Good news for buyers in our region: inventory is up and in the luxury market that is providing house hunters more selection, time to make decisions, and negotiating power. In response we are seeing some high-end sellers more willing to negotiate, whether it be on price or assuming closing costs.
The most important message I have for buyers: make an offer. Get off the fence. You may think a seller will not entertain your offer, but with a good agent, you can begin a conversation that may ultimately lead to your new home. Yes, buyers have more time in the luxury market at the moment. However, time and time again we see buyers regret not making an offer after a home they were interested in closes and they see the final sales price. Work with an experienced agent who knows how to get deals done.
In the under $1.5M market we continue to see multiple offers and few contingencies, especially when homes are carefully prepared for market. In-city inventory remains constricted at this price point, and our area still has a backlog of buyers looking for homes. My advice given above also applies to those buyers looking to purchase a home under $1.5M: do not assume that a house is going to sell way over list price with multiple offers. Make an offer you are comfortable with and get in the game. Because many buyers do not want to get into a bidding war, they choose not to make an offer at all, only to find out that there was only one offer. Finally, choose a trusted lender who offers programs to get the interest rate down and most importantly—have your financing ready to go so you can be competitive.
Here’s a snapshot of the recent housing market stats in our area:
For Denny Blaine, Broadmoor, Washington/Madison Park
Jan 1, 2023 through June 20, 2023:
Homes Sold: 48
Average Sales Price: $1,958,505
Average Days on Market: 35
Average Price Per Square Foot: $793.55
Lowest Sales Price: $310,000
Highest Sales Price: $5,800,000
Selling at 95% of original listed price
34 of these are $1M+ and the average market time over $1M is 26 days
Jan 1, 2022 through June 20, 2022:
Homes Sold: 55
Average Sales Price: $2,424,592
Average Days on Market: 49
Average Price Per Square Foot: $874.91
Lowest Sales Price: $350,000
Highest Sales Price: $8,250,000
Selling at 101% of original listed price
For 98112
Jan 1, 2023 through June 20, 2023:
Homes Sold: 131
Average Sales Price: $1,459,759
Average Days on Market: 32
Average Price Per Square Foot: $686.29
Lowest Sales Price: $295,000
Highest Sales Price: $5,800,000
Selling at 98% of original listed price
83 of these are $1M+ and the average market time over $1M is 24 days.
Jan 1, 2022 through June 20, 2022:
Homes Sold: 167
Average Sales Price: $1,673,798
Average Days on Market: 28
Average Price Per Square Foot: $765.78
Lowest Sales Price: $280,000
Highest Sales Price: $8,250,000
Selling at 105% of original listed price
My takeaways
Rising interest rates are crimping activity and have not come down as expected; some economists predict this may occur in late 2024
Inventory is up in the luxury market and days on market are longer
Under $1.5M we are seeing some listings receiving multiple offers
Buyers are patient and searching for homes that meet their lifestyle needs (time at home during COVID definitely created a stronger relationship with home)
Some things to consider
Sellers: coming on the market at too high of a price typically results in your property “stalling.” We need to analyze the micro-neighborhoods and the most recent sales data to price your home competitively and strategically. If you push price your home can sit, and that may result in longer market times and a larger price reduction versus if the home had come on the market at a reasonable listing price.
Sellers: Presentation is becoming even more important as inventory rises. Cluttered and dark homes fail to captivate buyers' attention online (virtual showings), resulting in fewer in-person showings and prolonged time on the market. Tackle projects that give you bang for your buck: painting, surface updates, and landscaping. Declutter—packing more now means packing less later! Make sure every room is inviting, neutral, and appealing to a broad demographic. Hire a broker to represent your home who utilizes staging services.
Buyers: Ask us about lenders that can provide you with ways to circumvent the current higher rates until lower rates come down the road. Be very wise about your credit and have a solid lender relationship when you enter the market.
Buyers: work with a trusted broker with strong agent relationships. This will really help you in a multiple offer situation or if hiccups arise during the transaction.
As of press time, there are 18 homes for sale over $2.5M 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 waterfront estate with 120 feet of Lake Washington waterfront for $22.5 million.
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. If you need help preparing your home for sale, call me about our Compass Concierge program. Compass fronts the money for certain improvements (flooring, tile, painting etc.) and you pay the money back at closing.
Evan Wyman is broker/partner at The Wyman Group @ COMPASS. Call 206-898-9111 or email evan.wyman@compass.com.