Windermere Greenwood • October 31, 2017

The Gardner Report | Q3 2017

by Windermere Greenwood

The following analysis of the Western Washington real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact me.

ECONOMIC OVERVIEW

The Washington State economy added 79,600 new jobs over the past 12 months—an impressive growth rate of 2.4%, and well above the national growth rate of 1.2%. However, as we anticipated in last quarter’s report, we continue to see a modest slowdown in the growth rate as the state grows closer to full employment. Growth has been broad-based, with expansion in all major job sectors other than Aerospace (a function of a slowdown at Boeing). Given the current rate of expansion, I am raising my employment forecast and now predict that Washington will add 81,000 new jobs in 2017.

Given the robust job market, it is unsurprising that the state unemployment rate continues to fall. The current unemployment rate in Washington State is 4.6% and we are essentially at full employment. Additionally, all counties contained within this report reported either a drop or stability in their unemployment rate from a year ago. I maintain my belief that the Washington State economy will continue to outperform the U.S. as a whole. Given such a strong expansion, we should also expect solid income growth across Western Washington.

HOME SALES ACTIVITY

There were 25,312 home sales during the third quarter of 2017. This is an increase of 3.6% over the same period in 2016.
Clallam County maintains its number one position for sales growth over the past 12 months. Only four other counties saw double-digit gains in sales. This demonstrates continuing issues with the low supply of listings. There were modest declines in sales activity in six counties.
The market remains remarkably tight with listing inventory down by 14.2% when compared to the third quarter of 2016. But inventory is up a significant 32% compared to the second quarter of this year. Pending sales rose by 5.2% over the same quarter a year ago, which suggests that closings in Q4 will still be robust.
The key takeaway from this data is that inventory is still very low, and the situation is unlikely to improve through the balance of the year.

HOME PRICES

Given tight supply levels, it is unsurprising to see very solid price growth across the Western Washington counties. Year-over-year, average prices rose 12.3% to $474,184. This is 0.9% higher than seen in the second quarter of this year.
With demand far exceeding supply, price growth in Western Washington continues to trend well above the long-term average. As I do not expect to see the new home market expand at any significant pace, there will be continued pressure on the resale market, which will cause home prices to continue to rise at above-average rates.
When compared to the same period a year ago, price growth was most pronounced in Grays Harbor County where sale prices were 20.1% higher than the third quarter of 2016. Nine additional counties experienced double-digit price growth.
Mortgage rates in the quarter continue to test the lows of 2017, and this is unlikely to change in the near-term. This will allow home prices to escalate further but I expect we will see rates start to rise fairly modestly in 2018, which could slow price growth.

DAYS ON MARKET

The average number of days it took to sell a home in the quarter dropped by eight days when compared to the same quarter of 2016.
King County continues to be the tightest market, with homes taking an average of 17 days to sell. Every county except San Juan saw the days on market drop from the same period a year ago.
This quarter, it took an average of 43 days to sell a home. This is down from the 51 days it took in the second quarter of 2016 and down by 8 days from the second quarter of this year.
At some point, inventory will start to grow and this will lead to an increase in the average time it takes to sell a house. However, I do not expect that to happen at any time soon. So we remain in a seller’s market.

CONCLUSIONS

This speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors. For the third quarter of 2017, I have left the needle at the same point as the second quarter. Though price growth remains robust, sales activity has slowed very slightly and listings jumped relative to the second quarter. That said, the market is very strong and buyers will continue to find significant competition for accurately priced and well-located homes.

ABOUT MATTHEW GARDNER

Matthew Gardner is the Chief Economist for Windermere Real Estate, specializing in residential market analysis, commercial/industrial market analysis, financial analysis, and land use and regional economics. He is the former Principal of Gardner Economics, and has more than 30 years of professional experience both in the U.S. and U.K.

Windermere Greenwood • October 25, 2017

Pints for Puerto Rico at Naked City Brewery

by Windermere Greenwood

Windermere Greenwood • October 4, 2017

4th Annual Windermere Foundation Golf Tournament

by Windermere Greenwood

4th Annual Windermere Foundation Golf Tournament

It was a beautiful day on the golf course Monday, September 25 at Sand Point Country Club where 170 golfers came together to celebrate, network, and raise funds for Mary’s Place. The 4th Annual Windermere Foundation golf tournament was a great success; collecting nearly $20,000 that will be donated to Mary’s Place via the Windermere Foundation.

Mary’s Place was established in 1999 as day center for homeless women. Today, using their system of efficiently and effectively converting unused buildings into temporary emergency family shelter, Mary’s Place has 7-night shelters available for moms and dads with children that provide a warm bed, two meals, and a community of support for a total of 680 family members each night.

For the past 28 years, the Windermere Foundation has supported low-income and homeless families. What started in 1989 as a grassroots foundation serving families in need in Washington State, has grown to encompass eleven states and has raised over $33 million for organizations that provide shelter, food, children’s programs, and emergency assistance.

A huge thank you goes out to the sponsors and volunteers who helped make it an exciting and successful event.

Penrith Home Loans

Windermere Property Management/JMW

Two Beers Brewing Company

Seattle Cider Company

Windermere Greenwood • September 28, 2017

Windermere Greenwood Halloween Blood Drive!

by Windermere Greenwood

Save the Date!
Windermere Greenwood Halloween Blood Drive
Tuesday, October 31st, 1:00 pm – 7:00 pm

Get in the spooky spirit by giving blood this Halloween! Bloodworks NW will have a mobile truck in our office parking lot from 1:00 to 7:00 PM. Please call my office at (206) 527-5250 to reserve a time slot that works for you (some walk-ins can be accommodated). *You must bring your photo ID

All participants will receive a pair of fangs and be automatically entered to win an invitation to a private party with Seattle Seahawks linebacker Bobby Wagner. All you have to do is show up and Bleed for the Blue and Green!

Windermere Greenwood • September 26, 2017

“We’ve Got You Covered” Winter Drive for Homeless Youth

by Windermere Greenwood

Last year our office collected 200 items for YouthCare, and Windermere collected 3,500 as a whole! Drop off your donations of new hats, scarves, gloves/mittens, and warms socks to our office between October 16th and November 10th, so we can continue to #TackleHomelessness!

For all participating offices click here.

Windermere Greenwood • September 21, 2017

Tips to Keep your Garden Alive During the Fall

by Windermere Greenwood

Windermere Greenwood • September 21, 2017

Western Washington Pumpkin Patches

by Windermere Greenwood

Windermere Greenwood • September 21, 2017

Halloween Events for Kids

by Windermere Greenwood

Windermere Greenwood • September 18, 2017

Windermere and the Seahawks are Back for Another Season to #TackleHomelessness!

by Windermere Greenwood

Windermere and the Seahawks are Back for Another Season to #TackleHomelessness!

All of us at Windermere are very excited to kick off our second season as the Official Real Estate Company of the Seattle Seahawks!

Once again, our #tacklehomelessness campaign is front-and-center, with the Windermere Foundation donating $100 for every Seahawks home-game tackle during the 2017 season to YouthCare, a Seattle-based non-profit organization that has been providing services and support to homeless youth for more than 40 years. Last year, the Seahawks helped us raise $35,000 through our #tacklehomelessness campaign, and this year we are looking forward to raising even more money – and awareness – for this important cause.

Our partnership with the Seahawks and YouthCare fits perfectly with the mission of the Windermere Foundation which is to support low-income and homeless families in the communities where we have offices. Through the #tacklehomelessness campaign, we hope to be able to do even more.

A “score card” will be posted after each home game that shows how much was raised during that game. You can follow our progress throughout the Seahawks season on our Facebook page at Facebook.com/WindermereRealEstate.

Windermere Greenwood • September 6, 2017

Art Walk this Friday at Windermere Greenwood!

by Windermere Greenwood

Celebrate local artist Mary Taylor
and enjoy live music from the
Whiskey Cove Players this Friday
at Windermere Greenwood

Friday, Sept. 8, 6-9pm at Windermere Greenwood
311 N 85th St, Seattle WA 98103

It’s an end of summer art walk at Windermere Greenwood! Enjoy wine, snacks, and help us celebrate local encaustic painter Mary Taylor this upcoming Friday from 6-9pm, as part of the ArtUp PhinneyWood Art Walk. Mary paints with melted beeswax and resin colored by raw pigment.
And back by popular demand, the Whiskey Cove Players will bring classical covers and original compositions sure to float your boat! Glenn Frank and Pete Howland on guitar, Jon Lanthier on keyboards, Fritz Rud on percussion, Lisa Fox Latchford on vocals, and Windermere Greenwood’s own Liz Talley on cello!

Come hang out with us, and feel free to share this invitation with your friends! We hope to see you there!