There are many things that could attract people to move to Redmond.
Don Zender, vice president and a lending manager at Evergreen Home Loans in Bellevue, said these attractions include good schools, a growing job market (especially in the tech industry), strong neighborhoods, easy access to Seattle as well as to various outdoor activities and features.
This, he said, is one of the reasons the Redmond housing market is currently very healthy, compared to other cities in the United States.
According to smartasset.com — a website that features interactive tools and calculators to help people make big financial decisions — Redmond has the ninth healthiest housing market in the state. Other Eastside cities made the list as well, with Mercer Island, Bellevue and Sammamish coming in at third, seventh and eighth, respectively. Redmond sits at number 391 nationally, according to the website.
Zender said Washington in general has a healthy housing market because jobs are not leaving the state.
“We have jobs coming in,” he said.
More jobs are becoming available in Redmond and the same can be said about housing as evidenced by the continued construction of housing developments, mixed-use buildings and more throughout the city. Zender said the construction shows that the area is bouncing back from the recession as there has been a pause in development when the market downturned.
All of this makes for a hot sellers’ market, Zender said, as home values have been on the rise. He said home values are up 8.8 percent compared to last year and they are projected to increase another 7.5 percent in the next year, as well.
Currently, the median home value in Redmond is $586,000 and the average list price is $745,000.
Zender added that the sellers’ market can also be attributed to a demand that is outgrowing the current supply.
“You are seeing a lot of the younger generation wanting to buy,” he said. “You didn’t see that (5-7 years ago).”
Zender said a number of things can be the cause of this including increasing rent prices (the average in Redmond is about $2,000) and low interest rates.
A recent report put out by John L. Scott Real Estate agreed with the latter, stating that at about 3.9 percent, interest rates are at a historical low.
Zender said there are also a number of state-sponsored or state-subsidized programs buyers can apply for to assist with finances.
“We’re seeing that at all levels of the market right now,” he said.
The John L. Scott report also stated that 2015 has seen the “best start ever for sales activity.”
“Based on cumulative pending home sales in the four county areas (King, Snohomish, Pierce and Kitsap),” the report states, “sales activity in the first five months of 2015 is outpacing the previous record year of 2005. But this time the housing market is built on a strong foundation of qualified buyers.”
Zender offered some advice to both buyers looking to purchase a home as well as sellers putting their homes on the market.
He said buyers should take the time to get pre-approved for a loan ahead of time by a local lender who knows the market. The lender should also have underwriting authority and the ability to move quickly once an offer is made. Zender said buyers should also make sure to get all of their paperwork for an offer in as soon as possible as one piece of property could have anywhere between two and 19 offers. Another way to put yourself in a stronger position when it comes to competing with other offers is being able to close on a transaction fast. He also advised that buyers should work with a local realtor familiar with the market and a mortgage company that is willing to go to bat for you.
For sellers, Zender said one of the first things to do is to get your property in the best position to look its best. This means cleaning any clutter in the yard, garage or elsewhere.
“Your house is on an interview (with potential buyers),” he said.
In addition, Zender advised that sellers should interview one to three realtors or go by referral.
