Local Market Update – January 2024
Despite moments of snow in Western Washington, the local real estate market is slowly warming, as new opportunities arise for both home buyers and sellers. Lower mortgage rates are welcome news for buyers, and low inventory means sellers are starting the year with minimal competition.
King County continues to see residential price gains, with last month’s median sold price of $849,950 up from $825,000 a year ago. Condo prices also rose, up 15% from $465,000 in December 2022 to $537,000 last month. King County is also experiencing a reduced supply of available single-family homes. At the end of last month, inventory stood at 1.3 months, down from 1.6 months at the end of November and 2.0 months a year prior.
In a slightly different dynamic, Seattle experienced a decrease in both inventory and home prices last month. The median residential sold price was down from $879,975 in December 2022 to $850,000 last month. And December ended with 1.7 months of inventory, down from 1.9 months the previous month. While 16% of homes sold above list price in December, that was significantly lower than November, when 29% sold above asking. Seattle condo prices rose year-over-year, from $512,500 in December 2022 to $585,000 last month, with supply dropping 22 percent.
Following a modest decline in November, the Eastside rallied with an 11% bump in the median residential sold price, up from $1,400,000 last year to $1,440,000 last month. Further proof of a warming Eastside market: residential inventory is less than half of what it was last year, down from 2.5 months at the end of 2022 to just 1.2 months at the end of 2023. Mirroring the residential market, Eastside condominiums experienced a healthy 12% price increase last month, up from a median of $565,000 a year ago to $630,000.
Snohomish County was an interesting tangle of contradicting sales data. Median residential sold prices saw a slight year-over-year decrease last month, down from $700,000 to $684,995. This price decrease occurred despite a dramatic drop in inventory. The supply of Snohomish County single-family homes stood at just 0.8 months at the end of December, down from 1.8 months the year prior. Of the four areas reported in this market update, Snohomish County saw the lowest percentage of sold homes that had experienced a price reduction, at 41%, perhaps a reflection of the drastically reduced supply. Another possible outcome of the limited supply of single-family homes: the median sold price for Snohomish County condos jumped 11% year over year, from $469,950 in December 2022 to $523,500 last month.
As we move further into the new year, buyers remain hopeful that interest rates will continue to drop. The inventory of homes on the market has declined from a year ago in most markets, prompting price gains during what’s normally a slower time of year. Overall, the regional condo market has seen sustained activity, with unit sales experiencing only a modest decrease in the face of lower inventory and higher prices.
With regional submarkets exhibiting varying dynamics, it’s more important than ever for buyers and sellers to have a knowledgeable expert at their side. Let’s connect to co-create a strategy that’s best for your buying or selling journey, reach out to me anytime.
