3 Awesome Closings -One awesome broker!

This last month I had the privilege of working with 3 sellers on three different listings and they all closed in the last few days. All 3 had multiple offers and all 3 went over the original list price. So what does this mean for you. As a seller you need to know that your home or investment property is in high demand right now. Two of these sales were duplexes and each went at least 12% over asking with few contingencies. The residential condominium in Kirkland went over asking as well, showing a recovery in the prices of condominiums in Kirkland (SEE Previous blog on condo price’s HERE). As a buyer you may consider starting your search now, as prices will hold steady for a long time to come, in my opinion.

Here are the three listings:

Housing Bubble? NO ! Here is the Missing Link – Demographics

Why home prices will not Crash anytime soon

As a broker, I regularly get asked “Are we in a bubble?” or “are prices going to crash like 2008?”. Or a buyer will make the statement “I’ll wait till prices crash”. The answer is a resounding “NO, prices will not crash!” Let me tell you why- 

Most everyone agrees that low inventory, high buyer demand, & low interest rates are the main drivers to higher & higher housing prices. While it is true that available inventory for buyers is at historic lows, & low interest rates give buyers more buying power, most writers are missing one very important factor that will perhaps be the biggest driver of price increase’s going forward – DEMOGRAPHICS– the coming wave of First Time Home Buyers.

I’ll explain this coming wave in a minute but first lets go back in history to see how Demographics can affect housing Prices. Most people call The Crash of 2008 through 2014 ‘The Housing Crisis’ but it’s roots were not in housing. It was a bank induced financial meltdown that in the end affected home prices.  Banks made bad loans, homeowners had little or no equity, and builders built too much inventory.  Then, because of this bank corruption, no one could get a mortgage and few could sell because they had no equity. In short, too many houses, no buyers (unless they had cash) and no mortgages; the exact reverse of what is happening today. But there was a silent factor in this Perfect Storm that few recognize:  fewer First Time Home Buyers. You see, in 2006 the average age of first time home buyer was 30 to 32 years old, so they were born in 1974 to 1976. Birth rates had been dropping since 1970 and continued for 6 or 7 years, resulting in fewer first time home buyers 30 years later. Couple this with builders over-building leading up to 2008 and homeowners with no equity trying to sell and what happened is now history. See chart below

Chart showing Home buyer Demograohics
When were Average Home Buyers Born?

Now, lets fast forward to 2021, the average age of the first time home buyer has increased to 33 (National Association of Realtors®). Looking at the chart again, we see that an average of 3.8 million people were born in 1987 -1988. (That’s over 700,000 more than the 3.1 million average in 1974-1976). And, as the chart shows, the number of buyers will increase for the next 3 years, peaking in 2023 (Born in1990), just barely return to today’s levels by 2028 to 2030 and then peak again in 2040. So, as many &/or many more average age first time home buyers for the next 20 +years! And, this generation of home buyers has more wealth than first time buyers in the past!.

So what is going to happen? The silver lining is that in 2020, US home-builders were just beginning to deliver enough homes to satisfy an average years demand. The Mortgage crisis of 2008 – 2004 wiped so many builders out that we were almost 3 million homes behind by 2020. And except for the speed bump of COVID in spring quarter 2020, builders are now set to finally deliver at least enough homes to keep up with demand. If builders are able to keep up the pace and build what today’s post-COVID buyer desires, we may see some of the pressure on prices lessen. If you are a buyer, one can only hope.  If you are a seller, rest assured, in my opinion, your value is safe for the foreseeable future.

Two more awesome listings with Multiple offers and Pending Quickly!

The market continues to be hot and I was so busy with listings and offers that I could not get this post out for you to see. Hopefully you all received the separate emails for each listing, as I hope you are on the mail-out list! If not, reach out & I will get you on the list!! Hey, reach out even if you are on the list, I would love to hear how things are with you!

320 35th St SE Auburn, WA 2018 S 233rd St Des Moines, WA 12700 NE 116th St Kirkland, WA #C-5

Continue reading “Two more awesome listings with Multiple offers and Pending Quickly!”

January 2021 market Update

A recap of an anything but ordinary year

2020 started off as any ordinary year.  We had made our New Years resolutions (& broken at least one!). We had pondered our goals and travels for the next year.  Real estate was no different.  The previous year had been strong, a slight sellers advantage due to low inventory and low interest rates.  A slight seasonal dip with the promise of a strong spring market.  Then WHAM!  COVID took us all by surprise.  The initial lock downs created havoc everywhere; work, school & home.  In the real estate world,  sales cancelled or stalled, open houses went away, potential buyers and sellers spooked. But after a short month or so the market changed. Buyers, eager for deals came out. People were now able to work remotely & needed space.  Commute time was no longer as big an issue.  The result was an exodus from the urban areas to the suburbs and beyond. Multiple offers, waived inspections, and other buyer concessions became not just normal but ‘required’ if you wanted the deal. This market change has lasted throughout the holiday season into January as buyers had no travel plans and little else to distract them. And no change is expected in the near future.
According to a recent press release by the 23 county NWMLS, house & condo prices increased by 12.2% to $488,000 from December 2019 to December 2020. Single family homes set the pace with a 12.9% jump with condo’s far behind at 1.8%. This is no surprise as houses with more space are suddenly more in favor than their smaller counterparts. See below for more detail on your area, or reach out and we can chat more specifically about your area or home style.

AreaMedian Priceyear over Year change
23 County MLS$488,000+12.2%
King County$675,000+8.9%
Pierce County$430,000+16.4%
Snohomish County$530,000+7.2%
Seattle$720,000+9.1%
Bellevue$1,080,000+9.6%
Issaquah$765,000+13.4%
Kirkland$934,900+27.2%
Source NWMLS – info deemed reliable but not guaranteed

CYBER WEEK REAL ESTATE SPECIAL – CONDOMINIUMS ALMOST EVERYWHERE!

CONDO CRICE DROP

Short term buying opportunity – Buy now!!

Renters, Investors, First Time buyers – Read This!

An unexpected outcome of owners and renters fleeing urban areas in search of more space has emerged in the recent dropping of condominium prices. As quickly as houses in the suburbs and exurbs have shot up in price, the condominiums they have left have dropped in price. Even 30 to 45 days ago,

Continue reading “CYBER WEEK REAL ESTATE SPECIAL – CONDOMINIUMS ALMOST EVERYWHERE!”

Giving Thanks in 2020

Ok, lets admit, 2020 has been a weird year. It started out like any other year; year end planning was done, trips were planned, goals were set. Then BOOM!

First came political wrestling, then COVID & shut downs, then George Floyd and the subsequent unrest, then more COVID, then fires just a little too close, then the election, then a Supreme Court judge dying, then more election upheaval and now more COVID & lock downs. Definitely a year of change and depending on how you are wired, either chaos or full of blessings.

As we enter the end of this tumultuous year, I encourage you to count your blessings and share them with those close to you at Thanksgiving. Here are some of mine:

  1. My God & my country -I hope you love your God & our country as much as I do
  2. My family – Starting with my wife Katherine & my 91 year old parents to our 4 kids & two grand kids, to brothers / sisters / nieces and nephews, I feel blessed to be part of their lives and grateful
  3. Our friends – Both near and far; close or barely know each other; client, business associate or competitor, Katherine and I cherish each and every one of you. You are the reason we move forward in spite of the year, worry a bit and smile alot ! 🙂

So as we all celebrate Thanksgiving, from a safe distance of course, lets all reflect for a moment and let those who are important to us know it!

STAY HOME -STAY SAFE!

The Power of an agent referral

Quite regularly I get a call from someone I know that goes something like this…”I am looking at buying a house in _______ (name your state) and I meet this agent at an open house. We looked a few houses and we wrote an offer. Now they are asking me to do this and I don’t understand”. or … “they are not doing a good job, what do I do?’ or ??? You get the point. Something is not going right in a real estate transaction. Since I am not a party to the transaction and bound by the Realtor Code of Ethics to not interfere in other agents business, I usually can only console them and tell them it will all work out. I can ask a few questions, give a recommendation or two for them to take back to the agent.

But what I really want to ask them is why did they not call me and have me make a referral? Using both Coldwell Bankers internal Agent Referral platform and my numerous contacts, I could have found an agent with a good track record that fit the level of service they were looking for. I always call the agent and ‘interview’ them, see if it’s a good fit because hey, my reputation is on the line. But more importantly, when something comes up, I now have a right (actually an obligation) to pick up the phone and get some answers. I am a party to the transaction, I can ask to see a contract on their behalf. I can make a suggestion.

So, for those still reading, the main take-away here is even when you are buying somewhere else, call me and I can point you in the correct direction and / or make a direct referral. It will cost you nothing and give me the power to help you if needed.

Kurt is proud to support St Jude’s. Reach out to find out how you can help.

Katherine and I are usually quiet when it comes to the causes we support. But Coldwell Banker’s recent corporate partnership with St Jude’s is one we want to shout about. St Jude’s is on our list of organizations we support yearly and now, with each home purchase or sale, we have committed to an additional donation. You can help by buying or selling with Kurt and rest easy with the knowledge that your trust in Kurt will also help a great cause.

Want to donate to St Jude’s yourself?? Click here: St Jude’s donation

Real estate market goes over the top in September.

After taking a COVID induced break this spring, the local real estate market has heated up and in September it seems to have gone over the top. As reported in earlier market updates, buyers have come out in droves and sellers have hunkered down. This created the ‘perfect storm’ for both price appreciation and market time. Buyers came out looking for deals and were armed with more buying power due to low interest rates. Looking for more space, they are paying more and reducing contingencies. Those few sellers who dare to sell, are getting more for their home.

As shown below, all local areas have seen double digit 12 month price increases and continue to show low time on market. As I look at these stats weekly, I will report that a good share of the gain has come since the lows reached in April and May 2020 due to COVID uncertainty.

Don’t see your city or want a more specific area? Reach out!

What the future holds is anyone’s guess, but if you are a buyer, statistically, it will only get worse. Demographics show a wave of house hungry younger folks reaching the average first home purchase age and new home builders were just beginning to meet the annual demand before COVID. The shortfall that started in 2008 – 2009 will continue to move prices up. Sellers, on the other hand, have a bright future. Those fortunate enough to not need to buy a replacement home, or moving to more affordable digs, will benefit from sustained price increases for the near future.

Thinking of Buying or Selling?? Reach out and we can schedule a chat about your specific needs.

The Power of Negotiation

As a Certified Negotiation Expert (CNE), I often get asked exactly what that means and how much do agents really negotiate in a typical deal. It simply means that I have had extensive training in negotiation techniques and earned the CNE designation. It also includes many years of transactions, both for my own real estate and on behalf of others, where each time I put different strategies into play. And each time I learned something. I learned that negotiations start before I even list a house, in how I write my agent remarks and public description. I learned when representing a buyer, the negotiation starts before I write the offer and start when I call the agent asking questions. And, I learned (the hard way!) how to check each line, blank and box on an offer.

As an agent representing both buyers and sellers, I negotiate every step of the way, but truthfully, many agents do not. I get very upset and feel bad for clients on the other side when their agent drops the ball or fails to even try to negotiate.

For those of you still reading, a few examples: #1 – earlier this year I represented the buyer in a newer home purchase and knew that homes of that age in that county usually have an extra sewer assessment, paid over many years. So I checked the box that has seller pay it at closing, expecting it to be a negotiation point. My buyer would have accepted paying it, its only about $25 a month extra, but the agent did not know it existed till closing and they signed the offer as is. $5,000 + on my buyers side of the table. He also did not even try to counter my buyers offer of $565,000 on a house originally listed at $615,000, even though we’d have gone to $580,000 – another $15,000 still in buyers pocket ( and not in sellers pocket!)

Example #2 – My most recent closing (See previous Just Sold by Kurt post on this page) is another great example. As I mentioned in that post, we had multiple buyers. One needed to sell a house, my seller did not want to wait, so we used the two offers to move them both from the $650’s to $671,000. we accepted the offer that was closing sooner and agreed to pay some closing costs. Then Buyer 1’s earnest money bounced and the agent did not take it seriously (she said ‘it happens all the time!’). Not on my watch! She knew we had another offer, did not return my calls, so I negotiated a full price ($676,247) from Buyer 2, with no closing costs, & a few inspection items. A $13,000 swing into my buyers pocket, because I recognized the opportunity her fumble created. I later found out from Buyer #1’s new agent, that they actually were more qualified than I thought and would have paid full price once they realized the were in jeopardy. But the first agents lack of representation, inability to present her clients as strong and refusal to negotiate cost her clients a very nice, almost irreplaceable home. Sad!

If you’d like someone who negotiates every step of they way to negotiate your buying or selling, shoot me an email ( kurt@kurtkreager.com ) and we’ll schedule a Virtual meeting.