A shifting real estate market in the region
As you by no doubt have heard, our region is experiencing a shift to a more-balanced real estate market. The latest numbers from the Northwest Multiple Listing Service show an increase in inventory and a slowing of sales. Rising interest rates, inflation and a sinking stock market are adding to the changes in activity.
It appears that the biggest slowdowns are occurring in suburban areas as more companies announce their return-to-work strategies; buyers and sellers may make decisions about where they can/want to live, depending on their employer’s work-from-home policy. We believe we will see a migration back to in-city neighborhoods.
The changes in the market are welcome relief for buyers who finally have some choices. House hunters no longer need to cater their online searches to properties that have just come on the market in the last two days; they can look at homes that have been on the market for a few weeks. While we still have very limited inventory — about a one-month supply in most areas — buyers can take some time to make decisions as we begin to see homes receive fewer offers and may not go pending in the first few days on market.
In addition, as we return to a more “normal” market, we will see the return of finance and inspection contingencies as sellers are more willing to be flexible.
Here’s a snapshot of the recent housing market stats in our area:
For Denny Blaine, Broadmoor, Washington/Madison Park
Feb. 15, 2022, through June 16, 2022:
36 sold homes
Average Sales Price: $2,190,277
Average Days on Market: 36
Average Price Per Square Foot: $888.74
Lowest Sales Price: $350,000
Highest Sales Price: $5,795,000
Selling at 105.39 percent of original listed price
Worth note: 27 of these are $1 million+, and the average market time over $1 million is 37 days.
Feb. 15, 2021, through June 16, 2021:
74 sold homes
Average Sales Price: $2,242,409
Average Days on Market: 37
Average Price Per Square Foot: $761.24
Lowest Sales Price: $299,000
Highest Sales Price: $7,500,000
Selling at 98.84 percent of original listed price: 98.84%
For 98112
Feb. 15, 2022, through June 16, 2022:
125 sold homes
Average Sales Price: $1,619,877
Average Days on Market: 20
Average Price Per Square Foot: $775.91
Lowest Sales Price: $280,000
Highest Sales Price: $5,795,000
Selling at 107.68 percent of original listed price
Worth note: 87 of these are $1 million+, and the average market time over $1 million is 22 days.
Feb. 15, 2021, through June 16, 2021:
195 sold homes
Average Sales Price: $1,631,453
Average Days on Market: 28
Average Price Per Square Foot: $676.38
Lowest Sales Price: $295,000
Highest Sales Price: $7.500,000
Selling at 102.19 percent of original listed price
My takeaways:
The market shift is a great opportunity for buyers, especially those who had been sitting on the sidelines after experiencing frustration and fatigue.
Sellers who are realistic about pricing have opportunity to sell.
Pricing your home related to the comps and market is as important as ever. Don’t list for what you want; list for a realistic price based on recent sales and NOT homes that have been sitting on the market.
Buyers: Seize this opportunity!
We are seeing more and more price reductions from sellers as over-priced properties are sitting.
In this ever-changing market, it is more important than ever to seek the advice of an experienced agent.
Luxury sales have remained steady; Puget Sound continues to be an area with strong job growth.
As of press time, there are 14 homes for sale over $2.5 million in Madison Park, Washington Park, Broadmoor and Denny Blaine. One of the residences is a condominium, and the highest priced single-family home for sale is an exceptional waterfront property in Washington Park.
Evan Wyman
Broker/Partner
The Wyman Group @ COMPASS