Inbox: Where to Live Based on the Quality of Seattle Public Schools?

I’ve been having a dialog with one of my readers who is looking forward to moving to Seattle. His last email summarized some of the research he has done on Seattle schools, and I thought the entire email is so good that it deserved a wider audience:

Dear Anna —

I’ve got another issue you might want to explore on your blog, and get readers’ feedback. Do people looking to buy real estate in Seattle base their choice of neighborhoods on the quality of schools? From my understanding of the Seattle public school system, it seems that one does not need to consider high schools among ones neighborhood selection criteria, since at least in term’s of today’s system, there’s no admission advantage (other than just being close) that accrues to living in the “reference area” of ones preferred high school. However, there does appear to be an advantage to living in the reference area of ones preferred elementary and junior high schools. And if budget cuts ultimately mean cutbacks in school choice (though that has been averted for the time being), then it’s likely that it will be even more important. So, what this means is that if school quality is important to you, you should look at the neighborhood elementary and junior high schools.

However, if one looks at the Seattle city schools in comparison to suburban schools in terms of grade scores (as tabulated by the Seattle Times School Guide), quite a few elementary schools (e.g., Lowell, View Ridge, Wedgwood, Hay, Lawton, North Beach, Whittier, etc.) compete with the best suburban schools (Mercer Island, Bainbridge Island, etc.). However, at the junior high school level, all but a few junior high schools (Eckstein, Tops, Washington) fall out of step with the best suburban schools. And at the high school level, only the Center School ranks with schools on Bainbridge, Mercer Island, Bellevue, Issaquah and the Northshore. The obvious conclusion, then, is that if you seek top notch schooling in the upper grades, your choice comes down to having your child compete for a place at a few select Seattle city public junior highs or high schools, or else looking at private schools, or moving to the suburbs.

What do you think of this analysis? What other school related-factors are there to consider?

I hope you don’t see this as too self-serving. It strikes me as it is a fundamental part of buying real estate, but is rarely fleshed out in public, probably because of the hot-button racial issues involved.

(I’ve left the writer of this email anonymous at his request)

When he asks if any other factors should be considered, I think of some of the specialty programs that different schools offer. For example, all of the 5th grade students at Greenwood Elementary School are taught how to fly airplanes (Cessna 172’s). I imagine that some parents would be willing to give up a few test score points to know that their child was in a more stimulating environment.

What other specialty programs are there that might be of interest to parents moving to Seattle?

What other school-related factors should he consider in looking for a home in Seattle?

I would definitely like to open up his questions to other readers, so please feel free to leave comments below.

Seattle’s hot housing market

Hot September Market Chart
According to the latest statistics from the Seattle Times, the housing market is still hot. “Homes sold last month in King County were on the market an average 37 days, compared with 52 days for homes sold the previous September. Properties in neighboring counties also were snapped up faster than a year ago.” The article notes that while home prices in Boston and Washington DC have started to decline, our market stays strong.

Interestingly, the home market has remained strong despite the recent increases in interest rates. Frank Nothaft, chief economist at Freddie Mac is quoted in the Seattle PI as saying “The most likely pattern is for mortgage rates to gradually rise over time. It is likely that they’ll hover at 6 percent or just a bit over.” He added that “will translate into somewhat weaker demand for housing, lower home sales volume and lower house price growth.”

Further interest rate increases by the Federal Reserve will likely increase rates even higher:

At the same time, a few consumers prospecting for properties – especially those prequalified by lenders – may be spurred into action by the rising interest rates.

“People may start buying before it (the mortgage rate) goes up any more,” Binczewksi said. “They would make offers because they have rate locks. Now, with rates increasing, they won’t want to lose rate locks.”Further interest rate increases by the Federal Reserve probably will push ARM rates even higher, analysts said.

With the rapid growth in home prices, I’ve seen many of my clients opting for smaller homes and/or condos. The Time article reflects this pattern by showing the the total number of available condos is way down (1,347, compared with 2,121 a year earlier) while the median price is up ($229,950, up from $205,000).

home search progress…

house Values House Values launched a new site today that combined aerial photography with real-estate listings and extensive neighborhood information. The Seattle Times notes that Home Pages “has information covering 92 percent of the nation’s metro areas.”

HomePages combines aerial photography with neighborhood demographics. When you click on an icon, neighborhood data such as local school information is given such as the student-teacher ratio, average class size and even the name of the principal. Of course you can view all the homes for sale , but I really like that it displays the homes in relation to neighborhood amenities — libraries, restaurants, theaters, churches, banks, police and fire stations among them. If you are interested in seeing where the future of real estate search is heading, this site is definitely worth checking out.

By the way, don’t overlook the value in their House Invaders’ game… 🙂

Ballard History.

[photopress:shilshole_boats.jpg,thumb,alignright]The City of Seattle’s website has an interesting tour of Ballard history that has some fun gems of information (including some wonderful historic photos).

“The first claim in the future city and neighborhood of Ballard was filed in 1852, the same year settlers arrived in Seattle itself. Development proceeded slowly until railroad entrepreneurs Thomas Burke and Daniel Gilman (remembered now with the Burke-Gilman Trail) assembled a large tract in 1888 for the construction of a new community.
Meanwhile, a ship’s captain named William Rankin Ballard lost a bet with a business partner and found himself the owner of 160 acres of seemingly worthless logged-off land adjacent to the planned Gilman Park development. Burke and Gilman hired him to manage their project, and appreciative residents named their new city after Ballard when they incorporated in 1890.”

“The large wave of Scandinavian emigrants were coming to this are and in 1889, when Seattle all but burned down, Ballard’s sawmills supplied materials to rebuild the city. For years, Ballard was the No. 1 producer of wood shingles in the world, earning it the nickname “Shingle Town USA.”

“Back than Ballard was a rough-and-tumble town. Factory whistles signaled the start and end of the day. Ballard was also a fishing town, and on Salmon Bay – the birthplace of Ballard – Alaska fishing trawlers remain a dominant presence. Men heading home would stop along Market Street to buy supper or hoist a beer in one of Ballard’s many saloons.”

“Now we define Ballard by boundaries on North 110th NW st. , South and West Salmon and Shilshol Bays and the East by 3rd Ave NW and Phinney Ridge. Ballard includes the neighborhoods of Loyal Heights, Crown Hill, Blue Ridge, Bitter Lake and Broadview. While the others are primarily residential, Broadview, roughly the area between North 105th Street and 145th Street from Puget Sound east to Aurora Avenue, is a community that has seen big changes in housing and urbanization. “

Ballard Treasure: Hiram M. Chittenden Locks

[photopress:404_0447_IMG.JPG,thumb,alignright]This is the first post in what I hope will be a regular feature. My plan is to post on local treasures… Potential topics include interesting places, events, people, businesses that make Seattle a special place to live.

The Hiram M. Chittendem Locks (also known as the Ballard Locks)
map

What are they?
The Ballard locks opened in 1916 and were built to raise or lower vessels 6 to 26 feet (depending on tide and lake level) to compensate for the difference between the levels of Lake Washington and Puget Sound. Back when the locks were first designed and built, Ballard was a major economic center with a substantial portion of Seattle’s fishing and freight traffic passing through this area. Today, commercial fishing boats still pass through the locks but almost all of the freight traffic has moved to much larger and deeper ports in other parts of the state. The majority of the boat traffic passing through the locks are personal boats either returning from an ocean trip (likely to the beautiful San Juan islands) or a visiting boat from some other part of the world.

How do the locks work?
Think of it like a huge modified bathtub. The important elements of this bathtub are that it has a plug (to stop water), a spigot (to let water in) and two gates (one on the freshwater side and one on the saltwater side). In order to get a boat from the saltwater to the freshwater, the saltwater-side gate is opened and the boat enters. Then the saltwater gate is closed (forming a bathtub) and the tub is plugged. When the spigot is turned on, freshwater fills the water level of the bathtub up to the level of the freshwater canal (thanks to gravity!). Then the freshwater-side gate is opened and the boat can enter the canal.

At this point, boats that want to go from freshwater to saltwater can enter the bathtub. Once the freshwater-side gate has been closed, the plug is pulled causing the water-level to fall until it reaches the level of the saltwater. At this point the saltwater-side gate is opened and a boat can enter the salt water!

Other Activities at the Locks
In addition to watching the boats rise and fall with the water level at the locks, there are other activities at the Ballard Locks that can make for a wonderful afternoon. There is a nearby Salmon run and during the summer, some interesting gardens and sculptures, and the grounds are home to some great entertainment on weekends during the summer.

From the locks it is just a short walk along a spillway to get to the “fish ladder” that allows fish to bypass the locks and get to their natual habitat on Lake Washington and beyond. Sockeye, Chinook and Coho salmon, as well as cutthroat trout and steelhead use the ladder to migrate through the canal to Lake Washington. All of this is fun and educational making it a great place to take kids!

Another fun activity at the Ballard Locks is to visit the beautiful botanical gardens. Spreading over seven acres bordering on the canal are some 500 species and 1,500 varieties of mature trees, shrubs and flowers from all over the world. In addition, a small stage is set up most weekend days during the summer on a grassy knoll making this a fun place to spread a blanket and enjoy a picnic.

More links:

Do you have an idea for a local treasure that you’d like to see featured on Rain City Guide? Let me know.

More on Trulia and their attitude

I noticed that I’m getting a bunch of hits going to my “general real estate” category. It’s odd because it doesn’t appear that any of you are coming from another webpage (there’s no “referrer”). Is there an email being passed around linking people to my website? If so, I’d be very interested in seeing this email! Can you forward a copy to anna@raincityguide.com?

If I had to take a guess, I’d say that the email is probably titled “More on Trulia.com and their attitude.”

Keeping Real Estate Entertaining…

[photopress:twinkies.jpg,thumb,alignright]
David A. Smith, founder of the Affordable Housing Institute, has a great blog that is loaded with articles that are both interesting and informative (is that possible?). In terms of readability, his posts are up there with grow-a-brain except David keeps more focused on real estate.

He posts on a wide variety of topics. Today he gives some lessons on how home owners can learn from haggling in third world contries in the Economics of Haggling. A few days ago he had an article (What destroyed your home first) where he relates the killing of Rasputin to whether or not insurance companies will pay to rebuild homes in New Orleans (read the article and it will make sense!).

All in all, David is a great writer, and if you’re interested in real estate, I highly recommend adding him to your reading list.

The Reservations of Greenspan

Church Scene It’s no surprise that Alan Greenspan remains highly skeptical of the housing market, and considering he has access to a lot more data (and a lot better researchers!), I’m going to defer to him on the national issues.

Greenspan continued to register concern about soaring house prices and risky mortgages on expensive homes.

He also repeated his warning about signs of “froth” developing in some local markets that may be driving house prices to “unsustainable levels.”

Here’s are two quotes I found interesting:

  • “The vast majority of homeowners have a sizable equity cushion with which to absorb a potential decline in house prices”
  • “Speculative activity may have had a greater role in generating the recent price increases than it customarily had had in the past”

I think these quotes explain why the Seattle market is going to be fine despite his reservations. The employment market is healthy and I haven’t seen the type of speculation that is occurring in the SouthWest. Here’s a link I wrote a few weeks ago on the riskiness of the Seattle market.

Rising tide lifts all ships…

revenueWho benefits when housing prices rise? The sellers, of course… But also the local governments though increased property tax revenue. The Seattle PI has an article on how the mayor of Seattle has $15 million to spread around thanks to rising home prices:

In 2000 the average value of a residence in Seattle was $232,800, on which the property tax paid to state and local government was just under $2,832, according to the King County Department of Assessments. In 2005 the average home value had gone up to $368,700 with a property tax bill of just over $3,765.19.

The Seattle general fund budget proposed by Nickels for 2006 is $760 million, up from $717 million last year. It includes more money for street resurfacing and more money for sidewalks, police and firefighters.

“Thanks to a strong local economy, we can expect significantly more sales and business tax revenue,” Nickels said in his budget address Monday. “Strong real estate sales will also provide much more revenue for the city than initially forecast.”

I find the similarities interesting between this article and my post from Monday, where I note that the Federal government (IRS) benefits when flippers don’t pay attention to tax laws.

In the market for a condo?

New York, New York in VegasNew condos are sprouting up like weeds in Seattle for a variety of reasons… The Seattle Times has an article worth reading if you are considering buying a condo. Keep in mind that owning a condo is legally very similar to owning a home:

“Most people see condo living as somewhere between owning your own home and renting an apartment, but it’s more like owning your own home. There’s a responsibility that each homeowner has, whether they accept it or not,” said Craig, a board member of the state chapter of the Community Associations Institute, a group that provides educational information about homeowners associations.

“The best advice I can give to anyone buying a condo,” she said, “is to educate themselves as to what they’re buying and to be involved in the maintenance and operation of the condominium.”

If you are in the market for a condo, do your research and try to think of all the potential issues that might arise. Here’s a summary of the advice given in the article:

  • Ask for the key data on the condo, such as the number of units and number of parking spaces.
  • Ask the board for copies of the association’s bylaws, rules and regulations to learn the rules that govern the association.
  • Ask for the Builders public offering statement, which includes valuable information such as a list of the builder’s five most-recent condominium projects, restrictions regarding renting, a list of common amenities and known assessments.
  • Ask the unit owners to provide resale certificates to potential buyers, which should include valuable information such as expected special assessments, ongoing litigation and the amount of reserves available for repairs.
  • Ask for minutes and agendas from past meetings.
  • Ask for a “reserve study” that can give clues on potential structural defects (note that this might not be available.