By Greg Shaw, MHS Board member and Windermere Real Estate Agent and Monica Wooton, MHS Board member
At one time, different sections of Magnolia brought diverse prices. It used to be that homes in Magnolia were priced by location in the neighborhood. Today, almost all parts of Magnolia support the sale of a new home at 1.5 million. Now, it is all about the house, just being in Magnolia and not as much the location within Magnolia.
Fort Lawton was put here in the late 1890?s. It was an outpost. With placement of the city?s main sewer at West Point Beach in the early 1900?s, there was probably no thought of development happening in this timbered, hilly, remote area without good road access. There was certainly no realization that there would be a large sewer plant beneath what would become the largest park in Seattle: Discovery Park.
Magnolia is almost an island. Because of this, from the early settlement of Seattle to the present day this fact has affected the neighborhood, its growth and values. Access was difficult early on with timber, hills, tide flats and marsh separating it from the rest of Seattle. It took tons of fill to make most of the land mass where Smith Cove, the Piers 90 and 91, Thorndyke on up to where Interbay and Dravus now exist.
Many early homes by the water were vacation homes for some living ?in town?. Wooden trestles helped some settle in Magnolia in the early years. And, the Magnolia Bridge built by 1930 also brought more here to live. But, it was not until the late 1940?s after the World War II (WWII) building boom that Magnolia really began to develop. Small WWII ramblers many built in tracts by Modern Home Builders began to spring up.
Modern Home Builders came in the 1940 and built hundreds of units for young families many with covenants which did not allow persons of color except household help or even song birds. Because of the Navy and Fort presence on Magnolia part of the housing stock was military housing filled with families who would not make Magnolia a permanent home. This created some spots of density on Magnolia by Manor Place and on 34th as they were built-out or replaced.
Magnolia Boulevard was not even completed until the 1950?s. Late development, access with only few entrance and exit points has helped Magnolia remain as a destination rather than an integrated part of Seattle. Traffic never flows through Magnolia it only goes to or from Magnolia. Retail development in the Village has remained limited because of this.
Many changes to the real estate market in Magnolia and this city are reflected in cities all over the US. As the trend to move to the suburbs has reversed and traffic has driven buyers back to the city proper. The city as the cultural center with pedestrian and transportation options other than owning your own car and companies once fleeing the city now settling in the urban corridors have attracted young workers.
There are no longer any vacant lots to build new homes in Magnolia, an existing home must be torn down. Approximately ten years ago a teardown could be purchased for around $300,000, currently (and, hard to find) a teardown now is closer to $600,000. Typically, a builder who pays $600,000 needs to be able to sell the finished home for approximately three times the purchase price just to cover all costs. ?The most expensive recent tear down was $1,295,000 on Magnolia Boulevard.
A home bought for $375,000 in 2012, was rented and 2 years later torn down to make room for a large newly built home for $1,549,000, 2000 square feet larger, 100 times the original purchase price of Shaw?s parent?s home across the street on 29th Avenue West bought in 1962. The home Wooton grew up in, built by her father in 1957 on a corner lot, 2400 square feet, 5 bedrooms and 2 baths (the lot about $900 and building cost under $20,000) has appreciated (with some updating but without major renovations) to about $800,000. There are no vacant lots remaining in Magnolia.
Speculation that this is just another housing bubble seems to be allayed by the fact that the economy is strong and experts like Windermere and WFG Title Company feel it will continue as is for some time.
?Magnolia almost an island? has controlled destiny keeping Magnolia in some ways close to the way it was 50 years ago. But, for the first time city allowances for densifying are beginning to change the face and size of this single residence neighborhood as single lots are becoming places of two large homes replacing the small footprint of one small WWII home. Diverse architecture mixed with Tudors or mid-century, is also becoming a reality. On the fringes of the neighborhood single homes built on multi-units zoned lots are being torn down and many small units with few to no parking spaces are being allowed. Where Gorman?s Automotive Shop and 3 old houses stood on Gilman Avenue West two years ago, 25 units are being built.
Today, ironically, the proximity of Magnolia to downtown and the relative ease to get there, its mainly residential zoning and good public schools has made it a much sought after place to raise a family. And, much like New York, San Francisco and L.A., neighborhoods close to the city with family amenities like great parks, good pedestrian ratings, and its mainly residential zoning seem to only increase in value. Making it sometimes hard for older folks to keep up with taxes or downsize and stay in the neighborhood and community they have spent a lifetime contributing to and enjoying.
Groups like the Magnolia Community Council (MCC) have added land use as one of their priority issues in the hopes that the residential zoning is not destroyed in the years to come by some city planners who seem most interested in promoting density in all areas within the city limits.