The number one question I get from everyone is, "How's the real estate market?" Our local Issaquah Highlands newspaper, The Connections, recently interviewed me, and here's everything you need to know about how things are going so far in 2023!
Supply & Demand:
1. How has the housing market in Issaquah Highlands changed in the last year? How do you expect the market to evolve in the coming months?
The real estate market in Issaquah Highlands is always changing. In Q1 2022 the market peaked but started to change right after Spring Break. By June interest rates and inflation coupled with a volatile stock market caused our real estate market to come to a complete standstill. From July-December, values dropped about 20% and in some cases, it was more than 20%. Right now our market is stable and rebounding. We are even seeing multiple offers due to low inventory.
2. What is the average time it takes for a home to sell in Issaquah Highlands? What is the average inventory of homes for sale? Issaquah Highlands is a unique and complex market so calculating averages can be a slippery slope! We have condos in the $300k range all the way up to 5 Million dollar homes in one single neighborhood. If a home is priced correctly, looks great, has a good layout, and is listed at the right time a seller should expect an offer in no more than 21 days. Certain products like a single-family home under $1.5m usually sell in 4 days or less.
3. Are there any areas or neighborhoods in Issaquah Highlands that are currently seeing more activity than others? Are there any specific types of properties that are in higher demand at the moment? The hottest properties in Issaquah Highlands are single-family homes with 4 bedrooms all on the top level, an open layout on the main floor, with an attached garage. People also love Dahlia Park for its charm, 30th Ave and Harrison for Views, and Forest Ridge because it’s so close to I90, restaurants, and Regal Cinemas!
4. Are there any specific factors that are affecting the housing market in Issaquah Highlands, such as job growth or population growth?
There are a few key factors that affect home values.
1. Employment
2. Interest rates and
3. Supply
Right now the lack of supply is overpowering the forces of employment and higher interest rates. It’s absolutely fascinating to watch! We had the biggest refi boom in history and people are sitting back enjoying their low payments and for many, it doesn’t make sense to move. Therefore, our inventory is the lowest I’ve ever seen for a spring market. Low supply plus strong demand = increasing home values.
Home Prices:
5. What is the median home price in Issaquah Highlands?
I pulled sold data from the Northwest MLS from January 1, 2023 - current date (May 16, 2023) The Median sales price for all condos, townhomes, and single-family homes combined is $1,190,000. There have been 47 sales YTD.
6. How are interest rates impacting the market?
Interest rates are a factor for many buyers but it's not as big of a factor as one would think. Motivated buyers are accepting of the current rates and understand that they will likely refinance in the future.
How is the current economy impacting sales?
If I watched the news or read the headlines every day I don't think I'd be able to do my job. What people see in the media and what's happening day to day with our real estate market are two entirely different things. While there have been layoffs at Amazon, Microsoft, Meta, T-Mobile & other companies, I find that the big numbers reported are global cutbacks and locally the numbers are relatively small. There are thousands of people waiting to buy homes and as soon as the layoffs subside it's very likely home values will spike.
Buyers & Sellers:
7. What do you think is important for a homebuyer or home seller to know?
One of the most important things to know is your cost of sale and tax implications. We’ve seen values skyrocket since 2020 and every homeowner should consult a CPA to discuss capital gains tax. Buyers need to know that the market is turning for the better and how to navigate an improving market.
8. Are there any challenges that buyers or sellers are facing currently?
Many sellers sabotage themselves by overpricing their homes. Market values are really confusing and it’s so important that you avoid looking at online estimates. A CMA with recent sales from the MLS is the best way to determine the value of a home.
Buyers are totally confused now because the market has switched from being sluggish to pretty hot. This can make it challenging for buyers to feel confident about writing an offer with competitive terms.
9. Is there a better time of year to buy or sell a home?
The best time to buy is usually July-September. The best time to sell is usually March-June. Oddly enough December can be pretty good to sell because inventory goes to zero so there’s practically no competition.
10. What should new homebuyers look for in a home for future resale value? This is a great question! Whenever I help a buyer with a home purchase I ask myself this question - "When they call me in 7 years to sell this home, how easy or difficult will it be to sell this home?"
Here are 10 factors that usually affect appreciation and sellability.
1. Bedroom & bathroom count
2. Layout
3. View
4. Direction of the front door
5. Natural Sunlight
6. Deferred Maintenance
7. Road noise
8. School rating
9. Having outdoor space/backyard
10. Home updates like new kitchen counters, and bathroom updates.
Is there anything else you’d like to add?
If I could add anything it would be to say thank you to everyone for being great neighbors, friends, and clients for the past 15 years. Living here, working here, and raising kids in the community has been bittersweet. Issaquah Highlands has changed so much since I bought my first house in 2007 but the original vision still remains. Issaquah Highlands is a wonderful & vibrant community that was flawlessly planned to last a lifetime. I'm honored to be a part of it!
