Property Views: Rebalancing back to a normal market
Happy fall! If you follow the real estate market, you know that our region continues to rebalance back to a normal market. The latest numbers from the Northwest Multiple Listing Service show King County active listings are nearly doubled from a year ago and pending sales are down.
However, prices in Seattle and on the eastside continue to rise, and that is true here in our neighborhood, as well.
Many buyers see the market re-shift as welcome relief, with a bigger selection and sellers who are willing to negotiate, but rising interest rates and inflation continue to be a challenge and contribute to buyer hesitancy. However, real buyers are in the marketplace, including those out there as a result of months or years of pent-up demand.
For sellers, correct pricing is more critical than ever. Timing is everything; pricing should be neighborhood-focused and determined in real time instead of what was happening earlier this year. The purchasing power of buyers who will have financing has been diminished due to higher rates.
All these factors will contribute to the pricing adjustment we will likely see. Pricing too high out of the gate might cause your property to stall — work with an experienced agent who will review the local data closely and help you set a strategic price in real time.
As always, homes that come to market in show-ready condition sell faster. Take the time to create a positive experience for potential homebuyers: Declutter, deep clean and consider making updates that will appeal to today’s house-hunters.
Here’s a snapshot of the recent housing market stats in our area:
For Denny Blaine, Broadmoor, Washington/Madison Park
July 15, 2022, through Oct. 16, 2022:
Sold Homes: 34
Average Sales Price: $2,097,811
Average Days on Market: 26
Average Price Per Square Foot: $
Lowest Sales Price: $776,000
Highest Sales Price: $4,670,000
Selling at 95.59% of original listed price
Worth noting: 26 of these are $1 million+, and the average market time over $1 million is 28 days
July 15, 2021, through Oct. 16, 2021:
Sold Homes: 38
Average Sales Price: $2,082,179
Average Days on Market: 21
Average Price Per Square Foot: $804.34
Lowest Sales Price: $440,000
Highest Sales Price: $8,800,000
Selling at 99.66% of original listed price
For 98112
July 15, 2022, through Oct. 16, 2022:
Sold homes: 78
Average Sales Price: $1,631,797
Average Days on Market: 24
Average Price Per Square Foot: $727.16
Lowest Sales Price: $235,000
Highest Sales Price: $5,250,000
Selling at 96.14% of original listed price
Worth noting: 25 of these are $1 million-plus, and the average market time over $1 million is 17 days
July 15, 2021, through Oct. 16, 2021:
Sold homes: 125
Average Sales Price: $1,574,706
Average Days on Market: 20
Average Price Per Square Foot: $667.68
Lowest Sales Price: $375,000
Highest Sales Price: $8,800,000
Selling at 101.06% of original listed price
My takeaways
With the rate increases and the instability of the economy, there is a lot of uncertainty in the market, but some basic principles always make sense.
Buyers should consider this market shift as an opportunity to get into the game — work with an experienced lender who can advise you about rate increases and options.
Owning continues to be a better bet than renting.
Year-over-year median pricing in Seattle is up 6.1 percent. The showing activity has slowed down, however. The days of shooting for the stars with a high price are over. Use recent, hyper-local sales as comps.
It is always favorable to be the best-presented house and best value in your area when listing your home. You want to be the first to sell.
Buyers are looking for turnkey homes that are move-in ready. If they can envision simply moving into your home, it will result in a faster sale at a higher price. If your house doesn’t present well and isn’t staged properly, the home for sale down the street will likely go first at a higher price. Work with an agent who will advise you about the best updates and listing prep for the biggest return on your investment.
If you need help preparing your home for sale, we have a Compass Concierge program. Compass fronts the money for certain improvements (flooring, tile, painting, etc.) and you pay the money back at closing.
As of press time, there are 11 homes for sale over $2.5 million in Madison Park, Washington Park, Broadmoor and Denny Blaine. None of the residences is a condominium, and the highest priced single-family home for sale is a breathtaking view home on 39th Avenue East for $11,495,000 in Washington Park.