What were the chances of selling an Eastside home in January 2007?

Everyone wants to know what is happening with the market and if homes are selling. I will give you a market report each month that will answer this all important question.

How do I get this information? I look at the statistics form the Multiple Listing Service each month which you can find in the link. I analyze the supply and demand for each month. If the percent of the homes selling is 45% or below, we are looking at a buyer’s market. If this percentage, which we call the absorption rate, falls between 45-55%, then we have a market balanced between buyers and sellers. A market in which 55% of the available homes sell is a seller’s market. Last year, sellers markets were found in March through June, while the rest of the year was more in the buyer’s camp.

Check out the link for January's results!



http://debrasinick.com/docs/Stats%20for%20Jan%202007.pdf

http://debrasinick.com/docs/2007_Year_to_Date.pdf

Advice to buyers for the 2007 market

As we move forward in the 2007 real estate market it is helpful to see how the 2006 year end played out. If you click on the link you will be able to read my full report.

http://debrasinick.com/docs/Stats%20for%20Dec%202006.pdf

After looking at this information, watching how this year has begun (see my post for January 2007 stats), and the increase in home values, I want to focus on how you can maximize your home purchase. For those just starting out, it has been more difficult with each passing year to purchase real estate on the Eastside. Here is some advice as to how to do it and make the most money you can as a home owner.

My advice to the first time home buyer: get into the real estate market as soon as you can. Buy a condominium. Condominiums have appreciated better than single family homes with about a 24% increase in value during 2006. (see my State of the Market post)

Think about the emotional and financial benefits of owning your own place. You can make it your own, you can write off the interest on your mortgage and real estate taxes, and you can build equity. Rarely does anyone start out buying the home of their dreams. Most people start out buying a wonderful place to live in, but hopefully a place that will be a good investment.

Remember, you may “get a good deal” when you buy, but you also need to look for a great property to sell later. Maybe the home you purchase at a great discount today is not the best investment for the future.

How can you make the best buying decision so you will have a great home to sell?
The key to that good investment is to remember today you are a buyer, tomorrow you will be a seller.

So here are the key questions to examine when making the best investment for future return:

Know thy neighborhood!

Location, location, location is still the key.
Know the neighborhood pros and cons.

How far are you from employment centers, public transportation, highways?

What is the reputation of the school system and specific schools? Would the value of your home or condo be stronger if you purchased a similar home in a different school district?

What are the area amenities? Are you close to shopping, parks, etc?

Historically, what is the appreciation in the area?
What is the current absorption rate of the homes?

Are there positive/negative present issues or future issues that impact the neighborhood and will affect your future resale value?

Know thy home or condo!

Check out the builder. Know the builder’s reputation.
Has the builder been involved in any lawsuits?
What is the builder's reputation for quality? (You should try to find this out even with a home that is not new)

If you are buying a condo, is it brand new construction or an apartment conversion?

What do the home owner’s dues actually cover?

Is insurance covered in the dues and what do you then need for insurance?

Do you know what a resale certificate is?

Is the floor plan a good one for your needs and for future resale?

Are there any important structural issues that seem apparent?

Should you reconsider purchasing this home or bring it to the attention of a building inspector if you decide to buy it?

Is the home in need of updates? What would be the best updates to make in the future?

Is the home located on a good street?

Is the yard a good one?

Are there noise issues?

Is there an active home owner’s association? Are there rules which will prohibit you from doing what you might want to do?

Is the home priced right for the current market?
What is the direct competition?
How many homes are selling this month?
What is the recent sales history?


These questions and more should be answered when buying a home or condo. Remember, a home buyer will a home seller be in the future. If you can answer these questions and believe you are making a good investment, then go for it! Happy hunting!

Feel free to comment if you have any further questions you think are important to ask before you make that home purchase.

One of life's biggest dilemmas

I am here to help you solve one of life's biggest dilemmas. Imagine it's Friday night, you are tired, you've worked hard, and it's been a long week. You face the challenge of the week: Where to go for dinner? This is a question my husband and I often ask each other. Sometimes after a long week you want to go for dinner without thinking much about it. Ever feel that way? For those of us who struggle with the eternal dilemma of where to go for dinner, there is a website for all of us.

Have a little fun and take the decision out of the decision making process.

All you have to do is plug in your zip code and see what the wheel of food picks for you.

Enjoy!
Let me know if you use this site and if it worked for you!
www.coverpop.com/wheeloffood/

State of the Market- a review of 2006 and a look at 2007

This information comes from the statistics charts for the full year, please take a look at
http://debrasinick.com/docs/2006_Year_to_Date.pdf

The 2006 real estate market was a real roller coaster ride. Overall, prices were up for the year. Inventory climbed each month, peaked in October, and dropped off at the end of the year. With the increase in inventory, the fall proved to be the toughest time to sell a home.

As I mentioned in a statistics report in June, I could see the number of homes for sale increasing dramatically. We started the year with only 2031 homes for sale. By September, inventory peaked with 3218 homes. December saw a drop in inventory to 2165 homes. This was1100 homes less than September, but only 100 more homes than we started with in January of 2006.

The best month to sell in 2006?
March, when 61% of all the homes listed sold!

The month with the greatest number of sales in 2006?
May with 1367 homes sold.

The month with the largest number of homes for sale in 2006?
September with 3218 homes for sale.

The toughest month to sell in 2006?
November when only 20% of the homes sold.

How did the year end? On the eastside prices increased an average of 19%. The increases varied, Mercer Island took the price, oops the prize, in 2006 with 36.9% appreciation. Downtown Redmond, Education Hill and Union Hill were next with a 26.9% increase in pricing and West Bellevue followed closely with 24.1% The Redmond/Bellevue area around Microsoft showed a price increase of 9.4% while Kirkland prices were up 15.3%.

Overall, 10% less homes sold in 2006 than in 2005. A few areas showed an increase in sales, but this was the exception rather than the rule. Seventeen percent more homes sold in West Bellevue and 16% on the plateau.

My crystal ball for 2007: We should see a strong market this year. The rate of appreciation will be less than 2006 and definitely less than 2005. I believe the increase for the Eastside will continue, but at a slower pace. There will be exceptions to this rule, such as the neighborhoods of West Bellevue and Mercer Island. Strong increases in pricing will still be seen there. The best time to sell your home in 2007? If you can do it, put your home on the market by April. The stronger absorption rates and the greatest number of sales happen in the spring.

Watch our employment rates. This will give you a good clue as to where we are heading in the real estate market. The more jobs created, the more houses will sell and the more likely will be an increase in prices. Pay attention to the absorption rate each month and this will also give you a clue as to market performance.


Enjoy 2007!