Let me begin by saying that I’m not a pessimist – in fact, I’m just the opposite. Most people in my life would consider me much more of an optimist. With that said, I think its important to view the economic events around us with equal weight. Seattle has been on an unprecedented run the last 5 years. Downtown Seattle has experienced a 60% increase in its Median Sales Price, Capitol Hill experience a 97% rise and Queen Anne experience an unprecedented 116% rise over the last 5 years.
I’m not suggesting you “HAVE TO” sell, I think we still have months or even years to go in this current cycle. With that said, if you fall in any of these categories, this blog post is for you:
- I have been thinking about selling.
- I’m moving soon and want to consider my options
- I have multiple properties and I wonder if I should sell one of them to take some profit.
- I’m done living in a condo and want to buy a home.
- I’m done being a landlord, it is time to sell my rental.
ALL GOOD THINGS COME TO AN END
Everything good comes to an end. Think about it…..The Sopranos, Breaking Bad, Parachute Pants, Tiger Woods In Golf, The Beatles, etc….. You get my point. Every GREAT market, like the one we are experiencing in Seattle eventually comes to an end? Are you going to time the market it perfectly? I would think not.
For the second year in a row, Seattle has led the entire country in the number of Cranes. You know that saying, what goes up, must come down? I think that old adage applies here as well. There are over 75 projects starting this year or in the pipeline in Seattle. That is nuts. In March of 2017, the PSBJ pulled some census data that showed Seattle was growing by 1,100 people per week. I’m not suggesting that the bull run in Seattle real estate is coming to an end – however, if you fit into the 5 categories above, you may want to consider the option of listing your condo.
IT IS GOOD TO BE A SELLER
How good is it if you are a Seattle condo seller? In Downtown Seattle, in the last 30 days the average seller received 3.8% more than their asking price – in Capitol Hill, the number was 4.5%. Not only are you in a market where condos sell for full price, but they also sell in record time. The average time it took a seller to go under contract with a buyer in 2017 was just 22 days – with some price categories going as quickly as 7 days.
This is very different then what a normal market would be or any other city in America. We have a it good in Seattle and like I mentioned before, this can’t last forever.
This is a look at the number of homes for sale in the last 5 years in Downtown Seattle. The number has plummeted. This means more competition for your home/condo. More buyers equate to escalations (multiple offers)
TAKE RISK OFF
Have you heard the old Wall Street saying that you never go broke ringing the register? Well, its true. Sometimes it just makes sense to take some risk off. Speaking of Wall Street, there are a few blogs I follow, some a bit darker and pessimistic than others – one of these said blogs posted a really interesting chart the last quarter.
It shows what they called “near parabolic growth in Seattle” compared to the rest of the country.
Bottom line is, it has been a VERY good time to be an owner of Seattle real estate. I’m not suggesting that you must sell. I don’t foresee a bubble and I certainly don’t think selling right now is right for everyone – with that said, if you fall into one of the categories above, I wouldn’t think twice about putting your place on the market. This is what the current inventory looks like in Downtown Seattle, Capitol Hill and Queen Anne – we wrote a post about it yesterday.