SEATTLE AVENUE

My husband Henrik and I bought this sailboat earlier this year, an old Catalina 25 that we’re fixing up. He’s Swedish, I have history in Louisiana, we may name it Swedish Gumbo. It’s looking pretty good and my husband’s teaching me to sail. I grew up with boats so I work the tiller pretty well (do I look cute or what?!) but the lines and sails confuse me. I’m learning to tack now. The last time we went out the thought crossed my mind that real estate in Seattle is a lot like sailing. Both require attention to detail and patience, both are exciting and maddening, both cost a lot of money and licenses, changes happen, and when there’s no wind (or buyers) nothing moves.

Changes in the turbulent sea of financing are creating noticeable wakes that are causing buyers to lose financing and/or not be able to qualify for financing. As lenders require higher qualifications for financing, the elasticized buyer pool as we’ve known it for some time is contracting back to its normal size. Effects are felt by buyers, Realtors, sellers, and every player in the supply chain of a real estate transaction.

It’s a situation for buyers to recognize and come to terms with as lenders become less generous with their loan products. Maybe now they’ll have to consider a smaller home, maybe in a more affordable neighborhood, maybe a townhome or condo instead of a house. Sellers will be wise to pay attention to correct pricing of their property for its location and condition as appraisers value properties with greater scrutiny. Wise Realtors will want to take more care in qualifying buyers and helping them get properly qualified, making sure they have solid pre-approval in writing from a lender and not accepting pre-approval letters from a mortgage broker based on a telephone conversation. Wise Realtors will make sure their listing clients understand the importance of pricing right as well as possible longer market times resulting from smaller numbers of buyers in particular price ranges.

People with higher incomes and healthy downpayments who are buying higher-priced properties will, of course, gracefully fly right over this weather. “Higher-priced properties” in Seattle is a subjective phrase as fixers are selling for over $700,000 in the Central District where I grew up. I’ve invested a lot of space in this newsletter sharing information about current issues relating to homeowners in low and moderate price ranges as this really is the “meat and potatoes” the “heart and soul” of the Seattle my friends and I grew up in and watched evolve into the various neighborhoods we call home today.

For September’s issue I’ll share with you our luxury condo market and issues relating to high-end properties. Do you wonder what kind of condo you can own for $1 or $2 Million? Well, stay tuned for lifestyle properties next month.

As for sailing, next week we’re going to a sailing certification course and stay at Rosario Resort on Orcas Island.

I like sailing with the wind at my back, and this good fortune I wish for you, too.