Leavenworth Condo Report

Prices for Leavenworth Condos have continued their upward trend in prices despite a glut of new construction condos on the market.

This report is for the first quarter of 2008 and includes Kahler Glen condos as well as Leavenworth projects like Aspen Suites at Icicle Junction, RiverPark Homes in Leavenworth, Alpine Village, SkiView Condos on Titus Road, and The Boulders on Alpensee Strasse.

First quarter sales volume has been fairly consistent the past few years. This year 5 condos sold in the first 3 months, with 3 selling in 2007, 4 in 2006 and 2 in 2005.

The big news which has been mentioned here before is the number of new condos on the market in Leavenworth. 59 units were active on the MLS during the 1st quarter, despite Aspen Suites removing their condos from the MLS.

Prices continue to march upward. In 2005, the average condo was $121,000 and now it has risen to $284,000. Median prices have risen as well to $300,000 for 2008.

As of April 6, there are currently 51 condominiums available on the MLS at an average asking price of $420,000.

I expect that condos zoned for commercial use (and vacation rentals) will continue to sell well, especially those closest in price to the median sales price. Condominiums priced between $250,000 and $350,000 will remain popular, while others may continue to sit.

Other Leavenworth Real Estate Articles and Information

Click Here to read my report on Leavenworth Home Prices

Click Here to Search for Leavenworth Condominiums

Click Here to find the Value of your Leavenworth Condo

Building a Leavenworth Condo Development ?

Own a Kahler Glen Condo ?

Looking to buy a Luxury Condo in Leavenworth ?

Top 5 Ways to Shoot Your Leavenworth Condo Project in the Foot

Top 5 Ways to Shoot Your Leavenworth Condo Project in the Foot

1. Price it high

You are not the first builder or developer to build condos in Leavenworth. Lots of price data exists, the closer you pay attention to that data, the quicker your project will sell. You're right "no one has built 10,000 square foot uber - condos made of gold" in Leavenworth, but that doesn't make it a viable niche.

2. Shun local real estate agents

Real estate agents tend to sell a majority of homes and condominiums. Most serious out of town buyers (and most Leavenworth buyers are from out of the area) are using a real estate agent to help them purchase a home.

Which agents sell homes in Leavenworth? No surprise, agents who work in Leavenworth. Despite 75% or more of the buyers being from the Puget Sound area, only a tiny fraction of homes sold are by out of area agents.

If you choose not to use an agent to list your condos, local agents will not sell them. It's too much work and the tools that could be promoting your condos are promoting someone else's. (MLS and related search engines)

3. Office Exclusive Listing

This is a takeoff on number 2. An "office exclusive" listing is one where a real estate company lists a property but does not cooperate with other brokers or place the listing on the MLS. In the Seattle area this practice is forbidden among members of the NWMLS. It is allowed in Leavenworth.

Again, if your home or condo is not on the MLS, it is INVISIBLE. In fact, if your home is listed with a Seattle area agent, it's also INVISIBLE. Real estate agents and buyers use tools that let them see the most active listings. This tool in Leavenworth is the NCW MLS.

Here's a sad story I have heard about two different projects in Leavenworth. An agent in my office (Windermere in Leavenworth) calls another real estate office (this happened at two different companies) and asked them for more info about a condo project they had. It hadn't started construction yet, but the agent claimed that all were sold out. To date NOT ONE UNIT has closed.

In the other example, an agent called for info and was told that this other project was sold out as well. She suggested that the agent create a waiting list in case some of the transactions happened to fall through. Only 50% of that condo development has sold at this point.

Office exclusives are about greed. Greedy people starve in the end.

4. Location, location, location

Have you heard this before? Downtown Leavenworth is good, close to recreational amenities is good. The real key in Leavenworth is the ability to use the condo as a nightly rental. For the most part, this is a function of location. In Leavenworth, condominiums zoned for Commercial Use can be rented out as vacation rentals, condos zoned for Multi-Family Residential cannot be rented out nightly. At least one project in Leavenworth is going to learn this lesson the hard way.

Two current Leavenworth condo projects made it hard on themselves and lost valuable time on market. They were zoned for Commercial Use, but created covenants (CCRs) that prohibited nightly rentals. This was a big hole to dig out of, and though the CCRs are gone, I think they missed their time in the spotlight. (See number 5.)

5. Hype

Condo buyers are looking for good value, but they are also looking for the hottest coolest thing around. Days on Market probably matter more to condo buyers than other folks buying Leavenworth real estate. If a condo has been on the market for 180 days buyers assume it has problems.

The typical Leavenworth condo project has missed out on the hype that comes with a new project. How did they miss out? Office exclusives, For Sale By Owner, Restrictive Covenants, etc, etc.

New condo projects should have lots of hype. Throw a big party and invite everyone. Make it easy for agents to show and sell your property. Buyers can't get excited if their agents aren't excited.

6. Dismiss the Internet as a Fad

I know the article says top 5 reasons, but I'm all about adding value. Today you get 6.

Over 80% of home buyers use the Internet to search for homes. This number is higher among the affluent. It's also safe to assume that the number is higher than the national average in high tech Seattle and among vacation buyers looking for property 2+ hours from home.

I know you want to spend money on newspaper ads and glossy magazine spreads, but the web sells homes. I know you want an agent to do 8 open houses a week, but the web sells homes.

Build a great website. Use lots of photos, use virtual tours or video, have floor plans and prices available. Use SEO to make sure that you come up on the top of the list for Google and the other search engines. Most projects in town can't be found on the Internet for their own name, much less "Leavenworth Condos" or "Leavenworth Condos For Sale".

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Search Leavenworth Condos for Sale

Leavenworth Real Estate - 2007 Year in Review

Real Estate in Leavenworth in 2007 - in a nutshell, prices up, volume down. (While these numbers might change with an additional last minute recording or two, I think the trends will remain the same.)

I have mentioned it before, but as expected 2007 was the Year of the New Condo for Leavenworth. Notable projects included the condos at Icicle Junction (Aspen Suites), the Boulders at Alpensee Strasse, the River Park Homes (affectionately known as the big yellow building), and Ski View on Titus. All these brand new condos certainly brought the price up for the "average" condo. The average condo price was up 45% to $294,000 from 2006s $201,000.

Perhaps more interesting, is what remains. Only 24 condos sold in Leavenworth in 2007, a mere 4 more than in 2006. 49 condominiums remain on the market with a few more projects slated for 2008. The average condo on the market today is $420,000. Does that market exist in Leavenworth? I'm not sure that it does. Only 3 condos sold above $350,000 last year and none above $400,000.

Single family home prices continued to climb in price, while the number of homes sold slowed. The average sales price was up 18% for homes in Leavenworth. The average price is now $415,000 up from $351,000 for 2006.

But price is not the only story. The number of homes sold is down 23% from the following year. The time on market is longer as well. The average days on market for a home in Leavenworth is now 139 days, up 30 days from 2006 when it only took 109 days. Sellers continue to get approximately 97% of their listing price as the final sales price.

Here's one positive and surprising trend. All the "Price Reduced" signs you see around the neighborhood - not indicative of the market. The average price reduction for single family homes in Leavenworth actually dropped in 2007. In 2006, the average home seller in Leavenworth dropped their price 7.06%, in 2007 that number dropped to 6.8%. This number coupled with raising prices tells me that Leavenworth home owners remain confident about the market, despite gloomy real estate news on a national level.

What will 2008 bring to the Leavenworth real estate market? I think much depends on external forces. What will the U.S. economy do? How will the stock market fare? How will the technology companies like Microsoft, Adobe, and Nintendo do?

I tend to think we will see a slight increase in prices with longer market times and about the same number of homes sold in 2008 as in 2007. (Check back in January 2009 to see if I'm right.)

Leavenworth Condo Update

Leavenworth Condo Update

In an earlier post I called 2007 "The year of the new condo" in Leavenworth. We have seen 5 new projects come on the market this year. River Park Homes, The Boulders, Aspen Suites at Icicle Village, Haus Wunderbar the newest on Titus Road. Condominiums have always been a hot item here in the Bavarian Village, but we probably didn't need so many new condos all at once.

The number of condos listed in Leavenworth so far this year is up 176%! Last year 50 were listed and this year the number is 138.

The number of sales and the sales prices are up considerably, but there is still too much inventory for the market to absorb.

As of today's date 23 Leavenworth condos have sold. That's up 53% from last year. The average price is up to $298,000 up 48% while the median price is up 65% to $325,000. Of course not all condos in town have gone up that dramatically in price, the majority of the price increase is the large numbers of new construction condos that have sold.

The market is slower than many developers might admit. Currently there are only 5 pending sales and 69 active condos on the market. That's a pending ratio of merely 7%. (A hot market would be at least 50%) At least one project has offered deep discounts and I suspect the others would be willing to make some concessions. I think there are some good deals to be had in this market (and some bad deals to avoid.)

Leavenworth Luxury Condos

Luxury Condos in Leavenworth Washington? Yes, it's true.

The condo market has been going strong here for a number of years and 2007 has brought Leavenworth a number of new condominium projects.

For the first time, Leavenworth has condos that meet the upscale needs and desires of the luxury real estate market. Windermere Real Estate in Leavenworth is proud to represent both the Boulders Condominiums on the Wenatchee River and River Park Condominiums overlooking Blackbird Island in downtown Leavenworth.

The Boulders are 6 units on Alpensee Strasse on the East edge of Leavenworth overlooking the Wenatchee River. All units have two bedrooms and two baths and are 1500 square feet in size. They have fantastic 10 foot ceilings, gas fireplaces in the living room and master bedroom. Gorgeous well appointed kitchens and most importantly - great windows and decks for viewing the Wenatchee River. At this time only 3 units are still available. Prices start at $595,000.

The River Park Condos are located in the heart of downtown Leavenworth. Owners and guests can have easy access to all of Leavenworth's festivals - from Oktoberfest to Christmas Lighting, shopping, restaurants and more. Or you can relax and enjoy the huge decks and the expansive views of Wedge Mountain and Tumwater Canyon. All units are two bedrooms and two baths and sizes range from 1096 to 1484 square feet. Prices run from $329,000 to $624,900 New Prices $325,000 to $539,000. All units come with gorgeous granite kitchens and baths, wood floors and private indoor parking. Corner units are larger and include a soaking tub in the master bath. At this time 14 units are still available. Prices have recently been reduced and the seller will consider contributing to closing costs or other incentives. Click here to see more of these luxury condos in downtown Leavenworth.

Click here to schedule a private appointment to view these condos.

Riverfront Lots in Leavenworth

Buying a riverfront lot in Leavenworth or Lake Wenatchee Washington?

Recently I wrote an article about buying a riverfront home in Leavenworth. I talked about the different options such as the Wenatchee River, the Chiwawa River and Icicle Creek. For some people, buying a home on the river doesn't compare to building a custom home on the river.

Building lots in Leavenworth and Lake Wenatchee (Plain) are more expensive every year. This is especially true with riverfront.

In 2006, 15 parcels on the river sold in the Leavenworth area. The average lot sold for $246,000 for a lot under 1.5 acres in size. The median price for a lot was $275,000.

In 2007, through the end of July, 5 riverfront lots have sold. The average price is $307,000 for approximately 1 acre.

Currently, there are 6 active lots on the market with a median price of $385,000. The least expensive is $279,000.

3 lots are under contract (pending) with an average price of $273,000.

I generally tell buyers that they should expect to pay $300,000 for a riverfront lot in today's Leavenworth real estate market. If you are interested in low bank that doesn't flood or a specific location, such as the Icicle River, you probably can expect to pay more. (Lakefront is another story all together - probably double the price.)

With only 6 lots on the market, there really isn't a huge number of choices for the consumer to pick from. The best thing to do is become very familiar with the market and be prepared (emotionally and financially) to move quickly when the right property becomes available.

Click here to search all Leavenworth properties or click here for riverfront properties in Leavenworth. (Unfortunately the second link is only good until September 07 - email me for current listings.)

Leavenworth real estate update

Leavenworth's real estate market seems to be following Westside trends. Home prices continue to climb, but fewer homes are selling according to data comparing the first half of 2006 to the first half of 2007.

Through June 30, 2007 the number of single family homes in the Leavenworth market that have been on the market is up 9% from 2006. Pending sales and # of homes sold are both down 15%. (These numbers exclude condo sales and manufactured homes.)

Sales volume for the first half of the 2007 is up only slightly (5%) over 2006 at $21.8 million dollars.

The continuing rise of prices in the area is probably leading to the slowdown in sales. Average home sales prices are up 25% over last year to $376,000, while median sales prices are up 17% to $305,000.

As of July 30, there are 111 single family homes for sale in Leavenworth at an average price of $518,000. Currently, there are 14 homes pending or under contract with an average price of $467,000.

Anecdotally, I am seeing the same trends I have been seeing for years. Most buyers in Leavenworth are looking for vacation property - this might be a condo in Leavenworth or at Kahler Glen , or maybe a cabin in Ponderosa or at Lake Wenatchee. These buyers are looking for good values between $200,000 and $400,000. They will spend more to be on the water - lakefront properties on Lake Wenatchee or Fish Lake, or Wenatchee riverfront.

The homes that are coming on the market tend to be either homes located in the city of Leavenworth that are very much like "vacation homes" or cabins, or they are priced above the price range that is popular with vacation buyers.

Despite the glut of homes on the market today, there is a dearth of cabins for these vacation buyers to purchase. The numbers make it look like some sort of "bubble" is about to burst. On the contrary, cabins and condos will continue to sell at a healthy clip, and everything else will plod along as it has.

Click here to search for your Leavenworth vacation home

Leavenworth WA real estate - Should you be investing?

Are you curious about investing in the Leavenworth or Lake Wenatchee real estate market? Seems like everyone is interested in real estate investments these days. I see or hear about three types of “investors” most often in our local market. I use the quotes because most of these are “would be” investors who can’t find what they are looking for in the Leavenworth or Lake Wenatchee real estate market. (I read this article from Broker Agent News, (Top 7 Tips,) after I started my post. Notice the similarities including the use of quotes around “investor”.)

The first is the fix it and flip it investor.

Most don’t have the skills needed to fix the houses with real potential. There aren’t many homes in our market that just need a little paint and new flooring. Much of what is available needs some real love and perhaps even moving a wall or two. Another problem is the high price to get into the market. While $250,000 doesn’t seem high in Seattle or San Francisco, it seems high to a Leavenworth or Wenatchee resident for a house that needs a lot of work. Finally there is the turnaround time. Our time on market, even for great homes, can be a little tough on investors looking to get their money back. If you expect it to sell in a few weeks after you have fixed it up, you may be in for a surprise.

Second, we have the typical landlord investor.

These folks are looking for a property, especially multi-family properties such as duplexes or tri-plexes that have good cash flow. This means that the income coming in from rent is greater than the expenses for management, upkeep, and the mortgage payments. The houses are paying for themselves and the investor only needed to have enough for the down payment. Here’s the bad news- it ain’t gonna pencil. A few years ago you might have found rental properties in Wenatchee (but not Leavenworth) that had good cash flow. Not today. Why? Because real estate prices have gone up, but rental rates really haven’t. Robert Kyosaki, the author of the Rich Dad, Poor Dad series had a good idea. Write rental agreements with language that automatically raises rents yearly. How many times have I heard from landlords that they know their rents could be higher, but they didn’t want to lose their great tenants by raising the rent. Guess what? The investor buyer doesn’t care so much about the quality of the renter as much as the quality of the rent.

Third, we have the vacation home buyer.

This person wants to buy a vacation home and rent it out when it is not in use. This isn’t a bad strategy except for the following caveats.

1. Make sure the zoning allows it. In Leavenworth, “nightly/weekly” rentals are only allowed in areas with Commercial Zoning. For the most part, this means a condo, although some older houses are located in commercial areas. In unincorporated Chelan County the zoning isn’t as big of a problem.
2. Be prepared for Management Fees and Condo Association Fees. Managers for vacation rentals locally are charging 40-60% of the rental rate. Some will even charge you a cleaning fee to use your own property. Additionally the monthly condo fees can be a few hundred dollars. These fees make Cash Flow a difficult proposition.
3. When are you likely to use the property? If it’s just an investment- great. Most folks hope to come over for a few long weekends and holidays. Christmas, New Years, Spring Break, MLK Day, Oktoberfest – these are the big money makers for vacation rentals. The quiet times? Mid week (Tuesday through Thursday) and the in between seasons. Can’t golf or go skiing because the weather won’t cooperate? This is the quiet season. There is a great article about making money from vacation rentals here.

What is my advice for the real estate investor? First of all look to the long term. There aren’t many get rich quick deals. If they exist, they require lots of money and certainly talent. There is however lots of money to be made by investors who can wait a year or two. Second. Look beyond cash flow. What about the other sources of profit? Depreciation, mortgage deduction and market appreciation. One of my favorite ideas currently is land that doesn’t quite cash flow. Find a house, often a manufactured home, on a great lot that has lots of value. Rent out the house for a few years with minimal improvements. Does the renter pay the mortgage? Of course not, but when’s the last time you got rent on bare ground? In two or three years the lot has increased 20% a year and you can remove the structure and sell the ground. Similar to this is Rent, Fix and Flip. Buy a fixer upper with potential. Rent it out before you fix it and after a few years of building equity then flip it. We have great appreciation right now, take advantage of it by holding on to it. I think land is a great place to invest right now. Not necessarily large subdivisions, but little short plats of 2 to 4 lots or just keeping a small in town lot or a lot in an existing subdivision.