Market News • November 12, 2015

Understanding the Chinese Home Buyer in the U.S. Housing Market

by Guest Author

Earlier this week, Bill Russell, head of International Development for Chinese real estate website, Juwai, spoke to a large group of Windermere agents about how to connect to Chinese buyers. Since China is a country with very different marketing tactics and a culture drastically different than our own, we were able to learn a great deal. To put things in perspective, Juwai.com currently has 2.6 million unique views per month from Chinese consumers who are searching purely for western properties; 20 percent of whom live outside of China. The United States is the number one searched country by far, followed by Australia and Canada.

So why are so many Chinese investing in land abroad? According to Juwai, 36 percent are buying for investment, 34 percent for immigration, and 16 percent for education (i.e. buying a house for their kids to live in while they’re studying in the U.S.). What many people may not know is that there is a minuscule amount of inheritance wealth in China, the majority is “new money” made in the last 10-15 years. With an average budget of $2.6 million, the Chinese typically take a year to search for the right home in which to invest, patiently taking time to research everything thoroughly. On average, they end up spending about $933,723 per property.

There are 297 different Chinese dialects, making it nearly impossible for local agents to market their properties effectively. It can also be time consuming and stressful trying to market to China since they don’t use any social media from the Western world; China has their own Google, Facebook, Twitter, etc. which all have different names. Juwai.com is their version of Zillow.com, which is bridging the gap between East and West by translating all property and marketing comments. It may come at a price, but real estate companies, like Windermere, don’t mind paying the cost of marketing on Juwai since the Chinese buyer is such an important part of the housing market (especially in Seattle’s Eastside neighborhoods).

Cities like Seattle, San Francisco, and LA are popular destinations for Chinese immigrants and investors, and they’re representing larger and larger pieces of the real estate pie. Experts don’t see this changing for the foreseeable future, so it’s in a real estate professional’s best interest to get to know the Chinese consumer. A big thank you to Bill Russell for coming out and helping us do just that.

Market News • November 11, 2015

Western Washington Real Estate Market Update

by Windermere Economics

ECONOMIC OVERVIEW

After a period of above-average growth, Washington State has seen a modest slowing in employment growth, but we continue to add jobs at a respectable rate. The State unemployment rate was measured at 5.3%, marginally above the national level, but it is trending in the right direction.

Although growth continues to be uneven across the state, there are some encouraging signs which suggest that all of our main metropolitan areas should see positive job growth for the foreseeable future.

HOME SALES ACTIVITY

There were 22,207 home sales during the third quarter of 2015, up by 14.1% from the same period in 2014.
For the first time in several years, there were no counties that saw annual decreases in home sales.
The growth in sales was most pronounced in Kittitas County, and all but two counties saw double-digit percentage increases from the same period last year.
The lack of available inventory in the region continues to be a concern. Listings in the third quarter were down by 18% from the second quarter, and down by 24.5% from the third quarter of 2014.

HOME PRICES

Prices in the region rose by an average of 6.3% on a year-over-year basis and were 9.6% higher than seen in the second quarter of 2015.
The only county where home prices fell on an annualized basis was in Kittitas County, but the drop was a miniscule 0.5%. Kittitas County saw sale prices grow by 5.8% between the second and third quarters of this year.
When compared to the third quarter of 2014, San Juan County showed the fastest price growth with an increase of 14.6%. Double-digit percentage gains were also seen in four other counties.
As long as inventory constraints persist, it is likely that price growth will continue. However, if interest rates rise in 2016, as they’re expected to do, we will likely see price growth slow.

DAYS ON MARKET

The average number of days it took to sell a home dropped by nine days when compared to the third quarter of 2014.
It took an average of 74 days to sell a home in the third quarter of this year—down from 84 in the second quarter.
There were just two markets where the length of time it took to sell a home did rise, but the increases were minimal. Jefferson County saw an increase of eight days while Mason County rose by two days.
King County remains the only market where it takes less than a month to sell a home.

CONCLUSIONS

This speedometer reflects the state of the region’s housing market using housing inventory, price gains, sales velocities, interest rates, and larger economics factors. For the third quarter of 2015 I have moved the needle a little farther in favor of sellers. Although sales did slow between the second and third quarters, I attribute this to a lack of inventory rather than any other factors. Additionally, interest rates dropped between the second and third quarters, which made buying more favorable.

The persistently low levels of inventory in the region remain a concern. Such an imbalance between supply and demand is unsustainable. When I look at the ratio between listings and pending sales there are some counties with less than two months of inventory, which is troublesome. Any number below four months is certainly considered to be a seller’s market and, in my experience, a prolonged period of time with less than six months of inventory results in an unstable market.

In normal housing market cycles, when such an imbalance exists we could expect home builders to fill in the gap with inventory, but this has not happened thus far. Unless we see a rapid escalation in construction activity, the market will remain remarkably tight well into 2016.

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 over 25 years of professional experience both in the U.S. and U.K.

Living • November 10, 2015

Five Essentials for Your Home Office

by Guest Author

Most people dream of working from home, but ask anyone who does it on a regular basis, and they’ll tell you how hard it can be to stay productive when you work where you live. The most disciplined telecommuters will tell you that you need a structured routine and organization to rise and grind and get into work mode.

Having a designated work space is quite possibly the most important piece to the WFH pie. Even if you live in a small space, you need to find a balance between home and office. People who work from home often have a difficult time separating work hours from their non-work hours because it's so easy to keep at it late into the night. But maintaining a balance and shutting down the computer is important for overall wellbeing. What are some other must-haves for a successful home office? Here are the top five:

Natural Light – Study upon study tells us that natural light is needed to boost productivity and mood. Make sure to set your desk up as close to a window as you can. If being near a window isn’t an option, a natural light lamp is the next best thing. It helps balance your body clock and leaves you feelings rested and refreshed.
To-Do List or Planner – Start each day off by making a to-do list outlining what you need to get done before the end of the work day. Make sure to set a realistic time frame in which all of that should be completed, so you can check each one off the list and feel immense accomplishment once you've completed them all.
Storage – If you have a big enough space, put in a large bookshelf where you can organize everything (think storage boxes). It reduces clutter and looks stylish. Using your walls and cabinetry is the most efficient use of space.
Calendar – Many people tend to rely on digital calendars these days because of their convenience. When all of your devices sync together and pop up with reminders, you never have to worry about missing an appointment. However, many people find that it helps to keep a paper calendar handy too so you can easily view your whole month at a glance.
Space for Inspiration – It doesn't matter what field you work in, having a source of inspiration in your work space is essential. Whether it's a photo of your family, your dream car, or that vacation you've been dying to take, having that inspiration right in front of you provides a constant reminder of why you do what you do.

More • November 6, 2015

Over the Top: What’s the Most Outrageous Feature You Have Seen In a Home?

by Guest Author

It’s not every day you get to tour a $16.5 million dollar mansion. But Wednesday we were lucky enough to be able to crash an invite-only Brokers Open event that drew more than 50 Windermere agents from throughout the greater Seattle area. You’ve heard the saying “fit for a King” but this place really is FIT. FOR. A. KING. Walking through this jaw-dropping 13,610 square-foot masterpiece honestly takes your breath away. If you don’t believe us, check out the pictures.

While we had all of these luxury real estate experts in one spot, we thought we’d ask them what the most opulent feature was that they’d ever seen in a home. When in Rome, right?

It’s probably hard to think of anything else when so much opulence is staring you right in the face. For Patrick Crowthers from Windermere’s Bellevue South office, it was the pool room of the very home we were standing in. “The attention to detail and the time it must’ve taken to mentally create and then execute the fine details,” were what stood out to him. His business partner, Leighsa Francis agreed, “It’s so over the top luxurious, huge, and high quality.” Karl Lindor, one of the agents representing the listing, told us that the mosaic tiles of the pool room were the most over-the-top feature he’d ever seen. Specifically, “the artistic design and the fact that each time you view the mosaics, new colors, new materials, and new creatures appear.” John Kritsonis, Karl’s co-listing agent on the home, was in awe with the Onyx powder room. He said it had “opulent translucency.” We should mention this place boasts exquisite marble, granite, and Onyx gleaming from floor to pillar. And a 300 bottle wine cellar. And Italian fountains. Need we say more?

Ruth Harle, also an agent from the Windermere Bellevue South office, told us about a different pool she had seen that might just be on the same level as the one in this home. She said it was “an outdoor pool with a giant movie screen so you could watch movies and swim at the same time.” Ruth also mentioned another home with an underground shooting range and an equestrian barn converted into a car museum. Not too shabby. Last but not least, Windermere agent Rick Franz said the most outrageous luxury feature he had ever seen was “a house that had its own recreation of a sports club and hair salon. It was very decadent.”

This home may not have a hair salon or underground shooting range, but it has just about anything else you can think of when it comes to luxury amenities and design. Even if you can’t afford the $16.5 million price tag, you can still get a taste of what it might be like to live there by watching this video. As for us, we’d be fine living in the pool room.

More • November 5, 2015

Windermere Foundation Quarterly Report Q3 2015

by Christine Wood

Greeetings from the Windermere Foundation,

Many people in our communities struggle each day to have their most basic needs met. But thanks to contributions from Windermere owners, agents, staff and our community partners, the Windermere Foundation has been able to donate $1,359,000 so far this year to organizations that provide services to low-income and homeless families throughout the Western U.S.

Windermere offices throughout the Western U.S. partner with organizations in their local communities to help with fundraising and support of their programs. One such organization is Tree House in Tacoma, Washington, which welcomes families who need a place to stay while a loved one is in the hospital. Tacoma-based Windermere Professional Partners has been a supporter of Tree House since 2007 when the organization was merely a concept. Since then, they have donated nearly $75,000 through the Windermere Foundation to help make Tree House the incredible organization that it is today. Over the years, the Windermere team has filled the Tree House pantry shelves with non-perishable food. They were also the very first organization to cook a hot meal for the families that stay at Tree House—families like Will and Carmenita. Here is their story:

New parents, Will and Carmenita, are among many of the Tree House guests. They welcomed their baby boy William at 25 weeks, which was extremely premature. Since his birth, baby William has had multiple surgeries to repair a collapsed lung, a brain bleed, and a hernia. He recently received a shunt to help relieve the pressure put on his brain. In the Neonatal Intensive Care Unit at the Tacoma General Hospital, progress is often incremental, with setbacks that could occur at a moment’s notice. It is critical that parents and loved ones stay close by these vulnerable babies. Recognizing the need for families to be near their loved ones in a time of serious illness, MultiCare offers families a place to stay at Tree House. Carmenita and Will have been able to stay at Tree House since William’s birth.

As Carmenita recently expressed, “We’re both very thankful for everything the Tree House has done for us. To be able to be so close and being able to see William whenever we want has meant so much. All of the families and staff have been great; it’s nice to know that we are not alone and that other people do care. The Tree House has really felt like a home away from home for us.”

“We are big fans of Windermere Professional Partners and the Windermere Foundation,” says Cindy Niemi from MultiCare. “As a side note, while they were doing all this for Tree House, they sponsored five of our seven Rock the Foundation events to help with critical care needs at Tacoma General and Allenmore Hospitals.”

Another organization that the Windermere Foundation supports is the Children’s Justice Center (CJC) in Vancouver, Washington, which is one of 600 nationally accredited Children’s Advocacy Centers in the U.S. that provide a safe and supportive place for child victims of crime and their non-offending family members. The center’s multidisciplinary professional team comes together from across a network of both public and private agencies to provide a comprehensive and skillful response that includes safety, justice, healing and support for child crime victims.

The Windermere Stellar offices in Vancouver have supported the Children’s Justice Center over the years by hosting an annual auction on their behalf. From 2012 through 2014, they have raised and donated a total of $163,300. At this year’s auction in October, they raised an estimated $125,000 which will help the CJC multidisciplinary team provide more for the children they serve. The monies raised will help fund an expansion of the center’s family outreach and support program.

“I am very impressed with the talent, heart and professionalism of our local Windermere group. Over the years, it shows how well they have done to improve their fundraising. They are a winning team for sure.” ~ Mary Blanchette, E.D., Children’s Justice Center

These are just a couple of examples of how Windermere offices donate their time and money through the Windermere Foundation to support local non-profit organizations in their community. If you’d like to help us continue to support these and other programs, please click on the Donate button.

Thank you to everyone who supports the Windermere Foundation. Your generosity is truly making a difference in the lives of many families in our local communities.

To learn more about the Windermere Foundation, visit http://www.windermere.com/foundation

Best,

Christine Wood

Executive Director

Windermere Foundation

More • November 2, 2015

November Maintenance Guide

by Guest Author

This article originally appeared on Porch.com

Written by Anne Reagan

November is full of autumnal celebrations, falling leaves and changing weather. For some regions, snow might already falling and winter wind storms threatening to knock out power. This is the right time of year to keep preparing your home for winter like purchasing snow supplies, testing your generator and keeping the gutters clear of leaves. Be sure to keep your home safe this fall by keeping up with your weekend projects and to-dos.

Inside the home

Call and schedule a plumber: The day after Thanksgiving is the busiest day for plumbers due to garbage disposal issues, clogged drains, dishwasher problems and toilet troubles. Do yourself a favor and schedule a plumber to come in and fix issues prior to the busy holiday.

Clean dryer vents and duct system: Thoroughly blowing out the dryer duct system is important to help make your appliance function better as well as reduce the risk of dryer fires. The incidences of this type of fire increases in the winter months so get this task done this month.

Test smoke alarms: Thanksgiving turkey dinners and distraction from entertaining guests mean more accidental cooking fires. Add to this the assortment of unattended candles and fires in the fireplace and you have a recipe for danger. Stock up on fire extinguishers and check the batteries in your alarms.

Get winter storm ready: November wind storms can easily knock out power. Check and replace the batteries in your flashlights and place them in easy-to-find areas of the home and service your backup generator system. While you’re at it, stock up on extra water and canned goods just in case.

Call and schedule a heating service pro: Make sure your heating unit is in good working order and change the filters every 3 months.

Add appropriate leftovers to the compost bin: Big meal preparations can often lead to valuable compost material. Check our composting tips here.

Outside the home

Purchase snow removal equipment: This is a great month to stock up on de-icers, shovels and other snow and ice equipment. If you regularly use a snow blower, be sure you have it serviced before the snow falls.

Call and schedule a gutter cleaner: November brings downed leaves, needles and branches which can quickly clog your gutters and downspouts. Protect your roof and foundation by having clear gutter drains. And make sure you use common sense when climbing your ladder – hire a pro if you can’t do this yourself.

Stock up on firewood: If your home has a wood-burning fireplace, make sure you have plenty of seasoned wood. Seasoned wood is wood that has been dry for at least a year. Unseasoned wood can produce more smoke or creosote buildup within the chimney.See our video about how to build the best fire in just 60 seconds.

Keep lawn clear of leaves: Continue to rake leaves and remove heavy, fallen branches off of the lawn this month as wet leaves can suffocate the grass blades. Rake leaves and compost them or use them as mulch around shrubs and bushes in the yard.

Porch.com is the free home network that connects homeowners and renters with the right home service professionals.

Buying • October 29, 2015

A New Listing, To Die For

by Windermere Staff

If you dream of a home with character, do we have a gem for you! This new-to-market charmer is located in an isolated part of town and has a view to die for. The dead silent surroundings will give you all the privacy you need. Six bedrooms is ample space for a growing family, or plenty of room for unexpected house guests. If you happen to live alone, don’t worry, there have been reports of voices in the night, so there’s always someone to talk to.

Recent upgrades include a new roof, although further soundproofing may be needed to contain the occasional screams and clanging chains. This home comes with a full arsenal of security provisions, including trap doors, secret passageways, and a soundproof panic room. If you love to cook, the kitchen comes equipped with its own walk in freezer and meat hooks for artisan style butchery. Bone-appetite! Don’t worry about furnishing this period home, all the furniture is included, as the family that lived here before could not take their possessions to the next world. The grounds are extensive and include an ancient burial ground.

Consult your closest medium to schedule an appointment. Act fast; people are dying to get in this place. Open house on October 31, dusk to dawn.

#HappyHalloween

More • October 26, 2015

5 Things to Consider if You’re Behind on Your Mortgage

by Guest Author

Financial setbacks like the loss of a job or large medical bills can make it tough to make ends meet. If you find yourself behind on your mortgage payments, it helps to be proactive. It’s also good to know that federal and local agencies, even banks, are working to help those who are behind on their mortgages from going into foreclosure.

If you are behind on your mortgage, here are 5 steps you can take.

1) Call your lender as soon as possible.

As uncomfortable as that call can be, the problem will not go away by avoiding your lender. If you are having trouble making your payments, the sooner you contact your lender, the more options you will have. Some homeowners postpone communicating with their lender for so long, that foreclosure becomes the only option. Don’t let that happen to you.

2) Talk to a housing counselor.

The U.S. Department of Housing and Urban Development (HUD) has a list of approved nonprofit housing counselors, who will provide free counseling for homeowners who are behind on their mortgages. They’ll go over options and suggest next steps. Call HUD at 888-995-4673 or visit the HUD site to find a counselor in your area.

3) See if you can lower your mortgage payment.

You might be able to refinance or do a loan modification to make your monthly payment more affordable. There are a number of programs available depending on your circumstances. A HUD housing counselor or your lender can help you explore your options.

4) Find out if you qualify for a short sale.

A short sale is an alternative to foreclosure when a homeowner needs to sell and can no longer afford to make mortgage payments. The lender agrees to accept less than the amount owed to pay off a loan, rather than going forward with a lengthy and costly foreclosure process.

Although every homeowner’s situation is unique, the basic criteria for qualifying for a short sale are:

You need to sell your home.
You owe more on your mortgage than your home is worth.
You have a personal financial hardship that will prevent you from making future payments. (Examples of hardship include loss of job, divorce, death of a spouse and medical emergency or illness.)

In most instances, a short sale makes more sense than foreclosure. In general, when you want to obtain a loan to purchase a property in the future, more opportunities will be available to you if you do a short sale. Find out more about how short sales work.

5) See if you qualify for cash incentives tied to a short sale.

Several programs offer cash incentives to homeowners to do a short sale in order to avoid foreclosure.

The federal government’s Home Affordable Foreclosure Alternatives (HAFA) program might provide $3,000 in relocation assistance to homeowners who do short sales.

Lenders, including Chase and Bank of America, have paid significant cash incentives to encourage sellers to do a short sale and avoid foreclosure. In the past few months, we have had homeowners receive checks from their lender at closing in amounts that range up to $35,000. And these large incentives are not restricted to owners of high-end properties. The owner of a short sale property that recently sold for $164,000 received a check for $25,000. The checks are given for relocation assistance and can be used however the homeowner sees fit. There are no restrictions.

It’s important to note that the seller incentive is determined by the investor, so not every lender is paying incentives. However, if you are considering a short sale, it’s a good time to find out if you qualify.

Richard Eastern is a Windermere broker in Bellevue, WA and co-founder of Washington Property Solutions, a short sales negotiating company. Since 2003 he has helped more than 700 homeowners sell their homes. A Bellevue native and a University of Washington grad, Richard is an avid sports fan and a devoted Little League and basketball coach. You can learn more about Richard here or atwww.washortsales.com.

Living • October 22, 2015

Get Extra Cozy This Fall

by Guest Author

It’s almost that time of year again; time for cuddles and hot cocoa by the fireplace. It’s also almost time to debate whether to trade in the heels and cocktails on a chilly Friday night for Netflix in bed. We’re going to make that decision a piece of cake for you. Plot twist: sweaters aren’t just for humans *gasp* they’re also for beds. Go get a cable knit blanket and let your lovely bed revel in the sweater weather with you. Next, definitely invest in a real down comforter because it really is that much better than a featherless comforter. You’ll feel even more luxurious than you already do if you skip the top sheet and go European style.

Once you’ve got the basics down, add a super fluffy rug right next to your bed so your feet have something soft to land on each morning. It’ll be like walking on clouds, which is a much nicer wake-up call than a cold floor. Next: lighting. No one feels über comfy if they’re being blinded by their bright overhead flight, so go out and find a pleasant lamp to put on your bedside table. If you’re into a fairy tale feel, you must string lights above your bed to add a twinkle of magic. Last but not least, pillows, pillows, pillows. Some say you shouldn’t do more than two on each side, we say the more the merrier. And just like that, voila; you’re very own Wonderland.

More • October 9, 2015

#YourStoryIsOurStory: The Best is Yet to Come

by Windermere Staff

When Patrick and Kat went to close on their first home together, he had a surprise up his sleeve. Patrick had enlisted the help of their Windermere Real Estate agent, Becky Ruark, to help him propose! Now they’re making their house a home with their newest addition. #YourStoryIsOurStory

Throughout the year we will be posting some of our favorite #YourStoryIsOurStory videos, photos, and blog posts. Please take a minute to share your experiences, and follow #YourStoryIsOurStory on our blog, Facebook, Twitter, Instagram, YouTube, and Pinterest pages.