Property Views: A shortage of inventory plaguing region
Greater Seattle continues to experience a very active real estate market with a shortage of inventory plaguing the region.
In September, King County saw a steep decline in homes for sale, down 32.5 percent from a year ago. Historically low interest rates and a strong job market continue to drive the market with new hires coming in from out of state for high tech, medical and other industries.
The pressure on any available inventory has resulted in a dramatic drop in days on market, including here in our neighborhood. Without a home to buy, many sellers are staying put, resulting in a cycle that perpetuates the low-inventory dilemma.
While we are seeing less multiple offers, homes that are priced correctly are selling in a short amount of time; if you have considered selling, this remains a seller’s market.
The luxury market in Seattle is also increasing. In what is typically reserved for the eastside, Seattle is seeing more uber-high-end sales.
In Denny Blaine, Broadmoor, Madison Park and Washington Park, there were 10 sales over $4 million in all of 2020, nine in 2019 and four in 2018. There have already been 15 sales over $4M in 2021, including a pending sale for $35 million, which will be the highest-ever Seattle sale in the Northwest Multiple Listing Service. The ultra-high-end market in our neighborhood is here to stay.
Here’s a snapshot of the recent housing market stats in our area:
For Denny Blaine, Broadmoor, Washington/Madison Park
July 15, 2021, through Oct. 15, 2021:
33 sold homes
Average Sales Price: $2,077,964
Average Days on Market: 25
Average Price Per Square Foot: $804.30
Lowest Sales Price: $440,000
Highest Sales Price: $8,800,000
Selling at percent of last listed price: 100.98 percent
Over $2.5M market time is 22 days, and there were nine sales with an average price of $4,243,056
July 15, 2020, through Oct. 15, 2020:
45 sold homes
Average Sales Price: $2,153,997
Average Days on Market: 45
Average Price Per Square Foot: $826.97
Lowest Sales Price: $340,000
Highest Sales Price: $10,000,000
Selling at 100.2 percent of last listed price
For 98112
July 15, 2021, through Oct. 15, 2021:
118 sold homes
Average Sales Price: $1,564,307
Average Days on Market: 21
Average Price Per Square Foot: $666
Lowest Sales Price: $375,000
Highest Sales Price: $8,800,000
Selling at 102.42 percent of original listed price
15 of these are $2.5M-+, and the average market time over $2.5M is 15 days
July 15, 2020, through Oct. 15, 2020:
142 sold homes
Average Sales Price: $1,033,500
Average Days on Market: 38
Average Price Per Square Foot: $653
Lowest Sales Price: $325,000
Highest Sales Price: $10,000,000
Selling at 101.39 percent of original listed price
My takeaways:
• There were 37 sales in the area in 2020 under $1 million, 30 so far in 2021; inventory in this price point remains stable.
• 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. While this is a small sample size, these gains reflect not only our lack of inventory but all the reasons we love living in Madison Park — among other things: great neighbors and schools, the cafés and shops in the village, access to Lake Washington and proximity to myriad workplaces.
Some things to consider:
• Time and again, we see that today’s buyers seek homes that are move-in ready. If your house doesn’t present well and isn’t staged properly, the home for sale down the street likely will be and will sell for more. Work with an agent who will advise you about updates and listing prep; if you need help preparing your home for sale ask about our Compass Concierge program.
• While we remain a seller’s market and prices continue to appreciate, we are seeing fewer multiple offers, and buyers are having to compete less than they did only a few months ago. I recommend that buyers do not take a break from their house hunt during the holidays; this is the time to lean into your search as homeowners are typically very motivated at the end of the year and you will find less competition amongst homebuyers as people travel for the holidays, etc.
• In this market, broker-to-broker relationships are key. Select an agent who has an excellent reputation amongst their colleagues; it will definitely help you stand out in a multiple offer situation and at the negotiating table.
As of press time, there are 11 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 for $14,250,000.
If you have given any thought to selling your home, there has not been a better time in recent memory.
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.
Evan Wyman
Broker/Partner
The Wyman Group @ COMPASS