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IT’S HERE… Mid-Winter Break
For most of the schools in my area Mid-Winter Break is NEXT WEEK! What are you all doing? We are staying close to home so of course I am loving this article from RedTri.com with fun activities in the area to do in the evenings, just because the kids are off does not mean the parents are. If you don’t have a vacation planned… warm sunshine and sand would be amazing right now… try racing around go-carts, carving the mountain or try indoor sky diving. Yes I said indoor skydiving! I want to hear about this if you do it!
K1 Speed has go cart racing and is open till 10pm during the week. Makes it easy if you are taking the kids after work it will give you a good amount of time to get some racing in. Getting on the track is as easy as walking in, signing the waiver and lining up for your turn. You may want to call ahead just to see how long the wait is.
Check out the night skiing at The Summit at Snoqualmie, if you usually go during the day this is a great new experience for the kids. And the lift ticket prices… are pretty amazing!
iFLY Seattle is pretty amazing, have you been there? You are actually sky diving but you are indoors. I have heard it is a have to try experience. They are open till 9 so there is plenty of time to catch some air!
See the full article from RedTri.com – Bye-Bye Bedtime: Nighttime Activities to Try Over Mid-Winter Break
The Q4 2019 Western WA Gardner Report
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 your Windermere agent.
ECONOMIC OVERVIEW
Employment in Washington State continues to soften; it is currently at an annual growth rate of 1.7%. I believe that is a temporary slowdown and we will see the pace of employment growth improve as we move further into the new year. It’s clear that businesses are continuing to feel the effects of the trade war with China and this is impacting hiring practices. This is, of course, in addition to the issues that Boeing currently faces regarding the 737 MAX. In the fourth quarter of 2019 the state unemployment rate was 4.4%, marginally lower than the 4.5% level of a year ago. My most recent economic forecast suggests that statewide job growth in 2020 will rise 2.2%, with a total of 76,300 new jobs created.
HOME SALES
- There were 18,322 home sales registered during the final quarter of 2019, representing an impressive increase of 4.7% from the same period in 2018.
- Readers may remember that listing activity spiked in the summer of 2018 but could not be sustained, with the average number of listings continuing to fall. Year-over-year, the number of homes for sale in Western Washington dropped 31.7%.
- Compared to the fourth quarter of 2018, sales rose in nine counties and dropped in six. The greatest growth was in Whatcom County. San Juan County had significant declines, but this is a very small market which makes it prone to extreme swings.
- Pending home sales — a barometer for future closings — dropped 31% between the third and fourth quarters of 2019, suggesting that we may well see a dip in the number of closed sales in the first quarter of 2020.
HOME PRICES
- Home price growth in Western Washington spiked during fourth quarter, with average prices 8.3% higher than a year ago. The average sale price in Western Washington was $526,564, 0.7% higher than in the third quarter of 2019.
- It’s worth noting that above-average price growth is happening in markets some distance from the primary job centers. I strongly feel this is due to affordability issues, which are forcing buyers farther out.
- Compared to the same period a year ago, price growth was strongest in San Juan County, where home prices were up 41.7%. Six additional counties also saw double-digit price increases.
- Home prices were higher in every county contained in this report. I expect this trend to continue in 2020, but we may see a softening in the pace of growth in some of the more expensive urban areas.
DAYS ON MARKET
- The average number of days it took to sell a home dropped four days compared to the third quarter of 2019.
- For the second quarter in a row, Thurston County was the tightest market in Western Washington, with homes taking an average of 29 days to sell. In nine counties, the length of time it took to sell a home dropped compared to the same period a year ago. Market time rose in four counties and two were unchanged.
- Across the entire region, it took an average of 47 days to sell a home in the fourth quarter. This was up nine days over the third quarter of this year.
- Market time remains below the long-term average across the region, a trend that will likely continue until we see more inventory come to market — possibly as we move through the 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. The housing market ended the year on a high note, with transactions and prices picking up steam. I believe the uncertainty of 2018 (when we saw significant inventory enter the market) has passed and home buyers are back in the market. Unfortunately, buyers’ desire for more inventory is not being met and I do not see any significant increase in listing activity on the horizon. As such, I have moved the needle more in favor of home sellers. 
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. This post originally appeared on the Windermere.com Blog.
Puget Sound Real Estate: Excise Tax Changes
Thanks to our lending partner Cheryl Gennaios for providing us the great in depth narrative about the NEW 2020 Real Estate Excise tax changes. It still took me a minute to wrap my brain around it….but I think I get it now.
2020 is here, and so are changes to our local tax code. Here’s the highlights:
- We’re moving from a state-wide flat real estate excise tax (REET) of 1.28% to a graduated system.
- STOP TRAFFIC! If the current excise tax is 1.28%, why did my clients just pay 1.78% when they sold their home? That’s because all cities are allowed to levy an additional .25% tax on property sales (REET 1). And cities and counties that are planning under the Growth Management Act are allowed to levy a second quarter percent tax if they want (REET 2). Therefore, King County’s Real Estate Excise Tax in 2019 was 1.28% + .25% + .25% = 1.78%, and not just the 1.28%.
- For the record, counties may also submit a ballot for ANOTHER 1% REET to be used for the acquisition and maintenance of conservation areas. The buyer pays this one though, and the only county that pays this tax is San Juan County (Soooo Oprah just paid $827,500 for conservation of the San Juan Islands natural beauty? YES! Damn, I love her).
- The REET that’s changing is the state level portion. The new rates will be:
- 1.1% on the first $500,000 of the selling price
- 1.28% on the portion of the selling price between $500k and $1.5m
- 2.75% on the portion of the selling price between $1.5m and $3m
- 3% on the portion of the selling price over $3m
- Great! Now that I know the state-level REETs, what’s MY excise tax owed if I decide to sell? Check out your local REET rate HERE
- $600,000 sale price example: 1.1% state REET on the first $500,000 + 1.28% state REET on the remaining $100,000 = blended state REET rate of 1.13% = savings of .15% (or $900) on a $600,000 sale price compared to previous REET rate.
- $3,250,000 sale price example: 1.1% state REET on the first $500,000 + 1.28% state REET on the portion between $500,000 and $1.5m + 2.75% state REET on the portion between $1.5m and $3m + 3% on the last $250,000 = blended state REET rate of 2.063% = additional tax of .783% (or $25,447.50) on a $3.25m sale price compared to previous REET rate.
- So that’s a lot of additional tax revenue on more expensive homes… What does this money go towards anyway?
- State Level: 1.3% of the state tax collected by counties is retained to cover administration costs. Of the net proceeds to the state, 2% goes into the public works assistance account, 4.1% to the education legacy account, with remaining amounts going the general fund.
- City Level: In Seattle (for example), the additional REET 1 and REET 2 funds discussed above go towards: Parks/Trails, Streets/Highways, Sidewalks, Street Lighting, Traffic Signals, Bridges, Water Systems, Sewer Systems, Judicial Facilities, Administrative Facilities, Law Enforcement Facilities, Fire Protection Facilities, Recreational Facilities, Libraries
- I heard there’s a Controlling Interest thing too? What’s that? Under current law, REET is imposed on the transfer or acquisition of a controlling interest (50% or more) in an entity that owned real property in Washington within any 12-month period. The new REET legislation expands the period for measuring whether a controlling interest has been transferred or acquired to 36 months. I don’t understand… Fear Not! Perkins Coie can explain:
- For example, in January 2020, Member A sells her 25% interest in an LLC that owns $10 million of real property in Seattle to Member C for $2.5 million. No REET applies because Member A has not sold 50%+ and Member C has not purchased 50%+ of said LLC. Two years later, Member B sells his 25% interest in the LLC to Member C for $2.5 million. UH OH! Now REET applies because Member C acquired a combined 50% of LLC within a 36-month period (25% from Member A in 2020, and another 25% from Member B in 2022). Members A and B would be liable for $319,050 in REET— 6.39% of the consideration received for their membership interests.
Summary
It now costs slightly less to sell a cheaper home, and quite a bit more to sell an expensive home. But because the REET is marginally dependent on the sale price, and moving up the graduated scale doesn’t change the effective tax rate for the entire sale, sellers will still try to maximize their sale price; which means I don’t see any downward pressure on prices. If anything, higher end list prices could increase ~$20,000 – $30,000 to accommodate the higher excise tax they pay. Sorta like how soda simply got more expensive at McDonalds when we enacted the soda tax.
Local Market Update December 2019
Favorable interest rates and soaring rents boosted activity in the housing market in November. More buyers competing for less inventory kept home prices strong. With the supply of homes far short of demand, sellers can expect well-priced properties to sell quickly this winter.
EASTSIDE
With just over a month of available inventory, demand on Eastside remains very strong. Sales are brisk, with 45% of single-family homes selling in 15 days or less and 20% of homes selling for over list price. The median single-family home price in November rose 2% from a year ago to $900,000 and was unchanged from October.
KING COUNTY
With more buyers vying for fewer homes, King County remains a solid seller’s market. While inventory traditionally shrinks in the winter, this November saw the number of new listings at historic lows. Demand was strong, with the number of closed sales up 12% over the same time last year. The median home price ticked up 3% over the prior year to $661,000 and was unchanged from October. The strong market sent prices higher in the more affordable price ranges, with some areas in South King County seeing double-digit increases.
SEATTLE
Activity in Seattle was very strong in November. The number of closed sales was up 29% over the same time last year. With just over one month of homes available for sale, the city is starved for inventory. Seattle homes prices have ebbed and flowed slightly from month to month for much of this year. The median price of a single-family home sold in November was off 3% from a year ago to $735,000.
SNOHOMISH COUNTY
With an increasing number of buyers driving to affordability, the Snohomish County housing market remains robust. Inventory is very tight and continues to fall. The county finished November with just over one month of supply. The median price of a single-family home rose 5% over a year ago to $495,000. That figure is unchanged from October.
VIEW FULL SNOHOMISH COUNTY REPORT
This post originally appeared on GetTheWReport.com
A Complete Guide to Events this Season
Parentmap has a great Family Fun Calendar, I love this resource! Check out a few events below that I think look really fun and while you are at it check out the amazing Family Fun Calendar that Parentmap provides… it will be your Complete Guide to Events this Season and beyond!
Presented by Evergreen Health & KING 5
Nov 29, 2019 thru Jan 5, 2020*
Make this a holiday tradition, visit Redmond Town Center’s annual Winter Wonderland holiday festival. Shop, dine and enjoy a myriad of magical activities and events. The whole family will enjoy spirited rides on the polar express train and horse carousel. Take a twirl on the synthetic skating rink. Visit Santa’s workshop for photos. Take the younger ones to princess story time. Delight in the magical sounds of the season with talented performances on the STAR 101.5 Community Stage. Spread holiday joy with help from over 125 premier stores, restaurants and entertainment venues. Guests enjoy free parking all season.
Holiday Wreath-Making Workshop
December 7th
Snoqualmie Falls Forest Theater cordially invites you to our annual holiday wreath-making event! A hand-made wreath is a unique holiday gift for friends and family, or to add festive décor this season to your own home. It’s also a fun way to express your personal creativity. Bring creative holiday spirit into your home this winter! Learn how to craft holiday wreaths at Snoqualmie Falls Forest Theater and Family Park’s Holiday Wreath Making Workshop! For more details check out this article on Parentmap.com
December 4th to January 20th
This 23-year old holiday tradition, a signature event of the Bellevue Magic Season, features the region’s largest seasonal ice skating experience, with more than 9,000 square feet of real ice.
The ice surface is covered for all-weather skating, and the rink also treats guests to a heated viewing area, on-site concessions, and a series of special events throughout the holiday season.
The Bellevue Downtown Ice Rink is located at the Downtown Park. Just south of Bellevue Square, it’s a short walk to Downtown Bellevue’s outstanding dining options, premier shopping, and other Bellevue Magic Season events, including Snowflake Lane presented by the Bellevue Collection.
For more information about the event, including admission information and holiday hours, visit the event’s website at www.bellevueicerink.com.
Be Our Guest!
Places to take out of town guests.
When out of town friends and family come to visit you, chances are, they want to see downtown Seattle. And there is no good reason that you should not show them the sights. Things like Pike Market, Post Alley, the Space Needle, and the downtown waterfront are absolutely essential to a Seattle area visit, but they’re not the only things worth seeing. Here are five of my favorites.
Redmond
This place kind of has a little bit of everything going on. From off-leash dog parks to climbing walls, you’ll find wooded trails, open fields, playgrounds and, in the right season, even the Cirque de Soleil. You’ll find a summer concert series and outdoor concerts, soccer, tee-ball and a plethora of other activities depending on the season. Your out of town guests will enjoy the splendor and size of the park, located in such a large metropolitan area. This park really is a gem and makes a great place to spend a day with guests.
Woodinville
Woodinville, just outside of the Eastside, is a hot spot for Washington wineries. With the evergreen state gaining in popularity in the wine world, if your guests love wine even just a little bit, Woodinville is a place you should absolutely take them. While you’ll find many wineries and even tasting tours that showcase the best of them, I absolutely must insist on a visit to Chateau St. Michelle. The grounds are brilliantly stunning, and the tasting room is open daily. This vineyard may just be the most well known in Washington on a national level, so there’s a good chance that your guests have had this wine before, creating a nice familiarity for the experience. With outdoor concerts in the summer and other events year round, this is a great place to take your guests any time of year.
Bellevue
I mention the gardens often. They are just so stunning every month of the year and make a great place to walk and talk with those you don’t get to see often. While each season offers something stunning, I specifically love the gardens during the holiday season when they come to life with holiday lights. It always surprises me how many locals don’t take in the gardens, and I’d encourage you to get out there with your guests and enjoy the beautiful plant life.
Redmond
Pretty much everyone has heard of Microsoft. In fact, you’d be hard pressed to find anyone who hasn’t personally used a Microsoft product. That’s why, for so many, a visit to the Microsoft campus is a must while on the Eastside. The Visitor’s center offers a look into the history and future of the company that reshaped how we all live. Check out the Microsoft store while you’re on campus to get some epic once-in-a-lifetime photos!
Kirkland Waterfront
Located on the scenic Kirkland waterfront, plan on taking your guests on an Argosy cruise. You can sail around Lake Washington year round. This offers scenic views of multi-million dollar homes, the Seattle and the Bellevue skylines, and the longest floating bridge in the world (That’s the 520 if you didn’t know.) Before or after your cruise, check out the shops and restaurants that line the scenic waterfront.
What are your must see or must do items for your out of town guests? What have I missed? Let’s hear it, Eastside! Share your thoughts and best kept secrets with me on social media, just don’t forget to tag me!
Where to Volunteer at Thanksgiving, Christmas and Beyond
Holidays are upon us and there are so many great ways to give back in our communities. I love to participate in the Windermere Bellevue Commons Giving Tree supporting Mary’s Place. My kids and I also participate in the Toys for Tots Program run by the Marine Foundation. My kids and I are planning to volunteer over the holiday season, let me know where your families go and what you do!
Seattle Works.
Search their database of volunteer opportunities. Use the filters for age, populations, and ZIP code-specific activities that best fit your family.
United Way of King County
Searchable database of volunteer activities that enables you to search for family-friendly options.
Volunteer Match
Searchable database allows you to filter based on specific causes, as well as matches that are a good fit for kid and teen volunteers.
Doing Good Together
Compiles lists of family-friendly volunteering opportunities called Big-Hearted Families. Listings aren’t searchable/sortable, but all opportunities are created with families in mind. Age restrictions are included in the listings.
Food Driving Box Northwest
Provides boxes that you keep in your car. Printed right on the box are the most-needed items.
Northwest Harvest
Statewide nonprofit that uses donations to provide more than 2 million meals to Washingtonians every month.
Emergency Feeding Program of Seattle and King County
Works with more than 200 partner agencies across King County to provide food bags to anyone in need, supplying 430,000 meals per year.
Hopelink
Offers food bank, food delivery and emergency feeding services to families in crisis in the following areas: Bellevue, Redmond, Kirkland, Shoreline and Sno-Valley.
Source: https://bit.ly/2qDpyKl
Upcoming Events Around Town
You may have your plate full with holiday prep but you still might want to make time for some of these events scattered over the next several weeks.
Washington Distillers Festival
Does an afternoon filled with handcrafted spirits from distillers throughout Washington sound amazing? Then don’t miss the WA Distillers Festival at McMenamins Anderson School. Bid in a silent auction that includes private distillery tours and tastings, limited edition bottles and overnight stays.
Friday, November 15, 2019 at 6:00 PM – 10:00 PM PST
Free to attend! 21+
$35 plus tax includes 10 tasting tokens
Nov 23 10am-5pm
Shop for food and beverages from 100 “craft food makers” at Gobble Up, organized by Urban Craft Uprising in Hangar 30 at Magnuson Park. Register online for free ticket.
Magnuson Hangar 30 – Seattle
Nov 26-Jan 1
Sheraton Hotel, Seattle – See elaborate displays made mostly of food at the Gingerbread Village at Sheraton Seattle Hotel. The lines can be long on peak days. Free. Hours Vary.
Nov 30 2-8pm
Seattle Design Center
Art Under $100 features 70 artists, free crafts, DJ music, and food trucks at Seattle Design Center. Free unless you pay to go an hour early. VIP Tickets: $25
Dec 6-8
Shop from 22 artists at 6 studios in the Seattle area who make clothing, jewelry, glass, ceramics, prints, and more on Seattle Sampling Artists’ Studio Tour. Free. Hours Vary.
12 K’s of Christmas Fun Run/Walk
Dec 15 4:30-7:30pm – Marina Park, Kirkland
Run/walk through festive Kirkland. Kids can earn a medal by participating in the Kid Dash. All participants of the 12k and 5k will receive a toboggan beanie, a personalized race bib, a finisher medal, and post race snacks! Registration Fee: $15-$55.
Dec 21 9-11:30pm
Waterways Cruises
2441 N Northlake Way
Seattle
‘Tis the season to eat, drink and be ugly! Enjoy festive spirits and appetizers while dancing the night away with live DJ entertainment. The uglier the sweater the more prizes to be won, make it a holiday to remember! Tickets: $62 (10% discount for 6 or more)
Strategies for decorating your home
Whether you have recently purchased a new home or want to update your current avoid spending too much on furniture and decor with these strategies. Provided by Interior Design Experts at First & Main….here are the top 10 things you should consider.
- Prevent Expensive Mistakes: A well designed home requires careful thought and planning.
- Create a color palate for your home: Update a room in 2 hours, and under $50 with a fresh coat of paint.
- Don’t for get blinds and window treatments: Do you really want your neighbors to know that you sleep naked?
- Think traffic patterns and conversation groups: Draw out a floor-plan based on how you actually LIVE in your home.
- Balance, Scale, and Size can make or break any room: Mix shiny with matte, pattern with solids, and always add texture.
- Designer Pet Peve #1: Art should be hung at eye level for maximum enjoyment.
- Focus on focal points: TV or a view, draw their focus then give the eyes a place to rest.
- It’s literally worth every penny: Remodeling a kitchen or bath will always pay off in the end.
- Make every day feel like a staycation: The right bedding can make your room feel like a luxury hotel.
- You should have an interior designer: Having a trained Interior Design Professional who understands that YOUR home should reflect YOUR lifestyle.
First & Main Design Market is a great place to explore and find the perfect pieces for your home at any stage of your home decorating journey. Located in recently refreshed downtown Bothell and offering an eclectic combination of beautiful new designer furniture, unique, one of a kind vintage and reinspired salvage pieces and variety of housewares and gifts. It’s not your typical furniture store — with Interior Designers on staff they can help you choose a piece of furniture and then help finish off the room — paint, accessories, rugs, etc.
Want an excuse to come visit — Join us for our First Thursday events — the first Thursday of every month. Each event offers a different home décor theme or topic — along with wine, snacks and the chance to win prizes and gift certificates to the store.
