Sam DeBord - Seattle Real Estate Broker, Realtor - SeattleHome.com

I had the pleasure of visiting some of the most coveted Seattle area homes week. Brian and I had some clients in from out of state, and we showed some of the finest homes available in the Northwest. From Medina to Hunt Point, Meydenbauer, Newport Shores, Clyde Hill, and Mercer Island, it's always a great experience to visit these well-built, beautiful homes on the shores of Lake Washington. It doesn't feel like work.

It's interesting to see the different styles of homes available in the Eastside. While most waterfront homes in Seattle are much more traditional, we find the $5MM+ range in Greater Bellevue to be a potpourri of Tuscan, NW contemporary, modern, and even rustic homes. The builders and architects vary widely in style, but most make the best possible use of the views of Lake Washington, Bellevue and Seattle's skylines, and the privacy that most of these shoreline properties enjoy. Add the top-ranked Bellevue School District to the mix, and it's not hard to see why professional athletes and software executives gravitate to these areas to live.

Thanks to all of the listing agents who made these visits possible - Wendy, Kathryn, Larry, David, Karen, Kris, Barbara, Stephen, Judy, Mark, and anyone else I may have missed. You all do your clients a great service by the professionalism with which you conduct your business.

Bank-owned homes for sale on the NWMLS in the Seattle area haven't shown a significant change during the summer of 2009. Since June, there have been just about 200 bank-owned homes listed for sale in Seattle, Bellevue, Kirkland, Redmond, and Shoreline. The numbers for August and the beginning of September have remained very similar.

This doesn't mean that there aren't an increased number of Seattle foreclosures. Most numbers point to more foreclosures this year than last. We're probably just seeing a delay in these properties coming to market. Banks are not well equipped to list and sell homes, and they take much longer than the average home owner to get a property marketed and ready for sale.

It's getting a little bit harder for first time buyers to get a real deal on Seattle homes these days. If my personal anecdotes relate at all to the general real estate market in Seattle, there's a real floor being created in prices for entry-level homes. My first time buyer clients are finding that buying a home isn't as easy as making a low-ball offer and waiting for the transaction to close. In the last few weeks:

Buyer 1 tried to purchase 2 new construction condos in University District ($200k) and lost out on both to full price offers the same weekend. This developer doesn't need to negotiate, as sales are coming fast and all at the list price. This same buyer then purchased a new construction condo in Capitol Hill ($270k) at about an 8% discount from list price.

Buyer 2 made a nearly-full price offer on a house in Mt Baker ($250k), only to have another buyer pay full list price (after 4 months on the market) the same weekend.

Buyer 3 purchased a new construction condo in South Lake Union ($400k) at the list price with some financing concessions, as four other lofts in the building sold that same weekend, all at the full listing price.

Buyer 4 found 2 bank-owned condos in Edmonds and Lynnwood ($150k), was too busy with work to write an offer that day, and they were both gone the next day to full-price buyers. Currently has a full-price offer out on a bank-owned condo.

Buyer 5 made an offer of 2% below list price on a small home in Tukwila ($250k), while a competing offer was written above the list price. This home was on the market for 4 months, with no previous price reductions. Some buyers are getting the bidding war mentality.

Buyer 6 just got a contract signed around on a bank-owned home in SeaTac with a nice lake view ($250k). It took a month of negotiation, but this buyer is getting a 10% discount off the list price when we first made contact with the bank.

There are still some deals to be had, so there's no reason to be frenzied about buying a home. First time buyers should get serious, though, if they're trying to meet the November 30 deadline for the tax credit. Short sales will likely not happen in that time frame. Bank-owned homes are still possible, but they need to be under contract in the next few weeks. There will be a surge of home sales in the next month if the tax credit isn't extended, so get ready to make a strong offer and get a transaction moving.

There's a big push by lawmakers, real estate professionals, and lobbying groups to extend the current tax credit for home buyers. First time home buyers can currently get an $8000 tax credit for buying a primary home. This credit lasts through November 30, with all transactions needing to be closed by that date to qualify.

There are a number of proposals from Republican and Democrat legislators to extend and even expand the tax credit. While some proposals are for a 6 to 12 month extension, the expanded monetary guidelines could have even bigger ramifications. One proposal is to increase the maximum tax credit from $8,000 to $15,000. This would make a real difference in higher-value markets like Seattle.

Of course, nothing is certain in politics. There are many more high-profile budget issues at hand, so it's hard to say if these measure will get the attention they need. The only sure thing right now is that the current credit will be in effect through November 30.

Seattle real estate today is a tale of two cities. We have the same problems with foreclosures and distressed home sales as any big city in the U.S., albeit Seattle foreclosures are not nearly as prevalent as those in boom/bust cities like Las Vegas, Phoenix, and Miami.

We also have new construction condos in downtown Seattle with slow sales, buyers backing out of contracts, even some buildings being converted to apartments. The over-supply of new condos downtown just can't be consumed--it seems so obvious now. Waterfront homes and luxury homes are particularly slow, as financing is becoming more available but is still not as attractive as it should be in the luxury price range.

At the same time, we have pockets of red-hot sales, full price offers, and even bidding wars. I've written a lot about Ballard's single family homes, with median sales times being just a couple of weeks, and some homes selling above the list price. Many houses in Ballard priced under $400,000 are receiving multiple offers within a day or two on the market. Most first time buyers learn quickly that they're going to have to act fast in this market if they're going to get a house in Ballard at an attractive price.

In another hot spot, new construction condos in the University District are selling quickly and at full price. I've been following these condos with some clients. In the first two weeks that these condos came on the market, they've sold faster than anyone expected, without any discounts from the list price. While we wanted to make offers on two of those condos, they both sold at full price without concessions during the weekend. I believe they've sold out 10%-15% of the building in just a couple of weeks.

On Capitol Hill, we've seen some beautiful new construction with a bit more room to negotiate, but sales still strongly picking up in late summer. We've been able to negotiate some significant discounts in sales prices, more typical of the general market, around 5%-10% off the listing price.

It just goes to show you that even if it's a cliche, "All Real Estate is Local." If you're buying a house in Ballard, it's much different than buying a house in West Seattle. If you're selling a condo in the University District, it's much different than selling a condo in Belltown. It's all Seattle Real Estate, but if you don't know the truly local market, you may be swimming upstream.

Sam DeBord and Brian Wiegand
Seattle Homes and Seattle Condos for sale on SeattleHome.com
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