Urban Development • February 13, 2020

Amazon Ramping Up Employment In Bellevue With Plans To Add Thousands Of New Jobs

by Don Weintraub

Amazon already has a major footprint in the Bellevue, with some 2,000 employees, but the e-commerce giant is continuing to expand its workforce in the city, with plans to create 15,000 new jobs over the next few years.

Amazon has been on a hiring binge nationwide. Founder and Chief Executive Officer Jeff Bezos said the company has created more than 300,000 new jobs over the past decade ― and now employs more than 650,000 people worldwide, including more than 50,000 in Seattle.

Its first office building in Bellevue opened in 2017 and Amazon says it is designing its expanding office presence with an eye toward ensuring easy access to public transportation and minimizing the company’s carbon footprint ― seeking LEED Gold certification or better for its own real estate developments in the city.

“After more than a year of partnership with Bellevue’s urbanists, city planners, and real estate professionals, we are on track to create more than 15,000 new jobs in Bellevue over the next few years,” Amazon says in a blog post on its website.

The company says the buildings housing its fast-growing Bellevue workforce will be located within 0.5 miles of new Sound Transit Link Light Rail station in downtown Bellevue and within 10 minutes walking distance of each other. In addition, employees will be provided with free ORCA passes and also be eligible for company-subsidized ride-share carpool options.

“In Seattle, more than 50% of our employees either walk, bike, or take public transit to work — and over 70% of them use a mode of transportation other than a single occupant vehicle for their commute,” the blog post says. “In Bellevue, we want to build on our green mobility record.”

A version of this article was first published on Seattle Business Magazine by Bill Conroy.

Living • January 31, 2020

Kick-Starting a Kitchen Remodel

by Don Weintraub

content_Windermere_Real_Estate_Blog__-_Kitchen_Remodel.png

Image Source: Canva

Ask a homeowner which room they would most like to improve, and most will point to the kitchen – the starting point for every meal and the heart of the home.

Ask those same people why they don’t move forward with a kitchen remodel, and many will say the project seems so overwhelming they don’t know where to start. If your kitchen needs an upgrade, here are some step-by-step suggestions to get you started.

Gather your thoughts

The steps that follow will all progress much easier if you take time beforehand to form a strong opinion about the desired look and layout of your new kitchen.

Start by reviewing kitchen magazines and photo-heavy kitchen remodeling guides and/or websites. Compiling clippings and printouts in a notebook helps you refine your vision. Clip or print the photos that capture your imagination, add notes, and draw circles and arrows around the things you like most.

Once you have a clearer vision of what you want, search online for better examples and new solutions, if necessary. If you live with a significant other, share your ideas with them and don’t allow yourself to become too committed before getting buy-in from them. Contractors and sales associates will expect a unified front.

Focus on the flow

Another major factor you’ll want to consider is how your new kitchen will be used, and by whom:

Do you want to cook with others?
Do you want family and guests to gather in the space while you cook?
Do you want to serve meals in the kitchen?
Do you want to display your dishware?
Where would you like things stored for maximum efficiency?

Imagine yourself happily cooking and entertaining in your new kitchen, then note the key elements necessary to make those dreams a reality. Having a list of your desired kitchen features and storage needs will help ensure your plan meets your vision.

Determine your budget

According to the annual Remodeling Magazine survey of costs, a “midrange,” “minor” kitchen remodel will cost homeowners living on the West Coast about $23,000. Those same folks can expect to pay about $70,000 for a midrange “major” kitchen remodel. Determine what you can afford before you start work to ensure that your vision is within reach, or to help prioritize what’s most critical.

What to do with the cabinets

Replacing the cabinets is one of the most expensive improvements you can make in a kitchen remodel (typically consuming 20 to 40 percent of the overall budget, according to Architectural Digest).

Consider refacing instead. This can include one of the following: 1) Installing completely new cabinet doors and drawer fronts or 2) installing new wood or laminate veneer over the existing cabinet and drawer fronts or 3) simply refinishing the existing cabinet and drawer fronts.

Shopping for contractors

The contractor you choose will determine much of the cost, the pace of your project, the amount of disruption, the final results, and your level of satisfaction. So be thorough in your search:

Ask friends and family for referrals and advice.
Interview at least three of the leading prospects in-person.
Ask to see samples of past work.
Look for someone who complements your operating style (similar personality and communication style).
Once you’ve narrowed your choice to one or two, ask to speak with a few past clients.

You’ll be tempted to latch onto the first contractor who gets rave reviews from a friend or family member. But remember: You and your project are unique, and it’s worth the time and effort to be rigorous in your search.

Selecting appliances

If you’re planning to replace appliances, here are three factors you’ll want to consider:

Finish – Stainless steel is still the most popular option, but beware: smudges, fingerprints, water spots, and streaks will be obvious. Black stainless steel has a warmer feel and is better at hiding spots.

Extended warranty – According to Consumer Reports, extended warranties are hardly ever worth it because today’s appliances are so reliable. And if something does fail, it’s often less expensive to just pay for the repair.

Unbiased testing and reviews – Before making an appliance purchase, use the information resources available through Consumer Reports.

A final note

Moving walls and extending your home’s foundation are both very expensive options. If your kitchen plans call for these architectural renovations, perhaps you’ve outgrown your home and need something larger (with an already-improved kitchen).

Buying • Market Updates • Selling • January 14, 2020

Our 2020 Real Estate Market is Moving Full Steam Ahead

by Don Weintraub

I cannot go anywhere without someone asking me “……so how is the market”. Well after a nice break with family over the holidays I can tell you with certainty that the real estate “switch” has since been turned back on. Just days into the year and I feel like I need another vacation! That is ok, I am really bad at relaxing anyway and love real estate.

Some takeaways from the early days of 2020:

10+ offers on a Kirkland house last weekend. Many buyers waived all contingencies and the sale price escalated more than 6%. The house was priced correctly, not artificially low. This is not an anomaly and I have talked to other brokers with similar stories the first week of the year.
Today I listed a condo in downtown Bellevue and less than 4 hours many brokers and potential buyers already toured the unit. Two are threatening to make an offer. I expect it to sell in a matter of days.
I showed a client several homes on the Eastside and two of them are pending in 48 hours. Both of them were listed in 2019 and did not sell, but sold immediately in 2020.
I have spoken to more people than usual about their new year’s real estate plans (aka resolutions) in just the first days of the year. Normally it takes a month or two for so many of these conversations to occur.
Interest rates continue to be near record lows and making the national news. There is also good news in the local media about housing and employment.
There continues to be a lot of confidence in our market with such strong growth plans from some of the world’s most admired companies.
Many buyers that have been sitting on the sidelines are jumping in the market. 2019 was the year of the first time buyer…..and the trend in 2020 it will be quite similar.

Price appreciation generally happens in the 1^st Six months of the year and prices are expected to increase ½ to 1% per month in the first Six months of 2020. If the estimates are correct, then:

Buyers should try to buy sooner than later (assuming they find what they want and can comfortably afford the monthly expenses).
Sellers may be able to wait and gain the ½% to 1% per month but there are downsides:

Can life wait to get the 3% to 6% appreciation? If moving locally that seller can still gain appreciation on the next home.
Competition from other sellers will increase as the year goes on. Historically Spring has the most listings.
World events, stock market crash, or interest rate increases can change the real estate market nearly overnight

If you are making any real estate plans for 2020 please consider me as a resource. I always have time for a conversation.

Market Updates • December 18, 2019

2020 Forecast and Upcoming Event!

by Don Weintraub

I attended a market forecast event with famed economist Matthew Gardner where he made some observations and pulled out his “crystal ball”. You may have seen him on CNBC, or even at one of my annual events! I took some notes that I thought you might also find interesting, see below. On February 4^th Matthew will be speaking at my own event in downtown Bellevue on February 4th. Please look for an invitation in January by email.

Building: Building is very, very expensive in our area. Regulatory expenses make up .25 cents of every dollar spent on homebuilding. One example given was a $45,000 city permit. Land, materials, and labor all cost more than ever before. There is a shortage of 340,000 construction workers in the US. Builders struggle to make money building smaller, more affordable homes that so many are looking for. They are generally building luxury homes with more square footage to be able to make a profit. A $300,000 lot in Bothell will need to result in a 1.2+ million house for the builders to have a solid margin.
Interest Rates and quality of mortgages: They are “stupidly cheap” and helping the housing market. Only 5% of all loan originated are ARM (Adjustable Rate). Most buyers are choosing fixed rate products, and guidelines remain very stringent. Buyers are very well qualified and have larger down payments without the creative financing of the early 2000’s that led to the housing crisis. Rates are expected to remain very low in 2020, but may go up slightly. Americans are sitting on a ton of equity in their houses, and not using them as ATM’s like before the last recession. 25% of homeowners have 50% or more equity in their home in the US.
Millennials: Biggest generation, largest workforce, and they are eager to buy more homes. Millennials want to be close to work and not pushed too far out into the suburbs. They want safe locations, amenities, sand quality schools that are “one foot in town and one foot out”. Builders have a challenge in finding ways to add more affordable housing close to the urban centers. Millennials are very well qualified with an average FICO score of 741. Many continue to rent because they cannot find anything they want to purchase. Parents of millennials continue to help with down payments.
Multi-family housing trends: 65% of multi-family construction is apartments, versus condominium. Interest rates are low for developers which makes holding apartments lucrative with our strong workforce and continued growth. Developers need to price new condos over $1,200/ft to make money (concrete and steel high rise). They also face potential warranty litigation and challenges that are obstacles for them after the sale.
Seattle is Smart!: We are “wickedly smart” with the highest percentage of college graduates than any other city in the US.
Tacoma is a hot market: In the past Snohomish County for those seeking an alternative to high-priced King County, but the trend today is moving South. Pierce County is 100k less, on average than Snohomish County. He expects Kitsap County to have future growth if the ferry system improves.
Foreign Buyers: There will continue to be foreign buyers investing in Seattle area real estate but the trend downward continues. In China, for example, only 50k per year can be sent to the US each year. The President of China would like to reduce the limit to just 10k per year. Many find workarounds through Hong Kong and do continue to get large quantities transferred to the US.
2020 Projection: Local housing values are expected to increase about 4% in 2020. The economy expected to expand in the US with about 2% growth. Still very strong, but not as strong as 2019. There is a 30-40% chance of recession in 2020, but if it occurs he expects a modest contraction that will not impact housing (as it is not going to be led by housing – like ten years ago). The housing market is trending back to “normal” This means there is more balance between buyers and sellers.
Seattle area notes: Gardner believes Seattle is the best place to be for a future recession. We are not reliant on Boeing like the 1970’s, but now very diverse with immense growth occurring both in the city and on the Eastside. Seattle has just as many cranes as Los Angeles but is a much smaller city. Amazon is adding as much as 5 million square feet in downtown Bellevue alone. Facebook has big growth occurring both in Seattle and on the Eastside……among others. 50,000 new jobs likely in 2020 around Seattle. Most will be high paying, high tech related. We have full employment and this is expected to continue in 2020.

As always, if you have questions about anything real estate related please consider me as a resource. I am always here to help.

Urban Development • December 18, 2019

Seattle A National Leader In High-rise Apartment Development

by Don Weintraub

Seattle is growing up, literally, when it comes to its housing market, ranking fourth among the 30 largest cities in the country in an assessment of cities with most high-rise apartment complexes built over the past decade, a recent RentCafe study shows.

High-rise apartment buildings represented 9% of all new multifamily development in the city over the past decade, up from 5% in the 1990s, the study found.

“Of the 26 residential high-rises delivered in the last decade, six were skyscrapers (of 40-plus floors),” according to the report by the apartment-search platform RentCafe. “No wonder the average number of floors for all types of apartment buildings in Seattle went from five in the ’90s to eight in the current decade.”

Ranking ahead of Seattle on the high-rise apartment front is New York, with 112 projects developed between 2010 and 2018, followed by Chicago, at 71; and Philadelphia, at 27. Trailing Seattle is Boston, with 24 high-rise apartment developments over the period, followed by Dallas, at 23; and Los Angeles and Houston, with 20 each.

For the purposes of the study, a high-rise is defined as a building with 13 or more floors while a skyscraper is defined as a property with more than 40 floors.

“Seattle witnessed a veritable residential high-rise boom in the last decade,” the RentCafe report says. “The number of completed apartment high-rises [in the city] jumped from three in the ’90s to a significant 26 in the ’10s.”

The trend toward high-rise apartment development in Seattle is likely to continue in the coming decade, as Seattle Business reported earlier this year.

Seattle has seen the number of jobs and people living and working in downtown grow by nearly 40 percent over the past decade, giving rise to a report from the Downtown Seattle Association that contends unless Seattle adjusts its zoning guidelines, the downtown area will have “only a few viable sites for the next development cycle.”

One solution is to expand vertically, rather than horizontally near mass transit stations, allowing mid- and high-rise development projects that create densely populated vertical neighborhoods — mini-downtowns — that combine housing, restaurants, shops and offices.

This past March, the Seattle City Council unanimously approved a controversial plan to rezone for more intensive use, or “upzone,” portions of 27 neighborhoods and several commercial corridors, which encourages denser development and more high-rise buildings.

This was originally posted on Seattle Business Magazine by Bill Conroy

Market Updates • December 16, 2019

Matthew Gardner’s 2020 Mortgage Rate Forecast

by Don Weintraub

Each year Windermere’s Chief Economist, Matthew Gardner, forecasts into the next. Here’s what he expects for Mortgage Rates in 2020.

Living • Urban Development • November 29, 2019

Is the Condominium Lifestyle Right for You?

by Don Weintraub

Image Source: Grand Warszawski via Shutterstock

Condominium homes are a great, low-maintenance choice for a primary residence, second home, or investment property. This alternative to the traditional single-family home has unique issues to consider before buying, as well as unique benefits.

Increasingly, condos are not just for first-time homebuyers looking for a less expensive entry into the housing market. Empty-nesters and retirees are happy to give up mowing the lawn and painting the house. Busy professionals can experience luxury living knowing their home is safe and well-maintained while they are away on business.

If you are considering buying a condominium for a home, here are a few things you should know:

Condominium basics:

With condominiums, you own everything in your unit on your side of the walls. Individual owners hold title to the condominium unit only, not the land beneath the unit. All owners share title to the common areas: the grounds, lobby, halls, parking areas and other amenities. A homeowners’ association (HOA) usually manages the complex and collects a monthly fee from all condominium owners to pay for the operation and maintenance of the property. These fees may include such items as insurance, landscape, and grounds up-keep, pool maintenance, security, and administrative costs.

The owners of the units in a condominium are all automatic members of the condo association. The association is run by a volunteer Board of Directors, who manage the operations and upkeep of the property. A professional management company may also be involved in assisting the board in their decisions. The condo association also administers rules and regulations designed to ensure safety and maintain the value of your investment. Examples include whether or not pets are allowed and the hours of use for condominium facilities, such as pools and work-out rooms. Should a major expense occur, all owners are responsible for paying their fair share of the expense.

The pros and cons of condominium living:

The condominium lifestyle has many benefits, but condominium ownership isn’t for everyone. Whether living in a condominium works for you depends on your current and planned future lifestyle. By necessity, condominium associations have a number of standardized rules. You need to decide whether these regulations work for you or not. Here are some points to keep in mind if you’re considering condominium living.

Convenience: People who love living in condominiums always cite the convenience factor. It’s nice to have someone else take care of landscaping, upkeep, and security. Condominium homes are often located in urban areas where restaurants, groceries, and entertainment are just a short walk away.

Luxury amenities: May condominiums offer an array of amenities that most homeowners couldn’t afford on their own, such as fitness centers, clubhouses, wine cellars, roof-top decks, and swimming pools. Lobbies of upscale condominiums can rival those of four-star hotels, making a great impression on residents.

Privacy: Since you share common walls and floors with other condominium owners, there is less privacy than what you’d expect in a single-family home. While condominiums are built with noise abatement features, you may still occasionally hear your neighbors.

Space: Except for very high-end units, condominiums are generally smaller than single-family homes. That means less storage space and often, smaller rooms. The patios and balconies of individual units are usually much smaller as well.

Autonomy: As a condominium owner, you are required to follow the laws of the associations. That means giving up a certain amount of control and getting involved in the group decision-making process. HOA bylaws vary greatly from property to property, and some people may find certain rules too restrictive.

Things to consider when you decide to buy:

Condominium homes vary from intimate studios to eclectic lofts and luxury penthouses. The right condominium is the one that best fits your lifestyle. Here are a few questions to ask to determine which condominium is right for you.

How will you use it?

Will your condominium be your primary residence? A second home? An investment property? While a studio may be too small for a primary residence, it might be a perfect getaway. Also, consider how your lifestyle may change over the next five to seven years. If you are close to retirement, you may want to have the option of turning a vacation condominium into your permanent home.

What amenities are most important to you?

Amenities vary location to location. Decide what you want, and you can be assured of finding it. Most urban and resort condominiums have an enticing array of extras, from spas to movie screening rooms to tennis courts.

What are your specific needs?

Do you have a pet? Some associations don’t allow them; others have limitations on their size. Most buildings will have a rental cap, so be sure to know what that cap is if you’re buying as an investment. Parking can also be a major issue, especially in dense, urban areas. How many spaces do you get per unit? Do you pay extra if you have more vehicles?

Cost: Condominium homes typically cost less than houses, so they’re a great choice for first-time buyers. However, because condominiums are concentrated in more expensive locations, and sizes are generally smaller than a comparable single-family home, the price per square foot for a condominium is usually higher.

Finally, once you’ve found a property you like, examine the association’s declaration, rules, and bylaws to make sure they fit your needs. The association will provide you with an outline of their monthly fees and exactly what they cover so you can accurately budget your expenses.

Ask to review the association board’s meeting minutes from the past year to get an idea of any issues the association is working on. An analysis of sales demand and property appreciation compared to like units may help ensure that you make the best possible investment.

Buying • Urban Development • November 19, 2019

New Condo Sales to Begin in Downtown Bellevue!

by Don Weintraub

Sales begin at Avenue West in downtown Bellevue on November 23rd! This is one of the most exciting projects to date on the Eastside with 130 units priced between $649,000 and $1,300,000.

Contact Don Weintraub at 425-880-2584 for additional information,
or to set an appointment at the gallery.

www.liveatavenue.com

Market Updates • October 25, 2019

Matthew Gardner Report Q3 2019 Don Weintraub

by Don Weintraub

The following analysis of the Western Washington real estate market is provided by Windermere Real Estate Chief Economist, Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact me.

ECONOMIC OVERVIEW

Washington State employment has softened slightly to an annual growth rate of 2%, which is still a respectable number compared to other West Coast states and the country as a whole. In all, I expect that Washington will continue to add jobs at a reasonable rate though it is clear that businesses are starting to feel the effects of the trade war with China and this is impacting hiring practices. The state unemployment rate was 4.6%, marginally higher than the 4.4% level of a year ago. My most recent economic forecast suggests that statewide job growth in 2019 will rise by 2.2%, with a total of 88,400 new jobs created.

HOME SALES

There were 22,685 home sales during the third quarter of 2019, representing a slight increase of 0.8% from the same period in 2018 and essentially at the same level as in the second quarter.
Listing activity — which rose substantially from the middle of last year — appears to have settled down. This is likely to slow sales as there is less choice in the market.
Compared to the third quarter of 2018, sales rose in five counties, remained static in one, and dropped in nine. The greatest growth was in Skagit and Clallam counties. Jefferson, Kitsap, and Cowlitz counties experienced significant declines.
The average number of homes for sale rose 11% between the second and third quarters. However, inventory is 14% lower than in the same quarter of 2018. In fact, no county contained in this report had more homes for sale in the third quarter than a year ago.

HOME PRICES

Home price growth in Western Washington notched a little higher in the third quarter, with average prices 4.2% higher than a year ago. The average sales price in Western Washington was $523,016. It is worth noting, though, that prices were down 3.3% compared to the second quarter of this year.
Home prices were higher in every county except Island, though the decline there was very small.
When compared to the same period a year ago, price growth was strongest in Grays Harbor County, where home prices were up 22%. San Juan, Jefferson, and Cowlitz counties also saw double-digit price increases.
Affordability issues are driving buyers further out which is resulting in above-average price growth in outlying markets. I expect home prices to continue appreciating as we move through 2020, but the pace of growth will continue to slow.

DAYS ON MARKET

The average number of days it took to sell a home dropped one day when compared to the third quarter of 2018.
Thurston County was the tightest market in Western Washington, with homes taking an average of only 20 days to sell. There were six counties where the length of time it took to sell a home dropped compared to the same period a year ago. Market time rose in six counties, while two counties were unchanged.
Across the entire region, it took an average of 38 days to sell a home in the third quarter. This was down 3 days compared to the second quarter of this year.
Market time remains below the long-term average across the region and this trend is likely to continue until more inventory comes to market, which I do not expect will happen until next spring.

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors. I am leaving the needle in the same position as the first and second quarters, as demand appears to still be strong.

The market continues to benefit from low mortgage rates. The average 30-year fixed rates is currently around 3.6% and is unlikely to rise significantly anytime soon. Even as borrowing costs remain very competitive, it’s clear buyers are not necessarily jumping at any home that comes on the market. Although it’s still a sellers’ market, buyers have become increasingly price-conscious which is reflected in slowing home price growth.

ABOUT MATTHEW GARDNER

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

Urban Development • October 10, 2019

First set of Expedia workers to moving to new headquarters

by Don Weintraub

SEATTLE – The streets of Seattle may become busier Monday as the first wave of Expedia employees are set to move into the travel giant’s new headquarters in the Interbay neighborhood.

Although Expedia will have incentives to get its workers on public transportation, its new campus has a huge parking garage, which could mean some will drive to work and impact the morning’s commute.

Chopper 7 flew over the campus that isn’t finished being built and shows towering cranes and construction workers busy at the 40-acre waterfront site. However, part of the campus will open Monday to its first group of 4,500 employees.

This comes as the travel booking company shifts from Bellevue to its new headquarters in Seattle.

The move has one commuter, Matt Wherrette, bracing for a longer drive into Seattle. It is one he said has improved since the Viaduct closed.

“It used to take about an hour to get six miles,” Wherrette said. “I pass it every day, so, twice a day – It’s going to cause a lot more of a commute headache it sounds like.”

Expedia will pay its employees to hop on the bus, light rail and cover car and vanpooling costs; and that’s on top of shuttle buses from the Eastside.

The city is estimating the new headquarters will add nearly 3,000 daily car trips into the city, which adds concern about congestion on busy streets like Elliott Avenue. That number could grow.

Jason Cannon who lives nearby said, “As long as there’s a willingness to revisit it if things are not going smoothly, then I’m fine with it.”

It is expected to take Expedia several months to move all of its local workers into the new campus with room for the company to bring in more people in the future.

Source: Kiro7

Some takeaways from the early days of 2020:

Price appreciation generally happens in the 1st Six months of the year and prices are expected to increase ½ to 1% per month in the first Six months of 2020. If the estimates are correct, then:

If you are making any real estate plans for 2020 please consider me as a resource. I always have time for a conversation.

Price appreciation generally happens in the 1^st Six months of the year and prices are expected to increase ½ to 1% per month in the first Six months of 2020. If the estimates are correct, then: