The Seattle Condo Blog

The NWMLS just released its Brokers Report on 2007 home sales. Here are some highlights pertaining to condos:

• The NWMLS reported $32.3 billion in total home sales in its 19 county territory. Just about one-half of that dollar volume, $16.5 billion, was realized in King County. And, of the $16.5 billion, $13.4 billion were single family homes sales and $3.1 billion were condominiums sales.
• Condominium prices jumped 10.6 percent from 2006 to 2007. The 19 county area-wide median price rose from $235,000 to $260,000.
• King County’s condo median price ($285,400) was up 12.35% over the prior year, but the number of units sold (9,420) was down 2.83% from 2006.
• NWMLS members sold more than 15,000 condominiums, about the same number as the previous year (15,038 in 2007 compared to 15,318 in 2006).
• 62.6% of all condo sales in the NWMLS territory were in King County.
• Condos represented 28.5% of all residential sales in King County.
• 1,115 condos sold for more than $500,000 of which 125 were priced over $1 million.
• Of the 1,115 condos high-end condos, 507 were in Seattle with 201 in Belltown alone.

The NWMLS press release can be viewed here. Note, some of the information above was obtained from the actual report which may not be reflected in the press release.

The Forte Condominiums (website) is currently celebrating its grand opening in the Pinehurst neighborhood located in North Seattle.

Forte, a 4-story conversion, features 48 one-bedroom and two-bedroom homes that range in size from 564 sq ft to 1,400 sq ft for the penthouse suites. All homes surround a large light-filled central courtyard. Currently, one-bedrooms start at $194,950 and two-bedrooms at $254,950.

Other features include:

• Slab granite countertops with undermount sinks
• Choice of Maple or Cherry cabinet finishes
• Wood burning fireplace
• Large bedroom spaces
• Stainless steel appliances
• Decks or patio area, most homes
• Washer & dryer
• Garage parking
• Pet friendly, though may have some restrictions

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The Maris - revamped its website and opened its sales office, but only on the weekends (Friday - Sunday, 12-6 pm). Homes start at $419,000.

Noma - has an interesting promotion going on through Feb 29th. For buyers using the preferred lender, Noma will (1) match any price decrease (%-based) and pay float down on interest rate drops. The promotion excludes resales.

Serana - 5 units remain - 1 one-bedroom priced at $394,500 and 4 two-bedrooms priced from $419,500 and up. Offering 2/1 buy downs on mortgages.

Forte - new conversion project at NE 125th & Roosevelt Ave NE. One-bedrooms start at $194,950, two-bedrooms start at $254,950. Reviewing coming later this week.

845 Condos - A newer conversion cross the street from Forte. One-bedrooms start round $214,950 and two-bedrooms at $254,950.

CityView - is down to their final six units with two-bedrooms starting from under $300,000.

Escala - anticipates taking a price hike next month by about 5%.

Lumen - closing out the last 28 units, starting from $375,000.

Tobira - has seven units left including a studio priced at $184,950.

Tavona - has 10 studios and two-bedrooms left. The studios are priced from $249,950 while the two-bedroom start at $474,950. All two-bedroom units come with 2 parking spaces.

Where is the Seattle condo market heading? There’s lots of speculation but no one knows for sure. Though, we can look at what the market has done this past year.

Before we get into that, I just wanted to comment on reports we’re hearing from the media. Most articles that reference Seattle, namely national reports, refer to the Seattle metropolitan area which can stretch anywhere from Lynnwood to the Eastside to Tacoma. So, it’s not necessarily indicative of the Seattle proper real estate market. Additionally, there are differences between the single family home and condo market, as well as, geographical market differences. A significant portion of the condo inventory increases are located in the downtown core and do not necessarily translate to a buyers market in less (condo) developed areas of the city where there’s limited supply.

The following graphs reflect Seattle city-wide data (MLS Areas 140, 380, 385, 390, 700, 701, 705, 710).

There was a decrease in the median price in October…does that mean the sky is falling and bargains are to be had? Well, not exactly. The 2007 median price has outperformed 2006 levels all year long. Buying activity increased in October and the median price surpassed the prior year by over 10%. On the other hand, there are properties that have been sitting on the market so we might expect a better buyer negotiating position.

Lots of graphs…

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The good news about Seattle’s condominium market is that market values continue to reflect a strong increase over 2006. City-wide, the median sold price in October was $318,500, an 11.4% increase over October 2006. Queen Anne and Capitol Hill also reflected double-digit median price increases over the prior year as well. As has been the case all year, values have been increasing while the number of sales decline and the available inventory grows. In the course of 2007 we’ve moved from a seller’s market towards a normal market, based on the absorption rate. As the last two months are usually the slowest it’s not unreasonable to think that we’ll inch over towards a buyer’s market by the end of the year.

Although the overall market is teetering towards a buyer’s market environment, several neighborhoods and lower price ranges remain highly desirable with ample buyer demand.

Total active Seattle condo listings increased by only 42 listings to 1,573 from September to October. Compared to a year ago, inventory is up 76.2%. Pending sales increased 8% in October compared to September which helped to reduce the absorption rate slightly from 5.8 to 5.5 months. This was expected as there’s normally an uptick in market activity between the end of Summer and the start of the Fall holiday season.

The absorption rates throughout Seattle, with the exception of Queen Anne/Magnolia, reflects a normal market environment. And, notably, the absorption rate in MLS areas 390 (Cap Hill/Mad Park), 701 (DT, Belltown, Int’l District) and 710 (NE Seattle) fell in October. Lower absorption indicates a seller’s market, higher absorption rates reflects a buyer’s market.

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City-wide, the condo market remains stable and is outperforming 2006 levels. Compared to 3rd Quarter ‘06, condo sales are up 4.9% while the median price increased a respectable 7.7% to $323,000. A few neighborhoods showed decreases in unit sales while others like Ballard & Greenwood reflected significant growth due to sales at new construction & conversion projects.

Compared to 2nd Quarter ‘07, the results confirm a softening market with fewer unit sales across the board even with greater selection options. The exception was the Ballard/Greenwood area (NW Seattle). On the other hand, market values continued to show positive results with the city-wide median price up 4.5% over 2nd Quarter ‘07.

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2006 Condo Appreciation rates for selected Seattle neighborhoods as compared to 2005.

Overall, 2006 was quite healthy for Seattle condos and many people who sold their units did well. Though, Queen Anne, surprisingly didn’t fare as well.

Notes:

• Data compiled upon NWMLS sold listings.
• Data does not include for-sale-by-owner or closed pre-sale activity that were not listed in the NWMLS (e.g. The 2200).
• Data does not include current pre-sale pending transactions (e.g. Canal Station).
• Information is deemed accurate but not guaranteed.