Property Views: Seattle experiencing a hot seller’s market
It’s hard to believe that a year ago we were still somewhat uncertain about the potential effects of the pandemic on local real estate. Flash forward to summer 2021 and we are in the midst of an unprecedented housing market with inventory at historic lows and price increases that are breaking records.
With the summer real estate market upon us, we are seeing an increased number of homes coming on the market, giving weary home buyers a larger selection.
As new listings come on the market, they are immediately scooped up by a plethora of waiting buyers, however.
Historic low interest rates and a strong job market continue to drive the market. Without a home to buy, many sellers are staying put, resulting in a cycle that perpetuates the low-inventory dilemma. If there was ever a “seller’s market,” this is it.
While the Seattle high-end market took a bit longer to recover, this segment of the market is now buzzing right along, too. In looking at the Seattle luxury market as a whole, during the period of Jan. 1, 2021, to May 31, 2121, sales of homes and condos over $2.5 million rose from 38 sales in 2020 to 121 in 2021, a 218 percent increase.
An interesting development in the luxury category: Broadmoor could be the hottest neighborhood in Seattle! Twenty-one closed sales since Jan. 1, and 17 of those have closed since April 1. For those homes listed in 2021, the average market time is seven days! As of press time, three of the five highest Seattle sales in 2021 were in Broadmoor.
The market is moving fast, and staying on top of current statistics and trends is important if buying or selling a home is in your future. Let’s dig into the most recent numbers:
For Denny Blaine, Broadmoor, Washington/Madison Park
Jan. 1, 2021, through June 21, 2021:
87 sold homes
Average Sales Price: $2,244,199
Average Days on Market: 43
Average Price Per Square Foot: 760.27
Lowest Sales Price: $299,000
Highest Sales Price: $7,500,000
Selling at % of last listed price: 98.14 percent
Over $2.5M market time is 56 days, and there were 32 sales with an average price of $3,620,375.
Jan. 1, 2020, through June 21, 2020:
39 sold homes
Average Sales Price: $1,741,035
Average Days on Market: 48
Average Price Per Square Foot: 677.68
Lowest Sales Price: $500,000
Highest Sales Price: $3,998,000
Selling at 98 percent of last listed price
For 98112
Jan. 1, 2021, through June 21, 2021:
235 sold homes
Average Sales Price: $1,578,616
Average Days on Market: 32
Average Price Per Square Foot: $668
Lowest Sales Price: $295,000
Highest Sales Price: $7,500,000
Selling at 101 percent of original listed price
39 of these are $2.5M+, and the average market time over $2.5M is 45 days
Jan. 1, 2020, through June 21, 2020:
132 sold homes
Average Sales Price: $1,264,592
Average Days on Market: 36
Average Price Per Square Foot: $606
Lowest Sales Price: $265,000
Highest Sales Price: $4,850,000
Selling at 101 percent of original listed price
My takeaways:
We are seeing big changes year over year because last year we were essentially in the midst of a market halt due to COVID.
Year-over-year real estate activity in our neighborhood remains strong and steady with sales up, prices up and days on market down
In 98112, YTD 2020 vs. YTD 2021 shows a nearly 25 percent price increase
In Denny Blaine, Broadmoor and Washington/Madison Park, the average home price increase year over year is nearly 30 percent.
A few housing trends that are making an impact in the real estate world:
1. We continue to see multiple-offer situations at certain price points and in homes that are move-in ready; buyers are drawn to homes that do not require significant updating. An exception to that would be historic and architecturally significant homes.
My recommendation: Have your home show-ready. Bring in an agent to walk through your home to make suggestions regarding updates/listing prep.
2. Remote working is a trend that many believe is here to stay and continues to impact buying trends.
Even though many companies are transitioning back to the workplace, many employers have announced hybrid schedules, so having a suitable work-from-home space is still a must-have for those (now tiresome?) Zoom calls. Lifestyles have changed in the last 15 months, and that includes where we work out. Our buyers are looking for rooms that can be used for home gyms as well.
3. The desire for homes in resort-style settings.
The ability to work from home and a desire for greater access to the outdoors, combined with lower mortgage rates, has resulted in a huge increase in second-home purchases over the last year.
Some of these vacation homes may ultimately become primary residences — especially for those getting close to retirement — but many have opted to invest in that sanctuary now as a result of pandemic lockdowns and the desire to seek respite from urban areas.
In closing, I want to thank everyone who has remained committed to serving our community, supporting our local businesses and improving this city we love. Compassionseattle.org is an alliance of civic and community leaders working to address Seattle’s homelessness crisis. Check it out if you interested in their mission.
As of press time, there are only six homes for sale over $2.5M in Madison Park, Washington Park, Broadmoor and Denny Blaine. Two of the residences are condominiums, and the highest priced single-family home for sale is a contemporary villa with 130 feet of Lake Washington waterfront.
If you have given any thought to selling your home, there has not been a better time in recent memory.
Our Compass experts have a long history in Madison Park, and are ready to help you navigate this unique time with the latest technology, top-notch marketing and proven pricing strategies.
Do you need help getting your home ready for sale? Ask about our Compass Concierge program!
If you’re buying, our knowledgeable agents will help you achieve success in this still competitive market.
Evan Wyman
Broker/Partner
The Wyman Group @ COMPASS