King County Real Estate Newsletter
Welcome to the King County Real Estate Newsletter, your monthly source for valuable insights and updates on the dynamic real estate market in our region. Stay informed about market trends, investment opportunities, and practical tips to navigate the world of buying, selling, and investing in King County. Let's explore together and build a stronger real estate community!
APRIL 2023
Issue One
The Washington state Senate approved House Bill 1110, permitting duplexes or fourplexes in most neighborhoods statewide, regardless of local zoning rules that favored single-family homes. The bipartisan 35-14 vote aimed to address the housing crisis, combating escalating home prices and homelessness. Critics argue that local planning and land use decisions should prevail, and the bill would primarily benefit developers without significantly increasing affordable housing supply.
The King County Assessor's Office is refreshing its website to make it more user-friendly and reduce in-person visits, cutting costs by reducing staff and renegotiating contracts with vendors. The office is also implementing new software to streamline operations and reduce errors in the assessment process. Additionally, the office is working with state lawmakers to obtain tax relief for property owners who have experienced a significant decrease in property value due to the COVID-19 pandemic.
A new report suggests Washington State will need over one million homes in the next 20 years to meet the demand of its growing population. The report shows that despite a slowdown in population growth due to the COVID-19 pandemic, the state still needs to build more than 50,000 homes per year to keep up with demand. The report also notes that the state will need to address affordability issues, particularly for low- and middle-income households, and prioritize the use of sustainable building practices to mitigate the impact on the environment.
MAY 2023
Issue Two
The King County Assessor's Office is refreshing its website to make it more user-friendly and reduce in-person visits, cutting costs by reducing staff and renegotiating contracts with vendors. The office is also implementing new software to streamline operations and reduce errors in the assessment process. Additionally, the office is working with state lawmakers to obtain tax relief for property owners who have experienced a significant decrease in property value due to the COVID-19 pandemic.
The Puyallup City Council has passed new regulations for housing providers. The first ordinance will create a business license program for scattered site units, permanent supportive housing, and transitional housing, while the second ordinance will modify where permanent supportive housing, transitional housing, emergency housing, and emergency shelters can be zoned. Most of these types of housing can now be located in residential, commercial, medical, and mixed-use zones. The ordinances were passed to comply with the House Bill 1220, which requires cities to regulate those types of housing consistently and allows for permanent supportive housing, transitional housing, and emergency shelters in more areas.
The Puyallup City Council has passed new regulations for housing providers. The first ordinance will create a business license program for scattered site units, permanent supportive housing, and transitional housing, while the second ordinance will modify where permanent supportive housing, transitional housing, emergency housing, and emergency shelters can be zoned. Most of these types of housing can now be located in residential, commercial, medical, and mixed-use zones. The ordinances were passed to comply with the House Bill 1220, which requires cities to regulate those types of housing consistently and allows for permanent supportive housing, transitional housing, and emergency shelters in more areas.
JUNE 2023
Issue Three
The property valuation process for taxation in King County reveals the continued impact of COVID on 2023 property values. Residential values are declining after reaching record highs in 2022, while commercial office buildings have experienced a 15-20% decrease due to the shift to remote work. Property owners will receive updated value notices, providing a 60-day window for appeals. However, it's important to note that increased property values don't automatically result in tax increases, as tax collection amounts are determined by local taxing districts. The ongoing changes highlight the lasting effects of COVID on the real estate market and emphasize the significance of voter-approved levies in property tax increases.
The U.S. Department of Housing and Urban Development (HUD) is granting $12.5 million to nonprofits and self-help housing organizations to promote homeownership for low-income families. Community Frameworks in Washington state will receive $3.5 million, which they plan to leverage for a total of $5,674,672. These funds will be used to complete a minimum of 113 housing units. The grants are part of HUD's Self-Help Homeownership Opportunity Program, allowing eligible nonprofits to purchase home sites and develop infrastructure for volunteer-based homeownership programs. Homebuyers must contribute their own sweat equity. This program aims to help underserved groups and first-time homeowners achieve homeownership.
Tax credits for energy-saving building products are projected to boost the repair and remodeling sector by $12 billion annually, according to John Burns Research and Consulting. A majority of households are unaware of these tax credits. The anticipated uplift comes from the first significant changes to federal energy efficiency tax credits in over a decade, stimulating demand for remodeling projects that enhance home energy efficiency. Eligible products include heat pumps, water heaters, insulation, windows, skylights, and exterior doors. HVAC expenses are expected to comprise 46% of tax credit spending. The new federal tax credits are available until 2032 and cover various upgrades and clean energy installations.
JULY 2023
Issue Four
Brokers in the Northwest Multiple Listing Service reported the highest number of closed sales in June since September 2022, driven by limited inventory and strong buyer competition. The market had approximately six weeks of supply, with some counties having less than two months of inventory. Active listings were down by about 21% compared to the previous year. Despite the challenges for buyers, new listings increased in June. Prices have risen, especially in the more affordable and mid-price range. Overall, the Northwest housing market remains highly competitive, favoring sellers due to limited supply and rising prices.
The Seattle City Council has passed two bills to streamline the affordable housing development process, aiming to expedite construction amidst the city's homelessness and affordability crisis. The bills allow developers to bypass the design review process, which focuses on the appearance of new buildings, as it contributes to delays and increased costs. The first bill permanently exempts affordable housing from design review, while the second bill offers a temporary exemption to certain projects developed under the Mandatory Housing Affordability program. Although the move has faced some controversy, the council believes it will help address the pressing need for more affordable housing in Seattle.
Shoreline City Council has legalized "cottage housing" in low-density zones, allowing for the development of clusters of modest-sized dwellings around shared outdoor spaces. The new rules provide density bonuses for projects meeting requirements such as green construction, transit access, and affordable housing. These cottage developments will feature shared courtyards, fostering a sense of community among residents. While the city expects these dwellings to be developed for sale rather than rentals, the rules aim to increase affordability. The decision also reduces parking requirements, with one parking space per cottage instead of two for stand-alone houses.
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