"Did you know over 51% of Seattle homes are selling within 30 days this December? Talk about fast-moving inventory!"

As we settle into December 2024, Seattle's housing market is buzzing despite the chill in the air. Winter Cleanup Season is in full swing, clearing out unsold inventory while demand continues to heat up. For sellers, this is a golden opportunity to stand out with less competition. For buyers, it’s time to stay sharp and act fast in a competitive environment.

This report breaks down the key trends shaping Seattle real estate today, from demand intensity to inventory levels and interest rates. Whether you’re considering selling your home or just keeping an eye on the market, here’s what you need to know.

Sales Activity Intensity™

Current Effect:
Sales Activity Intensity™ in Seattle is at an impressive 51.7%, up from 46.4% last month. This means over half of the homes listed are going pending within the first 30 days. Homes are spending an average of 32 days on the market, with 16 showings before going pending. This marks the market as “very strong,” even during a typically slower winter season.

What This Means:

• For Buyers: The competition is fierce! With over half the homes selling within a month, you’ll need to act quickly and come prepared with a pre-approval letter and a clear understanding of your budget.
• For Sellers: This is a prime time to sell. Take advantage of strong buyer demand by pricing your home strategically and investing in professional staging to attract serious offers.

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Monthly Inventory Levels

Current Effect:
Inventory remains tight at 2.2 months, a slight increase from November’s 2.1 months but still firmly in the "low" category. While 643 new listings hit the market, the total number of available homes remains insufficient to meet buyer demand.

What This Means:

• For Buyers: Options are limited, and desirable homes are selling quickly. Stay persistent and be prepared to compromise on certain features or negotiate creatively.
• For Sellers: Low inventory gives you the upper hand. A well-priced, move-in-ready home will attract significant interest and likely generate multiple offers.

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Interest Rates

Current Effect:
The average mortgage rate in December sits at 6.91%, slightly higher than November’s 6.87%. Although these rates are higher than those seen in 2020–2021, they are manageable compared to historical norms. That said, higher rates are impacting buyers' purchasing power and monthly payments.

What This Means:

• For Buyers: Lock in your rate as soon as possible to avoid future increases. Explore options like rate buy-downs or adjustable-rate mortgages to improve affordability.
• For Sellers: Consider offering rate concessions to make your home more attractive to rate-sensitive buyers. This small incentive could give you a competitive edge.

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Overall Market Trends

Seattle’s housing market remains active despite the seasonal slowdown. With low inventory, very strong Sales Activity Intensity™, and rising rates, sellers are benefiting from high demand, while buyers are working to adapt to the competitive conditions.

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Key Takeaways

For Sellers:

1. Stage and Price Right: Homes that are clean, staged, and priced competitively are seeing the most success.
2. Capitalize on Low Inventory: Fewer homes on the market means less competition. List your property now to attract motivated buyers.

For Buyers:

1. Stay Pre-Approved: A pre-approval letter is critical to making a strong offer in this fast-paced market.
2. Negotiate Creatively: Ask sellers about rate buy-downs or closing cost assistance to make a higher interest rate more manageable.

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Residential Resale, Condos & New Construction

Resale Residential Homes:

The average sale price for Seattle homes in December is $976,366, with a sales-to-list price ratio of 99.3%, meaning homes are selling close to asking price. Homes are averaging 32 days on the market, so sellers should prepare for quick transactions.

Condominiums:

Condos remain a more affordable entry point for buyers, especially first-time buyers. However, buyers should carefully consider HOA fees, which can significantly affect monthly expenses.

New Construction:

New builds continue to attract buyers seeking modern amenities and energy-efficient designs. Builders offering incentives like rate buy-downs or upgrades may see a quicker sales pace in this rate-sensitive market.

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The Fed’s Influence

The Federal Reserve's monetary policies remain a key factor in shaping mortgage rates. While the current rate of 6.91% is manageable, any future rate increases could further impact affordability. Buyers are encouraged to act sooner rather than later to lock in their rates before potential hikes.

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Seasonality

Winter is typically a quieter time in real estate, but Seattle’s market is bucking the trend. With unsold inventory being absorbed and fewer new listings hitting the market, competition remains strong. For sellers, this means less competition. For buyers, it’s an opportunity to find motivated sellers who are eager to close before the end of the year.

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Strategic Insights for Buyers and Sellers

For Sellers:

1. Stage & Price Competitively: Even in a strong market, buyers are price-conscious. Well-presented homes tend to attract more interest and better offers.
2. List Now to Capture Demand: Don’t wait until spring—buyers are still active, and low inventory gives you an edge.

For Buyers:

1. Get Pre-Approved: Knowing your budget and being ready to act are essential in a fast-paced market.
2. Negotiate Seller Concessions: Many sellers are open to offering incentives like closing cost assistance or rate buy-downs to seal the deal.

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The Rent vs. Buy Conversation

With rental prices in Seattle up by 8.3% year-over-year, buying is becoming an increasingly attractive option for those planning to stay long-term. The average rent for a three-bedroom home hovers around $3,825, similar to the monthly mortgage on a $700,000 home with current rates. Buying can provide financial stability and long-term equity growth, making it a strategic choice for many Seattle residents.