Local Market Update – October 2023
With the fall season finally upon us, the behavior of the housing market is like the range in outdoor temperatures: somewhere between warm to cool. There’s a lower overall volume of home sales than in recent years, but at the same times buyers are moving quickly and assertively on highly desired properties, despite higher interest rates.
Although these interest rates could make it more difficult for sellers to see significant price gains in the near future, the high demand for homes after a prolonged inventory drought in our region is likely to keep buyer activity on accurately priced listings unseasonably warm.
Overall, buyers and sellers are likely to experience this fall as something of a transitional period. The market has slowed considerably after the frenzy of the pandemic, and interest rates have yet to stabilize. It’s most likely that the market will remain slow until sometime in the new year, at which point either interest rates will have dropped slightly, buyers will be better equipped to manage them, or sidelined sellers will grow tired of waiting.
Despite a September slowdown in home sales, King County did see price gains for residential listings and condos. The median price for single-family homes increased about 3% year-over-year, from $875,000 in September 2022 to $900,000 last month. Around one-third of listings in the county sold over list price last month, in an average of just 6 days. Properties that sold at list price spent around 10 days on the market. Condos rose a more noticeable 7% in September, from $483,000 to $515,000.
The Seattle residential market also saw modest price gains, with the median sold price of single-family homes increasing from $900,000 last September to $926,000 this September. Around 29% of listings sold over list price, in an average of 5 days. Those that sold at list price spent a slightly longer 11 days on market, however this still indicates that buyers are prepared to move quickly on properties that are accurately priced. Condos in the city also saw a respectable 10% price increase year-over-year, rising from $499,000 in September 2022 to $550,000 last month. With nearly 3 month’s inventory, the Seattle condo market may have the highest inventory rate and be the most balanced market in the region at this time.
On the Eastside, prices crept up around 6% from $1,350,000 in September 2022 to $1,427,500 last month. Demand is still high in the area, with 32% of listings selling above list price, averaging just 5 days on market. Those that sold at their list price were purchased within 6 days. Condos on the Eastside saw decent year-over-year price growth, increasing 7% from $580,000 last year to $620,000 last month.
Homes in Snohomish County saw the smallest yearly price increase, rising just 2% from $735,000 in September 2022 to $749,900 last month. Despite this lower rate of price growth, about 31% of homes sold above listing price, averaging only 6 days on the market. Those that sold at listing price spent a bit longer on the market, averaging 13 days. The condo market in Snohomish is the only niche market in the region that saw a price decrease compared to last year. In September 2022, the median price was $539,500. Last month, prices decreased about 8%, landing at a median of $498,500.
It’s likely that we will continue to see fewer unit sales in our region through the end of the year. However, if you need to buy or sell a home before then, there are opportunities to make the most of current conditions. If you have questions about what current market conditions mean for you, reach out to me anytime.
