Statistics from the second quarter of 2019 are in and Realogics Sotheby’s International Realty has analyzed the data with a look at the housing market trends for the second quarter of 2019, from the shores of Bainbridge Island’s waterfront homes and in-city living opportunities to the Eastside’s most distinguished residences.
Our local real estate market took some interesting turns in 2018, as the frenetic conditions of the first half of the year gave way to a more balanced environment in the third quarter. Data for the fourth quarter of 2018 has arrived, so before we turn our attention to the new year and what lies ahead, let’s take a look at the market trends that closed out 2018.
Until recently, the Seattle real estate market headlines didn’t seem to change much, each remarking upon the area’s unprecedented home price growth and highly competitive climate for buyers. The past few months, however, have given way to a slightly different narrative, as increasing inventory and a less frenetic environment have pushed the market closer to a neutral one (though still decidedly in favor of sellers). Below we’ve outlined how these new market trends are playing out in the local real estate market with a look at Realogics Sotheby’s International Realty’s recently released market report for the third quarter of 2018.
As stated recently in a Realogics Sotheby’s International Realty (RSIR) blog, “The main cause of Seattle’s urban evolution is, first and foremost, that people want to live here.” That fact is reflected in the constant stream of people moving into the city. Earlier this year, The Seattle Times reported that Seattle grew 18.7 percent in the last decade, gaining 114,000 people and ranking as the fastest growing city in the nation. That growth is expected to continue through the next several decades; and by 2035 the expected population of Seattle will gain another 120,000 residents (and another 115,000 jobs).
An international organization of high profile property professionals, The Counselors of Real Estate® (CRE), recently published a report detailing the most pressing trends and issues affecting real estate. The “Top Ten Issues Affecting Real Estate™ 2018-2019” highlights five short-term and five long-term national and global topics that are having a direct impact on the real estate market. In a quick summary, we wanted to share the issues they thought were most pressing.
While it's true that home prices have continued to rise throughout the Seattle-Metro area, there are also some new and interesting statistics to go along with rising median prices. Realogics Sotheby's International Realty recently released their second-quarter market trends report for 2018 and we wanted to share a few statistics that jumped out at us.
Realogics Sotheby's International Realty presents a look at the housing market trends for the third quarter of 2017, check out all the details across the sound; from in-city Seattle living opportunities to the Eastside’s most distinguished residences.
Seattle | Single Family Homes
Prices continued to exceed seller’s expectations in Q3-2017, as the median sales price reached $881,000, a sharp increase compared to last year’s $786,000 average. View report here.
Seattle | Condominiums
The average sales prices for condominiums in Seattle as a whole increased by 11.6% compared to the third quarter of 2016, while the value of condos in the downtown core continues to skyrocket. View report here.
Eastside | Residential
Despite cooling autumn temperatures, the market on the Eastside is red hot, as the region’s same-quarter sales in the third quarter of 2017 remained steady from 2016 and the days on market decreased to 18 days. View report here.
The Silicon Forest welcomes one more company to the grove. The top search engine in the Chinese language, Baidu, has opened an office in downtown Bellevue in an effort to expand its reach in the world of artificial intelligence and cloud computing.
Released late last month, the RSIR Quarterly Reports show an in-depth look at the housing market and real estate trends from the first two quarters of 2017. The reports focused on Seattle, the Eastside and Bainbridge markets; but another recent semi-annual report pulled details from several neighborhoods and areas around the sound. The numbers from both reports show an increase in median home prices in every studied area.
We are pleased to announce the Realogics Sotheby's International Realty 2016/2017 Market Report! The full publication features editorial content and a full review on trends to watch and year-end statistics.
Realogics Sotheby's International Realty (RSIR) presents the Market Report: Puget Sound Real Estate Trends & 2015 Year in Review, a comprehensive look at the 2015 real estate market in an exploration of seven key counties of Western Washington: King, Snohomish, Kitsap, Pierce, Jefferson and Island counties, as well as 29 neighborhoods for our current and prospective clients. The report touches on macroeconomic trends, the primary demand drivers influencing our regional real estate market in addition to micro markets that vary greatly from neighborhood to neighborhood.
The year 2015 witnessed white-hot real estate conditions throughout the Puget Sound not seen since before the Great Recession. Prices of real estate throughout the Puget Sound catapulted higher in 2015, the result of tight supply and an influx of new buyers. A similar trajectory is expected in 2016: expanding demand, anemic supply and developers playing catch up to increasing homeownership levels.
The Puget Sound region has taken a different path from other boomtowns in North America whose economies are based on resource extraction (e.g., oil), financial intermediation, or entertainment. Seattle’s aerospace industry has gradually yielded its eminence to the service expansion and new product development cycles of the information tech industry and their secondary employment effects on IT contractors, food & beverage businesses, and real estate developers.
Besides drawing new residents domestically from other U.S. states, the Puget Sound benefits from the state’s importance as a gateway to trade with Asia, as well as from international air travel to and from Sea-Tac International Airport. The Sound’s proximity to international communities across the broader region from Vancouver, British Columbia to Los Angeles and San Diego is also a factor, as is the superior quality of life in the region and its comparative affordability in respect to those other markets. The international eminence that results from these features of our local economy has allowed the area to attract growing numbers of immigrants from overseas and recognition as a global gateway city.
As always, for the most current market information around the corner or around the world, reach out to one of RSIR’s Global Real Estate Advisors by visiting www.RSIR.com.
November’s numbers indicate that buyers continue to reign in King County, as residential homes spent an average of just one month on the market, down nearly 30% compared to last year. Inventory continued its low trend, as the number of active homes was down 44% year-over-year and 27% month-over-month. Given the low inventory and increased demand, the median sale price rose to $440K, up slightly from last month and nearly $40K from the previous year. In downtown Seattle, condo active inventory held steady month-over-month but was down 12% from the previous year. Downtown Seattle condos likewise saw an increase in median sale price, up over $100K compared to last year’s numbers.
For the latest numbers from areas around the sound, View November’s Market Reports >>
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International Monetary Fund: India Could Surpass China in GDP Growth Rate by 2016-17; Brokers Say Seattle Benefits
Executives of Realogics Sotheby’s International Realty(“RSIR”) announced today that an international delegation from North India Sotheby’s International Realty (“NISIR”) will attend a cultural exchange and global citizenship forum in downtown Kirkland on Sunday, March 1 and 2, 2015. Experts say events like these beckon the Puget Sound region’s emergence as a global gateway. Meanwhile, India volleys with China for Asia’s fastest growth rate in gross domestic product as wealthy Indians increasingly target investments in the Seattle/Bellevue metro area. As the closest mainland port to Asia, local real estate brokers predict yet another wave of international home buying in the region – this time from India.
Ashwin Chadha, Co-owner and President along with Ankit Tyagi, Co-owner and COO, will represent NISIR during the discussion scheduled from 5:00pm to 8:00pm on March 1st and will be available for media conferences and private meetings on March 2nd. The event will be held at Maison DeLille at 15 Lake Street in downtown Kirkland, which fronts the Kirkland Branch Office of RSIR, home to the firm’s new Asia Desk.
“We welcome our fellow affiliates from India in what’s clearly becoming the next international marketplace to watch,” says Dean Jones, President and CEO of RSIR. “We’re reminded that Asia is a big place and China is not the only mega country producing affluent homebuyers overseas. Indians are the second largest group of Asians in the US representing more than 3 million consumers and combined represents more some $25 billion in buying power. Our guests will enjoy an inspiring conversation about trends with global wealth and foreign direct investment, both in and out of India.”
India Prime minister Narendra Modi and US President Barack Obama have recently collaborated to improve US-INDIA economic relationships. Top Indian CEO’s, such as Satya Nadella of Microsoft, already reside in the Pacific Northwest and executives of NISIR believe that India’s global wealth and prosperity will have a significant and continued effect on the region. With a population of more than 1.2 billion in India and a population growth rate greater than China, “the Seattle metro area is an important gateway to Asia and is our first stop on our international tour,” said Chadha. “We secured our affiliation with Sotheby’s International Realty in part to access the millions of non-resident Indians (“NRIs”) around the world.”
Chadha says they seek to network with NRIs in the US in part because the urbanization and investment potential occurring within India is drawing global capital. NRIs currently have no restrictions on buying residential or commercial properties in India. During his visit to Seattle, Chadha plans to review the real estate marketplace in India, the propensity for foreign direct investment from the US, the buying process and taxation considerations for NRIs, and landmark developments being represented. At the same time, Jones plans to compare and contrast prevailing trends comparing China to India with a viewpoint towards the next five years.
According to a recent report by Wealth-X and Sotheby’s International Realty, six-percent of the world’s ultra-high net worth individuals (“UHNW” representing assets of more than $30 million), are ex-patriots residing outside their home countries. These individuals are stimulating residential real estate demand in their home countries – for example NRIs living within the US increase demand in Mumbai’s residential real estate market, the study found.
“We’re witnessing a global awakening about living in the Pacific Northwest,” adds Jones. “With close proximity to Asia, renowned education, a robust economy and an enviable lifestyle, we are playing catch up to other West Coast cities at an exponential rate. Vancouver, BC may be the harbinger for what’s likely in Seattle and Bellevue. However, I don’t think it will take two decades to arrive like it did just 150 miles north of here – word is travelling fast.”
By one measure, India will soon overtake the US as the second largest smart phone marketplace reaching more than 364 million people in 2015, according to research by The Guardian. The United Nations predicts India will pass China by 2045 as the most populous nation in the world.