Realogics Sotheby's International Realty Presents the Market Report: Puget Sound Real Estate Trends; 2015 Year in Review

Realogics Sotheby's International Realty (RSIR) presents the Market Report: Puget Sound Real Estate Trends & 2015 Year in Review,  a comprehensive look at the 2015 real estate market in an exploration of seven key counties of Western Washington: King, Snohomish, Kitsap, Pierce, Jefferson and Island counties, as well as 29 neighborhoods for our current and prospective clients. The report touches on macroeconomic trends, the primary demand drivers influencing our regional real estate market in addition to micro markets that vary greatly from neighborhood to neighborhood.

The year 2015 witnessed white-hot real estate conditions throughout the Puget Sound not seen since before the Great Recession. Prices of real estate throughout the Puget Sound catapulted higher in 2015, the result of tight supply and an influx of new buyers. A similar trajectory is expected in 2016: expanding demand, anemic supply and developers playing catch up to increasing homeownership levels.

The Puget Sound region has taken a different path from other boomtowns in North America whose economies are based on resource extraction (e.g., oil), financial intermediation, or entertainment. Seattle’s aerospace industry has gradually yielded its eminence to the service expansion and new product development cycles of the information tech industry and their secondary employment effects on IT contractors, food & beverage businesses, and real estate developers.

Besides drawing new residents domestically from other U.S. states, the Puget Sound benefits from the state’s importance as a gateway to trade with Asia, as well as from international air travel to and from Sea-Tac International Airport. The Sound’s proximity to international communities across the broader region from Vancouver, British Columbia to Los Angeles and San Diego is also a factor, as is the superior quality of life in the region and its comparative affordability in respect to those other markets. The international eminence that results from these features of our local economy has allowed the area to attract growing numbers of immigrants from overseas and recognition as a global gateway city.

As always, for the most current market information around the corner or around the world, reach out to one of RSIR’s Global Real Estate Advisors by visiting www.RSIR.com.

The Puget Sound Business Journal Reports an Increase in All-Cash Buyers in Seattle Area

Cites Realogics Sotheby's International Realty Research

In an article from Janaury 22nd, Marc Stiles of The Puget Sound Business Journal reports that, “All-cash buyers dominate region’s luxury home market,” as “nearly two-thirds of the people who bought high-end homes last year in the Seattle area paid cash.” In the feature, Stiles citesRealogics Sotheby’s International Realty (RSIR) research which found that the most expensive sale of 2015 was a waterfront estate on Mercer Island at $13.8 million.

Stiles likewise describes that in these cash deals, “thirty-nine percent of the buyers were from overseas, primarily China.” This finding aligns with a recent article in The Seattle Times that included RSIR’s market research and found that luxury sales have increased in the area thanks to the presence of tech executives and foreign buyers. Of particular interest was that RSIR found that the distinctive waterfront neighborhood of Newport Shores in Bellevue attracted 13 sales during the past two years that exceeded $3 million and 86% of the surnames on these newly recorded titles appear to be on Mainland Chinese origin. There were no such sales in 2011, 2012 or 2013.

In response to this steady rise of Chinese nationals arriving to the Seattle/Bellevue metro area, RSIR and Tiger Oak Publications recently released a 92-page, all-Mandarin magazine called Seattle Luxury Living, which generated a front-page article in the Seattle Times and was a featured story on the Perspectives blog by Sotheby’s International Realty®.

This recent slough of news pieces also comes on the heels of Palace Magazine’s recently published special report that added Seattle to its list of top markets sought by Asian homebuyers. “We are proud to represent our region within this elite publication and be included amongst our peer markets,” said Dean Jones, President and CEO of RSIR. “There is now little doubt that Seattle is on the map overseas and I believe this wave of foreign direct investment is just getting started.”

Market Update: November 2015

November’s numbers indicate that buyers continue to reign in King County, as residential homes spent an average of just one month on the market, down nearly 30% compared to last year. Inventory continued its low trend, as the number of active homes was down 44% year-over-year and 27% month-over-month. Given the low inventory and increased demand, the median sale price rose to $440K, up slightly from last month and nearly $40K from the previous year. In downtown Seattle, condo active inventory held steady month-over-month but was down 12% from the previous year. Downtown Seattle condos likewise saw an increase in median sale price, up over $100K compared to last year’s numbers.

For the latest numbers from areas around the sound, View November’s Market Reports >>

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