Commute Times, Price Premiums: The Value of Location, Location, Location

Flickr Photo/SounderBruce (CC BY SA 2.0)/http://flic.kr/p/MzGznr
It is the time of year when I like to re-cap the price premiums in our area based on commute times. The price divide continued in 2017 between key market areas in the Greater Seattle area based on proximity to major job centers. These pricing premiums have cemented the drive-to-qualify market. Seattle proper has always been more expensive than its neighboring suburbs, but the most current prices illustrate the extreme value of a shorter commute.

In 2017, the average sales price for a single-family residential home in the Seattle Metro area was $801,000, up 14% from the year prior! In south Snohomish County (Everett to the King County line) the average sales price for a single-family residential home in 2017 was $543,000, up 12% from the year prior, however 48% less expensive than Seattle Metro.

Further, if you jump across Lake Washington to the Eastside, the average sales price in 2017 for a single-family residential home was $1,049,000, up 16% from the year prior and 31% more expensive than Seattle Metro! The Eastside has the infrastructure to support their own job centers, making it a second “Seattle”, with the benefit of newer and larger housing stock, which reflects the pricing. Many folks are living and working on the Eastside, or using the 520 toll bridge to jump over to Seattle.

In 2017, closed transactions were up 4% in south Snohomish County despite fewer new listings coming to market, which I think was driven by its affordability compared to Seattle and the Eastside. Snohomish County offers lower prices, larger houses and yards, new construction, lower taxes, strong school district options and longer, yet manageable commute times. Newer transit centers and telecommuting have also opened up doors to King County’s little brother to the north.

Another hot button that has continued to influence pricing is the future expansion of Light Rail and the locations of the planned stations. We have seen home values in these areas sell at a premium as consumers anticipate the shorter commute times the rail will bring. These neighborhoods are experiencing zoning changes now and the additional expansion is being phased in over the course of the next 15 years. There will be more multi-family and commercial development in these areas, creating more density to serve the public using these commuting services. This has created great appeal for homeowners that want to get in on the ease of nearby public transportation, and developers eager to be part of the infrastructure growth. Stations at Northgate, 145th & 185th in Shoreline, Mountlake Terrace and Lynnwood are all slated to open over the next 3-6 years.

No matter which neighborhood you are interested in learning about, in either King or Snohomish County, I am happy to provide a 2017 re-cap of that market. I work in both counties and understand each of their nuances. 2017 was another eventful year in real estate and we are looking for that to continue in 2018. With these strong market prices, we hope to see an increase in inventory levels, providing more options for buyers and allowing price growth to temper to sustainable levels. Check out the article below that touches on Matthew Gardner’s, Windermere’s Chief Economist, 2018 predictions for the national housing market. I attended his local forecast last week and if you’d like a copy of his presentation, outlining what he thinks is in store for our area, please email me. I’d be happy to forward it along and explain his findings. Here’s to a successful 2018!

 

 

You can download a PDF of Matthew’s predictions here.

 

 

 

This past Christmas, my office adopted 26 foster boys, ranging in age from 13-18 years old, and living in group homes managed by Pioneer Human Services. These group homes serve boys who are struggling with emotional, behavioral and/or psychiatric problems that prevent placement in a traditional foster care setting. We purchased gifts, using wish lists from the boys, to help provide a joyful Christmas morning for these teenage boys who might otherwise be overlooked.

The office also raised money for grocery gift cards for families in need (also referred by Pioneer Human Services). Our in-office donations totaled $1,430, and together with a $1,000 match from the Windermere Foundation and a 5% bulk bonus from Safeway, we were able to distribute $2,557.50 in grocery gift cards to 10 local families.

We are also thrilled to report that through our partnership with the Seattle Seahawks, this season we raised a total of $31,800 for YouthCare, an organization that provides critical services for homeless youth. Last year’s season raised $35,000, for a two-year total of $66,800 towards our #tacklehomelessness campaign!

 

 

Do you want to be “In the Know” in your neighborhood? Sign up for a monthly overview of what’s happening in the zip code(s) of your choice. Neighborhood News is a great tool to stay informed about the home values and activity in your own backyard or to study a new market you may be interested in. Click here to sign up on my website.

 

Posted on January 30, 2018 at 10:23 pm
Jill Langer | Category: Buying Homes, Eastside, Economic Forecasts & Trends, Matthew Gardner, Monthly Newsletters, Seattle Metro, Selling Homes, South Snohomish County | Tagged , , , , ,

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