SEATTLE HOUSING MARKET FORECAST
Home Prices, Interest Rates, Real Estate Statistics, Video and Charts
Breaking record left and right
The Seattle Real Estate Market Analysis For October 2020
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.
- Inventory
- Percentage of Homes That Go Pending In First 30 Days
- Interest Rates
The data tells a story about the current state of our local residential real estate market.
What this story tells me is…
We are hungry for inventory in Seattle.
People have had plenty of time to think about what they want their home to be and have decided they need to make adjustments. In addition, many people have converted to working from home and no longer need to be commuting distance from Seattle or Bellevue.
Both of the these factors have driven people to the more affordable and more space that is available in Snohomish County.
The major indicators are still above average for Seattle but much cooler than their neighboring county to the north.
The majority of national economists have suggested that it will be the real estate market that pulls up the economy, and so far it is playing out.
As I have been reporting for the last 6 months that buyer indicators have never really declined, and we are continuing to see the seller indicators hit all time highs.
According to the Realtor.com Seattle Housing Market Recovery Index the US market is sitting at a 110.6 of 100, while the Seattle/Bellevue/Tacoma market is sitting at 121.3 of 100.
We are still seeing spring like sales activity deep into early fall.
With still amazingly low interest rates, and a low level inventory the last couple of years the Seattle real estate market should remain in the surge to frenzy status for the foreseeable future.
The stay at home order continues to affect our industry in many ways, but it does not seem to be having a lasting impact on the Seattle housing market and residential real estate sales.
Read About How We Are Navigating Business During The Crisis.
Along with following all state mandated safety guidelines and taking extra precautions we are focusing on delivering Virtual Real Estate Services.
Realtor.com® Seattle Housing Market Recovery Index
The index then compares the current status “to the last week of January 2020 market trend, as a baseline for pre-COVID market growth. The overall index is set to 100 in this baseline period. The higher a market’s index value, the higher its recovery and vice versa”, according to Realtor.com.
Selling?
If you are selling the average sales price is at all time highs, and 65% of homes are selling in the first 30 days. The average home is selling in just 20 days.
Buying?
If you are buying the interest rates have never been lower! We have seen a high number of listings hit the market the last couple months.
Enjoy My Seattle Housing Market Report in 60 Seconds Video
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ABOUT SEATTLEHitting Records Left and RightThe past three months set individual monthly records for the number of homes going under contract in central Puget Sound as well as an all-time high for the median home price in King County. There is surge sales activity intensity and a severe shortage of unsold homes priced up to $1 million in Seattle; 79 percent of sales take place in this range.
There has also been a record-setting number of luxury properties going under contract. There is a shortage of homes priced $1-2 million; in this range, sales activity intensity is at surge. There is low unsold inventory in the $2-3 million range, with strong sales activity intensity. Buyer activity is selective above $3 million. J Lennox Scott
Seattle Real Estate GRAPHS AND Data
SALES ACTIVITY AND INVENTORY
With only 1.4 months of supply if no other homes were listed in the next 42 days we would run out of houses to buy.
New listings decreased in September.
If you are looking for homes from 250-350k you are seeing a little more inventory with 2.8 months of 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.
1,285 homes were sold in Seattle last month. That is up 118 from the previous month, up 456 from last year, and up 253 from 5 years ago.
As you can see in the Seattle housing market homes in the 350-1 million price range are the most commonly listed and sold. However, homes in the 500k-1m price range sold the fastest.
DAYS ON MARKET
57% of homes are selling in less than 30 days in Seattle. That number is usually closer to 30%.
Houses in the 500k-1mil price range are selling 62% 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.
PRICE
We have already seen where a low inventory should drive up prices. The average sale price for Seattle homes is $877,289. In comparison 5 years ago the average sales price was $599,497.
In addition the average home is selling for 1.6% higher than it is listed as.
INTEREST RATES
In order for it to be a sellers market there must be buyers. With the interest rates at the Absurd rate of 3.04% a .26% increase from last month (source: Mortgage News Daily)
There are plenty of buyers that are in the Seattle housing market.
TIMING
According to both Zillow and John L Scott’s massive data set we should be showing real signs of slowing down by now. Because we started the season a few months late, perhaps it will run a few months late.
The buyers are there and we are starting to see the listings numbers increase.
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.
JOB AND POPULATION GROWTH
WHILE WE ARE NOT SURE HOW THE EMPLOYMENT NUMBERS WILL END UP HERE IS THE CURRENT UNEMPLOYMENT SITUATION
CURRENT UNEMPLOYMENT RATES
WA Employment Security Department
EMPLOYMENT NUMBERS PRIOR TO THE HEALTH CRISES
“After another year of employment stability, Washington economists predict more of the same in 2020.”
“Over the past year, Washington’s ranking in economic growth and competitiveness rose from fifth highest to fourth highest in the nation, according to a September study prepared by the Washington State Economic and Revenue Forecast Council. Separate ESD data reported that Washington added 52,500 jobs between October 2018 and October 2019, with 41,600 of those jobs in the Seattle metro area.”(Seattle Times)
(Courtesy ofSeattle Times)
According to the US Census Bureau Seattle the fastest growing city of the decade in the country.
The Seattle Housing Market Analysis INFOGRAPHIC
If you like our infographic or know someone that may like it please don’t hesitate to share it on your Pinterest, Facebook, Twitter or Instagram. If you would like to download the image: Download The Seatttle Housing Market Report Infographic For October.
PAST MONTHS REPORTS
We put this list together every month. If you are interested in seeing past months you can access the archive below:
Seattle Market Stats
STATS PROVIDED BY: INFOSPARK
- $877,289 was the average sold price for listings in Seattle.
- 1,883 new listings went on the market this month.
- 2,499 homes were for sale during the month.
- 1,330 homes went pending in Seattle.
- 1,285 homes sold this month
- 1.4 months of inventory available in Seattle
- 21 was the average days on market for a home to sell in Seattle
- 101.6% was the average listing price vs. sales price percentage
- $510 was the average price per square foot in Seattle
- $1,127,315,986 was the total closed sales volume for Seattle
- 3.04% was the interest rate
- 57% of homes sold in the first 30 days in Seattle
SEATTLE HOMES FOR SALE
SEATTLE HOUSING MARKET Summary
The Seattle Housing Market saw 1,883 new listings, 2,3499 homes were for sale, while 1,285 homes sold in October in Seattle.
The average days on market increased to 21 days, the percentage of sale price to listing price decreased slightly to 101.6%, and the average sales price decreased. The percentage of homes that sold in the first 30 days is 57%. Showing that despite the crisis, with interest rates low, buyers are out there. We have seen the market go to a Surge status over the last few months and the inventory to a shortage.
We should continue to see a surging to frenzy market for the foreseeable future.
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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