Robert Lani

The other day, I did some previewing and came across a very cute community of cottages in the heart of Ballard. These cottages are built green and provide homeowners with comfortable and environmentally friendly home. I was very impressed with the new concept that they offered. They were somewhat of a hybrid between single family homes townhouses, and lofts, with a real community feel. It is essentially a single family home, but the openness of it gives a real loft feeling.

The location is just a block off of Market Street in the heart of Ballard. As you walk in, the ceiling vaults up to the second floor, providing lots of natural light. The stairs lead up to a large master suite on the second floor. The master bathroom has very nice tiling. Back downstairs, you'll find a nice kitchen and second bedroom. The "cottage" concept is a bit hard to describe, but definitely worth checking out. Maybe it's a trend that we'll see more of in the future.

The cottages are also built green, which will save on energy bills.

The cottages are offered by Gerrard Beattie and Knapp.
Jolie Lewis
Jolie@gbk.com

I held an open house last weekend for one of the agents in my office. It turned out to be a good open house with lots of traffic. While at the open house, a woman and her husband came by. They spent a lot of time looking around and trying to figure out where their furniture would fit. I knew right away they were interested in this condominium. I started to talk to them and as I started to ask questions, I found out that their last agent stopped communicating with them. As we continued to talk about their needs, they said they were thinking of the place as an investment. They stated that they were thinking of making an offer on the condominium and would like me to be their agent.

I found out from them that they were thinking of selling the unit with 6-8 months after purchasing. When I found that out I just blurted out that I would not be their agent if they did such a thing! I explained it was not a wise investment idea, especially in today's market, it would be better to rent instead of selling the condominium.

They have not committed to being my client and they have decided not to make an offer on the condominium. Did I do the wrong thing by not taking on a buyer when I knew that it was not a smart idea for them? Some agents and friends say that I should have let them make an offer and buy the unit no matter what their time frame for ownership. I know for myself I feel I did the best thing for them, whether or not it cost me a client.

David Crowe, Chief Economist for the National Association of Home Builders spoke at the NW Builders Show on December 11, 2008 talking about the 2009 housing forecast. The one bright spot to the Seattle housing market is that we are still adding new households. From 2001 to 2008 there were 1.4 million households added in America. There are 3 contributing factors to this growth: 1. baby boomers are at an age to buy a home; 2. the influx of 1 million people immigrating to this country; and, 3. in 2007 there were more births in this country than in 1957.

He noted that Seattle housing prices have only fallen back to 2006 level, which is much better than most cities, where prices have fallen back much further. He was positive that the good labor market in Seattle will help drive the housing market rebound. As mentioned above, there are still new housing starts in Seattle, although down from "normal" years.

I know, I know, everyone is focused on the pervasive negative news in the media. Yes, housing prices are down in Seattle, but if a recent report shows that over the long term, prices in Seattle are still up considerably. From just five years ago, average home prices in the greater Seattle-Bellevue-Everett metropolitan are up by 55 percent. You can see from the chart below that most areas in Washington State are increasing over the long term. This information is from a survey of the Federal Housing Finance Agency and can be found on their website at www.fhfa.gov.

While the housing prices in the short term may seem grim, real estate should be a long-term investment.

Where do you think prices in your area will be in five years from now?

Robert Lani
John L. Scott
robertlani@johnlscott.com
206-919-1755

In case you haven't heard, Tweedy & Popp Hardware is moving. Tweedy & Popp is an old fashioned hardware store with lots of inventory. The difference is in their personalized service. The store has been around since 1920 making it the oldest in Seattle! Don't worry if you're a fan though -- it's moving just about a block down from its current space at 1916 N. 45th Street down to Wallingford Center. They should be in their new space by mid-March.