Shifting sentiment among buyers
The fast-moving train that was the Seattle housing market has slowed dramatically over the past 15 months. A diminished sense of urgency has caused a market slowdown despite historically low interest rates and continued economic growth in the Puget Sound region.
It makes sense. With prices dropping, patient buyers will sit back and see what else is coming. The fear of missing out is gone for now, leading to longer market times and lower sale prices.
Buyers: enjoy it. The current limited-inventory environment can cloud your judgment, so stick to your requirements (assuming they're realistic!) and choose a home with sound fundamentals (e.g. livable floor plan, sufficient natural light, quiet street, and quality construction to name few).
Sellers: don't shoot for the stars. The selling season is behind us for 2019, but buyers are still out there and Seattle is still growing. Price your home in line with recent sales, and don't plan for a bidding war. For a typical house, correct pricing should lead to one good offer within a couple of weeks right now.
Read on for our 3rd quarter market reports and to see what else we've been up to!
Q3 Market Reports
SEATTLE
The Seattle in-city real estate market slowed from a racetrack inferno to cruising speed over the past year and a half. Prices softened an average of 2% in Q3 with the Central Seattle region feeling the biggest impact (down 7.6% from Q3 2018).
The Ballard-Green Lake region had the highest number of Q3 sales (582) while the Lake Forest Park-Kenmore area boasted the most affordable cost per square foot ($340). When it comes to returns, Lake Forest Park-Kenmore, South Seattle, and Richmond Beach-Shoreline were nearly tied for the strongest five-year growth trend at 73.9%, 73.3% and 73.2% respectively.
EASTSIDE
Stimulated by announced expansion from the top names in tech, the Eastside is the place to be right now. Buyers found far fewer homes for sale—nearly 25% less—in Q3 than they did just one year ago. Sale prices in Kirkland, bolstered by recent announcements from Google and Tableau, were up an average of 15.4% over Q3 2018.
Prices near the Microsoft campus, where the Spring District is coming online, were up 3.2%. The West Bellevue market saw a lower Median Sale Price which was attributable to fewer high-end sales in Q3 this year compared to last year. All in all, the Eastside had a very good quarter. Home sellers should be pleased with their returns and home buyers should feel good about purchasing in a robust market.
Click here for the full Q3 market report data.
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Thanks for reading!
Best,
Chad