Seattle’s condo shortage!
Why are condos a great factor to the housing economy? The ultimate reason is the price entry point for homeownership is more achievable. Studies show that in Seattle, the average condo price was two-thirds the price of the average single-family home on the market in April. Even when considering the condominium homeowner association dues, it’s still a much more reasonable price point. Especially for people looking to buy their first home.
The circumstance is only getting worse since condos are not being built. Senior Research Associate Margaret Morales said, “Seattle had only several condominium projects built over the last five years,” The One88 tower was Bellevue’s first condo project in nearly a decade. And at one point in 2017, there were just 355 condos for sale in King County, compared to nearly 3,500 in 2008.
Even with these clear benefits and outstanding demand for condos. Why do developers still shy away from condo construction? One of the major reasons is due to the Washington state’s Condo Act. Washington state had to basically modify the state condo law due to the insurance costs and the risk of litigation.
In addition to all these factors, there's only so much room to build in Seattle. It's bounded by water and mountains. The city also has strict regulations when it comes to building apartment and condos, and at least 70% of the land mass in the city is zoned for single family homes. Realtor Association and law makers are working to find a way to improve more condo housing in certain area without affecting too much of our current zoning.
For more information on what solutions legislators are working on to address the crisis visit: http://www.nwrealtor.com/2018/06/08/legislators-offer-solutions-to-housing-inventory-crisis/
I would like to take this time to thank and CONGRATULATE my buyers, sellers and investors for the month of MAY.
5/08/2018 Mike and Janet Showalter
5/11/2018 Jared Johnston
5/17/2018 Geoff and Sopia Wallace
5/18/2018 Muhammad and Khushid Islam
5/31/2018 Sam Mark and Maddie O'Brien
5/31/2018 Tina Sourinephoumy
5/31/2018 Zack Pipkin
Happy Home ANNIVERSARY to my seasoned clients for the month of JUNE!
6/28/2012 Jeffrey Ducharme
6/29/2012 James Kendle
6/18/2013 Jason Dempsey
6/21/2013 Emma Buneci and Saul T. Amezcua
6/25/2013 Chao Zhang
6/30/2014 Mark and Teresa Friden
6/15/2015 Jarrell Taurean Nelson and Andrea Amber Hodges
6/23/2015 Sang Ho Lim
6/25/2015 David Jernberg and Christina Ferguson
6/15/2016 Sakhon Hang and Sourn Leng
6/16/2016 Gabriella Hong
6/17/2016 Tom and Shirley Short
6/28/2016 Raymond Chan
6/02/2017 Anders Simmons and Alison Kairis
6/05/2017 Debra Farmer and Robert Kulapaditharom
6/08/2017 Marie Sears and Ethan Hua
6/09/2017 Geoff Kaiser and Jeanne McCarthy
6/23/2017 Cyrus Ednesajjad