SEATTLE MARKET UPDATE | AUGUST 2018
Price reductions, a ton of inventory, and prices on the decline. But, what does this mean?
If you’ve been following the Seattle area Real Estate market, you know that A LOT has changed and A LOT has changed QUICKLY!
From last year, we’ve added 66% MORE HOMES on the market. And to give you even MORE context to how quickly this has moved - we have essentially DOUBLED our inventory since just APRIL! Crazy.
August 2017: ~4,600 homes on the market.
August 2018: ~7,100 homes on the market.
April 2018: ~3,700 homes on the market.
The last time we’ve had this much inventory was in October of 2014, so almost 4 years ago.
Let’s talk about the home prices. They’re also seeing a little bit of decline. In the last 30 days actually we’ve seen around 2,800 price reductions. With 7,100 homes for sale on the market, this is quite the ratio.
For some context, this time last year, our home prices were rising (not THAT much, but still positive) and now, in the past four months, our home prices have dropped ~$60,000 in King County. Pretty crazy.
Does this mean our market is crashing? The worlds falling down?
This “ease” of our market is due to a few factors; rents not going crazy, pressuring renters to buy, a decline in foreign investors, time of year, and it’s not just happening in Seattle; it’s happening across the nation.
We're still in a “hot market,” we are still more expensive than we were last year and we still are more expensive than LA, New York, and San Diego.
What does this mean if i’m a seller?
Don’t freak out, please.
If you’re a seller, the good news is that there’s still buyers out there. We had around 3,200 closed transactions in the month of August, which quite frankly is pretty “normal,” even from last year. There’s just more options for them.
The last buyer I represented, we had to beat out four offers. So it’s still happening.
Pro Tip: Work with a good agent and make sure that your home is priced right, is marketed right and GLEAMS in a market full of inventory choices.
If you can, it may be worth it to wait the winter out and list early spring, where historically home prices start to pick back up and you come out of a inventory “lull.”
What does this mean if i’m a buyer?
Well, it might make sense to get that pre approval and start shopping!
Have you had buyers fatigue?
Intimidated by the Seattle market?
Stress no more - your options are wide open. I mean, we’ve had the most amount of inventory in four years, interest rates are still “pretty low,” and you have a lot more leverage than you did just 4 months ago.
I think this is just a “stint.” We have too much good going on in our area, the economy, to smell a “crash,” more so a “slow down.” Come spring time, we’re back off to the races.
If you have any questions about the market, if you’re a buyer or seller, don’t hesitate to reach out. Would love to hear from you.
You can easily schedule a consultation, where we can figure out your goals, needs, and go from there.
Thanks for reading!