Seattle, WA (PRWEB) December 06, 2012
The Real Estate Marketing Insider released a statement following a report by Realogics Sotheby’s International Realty that the median price and sales volume of luxury condos in downtown Seattle rose sharply this year. REMI also advised real estate professionals to invest in luxury condos in Seattle and other markets that may follow suit.
According to the report, released earlier this week, Seattle is in the midst of what some experts are calling a “gold rush” for high-priced metropolitan condos. Million-dollar home sales and prices are seeing a 10-percent increase from this time in 2011. So far in 2012, 44 condominiums valued at above $1 million have sold, compared with 42 one year ago; the median price of those condos has been $1,550,000, almost $250,000 above the 2011 median price of $1,420,000.
The reasons for these rises are many. As has been the case for months, higher rents and low mortgage rates are being blamed for the rise in sales. And like many metropolitan areas around the country, Seattle is finding its existing inventory unable to feed the skyrocketing demand caused by the economic recovery. Real estate experts are citing dwindling inventory and rising consumer confidence as the two primary factors in the rising sales, and subsequent price hikes. High-rise and other luxury condos are particularly susceptible to these sorts of economic forces, because the turnaround for construction of new property to supplement this inventory can be on the order of years. While the report didn’t provide any exact statistics on Seattle condo inventory, realtors and analysts report that the available property listings are “anemic” and that Seattle is “years away from delivering any new, high-end condominium towers.”
Brokers are also reporting on another trend which may have strong implications for the real estate market: Californians purchasing second homes. Realtors are reporting that Californians are purchasing new condos in the Seattle area, living in them for the summer and traveling back to California for the winter.
The biggest motivation for this new trend? Taxes. California’s Proposition 30 upped the tax burden of California’s wealthiest denizens, driving them to establish a permanent home elsewhere and avoid California’s high tax rates.
So what does all of this mean for realtors? REMI believes that while Seattle is the first market to see condos and luxury high-rise living explode, it won’t be the last. Real estate agents with multi-state portfolios should look into investing in high-rise and luxury condos in major cities to their listings. Realtors just starting out with luxury condos might want to look at markets adjacent to California, where buyers turned off by Proposition 30 might try to establish their homes. REMI suggests Portland, OR; Las Vegas, NV; and Phoenix, AZ as places a realtor might try to break their portfolio into high-rise condos to market to Californian buyers. The realtor’s physical presence doesn’t matter much; thanks to email marketing for real estate it’s easy to conduct business with any buyer from any location. Turn an eye to these kind of properties now, before the price rises begin.
The Real Estate Marketing Insider offered realtors an analysis of Seattle’s latest pricing trend. Realtors in Seattle are reporting a sharp rise in the prices and sales volume of luxury condos, as demand rises and inventory dwindles.
About the Real Estate Marketing Insider: REMI is an online journal that provides real estate professionals with trend analysis, breaking news and tips for marketing. REMI is based in La Jolla, CA.