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Feb. 12, 2011 - Redmond Home Prices - 2011

Housing in Redmond Washington is one of the most stable markets...in the Country, I expect. It's one of the few basically "suburban" areas with good schools where a lot of people who live there, also work there. At last count, back in 2009, a full 40% of the people who lived there, also worked there, and the majority of people had a 25 minute or less commute time to work, with many in the 15 minute or less range. 

2001- 570 homes sold at a median home price of $330,000

Most recent 12 months - 414 sold at a median price of $549,000

Important to note that 170 of those 414 homes were built in 2000 or later. Redmond is one of the few places "close in" where there was, and still is, significant land available to build communities of new homes. Mostly out on what we call "Education Hill". Of course many of those homes are also larger.

Let's see how much that newer construction impacts median home prices by looking at built prior to 1990.

2001 - 416 of 570 homes were built prior to 1990 with a median price of $293,000

Most recent 12 months - 236 of 414 homes built prior to 1990 - $420,000.

2nd quarter 2007 - $565,000 for homes built prior to 1990

1st Quarter 2005 - $390,000

2nd Quarter 2005 - $425,000

What does this tell us?

At Face Value it looks like Redmond Home Prices are UP 66% from $300,000 in 2001 to the current median of $549,000.

If you pull out homes built in 1990 or later, and compare Apples to Apples, the change is $293,000 to $420,000, that 66% price increase drops to 42% and home prices are at 2nd Quarter 2005 levels, as is what I would expect.

Why is this important? Because you can see when a person bought their home, and what they paid for it. Let's say you are making an offer on a house built in 1985 that the owner bought for $350,000 in 2001. If you apply the 66% increase of overall median price change, you might offer $581,000. But if you take the time to strip out the newer homes that are inflating that "appreciation" %, you would offer no more than $500,000. Big difference!

People often wonder why sellers ask so much more than current home value, and this is the reason why. Sellers will lean to the overall appreciation factor of 66% and buyers SHOULD lean toward the more relevant appreciation factor of 42% for that age of home.

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(Required Disclosure: Stats in this post are not compiled or published by The Northwest Multiple Listing Service.)

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Feb. 16, 2011 - RE: Redmond Home Prices - 2011

Posted by Arrow Creek Homes

Ardell,

This is golden tip for buyers in the Richmond area

"Sellers will lean to the overall appreciation factor of 66% and buyers SHOULD lean toward the more relevant appreciation factor of 42% for that age of home."

This is the first time I've heard this advice for any real estate market.  Kudos for your local economy in seeing positive stats like this in the Great recession.  Jobs matter and inspite of the tough economy your area seems to holding and even fighting back!

 

Awesome post Ardell.

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Jul. 4, 2011 - RE: Redmond Home Prices - 2011

Posted by Joseph - Expert Roofing Los Angeles

In times like we are in now are the moments when the positive drive has to emerge. Without the will to succeed, it will be harder to stay on ground. Keep the high spirits and hopefully many would do the same.

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ARDELL DellaLoggia of Sound Realty on Seattle Real Estate process and market including Kirkland, Bellevue, Redmond, Green Lake and most areas around the top of Lake Washington North of Downtown Seattle. Phone: 206-910-1000 - Mailto:ARDELLd@gmail.com

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