A special report on residential real estate sales in King County

4th Q and 2011 in Review

w Windermere Real Estate/Wall St., Inc.

Windermere Real Estate

Market ReviewMarket ReviewMarket Review

Seattle MetroSeattle MetroSeattle Metro

Fourth Quarter Oct / Nov / Dec 2011

All data compiled from NW Multiple Listing Service, this information is deemed reliable, but is not a guarantee nor is it guaranteed, and should be verified to your satisfaction.

"Healthy marketplaces" Emerging With Shrinking Inventory, Favorable Financing NWMLS KIRKLAND, WA. (Jan. 4, 2012)

Home sales finished the year much stronger than they started, with pending sales for the fourth quarter outgaining the first quarter by more than 3,000 transactions for a 21% increase, according to new figures from NWMLS. OB Jacobi, president of Windermere Real Estate, believes the market has undergone a shift. "Where we've been during the past year is a place of transition. It has been a slow recovery, but the housing market has finally turned a corner, albeit a

soft one with some bumps along the way," he commented. Read more on our blog: www.WindermereWestSeattle.com

Area Number of Homes Sold 2011

Average Sold Price Median Sold Price Average Size (Sq Footage)

Days on market DOM

Houses Condos Houses Condos Houses Condos Houses Condos Houses Condos

SEATTLE CORE Downtown, Belltown

na

451

na

$505,256

Na

$390,000

Na

1045

na

79

IN-CITY Queen Anne, Magnolia

466

279

$632,358

$327,666

$530,000

$250,000

2263

1028

65

81

NW SEATTLE Ballard, GreenLake, Fremont, Wallingford

1353

256

$430,537

$240,918

$398,000

$219,675

1862

888

42

72

NE SEATTLE View Ridge, Maple Leaf, Northgate

942

136

$484,577

$192,390

$410,000

$187,950

2063

1006

47

77

CENTRAL SEATTLE Capitol Hill, Central District, Madison Park

690

405

$688,263

$311,129

$509,000

$249,900

2242

901

65

91

SE SEATTLE Beacon Hill,

Mt Baker, Columbia City, Seward Park, Rainier

732

48

$319,071

$170,479

$274,750

$167,950

1822

958

62

64

WEST SEATTLE

1108 138 $347,178 $305,037 $297,949 $240,000 1769 1149 63 126

Fourth Quarter Oct / Nov / Dec 2011

Pricing Trends December 2011

Windermere.com

Metro Seattle Real Estate Market Update - Residential

Windermere tracks key performance indicators to determine the current state of the market and to anticipate trends within Metro Seattle: from West Seattle to Lake Washington and north to Shoreline & Kenmore. We trust that this data combined with our expertise will help you make sound decisions.

PRICE TRENDS Prices for closed sales of single family homes increased in November 2011 compared to the previous month—an on-going opportunity for buyers. Low priced distressed homes continue to push prices down. While our brokers report multiple offers in many high-demand neighborhoods, this isn’t translating into pressure on higher prices, at least not yet. In fact, the average selling price in November 2011 was $441,000, compared to $480,000 in November 2010.

MARKET ACTIVITY

Many sellers assume that it is best to wait until spring to list property for sale. But standing inventory of residential homes in the fourth quarter of 2011 is 32.8% lower than in the fourth quarter of 2010. Depending on your neighborhood and price level, selling a single family home in the winter of 2011 may be more profitable than waiting. Speak with your broker for more details.

FINANCIAL MARKET TRENDS

Interest rates remain historically low and future changes are difficult to predict. However, when the economy improves, interest rates will likely increase. Buyers tempted to wait—hoping for real estate prices to drop further—should bear in mind that small interest rate increases often offset large declines in price. For example, if interest rates go up by 0.25%, monthly payments for a home with a $300,000 loan amount will increase even if the value of the property declines by 2.5%.

Experience the Windermere Difference

commitment + connection + consistency = the Windermere Way

w Windermere Real Estate—West Seattle Office

4526 California Ave SW, Seattle 98116 206.935.7200

www.Windermere.com

Connect with me:Connect with me:Connect with me:

Peter Wolf www.facebook.com/people/Peter-Wolf/100000022831292

The CoHo Team www.cohorealty.com www.facebook.com/CoHoTeam?sk=info

www.PeterWolf.myWindermere.com

Peter Wolf

Office: (206) 935Office: (206) 935 -- 72007200

Direct: (206) 659Direct: (206) 659 -- 31593159

Fax: (206) 937Fax: (206) 937 -- 65746574

peterwolf@windermere.com

PeterWolf.myWindermere.com