Anyone who has spent time in the Seattle area in recent years has likely seen for themselves how much the city has changed. Thanks in large part to the booming economy, growing tech sector, and increasing international appeal, Seattle is no longer a sleepy little city tucked away in the far corner of the United States. With this changing landscape has come an infusion of wealth that has seen the area’s high-net-worth population explode. And with it, so too has the ultra-high-end real estate market.
In order to meet the specialized needs of this burgeoning market, Windermere has launched W Collection, a new ultra-luxury brand specifically designed for homes priced at $3 million and above in Western Washington. OB Jacobi, President of Windermere Real Estate, says that Seattle’s population of “global affluent” is on the rise and they greatly value real estate. The proof is in the numbers.
Over the past five years there has been a significant increase in the number of home sales in the $3 million+ market. In 2011 there were only 45 such sales in King County, while in 2015 there were 131. “Windermere agents represent anywhere from 40-60 percent of the $3 million+ sales in the Seattle area, so we felt we were in the ideal position to build a brand that could provide enhanced marketing support to the growing number of ultra-luxury homes,” said Jacobi.
W Collection is its own standalone brand with a separate website, WByWindermere.com, signage, presentation materials, and specialized advertising opportunities. When developing W Collection, Jacobi said that the goal was to create a sophisticated, yet humble, brand that evokes the understated expression of wealth that is unique to the Pacific Northwest. “Our clients are not largely drawn to the shows of excessive wealth that you see at other companies and in other parts of the country. This is reflected in the W Collection brand,” said Jacobi.
The development of W Collection began a little over a year ago, and according to Jacobi, was a highly collaborative process with Windermere agents playing an integral role in every step, “Over the past 44 years some of Windermere’s best ideas have come from our agents who are totally in tune with the needs of their clients and the shifting demands of the market; W Collection was born from this same agent ingenuity.”
Originally posted in Windermere by Shelley Rossi on November 1, 2016.
Many of my clients have asked me how the presidential election results might impact our housing market and economy. Windermere’s Chief Economist, Matthew Garner, explains his perspective below. As always, reach out to me with any questions – I’m never too busy to help with your real estate needs!
The Trump effect. How will it impact the US economy and housing?
The American people have spoken and they have elected Donald J. Trump as the 45th president of the United States. Change was clearly demanded, and change is what we will have.
The election was a shock for many, especially on the West Coast where we have not been overly affected by the long-term loss in US manufacturing or stagnant wage growth of the past decade. But the votes are in and a new era is ahead of us. So, what does this mean for the housing market?
First and foremost I would say that we should all take a deep breath. In a similar fashion to the UK’s “Brexit”, there will be a “whiplash” effect, as was seen in overnight trading across the globe. However, at least in the US, equity markets have calmed as they start to take a closer look at what a Trump presidency will mean.
On a macro level, I would start by stating that political rhetoric and hyperbole do not necessarily translate into policy. That is the most important message that I want to get across. I consider it highly unlikely that many of the statements regarding trade protectionism will actually go into effect. It will be very important for President Trump to tone down his platform on renegotiating trade agreements and imposing tariffs on China. I also deem it highly unlikely that a 1,000-mile wall will actually get built.
It is crucial that some of the more inflammatory statements that President-Elect Trump has made be toned down or markets will react negatively. However, what is of greater concern to me is that neither candidate really approached questions regarding housing with any granularity. There was little-to-no-discussion regarding housing finance reform, so I will be watching this topic very closely over the coming months.
As far as the housing market is concerned, it is really too early to make any definitive comment. That said, Trump ran on a platform of deregulation and this could actually bode well for real estate. It might allow banks the freedom to lend more, which in turn, could further energize the market as more buyers may qualify for home loans.
Concerns over rising interest rates may also be overstated. As history tells us, during times of uncertainty we tend to put more money into bonds. If this holds true, then we may see a longer-than-expected period of below-average rates. Today’s uptick in bond yields is likely just temporary.
Proposed infrastructure spending could boost employment and wages, which again, would be a positive for housing markets. Furthermore, easing land use regulations has the potential to begin addressing the problem of housing affordability across many of our nation’s housing markets – specifically on the West Coast.
Economies do not like uncertainty. In the near-term we may see a temporary lull in the US economy, as well as the housing market, as we analyze what a Trump presidency really means. But at the present time, I do not see any substantive cause for panic in the housing sector.
We are a resilient nation, and as long as we continue to have checks-and balances, I have confidence that we will endure any period of uncertainty and come out stronger.
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.
White house photo credit to GlynLowe.com – see license.
2015 was another year for rising home prices in the greater Seattle area. Home prices have clearly recovered in King County – with the median home price surpassing pre-recession levels. A major contributing factor to these rising home prices is depleted inventory – King County dropped to less than one month of supply (a "balanced market" is considered 4-6 months of housing supply).
The map below shows the median price increase by area in the Seattle and Eastside markets. West Bellevue had the greatest price appreciation at 22.7% – which is also significant as the average sale price in 2015 was over $2,000,000. Top rated schools, attractive neighborhoods and proximity to downtown Bellevue and Seattle drew luxury home buyers both locally and from overseas, especially China, to this coveted community. Not surprisingly, areas further away from the city cores, such as Juanita and Redmond, did not experience as much price appreciation on the Eastside.
In Seattle, Beacon Hill and Shoreline experienced the greatest median price increases – while Capitol Hill only increased 2.2%. I think the affordability of areas further away from downtown such as Shoreline, Kenmore and Beacon Hill – combined with record low inventory in Seattle – drew buyers to these areas and contributed to the price appreciation there. The average sale price in those areas last year was around $500,000 – whereas the average sale price on Capitol Hill was nearly $900,000.
2015 was Seattle's fourth year of home price increases – putting us in year five of a strong seller's market. Inventory continues to be the biggest problem for buyers and local economists report they see no signs of a housing bubble in our area. Predictions are that 2016 will be another hot year for real estate – however price appreciation is expected to increase less dramatically than last year. If you've ever considered selling, NOW IS THE TIME!