Our market is in full swing now with February stats showing the median price of a Single Family Residence (SFR) rising 13% in Seattle to $962,500 and 9% on the Eastside to $1,566,782. The percentage of homes that sold above list price in Seattle tripled from 11% in January to 35% and the percentage of homes that sold within 15 days doubled from 32% to 65%. On the Eastside, the percentage of homes that sold above list price rose from 6% in January to 20% in February and the number of homes that sold within 15 days increased from 28% to 54%. These statistics reflect that our market is robust. What isn’t as obvious, perhaps, is that the majority of listings did not sell over list price or quickly, as evidenced by our rapidly increasing inventory. So why are some homes selling quickly, while others sit?
Certainly, the condition and location of a home, as well as the level of professionalism when it comes to marketing, are impactful. All that being equal, price is the biggest factor. No seller wants to leave money on the table and there is no crystal ball that can accurately predict what a home will sell for. However, what is clear in our current market is that overpricing a home in the hopes of maximizing return is a disastrous strategy. Buyers are price-sensitive and patient. They know if they don’t get this home for what they are willing to pay, another will come along. Even when a home gets multiple offers, the price rarely escalates much above the list price now. Also, an increasing number of buyers do not bother to respond if a seller counteroffers, even for a few thousand dollars more. Overpriced homes sit and inevitably end up chasing the market down.
Seattle condo median price increased 7% to $596,275 and Eastside condo decreased 3% to $607,500. One might be tempted to assume that the Seattle condo market is doing well, but it is more nuanced than the Eastside. What we are actually seeing is a glut on the market/decreasing prices and extended days on market for some areas, with others experiencing increased activity. For example, in February in the Belltown/Downtown area, the median condo price decreased 3%, 0 sold above list price and 73% had a price adjustment before selling. While in the Queen Anne/S Lake Union area, the median price increased 8% and 9% sold above list price.
If the Middle East conflict continues, with its impact on stock market volatility and gas prices/inflation, there is likely to be a dampening effect on real estate prices, favoring well-prepared buyers and challenging weary sellers. The message is: Buyers – there are wonderful opportunities available! Sellers – be cautious when pricing to avoid extended market time and, ultimately, lower returns.
