Seattle City Buzz

The Seattle Times recently reported that condos in King County has surpassed single family homes in appreciation. Part of the reason is due to a new mentality about condo living, that it’s no longer for people who can’t afford single family homes. As new condos are being built in downtown areas, it’s becoming a lifestyle choice.

In the first six months of this year, condos in King County have appreciated 21.9 percent a square foot compared with the same period in 2005. That’s slightly faster than the 19.7 percent that single-family homes appreciated in the first half of this year.

According to CNNMoney.com, Seattle is a fair value market -

After years of local home markets getting more and more overvalued, the trend has reversed, according to an analyis published this week.

Each quarter, Local Market Monitor, which provides research to the real estate industry, assesses 100 markets, comparing selling prices to “equilibrium” values. Company president Ingo Winzer bases those values on local economic and population growth, construction costs, vacancy rates, household income in the area and interest rates.

Since there’s no significant signs that the market has cooled in Seattle, does this mean prices are where they should be? Hard to believe considering the number of years of double-digit appreciation rates we’ve experienced.

Major League Soccer is coming to Seattle for one day this Summer. Spain’s Real Madrid (Beckham’s team) will play D.C. United at Qwest Field on August 9th.

Real Madrid plays DC United

To some, Seattle’s Alaskan Way Viaduct (elevated portion of Highway 99) is an eye sore, a disaster waiting to happen, an endearing piece of Seattle’s history. Either way, it slices downtown from it’s waterfront limiting access and views. The 2001 6.8 magnitude Nisqually Earthquake damaged the viaduct which has been undergoing continuous repairs to keep it up and functional. And, experts predict the viaduct may collapse during the next major earthquake.

Several proposals are under consideration from burying Highway 99 underground and creating a street level promenade, rebuilding another viaduct, creating a grade-level thoroughfare or just retrofitting it. Costs range from $800 million to $4 billion.

The city’s preference, and the most appealing & expensive, is tunneling Highway 99. This would open up the waterfront skyline and attach the waterfront to downtown. But it is controversial because the area is landfill that’s supported by a retaining sea wall. The proposal calls for rebuilding the sea wall, thus adding to the cost and closing one of the main North/South thoroughfares for 3 years.
But it has an uphill battle. Seattlites voted down the 14-mile monorail after the $1.7 billion price tag ballooned to $11 billion. One wonders, if the city is pitching a $4 billion proposal today, what exactly is the true cost? Though, if implemented, many condos and lofts along the viaduct will see increased values and may even spur new housing developments.

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Got the urge for a little DIY? Some people engage in home-improvement to enhance the functionality and comfort of their living space. Most often than not, improvements increase the home resale value bottom line. Some, however, may not:

Homeowners can find plenty of information on which improvements will help boost the value of their houses. But significantly less attention is paid to what to avoid when remodeling your home. Consider the following seven deadly home-improvement sins before committing to projects that may work against you to lessen your resale value.

Read on- the seven deadly sins of home remuddling

Seattle’s strong housing demand & lack of adequate supply for units under $400,000 has seen a rise in condo conversions. To meet the demand, developers have found it less expensive and more profitable to convert apartments into condos. Some of the conversions this year include:

• Asia
• Harwood
• Epic
• Mezzo
• Residence at 5th Avenue
• Urban Terrace
• Plaza del Sol
• The Morgan
• Onyx
• Cooper Square
• La Toscane
• Maison
• Biscayne
• francisFremont
• Taylor Anne
• Residence at 500 Elliott
• Site 17
• Pacific Rim and more.

The Seattle Times wrote about the other side, the tenants who are being displaced and the inconvienence and cost of moving. For every silver lining (another homeowner) there is a dark cloud (someone being forced to move out of their home). Owners only need provide 90 days notice, and for low-income tenants, $500 toward moving.

Will the real Seattle please stand up.

Recent developments have got me thinking…it seems Seattle is in an identity flux. For generations, Seattle was content being the big fish in the small backwater Northwest pond, overshadowing Portland and Vancouver, BC. Somewhere along the timeline the politicos and business hawks dreamed of the big time. Hey, Seattle had a symphony, ballet, three professional sport teams, Boeing and Microsoft afterall. Grand civic projects were built - a new symphony hall, a sparkling award-winning library, a new city hall and two world-class stadiums. Chicago West? Boston North? New New Amsterdam?

In our not too distant past, politicians envisioned “Cascadia” - a mega metropolitan trifecta consisting of Seattle, Portland and Vancouver with Seattle at the helm.

In the late 1990’s the little city that could got it’s big chance to shine on the world stage. But something went horribly wrong. For a few days in 1999, Seattle became a war zone. Neighbhorhoods were tear gassed, mass rioting ensued, overzealous police beating on the citizens. It was not quite the image leaders wanted to project to the world.

Then, Boeing left. Portland became a model US city and Vancouver is now what Seattle always wanted to be, a gleaming world-class city.

Time heals. The engines of progress are churning again and Seattle is getting another chance. Developers are investing hundreds of millions to revitalize the urban core. But, in the process, are we losing our identity?

Though it’s highly unlikely those 49 proposed high-rise condos will be built, many will, forever changing the landscape and culture. But, who’s skyline is it? By all account, if you listen to the developers and look at the renderings, it’s Vancouver, BC being transplated south of the 49th parallel. The new buzz term being thrown around lately is “Vancouver-style”.

And South Lake Union? Vulcan’s grand plan is to transport Portland’s Pearl District to the shores of Lake Union, street car and all. Should the Sonics skip town, perhaps Mr. Vulcan will transfer his Trailblazers up I-5. Sound Transit’s light-rail & the failed monorail - both modeled after Vancouver’s Skytrain and Portland’s light-rail system.

Welcome to Seacouverland!

Last month the Seattle Animal Shelter held it’s annual Furry 5K Fun Walk & Run at Seward Park. The Furry 5K is the shelter’s principal fundraising event for it’s Help The Animials Fund which covers veterinary services for the shelter’s animals.

This year’s Furry 5K raised $118,400, an increase of $28,000 from last year.

The shelter depends on volunteers. The next volunteer orientation is August 26, 2006 at Seattle Central Community College. Call the shelter at 206-386-PETS to register. Some of the opportunities include:

• Dog walkers (only time shelter dogs get out of the kennel for play & potty)
• Foster Parenting
• 9 Lives - helping sick/injured cats
• Get Fit With Fido - run and hike with shelter dogs
• Matchmaker - assisting visitors at the shelter

Higher prices and higher rates are putting the squeeze on first time homebuyers and Seattle’s housing market is no exception. CNNMoney.com recently profiled this issue and provided some advice as well.

What a difference a year makes when you’re in the market for a new home, especially if you’re a first-time buyer.

Thanks to a combined jump in mortgage interest rates and home prices, a starter home in many areas of the country could cost you several hundred dollars more per month today than if you bought it last year.

Nationwide, median home prices rose at annual rate of more than 10 percent in the first quarter of 2006, according to the National Association of Realtors.

Meanwhile, rates on adjustable rate mortgages, the most common for first-time buyers, are up more than a percentage point.

According the WSU’s Center for Real Estate Research the Housing Affordability Index for King County is 80%. That means the typical family only has 80% of the income to purchase a median-priced home. For 1st time buyers in King County, it’s even lower at 44.7%. Less than 1/2 of 1st time buyers can afford a home in King County. ¹

1 Washington State University - “Washington Home Sales Stabilize While Affordability Sags”.

As Vulcan gears up for it’s residential developments, the South Lake Union street car broke ground today. The $51 million 1.3 mile project will run from the Westin Hotel to the Fred Hutchinson Cancer Research Center on East Lake Union, passing Vulcan’s Veer, Rollin Street, Enso and 2200 projects.The street car is based on Portland’s street car and the South Lake Union development after Portland’s Pearl district.

Unlike other hotly contested transportation projects - the Monorail and Sound Transit’s light rail - the street car is being paid by a private/public partnership. Half of the cost comes from a tax on properties in the area and the other half through regional/federal grants, advertising and sales of city-own land.

Predicitons estimate that South Lake Union will gain 20,000 jobs and 17,000 residents by 2020.

Read full article at Seattle Times.