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The 2024 real estate market is in full swing. While market time has increased year over year, recently we are seeing much shorter market times, especially for move-in-ready homes (sometimes it takes a bit of time for the market data to catch with real-time activity).
The Spring Market came early this year; many agents saw increased activity in January whether it be busy open houses or a return to multiple offers, even in the ultra-high end with at least two $7 million-plus homes receiving multiple offers.
While many buyers sat out the last quarter of 2023, interest rates are better and they are back in the market and actively seeking homes. Many buyers can no longer put off their living/moving decisions.
The top three things we see buyers looking for in today’s market are:
1. Homes that are meticulously presented and move-in ready. Even the most simple refresh (new paint and carpet) offer big returns. Many buyers seek homes that do not require updates. Homes that need work are less appealing often due to interest rates; buyers are forced to put more cash down to keep payments at a reasonable level eliminating reserves they would normally set aside for upgrades and remodeling. They are willing to do projects over time, but prefer homes that they can envision living in while they tackle long-term updates to suit their personal tastes if desired.
2. Workable floor plans and the overall functionality of a home is more important than ever. Many buyers want two offices because more than one person might be working from home. They want exercise space inside the house. Added amenities are a huge plus. Home as a sanctuary has remained a priority in the post-COVID world.
3. We are also seeing buyers who moved away from the city moving back to the city due to return to office work rather than working from home. A shorter commute and lifestyle are important.
4. Amenities within a short distance. Buyers are looking for a lifestyle, especially those who are seeking homes in our neighborhood. Maintaining a vibrant Village in 98112 should be important to all of us. Shop and eat local!
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Here’s a snapshot of the last three months of market stats in our area with year-over-year comparison:
Madison Park, Washington Park & Broadmoor
Nov. 26, 2023 through Feb. 26, 2024:
Sold Homes: 13
Average Sales Price: $3,608,462
Average Days on Market: 54
Average Price Per Square Foot: $815.14
Lowest Sales Price: $925,000
Highest Sales Price: $9,600,000
Selling at 99.10% of original listed price
Worth note: 12 of these are $1M+ and the average market time over $1M is 55 days
Nov. 26, 2022 through Feb. 26, 2023:
Sold Homes: 14
Average Sales Price: $2,155,286
Average Days on Market: 33
Average Price Per Square Foot: $755.97
Lowest Sales Price: $475,000
Highest Sales Price: $4,100,000
Selling at 97.92% of original listed price
For 98112
Nov. 26, 2023 through Feb. 26, 2024:
Sold homes: 45
Average Sales Price: $1,941,488
Average Days on Market: 52
Average Price Per Square Foot: $662.31
Lowest Sales Price: $630,000
Highest Sales Price: $9,600,000
Selling at 97.03% of original listed price
Worth note: 29 of these are $1M+ and the average market time over $1M is 50 days
Nov. 26, 2022 through Feb. 26, 2023:
Sold homes: 38
Average Sales Price: $1,685,486
Average Days on Market: 42
Average Price Per Square Foot: $755.97
Lowest Sales Price: $475,000
Highest Sales Price: $4,100,000
Selling at 97.5% of original listed price
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MY TAKEAWAYS
If you have been considering coming on the market, our advice is to come on now, as your competition is light.
Conventional wisdom says to come on in April; that is not true in this market with inventory still very, very low and we have pent-up buyer demand.
People need homes; our area continues to draw buyers for employment and lifestyle
Days on market has remained consistent year over year, but just in the last month or so, we have seen multiple offers, even on multi-million dollar, ultra-luxe properties.
Some of the properties have that had been on the market for a long time have sold.
All signs point to a market that is picking up.
Sellers who are realistic about pricing and have done their prep work have the opportunity to be successful in this market.
SOME THINGS TO CONSIDER
Sellers: pricing is more important than ever. We need to drill down on pricing taking many factors into account including recent sales, days on market, price reductions, and interest rates. Overshooting the mark will likely result in longer market time and a larger price reduction than if the home had come on the market at a strategic listing price.
Sellers: 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.
Sellers: 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.
Sellers: Consider doing a pre-inspection for your property so you can tackle fixes that can become a distraction for buyers. Oftentimes items called out on inspections are easy fixes that will help your home be competitive.
Buyers: Be prepared with pre approval, proof of funds and be ready to make an offer when you see a home that appeals to you.
Buyers: work with a trusted broker with strong agent relationships. This will really help you stand out if you are in a multiple offer situation.
As of press time, there are eight 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 Tom Kundig modern waterfront home for $19.5 million.
Call me to learn more about our Compass experts in 98112 who are ready to help you navigate this market to your advantage with the latest technology, top-notch marketing, and proven pricing strategies. If you’re buying, our knowledgeable and savvy agents will help you achieve success.
Evan Wyman, Broker/Partner
The Wyman Group @ COMPASS