Evan Wyman
The beginning of 2023 has brought some promising signs for our local real estate market after an uncertain fourth quarter in 2022. Triggered by declining mortgage interest rates and pent-up buyer demand, many of us have seen a return of multiple offers, especially in the mid-range price points. Real buyers are out there; with rates down, it has pushed many off the sidelines who plan to purchase now and refinance once rates come down more.
Greater Seattle continues to experience a shortage of real estate inventory. While we have seen an increase of homes for sale year over year in the Puget Sound region, when you look at pre-COVID levels, our inventory is still down more than 30 percent. Without a home to buy, many sellers are staying put, resulting in a cycle that perpetuates the low-inventory dilemma. Homes that are priced correctly are selling in a short amount of time; in-city neighborhoods remain a seller’s market. Some of the outlying areas are experiencing a downturn, some of which might be attributed to recent return-to-work policies. The phone is ringing earlier in the season and more often than we are used to; the spring market started early, with many sellers opting to list while their competition is low.
Here’s a snapshot of the recent housing market stats in our area:
For Denny Blaine, Broadmoor, Washington/Madison Park
Nov. 17, 2022, through Feb. 17, 2023:
Sold Homes: 10
Average Sales Price: $2,441,900
Average Days on Market: 26
Average Price Per Square Foot: $812.88
Lowest Sales Price: $475,000
Highest Sales Price: $4,100,000
Selling at 96.94 percent of original listed price
Worth noting: Nine of these are $1 million+, and the average market time over $1 million is 20 days.
Nov. 17, 2021, through Feb. 17, 2022:
Sold Homes: 25
Average Sales Price: $2,841,080
Average Days on Market: 46
Average Price Per Square Foot: $824.91
Lowest Sales Price: $490,000
Highest Sales Price: $8,750,000
Selling at 99.99 percent of original listed price
For 98112
Nov. 17, 2022, through Feb. 17, 2023:
Sold homes: 30
Average Sales Price: $1,712,950
Average Days on Market: 40
Average Price Per Square Foot: $627.77
Lowest Sales Price: $475,000
Highest Sales Price: $4,100,000
Selling at 95.69 percent of original listed price
Worth noting: 22 of these are $1M+, and the average market time over $1M is 37 days.
Nov. 17, 2021, through Feb. 17, 2022:
Sold homes: 86
Average Sales Price: $1,668,042
Average Days on Market: 32
Average Price Per Square Foot: $698.55
Lowest Sales Price: $448,000
Highest Sales Price: $8,750,000
Selling at 103.26 percent of original listed price
My takeaways
• Year-over-year real estate activity in our neighborhood remains steady with prices slightly up in 98112
• The decline in sales in our area is directly attributable to the lack of inventory
• Under $2M, we are seeing some listings receiving multiple offers
• The leveling off, and small decline, in rates from the highs has given buyers some confidence
• We are seeing the return of a more healthy, normal market
Some things to consider
• While there is uncertainty in the tech sector, our statewide unemployment rate remains low: 4.2 percent, based on the latest numbers from the Washington State Employment Security Department. In King County that number is 2.8 percent. In addition, the U.S. Labor Department recently defied expectations by reporting the addition of 517,000 jobs on a seasonally adjusted basis, the largest increase since July.
• Sellers: No matter how tight the inventory, pricing and presentation will always be the key principles to a successful transaction. Take this time to make your home show-ready; first impressions count. Tackle projects that give you bang for your buck: painting, surface updates and landscaping. Declutter—packing more now means packing less later! Hire a broker to represent your home who utilizes staging services.
• Having an experienced broker who will analyze the micro-neighborhoods and the most recent sales data will help you price your home competitively. If a home goes on the market even a bit too high, it can sit, and that may result in a larger price reduction than if the home had come on the market at a reasonable listing price.
• Buyers: Trying to “time the market” is impossible. As we see multiple offer situations again in some areas, it is important for you to consider the right time to purchase FOR YOU, regardless of what the market is doing. New job? New relationship? Kids leaving for college and it’s time to downsize? These life changes make it the right time to buy a home.
• 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 waterfront estate with 120 feet of Lake Washington waterfront for $25,000,000.
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. Please get out and vote in our local election. It’s time to help shape the future of our city, and your vote matters.
Evan Wyman, Broker/Partner
The Wyman Group @ COMPASS