Aug

1

Our wonderful WaterHaven weather continues, making it still part of the best time to either buy or sell waterfront property. Demand tends to peak in the Spring and continue into the Summer as people think about the outdoor waterfront lifestyle and also families plan for moves during the Summer between school years.

WaterHaven inventory turnover is holding up well and the total number of properties are remaining fairly consistent over the past few months. However, some neighborhoods are getting picked over without much replacement of new listings, so the selection in some areas is getting tight. The importance of proper pricing is also apparent with some properties that have been sitting on the market quite a while now. Fairly priced WaterHavens sell well and quickly.
The general real estate market continues to hum along at a very strong pace, with year-over-year appreciation of 11.5% for the median priced home in King County. The factors that I discussed last month are contributing strongly to this. This upward pressure has helped WaterHavens, in that their prices are relatively more “reasonable” than before and people who had not considered WaterHavens are now doing so. WaterHavens are also moving upwards at a good pace, though not as fast as the median since they tend to have top end price ceiling pressures that exist above a community’s median.

There continues to be a lot of media discussion and focus on the investment potential of waterfront properties and also second homes, which of course only helps power the WaterHaven market. The cover story for Kiplinger Magazine’s August edition featured the above market investment returns attainable from WaterHavens, emphasizing how the investment can be enjoyed while making money on it by buying and selling. The Seattle Times just ran a feature story emphasizing the investment returns people have received on second homes, especially those that are WaterHavens. Recent books such as “How A Second Home Can Be Your Best Investment” are also powering the growing second home phenomenon, which is of course primarily fueled by recent real estate market gains. I always caution my clients to not rely upon the gains of the past 5+ years to continue indefinitely, and make sure that you can absorb both market bumps and rate increases if you use an adjustable rate mortgage. In my opinion, I’d rather have a nicer local WaterHaven so that I could enjoy a waterfront vacation every day, and only then move on to also purchasing a vacation home elsewhere. One higher end mortgage / property is certainly easier to handle than two lesser mortgages at properties located far from each other. But, I’m a big believer that it’s hard to get better than our local waterfront with its wonderful mix of beauty, location, and amenities.

Enjoy a WaterHaven! Our waterfront is the best in the world.

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