Luxury Real Estate in King County Kept Buyers Smiling in 2011

Got $3 million and a dream? The luxury housing market in King County was a good place to be in 2011! The average price per square foot, average sale price and number of homes on the market all point to the continuation of a huge buyer’s market in these higher price brackets. While there’s no set definition of what the “luxury” market is ($1 million buys a lot more home in Phoenix than it does in Seattle), for this we’re looking at homes that sold for $3 million or more.

The by-the-numbers list below shows a steady decrease in price per square foot, and on top of that, at the current pace of sales, it would take four years for all those homes to sell. In a balanced market, there would only be 4-6 months of supply.

Redfin Area Manager Febe CudeRedfin area manager Febe Cude works mostly in Mercer Island, Laurelhurst, Ravenna and Queen Anne. She says all the high end inventory we’ve seen lately has given buyers the luxury to pick and choose, but even that segment of the market is unpredictable. “Late last summer, there were more luxury properties on the market than I’d seen in a long time, most of which had been there for months, and some for years, “ she said. “My clients were just narrowing their list down when many of the homes they were considering went pending in the matter of 4-5 weeks. They still found their dream home, but the lesson was learned: It’s definitely still a buyer’s market, but when you see the right home, you need to move quickly.”

Here’s a by-the-numbers breakdown of interesting facts about the 2011 luxury housing market in King County:

  • 48 – Months of supply of luxury homes in King County vs. all homes in King County (4.5 months)
  • 55 – Homes sold for more than $3 million in King County in 2011 (an average of 4.6 per month).
  • 90 – The number of homes currently listed for $3 million or more in King County.
  • 93 – Percent of $3 million+ properties sold in King County that were single-family residences vs. condos. Up from 77% in 2009 and 90% in 2010.
  • $617 – The premium paid per square foot for luxury homes in King County in 2011. The average of all homes sold in King County in 2011 was $174, and for $3 million+ homes, it was $791.
  • $2,087 – Amount per square foot spent to purchase the most expensive home per square foot sold in King County in 2011.
  • 6,050 – The average square footage of homes sold for more than $3 million in King County in 2011.
  • 98112 – The zip code with the most $3 million+ sales in 2011. It includes areas of Broadmoor, Madison Park, Washington Park, Montlake and Capitol Hill. It took the crown from 98004 (Clyde Hill, Yarrow Point, Hunt’s Point, Bellevue), which led in 2009 and 2010.
  • $15,250,000 – The price of the most expensive property sold in King County in 2011. The same property has the most bedrooms (8), most bathrooms (10.25) and most square footage (15,160).
    • http://twitter.com/rbshopping ruediger benedikt

      thank you very much for writing this blog, i very much hope that in 2012 we all can keep enjoy reading it, if you work as an interior designer in the higher range of the market it is really helpfull, keep going and best wishes for 2012
      http://www.ruedigerbenediktshopping.c...

    • Pingback: Economy Exerts “Downward Pressure” on King County Real Estate Prices | The SunBreak

    • http://www.urbancondospaces.com JR | UCS

      Phenomenal post.  The months supply number blows me away.  Great research!  Looking forward to reading more.

    • Jwmuritu

      Luxury Home Buyers Finds Luxury Homes Taking Too Long To
      Sell!

       

      VANCOUVER, Jan 9, 2012 – The Institute for Luxury Home
      Marketing (ILHM) reported this week that luxury homes are now staying on the
      market for an average of 231 days on market (DOM). This is a good estimate of
      how long a luxury house or mansion is going to spend on the market before it is
      finally sold by a real estate agent.

       

      A homeowner thinking of selling a luxury home should be
      aware that they will not be able to sell their property for eight months on the
      average. This has its financial, emotional, mental and physical implications on
      the home seller and it is in the interest of the seller to be aware of what
      this extended period on the market translates into. Every home seller is
      different and their reason for selling their property is always different.

       

      The financial aspect is usually a major player in a decision
      to sell a house. Even after a multi-million dollar luxury property is listed
      for sale with a real estate agent the owner continues with the monthly expenses
      of holding onto the property such as mortgage payments, homeowner’s insurance,
      property taxes, utilities and maintenance costs. Mortgage payments are most
      likely in the tens of thousands per month and property taxes are in thousands.

       

      If the property is going to stay on the market for eight
      months before it is sold it means the owner has to factor in a minimum of one
      to two hundred thousand dollars in holding costs. This is a significant
      financial loss that could put the seller at a higher risk. It is even worse
      today when the home prices in most areas are on a downward trend and it is
      becoming commonplace for a seller to write a check to pay the agent at closing
      because there is not much equity in the property.

       

      Most sellers of luxury homes are relocating and therefore
      need a more effective and satisfying way to sell their property over the slow,
      passive real estate activities in this market right now. When a luxury property
      takes too long on the market its perceived value is damaged.

       

      For those sellers who need to sell their properties quickly
      there is an alternative way to the traditional listing approach. Luxury Home
      Buyers is an affiliate of the Luxury Homes Group a Las Vegas based national
      organization that focuses on buying and selling luxury homes and mansions
      nationally and internationally. “We buy them fair and we sell them fair”, says
      John Muritu, Luxury Home Buyers president. “Our goal is to offer our luxury
      real estate clients the absolute best”.

       

      “Once we come to terms we tap into our virtually unlimited
      private funds that enable us to close the deal in 30 to 90 days. We have a huge
      database of local, national and international buyers in our database that are
      looking for good opportunities to buy a nice luxury home. Most of our buyers
      are transferred executives who are relocating nationally and internationally.
      They are qualified, ready and willing to make a purchase ”, adds John Muritu.

       

      Any luxury home owner that wants to move on fast and sell
      their properties quickly, easily and hassle-free should visit the website http://rw684.realinvestorwebsi
      to learn more and submit a   request.

      John Muritu                                                                                                                                 
                                Luxury
      Home Buyers                                                                  
                                                                   647.547.1957                                                                                                http://rw684.realinvestorwebsi…                                                                                                                    
       

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    • http://www.destination360.com Destination360 Travel Guides

      How low will they go? I'm seeing 1.8m sale in 07' and list price now in 1.2m.

    • http://www.henrythomashomes.co.uk/ Luxury Houses

      I found this is an informative and interesting post. so i think so it is
      very useful and knowledgeable.I agree with most of the issues you said and i am
      waiting for the new posts. Thanks.