Property Views: Seattle real estate still a seller’s market, for now
Greater Seattle continues to experience a very active real estate market with a shortage of inventory plaguing the region.
Continued low interest rates and a strong job market drive our housing market with new hires coming in from out of state for high tech, medical and other industries. Additional pressure on the market is expected as reportedly Amazon is more than doubling its maximum base pay to $350,000 for some corporate and tech employees. This will give them $1 million in more buying power, which will likely feed increasing prices in our region.
Unprecedented low inventory has led to fewer home sales and increased prices. However, with the sunset of the pandemic upon us, we expect to see more inventory coming to market this spring. In addition, 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. Many new listings coming on the market will be snatched up by the backlog of buyers, but overall it will be bring welcome opportunities.
Here’s a snapshot of the recent housing market stats in our area:
For Denny Blaine, Broadmoor, Washington/Madison Park
Jan. 1, 2022 through Feb. 15, 2022:
10 sold homes
Average Sales Price: $2,556,300
Average Days on Market: 89 (there was one that was 440 days, which makes this misleading)
Average Price Per Square Foot: $821.10
Lowest Sales Price: $1,400,000
Highest Sales Price: $4,450,000
Selling at 98.11 percent of last listed price
Jan. 1, 2021 through Feb. 15, 2021:
17 sold homes
Average Sales Price: $2,238,561
Average Days on Market: 73
Average Price Per Square Foot: $709.20
Lowest Sales Price: $440,000
Highest Sales Price: $4,625,000
Selling at 97.07 percent of last listed price
For 98112
Jan. 1, 2022 through Feb. 15, 2022:
37 sold homes
Average Sales Price: $1,483,541
Average Days on Market: 50
Average Price Per Square Foot: $710
Lowest Sales Price: $448,000
Highest Sales Price: $4,450,000
Selling at 103 percent of original listed price
Worth note: 24 of these are $1 million+, and the average market time over $1 million is 51 days (without the 440 DOM sale, the average is 30 days but the vast majority are selling in 10 days or less)
Jan. 1, 2021 through Feb. 15, 2021:
43 sold homes
Average Sales Price: $1,438,245
Average Days on Market: 56
Average Price Per Square Foot: $630.88
Lowest Sales Price: $400,000
Highest Sales Price: $4,625,000
Selling at 101.2 percent of original listed price
My takeaways:
Year-over-year real estate activity in 98112 remains strong and steady with sales up, prices up and days on market down.
In 98112, January 2022 vs. January 2021 shows a 33 percent increase in average sales price for homes price over $1 million.
Important things to note about the current housing market:
Essentially, the housing market in our area is sold out, and we have many homebuyers waiting in the wings. Many buyers are anxious to get into a home before the expected rise in interest rates.
It should be emphasized that interest rates are still at historic lows, giving buyers a huge advantage in purchasing power.
This is an unprecedented market for many of us real estate veterans. Homes continue to sell with multiple offers and sometimes hundreds of thousands of dollars over list price.
Over and over again we see buyers are seeking homes that are move-in ready. Many of these buyers need a home immediately; if they can envision simply moving into your home, you will see that reflected in the sales price.
If your house doesn’t present well and isn’t staged property, the home for sale down the street will likely sell for more. 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. Many buyers are requesting short closings; having your home fully prepped for market makes it much easier to make your move.
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 five 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 a restored Tudor on the ninth hole in Broadmoor.
My advice to buyers: Work with an experienced agent and get into the market sooner, rather than later, as we expect prices will continue to rise. Do not miss out on what are still incredibly low interest rates.
For sellers: If you have considered making a move, this is a seller’s market like no other.
Our Compass experts have a long history in Madison Park and are ready to help you navigate this unusual time with the latest technology, top-notch marketing and proven pricing strategies.
Evan Wyman
Broker/Partner
The Wyman Group @ COMPASS