to President Alford, the FIABCI-USA delegation included President Elect Ruth Kruger from Aspen, CO; Treasurer Maire Rosol from Park City, UT; Vice-PresidentElizabeth Davidson from Kirkland, WA; Nancy & Peter Suvarnamani from Chicago; Dano Sayles from Hawaii, John Krolick from Incline Village, NV; and Secretary General Bill Endsley from Chicago. The delegation enjoyed sightseeing trips around Beijing and numerous sumptuous Chinese meals with potential new partners and the staff of Beijing Orient US-China Consulting Co., Ltd. which facilitated the Trade Mission.

FIABCI has welcomed over 150 real estate professionals from China as members over the last year and expects to grow significantly as additional groups of Chinese professionals complete FIREC training courses in doing business abroad, ethics, negotiation, financing and valuation. FIABCI provides access and opportunity for real estate professionals in more than 60 countries interested in completing cross border transactions.

The International Real Estate Federation – US Chapter (FIABCI-USA) is a multi-discipline, networking organization for all professionals associated with real estate transactions. The group provides information, connections and concierge services to help individuals, companies and associations expand their global networks. With members in more than 50 countries and World, Regional and National Congresses throughout the year, FIABCI is global, local and connected and can provide access to the highest caliber real estate professional anywhere in the world. FIABCI also enjoys Special Consultative Status with the Economic and Social Council of the United Nations.

For more information about FIABCI-USA, click here."

Market Highlights: Growth and Competition in the Seattle Market

The RSIR Blog writes, "when looking at the Seattle real estate market these days, growth continues to emerge as a key factor. Chris Daniels and Jake Whittenberg from King 5 newsreport that Seattle grew 2.8% in the last year alone, citing Leonard Garfield, the Executive Director of the Museum of History and Industry, who told King 5 he attributes growth to Amazon and other tech companies that are looking for “cheaper property outside the Silicon Valley and Bay Areas.” In addition, many neighborhoods have already exceeded their 2024 growth targets. One notable neighborhood is Ballard, which has already soared to 317% of its target.

Growth means home prices have surged, a trend Sanjay Bhatt from The Seattle Times describes. He says that in March, Seattle posted “the biggest gain among all metro areas except San Francisco” and adds that home prices have risen 11.6% in the last year and are expected to rise continue to rise by another 6% in the coming year."

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Photo Courtesy of RSIR

"So what does all this mean? For one thing, growth and higher home prices make for a competitive real estate market in Seattle. Sam DeBord from the Seattle Pi describes the difficulty many first-time homebuyers are experiencing in a climate where homes sell for an average of 102% of their list price. DeBord’s solution? He says home buyers must find ways to stand out from the crowd, which may mean having an approval letter from a reputable lender, maintaining availability and flexibility, or including a personalized home buyer’s offer. Extra touches that really do make all the difference and speak to our method here at RSIR as well."

Wall Street Journal & Realogics Sotheby's International Realty Shed Light on Trend of Wealthy Chinese Buying US Real Estate for Students

Just in time for the AREAA event, the Wall Street Journal reported on the trend of wealthy Chinese nationals purchasing real estate in the US to anticipate school attendance for their children and in some cases, to ensure the American Dream.

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Dean Jones contributed to the article, saying, “the real estate axiom overseas isn’t Location, Location, Location,” says Jones.  “It’s Location, Education, Environment.  The Seattle area has it all with the closest mainland port to China, renowned public and private schools and of course, fresh air and a culture of health and wellness, not to mention no state income taxes.  The Chinese know that they can send their kids here for school with confidence that they’ll graduate with honors, secure a job in quick order and can still afford to buy a home and raise a family without restriction.  That’s not all possible in China and increasingly more difficult in other West Coast markets where jobs and homes are just out of reach for many.”