SEATTLE HOUSING MARKET FORECAST
Home Prices, Interest Rates, Real Estate Statistics, Video and Charts
JULY 2021: New listings reached the highest level since May 2019 And We Are Still Experiencing an Extreme Shortage
TABLE OF CONTENTS
Every month we gather all the facts, data and statistics about the Seattle Housing Market and share them with you. We will discuss the 3 major factors in determining the strength of the market.
- Monthly Inventory Level
- Percentage of Homes That Go Pending In First 30 Days
- Current Interest Rates
The data tells a story about the current state of our local residential real estate market.
What this story tells me is...
Seattle is heating back up and now that things are starting to open back up people are starting to move back to the city.
Seattle had more new listings coming on the market in June than any time since May of 2019. That is a great sign that confidence is growing and people are feeling more comfortable putting a home on the market. While it did loosen up the buyers market a bit we are still experiencing an extreme inventory shortage.
Not only are we back to the norm of listings going on the market (supply) but we are still selling them as fast as they come on the market (demand).
The prices of condo units took a hit during the lockdown as they were much less desirable if you could not use the amenities or the city. They have completely returned to their pre-pandemic prices.
As life shifted during the pandemic so did the desire of where people wanted to live and in what. As I already discussed condo demand dropped considerably. As it became less important to consider traffic we saw people migrate out to the suburbs of Seattle and Bellevue. While Seattle has low inventory at .7 months, both Snohomish County and Pierce county are experiencing more shortage at only .3 months of supply.
In addition the percentage above listing price that people are willing to pay has remained high at an average of 5% above asking. Single family residential with 3 or more bedrooms is at 8% above asking.
The majority of national economists predicted that the real estate market would pull up the economy, and so far it has played out.
Buyer indicators have never really declined, and we are continuing to see the seller indicators hit all time highs.
With still amazingly low interest rates, and a low level inventory the last couple of years the Seattle housing market should remain in the surge to frenzy status through the spring of 2022.
Although WA has essentially opened back up we continue to follow all state mandated safety guidelines and take extra precautions. We are focusing on delivering Virtual Real Estate Services.
INSTANT HOME VALUATION
Use this tool to get an instant estimation of the value of your home.ESTIMATED HOME VALUE
DREAM HOME SEARCH
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SEATTLE REAL ESTATE
Market Stats, Neighborhoods, Video, Parks, Schools, Homes For Sale and more.ABOUT SEATTLE
It’s All About Each New Listing! The Seattle market is virtually sold out up to $3 million, which places extra focus on each new resale listing as it comes onto the market. We expect this extremely high intensity will continue in most price ranges locally into the spring of 2022, due to historically low interest rates creating a large backlog of buyers looking to purchase a home. Sales Activity Intensity™ in Seattle is predominantly at extreme frenzy up to $1.5 million (90 percent of sales take place in this range). In the $1.5 to $3 million price range, Sales Activity Intensity™ is frenzy. For ultra-luxury homes priced over $3 million, sales are strong. J Lennox Scott
Seattle Real Estate GRAPHS AND Data
With only .7 months of supply if no other homes were listed in the next 21 days we would run out of houses to buy.
There were 1,887 new listings in June.
If you are looking for homes from 0 -500k you are seeing more inventory.
As you can see from the table above anything below 5 months is considered low. Low inventory means higher demand. Higher demand drives the price up.
1,570 homes were sold in Seattle last month. That is up 214 from the previous month, up 569 from last year, and up 261 from 5 years ago.
In the Seattle housing market homes in the 500k-1m+ price range typically sell the fastest.
76% of homes are selling in less than 30 days in the Seattle housing market. That number is usually closer to 30%.
Houses in the 750k-1mil price range are selling 84.1% of the time in the first 30 days.
Because there are less homes for sale and there are still many buyers trying to buy… the homes that do list are usually selling very fast.
AVERAGE SALE PRICE: $942,030
SINGLE FAMILY RESIDENTIAL: $1,047,818
We have already seen where a low inventory should drive up prices. The average sale price for Seattle homes is $942,030. In comparison 5 years ago the average sales price was $665,842.. a 41% increase in equity.
Listings are selling at 105% of their list price.
According to both Zillow and John L Scott’s massive data set we are in the heart of the busiest time of the year.
If you’re a buyer you will want to position yourself to create a buyer advantage when competing with other buyers and walk in confidence when making an offer. We can consult with you to be up-to-date with current market intensity and pricing, get pre-approved or fully underwritten through a lender, and receive email/text notification of newly listed properties.
In today’s instant-response market, it’s key to ensure you’re ready to act when the timing is right and make sure you are Buyer Ready Day One.
Sellers should be Market Ready Day One.
WHILE WE ARE NOT SURE HOW THE EMPLOYMENT NUMBERS WILL END UP HERE IS THE CURRENT UNEMPLOYMENT SITUATION
CURRENT UNEMPLOYMENT RATES
As you can see from the charts above unemployment is still slightly higher than it was prior to the event.
"After six consecutive years in the top 2 for growth among the 50 most-populous U.S. cities — that includes a No. 1 showing in 2013 — Seattle dropped to sixth place in 2019." (Seattle Times)
STATS PROVIDED BY: INFOSPARK
- $942,030 was the average sold price for listings in Seattle.
- 1,887 new listings went on the market this month.
- 1,516 homes were for sale during the month.
- 1,544 homes went pending in Seattle.
- 1,570 homes sold this month
- .7 months of inventory available in Seattle
- 17 was the average days on market for a home to sell in Seattle
- 105% was the average listing price vs. sales price percentage
- $555 was the average price per square foot in Seattle
- $1,478,987,725 was the total closed sales volume for Seattle
- 3.138% was the interest rate
- 75.5% of homes sold in the first 30 days in Seattle
The Seattle Housing Market saw 1,887 new listings, 1,516 homes were for sale, while 1,570 homes sold in June in Seattle.
The average days on market decreased from 19 days to 17 days, the percentage of sale price to listing price decreased to 105%, and the average sales price decreased. The percentage of homes that sold in the first 30 days is 76% indicating an Extreme Frenzy Market. Inventory is at .7 months of supply indicating a Severe Shortage.
Despite the crisis, with interest rates low, buyers are out there.
We should continue to see a surging to frenzy market through the Spring of 2022.
Now seems to be an amazing time to sell your home as we are still seeing historically low inventory and high prices.
If you are considering a move up, a move down, or just want to sell your home… Months of inventory is still at well below average. Homes are selling at a rapid pace, the Interest Rates are still at below average lows.
The jury is still out on the job market and population growth.
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