According to the payroll index at PayScale.com, Seattle saw the largest increase in overall salaries in the U.S. this past year.  As reported by the Puget Sound Business Journal, the 3.2% increase in year-over-year wages for the greater Seattle metropolitan area claimed the top growth of the year, followed by Houston, Philadelphia, St. Louis, and Dallas.

Following positive news on Seattle leading a resurgence of new construction in the U.S., continually shrinking inventories of homes for sale, increasing numbers of multiple-offer purchases, and rising prices in some sought-after neighborhoods, there are a plethora of new signs pointing to a healthier economy and real estate market in the Seattle area.

From the PSBJ article:

Despite being beat out by Austin, Texas, earlier this year for technology startup salaries, Seattle saw 3.2 percent overall salary growth, compared to 1.4 percent salary growth nationwide.

This is a significant increase over last year’s PayScale report, which found the region up only 0.7 percent between the first quarters of 2010 and 2011. It’s also a marked improvement over the 2009/2010 index, which showed Seattle salaries dropping by 2 percent.

This year, Seattle was followed by the Houston, Texas, area, with 2.7 percent growth, and Philadelphia with 1.8 percent.

Nationally, salaries in the IT, media and telecommunications industries grew by 1.5 percent. Construction salaries were also up, by 1.8 percent – the most growth the industry has seen since 2009. Food-service salaries, meanwhile, were down.

2011 Award Recipient – Coldwell Banker Residential Real Estate Sales

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

A new law emphasizing the importance of carbon monoxide alarms in Washington homes has created many questions about which real estate transactions it affects.  Here are a few points synopsized from a recent Coldwell Banker Danforth memo to clarify the requirements:

As of April 1, 2012, sellers of OWNER OCCUPIED single family homes, condos and mobile homes must install carbon monoxide alarms prior to closing.   Homes that have electric heatare not exempt.  Homes without attached garages are not exempt.

• Listing brokers (real etate agents) need to let the seller know, at the time of listing, that they will be required to install carbon monoxide alarms.
• Some appraisers are looking for the alarms and calling for them to be installed before closing.  If you’re buying a home, make sure the seller is aware that this is best done prior to the appraisal.  Should the appraiser have to return for reinspection, the buyer may have to pay for the additional inspection.
• Bank Owned properties will not have to comply as the property is vacant.
• Short Sale Sellers that live in the home will have to install the alarms.
• The resale of homes built after January 1, 2011 should not be affected as they should already have the alarms installed.  Building code has required them since that date.

2011 Award Recipient – Coldwell Banker Residential Real Estate Sales

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

In a recently published story by Inman News, research done by Trulia was analyzed to see which major U.S. Metropolitan areas had more affordable homes available for purchase than those available for rent.

Surprisingly, in 98 out of 100 U.S. cities, buying was a better decision than renting.  Low home prices and low interest rates have been contributing to this trend for years, but the recent rise in rent prices in many cities has pushed the rent vs. buy index to new lows in many cities.

California and New York had some of the highest price-to-rent ratios in the country, while most of the lowest  were in Midwest states.   Seattle came in at #81 with a higher-than-average ratio, but still solidly in the category of a city where it’s better to buy than rent.   The two cities not on that list with the highest ratios were San Francisco and Honolulu.

2011 Award Recipient – Coldwell Banker Residential Real Estate Sales

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

NWMLS statistics released recently point to a number of statistics showing a strong resurgence in the real estate market.

• In February, pending home sales increased 27.4% compared to last year
• 20 of 21 counties in the NWMLS service area showed double digit gains
• Lake Forest Park, Central Seattle, and Normandy Park all marked sales gains of over 50%
• Inventory of homes available for sale in the NWMLS territory is down 22.5%
• Inventory in King County is down 32.3% and in Snohomis County is down 38.2% since last year

Rising sales and shrinking inventory can only lead to rising prices in the long-term.  Distressed properties will still drag on the market, but other forces seem to be taking over, and we are just starting the Spring selling market.

2011 Award Recipient – Coldwell Banker Residential Real Estate Sales

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

In a recent interview with CNBC, Warren Buffett reiterated the inherently valuable investment of single family home purchases in the current market.  The Oracle of Omaha, one of the country’s and the world’s most respected investors, has become bullish on real estate investment in recent times, especially considering the attractive interest rates available.

Speaking with Squawk Box’s Becky Quick, Buffett said that if it were practical to do so, he would buy up “a couple hundred thousand” single family homes.  His reasoning for the investment potential in real estate was based upon the artificially depressed real estate prices in the current economy, and the availability of financing at historically low rates.

2011 Award Recipient – Coldwell Banker Residential Real Estate Sales

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

2011 Award Recipient – Coldwell Banker Residential Real Estate Sales

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

2011 Award Recipient – Coldwell Banker Residential Real Estate Sales

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

Medina’s sole waterfront home sale in February was a late 1960′s home near the tip of Evergreen Point.  The 3,180 square foot home is small for Medina’s standards, but a fairly good-sized home in general with three bedrooms, three baths, and two floors.  The majority of Medina waterfront homes are 4,000 square feet or larger.

The 118 feet of Lake Washington waterfront are the real value feature, with some of Medina’s most-sought after properties near this location.  The home had been on the market for around 1.5 years.

Originally listed for $4.38 million in August of 2010, the home was reduced to $3.68 million in March of 2011 and then relisted at $3.495 million with a new real estate broker in August of last year.  The final sale price represents a 14% discount on the final list price, or a 32% reduction from the time it was originally listed.

Medina Waterfront Homes Sold, February 2012

3516 Evergreen Point Rd, Medina WA 98039

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

The total number of new homes for sale in the U.S. hit its lowest point on record in January, creating a stronger seller’s market for home builders and rising new construction prices.  The lack of construction for the past few years has created a dearth of available new homes in many parts of the country, and most undeveloped and partially-developed land sits stagnant as lending for new construction remains tight.

The inventory of new homes fell to a 5.6 month supply.  At the same time, new home prices increased by 0.3% and new home sales rose 3.5%, as compared to the previous year at this time.  While new households have been created at a consistent rate during the past five years, there has been little construction to compensate, and the market is likely to continue tightening in terms of inventory and rising in terms of prices.

From Realtor Magazine:

“Inventory of new homes on the market shrank to its lowest point on record in January, marking a 5.6-month supply at the current sales pace, the Commerce Department reports.

With fewer homes available, the price of new homes increased slightly last month. The median price for a new home ticked up slightly at 0.3 percent to $217,100, which is the highest level since October.

However, January sales of single-family homes mostly stayed falt in January, falling less than 1 percent last month compared to the previous month. New-home sales reached a seasonally adjusted annual pace of 321,000 units.

New-home sales were up 3.5 percent compared to the same time last year, the Commerce Department reported.

“This is indicative of the incremental, steady progress that the market is making toward recovery in conjunction with modest economic and job growth,” said David Crowe, the National Association of Home Builders’ chief economist. “Increasingly, potential buyers are feeling better about their financial situation and their ability to buy a home, but the challenges posed by tight credit conditions and appraisal issues continue to slow that process.”

Regionally, the Midwest saw the biggest decline in new home sales in January, a 24.5 percent drop in sales followed by a 10.6 percent drop in sales in the West. On the other hand, the Northeast posted an 11.1 percent gain in new home sales in January, and the South saw a 9.3 percent increase.”

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service

Waterfront home sales in Seattle began with an affordable waterfront abode on Lake Union and a luxury waterfront estate on Lake Washington.  With sales in Wallingford and Matthews Beach starting the year off, the outlook is rosy for a continuation of the strengthening market for Seattle waterfront homes that we’ve been seeing for the past few years.

The houseboat sold on Lake Union in January was actually a two-story housebarge, with views of the Seattle skyline from nearly anywhere onboard.  Based in Gasworks Marina just east of the park, the 2 bed, 1 bath floating residence was on the market for two months before selling for $350,000.  Listed at $369,000 originally, the 5% reduction in price was fairly minimal for this market.

In Matthews Beach on Lake Washington, a classic Seattle lakefront home with plenty of modern updates sold for $1.5 million after just one month on the market.  Listed for $1.585 million, this was again a fairly strong purchase price for the sellers at a 5% discount.

This house is situated far off the street and has terraced grounds making their way down to the lake,  The upper level has a swimming pool and viewing area, while the no-bank lot reaches a sandy beach at the lakeside.  The home has 5 beds, 3.5 baths, and 3,240 square feet of living space.  Built originally in 1937, it has been updated throughout but still retains some of its classic character.

Seattle waterfront homes sold, January 2012

2143 N Northlake Wy #58, Seattle WA 98103

8920 Sand Point Wy NE, Seattle WA 98115

Source: NWMLS Data – This information was not compiled or published by the Northwest Multiple Listing Service