Photo by The Madrona Group
Originally Posted On: https://www.themadronagroup.com/seattle-housing-market-report/
Here are a few of the things that really stuck out to me while compiling all the stats for the Seattle housing market report this month.
The data tells a story about the current state of our local residential real estate market.
What this story tells me is…
That home sellers are feeling safe about putting their home on the market and there are plenty of buyers that are still waiting for more.
The majority of national economists have suggested that it will be the real estate market that pulls up the economy, and so far it is playing out.
As I have been reporting for the last 4 months that buyer indicators have never really declined, and now we are seeing the seller indicators hit all time highs.
According to the Realtor.com Seattle Housing Market Recovery Index the US market is sitting at a 103.7 of 100, while the Seattle/Bellevue/Tacoma market is sitting at 116.8 of 100.
We are seeing spring like sales activity late into summer.
With still amazingly low interest rates, and a low level inventory the last couple of years the Seattle real estate market should remain in the surge to frenzy status for the foreseeable future.
If you are selling the average sales price is at all time highs, and 65.1% of homes are selling in the first 30 days. The average home is selling in just 20 days.
If you are buying the interest rates have never been lower! We have seen a high number of listings hit the market the last couple months.
Enjoy My Seattle Housing Market Report in 60 Seconds Video
IT’S SUMMER HOT AND THE INTENSITY IS GLARING
The Seattle housing market is hot this summer, with historically low interest rates bringing out buyers. We are virtually sold out, and the number of homes going under contract is strong. These conditions create higher intensity for each new listing, making it feel like “Multiple-Offer Everything” in the local market.
The Seattle luxury market is very active, with low unsold inventory in the $1.5 to $3 million range. Sales activity intensity is strong in this range and healthy above $3 million. Unsold inventory is healthy above $3 million.
– J Lennox Scott
Seattle Real Estate GRAPHS AND Data
SALES ACTIVITY AND INVENTORY
With only 1.2 months of supply if no other homes were listed in the next 36 days we would run out of houses to buy.
New listings increased in August.
If you are looking for homes from 250-350k you are seeing a little more inventory with 1.9 months of inventory.
As you can see from the table above anything below 5 months is considered low. Low inventory means higher demand. Higher demand drives the price up.
1,196 homes were sold in Seattle last month. That is up 197 from the previous month, up 121 from last year, and down 283 from 5 years ago.
As you can see in the Seattle housing market homes in the 350-1 million price range are the most commonly listed and sold. However, homes in the 500k-1m price range sold the fastest.
DAYS ON MARKET
65% of homes are selling in less than 30 days in Seattle. That number is usually closer to 30%.
Houses in the 750k-1mil price range are selling 70.7% of the time in the first 30 days.
Because there are less homes for sale and there are still many buyers trying to buy… the homes that do list are usually selling very fast.
We have already seen where a low inventory should drive up prices. The average sale price for Seattle homes is $844,385. In comparison 5 years ago the average sales price was $569,696 5 years ago.
In addition the average home is selling for 1.5% higher than it is listed as.
In order for it to be a sellers market there must be buyers. With the interest rates at the Absurd rate of 2.87% a decrease AGAIN from last month (source: Mortgage News Daily)
There are plenty of buyers that are in the Seattle housing market.
According to both Zillow and John L Scott’s massive data set we are typically in a wind down portion of the season. Because we started the season a few months late, perhaps it will run a few months late.
The buyers are there and we are starting to see the listings numbers increase.
If you’re a buyer you will want to position yourself to create a buyer advantage when competing with other buyers and walk in confidence when making an offer. We can consult with you to be up-to-date with current market intensity and pricing, get pre-approved or fully underwritten through a lender, and receive email/text notification of newly listed properties.
In today’s instant-response market, it’s key to ensure you’re ready to act when the timing is right and make sure you are Buyer Ready Day One.
Sellers should be Market Ready Day One.
JOB AND POPULATION GROWTH
WHILE WE ARE NOT SURE HOW THE EMPLOYMENT NUMBERS WILL END UP HERE IS THE CURRENT UNEMPLOYMENT SITUATION
CURRENT UNEMPLOYMENT RATES
EMPLOYMENT NUMBERS PRIOR TO THE HEALTH CRISES
“After another year of employment stability, Washington economists predict more of the same in 2020.”
“Over the past year, Washington’s ranking in economic growth and competitiveness rose from fifth highest to fourth highest in the nation, according to a September study prepared by the Washington State Economic and Revenue Forecast Council. Separate ESD data reported that Washington added 52,500 jobs between October 2018 and October 2019, with 41,600 of those jobs in the Seattle metro area.”(Seattle Times)
(Courtesy ofSeattle Times)
According to the US Census Bureau Seattle the fastest growing city of the decade in the country.
The Seattle Housing Market Analysis INFOGRAPHIC
If you like our infographic or know someone that may like it please don’t hesitate to share it on your Pinterest, Facebook, Twitter or Instagram. If you would like to download the image: Download The Seatttle Housing Market Report Infographic For August.
Seattle Market Stats
STATS PROVIDED BY: INFOSPARK
- $844,385 was the average sold price for listings in Seattle.
- 1,845 new listings went on the market this month.
- 2,021 homes were for sale during the month.
- 1,327 homes went pending in Seattle.
- 1,196 homes sold this month
- 1.2 months of inventory available in Seattle
- 20 was the average days on market for a home to sell in Seattle
- 101.5% was the average listing price vs. sales price percentage
- $489 was the average price per square foot in Seattle
- $1,009,040,389 was the total closed sales volume for Seattle
- 2.87% was the interest rate
- 65.1% of homes sold in the first 30 days in Seattle
SEATTLE HOUSING MARKET Summary
The Seattle Housing Market saw 1,845 new listings, 2,021 homes were for sale, while 1,196 homes sold in August in Seattle.
The average days on market decreased to 20 days, the percentage of sale price to listing price increased slightly to 101.5%, and the average sales price decreased. The percentage of homes that sold in the first 30 days is 65%. Showing that despite the crisis, with interest rates low, buyers are out there. We have seen the market go to a Surge status over the last few months and the inventory to a severe shortage.
We should continue to see a surging to frenzy market for the foreseeable future.
Now seems to be an amazing time to sell your home as we are still seeing historically low inventory and high prices.
If you are considering a move up, a move down, or just want to sell your home… Months of inventory is still at well below average. Homes are selling at a rapid pace, the Interest Rates are still at below average lows.
The jury is still out on the job market and population growth.
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