Seattle Condo Buyers Are Moving The Market, Just Sold At Insignia Towers
Hey guys. Two parts to this blog post. I’m going to explain why the market has been shifting towards buyers and secondly, I’m going to show you an example of a Seattle condo my client bought where we reduced the price and he ended up with an incredible 39th floor view unit. Lets start with the unit I just sold. It’s in Insignia Towers at 5th/6th and Bell/Battery. In my opinion it Insignia is a top 5 building in Seattle. It has incredible amenities, a very good location and was developed by an experienced multi-family development company. Take a look at a video I just produced regarding the sale:
Now, lets take a look at two charts showing condos for sale in Downtown Seattle as well as the months supply of inventory. The number of homes for sale reflect a 37% annual increase in condos for sale in the downtown core. The months supply of inventory has moved up 67%.I’ve been pretty vocal the last 60 days about now being a great time for buyers to purchase. My thoughts are pretty simple:
INVENTORY IS WAY UP
Real estate is about simple supply and demand. The more homes available for sale, the more opportunity buyers have to pick their price and their terms. For the last 6 years sellers have been be able to get 100% or more of their asking price. In fact, just 4 months ago, Downtown Seattle sellers were getting close to 5% more than their initial asking price. Recently, buying has cooled a bit (buyer fatigue) and the inventory of available homes have risen.
What this does is present an opportunity for prospective buyers to step in an negotiate their terms. For example, if you find a condo that has been on the market for 30 days or more, you might be able to negotiate a price reduction and even a closing cost credit. This hasn’t happened for nearly 7 years. Watch the video above for a real time example.
HEADLINES MOVE MARKETS
You may have noticed the negative headlines in the news the last 60-90 days. To be honest, some of it is just good honest reporting, but some of it is also sensationalism. You have to be careful what you read and how you read it. Real estate is hyperlocal. So when you hear about news stories and headlines that throw Seattle, Tacoma and Lynnwood in the same sentence, take caution. Every neighborhood and borough in Seattle responds differently to market conditions. It pays to spend time and energy becoming an expert in the neighborhoods you wish to invest. Headlines about a shift in the National housing market has very little to do with condos on Queen Anne Hill. It might seem like a oxymoron to believe what I’m saying and what you read in my blog when I’m negative on other publications, but I’m paying special attention to all the details that national beat-writers are not. I know the numbers and I can help you make a great purchase decision. As the headlines get negative about the market, that is your time to start getting greedy. You don’t want to catch a market as it turns and heads down, but as you’ll read next, I think buyers have a window of opportunity with a market that has good fundamentals.
TRUST THE FUNDAMENTALS
There was a brilliant investment guru that was widely popular in the 1980’s/90’s. His name was Peter Lynch. He spoke in great detail about how important it is to invest in things you know and believe in. I think his advice can be used in the Seattle condo market. Have you been to Downtown Seattle lately? It is bustling with a young, highly educated workforce. There are cranes everywhere and the local economy looks good. Labor numbers are solid, we have had record years of wage growth and population increases. What does this have to with investing in what you know? Well, it shouldn’t take long to notice that the Downtown/Cap Hill/Queen Anne markets pass the “look test”. What we know is that the fundamentals in Seattle are strong. Even with a change in the real estate market, the fundamentals of our local economy are solid. Investing in a market that has momentum and a positive trajectory is a good idea. Its something I believe in and I’m paying attention with greater detail than most. I believe in Seattle. Even if there is downturn, I firmly believe that our city is positioned for positive growth moving forward.
I think you can take this window of opportunity and trust that you are making a good decision. I think in 10 years, you’ll thank me for it. Let me know how I can help – feel free to email me at firstname.lastname@example.org
Have you seen our free map of condos near Seattle’s light rail? Check it out!