Seattle Housing Market Watch 5/25/2024

 In #Buying Real Estate, #Real Estate Investing, #Real Estate Tips, #Thoughts, Seattle Market Watch

Hey y’all. Zach McDonald, your real estate agent with Real Property Associates, and this is my Seattle Real Estate Market update for May 28th, 2024.

We’re at the end of the month here coming into the summer and just out the Memorial Day weekend. Holiday listings are low. That’s pretty normal for the holiday weekend. Interest rates jumped quite a bit from last week. We’re almost a quarter percent up according to Mortgage News Daily survey. We were at 7.09 last week at 7.28 as of today, man, and it’s interesting, we’re seeing the higher rates, but we’re also seeing the buyer activity of a lower rate environment. We, a few years ago, were seeing multiple offers on most properties. Contingencies removed, we’re seeing it again. We’re seeing it again here in the Seattle area. Many homes are selling above, asking price, getting multiple offers, and that is with rates at these higher percentages. We’re still in the sevens. It’s not like we’ve dropped down into the low sixes or high fives, or even better yet, into the fours.

We’re still in this higher rate environment. Yet the competition is there and the question I’ve been asking for a while, and we’ll keep asking and pondering and it’s more of a rhetorical question, it is for me to continue to think about it for you. It is what is going to happen when rates come down? We’re seeing the activity, the competition returning with high rates. What is going to happen when the rates come down and the money’s cheaper? And I really think things are going to go crazy here in the Seattle area, given the rate environment that we’re in and the competition that’s already coming back. A lot of it’s speculative. People are expecting rates to come down. Maybe the fears of the housing market crashing have subsided, but what’s going to happen when rates come down? That’s the question. Now we’re seeing the listing inventory week over week, dropping substantially.

That’s pretty normal. During a holiday week, we saw 500 new listings versus 7 61. We kind of been in the seven hundreds off and on here the past month or so. Drop into 500 in King in Snohomish County last week. Again, that’s normal list price reductions. 2 66, we had 3 56 the week before. Again, I would say that’s pretty normal during a holiday week to see less activity. Dropping price during a holiday weekend doesn’t always make sense. People are traveling not around. It’s kind of like the new listings not coming on as strongly during that holiday week. Contingent purchases, this is big. So 29 contingent purchases. There were 19 the week before, and the contingent purchases keep rising. In fact, I used to live in Edmonds, which is just north of Seattle, and I saw three contingent purchases in Edmonds over the last couple days. That’s crazy to see that many contingencies.

So again, there are still properties sitting on the market. I would say a lot of the contingent purchases, again, this is not every single one, but a large portion of them are maybe a higher price point, right? The lower price points aren’t seeing that as much, but the higher price points are still seeing those contingencies, the move up property, so to speak. Maybe they got to sell that house, the smaller house to buy the bigger house. The pending sales though, still high, 8 22, 9 36 last week, but 8 22 even in a busy holiday week is pretty substantial. And the closings here, as we’re wrapping out the month 6 22, we’ll probably see a few this week. This week is going to be the majority of those end of the month closings. We had 6 73 the week prior, so we’re finishing out the month really strong. And this is something we’ve been talking about.

When you see the high number of pendings, it’s more of a future prediction, right? Than it is a current prediction, but it’s a better picture of what’s going on right now. Things are coming off the market, and as we’re looking at the summer market here in Seattle, we’re finding ourselves in a very competitive market, right? That’s the first sign that we’re seeing right now. Rates haven’t come down yet. Rates are still hovering in the low sevens, maybe high sixes, just depending on the week. We are going to see people traveling and going on their various nice weather trips. I do think we’re going to keep seeing more inventory coming on the market. Another prediction here, and I think that we are going to see the housing market in Seattle State relatively strong this summer versus maybe dropping off a little seasonally with travel. And that is mainly just because we’ve had such a lack of inventory here, and I don’t anticipate any type of large additions to the inventory here. Not at least abnormal additions to the inventory. So those are just a few summertime predictions here. As we wrap up today, if you have questions about buying here or selling in the Seattle area, or heck you just want to talk about the housing market, I’d love to be a resource for you. I love talking about the market, and of course I love helping people through the home buying process as well.

 

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