Madrona Real Estate Market at an All-Time High

Madrona Real EstateThe Madrona real estate market (picture above: Madrona home for sale) like most of Seattle has improved greatly over the last two years.  While the Seattle real estate market has improved, Seattle area homes are still only up to what the real estate prices were in 2006 (with mid-2007 being the peak).  According to the most recent Case-Schiller index, Seattle area prices are just over 160 for the home price index while in the summer of 2007 the home price index was over 192.  Since the index puts prices at the beginning of 2000 at 100, that means the Seattle home values nearly doubled from 2000 to 2007 before the real estate market bubble burst.  Prices in February 2012, saw the post-bubble low with a home price index of 129 before the local real estate values started to recover.

I wrote a blog back in March 2012 about the Madrona real estate market and the flaws of Case-Shiller.  One of the bigger flaws is Case-Shiller defines “Seattle” as King, Snohomish and Pierce counties which does not tell the story about Madrona real estate.  In fact, in a recent Seattle Times article it discussed the strength of Central Seattle’s real estate market and noted that we can say something that no other area in “Seattle” can say:

Central Seattle, which includes Capitol Hill, Washington Park and Madrona, is the only area where the 2013 median price — $619,000 — surpassed the level set during the 2007 housing bubble and saw a new high.

So while Case-Shiller index still shows Seattle prices as below 2007 prices, it does not show that Madrona homes are really selling for more than they ever have.

If you want to know what your house is worth, I am happy to prepare a market analysis for you.  Please feel to reach out to me through my company website: Kristine Losh.

Leschi Real EstatePictured Above: Leschi Home for Sale across from Madrona Park

 

Seattle and Madrona Real Estate Market

Madrona Real Estate In the physical Seattle Times today I read the headline “No End to Slide in Home Prices” and the headline on the same article online says “Seattle-Area Home Prices Fall in January for Sixth Month in a Row”.  The article focuses on Case-Shiller home-price index  which measures home prices in 20 major metropolitan areas including Seattle.  The index shows Seattle real estate to be 130.03 which means that compared to January 2000, home prices are up in the Seattle area 30%.   The reason for the headline though is Case-Shiller got as high as 192.30 in the summer of 2007, thus prices are down overall in the last 5 years.

While prices are down from 2007, I have seen signs of recovery in my day-to-day life as a real estate agent especially in Madrona real estate market and the rest of Seattle.  For example, the median home price in the Seattle city limits were up 3% over the previous year in February.  There are several reasons why today’s headline is not matching what I see or what the Seattle February numbers indicate.  For one, Case-Shiller is lagging in time.  The numbers just released are measuring the Seattle real estate market in January – nearly two months have passed since then.  Another factor, is Case-Shiller measures “Seattle” which they define as King, Snohomish and Pierce counties while the February statistics are from the actual city of Seattle and at the same time I tend to work in the Seattle area with much of my business in Madrona and the surrounding neighborhoods.

Looking at the statistics from the Northwest Multiple Listing Service (NWMLS) more closely one can get an idea what is going on.  For example, in Area 390 which includes Madrona real estate as well the surrounding area, one can compare the first quarter numbers (through March 28th of each year) for single family homes and see the real estate market in 2012 is favorable in many of the key statistics when compared to a year ago:

SOLDS 1Q 2011 1Q 2012
# Transactions 125 113
Average List Price  $     646,756  $     725,303
Average Sales Price  $     605,691  $     689,815
Average Market Time 94 66
Average Square Feet            2,109            2,537
% of List Price 96.01 96.86

The number of sales and the average price per square foot are both down slightly, but on average more expensive and larger homes are selling, homes are selling much faster, and the sales price is closer to the asking price.  All of these indicate to me that the Seattle and Madrona real estate markets are doing better.

Statistics not compiled or published by the Northwest Multiple Listing Service.