Market looks good for buyers, sellers as season approaches
Spring has sprung and so have the opportunities for buyers. Most areas saw an increase in available homes, and as we head into the peak buying-and-selling season, buyers have a bit more time to look at new inventory and make a thoughtful decision.
For sellers, the good news is that prices are still very stable and continue to increase in our neighborhood. In addition, sellers are experiencing brisk activity thanks to low mortgage rates and increased opportunity for buyers with the additional inventory. Despite the slight slowdown, many sellers continue to experience multiple-offer situations within certain price ranges as buyers are convinced this is a great time to buy a home.
Overall, we are continuing the transition to a healthy, more balanced market, and we expect the good momentum to continue with the strong job growth in our region, and a growing national economy. Buying a home continues to be a wise investment in Greater Seattle.
Let’s dig into the numbers a bit closer:
Madison Park Jan. 1-May 25, 2018
• 35 sold homes
• Average sales price: $1,840,961
• Average days on market: 28
• Average price per square foot: $723
• Lowest Sales Price: $560,000
• Highest Sales Price: $3,950,000
• Selling at 100.85 percent of last listed price
Madison Park Jan. 1-May 25, 2019
• 25 sold homes
• Average sales price: $1,876,944
• Average days on market: 79
• Average price per square foot: $684
• Lowest sales price: $395,000
• Highest sales price: $6,895,000
Selling at 97.8 percent of last listed price
These numbers show our market is good for both buyers and sellers. For buyers, the time they desire to make a well-informed decision is now available. For sellers, even though homes are on the market longer, and the sale prices are slightly below the list prices, the average sale price has actually risen in the Madison Park area. Real estate has proven to be an excellent investment for homeowners in our neighborhood and, according to all indicators, will continue to be a sound bet.
We may see an increase in the number of high-end homeowners looking to sell before 2020. Washington lawmakers recently passed a bill that will implement a graduated real estate excise tax (REET) going into effect on Jan. 1, 2020:
• 1.1 percent of the selling price below $500,000
• 1.28 percent of the selling price between $500,000 and $1.5 million
• 2.75 percent of the selling price between $1.5 million and $3 million
• 3 percent of the selling price over $3 million.
These new rates do not include the 0.5 percent tax imposed by King County. Call me for more information on what the new graduated REET means for you.
Our region continues to be a big draw for people all over the country and the world. For the first time ever, Washington came in first on US News & World Report’s Best States list.
“This confirms what we, in Washington have always known,” Gov. Jay Inslee told U.S. News, “that our state is great for businesses, workers, and investments, coupled with natural beauty and innovative, creative people.”
As the home of Microsoft, Starbucks, Amazon and myriad booming tech companies, the state received top-five rankings for economy and infrastructure, as well as education and health care. The University of Washington is considered one of the top research universities in the world, and remains a highly desirable choice for those seeking top-notch health care.
Madison Park’s reputation as a beloved in-city neighborhood for its community feel, tree-lined streets and beautiful homes continues to engage homebuyers. Buffered by Madison Park Beach on one end and the Washington Park Arboretum on the other, our neighborhood offers a beautiful natural landscape as well as a vibrant business district. The desire to be an active member of a local community is strong — having shops, coffee, cafés, fine dining and pubs within strolling distance is a valuable asset for the Park. While many of our residents work in the city or on the Eastside, when they get home in the evenings, they appreciate the opportunity to find everything they need in our neighborhood. Let’s continue to support our local businesses.
As of press time, there are currently 23 homes for sale in Madison Park, including Broadmoor. The most expensive is a Washington Park home on nearly 1.5 acres for $15 million, and the least expensive is a Washington Park Tudor listed for $1.42 million. With the prime buying and selling season soon upon us, we believe the market will remain positive for both buyers and sellers. If you have given any thought to taking advantage of the continued strong market, now may be the time for you to make your move.
Our Compass experts have a long history in Madison Park, and are ready to help you navigate this market to your advantage with the latest technology, top-notch marketing and proven pricing strategies. If you’re buying, our knowledgeable and savvy agents will help you achieve success in this still competitive market.
Evan Wyman is a managing broker at Compass and a Madison Park resident. Reach him at evan.wyman@compass.com.