A return to normalcy

The real estate market returned to its usual seasonal patterns this past quarter, with the median home price bouncing back from last year's slowdown. Market times have dropped back into the single digits and folks seem to have forgotten that the sky was falling throughout the back half of last year.

This mini-recovery was a relief after watching the market freefall starting last May. There remains plenty of uncertainty in our local and national political environment, but Seattle's economy feels stable now that the dust has settled from Amazon's big movement east. Major employers like Facebook and Apple are adding jobs in Seattle and interest rates have remained lower than economists predicted.

The median home price is down 4.5% year-over-year after dropping throughout the 2nd half of 2018. Prices have risen steadily through the first half of 2019, up 12% since the start of the year. Modest home price growth may be the story in the months and years ahead.

In January, the median number of days on market reached its highest level since the start of 2012, but in typical spring fashion, time on market shortened drastically, now with a median of just 8 days. I expect to see days on market rise again in the months ahead, though.

The end of 2018 was the first time in years that buyers started to see meaningful discounts off the asking price. As sellers have adjusted to new market pricing, most homes are now selling for right around the list price.

The number of listings for sale has and will continue to be a big story this year. Tight inventory contributed to the big price gains we saw the last couple years, and more options for buyers will alleviate the strain we felt these past few months. New listings will likely slow down through Labor Day, then pick up again before the end-of-year slowdown leading into the holidays.

Excise tax changes coming January 2020

When you sell your home, the excise tax is the second largest fee you'll pay (after real estate commissions). Locally, that amount has been 1.78% until a recent bill was passed creating a tiered system. For the majority of sellers, your taxes will either go down or stay the same, but for sellers of homes over $1.5M, your excise tax will be increasing starting January 2020.

Read more here or check out this cheat sheet from Windermere's Chief Economist, Matthew Gardner.

Questions or comments? Just reply! Thanks for reading! :)

Best,
Chad