What’s happening in the Greater Seattle Real Estate Market?
This recent article from Redfin says, “Seattle’s Housing Market is Cooling Faster Than any Other in the US” (https://bit.ly/3T0vzs9)…I think it is about time we PANIC!!!
Kidding aside, before we panic, let’s take a look at the numbers and then decide. Welcome to November’s Market update where we go over the latest data so you can stay informed.
And, more importantly, we’ll interpret the numbers, so it makes sense to you. There is so much misinformation out there it can be confusing.
Be sure to stick around until the end so you don’t miss our helpful tips. Whether you are a buyer or a seller you can be empowered in today’s market when you have the right information.
Let’s dive right into the data because the numbers don’t lie. It’s important to look at both month over month numbers and, the year over year to get a full picture.
It may surprise you, but both month-over-month and year-over-year numbers show a decrease in inventory coming on the market across our region. Snohomish County saw a 16.9% decrease in inventory, King County saw a 17.4% decrease, and the City of Seattle saw a 19.2% decrease of new listings come on the market vs this same time 1 year ago.
Now, lets’ mention the speed at which homes are selling. When looking at all 3 areas, the month-over-month days on market is holding steady with minimal change. In fact, in the city of Seattle, the average days on market went down by 2 days, meaning homes sold faster in the month of October than September this year.
When looking at the year-over-year numbers all 3 areas have increased their days on market. In both counties, it’s about double the amount of time from last year, which is what we would expect given the current market conditions.
For instance, In Snohomish County, the average time it took to sell a home in October 2021 was 13 days. In October 2022, it took 31 days. For King County, the average was 14 days last year and 26 days this October.
For Seattle, the average days on the market was 14 last year, vs this October was 19 days. Now, while these numbers show a significant increase in days on market, the current numbers reflect a more balanced or what we call a “normal market.”
Let’s talk about the sales price to list price ratio which tells us how much above or below the list price homes are selling for on average. In Snohomish County, homes went from selling for 3.1% above the asking price, to selling for 1.4% below the asking price, year over year.
For King County, homes went from selling for 4.8% above the list price to 1.4% below the list price year over year. And in Seattle, homes went from selling for 4% above the list price to .6% below the list price.
Translation? Most are selling close to the asking price.
Exactly.
Ok, what about the median home values? In Snohomish County, the median sales price went up from $680,000 to $724,900 year-over year. That’s an increase of just over 6.6%.
For King County, the median sales price went up from $825,000 to $910,000 year-over year, which is in increase of 10.3%. And in Seattle, the median sales price went up from $835,000 to $910,500 year-over year, which is in increase of 9%.
When looking at the year-over-year comparison, values are still well above what they were a year ago. And what is interesting is when you look at the month-over-month trend, Snohomish County shows a slight decrease of .7%, whereas King County and the city of Seattle show an increase of 3.4% and 2.2%.
What do all these numbers mean? Bottom line, while the market hysteria or frothiness has gone away, we currently have a relatively normal market where prices are still higher than 1 year ago. Also, most homes are selling for close to the asking price, and in some cases, even above the asking price.
That’s right! Not convinced? Check out our previous video on bidding wars. Yes, even in this market.
Now, what are the takeaways for buyers?
· First, talk with your lender. Rates have been very volatile and trending up. Do yourself a favor and briefly touch base with your lender on a weekly basis to make sure nothing has changed regarding your qualifications or affordability.
· If possible, negotiate with the seller to help pay for a rate reduction on your loan. The amount of money the seller spends on your rate reduction is usually WAY more beneficial to you than taking that same amount of money and reducing the purchase price.
· Even though rates have gone up dramatically since the beginning of this year, it could still be a good time for you to purchase. Buyers now have more negotiating power and options with far less competition.
How about you sellers?
· We still don’t have a lot of good inventory on the market. So, make sure your home looks fantastic. Not ok, not good, but fantastic. You can do this, even with a limited budget. Reach out if you need tips!
· Price your home competitively based on the most current data, and by that we mean look at the current pending homes that are under contract not the sold homes that are months old as they won’t provide you with the best data. When you price it competitively you retain power and leverage in the sale. That way you are not hoping and praying for some unicorn buyer.
· We still recommend our sellers to have their home inspected prior to going on the market, order preliminary title, and have top notch marketing so you stand out.
How do YOU interpret these numbers? Do you think it’s still time to panic? We’d love to hear from you in the comments below.
While the Greater Seattle area real estate market has cooled, we have not entered “crash” territory. But we have officially entered into a more “normal” market.
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