The ultimate Puget Sound community: Three Tree Point

With easy public transportation and a short drive between Seattle and Tacoma, Three Tree Point offers the ideal destination for beach lovers wanting a home allying convenience & retreat.

The community has a long standing tradition with Seattleites who used to come here to unwind and play in the water at the time when steamship was the only access. Today, its residents love its “tucked away” secret feel and its easy commute (Light Rail, bus, “Park & Ride”, 509 side freeway, and SeaTac international airport). The practicality and dramatic scenery make it a favorite destination along the Greater Puget Sound region.

Here you will experience tranquility combined with the soothing roll and cadence of the waves & tides that will make you forget that urban living is nearby. A fun corner of the world to observe wildlife: king fishers, eagles, seals, otters and the seasonal whales.

Finding the right home on the water can take years as a very limited number of properties ever come on the market and homeowners have a tendency to move only when downsizing, or searching for a different type of local waterfront. It is common for waterfront owners to “trade” their tram or walk-down properties for a drive-to access or a better-sandier beach. Among other desired features on the water: parking, sandy beach, private tidelands, deeded buoy…

This new listing offers the perfect combination of some of these key features. Affordable at $1,550,000, the property enjoys a drive-to level access; low maintenance & gated/fenced-in grounds; a perfect outdoor setting to enjoy the views and water with its davit to launch boat, jet ski and paddle board; a private sandy beach; a cozy interior and a sought-after 3-car garage and plenty of parking…

Contact us for a private showing at veronique@windermere.com, text or call at 206-214-8499.

2019 Seattle Real Estate Forecast

Mike Reid Photography

Following three years of “steroid markets” around the Puget Sound area, what is in stock for this year? Alarming media news talking about recession… Let’s look at what local experts have to say. The predictions below were taken from Denise Lones’ “State of the market – Tomorrow’s market based on Historical Perspectives” and Matthew Gardner‘s (Chief economist at Windermere Real Estate) forecast.

2018 biggest issues

  • Steroid market with peak prices in May
  • Seller’s greed
  • Homeownership rate declining due to affordability
  • Inventory increasing
  • Pending sales declining
  • Local panic: upcoming recession?

2018 Seattle median sales prices rose 8.5% year over year to $765,000 for the year. Bellevue median sales prices reached $1.273 million. King County residential median price went from $630,000 in 2017 to $680,000 in 2018. Eastside residential price went from $865,000 in 2017 to $936,500 in 2018. (NWMLS Market Stats)

Sellers are having a tougher time to readjust to a more balanced market where overpricing a home doesn’t work anymore and results in “Freezer Burned Listings” as Denise would put it. In King County, as of 1/4/2019, 60.1% of all active listings had been on the market for over 61+ days while homes on the market for less than 14 days represented only 10.4% of the market share.

The home ownership rate has declined to 63.4% in 2018 due to affordability and the shortage of new constructions and distressed properties. A growing number of properties being purchased by investors who rent them out.

2019 real estate market: what to expect?

  • Severe shortage of new constructions to continue
  • Increase in land prices & labor costs
  • Potential increase of loan interest rates to 5.5%
  • New profile of buyers: Millennials & Baby Boomers

Millennials (born between 1981 & 1997) have surpassed Baby Boomers representing 75.5 million of people. Both generations seem to be looking for similar properties however. Baby Boomers are attracted by active lifestyles close to urban centers and areas with great walkability. As such, they are competing with millennials. 35% of millennials live with their parents and are getting married later in life due to high student debts.

Washington State and Seattle: strong economy

  • Washington State ranks first in the U.S for exports per capita.
  • Seattle is a leading trade partner with Japan and China.
  • Flights from SeaTac Airport reach Asia 1-2 hours faster than from Los Angeles or San Diego
  • Seattle is the Gateway to Asia (deepwater ports and international air hub). The Seattle-Tacoma-Everett port region is the Third largest container complex in the United States.
  • Seattle is experiencing an aggressive population growth with an educated workforce, steady migration and investors flooding to the Pacific Northwest. Seattle is expected to gain 29,000 new residences per year for the next 4 years.
  • Concerns: Washington state is the most vulnerable trade state because of its proximity to China. Trade wars? Drop in state exports to China were off nearly $600 million following back and forth tariffs with China.

What to expect?

  • Homes are still in HIGH demand. Backlog of buyers is to return in the Spring.
  • Better opportunity for buyers with more selections and better pricing yet higher interest rates
  • Sellers have to finally sell at “market value”. We have hit the high point of the house appreciation run
  • House prices will decelerate in certain markets
  • Rents are high making investors happy to continue to invest

Why not to fear a housing crash?

  • Foreclosures hit a 11 year low
  • New construction not keeping up with the demand
  • Homeowners have high equity in their homes
  • Lending standards are tougher
Mike Reid Photography

2018 Seattle Real Estate Market in Review

Here are the highlights for last year’s Washington State real estate market produced by the Northwest Multiple Listing Service:

CLOSED SALES $47.2 billion including single family homes & condos

MEDIAN CLOSED SALES $402,000 with the highest range for King County $620,000 & $154,000 for Ferry County.

INVENTORY BELOW “BALANCED MARKET” Overall supply under 1.8 months which is well under buyer’s demand.

HIGHEST PRICE Among the 23 counties, King County had the highest median price for Single Family Home at $680,000, a gain nearly 8.5% from the previous year.

NEW CONSTRUCTION Newly-built homes accounted for 12% of sales in 2018.

PEAK ACTIVITY TIME New listings and pending sales peaked in May and June had the highest volumes of closed sales.

PRICE & SCHOOL DISTRICTS In 2 school districts, median single home prices topped $1M led by Mercer Island at $1.7M and Bellevue at $1.2M.

LUXURY SALES MLS members sold 6,101 family homes priced over $1M or higher including 61 that sold over $5M. The most expensive home was in Medina and closed for $26,750M. More than 400 condos sold over $1M with the 3 most expensive in Kirkland.

NWMLS MEMBERS This report reflects the work of 31,700 brokers in 2300 member offices.

5 Reasons Rising Interest Rates Won’t Undermine the Housing Market

Interest rates have been trending higher since the fall of 2017, and I fully expect they will continue in that direction – albeit relatively slowly – as we move through the balance of the year and into 2019. So what does this mean for the US housing market?
It might come as a surprise to learn that I really don’t think rising interest rates will have a major impact on the housing market. Here is my reasoning:

1. First Time Home Buyers
As interest rates rise, I expect more buyers to get off the fence and into the market; specifically, first time buyers who, according to Freddie Mac, made up nearly half of new mortgages in the first quarter of this year. First-time buyers are critical to the overall health of the housing market because of the subsequent chain reaction of sales that result so this is actually a positive outcome of rising rates.

2. Easing Credit Standards
Rising interest rates may actually push some lenders to modestly ease credit standards. I know this statement will cause some people to think that easing credit will immediately send us back to the days of sub-prime lending and housing bubbles, but I don’t see this happening. Even a very modest easing of credit will allow for more than one million new home buyers to qualify for a mortgage.

3. Low Unemployment
We stand today in a country with very low unemployment (currently 4.0% and likely to get close to 3.5% by year’s end). Low unemployment rates encourage employers to raise wages to keep existing talent, as well as to recruit new talent. Wage growth can, to a degree, offset increasing interest rates because, as wages rise, buyers can afford higher mortgage payments.

4. Supply
There is a clear relationship between housing supply, home prices, and interest rates. We’re already seeing a shift in inventory levels with more homes coming on the market, and I fully expect this trend to continue for the foreseeable future. This increase in supply is, in part, a result of homeowners looking to cash in on their home’s appreciation before interest rates rise too far. This, on its own, will help ease the growth of home prices and offset rising interest rates. Furthermore, if we start to see more new construction activity at the lower end of the market, this too will help.

5. National versus Local
Up until this point, I’ve looked at how rising interest rates might impact the housing market on a national level, but as we all know, real estate is local, and different markets react to shifts in different ways. For example, rising interest rates will be felt more in expensive housing markets, such as San Francisco, New York, Los Angeles, and Orange County, but I expect to see less impact in areas like Cleveland, Philadelphia, Pittsburg, and Detroit, where buyers spend a lower percentage of their incomes on housing. The exception to this would be if interest rates continue to rise for a prolonged period; in that case, we might see demand start to taper off, especially in the less expensive housing markets where buyers are more price sensitive.
For more than seven years, home buyers and real estate professionals alike have grown very accustomed to historically low interest rates. We always knew the time would come when they would begin to rise again, but that doesn’t mean the outlook for housing is doom and gloom. On the contrary, I believe rising interest rates will help bring us closer to a more balanced real estate market, something that is sorely needed in many markets across the country.

Washington Waterfront Home Tour June 23-24 1-4pm

Is waterfront right for you?

The dream of owning a beachfront property runs deep in the Evergreen state. Back in the early 1900s, city dwellers escaped their Seattle homes on the weekends and Summers to enjoy the many pleasures of waterfront living. Today this tradition is still very much alive among Seattleites. Whether purchasing beach retreats to recharge their batteries or moving permanently on the water’s edge, waterfront properties are popular as they mean a vacation-like lifestyle all year round.

This weekend, June 23-24, from 1-4pm, Windermere Real Estate and Komo 4 are sponsoring their fourth annual Washington Waterfront Home Tour. It is the Puget Sound’s biggest waterfront tour spread over two days. It is the perfect opportunity for anyone thinking of beachfront. You will be able to explore neighborhoods, types of beach, and prices. https://www.waterfronthomeswa.com/

We have four properties on tour this weekend, all exceptional and different in their own respect.

#1. 2681 SW 151st place, Burien    Open Sunday 1-4pm  http://pugetsoundhomes.withwre.com/listing/71507717

#2. 2155 SW 173rd Place, Three Three Point    Open Sunday 1-4pm http://pugetsoundhomes.withwre.com/listing/79697110

#3. 26916 9th Avenue S, Woodmont    Open Saturday & Sunday 1-4pm http://pugetsoundhomes.withwre.com/listing/80445154

#4. 27014 10th Avenue S, Woodmont   Open Saturday 1-4pm  http://pugetsoundhomes.withwre.com/listing/79742963

We are looking to see you all. Call us to schedule a private showing if these days and times don’t work for you. Veronique@windermere.com or text/call 206-214-8499

 

 

Looking for acreage & views within a short commute to Seattle?

Over 16 acres of glorious forest, streams and views. Along the shores of Puget Sound, within a 30 to 40 minute drive to Downtown Seattle, lies this beautiful property which includes two tax parcels: #3222049115 & #3222049019. A rare opportunity to build one’s spectacular retreat steps away from the quaint community of Redondo: its boardwalk, restaurants and beach.

Hard to believe, while hiking through the lush vegetation that, close by, lies a thriving and bubbling metropolis well-known for its fast pace and cutting-edge technology.
Land bank, secluded retreat, private home with cool modern architecture, serene spa, trails and cabins? So many potential options for this superb property which reflects so well the true spirit of the Great Pacific Northwest.

The land is abutting another 10+ acre property destined for a 36-high-end home development. Click here to get the detailed listing. Purchasing both pieces, would mean a total of 27 acres. The upper parcels could be turned into a luxury contemporary development while the lower ones (listed here) be used as serene retreat with trails and community house. Many options!