Hey there, savvy real estate watchers! Welcome to your September 2024 Seattle housing market update. The market’s serving up a few surprises this month, with mortgage rates cooling down and more homes popping up for sale. If you’ve been holding your breath for a shift, now’s the time to start paying attention. Rates are dipping, new listings are climbing, and buyer interest is starting to bubble over. So, whether you're here to make moves or just keep an eye on the action, we’ve got plenty to cover.

This month, we’ll break down our trusty trio of key indicators—Sales Activity Intensity™, Monthly Inventory Levels, and Interest Rates—so you can get the inside scoop on what’s happening out there. Let’s dive in.

Sales Activity Intensity™

• Current Effect: 42.2% of homes in Seattle are going pending within the first 30 days. The market remains "strong," but there's a slight easing from last month's intensity.

• What This Means: Homes are still flying off the market, but buyers might find a tad more breathing room compared to the earlier madness this year. Expect  less multiple offers,  with a bit less cutthroat competition. Sellers still hold the upper hand, but buyers should keep their eyes open for quick opportunities.

• Key Stats:

  • Average sold price: $985,340
  • Pending sales: 709 homes
  • Average days on market: 27

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Monthly Inventory Levels

• Current Effect: Inventory has increased to 2.5 months of supply—still low, but an improvement from earlier months. This uptick means there are more homes hitting the market, but demand continues to keep things tight.

• What This Means: Buyers, rejoice! There are a few more options out there for you, but don’t expect the market to slow down entirely. Sellers can still expect quick sales, especially if homes are priced competitively and in great shape.

• Key Stats:

  • Homes for sale: 2,206
  • New listings: 995
  • Closed sales: 684​

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Interest Rates

• Current Effect: Mortgage rates have dropped to 6.4%, a significant drop from the highs earlier this year. This dip makes financing more affordable, drawing more buyers back into the market.

• What This Means: Buyers, the time to act is now! This rate drop will likely bring more competition, so be prepared to make strong offers. Sellers should also be ready for an increase in buyer interest, especially as rates continue to soften.

• Key Stats:

  • Current interest rate: 6.4%
  • Average price per square foot: $576​

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Overall Market Trends

Seattle’s market is holding strong, but the combination of lower rates and rising inventory is bringing a bit more balance to the scene. However, demand still outweighs supply, and homes continue to move fast. As rates lower, expect buyer activity to pick up—meaning competition is far from over.

Key Takeaways:

• Sellers: Homes are still selling fast, but with more inventory on the market, pricing smartly will be critical to avoid sitting too long.
• Buyers: With lower interest rates, more buyers will likely enter the market. Be ready to move quickly, as the slight easing in competition won’t last forever.

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Residential Resale, Condos & New Construction

Resale Residential Homes: The resale market remains strong, with homes selling quickly and often above asking price. However, with inventory rising, sellers may need to temper their expectations slightly as more homes become available.

Condominiums: Condo demand remains steady, especially with first-time buyers and those seeking a more urban lifestyle. As rates drop, condos are becoming a more affordable option, but HOA fees and assessments still impact overall affordability.

New Construction: New homes are still in demand, with buyers attracted to modern amenities and customization options. But as the price gap between new constructions and resale homes narrows, buyers are starting to weigh their options carefully. Builders may need to stay competitive on pricing to keep pace with market changes.

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The Fed’s Influence

The Federal Reserve has been playing it cautiously, but with interest rates dropping to 6.4%, the real estate market is beginning to feel the effects. If the Fed follows through with a rumored rate cut in September, expect even more buyer activity in the coming months. Sellers, this could work in your favor as more buyers jump into the market to lock in favorable financing. However, if inflation remains high, further cuts could be delayed, leaving rates steady for now.

BONUS TIP:  With some listings, it is possible to negotiate for Seller's concessions.  Look for homes that have been on the market longer than 7-10 days.  Generally, these concessions would go towards your closing costs.  Now might be a good time to negotiate seller concessions towards buying down your interest rate.  Either a permanent or temporary 2/1 buydown.

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Seasonality

As summer wraps up, the Seattle real estate market typically slows down, but this September is still buzzing thanks to the drop in mortgage rates. Sellers can expect solid offers from buyers eager to lock in better rates, while buyers need to stay on their toes, as competition, though slightly eased, is still a factor.

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Strategic Insights for Buyers and Sellers

For Sellers:

• Market Ready: Make sure your home is looking its best—buyers are still picky and looking for move-in-ready properties.
• Smart Pricing: With inventory rising, it’s important to price your home competitively. Homes are still moving quickly, but buyers have more options to choose from now.

For Buyers:

• Be Quick: With lower interest rates drawing in more buyers, homes are still moving fast. Get pre-approved and be ready to act.
• Negotiate: Look for homes that have been on the market longer than a week—sellers may be more willing to negotiate, especially as inventory grows.

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The Rent Vs Buy Conversation

Thinking of buying but still unsure about those interest rates?

Here’s the reality check: buying a home means locking in your monthly payment, while rent keeps rising. On average, Seattle rents are up 8.3% year-over-year, making homeownership more appealing for those who can afford it.

Plus, owning a home builds equity over time—renting, well, not so much. If you're on the fence, consider the long-term wealth-building potential that comes with homeownership.

Seattle’s current rental price for a 3-bedroom home is hovering around $3,825 per month, which translates to the equivalent of buying a home priced around $700,000 with a 6.4% rate. Think long-term when making your decision—it could pay off more than you think!