Who are they? They are the Echo Boomers or X Gen. They were born between 1982 and 1995. They are between the ages of 10 and 23. They are the children of the Baby Boom crowd. This group of 80 million have never known a time without a computer. They are more tech savvy then any previous generation. Much of their lives revolve around what their parents would consider gadgets, and doodads their grandparents never would have dreamed of. (Fortunately a few did or we would not have them today.)
This group will affect what a house looks like, how it functions, how we build them and how we sell them. In order to serve the Echos a typically older crowd of real estate professionals will have to change how they work, how they meet and how they communicate with their new buyers.
Wired houses....video, audio, security, networking and of course high speed internet. Speaking of high speed, this generation wants quick and constant input. Prompt returned e-mails, updated photos, daily updates on their transactions.
Their consumer pressure and improved electronic communication will decrease the time it takes to buy a home. What is now a 4 to 6 week process will become condensed into a 1 to 3 week transaction. They are more likely to find and choose their Realtor from a web page, because their friend sent them an IM or through a Blog.
The home they choose will have been viewed from every angle without having even visited the house. They will have viewed virtual tours, a photo walk thru and downloaded pictures from space. They will know who bought it, when and for how much via information available on the internet. Their offer will jump from electron to electron over miles of wire as it makes its way between buyer, seller, agents, lenders, appraisers, title and escrow....and these buyers would have it no other way.
Saturday, November 05, 2005
Wednesday, November 02, 2005
If Your Home Is Not Selling, A Rule of Thumb.
Even in a Sellers market you will find that there are some houses that just don't sell. It can be the price, the condition or the terms......bottom line....it always comes back to price. A rule of thumb I've taught my agents for years: > If you are getting no showings, thus no offers you are more than 5% high. > If you are getting showings, but no offers than you are 3 - 5% high. > If you are priced right you will get both showings and offers.
Monday, October 31, 2005
Views of Kitsap County Washington
Just another Northwest morning over Seabeck Bay. This is why people move to this area. Or prices and quality of life are unparalleled.This is Seabeck Bay, part of Hood Canal. Depths of the canal exceed 1000 feet, the result of a glaciers work.
Homes on the water start at $500,000 and go up, homes with views start at $350,000.
The school districts are great. Seabeck is part of the Central Kitsap School District.
Real Estate Statistics
Watching stats like these will help you determine what kind of a market you are in.
For Kitsap County Washington as of 10/31/2005
933 Active Listings
51 Homes went Pending last week
51 Average Days on Market
$273,723 Average List Price
$274,119Average Sale Price
100+% List price to sale price ratio
18.29 weeks of inventory
Learn more about Defining Your Market.
For Kitsap County Washington as of 10/31/2005
933 Active Listings
51 Homes went Pending last week
51 Average Days on Market
$273,723 Average List Price
$274,119Average Sale Price
100+% List price to sale price ratio
18.29 weeks of inventory
Learn more about Defining Your Market.
Sunday, October 30, 2005
Real Estate Bubble Babble
“Bubble babble” is how Matthew Gardner refers to the increasing speculation that the Puget Sound housing market is heading for a drastic downturn. Gardner is a principal in Gardner Johnson, a Seattle-based land use economics firm that monitors Northwest real estate trends. “It’s a bit like Chicken Little,” he says. “You tell bad news to enough people and they may start believing it.” Gardner’s confidence in the strength of the Puget Sound market is fueled by a number of factors:
1) More people are calling the Puget Sound area home
For the past 20 years, the region has seen steady increases in population each year. Those increases have included years of local economic decline. The area has attracted a well-paid, well-educated workforce—a good foundation for economic growth and, therefore, demand for housing.
2) Local job growth is increasingLast year 47,000 new jobs were created in the area. 33,000 new jobs are projected for 2005 and similar numbers are forecast for 2006. It’s interesting to note that even with the negative employment numbers that accompanied the local dot-com bust era of 2000 to 2003, housing prices during those years still experienced significant appreciation.
3) A limited supply of land keeps demand for housing high
The geography of the Puget Sound area, framed by mountains and water, puts natural constraints on the amount of developable land. The Growth Management Act also limits which land can be developed. Both these factors also serve to restrict the speculative development that is flooding other hot markets. The result? A housing market where demand has continued to exceed supply.
4) For an area of its size, the Puget Sound region is still affordable
Home prices here appreciated 12 percent in 2004 and similar increases are expected for this year. While high, those numbers seem modest when compared to 2004 figures that saw home prices in San Diego shoot up 37 percent and Las Vegas prices soar 52 percent. The median price for a home in San Francisco is $630,000, nearly double what it is in Seattle. In fact, Seattle is actually more affordable than Portland. While the median price for a home is greater in Seattle than Portland ($321,000 vs. $223,000), larger average income levels in Seattle offset the difference in home prices.
5) Real estate is not a liquid asset
Unlike stocks, it takes more than a phone call or key stroke to sell a home. Consequently, the real estate market experiences fewer fluctuations than other types of investments.
If not a bubble, what does Gardner see on the horizon? Puget Sound real estate appreciation has outstripped income growth, so he doesn’t believe the current levels can be sustained. This year is on track to see an increase in home prices of about 12 percent. Gardner anticipates similar appreciation in 2006. After that he expects price escalation to slowly taper off and settle into growth of 4–6 percent per year, which he considers part of the natural flow of the real estate market cycle.
His advice? “If you find something you like and can afford, buy it. Whether it’s $200,000 or $2 million, a house is a major purchase. It should be considered a home first and an investment second.”
Though I didn’t write it….it’s still good stuff. This article was in our Windermere Weekly Publication.
1) More people are calling the Puget Sound area home
For the past 20 years, the region has seen steady increases in population each year. Those increases have included years of local economic decline. The area has attracted a well-paid, well-educated workforce—a good foundation for economic growth and, therefore, demand for housing.
2) Local job growth is increasingLast year 47,000 new jobs were created in the area. 33,000 new jobs are projected for 2005 and similar numbers are forecast for 2006. It’s interesting to note that even with the negative employment numbers that accompanied the local dot-com bust era of 2000 to 2003, housing prices during those years still experienced significant appreciation.
3) A limited supply of land keeps demand for housing high
The geography of the Puget Sound area, framed by mountains and water, puts natural constraints on the amount of developable land. The Growth Management Act also limits which land can be developed. Both these factors also serve to restrict the speculative development that is flooding other hot markets. The result? A housing market where demand has continued to exceed supply.
4) For an area of its size, the Puget Sound region is still affordable
Home prices here appreciated 12 percent in 2004 and similar increases are expected for this year. While high, those numbers seem modest when compared to 2004 figures that saw home prices in San Diego shoot up 37 percent and Las Vegas prices soar 52 percent. The median price for a home in San Francisco is $630,000, nearly double what it is in Seattle. In fact, Seattle is actually more affordable than Portland. While the median price for a home is greater in Seattle than Portland ($321,000 vs. $223,000), larger average income levels in Seattle offset the difference in home prices.
5) Real estate is not a liquid asset
Unlike stocks, it takes more than a phone call or key stroke to sell a home. Consequently, the real estate market experiences fewer fluctuations than other types of investments.
If not a bubble, what does Gardner see on the horizon? Puget Sound real estate appreciation has outstripped income growth, so he doesn’t believe the current levels can be sustained. This year is on track to see an increase in home prices of about 12 percent. Gardner anticipates similar appreciation in 2006. After that he expects price escalation to slowly taper off and settle into growth of 4–6 percent per year, which he considers part of the natural flow of the real estate market cycle.
His advice? “If you find something you like and can afford, buy it. Whether it’s $200,000 or $2 million, a house is a major purchase. It should be considered a home first and an investment second.”
Though I didn’t write it….it’s still good stuff. This article was in our Windermere Weekly Publication.
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